GST, rising input costs hurt Maruti Q1 numbers

The net sales of country's biggest car maker expanded almost 17% to Rs 17,132 crore

The country’s largest carmaker, Maruti Suzuki, reported a 4.4 per cent increase in profit to Rs 1,556 crore for the quarter ended June. This was after four quarters of double-digit growth in this measure.

It said a higher deferred tax provision, firm commodity prices, sales and marketing expenses, and compensation to dealers for transition to the new goods and services tax (GST) had impacted their margins. The impact of GST compensation for the input tax credit loss on inventory, as of June 30, was estimated at Rs 80-85 crore.

The profit growth had been 23 per cent in last year’s June quarter.