Volumes keep Maruti's growth engine humming

Rising raw material costs can weigh on margins in coming quarters

Higher raw material costs and lower-than-expected realisations dented an otherwise strong operating performance by Maruti Suzuki in the September quarter, though it was ahead of estimates on the profit front. The market leader in passenger vehicles continues to outperform the sector, growing its volumes by 17.5 per cent over the year-ago quarter to 492,118 units. Though the passenger vehicles sector also grew in double digits (13.4 per cent), Maruti continues to gain share. Its fiscal year-to-date market share stands at 50.5 per cent, against 47.4 per cent in FY17. 

On the back of strong volume growth and a three per cent