Maruti declines on firmness in Japanese yen

Maruti Suzuki India lost 2.11% to Rs 4,131.10 at 11:22 IST on BSE as the Japanese yen strengthened against the dollar in the aftermath of weak US job data for May 2016.

Meanwhile, the S&P BSE Sensex was up 4.11 points or 0.02% at 26,847.14.

On BSE, so far 4.92 lakh shares were traded in the counter as against average daily volume of 72,501 shares in the past one quarter. The stock hit a high of Rs 4,224.90 and a low of Rs 4,121 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 3 June 2016, advancing 10.56% compared with Sensex's 6.39% rise. The scrip had also outperformed the market in past one quarter, gaining 16.86% as against Sensex's 9.09% rise.

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

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 after market hours on Friday, 3 June 2016, reported 1.57% growth in its total production at 1.29 lakh units in May 2016 over May 2015. Maruti's total sales rose 7.1% to 1.23 lakh units in May 2016 over May 2015.

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 held 56.21% stake in Maruti (as per the shareholding pattern as on 31 March 2016).

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