India's Maruti Suzuki misses quarterly profit estimates as costs outpace revenue

By Reuters News

- Maruti Suzuki MRTI.NS reported a smaller-than-expected quarterly profit on Tuesday as a jump in expenses outpaced a rise in revenue.

India's top carmaker by sales reported a profit of 24.15 billion rupees ($253.85 million) for the July to September quarter, below analysts' estimates of 31.05 billion rupees, according to data compiled by LSEG.

Indian automakers have struggled to manage rising costs of critical raw materials such as steel and copper, triggered by the Middle East war, which has prompted them to raise prices through this year.

Expenses during the quarter jumped to 506.04 billion rupees from 390.08 billion rupees a year earlier.

In September, the WagonR and Swift hatchback-maker raised prices of select models by up to 20,000 rupees, marking its third hike since May, but higher costs continued to weigh on profitability.

However, robust demand for compact cars ahead of the festive season helped lift quarterly revenue by 26% to 533.40 billion rupees.

Analysts expect sales growth to moderate in the second half of the year as automakers face a higher base of comparison from a year earlier when demand was boosted by tax cuts.



($1 = 95.1350 Indian rupees)

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