Maruti Suzuki has reported a fall in its second quarter net profits, as the Indian arm of Suzuki Motor suffered at the hands of rising material costs and adverse currency changes.

Net profit for the period reached INR2,961m, a fall from the INR4,665m reported in the same period last year.

"The reduction in net profit has been mainly due to a rise in material costs, adverse impact of currency changes and a higher provision for depreciation, owing to more stringent depreciation norms adopted by the company in March 2008," a statement said.

Net sales of INR48,063m were up 6.1% year n year.

In the first half, net sales grew 13% to INR95,373m, leading to a net profit of INR7,620m, compared to INR9,661m in the same period last year.

The company's total sales during the first half stood at 382,035 units as compared to 360,994 units in the same period the previous year. This reflected a growth of 5.8%.

In the domestic market, the company sold 351,799 units in the first half, growth of 4.5%. Meanwhile, exports reached 30,236 units against 24,236 units last year, a growth of 24.8%.

"Despite the tough macro economic situation, models like Swift and DZire continue to show strong sales," a statement said of the home market. The company added that it has increased production of the Swift and Swift Dzire to meet higher customer demand. The company is also laying special focus on growing customer segments, including corporates, rural households and government employees.