Mumbai: Shares of Maruti Suzuki India today fell by 1.35 per cent after the country's largest car-maker posted 35.46 per cent decline in net profit for the fourth quarter ended March 31.
Maruti's stock settled 1.35 per cent lower at Rs 1,956.05 on the BSE. In intra-day session, the car-maker's scrip lost 3.24 per cent to Rs 1,918.50. At the NSE, the stock ended at Rs 1,955, down 1.36 per cent from its previous close. "Maruti Suzuki's Q4 FY14 results were lower than our expectations mainly due to the operating margin pressures following compensation provided to dealers post excise duty cuts announced during the Interim Budget in February 2014," said Yaresh Kothari, Research Analyst - Automobile, Angel Broking.
In a tough market, Maruti Suzuki posted a 35.46 per cent decline in Q4 net profit at Rs 800.05 crore. For the full financial year 2013-14, however, it has registered its highest annual net profit. The company had reported a profit of Rs 1,239.62 crore in the fourth quarter of the previous financial year. Net sales in the quarter declined 9.48 per cent to Rs 11,818.13 crore from Rs 13,056.26 crore a year earlier, Maruti Suzuki India said in a statement.
Lower volumes, higher sales promotion expenses and payment of compensation to dealers due to a reduction in excise duty affected the bottom line during the quarter, the company said. Sales volumes dropped 5.48 per cent to 3,24,870 vehicles during the quarter. However, the company's consolidated net profit for the financial year ended March 31 rose 15.53 per cent to Rs 2,852.92 crore, its highest ever, compared with Rs 2,469.28 crore in 2012-13.
