Shares of Maruti Suzuki India Ltd reversed initial losses to trade over 3% higher on Friday, i.e. 26 July, after the auto maker reported that stand-alone profit fell by 27.3% year-on-year to Rs 1,435.5 crore for the first quarter ended June (Q1). The decline in net profit, though sharp, was lower than what the Street was estimating.
At 2:25 pm, Maruti Suzuki shares were trading at Rs 5,839.65 apiece, up 1.4%, on BSE after hitting an intra-day high of Rs 5,955 immediately after the announcement of June quarter results. The stock had hit an intra-day low of Rs 5,683.90 earlier in the day.
Maruti Suzuki’s revenue declined 12.2% year-on-year to Rs 19,719.8 crore in the June quarter on the back of 18% fall in sales volumes. Net sales stood at Rs 18,735.2 crore, down 14.1% compared to the year-ago quarter. The company had sold 4.01 lakh units in the June quarter.
Profit was estimated at Rs 1,350 crore on revenue of Rs 19,244 crore for the June quarter, as per a poll of analysts conducted by CNBC-TV18.
Ebitda (earnings before interest, depreciation and amortization) stood at Rs 2,047.80 crore in the June quarter, while margins slipped by 450 basis points year-on-year to 10.4%.
Other income increased over three times to Rs 836.4 crore in the June quarter against Rs 271.8 crore in the year-ago period.
Maruti Suzuki said Q1 earnings were hit by higher sales promotion expenses, depreciation and low capacity utilisation. However, lower advertisement expenses, cost reduction efforts, favourable exchange movement and favourable commodity prices, were helpful for the company.
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