Key highlights

Slow down in automotive sector towards end of CY 18 affected the overall performance for CY 18.

Roughly sales from auto segment would be around 30% of total sales. While the number keeps changing but this is the ballpark number. Autos will remain volatile throughout the year. So difficult to project in the coming year, but it will not worsen from the current levels.

Liquidity issues remained particularly for small foundry players in CY 18. Slow recovery is clearly visible.

The margins overall got affected due to adverse product mix. When there is a slowdown, everybody is after the cost cutting measures. So all these affects product mix and thus margins. Ideal margin for the company on a steady state is around 16%. Margin should eventually inch up towards that level, if overall economy picks up.

No price increase in CY 18 and volumes remained muted throughout the year as against an expected recovery.

Delisting of shares from BSE was a decision taken by board as it aims to remain listed only on one exchange ie NSE. No delisting or buy back plans as of now.

Also lower consumable sales also affected the margins. Consumables and high value added products has Ebidta margin of around 18-20% which generally results in overall higher margins for the company.

Overall sales and offtake is picking up gradually. Sale of high value added products should also pick up as the year progresses which should help margins.

Railways, metallurgy, capital goods, ferrous and non ferrous industries, speciality chemical segment etc are some segments which are doing well.

Company continues to operate at around 70-75% of installed capacity since past 2 years now. No major capex is aimed going forward.

The company has good market share in M&H CV segment. New products were introduced in CY 17, but overall demand was lower so didn't made an impact in overall sales in CY 18. These products should do well in CY 19.

There are no plans for higher exports and Parent doesn't see the subsidiary as a hub for export markets.

Overall expects a gradual recovery in sales and margins going forward. Quarterly fluctuations will remain very high due to lack of momentum and difficult to project on orders in a particular quarter.