| Maruti Suzuki, India's biggest car maker, on Friday beat estimates with an 80% year-on-year growth in fourth quarter net profit at Rs 1,147.5 crore on the back of strong sales of Ertiga minivan, revamped diesel models and currency gains owing to yen depreciation. Net sales rose 9.4% to Rs 12,566.6 crore. "The increase in net profit was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction, localisation efforts and the benefit of a favourable exchange rate," the company said. Operating-profit margins stood at 10.6% compared with 7.3% during the same quarter last fiscal. Maruti gained 120 basis points on operating margins owing to yen depreciation as it sources substantially from the Japanese parent. "The numbers were much beyond our expectations. Topline benefited from better product mix and price increase. Raw material costs also came down and benefits of yen depreciation were seen," said Yaresh Kothari, analyst with Angel Broking. The company said it will continue to increase localisation for the Indian operations despite the yen edge. Imports currently is 19.9%, down from 26% same period last year. Its target is to cut them to 8-10% over the next three years. Despite a 13% decline in industry sales of passenger cars, Maruti is positive about the long-term growth. "There are short-term concerns on the overall economic growth and industry slowdown. However, long term we remain positive on the industry growth. This is the best time for cars," a company executive said in an earnings call. "As per the forecast by Society of Indian Automobile Manufacturers, the industry is expected to grow at about 5-6% this fiscal as compared with a growth of 2% in the last, which is almost more than double," he said.  via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFU-HlCs4USJl8HVTKg4raZ1KDzZw&url=http://www.dnaindia.com/money/1827585/report-maruti-thumps-st-riding-ertiga-yen | |||
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