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Maruti Suzuki slips as yen firms up

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Capital Market
Last Updated : May 18 2016 | 1:13 PM IST

Maruti Suzuki India fell 2.41% to Rs 3,854 at 11:50 IST on BSE as the Japanese yen strengthened against the dollar.

Meanwhile, the BSE Sensex was down 236.78 points, or 0.92%, to 25,536.83 .

On BSE, so far 83,000 shares were traded in the counter, compared with an average volume of 87,395 shares in the past one quarter. The stock hit a high of Rs 3,929.45 and a low of Rs 3,808 so far during the day. The stock hit a record high of Rs 4,789 on 23 November 2015. The stock hit a 52-week low of Rs 3,202.10 on 29 February 2016. The stock had outperformed the market over the past one month till 17 May 2016, rising 5.74% compared with 0.57% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 5.32% as against Sensex's 10.23% rise.

The large-cap car major has an equity capital of Rs 151.04 crore. Face value per share is Rs 5.

A strong yen affects Maruti Suzuki India's operating profit margin. Maruti pays royalty to its Japanese parent Suzuki Motor Corporation in yen terms for some of its earlier models. As per recent media reports, Maruti will start paying royalty to its Japanese parent in rupee term on all new models from the current financial year, which began on 1 April 2016. Maruti also has an exposure to the yen to the extent it imports raw materials from Japan.

Meanwhile, shares of Maruti Suzuki India also fell on reports that UK-based vehicle testing agency Global New Car Assessment Programme (Global NCAP) yesterday, 17 May 2016, awarded zero star safety rating to Maruti Suzuki's 'Celerio' and 'Eeco' car models following a crash test.

Maruti's net profit declined 11.7% to Rs 1133.60 crore on 12.5% growth in net sales to Rs 14929.50 crore in Q4 March 2016 over Q4 March 2015.

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Japanese parent Suzuki Motor Corporation held 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 March 2016).

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First Published: May 18 2016 | 11:51 AM IST

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