Maruti Suzuki stock slips, as no end to strike

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Maruti Suzuki stock slips, as no end to strike
On-going strike at Maruti Suzuki's various plants has led the company's shares to a vicious circle. The share of the company fell by 2.78% in a day from Rs 1,052 to a 52-week low of Rs 1,027.

The company is in the spiral of strike since June 2011. This is the third strike of this year, where workers continued to sit-in strike on the premises of the company for the eighth straight day.

The workers of Suzuki Powertrain India Ltd (SPIL) and Suzuki Motorcycle India Pvt Ltd (SMIPL) are on strike in support of their colleagues.

The company is suffering from production loss since last week and has decided to halt production completely on Friday and Saturday due to shortage of auto parts because of strike.

The Haryana state government on Wednesday declared the strike by workers of Maruti and other Suzuki units as 'illegal'. The Haryana's labor department has also asked the striking workers to vacate the Manesar factory.

Company has reported a loss of around Rs 3,000 crore since the start of the strike earlier in June this year.

The strike has already reflected a fall in Maruti's revenues. It's revenue fell from Rs 10,092 crore in March 2011 to Rs 8,529 crore in June 2011.

Last entire quarter, company was in the midst of strike, which may impact on its revenues again this time.

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