Robust sales of Swift, DZire and Ertiga during the quarter helped Maruti Suzuki to report a 80% jump in fourth quarter net profit
Maruti Suzuki India, the country's largest carmaker, on Friday reported an 80% jump in its fourth quarter net profit on better pricing and improved product mix like Ertiga, DZire and Swift that helped the company to record higher sales.
For the quarter to end-March, the carmaker, a unit of Japanese Suzuki Motor Corp, said its net profit rose 79.8% to Rs1,147.5 crore from Rs637.5 crore while its total revenues, including sales, rose 9.4% to Rs12,566.6 crore from same period last year.
“Maruti’s high revenue is driven by better pricing from an improved product mix. Strong contribution from diesel vehicle sales also contributed to growth as well as profitability. The company's operating margin (OPM) at 10.6% against our expectation of 9.4% is a positive surprise driven by better pricing and Yen depreciation," said Gautam Sinha Roy, vice-president for equities at Motilal Oswal Securities.
For the full year, Maruti Suzuki reported 40.6% jump in net profit to Rs2,300 crore, excluding the performance of Suzuki Powertrain India, which was merged with the company during the year.
"The increase in net profit during the quarter was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction and localization efforts and the benefit of a favourable exchange rate,” the company said in a release.
For FY13, Maruti Suzuki's total sales, including exports increased 3.3% to 11.71 lakh units. However, sales for utility vehicles, including Ertiga (launched in April 2012), Gypsy and Grand Vitara rose by a whopping 324% to 6488 units from 1530 units a year ago. While the sales for Gypsy and Grand Vitara are nothing much to talk about it was the Ertiga that helped the company to improve its overall sales.
While the overall car market was witnessing a downfall, Maruti Suzuki's DZire posted 22% jump in FY sales to 20,078 units from 16,451 units a year ago period.
Maruti Suzuki has declared a full year dividend of 160%, compared with 150% in FY12.
On Friday, Maruti Suzuki shares closed 5.26% higher at Rs1,673.45 on BSE while the Sensex ended marginally down at 19,286.
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