Maruti Suzuki’s third quarter profit is expected to jump 29 percent year-on-year to Rs 875 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Maruti Suzuki ‘s third quarter profit is expected to jump 29 percent year-on-year to Rs 875 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Revenue is seen going up 13.4 percent to Rs 12,352 crore in the quarter ended December 2014 from Rs 10,893.8 crore in the year-ago period, driven by better volume growth.
The India’s largest car maker sold 3.23 lakh units during the quarter, up 12 percent compared to 2.88 lakh units sold in the same quarter last fiscal.
Operating profit may climb 19 percent on yearly basis to Rs 1,615 crore and margin may expand 140 basis points to 13 percent in the quarter gone by.
The improvement in margin may be due to favorable forex and operating leverage. The Japanese yen depreciated 7 percent against the rupee on sequential basis in Q3, which may boost margin by 50 basis points Q-o-Q.
Maruti may also get partial benefits of currency in imports as it hedged direct and indirect imports while it may get full benefits of currency in royalty expenses.
According to a poll, product mix deteriorated marginally, and share of higher margin exports & Swift vehicles reduced during the quarter. Discounts may remain flattish on sequential basis, say analysts.
Multiple new product launches in 2015 like SX4 Crossover (a large SUV), WagonR 7 seater and XA- Alpha (compact SUV) may aid sales growth, they say.