Maruti margins can rise to double digits with some tailwinds

Despite the supply squeeze that resulted in a production loss of around 35,000 units in the second quarter, Maruti Suzuki was able to sell 517,000 units. The mix of the higher operating leverage from greater production and internal cost controls aided the improvement of the operating margin by 200 basis points to 9.3% in the September 2022 quarter. Operating profit per vehicle rose to a 16-quarter high of ₹55,516 per vehicle.

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