Auto component manufacturer Varroc Engineering on Thursday said the company’s debt is on a downward trend and expects good third and fourth quarter.
In an interview to CNBC-TV18, T Srinivasan, group chief financial officer, said, “Margins are still evolving as supply chain is not fully stabilised because of various disruptions on and off. There is a second outbreak of COVID in Europe which is impacting availability of labour to some extent and which is putting pressure on volumes and hence, related inefficiencies. But we should be able to show an improving trend QoQ sequentially in Q3 and Q4.”
Srinivasan welcomed government’s Atmanirbhar initiative and was delighted after the union cabinet approved the Production Linked Incentives (PLI) scheme for 10 sectors.
On business front, he said, “Bajaj is over 50 percent of our India revenues and the company is a big and an important customer for us. The good thing about Bajaj is that the company is quite diversified and not just relying on the domestic market.”
For the entire interview, watch video.