Maruti Suzuki Concept Future-S
Shares of Maruti Suzuki India have dipped 2.5% to Rs 8,721 per share, falling 5% from their intra-day high of Rs 9,142 per share on the BSE, after the automaker reported a lower than expected net profit of Rs 18.82 billion due to higher tax outgo in March quarter (Q4FY18). It had profit of Rs 17.11 billion in year ago quarter.
Net sales during the quarter under review grew 14.4% to Rs 206 billion against Rs 180 billion in previous year quarter. The tax outgo doubled from Rs 5 billion to Rs 10 billion during the quarter.
Analysts on an average had expected profit of Rs 20.98 billion and revenues of Rs 208 billion for the quarter.
The operating EBIT (earnings before interest and tax) margin declined 120 bps to 11.2% in Q4FY18 from 12.4% in Q4F17.
The operating profit was Rs 23.12 billion, a growth of 24.4% over the same period previous year on account of higher sales volume, cost reduction efforts, partially offset by adverse commodity prices & higher advertisement expenses, Maruti Suzuki India said in a press release.
"Increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year impacted net profit," it added.
At 03:13 pm; the stock was trading 2% lower at Rs 8,794 on the BSE, as compared to 0.73% rise in the Sensex. A combined 1.88 million shares changed hands on the counter on the BSE and NSE.