BENGALURU: Maruti Suzuki India Ltd reported a 9.7% drop in fourth-quarter profit on Tuesday, as weak demand for vehicles during the Covid-19 pandemic and higher commodity costs hurt India’s largest carmaker.
After a steep fall in car sales last year when the pandemic first hit, Maruti’s sales picked up in India over the past two quarters as people opted out of public transport and poured their lockdown-savings into big-ticket items such as cars.
Still, as the carmaker dealt with rising costs of steel and copper that threatened margins, it passed on some of those costs to customers. Maruti, which sells every second car in India, has already bumped up the prices of its cars twice this year.
For the quarter ended March 31, Maruti’s net profit fell to Rs 1,166 crore ($156.19 million) from Rs 1,292 crore a year earlier, according to a regulatory filing.
This missed analysts’ estimates of Rs 1,739 crore, according to Refinitiv IBES data.
Revenue rose 32% to Rs 24,024 crore and the carmaker recommended a dividend of Rs 45 per share.