Maruti Suzuki Q1 net falls nearly 23 per cent to Rs424 crore

Maruti Suzuki India Ltd, the country's largest carmaker, has reported a net profit of Rs423.77 crore for the fiscal first quarter ended 30 June 2012, a 22.84 per cent decline from its net profit during the first quarter of the previous financial year.

The company had posted a net profit of Rs549.23 crore in the corresponding period of the previous financial year, Maruti Suzuki said in a release today.

The decline in profit comes against a 27.53-per cent increase in net sales to Rs10,529.24 crore during the quarter, from Rs8,256.58 crore in the year-ago period.

Maruti Suzuki sold 2,95,896 vehicles during April-June 2012-13 against 2,81,526 units sold in the same quarter of the previous financial year – an increase of 5.10 per cent.

The board of directors of Maruti Suzuki India, at its meeting on 12 June 2012, had approved a scheme of amalgamation with Suzuki Powertrain India Limited, wherein the company and Suzuki Motor Corporation, the holding company holds 30 per cent and 70 per cent of the equity share capital, respectively. The amalgamation will be effective from 1 April 2012, being the appointed date and is subject to shareholders and other necessary approvals.

Meanwhile, the company had, on 21 July 2012, declared a lock-out at its Manesar plant in Haryana following incidents of violence and arson by a section of its workers.

All other facilities of the company, including the operations in Gurgaon, continue to function normally. The impact of this event on the operations of the company for the current financial year is not ascertainable at this stage, the release quoted Shinzo Nakanishi, its managing director and chief executive, as saying.

Income form the other activities of the company, viz, facilitation of pre-owned car sales, fleet management and car financing, were not material enough in financial terms but contributed significantly in generating demand for the products of the company, Maruti Suzuki said.