SML Isuzu, a commercial vehicle manufacturer jointly owned by Sumitomo Corporation-Isuzu Motors of Japan and the Indian entity Swaraj Vehicles, witnessed a 3% decline in its stock price on September 1st following the announcement of stagnant sales figures for August.
In August, the company sold 1,005 units, a marginal increase from 1,002 vehicles in the same period of the previous year. Cargo vehicle sales experienced a 6% year-on-year (YoY) decline, while passenger vehicle sales showed a modest 3% growth.
This decline in sales contrasts with a remarkable 23% year-on-year increase in vehicle sales reported the previous month.
During the first quarter of FY24, SML Isuzu reported a notable 26.4% YoY rise in revenue from operations, amounting to Rs 632 crore. Net profit also saw substantial growth, reaching Rs 32 crore compared to Rs 2 crore in the corresponding period of the previous year.
Operating profit margins expanded by 400 basis points on a yearly basis, reaching 7%. (Note: One basis point is equivalent to one-hundredth of a percentage point).
On the National Stock Exchange, SML Isuzu's stock closed at Rs 1,308.45, marking a decline of Rs 39.90, or 2.96%, from the previous day's closing price.
SML Isuzu is known for its production of commercial vehicles such as trucks and buses, with a manufacturing facility located in Nawanshahr, Punjab, boasting an annual production capacity of 24,000 units.
In August, the company sold 1,005 units, a marginal increase from 1,002 vehicles in the same period of the previous year. Cargo vehicle sales experienced a 6% year-on-year (YoY) decline, while passenger vehicle sales showed a modest 3% growth.
This decline in sales contrasts with a remarkable 23% year-on-year increase in vehicle sales reported the previous month.
During the first quarter of FY24, SML Isuzu reported a notable 26.4% YoY rise in revenue from operations, amounting to Rs 632 crore. Net profit also saw substantial growth, reaching Rs 32 crore compared to Rs 2 crore in the corresponding period of the previous year.
Operating profit margins expanded by 400 basis points on a yearly basis, reaching 7%. (Note: One basis point is equivalent to one-hundredth of a percentage point).
On the National Stock Exchange, SML Isuzu's stock closed at Rs 1,308.45, marking a decline of Rs 39.90, or 2.96%, from the previous day's closing price.
SML Isuzu is known for its production of commercial vehicles such as trucks and buses, with a manufacturing facility located in Nawanshahr, Punjab, boasting an annual production capacity of 24,000 units.
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