Maruti Suzuki, the country’s largest car maker, has reported a 9.8% on year de-growth in second quarter profit to Rs 2,240.4 crore, dented by weak operational performance and subdued sales volume.
– Profit in corresponding period last fiscal stood at Rs 2,484.3 crore.
– Revenue from operations for the quarter increased 3% YoY to Rs 22,433.2 crore despite fall in sales volume. Driven by higher average selling price (ASP).
– Sales volume during the quarter was subdued as the company sold 4,84,848 vehicles, down 1.5% YoY.
– Rising crude oil and fuel prices have impacted sales volumes.
– Higher upfront insurance payment of nearly Rs 9,000 on an average has impacted cost of owing car.
– Will continue to make efforts to deliver a 10% volume growth YoY.
– Will be a difficult task to deliver and meet 10% growth guidance.
– Maruti Suzuki Brezza still remains on a 6-month waiting period.
RC Bhargava, Chairman, Maruti Suzuki India said, “Conditions have changed for the worse in last months.The festive season sales are subdued compared to last year. If the big jump in sales does not happen then OEMs will be left with inventories” Though the second quarter of the 2018-19 Financial Year has not been that good for the company, the first half of the financial year that is April – September 2018 has been a fruitful one.
Maruti has halted at the Fibonacci confluence zone of 6452-6626. The fall has halted at the upper confluence zone of 6626. This is zone is definitely a good support as it is on the monthly charts. The stock has fallen unabated for the past two months and hence a retracement from current levels is a high probability. The current zone is also the 38.2% of the swing hence a good support. The big bear candle that the stock made last month is definitely negative and hence the stock should not be bought on the dips as of now.