Maruti Suzuki shares gain as company hikes prices of select vehicles
The auto major had already raised prices in January and April this year, with an overall hike of around 3.5%.
Shares of Maruti Suzuki advanced in the morning trade after the car major on Monday announced a price change for select models owing to an increase in various input costs. The weighted average price increase in ex-showroom prices (Delhi) across select models is 1.9%. Earlier, Maruti Suzuki India on August 30 informed that over the past year the cost of its vehicles continues to be adversely impacted due to an increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise.
The scrip traded 0.93% higher at Rs 6926.95 at around 11 am (IST) on the BSE. On the other hand, the benchmark equity index Sensex traded 0.23% higher at 58,275 at around the same time.
This is Maruti Suzuki’s third price hike this year. The auto major has already raised prices in January and April this year, with an overall hike of around 3.5%. At present, the company sells a range of models from entry-level hatchback Alto to S-CROSS, priced between Rs 2.99 lakh and Rs 12.39 (ex-showroom prices Delhi) lakh, respectively.
On a consolidated basis, the auto major’s net profit stood at Rs 475 crore in Q1 FY22, compared with a net loss of Rs 268.30 crore posted in Q1 FY21. Consolidated net sales surged 356.6% to Rs 16,799.90 crore in Q1 FY22 over Rs 3,679 crore in Q1 FY21.
The country’s largest carmaker Maruti Suzuki India (MSIL) last week reported a 5% increase in total sales at 1,30,699 units in August 2021, amid electronic components shortage. It had sold 1,24,624 units in the same month last year. Total domestic sales were at 1,10,080 units, as compared to 1,16,704 units in the same month last year, down 6%.
Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).