Maruti Suzuki Q4 net jumps 80%; shares hit 52-wk high

Moneycontrol Bureau

India's largest passenger car maker Maruti Suzuki's fourth quarter standalone net profit rose significantly better-than-expected 80 percent year-on-year to Rs 1,148 crore, sending its stock surging to a new 52-week high of Rs 1,693 on NSE.

Revenue was up 14 percent to Rs 13,304 crore in Jan-March, the maker of Alto, Swift hatchback and Ertiga multi-utility vehicle said on Friday.

The company's net profit including SPIL (Suzuki Powertrain India Ltd), which was merged during the last financial year, stood at Rs 1,240 crore for the quarter.

Analysts on an average were expecting it to report a net profit of Rs 700 crore, on revenues of Rs 12,750 crore, according to a CNBC-TV18 poll.

"The increase in net profit during the quarter was on account of higher sales of new models such as Ertiga, DZire (compact sedan) and Swift (premium hatcback), cost reduction and localization efforts and the benefit of a favourable exchange rate," Maruti said.

The company's total domestic vehicle sales fell 4 percent year-on-year but rose 15 percent sequentially to 3.09 lakh units in the fourth quarter.

It gained market share in what was a "challenging year" for the passenger vehicle industry, according to Shinzo Nakanishi, the outgoing MD of the company.

Maruti's market share is now at 39.1 percent, up 1 percent. Share of diesel vehicles also increased to 58 percent in FY2013, up from 48 percent a year ago.

Apart from increasing diesel vehicle sales, Maruti's earnings were also boosted by other income, which increased 34 percent YoY to Rs 399 crore.

Maruti Suzuki officials say short-term concerns continue for the Indian economy. But they remain positive on the long-term growth potential.

Its expansion plans are also on track, with the Manesar C plant and Gurgaon diesel engine plant, expected to be commissioned in the second half of this year, Nakanishi said.

Meanwhile, Maruti Suzuki's board on Friday approved the amalgamation of seven of its wholly owned subsidiaries. These include, Maruti Insurance Business Agency, Maruti Insurance Distribution Services and Maruti Insurance Broker Ltd among others.

At 14:00 hrs, Maruti Suzuki shares were trading at Rs 1,677.95 on NSE, up 5.5 percent.

Nachiket Kelkar
nachiket.kelkar@network18online.com