Maruti Suzuki quarterly net profit drops 17.7 percentBy IANS
Saturday, January 29, 2011
NEW DELHI - Rising cost of inputs and higher royalty paid to parent firm Suzuki hit the margins of India’s largest car maker Maruti Suzuki, which reported a 17.7 percent drop in net profit at Rs.565.2 crore for the quarter ended Dec 31.
The company had posted a net profit of Rs.687.5 crore in the like quarter of previous fiscal.
“The third quarter this year compared to the same period last year was marked by pressure on margins primarily due to adverse foreign exchange movement and higher royalty payout,” the company said in a statement.
“Increase in commodity costs during the quarter also impacted the margins,” it added.
The latest quarterly profit figures were less than the second quarter figure of Rs.598.2 crore.
Rising prices of crucial inputs like steel and rubber have forced major car makers to hike vehicle prices, which - according to the industry body, Society of Indian Automobile Manufacturers - will impact overall growth to the sector.
However, net sales stood at Rs.9,276.7 crore during the third quarter of 2010-11, a growth of 26.5 per cent over the October-December quarter of 2009.
In the quarter under review, Maruti Suzuki’s domestic sales volume grew by 36.8 percent to 299,527 units, led by its largest selling model Alto, and mid-sized compact cars Wagon R and Swift.
The company registered its highest-ever sales in the domestic market with 107,555 units in October. In the next month, domestic sales crossed the 1 lakh milestone for the second time in the quarter, at 102,503 units.