Eicher Motors Slides After Rs 130 cr Demand Notice, Dip in 2-Wheeler Sales
by Sandip Das on 2 January 2024, 3 min read
Eicher Motors share price declined over 2 percent in the morning session on January 2. The stock was under pressure after the company received demand orders from Chennai, Punjab, and Jaipur worth Rs 130 crore.
According to an exchange filing, the officer has disallowed specific GST credits and raised a GST demand, primarily due to a disparity in GST credit matching between the company’s GST availment and the information provided by suppliers in their GST returns.
“Based on Eichers’ assessment, the aforesaid demands are not maintainable and the company is evaluating all options including filing an appeal against the orders. The company did not envisage any relevant impact on financials, operations, or other activities of Eicher Motors,” it said.
At 10:25 AM, the stock was trading at Rs 3,934 per share on NSE, down Rs 104.35 or 2.58 percent.
The company announced a 7 percent dip in its two-wheeler sales in December.
During the month, the company sold 63,387 units, which was lower than the 68,000 units sold in December 2022, as stated in an exchange filing on January 1.
According to data, Eicher sold 55,401 units of models with engine capacity up to 350cc. It reflected a 10 percent decrease from over 60,000 units sold in December last year. However, two-wheelers with engine capacity exceeding 350cc experienced an 11 percent surge. The automobile major sold 7,986 units compared to 7,177 in December 2022.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
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