Mumbai: Shares of Maruti Suzuki on Tuesday settled with gains of 2.12 percent, thereby adding Rs 2,311 crore to its market capitalisation.
Reacting to the robust earnings, shares of the company opened on a bullish note at Rs 3,650, then gained further ground and touched an intra-day high of Rs 3,704, up 2.64 per cent from its previous close on the BSE.
Accordingly the market capitalisation of the company improved by Rs 2,311 crore to Rs 1,11,322.54 crore.
Maruti Suzuki India today reported 17.8 percent increase in net profit at Rs 802.2 crore for the third quarter ended December 31, 2014, driven by robust sales numbers.
The company, which had posted a net profit of Rs 681.15 crore in the same period last fiscal, said material cost reduction initiatives and favourable foreign exchange have also contributed to its bottomline.
"Higher volumes, material cost reduction initiatives and favourable foreign exchange contributed to the bottomline during the quarter," the company said in a statement.
Speaking to analysts, MSI Chief Financial Officer Ajay Seth said market conditions were still weak and may take some more time for demand to pick up fully.
"The (current) situation indicates that we have to support sales with incentives...The quantum of average discounts during the quarter across models was around Rs 21,000 per vehicle," he said, adding the discounts were unlikely to be withdrawn before the second half of next fiscal.
Seth said the withdrawal of excise duty concessions and resultant price increase has impacted sales, particularly in the entry level segment.