The Japanese OEM reports a decline in operating income by 13.3 percent due to depreciation of currencies of emerging countries including the Indian Rupee and increase in various expenses.
13 May 2019 | 4506 Views | By Autocar Professional Bureau
In its financial result for FY2019 (April 2018 to March 2019), Suzuki has announced that its sales increased by 114.3 billion yen (Rs 7,310 crore)(3%) to 3,871.5 billion yen (Rs 247,655 crore) as compared to FY2018. It mentioned a YoY decrease in income by 13.3 percent to 324.4 billion yen ...
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In its financial result for FY2019 (April 2018 to March 2019), Suzuki has announced that its sales increased by 114.3 billion yen (Rs 7,310 crore)(3%) to 3,871.5 billion yen (Rs 247,655 crore) as compared to FY2018. It mentioned a YoY decrease in income by 13.3 percent to 324.4 billion yen (Rs 20,756 crore) on account of depreciation of currencies of emerging countries including the Indian Rupee and increase in various expenses.
According to the financial report, the ordinary income (regular day to day business operations, excluding any income earned from the sale of capital assets) decreased by ¥3.3 billion (Rs 211 crore) (0.9%) to ¥379.5 billion (Rs 24,282 crore) year-on-year. Decrease in ordinary income was kept at this level partly owing to the increase in interest income and improvement in equity in earnings/losses of affiliates. Net income attributable to owners of the parent decreased by ¥36.9 billion (Rs 2,361 crore) (17.1%) to ¥178.8 billion (Rs 11,439 crore) year-on-year mainly owing to accounting extraordinary loss of ¥81.3 billion (Rs 5,201 crore) for conducting recall campaign in Japan.
In the automobile business, Suzuki’s overseas automobile net sales decreased year-on-year mainly owing to the impact of depreciation of currencies of emerging countries. However, net sales of the automobile business increased by ¥96.7 billion (Rs 6,186 crore) (2.8%) to ¥3,532.5 billion (Rs 225,989 crore) year-on-year by covering the decrease in the overseas automobile net sales with the increase in the Japanese domestic automobile net sales, which increased year-on-year mainly owing to the sales contribution of Spacia and XBEE. Operating income decreased by ¥51.3 billion (Rs 3,282 crore) (14.4%) to ¥303.8 billion (Rs 19,438 crore) year-on-year mainly owing to the impact of increase in various expenses, in addition to depreciation of currencies of emerging countries.
In the two wheeler business, Suzuki claims that its net sales increased by ¥8.7 billion (Rs 556 crore) (3.5%) to ¥255.1 billion (Rs 16,323 crore) year-on-year mainly owing to the increase in sales in India, Indonesia, and the Philippines. Operating income decreased by ¥1.0 billion (Rs 63 crore) (21.2%) to ¥3.6 billion (Rs 230 crore) year-on-year mainly owing to the decrease in sales of large displacement models in Europe.
With respect to the operating results by geographical region, Japan decreased by ¥10.3 billion (Rs 659 crore) (6.4%) to ¥150.8 billion (Rs 9,648 crore) year-on-year. In overseas, although Europe and other areas increased, Asia decreased by ¥47.1 billion (Rs 3,013 crore) (24.6%) to ¥144.2 billion (Rs 9,225 crore) year-on-year.
The Company continuously prospects increase in automobile sales centred in India, but on the other hand, there are prospects including the appreciation of the Yen and the increase in R&D expenses. Consequently, the Company prospects the net sales and the operating income to be flat on the year.