Maruti Suzuki India (MARUTI) Q4 98/99 earnings summary

Executive summary

• Indian passenger car and utility vehicle market contracted almost 5% YoY to 475,000 units; domestic sales fell 5% to 309,781 vehicles.

• FY1998-99 profit after tax was ₹5,229.7 million vs ₹6,519.1 million; profit before tax was ₹7,841.4 million vs ₹9,773.1 million.

Financial highlights

• Sales and other income: ₹81,806.4 million vs ₹84,780.1 million; cost of goods sold: ₹71,969.4 million vs ₹73,043.4 million.

• Operating profit was ₹9,837.0 million vs ₹11,736.7 million; proposed dividend remained 30%, totaling ₹396.9 million.

• Retained profit was ₹4,789.1 million vs ₹6,082.5 million; net worth rose to ₹25,960.6 million from ₹21,227.8 million.

Outlook and guidance

• New press, paint and assembly shops raised installed capacity from 250,000 to 350,000 vehicles annually; mass production began in March 1999.

• Engine assembly and machine-shop facilities were planned for commissioning in December 1999; additional capacity and modifications were planned for new products.

• Market growth initiatives and the Second Automobile Revolution were expected to generate and capture significant volumes in FY1999-2000.