The company’s revenues in the quarter are expected to surge 30 per cent on-year to Rs 23,704 crore during the quarter helped by a low base in the corresponding quarter a year ago and strong sales volume in the quarter.
In the year ago quarter, Maruti Suzuki’s earnings were dented by the imposition of national lockdown in March that had led to a dramatic fall in sales volumes.
Since the June quarter of last year, the company’s sales volume have been on an upward trajectory on a sequential basis due to unleashing of pent up demand in the country after the end of the national lockdown.
The company’s operating performance is also expected to improve in the March quarter as analysts expect earnings before interest, tax, depreciation and amortization to come in at Rs 2,218.4 crore. For the quarter, analysts expect an improvement in operating margin on a year-on-year basis. However, sequentially it is likely to contract.
Street is betting on the company’s operating margin to trend around 8.8-9.5 per cent, up 30-100 basis points on-year.
More importantly for investors will be the company’s commentary on the impact of the renewed localized lockdowns on demand and inventory levels. Both Mumbai and Delhi are currently under strict lockdown, which has affected dealers in these cities.
