N Muthukumar, president and Chimiya MD of the company who looks after the India business.of the company addressed the call.

Highlights of the call:

It was a first conference call.

The company is a joint venture of Kalyani Group and Meritor Inc., USA

Meritor is no. 1 axel manufacturer and second largets in brake manufacturing

It saw a strong second quarter performance.

Q2 sales grew over 40% and PAT doubled.

CV market is upbeat but some minor concerns are there on the liquidity front.

Going forward, new product launches will power growth.

Capacity utilisation is around 85%. The management is comfortable of taking the company to next year.

The company would be adding another 25% capacity by March, 2019 to cater the growing demand.

Future, capex plan is of Rs 180 crore. Out of which 50% will be financed through internal accural and 50% will be loans.

Currently the company is near debt free with only working capital requirement.

Overall user markets are expected to grow by 12-15%.

Focus is on the domestic markets.

Ashok Leyland is it's largest customer followed by Mahindra.

Just 8% of sales came from the international market.

Most of the commercial vehicle customers like Ashok Leyland, Tata Motors, Mahindra, Daimler and Volvo-Eicher etc. are their top 5 clients, to whom the company supplies axles and brakes.

Off highway axles business accounts for 10% of sales however the company would continue to invest in that segment. For this segment it is working with the military and Caterpillar.

Expects to do sales of Rs 1900 crore in FY 2019. EBITDA will be at 12% and PBIT will be 9%.

CV industry is going through exciting times and so the company is taking up capex to increase capacity by 25%.

Second half will have impact of capex on interest and depreciation.