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Old 26th April 2010, 17:42   #1
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Default Maruti's net profit up 105% in '09-10

The numbers are simply staggering!

Total sales = 10,18,365 cars

Domestic sales = 8,70,790. That's 2,400 Maruti's finding an Indian home every day!

Gross Income = Rs. 30,119.7 crore. Up 40% over the previous year.

Net Profit = Rs. 2,497.60 crore.

Quick back of the envelope calculations show average profit of Rs. 24,519 per Maruti sold. That's pretty modest IMO, but then, Maruti's strong-hold is in the fiercely competitive & price sensitive hatchback segment. Then, there's the cost of new launches (Ritz, Eeco etc.), new engines, BS IV upgradation etc. in the last 12 months.

Good for those who hold Maruti stock. Dividend of 120 per cent for 2009-10, compared to 70 per cent for the previous year.

Another noteworthy point : Rural sales accounted for 16.5% of the Company’s total unit sales, up from 9.5% in 2008-09.

From the official press release:

Quote:
New Delhi, April 26, 2010: India’s number one carmaker Maruti Suzuki India Limited today announced its financial results for the quarter ending March 31, 2010 and for the full year 2009-2010.

Company’s Total Income (Net of Excise) for the year 2009-10 climbed to Rs 30,119.7 crore. This is a growth of 40 per cent over 2008-09.

The Company’s Net Profit during the year stood at Rs 2,497.6 crore, up 105 per cent over 2008-09.

Dividend

The Board of Directors recommended a dividend of 120 per cent for 2009-10, compared to 70 per cent for the previous year

Quarter 4

The Company registered Total Income (Net of Excise) of Rs 8,503.5 crore during January-March 2010, a growth of 30 per cent year on year.

Net profit during January-March 2010 was Rs 656.6 crore, reflecting a growth of 170 per cent over January-March 2009.

Though the profit in the quarter increased on the low base of last year, it was impacted to some extent by the cost of upgradation of the Company’s full range of cars to Bharat Stage IV emission norms, cost of new model launches, higher raw material prices and adverse foreign exchange movement.

Sales highlights of 2009-10
• Total sales 10,18,365 units; Growth of 29% over previous fiscal (792,167 units)
• Domestic sales of 8,70,790 units
• A2 segment sales up 23.8 per cent ; A3 segment sales grew 30.8 per cent
• Rural sales accounted for 16.5% of the Company’s total unit sales, up from 9.5% in 2008-09
• Export sales of 1,47,575 units
• Countries contributing to exports included United Kingdom, France, Germany, Italy, Netherlands in Europe. and Algeria, Chile, Indonesia and Australia in non Europe
• New markets added in fiscal: South Africa, Hong Kong and Norway.

Last edited by GTO : 26th April 2010 at 17:43.
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Old 26th April 2010, 17:49   #2
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This much was not expected.

They are doing very good inspite of all recession good number achieved.

Thanks & Regards
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Old 26th April 2010, 17:59   #3
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>>Good for those who hold Maruti stock. Dividend of 120 per cent for 2009-10, compared to 70 per cent for the previous year.

The stock price has fallen 10% in last one week. Seeing intensive pressure from comptetion, lags forcast.

Maruti Suzuki, India's leading carmaker, saw a 200 basis points dip in its operating profit margins in the March quarter from the preceding sequential quarter, a senior company official said on Monday.
The operating profit margin fell to 13.5% from 15.5%, Chief Financial Officer Ajay Seth told reporters.


Maruti Suzuki India Stock Price, Maruti Suzuki F&O Quotes Bids Offers

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Old 26th April 2010, 18:12   #4
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Quote:
Originally Posted by GTO View Post
Gross Income = Rs. 30,119.7 crore. Up 40% over the previous year.

Net Profit = Rs. 2,497.60 crore.

Quick back of the envelope calculations show average profit of Rs. 24,519 per Maruti sold. That's pretty modest IMO, but then, Maruti's strong-hold is in the fiercely competitive & price sensitive hatchback segment. Then, there's the cost of new launches (Ritz, Eeco etc.), new engines, BS IV upgradation etc. in the last 12 months.
Isn't the Net Profit calculated after taxes, all sorts of depreciation etc? An avg profit of Rs.24,519 per car looks very modest indeed. Considering that margins will be lesser of lower priced cars, it would mean Maruti is making next to nothing in profits for its largest selling model, Alto. I doubt if thats the case.
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Old 26th April 2010, 21:59   #5
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Mindblowing..... Now you know why car companies are flying to India. So much share to take out from Maruti. Even 5-7% from that number is massive. India is a great market for companies to fuel their overall growth which is mostly stagnant in developed markets.

I seriously believe Maruti must heavily invest in developing transporation infrastructure for the nation. Its like giving back a small pitance for gaining such huge profits. Gaints like these must be slapped with responsibility of building the nation's roads.
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Old 27th April 2010, 15:40   #6
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Come to think of it, we always knew that Suzuki's Indian operations (i.e. Maruti) interested VW the most. Now we know why .

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I seriously believe Maruti must heavily invest in developing transporation infrastructure for the nation.
In the ideal world, yes. However, Maruti already pays taxes to the government, a part of which the government is "supposed" to use toward road infrastructure.
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Old 27th April 2010, 15:54   #7
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Default Volkswagen-Suzuki may use Maruti models in India

I don't know if this news would come under this topic or is a repeat but just read the following:


NDTV has learnt that Volkswagen has asked its Indian operations to send proposals on Marutiís models, which could be sold under Volkswagen brand. The proposals also would look at sourcing Marutiís engines, components, aggregates for Volkswagenís models in India.

According to the proposal, Volkswagen may sell Marutiís Ritz-based car in India under its brand. The Marutiís new WagonR and Ritz models are being considered for Skoda, and Volkswagen brands.

Sources told NDTV that pricing of the Volkswagen models would stay 5-7 per cent higher than comparable Maruti models and the Volkswagen models cars to be assembled at its plant in Chakan.

They added that Volkswagen will use Maruti K series and DDIS engines for some of its models in India.

Under the proposal, Skoda, which is owned by Volkswagen, may use Marutiís new Wagon platform for its budget car model.

But both the carmakers have to iron out some of the issues before a wide-ranging cooperation takes place: Maruti supplies A-Star to Nissan in Europe where is sold as Pixo and Maruti's diesel engines are licensed from Fiat. The Ritz model is also sold as Opel Agila in Europe.

Volkswagen-Suzuki may use Maruti models in India - NDTV Profit
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Old 27th April 2010, 17:14   #8
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Quote:
Originally Posted by mail4ajo View Post
I seriously believe Maruti must heavily invest in developing transporation infrastructure for the nation. Its like giving back a small pitance for gaining such huge profits. Gaints like these must be slapped with responsibility of building the nation's roads.
The taxes should take care of that.

What I would like them to do is contribute towards Motorsport. Motorsport is a VERY EXPENSIVE sport and still not reachable for many talented Indians. It cannot thrive without heavy sponsorship. The Govt is anyways not interested in developing the infrastructure (Race Tracks). Hugely profitable car makers like Maruti Suzuki have the cash to do something about it.
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Old 28th April 2010, 03:57   #9
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Quote:
Originally Posted by StarrySky View Post
Isn't the Net Profit calculated after taxes, all sorts of depreciation etc? An avg profit of Rs.24,519 per car looks very modest indeed. Considering that margins will be lesser of lower priced cars, it would mean Maruti is making next to nothing in profits for its largest selling model, Alto. I doubt if thats the case.
You never know. Sometimes the lowest priced car might have the biggest profit margin and vice versa to keep the prices competitive.

I'm almost certain that ancient and outdated models like the Maruti 800, Omni and Alto have a fat profit margin on them especially at the prices they're being sold right now.
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Old 29th April 2010, 12:15   #10
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A decade back, people started predicted the death of Maruti. FIAT was coming back with the Palio, TATA had launched their peoples car - Indica, Hyundai was proving critics wrong with their unconventional santro, Daewoo was all smiles with the cute matiz. There was no way the lethargic giant of the Indian Auto Industry could survive that attack!

10 years later- They sell over a lakh cars a year, still hold close to 50% of the 'free' automobile market! And the critics continue their arguments in forums and magazines with newer players in the oppostion.

Things could be a lot better with better quality and build though!
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Originally Posted by GTO View Post
Domestic sales = 8,70,790. That's 2,400 Maruti's finding an Indian home every day!

Some companies would be happy if their models can maintain that kind of sales every month!
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Old 29th April 2010, 15:16   #11
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Nice !

Maruti's excellent after sales has a big role to play here !

Even the quality & fit & finish of Maruti does seem to be improving with the newer launches.

If not able to contribute to motorsport, How about Maruti giving us the Swift Sport version atleast with the full model change next year !?
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Old 29th April 2010, 18:48   #12
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No wonder they achieved it! Their cars are VFM and offer just what the first car buyer is looking for. There may be enthusiasts like us complaining about plastic quality, skinny tyres, power-to-wait ration, secs taken for 0 to 100..but a comman man and mostly the first time buyers have these down their priority list.
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Old 29th April 2010, 19:53   #13
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Well Maruti can use GM's old tagline

"whats good for maruti,is good for India"
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Old 30th April 2010, 02:54   #14
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I don't think Maruti can ever be derailed from its #1 position in India. They are just too good in pricing and marketing strategies. Very interesting stats indeed. Especially the number of cars sold. 2400 cars per day is a massive number indeed! You can count on them for sure!
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Old 30th April 2010, 08:47   #15
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Quote:
Originally Posted by rjalihal View Post
I don't think Maruti can ever be derailed from its #1 position in India.
It only takes 2-3 wrong steps for a company to suffer. At present, Maruti has got most things going right.

In the next five years, a lot would come down to the new Swift (Absolutely critical that it is positioned correctly, and succeeds!). Swift platform sells around 20,000 cars a month! They cannot afford to go wrong with this one.

Hyundai is also coming out with its 800cc car! Would be interesting to see its effect on Maruti's best seller- Alto. Would also be interesting to see how the new WagonR and Ritz can fight off competition from Beat, Figo, Micra and other new comers.

Hopefully, it will be better times for us customers with increased competition!
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