Millennium Post

Maruti Suzuki Q4 profit skids 35.5% as sales slow 9.5%

Net sales of the company declined by 9.48 per cent at Rs 11,818.13 crore from Rs 13,056.26 crore a year earlier, Maruti Suzuki India said in a statement.

‘Lower volumes, higher sales promotion expense and a stock compensation to dealers owing to reduction in excise duty (exceptional expense) impacted the company's bottomline during the quarter,’ it said.The volume of sales dropped 5.48 per cent to 3,24,870 vehicles during the fourth quarter from 3,43,709 units in the same period of last year. However, the company's consolidated net profit for the fiscal ended 31 March, 2014, rose by 15.53 per cent to Rs 2,852.92 crore as compared to Rs 2,469.28 crore in the 2012-13 fiscal. Net sales of the company for the 2013-14 fiscal stood at Rs 43,271.78 crore as against Rs 43,215.83 crore in the earlier fiscal.

‘The company's cost reduction and localisation initiatives, together with favourable foreign exchange, helped improve profit margins despite tough economic conditions,’ the carmaker said. The company's sales volume stood at 11,55,041 units in 2013-14 fiscal, a drop of 1.4 per cent as against 11,71,434 units in 2012-13 fiscal.The company's board recommended a dividend of 240 per cent at Rs 12 per share of face value Rs 5 each, for 2013-14.

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