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Maruti Suzuki Q3 preview: Profit, revenue may witness double-digit growth amid strong volumes

Maruti shares rallied 13.4 percent in Q3 FY21 but gained just 3 percent in calender 2020.

January 28, 2021 / 07:13 AM IST
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Maruti Suzuki India is expected to report a double-digit growth across earnings parameters for the quarter ended December 2020 backed by volume growth and positive operating leverage. The company will announce quarterly numbers today, January 28.

Profit is expected to increase by around 30 percent in Q3 FY21 on revenue growth of 14 percent as volumes rose by 13 percent year-on-year

(YoY) amid stronger-than-expected demand..

"We expect revenues to rise by 14 percent YoY led by 13 percent YoY increase in volumes in Q3FY21," said Kotak Institutional Equities which sees profit rising 27.4 percent YoY.

According to Sharekhan, revenue is expected to grow by 14.5 percent YoY, driven by growth in volumes and 1 percent growth in average realisations, while PAT is expected to register a robust 35 percent YoY growth.

On the operating front, Kotak expects EBITDA to rise by 27 percent YoY led by positive operating leverage, offset by YoY decline in gross margin due to rise in input costs in Q3 FY21. EBITDA margin may expand by 118 bps YoY.


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Motilal Oswal sees EBITDA rising 26.4 percent YoY for the quarter ended December 2020, with 110 bps margin expansion. "Operating leverage and lower discounts to dilute raw material cost increase and drive margin. Mix weak was due to higher demand in entry/mid-level cars," said the brokerage.

Product launches and competitors' diesel portfolio performance are key monitorable in Q3, the brokerage added.

Maruti shares rallied 13.4 percent in Q3 FY21 but gained just 3 percent in calender 2020.

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Moneycontrol News
first published: Jan 28, 2021 07:13 am
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