Car maker Maruti Suzuki's performance for the quarter ended September 2011 has been weighed down by the recent labour strife at its unit in Gurgaon. The decline in operating margins, along with higher selling and distribution expenses and coupled with royalty payments to its Japanese parent, as a proportion of net sales in the second quarter of FY 12 compared to a year ago, did impact the company.
Its operating profit margin declined 420 basis points YoY to 6.3% in the second quarter of FY12 while its total operational income fell 14.4% to Rs 7,831.6 crore. No doubt, the company's average realisation per vehicle improved an estimated 6.4% YoY in the second quarter of FY12, but that was not good enough to compensate for higher operating costs in the quarter. Maruti's vehicle sales had also declined 19.6% YoY in Q2.