The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Aditya Jhawar - Investec Bank plc, Research Division - Analyst
: A follow-up question on Europe. So we see there has been a sharp contraction in gross margin. And in the past, we -- our EBITDA margin was quite
volatile, considering the -- sometimes we used to outsource the manufacturing. But if you see the reduction in gross margin on a sequential basis,
almost by about 8 percentage points, any specific reason? And in -- considering we have done this consolidation of plant and we have arrived at
a equation of balance of outsourced manufacturing and in-house, what could be the sustainable EBITDA margin in the next couple of years?
Question: Aditya Jhawar - Investec Bank plc, Research Division - Analyst
: Absolutely. That's very helpful, Massimo. But again -- sorry to asking this question again. So this mix change that you mentioned that electric vehicle
proportion could have likely electric component proportion would likely increase and diesel had come down. So that same factor could be there,
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Question: Aditya Jhawar - Investec Bank plc, Research Division - Analyst
: Okay. That's quite helpful. Moving on to our India business. Considering what we are hearing that the inventory level of 2-wheelers is relatively
higher on the ground as compared to passenger cars, what is the outlook? Anurang, your customers would have shared with you in terms of
production. Could you -- are you seeing the momentum continuing in the next few months?
Question: Aditya Jhawar - Investec Bank plc, Research Division - Analyst
: Absolutely. My final question, if you see that performance on gross margin front has been pretty impressive. In this quarter, also, there was almost
a [INR 220] expansion on the stand-alone gross margin. So if you can help us understand to what extent it is driven by higher share of proprietary
business? And what could be the benefit from raw material? And essentially, that will give us good understanding on sustainability of the gross
margin.
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