The country’s biggest carmaker, Maruti Suzuki India Limited (MSIL) has reported a 54.27 per cent fall in its third quarter (Oct-Dec 2008) net profit. This is for the third consecutive quarter this financial year that Maruti’s net profit has dipped, having gone down from Rs.467.04 crore in the October to December period in 2007 to Rs.213.57 in 2008. The company ascribed the decline to a change in its depreciation policy introduced in April 2008, a rise in material (input) costs and an adverse impact of currency changes in the current fiscal.
Maruti raised the prices of four of its models this week to tide over its consistenly declining fortunes. These are the Maruti A-Star, the Swift, the Swift DZire and the Maruti SX4. The price of India’s largest selling car, the Maruti Alto, is also likely to go up in the near future.
MSIL’s domestic sales in the third quarter fell by about 15 per cent. Its overseas sales, however, rose significantly. Also, December 2008 was a good month for the company in terms of overall sales, which increased with the successful launch of its premium hatchback, the Maruti A-Star and the growing sales of the SX4 and the Swift DZire.
Another positive sign for the company is a 4.6 per cent increase in its stock (Nifty) yesterday, in spite of its falling profits, and on a day when the markets fell by 1 per cent.