Expect 13-14% EBITDA in FY16: Sona Koyo

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Growth decline in business from most customers led to marginal growth in second quarter, Sunjay Kapur, Vice-Chairman & MD of Sona Koyo told CNBC-TV18. However, the company benifitted from Maruti's growth, which holds a 6.9 percent stake in Sona Koyo, he said. The company’s net sales fell 3.2 percent to Rs 387.18 crore on consolidated basis. The net profit fell to Rs 6.6 crore from Rs 8.6 crore in the same period last year and total income came at Rs 389.2 crore for the second quarter.Kapur expects better growth in second half of the year with margins growing at 13-14 percent for the full year. Ramp-up in production and positive customer schedules will help growth, he said. Below is the verbatim transcript of Sunjay Kapur's interview with Nigel D'Souza & Surabhi Upadhyay on CNBC-TV18.Surabhi: It seems to be a sluggish quarter from what we can see optically in the numbers, how would you describe it?A: We have had some amount of growth compared to the last quarter. We have grown about 5 percent, we are growing on a back of Maruti story, which has had a tremendous amount of growth.Other customers have had degrowth so when you mix that all up together, we have had a marginal growth compared to the last quarter of this year. We are sitting at about 5 percent growth from last year. However, if you look at our numbers in our EBITDA, we have definitely had a good growth there. We have been able to bring down a lot of our material cost and it is at a level of about 66 percent which is good compared to everywhere even last year, it is better than last quarter. We have seen some growth in EBITDA margins.Surabhi: What about topline growth itself? You mentioned Maruti and looking at the way the demand environment is shaping up, what is the outlook that you can give us for the second half? Do you see better growth picking up because we are seeing some of these actual giants now pushing up volumes much higher, what is that going to mean for your business especially in the second half?A: We are expecting better numbers in the second half. We have got schedules from our customers which look a lot more positive than they did for the first half of the year. So second half looks a lot better. We are in process and we are ready to ramp up in terms of production and we hope to see much better numbers in the second half from across the board, not just Maruti but from manufacturers across the board.Nigel: You are saying that there is a growth of around 5 percent if I am not mistaken but is there some pressure on pricing because if we are looking at it then the numbers are showing on the topline a bit of a degrowth and also margins were looking quite good, you believe that sustainable, can we see better margins in the second half of the year?A: I am talking about quarter-to-quarter. From our Q1 to Q2, I am talking about the growth from there. So definitely this first half of the year is always like that except our margins are good and we will continue to have these kind of margins because we have brought a material cost -- this is the highest contribution we have ever had in the last five years, we have ever had in terms of contribution. Yes, we have got some employee cost where we need improvement but that is also dependent on increase in sales. So we are looking at a good second half in terms of the schedules that we have received so far from the domestic market as well as from the minor exports that we do.