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 Motherson Sumi Wiring India Ltd reported a lower-than-expected quarterly profit on Tuesday as a rise in operating costs and other expenses ate into margins.

The company, in which Japan's Sumitomo Wiring Systems holds a 25% stake, makes wiring harnesses and other electrical wires that are used in various cars and automotives, as well as in other industrial applications.

Motherson Sumi's profit fell to 1.06 billion rupees ($12.81 million) for the third quarter Dec. 31, from 1.52 billion rupees, a year earlier. Analysts on average had expected a profit of 1.26 billion rupees, according to IBES data from Refinitiv.

It incurred higher operating costs from a lower utilisation of newly added capacities. Cost of materials consumed also rose about 21% to 11.19 billion rupees.

Motherson Sumi also said higher wages and the strengthening of Japanese Yen squeezed its bottomline during the quarter.

Total revenue from operations increased about 15% to 16.87 billion rupees but could not make up for rise in costs.

The company, which in recent months added new three plants, now expects capacity utilization at its Bengaluru and Chennai facilities to be at optimum levels in the next quarter on the back of improving demand from carmakers.

"We are optimistic that in upcoming months with the stable/ growing business environment, added capacities will have a higher utilisation," Chairman Vivek Chaand Sehgal said in a statement.

($1 = 82.7330 Indian rupees)