Maruti Suzuki India (MARUTI) Q4 99/00 earnings summary

Executive summary

• FY 1999-00 vehicle production reached 407,589 and total vehicle sales were 406,574; sales and other income rose to Rs. 96,725 million from Rs. 81,806 million.

• Profit before tax fell to Rs. 3,851 million from Rs. 7,842 million, with adverse exchange-rate movements and higher input prices cited as key pressures.

Financial highlights

• Sales were Rs. 93,151 million versus Rs. 77,814 million; profit after tax was Rs. 3,301 million versus Rs. 5,230 million.

• Operating profit declined to Rs. 6,645 million from Rs. 9,838 million; depreciation and deferred revenue expenditure rose to Rs. 2,794 million from Rs. 1,990 million.

• Proposed dividend was 25%, or Rs. 331 million, versus 30%, or Rs. 397 million, in FY 1998-99.

Outlook and guidance

• FY 2000-01 was designated the “Year of the Customer,” with priorities of customer satisfaction, quality upgrades, cost reduction and value-for-money products and services.

• Planned priorities included strengthening R&D, expanding localization and using Value Analysis and Value Engineering to reduce costs.