Thursday, November 10, 2011
By Pranjal Gera
Suzuki Motors rise by 5.3 percent regardless of India friction
An increase of 5.26 percent was registered in net revenue for six months duration that ended in September by Suzuki Motors of Japan. This upward movement is termed remarkable as it is achieved at the back drop of heavy financial and production losses in India due to workforce impasse that occurred within this time frame.
Suzuki Motor stated that the six month period that commenced from April and ended in September, in this tenure the company’s net worth grew to 32.01 billion yen; approximately INR 2,010 crore, as compared to last year’s 30.41 billion yen; around INR 1,910 crore.
On other hand in the net sales department the firm scaled a downfall of 6.82 percent to 1.23 trillion yen; nearly INR 76,907 crore, from 1.32 trillion yen; just about INR 82, 715 crore, the company said.
The company also accepted that the condition of Japanese economy is fast recovering from dormant phase since the natural calamity of earthquake had hit the eastern coast of Japan. But the following floods in Thailand had made the circumstances more miserable, it added.
The collapse in India sales has also played a vital role in the declined net sales of the Japan based firm. The Asia sales figure has gone down by 36.1 billion yen to 427.6 billion yen on a year on year analysis and the credit goes to the decreased sales volumes of Maruti Suzuki India.
Maruti Suzuki in India noticed a 59.81 percent fall in the net revenue at INR 240.44 crore for the quarter that ended in September. The workers strike at Manesar plant and foreign exchange loss is found responsible for the same.
Earlier, Maruti Suzuki had signaled to shift its plants in Gujarat state following the losses that it had incurred during the impasse; which were referred to as rumors by Haryana chief minister by saying that the present and future of company lies in his state and the move to other state was a part of firm’s expansion strategy in India.