Maruti Suzuki India Ltd has reported a jump of 170 per cent in its net profit for the fourth quarter ending March 31, supported by the 21 per cent rise in sales.
The results, however, fall short on the industry projections, as rising prices of raw materials, upgradation to new BS IV norms, and adverse foreign exchange movement affected the company’s margins.
Maruti Suzuki’s net profit for the quarter stands at Rs 656.6 crore as against Rs 243.1 crore in January-March 2009. The total income for the period was Rs 8,503.5 crore, up by 30 per cent over the same period in 2009.
“Last year was a landmark year for the company as we achieved the milestone of producing and selling more than 10 lakh cars in a single year,” said Shinzo Nakanishi, CEO and MD, MSIL.
“Though competition is intensifying, we are firmly positioned to leverage our advantage in making fuel efficient low maintenance cars and we believe these will continue to play a big role when a customer goes to buy a car.”
Maruti’s operating margin fell down to 13.5 per cent during the quarter compared to the 15.5 per cent during the previous quarter (October - December 2009).
“All indications are that the sales will continue to grow in 2010-11 but it will not be as high as last year,” said Mayank Pareek, executive officer, MSIL.
“In the last five years the industry has grown at an average of 13.5 per cent and last year’s growth came after a flat year.” For the entire year of 2009-10, Maruti’s net profit shot up by 105 per cent to 2,497.6 crore, while the total income went up by 40 per cent to Rs 30,119.7 crore. Led by A-Star and Ritz, total sales rose by 29 per cent to 10.18 lakh units.