Maruti Faces Fall In profit By 18% For Q3

By By: Vicky.in

Published: Monday, January 31, 2011, 18:36 [IST]

The outcome of the 2010 calendar year for Maruti Suzuki is not a pleasant one during the Q3 when its net profit faced a fall by 18%. This came despite its supremacy in the Indian car market and the increased input costs, said a company report. Other factors which brought this downfall include fluctuated foreign exchange rates and unstinted royalty payment. With these hiccups, Maruti posted a decline of 17.80% in the net profit for the period mentioned. The amount accrued by way of business amidst these constraints stood at Rs565.17 crore against Rs687.53 crore achieved during the same period of the previous year. Quite interestingly the sales figure was not that much humiliating as it was up by 26.49% yielding Rs9276.73 crore against Rs7333.77 crore for the corresponding period of 2009.

Maruti attributed the fall to other factors such as increase in commodity prices during that particular quarter affecting the profit margins considerably. The sales during this quarter saw an increase by 28.16% with 3,30,687 units which was 2.58,026 units in quarter 3 of 2009. Of these, the sales in domestic market was an increase by 36.83% with 2,99,527 units against 2,18,910 units in the same period of the previous year. All these growth stints were reaped by Maruti's Alto, Swift and WagonR with the highest sale mark being reached with 1,07,555 units in domestic market during October 2010. The succeeding month saw a fall to 1,02,503 units but retained the one lakh mark for the second consecutive month in that particular quarter. Maruti had a lamenting performance in its export segment too which witnessed a fall by 20.34% with 31,160 units against 39,116 units in the corresponding quarter of 2009.

Article Published On: Monday, January 31, 2011, 18:28 [IST]

Read more on: #anjana #indian car market #maruti suzuki

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