Calendar

May-2013
M T W T F S S
20 21 22 23 24 25 26
Economic Events
list Foreign Buying Japan Stocks (Yen)
list Exports (New Zealand dollars)
Results
list Tata Steel | St Bk of India | B H E L | Hind.Copper
IPO
listNo IPO today
 

Maruti Suzuki inches up on bargain hunting

Capital Market/ 10:21 , Jul 20, 2012

Maruti Suzuki India rose 0.60% at Rs 1124 at 10:23 IST on BSE on bargain hunting after Thursday's steep decline triggered by the company stopping production at its Manesar plant following violent clashes between workers and managers.

Meanwhile, the BSE Sensex was down 123.92 points, or 0.72%, to 17,154.93.

On BSE, 2.64 lakh shares were traded in the counter as against an average daily volume of 83,708 shares in the past one quarter.

The stock hit a high of Rs 1,139.40 and a low of Rs 1,094.60 so far during the day. The stock had hit a 52-week high of Rs 1,428.20 on 16 March 2012. The stock had hit a 52-week low of Rs 905.55 on 19 December 2011.

The stock had underperformed the market over the past one month until 19 July 2012, gaining 2.43% compared with the Sensex's 2.49% rise. The scrip had also underperformed the market in past one quarter, sliding 19.58% as against 1.28% fall in the Sensex.

India's largest car maker by sales has an equity capital of Rs 144.46 crore. Face value per share is Rs 5.

Shares of Maruti Suzuki India tumbled 8.74% at Rs 1117.35 on Thursday, 19 July 2012, after violence at the company's Manesar plant stalled production. The company in a statement issued after market hours on Thursday, 19 July 2012, stated that the company was deeply disturbed by the mob violence and arson at the Manesar plant on Wednesday evening. Several executives, managers and supervisors were brutally attacked and injured, and nearly 100 of them had to be hospitalised. The company said General Manager (HR) at Manesar plant Mr. Awanish Kumar Dev was burnt to death by the mob.

Maruti said the company is still assessing the total damage to property and facilities from the acts of arson. The company added that the office facilities have been burnt beyond repair, as have the main gate, security office and the fire safety section. Maruti said its Manesar plant remained shut on Thursday. The company said it will shortly announce a decision on the next steps with regard to resuming operations at the unit. After being terrorized, abused and attacked in a brutal manner by the mob, recovery for the injured employees will not be easy, Maruti said adding that the management will ensure the injured employees continue to receive quality medical attention and that the company is extending all possible to the families of the injured employees.

Maruti suffered losses last year when workers had gone on an indefinite strike to form an independent union at the same plant.

Maruti Suzuki's total sales rose 20.3% to 96,597 units in June 2012 over June 2011. Maruti's domestic sales rose 19.3% to 83,531 units in June 2012 over June 2011. Export sales rose 27.1% to 13,066 units in June 2012 over June 2011.

Maruti's total sales rose 5.1% to 2,95,896 units in Q1 June 2012 over Q1 June 2011. Domestic sales rose 5% to 2,63,264 units and exports rose 5.8% to 32,632 in Q1 June 2012 over Q1 June 2011.

Maruti's board of directors last month approved a proposal to merge Suzuki Powertrain India (SPIL) with the company. SPIL, which supplies diesel engines as well as transmissions for vehicles to MSIL, is a subsidiary of MSIL's parent -- Suzuki Motor Corporation (SMC), Japan. SMC holds a 70% share in SPIL and the remaining 30% is held by MSIL.

As per the terms of the proposed merger, SMC will receive one share of MSIL of Rs 5 each for every 70 shares of Rs 10 each it holds in SPIL. There will be no cash outflow from MSIL due to the merger. MSIL proposes to make a fresh issue of about 1.31 crore equity shares to SMC in lieu of SMC's 70% holding in SPIL. Consequent to the merger, SMC's holding in MSIL will go up from 54.2% to 56.2%.

It is expected that the necessary regulatory approvals and legal requirements for the merger may be completed by end December 2012, MSIL said. Once the merger is approved, the books of accounts of SPIL will be merged with MSIL with effect from 1 April 2012, the company added. The two companies, viz MSIL and SPIL, will work jointly to integrate the two organizations, MSIL said.

With the merger, MSIL will be able to bring its entire diesel engine capacity under a single management control. All key initiatives to strengthen the business, including sourcing, localization, production planning, manufacturing flexibility and cost reduction can be controlled, monitored and improved by the MSIL management, MSIL said in a statement. The proposed merger also promises benefits for the combined entity through synergies in areas like finance, capital structuring, and administration and consequent reduction of transaction costs, MSIL said.

Maruti Suzuki India's net profit fell 3% to Rs 639.84 crore on 17.1% growth in net sales to Rs 11524.52 crore in Q4 March 2012 over Q4 March 2011. The company will announce Q1 results on 28 July 2012.

 



Rate This Article Rate 1 Rate 2 Rate 3 Rate 4 Rate 5

Recent News Videos