Maruti Suzuki net profit falls as much as 35 pct at Rs 800 cr, net sales decline 9.5 pct

Written by Agencies | New Delhi | Updated: Apr 25 2014, 23:17pm hrs
Maruti Suzuki IndiaMaruti Suzuki India, India's biggest carmaker, misses estimates in Q4 as potential car buyers postpone their purchases.
Maruti Suzuki India Ltd, India's largest car maker, today posted a 35.46 per cent decline in net profit at Rs 800.05 crore for the fourth quarter ended December 31, 2014.

The company had posted a profit of Rs 1,239.62 crore in the corresponding period of the previous financial year.

Net sales of the company declined by 9.48 per cent at Rs 11,818.13 crore from Rs 13,056.26 crore a year earlier, Maruti Suzuki India said in a statement.

"Lower volumes, higher sales promotion expense and a stock compensation to dealers owing to reduction in excise duty (exceptional expense) impacted the company's bottomline during the quarter," it said.

The volume of sales dropped 5.48 per cent to 3,24,870 vehicles during the fourth quarter from 3,43,709 units in the same period of last year.

However, the company's consolidated net profit for the fiscal ended March 31, 2014, rose by 15.53 per cent to Rs 2,852.92 crore as compared to Rs 2,469.28 crore in the 2012-13 fiscal.

Net sales of the company for the 2013-14 fiscal stood at Rs 43,271.78 crore as against Rs 43,215.83 crore in the earlier fiscal.

"The company's cost reduction and localisation initiatives, together with favourable foreign exchange, helped improve profit margins despite tough economic conditions," the carmaker said.

The company's sales volume stood at 11,55,041 units in 2013-14 fiscal, a drop of 1.4 per cent as against 11,71,434 units in 2012-13 fiscal.

The company's board recommended a dividend of 240 per cent at Rs 12 per share of face value Rs 5 each, for 2013-14.

Maruti Suzuki shares were trading at Rs 1925 apiece on the BSE, down 2.91 per cent from its previous close.

Maruti Suzuki reports 35.5% fall in fourth-quarter profit, misses estimates

(Reuters) Maruti Suzuki India Ltd, India's biggest carmaker, reported a 35.5 percent fall in fourth-quarter profit, missing estimates, as potential car buyers postponed their purchases and waited for a slowing economy to pick up.

Maruti Suzuki, controlled by Japan's Suzuki Motor Corp, said profit for the Jan-March quarter was 8 billion rupees ($131 million) compared to 12.4 billion rupees in same year-ago period.

Analysts on average were expecting a net profit of 9.10 billion rupees, according to Thomson Reuters I/B/E/S.

The year-ago quarterly profit is not strictly comparable as it included the full-year impact of Maruti's merger with its powertrain unit. A substantial decline in the yen had also made imports of auto parts cheaper.

The automaker reported a net profit of 6.81 billion rupees in the previous quarter.