M&M declines on announcing preventive inspection of engines

M&M lost 0.52% to Rs 1,258 at 10:55 IST on BSE after the company said that it would carry out preventive inspection of a part of its engines manufactured during May 2014.

The company made the announcement after market hours yesterday, 18 November 2014

Meanwhile, the S&P BSE Sensex was up 7.32 points or 0.03% at 28,170.61.

On BSE, so far 12,631 shares were traded in the counter as against average daily volume of 69,359 shares in the past one quarter.

The stock hit a high of Rs 1,267.90 and a low of Rs 1,253.05 so far during the day. The stock had hit a record high of Rs 1,421 on 4 September 2014. The stock had hit a 52-week low of Rs 847 on 4 February 2014.

The stock had underperformed the market over the past one month till 18 November 2014, rising 0.85% compared with the Sensex's 7.87% rise. The scrip had also underperformed the market in past one quarter, falling 4.63% as against Sensex's 6.72% rise.

The large-cap auto maker has an equity capital of Rs 310.54 crore. Face value per share is Rs 5.

The preventive inspection and replacement (if needed) of this part (vacuum pump) would be free of cost for customers who would be individually contacted by the company. The proactive part Inspection replacement is in keeping with M&M's customer-centric approach as well as in keeping with the company's endeavour to ensure a hassle free experience for its customers. This is also in keeping with SIAM's voluntary code on vehicle recall. The inspection is limited to approximately 2300 (two thousand three hundred) vehicles of Scorpio Vlx/Sle /Lx , XUV 500 W4/W6AN8 and Xylo H9/1-18/H4 variants, the company said in a statement.

M&M's net profit fell 4.3% to Rs 946.63 crore on 8% rise in total income to Rs 10029.19 crore in Q2 September 2014 over Q2 September 2013.

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