Maruti Suzuki FY’12 profit dips 29% to Rs 1,635 cr

“While adverse currency movements had a significant impact during the quarter,the company was able to largely offset it through localisation and internal cost control,” Maruti said,explaining the decline in the earnings.

It said that during the quarter due to forex fluctuations,it had to compensate its vendors to the tune of Rs 280 crore. The market preference for diesel cars where Maruti’s presence is not significant enough and labour trouble at its Manesar plant during the year also contributed to the overall decline in earnings.

Going ahead,the company plans to increase local sourcing and ramp up diesel production to improve its performance during the current fiscal.

Technology tie-up with Fiat has already been inked to source diesel engines to meet the high demand from consumers for such cars,largely since diesel costs much less than petrol.

During the financial year,Maruti’s total sales were down 11 per cent but it expects sales growth of 10 to 12 per cent in the current fiscal,said managing executive officer Mayank Pareek.