Maruti Suzuki Registers 64% Fall in Net Profit

The net profit of Maruti Suzuki has declined by 64% in the third quarter of this fiscal, mainly because of slowdown in sales and market conditions.

January 23, 2012: Maruti Suzuki has recorded a decline in net profit by 64% in the third quarter of this fiscal mainly due to sluggish market conditions affecting the sales. The net profit of the company in the second quarter in December, 2011 was of Rs. 206 crore as against Rs. 565 crore in the same period, a year ago.

The net sales of Rs. 7,664 crore are being registered by the company, which has declined by 17% as compared to the same period in the previous year. “Unit 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 the industrial relations problem at Manesar,” said the company, Maruti Suzuki.

Moreover, the devaluation of the rupee in the third quarter resulted in higher import costs and adversely affected the net profit earning of the Maruti Suzuki.