Maruti slides on firmness in Japanese yen

Maruti Suzuki India dropped 0.98% to Rs 3,824 at 12:02 IST on BSE as Japanese yen strengthened against the dollar after the Bank of Japan surprised financial markets by keeping monetary policy unchanged in its latest policy meeting.

Meanwhile, the S&P BSE Sensex was down 179.90 points or 0.69% at 25,884.22.

On BSE, so far 50,000 shares were traded in the counter as against average daily volume of 1.01 lakh shares in the past one quarter. The stock was volatile. The stock lost as much as 2.24% at the day's low of Rs 3,775.25 so far during the day. The stock lost 0.22% at the day's high of Rs 3,853.50 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 27 April 2016, gaining 3.38% compared with Sensex's 2.87% rise. The scrip had, however, underperformed the market in past one quarter, sliding 6.01% as against Sensex's 6.42% 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. As per recent media reports, Maruti will start paying royalty to its Japanese parent in rupee term on all new models from the current financial year, which began on 1 April 2016. Maruti also has an exposure to the yen to the extent it imports raw materials from Japan.

Maruti'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.

Japanese parent Suzuki Motor Corporation held 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 March 2016).

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