Maruti Suzuki beats market odds, net profit up at Rs 660 crore in Q4 | autos | Hindustan Times
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Maruti Suzuki beats market odds, net profit up at Rs 660 crore in Q4

India’s largest carmaker Maruti Suzuki India Ltd on Monday reported a 0.5% growth in net profit at Rs 659.9 crore for the January-March quarter of fiscal 2010-11, beating all expectations of rising cost of inputs blocking growth in profitability. HT reports.

autos Updated: Apr 25, 2011 23:12 IST
HT Correspondent

India’s largest carmaker Maruti Suzuki India Ltd on Monday reported a 0.5% growth in net profit at Rs 659.9 crore for the January-March quarter of fiscal 2010-11, beating all expectations of rising cost of inputs blocking growth in profitability.

The firm’s rise in revenue during the quarter was higher at Rs 10,212.1 crore, up 19% over the same period last year as higher sale of cars expanded its bottomline. However, for the full year 2010-11, Maruti was not able to grow its profits as net profit declined by 8.4% to Rs 2,288.6 crore as total income grew by 24.6% to Rs 37,522.4 crore. The company blamed higher cost of raw materials, foreign exchange fluctuations and higher expenditure on promotion and related activities for the subdued profitability. It also warned profitability would continue to be under pressure.

“In the short-term there is uncertainty, particularly on which way the commodity costs will go,” said Shinzo Nakanishi, chief executive officer, MSIL. “Fuel price is rising as well and so is interest rates, all of which is not good news for growth in demand for cars. It is a challenging period but we hope to maintain our profitability in the next few quarters and grow it in the long-term.”

Maruti sold 1.27 million cars in 2010-11, a 24.8% growth over the previous fiscal and is gearing up to protect its near 50% marketshare in the domestic market.

For the current financial year, it has lined up a capacity expansion plan of Rs 4,000 crore.