Maruti Suzuki India rose 2.09% to Rs 1,640.35 at 14:11 IST on BSE after the company launched its much awaited compact car, Celerio, with the revolutionary auto gear shift, today, 6 February 2014.
The company made the announcement during trading hours today, 6 February 2014.
Meanwhile, the BSE Sensex was down 4.34 points, or 0.02%, to 20,256.69.
On BSE, so far 56,000 shares were traded in the counter, compared with an average volume of 92,901 shares in the past one quarter.
The stock hit a high of Rs 1,642 and a low of Rs 1,594 so far during the day. The stock hit a record high of Rs 1,864 on 9 January 2014. The stock hit a 52-week low of Rs 1,217 on 28 August 2013.
The stock had underperformed the market over the past one month till 5 February 2014, sliding 10.67% compared with the Sensex's 2.83% fall. The scrip had, however, outperformed the market in past one quarter, falling 1.10% as against Sensex's 3.40% decline.
The large-cap company has an equity capital of Rs 151.04 crore. Face value per share is Rs 5.
Maruti Suzuki India (MSIL) has launched its Celerio hatchback at Rs 3.90 lakh onwards. With fuel efficiency same as the manual transmission, the revolutionary auto gear shift, christened EZ Drive, is all set to redefine the car driving experience on Indian roads. Interestingly, auto gear shift on the Celerio is a first for India amongst passenger cars. Celerio offers a fuel efficiency of 23.1 kmpl, for both, auto gear shift and the manual transmission variants, the company said in a statement.
The Celerio comes in six variants, including two with auto gear shift, the Celerio is powered by the high performing K-next petrol engine. In terms of maintenance of the car, the auto gear shift technology on Celerio is affordable and hassle free, the company said.
Celerio's manual variant base model comes at an introductory price of Rs 3.90 lakh (ex-showroom Delhi). The auto gear shift variant base model is priced at Rs 4.29 lakh (ex-showroom Delhi).
Unveiling the Celerio, Mr Kenichi Ayukawa, Managing Director & CEO said, "Maruti Suzuki has always believed in offering cars that set new benchmarks of technology, style and overall costs in India. Maruti Suzuki Celerio is the latest example that brings path breaking auto gear shift technology in cars for the first time and that too, in country's most popular compact car segment. The Celerio promises a new, convenient and fun to drive experience, with top class fuel efficiency, at a highly attractive price and low maintenance cost. We are confident that Celerio will soon become a popular choice among customers as they enjoy the benefits that this new technology brings."
Late last month, MSIL announced its decision to route the expansion project in Gujarat through a 100% subsidiary of Suzuki Motor Corporation, Japan.
The board of directors of MSIL had, on 29 October 2011, approved the purchase of land in Mehsana district of Gujarat for further expansion of manufacturing facilities. Following this decision, MSIL acquired approximately 640 acres of land in Becharaji and approximately 550 acres in Vithalapur. The expansion of facilities was kept on hold due to market conditions.
On 28 January 2014, MSIL said its board recently received a proposal from Suzuki Motor Corporation (SMC) for implementing the expansion project through a 100% Suzuki subsidiary. The Suzuki subsidiary would always remain a 100% Suzuki owned company, MSIL said. MSIL said its board, on 28 January 2014, decided that the time was now appropriate to expand production facilities in Gujarat. The board approved implementing the expansion through a 100% Suzuki subsidiary because it would result in substantial financial benefits to MSIL, and its minority shareholders, MSIL said in a statement. MSIL would enter into a contract with this subsidiary company under which all production in the subsidiary company would be in accordance with the requirements of MSIL, and the vehicles would be sold to MSIL. The Suzuki subsidiary would not sell vehicles to anybody else.
The price of the vehicles to MSIL would include only the cost of production actually incurred by the subsidiary plus just adequate cash (net of all tax) to cover incremental capital expenditure requirements. The return on this investment for SMC would be realized only through the growth and expansion of MSIL's business, the company said.
MSIL said that the company would financially benefit from the interest earnings resulting from not investing its money in this project directly. It would also benefit because the vehicles would be sold to MSIL by the Suzuki subsidiary without any return on capital employed. MSIL would be able to avoid all risk inherent in any investment. MSIL would also retain the option of investing its own funds for strengthening its marketing network, product development, R&D and any other opportunity of growth or building strength for market leadership.
MSIL would render all required assistance to the subsidiary company for implementing this project on an arms' length basis. The land for the project would be leased by MSIL to the subsidiary company to establish the production and related facilities. The rent would be determined on an arms' length basis, the company said.
MSIL's net profit rose 35.9% to Rs 681.10 crore on 3% fall in net sales (net of excise) to Rs 10619.70 crore in Q3 December 2013 over Q3 December 2012. Higher localization, favorable foreign exchange and cost reduction initiatives by the company contributed significantly to the growth in bottom line in Q3 December 2013, Maruti Suzuki India said.
Maruti said that the company's market share in domestic market stood 42.8% in Q3 December 2013, registering a gain of 2.5% from Q3 December 2012.
Japanese parent Suzuki Motor Corporation (SMC) holds 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 December 2013).
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