Motherson Sumi Systems dropped 4.75% to Rs 249.70 at 11:50 IST on BSE, with the stock extending previous sessions' losses amid concerns that regulatory problems being faced by its key client, Volkswagen may weigh on its business prospects.
The stock had tumbled 7.64% to Rs 262.15 yesterday, 21 September 2015.
Meanwhile, the S&P BSE Sensex was up 57.36 points or 0.22% at 26,250.34.
On BSE, so far 7.97 lakh shares were traded in the counter as against average daily volume of 3.39 lakh shares in the past one quarter.
The stock hit a high of Rs 260 and a low of Rs 239.65 so far during the day. The stock had hit a 52-week low of Rs 235 on 17 October 2014. The stock had hit a record high of Rs 395.85 on 6 August 2015.
The stock had underperformed the market over the past one month till 21 September 2015, falling 18.33% compared with Sensex's 4.29% fall. The scrip had also underperformed the market in past one quarter, dropping 20.34% as against Sensex's 4.11% fall.
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The large-cap company has equity capital of Rs 132.29 crore. Face value per share is Re 1.
The US Environmental Protection Agency (EPA) has accused Volkswagen Group of fudging diesel-emission tests by using illegal emission-control software.
Prof. Dr. Martin Winterkorn, CEO of Volkswagen AG had said on Sunday, 20 September 2015, that the US Environmental Protection Agency and the California Air Resources Board (EPA and CARB) revealed their findings that while testing diesel cars of the Volkswagen Group they have detected manipulations that violate American environmental standards.
The board of management at Volkswagen AG takes these findings very seriously, he added. He personally was deeply sorry that the company had broken the trust of its customers and the public. The company will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter. The company does not and will not tolerate violations of any kind of its internal rules or of the law, he added.
Meanwhile, Volkswagen has reportedly stopped selling diesel cars in the US with immediate effect and the German carmaker can face a potential fine of $18 billion.
Motherson Sumi Systems' consolidated net profit rose 62.3% to Rs 265.76 crore on 12.1% rise in total income to Rs 9409.51 crore in Q1 June 2015 over Q1 June 2014.
Samvardhana Motherson Group (SMG) founded in 1975, has a diversified industry-leading portfolio of auto ancillary products and services that make it a full system solutions provider for its customers across the globe. With market leading products ranging from Electrical Distribution Systems, automotive rearview mirrors, polymer processing, lighting systems, air intake manifolds and HVAC systems. SMG's principal focus is the automotive industry, globally and in India.
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