Maruti Suzuki shares fell as much as 4 per cent on Friday after the company registered lower-than-expected results for the third quarter ended December 2015. Net profit of the auto maker grew 27.06 per cent year-on-year to Rs 1,019.30 crore during the quarter under review.
At 1.40 pm, shares of Maruti Suzuki were trading 0.47 per cent down at Rs 4070.45 on BSE. The scrip opened at Rs 3933.95 and had touched a high and low of Rs 4,081.35 and Rs 3,927.20, respectively, in trade, so far. Later, the scrip closed 0.10 per cent up at Rs 4097.45.
Karvy Stock Broking in a research report said, “Maruti Suzuki’s Q3FY16 performance was below our as well as street’s estimates. The company delivered disappointing performance with around 200 basis points (bps) QoQ decline (up 154 bps YoY) in EBIDTA margin at 14.4 per cent, as against our estimate of 16.6 per cent.”
According to Reuters, Goldman Sachs cuts target price for Maruti Suzuki shares to Rs 4,658 from Rs 4,974, however, maintained ‘buy’ rating on the stock.
During the third quarter, the company sold a total of 3,74,182 vehicles, a growth of 15.5 per cent, over 3,23,911 units sold in the third quarter of 2014-15.
For the nine months ended December 31, the company posted a net profit of Rs 3,437.8 crore, up 41.6 per cent, from the same period of previous fiscal.