Maruti Suzuki India Posts Lower-Than-Expected Quarterly Profit on Rising Material Costs
Indian carmaker Maruti Suzuki India Ltd. has reported a drop in its latest quarterly profit, falling short of analyst expectations due to escalating raw material prices.
Net income for the quarter ending December 31, 2023, rose by 13% to 35.3 billion rupees ($408 million), compared to 31.2 billion rupees in the same period last year. However, this figure missed Bloomberg's analyst consensus estimate of 36.04 billion rupees.
Revenue climbed by 16% to 384.9 billion rupees, closely aligning with analyst estimates. However, total costs surged by 16% to 348.8 billion rupees as raw material costs increased by 17%.
Maruti Suzuki's shares in Mumbai erased most of their daily gains following the earnings announcement.