Maruti Suzuki drops on firmness in Japanese yen

Maruti Suzuki India fell 2.18% to Rs 3,734.15 at 13:50 IST on BSE as Japanese yen strengthened against the dollar on expectations of further easing from the Bank of Japan.

Meanwhile, the S&P BSE Sensex was down 190.44 points or 0.75% at 25,643.30.

On BSE, so far 54,130 shares were traded in the counter as against average daily volume of 95,851 shares in the past one quarter. The stock hit a high of Rs 3,843.75 and a low of Rs 3,731 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 22 April 2016, rising 3.19% compared with 2% gains in the Sensex. The scrip had, however, underperformed the market in past one quarter, dropping 7.06% as against Sensex's 5.74% rise.

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

Firmness in Japanese yen against the dollar is expected to adversely affect operating margins for Maruti Suzuki India. 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 rupees term on the 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 Suzuki India's net profit rose 27.1% to Rs 1019.30 crore on 20.4% growth in net sales to Rs 14767.70 crore in Q3 December 2015 over Q3 December 2014. The company is scheduled to announce its Q4 March 2016 results tomorrow, 26 April 2016.

Japanese parent Suzuki Motor Corporation held 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 December 2015).

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