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

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.

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.

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.