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Shares of the country’s largest car manufacturer Maruti Suzuki tumbled by over five per cent to hit a 52-week low in the early trade on the Bombay Stock Exchange (BSE) due to lower-than-expected third quarter results and weakness in the broader market.
The company had posted a 17.8 per cent decline in its net profit for the third quarter ended December 31, 2010, at Rs 565.17 crore due to higher royalty payout, increased employee costs and higher discounts, which according to market observers disappointed the investors.
The scrip tanked by 5.15 per cent to touch a year low of Rs 1,170 a piece on the BSE. Similarly on the National Stock Exchange, it slipped by 6.43 per cent to Rs 1,150.30.
“The company’s third quarter numbers were below our expectations, as it a reported net profit of Rs 565 crore, as against our estimate of Rs 601 crore, due to subdued performance at the operating front,” equity broking firm Angel Broking said in a note.
Besides, the counter was also hammered by the weakness in the benchmark Sensex.
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