Apr 11, 2013, 05.04 PM | Source: CNBC-TV18
Even though the car sales have gone down dramatically, it will not affect Motherson Sumi as the company is constantly adding new products, assures chairman Vivek Chaand Sehgal
Passenger car sales fell 7 percent in FY13 , their lowest in a decade amid expensive loans, rising fuel prices and overall economic slowdown. However, Sehgal expects his company's Q4 margin growth to be in same range as Q3. "2013-14 should be a very good year for us. We have huge orders coming. Our mirror company has done phenomenally well. You will see the Peguform portion of Motherson also doing very well," he told CNBC-TV18.
On the way forward, Sehgal says, "We have given a very clear guidance in 2010 that by 2014-15 we will be a plus USD 5 billion company."
Below is the verbatim transcript of his interview on CNBC-TV18
Q: How bad is the auto ancillary situation? Is it as bad as the auto sales situation?
A: The situation on the ground is obvious as the numbers do not lie, but these are times when companies restructure, rejig. These are breathers. To go to the next peak, you need a breather, so I would not read too much into the numbers. The different agencies involved in allowing this wonderful industry to grow further will have to see as to what can be done so that the pain is alleviated.
Q: It was a great third quarter that you reported. Even in QoQ, both your margins and revenues grew fairly robust, consolidated, standalone just about all parameters. Should we expect fourth quarter to be as good?
A: Motherson is always working on how it is going to do better and better. We always benchmark against ourselves. I am sure my teams are working very hard to ensure that we keep on this wonderful tradition.
Q: You had a 70 bps improvement in margins in QoQ, so should we expect that your margins in fourth quarter will be better directionally?
A: We hope so.
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Vivek Chaand Sehgal, Chairman of Motherson Sumi Sy