Maruti parent Suzuki posts record $814 million net profit for FY13

Suzuki Motor Corp, Japan's No 4 automaker and parent company of India's biggest automaker Maruti Suzuki India Ltd, reported a record ¥80.4 billion ($814 million) net profit for the financial year ended March 2013, a 49.2-per cent year-on-year increase, on the back of record vehicle sales.

Suzuki, which saw its global car sales increase 3.9 per cent to 2.66 million during the year ended March 2012, despite closure of its unprofitable US car sales business last year, expects the numbers to increase by 5.4 per cent to 2.80 million cars in the year ended March 2013.

Suzuki expects net profit to increase by a further 12 per cent in the year ending March 2014 as the yen weakens against local currencies in key markets such as India and Indonesia.

Suzuki's motorcycle business, however, registered an operating loss of ¥11.9 billion in the year ended March 2013. The company expects the business to return to profitability in two years, according to chief executive Osamu Suzuki.

During the fiscal ended 31 March 2013, Suzuki's Japanese domestic sales exceeded ¥1 trillion for the first time, which increased by ¥54.1 billion (5.5 per cent) to ¥1,040.9 billion compared to the previous fiscal year.

Overseas net sales increased by ¥12 billion (0.8 per cent) year-on-year to ¥1,537.4 billion.

Consolidated net sales for FY'13 increased by ¥66.1 billion (2.6 per cent) year-on-year to ¥2,578.3 billion.

Consolidated operating income increased by ¥25.3 billion (21.2 per cent) year-on-year to ¥144.6 billion, and ordinary income increased by ¥25 billion (19.2 per cent) year-on-year to ¥155.6 billion.

The group was able to more than offset the impact of declining sales and income in Europe with the yen fall and increased automobile sales in Japan and other Asian markets.

Suzuki will pay a higher dividend of 18 yen per share, up ¥3 per share from the previous fiscal.

For the next fiscal year, while the exchange environment is improving and the sales in the growing markets such as India and ASEAN are increasing, Suzuki expects increase in depreciation and research and development expenses due to increased investments to support growth.

However, the company expects net income to increase 12 per cent to ¥90 billion with operating income rising 3.8 per cent to ¥150 billion and net sales rising 8.6 per cent to ¥2.8 trillion.