Management Interviews – GNA Axles, GNFC

GNA Axles, Kulween Sheera, ED

  • Demand outlook is good for Exports as well as domestic, Off-road as well as commercial vehicles
  • Off-highway (Tractors) domestic market can see growth at 7-8% in coming year
  • Order flows - 70-75crs per month overall (Exports + Domestic)
  • Our sales consists of 50% off highway and 50% CV's
  • Margins will be impacted in short term due to increase in steel prices
  • Once prices are stabilized we can expect 15-16% margins
  • Market share in tractors is 50-55%, we are increasing some capacity and once machines are in place we can cater to more clients
  • 50% of our sales is from exports, expect growth of 10-15% in exports
  • Expect 15-20% overall growth for FY 19, mainly lead by volume growth
  • Right now total capacity is 4 million components and utilization is 80-85%
  • In 18-19 there will be addition of 500,000 components in existing setup and In 19-20 more 500,000 components in new setup

Full Interview :

https://www.youtube.com/watch?v=mGrTwE40Fak

 

GNFC – Rajiv Gupta, MD

  • TDI demand is very steady, we have 5000 tonnes of export backlog of TDI
  • TDI prices are hovering around 4000-4200 $ except a few erratic price offerings by some companies
  • We have improved our capacity utilizations from 73% to 93% (FY18) and this year our target is 110%
  • Squared off debt of 880 crs this fiscal
  • Brought down working capital from 1700 crs 3 years back to level of 225 crs, our target is to make it zero
  • Some of the plants have done very well like Aniline, Formic acid, Technical grade urea and Ehyl Acetate
  • Our company should not be evaluated only in terms of TDI business, in last 3 years we have registered a growth of 90% in non TDI business
  • Non TDI segment is also doing well
  • Board has authorized capex in Acetic acid and Formic acid
  • We have made our self completely insulated as far as any water crisis are concerned

Full interview:

https://www.youtube.com/watch?v=4u656NIIeY0

 

Leave a Reply

Your email address will not be published. Required fields are marked *