Varroc Engineering saw a recovery in business from lockdown lows in the second quarter as losses narrowed on year-on-year (YoY) basis and net debt reduced sequentially. TR Srinivasan, CFO, Varroc Engineering discussed the numbers in detail.
“Our priority and focus in the current financial year is to bring down net debt levels,” he said in an interview with CNBC-TV18.
“... because that had gone up a little above our comfort level during Q1 because of the COVID-related disruptions. We are focusing on bringing that down to more comfortable levels which we think we should reach by the end of the financial year,” Srinivasan added.
On PLI scheme, he said, “Production-linked incentive (PLI) scheme is a very good initiative by the government to encourage domestic manufacturing and investment.”
There are a lot of original equipment manufacturing (OEMs) looking to localise to reduce the uncertainty in the supply chain. The company is in active discussion with them to set up capacities, he said.
Varroc Engineering has made a fair amount of new investments in electric vehicle (EV) segment in terms of research and development (R&D) as well as manufacturing.
“There are more investments in the pipeline and that also should play to our benefit,” he added.
The company has a good portfolio for export market as well.
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(Edited by : Ajay Vaishnav)