You do not give quarterly order book data. How has been the share of EVs in the overall order book? Has that increased? Could you give us any ideas on that front?
It is there in our statement that the EV segment is going strong and our order book also is looking up. But there is very little time to try and accumulate everything and put it in perspective. We do not want to give a wrong number out in the front but generally, the numbers are up and EVs share of businesses is increasing in our order book.
Your margins across businesses are at lows currently. When do we see a recovery because now even commodity prices have cooled off and energy prices have also sort of remained stable at least sequentially?
Your observation is correct. There are multiple challenges at the moment. One, the demand is very strong and robust. We are seeing the demand changing on a day-to-day basis. It keeps us on our toes and also the challenges are very high because the recovery and a lot of things are affected by multiple challenges.
For example, currencies are moving in different directions. There are logistic challenges, there are strikes in ports and all that and the good news is that the customers are going to support you. He is willing to do that but he needs proof. We have to accumulate the proof and put it together and we are not taking anything unless the money is already in the bank with us.
So we have put what the factual situation is. I think in the coming one-three months, the money will come in. It will all come into the bottom line. That is the current situation and so we take it with a pinch of salt. But that is the right thing to do.
Are you saying that you are still going to be negotiating with clients? Once that is finalised, can your margins improve going forward?
The bottom line is better. We do not give guided margins anyway. It is a work in progress. We need to do a lot to make the companies understand what extra costs they will have to pay. All that takes time. We are thinking that within the next 1-2 months or maybe a quarter, the bottom line will improve even for the past quarter.
Earlier you had mentioned that the chip situation would ease by September 2022 or may be in the December 2022 quarter. But given China’s restrictions on Taiwan, how do you see this impacting the overall shortage?
I do not think we can correlate it exactly with any country’s action on another country. I do not think it is all being made in the country that you are talking about but now the chips are being made in different parts of the world. It is something that we have to see but I think the car makers have enough time to try and resolve this particular issue. We are always hoping that it would be resolved soon and then the real numbers of the A segment and B segment cars would really grow. My guess is September is going to do very well after that.
Any target on the debt front? Where would it be by the end of this financial year?
I like it debt free but we have a lot of long term debt with us so it is very hard to say competitively priced but once the recovery starts, all that money will be there to reduce our debt but I would not be in a position to give you a number.
Consolidated revenue has improved across all parameters. This is despite supply side issues. Once the issues get resolved, what kind of revenue ramp up are you looking at?
The largest or the highest numbers that we have done, even better than the pre-Covid run. Even better than that, we believe that in the coming quarters we will see betterment of the revenues in the top vis-à-vis year on year numbers. It actually proves the point that the demand for cars is very robust and it is global.
If you take the certain things that have happened in the last quarter like the flooding in South Africa and so many problems that have happened globally, this is a record, where we have actually broken the compliant as the highest for SAMIL, including