Maruti Suzuki Q2 Results Preview: Automaker's profit likely to soar 53% due to volume growth, new model launches, and discounts

Maruti Suzuki  Q2 Results Preview: Maruti Suzuki's standalone profit is likely to see a huge jump while revenue from operations would also rise substantially as the automaker announces its September quarter results on Friday (October 27), as per Zee Business research.

Analysts say that the company's volume growth courtesy new model launches and discounts for low-end models will boost the its PAT and revenue growth in the quarter under review.

Research estimates the standalone profit to soar by 52.8 per cent to Rs 3,150 crore against Rs 2,062 recorded in the same quarter last fiscal.

The analysts also predict Maruti Suzuki's revenue from operations to soar to Rs 37,000 crore in the quarter under review from Rs 23,931 crore Year-on-Year (YoY), translating into a jump of 23.6 per cent.

Research says the volumes of the cars of the company are estimated to rise 6.7 per cent to 5.52 lakh units YoY.

The significant jump in the volumes is likely to happen because of new car model launches and the company offering discounts for low-end car models during the June–September quarter.

The company's EBIDTA is also expected to skyrocket 46.3 per cent to Rs 4,050 crore in Q2 compared to Rs 2,769 crore in the corresponding period last fiscal.

Research estimates the realization for the company to increase by 17.8 per cent to 6.81 lakh/unit in the second quarter.

A better product mix and a price hike will be the factors behind the rise in realization.

Analysts say the company has managed lower input costs and better operating leverage, which are likely to translate into higher margin growth.

The margin growth for the company is likely to rise to 10.9 per cent in the second quarter from 9.3 per cent in the year-ago period.

As far as the result commentary is concerned, the research team advises investors to keep an eye on the update on the bookings of newly launched vehicles like Fronx, Grand Vitara, Invicto, and Jimny and also to focus on the production outlook.