9,890% Profit Growth: Auto stock jumps 5% after reporting strong Q4 results

This Commercial Auto Stock is in focus after it reported its Q4FY25 results with a robust Net Profit and revenue growth of 9,890 percent and 132.22 percent, respectively. The board also recommended a dividend of 180 percent.  

With a market capitalisation of Rs. 2,747 Crore, the stock of SML Isuzu opened at Rs. 1,840, around the same level as yesterday’s close, but after opening, it made a high of Rs.  1,936, up 5.42 percent. Additionally, the Yearly return for the stock is -10 percent, and the past 5-year return is an impressive 408 percent.

Financial Highlights & Dividend Announcement

The company reported a 13.38 percent YoY increase in revenue from Rs. 680 Crore in Q4FY24 to Rs. 771 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 132.22 percent in revenue from Rs. 332 Crore in the previous quarter.

Their Net profit saw an increase of 1.20 percent YoY from Rs. 52.32 Crore to Rs. 52.95 Crore for the same period. On a QoQ basis, the company reported an impressive increase of 9,890 percent in Net profit from Rs. 0.53 Crore in the previous quarter.

The Huge increase in Net Profits on a QoQ basis can be attributed to the doubling of Revenue to 132 percent for the same period and a controlled increase in expenses.

The Board recommended a dividend of Rs. 18 per share or 180 percent of the face value of Rs. 10 per share. The dividend will be subject to approval by the shareholders at the Annual General Meeting (AGM).

Also Read : Why Did Mazagon Dock Shipbuilders Crash 8% Today? Here’s What You Need to Know

About the Company

With over 40 years of experience, SML ISUZU is a well-known commercial vehicle manufacturer. The Company has experience in producing Light & Medium commercial vehicles to meet the Indian customer needs. It was the first company to manufacture and supply state of the art fully built Buses, Ambulances and customised vehicles. 

Mahindra & Mahindra in April had announced that it had entered into an agreement to acquire a 58.96 percent stake in SML Isuzu at Rs. 650 per share, which was an outlay of Rs. 555 Crore. M&M also mention that they would also launch a mandatory open offer for athe cquisition of up to 26% stake from eligible public shareholders of SML in accordance with the SEBI Takeover Regulations.

Written By Abhishek Das

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