Maruti skids into the red

Maruti is amongst the top losers on the BSE currently, down 1.4% at Rs.1530, with an intra day low at Rs.1526. Volumes are not too boisterous, at 16,000 shares changing hands today morning.
 

The stock is down in the red as sales decline on account of lower demand is now showing on its workings. The company has shut the third shift of its diesel engine plant at Manesar following low demand and to clear up inventory. Its production in July is expected to be far below the installed capacity. It has cut production to align with the demand. It has also asked around 200 contract workers to go on indefinite leave. This is the first large scale downsizing after the Manesar violence of last year. The company is now doubtful of meeting its 5% growth target if the same conditions prevail.