Maruti Suzuki India Ltd. rose to its highest in three years in Mumbai trading after profit beat analysts’ estimates on higher demand for its Ertiga minivans and Swift DZire sedans.
Maruti, the nation’s biggest carmaker by volume, climbed 3.9 percent to close at 1,599.45 rupees. The stock, which was the biggest gainer on the benchmark BSE India Sensitive Index, was at the highest level since December 2009.
Third-quarter net income at Suzuki Motor Corp.’s Indian unit more than doubled to 5.01 billion rupees ($93 million), the New Delhi-based company said. That beat the 4.89 billion-rupee median of 38 analysts’ estimates compiled by Bloomberg. The carmaker, which resumed production at its Manesar factory in August after a monthlong shutdown following a deadly riot, has seen local deliveries rebound as it introduced new models.
“Next year, Maruti will have more capacity coming on stream, which will improve product mix,” said Basudeb Banerjee, an analyst at Quant Broking Pvt. in Mumbai. “And the yen is also declining which is positive for the company.”
The carmaker plans to spend 17 billion rupees to set up a new diesel-engine factory that will be ready by 2014. The plant, near New Delhi, will have a capacity to produce as many as 300,000 engines a year, it said in April.
The Japanese yen has declined more than 5 percent against the dollar since the start of the year, extending a 11 percent drop in 2012.
Sales rose 46 percent to 109.6 billion rupees in the quarter, Maruti said. The median of 38 analysts’ estimates compiled by Bloomberg was for revenue of 109.8 billion rupees.
Local deliveries at Maruti are set to increase as much as 6 percent in the current financial year after dropping 11 percent in the previous 12 months, Mayank Pareek, head of sales, said last month.
Domestic sales of Maruti rose 5.9 percent in December, spurred by demand for its Ertiga minivan, which it introduced in April.
The Society of Indian Automobile Manufacturers lowered its full-year domestic car sales forecast on Jan. 9 to as little as no growth, the third cut in six months after local deliveries in December fell 13 percent to 141,083 cars, the second consecutive monthly decline.