Maruti Suzuki Q2 net down 5.4 per cent at Rs227 crore

30 Oct 2012

Maruti Suzuki Ltd, India's largest carmaker, has reported a 5.42-per cent fall in its net profit for fiscal second quarter ended 30 September 2012 at Rs227 crore against a net profit of Rs240 crore in the year-ago quarter.

The fall in net profit was due mainly to continued labour unrest at Maruti Suzuki's Manesar plant, which was shut down for a month during the July-September 2012-13 quarter.

This was Maruti Suzuki's fifth straight decline in quarterly net profit amidst continued labor problems that forced the carmaker to temporarily halt production at one of its two factories.

The violent riot at one of its plants led to a $250 million production loss to the carmaker.

Profit in the July-September quarter was hit also by higher spending to promote sales of Maruti's gasoline-fueled vehicles and lower income from other sources.

Net sales revenue during the quarter increased 8.5 per cent to Rs8,070.1 crore against Rs7,436.0 crore during the year-ago quarter.