Maruti shares down 2.5% post Q3 earnings

New Delhi: Shares of Maruti Suzuki India ended 2.5 per cent lower after its December quarter earnings failed to cheer investors. The stock declined 2.54 per cent to settle at Rs 14,499.50 on the BSE. During the day, it dropped 3.40 per cent to Rs 14,370.

At the NSE, it edged lower by 2.52 per cent to end at Rs 14,502. The company’s market valuation eroded by Rs 11,862.41 crore to Rs 4,55,868.01 crore. Maruti Suzuki India on Wednesday posted a 4 per cent increase in consolidated net profit at Rs 3,879 crore for the December quarter, hit by a one-time provision of Rs 594 crore on account of the new labour codes.

The country’s largest carmaker reported a net profit of Rs 3,727 crore for the October-December period of the previous fiscal year.

Total revenue from operations rose to Rs 49,904 crore in the third quarter from Rs 38,764 crore in the year-ago period, the company said in a regulatory filing. Owing to the GST reform, there was a sharp recovery in the Indian car market, primarily led by the small car segment, it noted.