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SML Isuzu gains post May sales

SML Isuzu gains post May sales SML Isuzu has moved higher by 7% to Rs 1,055 on the BSE after the company reported 37% year on year (YOY) growth in sales to 1,929 units in May 2016. The commercial vehicles maker had sold 1,405 units in May 2015.

For the first two months (April-May) of the current financial year 2016-17, the company sold 3,333 units as against 2,281 units sold in the previous year, up 46%.

Since May 10, the stock however underperformed the market by falling 1% after reported March quarter results. The S&P BSE Sensex gained 4% during the same period.

SML Isuzu has posted 31% year on year (YoY) growth in net profit at Rs 16.7 crore in Q4FY16 against Rs 12.74 crore in a year ago quarter. Net sales declined 1% at Rs 316 crore on YoY basis.

The board has recommended a dividend of Rs 8 per equity share for the financial year ended March 31, 2016.

The board also approved a proposal for raising long term borrowings by way of external commercial borrowings (ECB) for partial funding of capex plan of Rs 220 crore, from The Bank of Tokyo-Mitsubishi UFJ Ltd., Japan, in the nature of unsecured loan, for an amount up to Rs 140 crore designated in US dollars.

At 01:49 AM, the stock was up 5.5% at Rs 1,042 on the BSE compared to 0.49% gain in the benchmark index. A combined 236,528 shares changed hands on the counter on the BSE and NSE.