Car market leader Maruti Suzuki India Limited today announced its financial results
for the quarter ending March 31, 2008 and for the full year 2007-08.
The company's Total Income (Net of Excise) for the year 2007-08 climbed to Rs 188,238
million. This is the highest Total Income (Net of Excise) ever in the company's
history, and marks a growth of 23.4 per cent over 2006-07.
Net Profit during the year stood at Rs 17,308 million, up 10.8 per cent over 2006-07.
This is despite a more stringent depreciation policy adopted voluntarily by the
company with effect from 1st April 2007.
The company's EBDITA for the year stood at Rs 31,308 million, a growth of about
21 per cent over the previous year.
The Board of Directors recommended a dividend of 100 per cent for 2007-08. (Fiscal
2006-07: 90 per cent).
The company registered Total Income (Net of Excise) of Rs 50,699 million during
January-March 2008, a growth of 9.4 per cent compared to January-March 2007.
The growth in Total Income (Net of Excise) included higher realisations, largely
contributed by the company's popular hatch-back Swift (both Diesel and Petrol variants)
and premium sedan, SX4.
Net profit during January-March 2008 was Rs 2,977 million. Net profit during January-March
2007 was Rs 4,486 million. However, the two figures are not comparable owing to
a more stringent depreciation policy adopted voluntarily by the company from 2007-08.
New Depreciation Policy
For a tighter and more prudent financial reporting, the company has voluntarily
adopted shorter depreciation cycles for its equipment and tooling assets. The full
depreciation for equipment and tooling assets will now be 8 years instead of 13
years previously. The full depreciation for dies will be 4 years instead of 5 years,
In line with this accounting revision, the company has made an additional provision
of Rs 2,123 million for Depreciation for the full year 2007-08, impacting the profit
figures for the quarter as well.
Highlights of 2007-08
During the fiscal 2007-08, Maruti Suzuki sold 764,842 vehicles in 2007-08, the highest
ever in the history of the company. This marked a growth of 13.3 per cent over the
The company's sales included exports of 53,024 vehicles during 2007-08, the highest
ever in the company's history. Exports grew by 34.9 per cent during the year.
While strengthening its leadership in the A2 segment, Maruti Suzuki also attained
leadership in the A3 segment for the year 2007-08. The company sold 49,335 cars
in the A3 segment, a whopping growth of 66 per cent over the previous year.
Following are some of the other performance highlights of 2007-08, the best year
ever for the company so far: