Maruti Suzuki Q2 earnings hit by factory riot, falls 5%

New Delhi: Maruti Suzuki India Ltd missed estimates with a 5.41 percent decline in net profit for the quarter to end-September, its fifth consecutive quarterly decline, after a deadly riot at one of its plants led to a $250 million production loss.

Maruti, controlled by Japan’s Suzuki Motor Corp., said net profit fell to Rs 227 crore in the second quarter of the fiscal year that began in April, from Rs 240 crore a year earlier.

The company’s Q2 net profit dipped 5.41 percent at Rs 240.45 crore. The net sales was up 8.53 percent at Rs 8,070.11 crore.[caption id=“attachment_508243” align=“alignleft” width=“380”] The Maruti plant at Manesar. Naresh Sharma/Firstpost[/caption]

Analysts on an average had expected profit of Rs 215 crore on sales of Rs 8,050 crore for the quarter.

Total income rose by 8 percent year-on-year to Rs 8,305.4 crore in the period of three months ended September 2012.

Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 15 percent YoY to Rs 508.5 crore, which quite higher than expectations of Rs 440 crore.

EBITDA was flat at 6.3 percent, significantly strong compared to 5.4 percent expected by analysts.

At 15:11 hours IST, the share rallied 3.26 percent to Rs 1,408.05 on the Bombay Stock Exchange.

The firm’s share today closed at Rs 1,394.55, a 2.27 percent rise than its previous close at the Bombay Stock Exchange.

Agencies