Toyota Motor Corp. said Thursday it expects to return to a net profit during the current business year on the back of aggressive cost-cutting efforts and brisk demand for hybrids even as it faces massive recalls worldwide.

In its third upward revision for the year through March 31, Toyota now anticipates a group net profit of ¥80 billion, up from an earlier projected loss of ¥200 billion. Last year it logged a ¥437 billion loss.

The automaker saw demand grow in emerging markets such as China and India, while sales of its hybrid models, including the Prius, have been strong due to government stimulus measures carried out worldwide.