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Maruti Suzuki reported a mixed set of numbers for Q1FY22. The top line for the quarter was marginally ahead of expectation on account of better realizations. The top line came in at Rs 17,771 Cr (-26.0% QoQ/ +332.7% YoY). The lower than anticipated level of discounting is likely to have aided realizations which were up 3% QoQ to Rs 5,02,545. The EBITDA came in lower than our expectations on account of higher employee expenses while Gross Margins fared marginally better than expectations. Employee cost as a percent of sales was up 224bps QoQ while RM cost as a percentage of sales was only up by 90bps QoQ. As a result of higher-than-expected Employee expense, the EBITDA was ~17% lower than our expectations, and EBITDA margins at 4.6% were ~98bps lower than our expectations. Gross profit per vehicle was ~1% ahead of our expectation of Rs 1,25,305 per vehicle. The bottom line at Rs 441 Cr missed our expectations on account of lower other income.