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Arihant Capital
Maruti Suzuki (Hold)
CMP: ₹3,740
Target: ₹4,053
Maruti Suzuki’s (MSIL) Q4FY15 net revenue at ₹13,273 crore was better than expectations. Domestic volumes increased 6.2 per cent y-o-y while export volumes increased 12.4 per cent. Thus total volumes increased by 6.7 per cent y-o-y to 3.46 lakh units. Blended net realisations increased by 5.2 per cent on y-o-y basis to ₹3.83 lakh.
Q4FY15 operating profit (Ebitda) was at ₹2,164 crore, with Ebitda margin at 15.9 per cent. Ebitda margins increased by whopping 551 bps due to soft raw material cost, higher realisations, lower discounts and favourable exchange rate.
Company has guided for 11-12 per cent volume growth for FY16, better than SIAM industry growth guidance of 6-8 per cent.
Diesel share continued to decline from 53 per cent in FY14 to 48 per cent in FY15 for the industry. For MSIL it declined to 30 per cent from 32 per cent during the same period. MSIL introduced Swift, Dzire and Ertiga in Latin American and African market. Company targets to export about 1.20 lakh vehicles in FY16 which is same almost similar to FY15.
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