A robust demand through the festive season and new launches like Alto K10, new WagonR and Eeco helped Maruti Suzuki (MSIL) post its highest ever quarterly sales of 331k units. Domestic volumes rose an impressive 36.8% to 300k units. However, soft demand in Europe led to a 20.3% decline in exports to 31k units.

.. Higher contribution from the A2 segment (Alto and WagonR) and MPV (Omni and Eeco) has led to a dilution in product mix. As a result, inspite of price hikes undertaken realisations are expected to remain flat at Rs286k/unit. Revenue is expected to be higher by 28.6% to Rs96.5bn.

.. Double whammy of higher input costs and increased royalty payouts will take a toll on margins. Inspite of higher operating leverage, margin is expected to decline 450bps YoY to 10.6%.

.. Due to decline in margins, reported PAT to decrease by 9.3% to Rs6.2bn.