The stock price of the country’s leading carmaker, Maruti Suzuki, dipped 3 per cent on the BSE during intra-day trade to Rs 1,358.10, while making a small recovery by day end.
This follows a 29 per cent drop in profits for FY12 posted by the company on Saturday, apart from a conservative sales forecast for FY13, market analysts said. Net sales in the previous fiscal were also down 3 per cent, largely on a labour strike and inability to meet a sharp rise in diesel car demand.
“The profits were higher than the market expected because of other income, where it made gains on investments. Adjusted for that, profits would’ve been below the target,” Mr Yaresh Kothari, an analyst at Angel Broking, said.
By the end of trading on Monday, however, Maruti’s share price recovered marginally and ended at Rs 1,369.90 (down 1.95 per cent from the opening). The stock had started in the positive territory.
The market capitalisation of the company, which accounts for around 45 per cent of cars sold domestically, is Rs 39,577 crore.
Mr Shinzo Nakanishi, MD & CEO of Maruti, said on Saturday, “There is some positive development in lower inflation levels and cutting interest rates. But there is uncertainty in fuel prices and European exports. We hope to improve margins through various measures.”
The third consecutive quarter with lower profits, Q4 saw a 3 per cent dip. Net sales though were up 17 per cent.