Minority shareholders to vote for Gujarat plant: Maruti

Maruti Suzuki’s second quarter numbers beat the street for the third time in a row. Besides the numbers there was more to cheer – the company has now decided to rework its royalty payment to Suzuki Corporation. The company has also decided on a new date seeking the minority shareholders nod for the Gujarat plant.RC Bhargava Chairman, Maruti Suzuki said: “We have decided today in the board meeting that the voting for the minority shareholders will commence on November 16 and will end on December 15 with results coming out on December 17.”Maruti Suzuki 's July-September quarter matched analysts' expectations on bottomline and topline front while operational performance was ahead of estimates. Country's largest car maker's profit shot up 42 percent year-on-year to Rs 1,225.6 crore, driven by strong revenue and operational growth. Profit growth was limited due to lower other income and sharp rise in tax cost.On the royalty front he said according to the new agreements signed with Suzuki, the royalty will still be 5 percent but it will be paid on the rupee value of the car. Therefore it will be in rupee terms and that means the exchange rate risk will be borne by Suzuki. That is the big difference. Moreover, with the R&D work in India now started and the centre to be completed soon, the proportionate value of the work done in India will be used to reduce the royalty, he added.