Maruti Suzuki India on Saturday reported a 5 per cent increase in its net profit at Rs.598.24 crore for the second quarter of the current fiscal (July-September), thanks to its highest-ever quarterly sales that stood at over 3.13 lakh units.
The company's total income from operations during the quarter also increased by 26.98 per cent to Rs.9,147.27 crore from Rs.7,203.84 crore in the year-ago period. Its margins were under pressure during the quarter due to high commodity prices, foreign exchange fluctuations and higher royalty payment to parent Suzuki Motor Corporation, the company said.
“This quarter, we achieved the highest-ever sales and in the domestic market the volume growth was 32.93 per cent at over 2.77-lakh units,” Maruti Suzuki Managing Director and CEO Shinzo Nakanishi told journalists here. He also informed that the company's board had approved setting up of a third plant at its Manesar facility with an outlay of Rs.1,925 crore. Stating that there was good response on the company's new launches and refreshed models, he said in the second quarter of the current fiscal, the company launched the 1,000cc version of its best selling car Alto. It had also introduced factory-fitted CNG versions of Alto, Estilo, WagonR, Eeco and SX4, besides an automatic version of A-star.
India-specific plans
Referring to the Volkswagen Group buying 19.9 per cent stake in Suzuki Motor Corporation, Mr. Nakanishi said they were likely to announce India-specific plans that may include joint production and vehicle design by early next year.
“Some time end of this year or beginning of next year, they (Suzuki and Volkswagen) may announce some projects,” he added.
