Can Maruti sustain its high margin?
- The management hopes to sustain margins in the second half of this financial year primarily banking on a higher thrust on premiumization.
Maruti Suzuki India Ltd is in top gear. It clocked record sales volumes and revenue in the September quarter (Q2FY24). But the hero was Ebitda margin at 12.9%, beating expectations. Investors rewarded this by taking the stock to a new 52-high week of ₹10,845 apiece on Friday. Easing commodity costs (particularly precious metals), favourable product mix and cost saving initiatives boosted profitability. Analysts have now upgraded their FY24/FY25 earnings estimates for Maruti.