The country’s top five auto companies, including Maruti Suzuki, Bajaj Auto and Hero MotoCorp, are sitting on a large cash reserve of Rs 46,000 crore, thanks to increasing profitability. The five companies have improved their cash and cash reserves (including current investments) by 23 per cent in the first six months of 2016-17, taking the reserves in most of them to a new high. Maruti Suzuki, the country’s largest carmaker, has a cash reserve and investment of Rs 23,800 crore as of September 30, Rs 4,600 crore more than it had on March 31, 2016, making it an increase of 24 per cent.
A company spokesperson said the increase was due to the cash profit earned during first half (H1) and gains on account of a fair valuation of investments under the new accounting norms that kicked in from April 1, 2016. Maruti’s net profit in H1 of FY17 jumped more than 43 per cent to a record Rs 3,884 crore.
Leave a Reply