What Maruti Q1 result means for investors | Economic Times

As the demand environment improves, Maruti hopefully will be able to pass on more of the cost hikes which it is currently absorbing, says Aditya Makharia, V-P, Equity Research, HDFC Securities. On Maruti Q1 resultAt the operating level, the results were disappointing. The only point to mention is that we are seeing the impact of the second Covid Wave on several other companies as well. Having said that, Maruti has been facing some margin pressures over the last two-three quarters and we hope that as the demand environment improves, the company will be able to pass on more of the cost hikes which it is currently absorbing. Also, in the medium term, as technology transitions towards hybrids and electric cars, Maruti will hopefully benefit because of its collaboration with Toyota. On whether to lower price targets lower for MarutiIt is fair to assume that there is a certain amount of pricing pressure which the company is facing especially given that the commodity costs have risen quite a lot. So we will take a call once the conference call with Maruti is over.