Maruti Suzuki share price slips 2% as Q4 net profit comes in below expectations

The country's largest car maker Maruti Suzuki India on Friday reported a 10 per cent rise in net profit to Rs 1,882.1 crore for the last quarter of fiscal ended on March 31, 2018. The company had posted a net profit of Rs 1,710.5 crore in the January-March period of 2016-17. 

"Increase in effective tax rate impacted net profit," Maruti Suzuki said. Tax expenses jumped about 31 per cent to Rs 752 crore in the quarter.

Net sales during the fourth quarter of 2017-18 rose to Rs 20,594.3 crore, up 14.4 per cent against the year-ago period. Total car sales were up 11.4 per cent to 4,61,773 units.

For entire 2017-18, Maruti Suzuki posted net profit of Rs 7,721.8 crore, up 5.1 per cent, from Rs 7,350.2crore in the previous fiscal.

Net sales last fiscal stood at Rs 78,104.8 crore, up 16.7 per cent from 2016-17.

Volume sales during 2017-18 were up 13.4 per cent at 17,79,574 units. Of this, exports were at 1,26,074 units. The company said its board has recommended a dividend of Rs 80 per share of face value Rs 5 for 2017-18.

Maruti Suzuki share price settled at Rs 8777.95, down 2 per cent on the BSE.