The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst
: The first question is actually a clarification on the quarterly results. A, just wanted to check in, are there any one-off gains or one-off items which
are lumpy, which are kind of lifting our margin profile for the quarter? And second is a clarification on the change in inventory position. That seems
to be quite significant this quarter. And does it have any bearing from an accounting standpoint on the margin numbers what have been reported
for the quarter?
Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst
: Sorry, Rahul sir, I'm sorry to interject, apologies, but I was more referring to the P&L line item of change in inventories, not the physical inventory
at dealers. Basically, there is a INR 800-odd crores inventory movement item in the P&L, which is reducing your RM to sales ratio. Just wanted to
understand the accounting intricacies there because there is some confusion because we got some client feedback that this explains a big chunk
of the margin expansion, that INR 815 crores. So if you can just help us understand this from an accounting standpoint, whether does it have any
one-off impact or any impact whatsoever on the underlying profitability of the company for the quarter.
Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst
: And, Ajay Seth, thanks a lot for clarification. And just to make it even more clear, so for the volumes what we've done and for the mix what we have
done and where the commodity and other elements are, this is kind of the margin what one can expect. Ceteris paribus, the 12.9% margin, what
you've reported. Everything remaining constant, everything remaining steady state, this would be the kind of profitability what you would have
with this volume and this kind of a mix and whatever discount levels. Is that understanding right?
Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst
: Fair enough, sir. And sir, if you can just help us understand the discount number for the quarter, average discount, and the export revenue, that
would be really helpful? And then I had 1 follow-up question on the demand side. General demand color, yes.
Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst
: Okay. And sir, on the demand side, you've heard Shashank Srivastava on the business channels recently. I just wanted to understand if you can
provide some regional color on the demand, urban versus rural, geographical spread because what we understand is South is a bit weakish because
of the weak monsoon, especially for some other categories. So if you can just help us understand to get some more granularity on the demand
what you're seeing in the festive so far. And also going into Dhanteras and then Diwali, how is the inquiry frequency booking conversion ratio or
-- how is the demand scenario looking for the rest of the season, sir?
Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst
: And Maruti should do better?
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OCTOBER 27, 2023 / 11:45AM, MRTI.NS - Q2 2024 Maruti Suzuki India Ltd Earnings Call
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