Business & Finance

India's Maruti quarterly profit slumps 64 percent

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Maruti, majority-owned by Japan's Suzuki Motor Corp, said net profit fell to 2.05 billion rupees ($40 million) in the three months to December, from 5.65 billion rupees a year earlier.

The result from the New Delhi-based company, which is battling rising competition from South Korea's Hyundai and other rivals, missed analyst forecasts of a 2.5 billion rupee profit.

Total sales fell 28 percent to 239,528 cars in the quarter, from a year earlier, the company said.

"Production of cars was impacted by a labour unrest, which has since been resolved. Sales were also sluggish due to higher fuel prices and interest rates," the company said in a statement to the Bombay Stock Exchange on Monday.

Maruti spent much of 2011 battling a series of crippling labour disputes at its plants in the northern Indian state of Haryana, where workers were demanding that management recognise a new labour union.

Copyright AFP (Agence France-Presse), 2012