India's largest passenger car company, Maruti Suzuki reported net profits of Rs 681 crores for the quarter ending Dec 31, 2013 as against Rs 670 crores in the corresponding period of last quarter.
Operating margin at the company at 12.4 per cent was better than expected and took analysts by surprise.
Total vehicles sold in the quarter ending Dec 31 was 288,151, while market share rose by 2.5 per cent.
The company has said that the board has now approved the expansion of facilities in Gujarat. The expansion would be done through a 100 per cent subsidiary of Suzuki, which would result in financial benefits to the company.
Maruti Suzuki would enter into an agreement with the subsidiary under which all production in the subsidiary would be done according to Maruti's requirements.
The markets were not impressed with the arrangement and the Maruti stock fell 7 per cent.