Driven by robust sales, the country’s largest car maker Maruti Suzuki India today reported 17.8 per cent increase in net profit at Rs 802.2 crore for the third quarter ended December 31, 2014.

The company, which had posted a net profit of Rs 681.15 crore in the same period last fiscal, said material cost reduction initiatives and favourable foreign exchange have also contributed to its bottomline.

Net sales during the quarter stood at Rs 12,263.14 crore, up 15.5 per cent against Rs 10,619.68 crore in the same period previous fiscal.

Volume sales in the quarter were up 12.4 per cent at 3,23,911 units compared to 2,88,151 units in the same period last fiscal, it added.

Domestic sales were at 2,95,202 units as against 2,68,185 units in the same period last fiscal. Exports stood at 28,709 units compared to 19,966 units in the year-ago period.

Revenue from exports were at Rs 1,224 crore during the quarter.

“Higher volumes, material cost reduction initiatives and favourable foreign exchange contributed to the bottomline during the quarter,” the company said in a statement.

Speaking to analysts, MSI Chief Financial Officer Ajay Seth said market conditions were still weak and may take some more time for demand to pick up fully.

“The (current) situation indicates that we have to support sales with incentives...The quantum of average discounts during the quarter across models was around Rs 21,000 per vehicle,” he said, adding the discounts were unlikely to be withdrawn before the second half of next fiscal.

Seth said the withdrawal of excise duty concessions and resultant price increase has impacted sales, particularly in the entry level segment.

Shares of Maruti Suzuki India closed at Rs 3,685.20 per share, up 2.12 per cent from their previous close on the BSE.

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