GNA Axles Ltd, a company engaged in the business of manufacturing auto components for the four-wheelers, has guided for a single-digit growth for the next fiscal year. In an interaction with CNBC-TV18, GNA Axles executive director Kulwin Seehra said that the company is expecting to post revenue growth of 7-8 percent in the next financial year.

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Seehra said that GNA Axles’ revenue in current year will be in the range of Rs 1,550-1,600 crore, which is nearly 20 percent higher from the previous year. However, he added that the company was not expecting that kind of double-digit growth in the next year.

Giving a break-up of sales, Seehra said that currently 55 percent of the company’s total sales come from exports, with the remaining 45 percent coming from the domestic market. Of the total exports, 60 percent of sales come from North America.

On the basis of vehicle category, Seehra said the company sees electric vehicles (EVs) accounting for 3-4 percent of total sales in the coming fiscal year. “Other than that, Rs 70-80 crore of sales will come from the SUV business,” he added.

In terms of profitability, Seehra said that the company aims to maintain EBITDA (earnings before interest, tax, depreciation and amortisation) margin in the range of 14.5-15 percent in the current as well as next year.

The company is also planning a capital expenditure of Rs 40-50 crore per year for the next two years, which would be funded through internal accruals, informed Seehra.

Shares of GNA Axles are currently trading 0.5 percent higher at Rs 925. The stock has nearly doubled over the last 12 months.

(Edited by : Rukmani Krishna)