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Maruti Suzuki rebounds post Q4 results

Maruti Suzuki India has moved higher by nearly 4% to Rs 3,862, recovering 5% from intra-day low on the National Stock Exchange (NSE), after the company reported 11.7% year on year (YoY) decline in net profit at Rs 1,134 crore for the quarter ended March 2016 mainly on account of higher expenses and lower other income.

“Loss of over 10,000 units due to reservation agitation, increased advertising expenses and lower other income slightly impacted profits during the quarter,” Maruti Suzuki India said in a statement.

Net sales however increased by 12.5% to Rs 14,930 crore against an average analyst estimate of Rs 14,837 crore.

Material cost to net sales lower by 190 basis points due to benefit of material cost reduction initiatives and to some extent offset by higher sales promotion expenses.

The board of directors recommended a dividend of 700% or Rs 35 per share of face value of Rs 5 for 2015-16.

At 01:15 pm, the stock was up 3.3% at Rs 3,854 on the NSE as compared to 1.1% rise in the benchmark Nifty 50 index. The trading volumes on the counter more than doubled with a combined 1.79 million shares changed hands on the NSE and BSE so far. The stock hit an intra-day low of Rs 3,692 before the announcement of Q4 results.