Maruti Suzuki drops after poor Q4 results

Maruti Suzuki India lost 2.85% to Rs 1926.30 at 13:57 IST on BSE after net profit fell 35.46% to Rs 800.10 crore on 9.48% decline in net sales to Rs 11818.10 crore in Q4 March 2014 over Q4 March 2013.

The Q4 result was announced during trading hours today, 25 April 2014.

Meanwhile, the S&P BSE Sensex was down 165.68 points or 0.72% at 22,710.86.

On BSE, so far 1 lakh shares were traded in the counter as against average daily volume of 43,000 shares in the past two weeks.

The stock was volatile. The stock lost as much as 3.23% at the day's low of Rs 1918.55 so far during the day. The stock rose as much as 0.86% at the day's high of Rs 1999.90 so far during the day.

Maruti Suzuki India said that the bottom line during Q4 March 2014 was impacted due to lower volumes, higher sales promotion expense and a stock compensation to dealers owing to reduction in excise duty (exceptional expense).

Maruti Suzuki India's net profit rose 16.3% to Rs 2783.10 crore on 0.1% growth in net sales (net of excise) to Rs 42644.80 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

In FY 2013, Suzuki Powertrain India was merged with Maruti Suzuki India. Financials of Q4 March 2013 include full impact of the merger, Maruti Suzuki said in a statement.

On consolidated basis, Maruti Suzuki India's net profit rose 15.53% to Rs 2852.92 crore on 0.33% growth in total income from operations to Rs 44450.58 crore in FY 2014 over FY 2013.

Maruti Suzuki India said that the company's market performance showed positive indications during FY 2014.

The company's cost reduction and localization initiatives, together with favourable foreign exchange, helped improve profit margins despite tough economic conditions, Maruti Suzuki said in a statement.

Maruti Suzuki India's board of directors at its meeting held today, 25 April 2014, recommended final dividend of Rs 12 per share for FY 2014.

Japanese parent Suzuki Motor Corporation holds 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 March 2014)

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