Atul Auto shares plunge nearly 8 per cent on drop in April sales

By: |
New Delhi | Updated: May 3, 2016 4:41:32 PM

Atul Auto shares dipped as much as 7.81 per cent in the early trade on Tuesday after the company reported 50.36 per cent drop in sales for the month of April 2016 at 1,242 units as compared to 2,502 units sold in April 2015.

Atul Auto, BSE Sensex, Atul Auto April salesAtul Auto shares dipped as much as 7.81 per cent in the early trade on Tuesday after the company reported 50.36 per cent drop in sales for the month of April 2016 at 1,242 units as compared to 2,502 units sold in April 2015. (Photo: Reuters)

Atul Auto shares dipped as much as 7.81 per cent in the early trade on Tuesday after the company reported 50.36 per cent drop in sales for the month of April 2016 at 1,242 units as compared to 2,502 units sold in April 2015.

At 10.38 am, shares of Atul Auto were trading 6.33 per cent down at Rs 491.75. The scrip opened at Rs 509 and has touched a high and low of Rs 509 and Rs 484, respectively, in trade so far.

Later, the scrip closed 8.05 per cent down at Rs 482.75.

In a BSE filing, Atul Auto said, “The company has stated that with effect from April 1, 2016, Government of Gujarat in its Budget for 2016-17 has increased VAT on motor vehicles sold to dealers from 15 per cent to 20 per cent, whereas sales made by dealers to customers attracts VAT at rate of 15 per cent. This resulted into a tax anomaly resulting into increased 5 per cent burden of VAT. Therefore despite pending orders, dealers have suspended taking delivery of vehicles from April 1, 2016. This has impacted the company’s sales in Gujarat resulting into this decrease.”

The promoters holding in the company stood at 52.70 per cent while institutions and non-institutions held 16.53 per cent and 30.77 per cent respectively.

Atul Auto is a leading manufacturer of 3-wheeled commercial vehicles in the state of Gujarat, presently engaged in the manufacturing of three wheelers like 6-seater auto rickshaws, pick-up vans and chassis of passenger vehicles.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop