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| 2.5 lakh units capacity expansion approved Investment about Rs 1700 Crores |
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| The Board of Directors of Maruti Suzuki India Limited approved the financial results for the third quarter of 2009-10 (October- December 2009) here today. The company achieved net sales (net of excise) of Rs 73,338 million during the third quarter of 2009-10. This is an increase of 62.5 per cent as compared to third quarter 2008-09. Net Profit during the Q3 of 2009-10 was Rs 6,875 million, an increase of 221.9 per cent compared to the same quarter in previous year. The results of the quarter have to be seen in the context of the low base in the same quarter in fiscal 2008-09. In the October–December 2009 quarter, favourable conditions in the domestic market supported by the government's stimulus package and ease of automobile finance helped achieve good sales. Commodity prices were favorable for a major part of the last quarter but started to harden in the last few weeks. During the quarter, exports, led by the A-star, continued to be strong. The scrappage schemes offered by some European governments, an appreciating Euro and efforts in the non-European markets resulted in the growth in exports. Capacity Expansion The Board of Directors approved investment in capacity expansion at Manesar. The details of the investment are: |
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| Maruti Suzuki currently has a capability to manufacturer a million units at its existing facilities at Gurgaon (0.7 million) and Manesar (0.3 million). Overview The company remains cautiously optimistic about sale volumes in the current quarter. The margins would be under pressure due to introduction of BSIV technology in the large volume models and hardening of commodity prices. The focus on cost reduction and Kaizen in operations continues. Unit Sales In the October-December 2009 quarter, Maruti Suzuki's domestic sales volume grew by 37.8 per cent to 218,910 units, led by Alto and WagonR. During the quarter the company launched a refreshed SX4 with BSIV compliance and an automatic transmission option. During the quarter, Maruti Suzuki's volume in the domestic A2 segment grew by 38.6 per cent, while in the A3 segment the sales volume grew by 41.7 per cent as compared to sales in October–December 2008. The company's exports during the October-December 2009 quarter grew by over 167 per cent to 39,116 units. The company had exported 14,634 units in October-December 2008 period. |
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