Boosted by good festive season sales and robust exports, the country's largest carmaker, Maruti Suzuki India, on Saturday reported a nearly two-fold jump in its net profit at Rs 570 crore for the second quarter of FY'10.
The company had a net profit of Rs 296.12 crore in the same period a year ago.
It is investing Rs 150 crore to hike production capacity at its Gurgaon facility by up to 90,000 units through de-bottlenecking and modernisation.
"During the quarter, we had good festival season sales and response to our new models were good. Moreover, we also saw robust exports," Maruti Suzuki India Managing Director and CEO S Nakanishi told reporters in New Delhi.
MSI's net sales grew by 46.67 per cent during the quarter ended September 30, 2009, at Rs 7,049.58 crore, against Rs 4,806.26 crore in the same period last year.
Favourable conditions like stimulus packages of the government, low interest rates, improved financing by government banks were some other factors that contributed to good sales.
The company's domestic sales grew by 21.9 per cent at 2,09,083 units led by new models such Estilo, A-Star, Ritz.
Nakanishi said exports during the period under review jumped by 109 per cent at 37,105 units as against 17,745 units in the year-ago period.
"The A-Star had good sales in Europe as we benefited from the scrappage scheme (incentives given on purchase of new cars for exchange of old cars)," he said