Amid the price hike announcement, shares of SML Isuzu zoomed over 18 per cent to touch a day’s high level of Rs 697 per share on the BSE in the intraday trade on Monday. The stock at around 01:23 pm was up over 14 per cent to Rs 672.6 apiece on the BSE versus a 1.6 per cent rise in the BSE Sensex. 

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According to the SML Isuzu’s filing to exchanges, “The company has decided to increase prices of its Products (across all Models - Trucks & Buses) in the range of 3% to 4%, effective 4th April 2022.” 

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“While the company is taking actions to absorb the impact of a sharp increase in commodity prices and other input costs, the upward revision has been necessitated to partially offset the impact of increased costs,” the small-cap auto company said further in a statement on April 3, 2022.  

The total sales of the company have increased 43 per cent to 1,363 units in the month of March 2022. While the passenger vehicles sales more-than-doubled to 665 units in March 2022 versus 273 units Year-on-Year and cargo vehicles sales rose 3 per cent to 698 units from 679 units YoY. 

Although the auto numbers started on a weak note in March 2022, inquiries improved across segments from the second half post-Holi, a domestic brokerage house Dolat Capital’s analysis and research report said. 

It added that the auto sales numbers to improve gradually from April onwards due to the opening of educational institutions and offices along with pick up in rural volume led by marriage season demand and cash flow in the hand of farmers post-harvesting of Rabi crops. 

Supply chain issues are expected to continue due to the ongoing war in Europe disrupting supply chain further coupled with elevated metal prices, the brokerage also mentioned.