NEW DELHI: Experiencing bumpy rides, the country’s largest carmaker Maruti Suzuki on Tuesday reported 11.7 per cent decline in net profit to Rs 1,133.6 crore for the fourth quarter ended March 31. According to the carmaker, it was hit due by higher expenses and production loss due to the Jat agitation in Haryana. The company had posted a net profit of Rs 1,284.2 crore in the same period of the previous financial year.
However, the company had reported a 15.27 per cent growth in net sales, increasing revenues to Rs 15,300 crore, in comparison to Rs 13,273 crore during the corresponding quarter last year.
“Loss of over 10,000 units due to reservation agitation, increased advertising expenses and lower other income slightly impacted profits during the quarter,” Maruti Suzuki India said.
Maruti had to suspend production at its Manesar and Gurgaon plants in February because of disruption in supply of components due to the agitation. The two plants put together roll out some 5,000 units of vehicles a day.
The automaker, which sells about one in every two cars in the country, said net sales rose 12.5 per cent to Rs 14,930 crore. By vehicle numbers, sales rose 3.9 per cent to 360,402.
However, the board of directors proposed a dividend of 700 per cent or Rs 35 per share of face value of Rs 5 for 2015-16.
However, analysts said the earnings were strong considering the company offset the impact of a weaker rupee versus the yen with a better product mix and reduced parts imports. The company stock price closed at Rs 3,869.45 a jump of 3.62 per cent at the Bombay Stock Exchange.