Maruti Net Rises 42% In Q1

New Delhi, July 26 | Updated: Jul 28 2004, 05:07am hrs
Maruti Udyog registered a 42.1 per cent increase in net profit at Rs 170.9 crore on a 24 per cent rise in total income to Rs 2616.5 crore for the first quarter ended June 2004.

The companys profit before tax increased to Rs 267.2 crore during the April-June 2004, a growth of 55.1 per cent over the same period last year.

Maruti sold 123,624 vehicle units during April-June 2004, a growth of about 19 per cent over the same period last year. This included exports of 12,240 units.

The company attributed the performance during April-June 2004 to a higher sales volume, and benefits from its on-going programme to enhance productivity and reduce costs across the value chain. While the domestic passenger car industry grew by 19.4 per cent in April-June 2004, Marutis passenger car sales in the domestic market grew by 21.1 per cent during this period, says a company statement.

The first quarter was marked by higher raw material prices, particularly steel, compared to the same period last year, and the price repositioning of the Alto model. Maruti introduced a non-air conditioned (AC) version of compact car Alto at Rs 2.3 lakh, which was a major reason for its sales increasing by 240 per cent during the quarter.

On the other positives, the company gained from an increase in other income and income from services such as fleet management, car financing and pre-owned car sales. There was also a decrease in manpower costs to Rs 46.09 crore and interest burden (Rs 9.12 crore from Rs 11.03 crore) during the quarter, which shored up the companys bottomline.

On the negative side, the company has provided for a higher depreciation of Rs 119.31 crore, up from Rs 81.46 crore in the corresponding quarter last year.