Maruti Suzuki Q3 net falls 64 per cent to Rs205.6 crore
23 January 2012
Maruti Suzuki Ltd, the country's largest carmaker, has reported a 63.6-per cent year-on-year decline in its fiscal third quarter (October-December 2011-12) net profit to Rs205.6 crore.
The company's net sales (net of excise) also declined by 17.4 per cent to Rs7,663.6 crore during the quarter, due mainly to a depreciation of the value of the Indian rupee and production losses from a prolonged workers' strike at its plant at Manesar, in Haryana.
During the quarter, the company sold 211,803 units in the domestic market against 299,527 units in sold the comparable period of the previous year – a 29 per cent fall year-on-year. Exports during the quarter also stood lower at 27,725 units against 31,160 units in the previous year quarter.
''Sales in the quarter were impacted by sluggish market conditions caused by higher fuel prices and interest rates. Additionally, the company lost around 40,000 units in production due to industrial relations problem (strike) at Manesar,'' a company statement said.
The depreciation of the rupee also adversely impacted the company's bottom-line through higher cost of imports for both the company and its vendors, apart from increased royalty payments, Maruti Suzuki said in its release.
During the three-month period, the rupee dropped in value against the dollar by about 20 per cent.