Maruti shares tank over 9% on lower-than-expected earnings

Shares of Maruti Suzuki India today slumped by over 9 per cent on lower-than-expected earnings for the third quarter ended December 31.
The country's largest car maker's scrip tanked 8.12 per cent to close the day at Rs 1,563.20 on the BSE. During the day, the stock plunged 9.41 per cent to Rs 1,541.25.
At the NSE, Maruti's stock dropped 9.33 per cent to settle at Rs 1,543.40.
The scrip was the worst performer among the blue-chips on both Sensex and Nifty.
Following the dip in the stock, the company's market value tanked Rs 4,173 crore to Rs 47,221 crore.

"Its results were in line with estimates on the topline and operating margins front but the bottomline came below our expectations," said brokerage ICICIdirect.Com.

Maruti Suzuki today posted a 35.87 per cent increase in net profit to Rs 681.15 crore for the third quarter ended December 31 on account of higher localisation, favourable foreign exchange and cost reduction initiatives.
The company's board today decided that the investment in the Gujarat facility will be made by a 100 per cent Suzuki subsidiary and not Maruti Suzuki India (MSI).
"The company will be named Suzuki Motor Gujarat Pvt Ltd with a starting capital of Rs 100 crore," Suzuki Motor Corporation Chairman Osamu Suzuki said.

Suzuki Motor Gujarat, which will be set up by April, will not be a listed firm, he added.
The company had posted a profit of Rs 501.29 crore in the corresponding period of the previous financial year.
Net sales in the quarter under review, however, declined 3.07 per cent to Rs 10,619.68 crore from Rs 10,956.95 crore a year earlier.