Maruti Suzuki posts quarterly profit fall

Maruti Suzuki posted a lower first-quarter profit on Friday as India’s top carmaker by sales was hurt by higher raw material costs.

The Swift manufacturer reported a profit of 33.52 billion rupees ($351.44 million) for the quarter ended June 30 compared to 37.12 billion rupees a year before.

Vehicle sales in India have recovered since New Delhi’s tax cuts last September, but the carmaker was unable to fully shield itself from rising raw material costs.

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Although the carmaker raised prices during the quarter, higher steel and commodity prices, exacerbated by disruptions linked to the Iran war, continued to pressure margins.

Revenue rose 36% to 524.56 billion rupees, while expenses increased at a faster pace of 40.5% to 499.88 billion rupees, dragged by higher input costs.