India’s largest car manufacturer, Maruti Suzuki India, reported a decline of 37 percent in its quarterly profit owing to costly borrowing and escalating raw material prices. Net profit for the second quarter to September slid down to Rs. 2.9 billion from Rs. 4.6 billion in the same period in the last fiscal.
Maruti had expected the net profit to fall in the range of Rs. 3.7 billion to Rs. 4.10 billion. "Lack of credit availability, high interest rates and depressed consumer sentiments have affected our sales," Maruti Suzuki India Managing Director Shinzo Nakanishi said. However, he was optimistic about the economic conditions in the country. He stated that the global economic slowdown will impact India but the country will recover sooner than the other markets.
Maruti is now focussing especially on the growing customers segments like rural India, corporate sectors and government employees. It is also planning to implement cost cutting programme within the company and with its business associates.
In the domestic market, MSI's sales stood at 351,799 units during the period against 336,758 units the previous year, up by 4.5 per cent. Exports during the period stood at 30,236 units against 24,236 units in the year-ago period, up by 24.8 per cent.
Recently Viewed
Trending Searches
