Omax Auto skids into red

Omax Autos opened in the green but soon slipped into the red and is currently down over 4%, trading at the low point at Rs.41.25.

The stock has slipped into the red following news of labour unrest at its two factories at Dharuhera in Haryana, which in turn led to disruption of supplies to various manufacturers, including that of Hero MotoCorp, which gets 90% of its components from Omax.

The company has stated that workers have deliberately slowed down production as they are demanding higher salaries and job confirmations. This has led to a fall of 35-40% in daily dispatches and in terms of value, from Rs.1-1.2 crore per day to around Rs.80 lakh/day.