The automobile industry has made a U turn, after witnessing one of the worst quarters in the quarter ended December 2009. Automobile sales, too, have improved over the year across all segments though limited by the downfall in sales of commercial vehicles and auto ancillary companies. The growth in the overall automobile sales volume by 10% to 31,06,995 vehicles in the June 2009 quarter over the June 2008 quarter was driven by undeterred rural demand, increased cash purchases, and continuous launches churned out by companies besides the proactive measures taken by the government to revive the automobile industry through stimulus packages.
The aggregate top line of82 automobile companies increased 4% to Rs 33116 crore in the June 2009 quarter over the June 2008 quarter. The operating profit margin (oPM) improved by 330 basis points (bps) to 13.2% due to effective cost reduction measures and easing of commodity prices. This, in turn, boosted operating profit (OP) by 39% to Rs 4379 crore. However, the growth in profit before tax (PBT) was restricted to 24% at Rs 3450 crore due to increase in interest cost and reduction in other income (or). 01 slipped 33% to Rs 538 crore. On the other hand, interest cost grew 48% to Rs 447 crore. Finally, net profit grew 19% to Rs 2555 crore, restricted by a 360-bp rise in effective tax rate.
Operating income of Maruti Suzuki India grew a robust 34% to Rs 6493 crore driven by healthy sales volume, especially exports. With increase in higher end models in the sales mix, easing of commodity prices and favourable forex realisation, oPM improved 50 bps, leading to oP growing 39% to Rs 793.17 crore. Net profit settled with a growth of 25% to Rs 583.54 crore. It was the company's first growth in net profit after a degrowth across straight five quarters from the March 2008 quarter. Exports surged by an impressive 135% to 29,314 vehicles in the June 2009 quarter owing to positive response to A-Star and the scrappage scheme initiated by European governments. A-Star accounted for 90% of exports in the quarter ended June 2009. Capex is Rs 2100
crore for the fiscal ended March 2010 (FY 2010). This would be utilised for establishing an R&D centre, routine capex spend, and new model launch.
Net profit of India's largest automobile company Tata Motors rose an impressive 58% to Rs 513.76 crore despite operating income falling 8% to Rs 6404.63 crore in the quarter ended June 2009 over the quarter ended June 2008. oPM spurted 420 bps to 11.2% owing to cost efficiencies, reduction of raw material prices, inventory
The aggregate top line of82 automobile companies increased 4% to Rs 33116 crore in the June 2009 quarter over the June 2008 quarter. The operating profit margin (oPM) improved by 330 basis points (bps) to 13.2% due to effective cost reduction measures and easing of commodity prices. This, in turn, boosted operating profit (OP) by 39% to Rs 4379 crore. However, the growth in profit before tax (PBT) was restricted to 24% at Rs 3450 crore due to increase in interest cost and reduction in other income (or). 01 slipped 33% to Rs 538 crore. On the other hand, interest cost grew 48% to Rs 447 crore. Finally, net profit grew 19% to Rs 2555 crore, restricted by a 360-bp rise in effective tax rate.
Operating income of Maruti Suzuki India grew a robust 34% to Rs 6493 crore driven by healthy sales volume, especially exports. With increase in higher end models in the sales mix, easing of commodity prices and favourable forex realisation, oPM improved 50 bps, leading to oP growing 39% to Rs 793.17 crore. Net profit settled with a growth of 25% to Rs 583.54 crore. It was the company's first growth in net profit after a degrowth across straight five quarters from the March 2008 quarter. Exports surged by an impressive 135% to 29,314 vehicles in the June 2009 quarter owing to positive response to A-Star and the scrappage scheme initiated by European governments. A-Star accounted for 90% of exports in the quarter ended June 2009. Capex is Rs 2100
crore for the fiscal ended March 2010 (FY 2010). This would be utilised for establishing an R&D centre, routine capex spend, and new model launch.
Net profit of India's largest automobile company Tata Motors rose an impressive 58% to Rs 513.76 crore despite operating income falling 8% to Rs 6404.63 crore in the quarter ended June 2009 over the quarter ended June 2008. oPM spurted 420 bps to 11.2% owing to cost efficiencies, reduction of raw material prices, inventory
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