Maruti Suzuki's Q3 Profit Up 221.9 per cent

Maruti Suzuki India has reported the financial results for Q3, 2009-10.

The company has achieved net sales (net of excise) of INR 73,338m during Q3, 2009-10, an increase of 62.5% as compared to Q3, 2008-09.

The company's net profit during Q3, 2009-10 was INR6,875m, an increase of 221.9% compared to same quarter in previous year. Maruti opines that in the October-December 2009 quarter, conditions in domestic market supported by government's package and ease of automobile finance helped achieve good sales.

During the quarter, exports led by A-star continued to be efficient. The schemes offered by some European governments, an appreciating Euro and efforts in the non-European markets resulted in growth in exports.

The board of directors have also approved investment in capacity expansion at Manesar, including an investment of about INR 17,000m. The additional capacity will be 250,000 cars per annum and will begin commercial production by April 2012. Maruti currently has a capability to manufacturer a million units at its existing facilities at Gurgaon (0.7m) and Manesar (0.3m).

In Q3, 2009, Maruti's domestic sales volume grew by 37.8% to 218,910 units, led by Alto and WagonR. During the quarter, it launched SX4 with BSIV compliance and an automatic transmission option.

In addition, the company's volume in domestic A2 segment grew by 38.6%, while in A3 segment sales volume grew by 41.7% as compared to sales in October-December 2008. Its exports during October-December 2009 quarter grew by over 167% to 39,116 units.