Maruti Suzuki is expected to continue posting strong set of earnings in December quarter as well. Profit is estimated to jump 74 percent year-on-year to Rs 1,395 crore, driven by new launches during the quarter.
Revenue is seen rising 18.5 percent to Rs 14,911 crore in Q3 compared to Rs 12,576 crore in same quarter last fiscal, led by strong volume growth.
New launches like Baleno, S-Cross, Ertiga significantly boosted volumes. Maruti sold 3.74 lakh vehicles in Q3, a growth of 15.5 percent over a year-ago period.
Compact car segment volumes increased 23 percent due to new Baleno and Celerio while utility vehicle segment (SCross and Ertiga) saw 57.6 percent year-on-year growth at 27,291 units.
Analysts expect 2.6 percent annual rise in realisations due to success of Baleno. In Q2, realisations per unit rose 2.6 percent Y-o-Y to Rs 3.88 lakh aided by product mix that shifted towards high priced vehicles.
Operating profit (earnings before interest, tax, depreciation and amortisation) may jump 55 percent to Rs 2,466.3 crore and margin may expand 390 basis points to 16.5 percent during October-December quarter.
Analysts feel 7.5 percent appreciation in yen against rupee could impact margins by 110 basis points but yen appreciation may be more than offset by lower commodity prices, 0.5 percent price hike and moderation in advertising spends.
Maruti's market share improved 200 basis points in passenger vehicle segment to 47 percent in FY16 year-to-date due to success of new launches against 45 percent in 2015, 42 percent in 2014 and 39.4 percent in 2013.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
