Maruti Suzuki shares zoom nearly 9% on impressive Q2 earnings
Mumbai: Shares of Maruti Suzuki India Tuesday shot up by almost 9 percent, its biggest single-day gain this year, after the company's net profit surged nearly three-fold for the quarter ended September 30.
Maruti Suzuki's scrip gained 8.19 percent to settle at Rs 1,636.90 on the BSE. During the day, the stock surged 8.88 percent to Rs 1647.40.
At the NSE, the stock rose by 8.75 percent to close at Rs 1,645.75.
In the process, the company's market capitalisation swelled by Rs 3,743 crore to Rs 49,447 crore.
Earlier in April, Maruti's shares had jumped by 7.23 percent.
"Maruti Suzuki reported impressive results for Q2 FY14, ahead of our as well as consensus estimates, driven by strong growth in exports, favorable exchange rate and cost control measures," said Yaresh Kothari, Research Analyst, Auto, Angel Broking.
The scrip was the best performer among the blue-chips on both the key indices -- Sensex and Nifty -- during the morning trade.
Maruti Suzuki India had yesterday said its net profit surged nearly three-fold to Rs 670.23 crore for the second quarter ended September 30 on account of sales effort especially in rural areas, cost reduction initiatives and positive impact of foreign exchange.
The company had posted a net profit of Rs 227.45 crore in the corresponding period last fiscal.
The company also benefited from unusually low levels of profit in the second quarter of last year (July-September 2012) owing to labour problems in Manesar.
The company's net sales during the quarter under review stood at Rs 10,211.83 crore as against Rs 8,070.11 crore in the same period a year ago.