Moneycontrol
Get App
Last Updated : May 24, 2017 09:59 AM IST | Source: CNBC-TV18

Looking to bring down cost for customers: Hitachi

In an interview to CNBC-TV18, Gurmeet Singh, ED-Sales, Marketing & BP at Hitachi Homes spoke about the results and his outlook for the company.


Johnson Controls-Hitachi Air Conditioning India (Hitachi Homes) posted a good quarter four. The revenues up 41 percent, EBITDA managed to show a jump of around 50 percent and margin at 8.8 percent versus 8.2 percent.

In an interview to CNBC-TV18, Gurmeet Singh, ED-Sales, Marketing & BP at Hitachi Homes spoke about the results and his outlook for the company.

Below is the verbatim transcript of the interview.

Close

Surabhi: Revenue and margins have registered fairly good growth. Can you tell us what the drivers were and whether this kind of performance is sustainable?

A: I won't expect to be sustainable growth but as a percentage we are pretty okay; we are almost between 5 percent and 6 percent bracket with good margin and it is very much possible to continue growing at that pace. There should not be too much of an issue there.

Reema: You managed to improve your margins by nearly 60 bps in Q4. Is there scope for margin expansion from here on?

A: There is always a possibility but we are here to increase the revenues. Margin is only an incidental thing which comes across.

Sonia: There is a lot of competition in the sector and that is definitely heating up with the entry of LG and a lot of price cuts that have been taken etc? What is your strategy there? Will you be looking to cut price too anytime soon?

A: My take on this is simple. It is up to the competition to decide what prices they sell at. From our side we are a technology company and we would like to use and we are using our technology to bring the cost to the customer. We will use our technologies to make sure that the customer does not face the hike; the raw material hike or any hikes which happens. It is our endeavour to make sure our designs are such that we will be able to do innovations and bring the cost down for the customers.

As far as any other brand is concerned they have a right to decide the price they want to sell at. For us, we are sure that our brand is something that customer really values and he will be ready to pay the price that we decide for that product because price has never been our strategy. It is only a result of the inputs that we put in our products.

For entire interview, watch accompanying video.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on May 24, 2017 09:59 am
Sections
Follow us on