Maruti: One-offs take shine off top line; volume outlook remains strong

While overall sales are robust, margins-which came in at 14.2 per cent-were over 150 basis points lower than analysts' estimates, given a sharp rise in other operating expenses

Maruti Suzuki’s March quarter numbers were a mixed bag. While the top line, led by strong volumes and higher realisations, came in better than estimates, the operating performance pegged back by higher operating expenses dented margins. One-off interest costs led to lower net profits, which came in below estimates. The stock, which has gained about 38 per cent over the past year, shed 2 per cent after the results were announced. 

There is, however, nothing to complain about as far as volume performance is concerned. Even as the sector struggles with single-digit growth, consumers can’t have enough of India’s largest