Maruti Suzuki Q2 net up 29%, board raises FII limit to 40%

The company sold 3.21 lakh units in July-September quarter, reporting a solid 17 percent growth Y-o-Y (and 7 percent Q-o-Q) compared to 12.6 percent growth in Q1FY15.

Profit was expected at Rs 837 crore on revenue of Rs 12,242 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Other income shot up 91.2 percent to Rs 193.2 crore in September quarter from Rs 101 crore in same quarter last year while other expenses (including advertising expenses) climbed 8.3 percent year-on-year to Rs 1,638.3 crore and depreciation cost increased by 20 percent to Rs 598.85 crore in the quarter gone by.

Operating profit (earnings before interest, tax, depreciation and amortisation) jumped 15 percent on yearly basis to Rs 1,521 crore but margin declined 20 basis points to 12.4 percent during July-September quarter, which were slightly lower than analysts' expectations of Rs 1,544.3 crore and 12.7 percent, respectively.

Meanwhile, Maruti Suzuki said the board of directors approved hike in foreign institutional investors investment limit up to 40 percent from 24 percent earlier (this limit was reached about a year and a half ago).. This is subject to shareholder approval in a general meeting and subsequently request to RBI for notification.

Currently Suzuki Motor Corporation, the promoter, holds 56.21 percent stake in the company as of September 2014.

The board also approved the guidelines for dividend payment, saying the company would endeavour to keep the dividend payout ratio, except for reasons to be recorded, within the range of 18-30 percent.

At 13:58 hours IST, the stock was quoting at Rs 3,259, up Rs 53.55, or 1.67 percent on the BSE after hitting a record high of Rs 3,261.