| ||Maruti Suzuki financial results |
|Demand driven by government stimulus |
|New Delhi, October 24, 2009 |
|The Board of Directors of Maruti Suzuki India Limited approved the financial results for the second quarter of 2009-10 (July - September 2009) here today. |
The company registered Net Sales (net of excise) of Rs 70,496 million during the second quarter of 2009-10.
Net Profit during the second quarter of 2009-10 was Rs 5,700 million.
In the domestic market, favourable conditions like stimulus package of the government, buoyant semi-urban markets, low interest rates, improved financing by government banks, low inflation and low oil prices helped clock good numbers.
Exports numbers contributed to the strong growth, riding on stimulus packages by European governments.
The Net Sales for the first half of the fiscal 2009-10 were Rs 133,898 million
Net Profit for H1 2009-10 was Rs 11,535 million.
On volumes, the company remains cautiously optimistic in near future. At the same time, margins in the future may be under pressure due to hardening of commodity prices and strengthening of Yen. The company continues to focus on cost optimization and Kaizen in its operations.
During the quarter, domestic sales volume grew by 21.8 per cent to 209,083 units, led by new and refreshed models Estilo, A-star and Ritz as well as Alto, Swift, Swift DZire and WagonR. The company launched a refreshed Estilo.
During the quarter, Maruti Suzuki's volume in the domestic A2 segment grew by 29.7 per cent, while in the A3 segment the sales volume grew by 28.8 per cent as compared to sales in July-September 2008.
The company's domestic market share amongst passenger cars moved from 54.2 per cent to 54.9 per cent in Q2 of the fiscal, with share in the A3 segment touching 37.9 per cent, a gain of 7.9 percentage points.
During the first half the company exported 66,419 units almost at par with the export volumes of full fiscal 2008-09 (70,023 units).
The company commenced exports of A star, as Celerio, to Latin America and South Africa, during the quarter. Cumulative A star exports crossed 77,700 units, since its first export shipment in January 2009.
The A-star was ranked at 2nd position amongst gasoline driven cars, by Verkehrsclub Deutschland - VCD, an independent agency of repute that rates cars in Germany, on basis of their environmental impact.
During the quarter the company further strengthened its network. The Sales Network grew to 741 outlets covering 509 cities (end March 2009: 681 outlets, 454 cities). The Service Network increased to 2,813 service outlets covering 1,338 cities. (end March 2009: 2,767 outlets, 1,314 cities)