On a standalone basis, for Jan-Mar 2016 quarter, new product launches supported volume growth of the company's key customers (M&M and TataMotors volumes increased ~11.9%). But the same was largely offset by a decline in steel prices (down 9% YoY) resulting in lower realisations and lower scrap prices (down 30% YoY).

The management is focusing on diversifying its standaloneoperations. Currently, its top two clients M&M and Tata Motors accountfor ~45% and ~10% of standalone revenue respectively, which is likely to comedown by 5-7% per year, going forward. This is mainly after the company'sthrust to acquire new OEM and penetrate further.

According to the management, steel and scrap prices have fallendrastically in the past six to eight quarters.

Raw material cost (mostly steel) is 52-55% of sales and scrap sale is 7-9% of sales. Steel prices havestarted recovering from the lows of 1QCY16. With thegovernment increasing the import duty on steel and minimumsupport price for steel, prices are expected to recover/stabilise,going forward.

On a consolidated basis, the management believes the revenuegrowth would be subdued in both domestic and overseas operations. However, the turnaround in various operations is goingsmoothly and is likely to result in EBITDA margin expansion, goingforward.

The company is targeting to double revenues and PAT over next 5 years.

The company's plan of improving India business margin from current ~9.4% in 9MCY15 to ~16%(levels of the parent) would be driven by volume growth, cost control andrationalization of product portfolio.

Jeco plant was closed down w.e.f 30th Nov 2015, and hence1QCY16 saw benefit of headcount reduction lowering ~200 headcounts resulting in saving of €8 million. However, full benefit from closurewill reflect over next 1-2 quarters.

Mahindra Forging Europe's (MFE) turnaround is progressing steadily with the ‘Phase 1' action (internal efficiency) being completed while ‘Phase 2' restructuring is ongoing with JECO plant already closed down.

MFE is also reviewing its product portfolio and eliminating low margins segments, thereby expanding margins.

A turnaround in the Metalcastello business has improved after MCI had taken restructuring actions last year.

Apart from Jeco plant closure, it istargeting optimization of product-process-location at its European operations. Ithas started with outsourcing of low value add/non-core operations likemachining and finishing operations.

The management has retained its view on reducing its debtgradually over the next two or three years.

For thesubsidiary, the turnaround strategy is progressing slower thanplanned in Germany.

All remaining European businesseshave maintained or improved their performance on a sequential basis.

The company is participating in all new projects of M&M and Tata Motors, with oldand new products.

The company has got orders from Ford, Renault and GM, while it is in process ofgetting orders from Volkswagen and Fiat. However, it would take around 2 years fromordering to commencement of commercial supplies.

The company expects supplies of new products to start contributing from4QCY16.

The company's maintenance capex stands at Rs 250-300 crore in current FY