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N. Ramakrishnan

Chennai, Nov. 6 Hyundai Motor India has posted a 10 per cent increase in net profit for 2007-08 over the previous year thanks to a Rs 380 crore surplus from the sale of its after service parts division. The division was sold to a group company, Mobis.

According to the company’s 2007-08 annual report, Hyundai Motor India, posted a profit after tax of Rs 514.11 crore.

The company’s sales in both the domestic and export markets increased in the year ended March 31, 2008 over the previous year, with exports (both in terms of units sold and turnover) recording a higher growth compared to the domestic operations.

While total expenditure increased 21 per cent on the back of higher volumes, Hyundai Motor India’s interest expenses increased more than five times in 2007-08 over the previous year – from Rs 14.05 crore to Rs 75.88 crore.

The company paid a royalty and technical assistance fees (to its parent, Hyundai Motor Company of Korea) of Rs 390.45 crore last year against Rs 370 crore paid in the year before that. It has not declared any dividend for the year.

It had an other income component of Rs 395 crore (Rs 357 crore) for the year, including Rs 207 crore as export benefits (Rs 195 crore) and a royalty income of Rs 36 crore (Rs 7 crore).

Hyundai Motor India, which last month completed a decade of commercial operations in India, has its plant at Irungatukkottai, about 40 km to the west of Chennai along the national highway to Bangalore. The company produces the Santro, i10, Getz (all hatchbacks), and Accent and Verna, both entry-level sedans.

It also produces i20, another hatchback, which it has started exporting. The car will be launched in the domestic market in December or January.

For 2007-08, Hyundai Motor India Engineering Pvt Ltd, a subsidiary company that is involved in research and development, posted a net profit of Rs 93.13 lakh on an income of Rs 16.26 crore against a net profit of Rs 23.49 lakh on an income of Rs 4.95 crore in the previous year.

The company had 187 employees on its rolls in 2007-08. A bulk of its revenues – Rs 15.78 crore – last year came from exporting its services to Hyundai Motor Company, Kia Motor Corporation and Hyundai Mobis (all Hyundai group companies).

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