Maruti Suzuki shares surge 7 pct post Q2 earnings result

Written by Reuters | Mumbai | Updated: Oct 29 2013, 19:54pm hrs
Maruti Suzuki sharesMaruti Suzuki net profit was 6.7 billion rupees ($109 million) compared with the mean estimate of 5.52 billion rupees by 12 analysts. Reuters
Shares of Maruti Suzuki India today soared by 7 per cent after the company's net profit surged nearly three-fold for the second quarter ended September.

Reacting to the numbers that were announced post market hours yesterday, the scrip of the country's largest car-maker surged 6.91 per cent to Rs 1,617.55 on the BSE.

On the NSE, the stock zoomed 6.98 per cent to Rs 1,619.

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.

Maruti Suzuki India Ltd'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.