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S Ram, Director of the company preside over the meeting in the absence of S Narayanan, Chairman of the company.Key takeaways of the AGM by Capital Mkt;
Sale of spare parts of the company is to a large extent dependent on the commercial vehicle segment and the transport operators' spend on spare parts are affected as the viability of transport operators is still hurt by both monthly rise in diesel prices as well as excess capacity in the long distance transport carrier industry. Due to initiatives of new union government regarding infrastructure and mining, there is a hope but the impact at ground level is not yet seen.The company's business in mining areas is already at bottom and the fallout of Supreme Court judgement cancelling captive coal mines allotted illegally will be negligible. Large capacities created in the last few years with multi axle goods carrying vehicles and shorter journey times enabled by the National Highway programmes, there appears to be excess capacity in long distance goods carriage still. The real revival in commercial vehicle segment happens only when there is operators' viability, which is still not there. For the fiscal year 2014-15, the company's performance in the first quarter was satisfactory, with sales increasing at near 10%. In the second quarter, sales is likely to be affected due to seasonal effect. But the company expects sales to regain momentum in the second half i.e. third and fourth quarter of the current fiscal. Overall the company feels this fiscal (FY2015) will also be tough & challenging one for the company. |
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