Amara Raja reported a decent set of Q1 earnings. In an interview to CNBC-TV18, S Vijayanand, CEO of Amara Raja discussed company’s performance.
Amaron has seen strong demand in Q1. Overall we have about 14-15 percent revenue growth from the automotive segment. Lead price inflation also added up to some of the revenue numbers, so we had a strong Q1 in automotive segment, he said.
Lead has seen strong upward movement in the last eight months, he added.
We have taken a price hike in the beginning of April because we have seen a consistent firming up of lead during Q4. That has helped us recover some of the lead impact. If you look at a year as a whole, we believe 14-15 percent is a very sustainable margin, said Vijayanand.
On telecom he said, we have been holding around 65-70 percent of market share in telecom segment. In the short-term there will be margin pressure on telecom and in about a couple of quarters that should stabilise and we should gain back our position on that market.
While we would not see the margins would pick back to the original stage, we would still be able to maintain that in that healthy range of 14-16 percent EBITDA level, he further mentioned.
There are price sensitive product segments which are dominated by the unorganised sector, we see some market share gain in those segments due to goods and services tax (GST), he said.
For full interview, watch accompanying video...
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