Financial Daily from THE HINDU group of publications
Tuesday, Jul 23, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jul 23, 2002 |
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Corporate Results
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Cars Corporate - Performance Boost for Maruti in audited results S. Muralidhar
Mr Jagdish Khattar
CHENNAI, July 22 MARUTI Udyog Ltd's (MUL) audited results differ with its previously announced unaudited results largely due to disputed excise duty payments, for which the company had made provisions in its unaudited accounts. Later, some of these claims were dropped after appeals filed by MUL were upheld. Consequently, the provisioning for such claims has been reduced in the audited results leading to higher profits. The company's turnaround during the year 2001-02, after a net loss of Rs 269 crore recorded during 2000-01, looks even more emphatic with the latest announcement. With the finalisation of its accounts, MUL's total revenue for the year ended March 2002, has also gone up from the previously (unaudited results) announced Rs 9,295.3 crore to Rs 9,410.3 crore. Net profit has also risen from the previously announced Rs 55 crore to Rs 104.5 crore. The company sold 3,40,182 vehicles during the fiscal 2001-02, compared to 3,35,461 during 2000-01, an increase of 1.41 per cent. In comparison, year-on-year, the passenger car major's revenue increased by 1.67 per cent during 2001-02. The company has been able to post profit despite a higher depreciation provision compared to the previous year. The higher depreciation in 2001-02 was due to investments made for introducing new models such as the Versa and also for upgradation of the existing models. Improvement in quality has also enabled the company to bring down the number of defective parts, which has also led to a drop in manufacturing costs, reduced the warranty levels and enhances productivity. Mr Jagdish Khattar, Managing Director of MUL, told Business Line that during "this fiscal, we plan to drive growth by consolidating the position of the WagonR and Alto, both of which showed strong growth in 2001-02. On the Maruti 800, the country's most popular car, we have lined up initiatives that will widen its market base and speed up the motorisation of the country.'' "Expect Maruti to come up with continuing product innovations and aggressive marketing strategies to compete in a depressed market. Our turnaround last year gives us the platform and the leeway to explore new opportunities in these areas. Our new businesses including Maruti Finance, Maruti Insurance, pre-owned cars and lease and fleet management for corporates, which took off last year, will drive growth while extending our relationship with the customer,'' he added.
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