Indias top car maker Maruti Suzuki India has witnessed a marginal rise of 0.50 per cent rise in its net profit at Rs 659.86 crore in the fourth quarter of 2010-11 from Rs 656.55 crore in the corresponding quarter of 2009-10 fiscal despite a higher royalty payment,increased input costs and higher spending for promotions of new models. The companys income from operations increased by 18.93 per cent to Rs 10,092.18 crore from Rs 8,485.83 crore in the same period previous fiscal. Its total automobile sales stood at 3,43,340 units during the quarter,compared with 2,87,422 units in the year-ago period,up 19.46 per cent. The firm saw a massive jump in royalty payment to its Japanese parent Suzuki Motor Corp during the period to Rs 508 crore as against Rs 285 crore in the same quarter a year ago. Maruti shares rose by 1.53 per cent to Rs 1,326.55 on the Bombay Stock Exchange as the fourth quarter numbers were above market expectations. On a quarter-on-quarter basis,its net profit rose by 16.75 per cent. Marutis royalty payment increased by 86 per cent to Rs 1,981 crore for 2010-11 as against Rs 1,063 crore in the previous fiscal. There was a significant increase in commodity prices and forex fluctuation. The impact due to forex fluctuation is 1 per cent of net sales. Apart from that there were lot of new model launches,which also had cost impact, Maruti CFO Ajay Seth said. During the last fiscal,commodity prices increased by 250 basis points and 100 basis points for forex increase. Royalty in last fiscal it was about 5.1 per cent of net sales and it will continue to be in the range of 5 per cent to 5.5 per cent, Seth said. However,the company warned that the short-term outlook was uncertain due to rising interest rates that could dampen consumer demand,and higher commodity prices. In the medium- to long-term,Indian economic growth is very strong and in the short term there is uncertainty due to fuel price increase,commodity price increase and higher interest rates, said managing director Shinzo Nakanishi. Also,there is a high base effect in the last two years,he said,adding,in case the growth momentum continues,we are prepared. The companys total income (net of excise) for the year 2010-11 was Rs 37,522.4 crore,a growth of 24.6 per cent over 2009-10. Net profit during the year stood at Rs 2,288.6 crore,a drop of 8.4 per cent over 2009-10. The companys profit was impacted by adverse currency movement,particularly on exports,higher commodity prices and new model launches, it said. On Overdrive * Maruti Suzuki India clocks a total sales of 12,71,005 vehicles during 2010-11,a growth of 24.8 per cent * The auto major exported 1,38,266 units in the fiscal,43 per cent of which went to Europe * Royalty payment to Suzuki Motor Corp shoots up to Rs 508 crore in fourth quarter as against Rs 285 crore in the same quarter a year ago * Maruti Suzuki shares rise by 1.53 per cent as fourth quarter numbers beat expectations * Company warns that the short-term outlook was uncertain due to rising interest rates and higher commodity prices
