Maruti Suzuki

Though the company’s topline showed a decent increase, its margins were hit by the one-time GST expense and increased raw material cost.

The company, but for this expense, has done very well. Net revenue rose 16% (YoY) at Rs.19,777 crore and net profit was up 4% at Rs.1556 crore. The company sold 3,94,571 vehicles, including export of 26,140 units, during June quarter, up 13%. EBITDA was up 5% at Rs.2331 crore.

The company managed to offset higher raw material costs through effective cost reduction. Raw material price was up 270 bps at 72% of net sales, but reduction in employee costs, depreciation and other expenses helped shore the margins. The one-time dealers' compensation for GST – this was tax loss incurred by dealers on vehicles in stock at the time of transitioning to GST;  this has been shown under deferred tax, which is up from Rs.41 crore to Rs.184 crore.