Shares of SML Isuzu rallied 6% on 3 October after the company raised the price of trucks and busses that will take effect from 1 October.

The company said in its filing that it is increasing the price to cover the incense in input cost due to implementing FAPS (Fire Alarm and Protection System) and counter the general inflation.

All the company’s buses and trucks that comply with present norms are set to see a price hike of Rs 20,000 – 30,000 (inclusive of GST at 28%).

The company’s school buses, subject to the implementation of compliance with new Norms “FAPS”, which is part of AIS 153 norms and related to the safety of buses, will see a price hike in the range of Rs 1.95 lakhs – 2.45 lakhs (inclusive of GST at 28%).

For September, the company saw a 16% YoY increase in sales at 872 units from 752 units sold in September 2022.

The cargo sales of the company saw a 7% YoY increase at 34 units, whereas the passenger vehicles saw a 22% YoY increase at 531 units for September 2023.

Earlier, the company received a show-cause notice from the GST (Good and Service Tax) Authority that includes a show-cause-cum-deman notice for the period of July 2017 to March 2023 for Rs 2.65 crore along with interest that is applicable on the matter of tax liability under reverse charge basis on certain services.

The GST Authority has also issued a notice proposing tax demand of Rs 1.75 crore along with applicable interest and penalty for the matter of classification of goods for the period of July 2017 to December 2022.

At 12:02 pm, the shares of SML Isuzu were trading at Rs 1,234.10 or 4.58% above its previous close on NSE.