Moneycontrol
Last Updated : Jan 02, 2018 03:20 PM IST | Source: CNBC-TV18

Expect to see more than 15% growth in FY19: Shivam Autotech

Shivam Autotech is buzzing in trade. The stock is up 118 percent in one year and 43 percent in the last six months. In an interview with CNBC-TV18, Neeraj Munjal, Managing Director of the company discussed about what has got the stock buzzing.

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Shivam Autotech is buzzing in trade. The stock is up 118 percent in one year and 43 percent in the last six months. In an interview with CNBC-TV18, Neeraj Munjal, Managing Director of the company discussed about what has got the stock buzzing.

The company is one of the largest manufacturers of gears in the country. Its major customer is Hero MotoCorp.

Recently the company invested Rs 200 crore in two new plants, one in Bengaluru and one in Rohtak. The Bangalore plant is focused on indigenisation of products for four-wheelers.

The company has also added customers like Maruti and Eicher Motors. Now the dependency has reduced and Hero MotoCorp is 70 percent of the total portfolio and 30 percent is other customers, which are going to ramp up next year with new investments, said Munjal.

We have invested in infrastructure and machinery so if the topline grows, the bottomline will also grow accordingly, he added.

Infrastructure wise we have done capex. Ramp up is going on with new and existing customers. The forecast for this year looks good, all our customers are pulling material, so there would be additional line balancing required, he further mentioned.

Total current debt of the company is around Rs 330 crore and average borrowing cost is around 9.5 percent, he said.

Speaking on growth, he said that he expects to see more than 15 percent growth in FY19 because new products and new projects are lined up.

For full interview, watch accompanying video...
First Published on Jan 2, 2018 03:20 pm

tags #Business

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