Kross Eyes Double-Digit Growth In Commercial Vehicle Segment By March
CFO Kunal Rai said that achievement of the target depends on performance in the commercial vehicles and tractor segments in the second half.
Kross Ltd. expects to clock double-digit growth in the financial year 2024–25, depending on the performance in the medium and heavy commercial vehicle and tractor segments, according to the company’s Director and Chief Financial Officer Kunal Rai.
Rai told NDTV Profit that the the commercial vehicle component maker was already doing well in its tractor segment.
“We would be trying to do a double-digit growth in FY25, but it also depends on how the remaining six months go with the M&HCV and tractor segments. We are already doing well in the trailer segment and it is contributing around 44% towards the total topline,” he said.
“The medium and heavy commercial vehicle segment in H2 should be performing better, not to forget we had elections during the first quarter and the impact was there on the infrastructural activities and there were a lot of apprehensions. So, H2 should be better than H1,” the company's CFO added.
While talking about the performance in the last fiscal, Rai said that they will try to do better in the current period even if there is no growth in the M&HCV sector.
“As far as FY24 was concerned, the M&HCV segment did not see any growth as such. But, our tractor-trailer segment grew about 38% and we saw an overall growth of 27%,” he said.
The projected numbers in the second half of the financial year are already better but everything depends on how it pans out over the next six months, Rai explained.
The newly-listed company is planning to boost its capacity utilisation by foraying into the axle beam extrusion segment by the end of this year.
“We are investing in our forgings and will get a couple of forging presses from the IPO proceeds. We already are manufacturing castings as well and we are setting up a new line in the foundry as well,” the top executive said.
“From forging and casting, we are looking at utilisations of 65%, machining etc. at 70–72%,” Rai added.
He further noted that the company was looking to expand its export business.
“In Sweden and Japan, things have kicked off there and we are doing mass production as well. We are focusing on projects that would benefit our topline and margins,” he said.
Shares of Kross Ltd. closed at Rs 210.7 apiece, down 5.09%, on the BSE on Monday. The stock had touched an intraday low of Rs 207.5 per share.
