Mumbai: India’s top car maker, Maruti Suzuki India Ltd on Friday reported a surprising 18.5% drop in quarterly net profit, missing forecast, due to higher raw material costs and inventory.
Maruti, in which Japan’s Suzuki Motor Corp holds a 54.2% stake, said net profit fell to Rs243 crore ($48.8 million) in the fiscal fourth quarter ended March from Rs298 crore reported in the same period a year earlier.
That lagged a forecast of nearly Rs400 crore in a Reuters poll of 16 brokerages.
Maruti holds about half the Indian car market with models such as the best-selling Alto and recently launched hatchbacks A-Star and sedan Swift DZire.
Shares in Maruti, valued at $4.6 billion, rose 49% in the March quarter, outperforming the main index that rose 0.6% and the sector index’s 25% gain.