Maruti Suzuki shares surge over 5% on robust earnings
Mumbai: Shares of Maruti Suzuki India (MSI) on Friday surged over 5 percent, after the company reported 79.4 percent jump in standalone net profit for the quarter ended March 31.
Cheering the robust earnings, shares of the company shot up by 6.33 percent to Rs 1,690.40 -- its one-year high level on the BSE in intra-day. It finally ended at Rs 1,673.45, up 5.26 percent, in an overall weak stock market.
At NSE, the stock zoomed up by 5.22 percent to close at Rs 1,674.
The scrip was the top gainer on both Sensex and Nifty.
The market-cap of the country's largest car maker rose by Rs 324 crore to Rs 48,347 crore.
"Strong contribution from diesel vehicle sales also contributed to growth as well as profitability," said Gautam Sinha Roy, VP Equities, Motilal Oswal Securities Ltd.
Defying tough market conditions, MSI today reported its highest ever quarterly profit at Rs 1,147.5 crore for the period ended March 31, up 79.4 percent from the same quarter a year ago.
The company had registered a net profit of Rs 639.8 crore during the corresponding period last year. Its profit becomes even bigger at Rs 1,239.6 crore when the numbers of the merged entity Suzuki Powertrain India Ltd (SPIL) are added.
The jump in net profit was driven by good sales of models like Ertiga, DZire and Swift, cost reduction and localisation effort and the benefit of a favourable exchange rate.
Net sales during the fourth quarter of the last fiscal went up by 9.4 percent to Rs 12,566.6 crore from Rs 11,486.4 crore in the year-ago period.
During January-March period, MSI sold a total of 3,43,709 vehicles, down 4.6 percent from 3,60,334 units in the same period last year.
The benchmark Sensex ended at 19,286.72, down 120.13 points.