Kuala Lampur, Feb 28 (AP): Malaysia's national auto company Proton on Monday reported its first profit in three quarters, thanks mostly to higher car sales, and set its sights on the Chinese and Indian markets.

For the fiscal third quarter ended Dec. 31, 2005, Proton Holdings Bhd. earned 86.5 million ringgit ($23.3 millions), 38 per cent lower than the 140.9 million ringgit ($38 millions) net profit in the year earlier quarter, Proton said in a statement.

Proton lost 154.3 million ringgit (US$41.5 millions) in the fiscal second quarter and 12.5 million ringgit (US$3.36 millions) in the first.

"We're hopeful of returning to the black in 2006," Proton Managing Director Syed Zainal Abidin Mohammed Tahir told reporters.

He said Proton's recent decision to source auto components globally, rather than just from local suppliers "has resulted in savings which are reflected in the current financial results."

He also said Proton is close to concluding a pact to sell its cars in China and India, two growing Asian markets where European, Japanese and South Korean automakers are already strong players.

"We're talking to several parties in China and we're in the conclusion stages," Syed Zainal. "We can't ignore the China and India markets."

Revenue in the October-December quarter rose to 2.15 billion ringgit (US$579 million) from 2.10 billion (US$566 million) in the same period a year earlier, largely because of better sales.