After six consecutive quarters of decline, India’s largest car maker Maruti Suzuki India Ltd (MSIL) on Friday reported a 148% jump in net profit to R501 crore for the quarter ended December 31, 2012, beating analysts’ expectations and sending its stock up 4.2% to Rs.
1,600 on the Bombay Stock Exchange.
Strong demand for bigger models such as Swift Dzire and Ertiga and a 17% increase in exports boosted profitability.
The car maker, battered by labour unrest and customer preference for diesel cars last year, posted a revenue growth of 46% to Rs. 10,956 crore as sales grew 26% to 3,01453 units during the October-December period.
The company’s decision to source additional diesel engines from Fiat helped it partially offset the decline in marketshare when customers turned down its small petrol cars due to high fuel cost. Maruti currently holds 39% share in the passenger vehicle market.