Maruti Suzuki - Q3 Results - Above Estimates - Aditya Birla Money

Maruti Q3 results - above estimates; rich valuation, but bunch of positives going for it; Positive in the short term

During Q3FY13, Maruti registered a topline growth of 45.6% to Rs. 109.56 bn from Rs. 75.27 bn on corresponding basis (Both Q3FY12 had strike impact). Domestic Volume increased by 26.98% to 2.68 lacs from 2.11 lacs (Exports increased by 17%). Favourable product mix (Swift, Dzire, Eritga) had improved the price realisation by 16% (YoY) thus resulted in operating margins (above 8%). PAT increased by 143.79% to Rs. 5.01 bn.

Broadly, the results were above estimates on all parameters. Even though the valuation are rich compared to industry peers, the benefits of yen depreciation, price hike (jan 13) and favourable product mix (higher diesel & new products without discounts) would help them to continue trade at premium to its peers in the near to medium term.

Source : Equity Bulls

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