Maruti Suzuki India lost 3.2% at Rs 4,068.65 at 12:07 IST on BSE as the Japanese yen strengthened against the dollar.
Meanwhile, the S&P BSE Sensex was down 378.51 points or 1.42% at 26,347.83.
On BSE, so far 75,732 shares were traded in the counter as against average daily volume of 79,351 shares in the past one quarter. The stock hit a high of Rs 4,166.45 and a low of Rs 4,063.45 so far during the day. The stock had hit a record high of Rs 4,789 on 23 November 2015. The stock had 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 15 June 2016, surging 9.43% compared with Sensex's 4.85% rise. The scrip had also outperformed the market in past one quarter, gaining 15.14% as against Sensex's 8.86% rise.
The large-cap company has equity capital of Rs 151.04 crore. Face value per share is Rs 5.
The Japanese yen surged against the dollar on global risk aversion generated by Brexit fears. The Japanese currency is perceived as a haven in times of global financial and global economic worries. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union or leave it. The latest strength in the Japanese currency materialized after Japan's central bank the Bank of Japan (BOJ) voted to leave its monetary policy unchanged after a policy review. The BOJ voted to keep its annual asset-purchase target unchanged at 80 trillion yen (around $760 billion) a year and its deposit rate steady at minus 0.1%. The decision was on expected lines.
A strong yen adversely impacts Maruti Suzuki India's (Maruti) operating profit margin. Maruti pays royalty to its Japanese parent Suzuki Motor Corporation in yen terms for some of its earlier models. Maruti has reportedly started paying royalty to its Japanese parent in rupee terms on all new models from 1 April 2016. Maruti also has an exposure to the yen to the extent it imports raw materials from Japan.
Maruti Suzuki India'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.
Maruti is India's biggest car maker in terms of market share. Japanese parent Suzuki Motor Corporation currently holds 56.21% stake in Maruti (as per the shareholding pattern as on 31 March 2016).
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