Maruti Suzuki rallies as Q3 profit beats analyst's estimates

Q3 net profit more than doubled to Rs 501 crore against Rs 206 crore in a year ago quarter due to higher sales.

Maruti Suzuki India has moved higher by 4% at Rs 1,596 after the company reported a better-than-expected 144% year-on-year (yoy) growth in net profit of Rs 501 crore for the third quarter ended December 31, 2012 (Q3) due to higher sales and good response to new models like Ertiga and Swift DZire.

“The company registered net sales of Rs 10,957 crore, an increase of 46% over the same period in the pervious year,” Maruti Suzuki said in a statement.

“The growth in net sales was on account of higher volumes, favorable model mix and enhanced export realization. The company’s continued cost reduction efforts helped to drive profit in the year,” it added.

Analysts on an average expected net profit of Rs 496 crore and net sales of Rs 10,819 crore for the quarter.

The stock opened at Rs 1,549 and hit a high of Rs 1,601 on NSE after announcement of results. A combined 2.05 million shares have changed hands on the counter so far on both the exchanges.