In the third quarter of this fiscal year Maruti reported decline in profit by 18% at Rs 565.17 crore while its net sales rose by 26.49 per cent to Rs. 9,276.73 crore.

Margins were under pressure mainly on the back of higher royalty payout, increased employee costs, higher discounts and adverse foreign exchange movement. It is believed that all these factors contributed in the decline of third quarter’s net profit, said by MSIL Chief Financial Officer Ajay Seth.

One time cost done on employees payment by Maruti Suzuki India Ltd. is Rs 51 crore. MSIL has total 9032 employees. It is reported that its employees cost climbed by 75.50 per cent to Rs. 232.45 crore from Rs. 132.45 crore.

In the same way, its discount per vehicle also rose by Rs. 1000 per vehicle as compared to the previous quarter.

MSIL has tried to deal with the increase prices of commodities by adapting cost efficiency measures. But consumption of raw materials and components was higher by 27 per cent at Rs. 6, 959.03 crore against Rs. 5,491.86 crore in the year-ago period.

MSIL has reported a growth in sales by 28.16 per cent to over 3.3-lakh units from 2.58-lakh units in the year-ago period.

Last year in October, company has raised its production by 10% to over 1.1 lakh units a month taking its total annual output to 14 lakh units in 2011-2012.

Domestic sales jumped by 37% to 3 lakh units while there is fall in exports by 20.34 per cent to 31,160 units.

Due to fall in exports, revenues from exports also fall from Rs. 1,314 crore recorded last year to Rs. 839 crore.