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Moneycontrol Pro: Suprajit Engineering in focus; medium to long-term outlook promising

Suprajit Engineering is an auto ancillary company involved in the manufacturing of automotive and non-automotive cables. June quarter revenue fell 29.5 percent on a quarter-on-quarter basis. Other than the resurgence of COVID-19 revenue got impacted due to the shortage of semiconductor chips.

Suprajit Engineering is an auto ancillary company involved in the manufacturing of automotive and non-automotive cables. The company's June quarter revenue fell 29.5 percent on a quarter-on-quarter basis. Other than the resurgence of COVID-19 revenue got impacted due to the shortage of semiconductor chips.
Negative operating leverage impacted the overall EBITDA margin which contracted by around 239.1 basis points from a quarter. Though the near-term outlook looks muted due to the fear of another COVID wave the medium to long-term outlook is very positive for the company.
One of the key drivers for the demand is the structural shift towards personal vehicles following the pandemic as people prefer to avoid public transport.
The two-wheelers and passenger car segments could continue to see the significant pickup. Second, the company has ventured into new products that are getting more traction.
In the special segment of ‘Moneycontrol Pro Ideas For Profit’, Moneycontrol.com’s Nitin Agrawal gets more details on the company’s performance, going forward.
Watch the video for more
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