single

Meanwhile, the S&P BSE Sensex was down by 216.88 points, or 0.56% to 38,513.94. The BSE S&P Auto index was down 1.19%, underperforming the Sensex.

TVS Motor Company (down 3.41%), Tata Motors (down 3.27%), Bajaj Auto (down 1.57%), Mahindra & Mahindra (down 1.09%), Escorts (down 0.42%), Hero MotoCorp (down 0.4%), Eicher Motors (down 0.3%), Maruti Suzuki India (down 0.27%) declined. Ashok Leyland was up 0.24%.

The Society of Indian Automobile Manufacturers (SIAM) reported that domestic passenger vehicle sales declined 17.54% to 2.25 lakh units in June 2019 over June 2018.

The domestic car sales have fallen 24.07% to 1.39 lakh units in June 2019 over June 2018. The total two wheeler sales declined 11.69% to 16.49 lakh units, while the sales of commercial vehicles fell by 12.27% to 70,771 units during the period under review.

Meanwhile, a foreign brokerage expects auto companies' Q1 to be one of the weakest quarters in recent times. For its coverage universe (ex-JLR), the brokerage forecast 5% YoY revenue decline and EBITDA/PAT is likely to decline 23%/34% YoY. Margin is likely to come off by 250 bps YoY on lower operating leverage, the brokerage explained. However, lower commodity prices will support margin by 50-100 bps in Q1 & Q2.

TAGS

0 thoughts on “Auto shares skid on weak June sales”

Post Comment



  Nifty Future Tips

Nifty future is nothing but the index future where the underlying is the S&P CNX Nifty index. In India, index futures trading started in 2000 in NSE. For Nifty futures contracts, the permitted lot size is 50, and in multiples of 50. Like other futures contracts, Nifty future tips contracts also have a three-month trading cycle - the near-month, the next month and the far-month.


View My Stats