SML Isuzu zooms ahead

Shares of SML Isuzu, formerly Swaraj Mazda, are up about 1.5% at are currently trading at Rs. 910 a piece after the company announced splendor sales numbers for December 2014, post-market hours last evening. Share made a high of 941 in opening trade.

In line with the revival in the commercial vehicle (CV) market witnessed for other players like Ashok Leyland and Force Motors, SML Isuzu, which makes light and medium CVs in the 5-12 GVW (gross vehicle weight) category, sold 1,073 units in December 2014, vis-à-vis 660 units in December 2013 i.e. a 63% jump in sales figure year-on-year. On a sequential basis, the sales are more than double, as in November 2014, company sold 533 units. Thus, third quarter sales tally for FY15 aggregates to 2,160 units (up 12% YoY), while sales for 9 month FY15 at 8,297 units is 13% higher than the corresponding period of last year which clocked sales of 7,326 units.

While December is perceived as a strong quarter for auto industry at large, the momentum seen across the CV players implies healthy Q3 results for them. Hence watch out for the results announcements in the following weeks.