Maruti Suzuki India Ltd, the country's top carmaker, on Wednesday reported a 15.8% year- on-year jump in net profit at Rs 1709.0 crore for the quarter ended March 31, the immediate quarter after demonetization, on strong demand for its premium segment cars and capacity addition in Gujarat.
Net sales in the fourth quarter rose 20.3% to Rs 18,005.2 crore over the year-ago period.
Net profit for the full fiscal 2017 grew 36.8% to Rs 7,337.7 crore while sales rose 18.5% at Rs 66,909.4 crore. Vehicle sales during the quarter rose 15% year on year to 414,439 vehicles with exports constituting 31,771 units.
For the full fiscal 2017, the company sold 15,68,603 vehicles, a rise of 9.8% over the previous fiscal. Of the total sales, 124,062 units were exported.
Maruti Suzuki has been focusing on developing premium cars apart from playing the volume game. The company will be launching more products, in the category in the current years.
Arun Agarwal, AVP – research at Kotak Securities, said, "As expected, Ebitda margins during the quarter were on the lower side on account of adverse impact of the rise in commodity prices and costs pertaining to the start of a new plant in Gujarat."
Focus on new products, gaining footprints in premium segment and growth in both urban and rural areas will translate into healthy volume growth for Maruti Suzuki, he said.
Abhishek Jain, senior analyst, HDFC Securities concurred, saying that consistent success of Ciaz, Brezza, Baleno and Ignis helped the company.
Jain said apart from expanding portfolio in the premium segment, fresh capacity from Gujarat facility, an uptick in rural demand, Seventh Pay Commission payouts, falling interest rates, general economic growth also helped in notching sales.
DRIVING FORCE
- Maruti Suzuki’s vehicle sales during Q4 rose 15% year on year to 414,439 vehicles
- For the full fiscal 2017, the company sold 15,68,603 vehicles, a rise of 9.8%
- About 124,062 units were exported by the company during the last fiscal
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Maruti Suzuki India")
)
Maruti Suzuki has been focusing on developing premium cars apart from playing the volume game. The company will be launching more products, in the category in the current years.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}