NEW DELHI: The country’s largest carmaker Maruti Suzuki India (MSI) on Thursday reported a 28.69 per cent increase in its net profit at Rs 862.54 crore in the second quarter ended September 30, 2014. The hike in profit is being attributed to good domestic sales despite a continuing gloom in the auto sector. The company had posted a net profit of Rs 670.23 crore in the same period last fiscal.
Net sales during Q2 stood at Rs 11,996.33 crore, up 17.47 per cent as against Rs 10,211.83 crore in the same quarter of last fiscal.
MSI sold 3,21,898 units of vehicles during Q2, again a growth of 16.80 per cent, compared with 2,75,586 units in the same period a year ago.
Sales in the domestic market stood at 2,87,687 units, up 19.09 per cent while exports were at 34,211 units, up marginally by 0.54 per cent.
Commenting on the overall market situation, MSI Chairman RC Bhargava said: “The situation is not as bright as many had hoped for. Maruti has had a better growth at 17 per cent in the first half of the year but industry as a whole is not doing good. Without us, the industry growth will be in the negative territory.”
To please its investors the carmaker’s board also approved a dividend payout ratio within the range of 18-30 per cent, up from the average of 10-15 per cent of net profit in the past.
It also recommended an increase in the FII limit to 40 per cent from 24 per cent currently subject to shareholder approval and RBI nod.
Commenting on the Gujarat plant, Bhargava said work has already started at the plant with MSI investing close to about Rs 100 crore. “The plant is scheduled to be commissioned in May-June 2017. So we have to start work there,” he said.