India’s largest car maker Maruti Suzuki is on the roll witnessing new heights of sale and profit. The Quarter 2 report for September witnessed a 3.4% rise in net profit. The stock price also rose by 0.41% closing at Rs 8,101.20.
The Giant Auto Dealer Records New Success in the Automobile Industry
The implementation of GST didn’t impacted much to the sales of Maruti Suzuki as the company majorly deals in mini cars. The end of Q2 FY 2017-18, proved out to be satisfying for the India’s largest car maker. The automobile giant reported a profit of Rs 2484 crores in YoY sale with a total rise in 3.4% sale in comparison to the last year’s profit that stood at Rs 2398 crores. Though the rise in YoY comparison was lower to the last year’s profit as the last year (2016) report saw a 60% rise in comparison to the results of 2015.
The company also witnessed a huge rise of 59.6% profit on quarterly basis. It reported a profit of Rs 1556.40 crores in the last quarter of June, 2017. The company reported a profit of Rs 21, 768 crores in the September quarter that shows a 21.8% rise in profit in comparison to the last year that stood at Rs 17,869 crores.
Stock Price Rise
The Q2 release had a positive impact on the stock prices as the share rose by 0.41% or Rs 33.15 and closed at Rs 8,101.20 which previously was at Rs 8,068.05. Positive sentiment of good results triggered a rise in stock price of nearly 355 points from Rs 7,746 in the last five days. The market started with a sudden rise crossing Rs 8,184 but couldn’t survive till the end of the day it fell down by 83 points.
Holding the Head High with Steady Growth and Positive Future Expectations
The company has firm belief that the third quarter will see rise in the sales. Maruti Suzuki’s sale was extremely successful with 19.4% growth in comparison to last year in terms of unit sold. For the September quarter, the company sold 492,118 units in which 457,401 units were sold domestically while 34,717 units were exported. The operating profit increased by 24 percent while the net profit rose to 3.4%, relevantly lower due to new tax base, advertisement cost and impact on commodities.
It is expected that sale will be steady and may continue to rise especially in the ongoing quarter due to festive seasons. Till now for the FY 2017-18, the company has sold 886,689 units, 15.6% more than the FY 2016-17. A blossoming future waits ahead!
Government is eyeing this data to counter critics on economic slowdown as spending on two wheelers and four wheelers have witnessed a steep rise this year in spite of GST and demonetization; which means that the spending pattern is still on a rising curve.