Auto ancillary player Suprajit Engineering, which derives over half of its revenue from exports, sees 'minimal impact' of the additional 25 percent US tariffs, an exchange filing said on August 28, and the company will be exploring a 'full relief' from its customers.
"Most parts are not affected at all, but a small portion of exports with a possible tariff impact of about $0.5 million is estimated. This will be discussed with respective customers for full relief," the statement said.
Suprajit Engineering said it has carried out customs consultants in US to arrive at this assessment.
Shares of the company have reversed early losses, and is trading higher by over 0.5 percent, in-line with broad gains in the automotive space. Over the last one month, the shares are down 3.5 percent, and are lower by 5.6 percent on a YTD basis. The company has a market capitalisation of over Rs 6,200 crore.
The company counts on leading automotive players as clients, including Bajaj Auto, TVS Motors, Hero Motocorp, Piaggio Vehicles, BMW, Volkswagen and M&M, among others.
Read More: Jefferies sees GST cut boosting autos, backs M&M, Maruti; Hero Moto tops Nifty
"While we are doing this (reduce the tariff burden), we are also seeking relief on a near term basis. So, we are seeking support from the customers. Now we will need to see how this and where this tariff lands and our biggest concern here is the effect on OEM and end customers, particularly how it will affect the US economy and the global economy," MD and Group CEO NS Mohan said during the June quarter earnings call. "I believe that the tariff actually offers a good opportunity for us in the medium to long term than many of our competitors have."
Suprajit said the company's exposure to the US market stands at around $100-110 million, of which 70 percent is compliant with the United States-Mexico-Canada Agreement, implying the products meet the rules of origin outlined in the agreement, to ensure it originates from North America. As of Q1FY26, there has not been any impact related to tariffs on the company, Suprajit said.
"...our conversation so far with the customer is that about 30 plus percent have agreed to accept the increased tariffs," founder and chairman Ajith Kumar Rai said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
