Carmaker Maruti Suzuki came out with results that beat expectations. The company announced today that it posted a net profit of Rs 1709 crore in the quarter ended March 2017, up 15.8% over the year-ago quarter. The company attributed the increase in profit to growth in volumes, increased share in its higher segment models, full capacity utiliszation and cost reduction efforts. Higher commodity prices and adverse forex movement limited the upside, the company said.
The stock is witnessing a choppy ride today. After a fairly good start that resulted lifted it to a new all-time high, and a subsequent decline, the stock edged up only to turn weak again around mid morning. And then, after slowing inching higher, the stock turned volatile and swung a bit wildly post announcement of results.
At Rs 6397, Maruti Suzuki is now down marginally. Earlier, after advancing to a high of Rs 6444 in opening trades, the stock touched a low of 6342.30.
Sales were up 15% in the fourth quarter of 2016-17, over prior corresponding quarter. Net sales were up 20.3%. During the year, Maruti Suzuki sold 15.68 lakh vehicles, 9.8% more than its sales in the previous year.Domestic sales increased 10.6% in 2016-17.
For the full year, Maruti Suzuki posted a net profit of Rs 7337.7 crore, up almost 37% over a year ago. Maruti Suzuki's board of directors recommended a dividend of Rs 75 per share of face value of Rs 5, for 2016-17. In the previous financial year, the company had given a dividend of Rs 35 per share.
