Maruti Suzuki stock drops 2% as April sales disappoint the Street

Maruti Suzuki stock: Shares of Maruti Suzuki India dropped nearly 2 percent to Rs 12,577 in morning trading on May 2 following reports of a significant decline in sales of its mini cars and compact cars in April.

By 9:20 am, the stock was trading at Rs 12,593, marking a 1.8 percent decrease from the previous day’s close on the NSE. Despite a 25 percent rally over the past three months, the company’s shares experienced a setback.

Maruti Suzuki reported total sales of 1,68,089 units in April, showing a 5 percent increase from the same period last year but a decline compared to the previous month. However, domestic passenger vehicle sales saw a marginal rise to 1,37,952 units, up from 137,320 units in the same period last year. -Maruti Suzuki stock

In April, sales of mini-segment cars like Alto and S-Presso fell to 11,519 units, a decrease from 14,110 units in April 2023. Similarly, sales of compact cars, such as Baleno, Dzire, Celerio, and Ignis, saw a significant decline of 24 percent to 56,953 units compared to the same period last year.

Maruti Suzuki

Conversely, sales of sports utility vehicles (SUVs) such as Brezza, Fronx, Grand Vitara, and Invicto surged by a robust 54 percent in April.

For the fourth quarter ending on March 31, 2024, India’s largest four-wheeler OEM recorded a 48 percent increase in net profit, reaching Rs 3,878 crore. This growth was attributed to higher sales volume and favorable commodity prices. 

Throughout the entire financial year, the company’s standalone net profit soared by more than 64 percent, amounting to Rs 13,209 crore, a significant increase from the Rs 8,049 crore recorded in the preceding fiscal year ending March 2023. Simultaneously, its total revenue from operations experienced a 20 percent increase, reaching Rs 140,933 crore for the fiscal year ending March 2024, up from Rs 117,523 crore recorded in FY23.

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