Friday September 21, 03:00 PM
Hi-Tech Gears sees 20 pct growth in FY08 sales |
|
NEW DELHI (Reuters) - Auto component maker Hi-Tech Gears Ltd expects a 20 percent growth in sales in 2007/08, lower than the 33 percent growth it posted last year due to lower vehicle sales, a senior company official said.
"There is the flattening of the two-wheeler market and commercial vehicle market," Deep Kapuria, chairman and managing director, told Reuters on the sidelines of a conference.
"The profitability is under pressure, definitely," he said.
In 2006/07, Hi-Tech posted sales of about 3 billion rupees, 62 percent of which came from two-wheeler components and 25 percent from the four-wheeler components.
While domestic sales of two-wheelers fell 8.52 percent to 2.79 million units, sales of commercial vehicles are marginally up 3.43 percent to 169,411 for April-August, from a year ago.
Kapuria said the hardening rupee was also impacting the company.
"We are export driven, so we know the challenges of the hardening rupee," he said.
Hi-Tech's total export turnover in 2006/07 was 579.8 million rupees.
Kapuria said Hi-Tech saw a greater contribution from exports to revenue going forward.
"Our strategy is that one-third of our revenues are going to come from exports in the next three years," he said.
The company is scouting for joint-venture partners and acquisitions to expand its footprint abroad, he said.
|