Anticipating more orders from the US-headquartered Eaton Group. JMT Auto is looking to invest Rs 200-250 crore as capex to shore up production capacities, primarily at its Jamshedpur facility.
According to the auto component maker’s chief executive officer Sanjay Tiku, investments will be made in phases through a mix of internal accruals and debt.
“The capex will mostly include brownfield expansion of Jamshedpur facilities; and some addition to Dharwad. Investments will come across a three-year-period. If required greenfield expansion can also be explored at a later stage,” he was quoted saying by Business Line.
“Our EBITDA margins are around 17-18 per cent. So if we plough back 50 per cent of the profit towards capex we will end up investing Rs 100 crore in three years and partly through debt,” Tiku added.