Maruti Suzuki India, the country's largest car-maker, has posted a 35.87 per cent increase in net profit to Rs 681.15 crore for the third quarter ended December 31.
The company had posted a profit of Rs 501.29 crore in the corresponding period of the previous financial year.
Higher localisation, favourable foreign exchange and cost reduction initiatives by the company contributed significantly to net profit, it said.
Maruti Suzuki's net sales declined 3.07 per cent to Rs 10,619.68 crore from Rs 10,956.95 crore a year earlier, the carmaker said in a statement.
The volume of sales dropped 4.41 per cent to 2,88,151 vehicles during the third quarter from 3,01,453 units.
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The company's board has decided that the investment in the Gujarat facility will be made by a 100 per cent Suzuki subsidiary and not Maruti Suzuki. "The company will be named Suzuki Motor Gujarat Pvt Ltd with a starting capital of Rs 100 crore," Suzuki Motor Corporation Chairman Osamu Suzuki said.
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The company will not be listed and will be set up by April.
Maruti Suzuki shares fell 2.78 per cent to Rs 1,654 on the Bombay Stock Exchange.