Maruti profit stuns investors

Apr 27, 2013

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New Delhi: Defying tough market conditions, Maruti Suzuki India (MSI) on Friday reported its highest-ever quarterly profit at Rs 1,147.5 crore for the period ended March 31, up 79.4 per cent from the same quarter a year ago.
The company had registered a net profit of Rs 639.8 crore during the corresponding period last year. Its profit becomes even bigger at Rs 1,239.6 crore when the numbers of the merged entity Suzuki Powertrain India Ltd (SPIL) are added.
The jump in net profit was driven by good sales of models like Ertiga, DZire and Swift, cost reduction and localisation effort and the benefit of a favourable exchange rate.
Net sales during the fourth quarter of the last fiscal went up by 9.4 per cent to Rs 12,566.6 crore from Rs 11,486.4 crore in the year-ago period. During Jan-uary-March period, MSI sold a total of 3,43,709 vehicles, down 4.6 per cent from 3,60,334 units in the same period last year.
“The increase in net profit during the quarter was due to many factors, which included higher realisation on sales of new models such as Ertiga, DZire and Swift, ongoing cost reduction and localisation efforts, and the benefit of a favourable exchange rate,” MSI CFO Ajay Seth said.
Stating that this was the highest quarterly profit for MSI, he said the company had posted its previous best quarterly profit in third quarter of 2009-10, which was at Rs 688 crore.

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