SUPRAJIT - Suprajit Engineering Ltd. Share Price

Q: If you look at the gross margin for the quarter, we've seen one of the highest ever contribution margins in SCD, but opex costs remain elevated. Were there restructuring charges this quarter?

A: Yes, you're right about the strong gross margins. The elevated opex includes restructural charges, particularly related to employee reductions in Germany and operational moves from Juarez to Matamoros, all aimed at better efficiency. We expect these costs to continue until December as we complete our restructuring efforts.

Q: On Phoenix Lamps, how does the bankruptcy of a global player like Marelli benefit us, and what are the demand-supply dynamics now?

A: I won't name specifics, but we're already seeing increased inquiries for Phoenix Lamps following market consolidation. Competition loss is beneficial for us, as we stand to gain from their business, which supports our growth strategy in both domestic and export markets.

Q: How will SCS revenue fare for the full year given its past around $40 million?

A: For the current quarter, SCS's revenue shows an integration under Suprajit. While there will be some variations, projecting four times this quarter's revenue could give a rough idea for the year ahead.

Q: How is the restructuring in SCS progressing, and what are the future focus areas for the company?

A: By the end of the financial year, we aim for SCS to be fully integrated into the Suprajit Controls Division. Our focus will remain on global footprint expansion in cables and systems, capturing new growth opportunities, particularly in electronics and braking systems.

Q: Can we expect consistent high gross margins in the future?

A: I believe our gross margins will stay robust. With ongoing restructuring yielding operational efficiency, we anticipate continued improvement. However, exact future numbers are challenging to predict.

Q: What updates are there regarding ABS regulations?

A: The ABS regulation introduction faces pushback from OEMs, citing supply chain readiness issues and testing timelines. We're actively engaged, offering our insights, but it appears these changes won't materialize as quickly as initially indicated.

Q: How is the domestic cable market responding, particularly in aftermarket growth and market share?

A: We're strong in OEMs, and we're expanding in the aftermarket beyond Southern India. Sunroof cable production has begun, which should greatly increase our market relevance across varied applications. Our position as a technology provider is gaining traction.

Q: What does the company foresee as new initiatives in technologies and products?

A: Significant innovations are underway, with particular focus on throttle controls free from rare earth dependency and advanced actuator technologies. Our continuous R&D efforts are aimed at distinguishing us in the global marketplace.