SUZUKI PROFIT FALLS ON INDIA MARKET WOES

NEW DELHI: Suzuki Motor Corp.’s net profit plunged 42% year-onyear (y-o-y) in the fiscal first half, hammered by lower vehicle sales in key markets of Japan and India and sharp fluctuations of the Japanese yen against major currencies. The parent of Maruti Suzuki India Ltd posted a net profit of 79.3 billion yen in the six months ended September 30.

During the period, Japan’s fourth-largest automaker posted a 17% y-o-y drop in volumes to about 1.4 million vehicles. This was mainly because of 4.6% and 26.5% decline in sales in Japan and India, respectively. Sales in other core markets such as Indonesia, Thailand and Pakistan also declined in double digits.

During the fiscal first half, Suzuki’s net sales fell 9% y-o-y to 1,755.4 billion yen. Operating income declined 40% to 118.6 billion yen. Suzuki did not disclose financial results for the July to September quarter in its earnings presentation uploaded on the company’s website on Tuesday.

In Japan, the company has started recalling almost 2 million vehicles after its final inspection infrastructure was found inadequate and had to be restructured, which led to loss of production.

The company cut net sales forecast by 10.3% to 3,500 billion yen. Operating income has been lowered by 39.4% to 200 billion yen. Suzuki also revised downwards its net profit guidance by 30% to 140 billion yen.