The Maruti Suzuki India Limited’s shares have declined 20 percent from their 52-week high in January on the National Stock Exchange (NSE).
The automaker has announced its March quarter results. Accordingly, earnings before interest, tax, depreciation and amortization (Ebitda) margin stood at 8.3 percent, 120 points down as compared with December quarter.
The company’s net profit declines by 10 percent year-on-year basis to Rs 1,116 crore. However, Bloomberg poll of analysts had estimated Maruti’s net profit at Rs 1,699 crore.
However, for the March quarter, Maruti’s operative revenues, though, have increased by 32 percent over the same period last year to Rs 24,024 crore.So far, this calendar year, Maruti’s share have declined by 14 percent to a 5 percent gain in the broader Nifty 100 index.
According to Mitul Shah, head of research at Reliance Securities,” this is due to higher raw material cost and the tag effect of price hike to pass on cost escalation”.