The after effects of large depreciation charge, rising inflation, cost of manufacturing and appreciating rupees is now reflecting. Maruti Suzuki has announced its profits down by 34% in the fourth quarter.
Maruti, that owns 54% of Japan’s Suzuki Motor Corp, reported that its net profits fell to 2.98 billion rupees ($75 million) in the fourth quarter of the fiscal year ended. It had reported profits of 4.49 billion rupees in the same quarter in the previous fiscal year.
Maruti stated that it had adopted shorter depreciation cycles for its tooling and equipment assets. It had also adopted provisions of 2.1 billion rupees for 07-08. These also resulted in lesser profits in the last quarter.
There had been a total increase of 23.4 percent in the annual income of the company and the net profit was up by 10.8% as compared to last fiscal year.
The company has recommended a 100% dividend for the financial year 2007-08 for its shareholders.
