Japan MNC Suzuki’s profit slows 4.4% despite high India ops speed
Japanese small car major Suzuki on Monday reported a 4.4 per cent decline in operating profit for the year ended March 31, 2015, at 179.4 billion yen ($1.5 billion) despite a strong show in its Indian operations, covering up for dip in income globally. “In terms of the consolidated income, the operating income decreased by 8.3 billion yen (down 4.4 per cent) to 179.4 billion yen, year-on-year,” Suzuki Motor Corp said in a statement.
Consolidated net sales of this fiscal year (April 2014 to March 2015) increased by 77.2 billion yen (up 2.6 per cent) to 3,015.5 billion yen compared to the previous fiscal year, it added. The company’s Japanese domestic net sales decreased by 38.1 billion yen (down 3.4 per cent) to 1,094.6 billion yen year-on-year owing to fall in the automobile sales. “However, the overseas net sales increased by 115.3 billion yen (up 6.4 per cent) to 1,920.9 billion yen year-on-year mainly owing to the increase in the automobile sales in India,” the company said.
Although the decrease in income in Indonesia and Thailand were covered by the increase in income in India, the operating income decreased mainly owing to the increase in the operating expenses of Japan and overseas, it added. “The overseas net sales increased year-on-year mainly owing to the increase in India,” it said. In Asia,
operating income increased by 22.2 billion yen (up 37.3 per cent) to 81.6 billion yen year-on-year, by covering the decrease in the income in Indonesia and Thailand with the Indian automobile business, Suzuki said.
On the forecast for the next fiscal year, the company said: “...although the decrease in the demand of mini cars in Japan is expected, the company forecasts increase in sales and income compared to this fiscal year mainly owing to the increase in the overseas sales, including India.” For the ongoing fiscal year, the company has forecast 2.8 per cent increase in net sales at 3,100 billion yen ($25.85 billion).