In the quarter ended Sept ’08, Maruti Suzuki India (MSI), recorded moderate growthin its total operating income by 7% to Rs 4993.62 crore. However crash in its OPMby 480 bps lowered the operating profit by 27% to Rs 515.71 crore. The fall in itsOPM is attributed to couple of factors such as Yen appreciation, increase in royalty,increase in diesel cost, rise in employee cost due to K series plant, expandedcapacity at Manesar and R&D etc. Further, its depreciation cost surged by 88%owing to new depreciation policy which in turn worsened the profit levels. Its netprofit declined by 37% to Rs 296.12 crore.
Quarter Performance
The company’s net sales grew marginally by 6% to Rs 4806.26 crore inquarter ended Sept ’08 owing to degrowth in its sales volume. Its total salesvolume reduced by 1% to 189451 units driven by its domestic sales. Itsdomestic sales declined by 3% to 171706 units. However improvement in itsexports by 17% to 17745 units partially arrested the degrowth in its total salesvolume. Its total operating income grew by 7% to Rs 4993.62 crore.Its operating profit margin (OPM) crashed by 480 bps to 10.3% lowering itsoperating profit by 27% to Rs 515.71 crore.Its other income grew by 22% to Rs 96.04 crore. Its interest cost rose by 48%to Rs 20.77 crore. Its depreciation recorded steep hike of 88% to Rs 165.84crore owing to new depreciation policy adopted this fiscal that lowered theuseful life of assets. It’s PBT after EO declined by 38% to Rs 425.14 crore. Onaccounting its tax provision, its net profit declined by 37% to Rs 296.12 crore
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