Maruti Suzuki's Q3 margins to be hit by sluggish demand, higher costs

Automaker is expected to report year-on-year fall in volumes in December, adding pressure to the stock

The stock of India’s largest car maker Maruti Suzuki slipped 4 per cent on worries that sluggish demand, higher costs will impact revenue and margin performance in the December quarter. The stock has shed 26 per cent since the start of the year, as brokerages have cut their earnings estimates on multiple headwinds for the company.

An analyst at a domestic brokerage indicated there could be further pressure on the stock, given sharp slowdown in volumes and heavy discounts on models. 

Further, analysts are worried that the company’s announcement of increasing the prices of cars from January 2019, at a