Maruti Suzuki India Limited, country’s largest maker of automobiles has come out with its thirs quarter results for the financial year 2011-12. The October- December 2011 results for the company reflect Net Sales (net of excise) of Rs. 76,636 Million, a decline of 17.4 per cent over same period in the previous year. Net Profit during the quarter stood at Rs 2,056 Million, a fall of 63.6 per cent.
During the Quarter, the Company sold 211, 803 units in the domestic market as compared to 299, 527 units same period previous year. In exports, the Company sold 27, 725 units against 31,160 units 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.
The depreciation of the Rupee during the Quarter adversely impacted the bottom-line through higher cost of imports for the Company and its vendors and royalty.
Looking at the cumulative performance, for the first nine months, the Company registered Net Sales (net of excise) of Rs. 235, 210 Million, a decline of 10.4 per cent over same period in the previous year. Net Profit during the period stood at Rs 9.953 Million, a fall of 38.9 per cent.
During this period, the company sold 684,892 units in the domestic market as compared to 820,350 units during same period in last year. In exports, the Company sold 88, 469 units.
An onslaught of new cars in the small car segment, more diesel options for the customer and the problems at the company’s Manesar plant have been MSIL’s main undoing. Expect the numbers to improve in the next quarter with the launch of the new Swift, and DZire expected to strengthen both volumes and profits.