Atul Auto slumps after reporting drop in sales in April

Atul Auto slumped 6.9% to Rs 488.75 at 11:15 IST on BSE after the company reported 50.36% fall in total sales to 1,242 units in April 2016 over April 2015.

The announcement was made after market hours yesterday, 2 May 2016.

Meanwhile, the S&P BSE Sensex was up 153.67 points or 0.6% to 25,593.25.

On BSE, so far 14,263 shares were traded in the counter, compared with an average volume of 6,192 shares in the past one quarter. The stock hit a high of Rs 509 and a low of Rs 484 so far during the day. The stock hit a 52-week high of Rs 581 on 6 January 2016. The stock hit a 52-week low of Rs 330 on 12 June 2015. The stock had underperformed the market over the past one month till 2 May 2016, rising 0.72% compared with 0.66% gains in the Sensex. The scrip had also underperformed the market in past one quarter, gaining 3.4% as against Sensex's 3.66% gains.

The mid-cap company has an equity capital of Rs 10.97 crore. Face value per share is Rs 5.

Atul Auto attributed the sharp fall in sales to its dealers in Gujarat suspending taking delivery of vehicles from 1 April 2016 due to increase in value added tax. The Gujarat state government in its Budget for 2016-17 increased the value added tax (VAT) on motor vehicles sold to dealers from 15% to 20%. Sales made by dealers to customers attract a lower VAT of 15%.

Atul Auto's net profit rose 41.2% to Rs 15.97 crore on 9.2% rise in net sales to Rs 151.19 crore in Q3 December 2015 over Q3 December 2014.

Atul Auto manufactures three wheeler auto vehicles.

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