New Delhi: The violence at Maruti Suzuki’s Manesar plant stalled production on Wednesday. The plant accounts for a third of the production capacity for the largest car maker in the country.
Here are pointers that explain how important this facility is for the company:
• The Manesar facility has a capacity of 550,000 vehicles per annum. It accounts for a third of the company’s production capacity.
• The plant assembles or makes popular and profitable models like Swift, Dzire, SX4, A-Star and the newly launched Ertiga. The average realisation of sales or revenue per car at Manesar is Rs 4,00,000 against overall realisation of Rs 3,00,000.
• According to analysts, if the plant closes for more than 7 days, it could hurt the company’s net profit. In an interview to NDTV Profit, Amit Kasat, Director, Standard Chartered Securities, said that the Manesar is important for Maruti as the plant has a capacity of 550,000 vehicles per annum. It accounts for a third of the company’s production capacity.
“However, Maruti still remains our top pick. We give an ‘outperform’ rating to the stock. Invest with a target price of Rs 1615 per share,” he said.
Apart from Maruti Suzuki, Bajaj Auto, TVS and Ashok Leyland are his top bets.
• Analysts calculate that if the plant is closed for a day, it costs Maruti Suzuki Rs 73 crore in revenue and Rs 8 crore in operating profit. If it closes for two weeks, the sales loss could be Rs 1,100 crore and operating loss of Rs 121 crore.
• Maruti sold 96,597 vehicles in June 2012. The company reported a net profit of Rs 1,409 crore over net sales of Rs 36,069 crore for the year ended March 2012.
Here are pointers that explain how important this facility is for the company:
• The Manesar facility has a capacity of 550,000 vehicles per annum. It accounts for a third of the company’s production capacity.
• The plant assembles or makes popular and profitable models like Swift, Dzire, SX4, A-Star and the newly launched Ertiga. The average realisation of sales or revenue per car at Manesar is Rs 4,00,000 against overall realisation of Rs 3,00,000.
• According to analysts, if the plant closes for more than 7 days, it could hurt the company’s net profit. In an interview to NDTV Profit, Amit Kasat, Director, Standard Chartered Securities, said that the Manesar is important for Maruti as the plant has a capacity of 550,000 vehicles per annum. It accounts for a third of the company’s production capacity.
“However, Maruti still remains our top pick. We give an ‘outperform’ rating to the stock. Invest with a target price of Rs 1615 per share,” he said.
Apart from Maruti Suzuki, Bajaj Auto, TVS and Ashok Leyland are his top bets.
• Analysts calculate that if the plant is closed for a day, it costs Maruti Suzuki Rs 73 crore in revenue and Rs 8 crore in operating profit. If it closes for two weeks, the sales loss could be Rs 1,100 crore and operating loss of Rs 121 crore.
• Maruti sold 96,597 vehicles in June 2012. The company reported a net profit of Rs 1,409 crore over net sales of Rs 36,069 crore for the year ended March 2012.
