Revenues for Suprajit Engineering have grown over 20 percent and margins have expanded by 500 basis points year-on-year (YoY). Ajith Rai, CMD at Suprajit Engineering is of the view that port disruptions and commodity prices have impacted margins, which he expects to ease out in Q4.

"In terms of margin performance, Q3 was an exceptional quarter. However, with the kind of commodity prices shooting up, and there is a limited amount that we can possibly pass on to customers, I think some amount of dampening might happen. However, the endeavor is to make sure that we continue to perform well on the margin front. On an overall basis, I would say that historically we have been operating at very good margin in auto component business of 14-16%. I think that kind of margin is certainly sustainable; I continue to guide in that line," he told CNBC-TV18.

He elaborated that shortage of containers has impacted performance, which was further affected by cost of container movement increasing three fold.

"Shortage of containers, shipment delays and port congestion has led to container cost . I am told that today the cost of a container movement from China to India or India to the US is 3x of what it was 6 months ago. So, the container cost is not a major part of our cost structure, but it adds to the cost and it increases our inventory in the pipeline because we need to push more and more product because it takes more time. So, overall there is an issue of supply chain management," he explained.

Rai spoke of starting an additional plant for the cable division and adding capacity via the Phoenix Lamps Division.

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(Edited by : Jerome Anthony)