Just a clarification, Rahul s an. You said that all the one -offs across all the expense line item, add up to 60 basis points, right?
Yes. And you expect the one-off should ideally roll back to normalized levels? If everything remains same, 60% should be the addition to the margins. Is that understanding right?
Rahul Sir, are there any one -offs in the quarterly results? Given the high retail velocity, what was the per car discount number? I will then follow up on the margins.
The margin numbers look interesting because you were close to 11% last quarter, with the best of the utilization and wholesales and despite offering higher discount. Should I presume, some of this should roll off? How should one look at the margin outlook? Is it probable that Maruti’s margin band has now moved to a double-digit range?
The first question is a clarification on the quarterly results. I just wanted to know, are there any one-off gains or one-off items which are lumpy , which are lifting our margin profile for the quarter? And second, is there a clarification on the change in inventory position tha t seems to be quite significant this quarter and does it have any bearing from an accounting standpoint, on the margin numbers that have been reported for the quarter?
Sorry, Mr. Bharti, I am sorry to interject. Apologies. But I was more referring to the P&L line item of change in inventories, not the physical i nventory at deal ers. Basically, there is a round INR 800 crores of inventory movement item in the P&L, which is reducing your raw material to sales ratio. Just wanted to understand the accounting intricacies there , because there is some confusion , we got so me client feedback that this INR 815 crores explains a big chunk of the margin expansion. So, if you can just help us understand this from an accounting standpoint, does it have any one-off impact or any impact whatsoever on the underlying profitability of the company for the quarter?
Thanks a lot for the opportunity. Congratulations on the excellent set of numbers. My first question, Rakesh and Dinesh is regarding the margin performance last year, we had a very strong margin performance on top of a very strong ASP expansion and volume growth. Out of the 230- bps margin expansion what you shared at the EBITDA level, if you could just help us understand the split, how much of that came from commodity and how much was from mix and how much was from operating leverage? And how do you see these elements, particularly mix going forward in FY '25? That would be my first question.
Yes. The second one is on Qute. I think it's an interesting development that you are exploring Egypt now and start of exports there. But I just wanted to add a question on the fundamentals of the product because we've been having this product for the last many years now, and the export around 4,000-odd units annually to various countries. So given that there is a new opportunity emerging in Egypt for quadricycles, will there be more efforts put on the product side because the product was kind of previewed in or went to market in 2016. So, what are the product plans there? Because it could also become an interesting opportunity in the Indian market as well as future regulations evolve on the safety. So, what is your thinking on the entire Qute platform going forward?
Yeah. Thanks a lot for the opportunity. Niranjan, just wanted to understand, the launches what we've done over the last 2-3 years, if you can jus t help us understand what kind of brand action what we've done. The reason why I asked this is, despite multiple launches in segment, the market share numbers was not kind of adding up. I understand the efforts all put in, in the premium side and the scooter side, but individual category market share and even the overall VAHAN retail share does not reflect that efforts what we are trying to put in and all that. So I’m just trying to understand what is, how long will you, do you expect these kind of things to play out and probably if you can just help us understand number of brands what the company has put in over the last 2 - 2½ years because I understand some of the launches take time to play out and the investments needs to be done on the ground. So, if you can just help us understand the brand action taken so far in the last 2 - 2½ years and what is the kind of brand action one can expect over the next 1 year, Sir?
And if you just can help us understand the current level, how much of the volumes for you o r the revenue split is coming from say, premium scooters and exports, assuming that exports will revive and it's a high growth category. So, this high growth category and focus areas for you, how much is the revenue contribution currently set for this quarter?
Thanks a lot for the opportunity. Two questions, one is a c larification on the receivables. Normally, these kind of receivables also generate interest income right, it is not like you are going to be funding or extending credit for a limited period without any interest cost, interest for the dealer is that understanding right?
Where do you recognize if there is overdue and there is interest which is kind of you receive from the dealer. Where exactly that, does it come in the other income?
Just to follow up on what you talked about spares, we have seen that your spare parts contribution to revenue remains sub -10%, which has been the trend for the last 5 years while some of your peers have seen their spare parts penetration improve from 9.5% of revenue to almost 14%, 15% of their revenues. J ust trying to understand, is there opportunity there? Or what explains such sharp spare parts fall? I'm just trying to understand, is there availability challenges for your spare parts in the aftermarket, which you can address with faster growth in the sp are parts? Because the reason I'm asking this is on the last 5 -10-year horizon, your volume growth has been the fastest in the industry. It's been the highest in industry by a long -- by a wide margin. And so to that extent, I think your spare parts should also be -- ideally should be better than the competitor. So I'm just trying to understand, what is missing here? And are there any sort of plans to improve the spare parts preparation? Because not only helps the customers with better access to quality parts, and also it is much more profitable than the product revenue, core product margins, right? So if you can just help us understand this, sir.
And on the demand side, sir, you said rural has started to have seen some traction. But how do you look at rural versus urban? Because you are one of the few guys who has a portfolio which is relevant in both urban and rural market. So how do you see the rural versus urban bit? Because there is a bit of a thought also that 100cc demand is coming back, rural demand is recovering. And it could kind of have, what do you say, a drag on the scooterization and the premiumization trend. So from your vantage point, how are you seeing these trends playing out, sir?
Continuing with Kapil’s question on other expenditure and your explanation of the launches, we wouldn’t be having this kind of large-scale launch on a regular basis, right , because here you had two launches, both in the international market, which you ’ve never done before. I ’m just trying to understand, is there something which we can expect the other expenses really normalize a bit especially on launch related events and all that going forward?
Fair enough sir.The second question is on the international side, sir related to even EVs. If you can just help us understand what is the path for you in terms of taking electric vehicles to the international market, where are we in that journey and what are the kind of milestones, you're looking especially with X coming onboard now , and even the supplies to BMW starting ? Generally, if you can just comment on the directional trends on the profitability in the EV business, because scale is something we've been working towar ds. So , generally are the EV economics of the business getting better with every passing month as you can ramp up volumes, if you can just make some qualitative color on the EV cost structure as well, sir?
Shenu just for clarification, you've been referring to the market share on the MHCV at 30% plus. But if you look at VAHAN, last in last almost 4 months, the market share is stagnating at around 26% on M HCV between August to October sorry, for the last 3 months. So I'm just trying to understand why is there such a big distance between the SIAM wholesale market share in the retail market share? And that too for almost 4 straight months now. So if you can just help us understand what is missing here? That would be my first question, sir.
Fair enough. Second questio n is on the demand trends. If you can just help us understand the product categories in terms of use case, how they're doing. Because what we learned is that Tipper continues to be strong, but Haulage has started to see some weakness. Even fleet owners have started to talk about weakening trends on the both freight demand and freight rates as well. So if you can just help understand what categories outside of buses, of course, which you've talked about, within the trucking segment, what are the segments which are doing well or which are kind of currently driving demand for you?