Maruti Suzuki rebounds post Q4 results

The stock moved higher by 3% at Rs 3,648, recovering 4% from its intra-day low on the NSE.

Maruti Suzuki India has moved higher by 3% at Rs 3,648, recovering 4% from its intra-day low on the NSE, after reporting a strong 61% year on year net profit growth at Rs 1,284 crore for the fourth quarter ended March 31, 2015 (Q4FY15).

Higher volumes, material cost reduction initiatives, favourable foreign exchange and lower sales promotion expenses contributed to the bottom-line during the quarter, Maruti Suzuki India said in a statement.

During the quarter, the company’s net sales stood at Rs 13,273 crore, a gain of 12.3% at over the same period last fiscal. It sold 346,712 vehicles in Q4FY15, a growth of 12.3% over the corresponding quarter of previous year.

Analysts on an average had expected net profit of Rs 1,114 crore on net sales of Rs 13,478 crore.

Meanwhile, the board has recommended a dividend of 500% (Rs 25 per share of face value of Rs 5) for the financial year 2014-15. The company paid dividend at 240% or Rs 12 per share in 2013-14.

The stock opened at Rs 3,563 and touched a low of Rs 3,520 on the NSE before announcements of Q4 results. A combined 1.01 million shares changed hands on the counter on the NSE and BSE till 1347 hours.