Mumbai: Automobile major Maruti Suzuki on Friday reported a rise of 10 percent in net profit for the fourth quarter of 2017-18. The automobile major’s Q4 net profit increased to Rs 1,882.1 crore from Rs 1,710.5 crore in the corresponding period of the previous financial year.
According to the firm, “increase in effective tax rate impacted net profit”.
Maruti Suzuki India’s Chairman R.C. Bhargava told a press briefing here that a higher effective tax rate, along with adverse commodity prices and a hike in employee cost has hit the company’s net profit in Q4.
Besides, the company reported that its net sales during the quarter under review increased by 14.4 percent to Rs 20,594.3 crore, from Rs 20,423 crore earned in the corresponding quarter of 2016-17. The automobile major sold a total of 461,773 vehicles during the quarter, a growth of 11.4 percent over the same period of the previous year.
On a financial year basis, the firm reported that its net profit for the year ended March 31, 2018, rose by 5 percent to Rs 7,721.8 crore from Rs 7,350.2 crore for the previous year.
“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 in a statement.
The 2017-18 net sales rose by 16.7 percent to Rs 78,104.8 crore over the same period of the previous year.
“The Board of Directors recommended a dividend of Rs 80 per share of face value Rs 5, for 2017-18. The dividend in 2016-17 was Rs 75 per share of face value of Rs 5,” the statement added.