Maruti reports record profits

The Board of Directors of Maruti Suzuki India Limited recently approved the financial results for the third quarter of 2009-10 (October – December 2009). The firm has claimed to have achieved net sales (net of excise) of Rs 73,338 million during the third quarter of 2009-10. This increase is equivalent to 62.5 per cent as compared to the third quarter of the previous year. The company has registered a net profit of Rs 6,875 million which is an increase of a whopping 221.9 per cent compared to the third quarter of 2009-10.

Maruti Suzuki’s domestic sales volume grew by 37.8 per cent to 218,910 units in the October – December 2009 quarter. The cars that led the sales in this period of time were the Alto and WagonR. The firm’s domestic A2 segment and A3 segment sales volume grew by 38.6 per cent and 41.7 per cent respectively as compared to the sales in October – December 2008. The firm’s exports observed a growth of over 167 per cent to 39,116 units as compared to the 14,634 units exported in October – December 2008.

The company stated that favorable conditions in the domestic market supported by the government’s stimulus package and ease of automobile finance facilities helped achieve the good sales during the quarter. Commodity prices too were favorable for a major period of the quarter. However, the last few weeks observed considerable price rise. The firm also cites the successful export figures of its A-Star as a reason for its good sales.

Along with this, the Board of Directors also confirmed the approval of the investment in capacity expansion at the firm’s Manesar plant. Maruti Suzuki has invested a sum of about Rs 1700 Crores for the expansion of the production capacity of its plant. The plant will be able to manufacture 250,000 cars on an annual basis.