Maruti Suzuki shares surged as much as 4.20 per cent on Tuesday despite posting 11.7 per cent decline in net profit to Rs 1,133.6 crore for the fourth quarter ended March 31. Share price of the company surged after the automaker posted better-than-expected margins for the quarter ended March 2016.
At 1.43 pm, Share price of the company was trading 3.59 per cent up at Rs 3868.40. The scrip opened at Rs 3868.40 and has touched a high and low of Rs 3891.25 and Rs 3691.00, respectively, in trade so far.
Later, the scrip closed 3.62 per cent up at Rs 3,869.45.
Net sales during the January-March quarter of 2015-16 rose to Rs 14,929.5 crore, up 12.5 per cent against Rs 13,272.5 crore in the same period of 2014-15.
EBIDTA margin of the company slid 60 basis points to 15.7 per cent for the quarter ended March 2016. However, Reliance Securities was expecting 116 basis points yoy contraction in EBIDTA margin due to limited volume growth and expected increase in marketing costs.
Bottomline of Maruti Suzuki fell 11.70 per cent year-on-year to Rs 1,133.6 crore for the fourth quarter ended March 31, hit by Jat reservation agitation in Haryana and higher advertising expenses.
Maruti reported its highest-ever annual profit of Rs 4,571 crore for the year ended March 31, up almost 25 percent.