Key highlights

In the last few quarters, there has been a pressure on the margins due to higher competition and lower offtake in higher value added products as a result of general lack of momentum in demand. As per the management, this is a temporary phenomenon and things will improve from the coming quarters.

Management expects CY 2017 to be better than CY 2016 and net sales growth of around 12%. Railways, metallurgy, ferrous and non ferrous industries, special chemical business are showing good traction, while heavy engineering, construction are picking up gradually.

Automobile industry continues to do well and company has good market share in M&H CV segment. But the business is more of volume than of value. Higher margins arise from general engineering, heavy engineering, construction and speciality segment.

Business from Railway segment should be better in CY 2017 on YoY basis.

Innovation, new products and new ways and mechanisms of doing business continued to help the company. More business came to the company from same customers. The company is aiming to add further customers and grab more market share in coming years.

Management expects the utilization ratio to improve continuously. Currently the company is operating at around 70-75% of the overall capacity, and it can increase further without any major capex being required. As per the management, they are ready and if the economy improves beyond the expectation, then will go for some capex.

There are no plans for higher exports and Parent doesn't see the subsidiary as a hub for export markets. Whatever exports happens are to group companies and in Asian geography.