Maruti Suzuki stock falls 1.5% on Rs 2,966 crore tax demand order; what’s next?
The shares of Maruti Suzuki fell on Wednesday, March 26, by 1.5 per cent to an intraday low of Rs 11,720 per share. Though the inventory trimmed losses, it was nonetheless buying and selling 0.43 per cent down at Rs 11,845.85 as of 11:30 AM, regardless of the general Sensex hovering 0.14 per cent decrease.
The autumn got here after the corporate’s announcement that it obtained a draft Evaluation Order from the Earnings Tax Division for FY 2021-22. The order sought additions and disallowances of Rs 2,966 crore towards the earnings disclosed by the corporate.
No monetary or operational setback, says Maruti Suzuki
Even because the looming tax demand loomed giant, Maruti Suzuki gave traders the consolation that the draft order has no bearing on its monetary, operational, or different enterprise operations. The corporate will enchantment towards the evaluation earlier than the Dispute Decision Panel.
Maruti Suzuki Q3 FY25 earnings snapshot
The auto firm registered good bottomline numbers throughout Q3 FY25 with standalone revenue at Rs 3,525 crore, up 12.6 per cent 12 months on 12 months (YoY) over Rs 3,130 crore in Q3 FY24. Topline accelerated 15.6 per cent YoY at Rs 38,492.1 crore towards Rs 33,308.7 crore for a similar quarter final 12 months.
On the operational stage, EBITDA went up 14.4 per cent YoY to Rs 4,470.3 crore, whereas the margins had been primarily flat at 11.6 per cent vs 11.7 per cent in Q3 FY24.
Market efficiency and outlook of Maruti Suzuki
The car maker’s shares have been underneath stress for the previous few weeks with a 52-week vary of Rs 10,725 to Rs 13,680. At the moment, Maruti Suzuki holds a market capitalisation of Rs 3,71,152.24 crore in line with BSE knowledge.
Whereas the tax evaluation order has raised issues, Maruti Suzuki’s robust earnings and strategic development plans might present assist to its inventory. Analysts will carefully watch the end result of the tax dispute and its potential monetary implications within the upcoming quarters.
Maruti Suzuki: A frontrunner in India’s auto business
Established in 1981 as Maruti Udyog, it grew to become Maruti Suzuki India Restricted in 2007 after Suzuki Motor Company raised its stake. It’s nonetheless India’s largest passenger automobile maker, making fashions such because the Alto, Baleno, Vitara, and Ertiga in its Gurugram and Manesar factories that mixed have a capability of 1.5 million models yearly.
Traders shall be watching carefully as the difficulty over the tax evaluation evolves, in addition to watching how Maruti Suzuki continues to carry sway over India’s automotive market.
