Maruti Suzuki 2010-11 Q1 results, profits dip 20%

Maruti Suzuki India Limited has registered a decrease in its net profit by 11percent in fiscal year 2010-11 over the corresponding previous fiscal year.

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Maruti Suzuki India Limited registered a net profit decline of 11 percent for the first fiscal quarter of the year 2010-2011. The company’s sales increased, but the profit shrank ‘owing to higher commodity prices, increase in royalty, lower other income’. Also, the company’s income from exports to Europe fell due to weakening of the Euro
The Company registered Net Sales of Rs 80,507 million, a growth of 27 per cent compared to the same period of the previous year. However, Net Profit during the quarter was Rs 4,65 Crore, against Rs 5,83.5 crore during the same period of the last fiscal year.
The sales of the company during the first quarter was at 283,324 units, representing 25 per cent growth. This included export of 40,437 units, a 38 per cent growth over the same period of the last fiscal. The Company’s domestic sales volume grew by 23 per cent to 242,887 units. The newly launched Wagon R helped the company add to its sales.
MSIL is increasingly coming under pressure from the new entrants in the small car segment. As expected, the company will launch new products to counter the challenge. The Alto k10 will be launched in a few days’ time and the 2011 Swift may also arrive in India before 2010 end. Hopefully the profitability of the company will go up in the next quarter.

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