Maruti Suzuki stock unlikely to pick pace; Q1 net profit declines 27%

However, it is still on better terrain than competitors, say analysts

Led by the sharpest volume fall in recent quarters, India’s largest passenger vehicle maker posted a 14 per cent year-on-year dip in revenues in the June quarter. Muted consumer sentiment, higher prices, and liquidity issues meant that Maruti Suzuki sold 18 per cent fewer vehicles over the year-ago quarter. 

The falling volume trend is expected to continue in the near term with the management stressing that market sentiment remains weak and that there has been no demand traction. Delayed monsoon has affected demand in the rural market; higher funding and running costs are being reflected in falling walk-ins and enquiries.  

While revenues