Tuesday 26 April 2016

Maruti Suzuki Q4 operating profit margin likely to decline

Maruti Suzuki, one of the largest automobile companies in the country, will announce its financial results for the quarter ended March 31, 2016 on April 26, 2016. 

Maruti Suzuki, one of the largest automobile companies in the country, will announce its financial results for the quarter ended March 31, 2016 on April 26, 2016.

As per IIFL’s forecast, the company is expected to register a net revenue of Rs. 14,620 crore, a growth of 7.3 % on yoy basis while a drop of 3.1 % on qoq basis. 

Operating Profit Margin of the company is likely to be at 14.2 %, a 168 bps fall yoy and 19 bps on qoq basis.

IIFL estimates that the company’s net profit is expected to be at Rs. 1,157 crore, a 13.5 % rise qoq while a 9.9 % drop on yoy basis.

Autos are to register strong PAT growth (32.4% yoy) with most major players, except Maruti and Bharat Forge, doing well.

Currency movements will have significant bearing on margin movement. For Tata Motors (JLR in particular) and Bajaj Auto movement has been favourable, while it is adverse for Maruti and Hero Motocorp.

Maruti has seen a sharp increase in contribution of UVs to its portfolio.

Other key Q4 results on April 26 include Axis Bank, Biocon, Mahindra Lifespace Developers, Bharti Infratel, Rallis India, Swaraj Engines, Syngene International and Agro Tech Foods.

Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines. 


stock price: 
Maruti Suzuki India Ltd is currently trading at Rs. 3728, down by Rs. 6.3 or 0.17% from its previous closing of Rs. 3734.3 on the BSE.
The scrip opened at Rs. 3715 and has touched a high and low of Rs. 3740 and Rs. 3691 respectively. So far 141662(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 112805.73 crore.
The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 4789 on 23-Nov-2015 and a 52 week low of Rs. 3202.1 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 3843.75 and Rs. 3654.2 respectively.
The promoters holding in the company stood at 56.21 % while Institutions and Non-Institutions held 37.09 % and 6.7 % respectively.
The stock is currently trading above its 200 DMA.

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