Maruti Suzuki India Ltd on Wednesday reported a 42.7% surge in its fourth-quarter profit, beating estimates as the country’s biggest carmaker benefited from strong demand for passenger cars.

The company, which has an over-40% market share in the passenger vehicles segment, posted a profit of 26.24 billion rupees ($321.2 million) for the quarter ended March 31, compared to 18.39 billion rupees a year ago.

Maruti also said its board approved creation of additional capacity of up to one million vehicles per year, adding that the existing capacity of 1.3 million units is fully utilised.

Analysts, on average, were expecting the company to report a profit of 25.70 billion rupees, as per Refinitiv IBES data.

Maruti’s results, the first among its peers, are being seen as a key indicator of private consumption in India, as the auto sector carries more than 50% weightage in calculating the country’s economic growth.

Earnings before interest, taxes, depreciation and amortization, or EBITDA margin stood at 10.45%, expanding from 9.75% last quarter and 9.1% a year ago, helped by easing commodity prices and improved price realisation, or the money it received for every car sold.

Net sales for the quarter stood at 308.22 billion rupees, rising 20.8% from a year ago.