Labour unrest comes back to bite Maruti Suzuki, net profits take a beating, down by 12%
AdvertisementEven as FY 2015-16 ended on a good note for Maruti Suzuki, with the auto maker registering 16% rise in sales and planning for another good year of sales, it has now reported that the net profit saw a 12% YOY fall, standing at Rs 1,130 crore for the March quarter.
For the same period last year, it had reported a net profit of Rs 1,284.
India’s largest carmaker has seen a fall in net profit for the first time in two years, possibly because of higher expenses and production loss that happened because of a civil unrest near its factory.
In net sales, it had reported a 15.27% growth in net sales, upping it to Rs 15,300 crore, in comparison to Rs 13,273 crore in the corresponding quarter last year.
The company has now declared a dividend of Rs 35 per share, with the stock jumping 3% as an instant reaction to the net profit results.
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