Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

Maruti Q4 Net Profit Jumps By 58%

Riding on price hikes and lower sales promotion costs, Maruti Suzuki India (MSI) on Friday, 29 April, 2022 reported a 58 per cent increase in fourth-quarter net profit. India's largest carmaker recorded a net profit of Rs 1,839 crore in the January-March period. It was Rs 1,166 crore in the corresponding period of last year

Photo Credit :

1558424898_VvY1Nz_MARUTI_SUZUKI_reuters_470.jpg

Maruti, majority-owned by Japan's Suzuki Motor Corp, hiked prices five times from January 2021 to April 2022. This certainly helped the country's largest car maker post a healthy set of numbers for the fourth quarter ended 31 March 2022. Maruti reported a 11 per cent increase in sales (year-on-year) to Rs 25,514 crore during the quarter under review.

Apart from shortage of chipsets, Maruti identified rising prices of commodities as an area of concern. “The prices of commodities such as steel, aluminium and precious metals witnessed an unprecedented increase during this year. The Company was forced to increase prices of vehicles to partially offset this impact," Maruti said in a filing. Maruti said it continued to work on cost reduction efforts to minimise the impact on customers.

Maruti said it sold a total of 488,830 vehicles during the quarter, lower by 0.7 per cent compared to the same period previous year. For the shareholders, Maruti said the Board recommended a final dividend of ₹60 per share for the year FY22.

In the reporting quarter, the sales in the domestic market stood at 420,376 units, a decline of 8 per cent over last year period. The sales in the export market were at 68,454 units which is the highest ever in any quarter.

The prices of commodities such as steel, aluminium and precious metals witnessed an unprecedented increase during this year, the automaker noted. The company was forced to increase prices of vehicles to partially offset this impact. The company continued to work on cost reduction efforts to minimize the impact on customers.

With this, the operating profit for the Quarter stood at Rs 1,779.6 crore, a growth of 42.4 per cent over that of Q4FY21.

Though the profit in FY22 was lower, the Board of Directors recommended a dividend of Rs 60 per share (face value of Rs 5 per share) compared to Rs 45 per share in FY 21. "This is a special one-time gesture to thank shareholders for their patronage and support as the company commemorates its 40th year since inception," Maruti stated.


Tags assigned to this article:
maruti suzuki maruti