Rico Auto expects FY22 growth at 25% as growth momentum shifts gears

Arvind Kapur, CMD of Rico Auto Industries, expects a 25 percent growth in FY22.

“This year in the first quarter, we would grow at least by 25-30 percent of whatever we did last year. So, our growth this year would be about 25 percent for definite plus another 20-25 percent from the additional orders that we will have from our customers from domestic and export markets,” he said.

"Exports have gone up, the car and two-wheeler businesses are picking up and the commercial vehicle (CV) business is also picking up. I think, this year should be fairly good for us,” he added.

In terms of raw material cost, he said, “The pass-through of increase in raw material cost can take almost a year to cover up. we are hoping that the increase of raw material, which was almost 30-40 percent last year, won’t happen this year and hopefully we will recover all our losses that we incurred last year.”

On debt repayment plan, Kapur mentioned, “The total debt on books is about Rs 475 crore. Debt is under control, our repayment plan is also good.”