Even as Maruti volumes surge, costs remain a drag

Price increases are likely to remain calibrated and some input price pressure needs to be absorbed.


To be sure, volume growth at the maker of Baleno and Brezza remains encouraging. Traction on customer booking continues to remain healthy and reached 2.15 lakh units and network inventory has dropped to just 21,000 units. This leaves ample room on volume surprise for the next few months.

ET Intelligence Group: Input cost inflation isn’t just a catchphrase invented by talking heads on prime-time television. It is beginning to pinch — so much so that the country’s biggest carmaker is undershooting Street estimates of profitability.At 27.5 per cent, Maruti Suzuki reported its lowest gross margin in nearly seven years in the December quarter. Gross margins tell the effect of raw material costs on profitability, and in the past 12

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