Analysts were disappointed with the earnings and expressed concerns that the impairment might lead to some rating action
RBI's move may be beneficial as it is seen improving consumer sentiment
We will keep the discipline on operating margins and growth rates as we look at acquisitions, says Gurnani
The company has highlighted some tailwinds to support the margins
With growth prospects strong, valuations are 45% lower than 10-year average
With consumers deferring purchases, the company may have to rethink price hikes
Volume expansion continues to be strong, aiding top line
Load factors to remain under stress amid aggressive capacity addition
The company indicated that weak sales for the sector over the last couple of months were on account of rise in product costs due to upfront insurance charges and also the NBFC issue
Its premium valuations are, however, expected to sustain
The last time the sector did better than the benchmark indices was in 2016, led by oil PSUs, select banks and power sector plays
The rural segment - which accounts for 35-40% of sales - saw better growth than urban markets with the outperformance pegged at 1.3 times
Improvement after Indus merger has been factored in, but valuations not demanding
The company indicated that it would continue to grow its advertising revenues faster than the industry
Stability in pricing for the second consecutive quarter may bring back buoyancy
Fall in truck volumes and pressure on non-auto segments are the negatives
The company, however, believes that new model launches and China revival will lead to a reversal in fortunes
Multiple headwinds have dented the company's September sales
Client additions, digital revenues, weak rupee should aid revenue growth
The new launches of Mahindra & Mahindra expected to improve market share, which has been lagging its key competitors