The shares of one of the leading auto component manufacturers, which is part of the Hero Group jumped 11 percent from the day’s low after it received a rectification order following which its tax demand order was reduced from Rs. 401 Crores to Rs. 0.69 Crores.
At 11:05 a.m. the shares of Munjal Auto Industries Limited were trading at Rs. 82.35, up 5.04 percent from its previous day’s close price of Rs. 78.40 and its market capitalization is Rs. 823 Crores.
According to the company’s filing on BSE, Munjal Auto Industries Limited had received a demand dated September 7, 2023, from the Income Tax Department for the payment of Rs. 401.42 Crores including interest of Rs. 64.26 Crores for the shortfall of tax to be paid by the Company for A.Y. 2022-23. Following this the company filed an application to Deputy Commissioner of the Income Tax.
In response to the application filed by the company, it has received a rectification order and accordingly, the demand amount is reduced from Rs. 401.42 Crores to Rs. 0.69 Crore. The matter is under scrutiny assessment and the Company does not expect any financial implications.
Its revenue from operations grew 3.58 percent from Rs. 1,916 Crores in FY22 to Rs. 1,984 Crores in FY23, accompanied by increasing profits of Rs. 30 Crores to Rs. 52 Crores.
It has reported a return on equity (ROE) of 14.3 percent and a return on capital employed (ROCE) of 21.33 percent, it is making good returns on its equity and capital employed.
Munjal Auto Industries which is part of the Hero Group, is one of the leading auto component manufacturers producing different types of auto components. It operates through 2 segments, manufacturing of auto components and manufacturing of composite products & moulds.
Written by: Bharath K.S
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