Nissan Motor Co. forecast operating profit for the current fiscal year that exceeded analyst projections, as the Japanese carmaker seeks to get costs under control while expanding output, thanks to improving supplies of semiconductors for vehicles.

Operating profit will be ¥520 billion ($3.9 billion) for the period through March 2024, the Yokohama-based company said Thursday. That compares with the average estimate for ¥402.8 billion. Sales should be ¥12.4 trillion, more than the ¥11.2 trillion the market is looking for.

Nissan embarked on a cost-cutting plan three years ago and shifted its focus toward making more money from each car it sells, departing from the high-volume strategy embraced by former Chairman Carlos Ghosn. The question now is whether the auto manufacturer can expand production and profitability while rolling out new electric vehicles, especially for buyers in China and the US.

“Nissan used to sell its cars at a discount but it doesn’t have to discount anymore,” said Seiji Sugiura, an analyst at Tokai Tokyo Research Institute Co. “They’re actually raising their prices tremendously, so that’s more beneficial.”

For the fiscal year that ended in March, operating profit was ¥377 billion on sales of ¥10.6 trillion, in line with the company’s guidance issued last month, as well as analyst estimates.

For the current fiscal year, Nissan is looking to produce 4 million units, in line with its existing sales target. That still falls short of the company’s goal of reaching 80% of its production capacity of 5.4 million units.

The automaker also fell shy of its target of reaching a 5% operating margin for the just-ended fiscal year. Chief Executive Officer Makoto Uchida is planning to announce a new mid-term growth plan later this year.