Maruti Suzuki profits likely to shrink up to 20 percent due to lock-out at Manesar
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The recent lockout at the Maruti Suzuki’s Manesar plant following a deadly violence is expected to cause about 15 to 20 percent dent in the company’s profit. It is to be mentioned here that the production at the Maruti Suzuki’s Manesar plant has been on a halt for more than 3 weeks now, and the company has decided to keep the plant shut down till the safety of the employees is restored.
The latest shut down of production has further increased the troubles for the car maker which has been struggling with shrinking profits for four consecutive quarters ending last month. With production been on halt, MSIL is not likely to match the last year crucial sales figures of 1 million units. The market watchers are expecting a single digit decline in the company’s sales in the company few months this year.
In a recent statement, a company spokesman said, "We are still assessing the total damage to property and facilities from the acts of arson."
In last one year, the company has lost more than Rs 2,500 crore in revenue by losing the production of around 83,000 units of their vehicles.
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