Anuj Talwar, Joint MD, Talbros Automotive Components, talks about what led to good performance in Q2FY21 and his expectation in the next remaining quarters of the financial year, segment-wise demand, export market, PLI Scheme and expansion plans among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:
Q: Q2 numbers were exceptionally good, especially in terms of both margin and profit. What were the key reasons and will the same momentum will continue in the future as well?
A: The cost-cutting measures that were implemented from 2018-19 onwards have been very beneficial for us and there was a pent-up demand, also. And a bit thing has come out that due to personal mobility; we have also got a lot of traction in our results. We are a hedge mobility company, who is supplying to every segment, like passenger vehicle, two-wheelers, three-wheelers, commercial, tractors and this has also helped us in the growth. I believe, the momentum will continue in the next two quarters.
Q: Your major business comes from OEMs, which contributes around 73% to your revenue. What kind of levels have you seen in October and November? Do you think that better performance will be seen during the festive season from the demand point of view? Also, talk about the segments which have performed better as compared to the others?
A: October and November numbers are good for us. Our PV segment has shown good results, Maruti is doing very well. Apart from this, the tractor industry has also performed well. We also supply a lot in the CV segment, about 30% and in it our BSVI products which will increase the value-addition of the company is about to start. So, we can see an uptick in the CV segment, as it is being said by our OEMs. Also, our exports, which is about 25% of our turnover, is also showing strong signs to us. So, domestic is about 75% and exports are about 25% and the sings are very strong for it.
Q: As you are saying that exports are showing good tractions, so let us about the geographies that are performing better? There is a concern related to the second wave of CORONA across the world, especially in Europe and the US. How it has impacted your business and has it had any negative impact on you? Also, update us about your plans to enter new markets, if yes, then what kind of focus you will have there?
A: We export to different regions, like the US we have received good traction there; Europe it is showing good results and we have a lot of exports to the heavy vehicle segment of Europe and it is doing well. So, I dont think that it will have any major effect but slight slowness is seen December because that is calendar year closure. But our numbers are doing good in the next two quarters, there is no