Maruti Q1 profits fall 23% on adverse currency movements

New Delhi - Maruti Suzuki’s net profit for the first quarter ending June, 2012 has dipped 23 per cent to Rs 423.8 crore.

According to the company, adverse currency movements, notably the yen-rupee exchange rate, impacted the profits negatively.

However, net sales in the period were up 27 per cent to Rs 10,529 crore.

“The growth in net sales was on account of higher total volumes, favourable product mix and enhanced exports realisations. Market demand continued to be skewed in favour of diesel cars while petrol cars suffered a sharp de-growth during the quarter,” the company said in a statement.

Domestic sales in the period were up 5 per cent to 2.63 lakh units, while exports rose 6 per cent to 32,632 units.

Outlook

According to analysts, Maruti Suzuki is expected to take a significant hit in its second quarter results (ending September), on the closure of its Manesar facility.

Expected to continue for a month, the company may lose about Rs 2,700 crore of revenue on the production halt.

The plant, which makes about 2,000 cars a day of popular models such as the Swift and Dzire, has already been closed for the last 10 days.

Late evening violence on Wednesday (July 19) at the factory left 96 company officials injured and a senior official dead. This had prompted the company to declare a lockout at the facility on July 21.