Maruti Suzuki Q3 net profit surges over two-fold to Rs 501.29 crore

The author has posted comments on this articleReuters | Jan 25, 2013, 02.18PM IST

NEW DELHI: Maruti Suzuki Ltd, India's biggest carmaker by sales volume, said its third quarter profit more than doubled, its first increase in 18 months after a torrid period marked by a strike, plant shutdowns and a demand slowdown.

The small car champion, which two years ago produced every other new car sold in India, outperformed a miserable market during the quarter to end-December, bouncing back after a deadly factory riot in July led to a $250 million production loss.

Maruti, controlled by Japan's Suzuki Motor Corp, said profit for the Oct-Dec quarter was 5.01 billion rupees, up from 2.05 billion rupees in the same quarter of 2011. Sales rose 46 per cent to 109.57 billion rupees.

Analysts had expected profit of 5.24 billion rupees, according to Thomson Reuters I/B/E/S.

At 2:36 p.m., shares in the automaker were up 3.5 per cent at 1593 rupees, outperforming a Mumbai market that was up 0.80 per cent.

Maruti sold 27 per cent more cars in the quarter, helped in part by strong sales of a cheaper and more fuel-efficient version of its Alto, the world's best-selling small car, during India's October-November festival season when people typically make big purchases.

The growth in profit was primarily due to higher sales and a positive consumer response to new car models like utility vehicle Ertiga and Swift DZire low-cost sedan, Maruti said in a statement, adding that cost cuts also boosted profit.

Car sales in India so far this fiscal year are down on the previous twelve months and are on track to post their lowest growth in nine years, according to the Society of Indian Automakers (SIAM), an industry lobby group.

High interest rates, rising fuel prices and slowing economic growth is hurting India's car market, once the toast of the global industry, tempting a slew of carmakers to invest billions of dollars setting up plants.

Analysts expect Maruti to cut its capital expenditure by about 12 per cent in the next 12 months, which would be the second biggest cut among 40 top Asian automobile firms, according to Thomson Reuters Starmine's SmartEstimates.

SmartEstimates accords greater weight to recent forecasts from historically more accurate analysts.

Anda sedang membaca artikel tentang

Maruti Suzuki Q3 net profit surges over two-fold to Rs 501.29 crore

Dengan url

http://makanansehatanak.blogspot.com/2013/01/maruti-suzuki-q3-net-profit-surges-over.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Maruti Suzuki Q3 net profit surges over two-fold to Rs 501.29 crore

namun jangan lupa untuk meletakkan link

Maruti Suzuki Q3 net profit surges over two-fold to Rs 501.29 crore

sebagai sumbernya