New Delhi, April 26 (IANS) Passenger car major Maruti Suzuki on Tuesday reported a decline of 11.7 percent in its net profit for the fourth quarter (Q4) of 2015-16.
The company’s net profit stood at Rs.1,133.6 crore for the quarter ended March 31, 2016 from Rs.1,284.2 crore in the corresponding period of 2014-15.
“Loss of over 10,000 units due to reservation agitation increased advertising expenses and lower other income slightly impacted profits during the quarter,” the automobile manufacturer said in a statement.
However, the passenger car major’s total income in the quarter under review was higher by 12.33 percent to Rs.15,305.7 crore from Rs.13,624.8 crore in the fourth quarter of 2014-15.
The net sales during the quarter under review stood at Rs.14,929.5 crore — up 12.5 percent from Rs.13,272.5 crore for the quarter ended March 31, 2015.
Maruti Suzuki sold 360,402 vehicles during the quarter under review logging a growth of 3.9 percent.
For the full financial year 2015-16, Maruti Suzuki reported an increase of 23.2 percent in its net profit.
The net profit stood at Rs.4,571.4 crore for the year ended March 31, 2016 from Rs.3,711.2 crore during 2014-15.
“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 statement said.
The company’s total income which includes net sales and other operating income in the period under review grew by 15.56 percent to Rs.57,746.3 crore from Rs.49,970.6 crore in 2014-15.
Net sales rose by 15.9 percent to Rs.56,350.4 crore in Apr-Mar 2015-16 from Rs.48,605.5 crore.
The automobile manufacturer’s sales in 2015-16 edged up by 10.6 percent to 1,429,248 vehicles.
The company’s board recommended a dividend of Rs.35 per share of face value of Rs.5 for 2015-16.
“The board of directors recommended a dividend of 700 percent (Rs.35 per share of face value Rs.5) for 2015-16. The dividend in 2014-15 was at 500 percent. (Rs.25 per share of face value Rs.5),” the statement said.
According to the company’s chairman R.C. Bhargava the automobile manufacturer will undertake short-tem measures to ramp-up production at its Manesar facility to reduce customer waiting time.
Besides, Maruti Suzuki expects to start production at its Gujarat plant from early next year. Initially, the company plans to manufacture 10,000 units at the new plant.
In addition, the company has set a capital expenditure target of Rs.4,400 crore for 2016-17 from Rs.2,500 crore in 2015-16.