Shares of Maruti Suzuki India plunged despite the automaker posting a rise in third-quarter profit on Tuesday.
Maruti Suzuki India share price plunged today despite the automaker posting a rise in fiscal third quarter net profit on Tuesday, amid slowing sales. Maruti Suzuki India Ltd (MSIL) stock settled at Rs 6,999, down 149.80 points or 2.10 per cent on NSE. The country’s largest auto manufacturer reported a 5.1 per cent rise in Q3 FY20 net profit at Rs 1,565 crore as against Rs 1,489.3 crore in the corresponding period of last year as the carmaker sold more vehicles. However, net profit was short of street estimates. A CNBC-TV18 poll had estimated the profit of Rs 1,676 crore in the third quarter of FY20. Maruti posted a 5.3 per cent rise in revenue of Rs 20,707 crore in the third quarter as against Rs 19,668 in the year-ago period. Maruti posted an 8.9 per cent rise in EBITDA at Rs 2,101 crore as against Rs 1,931 crore.
Maruti Suzuki sold a total of 437,361 vehicles during the quarter, 2 per cent more compared to the same period the previous year. Sales in the domestic market stood at 413,698 units, higher by 2 per cent. Exports were at 23,663 units. During the quarter, the company registered net sales of Rs 196,491 million, higher by 3.8 per cent compared to the same period the previous year.
Meanwhile, the benchmark equity gauges Sensex and Nifty tumbled further on Tuesday as investors continued to engage in sell-offs for the second day in a row today. At the closing bell, the 30-share BSE Sensex was down 188.26 points, or 0.46 per cent, at 40,966.86 — its weakest level in over six weeks. During the day, the index swung over 463 points. Likewise, the broader NSE Nifty settled the day 63.20 points, or 0.52 per cent, down at 12,055.80.