Strong Growth Expected
Maruti Suzuki, India's largest car manufacturer, is expected to report strong financial results for the fourth quarter of FY24 (Q4FY24). Analysts predict a significant year-on-year (YoY) growth in net profit, driven by better pricing and healthy sales volume.
Net profit: Analysts expect a YoY growth of over 40% in net profit, reaching approximately Rs 3,884 crore. This represents a 24.1% increase compared to the previous quarter (Q3FY24).
Revenue is projected to grow by 21.2% YoY and 16% QoQ to Rs 38,838.2 crore. This growth is attributed to a 13.4% YoY and 16.5% QoQ increase in volume.
EBITDA is expected to jump by 53% YoY and 31% QoQ to Rs 5,119.5 crore. This increase is driven by better net pricing and scale.
The EBITDA margin is expected to expand by 223 basis points YoY and 95 basis points QoQ to 12.7%. This expansion is attributed to the increasing mix of utility vehicles (UVs) in sales.
Demand outlook: The demand outlook, especially for rural and entry-level segments, will be a key factor to watch.
The higher tax outgo in Q4FY24 is expected to be around Rs 1,217.2 crore, up 93% YoY and 32% QoQ.
Overall, analysts are optimistic about Maruti Suzuki's Q4FY24 results. The company is expected to benefit from strong demand, better pricing, and a favorable product mix.