Maruti Suzuki in reverse gear post Q4 earnings

Maruti Suzuki (India) is trading lower by over 2% at Rs 1,365 after reporting a marginal 3% y-o-y drop in net profit at Rs 640 crore for the quarter ended March 2012. However, analysts had expected a net profit of Rs 544 crore from the country's biggest car maker. Net sales grew 17% at Rs 1,149 crore on y-o-y basis.

The profit margins have declined by over 100 basis points each, with operating profit margins falling to 10.03% from 11.48% and net profit margins declining to 5.55% from 6.71% during the quarter under review.

“The adverse currency movements made a significant impact during the quarter, the company was able to largely offset it through localization and internal cost control," Maruti Suzuki said in a filing to the stock exchanges.

Meanwhile, the board of directors of the company has recommended a final dividend of Rs 7.50 per share on face value of Rs 5 per share for fiscal 2012.

A combined 35,000 shares have changed hands on the counter in opening deals on both the exchanges.