June 14 Reuters Earnings by Asian companies in March declined for the first time in seven quarters, dented by slowing demand due to lockdowns in China and diminishing margins as input costs rise.

According to a Reuters analysis of Asia39;s top 1,500 large and midcap companies by marketcapitalization and those that are covered by at least three analysts, cumulative profits of these firms declined 3.2 in the March quarter yearonyear.

That was the first decline since June 2020.

The data also showed their average net margins stood at 5.86, the lowest in seven quarters.

Higher commodity prices are impacting profit margins, as companies struggle to pass on higher input costs to their consumers, said Herald van der Linde, head of equity strategy, Asia Pacific, at HSBC.

The decline in earnings came as investors ditched regional equities on concerns that firms may not be able to cope with rising interest rates and soaring inflation levels.

China39;s business activity and consumption slowed in the first quarter due to a resurgence of COVID19 cases, which also affected regional companies exporting to the Asian country.

The data showed Malaysian and South Korean companies, which derive a major portion of their revenue from China, witnessed a drop of 18.3 and 18.9 in their firstquarter earnings, respectively.

Toyota Motor reported a 33 drop in the Marchquarter operating profit, and warned that unprecedented hikes in raw material costs could slice a fifth of its fullyear…