Maruti Suzuki India, on Monday, posted an increase of 194.7 per cent in net profit at Rs. 670.20 crore for the second quarter ended September 30, mainly on account of cost reduction initiatives, higher localisation and forex gains.

The country’s largest car maker also benefited from “unusually low levels of profit” in the second quarter of last year (July-September 2012) owing to labour problems at Manesar.

Maruti Suzuki India (MSI) had posted a net profit of Rs. 227.45 crore in the second quarter of last fiscal.

Focussed sales

“This growth was achieved on the back of focussed sales efforts, especially in the rural areas, proper product planning, cost reduction initiatives and gain from rupee depreciation,” MSI Managing Director and CEO Kenichi Ayukawa said.

The company said higher localisation and cost reduction initiatives also contributed significantly to bottomline growth during the quarter under review.

The overall impact of foreign exchange was also positive during the quarter, it added.

The company's net sales stood at Rs. 10,211 crore against Rs. 8,070 crore in the year-ago period. In terms of volumes, sales were up by 19.6 per cent at 2,75,586 vehicles. Of this, exports were 34,024 units, up 66.6 per cent.

During the quarter, the car maker’s new diesel engine facility at Gurgaon and the third assembly facility at Manesar went on stream. With this, the company’s total capacity for vehicle assembly is 1.5 million vehicles per annum.

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