Suprajit Engineering

The plans are certainly very big. From 75 million cables in FY10, they are already talking of 150 mn cables coming soon, once 110 mn cables capacity is onstream by Sep 2011.

This company has talked big before. This time round the visibility with Marquee client base is much improved. Is it gunning fro too much? doesn’t seem so looking at its debt management.

http://articles.economictimes.indiatimes.com/2011-03-25/news/29188524_1_excellent-growth-growth-rate-automotive-industry

ET Now,Mar 25, 2011, 02.26pm IST

You have a relatively dominant share in the automotive cable business and looking at the sort of growth that we are seeing in that sector would it be fair to assume that growth for you as a company would be extremely strong going ahead the next couple of years on a CAGR basis?

Yes, we had an excellent growth this year against the industry growth of about 26%-28% Suprajit has grown at about 45%-46%. Going forward with the Indian GDP growth expected to be in excess of 8% I think automotive industry will continue to clock strong and robust performance.

Our growth is not only linked with automotive growth but also with some of the new niche segments that we are looking at and in view of that we expect to grow even faster than the automotive industry as we go forward for the next couple of years.

So what is the growth rate that you are pegging for yourself because you also have capacity expansion plans, put all of this into perspective over the next 3 years what is the quantum of growth that you are expecting?

We had announced last year that we are growing our capacity of cable manufacturing from 75 million to 110 million which will be completed by September this year. Right now we are working our roadmap for the next couple of years and based on the initial projections that we have, we expect a strong growth and to meet this strong growth.

We are talking about expanding our capacity from the current 110 million to about 150 million cables that means from last year’s capacity of 75 million in another about 15 to 18 months time we are talking about doubling our capacity that would give an idea as to how we expect the growth to pan out. This is not only from the automotive space but we are talking about the new spaces that we are likely to focus on in the next couple of years.

So a 50% CAGR growth for the next 3 years is in the offing you think?

Well that is an ambitious target but as I said we grow at about 45% this year and if we assume that the next year automotive is growing at about 15% to 20% I do not see why Suprajit cannot grow at let say 25% to 30% and that will get again in the same phase for the following year. But that all depends up on how the industry grows but we are confident that we will beat the industry growth by about 10%.

A couple of updates Mr. Rai, one is that if I look at your list of vendors, you have almost all the leading automakers in the country aside of Maruti Suzuki, would we seeMaruti Suzukigetting added to the list of clients soon or you are not pursuing that?

Let me clarify, Maruti Suzuki is a customer of ours. We directly do not supply to them but as tier 1 and tier 2 we supply quite a significant quantity of cables to Maruti Suzuki. Let me also put a larger perspective, Suzuki Europe,BMW, Volkswagen,General Motorstwo-fold not only to India but also in the global markets.

So our customer list is fairly exhaustive and all encompassing, yes directly to Maruti we do not supply but there is a significant supply to Maruti through tier 1 vendor and we expect that Maruti will also be a direct customer at some time in the future.

From Maruti Suzuki toTata Motorsyou were looking at setting a unit in Sanand but the lacklustre volumes of Nano have resulted in some dilemma, volumes of Nano are now stabilising would you see putting up that facility?

We already have land in Sanand if I get your question right and this Tata Nano volumes have picked up quite nicely in the last couple of months. Although it went through some amount of hiccups as you all know. But I think Tata Nano will be a great success and that is why we are very clear that we will go to Sanand.

Right now we are supplying from our Vapi plant which is just about 250 km from the Tata Nano plant but once volumes stabilise we are starting our new plant there. At the moment we have got 2-3 other plants which are under advance stage of completion ands Sanand plant will be the next on the list of our priorities.

Last year you did a profit after tax of 22 odd crores, you were expanding capacity, you are also venturing into newer areas of work. Keeping all of this in mind you think that you would do may be a PAT of what around 35-40 crore in the next year by which I am assuming that you will probably touch around the PAT growth of 28 to 30 crore in the current financial year, is this a realistic possibility?

We do not really make a forward looking statement. It will suffice to say that our margins in the industry is one of the best. For example our EBITDA margin at about 20% on our net sales is best in the industry. Our profit before tax at about 13%-14% is again one of the best in the industry.

We continue to be one of the top performing auto components in terms of financial parameters. Our ROC is about 35%. Very few auto component industries have achieved this kind of number. Projecting the number for the next few years it is like crystal ball gazing. It is difficult to say. It depends how the automotive industry grows so I still stick to the point that we will out beat the industry growth and continue to perform in the top lets say 5% percentile auto component companies in this country.

For all of these expansion plans or the other avenues that you have would you need to raise any equity funds, sure you will need debt from time to time but would you have any equity fundraising plans over the next 3 to 6 months?

We have very strong cash flows, we have excellent bankers. In terms of equity dilution for our capex for domestic growth we do not see any requirement of additional equity capital. We have strong bankers, we got strong cash flows and we would be able to manage it. If on the other hand if some any interesting acquisition plans comes up that is a different story but otherwise for our domestic growth plans that I mentioned we have absolutely no plans of equity dilution.

Are you actively looking for acquisitions?

Well we have been looking for a while but we have not got the right fit. We continue to look at the opportunities both domestically and overseas which will fit our plans, which will fit our vision to emerge as one of the largest cable manufacturers or one of these products that we are in discussion. So if you get the right fit, yes. Did we look at opportunities, yes. Do we have anything right fit on the table, no but we will continue to look.

1 Like

Hi Donald,

To check Management claims of de-risking the business against domestic auto sales volatility, I created a small table. Interesting picture emerges.

If the Management achieves the numbers claimed for after-market and non-automotive business, then Yes, there is indeed a focus on de-risking as claimed. Dependence on domestic auto OEM sales would be down to some 64% by FY12 itself. Since the after-market and non-automotive markets are growing at much higher rates thandomesticauto sales (26% or so), this should augur well for the company in the next few years.

Perhaps you can include this as a question for the Management, and quiz them more on these lines and check their reaction:)

FY10

Contribution

FY11E

Contribution

FY12E

Contribution

After-Market

12.5

5.07%

25

8.11%

50

12.98%

Non-Auto

5

2.03%

15

4.87%

30

7.79%

Exports (15% of Total)

37

15.00%

46

15.00%

58

15.00%

Domestic

210

85.00%

262

85.00%

328

85.00%

Rest (Total -AM-Non-Auto-Exports)

192

77.90%

222

72.02%

248

64.24%

Total

246.61

308.26

385.33

Thanks. That's good encouraging data.

I tried to plot capacity, utilisation, cost of capacity creation, etc and see the long term record of Suprajit.

It looks like they spend about 10-12 cr for every 10 mn cables capacity addition. So for 35mn capacity addition they will spend about 35-40 cr, and for the next 40 mn addition in FY12, another 40-50 Cr. These typically get spread over 2 years or so, so Capex in any particular year does not look to exceed 25-30 Cr. This means the balance sheet will not be unduly streched.

Capacity utilisation too has not fallen below 70% mark in any of the years including recessionary years. Seems unlikely the recent capacity expansions will see great falls in capacity utilisation.

Suprajit Engineering Ltd

Mar 2010

Mar 2009

Mar 2008

Mar 2007

Mar 2006

Mar 2005

Mar 2004

Mar 2003

Mar 2002

Mar 2001

Mar 2000

Growth Snapshot

Capacity (Cr cables)

7.50

6.50

6.00

5.00

5.00

3.60

2.80

1.75

1.25

1.25

1.00

Sales (Cr cables)

6.43

6.23

5.30

3.97

3.67

Capacity Utilisation (%)

85.73%

95.78%

88.34%

79.31%

73.33%

Gross Fixed Assets (Cr)

78.58

76.49

71.86

54.07

28.85

27.53

25.38

19.64

11.46

8.40

8.36

Gross Fixed Assets/Capacity (Cr)

10.48

11.77

11.98

10.81

5.77

7.65

10.14

11.22

9.17

6.72

8.36

Gross Sales/Gross fixed Assets (x)

3.35

2.96

2.79

3.79

4.69

3.84

2.94

3.45

3.55

3.42

3.05

Net Sales/Net Fixed Assets (x)

3.44

2.96

2.74

3.75

4.51

3.67

2.75

3.27

3.46

3.28

2.90

Sales (Rs. Cr.)

246.61

206.35

179.85

184.26

117.75

92.03

72.78

58.95

35.58

24.86

21.98

Long Term Sales growth (%)

28.81%

-

-

-

-

-

-

-

-

-

-

PAT (Rs. Cr.)

22.17

9.05

7.99

10.43

12.80

9.79

8.34

5.18

2.96

2.18

2.03

Adj. EPS (Rs.)

1.85

0.75

0.67

0.87

1.07

0.82

0.69

0.86

0.49

0.39

0.36

Long Term EPS growth (%)

25.36%

-

-

-

-

-

-

-

-

-

-

1 Like

Questions for Suprajit Management

1). We are impressed by Suprajitâs long-term track record and especially the turnaround post FY2008. Going by 9month results FY11 looks to be another stellar year. Congratulations!

You had once talked of Suprajitâs vision of a Rs. 1000 Cr in annual sales. Thatâs about 4x current size. What are the important milestones on that journey? Where will that kind of growth come from, considering you practically dominate the 2-wheeler cables industry. How easy or difficult is it to scale up a high-volume, low-value (per unit) business?

2). The 2-wheeler cables segment is still some 60% of Sales. Your biggest customer still contributes some 18-20% of Sales. Top 3 customers account for over 50% of Sales!

These figures are astonishing and considered by some senior investors as risky. Also these are some factors cited by rating agencies like ICRA as constraints from assigning higher debt ratings to Suprajit. Whatâs the Management view on this? Is it business as usual or are there risk mitigation measures necessary & underway?

3). Several marquee brands have got added this year. BMW, Volkwagen, Nissan to name a few, apart from the John Deere win last year.

Each of these Global majorsâ annual cable buys must be in several tens of millions of dollars. For the first time, there is good visibility on how the Rs. 1000 Cr goal might be achieved. Kindly elaborate on what these wins mean for Suprajit, and your plans to get a greater share of the customers spend, the kind of competition you face in these accounts and from where. If possible kindly indicate the level of competitive/pricing advantages you enjoy over these global suppliers?

4). We have heard capacity is being enhanced from 75 Mn to 110 Mn cables by Sep 2010. In a 25 Mar, 2011 interview to ET you have been quoted talking of 150 Mn cables capacity within 12-18 months.

You have always talked about growing at a 5-10% plus higher than Industry growth, like that achieved in FY11. But these plans seem to be running much ahead (despite tempered domestic industry growth forecasts for FY12). Kindly take us through the reasons for this optimism or aggression. Have you made major progress with any of the existing global OEM accounts like John Deere, or ??

5). We looked at 10 year track record of Suprajit on Gross block additions, Sales and Capacity utilizations, Cash Flows & Funding to get a better idea on business growth. Thatâs a great record, Congratulations!

It looks like roughly you need to put in 10-12 Cr for every 10 Mn cable capacity. That would mean an outgo of 35-40 Cr (for reaching 110 Mn) and 40-50 Cr (for reaching 150 Mn). Given that these investments typically spread over 2 years, the annual Capex may not exceed 25-30 Cr in the next 2 years?? Please comment. Or will buying land (if needed) skew this picture?

6). Most investors, when they look at Suprajit Engineering, club it on the same level as other domestic auto ancilliary businesses. They fear any cyclicality in the auto industry growth may hurt Suprajit badly.

The seemingly ambitious capex plans underway are cited as being too risky. Suprajit did not come out unscathed from the last recession, they point out. If domestic and export OEM markets together face a slowdown, where will that leave Suprajit? How soon can after-market and non-automotive sales contribute something like 25-30% of Sales?? Will new customer additions from global majors save the day?? What exactly is Suprajit banking on that makes it confident that it is better-prepared today to face any slowdowns??

7). Suprajit must be eyeing a place in the top global cable manufacturers? Inorganic growths must be part of the plans, especially as you look to increase your share in the global cables supply pie.

When you look at acquisitions today, what kind of ticket size/funding requirement are you looking at typically? Where does China figure as a market in your plans? Whatâs your current engagement in China?

8). Chinese and other Eastern Markets/Competition. The low capex costs and low automation costs for cable manufacturing are possibly not unique to India.

There were some reports earlier on tie-ups with Chinese and/or Korean companies, even a plant in China? Whatâs the Management view on Chinese/Korean cable manufacturers â allies or competition? How significant is the threat in domestic markets in future? And how strong are these in Export markets and your strategies for countering them??

9). You have implemented oracle ERP across all locations, ISO/TS 16949 and other Quality control measures. You bought out control cables technology from Taiwan and improved on it over the years.

Tell us more on what makes Suprajit as it is today. What role has ERP played in real-time information flow, productivity and cost control measures? Quality being a given, you have often cited cost, delivery (locational advantages), and new product development as your competitive strengths. What role does technology play in going after major OEM orders, and how does Suprajit keep abreast? How & Why will your competitive advantage be sustainable?

10). The picture ahead looks very promising for Suprajit. Our best wishes.

What are the big challenges and the main threats in this promising journey for Suprajit?

Full interview at

http://articles.economictimes.indiatimes.com/2011-04-19/news/29447044_1_auto-sector-double-digit-growth-suprajit-engineering/2

(Page 2 of 2)

Auto sector to grow 15%-20% in next quarter: Suprajit Engineering

ET Now,Apr 19, 2011, 03.00pm IST

Tags:

Ajit Kumar Rai: We already have the land in possession. We have a Vapi Plant which is pretty close to Sanand which is just about 250 km so we still do daily deliveries to Nano. Nano production has been fairly stable in fact April manufacturing or production so far has been better than March. So, Nano seems to be doing even better than some of the other customers off take. But in terms of our own plans for Nano we still wanting to see Nano sort of stabilising at a very decent level, on a monthly chart. Once that happens for two-three months we will start over plans for Sanand.

ET Now: Correct me if my interpretation is wrong, are you sending a message across that yes production demand supply for the month of April is weak but you are fully confident that in coming months the April sluggishness will get over?

Ajit Kumar Rai: As I see it, April to June quarter the indications that you have from customer is quite robust. All I am saying is that the kind of 28%-29% year on year growth we had in the last two years may not be sustainable, it will be more like 15% to 20% but one month numbers should not be taken at its face value. Our current visibility with our customer is pretty robust actually and to add that we also supply to Tata’s LCV as well as HCV vehicle business and we have no communication from tata Motors that we should cut our production.

Arindam, two small corrections.

There are two export oriented units with SEL. One is at Doddaballapur which is a subsidiary and has done 26.75Cr during FY10 for automotive customers. 7.8Cr is the export done by SEL on standalone basis (Unit 9 at Bangalore is 100% EOU) which is for non-automotive customers.

Non-auto for FY10 is Rs.7.8Cr which is also export. Export only for automotive customers will be 26.75Cr. While Rs.7.8Cr can be included both for Non-auto and Exports but while totaling we have to separate out.

Also Domestic cannot be 210Cr. Because another subsidiary based at England has done Rs.24.48Cr during FY10.

Accordingly you have to make changes.

FY10

Contribution

FY11E

Contribution

FY12E

Contribution

After-Market

12.5

5.07%

25

8.11%

50

12.98%

Non-Auto

5

2.03%

15

4.87%

30

7.79%

Exports (15% of Total)

37

15.00%

46

15.00%

58

15.00%

Domestic

210

85.00%

262

85.00%

328

85.00%

Rest (Total -AM-Non-Auto-Exports)

192

77.90%

222

72.02%

248

64.24%

Total

246.61

308.26

385.33

Press release from Suprajith:

)- The consolidated sales grew to Rs. 37917.22 lakhs from Rs. 26578.78 lakhs, by 42.66%. The Profit After Tax increased to Rs. 3330.11 lakhs from Rs. 2216.92 lakhs, by 50.21%.

ï Stand alone sales grew to Rs.33044.63 lakhs from Rs.22689.51 lakhs by 45.64%. The Profit After Tax increased to Rs.3049.51 lakhs from Rs. 2181.05 lakhs by 39.82%.

ï With enhanced foreseeable business opportunities, the Company announces capacity expansion plan to increase the Companyâs capacity to 150 million cables, from the 100 million cables, last year.

ï Acquired 4.2 acres in Industrial area at Pathredi in Rajasthan, to set up a cable plant to meet the requirements of North Indian customers.

ï The Company acquired additional land and building in Bommasandra Industrial area to set up a brand new cable plant to meet the requirements of South Indian customers.

ï Capacity expansion plan at 100% EOU for the non-automotive cable segment is in the final stage of the implementation. Trial production is expected to start in June 2011.

ï Brand new 4-wheeler plant at Chakan is in advanced stage of implementation and is expected to start commercial production by end September 2011.

ï The Company has bagged new orders during the year from some marquee customers like BMW, Volkswagen, Nissan, Brose, John Dere and additional orders from existing domestic and international customers.

ï Gills Cables Limited, a wholly owned subsidiary of the Company has changed its name to Suprajit Europe Limited.

Thanks Naga, The Suprajit momentum continues!

The good part is Operating margins are maintained at between 17-18% (vs historical 15%). The replacement market, non-auto, and export markets all seem to be contributing.

Despite the domestic overall auto-market slowing down, Suprajit may still manage to grow at 30% plus. Newer capacities in non-auto should become available from Q2, and Chakan plant by Q3 - that would take capacities to 110 mn; and new plans announced for taking this to 150 mn. Judging by the plans/announcements of the company there does not seem to be any slowdown!!! Its always been my contention that Suprajit Engineering should not be clubbed with other autoancillaries!

After persistent efforts of more than a year:), we finally have an appointment to meet Suprajit MD Ajith Rai, on June 3rd morning.

We will look to get answered the queries compiled earlier (& posted on this forum) . Should you have any fresh questions, please post them here by eod, today.

-Donald

Hi Guys,

The much awaited Suprajit Management Q&A, June 03, 2011 updated!

We have enjoyed putting this together with help from members. The Management Q&A was very insightful for us, and were energised enough to capture this immediately and share with you all, the same day!

This is the first-cut -straight form memory. May go through a few refinements n minor details in the next couple of days. Nagabrahma, as usual took copious notes and can help us with the refinements, he also had some additional questions - will request him to share those details as well.

Do share your feedback on the Management Q&A -anything that will encourage and help us improve. A request - Do participate more in these discussions, help us collate questions from all angles, no question is big or small, if it helps us probe deeper, we throw it at Management:).

These are time-consuming exercises, takes a lot of passion and hard work to get a comprehensive job done. Sometimes a lot of follow-up is needed just to get through to the top man to consider giving us his time. Suprajit took us solid 1.5 yrs of persistent follow-through. We hope efforts like this will encourage more of you to put your hands up, do some legwork on your own, participate keenly and contribute to our community effort!

The nexton our radaris the very promising Shilpa Medicare! Shilpa Medicare Management too, like Suprajit is not keen to meet analysts. Pharma is a tough field to get on top of I know, but a handful of us have been doing our homework for the past week or more, extensive data is now available in this Shilpa Medicare discussion thread. If we make a good job of collating questions for Shilpa, I promise you (on ValuePickr’s behalf), we will land a Management Q&A session at Shilpa, sooner than later! We will make it happen.

But for that to happen I need, ValuePickr needs, a bigger show of hands! Shall we?? I am open to all kinds of bribing, just tell me what…:slight_smile:

-Donald

1 Like

Thanks Donald and Nagabrahma!

Excellent and exhaustive set of questions as always.I’ll try to contribute more frequently here. Buy youself a drink from me :slight_smile:

I am unable to post the following message in the Q&A with the Management Link. Hence I am posting it here.

As usual, Donald has covered all the important points/discussions with the management. Just few from my side:

  1. Their latest corporate presentation claims that they have 100 million cables production during FY11. So there should not be much worry about the aggressive capacity expansion. Infact he said that they may have to start planning for additional capacity by September 2011 if everything goes well

  2. To a question of how much capacity they can expand further without purchase of land (excluding the two new purchases of land at Rajasthan and B’lore), CS said that they can expand upto 200 million capacity. Mr. Rai confirmed that capacity expansion can be done at a location based on the customer requirement.

In a year or two, Honda (makers of Activa) are coming up with a plant at Hoskote, Bangalore. If their demand is huge and if they insists, then Suprajit has to put up a new plant near to their factory inspite of having extra capacity/land at the existing locations.

He mentioned that if the vacant lands are revalued then the company reserves would go up further

  1. Very few of us know that they have 100% market share for LCV segment (eventhough the demand is no where comparable to that of 2-wheeler)

  2. Their main USP is clear cut focus that Customer is King and respond immediately to their needs at any point of time within short notice.

  3. One of the customer who was not ready to meet Suprajit in the initial days, had shortlisted 14 ancillary units a year back to start their units along with them at Pantnagar. Suprajit was one among them. He says, he kept knocking at each and every customer again and again till they get the business

  4. Export market potential is very huge but it will take time. Very difficult to predict how much would be export sales when they reach 1000Cr sales

  5. Mr. Rai is a regular buyer of Suprajit shares. When it was asked, is it because he is confident about the company’s growth or does not invest in any other companies or assets, he said no comments and maintains that he has been buying the company shares since it was listed whenever he has money

  6. Suprajit Chemicals Private Limited, is a company promoted by Chairman along with another promoter. Due to pollution issues, they have closed down the factory and sold the land along with the buildings to Suprajit recently. With that money, Mr. Chairman has bought some more Suprajit shares through this company

Great job by Naga & Donald.

Thanks Naga for the updates. These are important points.

Btw you do have Collaborator rights & privileges, so you should have been able to edit the Management Q&A section. Will check, Next time you have a problem, please call me.

Anyone who does good amount of value-add to the community, gets editing rights for many content pieces. So far only 5-6 guys have put up their hands! Lets see more hands please! Only condition you have to work hard on a couple of investigations!

Thanks Donald & NAga. You have extracted much form this 1 hour interview - by getting under the skin of this story. It is a great story in the making!

Only risk is the business environment. Can opportunities dry up, if there is a prolonged slowdown in auto sector?

Donald - The pattern of questioning was great. It had a nice flow. The MD must have been impressed with you guys:) Can we have a copy of the Investor Presentation?

Loved it! This level of interaction with Management is great - It does wonders for the conviction levels. Even though I was not there,by the time I read through I am clear on a couple of things:

a) Opportunity before the company is BIG

b) Scaling up to address the opportunity does not seem to be a problem, Strong BS & strong cash flows. Product Quality & cost leadership are competitive advantages

c) Will the business environment remain conducive to growth? is the question I need to think about

investor presentation copy, please

Again great job Donald & Naga

Thanks everyone for the kind words & encouragement. I only hope this inspires more of you to come forward and join us in this work, whenever you can, every small bit counts.

Trying to understand the business - sizing up the opportunities and challenges - is a nice game I have started enjoying. Its intellectually challenging and can be very rewarding, in all ways. Try it, you’ll get hooked!

A plus is the experience of interacting with Senior Management! Its fascinating to meet people who have created successful businesses from scratch, understand how they got started, understand their grit and their struggles, and get a sense of - Can they go to the next level? that itself is a continuous education! I’m loving it:)

All those who want the Suprajit Investor Presentation (its bulky), please drop a mail to Editor at ValuePickr.com. Thatway the editor gets too know too some of the lurkers in our forums:). The investor presentation has 1 very important slide a comparison with similar sized auto-ancillary peers -progress on several parameters over 5 years -that can bring more conviction, that this company is one of the best candidates to execute the apportunities before it!

But only those who write in to the Editor, get a copy!

Cheers

Donald

Great Work, Donald & Naga. If one look at the long term track record 10yr+, it has been a huge performer. They have consistently grown @ of close to 30%.

Regards,

Ayush

Terrific managment interview. Congrats Donalad & Naga.

What i could interpret from the interview is that they have done exceedingly well in an industry where it is not easy to build competitive advantages. As Naga said earlier, they have been really able to execute customer is king philosphy. This goes a long way to defend market share. Lets hope they continue to execute and grow.

Regards

First of thanks for the wonderful Q&A with the management. Really informative.

Although the future looks bright for Suprajit there could be several ‘speed breakers’ for the company in the short term.

Auto sector is seeing a considerable slowdown & in any slow down worst affected are the OEM/auto ancillary suppliers & Suprajit having huge margins will be asked to cut prices.

Second with Maruti’s strike at Manesar companies output may have reduced & inventories piled up(this may not be a big dent as its not a major supplier to Maruti)

Third with inflation commodity prices have shot up & key inputs like steel.etc have become costlier which could lead to margin pressure.

Fourth there is not gonna be any significant capacity addition for next 2 years (from 100 mn to 110 Mn). Most capacity addition will reflect fully in Fy14(110 to 150 Mn)which is far out

My strategy is to look out for Q1 results, something tells me its not going to be very good. WIll make a decision post the Q1 result.

Boarders feedback (esp. Naga/Donald) will be appreciated

Suprajit derives 60% plus revenues from 2 wheelers, which is growing decently. Mr Ajith Rai has maintained that they have not seen slowdowns in April & May in interviews on CNBC. He had also maintained that Tata group order bookings were robust. Incidentally Suprajit mentioned they are the sole suppliers in the LCV segment to the whole industry (not a big segment though)

Its a good idea to watch the Q4 numbers. Personally I think it will be difficult to find another auto ancilliary that is as diversified across OEM customers and across segments. It should fare better than industry and most players. In the general gloom about Auto, if Suprajit stock price suffers that should be welcome as its business is likely to outperform industry growth by 10%.