The Hindu : MUL profit up 40 p.c. at Rs. 146 cr.

Online edition of India's National Newspaper
Thursday, May 22, 2003

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MUL profit up 40 p.c. at Rs. 146 cr.

NEW DELHI MAY 21. Ahead of its proposed public offer for divestment of Government equity, car maker Maruti Udyog (MUL) today announced a 40 per cent higher profit at Rs. 146.4 crores for the year 2002-03. The profit was largely attributed to aggressive cost cutting measures and enhanced productivity, a company statement said here.

Suzuki Motor Corporation of Japan, which raised its equity holding to a majority 54.2 per cent last year, said the profit was also due to enhanced productivity in in-house manufacturing and vendor facilities. The company posted a net profit of Rs. 104.5 crores during 2001-02.

Total revenue stood at Rs. 9,426 crores in 2003 against Rs, 9,398.9 crores.

The car market leader, which has over 50 per cent market share, witnessed flat sales growth during the 12 months ended March 2003 to 3.62 lakh units.

In the export market, the company posted a 163 per cent growth during 2002-03 to 32,240 units.

The profit before tax (PBT) went up by 138.4 per cent to Rs. 282.1 crores during the last fiscal over Rs. 118.2 crores in the previous fiscal.

MUL also shed flab through a voluntary retirement scheme (VRS) initiated during 2001-02 resulting in employee cost reduction by Rs. 15.3 crores, an increase of 6.7 per cent over 2001-02, the release said.

``During the year (2002-03), Maruti engineers worked closely with component suppliers, leading to a reduction in cost of components and further improvement in quality,'' it said. As a result of reduced manufacturing cost of components, the company's expenditure on consumption (raw materials and stores) was lower by 79.7 crores as compared to 2001-02. Depreciation provision was lower by 6.1 per cent to Rs. 3,221.1 crores.

PTI

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