Maruti Suzuki skids 6% on disappointing Q2 nos

Maruti Suzuki has plunged 6% to Rs 1,059 after reporting 59% year-on-year (y-o-y) drop in net profit to Rs 240 crore for the quarter ended September 2011, which was impacted due to the labour strike and adverse foreign exchange movement. The company had posted net profit of Rs 598 crore in the corresponding quarter of previous fiscal. Net sales declined 16% to Rs 7,537 crore on y-o-y basis in the recently concluded quarter.

The strike led to overall volumes to decline by 20% y-o-y and 10% q-o-q to 2.52-lakh units, thereby affecting topline numbers. The company lost 28,539 units in the second quarter due to the strike.

Meanwhile, the board of directors of the company approved purchase of land in the state of Gujarat for future expansion of manufacturing facilities, a company said in a filing to the stock exchanges.

A combined 100,000 shares have changed hands on the counter in opening deals.