Views on Maruti Suzuki India Ltd 4QFY2017 Results: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst - Auto & Auto Ancillary, Angel Broking):

"Maruti Suzuki India Ltd. (MSIL) reported 4QFY2017 operating results in line with the consensus estimates. MSIL's revenues grew by 20% YoY to INR 18,333 crore (consensus INR 18,276 crore). This was driven by 15% volume growth during the quarter, led by the higher UV sales. Net realization per vehicle grew 4.9% to INR 4.34 lakh, slightly below the consensus estimates. On the margin front, company reported 14% operating margins vs. 15.4% in 4QFY16 and slightly below the consensus expectations of 14.5%. This was due to the higher material cost during the quarter. Other income in this quarter is at INR 445 crore vs INR 538 crore in 4QFY16 and INR 592 crore in 3QFY17. The 4QFY17 PAT came at INR 1,709 crore vs INR 1,476 crore in 4QFY16. Overall, there is no negative surprise in the quarterly results. The Gujarat plant is addressing Maruti's capacity constraints and the company has lined up new models over next couple of years, which is likely to benefit the company going ahead. We currently have an ACCUMULATE rating on the stock."

Shares of MARUTI SUZUKI INDIA LTD. was last trading in BSE at Rs.6762.8 as compared to the previous close of Rs. 6730.7. The total number of shares traded during the day was 38732 in over 2013 trades.

The stock hit an intraday high of Rs. 6788.55 and intraday low of 6710.05. The net turnover during the day was Rs. 261799797.

Source : Equity Bulls

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