* Q2 operating profit climbs 48 pct to 36.9 bln yen
* Lifts FY op profit forecast to 100 bln yen from 80 bln yen
* Shares end up 1.1 pct before results
* Deal with VW still at planning stage -CEO
* Assumes dollar at 80 yen, euro at 110 yen for H2 (Adds comments)
By Isabel Reynolds
TOKYO, Nov 2 (Reuters) - Japan's Suzuki Motor Corp booked a hefty jump in quarterly profits and raised its annual outlook, as strong sales in India offset a robust yen, but it warned of tough times ahead in developed markets.
Suzuki, best known for compact cars such as the Swift and Alto, lifted its full-year operating profit forecast by a quarter to 100 billion yen ($1.2 billion), a figure seen as conservative after the company booked 68.8 billion yen in the first half.
"We assumed very difficult conditions when we put together this plan," Senior Managing Officer Toshihiro Suzuki told a news conference on Tuesday.
He cited the end of the Japanese government's programme to scrap older cars for more fuel efficient models, unfavourable economic conditions in the United States, Japan and Europe as well as the yen, which is near 15-year highs against the dollar.
A strong yen eats into exporters' overseas earnings when they are brought back home.
For the July-September quarter, operating profit climbed 48 percent to 36.9 billion yen while net profit rose by a similar margin to 15.3 billion yen.
"The company sees its second-half earnings very conservatively, so the point is how much it can top that," said Koji Endo, managing director at Advanced Research Japan.
"But more important is how the company sees the next financial year. Without doubt, the domestic business will be very tough given the termination of the government's promotional measures, and I am not sure yet whether growth in India and China can more than offset that to deliver a profit increase."
Suzuki has held on to its dominant position in the fast-growing Indian market, losing little share despite stiffer competition from rivals such as Hyundai Motor Co, Tata Motors Ltd and Toyota Motor Corp.
Its unit, Maruti Suzuki India Ltd, on Saturday met market expectations with a 5 percent rise in third-quarter net profit.
But Maruti, which sells every second car in India, has warned of concerns over raw materials costs and currency volatility in the months ahead, while supply constraints are expected to hold back growth until more capacity becomes available more than a year from now.
Suzuki revised its exchange rate assumptions to 80 yen per dollar for the second half of the year, compared with 89 yen for the first half. It revised the assumed euro rate to 110 yen from 114 yen for the first half.
Chief Executive Osamu Suzuki said on Tuesday the company was still working on plans with Volkswagen, which holds one-fifth of the Japanese automaker, on how best to make use of their relationship.
The shares rose 1.1 percent on Tuesday before the results were announced. (Additional reporting by Chang-Ran Kim, Taiga Uranaka and Yumiko Nishitani; Editing by Edwina Gibbs)