Maruti Suzuki Q4 net up 10 pc to Rs 1,882 crore

Source: The Hitavada      Date: 28 Apr 2018 10:22:02


 

NEW DELHI,

(PTI)

COUNTRY’S largest carmaker Maruti Suzuki India on Friday reported 10 per cent rise in net profit at Rs 1,882.1 crore for the March quarter even as tax expenses went up. The company had posted a net profit of Rs 1,710.5 crore in January-March, 2016-17. Net sales during the reported quarter rose to Rs 20,594.3 crore, up 14.4 per cent against the year-ago period. For the full year ended March 31, the company posted its highest ever annual net profit of Rs 7,721.8 crore, up 5.1 per cent from Rs 7,350.2 crore in the previous year.Net sales in 2017-18 stood at Rs 78,104.8 crore, up 16.7 per cent from 2016-17.

Commenting on the rise in net profit during the year, MSI Chairman RC Bhargava said: “Compared to last year the effective tax rates went up by about 3 per cent. So instead of 26 per cent earlier, it has gone up to 29 per cent. Lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year also impacted the net profit,” he added. Other items which put pressure on balance sheet included an outgo of around Rs 255 crore for resolving a land issue in Manesar, Bhargava said.

The company also faced cost pressure, including rise in commodity prices, forcing the company to shell out Rs 700 crore extra during 2017-18 on various items including steel and aluminium. During the last financial year, MSI’s tax expense stood at Rs 3,281.6 crore as compared with Rs 2,610.1 crore in 2016-17, up 25.7 per cent. “Despite all this, we have done better during the year (2017-18) in all aspects. Our market share has gone up 2.7 per cent to 50 per cent in the passenger vehicle segment,” Bhargava said.The company was also able to post a double digit --14.5 per cent -- growth during 2017-18, he added. The company’s board, which met today, gave its in-principle approval for establishing an employee welfare fund.