Q2 2024 Tata Motors Ltd Earnings Call
Mr Shah Executive director down with Us, especially China and these are done with those passenger vehicle images.
And other passenger electric mobility.
Mr Jin Margaret Seale, Jack well under what the.
So to just millennials CFO of Jaguar land Rover and make the least someday lifted edition skus.
Today, we plan to walk you through the results presentation, followed by Q&A.
As a reminder, all participant lines will be in listen only mode, and we will be taking questions via the themes platform, which is already open until you have yourself with your question.
You are requested to mention your name and the name of your organization. We're submitting the question I now hand over to balance sheet to take this forward.
Thank you.
Oh, it's going to go to and expect to be the standard Safe Harbor statement.
Yeah, nothing additional to add here most of the changes to any accounting treatment or anything.
From a quarter perspective, a series of actions underway this quarter.
But the European trial. These are the ones that are really big here.
The portfolio of seeing huge valuations are going to talk about later doing well for us.
<unk> thousand Andi bus those are the latest being <unk> nugget that those launched yesterday.
And of course, some of getting ready for the future perspective, I think Boston Tata Motors I'm in Vienna.
In Jana the old law, the testing site QUADRA Evs as well as secured the his two wives testing facility in India, what big ones coming through.
And then Dana the confidence of the future of cash flows being manifested in the bonds that were bought back after like with China on the little repaid with charm children get covered later in the discussion next slide please.
Overall revenues.
It came in at a lack in 5000 crores for the quarter with an EBITDA of 13, 7%.
And on a.
This EBIT growth EBIT number of seven 5% he could recollect, we did signal that we're going to have a temporary blip between Q1 and Q2 because of the summer shutdowns that we had in July that's exactly how it is played out.
And <unk> came in at 6000 longer cross.
I'm sure that there's going to be a question later today in terms of why is it that would in PBT in the tax rate so tax costs have gone up significantly.
There are just so let me cover that right away given jail us.
Earlier performance, we're not in a position to recognize the deferred tax asset in excess of our deferred tax liabilities.
And therefore, it does because it's an asset recognition accounting a full simply show up.
<unk> track record for that and that is what is causing a bit of noise on that happy to drill in further detail in case, you want further detail, but on overall basis. The tax rate remains the same for any 25%, 25% that we had already signaled no change to that.
Free cash flow came in strong again this quarter at $3. A monitor of course are also wanted to quickly cover the H one numbers that you see.
PBT be stepping away almost 18000 crores and on a year on year basis. The cash flows are also stepped up our 15000 plus taking the net debt down to 38000 cylinder cros, so well on track to water what commitments, we had on the deleverage plan. Thanks.
<unk>.
Split of growth.
Within volume and mostly led by volume mix and price and translation of course are either a little bit profitability, particularly pleasing because every vertical.
It was firing on the profitability side, and hence or contributing to the overall increase that youll see.
And the net automotive debt of 38000 Thunder spirit.
Spirit up by Tata Motors, India, I think we are very confident this business will go net cash by end of this year.
The <unk> by the next year and therefore, we believe we are well on track for our deleveraging targets.
Right.
Oh corporate action side, a lot of actions, obviously, you've already seen the news.
First was the Tara technologies, where we had a pre IPO deal that you signed with TPG climate rise.
Which is so and and Rockland Endowment fund and this is actually a good it's a strategic sale and to that extent. This business is going to benefit from someone like PPG rise coming in and there's a climb a dedicated fund and their experience in investing in green technologies there'll be a benefit to US. This transaction has been closed on cash has been received by end of FY <unk>.
And in the last few days.
And of course from our IPO perspective that actions are underway and the timing of course will be decided ability Dearborn post final approvals.
Excellent.
The second transaction that we did was the acquisition of a 27% stake in freight Tiger.
Significant had talked about it maybe I'll take a minute to spend on it Indian freight market is massive and fragmented.
And here, while investments that have gone on trucking in the in trucks a lot of innocent of Ghana, not <unk> said, the same about freight ordering or management of the whole trade process.
And therefore, this is an area where straight record price to solve the problem by providing the end to end digital software as a service solution.
<unk>.
Trucking product that we have which is a connector on which sits on a rig connected vehicle platform and helps both fleet operators and drivers.
By integrating these two we can now give a comprehensive freight management solution and therefore from our stakeholders and I'm very careful to use the word stakeholder with so many stakeholders in this for the shipper is going to result in lower freight costs because of matching that is for the.
Transport orders better transparency on trade availability faster payments for the entire park operators there.
Everybody enhanced visibility and reliability and therefore this is a quite an interesting transaction coming through and fits in very well with gracious digital plan that we have for the CV business.
Transaction, we will invest uninterrupted growth, which you've already done the money is already gone out of our Oh My God. This one and be an hour to index funds over 9% owner with shippers have been completed.
And in the next two or three years, we will invest an additional 100 gross as required and thereafter, we'll have the right to buy the other investors other than fair market value, a very interesting transaction and something we are very excited by excellent.
This is the latest one that has just been announced.
It will be underpinned by our <unk> platform I'm sure challenge and Adrian bottle, we can't talk about it later in the presentation.
But it's a it's a very important transaction for us because this is dpm's premium pure electric vehicles series of India, which we revealed last.
Last year and this will be developed on EMEA with Jay that is well underway.
On timelines to launch the first Scott and that there'd be an mou for access to the email platform, including the electric electronic architectures, the idiots that rising incentives battery assembly and the manufacturing knowhow proactive feat for us.
It accelerates our entry into the high end segment. It delivers a global product upfront reduce development costs and cycle times, that's already but it would have been already validated by gela and accelerates our adoption of advanced technologies. So this helps Tata motors leapfrog, though the market as far as the Indian market is concerned.
But does it not being conceived only for India, its actually been conceived as a global product.
Which makes it a very interesting proposition for us. So these are the three actions that we have from our corporate site. Let me now hand, it over to Richard to take you through the <unk> story Richard over to you. Thank.
Thank you very much balance sheet.
Yes, so let's go to the next chart because it's important to show J Lawrence is really delivering strongly both financially and operationally.
We're setting records.
So if you look at the top line, our Q2 performance revenue up 30% year on year to $6 9 billion pounds that is a record we've never achieved that level before in Q2.
Our EBIT is down a little bit of seven 3% for the quarter. We always mentioned when we showed the Q1 numbers. It was a small one off favorable in there that would would feed back out so it's actually probably more relevant to look at the H one EBIT percent.
8%.
PBT and Dakota, $442 million and 300 million pounds of.
Cash flow.
What that means for the for the first half of the year.
$13 8 billion pounds worth of revenue, which is a record. It's also a record in terms of per unit in terms of per unit will now have 72000 pounds per car.
Delivering 8% EBIT of 877 billion pounds worth of PBT, which is up $1 6 billion pounds year over year.
On an H one cash flow of 751 million pounds that is not only an H one record cash flow for us it is a rectal cash flow too.
250 billion pounds.
Excuse me.
So we're setting records, we're delivering well.
If we move on to the next chart.
I won't go through this in detail. This will cover the comments that I have made and will make as we go through this presentation. It's therefore your records you can go back to it afterwards.
To move onto the next shot.
Which shows all wholesale performance, which was up 29%.
In the quarter.
From Saudi up 4% in the quarter from 93 to 97000 units.
Up 29% for the half in terms of the brands ranked drove a fairly flat, but this is something that's expected for us we still.
Production constrained on range Rover and as <unk> mentioned, we have a two week plant shutdown quarter. So it's no surprise that that's flat.
Defendant continues to do extremely well for us.
30000 units in the quarter and Jackie will was also up in the quarter. Although if you look at the table.
First half of the year below you can see <unk> pretty flat and the <unk> increase is coming primarily from range Rover and defend.
Which is up considerably on a year by year basis, So on a <unk>.
<unk> H, one basis were up 29%.
The next chart.
So if we look at this on a regional basis.
I think the only thing ill point out in terms of both.
Quarter is.
China, China, we know it is a very very tough market at the moment, but we are showing strong resilience in that market actually quarter over quarter were up and were fairly flat year on year and that does show the power of the modern luxury brands that we have and how they can cut through.
At the top and some of the noise and the pressures of the market.
Most of the other regions performed really well if you look at the second Bar chart down there in the first half of the year every single region is doing better than it was in the previous year.
In terms of the balls on the right.
Our percentage of electrified vehicles at both <unk> and that was relatively flat in the quarter actually went up from 12, 7%, 13%, but that's a number that we expect to stay fairly static.
Until we launch our new bed, starting with the range Rover <unk> at the end of next year.
Next Chubb.
So the next chart shows the development of our profit before tax from last year to this year.
And shows an increase of 615 million pounds year over year, and our pvt celebrity.
So just explaining that the largest chunk quite obviously is volume and mix.
Volume was 21000 units higher than the previous year and mix is also stronger that is defender up from 23% to 31% and range Rover sport up from 6% to 17%.
So both positives in terms of volume and in terms of mix.
Pricing for US is also.
Something which has been positive over the last year, we are showing a very small increase in our variable marketing expense, but do note that's going from one one to one 5% dose all levels, which are still extremely strong and represents the.
The assortment.
The need to not do.
Discounts drink fleet in the modern luxury space in the market. So we've done very well to keep Vienna at those types of levels, whilst keeping all the bank of 168000 units.
Material cost is actually favorable for us in this quarter now that is largely because of this time last year.
<unk> when we were really suffering in terms of material cost, particularly in terms of the amounts that we were having to spend to brokers to source semiconductor chips.
As that industry has stabilized now we don't need to spend those money. So on a year to year basis material cost is is actually showing some improvements for us.
We do know that we're going to have to continue to spend some money on demand generation. So you can see that 96 million pounds at this year over year in FM and selling of that 62 million pounds was in marketing expense. Some of you that have been following the rugby.
We'll cut that's been going on we'll have spotted bear a chunk of that went.
In terms of fast pumps shipped through defendant.
Foreign exchange.
Net favorable year over year, one year ago. This quarter was the quarter. When we had the premiership of Lids Trust and Sterling did take a step down to $1 10.
It's come back up this quarter to circa 122, that's given us an operational FX adverse but quite a strong hedge position and the revaluation of our balance sheet and that meant that the less foreign exchange impact for sustainable.
So that's the explanation.
New sites of the bottom line, we have improved our PBT by 615 million pounds versus the same quarter last year.
And that TVT is the best that we have.
February is.
Next chart please.
Hey, this is Ben takes PBT through to cash flow.
The number I would like to focus there is the cash profit after tax but before investments at 115 1 million that is also a record for us by the way.
As much as being a record I'd like to focus on the consistency of that number.
And the last three quarters that number has been one one more than 6 billion and $1 135 billion allow 115 1 billion. So we are very consistently delivering one 1 billion pound the cash profit after tax.
That's a really strong message.
We did spend a little bit more investments I'll come and talk about that in a minute. That's a natural part of our cycle plan.
And working capital was a little bit adverse for us in the quarter that is largely the effect of the two week summer shutdown has in terms of our payables.
However, we delivered 300 million pounds.
Operating cash flow.
Next chart.
In terms of our investment we've said 775 million pounds.
$577 million was engineering.
64% of that or 368 million pounds was capitalized.
I think it is important to understand that for us that capitalization ratio is something that does wax and wane. According to where we are in the product lifecycle. So if I look at it for the same quarter last year. It was 40% same quarter the year before it was 37% same quarter the year before that it was <unk>.
68%.
So this is something that will evolve for us it always gets higher as we approach major launches. Because then the engineers are working on programs that are past their that capitalization hurdles and it always goes down when we're all working on programs, which are further into the future.
We would expect that level to probably increase a little bit over the next couple of quarters and then as we move through next year to start coming down.
Next Chuck.
Great business update so if we move forward you can see here. This is a wholesale history.
You can see the trends from that low point to sub 65000 units in Q2 FY 'twenty. Two we are continuing to improve and in the next couple of quarters.
We will improve those deliveries mall.
Partly as a result.
Of something I'll come and talk to you about on MLR in the second half, partly as a result of a greater.
Greater working days.
In the next two quarters from the were in the last two.
We're not completely out of the woods on supply constraints yet.
They'll do a pit, but they are pairing.
Slightly different guises, it's not really major semiconductor strengths that we're seeing we're seeing the type of attendance and the challenges that are slightly more normal Unfortunately, an industry, where you get flooded with suppliers.
Buyers and suppliers.
But we're getting very good at responding to those very fast.
So we do expect Q3 Q4, both wholesale volumes and production volumes to improve even though the numbers that you can see that on that page.
Next chart.
You all know how important range Rover and range Rover sport all for us.
So that sort of range Rover range Rover sport and defend the 77% of our current order bank production of those vehicles is extremely important.
<unk> managed to keep it constant quarter over quarter in terms of average number of vehicles produced per week, but we did manage.
Through one week of 30 to 3200.
In fact to be precise three to six three was our peak volume, we expect that to continue to improve through the back end of the year. We do have an additional body shop four MLA coming on stream towards the end of this month that will start to ramp up process, but it will allow us to incur.
<unk> those numbers as we go into the back end of this quarter and through into next year.
Yeah.
And Nextgen.
So where do we stand.
We are performing well operationally financially and we're setting records and we expect.
To be able to set more records in the quarters ahead.
So we expect our volumes.
To recover we expect inflation to moderate.
And we are changing our guidance in terms of EBIT from prior guidance.
Plus to around 8% that shows the confidence in the delivery that we're currently producing that we can maintain those levels.
Net debt.
We ended the quarter at two to four 9 billion, so two and a quarter billion pounds.
That is exactly half of it was a year ago. So we had hopped on net debt in 12 months and we commit to get that net debt down from two to four 9 billion.
Lower than 1 billion pounds by the end of this financial year.
We will focus on execution.
Executing our plans flawlessly and continuing to deliver both financially and operationally.
Thank you I'll hand, it back to our balance sheet.
Thanks Richard.
Moving on to commercial vehicles Gration I will take this section.
Next slide please.
On the market share front, we had an improvement between from the prior sequentially from $39 $139, seven, particularly Hartley the heavies are starting to do well.
The supply chain issues that portfolio gaps that we had then even though <unk> sections are doing well, but we do have a challenge on the small commercial vehicles and Thats an area, which we are well focused on to ensure that comes back again, it will take a little bit of biomass.
This business will be to see kind of the thinking so that is something which we are working off slightly.
But the work on pivot to quantity the leanest hamson rotor revenue was up by 22% to 20000 costs and EBITDA by 40 bps and now 10, 4%, we committed to deliver double digit <unk> delivered this quarter as well as on a half year basis and of course from a profitability perspective those businesses.
Final close this quarter and overall 2000 final close for the year so far.
On a very good track as far as profitability is concerned.
We ended the moneys come from.
Additional volume mix as well as realize the draw your attention to your realization increase so substantial improvement coming through there that is I'll start with the strategy that the board is leading us the benefits and as you find the previous slate is also yielding market shares in the <unk> in the intermediate sections, but of course work to be done on the smallest.
Thanks, Mike.
Okay.
Let me hand, it over to Ganesh to give you a sense from a business flavor the stick of Girish.
So thanks, <unk>, so we had to.
A good growth in volumes, almost 21% corporate loan quarter.
6% yeah.
Year on year.
With all that I've looked at issue that we already being addressed.
<unk> has already spoken about the market share.
Primacy.
Our Q2 market share is our legal hurdles.
FY2023 market share.
In the <unk>.
<unk> CV passenger year green market share until month as liberty issues have been addressed.
And in small commercial vehicle and pick ups I think.
As <unk> mentioned, we are working towards one on one hand and bring the unit economics.
The other Manhattan.
In brief the business model from B to B to C.
Even claw back the bunker chip as deepwater.
Okay.
The.
We're going to see the non retail business revenue also grew by 20% over Q2 of last year. So this is one business that has been growing at assembly.
A good improvement in penetration in the spare parts as well as service.
We had around 17% of our volumes deemed undertake to particular channels yields from execute so I think the consistent can you make any Doug this limit.
Okay great.
Bright spots.
Yes.
Secondly, I mean, it still grew by 24%.
Over the same quarter last year passenger.
Passenger carriers, who that is.
And Lance grew by almost 2%.
I think the customer sentiment index.
Furthermore.
Improved across segments, so generally second quarter once a quarter.
<unk> been.
Medium and heavy commercial vehicles, which is what we saw.
The way the segment's goodwill.
On the commodities.
<unk> hired daily renewable softening of commodities, especially Steve.
Precious metal.
David on the margins.
Of course, I think we have been pushing our cost reduction efforts as also improving realizations month over month.
This is all what has helped in margin improvement.
I must also say I think the Allstate production of the <unk>.
Okay.
We have been getting good traction on those products and that has been a lot of focus on the influencer advocacy as Glenn Moro.
In market back to back trials to prove the improvement in the cost of ownership.
In addition to that this new onshore and produced more than 200 million in quarter.
Quarter two.
To expand the portfolio.
So going ahead.
We are quite clear, we will continue to drive the utilization improvement.
We have already taken the price increase on <unk> of October because we see.
Some commodity headwinds.
Especially from steel coming in Q3 likely to come into piece over back to the pricing.
Take them.
And while we continue to drive utilization improvement.
<unk>.
Keep upping the Wuhan shared which is what we're focusing on with the portfolio.
<unk> product range.
Oh.
We of course have a very differentiated focus on the Sip portfolio I already spoke about that.
Driving profitable growth and building a very sustainable model. So all this morning, rather than having the bush <unk> push.
We have been scaling up or any sort of place.
Look the east EV as well as the.
Electric buses and I'll speak about this.
In detail on the next leg.
We will obviously continue the growth.
Spares and service penetration and therefore, the revenue from the downstream business.
In international markets.
<unk> been maintaining our market shares in all the key markets.
Have improved our margins.
So maintaining channel health.
The total industry volumes in most of these markets.
Below even the last year.
Next slide.
If I speak about.
The electric mobility and retail now we have almost.
Yes.
Eagle Ford is.
So we have more than 600 is even is like on the routes.
And together they have blocked more than 1 million kilometers so would experience under the baytown and also east to inform the studios that we have received the BLA certificate.
<unk> is EV becomes the first four.
And what's still electric vehicle to receive the Eni effective okay.
Through this we will now but will strengthen our efforts in increasing increasing the volumes.
The retail vertical is EMEA greenbank whole months.
And we continue our strong engagement with the ecosystem stakeholders.
To ensure financer liberty.
<unk> infrastructure availability.
As also enhancing our reach.
To keep on scaling up the Williams.
Let me do the smart city mobility solutions so.
We have now almost 500 electric buses deployed.
Between Daily Transport Corporation, then just yesterday, we had inauguration of our emphasis so blake to Jammu and Kashmir also.
Cumulatively BMO crossed.
More than 97 million kilometers and I think in all of the contracts we are delivering.
95% of them and almost close to 100% of tanks.
Towards the end of quarter two.
The buses have been delivering pretty well.
I already spoke a word jammu and Kashmir Erin.
I think the focus that knee.
This business right now is laying the foundation for a very strong business.
A lot of focus on putting in place processes.
And digital enablement.
We also received ISO certificates.
Some of our depots, which had been started a year back and continue to do the same for our verticals also.
Yeah.
On the I'm also really happy to let you know deck.
<unk> taken a specific position on the new tenders in absence of the steaming secretive mechanism.
And I think the development.
Having a lot of engagement with the loyalty.
Lithium responsible development.
And as we understand in the new calendar, which is likely to come up from the ministry of housing in our benefits.
It meant secretly mechanism.
And the places that you will see.
US coming back significantly in this space.
On the digital side, I think <unk> already spoken about the freight Tiger piece.
So.
<unk> operates in the in the logistics ecosystem <unk> is a very strong platform in the ecosystem.
Now have almost half a million vehicles on the platform.
We continue to grow this the engagement times are also improving untoward months.
We introduced a subscription modules.
Second quarter than you've seen some good traction from the customers of the same.
As I said the amusement.
Amusement time is being improved with enhanced in permitting and contextual insights on operations.
Operations of the trucks, the vehicle health and the driving behavior is actually helping the customers to improve the.
Real time total cost of ownership.
I won't speak further on the Tigers, but let's just stick on orders, but actually provides a very comprehensive end to end solution for us connecting both the truck ecosystem under crimp ecosystem.
And we will actually be a win win proposition or all of the stakeholders, whether it gives the shippers the logistics service providers and flip on us, which I want to be on customers.
<unk>, which is an online marketplace for the spare parts.
We are growing very handsomely four times or two.
To reflect reality.
I must say actually this is helping us to improve the penetration to the customers who otherwise would have.
More promos are going for.
Second half I think are coming to us through this.
The last point I would say that the retail sector.
From the digital leads also continued to be healthy.
17% of our volumes are coming program.
So that's the summary of our CV business biology back to you.
Thanks Krish.
Going onto the PV side.
Exactly.
Okay.
Domestic market shares at 13, 4% for the quarter. If you recollect, we said the first half of the year is going to be challenging for us because we have our products are all coming rear ended well most of the competition is land.
Launch their products in the first half.
So pretty happy to see the rate ended at $13 four at the same time, if you look at the global demand will come back into the 14% plus or so.
It is exactly in line with what we had planned the other reassuring pieces. The EV is a push and a portion of the total portfolio sitting at 13% as seen lora questions coming on EV growth potential Greece financial cover quite extensively as Q&A. Thanks Barclays.
Please.
Overall edp volumes.
Remember this is a transition quarter for us.
And then back TV business, we had three big products nexon undergoing a change.
Both the isolation is one of the reversion Safari Harrier launching in October so to that extent it has been a quarter, where we have to manage the ins and outs and.
That explains the <unk> sequential decline that you will see but year on year continues to do well.
The next one orders are currently picking up with you again see a lot of questions.
We are quite comfortable with the way it is currently positioned.
Next slide please.
Overall numbers the wall revenues went down please listen for the reasons I just explained but despite that EBITDA.
<unk> of six 5%.
EBITDA.
180 gross one.
8% plus 140 bps in <unk> of about 300 crores for the quarter and find that growth for the year. So far so the business is starting to step up step up the profitability.
Once again.
Slightly.
This is probably the most eagerly awaited slide how do we split the BBB numbers or the point for a minute though.
See the way the monies have come from the <unk>.
100 <unk>.
Line and the mixed because don't forget that next song Harrier and Safari are our most profitable products. Those are the ones, where we did see a volume challenge and Thats. The reason the volume and mix of taking the EBIT number down at the same time variable cost significant savings starting to come through including in battery prices as we had.
Indicated last time, and hence the profitability coming up because of that fixed cost increases fundamentally coming out a fair amount of amortization being pushed through as well as charge offs of Capex is happening.
And the step up in Fms is also cost fixed cost numbers, which we're not unduly concerned about on the <unk> line, we ignite will be the PV business right, but from an EBITDA perspective at nine 2% with a very important number because this is a business we've got.
Wanted to be as close to double digit EBITDA as possible.
We are there. So this business is now nearing the double digit EBITDA.
We at once.
I had an aspiration part of aspirational started the reality at the same time, the EDI business sizes stepping up and the EBITA of minus 5% out of 100 crore loss that youll see needs to be contracts said with some of the numbers that have come out from some other global Oems, we are well in control of our numbers and very much an affordability zone and as part of.
Noteworthy because our losses at about 100 causes.
Product development expenses that are being talked about.
And this is EBITDA will continue to increase further as the battery prices come off further.
Our new contracts are coming in place you should see an improvement in Q3 and a significant improvement into Q4 again remember <unk> benefits have been considered on this so that comes in ads on top of it. So we have the business in the <unk>.
Very well positioned for both growth and profitability increased and market share in the second half of the year as the new products start coming through.
Excellent.
Thank you Andy So let me start with the industry highlights first.
In quarter, two the high base effect of last year quarter two.
In the wholesale was this a single digit growth, which was 50%.
It is important to note that 88% of the sales is now accounted by the new nameplate launches in the industry.
The segment shift a structural issue that we have been seeing towards Suvs.
Further pronounced.
Pronounced in from the portal to now it is at 50% plus share in which is aren't the cost of the deployment patches.
As far as starting with those PV and UV business is concerned as well as he mentioned that the focus was tremendous.
Module transitions will warrant keeping the wholesale volume maintained in line with the plan and we delivered that.
Has been a secret to margin growth has biology of tree awards that clinic.
Very important that we have we have been trending on the segment.
We sold about 48 plus numbers in quarter two.
This was basically on the back of the multi powertrain strategy that we have just cnt's electric as well as spectrum.
Which is really delivering higher volumes in a very challenged segment I would say.
Talking about the bright spots in the industry.
I believe that quarter three is going to see sustained momentum you already saw the first mentor was iPhone sales month and.
There is a strong retail momentum that what is seen in the first period in fiscal <unk>.
So we don't see a problem in terms of the demand as it was being anticipated.
On supply concern clearly looks to be east zone.
Particularly when we talk about the silicon.
As far as startup motors is concerned.
We launched the ICD erosion range, if I remember it and made that as in quarter. One we had launched <unk> <unk>, which was the first product with Crimson and the technology.
Really was received well and in quarter two.
We launched three additional runoff with coincidental technology the first franchise.
No.
Assume that all of them are really bring good biology, sure though that didn't.
H, one BRL, 14% per share and CMT, but this has grown to nearly 20% now.
Launch of new <unk> excellent excellent EDI is under the point with Brent as you had mentioned but.
This will launches have really been good.
The waiting periods were very high and the postman, but in the last few months, we have needed in <unk>.
And that has moderated the.
We think Peter Q3 performance period.
<unk> was also Dsos police took 30 launched.
In.
In the last month, which is October.
This is the most safe guard is for the gene therapy, we're able to get price started shipping, but with the highest ever score set any guarding against book.
Very strong bookings coming in.
It took all the segment leading features and we strongly believe that this slips with Reuben. So we are all the launches that recently, we have done which is <unk> <unk>.
Really augurs well for us in quarter, three and going forward.
In terms of challenges is high levels of January as you know.
And the.
Industry in anticipation of a strong <unk> season, hopefully even the volume of those for you.
Strong demand.
So therefore, we expect that inventory should come.
Within the normal levels.
Regulatory support reduced for the reason some key markets, particularly in talking with dealers London.
Uncertainty uncertainty around the vortex, we would hope.
Hopeful.
And that will get clarified and therefore, the volumes are going to come back.
As I said that Sue's have gained the Siemens represents comment the cost per patches of sedans.
So therefore, our plan would be to ramp up the supply of new launches to drive volume growth umbrella for nexon on slow funding improvements.
So buddy.
Went through a ramp up phase last months, hopefully, we should be able to deliver.
The level of supply is sponsor place in this month.
We have taken some very target reduction for sustainable volumes in Hutches incidents of cigna's eastern segments are equally but with the advantage of the multi Barclays strategy that we have.
And there are certain micro markets and customer segments. We are planning to see how we can sustain our lives here.
Factory.
Thank you so Alicia.
Overall.
Me accelerate a bit here I'll go to the next slide please cash flows.
Only drawing our attention cash profits significantly higher than the enhanced capex that youre running it so.
As a living well within its beams factories.
Again investment spending we are blocking <unk> guided to an 8000 cost spend this year and we are we are on track to secure deliver on that number and then just and shows the overall.
Plans are all well funded.
Yeah.
On Dms for a minute on this this is a business that had its challenges earlier.
But we are coming through our glatt.
This gradually getting it.
Our act together.
After the challenges they faced last year around October and considered collection efforts are delivering results and efficiencies in our 97% and cooing GNP into contained at eight 1%.
Absolute number basis, what used to be almost 5200 crores of GNP overall, it's not down to about 3300 cross because of significant improving on the AG NPL Doubleclick P&C auto is also starting to step up our four 7% and the business diversification is well on track with both on pre owned vehicle financing fleet Opex financing all of that is expanding with.
After the adequacy and dear issues at liquidity all of them comfortable.
Just finalizing on the outlook, we do expect the Lora questions I see on demand we continue to remain optimistic on demand. Despite those external challenges we acknowledge those challenges, but right now we're not seeing that impacting our demand for our products.
And but we do expect to see some moderate inflation seep through.
Our history of performance is likely to improve further.
On on three reasons, one seasonality is starting we will start working in our favor.
Supply is unlikely to improve particularly in <unk> as well as in passenger vehicles and passenger vehicles, a slew of new launches coming through and therefore quite confident on the ability of adding plants.
I'll draw your attention to the <unk>, Inc.
Prove the indication on what we are likely to land the unwritten gena. Thank you to be more around 8% for this year.
And we do believe we can sustain it there.
So overall that is our focus in on the CD side.
Focus, particularly on the CD market shares and continuing to sustain the improvements that youre seeing an eminent to win market share report.
We will not change the pivot to growth. If we were to quantity strategies, we have put in place and double digit return for the entire year, securing that and improving it is important and PV of course get back to market, beating growth and on EV, the focused and squarely be on expanding the market.
And driving up the penetration of our portfolio.
So that's what we have to see.
We will now go into questions of Fitzgerald already 17 lineup.
Any questions coming through so let me start from the question that Kevin first I request our teams good mobile the most recent.
We can go right all the way down to on that particularly at the first question from Dennis.
And I'll ask one.
Richard This is coming out the guidance for EBIT margins increased to 8%.
All of the free cash flow guidance for the remainder of $2 billion.
Should we not expect a higher if you have given a bittersweet.
Okay. Thank you.
So as we said we closed the quarter with excuse me two to four 9 billion pounds worth of debt.
We need to generate one of the quarter billion pounds or more to get down to our target of $7 billion, but its 500 million pounds more than we generated in the first half of the year. We're on track to do so.
One of the things that does put a little bit of difference between EBIT and cash flow.
<unk> our investments in the first half of the year was 775 million pounds. We do expect that to go up in the second half of the year as we start paying for the preparation works in both of our plants in Hollywood and in soluble in the UK to stop producing the next generation of <unk>.
Debt vehicles and also in the facilities to produce the ETA used and the batteries so investment levels as a bit of a disconnect between the change in EBIT guidance and the changing cash guidance, but we still do have 125 billion pounds.
Debt to take down in the next six months, we're on track to Houston.
Okay.
Another question on the same from Indonesia.
One is.
The increasing salience of range Rover range Rover sport and defendant in your order book, but your Asps have declined for the third quarter in a row or do you expect the asps to decline further as mixed benefit started receding.
And.
So let me answer that question and then we'll come to a deferred tax is a series of questions.
Okay. So in terms of average selling price in Q1. It was 74000 pounds in Q2, it was 71000 pounds.
Within that we are setting in Q2, we were a little bit constrained in terms of a range Rover range Rover sport production.
Range Rover in particular, which is a <unk>.
Highest transaction price vehicle went from 18% to 15%.
Sales mix, we do not expect that to be permanent as.
As we bring the second body shop online for our MLA products in Solihull and as we reduced the specific constraints that we've got in terms of range Rover, we would expect that trend to go.
Not to continue.
Yes.
A question on tax rates Richard.
I'm happy to step in as needed, but let me pass it onto is there further deferred tax asset pending to be recognized on how should we look at the whole tax rate for second half and beyond.
Yes.
<unk> balance sheet I think mentioned in Q2.
Historic position around losses.
We do have an unrecognized deferred tax assets of about 1 billion pounds.
We have gone through four quarters of profitability. So we are looking at that.
We have no conclusions as to when that could be brought back onto the balance sheet. The fact that we got such a high on recognize DTA does.
As both the level and volatility to our effective tax rate.
We would like to get that result at some stage.
Okay, and then for a long term basis or just how should we plan the tax rate when you model the value of the company.
Typically I think it would be reasonable to expect somewhere between 25% to 29%.
Thank you.
Coming to India, Girish, there as long as Europe, India Limited series.
Pricing discipline has seen some dilution in the last couple of months, how do you see this evolving.
And what's ailing the LCD industry, how do you see the segment. They all over the next 12 months and then as <unk>, What's your order book size, our the trends in new order intake.
Okay. So.
I think from Tata Motors, we have not seen any drop in the pricing discipline.
In fact, we continue.
<unk>.
With the discipline that we introduced.
By doing last September in a very steadfast manner.
We have seen some deep.
In the month of May.
Mitch I spoke about in the Q1 earnings call. After there is inconsistently.
Growing the market operating prices.
Coming to light commercial vehicles, what is <unk>.
He has remained flat.
And in my view there are two things listed I.
I think in terms of percentage.
Please order the best Brains. This segment has seen.
Significant increase lending more prom.
He is three two years for the NDA for <unk> and.
And as a result, I think the ticket size has gone up.
In competitively I think the freight rates.
Have not.
So to that extent.
And the second thing I would say is I think the.
Financing and hurdle I think post COVID-19.
All the financials have been.
Victor maybe if I may say slow and cautious and therefore all of this put together is keeping this this industry flag, but I can say is that a lot of this I think the quality of books of all the financials has been consistently growing.
Based on article.
But we do believe in the growth potential of this segment and I think once.
Once the economics for the operators balanced so once again I think the industry starkly.
Coming to <unk> I think.
Your question.
<unk>, yes, I as I mentioned, we have received.
So could we get just two days back for the ECB.
Regarding the order book.
If you recollect during the launch we had signed up with the signed up with five customers.
Or the gradual deployment of vehicles.
Those five customers, adding one customer is.
Out of operation as of now.
But we continue to deploy <unk> rest of the four customers months hallmark.
In addition to that I am very pleased to tell you that.
We are also seeing good traction for the <unk> in some of the retail segment.
And at some point of time later I can also speak about this in detail, but we see good traction happening there.
Of course, ranging psyche charging infrastructure.
The financing environment and solve the issues that should remain in the minds of the customers.
Rich.
Backing by increasing the financing period right by increasing the warranty on these vehicles.
We continue to improve the charging infrastructure and I think that actually we see retails of UCB brewing manpower, but you also are coming up with quite a few variants on <unk> to address multiple requirements.
That's finished.
A comment on BLA, where gartner certificates, but obviously theres a lot of scrutiny from the authorities in terms of the Capex spends were contributors.
Capex that needs to be considered so right now we haven't got the BLA monies yet I think we expect internal expectation Q4 advantage of probably player come through less.
Great and CVR posted an intense conversations with the government on that.
Okay.
Gordon This is coming from Robert Walmart as such.
Jana.
How do you expect the order book around on the pace of five K per month that we indicated earlier continue any other comment on that it didn't do you want to take that.
Yes, let me, let me take that balance sheet.
Look we've consistently run that in the order book by about 5000, a month not only in our quarter two but actually for the last nine months. We are building more costs in the second half of the year Richard cover that we have more production days. So I think it's reasonable to assume that the order book for fall a little bit more.
I'll play over the next six months or.
Our intention is to get it back to pre pandemic levels, which we've referenced before around 110000 units and our expectation is that will happen somewhere between the end of this fiscal year and the start of next so I expect our margin acceleration because we're building low costs and therefore fulfilling more of the.
<unk> orders.
From an input cost side, given the higher wage hikes that we are seeing in suppliers like IAC do you expect input procurement cost to go up.
Okay I'll take that one.
We are seeing some areas, where there is still inflation b that wage inflation or other cost inflation, but as I referenced in the charts actually certainly on a year by year basis. This considerable elements that are improving we are spending vastly less on broker buys chips now.
We were beforehand and there are many other elements in relation to commodity costs.
Uneven utility costs that are going down so low I don't think that is likely to be the case in fact, I think the dynamic that you're going to see over the coming time.
We will have to spend marginally more in terms of <unk> and <unk> in terms of order generation.
We will offset those costs by reductions versus last year's levels in our material cost and operational cost.
Thanks Jay.
I think.
Finish security system for the steel Watergate outlook for imminent CV PV growth quite frankly, I think it's coming to both of your growth.
Outlook for next year.
So let me take like this.
I mean FCB.
<unk> Y O Y we will see.
Continued growth in Q3.
It would be almost double digit I think Q4 could be flattish our liquid growth because Q4 of last year was pretty good.
I think talking order quite frankly in my view. It is who are you can speak about it.
Because we our key monitor able reserves the general elections happening in Q1 of next year.
Our Q1 or Q2 demand for next year of MFC.
It at least for one quarter to see how the order book of the fleet owners and the infrastructure vendors.
<unk> and.
<unk> come to know something about that when we meet next quarter okay.
So <unk> and <unk>.
Traditional so mentioned who will lead to really comment on that we need to see where we end this year, which is looking strong.
$4 million.
The base is very high we need to understand that the last financial year the growth was nearly 25%.
And that is very difficult to sustain typically the PV industry.
Mid to long term growth.
A CAGR of 6% to 7%.
<unk> mentioned that the demand will remain strong.
But would be still a single digit in FY 'twenty five, but I must say that it is still very speculative. These are the numbers that we see in a little bit the predictions that we get from various agencies.
I think let's see and whether your trends is what I would say.
Got it.
On the royalty for this I think I would just say that it is these are reasonable royalty and obviously at an arm's length basis.
That's how we would respond to that.
<unk> does the charge of 7800 charges that we have put out there how many of them would be fast Chargers, what are the customer behavior of using them are charging at all.
Yes, I think most of these 7000 charges, especially I'm, saying are the us charges.
These are in hybrids.
And this would be I would say.
My guess would be rate is about 4000, 4500, Ccs through charges, which are either 25 kilowatt or particular work.
<unk>.
So it has a charging behavior is concerned we clearly see through our telematics data that.
More than 90%.
Customers are charging their product.
So the use of public Chargers is less it is only being used in there on the highway.
But primarily the mode of challenging is the home Chargers, which is either a dedicated charges and the backing Scott.
This eventual pit association common charges, which up to it.
Our next question coming from the fish oil I think.
Richard This is coming your way how are you seeing the Jaguar portfolio will you run down and Jaguar.
Calendar year 'twenty for second half before Jaguar Electric has launched.
And does this mean major savings on EBITDA, what are you seeing the Jaguar transition.
Jack you were still performing strongly we sold nearly 25000 <unk>.
In the first half of the year.
Yes, we will wind the production of the current cost down as we moved to.
The new fully electric Jaguar, which as you know we are saying is a copy of nothing is nothing like the existing sets of checking accounts. So we don't really want those overlap we haven't been specific as to exactly when we're going to end each vehicle because some of them are built in <unk>. Some of them are built and solely held some of them.
Built in Australia. So it will vary by plant, but it is reasonably safe to assume that we will run those down before we launched the entirely new electric copy of nothing Jaguar.
In terms of the impact that will have on our EBITDA, yes, we're anticipating the new Jackie.
Really profitable business. So it will be part of our growth plan.
EBITDA and EBIT as we go forward.
As we move from the old Jack you've achieved.
Yeah. Thanks Richard.
Our next question from one of the more Steve.
Steve <unk> question is failure is coming your way or can you talk about this on <unk> Bank of America.
Can you talk about the outlook in India. There has been some positive momentum. So how low can you talk about the pace of production adoption that we see now and what are the key drivers of stepping it up yes.
<unk> the sufficient return and the last one month I would have been a state multiple people.
Completely understand where this is coming from some of the negative articles, which had some on this.
But if you really see the facts.
In each one we have seen a growth of 107%.
<unk>.
For us it has been about 76%. So it does it is very strong I would say.
There has been a quarter on quarter decline in impactful, primarily because one it's a remote there are several launches which happened in the.
EV industry and.
And the late quarter four of last financial year quarter one.
Also.
This financial year and.
And you'll know that whenever there is a launch that is a spike in the demand and there is a feeling of the channel with <unk>.
Place for those new models.
Then you see.
It's stabilizing at lower levels that is the phenomenon that you're seeing in quarter that's number one.
Number two.
It makes one EV has been though one of the highest selling models in the.
Industry.
I.
I covered in the presentation, but would you also spoke about.
That we had to ramp down the volumes of nexon EV because of the transition to the new model and therefore it impacted in the positive.
The code in fact I also covered in the presentation is that they don't none of which is nearly 10% to 15% of the EDA industry.
The route that we work.
It was taken away it is not because it has been taken away the demand Kimball, but in anticipation that it will be rewarded the still remain strong.
So these were the three big factors why you have seen quarter on quarter, but these are not consume reasons right.
Now coming to mid to long term what will be the Edr group were the drivers of growth are going to come from.
See the biggest opportunity is there.
75% of the sales of Evs today is coming from only 25 cities.
So all the manufacturers, including us being the market leader.
Year to expand into the larger part of the country, where there is a <unk>.
Huge demand which has landed.
Second I would see that.
We are already seeing announcement of multiple evs by different players and remember that whenever there's a new price point.
Auto new body bodies told that to you.
Offer in the market there is all of sudden jump and Ricky elaborate what IMC just take Thiago.
Before tier will evoke loans every quarter.
<unk> used to sell about 40% of clean paws.
After Thiago <unk> launched its moved up to $25 because it was a new price point that we can.
Brought into the market in.
In the coming quarters and years Youre going to see.
It is covering the entire spectrum of price range, which is going to really increase the volumes significantly I would say that's the second big trailer.
Third one.
Is the charging.
We all know that the biggest.
Impediment to the growth of <unk> has been charging it for them.
And the very fact that 93% of people are charging at home also.
It signifies that people are right now comfortable traveling in the cities.
But this drastic increase in public charging, which we are anticipating especially with the highways.
The next two years also.
This will unleash.
Sure.
The mainstream customers because today it is early adopter or early majority wishes bye.
Our mainstream Bud will only buy when they get the comfort on the hires in biopsy negatives going to drastically increase because number one would be the oil marketing companies im not even talking about counterparty, which also has an aggressive plan that has slipped and CPO is also working very aggressively.
Oil marketing companies have.
800 growth of subsidy provided by the government to put credit and closing chapters on the highways bankrate liquidity for.
And this is going to really significantly applauded us tailwind to tap the mainstream buyers I think Mitch.
Mid to long term and in the coming quarters, we will see very strong.
Thanks Rich.
<unk> already answered about the state of the P&I, maybe another question coming away.
And Adrian feel free to chip in.
Anything stylishness significance of this platform sharing with <unk>.
On the EMEA side for the range of products.
I think this is a very significant significant development you are already albeit with ourselves.
We heard the showcase of anemia in <unk>.
<unk> courseware and prior to that we had.
Unveiled at for the fourth screen.
This is the first time that we will be entering into the premium.
The <unk> segment.
And we evaluated multiple platforms.
Including doing a grounds up.
Both assets.
But when we bought the opportunity to evaluate email.
The product.
While our positioning is going to be different and Gina positioning, but this unleashes a big opportunity for us to access.
Our state of art features.
New <unk> features which we'll be acquiring in the coming years, which comes from the electrical electronic architecture.
And a very mature platform, which has been developed by our Jinan, which will really improve the reliability predictability future readiness of this platforms. This is a big deal was to position ourselves on a very strong strong pedigree of Jinan EBIT platform. So that's number one.
Number two is that <unk>.
The two companies have an opportunity to really.
Did I think the synergies on the cost side.
Certain parts will be unique will be localizing license, so that will give us the cost advantage, but also gives us a positive <unk>.
We also have some of those cost benefits at the same time when it comes to.
The high Tech component I think gena negotiating power with the supply and also benefits our suites.
Benefit on both sides, so cost becomes a big key.
And most importantly give.
Given the maturity of the platform. It also helps us reduce the times. So we see multiple benefits of working together.
And so thats, particularly I think we will bring a very premium electric SUV, which will be on a very strong pedigree of Japan.
Okay.
Andrew anything to add from your side on this.
I agree with all of those three things and I think the only thing I would like to add.
We've talked for at least four years about the increase increasing collaboration between jet R&D, the broader Tata group and I think with the announcement in July around <unk> and now this announcement hopefully everybody listening is starting to understand.
Sure of that relationship, which will continue going forward and I'm sure.
Beyond the levels, we've announced already so I'm delighted with the progress in the last six to 12 months that we've made as a group.
Thank you.
Let's.
Another flavor other question, maybe Richard is coming your way.
Any view to the 10% EBIT margin that youre given for FY 'twenty, given the updated guidance for the current year to 8%.
I mean, there's no change in our guidance that we will get to double digit margins FY 'twenty six.
Yes.
Okay.
Question I think.
Two or three flavors of depression, and Girish coming your way as eminent ceding market share gain that you are currently seeing can you give more color to it.
All of those variables coming from why do you think M&A and this is likely to sustain.
Okay.
So thank.
I think in the munis television and for that matter.
I will say the truck segment.
Adding <unk> OXXO.
Our focus has been to improve the value proposition is currently.
Finally, what it would be selling is too weak.
Since from the customer great ideas with you.
At intermodal.
This call production Immunotoxin I think this quarter or in.
Improving the value being delivered to the stores.
So in the value delivered to the customer let me talk about the product I think.
Position and our strategy.
On the.
Consistently improving.
The product every emission compliance or regulation regulatory gate.
Has been predicated so we improve the <unk> significantly DLC sales when we did that again in <unk>.
And I think in Q1 as the product scope established and with lot of back go back trials.
I think the TCR improvement work established which therefore.
Led to good value for the customer.
In addition to that I think you also given.
The performance of our hydro power to weight ratio, which also I spoke about in the last quarter. I think that is also unique to very good traction, especially in the in the paper segment.
In addition per bag I think all the years, we have improved.
Our service offerings significantly.
Very attractive annual maintenance contract and I think in the six electronic.
The annual maintenance contract is also making significant defense along with the key account engagement that you put in.
Yes.
Finally, I think I will start there <unk> now.
He is also helping the customers to actually accrue value in real life usage of the vehicles and this is clearly becoming a differentiator in the marketplace.
Especially in the cargo segment and in a different manner in the paper segment. So I think all of this put together before.
It's a strong value proposition for the customers.
And you also asked about what we would do for the future I think we will stay committed to this.
Every year model year is nicol.
And trucks and as also with everybody.
Regulatory change I think we will continue to improve the value proposition for the customer.
Thanks Krish.
Probably this question came from the M&A. So your question came from a vanilla in November.
There are all sorts of discretionary dollars.
Another question from him, but now on the BD still sales.
Or do you see it performing.
Market demand, yes. So.
And I talked about not Archrock Smith Street.
Even the last not auto was very strong for us.
You already had a very tiny base picked up.
I'll be happy to share that we saw nearly 40% growth.
<unk>.
And the last will receive 15 days on <unk>, which has passed since the startup.
In terms of registration and <unk>.
16% growth in terms of <unk>. So it has been a very strong period for us on the back of new launches success of Sandy.
Thanks.
Our next question from China Moly Goldman Sachs.
Some of those questions have already been answer I'll, just pick up the ones that are not yet answer.
Again challenge to you also what are the initial trends in the new next one was the old Nexon how are orders picking up.
This was an easy path, but maybe with my own holding both axes.
Very strong very strong response to next one.
Said that three to four months of waiting period, depending on the variant.
But.
As far as Evs is also concerned these early times from three times increase in the booking rates as compared to the nominal <unk> been seeing the next one or two months how this.
Volume stabilizes.
But.
Excellent response to both the products great again.
Again, staying with you.
The EV margins one of the key contributors for the quarter on quarter improvement and that monitors I think they're afforded piece I would say food factors underlying that number one is the sale cost reduction, which we have already seen about 15% to 20%.
You will receive further reduction.
A significant amount I would say in the quarter three also and going forward. We are also optimistic.
Then we have also the non silicon cost reduction which is.
Back minus set of items.
And lot of these items were imported but as we have been working on the BLA. There is lot of localization action, which has happened which is another source of cost reduction that we have seen.
<unk> is also the use of new generation and compliant aggregates when we launch.
For example in <unk> plus months.
Shifting to the music region Audiotronics as well as some of the aggregates.
Which really helped us in not only improving the performance efficiency, but also cost.
And the last one would be there's a massive cost reduction program. This is also going in the CD side. So the <unk> cost reduction actions that cytosorb. Some benefits. So this will be the floor.
Thank you.
I think a question krish coming your way or pricing that you announced in October can you give us a sense of what magnitude of this.
And obviously the raw material environment, maybe you can come back.
Yes.
See I think.
We should also look at it look at this in the context right.
And as I mentioned something back since last September you.
We had not taken any price increase right, which is the list price increase there was no price increase whatsoever for more than 12 months.
And this is despite the inflationary environment that one saw the commodities and especially steel and persist Nicholas.
Alright.
So we I mean the entire.
Germany. During these 12 months was about realization improvement.
Now in the month of October after one year, we have taken a list price increase.
And we will pass through this price increase.
Gradually during this quarter.
We're already on track for that.
In terms of.
Commodity environment as I spoke I think you are looking at some of the green on the steel.
Thanks.
We are keeping a close watch on that.
There could be some impact on precious metals, but that is more petrol engine maintenance.
Back on CEB lesser.
Thanks Rich.
<unk>.
Richard Adrian this is coming area again of any thematic question coming in in terms of slowdown in global markets, coupled up with US. Some do you agree that it will slow down, but let me leave it to you to answer that.
Are there any visible signs and due to this and also the EV penetration slowdown many Oems are pushing out the launches what is your perspective.
And in order to turbocharge the demand in this slowing down environment, how much of <unk> can can happen how will you plan to manage this and path moving.
Please.
And so there is a there is a slowdown which we see.
In some markets.
I Shouldnt say too much about other Oems, because obviously I'm not close to that.
That particular circumstances, but with the levels of.
Of discounting that is happening generally only happens when supply is significantly.
Overall levels of natural demand.
So I suspect that's.
That's one of the causal behind much of that discounting interest rates clearly very high a lot of the.
Incentive deals are underpinning those interest rates, 8% in the EU the U S, which a lot of the Oems are sub planting and we're not.
So I think the big point here is as a huge differentiation between our positioning in the marketplace.
<unk> in the one percentage plus level.
Compared to others.
The Big reason for that is still of course is back to the earlier discussion we have.
A huge amount of pent up demand, which we're slowly slowly working through and a huge capability to increase incentives and the significantly lower than in the marketplace going forward in FY 'twenty five of which we will look to do as we close out the balance of this year. So I think we're in a really healthy.
Place really good place in a very very difficult market, but we're very wary about the difficulties in the marketplace as well. So our intention is to stay in front of the problem here.
Thank you Andrea.
Sure.
Next question comes from Nishu, Jalan on the PD business a lot of those questions have been answered maybe one specific one I would say has there been any production constrained as dispatches appear to be lower in the last two months and when do we start the production.
San <unk> plant and when should we expect carbon O'hara.
So as settled last two months is concerned I think last month, we were the highest level in terms of offtake. So that was the highest production month for us, but still we lost opportunity because it was the first months of ramp up of <unk>. So we could not fully produce.
What we would have intended to.
A month prior to that again.
It's also a month of significant DRAM, Donald <unk> and some of the models and see compact sedan and hedges.
So thats been the case, but I think exit number is more important which has been the highest the second question was biology on.
Right yes.
Goldman Sierra So carbon zero is planned to be launched in $2024 five respectively.
So that's one dynamic and as far as Shannon. This concern that was a production issue.
So that's one associated fall in the first half of the liquidity.
Thanks, guys.
Question on freight Tiger, there's some from what I'm, saying.
<unk>.
What are the transaction valuation and the burn rate in the funding needed for the next three years to three years.
See the the way the Transat.
Transaction has been structured if you recollect, we had paid about 150 cross border kind of six 7% stake at.
Values of business at roughly about 20 cost so that's the transaction valuation.
And we also know where the next two to three years whatever the cash we're going to do that we're estimating roughly about 100 roseville burn in that and therefore that is what we have.
We are ready with the funding for that as well so that business is well funded and ready to neither to meet its objectives and we obviously will want to work closely within freight Tiger and fleet age to ensure we drive maximum synergies and also logistic business cases, and how that can done manage this burn rate and step up growth rates is something that we will be working with them in the coming.
Yes.
Our.
Next question from couple of thing in PV.
Some of your competition has seen shop clearance of order books out there the New York, Yes.
For the various ICBM cmg's.
So it was very much expected because the order book was being created prior to the festive season and Pacific season has released.
Most of them for competition and engineered by the industry I would say.
In our portfolio I would say for certain models. The regular models of course, we have also seen the depletion of the order book.
Sure.
In the first period, because it was the phase of delivery and we already are working on creating fresh orders, but it has been more than offset I would say with the new launches that we know.
We have in the last two months, how do you supply. The next one so it's pretty balanced students and therefore, how do you see the PD volume run rates in the second half.
So second half as well as you also mentioned in your presentation that it should be strong on the back of new launches that we had and which we will have in the coming quarters.
<unk> again auto PLE.
As I said earlier Q4 than we had expected to see the cash starting to come true, but let's wait for that and then we should be there, but everybody around all stakeholders committed to make it happen. So let me correct.
Ashish Jain Macquarie next one Richard is coming your way or when do we see the <unk>, our working capital cycle reverse given the GBP. One 4 billion build that we saw in FY 'twenty two 'twenty three.
So we will see some of that reversed during the second half of this year, our working capital cycle tends to improve as our volumes improve so some of that will reverse through the through the next six months thats possible delivery of our $1 two 5 billion pounds.
Operating cash.
Thanks.
Our next one comes from promote UBS battery plant can you. Please share the status of the battery plants.
Yes.
In July we announced the.
The UK tie up or setting up a battery plant debt.
And India is also on schedule at this point in time on the on the internal plans. Obviously, you should expect to hear more on these plans in the coming days. So we'll wait for the news for assemblies.
Oh.
India, Esa and from promoting <unk> any update on fundraising currently there are no plans for Andreas on the EDM and therefore, we have probably replaced on Capex funding for the business absolutely secured the 7500 that came through from <unk>.
TPG.
50% of the 2.2 billion funding the BLA is the other one so between the two we are well funded.
Give me a minute please.
Yeah.
I think so far the and how do you have already answer so let me leave the Doc.
And in detail on the BLA benefit is the capex spending a lot of questions on trying to understand BLA benefit Cherokee would only give it to drive thrus in England.
I think you covered it but I think it's mixed.
What does this BLA BLA for Golar book.
Okay. Let me let me there are three aspects to the BLA that is their number one there is a threshold capex is about 120 cost, which we have comfortably meet and then there is a target capex that needs to be spent because of our 2000 cost anything to dollars spent over the 190 Cros is treated as an inability for opioid.
Number one number two there has to be a 50%.
Localization that needs to happen other than batteries for that that was one of the areas certification is all about going through the entire space. There and this capex has to be eligible capex on specific areas, it's not like any and all capex there.
Then once you are eligible for this you will get a benefit anywhere from 13% to 18% of the EV sales that you'll do what you have already the legal entities are already pre cleared with the authorities. So this is the construct of the PV setup right now we've got the FAA certification confirming for keep us in compliance.
Forgive us and localization for Tiago <unk> and ACD.
And we will obviously be the reason we did not work next month departments.
Ill go in HBV and the reason we did not put the next one where the new next one I've just been lots. So therefore, you would rather take the but there is a quite an elaborate process of getting it right. So we will now be putting up next one product per well than the respective new brands will also come on to it.
Also in the backlog and the pipeline, mostly meeting the GVA requirement.
About the process. So we are confident of getting the DVA requirement and then once this is there then obviously they scrutinize you for understanding did you've made all the eligible capex and that the cost is currently underway. Once that is done then you are eligible to be aligned your EV sales has to be authorized by the statutory auditor of yours.
<unk> given given to IFC IFC is the one that approves. These numbers and then the ministry of heavy industry makes the payback on that this is the process. Obviously I may have missed a few steps in this but by and large this is what wondering if there are other new supply teams.
And that is offset any supplier claims on that will be offset against that but this is a broad schema.
So to Coca Cola or else.
From all the.
First half margin within our full year guidance conservative.
<unk> already talked about so let me skip it I think they are not coming to an end of all the questions right.
Just given the medically and give them anything I'm missing there.
Silence plus couple things final plank and this caused a dip in BD business margin what are the off term volume outgrows, it will not be margin dilutive and by rich. When you can already retired a couple already in these costs are already it might be and it will go to the factory has been.
However in early January and therefore, the cost is already in our P&L Therefore upping.
I think to talk about that in a walgreens or anything you're picking up if you recollect.
We sold 48000 last month, our Capex, our Max capacity will stretch up to 55. So we are already asked.
Get a limit in terms of our capex and our capacities and is only going to add as volumes of margin as volumes pick up.
Yeah.
I think with this.
Now that <unk> gotten from BNP Securities do you feel the biggest impediment to EV growth is absence of secondhand EV market very interesting question do you want to pick that up.
Yes, I think of it as an important.
But I would not say that this is the biggest impediment there are other barriers.
Roadblocks to adoption of <unk>.
Mainstream buyers are concerned I talked about it but this is an important aspect frankly, when we talk about the early adopters.
They really don't worry too much about this.
But.
Also you know that we launched nexon EV.
Which is the nexon EV training with the low range in January liquidity, so still.
A lot of this is not in supply. So once it comes into play then we'll be able to assess.
The market for this there will be market because if there is a market for new card.
There are a lot of people who are considering evs would try to buy a car in a good condition.
At a much lower price are willing the benefits of operating costs.
Lower maintenance cost and so on.
We intend to help those customers when they think of selling off there Scott.
Pushing in the used car market.
Transferring the warranty also benefit the next buyer.
So that that constraint is not dead.
But I think still the used car is not in the inventory given that it's hardly three years since we launched the cup.
Yes, I think with that we are done with the questions.
Thank you for the searching questions really.
We had enjoyed answering those questions are more than happy to take any further questions that you may have offline.
Do reach out to the Investor relations team and will be happy to reach out to you. Once again, thanks for taking the time to add inefficient and look forward to speaking to you in the coming days.
Thanks, Mike and thanks team Dana and thanks, guys.
Okay.
Yeah.