Maruti reports record profits

The Board of Directors of Maruti Suzuki India Limited recently approved the financial results for the third quarter of 2009-10 (October � December 2009). The firm has claimed to have achieved net sales (net of excise) of Rs 73,338 million during the third quarter of 2009-10. This increase is equivalent to 62.5 per cent as compared to the third quarter of the previous year. The company has registered a net profit of Rs 6,875 million which is an increase of a whopping 221.9 per cent compared to the third quarter of 2009-10.

Maruti Suzuki�s domestic sales volume grew by 37.8 per cent to 218,910 units in the October � December 2009 quarter. The cars that led the sales in this period of time were the Alto and WagonR. The firm�s domestic A2 segment and A3 segment sales volume grew by 38.6 per cent and 41.7 per cent respectively as compared to the sales in October � December 2008. The firm�s exports observed a growth of over 167 per cent to 39,116 units as compared to the 14,634 units exported in October � December 2008.

The company stated that favorable conditions in the domestic market supported by the government�s stimulus package and ease of automobile finance facilities helped achieve the good sales during the quarter. Commodity prices too were favorable for a major period of the quarter. However, the last few weeks observed considerable price rise. The firm also cites the successful export figures of its A-Star as a reason for its good sales.

Along with this, the Board of Directors also confirmed the approval of the investment in capacity expansion at the firm�s Manesar plant. Maruti Suzuki has invested a sum of about Rs 1700 Crores for the expansion of the production capacity of its plant. The plant will be able to manufacture 250,000 cars on an annual basis.