Designed and maufacturer of vehicle bodies for commercial vehicles, CEBBCO gets 40-50% of its revenues from Tata Motors. Tata Motors, which is their biggest customer, has seen a massive run up over the last few days.
Ajay Gupta, Whole Time Executive Director of CEBBCO tells CNBC-TV18 about his company's FY12 guidance. He also outlines his companys future plans. Below is a verbatim transcript. Watch the accompanying video for more. Q: What kind of revenue growth are you expecting from Tata Motors in the remaining second half of this year? How much will it contribute by way of revenue?
A: Tata Motors is my largest customer. Going forward the basic growth story for CEBBCO remains the conversion from selling of chassis to selling of fully built vehicles. Historically, Tata Motors and all the other OEMs have been selling chassis which now they have changed the business model and have shifted to selling fully built vehicles in which the body is made by CEBBCO. This shift helps in growing our number substantially. Q: What is the change in margins on account of this business shifts that you are looking to do?
A: The margins would remain more or less steady at about 17-18%. Tata Motors currently sells about 18-20% of their total volume as fully built vehicles. Going forward, the intent in the entire industry is to shift to fully built vehicles only which means we would be seeing a growth of close to 5x in the coming years for us which is also taking place this year. That
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