Maruti Suzuki today fell nearly three per cent on the Bombay Stock Exchange,as the auto giant’s second quarter numbers failed to enthuse the investors.
Although the company reported its highest ever monthly sales at 1,18,908 units in October,registering a robust 39.21 per cent jump over the year-ago period,experts say its July-September quarter results led to the weakness in the stock.
The country’s largest car maker,which had reported a 4.95 per cent rise in net profit for the quarter ended September 30 at Rs 598.24 crore on Saturday,emerged as the worst performer among the Sensex companies by losing 2.74 per cent to close at Rs 1,508.70 on the BSE.
“The company had said it expects cost pressure due to higher raw material prices but has no plans to increase vehicle prices immediately,which led to the weakness in the stock,” brokerage firm SMC said in a note.
During the day,the scrip had plunged 3.22 per cent to touch an intra-day low of Rs 1,501.15.
The company had reported a nearly five per cent rise in its July-September net profit on the back of its highest-ever quarterly sales but it said that the company’s margins were under pressure during the quarter due to high commodity prices,foreign exchange fluctuations and also higher royalty payment to the parent Suzuki Motor Corp.
On the National Stock Exchange,Maruti settled at Rs 1506.95,down 2.88 per cent.
Among the other major auto counters,Hero Honda also finished the day in the red at Rs 1,840,shedding 1.38 per cent from the previous close. However,Mahindra & Mahindra and Tata Motors settled with a gain of 5.14 per cent and 0.85 per cent,respectively.
Meanwhile,the BSE benchmark Sensex saw a smart trading session and ended at 20,355.63,up 323.29 points from previous close.