Maruti Suzuki Q1 preview: Leading passenger vehicle maker to likely see margins expand by 230 bps

Maruti Suzuki, the country’s leading passenger vehicles maker, is slated to report its April-June quarter earnings on Wednesday (July 31). The company's net profit during the quarter is seen to jump 31.2 per cent on year to Rs 3,260 crore as against Rs 2,485 crore in the same period last year. The standalone revenue at the firm is also seen to log to 7.2 per cent uptick year-on-year and is expected at Rs 34,650 crore versus Rs 32,327 crore in Q1FY24.

Similarly, EBITDA- a key profitability metric is likely to register 33.4 per cent growth on-year to Rs 3,980 crore as against Rs 2,983 crore in the same quarter last year.

Zee Business research desk estimates volume at the company to clock 4.8 per cent growth during the reporting quarter to 5.2 lakh units. The company's SUV segment is seen to register 29 per cent on-year growth during the reporting quarter. Furthermore, realisations at the leading auto major is seen to clock 3.4 per cent growth to 6.71 lakh per unit.

On the margin front, the company is expected to see 2.3 per cent or 230 bps expansion in margins led by better product mix and operating performance. Margin during the quarter are expected at 11.5 per cent versus 9.2 per cent in the same quarter last year.

Key monitorables

The investors will keep an eye on the new launches timeline as well as the margin guidance for FY25. Also, outlook on production and export market will be watched out for.

Maruti Suzuki share price performance

Shares of the company in the last one year have zoomed 32 per cent, while at the last count ahead of its Q1 tomorrow, shares traded on a muted note at Rs 12,721.3 per share on the BSE.