“We expect to put up prices even further in the next three quarters, so I believe the margin should go up. The price increase will be seen in the next three quarters gradually. While all indicators are strong and growth capacity utilisation is good, margin is picking up and input cost stabilising. The firm would still like to keep with its initial guidance for one more quarter before it starts any correction in terms of guidance,” K Srinivasan, managing director, CUMI, had told analysts recently.
"Overall, we have been saying this year we will grow at more than 15 per cent, which should take us to over Rs 27 billion in FY19," he said.
The company has been investing into developing new materials, and into over 250 Intellectual Property filings, including patents, design registrations, and trade mark.
On new products, the company plans to start small and allow it to scale up to commercially prove itself as viable. It has earmarked a capex of Rs 1.2 billion during the current fiscal year.
While the company was expecting the implementation of Goods and Services Tax (GST) to bring in more business in India, there has not been any great benefit till the first quarter of the year.
According to an earlier report, CUMI last year carried out various changes in its operation, and shifted some of its manufacturing operations from overseas to India.