|India's number one carmaker Maruti Suzuki India Limited today announced its financial results for the quarter ending March 31, 2009 and for the full year 2008-09.
The company's Total Income (Net of Excise) (Income from Operations plus Other Income) for the financial year 2008-09 climbed to Rs 21,453.8 Crore. This is the highest Total Income (Net of Excise) ever in the company's history, and marks a growth of 14.28 per cent over 2007-08. The growth in Total Income (Net of Excise) included higher realisations, largely contributed by the company's popular hatch-back Swift and premium sedan Swift Dzire (Diesel and Petrol variants).
Net Profit during the year stood at Rs 1,218.7 Crore, down 29.6 per cent over 2007-08. The company's EBDITA for the year stood at Rs 2,433.4 Crore, a fall of about 22 per cent over the previous year.
During the year, commodity prices went up sharply and remained high for most part of the year. Forex fluctuations were also adverse and impacted the bottomline significantly.
In recent months, commodity prices have eased.
With regard to foreign currency exposure, the company's exports in 2009-10 are expected to be higher and cover its imports.
The Board of Directors recommended a dividend of 70 per cent for 2008-09. (Fiscal 2007-08: 100 per cent).
The company registered Total Income (Net of Excise) (Income from Operations plus Other Income) of Rs 6,538.3 Crore during January-March 2009, a growth of 30.26 per cent compared to January-March 2008.
Net profit during January-March 2009 was Rs 243.1 Crore vis-à-vis Rs 297.7 Crore during January-March 2008.
While there was a 17 per cent growth in unit sales during the quarter, the adverse foreign exchange movements during the year, impacted the bottomline in Q4 as well.
Highlights of 2008-09
In the fiscal 2008-09 Maruti Suzuki sold a total of 792,167 vehicles. The annual sales in 2008-09 is the highest ever by the company in its 25 year history. The previous highest annual sales were 764,842 units in 2007-08.
During the fiscal, Maruti Suzuki Swift crossed the 3 lakh-sales mark cumulative domestic sales since launch and became the quickest vehicle model to do so. During the fiscal, Maruti Suzuki's Alto continued to be the preferred vehicle for the great Indian middle class crossing the 1 million-mark in cumulative sales in domestic market.
The company's sales included exports of 70,023 units in 2008-09, up by 32.1 per cent over sales of 53,024 recorded in 2007-08. The 2008-09 export numbers, the highest ever by the company, was led by A-star, the fuel efficient compact car launched in Europe during the year as Suzuki Alto. The export tally includes around 19,000 units of A-star exported to Europe including United Kingdom, France, Germany, Italy, Netherlands, Denmark and Switzerland.
Fiscal 2008-09 marked Maruti Suzuki's Silver Jubilee year in India. Over these 25 years the company has sold over 7 million (70 lakh) cars in the domestic market. Additionally, over half a million cars made by Maruti Suzuki have been exported world-over.
During the year, the company continued its focus on long term initiatives, despite the challenging market situation. These include:
- Focus on R&D: Manpower strength to 730 engineers from 460 in end March 2008. Company plans 1,000 engineers in R&D by 2010.
- New technology engine: Brand new facility for K-series engine launched on schedule.
- Launching new models: A-star launched. Introduced Maruti 800 Duo - an alternate fuel option that runs on LPG and petrol.
- Annual capacity to manufacture expanded from 800,000 to one million units (Gurgaon plus Manesar plants).
- Reached out to new segments of customers - government employees and rural customers - through innovative programmes
- Export of A star (as Suzuki Alto) to Europe commenced as per schedule.
- Dedicated export port facilities for cars at Mundra completed, used for A-star shipment.
- Network expansion:
o Sales: From 600 sales outlets (in 393 cities) last year to 681 outlets (in 454 cities)
o Service: From 2,628 service outlets (1220 cities) last year to 2,767 (in 1314 cities);
o TrueValue: From 265 outlets (in 166 cities) last year to 315 outlets (181 cities)
- Increased Pre-owned car sales from 1.01 lakh units in 2007-08 to 1.23 lakh units in 2008-09
- National Road Safety Mission launched - a nation-wide Corporate Social Responsibility (CSR) initiative to train 500,000 people in safe driving in three years. The network of Maruti Driving Schools further expanded and crossed 50 schools.