New Delhi Maruti Udyog Ltd on Wednesday reported a 39.1 per cent increase in net profit for the quarter ended March 31, 2006 at Rs 360.9 crore and announced a 70 per cent dividend. Total income for the company in the period grew by 8.04 per cent at Rs 3,392 crore.
Maruti also announced that a new export model would be launched 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 this model annually.
For the fiscal year ended March 31, 2006, Maruti's net profit was up 39.2 per cent at Rs 1,189 crore while total income moved up by 10 per cent to Rs 12,481.4 crore (net of excise).
"Growth should be better than last year. Our effort will be for that," Maruti Managing Director Jagdish Khattar said after announcing fourth quarter results.
"This fiscal, it is expected to be Rs 325 crore for Maruti alone. When we add the investments proposed for the new car plant - Maruti Suzuki Automobiles India Ltd (MSAIL) - it would certainly increase," the company said.
The company sold 5,27,038 units in the domestic market in 2005-06 sales, its highest since inception. On margins, he said hardening of commodity prices "will affect" raw material prices this year. However, he said the company was making efforts to neutralise this as much as possible, including by sourcing more steel from the local market.
The company said the eight per cent excise duty cut on small cars was good for sales. However, higher road tax in some states and hardening auto loan rates could neutralise the benefits of this.