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Suzuki Motor Corp foresees a meagre on the back of India

Suzuki Motor Corp on Thursday announced the operating profit for the fourth quarter which is lower-than the company had anticipated. The company expects a meagre growth in 2012, the slight inclination in the growth of Suzuki Motor Corp is directly proportional to the sharp depreciation in yen’s strength. Apart from this Suzuki Motor Corp has also scaled up investment in India and other growing auto markets.

The company posted a profit of 26.85 billion yen ($338 million) at the end of the fourth quarter which ended on March 31, 2012. However, the average anticipated profit for the fourth quarter by one of the renowned research body was around 31.2 billion. However, on the contrary, the year-on-year profit saw a leap of 85 percent as last year at the same period Suzuki sales were affected drastically by the double whammy of Tsunami and earthquake. The net profit on the other hand stands at 11.28 billion yen as compared to the 2.57 billion yen in 2011; also the three month revenue saw a rise of 5 percent.

Suzuki expects an operating profit of around 120 billion yen on the back of Swift and other compact cars that the auto maker sells, however the consensus forecasts from the last quarter have assumed a growth of 140.21 billion yen. Suzuki is presuming a dollar rate of 75 yen for the fiscal year as compared to 79 yen on Thursday and 80 yen as anticipated by other auto cos from Japan.

Suzuki is likely to come out a winner this year in Japan as compared to the disastrous year in 2011, also the company is expected to do pretty well in the Indian car market which is one of the largest auto markets for the Japanese auto maker.

In April, Maruti Suzuki India registered a growth of 10 to 12 percent, which is more than the company expected. The top selling model in the month was Maruti Swift. Suzuki Motor Corp foresees a growth of 9.8 percent on global front this financial year at 2.811 million vehicles, out of which the Asia region is likely to account for 12% growth.