Higher dividend from Maruti Suzuki doubtful this time too

Maruti Suzuki, the largest auto maker in India, is doubtful to give higher dividend to its shareholders this time too as against its counterparts in India. The company is earning robust revenues and profits this year but poor distribution of dividend to its shareholders. It is to be mentioned that stock price of the company has trebled since the beginning of the current year. Let's see the dividend data of last year's. Maruti Suzuki paid a total dividend of Rs 101 crore that is less than 10 per cent of its net profit. On the other hand, Mahindra & Mahindra and Tata Motors use to distribute almost a third of their net profits in the form of dividends. The strategy forced Maruti Suzuki's shareholders to depend on the vicissitudes of the stock market to make money from this stock. It is also widely believed that the strategy to give lesser dividends might not change in the near future.


cars segment. Maruti Suzuki is leading the segment with two-third market share. It also controls over 50 per cent of the home market. Similarly, the company is growing leaps and bounds at the export front and its the leading suppliers of fuel-efficient cars to European markets. Around 15 per cent of its total production accounts for export only. There are two major launches are scheduled in the next few days that is Volkswagen Polo and Ford Figo.