Maruti Suzuki Q4 Results Preview: Stellar earnings expected amid easing supply chain issues and new launches

Maruti Suzuki India– India’s largest car manufacturer – is expected to report a stellar set of financial results for the quarter ended March 2023 on Wednesday, April 26, 2023, with double-digit percentage growth in both top-line and bottom-line on easing supply chain issues and rising volumes on account of product launches.

According to Zee Business research, Maruti Suzuki is likely to report a net profit of Rs 2,800 crore for the three-month period, which translates to growth of 52.3 per cent compared with the corresponding period a year ago.

The auto major’s revenue is estimated at Rs 32,500 crore for the final three months of the financial year gone by, as against Rs 26,740 crore for the year-ago period.

The analysts peg Maruti Suzuki’s earnings before interest, taxes, depreciation and amortisation (EBITDA) – a measure of the company's overall financial performance – at Rs 3,550 crore for the three-month period, marking a jump of 46.3 per cent.

They estimate the carmaker’s margin – a key measure of a business's profitability – at 10.9 per cent, an improvement of 180 basis points on account of a rise in input costs.

According to the research, Maruti Suzuki India is likely to register growth of 5.4 per cent in volumes for the quarter ended March 2023, leading to an estimated 17.7 per cent rise in realisations.

Sharekhan expects the auto major to outperform in terms of operating performance.

According to the brokerage, Maruti Suzuki’s entry-level products are facing demand challenges in certain pockets.

Maruti Suzuki shares finished the March quarter with a decline of 1.3 per cent, still better than a 4.1 per cent fall in the Nifty50 headline index