Car Blog-Maruti To Recover Its Loss In Operations Caused From Labor Strike

By CarKhabri Team May,02,2012

India’s largest car manufacturer, Maruti Suzuki India is all set to regain its loss that happened in March 2012 quarter. The major reason behind the loss in its operation was the labour strike that actually had a very bad impact on the sales and performance of the firm. The total vehicle sale of Maruti Suzuki India grew about 4.9% year over year in 4th quarter, as compared to 16.6% year over year decline in the first 3 quarters of fiscal year 2012. However, company’s operating profit margin dropped down to 280 basis points to 7.3% in the month of march 2012, whereas the net sales touched the 17.2 % mark during the same period.

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Maruti would be closely watched by the investors now and in next couple of quarters, Maruti will get back to its original growth momentum. This will not only help Maruti in increasing its net sales but will also help in pushing up its net profit on a year on year basis. To achieve this goal, of late the firm brought in its utility vehicle Maruti Ertiga, which clocked in 11000 bookings in merely 5 days since its launch. Besides Ertiga’s fresh success, the Maruti Swift and Swift Dzire sedan have a crazy demand going on in the market since a long time now.

Maruti India is also mulling on expanding its supply of diesel motors at its manufacturing units. The diesel motor figures will reach to 400000 units by the year of 2013. This step is being taken keeping in mind the major demand of diesel cars in the Indian car market today. However, the stock of the company fell by 2% this Monday and came to 1,370 points. But with current strategy of Maruti, the firm is planning to recover all its loss in this financial year.