Yet to see significant improvement in semiconductor shortage issue: Minda Industries
Sunil Bohra, Group CFO, Minda Industries, said that there is no significant improvement in the semiconductor shortage issue, even though things haven't worsened per se. He expects that the semiconductor shortage issue will continue for some more months but will start to get better sometime in the middle of 2022.
As COVID cases surge in Europe, CNBC-TV18 spoke to Sunil Bohra, group CFO at Minda Industries, to understand how it’s impacting the auto ancillary business over there. Around 14 percent of the company’s revenue comes from international markets.
He said, “There is a significant impact in terms of volumes in Europe, volumes are down almost close to 30 percent plus and minus 5 percent here and there, which is a very sharp fall on a year-on-year perspective.”
He added, “Things are very volatile. The new variant continues to impact recovery, it has impacted a lot of international travels etc., So it's very difficult at this point to say how long this will last. We are currently working on minimising the impact of the industry volumes coming down and trying to optimise the cost, etc."
On semiconductor shortage, Bohra said, “The semiconductor shortage is here to stay for some time. We do expect this thing to sort of get better somewhere in the middle of 2022. There are pockets where there is still a challenge in terms of semiconductor shortage, and we will see the impact of that even in the coming quarter. So things are, I would say, not worsening but they are not improving significantly either.”
For full management commentary, watch the video.
(Edited by : Dipikka Ghosh)
First Published: Nov 30, 2021 1:23 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM