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Maruti swings to Rs 550 mn net profit in 2001-02

India's largest carmaker Maruti Udyog Ltd reported on Wednesday it swung to a profit of Rs 550 million ($11.3 million) in the 2001-02 financial year from a loss of Rs 2.69 billon a year earlier.

The automaker, slated for privatisation later this financial year, said revenue grew 0.82 per cent to Rs 92.953 billion in 2001-02 (April-March) from Rs 92.196 billion as vehicle sales rose 1.5 per cent to about 340,000 vehicles.

The New Delhi-based company, in which the Indian government and Japan's Suzuki Motor Corp each hold 50 per cent stakes, said in a statement the turnaround was driven by lower costs, fewer vehicle defects and greater use of locally made parts.

The government aims to privatise Maruti, which has a nearly 60 per cent slice of the domestic car market, through a two-step process, beginning with a Rs 4.0-billion rights issue later this financial year but no date has been set.

Maruti said the profit in 2001-02 was despite a 7.8 per cent rise in depreciation to Rs 3.47 billion.

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