Morning and welcome to the presentation of our results for the second quarter of 2022. Available today for the question and answer session are Marcos, our president and director. We would like to let you know that this video conference is being recorded and will be available on the company's site. For those of you who need simultaneous translation, we have this tool available on the little globe with interpretation on the bottom of your Zoom screen. Click on it and choose your language of preference. You also have the possibility of silencing the original audio by clicking on the mute original audio. If you have questions, click on the Q&A icon on the bottom of your screen. You'll be requested to open your audio so you can ask your questions.
If you don't want to open your microphone and ask your question live, just let us know and our operator will read your questions. Any questions regarding forecast for the company results are beliefs and forecasts by our directors, and by the information available to us at this time. They are not statements, and they can depend on circumstances that may or may not happen. I'd like to give the floor to Mr. Marcos Oliveira to start the presentation. You can start. Good morning and welcome to the results video conference for the second quarter of 2022 of Iochpe-Maxion. The second quarter of 2022 was still marked by the global economic and geopolitical uncertainties and the bottlenecks in the supply chain, especially with regards to semiconductors, the historically high inflation levels and growing interest rates around the world.
Even in the face of this scenario, we have once again obtained a robust performance. The global production of light vehicles, excluding China, according to IHS Markit, presented a slight growth of 2.6% in the second quarter when compared to the same period in the previous year. The segment of commercial vehicle presented an increase in global production, excluding China, of 4.3% according to LMC Automotive, highlighting an important growth of the Indian market during this period. The performance and resilience of our results are due to our diversified business model and operational discipline. The participation in the segments of light and commercial vehicles, as well as the diversified geographies and products and closeness of our predictions to our clients and consumer markets, were determining factors for the results of the second quarter of 2022.
Even in face of a still volatile scenario, our operational flexibility and agility have also been important for our solid results. We'll now follow the slides made available in the company's site in which you can follow during our presentation. In slide number 2, we can observe a recovery of the global vehicle market with a forecast for light and commercial vehicles. The forecast of IHS for light vehicle production indicates a global production in 2022 of 81 million vehicles, a growth of 5% in global production, or a growth of 7% when we exclude China from these numbers. LMC's forecasts for commercial vehicles shows a growth of 4% in global production of vehicles excluding China, or a downturn of 11% in global production when we include the Chinese market in these numbers.
In slide number 3, we can observe the main highlights of the company during the second quarter of 2022. We have achieved a net revenue of BRL 4.2 billion, an increase of 31.7% when compared to the second quarter of 2021. Our EBITDA of BRL 534.6 million with a margin of 12.8%, a reduction of 9.8% when compared to the second quarter of 2021. Excluding non-recurring factors, EBITDA for the second quarter of 2021 would have presented a growth of 25.2%. We have achieved gross profit of BRL 534.7 million with a margin of 12.8%, an increase of 27.1% when compared to the second quarter of 2021.
Our financial leverage or the net debt over EBITDA is of 2.2 times, a reduction of when compared to the second quarter of 2021 when this comparison was of three times, and a slight increase when compared to the first quarter of 2022 when this relationship was of 2.1 times. We have achieved net revenues of BRL 190.5 million in the second quarter of 2022, a reduction of 11.3% when compared to the second quarter of 2021. Our total liquidity was of BRL 1,892.9 million in the second quarter of 2022 compared to BRL 1,386 million in the first quarter of 2022, and BRL 1,355 million in the second quarter of 2021.
In slide number four, we can see the net operating revenue of the company by region. South America represented 30% of our net revenues, North America 30%, Europe 31%, and Asia and other markets 8%. Our net operating revenue in the second quarter of 2022 was BRL 4.192 billion, a growth of 32% when compared to the second quarter of 2021. The revenue increase in the second quarter of 2022 was due to the launching of new programs and products and a greater mix of sales in the segment of commercial vehicles. In slide number five, we can see the company's net operating revenue breakdown.
The revenue by product presented a growth in the participation of structural components revenues, with a growth of 21%-24% in the second quarter of 2022, and a reduction in the participation of aluminum wheels for light vehicles, which represented 30% in the revenues of the second quarter of 2021 and now represented 25% in the second quarter of 2022. We had a growth of 41.6% in the revenues for commercial vehicles, where commercial vehicles representing 44% in the revenues of the company in the second quarter of 2021, and now represented 48% in the second quarter of 2022. The revenues by division were positively affected by the growth of commercial vehicles, presenting a growth of 47.6% of revenues in the division of structural components, which represented 24% in the second quarter of 2021.
Structural components represent 27% in the second quarter of 2022. Slide 6 shows revenue by clients, and we can see the positive impact in the growth of commercial vehicle segment in the participation of the clients, where there's greater exposure to this segment by the company. In slide 7, we see the operational performance for South America, and we see that the revenues for the second quarter of 2022 was BRL 1,273 million, a growth of 36% when compared to the second quarter of 2021. This growth was a 43.3% in the segment of commercial vehicles and 22.7% in the segment of light vehicles.
South America represented 29.4% of our net operating revenue in the second quarter of 2021, now represented 30.4% in the second quarter of 2022. Looking at the performance of the vehicle production, specifically in the Brazilian market, we can see that the segment of light vehicles has grown 3.1% in the second quarter of this year when compared to the same period last year. The segment of commercial vehicles had a slight reduction in production of 3.8% in the second quarter of 2022 when compared to the second quarter of 2021. Throughout the first semester, we have announced our investments in capacity expansion in the segment of commercial vehicles, both wheels and structural components, to support the growth of this segment in Brazil. Slide number 8.
Operational performance for North America can be observed through a growth of 50.8% in net operating revenues in the second quarter of 2021, when we reached revenues of BRL 1,273 million when compared to the second quarter of 2020. The growth of commercial vehicles was of 50.9%, and the growth in the segment of light vehicles was of 50.7% in the revenues of the company. North America, which represented 26.5% of the company's revenues in the second quarter of 2021, now represented 30.4% in the second quarter of 2022.
Looking at vehicle production during the second quarter of 2022 in North America, we see a good performance of the light vehicle segment with a growth of 11.7% when compared to the second quarter of 2021, and a growth of 2.6% in the segment of commercial vehicles during the second quarter of 2022. In slide 9, looking at the European market, we see a growth of 22.8% of the company's net operating revenue in the second quarter of 2022 when compared to the second quarter of 2021, with net operating revenue of BRL 1.316 billion in the second quarter of this year. Where a growth was of 19.1% in commercial vehicles and 32.8% in light vehicles.
Europe represented 33.7% in the second quarter of 2021, and represented now 31.4% in the second quarter of 2022. Despite the downturn in the commercial vehicle market, we had a good performance in the segment. You can see the vehicle production in the European market in the second quarter of 2022, that has grown 3.9% for light vehicles and represented a downturn of 8.4% in the segment of commercial vehicles throughout the second quarter of this year. For slide number 10, by observing Asia and other markets, the company's revenue was BRL 330 million in the second quarter of 2022. That represented a growth of 11.7% in commercial vehicles, and a slight drop of 4.8% in the light vehicle segment.
Performance in the light vehicle segment was negatively impacted by the temporary stoppage of one of the main company's main customers in South Africa, and by the drop in the demand in the Thai market. We can also see growth in sales and production in India, particularly in commercial vehicles. The India market had a growth of 31.7% in the production of light vehicles, and a growth of 77.3% in the segment of commercial vehicles. On slide 11, we can see the company's gross profit of BRL 535 million in the second quarter of 2022.
That represented a growth of 27.1% compared to the second quarter of 2021, and a growth of 38% in the gross profit during the first half of 2022, when we reached a profit of BRL 1,146 million. On slide 12, looking at the company's EBITDA, we reached BRL 535 million in the second quarter of 2022, which represented a drop of 9.8% when compared to the second quarter of 2021. Disregarding the non-recurring effects in both periods, the company's EBITDA in the second quarter of 2022 would have represented a growth of 25.2%. The main non-recurring effect in both periods were related to the exclusion of sales tax and the PIS/COFINS base.
Over the first half of 2022, we reached the EBITDA of BRL 1,083 million, which represented a growth of 49% when compared to the first half of 2021. On slide 13, we reached a net income of BRL 190 million in the second quarter of 2022. A decrease of 11.3% when compared to the second quarter of 2021. Over the first half of 2022, we had a growth of 31.7% in the company's net income if compared to the first half of the previous year. Reaching a net income of BRL 351 million. As you can see on slide 14, we can see the company's investments.
In the second quarter of 2022, we had a total investment of BRL 132 million, which is a growth of 64.7%. The main investments in that period were related to increasing capacity in order to meet the demand of the commercial vehicle segment by the launching of new products and improving productivity. The company's total investments in the first half of 2022 were BRL 213 million or 52% above the same period of the previous year. On slide 15, we can see the financial leverage of the company. At that point, we reached 2.21x the net debt over EBITDA in the second quarter of 2021, compared to 3x in the second quarter of 2021.
For slide number 16, we can see the company's liquidity ratio, which is the liquidity over the short-term debt. That reached an index of 1.848 times in the second quarter of 2022. Just to remind you that in the second quarter 2022, we had a contract with revolving credit facility that is BRL 500 million for a period of three years as part of the company's liquidity strategy. The company's total liquidity, which is the cash and cash equivalents plus the revolving credit facility, is BRL 1.893 billion in the second quarter of 2022. If compared to BRL 1.386 billion in the first quarter of 2022, and BRL 1.355 billion in the second quarter of 2021.
For the next slide 17, we can see the composition of the company's gross debt. In other words, debt. It has 50.3% of the debt in BRL, 36% in EUR, 9.1% in USD, and 4.1% in other currencies. Our long-term debt grew from 66.5% in the second quarter of 2021 to 68.8% in the second quarter of 2022. On slide 18, we can see some of the highlights of our activities in the area of ESG. We had the release of sustainability report for the year 2021. We were able to present reductions in the CO2 intensity in 4.8%. A reduction in the use of water per kilo produced by 13.75%.
A reduction in the total consumption of natural gas of 6.1%. All those indicators in relation to our base in 2019 was used to calculate the sustainability-linked bond. We had an improvement in the levels of Sustainalytics rating. We had an upgrade from severe to low risk rating, and also an advance in the disclosure of ESG practices. For slide number 19, we can see some acknowledgment of our customers by John Deere and DAF here in Brazil. Acknowledgment by Iveco, the Maxion Montich factories in Brazil and Argentina. By GM, the wheel factories in the cities of Limeira in Brazil and Sedalia in the U.S. And also by Navistar, the structural components factory in Mexico. We are now going to proceed with the Q&A session. Thank you. We're now going to move on with the Q&A session.
We kindly request you if you ask all questions at once and you just wait for the company's answers. Just to remind you, we kindly request you to send your questions in the Q&A icon at the bottom of your page. The standard is, your name will be announced so that you can ask your questions live. At this point, you will receive a request to open your microphone on your screen. Our first question comes from Lucas Laghi from XP. Lucas, we are going to open your mic so that you can ask your questions. Feel free. Hello. Thank you all for this opportunity. Well, there are two points that I would like to explore with you regarding revenue. Starting the volume.
Considering all talks with OEMs with the assembly lines, how can you see this recovery of the light vehicles with the scarce numbers of semiconductors. Is this for the next quarter? And how the end of this demand can be caused by a demand crisis. In Europe, for instance, we have major concerns regarding these. We know that we have this crisis of supply. We don't know how far they are from demand. I would like to know how you see this possible negative effect of a real recession, and prioritizing the car assembly lines in the face of the other one. This is regarding volume. A second question, considering prices, okay. Price per unit of the product.
We can see a sequential drop in the price of commodities. Steel and aluminum are dropping in the second quarter, compared to a higher level in the fourth quarter and the first quarter of this year. I was just wondering, has it ever happened, any price adjustments to a lower price which can explain the drop in the 2% that you mentioned, given that volumes are in slight recovery. By looking at the third and fourth quarter in Brazil, if we take the seasonality aside. Could we think of a higher drop in the revenue considering these prices by unit that are going to be higher? Or would that be possible to consider a higher drop. Not thinking that the price of commodities, I would suggest.
We can see a great effort from the assembly lines to have to be more profitable. Considering if that can be implied for a supply chain and for a supplier like Iochpe-Maxion. One is about volume, another one about prices. These are my questions. Thank you. Hello, Lucas. Regarding your first question, the situation for semiconductors has been improving slowly but surely in the last quarters, in 2021 and 2022. Our perspective within our talks to our clients and by observing the market is to have a gradual improvement in between 2022 and 2023. We've been observing this improvement that has been taking place both in light vehicles but in commercial vehicles on different regions in the world. Europe, South America, North America as well. It won't be fully solved in 2022.
At least that's the perception that we have from the market. It will keep improving, yes. For 2022, we expect to get normal again. We'll keep watching that. We'll keep observing, keeping an eye on that topic because there are many variables. We have the increase of capacity of semiconductors and subconductors and in many regions. They have also been facing some difficulties regarding supply equipment in order to install these capacities that they have been working. Having the availability of equipment given the high volume of semiconductors. That's a situation that we are going to keep an eye and we will react week by week.
We can still see impacts in the second quarter to our clients in different regions due to the lack of semiconductors and stoppages with some predictability, I would say, and some others that are totally abrupt due to the disruptions in the supply chain. This is something that we have to keep watching, we have to keep monitoring with our clients, and being quick, being swift in the reaction regarding eventual changes in the program and in the production from our clients. Regarding the demand, we can also watch regarding the macroeconomic events in the world. We were able to see, for instance, in Brazil, growth in production and also vehicle sales.
When we look at the projection of the whole year of 2022, IHS is still anticipating 7% growth in the production of light vehicles throughout the whole year of 2022, except for China, as we said. It is positive, yes, but we have to monitor the side effects of increase of inflation numbers and market prices of inputs, generally speaking, especially for vehicles in different markets. The availability for credit that are going to be offered in Brazil and in other countries. Of course, the final impact of this deceleration, I would say, that can happen in different levels, both Europe, North America and Brazil.
Once again, in the situation of semiconductors, we are very much connected to our clients on a weekly basis and trying to avoid working or acting in an intempestive way, so regarding to what's going on in that week or that month.
that we can optimize our operational plan for production in different factories all over the country. I believe that the second half of the year, it's going to be different from what happened in the first half, if we observe on a weekly basis, on a monthly basis, what's going on with the production from our clients and the demand on that end. Broadly speaking, we were able to see the numbers in IHS. Indicators are for a slow, slight growth, both for light and commercial vehicles all over the world, again, except for China. Even more accelerated growth in 2023, both LMC and IHS, they point to growth, around 9% growth in light vehicles. These are positive indicators, but of course, we'll keep a close eye on that.
Regarding the drop in the revenue that you mentioned, there are two important sectors right now. The drop in demand that you see when you look at the revenues in the second quarter of 2022 compared to the first quarter of 2021, looking at the same exchange rate, you see that the company has grown a little bit over 4%. When you include the exchange rate where we see some variation between the first and second quarters, you see this drop that you have mentioned of 2%. In general lines, if we keep the same exchange rate, we have a growth of 4%. We have continuously worked throughout the year of 2021 and 2022 to pass the increase in raw materials on as they happen in each moment in each market.
They do not occur in a uniform manner. They work differently. The planning of our purchases for raw materials and the planning for the market, we have observed that acceleration we saw in 2021 and the price of inputs is not occurring in 2022. We have a more stable basis of raw materials, especially aluminum. There was a peak of increase, a temporary one, especially in the turn from the first quarter to the second quarter. Due to the situation between Russia and Ukraine in Europe, prices went up very quickly, from $2,500- $4,000 very quickly. Now they are back to around $2,500 or $2,600 per ton again. That has to do with the movement and export of the raw materials in the European continent.
Now, the situation is more stable, but we are working, passing on these, changes, these increases or reductions as they happen according to the contracts or agreements we have with some clients. In some cases, we have predefined formulas that define the variation of the prices in raw materials and the effect of this change to our products, and other cases are negotiated product by product, client by client, region by region. We will maintain the same consistency we had in 2021 and the first semester of 2022 in the next semesters, passing these, variations on as they happen according to the agreements we have with each of our clients. Perfect, Marcos. That's very clear. Thank you for your answers. Next question comes from Luiz Capistrano, sell-side analyst from Itaú BBA.
Luiz, can you open your mic and ask your question? Go ahead. Marcos, Elcio, good morning. Congratulations on your results, and thanking for opening for answers. My question follows on what on Lucas's question regarding volumes, and then I want to ask you something about margin. Starting with volumes. Marcos, you talked about IHS forecast for 2022 of 7% when we're talking about levels comparing 2022 to 2021. When we compared only in Brazil, we have 1%. What I ask is, of course, other geographies have a different situation that is different from Brazil or, is IHS being more conservative or more optimistic depending on the areas. How can you say, how conservative are these numbers, and how does Brazil compare to the other geographies?
With regards to margins, we saw in the second quarter when compared to the first one, you see an increase in the mix of light vehicles, of course, with a lower participation of the heavy vehicles. This was something we saw in the last quarters. Can we say that we may be approaching a time of inflection, with margins that will be less important throughout the years, and the results of the company will suffer this negative pressure? Luiz, good morning. Thank you for your questions.
The growth dynamics that we have observed, especially in production, because these are the numbers from IHS or LMC, regarding production that happened or a forecast for the future, show accelerated recovery greater year by year in markets such as the United States, the North American market that we have observed during this last semester. In some other markets, like the Indian markets, had a very important growth. When you see the full number by IHS, it takes into consideration markets from all over the globe. In terms of Brazil, the indications we have are in the growth of about 4%-5%. Of course, it's a little below the global average, but production increase is not that far from global production.
As I mentioned before, for Lucas, questions, these are things that have to be monitored every week and every month. Depend on the availability of inputs such as semiconductors and how each of these markets behaves. When you're talking about the average global production, excluding China and Brazil, with expected growth of 4%-5%, that's a good successive growth after a growth of 3% last year. With a positive perspective also for the year 2023, for which our perspective regarding the availability of inputs should have a positive input throughout next year. Reminding you also that we still have a demand that has not been met in the various markets where we operate. Demand throughout the first semester was higher than the production capacity of the manufacturers.
This is being met and will be met through the next years and semesters. We can see these numbers as directions. They can vary, but we're talking about positive numbers, and we are working on this basis both for the Brazilian and other markets. With regards to the growth of light vehicles and commercial vehicles, I think that something interesting is happening. The demand for commercial vehicles, especially in North America, South America, and also in Europe, although we have seen a small reduction in the second quarter for commercial vehicles in Europe, we still have a very strong demand, both for Brazil, North America, Europe, India. The demand is still strong. The manufacturers still working to meet orders that they have waiting in line.
The speed of this growth can be very interesting because the orders they have in their portfolios should be met in the second quarter, in the next few months. The demand for 2023 is positive. The forecast in Europe and Asia is positive. In Brazil, the trend is for a positive demand. We know there's a transition expected in the end of 2022 and the beginning of 2023, but in general, we have a positive demand. If we look at the speed of this growth in 2021 to 2023 continue at the levels that IHS and LMC show, we would have a stable growth at least in the next few quarters.
Considering that in 2023, both commercial and light vehicles would be growing about 9% when compared to the year 2022. The matter of margins varies quite a lot from one quarter to the next, depending on products, costs. We know that the pressure of inflation is real all over the globe. We're passing these increases as they happen, but they do not occur synchronized exactly with the increases. Usually there is a deficit considering the increase of cost and when this is passed on to our clients. Due, again, to contracts or clauses in the index, market indexes. This deficit can vary to four or five months for this cost to be passed on to the prices. We are continually working, revising, and updating the needs according to each month and each quarter, and that may cause variations in margins.
We look at the year as a whole, where you can see again a consistent way of consistency in the variation of costs and how they are passed on to our prices and to our clients. Having a more broad view and to the alignment of this cost and prices and how we operate. Excellent, Marcos, thank you very much. That was a very comprehensive answer. Our next question comes from Marcelo Motta, sell-side analyst from J.P. Morgan. We'll open your microphone, so you can ask your questions, please. Go ahead. Thank you, Rodrigo. Good morning, everyone. I have two quick questions. First, a comment on South Africa and Thailand. I imagine you had some supply chain issues affecting the stoppages from South Africa. I'd like to know if this is something more cultural.
The Thai market, you talked about a lower demand. Would that be structural or even a specific stoppage? Regarding Europe, how do you see the margins, the issues regarding inflation and the cost of power, which is quite relevant for you, and sometimes this is not in your contract regarding price adjustments. I just wanted to understand how you see this change of the margin considering power and other bottlenecks you might have. Again, Mota. Thank you. Good morning. Thank you for your questions. First, with regards to South Africa, that was a temporary stoppage in our largest client in South Africa due to a climate problem. They had an important flood in their factory during the second semester, which had to stop their productions during the second quarter. Those gradually going back into production.
This is not an issue of demand or a problem with input or logistics. It was an unhappy circumstance regarding the climate with this flood for this large client in South Africa. With regards to Thailand, this is a market demand issue in the Thai market, very connected to the recovery in Thai economy. It's been happening gradually, but there are still ups and down with peaks in a quarter, with another quarters not doing so well. So they're not at a constant or consistent level. We do believe that in 2023, this situation is going to improve. In the turn from 2022 to 2023, it's going to improve.
They have this market and demand issue for Thailand, which has been affected since the beginning of the pandemic in a very constant way with variations from one quarter to the other. With regards to the cost of energy in Europe, this is very important in terms of cost structures for the automotive sector in general. Power has never been a factor subject to great variations in terms of prices throughout the years. Unfortunately, the turn from 2021 to 2022 worsened by the situation in Russia, between Russia and Ukraine. The cost of power has increased, as happened with aluminum. There was a large increase, especially from the first quarter to the second, but it's still higher than the levels from last year.
We have been working in the market with our clients with an understanding of the impact of power to our various products, which is not uniform for aluminum wheels or steel wheels or structural components have different power and consumptions and demands. We have been working with our clients to get them to understand the impact of this, the variation in power costs on the products and passing on this, passing these variations on according to what happens in the market. Of course, when you're talking about a temporary variation in a specific element, you understand, you work on, and you size it and react in a way. When we're talking about a more consistent variation that will last longer, you have to sit down with your client and get to an understanding with them.
Regarding the implications of this variation into the general cost of the product, and work with the client to see how we are going to manage that. It's a continuous work. It's not something you do in one semester and not the other. It's something we do throughout time, and we have to continue with this effort, especially while we understand that these costs and availability of power and how much concern they bring, especially in the case of Europe. Next question is from Renata Cabral, sell-side analyst from Citibank. Renata, we're going to open your mic so that you can ask your question. Go ahead. Hello, everyone. Thank you for this opportunity. My question is regarding Europe. I know that you've mentioned quite a lot in our call today, but it's more like a follow-up.
We can see this growing concern regarding a possible gas rationing, especially during the wintertime. I know that it's an important issue for you. You have important plants in Turkey, and correct me if I'm wrong, you have production also in Germany. I was wondering how this rationing could impact on you, if you have any contingency plans. If production was somehow damaged in Germany or impacted. I would like your input on that. Hello, Elcio, thank you for your question. That gas matter undoubtedly raises concerns, and it's a crucial topic in Europe as a whole. We have the potential of rationing, and we've been listening about that a lot in the media. Well, regarding our operations, just to make it clear, we've been working, trying to understand the energy matrix plant by plant and contingency plans in case something happens.
We don't know if it's coming, how intense it's going to be, or how that's going to impact on our operations. Anyway, we've been analyzing plant by plant, trying to understand the source of that gas from our plants. Whenever we look at the southern plants, so Spain, Italy. It doesn't matter if the gas is coming from. Well, that one's not coming from Russia, but from the North Africa, and we have a more stable scenario regarding these plants. We have a plant in Turkey that somehow has other sources, from our plants in Turkey. We analyze the source of that gas. We analyze the possibilities for conversion or using that gas or in a liquid form, eventually, how we do that transformation in order to supply our plants.
Some plants can convert that gas to electrical energy, so there are many variables with many possibilities to face possible events regarding rationing. Of course, it's a little bit too soon to predict. We still have months ahead of us to see how that can impact or not during wintertime and in the whole Europe. We don't know how much that's going to happen in the following months. I believe that on our side, we will do our best to mitigate this impact. We have already started all the individual analysis so that we can see how that's going to flow. Thank you, Elcio. Thank you very much for your answer. Our next question is coming from chat.
It's Thilo Brunner, buy-side analyst from Schroders, and he says, "Your MSCI score in ESG is still triple C, and it hasn't been updated since April 2021. So what are you doing in order to improve that in order to become more eligible for more portfolios?" Well, thank you for your question, Mr. Brunner. We've been focusing on sustainability a lot, not only from our selection of what we've been doing, but something that's going on for many years now. We are bringing more visibility to our initiatives. Of course, improving as we try to understand, as we face those demands and elements from society as a whole. We've evolved quite a lot in the Sustainalytics rate. We came from very low rating, but now essentially we've been classified as low risk by Sustainalytics.
Still based on sustainability report in the previous year. We've recently publicized the third edition of sustainability report regarding 2021. Each of these agencies have their own processes of revising that rating. We've been supplying these agencies with all information as we can, and quite recently with the new publication. We are going to bring more information both for Sustainalytics and MSCI, other agencies and CDP so that we, the others that we participate. We can access one by one because every agency has their own process. We are trying to understand actually the needs brought by the agencies and bring more visibility and try to improve the topics. It's an ongoing process, and we have expectations to improve our ranking on the MSCI. Our next question is from Andressa Varotto, sell-side analyst from UBS.
Andressa, we are going to open the mic so that you can ask your question. Go ahead, please. Hello, good morning. Thank you for this opportunity. I have two quick questions. The first being about cash flow. We can see shares that have a negative weight in the quarter. I would like to hear your perspective regarding that of cash flow. And regaining your place in this chain and especially the semiconductors, and also normalizing the prices of raw material. My next question is about engineering expenses that didn't grow that much due to inflation rates. I was wondering if there are any initiatives that would be worth mentioning. And if we can expect better levels for the next 13 years. Thank you. I'm going to start, and then Marcos can supplement with anything he wants to.
Regarding cash flow, you are absolutely right. We had an increase in this quarter of BRL 203 million, if compared to the previous quarter. We don't have the numbers and the weeks and these numbers by weeks, but we can see that it's stable compared to the previous quarters. There were no structural changes regarding deadlines or suppliers and clients on this quarter, so no changes there. Our cash flow, just like our operations, are working that way in a very international level, so it's been impacted by the currency levels. Just to make something clear, he mentioned the impact of the revenue. So that came from BRL 153 to BRL 142, so there was a depreciation due to the currency.
When we look at the currency, they have a different behavior. It had a negative impact with all the costs, et cetera. If we think about the balance sheet, there was a negative impact. There was a change in all the lines of working capital. That's an important factor, as we said. When we look at, I mean, regarding shares, this is in our drive, it's in our talk of like monetizing and bringing more cash flow to the company. Let me just take a step back. Stocks have three important components. The first one is the prices of the commodities. They are both in dollars or euros. We have the matters of volume that have been declared, which it is more under our control.
Regarding volume, so we started this reduction process since last year in the first quarter. On the second quarter, more specifically, it was quite uncertain in the world scenario regarding logistics. Some months ago, or even the beginning of the second quarter, we saw an escalation of the conflict in Ukraine. We were seeing, like, China making some moves. We were very cautious, and we just had to break that process of reducing inventory due to the size of uncertainty that all these events were bringing. That was not like a regular quarter. Reduction in aluminum, steel. Essentially speaking, they were stable regarding volume. Then we came back to the current scenario, in other words.
We ended up having reducing our inventory in a gradual way, so it's bringing positive impacts for the next quarters. Regarding the SG&A, well, as we can't control the many variable, one of them that we have, we try to control and to bring the max excellence possible. That is a topic. It's a monthly topic for discussion, actually, so that we can reframe the advance regarding all the matters that we've discussed. We have a lot of things that we have to deal with in our management, and we try to optimize these costs. That's the main topic. I'm not sure if Marcos want to supplement with anything. Well, it was a very good summary. It's continuous focus in all cost lines of the company, administrative.
It's a constant work, and it's the work of the leadership, and we try to reach the most efficient way possible. Thank you. Thank you very much. We're now closing our Q&A session. I would like to call Mr. Marcos Oliveira for his final considerations. Well, as we were able to see during the presentation, we are keeping an eye on all the changes in the market: inflation pressure, variation of volumes of production from our clients, and geopolitical events. We always try to adapt in a timely way, in a quick way, facing these factors. We will be still focused on the productivity levels and operational efficiency, releasing new products and new technologies on the development of our advanced engineering on digitalization and innovation, and the strengthening of our balance sheets to bring value to our products.
Thank you very much for being with us today, and I wish you have an excellent day. The video conference regarding the results in 2022 is closed. Investor Relations department is available for questions and answers. Thank you very much for our participants, and have a nice day. Thank you.