Having achieved a record profit in the financial year 2014-15, Maruti Suzuki is deciding on how much incentives should be distributed to top-performing employees among 10,000. The company reported 61% net profit growth, which is a tally of Rs. 1,284 crores.
Maruti Suzuki CFO, Ajay Seth, revealed that a provision for bonuses has been made in the March quarter financial results, without going into finer details. He did mention that bonuses will be highest in the past 3-4 years.
When Maruti Suzuki’s financial performance was released, trumping analysts’ estimates by a huge margin, the stock shot up by over 3 percent, on Monday. The following day, stock price rose spiked by 5.05 percent, to Rs. 3,831. This is more than double the stock price of Maruti Suzuki in 2012.
There is no one particular reason for the company’s huge success in recent years. It is a concentrated effort in every direction possible, with the sole purpose to serve car buyers in India. Since February 2014, the company has launched few new cars, which have done amazingly in the market. These new cars have not only helped Maruti to sustain growth, but also add new segment of buyers to their brand.
One of their new cars which have been a success (and a trendsetter), is the Celerio. This car rapidly busted the sales charts, because of the market introduction of a new technology – Automated Manual Transmission. The semi-automatic shift system was / is an irresistible choice for car seekers who commute in dense cities a lot and for those who are new to driving cars. Launch of Maruti Alto K10 AMT further boosted this share.
This is after the AMT supplier, Magneti Marelli, couldn’t deliver nearly as enough units of AMT kits as were demanded, if only they did, there is no telling how far Maruti Suzuki would have pushed their profit record. Launch of new Maruti Ciaz sedan, Swift and DZire facelifts also played a major role in sending the bars up. In addition, Maruti continue expanding their dealer network.
For this fiscal, they have same plans. Launch more new cars, increase dealerships and update existing line-up of cars. New launches include Celerio diesel (all-new 800 cc engine which delivers 30 kmpl), and YBA compact SUV (XA Alpha). With this line-up, not many would be surprised if they once again better the analyst forecast same time next year.
Via – Livemint