Maruti Suzuki Q4 net dips 12% to Rs 1,133 cr

The country's largest carmaker Maruti Suzuki reported a 23% jump in net profit for the year ended March 31, 2016 on the back of record sales volume and benign raw material costs. The profit for the fourth quarter ended March 31, however, dipped 12% to Rs 1,133 crore due to production loss of 10,000 units during the quarter.

Maruti's net profit for FY16 stood at a record Rs 4,571 crore, up 23.2% from FY15. Net sales grew 15.9% to Rs 56,350 crore, the company said. The company's stock price which had opened in the red, has surged 4% to trade at Rs 3,883 (at 13.22pm).

The company, which enjoys a 47% share in domestic passenger vehicle market, sold a total of 1,429,248 vehicles in FY16, showing a growth of 10.6%. Of this, exports were at 123,897 units. Most of its peers reported a single digit growth or decline.

The fourth quarter profit stood at Rs 1,133 crore, down 11.7% owing to a low growth in volume. Net sales revenue for the quarter rose 12.5% to Rs 14,929 crore. Maruti sold a total of 360,402 vehicles in Q4, a growth of 3.9%. Of this, exports were at 27,009 units.

Loss of over 10,000 units due to reservation agitation (in Haryana where both its plants are located), increase in advertising expenses and lower other income slightly impacted profits during the quarter, the company said.

Higher volumes aided by successful new model launches and network expansion, lower raw material cost and continued cost reduction initiatives led to growth in profits during the year.

The company's Board of Directors has recommended a dividend of 700% (Rs 35 per share of face value Rs 5) for 2015-16.

At 1330 hours on Monday, the stock on BSE was trading almost 4% higher at Rs 3,872.