Maruti gains after signing MoU with Government of Andhra Pradesh

Maruti Suzuki India rose 0.47% to Rs 4,205 at 09:18 IST on BSE after the company announced signing of a memorandum of understanding with Government of Andhra Pradesh, to set up, manage and run Institute of Driving Training and Traffic Research.

The announcement was made after market hours yesterday, 30 June 2016.

Meanwhile, the S&P BSE Sensex was up 171.65 points or 0.64% at 27,171.37

On BSE, so far 1,608 shares were traded in the counter as against average daily volume of 80,377 shares in the past one quarter. The stock hit a high of Rs 4,213.50 and a low of Rs 4,192.25 so far during the day. The stock had hit a 52-week low of Rs 3,202.10 on 29 February 2016. The stock had hit a record high of Rs 4,789 on 23 November 2015. The large-cap company has equity capital of Rs 151.04 crore. Face value per share is Rs 5.

Maruti Suzuki India (MSIL) announced that the company has signed a memorandum of understanding (MoU) with Government of Andhra Pradesh, to set up, manage and run Institute of Driving Training and Traffic Research at Venkatachalam village in Darsi, Prakasham district of Hyderabad. The infrastructure spread across 20 acres of land will be provided by the Andhra Pradesh Government, while Maruti Suzuki India will run and manage the institute. The infrastructure is expected to be complete by 2018.

Set up under the public-private-partnership (PPP) model, this will be Maruti Suzuki India's first Institute of Driving Training and Traffic Research (IDTR) in South India. The company will undertake the training on lines of the other IDTRs including All Gujarat Institute of Driving, Technical Training and Research (AGIDTTR), Vadodara. The company plans to collaborate with the various government departments like Tribal Development Department to promote road safety and driving as an employment opportunity among the tribal youth of Andhra Pradesh. The main focus is to make people employable hence additional training in personality, hygiene, courtesy and communication is imparted to the youth.

Maruti Suzuki India's net profit declined 11.7% to Rs 1133.60 crore on 12.5% growth in net sales to Rs 14929.50 crore in Q4 March 2016 over Q4 March 2015.

Maruti Suzuki India is India's biggest car maker in terms of market share. Japanese parent Suzuki Motor Corporation currently holds 56.21% stake in Maruti (as per the shareholding pattern as on 31 March 2016).

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