912.00 22.55 (2.54%)
Commenting on the performance, Mr. Rajeev Sikand, Group CEO, Alicon Castalloy said, “In Q2, we witnessed a recovery in demand in the domestic markets on the back of improved economic activity, which translated to higher overall volumes during the quarter. This could have been better but for the shortage of semi-conductors which has constrained production schedules for our customers. There was also an element of higher pricing of alloys during the period. The combination of these factors has enabled us to report consolidated revenues of Rs. 268.7 crore during the quarter, higher by 31% YoY and 27% QoQ.
Increased volumes and the resultant operating leverage have enabled us to deliver improved profitability. However, the compression in margin is optical due to the higher base driven by increase in input prices. Our contracts with our customers enable a 100% pass-through and we are actively engaging with them to shorten the lag. This will enable more rapid transmission of input prices, thereby protecting our working capital and cash flow position to a considerable extent.
In this quarter, we have announced several order wins with multiple existing and new OEMS, which further strengthen the growth visibility in the years ahead. We are encouraged to share that incremental orders to be executed over the next 5 years now aggregate over Rs. 3,000 crore. Further, we have built a portfolio of over 65 live parts in the EV business. We are confident that EV revenues will contribute 25% of overall revenues by FY2025-26.
While there are supply-side constraints in the shorter-term, from a longer run perspective, we are seeing very exciting times in the domestic auto industry. The recently announced PLI scheme along with the scrappage policy and FAME scheme work in favour of the domestic auto and auto components sectors in multiple ways. Even on the supply side, our ongoing interactions with our partners indicate that the RM issues are beginning to ease and with continual retail enquiries and the upcoming festive season, we remain positive that the volumes will see a steady uptick in the quarters ahead.”