SML Isuzu shares zoom 2% on move to hike prices of trucks and buses
- Hot Stocks
admin
- 0
- 3 minutes read
Price hikes in the MHCV industry segment had been expected, and that had resulted in the lot of pre-buying.
SML Isuzu is trending higher today after news that the company was raising the price of its trucks and buses.
The share was trading at Rs 704, or around 2.2 percent higher than previous close, on the BSE around 11am today.
SML Isuzu plans to raise the price of trucks by 4 percent and that of its buses by 6 percent from April 1.
Follow live updates and analysis on the market on here
This help it cover the increase in input prices due to new emission norms and combat general inflation, according to an exchange filing.
From April 1, 2023, new norms — BS6 Integrated On-Board Diagnostic II (IOBD-II) and Electronic Stability Control (ESC) for buses — will be implemented. Under the BS6 or Bharat Stage 6 emission norms, vehicles are required to have on-board diagnostics, which will measure real-time emissions of pollutants.
Under the BS6 norms, vehicles are required to keep nitrous and particulate matter emissions within a prescribed limit. While earlier the emissions were tested under lab conditions, with the on-board diagnostics, the emissions can be checked while on the road.
Electronic Stability Control is a safety measure added to ensure that a vehicle does not topple from understeering or oversteering.
Price hikes in the MHCV industry was expected, and it led to a lot of pre-buying. “Medium and heavy commercial vehicles (MHCVs) demand in March is high due to a likely price hike (3-5 percent) and technology change attributable to Bharat Stage VI Phase-2 from April 1, 2023,” said brokerage Nomura in its latest report on March volumes. It had made a similar observation in its February volumes report.
In Q3FY23, the company had reported revenue from operations of Rs 327.75 crore, with a 31.16 percent on-year rise, and a net loss of Rs 1.3 crore. Its losses had shrunk considerably from Rs 25.1 crore a year ago and from Rs 9.5 crore a quarter ago.
This February, the company reappointed its Chief Financial Officer Rakesh Bhalla to hold the position till May 31, 2025.
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1190222745-b65de6b6c3b948d2a22db5d28c5b1fb8.jpg "Is My Credit Score Good Enough for a Mortgage?")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1390654298-5468501d88fb4e7faca533096301f91c-10635296cf604385879a8a0cdb404622.jpg "Best Strategies for Your Roth 401(k)")
:max_bytes(150000):strip_icc():format(jpeg)/socialsecurity-whentoapply-794e7d2e1615450a9c7530288e2f5dad.jpg "Unlocking Benefits: The Best Time to Apply for Social Security")