Wittur Elevator Components India pricing pressures from higher raw materials and overheads continued

The company has come under pressure on PBILDT’s margins due to increase in raw material and overhead prices, as well as write-off (sales tax liability and bad debts). Although write-offs were not high in FY22, pricing pressures from higher raw materials and overheads continued. For FY 2022, PBILDT’s margins fell to 0.88% from 1.69% in FY21, despite a 72% increase in Total operating income. The OEM revenue share in TOI has increased dramatically in recent years from 15% in Fy19 to 55% in FY22.

Although the company has transfer mechanisms, any short-term mismatches in the raw material and the end-product prices shall affect PBILDT margins.