Shares of Maruti Suzuki have returned about 50% since the beginning of 2017 so far while Sensex and Nifty have grown in a range of 24-25% in the same period.
India’s largest car-maker Maruti Suzuki reported a rise of 3% in the net profit for July-September quarter of the current fiscal. This was the fourteenth consecutive jump in profit figure of Maruti Suzuki. Following the better-than-expected second-quarter results the stock of Maruti Suzuki gained 2.05% to hit a record high of Rs 8,242.4 on BSE. Maruti Suzuki (India) posted 3.4% rise in net profit to Rs 2,484.3 crore for the quarter ended 30 September 2017 as compared to Rs 2,401.5 crore in the corresponding period of last year. Shares of Maruti Suzuki have returned about 50% since the beginning of 2017 so far while Sensex and Nifty have grown in a range of 24-25% in the same period.
Till the late-afternoon trade, nearly 11 lakh shares exchanged hands on both BSE and NSE, with about 10.3 lakh shares traded on NSE alone. Company’s total sales grew by 21.8% to Rs 21,438.1 crore for the same period versus Rs 20,048.6 in the last fiscal. Maruti Suzuki said that its net profit increased by only 3.4% due to lower non operating income as the yields of investment were lower compared to last year and some impact of commodities and advertisement expenses along with an increase in effective tax rates.
In July-September period, the company’s total vehicle sales rose 17.6% to 4,92,118 units, including 34,717 units in overseas markets. The sales of compact vehicles, including Swift and Baleno, jumped 43.5% while sales of utility vehicles like Ertiga and Vitara Brezza surged to 27.6%.
Meanwhile, the momentum in Indian equity markets seemed to have paused as investors are keenly awaiting the second-quarter results. At this point of time when the key equity indices Sensex and Nifty are hitting consecutive record highs, market participants believe that the earnings report card will provide a justification to the stock markets. Recently domestic equities surged massively after the Narendra Modi government announced a mega plan of Rs 2.11 lakh crore to recapitalise the NPA-laden PSU banks.