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Maruti slowly restarts car production, profit down

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Maruti Suzuki, India's top-selling car manufacturer, has started resuming production after the company reported less profit from the fourth quarter, dragged down by weak demand, prior to the country's lock-down.

The outbreak has worsened the problem for Indian automakers who had to suspend production when the government ordered people to stay indoors at the end of March.

Maruti said his profit for the quarter of March fell 28 percent on Wednesday, and it was too uncertain to anticipate future earnings.

"It's too early to speculate this year's outlook, too many uncertainties," President R C Bhargava told reporters.

"It's too early to speculate this year's outlook, too many uncertainties," President R C Bhargava told reporters.

This month, the government has allowed some economic activity to resume in areas where COVID-19 cases, a coronavirus disease, are nil or low.

However, movement restrictions are still in place and some component manufacturers are unable to restart operations, he said.

Maruti started production again on Tuesday in its plant in northern Indian town of Manesar-one of the country's three production sites.

Bhargava said it has opened for business about a third of its dealers.

He also said that the company has planned capital expenditures for the fiscal year begun on April 1 of approximately 29 billion rupees ($384.95 million).

Maruti 's profit for the three months ended on 31 March fell to 12.92 billion rupees, compared to 17.96 billion rupees a year earlier.

The figure was almost in line with 17 analysts' expectations that Maruti would generate 12,95 billion rupees, according to the Refinitive figure.

According to Japan's Suzuki Motor Corp, operating income fell 15 percent to 181.98 billion rupees. During the quarter, domestic sales decreased by 16 percent to 360,428 vehicles.

($1 = 75.3340 Indian rupees)

Article Edited by | John Heine |

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