Maruti Suzuki India's (MSI) stock slumped over 4 per cent in just 40 minutes this afternoon, after the company announced its first quarter results since the numbers were lower than analysts' estimates. The stock closed at Rs 9,396.65 apiece on the BSE. Ironically, the country's largest carmaker has posted its highest profit growth in 18 months in the quarter under review.
In a regulatory filing, MSI reported an impressive 26.91 per cent increase in standalone net profit to Rs 1,975.3 crore for the quarter ended June 30, up from Rs 1,556.4 crore in the corresponding period of the previous fiscal.
The operating profit stood at Rs 2,631.3 crore, a growth of 59.7 per cent over Q1FY18 on account of higher sales volume, a favourable product mix and the company's cost reduction efforts, including lower advertisement expense. But it was partially offset by adverse commodity prices and forex rates.
"While the operating profit increased by 59.7 per cent, the net profit increased by 26.9 per cent on account of lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year," the company added in a statement.
Its Q1 sales stood at Rs 21,810.7 crore, up from Rs 19,374.1 crore in the year-ago period. However, MSI said the two figures are not comparable as revenues from operation are reported net of GST since the implementation of the new tax regime in July 2017.
The company also posted a strong growth in its vehicle sales. "The Company sold a total of 490,479 vehicles during the Quarter, a growth of 24.3 per cent over the same period of the previous year. Sales in the domestic market stood at 463,840 units, a growth of 25.9 per cent. Exports were at 26,639 units," the company said.
(With PTI inputs)