Monday, April 30, 2012
By Manoj Kumawat
Maruti’s net profit declines for FY 2011-12, Q1 witnesses 17.2% rise
Maruti Suzuki India witnessed a slow year in 2011, the company reported a total of 28.55% fall in the profit in the financial year that ended on March 31, 2012. Maruti Suzuki India’s net profit stands at Rs. 1,635. 1 crore as of March 31, 2012. As mentioned earlier last year had been miserable for Maruti as far as the sales of the company is concerned. It has been the sharpest steep in the last three years. The sharp fall has been due to the recurrent labour strikes at the Maruti’s Manesar plant coupled with the delayed deliveries and increasing commodity prices. In the first quarter of the year 2012 registered 17.2% sales growth.
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On the contrary, the total profit for the previous financial year stood at Rs 2,288.7 crore. Maruti launched the new avatar of its premium hatchback Maruti Swift, but due to the untoward labour strikes at the Manesar plant, despite of roping in tremendous booking numbers, the small car sales was affected badly. This was due to the hampered production at the Maruti’s Manesar plant, which also resulted in extended waiting period for the new Maruti Swift. By the end of the financial year that ended in March 31st, 2012, the company managed to sold 11,33,659 units. However, in the last financial year which ended on March 31, 2011, Maruti sold 12,71,005, therefore the company’s sales declined by 10.8% from last year.
Maruti India recently launched Maruti Ertiga priced competitively at Rs 5.89 lakh (e-showroom Delhi) which will gun straight against Toyota Innova and Mahindra Xylo. Apart from this, the company launched the new Maruti Swift Dzire in February, the length of the sedan has been cut to fit the criteria of under four meter length and take benefits of the excise duty levied on cars under four meter. The company also silently slipped in the Maurti Swift Alpha hatchback of late. Also the company is busy developing Maruti XA Alpha SUV concept which just like Ertiga will be priced aggressively. Maruti now eyes to gain around 50% share in the Indian auto market and therefore the company has planned a slew of launches for the current year.