Maruti sold 4,000 cars a day in Q4, profit falls 12%
The reason for the impact on its profits during the quarter was the loss over 10,000 units due to reservation agitation, increased advertising expenses and lower other income
India's largest carmaker Maruti Suzuki has reported a 11.7% drop in its net profit for the fourth quarter ended March 31, 2016. The company said that its net profit for the given quarter stood at Rs 1,133.6 crore as against Rs 1,284.2 crore in the same quarter of last year.
It said that the main reason for this fall in profit is the reservation row by the Jat community in Gurgaon. The company's main plant is located in Manesar, Haryana. Maruti Suzuki said, "The reason for the impact on its profits during the quarter was the loss over 10,000 units due to reservation agitation, increased advertising expenses and lower other income."
The company's net sales, however, grew by 12.5%, at Rs 14,929.5 crore.
The carmaker said that it sold 3,60,402 vehicles in the fourth quarter clocking nearly 4000 cars a day. This was higher by nearly 4% than the same period of last year.
It exported 27,009 vehicles in the same quarter.
The company's shares at 1316 hours rose by 3.57% or Rs 133.20, at Rs 3,867.50 per piece on the Bombay Stock Exchange's (BSE) Sensex. While on National Stock Exchange's (NSE) Nnifty, it rose by 3.72% or Rs 138.65, at Rs 3866.60 per piece.