Maruti Suzuki to report decline in sales and profit in Q3

Maruti Suzuki India is expected to report a fall in its sales and profit in the December ended third quarter of the fiscal 2011-12. The reason for the fall apart from auto industry slowdown is likely to be attributed largely to the strike at its Manesar manufacturing facility where some of the high value and volume cars of the company are manufactured and assembled.

India’s largest car manufacturer Maruti Suzuki’s annual sales year ended December have declined by almost 21 percent to Rs. 7,692.6 crore in 2011 in comparison to Rs. 9494.5 crore in 2010. The profit has seen a larger dip of nearly 60 percent from Rs. 565 crore in 2010 to Rs. 228.4 crore in 2011 for the period.

With declining sales and profit, earnings before interest, tax and depreciation are also expected to follow a similar trend and are likely to fall 47 percent from Rs. 901.8 crore in 2010 to Rs. 476.3 crore in 2011.

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