Maruti Suzuki Experienced 64.5% Growth in April Sales

Maruti Suzuki India Ltd (BOM:532500) is India’s biggest car maker in terms of sales. The company has seen an excellent sales growth in April 2008 compared with the same period of previous year and this is 64.5% sales growth.

However, the company projected 33.6% drop in its net profit for Q4 March 2008 compared to Q4 March 2007. Maruti Suzuki is a joint venture of Japanese car maker Suzuki and India based Maruti.

Ndtvprofit reported:

The current price of Rs 773 discounts its Q4 March 2008 annualised EPS of Rs 41.21, by a PE multiple of 18.75.

In April 2008, Maruti Suzuki sold 59,539 units in the domestic market compared with 48,652 units in April 2007. The company's exports grew 64.5% during the month compared with the year-ago period.

Maruti Suzuki is famous for its budget cars which have been very effective for the India’s price sensitive car market. The company is involved in manufacturing, purchasing and selling of automobiles and other auto parts in India. It is natural that the company is facing challenges in domestic market as some other domestic and foreign companies are trying their best to make their presence felt in India’s growing car market.