Maruti Suzuki moves ahead after small rise in Q3 PAT

Maruti Suzuki India rose 2.92% to Rs 9,548.25 at 9:20 IST on BSE after net profit rose 3% to Rs 1799 crore on 13.9% rise in net sales to Rs 18940 crore in Q3 December 2017 over Q3 December 2016.

The result was announced after market hours on Thursday, 25 January 2018. The market remained shut on Friday, 26 January 2018 on account of holiday. The stock had declined 1.6% to Rs 9,277.20 on Thursday, 25 January 2018, ahead of its Q3 results.

Meanwhile, the S&P BSE Sensex, was up 250.12 points, or 0.69% to 36,300.56.

On the BSE, 7,826 shares were traded in the counter so far, compared with average daily volumes of 64,942 shares in the past one quarter. The stock had hit a high of Rs 9,549 and a low of Rs 9,466 so far during the day. The stock had hit a record high of Rs 10,000 on 20 December 2017. The stock had hit a 52-week low of Rs 5,718.50 on 25 January 2017.

The stock had underperformed the market over the past one month till 25 January 2018, declining 4.36% compared with 6.22% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 17.85% as against Sensex's 9.1% rise. The scrip had also outperformed the market in past one year, gaining 60.04% as against Sensex's 30.11% 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 the board discussed and approved a revision in the method of calculating royalty which would result in lower royalty payments for new model agreements starting the Ignis. This would be implemented after approval by the board of parent firm, Suzuki Motor Corporation.

The operating profit rose 26.7% to Rs 2348.80 crore in Q3 December 2017 over Q3 December 2016, on account of higher sales volume, cost reduction efforts, lower sales promotion expenses and forex benefit, partially offset by adverse commodity prices.

While the operating profit increased by 26.7%, the net profit increased by 3% due to increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last 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 Suzuki India (as per the shareholding pattern as on 31 December 2017).

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