To pay 70 pc dividend, launch new export model in 2008-09
New Delhi, April 26
Passenger car major Maruti Udyog Ltd on Wednesday reported a 39.1 per cent jump in net profit for the quarter ended March 31, 2006, at Rs 360.9 crore, and announced a 70 per cent dividend for 2005-06. Maruti's total income increased by 8.04 per cent to Rs 3,392.2 crore (Rs 3,139.7 crore).
New export model
The company, which saw exports dip by 29 per cent last fiscal, also announced that it would launch a new export model during 2008-09.
"This model, while serving the Indian market, would be for export, mainly to Europe," the company said, adding that it will target to export 1,00,000 units of the model annually.
On new models for the domestic market, Mr Jagdish Khattar, Managing Director, Maruti Udyog, said that the company would roll out the Swift diesel, which will benefit from the excise concessions announced in the Budget for small cars. Further, the company plans to reduce the total number of vehicle platforms from 7-8 to about 4-5.
Net profit for the year ended March 31, 2006, rose by 39.3 per cent to Rs 1,189 crore against Rs 853.6 crore a year ago. Total income for 2005-06 was up 10 per cent at Rs 12,481.4 crore (Rs 11,346.5 crore). The company's board recommended a 70 per cent dividend for 2005-06 against 40 per cent last year. The outgo due to dividend payment would be about Rs 100 crore.
Maruti on Wednesday also announced that it had purchased the 30 per cent stake of parent Suzuki Motor in new car manufacturing subsidiary Maruti Suzuki Automobile India Ltd (MSAIL) for Rs 12 crore. ``The board also approved the scheme of amalgamation of Maruti and MSAIL,'' the company said.
Meanwhile, Mr Khattar added that Maruti's depreciation cost may increase in the current fiscal year because of higher investments and the merger of the car making subsidiary. A company official said that Maruti now has cash reserves of Rs 3,300 crore, the bulk of which will be used to meet the capital expenditure in the year.
Maruti's stock price closed at Rs 923.45 today, up 6.45 per cent over yesterday's closing of Rs 867.50.Related Stories:
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