Maruti Suzuki’s Q4 net flat at Rs 659.86 cr

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By mohit:New Delhi, April 25:

Maruti Suzuki India Ltd (MSIL) reported a marginal increase of 0.5 per cent in its net profit at Rs 659.86 crore (Rs 656.55 crore) for the fourth quarter ended March 31.

The company's earnings were hit by rising commodity prices, market fluctuations and higher royalty payments to the parent company in Japan.

The total income of India's biggest car maker in terms of volume sales increased by 18.9 per cent at Rs 10,092.18 crore (Rs 8,485.83 crore) for the quarter compared with the same period last year.

The company sold 20 per cent more units during this quarter at 3,43,340 (2,87,422) compared with the same period last year.

For financial year 2010-11, MSIL reported a decline of 9.23 per cent in its net profit at Rs 2,382.37 crore (Rs 2,624.64 crore). Consolidated income from operations increased by 24.75 per cent at Rs 37,578.48 crore (Rs 30,122.51 crore).

“Our new projects are on track in Manesar (plant), Rohtak (R&D) and our market shares are increasing. But competitive pressures are increasing and there is stress in the market,” Mr Shinzo Nakanishi, Chief Executive Officer and Managing Director, MSIL, said here on Monday.

Oil prices went up nine times last year and interest rates are going up putting pressure on sales, said Mr Mayank Pareek, Managing Executive Officer (Marketing & Sales). Walk-ins at stores have decreased and hence conversion sales have also gone down for the whole industry, said Mr Pareek.

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He said if the Central Bank further increases interest rates to arrest inflation, demand for cars will come down, as 70 per cent of consumers buy through finance.

For the year 2011-12, the company has planned a capital expenditure of Rs 4,000 crore in areas of R&D expansion, new products and routine cap-ex.

The company declared a dividend of 150 per cent, Rs 7.50 per share of the face value of Rs 5 for 2010-11.
mohitsexenapbt@gmail.com

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