Key Highlights

Better product mix, lower raw material costs and other cost control measures has lead to higher margins in CY 2016.

There was a volume growth of around 9% in CY 2016 and management expects around 10% volume growth for CY 2017.

Going forward, while prices of raw material have increased, the company will ensure better product mix and will take price increases, to maintain the margins.

The company continued to operate at around 75% of installed capacity, as the user industries be it industrials, power etc are operating at lower capacities while auto segment continued to do well. Motors, alternators, transporters, fans, electrical machining, capacitors and broader sub segments to which the company caters to.

Company has realigned and modernized its plants. It is ready for the new products and product lines which the Parent wants to introduce in India.

Going forward, management expects the company to do well due to more product introduction from the Parent and better prospects for electrical industrial and power segment. Initiatives on Smart city and replacement of out dated electrical equipments will also auger well for the company in future.

Export to Parent stands at around 5% and most of the exports are to South Asian countries. Export to Parent will gradually improve every year. But the focus of the Parent remains on India.