The share price of Maruti Suzuki fell over two percent on Thursday after the company reported its earnings for the June quarter.

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The automobile major posted a net profit of Rs 440.8 crore in the first quarter of fiscal 2022 as against a net loss of Rs 249.4 crore for the corresponding period a year ago.

The country’s largest carmaker's revenue came in at Rs 17,770.7 crore in Q1FY22, marking a more than a four-fold increase from Rs 4,106.5 crore in Q1FY21.

Maruti Suzuki’s profit and revenue missed analysts’ estimates. Analysts in a CNBC-TV18 poll had estimated the auto major to report a net profit of Rs 675.7 crore over revenue of Rs 17,929 crore.

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Maruti Suzuki Q1 results: Net profit at Rs 441 crore, misses estimates; revenue jumps four-fold to Rs 17,770.7 cr

Lower sales volume due to COVID-19 related disruption, leading to lower capacity utilization and adverse commodity prices negatively impacted margins, the company said. However, lower sales promotion expenses increase selling prices, and higher non-operating income offset the impact.

Here's what brokerages have to say on Maruti Suzuki's stock and Q1 results:

Morgan Stanley

Morgan Stanley maintained an ‘overweight’ rating and a target price of Rs 8,307 per share.

Troughs in margin, volumes and model cycle keep us overweight. P/E in the context of depressed earnings is also attractive, it said.

Kotak Institutional Equities

Q1 EBITDA was five percent below our expectations due to higher input costs and employee expenses. However, the volume growth outlook remains strong given a strong order backlog, said the brokerage.

It maintained a ‘sell’ rating and a target price of Rs 6,000 per share as it is concerned with market share loss in the SUV segment and rich valuations.

Bernstein

Q1 results reflect challenges on multiple fronts. Commodity prices continue an uptrend and are not fully offset by price increase in recent months, Bernstein said.

Covid-related production disruption impacted operating leverage, while the commencement of provisioning for wage revision in a weak quarter was an additional impact, it noted.

The management commentary indicated a recovery in overall demand, the brokerage firm added.

Bernstein had an ‘outperform’ call with a target of Rs 7,850 per share.

ICICI Securities

Maruti Suzuki India’s (MSIL) Q1FY22 earnings were a miss on consensus estimates as EBITDA margin shrunk 367 bps QoQ to 4.6 percent. Lack of pricing power amidst rising market share pressures is visible.

Continued product onslaught by competition in SUVs is likely to enhance consumer interest, hence keep MSIL’s discounts elevated and price hikes limited. Consumer preferences continue to rapidly move towards SUV body type, which impacts MSIL both at volume and revenue market share levels, ICICI Securities said

It maintained ‘sell’ and cut the target price to Rs 5,242 per share from Rs 5,339 earlier.

At 10:40 am, the shares of Maruti Suzuki were trading 2.18 percent lower at Rs 6,994.10 apiece on the BSE.

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