Maruti Suzuki shifts gear after posting rise in PAT in Q1

Maruti Suzuki India rose 0.59% to Rs 7,622.80 at 14:00 IST on BSE after net profit rose 4.4% to Rs 1556.40 crore on 16.7% rise in net sales to Rs 17132.40 crore in Q1 June 2017 over Q1 June 2016.

The announcement was made during market hours today, 27 July 2017.

Meanwhile, the S&P BSE Sensex was up 165.38 points, or 0.51% to 32,547.84.

Higher than usual volumes were witnessed on the counter. On the BSE, 1.22 lakh shares were traded in the counter so far, compared with average daily volumes of 50,415 shares in the past one quarter. The stock had hit a high of Rs 7,679 in intraday trade, which is also a record high for the stock. The stock had hit a low of Rs 7,577.10 so far during the day. The stock had hit a 52-week low of Rs 4,460 on 26 July 2016.

The stock had outperformed the market over the past one month till 26 July 2017, gaining 4.71% compared with the Sensex's 4% rise. The stock had also outperformed the market over the past one quarter, rising 18.27% as against the Sensex's 7.46% rise. The scrip had also outperformed the market over the past one year, gaining 68.95% as against the Sensex's 15.75% rise.

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

Maruti Suzuki India's operating EBITDA (earnings before interest, taxes, depreciation and amortization) rose 5.3% to Rs 2331.20 crore in Q1 June 2017 over Q1 June 2016. Sales volume rose 13.2% to 3.94 lakh vehicles in Q1 June 2017 over Q1 June 2016.

Maruti Suzuki India said growth in volumes, favourable product mix, higher non-operating income and cost reduction efforts contributed to rise in profit. However, costs were impacted by higher commodity prices and sales promotion & marketing expenses. During Q1 June 2017, there was a one-off impact of compensation given to dealers for the tax loss incurred on vehicles in the stock at the time of transitioning to GST.

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 30 June 2017).

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