Date:25/04/2008 URL: http://www.thehindu.com/2008/04/25/stories/2008042556191700.htm

Business

Maruti Q4 net at Rs. 298 crore

Special Correspondent

NEW DELHI: Maruti Suzuki on Thursday said its net profit for the quarter ended March 2008 dipped by over 33 per cent to Rs. 297.68 crore from Rs. 448.56 crore in the corresponding quarter last year. However, the net profit for 2007-08 increased by over 10 per cent. The company, which has announced 100 per cent dividend for the fiscal, is also planning a price hike soon to meet the high input costs.

Referring to dipped net profit figures, the company said the two figures (net profits of corresponding quarters) were not comparable owing to a more stringent depreciation policy adopted voluntarily by the company from 2007-08.

During the quarter, Maruti Suzuki’s total income increased by 9.35 per cent to Rs. 5,069.94 crore from Rs. 4,636.14 crore in the same period a year ago.

During 2007-08, the company’s net profit increased by 10.80 per cent to Rs. 1,730.82 crore from Rs. 1,561.98 crore in the year ended March 2007. Total income has increased by 23.4 per cent to Rs. 18,823.75 crore from Rs. 15,252.30 crore.

The company said under the shorter depreciation cycles for its equipment and tooling assets, full depreciation will now be eight years instead of 13 years earlier. Full depreciation for dies will be four years instead of the earlier five years, it said. In line with this accounting revision, the company has made an additional provision of Rs. 212.30 crore for depreciation for the whole of 2007-08, impacting the profit figures for the quarter as well, it said.

Maruti Suzuki is also planning to hike the prices of all its products soon. This is mainly due to rising input costs, particularly steel and other consumables.