Shortage of semiconductor in auto space hit sales: Vardhman Special

Vardhman Special Steels Ltd on Wednesday said the shortage of semiconductors in the automobile sector has hit sales.

In an interview with CNBC-TV18, Sachit Jain, vice chairman and managing director said, "The semiconductor issue is affecting the production of car manufacturers whereas demand for cars is high. So, for us, the sales are a bit lower than what we anticipated, but we still stand by our earlier forecasts of about 165,000-170,000 tonne for the full year."

On price rise, Jain said, "Vardhman is still talking to the manufacturers and hopes that before the end of the quarter, the company will see the price increase. However, the company is looking at a much lower level now."

Jain said the company is looking at a price increase of Rs 2,000-2,500 per tonne.

According to him, additional capacity should come in by the end of the next financial year, "We have a shutdown for the furnace coming up in November this year. Then, we have a shutdown coming in November 2022 for our rolling mill. Once all the expansions are done, we should get the environmental approval. So, we expect the production to increase towards the latter part of the next financial year (FY23)."