Maruti Suzuki share price plunged nearly 3 per cent on Thursday after Japanese yen rose over 2 per cent against the dollar on to hit its strongest level in almost two years.
Yen soared after the Bank of Japan refrained from offering additional monetary stimulus on Thursday despite external headwinds and anaemic inflation, spiking the yen to a two-year high that clouds an already darkening outlook for the economy.
The share price of the auto maker closed 2.93 per cent, or Rs 123.10 down at Rs 4,084 on Thursday.
According to market experts, every 1 per cent rise in yen affects 15-20 basis points (bps) of operating margin for Maruti Suzuki.
For the quarter ended March 2016, the car maker reported net profit of Rs 1,133.60 crore, down 11.73 per cent, against Rs 1,284.20 crore in the corresponding quarter a year ago.
Yen which also hit multi-year highs against the euro and sterling, has climbed around 7 per cent against the dollar since the start of June as worries that Britain could vote to leave the European Union in a referendum next week have prompted a flight to safety.