Sona Koyo: Growth slowdown in FY09

Sona Koyo Steering Systems expects slower sales growth in FY09, as a result of a tight monetary policy hurting car demand. However, the company is hopeful of better margins on increasing local sourcing.

‘We expect a 10-12 percent growth in sales in 2008-09,’ said Surinder Kapur, chairman and MD, Sona Koyo. For FY 2007-08, Sona Koyo's net sales rose 17.7 percent on year to Rs 684 crore. The company expects better margins in the current fiscal, due to increased local sourcing for its column type electric power steering system, which makes up about 30 percent of its annual sales.