Maruti Suzuki India on Friday reported net profit of Rs 1,239.60 crore for the fourth quarter ended March 31, 2013, up 94 per cent compared with Rs 639.80 crore in the corresponding period last year.
During the year, Suzuki Powertrain India Ltd was merged with the company. The results of the fourth quarter and full year include the effect of the merger.
Excluding the effect of the merger, net profit for the fourth quarter stood at Rs 1,147.5 crore, an increase of 80 per cent over the comparable figure in the same period of the previous 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 localisation efforts and the benefit of a favourable exchange rate, the company said.
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 the financial year 2012-13, the company's net profit stood at Rs 2,39.21 crore compared with Rs 1,635.1 crore in 2011-12.
Excluding the effect of the merger, net profit stood at Rs 2,300 crore an increase of 40.6 per cent over the comparable figure in the previous year.
On the outlook for this year, Shinzo Nakanishi, former Managing Director, MSIL, said: “In the financial year 2013-14, while short-term is a concern in the growth of Indian economy and automobile industry, the company remains positive in the long term.”
“Maruti has been a market leader for the last 30 years and I would like it to continue and at the same time, I would also like to write a new page in the history of the company,” said Kenichi Ayukawa, the newly appointed Managing Director and Chief Executive Officer.
Board approval
The board of directors recommended a dividend of 160 per cent (Rs 8 per share of face value of Rs 5) for 2012-13. The dividend in 2011-12 was at 150 per cent, the company said.
“Other income during the quarter came in higher due to capital gains. Given the favourable foreign currency movement, operating margins in fiscal 2014 is expected to stay strong,” said Arun Agarwal, Auto Analyst, Kotak Securities.
The board of directors has also approved the amalgamation of seven wholly owned insurance subsidiaries, effective from April 1 and is subject to shareholders’ and other necessary approvals, it said.
These include Maruti Insurance Business Agency Ltd, Maruti Insurance Agency Services Ltd, Maruti Insurance Distribution Services Ltd, Maruti Insurance Agency Logistics Ltd, Maruti Insurance Agency Solutions Ltd, Maruti Insurance Agency Network Ltd and Maruti Insurance Broker Ltd.
The company’s shares closed at Rs 1,673.45 on the BSE on Friday, up 5.26 per cent up from previous close.