The Telegraph
Since 1st March, 1999
Email This Page
Maruti net crawls up to Rs 124 crore

New Delhi, Oct. 31: Maruti Udyog Ltd has reported a sequential 3.1 per cent rise in net profit in the second quarter ended September 30 at Rs 124 crore from Rs 120 crore in the first quarter. The growth in profit, which is in line with market expectations, is driven by higher sales of its small cars.

Maruti, which has a 50 per cent market share, had lowered car prices by 5-8 per cent due to a cut in production tax in the Union budget. Sliding interest rates and discounts have also helped to increase sales.

Net sales rose 6.04 per cent to Rs 216 crore from Rs 204 crore in the year-ago period. Operating profit margin improved to 10.2 per cent in the second quarter from 9.6 per cent in the preceding quarter.

These were the first full results declared by Maruti after its listing in July following its successful initial public offer. It gave no figures for the year-ago second quarter.

Vehicle sales rose 4.3 per cent in July-September to 1,08,465 units from the previous quarter and 18.3 per cent over the year-ago period, although that was slower than the industry growth rate of 23 per cent. It sold 3,62,253 vehicles in 2002-03.

The company, which revolutionised India’s car industry after its entry in 1985 with its modern production techniques, would have posted even higher profits, but production was hit in August and September due to a strike at one of its key vendors, DCM Engineering. Analysts expect sales in the second half of the financial year to improve further on back of higher demand from small towns.

Email This Page