Maruti's net profit zooms ten times in Q1

Wednesday, 23 July 2003, 07:00 Hrs
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NEW DELHI: Indian auto major Maruti Udyog Ltd achieved a giant 971 percent increase in net profit in the first quarter of 2003-04, thanks to higher sales, cost-cutting and greater productivity.

Maruti Wednesday announced a net profit of 1.23 billion for the April-June quarter, a rise of 971.3 percent over 115 million in the corresponding period last year, according to a company statement.

The company was listed on the stock exchange for the first time after a very successful public offering in June 2003.

Following the disinvestment, the majority stake holding and management control of Maruti is now with Japan's Suzuki Motor Corporation.

The company manufactures 10 models in India and imports one fully built utility vehicle from Japan. Its biggest success has been the Maruti 800, which has come to be the first choice of many people opting to move from two-wheelers to cars.

The company registered a 47.5 percent jump in vehicle sales in the first quarter over the same period last year despite tough competition from other carmakers. The total sales accounted for 104,000 units, including 12,496 units for export.

Maruti claims to have a market share of 55 percent, up from 52 percent in the first quarter of 2001-02.

Reporting results as a public company for the first time, Maruti disclosed that its profit before tax has registered a whopping 735.7 percent rise at 1.75 billion during the first quarter this year over 210 million in the corresponding period last year.

The company attributed the improved financials to higher sales and successful implementation of measures to enhance productivity and cut costs across the board.

Maruti's total income went up by a robust 44.7 percent to 21.1 billion from 14.57 billion during the corresponding period last year.

Source: IANS
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