Maruti Suzuki plans to pump in Rs. 5000 crore for FY19

  • Maruti Suzuki plans to pump in Rs. 5000 crore for FY19

Maruti Suzuki plans to pump in Rs. 5000 crore for FY19

Maruti Suzuki India on Friday reported a 10 per cent rise in fourth-quarter net profit at Rs 1,882.1 crore but missed market expectations because of higher tax expenses, sending its shares lower. "Instead of 26% earlier, it has gone up to 29%".

"The Board of Directors recommended a dividend of Rs 80 per share of face value Rs 5, for 2017-18". Total vehicle sales were up 11.4 per cent to 4,61,773 units.

Shares of MARUTI SUZUKI INDIA LTD. was last trading in BSE at Rs.8963.95 as compared to the previous close of Rs. 8938.15.

According to MSIL, the increase in effective tax rates impacted its net profit. Besides this, metal costs went up by Rs 700 crore this year, weighing on margins. The net sales stood at Rs 78,104 crore, a growth of 16.7 percent over the same period a year ago.

The automobile sector, which witnessed a healthy sales growth in FY18 led by higher demand from rural markets and the fast-growing SUV segment, should continue to do well in the new fiscal year (FY19) as well, analysts say.

For entire 2017-18, Maruti Suzuki posted net profit of Rs 7,721.8 crore, up 5.1 per cent, from Rs 7,350.2crore in the previous fiscal.

MSI invested around Rs 790 crore for buying land parcels last fiscal.

The board has also given its in-principle approval to establish an employee welfare fund as well as a trust to promote scientific research and technology in the country to commemorate the 35th anniversary of MSIL.

The company has reported net sales of Rs.21760.6 crores during the period ended March 31, 2018 as compared to Rs.21200.3 crores during the period ended March 31, 2017.

The details of the fund are yet to be worked out but it has been announced that each year, it will receive one percent of the company's net profit. Under the new formula, royalty would be calculated in rupee terms and there would be a discount on the royalty after a certain volume, and the expenses done by Maruti in product development would also be reimbursed. The sales in domestic market stood at 1,653,500 units up, 14.5 percent, while exports were at 126,074 units.