Maruti Udyog FY06 net up 39%

 "Growth should be better than last year. Our effort will be for that," Jagdish Khattar, managing director of Maruti told analysts at the earnings call of the company after Q4 results today.

 Khattar said, the company had invested Rs 240 crore towards capital expenditure in FY06 and this fiscal it is expected to be Rs 325 crore for Maruti alone. "When we add the investments proposed for the new car plant - Maruti Suzuki Automobiles India  (MSAIL) - it would certainly increase."

Khattar said even as the new car plant is on course to be operational by the end of this year, the company is hopeful of meeting any rise in demand through higher production levels.

 Maruti sold 5,27,038 units in the domestic market in FY06 sales, the  highest since its inception.

 Talking of margins, Khattar said hardening of commodity prices "will affect" raw material prices this year, adding the company, however, was making efforts to neutralise this as much as possible, including by sourcing more steel from the local market.

 The 8% excise duty cut on small cars was good for sales. However, higher road tax in some states and hardening auto loan rates could neutralise the benefits of this, Khattar said.