It’s Eastern time.

TVS Srichakra shares his business outlook with Director P Vijayaraghavan. Refinement.

ET Now: What led to your sharp rise in profits this quarter?

P Vijayaraghavan: It is the result of good work. On the OEM side, the market has been good. Automakers continue to perform well. The growth in the first half of the current financial year is about 18%. According to OEMs, TVS tires are performing quite well.

We continue to expand the aftermarket. Overall growth is good, although exports from some European countries are underperforming. Market conditions are helping us.

During the quarter, we performed very well on material costs. Power and fuel costs have also come down and interest costs have also come down. This helped the company achieve significant growth in revenue and overall performance.

ET Now: What are your sales and profit targets for the next three to four quarters?

P Vijayaraghavan: That’s a good question. So far, we can see that the two-wheeler industry continues to perform well. They have exceeded expectations. The growth rate is around 18%. Aftermarket demand is also increasing.

ET Now: we also saw your company’s margins improve dramatically in the quarter, realizing 10.2% versus 10.2% 4.6% in the same period. How much more do you think they can improve on those levels?

P Vijayaraghavan: It is difficult to predict. Domestic and foreign exchange rates are starting to fluctuate. We are importing some raw materials like butyl rubber. In that sense, it also depends on the global situation.

In addition, the sentiment in the Indian market is good, but there are problems with commodity prices. We are not sure how they will perform in the coming months. Crude oil, rubber additives and synthetic rubber have all declined, but the exact decline is not yet clear.

India’s tire imports have increased not only for two-wheelers but also for trucks and cars. Outstanding. This will give some competition to companies like us, which are basically domestic companies.

So there are some factors. If we can continue to do a good job, we’ll be happy.