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Maruti Suzuki India Ltd Neutral
MRTI.BO, MSIL IN
Mar '11 - Sales grew 28% yoy
• March sales at 121,952 units: Sales growth continued to be driven by
the domestic segment (+39% yoy), while exports declined (-26% yoy).
For FY11, Maruti has reported sales of 1.27m units (+25% yoy).
• Domestic segment sales at 110,424 (+39% yoy): Driven by the mass
market A2 segment (+43% y/y), Eeco (+33% y/y), and A3 segment
(+34% y/y), while the entry level M800 sales were up just +6%y/y.
• Discounts rise in March: Discounts rose over March for the passenger
car industry as OEMs offered cash discounts and promotional schemes
in the festive month (including LCV TVs, holiday packages, etc.). As
per dealers, Maruti Suzuki offered up to Rs40,000 discount on select
models, while Hyundai offered up to 45,000 and Honda up to 55,000.
We will wait to see whether this trend extends into April.
• Export sales continue to moderate: Maruti’s export shipments at
11,528 units (-26% yoy) declined, given sedate demand in Europe. In
FY10, exports to Europe were 77% of volumes. In FY11, the OEM
broad based exports to non-European countries - this resulted in
increased contribution from non European markets to 57%, as against
23% in FY10.
• During the month, the stock declined 1% m-o-m and underperformed the
broad BSE Sensex (+5% m-o-m) on concerns relating to rising interest
rates and the impact of the recent earthquake in Japan. We reiterate our
Neutral stance on the stock, given that rising competitive intensity will
likely impact growth/profitability
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Maruti Suzuki India Ltd Neutral
MRTI.BO, MSIL IN
Mar '11 - Sales grew 28% yoy
• March sales at 121,952 units: Sales growth continued to be driven by
the domestic segment (+39% yoy), while exports declined (-26% yoy).
For FY11, Maruti has reported sales of 1.27m units (+25% yoy).
• Domestic segment sales at 110,424 (+39% yoy): Driven by the mass
market A2 segment (+43% y/y), Eeco (+33% y/y), and A3 segment
(+34% y/y), while the entry level M800 sales were up just +6%y/y.
• Discounts rise in March: Discounts rose over March for the passenger
car industry as OEMs offered cash discounts and promotional schemes
in the festive month (including LCV TVs, holiday packages, etc.). As
per dealers, Maruti Suzuki offered up to Rs40,000 discount on select
models, while Hyundai offered up to 45,000 and Honda up to 55,000.
We will wait to see whether this trend extends into April.
• Export sales continue to moderate: Maruti’s export shipments at
11,528 units (-26% yoy) declined, given sedate demand in Europe. In
FY10, exports to Europe were 77% of volumes. In FY11, the OEM
broad based exports to non-European countries - this resulted in
increased contribution from non European markets to 57%, as against
23% in FY10.
• During the month, the stock declined 1% m-o-m and underperformed the
broad BSE Sensex (+5% m-o-m) on concerns relating to rising interest
rates and the impact of the recent earthquake in Japan. We reiterate our
Neutral stance on the stock, given that rising competitive intensity will
likely impact growth/profitability
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