SYNOPSIS:
Omax Autos received a revised order dropping penalty proceedings in a Rs. 125.55 crore GST case. The tax demand was cancelled, and the company confirmed no financial or operational impact, as it was already disclosed.
During Thursday’s trading session, shares of one of the leading manufacturers of automotive components in India surged nearly 7 percent on the stock exchanges, after the company announced that the penalty proceedings for a total demand of Rs. 126 crores have been dropped.
At 10:37 p.m., shares of Omax Autos Limited were trading in green at Rs. 95 on BSE, up by around 1 percent, compared to its previous closing price of Rs. 94.3, with a market cap of Rs. 203 crores. The stock has delivered negative returns of more than 14 percent in one year, and has fallen by around 24 percent in the last one month.
What’s the News
According to recent regulatory filings with the stock exchanges, Omax Autos Limited has provided an update on its pending litigations and disputes. The company announced that it has received an order from the Commissioner (Appeals), Customs, GST & Central Excise, Lucknow, confirming the dropping of penalty proceedings related to a total demand of around Rs. 125.55 crore.
The case pertained to allegations that the company did not discharge GST liability on the Long Member (Left Hand and Right Hand) by excluding it from the taxable value of supply – an issue identified during an audit. It was further alleged that Omax Autos suppressed material facts with the intent to evade tax, leading to proceedings under Section 74(1) of the CGST Act, 2017, as well as a demand for tax with interest under Section 50(1) and penalties under Section 74(1). The tax demand has now been dropped.
Omax Autos clarified that the order has no impact on its financial or operational activities, as the matter was already disclosed as a contingent liability in its financial statements.
Financials & More
Omax Autos reported a significant growth in revenue from operations, experiencing a year-on-year increase of more than 12 percent, from Rs. 78.6 crores in Q2 FY25 to Rs. 88.3 crores in Q2 FY26.
In contrast, the company’s net profit decreased during the same period from Rs. 15.5 crores to Rs. 0.33 crores, representing a steep decline of nearly 98 percent YoY.
Omax Autos Limited is one of the leading manufacturers of automotive components in India, specialising in sheet metal components, tabular components and machine components.
Its product portfolio includes components, assemblies & sub-assemblies, frame & bus structure assemblies, tools, fixtures & spm, railway & heavy fabrication, cross member, front towing cross member, auxiliary cross members.
The company has expanded its reach by supplying a comprehensive range of assemblies, sub-assemblies, frames, bus structure assemblies, tools, fixtures and SPM to industry segments. These products find application in segments like automotive (CV), railways and heavy fabrication.
Written by Shivani Singh
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