group bosch and bharat forge have reported a decline ranging between 2535 per cent in their profits for the quarter ended june 30 2019companyprofit q1 fy20profit change over q1 fy19revenue q1 fy20revenue change over q1 fy19motherson sumirs 36064 crore416rs 16 79253 crore136minda industriesrs 56 crore30rs 1440 crore1boschrs 280 crore35rs 277882 crore135bharat forge standaloners 174 crore258rs 13466 crore9although tier i have a much higher percentage in terms of value they remain 30 per cent in volumesaccording to pavethra ponniah vice president sector head icra decline in revenue and stressed working capital for the larger companies have delayed the payments to tier ii companies further hindering their working capitalicra in its report estimated a cut back in capex ranging between 1525 per cent as players in the auto component sector are taking a relook at their capital expenditure plansat a time when it is crucial to manage the cash flow the companies are bucking up to stay one step ahead of breakeven through exports and expanding the reach to multiple oems auto component industry is a net importer with a deficit of about rs 23000 crore with imports standing at rs 123 lakh crore as against exports of rs 106 lakh crore sunil arora md aip said given the slowdown in the domestic market we have reduced our growth target by 8 per cent however the exports did not see any significant decline thus the focus inclines towards exports and we are trying to push 50 per cent of the volume through exportslast year fy1819 auto parts industry reported a year on year growth of 171 per cent at rs 106 lakh crore in exports which is an important area to derisk the business specially for the small players they can ship in the aftermarket where our automakers are currently shippingwhile adding new customer is another natural derisking strategy steelbird international a midsize parts maker has added piaggio as their client to help mitigate the sales volume according to manav kapur executive director steelbird international last two months have been negative 20 per cent year on year in order to sustain the slowdown getting new oems on board is working well for the company to push volumes kapur saidmeanwhile these companies are likely to get a marginal benefit from reduction in corporate tax as per the industry experts the revised corporate tax 22 per cent will not benefit these companies more than 2 per cent as they already belonged to revenue slab of less than rs 400 croregoing forward ponniah feels that the squeeze in capital is temporary as it is the aftereffect of economic slowdown but one of the major challenges posed in the future is the investments for technology upgradation with bsvi norms kicking in smaller ones do not have the technology to work around it and fulfilling the technology requirement will need a lot of capital help has to come from the tier i and oems to build the value chain and ensure the scalability of