Mumbai: India’s top carmaker Maruti Suzuki on Saturday reported a 93% rise in quarterly net profit, boosted by buying in India’s August to October festival season and meeting analysts’ forecasts.
Maruti, in which Japan’s Suzuki Motor Corp holds a 54.2% stake, said net profit rose to Rs5.7 billion ($122.55 million) from Rs2.96 billion a year earlier.
Net sales in the quarter rose to Rs70.5 billion from Rs48.06 billion in the same quarter a year ago.
A Reuters poll of 11 brokerages forecast net profit at Rs5.5 billion on net sales of Rs69.53 billion.
In a statement, the company said that the government’s stimulus package, buoyant semi-urban markets, low interest rates, low inflation and low oil prices boosted sales.
However, it cautioned that margins could be under pressure going forward due to rising input costs and strengthening of the yen.
Maruti sells around one in every two cars in India with models including the best-selling Alto, A-Star and Ritz hatchbacks and popular sedan Swift D’Zire.
Shares in Maruti valued at $9.3 billion, rose nearly 60% in the quarter, compared to an 18.2% rise in the main index and 46.2% gain for the sector index.