- 30 Jan 2025
- ICICIdirect Research
MSIL REPORTED HEALTHY PERFORMANCE IN Q3FY25
MARUTI - 12345 Change: 21.75 (0.18 %)News: MSIL reported healthy performance in Q3FY25. Sales volume for the quarter stood at 5.6 lakh units, up 13% YoY. Total operating income for Q3FY25 came in at ₹ 38,492 crore with ensuing ASPs at ₹6.5 lakh/unit, down 1.1% QoQ. SUV share of sales in total domestic PV sales volume stood at ~40%. EBITDA margins for the quarter came in at 11.6%, down 26 bps QoQ. Consequent PAT in Q3FY25 came in at ₹3,525 crore, up ~12.6% YoY and ~15% QoQ. During the quarter, increase in sales promotion and high average discounts at ₹31,000 impacted the EBITDA margin profile.
View: MSIL witnessed a positive demand trajectory during this festive season. Consequently, it expects retail sales volume to grow at YTD growth trend in Q4FY25 i.e. ~3.5% YoY. For MSIL, rural demand is outpacing urban demand with rural growing by 15% while urban grew by 2.5%. CNG portfolio continues to perform well at the company at ~33% share in volumes. In the export front the company saw excellent growth from LATAM & Africa while clocking ~99k units (highest ever) up by 38% YoY. Post the recent correction, MSIL now trades at ~20x PE on FY27E, which is lower than its long period averages. On the back of government stimulus, MSIL expects its volumes to grow 6%-7% in FY26E. However, amid tepid growth prospects in the near term, we have a neutral view on the stock.
Impact: Neutral