New Delhi, Apr 24 (UNI) Maruti Suzuki Ltd, the country's largest car maker, today said its net profit stood at Rs 297.68 crore for the quarter ended March 2008, whereas the same was Rs 448.56 crore in the corresponding quarter last year.
''The two figures are not comparable owing to a more stringent depreciation policy adopted voluntarily by the company from 2007-08,'' a company statement said.
The company has adopted shorter depreciation cycles for its equipment and tooling assets. The full depreciation for equipment and tooling assets will now be eight years instead of 13 years previously. The full depreciation for dyes will be four years instead of five years, earlier.
Company Chief General Manager (Finance) Ajay Seth said the change in depreciation cycle has been undertaken since lifecycle of various products have decreased and there is a faster turnaround of technology. ''We reassessed life of assets and accordingly changed the depreciation tenure. The depreciation on dyes have been done to four years since life cycle of models have also come down.'' The total income has increased 9.35 per cent to Rs 5,069.94 crore for the quarter ended March 2008 from Rs 4,636.14 crore in the same period a year ago.
The company's EBDITA (Earnings Before Depreciation, Interest, Taxes and Amortisation) for the year stood at Rs 3130.8 crore, a growth 21 per cent over the previous year.
The company's total income has increased 23.41 per cent to Rs 18,823.75 crore for the year ended March 2008 from Rs 15,252.30 crore for the year ended March 2007.
The company's net profit increased 10.80 per cent to Rs 1,730.82 crore for the year ended March 2008, as compared to Rs 1,561.98 crore for the year ended March 2007.
Mr Seth said the company incurred Mark-to-Market loss of Rs 50 crore during the year on the derivative instruments outstanding on March 31, 2008.
''The loss was on account of forward cover on exports in Euro and external commercial borrowings (ECB).'' During the fiscal 2007-08, Maruti Suzuki sold 764,842 vehicles, the highest ever in the history of the company. This marked a growth of 13.3 per cent over the previous year.
The company's sales included exports of 53,024 vehicles during 2007-08, the highest ever in the company's history, growing by 34.9 per cent during the year.
''While strengthening its leadership in the A2 segment, Maruti Suzuki also attained leadership in the A3 segment for the year 2007-08. The company sold 49,335 cars in the A3 segment, a whopping growth of 66 per cent over the previous year,'' the statement added.
Company Managing Director S Nakanishi said for the year ahead, there exists negative factors like inflation and tighter financing norms. However, he said income tax reduction and higher income with the consumers were the silver linings.
The Board of Directors have recommended a dividend of 100 per cent for 2007-08 which was 90 per cent in 2006-07.
The consolidated results of the group increased 12.69 per cent to Rs 1,789.89 crore for the year ended March 2008 as compared to Rs 1,588.26 crore for the year ended March 2007. The total income has increased 23.44 per cent to Rs 19,121.39 crore for the year ended March 2008 from Rs 15,489.40 crore for the year ended March 2007.
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