Maruti Suzuki
The company was expected to post good numbers but it beat all estimates and reported a whopping 195% jump in net profit for Q2FY14 at Rs.670 crore. Blame it on low base effect because lasy Q2, production was shut for a month due to the violent labor trouble at its Manesar plant. Sequentially, net profit was up on a more realistic level of 6%. Net sales came in at Rs.10212 crore, up 2% (QoQ). In Q2, the company sold 275,586 vehicles of which exports comprised a major chunk, at 67%.
What really helped the company shore up the numbers was the forex gain and a tight lid on the raw material costs. Inclusion of company’s recent merger with engine production unit Suzuki Powertrain India also helped. Looking ahead, all hopes are pinned on the ongoing festive demand. Seasonally also, Q3 and Q4 are the best, post the harvest and prior to closing of the fiscal. The company is expected to do much better in H2. Being a rate sensitive sector, the company could see some volatility post the RBI policy. As at 30th Sept, the company had a reserves at Rs.19746 crore and cash and bank balance stood at Rs.803 crore.