Maruti Suzuki India (MSIL), the country's leading car maker, has reported a 54.27 per cent decline in its net profit at Rs 213.57 crore for the third quarter ended December 31, 2008, on the back of reduced prices of its vehicles resulting from relaxed excise duty rates.
The company has posted a net profit of Rs 213.57 crore in the third quarter of the current fiscal, as compared to Rs 467.04 crore posted in the corresponding quarter last year.
“This (reduced rates of excise duty) has resulted in a reduction in net sales and profit before tax during the quarter and nine months ended December 31, 2008,” according to a statement issued by the company to the Bombay Stock Exchange.
The company had created a provision of Rs 55 crore for vehicles purchased by the dealers at old prices which included higher rate of excise duty and remaining unsold with them as on December 06, 2008, as per the statement.
The company's total income decreased to Rs 4,803.50 crore for the quarter under review as against Rs 4844.80 crore.
Net sales of the company have declined by Rs 49 crore at Rs 4,625 crore posted in the quarter.
During the nine month ended December 2008, the company's net profit declined to Rs 975.54 crore, as compared to Rs 1,433.14 crore in the corresponding period last fiscal.
Total income of the nine-month ended December 2008 rose to Rs 14,915.52 crore, whereas it was Rs 13,753.81 crore in the year-ago period.
Maruti Suzuki currently holds alomost a half of the Indian car market. Japan’s Suzuki Motor Corporation owns a 54.2 per cent stake in the company.
The company’s shares are currently trading at Rs 520.50, up 4 per cent on the BSE.
