Views on Maruti Suzuki India Ltd 3QFY2016 Results: Angel Broking

Views on Maruti Suzuki India Ltd 3QFY2016 Results: Angel BrokingViews of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Maruti Suzuki India Ltd 3QFY2016 Results:

Operating results in line; lower other income leads to profit miss

"Maruti Suzuki India Ltd. (MSIL) 3QFY2016 operating results adjusted for one off items were in line with our estimates. MSIL revenues expectedly grew 20% YoY to INR 15,082 cr driven majorly by a robust 16% volume growth. New product launches coupled with robust festive demand enabled MSIL to clock strong volumes. Realisation per vehicle grew 4% led by a better product mix. MSIL incurred one off expenditures to the tune of INR 175 cr during the quarter (INR 150 cr on account of inventory decretion and INR 25 cr due to higher employee expenses due to higher bonus declared retrospectively for 21 months). Adjusted for the one-off items, operating margins came in at 15.5% which is line with our estimates. However, MSIL reported lower other income of INR 32 cr (as against INR 102 cr reported in corresponding quarter last year) which led to the Adjusted Net Profit coming in at INR 1,142 cr as against our estimate of INR 1,270 cr. We currently have NEUTRAL rating on the stock."

Shares of MARUTI SUZUKI INDIA LTD. was last trading in BSE at Rs.4097.45 as compared to the previous close of Rs. 4093.55. The total number of shares traded during the day was 118313 in over 12047 trades.

The stock hit an intraday high of Rs. 4114.2 and intraday low of 3927.2. The net turnover during the day was Rs. 476690424.

Source : Equity Bulls

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