H2 will be exciting, see growth across biz: Dheeraj Garg

Written By Unknown on Kamis, 03 Oktober 2013 | 23.25

Despite the issues plaguing the domestic economy - infrastructure logjam and the upcoming elections - an optimistic Dheeraj Garg, MD, Steel Strips Wheels , believes the remaining six months of the current fiscal will be better for auto ancillary industry. Going forward, he sees growth across all segments - cars, exports, tractors, scooters and even the passenger car segment.

Also Read: M&M sees FY14 tractor sales growth at 12-14%

In the next six months, he says exports will grow around 20 percent and passenger car market which has been lying dormant will also be a big growth factor because all the new models that are coming out, the company will be the single source on them.

Below is the verbatim transcript of Dheeraj Garg's interview on CNBC-TV18

Q: Guide us with how the rest of the year will pan out, any guidance for FY14?

A: I think the remaining six months will be much better than we have ever had, so going forward we will have growth across all segments - cars, exports, tractors, scooters and even the passenger car segment. So the next six months look great.

Q: Could you give us some numbers, this Rs 10 lakh that you have achieved this month, is that the run rate that will sustain up until March?

A: I think we should do better. We have forecasted Rs 10 lakh run rate for this quarter (Q3) and in the last quarter (Q2) we hope to have a higher run rate.

Q: You also have a significant contribution coming from exports, exports has been growing very well for the company. Given the benefit of rupee depreciation that you all have could you eek out some margin gains for the company?

A: Obviously if the rupee gets depreciated we gain on the export front so clearly that will reflect in our results.

Q: How much has it been the benefit to margins?

A: I wouldn't be able to comment on that at this moment, but clearly there is a benefit.

Q: Can you break this sector wise, which sector has done the best for you and going forward what sector will drive the growth?

A: Tractors have done exceedingly well, we have grown almost 40 percent over last year. Scooters have done excellent, we have grown 60 percent and exports have also grown. Next six months we hope exports will grow around 20 percent and passenger car market which has been lying dormant will also be a big growth factor for us simply because all the new models that are coming out from Nissan or from Maruti Suzuki , we are going to be single source on them. So we are already the single source for the Duster, Honda Amaze. So Maruti launches next year will have ourselves as single source.

Q: Any capex plans the company has?

A: Right now we are enjoying the fruits of capex we have done in the past. We have projects in mind and we are working on them at the same time but nothing to be announced at the moment.



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