Maruti Suzuki Shares Surge Over 5 Percent on Robust Earnings

Mumbai: Shares of Maruti SuzukiBSE 5.26 percent India (MSI) surged over 5 per cent, after the company reported 79.4 per cent jump in standalone net profit for the quarter ended March 31.

Cheering the robust earnings, shares of the company shot up by 6.33 per cent to 1,690.40 -- its one-year high level on the BSE in intra-day. It finally ended at 1,673.45, up 5.26 per cent, in an overall weak stock market.

At NSE, the stock zoomed up by 5.22 per cent to close at 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 324 crore to 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 reported its highest ever quarterly profit at 1,147.5 crore for the period ended March 31, up 79.4 per cent from the same quarter a year ago.

The company had registered a net profit of 639.8 crore during the corresponding period last year. Its profit becomes even bigger at 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 per cent to 12,566.6 crore from 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 per cent from 3,60,334 units in the same period last year.

The benchmark Sensex ended at 19,286.72, down 120.13 points.

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