Slowing demand in overseas markets may hit component maker Amtek Auto’s sales and volume in the December quarter but margins and domestic sales could improve, a top official has said.
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Chief financial officer Santosh Singhi told Reuters sales may fall in the US and Europe which together account for half its consolidated sales. Revenue from some overseas units had fallen in the July-September quarter, he added.
“Our big concern is that volumes may not pick up..I don’t see the markets in Europe improving any time soon,” he told Reuters.
“But at least the Indian markets are still somewhat positive and we expect a 5-7% growth in our domestic sales (for FY09),” he added.
Margins may benefit as prices of the supplier’s key input, steel, reduced in the previous months, he told the news agency.
“We should be able to expand our margins by 1-2% (for the December quarter).”
