Maruti Suzuki declines in volatile trade despite announcing decent Q1 results

Maruti Suzuki India dropped 0.36% to Rs 4,534.20 at 15:10 IST on BSE after net profit rose 23.01% to Rs 1486.20 crore on 13.45% rise in total income to Rs 15410.60 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 26 July 2016.

Meanwhile, the BSE Sensex was down 82.29 points, or 0.29%, to 28,013.05.

More than usual volumes were traded on the counter. On BSE, so far 1.3 lakh shares were traded in the counter, compared with an average volume of 77,137 shares in the past one quarter. The stock was volatile. At the day's high of Rs 4,584.95, the stock rose 0.75%. At the day's low of Rs 4,488 hit so far during the day, the stock declined 1.37%. The stock hit a record high of Rs 4,789 on 23 November 2015. The stock hit a 52-week low of Rs 3,202.10 on 29 February 2016. The stock had outperformed the market over the past one month till 25 July 2016, rising 11.83% compared with 6.43% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 21.86% as against Sensex's 9.41% rise.

The large-cap company has equity capital of Rs 151.04 crore. Face value per share is Rs 5.

Maruti Suzuki India said that higher profit in Q1 June 2016 was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation. Adverse foreign exchange movement reduced profits to some extent.

The company said that the unfortunate incident of fire at a key vendor of the company resulted in lower sales in June 2016. The company hopes to recover the lost sales during the course of the year.

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 30 June 2016).

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