Shares of the country's largest auto maker Maruti Suzuki have declined over 10 per cent after it registered a drop of 20% in its quarterly income.

Shares dropped to Rs 1,218 ($26; £17) as against their last closure at Rs 1,358 on Friday.

For the three months period ended June 2010, the company recorded a net profit of Rs 4.65 billion, which is below analysts' anticipations.

The major cause for the drop in net profit was an increase in royalty payments to Japan's Suzuki that possesses maximum stake in Maruti.

Market analysts stated that the surge in royalty payments would also have an effect on the company's future incomes.

Mr. Jatin Chawla, auto analyst at India Infoline stated, "Raw material costs have been easing but the effect of higher royalty payments will be there in the next few quarters."

Analysts stated that outside of the augmented defrayals to Suzuki, Maruti performed considerably in the April-June period.

Chirag Shah at Emkay Global Financial Services stated, "The sudden change in royalty charge overshadows an otherwise strong operating performance."