|Hot Pursuit||Monday, July 23, 2012 09:52 Hrs IST|
Maruti Suzuki tumbles after declaring lockout at Manesar plant
The announcement was made on Saturday, 21 July 2012.
Meanwhile, the BSE Sensex was down 164.74 points, or 0.96%, to 16,993.70.
On BSE, 1.11 lakh shares were traded in the counter as against an average daily volume of 92,636 shares in the past one quarter.
The stock hit a high of Rs 1,107 and a low of Rs 1,082.50 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 outperformed the market over the past one month until 20 July 2012, rising 6.13% compared with the Sensex's 1.55% rise. The scrip had, however, underperformed the market in past one quarter, falling 17.71% as against 1.24% 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.
Maruti Suzuki India's Manesar facility was rocked by labour violence on 18 July 2012. A General Manager, Awanish Kumar Dev, was burnt to death by the mob of workers inside the plant facilities. Nearly a hundred managers and supervisors sustained serious and critical injuries and had to be hospitalised. The mobs also set fire to the office wing and the main gate.
The company said in a statement that its most important concern at this time is the safety and security of its supervisory and management personnel. The management firmly believes that unless the causes are identified and appropriate corrective action is in place it would be unsafe for supervisors and managers to resume work. Following the incidents of violence and arson at the Manesar facility, the Management believes that if employees are asked to report for work at the facility, their lives will be endangered.
With this strong concern on the safety and security of the personnel, Maruti Suzuki issued a notice declaring a lock-out at its Manesar plant facility.
The company said it wants to ensure that the injured continue to receive quality medical care and recover from the mental trauma caused by the violence. About 30 managers and executives are currently admitted in hospitals in Gurgaon. Even among those discharged from hospital, many are going through trauma owing to the terror and abuse accompanying the attacks. The families of these victims remain disturbed. The company said its other facilities, including the operations in Gurgaon, will continue to function normally, Maruti said in a statement.
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.
Meanwhile, 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 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.