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Shares of Maruti Suzuki India (MSIL) (up 4 per cent at Rs 10,390) and Mahindra & Mahindra (M&M) (up 2 per cent at Rs 1,604.55) hit their respective new highs on the BSE in Friday’s intra-day trade on reporting a strong August sales numbers.
In a press release, MSIL said in August 2023, the company sold a total of 189,082 units, which is its highest ever monthly sales volume. Total sales in the month include domestic sales of 158,678 units, sales to other OEM of 5,790 units and exports of 24,614 units.
The stock of the automobiles major quoted higher for the fifth straight day as shares surged 9 per cent during this period. In comparison, the S&P BSE Sensex was up less than 1 per cent during the week. A day before on Thursday, MSIL surpassed its previous high of Rs 10,036.70 touched on July 5, 2023.
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MSIL on August 29 announced that it has appointed Arnab Roy as the new Chief Financial Officer (CFO). Arnab will assume responsibilities starting as the CFO – Designate from October 16, 2023 and full-time CFO of the company with effect from January 1, 2024.
MSIL also announced intentions to consider stock split as per shareholder’s requests and said it plans to invest Rs 45,000 crore ($5.4 billion) to double its annual production capacity to 4 million vehicles by 2031.
In its FY23 annual report, the company said it is optimistic on the long-term growth potential of Indian passenger vehicle industry. For its parent, Suzuki Motor Corporation (SMC), the company is an important subsidiary. Therefore, SMC is making all efforts to strengthen the future competitiveness of the company.
Meanwhile, shares of M&M too hit a new high of Rs 1,604.55 in intra-day trade today, and have rallied nearly 6 per cent in past one week. The stock surpassed its previous high Rs 1,594.85 touched on July 13.
At 02:41 pm; M&M’s market capitalisation (m-cap) stood at Rs 1.99 crore, nearing Rs 2 trillion. Currently, MSIL (Rs 3.13 trillion) and Tata Motors (Rs 2.22 trillion) from automobiles have m-cap more than Rs 2 trillion.
In a press release, M&M said it has sold the highest ever SUV units at 37,270 vehicles, a 26 per cent year-on-year growth, and overall, 70,350 vehicles in August 2023.
While demand for the company’s key SUV brands continue to be strong, the management said it is keeping a close watch on the availability of semi-conductors and select parts, for sustained and smooth scaleup.
On August 29, CARE Ratings reaffirmed ratings for existing bank facilities of the M&M. The reaffirmation of the ratings for the bank facilities of M&M continues to factor its strong market position with leadership in the domestic tractor industry, light commercial vehicles (LCV) segment and electric vehicle (EV)-three wheeler segment and well-diversified business profile.
"During FY23, M&M recorded a healthy revenue growth of 46.7 per cent, driven by volume growth and higher realisations. The operating margins remained stable at 11.46 per cent in FY23 despite a 51.7 per cent increase in the cost of goods sold. Going forward, we expect M&M to maintain its growth momentum. Softening of raw material prices, too, is expected to improve margins going ahead," the credit ratings agency added.
