Mumbai: Maruti Suzuki India Ltd, the country’s top car maker, posted a worse-than-expected 37% fall in quarterly net profit on Friday, as high raw material prices and higher depreciation outweighed higher sales.
New Delhi-based Maruti said net profit fell to Rs2.96 billion ($59.2 million) in its fiscal second quarter to September from Rs4.67 billion in the same period a year earlier.
Net sales rose to Rs48.06 billion from Rs45.47 billion, it said in a statement.
That compared with a forecast of a net profit of Rs3.69 billion on net sales of Rs47.38 billion in a Reuters poll.
Maruti, 54.2% owned by Japan’s Suzuki Motor Corp, holds almost half the Indian car market, with models such as the best-selling Alto and Swift hatchbacks, and has been shifting consumers to premium models such as the DZire sedan.
High cost of raw materials such as steel have hit its margins, while firm interest rates, rising inflation and a fuel price hike have dented demand in Asia’s third-largest economy.