Automobile companies feel the impact of GST in Q1 results
Several automobile companies reported an impact due to the rollout of GST and a one-time charge incurred as they had compensate dealerships for unsold inventory.
Key highlights:
- The implementation of GST had an impact on revenues of automobile companies
- Mahindra reported a one-time impact of Rs 144 crore due to GST
- Bajaj Auto too incurred a one-time cost of Rs 32 crore due to GST
The automobile industry have seen poor results in the first quarter of FY18. Issues such as the Bharat Stage III (BS-III) vehicle emission norms ban, rising raw material costs and the implementation of the goods and service tax (GST) had an impact on revenues of these companies during the quarter.
The largest car manufacturer in India, Maruti Suzuki saw its net profit rise by a marginal 4.4% during Q1 FY18. This was due to a higher deferred tax provision even as sales, including exports grew by at a good pace.
The net profit of the company increased to Rs 1,556 crore during the quarter from Rs 1,490.9 crore in the same quarter this year.
Exports remain a sore point for Maruti Suzuki in Q1
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