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By Bloomberg

Maruti Suzuki India Ltd. posted profit that beat analyst estimates as the introduction of a new mid-size sedan boosted sales while a weaker yen made imports of parts cheaper. The shares gained.

Net income climbed to 12.8 billion rupees ($201 million) in the quarter ended March, the New Delhi-based unit of Suzuki Motor Corp. said in a statement today. That exceeded the 10.7 billion-rupee median of 28 analysts’ estimates compiled by Bloomberg.

India’s biggest automaker introduced a new model last year and refurbished its DZire compact sedan, which boosted sales in the quarter. Maruti also benefited as the yen fell about 1.2 percent against the rupee in the period, reducing the cost of components from Japan.

“Maruti has been performing well with new launches, better products,” Daljeet Kohli, head of research at IndiaNivesh Securities Pvt. in Mumbai, said before the earnings announcement. “We do see a slowdown in rural demand but expect the natural hedge of growing urban demand to offset any declines in rural sales.”

Shares of Maruti gained 3.3 percent to 3,648.95 rupees as of 2:25 p.m., headed for the biggest gain since Dec. 18. The benchmark S&P BSE Sensex fell 0.9 percent.

Net sales rose to 132.7 billion rupees from 118.2 billion rupees a year earlier, according to the statement.

The board recommended a dividend of 25 rupees a share, compared with 12 rupees for the year earlier period, according to the statement.