Maruti Suzuki - Q4FY22 First Cut - ICICI Direct

(CMP: Rs. 7,672; MCap: Rs. 2.32 lakh crore)

Maruti Suzuki (MSIL) reported healthy performance in Q4FY22 and was comprehensive beat to our estimates on the margins front. EBITDA margins for the quarter came in at 9.1%, up 240 bps QoQ.

Q4FY22 Earnings Summary

Total operating income for the quarter stood at Rs. 26,740 crore, up 15% QoQ (IDirect estimate: Rs. 26,937 crore). Average Selling Price (ASP) came in at Rs. 5.22 lakh/unit, up 1.3% QoQ (I-direct estimate: Rs. 5.25 lakh/unit). Q4FY22 volumes were at 4.9 lakh units, up 13.5% QoQ. Of this, domestic volumes grew by 15% QoQ to 4.2 lakh units, while exports volumes rose by 5.3% QoQ to 0.7 lakh units

EBITDA in Q4FY22 stood at Rs. 2,427 crore with corresponding EBITDA margins placed at 9.1%, up ~240 bps QoQ (IDirect estimates: Rs. 1,991 crore, 7.4%). Margin performance was the real positive surprise with savings realised under all costs line items. Gross margins expanded by 174 bps QoQ while employee costs & other expenses were down by ~35 bps & ~30 bps respectively

Consequent PAT in Q4FY22 came in at Rs. 1,839 crore, up 81.8% QoQ (I-direct estimate: Rs. 1,362 crore). PAT outperformance was due to higher operating margins and lower effective tax rate (~16%). Management informed about ~2.68 lakh units as pending order book as of FY22 end. Further it declared a dividend of Rs. 60/share for FY22

Due to adverse working capital cycle, the cash generation at the company was muted Cash Flow from operations at ~Rs. 1,800 crore with consequent FCF being negative for FY22

We will be coming out with a detailed report soon.

Shares of Maruti Suzuki India Limited was last trading in BSE at Rs. 7732.75 as compared to the previous close of Rs. 7887.95. The total number of shares traded during the day was 28028 in over 4596 trades.

The stock hit an intraday high of Rs. 7945.00 and intraday low of 7630.55. The net turnover during the day was Rs. 219622712.00.

Source : Equity Bulls

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MarutiSuzukiIndia INE585B01010 53 Q4FY22 FirstCut ICICIDirect