Maruti Suzuki vrooms up the Sensex graph

Shares of Maruti Suzuki India Ltd., the nation's top car maker, hit a fresh high after the company reported a sharp surge in first quarter profit on the back of higher sales and lower discounts.

Maruti, controlled by Japanese giant Suzuki, said its first quarter Net Profit rose 56 percent to 1,193 crore rupees compared with 763 crore rupees in the same quarter a year ago. Sales during April-June gained 175 percent to 13,425 crore rupees from 11,428 crore rupees in the year ago period. The company said its operating margin surged 420 bps to 16.3 percent as it benefited from cheaper input costs of steel and rubber. Maruti's vehicle sales rose to 341,329 units versus 225,000 units.

Maruti rose 1.5 percent, or 64 rupees, to 4,242 rupees on the National Stock Exchange, where 6.7 lakh shares were traded in the first four hours of trade compared with the 5-day average of 2.25 lakhs.

Maruti's market capitalisation has gained 67 percent in the past one year to 1.27 lakh crore rupees as its staved off an auto slowdown due to its low-priced and low maintenance vehicles. Maruti's fuel efficient vehicles and its nationwide reach also contribute to its sales.

(Image credits: Indiatimes)