Driven by the surging car sales, Hyundai Motor India Ltd has posted a 6.4 per cent rise in gross profit to Rs 500 crore (Rs 5 billion) on the back of a 15.4 per cent jump in turnover to Rs 4,000 crore (Rs 40 billion) during 2002-03.

The company also paid the first royalty to its parent, Hyundai Motor Company in South Korea last year, amounting to about Rs 120 crore (Rs 1.20 billion), sources told PTI in New Delhi on Thursday.

However, considering the payment of royalty and Rs 100 crore (Rs 1 billion) as taxes and assuming depreciation at the same level as the previous year, HMIL's net profit is believed to have come down substantially during 2002-03, the sources said.

The country's second-biggest carmaker is now targeting to become a billion dollar company during this fiscal.

When contacted, HMIL officials declined to comment.

For the first quarter this fiscal, net profit is expected to be over Rs 100 crore, the sources said, adding the company has been able to halve its interest costs to Rs 17-18 crore (Rs 170-180 million) from Rs 32 crore (Rs 320 million) during the last two years.

HMIL had posted a 20.6 per cent jump in volumes during the year ended March 2003 to 112,502 cars.

The flagship car Santro contributed largely to the growth with sales of 89,965 units. As against this, the domestic car sales rose by 6.4 per cent to 541,738 units during the year.

During April-June 2003, the company recorded a 27.3 per cent rise to 29,891 cars, with the Santro accounting for 23,486 units.