Maruti Q3 net more than doubles to Rs688 crore; to raise capacity by 2.5 lakh units

Maruti Suzuki Ltd, the country's largest carmaker, today reported a 221 per cent year-on-year increase in its net profit for fiscal third quarter (October-December 2009-10), to Rs687.5 crore.

The board of directors of the company also approved investment of about Rs1,700 crore to raise its annual production capacity by 2.5 lakh units.

The company achieved net sales (net of excise) of Rs7,334 crore during the third quarter of 2009-10, an increase of 62.5 per cent compared with the third quarter of 2008-09.

"In the October-December 2009 quarter, favourable conditions in the domestic market supported by the government's stimulus package and ease of automobile finance helped achieve good sales," a Maruti Suzuki release said, adding, "Commodity prices were favorable for a major part of the last quarter but started to harden in the last few weeks."

Maruti Suzuki's revenues were also boosted by strong export sales of the A-star.

The board of Maruti Suzuki has approved investment of about s1,700 crore in capacity expansion at Manesar. This will create additional capacity of 250,000 cars per annum.