* 4 quarter net profit of 6.56 billion rupees vs 7.33 billion agreement
* Q4 revenue 82.3 billion rupees vs 83.87 billion rupees consensus
* Shares fall 1.9 percent in their advertise
* Are urban demand creates growth
* See pressure on margins from higher costs
India's Biggest carmaker Maruti Suzuki
Maruti, which sells one of two cars in India, hit by senior commodity prices, costs to adopt new emissions requirements, recent model launches and unfavorable movements in foreign exchange market. [ID: nBMA007408]
Shares in the company, which is worth 8.8 billion U.S. dollars, fell nearly 2 percent to 1,335 rupees in a Mumbai market <. BSESN> an increase of 0.3 percent.
Maruti reported net profit of 6.56 billion rupees for its fiscal fourth district ended March, compared with 2.43 billion rupees a year previous.
"Manufacturing will carry on to produce by 13-14 percent on sustained demand, but I am Maruti stock underperforming in the short to medium term because there is something new happens, and everything is included in their assessments," said Umesh Karnes psychoanalyst at BRIC Securities.
"The market is also worried about the increasing competition and how it will cope with it," he said.
The company posted physically powerful sales in rural areas, but counts on urban consumers to drive demand, "says managing director Shinzo Nakanishi as rivals roll out affordable new models.
Maruti, 54.2 percent owned by Japanese Suzuki Motor Corp <7269.t>, sold 287,422 cars in the March quarter, up 22 percent from the previous year, and said it expects sales growth to slow in the monetary year to the lower double digits - which would be in accordance with the market growth projections.
The company said operating profit fell by 200 foundation points in the fourth quarter in the third, and will remain under heaviness.
Rising competition
Maruti faces intense opposition in the compact car segment from other global automakers.
Data from the Society of Indian Automobile Manufacturers showed total industry car sales in India rose 28.4 percent in the March quarter from a year previous.
General Motors [GM.UL] if India sales rose 130 percent in the March quarter has recently revised its revenue outlook for 2010 upward based on the success of the Chevy Beat minicar, which it launch in January. [ID: nSGE63N00P]
Hyundai Motor Co <005380.ks> is Maruti nearest competitor in the household section with its popular I10 and i20 rear door. Its cars in India rose nearly 38 percent in the sector.
For the next two years, Maruti plans investment in 58 billion rupees for growth, research and development and new launches, "said CFO Ajay Seth in the conference call.
An increase in the prices of commodities like steel, copper and nickel worn margins by 70 basis points in the district from the year before, "says Seth.
Maruti shares fell 9.2 percent in the March quarter, compared with 0.4 per cent increase in the main directory.
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