Maruti net dampened by merger of subsidiary

New Delhi, Jan 22 | Updated: Jan 23 2007, 05:30am hrs
Indias largest car manufacturer, Maruti Udyog Ltd (MUL), reported an 11% jump in its Q3 net profit to Rs 376 crore, against Rs 339 crore in the same period last year.

MULs growth lagged a forecast of Rs 396 crore net profit in a Reuters poll of ten analysts. A Bloomberg survey of 15 analysts had estimated Rs 398 crore as the median net profit.

Profit growth was subdued by the merger of wholly-owned subsidiary Maruti Suzuki Automobiles India Ltd with MUL. MSAIL posted a net loss of Rs 54 crore in the first nine months of 2006-07.

But for the merger, Marutis net would have grown 27%, well beyond analysts expectations. The companys shares on the Bombay Stock Exchange (BSE) closed at Rs 938 today, up 3.05%.

Robust domestic sales led by premium hatchback Swift, the WagonR and the Alto helped Maruti report an 18% jump in Q3 revenues to Rs 3,807 crore, from Rs 3,218 crore in Q3, 2005-06.

Total vehicle sales stood at 1.72 lakh units in Q3, up 18.73% over 1.45 lakh units in the same period last year.

The company is expected to increase car price across the segment by the end of this month to offset the rising cost of raw materials.