Key Points of the call:

Sona Koyo Steering Systems has reported a consolidated total income from operations of Rs 348.27 crore and a net profit of Rs 5.17 crore for the quarter ended Jun 16. For the quarter ended Jun 2015 the consolidated total income from operations was Rs 374.67 crore and net profit was Rs 4.14 crore.

On a standalone basis, revenue increased 2% to Rs 262 crore. PAT increased 77% to Rs 3.1 crore.

Raw material cost declined to 66% from 67% a year back. Huge effort of localization helped to bring it down from 72% few years back.

Ebitda margin for Q1FY17 improved to 11.5% from 10.7%.

The auto industry has seen growth in PV segment mainly due to growth in the UV segment. The drop in PC segment has been due to some incidents at Maruti. The loss of sales of Nissan and Honda have been due to some one-time inventory management efforts which have been undertaken.

SIAM projects a 6-9% growth in passenger car segment in current year on back of new launches and monsoon.

The company expects the first prototype of electronic power assist module (EPAM) to be delivered in 2^nd half of next FY in the export market. In the domestic market, it expects sales to increase by 10% with first customer in current year.

The company is in talk with many Farm equipment manufacturers to grow its EPAM business. The product to be delivered to Escorts is expected to go into trial model. Besides samples to be delivered to another customer is also under evaluation.

In the long term, the company plans to deliver 50,000 units in export markets in a span of 20-24 months' time.

The company has done Rs 7.5 crore business from EPAM in current year. It will cross Rs 33.8 crore it did last year.

The company expect industry volume growth to be around 7-8%.

The management wants some more time to ascertain the impact of GST on the company's business.

The working capital cycle stands between Rs 30-50 crore.

The company has capex plan of Rs 65 crore for current year.