Maruti Suzuki India's quarterly profit falls short as promotions rise

The results come as the auto industry faces tighter credit, higher insurance costs and a pile-up of inventory.
By : Reuters
| Updated on: 28 Jan 2020, 02:10 PM
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.

Maruti Suzuki India Ltd reported lower-than-expected third-quarter profit on Tuesday as the country's biggest carmaker spent more on promotions during a wider industry slowdown.

Net profit rose to 15.65 billion rupees ($220.21 million) for the three months ended Dec. 31, compared with 14.89 billion rupees a year earlier.

Analysts on average had expected a profit of 16.47 billion rupees, according to Refinitiv data.

The results come as the auto industry faces tighter credit, higher insurance costs and a pile-up of inventory.

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Some carmakers have halted production to adjust inventory levels, leading to massive layoffs of workers at automakers, parts makers and car dealers.

Shares of the Mumbai-based company fell as much as 1.5% in afternoon trade, compared with the broader Mumbai market which was flat.

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Maruti sold 437,361 vehicles during the December quarter, up 2% from a year earlier.

Revenue from operations rose more than 5% to 207.07 billion rupees, said the company which is majority-owned by Japan's Suzuki Motor Corp.

First Published Date: 28 Jan 2020, 02:10 PM IST
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