Maruti Suzuki Q2 Results Preview: Analysts Expect Growth in Bottomline

Maruti Suzuki India Ltd. is set to announce its financial results for the September quarter on Friday. Standalone net profit is projected to climb to Rs 3,571 crore from Rs 3,069 crore in the year-ago period, as per analysts’ consensus estimates compiled by Bloomberg.

Shift in Consumer Behaviour

This festive season, the automotive industry witnessed a significant shift in consumer behaviour with demand for entry-level cars rising compared to two-wheelers, which have been traditionally preferred, stated the owner of a Maruti Suzuki dealership in Uttar Pradesh in conversation with NDTV Profit.

India’s automotive market saw its brightest Dhanteras yet, with more than one lakh passenger vehicles reportedly sold over the two-day period. The total retail value of these sales is projected between Rs 8,000 and Rs 8,500 crore, according to industry estimates, Autocar India reported.

GST 2.0 Reforms Drive Up Demand

According to industry experts, the GST 2.0 reforms that came into effect from Sept. 22 also drove up the demand for entry-level cars. To know more about the impact of GST 2.0 reforms on the automotive industry, read our detailed analysis.

Q2 Expectations

Revenue is expected to rise 12.2% to Rs 39,930 crore versus Rs 35,589 crore. Ebitda is expected to decline to Rs 4,229.8 crore from Rs 4,416.6 crore, while margin is expected to contract to 10.6% from 12.4%. Net profit is expected to rise to Rs 3,571 crore from Rs 3,069 crore.

The automaker had reported a tepid quarterly performance in the corresponding quarter last year. The standalone net profit of the Swift maker fell 17.4% year-on-year to Rs 3,069 crore in the three months ending Sept. 30, on the back of revenue that grew 0.4% to Rs 37,203 crore.

Stock Performance

Shares of Maruti Suzuki closed 0.32% higher at Rs 16,190 apiece on the National Stock Exchange on Thursday, compared to a 0.68% decline in the benchmark Nifty. The stock has risen 43.97% in the last 12 months and 49.25% on a year-to-date basis. For more information on Maruti Suzuki’s stock performance, visit our website.

Investor Sentiment

The Indian stock market has been witnessing a significant surge in investor sentiment, driven by positive Q2 earnings results and a stable economic environment. To stay updated on the latest Indian stock market news, follow our blog.