Maruti Suzuki's Q4 Preview: Anticipates 50% Surge in Net Profit with Sales Boost from Increased SUV

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Maruti Suzuki's Q4 Preview: Anticipates 50% Surge in Net Profit with Sales Boost from Increased SUV

Team FS

25/Apr/2024

Key Points:

Anticipated Performance: India's leading automaker, Maruti Suzuki, is expected to unveil robust fiscal fourth-quarter earnings on April 26, buoyed by a significant increase in volumes and a greater focus on premium SUVs in its sales mix.
Financial Projections: Analysts forecast Maruti Suzuki's Q4 net profit to surge nearly 50 percent year-on-year to Rs 3,916 crore, with revenue from operations expected to soar by 21 percent to Rs 38,772 crore.
Factors Driving Growth: The anticipated revenue growth is attributed to higher unit sales, improved product mix, increased proportion of SUV and export sales. Additionally, the expansion of EBITDA by 43 percent is expected, driven by factors such as a higher share of SUV sales, price adjustments, raw material benefits, and favorable forex movements.

As Maruti Suzuki gears up to unveil its fiscal fourth-quarter earnings on April 26, market anticipation is high for what is expected to be a stellar performance driven by a surge in sales volumes and a strategic emphasis on premium Sports Utility Vehicles (SUVs).

Strong Financial Outlook
Industry analysts are optimistic about Maruti Suzuki's Q4 financial results, with projections indicating a substantial increase in net profit to Rs 3,916 crore, up nearly 50 percent from the previous year. Revenue from operations is also expected to witness a significant uptick, surging by 21 percent to reach Rs 38,772 crore.

Driving Forces Behind Growth
The expected revenue surge is attributed to multiple factors, including higher overall unit sales, an improved product mix, and an increased proportion of SUV and export sales. Analysts estimate Maruti Suzuki's car sales during the January-March quarter to reach 5.84 lakh units, reflecting a notable 13.4 percent increase compared to the same period last year.

Factors such as a higher share of SUV sales, price adjustments, raw material benefits, and favorable forex movements are poised to contribute to the anticipated 43 percent expansion in EBITDA.

Conclusion
Maruti Suzuki's upcoming Q4 earnings announcement is eagerly awaited by investors and industry observers alike, as it is expected to showcase the company's resilience and growth trajectory despite challenges in the automotive sector. With a strategic focus on premium SUVs and a track record of innovation and adaptation, Maruti Suzuki continues to solidify its position as a leader in India's automotive market. As the company prepares to unveil its financial results, all eyes are on the numbers, which are expected to reflect a story of success and sustainability in a dynamic and evolving industry landscape.

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Maruti Suzuki's Q4 Preview: Anticipates 50% Surge in Net Profit with Sales Boost from Increased SUV

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