Maruti Suzuki, Hyundai, Tata Motors and Toyota all reported double-digit growth
Shares of Maruti Suzuki India (MSIL) have slipped 4% to Rs 9,391 per share on the BSE after the company reported lower-than-expected 26.9% growth in net profit at Rs 19.75 billion in June quarter (Q1FY19). The country’s largest car maker had profit of Rs 15.56 billion in year ago quarter.
During the quarter, the company registered net sales of Rs 218.1 billion, up 27.3% over the same period previous year.
Analysts on an average had expected profit of Rs 23.24 billion on net sales of Rs 225.8 billion for the quarter.
“While the operating profit increased by 59.7%, the net profit increased by 26.9% on account of lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year,” MSIL said in a press release.
Motilal Oswal Securities had expected the company’s net profit to increase 47.5% to Rs 22.9 billion and net revenues by 28.5% to Rs 225.4 billion over the previous year quarter.
“We expect revenues to increase by 29% yoy in Q1FY19 on the back of 24% yoy volume growth and 4% yoy increase in ASPs due to a better product mix. We expect EBITDA to increase by 54% yoy in Q1FY19 led by strong revenue growth and operating leverage benefits (260 bps increase in EBITDA margin on yoy basis),” Kotak Securities had said in June 2018 quarter earnings preview.
At 01:38 pm; the stock was trading 3.7% lower at Rs 9,400, falling nearly 5% from opening levels of Rs 9,833 on the BSE. The trading volumes on the counter more than doubled with a combined 800,090 equity shares changed hands on the BSE and NSE so far.