Moser Baer India, the world's third largest recordable compact disc maker (CD-Rs), said on Monday it would raise prices of its exports to the European Union to offset a duty being proposed by the European Commission.
New Delhi-based Moser Baer told the Bombay Stock Exchange on Monday that the European Commission proposed to levy a duty of 7.3 per cent on Indian CD-Rs, which caused the company's shares to fall as much as 7.2 per cent to Rs 269.
The stock later recovered to quote at Rs 275, still down 5.12 per cent in a flat market.
"As our strategy is to protect our margins, the imposition of this duty will result in raising the price of CD-Rs in the European market by 7.3
Puri said that Moser Baer would appeal the European Commission's ruling.
"We do not believe that there will be any impact on volumes and we reconfirm our earnings guidance for the year," he said.
The company's sales to the European market accounts for about 40 per cent of its revenue.
Moser Baer had forecast its net earnings in the year to March 2004 would grow 25 to 30 per cent to Rs 3.06 billion to Rs 3.19 billion.
The notice on the Bombay Stock Exchange said that the European Commission had proposed the duty allegedly to offset subsidies available to Indian companies.
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