Further, the brokerage house expects Maruti's total operating income in Q3FY20 at Rs 22,346 crore, up 13.6 per cent YoY, and 31.6 per cent QoQ.
Kotak Securities expects Maruti's Q3FY20 revenue at Rs 22,707.8 crore while profit is seen at Rs 1,746.4 crore, up 17.3 per cent on a YoY basis.
"We expect revenues to increase by 16 per cent yoy in 3QFY20 led by 2 per cent increase in volumes and 9 per cent yoy increase in ASPs due to introduction of new safety regulations for entry-level cars and migration of the petrol portfolio to BS-VI," the brokerage said.
According to the brokerage, Maruti's earnings before interest, tax, depreciation and amortization (EBITDA) is likely to increase by 33 per cent YoY in the quarter, led by an increase in revenues and 150 bps expansion in margin driven by operating leverage benefits, partly offset by higher discounts. The brokerage house sees Maruti's Ebitda at Rs 2,567.3 crore compared to Rs 1,931.1 crore in the year-ago quarter, a 32.9 per cent YoY growth.
According to Reliance Securities, realisation is expected to have grown by 9 per cent due to product-mix and price hikes. Better operating leverage and product-mix would expand margin despite higher discounts.
Meanwhile, Prabhudas Lilladher has retained a strong overweight on Maruti as it is expected to be the first and biggest beneficiary of a demand revival.
At the bourses, Maruti outperformed the benchmark index during the October-December quarter by surging 8.6 per cent as compared to 7.7 per cent gain in the S&P BSE Sensex.