Maruti Suzuki (MSIL) 2QFY2015 results were ahead of our estimates on account of lower taxation and higher other income even as the operating performance was in line. Revenues grew 18% yoy to Rs 123.04 billion primarily led by 17% yoy volume growth. Realisation/vehicle at Rs 372,675 grew marginally by 1% yoy. On the operating front, EBIDTA margins at 12.4% declined marginally 20 bp on yoy basis. The margins were in line with our estimates of 12.2%. Raw material expenditure as percentage of sales increased 190 bp yoy thereby exerting pressure on margins, said Angel Broking.

Commenting on the result, Bharat Gianani, research analyst, automobile, Angel Broking, said, ''However higher other income at Rs 1.94 billion (26% yoy growth) boosted profitability. Further MSIL tax rate at 20.2% (as compared to 23.8% in 2QFY14) was lower which further enhanced profitability. Net Profit at Rs 8.62 billion was ahead of our estimate of Rs 7.95 billion. Going ahead, we would await management commentary on new product launches, status of the Gujarat plant and localization initiatives. Currently, we have Neutral rating on the stock.''     

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