Maruti Suzuki Board approves land purchase for new facility in Gujarat

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    Maruti Suzuki Board approves land purchase for new facility in Gujarat

    Oct 29, 2011
       
    The Board of Directors at India's leading car maker Maruti Suzuki India Limited (MSIL) today granted approval to purchase land in District Mehsana, Gujarat, for future expansion of manufacturing facilities. This purchase would be subject to final negotiations on price and all legal formalities being completed.

    Financial results: April-Sept (H1) 2011-12

    The Board of Directors also approved the financial results for the second quarter and H1 of 2011-12.

    During the first half of the year the Company registered Net Sales (net of excise) of Rs 1,58,574 million, a drop of 6.7 per cent over the same period last year.

    Net Profit during the first half of 2011-12 stood at Rs. 7,897 million a fall of 25.8 per cent over the same period last year.

    Q2 Financial Results

    The Company registered Net Sales (net of excise) of Rs 75,375 million during the second quarter of 2011-12, a drop of 15.7 per cent over the same period last year.

    Net Profit during the second quarter of 2011-12 stood at Rs. 2,404 million a fall of 59.8 per cent over the same period last year.

    During the Quarter (July-Sept 2011), the domestic auto industry remained sluggish on account of increase in fuel prices and hardening interest rates, leading to higher sales promotion expense. The Company's bottom line was also impacted due to adverse foreign exchange rates.

    The Company lost 28,539 units during the quarter (July-Sept 2011) due to instances of industrial unrest at its Manesar facilities.

    The Company sold a total of 2,52,307 units, a decline of 19.6 per cent over the same period last year. (Q2 2010-11, 3,13,654 units).

    Highlights of the quarter

    During the Quarter, the Company introduced its best seller Swift in an all new form. The offering was well received by the market and the Company received an overwhelming booking of over 100,000 units within a few weeks of its launch.

    During the quarter the Company's domestic sales volume in A2 segment stood at 1,52,260 units, reflecting a drop of 23.5 per cent, while in the A3 segment, sales volume dropped by 21.3 per cent to 24,680 units, compared to sales in July-September 2010.