By:- Dhruv Joshi, Research Analyst, Mirae Asset Sharekhan
Although revenue for the company grew 26% y-o-y to Rs.53340 crores the raw material inflation which grew 48% y-o-y for the company hampered profitability which declined 27% y-o-y. Gross/EBITDA/PAT margins declined by 414bps/308bps/327bps y-o-y highlighting the deteriorating impact of the raw material cost. Maruti continues to struggle with cost optimization and operational leverage despite strong volume performance and price hikes.
