K Ajith Kumar Rai, Chairman & Managing Director of the company addressed the call.

Highlights of the call

Sales grew 26.13% to Rs 319.05 crore in six months ended September 2014.

This is against domestic auto industry growth of 13-14%.

Global business now accounts for 20% against 13-14% last year.

EBIDTA grew 24.20% to Rs 45.14 crore

PBT grew 13.52% to Rs 35.62 crore

PAT grew 14.61% to Rs 24.99 crore

The company has seen some cyclical variations from aftermarket business. .

Onetime restructuring cost of Rs 50 lakh charged in P&L. That is why there is fall in profit margin in standalone entity. Going forward there will be no more one time restructuring costs.

Suprajit Engineering is India's largest automotive cable maker with an annual cable capacity of 150 mn cables.

The group has 15 plants; 14 in India and 1 in the UK, which also operates as a Tech Centre.

Its customer list includes most Indian automotive majors. It also exports to many marquee global customers.

The speedo cable assets of Pricol, Coimbatore, acquired under slump sale basis, have been moved to a new location at Bommasandra Industrial Area, Bangalore. All the equipments have been installed, trial runs were conducted and commercial production has started during October 2014. The company expects to consolidate this business and grow in the coming years.

Aftermarket cable operations at two separate plants have been regrouped into a single larger plant in Bommasandra Industrial Area, Bangalore. This is done to achieve better efficiency and focused management. The relocated plant has gone into full production during September 2014.

One of the plants recently vacated, has been identified to house the company's Tech and Innovation Centre in the future, after reconstruction. A senior Tech Centre Head has joined the company and the operations of the Tech Centre have started at the current Corporate Office, pending relocation in due course.

The company is in advanced stage of planning to set up a Tech and Business development centre in the US. This is expected to be in place within the next 3-6 months.

The company is trying to see if they can service OEMs in European markets.

The company has pursued its discussions with well-known European companies to explore and exploit the European aftermarket for cables, as a new business segment. This is expected to be in place in the next 3-6 months time.

Subsidiaries continue to perform well as visible in the consolidated results of the company. In view of certain recent changes in the Companies Act, Suprajit Automotive Private Limited has appointed Messrs. Haribhakti & Co., LLP, Chartered Accountants, as its statutory auditors.

The capacity expansion plan at Pathredi is in advanced stage of completion. Building activates are expected to be completed by December 2014 and commercial production will start during Q4 2014-15.

The company's proposal to setup a plant at Vallam-Vadagal, SIPCOT Industrial area, has been cleared by single window agency Guidance Bureau. The construction activities are expected to start during November 2014.

The company has approached Gujarat Industrial Development Corporation for additional land in and around Sanand / Ahmedabad to setup a cable plant. The company is looking at this place to expand seriously which was not there in previous plans. This is to service companies in and around Sanand area. How asked for 3 acre (at a cost of around Rs 5 crore) land from government for green field plant.

On completion of these 3 plants and balancing equipments at other plants, the group's annual capacity is expected to reach 225 million cables in line with earlier communication.

Margins are not as expected due to unorganized players. Once GST and other tax compliances are in place the company expects to get some of its margins back.

Second half will be slightly weaker than the first half for the auto industry. Also Maruti Chairman has said this in TV interview.

Domestic business accounted for 80-81% in first half.

2 wheeler accounted for 54% in first half.

Auto accounted for 31%.

Aftermarket accounted for 9%.

Non automotive accounted for 8% and it grew 45% in H1.

Since European market is weakening (OEM sales is tepid) the company is also looking at North American market.

Raw material prices are fairly stable at the moment but cannot say the same with confidence for next 2 quarters.

The company did not add any new customer in the quarter. Existing customers have given business and growth.