The order, received by the company on June 9, pertains to the period from April 2023 to March 2024 and confirms a GST demand of ₹6.49 crore. The authority has also levied interest of ₹2.50 crore and imposed a penalty of ₹64.87 lakh.
According to the filing, the demand relates to an alleged short payment of output tax. The company disclosed the development under Regulation 30 of the SEBI Listing Regulations.
Eternal said it believes it has a strong case on merits and intends to challenge the order before the appropriate appellate authority.
“We believe that we have a strong case on merits, and the Company will be filing an appeal against the order before the appropriate authority,” the company said.
The company did not indicate any immediate impact arising from the order but said it would pursue available legal remedies against the demand.
Eternal’s net profit for the period increased by 70.6% from last year to ₹174 crore. Other income for the quarter stood at ₹342 crore from ₹348 crore in the previous quarter.
Revenue for the quarter increased by 6% from the December quarter to ₹17,292 crore, higher than the CNBC-TV18 poll of ₹17,155 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 32% quarter-on-quarter to ₹486 crore, higher than the CNBC-TV18 poll of ₹400 crore, while margins expanded by 50 basis points from the previous quarter to 2.8%, while the CNBC-TV18 poll had projected the margin figure to remain unchanged.
Shares of Eternal ended at ₹239.85 on the NSE on June 10, down 2.36% for the day.
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