About the Company:
Maruti Suzuki India Limited, an automobile manufacturer in India is a 56.21% owned subsidiary of the Japanese car and motorcycle manufacturer Suzuki Motor Corporation. The company has been spearheading a revolution of change with the infusion of new technology and design to meets customer's new age expectations smoothly. As of July 2018, it had a market share of 53% of the Indian passenger car market.
QoQ & YoY Performance:
India’s biggest Automobile has declared the results for the second quarter of the financial year ending March 2020.
- Net Profit After Tax: The company’s Net profit during the quarter marginally grew by 1.04% at Rs 13,911 crore in September 2019 as against Rs 13,768 crore in June 2019.
- Net Revenue: Net sales sharply dropped by 13.86% of Rs. 169,979 crores during the quarter compared to Rs.197,326 crores in June 2019.
- Business Segmental Growth: The Company sold a total of 338,317 vehicles during the Quarter, lower by 30.2% compared to the same period the previous year. Sales in the domestic market stood at 312,519 units, lower by 31.4%. Exports were at 25,798 units.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock closed at Rs. 7395.95 per share today. This year the automobile industry contracted by several factors, the decline in revenue that impacted profit margins. Hence, we recommend it ‘HOLD’, fresh buying is not advisable.