Date:07/05/2005 URL: http://www.thehindubusinessline.com/2005/05/07/stories/2005050702480100.htm

Back Maruti Q4 net profit zooms 65 pc

Our Bureau

New Delhi , May 6

MARUTI Udyog Ltd has reported a 65 per cent increase in its fourth quarter profit helped by stringent cost cutting measures, which helped the company offset the higher cost of raw materials, and increased sales of Alto.

The company's net profit for January-March 2005 stood at Rs 259.45 crore as compared to Rs 157 crore in the same period in the previous year.

Total income (net of excise) was Rs 3,142.1 crore during January-March 2005, a growth of 9.3 per cent over Rs 2,874.7 crore in January-March 2004.

The company's net profit was up by 57.4 per cent in 2004-05 at Rs 853.63 crore. Its total income during the fiscal jumped by 19.7 per cent to Rs 11,353.87 crore.

Maruti had sold 13.6 per cent more cars last year at 536,301 units (including exports of 48,899 units) making it the company's highest ever annual sale since it began operations over 21 years ago.

Though analysts forecast a dip in the company's exports in the current fiscal, the launch of the much awaited premium compact car Maruti Swift in the third week of this month is expected to give a fillip to the company's sales.

In fact, giving a clear signal of its mega plans for the Swift, Maruti has prepared a special national sales force, comprising 1,000 young people, for its latest launch.

The Swift sales team christened `Energisers' will be attached to Maruti dealerships across India and is being trained in selling the finer aspects of Swift design and styling, including skills, behaviour and etiquette.

Meanwhile, the board of directors of the company at their meeting today recommended a dividend of 40 per cent.

Maruti's share price jumped by 3.95 per cent on the Bombay Stock Exchange (BSE) today to Rs 433.15.