The country’s largest carmaker Maruti Suzuki India (MSIL) on Monday reported a 60.5 per cent jump in its net profit at Rs 1,284.2 crore for the fourth quarter ended March 31, 2015 on the back of higher realisation and lower raw material costs. The company had posted a net profit of Rs 800 crore in the year-ago period.
Higher volumes, material cost reduction initiatives, favourable foreign exchange changes and lower sales promotion expenses added to the bottom-line, the company said. R C Bhargava, chairman, MSIL, said, “The real benefit has come from the material cost reduction initiatives. Total materials’ costs declined by 5.6 per cent.”
Average discounts in the quarter came down to Rs 15,000 per vehicle against Rs 20,500 in the year-ago period. However, for FY15 average discounts stood at Rs 19,464 against Rs 16,957 in FY14,
Net sales during Q4 stood at Rs 13,273 crore, a rise of 12.3 per cent against Rs 11,818.13 crore registered in the year-ago period. Sales went up by 6.7 per cent at 3,46,712 units, the firm said adding that exports were at 29,542 units, a growth of 12.4 per cent.
Bharat Gianani, senior research analyst (automobiles), Angel Broking) said, “Maruti Suzuki Q4 results were ahead of our estimates driven by record operating performance. The margins were the highest in last 7-8 years. Yen depreciation (resulting in lower imported raw material costs) coupled with lower sales promotion expenses boosted profitability.
However, higher finance costs and lower other income marginally negated the benefits of strong operating performance. Nevertheless, the net profit at Rs 1,284 crore was above our estimates of Rs 1,218 crore.”