Maruti Suzuki India Ltd. posted profit that missed analyst estimates as higher costs eroded gains from increased sales of its Ciaz and DZire sedans.
Net income climbed 57 percent to 11.9 billion rupees ($186 million) in the quarter ended June, the New Delhi-based unit of Suzuki Motor Corp. said Tuesday. That lagged behind the 12.7 billion-rupee median of 37 analysts’ estimates compiled by Bloomberg.
While India’s biggest automaker by volume boosted domestic deliveries in the quarter at more than double the 6.2 percent pace in industrywide sales, those gains may have been fueled by discounts on some models. Competition has intensified amid weak demand, with Hyundai Motor Co. and Honda Motor Co. introducing new models to boost sales.
Shares of Maruti fell 0.3 percent to 4,167 rupees as of 1:20 p.m. in Mumbai trading.
Net sales climbed 18 percent to 130.7 billion rupees, according to the statement. Total expenses increased 12 percent to 119.07 billion rupees, while tax expenses almost doubled to 4.78 billion rupees.