Buoyed by Maruti Suzuki's increasing sales, Jay Bharat Maruti Ltd's (JBML), the auto-components manufacturer, more than doubled its net profit for the quarter ended March 31, 2010. Maruti Suzuki is the single largest customer for JBML.
For the quarter under review, the company announced on Monday a net profit of Rs 7.85 crore against Rs 3.09 crore in the corresponding previous quarter.
The company's net sales for the quarter also showed an increase. Net sales for the quarter under review stood at Rs 236.36 crore, an increase of about 31 per cent over Rs 180.66 crore in the corresponding quarter last year.
“We are focussed on cost optimisation which has shown in our financial results. The increase in profit was also helped by an increase in Maruti's sales volumes as 99 per cent of products are sold to Maruti,” said Mr Nishant Arya, JBM Group's Executive Director.
The company's annual net profit for the financial year ended March 2010 also doubled.
Net profit for the year stood at Rs 21 crore against Rs 10 crore in the previous fiscal. Net sales for the year under review stood at Rs 803 crore a growth of 16 per cent over Rs 692 crore in the last fiscal.
“We are expecting a good year ahead and expect a 10-15 per cent growth in revenues for the 2010-11 fiscal,” said Mr Arya.
JBML is also looking to increase its production capacity in light of the increasing demand for the Maruti Eeco and the Ritz. The company has currently three manufacturing facilities in Gurgaon and Manesar.
At close of trade on Monday on the BSE, JBML's share price stood at Rs 82.05, up 1.7 per cent over the previous close.
