Maruti Suzuki posts record Rs 77 bn profit in FY18 on 17% hike in revenue

Country’s largest car maker Maruti Suzuki has reported a record annual profit of Rs 77.21 billion for the year ended March 31, 2018, helped by a double-digit growth in volumes of cars sold.

The Suzuki promoted firm clocked a near 17 per cent jump in sales revenue for the year to Rs 781 billion. Profit, however, grew by just five per cent. An increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year impacted net profit, the company said. Maruti Suzuki, which sells every second car in the country, saw its volume grow by 13.4 per cent to 1.77 million units in FY18.

In the quarter ended March 31, the company’s sales revenue grew 14.4 per cent to Rs 206 billion. Profit surged by ten per cent for the quarter to Rs 18.8 billion. Vehicle sales during the quarter rose over 11 per cent to 461,773 units.

The operating profit during Q4 was Rs 23.12 billion, a growth of 24.4 per cent over the same period previous year on account of higher sales volume, cost reduction efforts, partially offset by adverse commodity prices and higher advertisement expenses, the company said.