Q1 2027 SPR Auto Technologies Ltd Earnings Call

August 5, 2026

Speaker #1: Ladies and gentlemen, thank you for patiently holding. The conference is expected to start in a few minutes. Please continue to hold. Ladies and gentlemen, good day and welcome to SPR Auto Technologies Limited Q1 FY27 earnings call.

Moderator: Ladies and gentlemen, thank you for patiently holding. The conference is expected to start in few minutes. Please continue to hold. Ladies and gentlemen, good day and welcome to SPR Auto Technologies Limited Q1 FY27 earnings call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. Today from the management, we have with us Mr. Krishna Kumar Srinivasan, Managing Director and Chief Executive Officer, and Mr. Prem Rathi, Executive Director and Chief Financial Officer. Before we begin, let me remind you that this discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors.

Speaker #1: As a reminder, all participant lines will be in listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touchtone phone. Please note that this conference is being recorded.

Speaker #1: Today, from the management, we have with us Mr. Krishnakumar Srinivasan, Managing Director and Chief Executive Officer, and Mr. Prem Rathi, Executive Director and Chief Financial Officer.

Speaker #1: Before we begin, let me remind you that this discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors.

Speaker #1: It may be viewed in conjunction with the business risks that could cause future results, performance, and achievements to differ significantly from what is expressed or implied by such forward-looking statements.

Moderator: It may be viewed in conjunction with the business risk that could cause future results, performance, and achievements to differ significantly from what is expressed or implied by such forward-looking statements. I now hand the conference over to Mr. Krishna Kumar for his opening remarks, post which we will open the floor for an interactive question and answer session. Thank you and over to you, sir.

Speaker #1: I now hand the conference over to Mr. Krishnakumar for his opening remarks, after which we will open the floor for an interactive question and answer session.

Speaker #1: Thank you, and over to you, sir.

Speaker #2: Thank you, Saniya. I hope you can hear me well.

Krishna Srinivasan: Thank you, Sonia. Hope you can hear me well.

Krishnakumar Srinivasan: Thank you, Sonia. Hope you can hear me well.

Speaker #1: Yes, sir. Please go ahead.

Moderator: Yes, sir. Please go ahead.

Speaker #2: Okay, thank you. Good evening, everyone. Thank you for joining us for this Q1 FY27 earnings call. We hope you have had an opportunity to go through the financial results, the investor presentation, and the press release, which are published on the stock exchanges and the company website.

Krishna Srinivasan: Okay. Thank you. Good evening, everyone. Thank you for joining us for this Q1 FY27 earnings call. We hope you have had an opportunity to go through the financial results, the investor presentation, and the press release, which are published on the stock exchanges and the company website. I am really pleased to share that SPR Auto Technologies has commenced the financial year 2027 on a very strong note and delivered an encouraging performance during Q1 FY27, as the company delivered a 51% year-on-year growth on a consolidated total income and a 27% year-on-year growth on consolidated EBITDA. The strong performance is particularly noteworthy given the challenging industry backdrop characterized by elevated commodity prices, supply chain disruptions, and broader macroeconomic uncertainty stemming from heightened geopolitical tensions. Moreover, commodity cost adjustments normally have a time lag of a quarter for regularization customers, thereby presenting a temporary gap in the margins.

Krishnakumar Srinivasan: Okay. Thank you. Good evening, everyone. Thank you for joining us for this Q1 FY27 earnings call. We hope you have had an opportunity to go through the financial results, the investor presentation, and the press release, which are published on the stock exchanges and the company website. I am really pleased to share that SPR Auto Technologies has commenced the financial year 2027 on a very strong note and delivered an encouraging performance during Q1 FY27, as the company delivered a 51% year-on-year growth on a consolidated total income and a 27% year-on-year growth on consolidated EBITDA. The strong performance is particularly noteworthy given the challenging industry backdrop characterized by elevated commodity prices, supply chain disruptions, and broader macroeconomic uncertainty stemming from heightened geopolitical tensions. Moreover, commodity cost adjustments normally have a time lag of a quarter for regularization customers, thereby presenting a temporary gap in the margins.

Speaker #2: I'm really pleased to share that SPR Auto Technologies has commenced the financial year 2027 on a very strong note and delivered an encouraging performance during Q1 FY27, as the company delivered a 51% year-on-year growth in consolidated total income and a 27% year-on-year growth in consolidated EBITDA.

Speaker #2: The strong performance is particularly noteworthy given the challenging industry backdrop, characterized by elevated commodity prices, supply chain disruptions, and broader macroeconomic uncertainties. Stemming from heightened geopolitical tensions, moreover, commodity cost adjustments normally have a time lag of a quarter for regularization customers, thereby presenting a temporary gap in the margins.

Speaker #2: Even with the above impacts, the company has delivered a strong financial performance during the quarter. Consolidated profit before tax grew by 7% year-on-year in Q1 FY27, while profit after tax increased by 9% year-on-year.

Krishna Srinivasan: Even with the above impacts, the company has delivered a strong financial performance during the quarter. Consolidated profit before tax grew by 7% year-on-year in Q1 FY27, while profit after tax increased by 9% year-on-year. The growth is after reflecting the flow-through impact from EBITDA, primarily contributed by higher finance costs to fund the acquisition of the automotive interiors and lighting businesses. These elevated finance costs are expected to be temporary and should normalize as the related debt is repaid. Post the GST 2.0 reforms, we are seeing a phenomenal growth in both the two-wheeler and the passenger car markets. We expect this volume momentum to continue for the above segments and also for the commercial vehicle and tractor segment throughout the year. Our strategy to invest in technology and capacity ahead of time has really helped us to cater to these increased demands.

Krishnakumar Srinivasan: Even with the above impacts, the company has delivered a strong financial performance during the quarter. Consolidated profit before tax grew by 7% year-on-year in Q1 FY27, while profit after tax increased by 9% year-on-year. The growth is after reflecting the flow-through impact from EBITDA, primarily contributed by higher finance costs to fund the acquisition of the automotive interiors and lighting businesses. These elevated finance costs are expected to be temporary and should normalize as the related debt is repaid. Post the GST 2.0 reforms, we are seeing a phenomenal growth in both the two-wheeler and the passenger car markets. We expect this volume momentum to continue for the above segments and also for the commercial vehicle and tractor segment throughout the year. Our strategy to invest in technology and capacity ahead of time has really helped us to cater to these increased demands.

Speaker #2: The growth is after reflecting the flow-through impact from EBITDA, primarily contributed by higher finance costs to fund the acquisition of the automotive interiors and lighting businesses.

Speaker #2: These elevated finance costs are expected to be temporary and should normalize as the related debt is repaid. Both with the GST 2.0 reforms, we have seen phenomenal growth in both the two-wheeler and the passenger car markets.

Speaker #2: We expect this volume momentum to continue for the above segments and also for the commercial vehicle and tractor segments throughout the year. Our strategy to invest in technology and capacity ahead of time has really helped us to cater to these increased demands.

Speaker #2: This performance underscores the strength and resilience of our diversified business model our continued focus on operational excellence and the effectiveness of our strategic initiatives.

Krishna Srinivasan: This performance underscores the strength and resilience of our diversified business model, our continued focus on operational excellence, and the effectiveness of our strategic initiatives. We remain focused on driving cost efficiencies, streamlining the supply chain, integrating the low-cost automation and digitization programs across all our manufacturing operations, and optimizing inventory and logistics planning. These initiatives are aimed at strengthening the structural resilience across the business and form the foundation of our established and growing presence in the auto components industry. We continue to build on our strong leadership in legacy products while steadily scaling our powertrain-agnostic businesses, which, of course, enhances the future readiness of our portfolio. In the legacy business, we achieved a key milestone during the quarter with the successful completion of the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited.

Krishnakumar Srinivasan: This performance underscores the strength and resilience of our diversified business model, our continued focus on operational excellence, and the effectiveness of our strategic initiatives. We remain focused on driving cost efficiencies, streamlining the supply chain, integrating the low-cost automation and digitization programs across all our manufacturing operations, and optimizing inventory and logistics planning. These initiatives are aimed at strengthening the structural resilience across the business and form the foundation of our established and growing presence in the auto components industry. We continue to build on our strong leadership in legacy products while steadily scaling our powertrain-agnostic businesses, which, of course, enhances the future readiness of our portfolio. In the legacy business, we achieved a key milestone during the quarter with the successful completion of the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited.

Speaker #2: We remain focused on driving cost efficiencies, streamlining the supply chain, integrating the low-cost automation and digitization programs, across all our manufacturing operations and optimizing inventory and logistics planning.

Speaker #2: These initiatives are aimed at strengthening the structural resilience across the business and form the foundation of our established and growing presence in the auto components industry.

Speaker #2: We continue to build on our strong leadership in legacy products while steadily scaling our powertrain agnostic businesses. Which of course enhances the future readiness of our portfolio.

Speaker #2: In the legacy business, we achieved a key milestone during the quarter with the successful completion of the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited.

Speaker #2: This acquisition strengthens our piston manufacturing capacity and also enables us to meet the growing demand for all our products. I'm happy to state that we are continuing to win new programs for hybrid and flexible applications from all our customers in the legacy business.

Krishna Srinivasan: This acquisition strengthens our piston manufacturing capacity and also enables us to meet the growing demand for all our products. I am happy to state that we are continuing to win new programs for hybrid and flex fuel applications from all our customers in the legacy business. The integration of the recently acquired automotive interiors and lighting businesses progressed very well during the quarter. These businesses continued to deliver a strong performance, reinforcing the strategic rationale for the acquisition. We remain focused on aligning the operating processes, leveraging cost-saving opportunities, and unlocking cost and operational synergies across the group. Post our acquisition, the auto interior business has also won some very important customer programs to fuel the future growth of this segment. The electric motor and controller business has been continuously exceeding all the targets that we have set for the businesses at the beginning of this year.

Krishnakumar Srinivasan: This acquisition strengthens our piston manufacturing capacity and also enables us to meet the growing demand for all our products. I am happy to state that we are continuing to win new programs for hybrid and flex fuel applications from all our customers in the legacy business. The integration of the recently acquired automotive interiors and lighting businesses progressed very well during the quarter. These businesses continued to deliver a strong performance, reinforcing the strategic rationale for the acquisition. We remain focused on aligning the operating processes, leveraging cost-saving opportunities, and unlocking cost and operational synergies across the group. Post our acquisition, the auto interior business has also won some very important customer programs to fuel the future growth of this segment. The electric motor and controller business has been continuously exceeding all the targets that we have set for the businesses at the beginning of this year.

Speaker #2: The integration of the recently acquired automotive interiors and lighting businesses progressed very well during the quarter. These businesses continued to deliver strong performance, reinforcing the strategic rationale for the acquisition.

Speaker #2: We remain focused on aligning the operating processes, leveraging cross-selling opportunities, and unlocking cost and operational synergies across the group. Post our acquisition, the auto interior business has also won some very important customer programs to fuel the future growth of this segment.

Speaker #2: The electric motor and controller business has been continuously exceeding all the targets that we set for the businesses at the beginning of this year.

Speaker #2: Also, the high precision injection molded components business has also witnessed a very significant growth during the quarter. We also continue to make a very steady progress on all our group-wide capacity expansion programs.

Krishna Srinivasan: The high-precision injection molded components business has also witnessed a very significant growth during the quarter. We also continue to make a very steady progress on all our group-wide capacity expansion programs. These investments are designed to support customer programs, enhance capacity availability, and create a stronger platform for future growth across all our products. All our businesses, including the legacy engine components business, the automotive interiors lighting, the high-precision injection molded components, and the EV motors and controllers, continued to perform very well during the quarter. The power agnostic business now contributes over 35% of our consolidated total income, while nearly 60% of the overall business is positioned to remain relatively insulated from the impact of EV penetration. This reflects the steady progress of our diversification strategy and the increasing strength of our group.

Krishnakumar Srinivasan: The high-precision injection molded components business has also witnessed a very significant growth during the quarter. We also continue to make a very steady progress on all our group-wide capacity expansion programs. These investments are designed to support customer programs, enhance capacity availability, and create a stronger platform for future growth across all our products. All our businesses, including the legacy engine components business, the automotive interiors lighting, the high-precision injection molded components, and the EV motors and controllers, continued to perform very well during the quarter. The power agnostic business now contributes over 35% of our consolidated total income, while nearly 60% of the overall business is positioned to remain relatively insulated from the impact of EV penetration. This reflects the steady progress of our diversification strategy and the increasing strength of our group.

Speaker #2: These investments are designed to support customer programs, enhance capacity availability, and create a stronger platform for future growth across all our products. All our businesses, including the legacy engine components business, the automotive interiors, lighting, the high precision injection-molded components, and the EV motors and controllers, continued to perform very well during the quarter.

Speaker #2: The power-agnostic business now contributes over 35% of our consolidated total income, while nearly 60% of the overall business is positioned to remain relatively insulated from the impact of EV penetration.

Speaker #2: This reflects the steady progress of our diversification strategy and the increasing strength of our group. We continue to strengthen our ESG credentials through focused investment in renewable energy and robust sustainability practices.

Krishna Srinivasan: We continue to strengthen our ESG credentials through focused investment in renewable energy and robust sustainability practices. ESG remains a very strategic priority for the company, and we are pleased to report that we achieved a CDP B rating for climate and water disclosures. We obtained our TÜV certified sustainability assurance. We secured certifications under ISO 14064, ISO 50001, ISO 46001, ISO 17029, and ISO 27001. We were also recognized with an EcoVadis bronze medal, putting us in the top 35th percentile globally on sustainability achievements, Dun & Bradstreet's highest ESG rating of 2 in India, a CII Award for corporate sustainability, further reaffirming our commitment to responsible business practices and long-term sustainable value creation. We have also continued our journey of winning many awards from all our customers across the country.

Krishnakumar Srinivasan: We continue to strengthen our ESG credentials through focused investment in renewable energy and robust sustainability practices. ESG remains a very strategic priority for the company, and we are pleased to report that we achieved a CDP B rating for climate and water disclosures. We obtained our TÜV certified sustainability assurance. We secured certifications under ISO 14064, ISO 50001, ISO 46001, ISO 17029, and ISO 27001. We were also recognized with an EcoVadis bronze medal, putting us in the top 35th percentile globally on sustainability achievements, Dun & Bradstreet's highest ESG rating of 2 in India, a CII Award for corporate sustainability, further reaffirming our commitment to responsible business practices and long-term sustainable value creation. We have also continued our journey of winning many awards from all our customers across the country.

Speaker #2: ESG remains a very strategic priority for the company, and we are pleased to report that we achieved a CDP B rating for climate and water disclosures. We obtained our TUV-certified sustainability assurance, and we secured certifications under ISO 14064, ISO 50001, ISO 46001, ISO 17029, and ISO 27001.

Speaker #2: We were also recognized with an Eco Bronze medal, putting us in the top 35th percentile globally for sustainability achievements, earned Bradstreet's highest ESG rating of two in India, and received the CII Award for Corporate Sustainability, further reaffirming our commitment to responsible business practices and long-term sustainable value creation.

Speaker #2: We have also continued our journey of winning many awards from all our customers across the country. We have also obtained our TSAC certification and are happy to state that, from a cybersecurity angle, we as a company are well positioned to be able to counter any possibilities in the future.

Krishna Srinivasan: We have also got our TISAX certification done. We are happy to state that from a cybersecurity angle, the company is well-positioned to be able to counter any possibilities in the future. Looking forward, we remain focused on disciplined execution, strategic investments, and sustained operational excellence. Backed by a diversified product portfolio, long-standing technology partnerships with global industry leaders, and deep customer relationships, SPR Auto Technologies Limited is now well positioned to drive its next phase of growth and create sustainable long-term value for all our stakeholders. I thank you all for all your continued support. I am looking forward to taking your questions. I request the moderator to open the floor for question and answers. Thank you once again.

Krishnakumar Srinivasan: We have also got our TISAX certification done. We are happy to state that from a cybersecurity angle, the company is well-positioned to be able to counter any possibilities in the future. Looking forward, we remain focused on disciplined execution, strategic investments, and sustained operational excellence. Backed by a diversified product portfolio, long-standing technology partnerships with global industry leaders, and deep customer relationships, SPR Auto Technologies Limited is now well positioned to drive its next phase of growth and create sustainable long-term value for all our stakeholders. I thank you all for all your continued support. I am looking forward to taking your questions. I request the moderator to open the floor for question and answers. Thank you once again.

Speaker #2: Looking forward we remain focused on disciplined execution strategic investments and sustained operational excellence. Backed by a diversified product portfolio longstanding technology partnerships with global industry leaders and deep customer relationships SPR Auto Technologies Limited is now well positioned to drive its next phase of growth and create sustainable long-term value for all our stakeholders.

Speaker #2: I thank you all for all your continued support and I'm looking forward to taking your questions and request the moderator to open the floor for question and answers.

Speaker #2: Thank you once again

Speaker #3: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone.

Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Radha from Motilal Oswal Financial. Please go ahead.

Speaker #3: If you wish to remove yourself from the question queue you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Radha from Motilal Oswal Financial.

Speaker #3: Please go ahead.

Speaker #4: Hi team, congratulations on the staff improvement and handling performance. So, my first question is: Angling Global has introduced several next...

[Analyst] (Motilal Oswal Financial): Hi, team. Congratulations on the smart improvement in Antolin performance. My first question is, Antolin Global has introduced several-

Radha Agarwalla: Hi, team. Congratulations on the smart improvement in Antolin performance. My first question is, Antolin Global has introduced several-

Speaker #3: Sorry to interrupt Radha. Your voice is not clear.

Moderator: Sorry to interrupt. Sorry to interrupt. I'm sorry, your voice is not clear. Is this better?

Moderator: Sorry to interrupt. Sorry to interrupt. I'm sorry, your voice is not clear.

Speaker #4: Is it better?

Radha Agarwalla: Is this better?

Speaker #2: Yeah.

Krishna Srinivasan: Yeah.

Krishnakumar Srinivasan: Yeah.

Speaker #4: Oh.

Speaker #2: Yeah it's better now. Yes.

[Analyst] (Motilal Oswal Financial): Oh.

Radha Agarwalla: Oh.

Krishna Srinivasan: Yeah, it's better now. Yeah.

Krishnakumar Srinivasan: Yeah, it's better now. Yeah.

Speaker #4: Yes, sir. Angling Global has introduced several next-gen interior technologies over the past few quarters, like electrochromic sun visors, cockpit solutions integrated with human-machine interface, emotional lighting, etc.

[Analyst] (Motilal Oswal Financial): Yes, sir. Antolin has introduced several next-gen interior technologies over the past few quarters, like electrochromic sun visors, cockpit solutions integrated with Human-Machine Interface, emotional lighting, et cetera. To what extent does SPR India has access to these technologies today, and how are they being localized for the Indian market? Do you see these differentiated capabilities becoming a key competitive advantage in winning new businesses with customers?

Radha Agarwalla: Yes, sir. Antolin has introduced several next-gen interior technologies over the past few quarters, like electrochromic sun visors, cockpit solutions integrated with Human-Machine Interface, emotional lighting, et cetera. To what extent does SPR India has access to these technologies today, and how are they being localized for the Indian market? Do you see these differentiated capabilities becoming a key competitive advantage in winning new businesses with customers?

Speaker #4: So to what extent does SPR India has access to these technologies today and how are they being localized for the Indian market? Do you see these differentiated capabilities becoming a key competitive advantage in winning new businesses with customers?

Speaker #2: Yeah. Thank you Radha. You know we have an access to all the technologies that are globally available within the globally available and tested within the Antoline portfolio.

Krishna Srinivasan: Yeah. Thank you, Radha. We have an access to all the technologies that are globally available and tested within the Antolin portfolio. As you all know, we have already signed a long-term TLA, which is a complete licensing agreement. We have all the solutions available. In fact, we are working on a number of programs with end customers for various HMI initiatives, as well as the newer programs for headliners, the IMOSSA technologies and others, which is all being tested with customers, and we are looking forward to, once they're fortified, then we'll be in the right position to come and inform all of you with regards to all the new businesses that we are working on. We are happy to state that we are working on all the technologies.

Krishnakumar Srinivasan: Yeah. Thank you, Radha. We have an access to all the technologies that are globally available and tested within the Antolin portfolio. As you all know, we have already signed a long-term TLA, which is a complete licensing agreement. We have all the solutions available. In fact, we are working on a number of programs with end customers for various HMI initiatives, as well as the newer programs for headliners, the IMOSSA technologies and others, which is all being tested with customers, and we are looking forward to, once they're fortified, then we'll be in the right position to come and inform all of you with regards to all the new businesses that we are working on. We are happy to state that we are working on all the technologies.

Speaker #2: We have as you all know that we have already signed a long-term TLA you know which is a you know complete licensing agreement and we have all the solutions available.

Speaker #2: In fact, we are working on a number of programs with end customers for various HMI initiatives, as well as, you know, the newer programs for headliners, the IMASA technologies, and others.

Speaker #2: Which is all being tested with customers, and we are looking forward to, you know, once they fructify, then we'll be in the right position to come and inform all of you with regards to all the new businesses that we are working on.

Speaker #2: We are happy to state that we are working on all the technologies. All the technologies are seamlessly available to us, and we will probably be among the front runners to introduce some of those technologies which have been time-tested elsewhere in the globe.

Krishna Srinivasan: All the technologies are seamlessly available to us, and we'll be probably amongst the frontrunners to introduce some of those technologies which have been time-tested elsewhere in the globe with Indian customers, and we are already working on it.

Krishnakumar Srinivasan: All the technologies are seamlessly available to us, and we'll be probably amongst the frontrunners to introduce some of those technologies which have been time-tested elsewhere in the globe with Indian customers, and we are already working on it.

Speaker #2: In with Indian customers, and we are already working on it.

Speaker #4: All right, sir. That's great to hear. Second question is, sir, E-Ton USA has shut down its engine valve plant at the end of the last calendar year.

[Analyst] (Motilal Oswal Financial): All right, sir. That's great to hear. Second question, sir. Eaton has shut down its engine valves plant in the last calendar year end. Are you witnessing a boost in exports due to this? Apart from this, what are the other key growth drivers in the export segment for pistons?

Radha Agarwalla: All right, sir. That's great to hear. Second question, sir. Eaton has shut down its engine valves plant in the last calendar year end. Are you witnessing a boost in exports due to this? Apart from this, what are the other key growth drivers in the export segment for pistons?

Speaker #4: So, are you witnessing a boost in exports due to this? And apart from this, what are the other key growth drivers in the export segment for pistons?

Speaker #2: Yeah. So E-Ton is basically mostly in the engine valve segment. They don't, you know, operate on the piston side. But as far as the engine valve segment is concerned, we do have the growth and we are working on a number of initiatives to be able to meet our customer programs.

Krishna Srinivasan: Eaton is basically mostly in the engine valve segment. They don't operate on the piston side. As far as the engine valve segment is concerned, we do have the growth, and we are working on a number of initiatives to be able to meet our customer programs. The mobility solutions of Eaton has been now sold to Dana, as you might have heard. We have yet to see as to what exactly is the strategy of Dana to grow the business here in India. As far as India is concerned, I think we lead the stack with a fairly good market share across all customers and across all industry segments. We are fairly well-entrenched with most of our customers to be able to cater to their demands.

Krishnakumar Srinivasan: Eaton is basically mostly in the engine valve segment. They don't operate on the piston side. As far as the engine valve segment is concerned, we do have the growth, and we are working on a number of initiatives to be able to meet our customer programs. The mobility solutions of Eaton has been now sold to Dana, as you might have heard. We have yet to see as to what exactly is the strategy of Dana to grow the business here in India. As far as India is concerned, I think we lead the stack with a fairly good market share across all customers and across all industry segments. We are fairly well-entrenched with most of our customers to be able to cater to their demands.

Speaker #2: You know and the mobility solutions of e-ton has been now sold to Dana as you might have heard and we have to yet to see as to what exactly is the strategy of Dana to grow the business here in India.

Speaker #2: As far as India is concerned, I think we lead the stack with a fairly good market share across all customers and across all industry segments.

Speaker #2: And we are fairly well entrenched with most of our customers to be able to cater to their demands.

Speaker #4: Wonderful, sir. So, last question: Takahata Global has a lot of products in non-auto—like office automation, measuring instruments, etc. So, are we supplying these components from the Indian entity to our customers as well?

[Analyst] (Motilal Oswal Financial): Understood, sir. Sir, last question is, Takahata Global has a lot of products in non-auto, like office automation, measuring instruments, et cetera. Are we supplying these components from the Indian entity to our customers as well? What can be the scale of non-auto portion of the business in the next 3 to 4 years as compared to where it is today? What are the delta in margins of non-auto compared to auto?

Radha Agarwalla: Understood, sir. Sir, last question is, Takahata Global has a lot of products in non-auto, like office automation, measuring instruments, et cetera. Are we supplying these components from the Indian entity to our customers as well? What can be the scale of non-auto portion of the business in the next 3 to 4 years as compared to where it is today? What are the delta in margins of non-auto compared to auto?

Speaker #4: And what can be the scale of the non-auto portion of the business in the next three to four years, as compared to where it is today?

Speaker #4: And what are the delta in margins of non-auto compared to auto?

Speaker #2: We already supply to non-auto components. We also make non-auto components in India. We already supply to the medical industry. We supply to the sports industry. We supply to the music industry.

Krishna Srinivasan: We already supply to non-auto components. We also make non-auto components in India. We already supply to medical industry, we supply to sports industry, we supply to music industry. As you know, these segments do not have very high volumes. They are all low volume segments. That way, for example, the music industry, we supply the complete keyboard for some of our customers like Yamaha and others, which is, the keyboards, et cetera, they're not sold in millions. It is not like in automotive. It will be on a lower side. We don't normally give the breakup of this segment, but it's a sizable segment for us, and it's a good margin business for us. Thank you.

Krishnakumar Srinivasan: We already supply to non-auto components. We also make non-auto components in India. We already supply to medical industry, we supply to sports industry, we supply to music industry. As you know, these segments do not have very high volumes. They are all low volume segments. That way, for example, the music industry, we supply the complete keyboard for some of our customers like Yamaha and others, which is, the keyboards, et cetera, they're not sold in millions. It is not like in automotive. It will be on a lower side. We don't normally give the breakup of this segment, but it's a sizable segment for us, and it's a good margin business for us. Thank you.

Speaker #2: But as you know the these segments do not have very high volumes. They are all low volume segments and you know so that way you know for example the music industry we supply the complete keyboard for you know some of our customers like Yamaha and others.

Speaker #2: Which is you know the keyboard etc. They are not sold in millions you know. It is not like in automotive. So it will be on a lower side.

Speaker #2: We don't normally give the breakup of this segment. But it's a sizable segment for us. And it's a good margin business for us. Thank you.

Speaker #4: Understood, sir. Thanks, and all the best to the team.

[Analyst] (Motilal Oswal Financial): Understood, sir. Thanks, all the best to the team.

Radha Agarwalla: Understood, sir. Thanks, all the best to the team.

Speaker #2: Thanks. Thanks a lot Radha.

Krishna Srinivasan: Thanks a lot, Radha.

Krishnakumar Srinivasan: Thanks a lot, Radha.

Speaker #3: Thank you. The next question is from the line of Gokul Maheshwari from Aviga Capital Advisors. Please go ahead.

Moderator: Thank you. The next question is from the line of Gokul Maheshwari from Awriga Capital Advisors. Please go ahead.

Gokul Maheshwari: Thank you for the opportunity. K V Sir, if I may ask, what kind of opportunity do you see for our legacy business once the CAFE norms are introduced? Does this increase our realization or a chance to consolidate our market share in this segment?

Speaker #4: Thank you for the opportunity. KT sir, if I may ask, what kind of opportunity do you see for our legacy business once we catch in on our introduced, and does this increase our realization or provide a chance to consolidate our market share in this product segment?

Speaker #2: Yeah. We see we are already you know working with our customers on the cafe norms and based on the new cafe norms that have been released we are already we have already submitted products which are under testing and validation with the customers.

Krishna Srinivasan: Yeah. See, we are already working with our customers on the CAFE norms. Based on the new CAFE norms that have been released, we've already submitted the products which are under testing and validation with the customers. Most of these products require a different kind of an approach with regards to frictional reduction, as well as reduction of exhaust gases and others, for which a completely new technology has to be introduced in terms of coating and in terms of the piston ring manufacturing strategy. All this has already been done. We have already invested ahead of time, and the technology is all available within our manufacturing setup that we have in Ghaziabad and Patparganj. Our engineering teams have well progressed with the development of these technologies. We are well-entrenched with all our customers.

Krishnakumar Srinivasan: Yeah. See, we are already working with our customers on the CAFE norms. Based on the new CAFE norms that have been released, we've already submitted the products which are under testing and validation with the customers. Most of these products require a different kind of an approach with regards to frictional reduction, as well as reduction of exhaust gases and others, for which a completely new technology has to be introduced in terms of coating and in terms of the piston ring manufacturing strategy. All this has already been done. We have already invested ahead of time, and the technology is all available within our manufacturing setup that we have in Ghaziabad and Patparganj. Our engineering teams have well progressed with the development of these technologies. We are well-entrenched with all our customers.

Speaker #2: And you know most of these products require a different kind of an approach with regards to, you know, friction reduction as well as reduction of, you know, exhaust gases and others.

Speaker #2: For which a completely new technology has to be introduced in terms of coating and in terms of you know the piston ring manufacturing strategy.

Speaker #2: So all this has already been done. We have already invested ahead of time, and the technology is all available within our, you know, manufacturing setup that we have in Ghaziabad and Patredi.

Speaker #2: And our engineering teams are, you know, well progressed with the development of these technologies. So we are well entrenched with all our customers.

Speaker #4: But does this increase the realizations for the same product which we were supplying earlier?

Gokul Maheshwari: Does this increase the realizations for the same product which we were supplying earlier?

Speaker #2: Yeah, to some extent, yes. Because with all the newer technologies, the cost is also more, the realization is also more.

Krishna Srinivasan: Yeah, to some extent, yes. With all the newer technologies, the cost is also more, the realization is also more.

Krishnakumar Srinivasan: Yeah, to some extent, yes. With all the newer technologies, the cost is also more, the realization is also more.

Speaker #4: Okay. And is our competition also following us by offering this to their OEM customers?

Gokul Maheshwari: Okay. Is our competition also following us by offering this to their OEM customers?

Speaker #2: I would say that we are leading the game.

Krishna Srinivasan: I would say that we are leading the game.

Krishnakumar Srinivasan: I would say that we are leading the game.

Speaker #4: Okay, great. Secondly, sir, just on the M&A front—in the past, you've mentioned that you would want to look to expand our scope of offerings and look for M&As.

Gokul Maheshwari: Okay, great. Secondly, sir, just on the M&A front, in the past call you mentioned that you would want to look to expand our scope of offerings and look for M&As. Just a question, given where we are in the automotive cycle, how are you protecting yourself? Because the industry is doing very well in the last 12 months or so, and more specifically after GST cuts, and this could be possibly closer to peak sales or peak profitability from a cycle perspective. How are you safeguarding yourselves when you're looking at potential opportunities over there?

Speaker #4: Just a question within the where we are in the automotive cycle how are you protecting yourself because we are the industry is doing very well in the last 12 months or so and more specifically after GST cuts and this could be possibly you know closer to peak sales or peak profitability from a cycle perspective.

Speaker #4: So, how are you safeguarding yourselves when you're looking at potential opportunities over there?

Speaker #2: Well, if I have understood your question right, you are asking me how we are safeguarding with regards to newer M&As and, you know, doing it at the right deal price and all that, right?

Krishna Srinivasan: Well, if I've understood your question right, you're asking me how we are safeguarding with regards to newer M&As and doing it at the right deal price and all that, right?

Krishnakumar Srinivasan: Well, if I've understood your question right, you're asking me how we are safeguarding with regards to newer M&As and doing it at the right deal price and all that, right?

Speaker #4: Right. Right time and right price, actually.

Gokul Maheshwari: Right. Right time and right price, actually.

Speaker #2: Yeah. So we have a very you know very detailed working that we do with our M&A team. And the M&A team looks at multiple angles.

Krishna Srinivasan: Yeah. We have a very detailed working that we do with our M&A team. The M&A team looks at multiple angles. It's not only the angle of multiple on EBITDA, but it's a very detailed exercise that we do with regards to the overall strategy of investment. We, of course, take all the future outlooks in place, and we look at the current situation of the industry, as well as look at the situation of how the industry is growing over the next 5 to 10 years' time. Then do a lot of forecasting to be able to take a decision with regards to our M&A direction.

Krishnakumar Srinivasan: Yeah. We have a very detailed working that we do with our M&A team. The M&A team looks at multiple angles. It's not only the angle of multiple on EBITDA, but it's a very detailed exercise that we do with regards to the overall strategy of investment. We, of course, take all the future outlooks in place, and we look at the current situation of the industry, as well as look at the situation of how the industry is growing over the next 5 to 10 years' time. Then do a lot of forecasting to be able to take a decision with regards to our M&A direction.

Speaker #2: It's not only the angle of, you know, multiple on EBITDA, but it's a very detailed exercise that we do with regards to the overall strategy of investment.

Speaker #2: And you know we of course take all the future outlooks in place and we look at the current situation of the industry as well as look at the situation of the how the industry is growing over the next 5 to 10 years time.

Speaker #2: And then you know do a lot of forecasting to be able to take a decision regards to our M&A direction.

Speaker #4: Okay, great. Just lastly, in the non-auto business, in the annual report, there is a mention of pistons for railways, snowmobiles, compressors, etc.

Gokul Maheshwari: Okay, great. Just lastly, in the non-auto business, in the annual report, there is a mention of pistons for railways, snowmobiles, compressors, et cetera. What would be the contribution of this segment to our current business, and how do you see this business shape up over the next 2 or 3 years?

Speaker #4: What would be the contribution of this segment to our current size, current business, and how do you see this business shaping up over the next two or three years?

Speaker #2: Well it has been a sizable business because see this again as I said this is a segment which is growing for us. And if I give one figure it will change tomorrow morning because it is a continuous growth that we are having both in terms of the compressor industry the marine the defense the and the various other applications.

Krishna Srinivasan: Well, it has been a sizable business because, again, as I said, this is a segment which is growing for us. If I give one figure, it will change tomorrow morning, because it is a continuous growth that we are having, both in terms of the compressor industry, the marine, the defense, and the various other applications like snowmobiles and others. At this stage, to give any number percentage to this will not be correct because we expect this percentage to go up. It's a sizable business now. Over last 4 years, I think we have grown almost at the rate of 15% to 20% in this particular segment. We have entered into various applications, including lawnmowing applications and others. All this has really helped us to maintain our growth trajectory and also maintain continuous growth, which is better than the market growth.

Krishnakumar Srinivasan: Well, it has been a sizable business because, again, as I said, this is a segment which is growing for us. If I give one figure, it will change tomorrow morning, because it is a continuous growth that we are having, both in terms of the compressor industry, the marine, the defense, and the various other applications like snowmobiles and others. At this stage, to give any number percentage to this will not be correct because we expect this percentage to go up. It's a sizable business now. Over last 4 years, I think we have grown almost at the rate of 15% to 20% in this particular segment. We have entered into various applications, including lawnmowing applications and others. All this has really helped us to maintain our growth trajectory and also maintain continuous growth, which is better than the market growth.

Speaker #2: Like snowmobiles and others. So, at this stage, to give any number or percentage to this would not be correct because we expect this to...

Speaker #2: Percentage of growth. It is a sizable business now. Over the last four years, I think we have grown almost at the rate of 15 to 20 percent in this particular segment.

Speaker #2: And you know we have entered into various applications including lawn mowing applications and others. And all this has really helped us to maintain our growth trajectory and also maintain you know continuous growth which is you know better than the in better than the market growth.

Speaker #2: You know, we have always maintained that we want to outgrow the end markets.

Krishna Srinivasan: We have always maintained that we want to outgrow the end markets.

Krishnakumar Srinivasan: We have always maintained that we want to outgrow the end markets.

Speaker #4: Great, sir. Thank you, and all the best.

Gokul Maheshwari: Great, sir. Thank you, and all the best.

Speaker #2: Thanks. Thanks a lot Gokul.

Krishna Srinivasan: Thanks a lot, Gokul.

Krishnakumar Srinivasan: Thanks a lot, Gokul.

Speaker #3: Thank you. The next question is from the line of Vijay Panday from Axis Capital. Please go ahead.

Moderator: Thank you. The next question is from the line of Vijay Pandey from Axis Capital. Please go ahead.

Speaker #4: Hi sir, thank you for taking my question. I have a couple of questions. Firstly, could you please give the breakup between the plastic business and toilet business, and EMFI?

Vijay Pandey: Hi, sir. Thank you for taking my question. Sir, just a couple of questions. Firstly, if you can give the breakup between the plastic business, the Antolin business, and EMFI, the revenue and EBITDA for Q1.

Speaker #4: The revenue and EBITDA for the first quarter.

Speaker #2: You know, we normally, within the quarter, don't give the breakup. For the first half, you will get the breakup. But you have the breakup at the end of last year, and you can see that more or less that kind of trend is being maintained even today.

Krishna Srinivasan: Normally, within the quarter, we don't give the breakup. In the H1, you will get the breakup. You have the breakup of the end of last year, and you can see that more or less that kind of a trend is being maintained even today. We see all around growth across the auto industry, thanks to the GST 2.0. As a result, we see that the end markets are really doing well, and we are seeing a full growth across all the segments that we operate in today.

Krishnakumar Srinivasan: Normally, within the quarter, we don't give the breakup. In the H1, you will get the breakup. You have the breakup of the end of last year, and you can see that more or less that kind of a trend is being maintained even today. We see all around growth across the auto industry, thanks to the GST 2.0. As a result, we see that the end markets are really doing well, and we are seeing a full growth across all the segments that we operate in today.

Speaker #2: Because we see an all-round, you know, growth across the auto industry. Thanks to GST 2.0, as a result, you know, we see that the end markets are really doing well.

Speaker #2: And we are seeing full growth across all the segments that we operate in today.

Speaker #4: Okay, sir. Sir, I actually just want to understand how the margin profile is looking for the plastic and toilet business. I think plastic is around 18–19% EBITDA margin, and toilet was at around 7–8%.

Vijay Pandey: Sir, actually, just want to understand how the margin profile is looking for the plastic and Antolin business. I think plastic is around 18% and 19% EBITDA margin, and Antolin was at around 7% to 8%. Just want to see, has this

Speaker #4: So, just want to see—has this had an impact?

Speaker #2: Yeah, we are significantly improved. We have significantly improved the interiors business also. That has come with a lot of, you know, synergies playing out, as well as we have streamlined a lot of things with regards to, you know, the fixed costs, and we have taken a lot of actions with regards to improving the cost structure of the company.

Krishna Srinivasan: We have significantly improved the interiors business also. That has come with a lot of synergies playing out as well as we have streamlined a lot of things with regards to the fixed costs, and we have taken a lot of actions with regards to improving the cost structure of the company, which has really helped us to improve the margins. As of now, I can say that we have crossed the double-digit figure, and we are in the early mid-teens, I should say.

Krishnakumar Srinivasan: We have significantly improved the interiors business also. That has come with a lot of synergies playing out as well as we have streamlined a lot of things with regards to the fixed costs, and we have taken a lot of actions with regards to improving the cost structure of the company, which has really helped us to improve the margins. As of now, I can say that we have crossed the double-digit figure, and we are in the early mid-teens, I should say.

Speaker #2: Which has really helped us to improve the margins. As of now, I can say that we have crossed the double-digit figure, and we are in the early to mid-teens, I should say.

Speaker #4: Okay. Okay. That's good to hear. Secondly sir would like want to know so the industry has definitely grown at 20 percent in Q1. But our like if I see our standalone business legacy business they are the growth was around 12 percent.

Vijay Pandey: Okay. That's good to hear. Secondly, sir, we want to know, the industry has definitely grown at 20% in Q1. If I see our standalone business, the legacy business, there the growth was around 12%. Just want to know, any reason for lower performance versus industry? If you can throw some color.

Speaker #4: So just want to know any reason for lower performance versus industry is it only or any if you can throw some color.

Speaker #2: Yeah, I will. Let me attempt to, you know, answer your question. You know, basically, if you see, the industry was also carrying a good amount of stock.

Krishna Srinivasan: Let me attempt to answer your question. Basically, if you see, the industry was also carrying a good amount of stock. We go by the manufacturing that has been done, not by the sales, because sales normally carry a lot of stock coming from the previous year. If you really see the manufacturing, the manufacturing growth has been in the region of around 12% to 14%. Our growth has been over 16%. We have actually outgrown the industry, even as we speak. Within the mix, if you see, the two-wheelers have grown by almost 20%. The passenger car has probably grown by around 11%, from a manufacturing angle. 19% and 11% to be exact, from a manufacturing angle. The commercial vehicles in the tractor industry have grown by somewhere around 7% to 8%.

Krishnakumar Srinivasan: Let me attempt to answer your question. Basically, if you see, the industry was also carrying a good amount of stock. We go by the manufacturing that has been done, not by the sales, because sales normally carry a lot of stock coming from the previous year. If you really see the manufacturing, the manufacturing growth has been in the region of around 12% to 14%. Our growth has been over 16%. We have actually outgrown the industry, even as we speak. Within the mix, if you see, the two-wheelers have grown by almost 20%. The passenger car has probably grown by around 11%, from a manufacturing angle. 19% and 11% to be exact, from a manufacturing angle. The commercial vehicles in the tractor industry have grown by somewhere around 7% to 8%.

Speaker #2: We go by the manufacturing that has been done, not by the sales. Because sales normally carry a lot of stock coming from the previous year.

Speaker #2: So, if you really see, the manufacturing growth has been in the region of around 12 to 14 percent, and our growth has been over 16 percent.

Speaker #2: So we have actually outgrown the industry. Even even as we speak. And within the mix if you see the two wheelers and you know the two wheelers have grown by almost 20 percent.

Speaker #2: The passenger car segment has probably grown by around 11 percent. From a manufacturing angle, 19 percent and 11 percent, to be exact, from a manufacturing angle.

Speaker #2: And, you know, commercial vehicles and the tractor industry have grown by somewhere around 7% to 8%. And the other industries have grown by something like 4% to 5%.

Krishna Srinivasan: The other industries have grown by something like 4% to 5%, including the compressor industry. As a result, you will see a mix of all this coming into the end product. Overall, considering that the exports got affected because of the war situation, where there was a tremendous impact on the export side. Also because of this sudden rise in the two-wheeler and the passenger car industry, the manufacturing had to be a little bit tweaked towards the OE industry. As a result, you will see that the growth impact is fairly significant considering that we have grown at this percentage, which is better than the market percentage, even after considering all these segments of the market. I am happy to state that we have actually satisfied all the segments of the market with regards to our supplies.

Krishnakumar Srinivasan: The other industries have grown by something like 4% to 5%, including the compressor industry. As a result, you will see a mix of all this coming into the end product. Overall, considering that the exports got affected because of the war situation, where there was a tremendous impact on the export side. Also because of this sudden rise in the two-wheeler and the passenger car industry, the manufacturing had to be a little bit tweaked towards the OE industry. As a result, you will see that the growth impact is fairly significant considering that we have grown at this percentage, which is better than the market percentage, even after considering all these segments of the market. I am happy to state that we have actually satisfied all the segments of the market with regards to our supplies.

Speaker #2: You know, including the compressor industry. So, as a result, you will see a mix of all this coming into the end product, this thing.

Speaker #2: But overall considering considering that you know the exports got affected because of the war situation you know where there was a tremendous impact in the on the export side.

Speaker #2: And also, you know, because of this sudden rise in the two-wheeler and passenger car industry, you know, the manufacturing had to be a little bit tweaked towards the OE industries.

Speaker #2: As a result, you will see that the growth impact is fairly significant, considering that we have grown at this percentage, which is better than the market percentage.

Speaker #2: Even after considering all these segments of the market, I'm happy to state that we have actually satisfied all the segments of the market with regards to our supplies.

Speaker #4: And sir, over the last one month or last one and a half months—so post when the things have started to normalize in West Asia—have the exports picked up?

Vijay Pandey: Sir, over last 1 month or last 1.5 months or so, when the things have started to normalize in West Asia, have the exports picked up? Could we expect a better quarter in exports in Q2?

Speaker #4: So, could we expect a better quarter in exports in the second quarter?

Speaker #2: See, exports are still quite affected, especially in Europe and in, you know, America. So both US, America, and the Middle East markets, including Egypt and others.

Krishna Srinivasan: See, exports are still quite affected, especially in Europe and in America. Both US, America, and the Middle East markets, including Egypt and others, Turkey, Egypt, and others, have been badly affected. They have not still picked up, and it is quite slow, I would say. There are still a lot of ambiguities in the overall supply chain with regards to what will happen with regards to a very seamless supply chain situation that we had earlier. I personally think that it will take some more time for things to normalize. Commodity prices have started falling. It had gone to unprecedented levels. We have had to face a very unprecedented increase in the commodity prices. We have been able to manage it, and we see this now slightly coming down. Hopefully it should all normalize within this next quarter.

Krishnakumar Srinivasan: See, exports are still quite affected, especially in Europe and in America. Both US, America, and the Middle East markets, including Egypt and others, Turkey, Egypt, and others, have been badly affected. They have not still picked up, and it is quite slow, I would say. There are still a lot of ambiguities in the overall supply chain with regards to what will happen with regards to a very seamless supply chain situation that we had earlier. I personally think that it will take some more time for things to normalize. Commodity prices have started falling. It had gone to unprecedented levels. We have had to face a very unprecedented increase in the commodity prices. We have been able to manage it, and we see this now slightly coming down. Hopefully it should all normalize within this next quarter.

Speaker #2: Turkey, Egypt, and others have been badly affected. And, you know, they have not still picked up, and it's quite slow, I would say.

Speaker #2: There are still a lot of ambiguities in the overall supply chain with regards to what will happen, with regards to a very seamless, you know, supply chain situation that we had earlier.

Speaker #2: So, I personally think that it will take some more time for things to normalize. Commodity prices have started falling. You know, they had gone to unprecedented levels.

Speaker #2: You know, we have had to face a very unprecedented increase in commodity prices, but we have been able to manage it. And we see this now slightly coming down.

Speaker #2: So, hopefully, it should all normalize within this next quarter.

Speaker #4: And actually, sir, just to ask if you can probably give us some of the technologies that can come up from an and toilet business—the upcoming technologies which we can see over the next one or two years—that would be pretty helpful.

Vijay Pandey: Lastly, sir, just if you can probably give us some of the technologies that can come up from the interior business, the upcoming technology, which we can see over next 1 or 2 years, that will be pretty helpful.

Speaker #2: I I think I spoke in the earlier question. A number of technologies on which we are working on including HMIs as well as you know the Emersa technologies the technology with various kind of you know pillar trims backlit backlit pillar trims the the floor consoles etcetera.

Krishna Srinivasan: I think I spoke in the earlier question. A number of technologies on which we are working on, including HMIs, as well as the MRSA technologies, the technologies with various kind of pillar trims, backlit pillar trims, the floor consoles, et cetera. A number of areas on which we are working on.

Krishnakumar Srinivasan: I think I spoke in the earlier question. A number of technologies on which we are working on, including HMIs, as well as the MRSA technologies, the technologies with various kind of pillar trims, backlit pillar trims, the floor consoles, et cetera. A number of areas on which we are working on.

Speaker #2: So, there are a number of areas on which we are working.

Speaker #4: Okay. Thank you, sir, and all the best for coming out.

Vijay Pandey: Okay. Thank you, sir, and all the best for coming quarter.

Speaker #2: Thanks a lot. Thank you very much.

Krishna Srinivasan: Thanks a lot. Thank you.

Krishnakumar Srinivasan: Thanks a lot. Thank you.

Speaker #1: Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant.

Moderator: Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Harsha from Seven Rewards Holding. Please go ahead.

Speaker #1: The next question is from the line of Harsha from Seven Rivers Holding. Please go ahead.

Speaker #2: Yeah, go ahead, Harsha ji. Mr. Harsha, are you there?

Krishna Srinivasan: Yeah, go ahead, Harsha. Mr. Harsha, you are there?

Krishnakumar Srinivasan: Yeah, go ahead, Harsha. Mr. Harsha, you are there?

Speaker #1: The current participant has been disconnected from the call. The next participant will take the next question. The next question is from the line of Anugal Mukherjee from Prescient Capital.

Moderator: The current participant has been disconnected from the call. We'll take the next participant. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Sir am I audible?

Anubhav Mukherjee: Sir, am I audible?

Speaker #2: Yeah Anugal ji go ahead.

Krishna Srinivasan: Yeah, Anubhav Mukherjee. Go ahead.

Krishnakumar Srinivasan: Yeah, Anubhav Mukherjee. Go ahead.

Anubhav Mukherjee: Sir, this EBITDA impact of INR 300 million that was mentioned in the investor presentation. Are we able to pre-fix price hikes from the OEMs to pass this on, and any timeline by which you think our margins can normalize? Yeah.

Speaker #4: Sir, this data impact of 300 million that was mentioned in yesterday's presentation—so, are we able to see price hikes from the OEMs to pass this on, and is there any timeline by which we think our margins can normalize?

Speaker #2: No this you know as I said this is the impact which has which has happened because of commodity prices and also the impact of our you know interest cost that we have paid.

Krishna Srinivasan: No. As I said, this is the impact which has happened because of commodity prices, and also the impact of our interest costs that we have paid. To a fair extent, that has been covered up already, as you can see from our financial results. It's certainly better than if you really discount the fact that we have had to pay the interest on our NCDs. If you really take that out, you'll see that our performance has been really in line with our previous quarter's performances, and we continue to maintain those performances and I don't see any reason why we will drop further.

Krishnakumar Srinivasan: No. As I said, this is the impact which has happened because of commodity prices, and also the impact of our interest costs that we have paid. To a fair extent, that has been covered up already, as you can see from our financial results. It's certainly better than if you really discount the fact that we have had to pay the interest on our NCDs. If you really take that out, you'll see that our performance has been really in line with our previous quarter's performances, and we continue to maintain those performances and I don't see any reason why we will drop further.

Speaker #2: So, to a fair extent, that has been covered up already in our—as you can see from our financial results. It's certainly better than, you know, if you really discount the fact that we have had to pay the interest on our NCDs.

Speaker #2: If you really take that out, when you see that our performance has been really in line with our previous quarter performances, and we continue to maintain those performances.

Speaker #2: And I don't see any reason why we will, you know, drop further.

Speaker #4: Sir, my question was not so much about the finance cost, but more about the data impact due to logistics and commodity inflation.

Anubhav Mukherjee: Sir, my question was not on the finance part, but more on the EBITDA impact because of logistics and commodity inflation. Do we need to ask for any sort of price hikes from the OEM or between-

Speaker #4: So, do we need to, like, ask for any sort of price hikes from the OEM, or like...

Speaker #2: Yeah, I think I mentioned that we have a back-to-back arrangement with all our customers, but it has a time lag delay. You know, normally there is a delay of a quarter with most of the customers.

Krishna Srinivasan: I mentioned that we have a back-to-back arrangement with all our customers, but it has a timeline delay. Normally, there is a delay of a quarter with most of the customers. That's how the industry operates, and that's why what will happen is, whatever is the commodity increase that we have had this year, based on the average commodity prices, we get the price increase for the next quarter, and that gets covered in the next quarter. We already have a back-to-back arrangement with all our customers. Not only for this particular business, even for our plastics business as well as our motors business and the interiors business.

Krishnakumar Srinivasan: I mentioned that we have a back-to-back arrangement with all our customers, but it has a timeline delay. Normally, there is a delay of a quarter with most of the customers. That's how the industry operates, and that's why what will happen is, whatever is the commodity increase that we have had this year, based on the average commodity prices, we get the price increase for the next quarter, and that gets covered in the next quarter. We already have a back-to-back arrangement with all our customers. Not only for this particular business, even for our plastics business as well as our motors business and the interiors business.

Speaker #2: You know that's how the industry operates. And that's why what will happen is, whatever commodity increase we have had this year, based on the average commodity price, we get the price increase for the next quarter.

Speaker #2: And that gets covered in the next quarter. So we already have a back-to-back arrangement with all our customers, and not only for this particular business, but also for our plastics business, as well as our motors business and the interiors business.

Speaker #4: Yes sir. And sir for the like the motor controller business and plastics business do you be able to share what kind of like revenue growth have we recognized year on year in these two segments?

Anubhav Mukherjee: Okay. Sir, for the motor controller business and plastics business, would you be able to share what kind of revenue growth are we looking at year-on-year in these two segments?

Speaker #2: Well, last year we grew by double, and I am hoping that we continue that trend. I'm pushing my team for that, but we'll certainly continue to outgrow the markets.

Krishna Srinivasan: Well, last year we grew by double. I am hoping that we continue that trend. I am pushing my team for that, we will certainly continue to outgrow the markets.

Krishnakumar Srinivasan: Well, last year we grew by double. I am hoping that we continue that trend. I am pushing my team for that, we will certainly continue to outgrow the markets.

Speaker #4: Yes, sir. And sir, my last question is for the auto interior and toilet business. Do you have a margin target that you want to achieve?

Anubhav Mukherjee: Yes, sir. Sir, my last question is for the auto interior and tooling business. Do you have a margin target that you want to achieve? Can you bring it to the standalone kind of margins? Can you share some perspective on that?

Speaker #4: Can you bring it to the standalone kind of margins? Can you share some perspective on that?

Speaker #2: No, I already replied to this in the earlier question. Yes, we have improved the margins, and we have improved from the earlier 70% that they were operating on to almost, let's say, the early teens.

Krishna Srinivasan: I already replied this to the earlier question. Yes, we have improved the margins, we have improved from the earlier 7% to 8% that they were operating on to almost, let us say, the early teens.

Krishnakumar Srinivasan: I already replied this to the earlier question. Yes, we have improved the margins, we have improved from the earlier 7% to 8% that they were operating on to almost, let us say, the early teens.

Speaker #4: Okay, thanks. That's all from me, sir.

Anubhav Mukherjee: Okay. Thanks for the information.

Speaker #2: Yeah.

Krishna Srinivasan: Yeah.

Krishnakumar Srinivasan: Yeah.

Speaker #1: Thank you. The next question is from the line of Harsha from Seven Rivers Holding. Please go ahead.

Moderator: Thank you. The next question is from the line of Harsha from Seven Rewards Holding. Please go ahead.

Speaker #3: Yeah, good afternoon, sir. Am I audible?

[Analyst] (Seven Rewards Holding): Yeah, good afternoon, sir. Am I audible?

Harsha Rao: Yeah, good afternoon, sir. Am I audible?

Speaker #2: Yeah Harsha ji go ahead.

Krishna Srinivasan: Yeah, Harsha. Go ahead.

Krishnakumar Srinivasan: Yeah, Harsha. Go ahead.

Speaker #3: Yeah yeah. So I was referring to slide eight of our presentation wherein it's mentioned that production volumes have grown by twenty two percent. Now when I compared that with our standalone revenue which has grown at around twelve twelve and a half percent.

[Analyst] (Seven Rewards Holding): Yeah. Sir, I was referring to slide eight of our presentation, wherein it is mentioned that production volumes have grown by 22%. Now, when I compare that with our standalone revenue, which has grown at around 12% to 12.5%, how do we reconcile it?

Harsha Rao: Yeah. Sir, I was referring to slide eight of our presentation, wherein it is mentioned that production volumes have grown by 22%. Now, when I compare that with our standalone revenue, which has grown at around 12% to 12.5%, how do we reconcile it?

Speaker #3: So, how do we reconcile it?

Speaker #2: You know normally what happens is volume need not necessarily because the mix changes in the industry. You know even all our end customers if you see our if even if you see our end customers the overall post GST two point zero what has happened is the mix has changed.

Krishna Srinivasan: Normally what happens is volume need not necessarily, because the mix changes in the industry. Even if you see our end customers, the overall post GST 2.0, what has happened is the mix has changed. They are going in for more production of low-end cars. Let me not put it as low-end cars. It is basically smaller-sized cars, smaller-sized vehicles, because the demand for that is more, both in the rural and the urban segment. Automatically, the realization price per piece changes, as we have those kind of products going in more. You will find that by value, the realization could slightly vary because the mix changes drastically.

Krishnakumar Srinivasan: Normally what happens is volume need not necessarily, because the mix changes in the industry. Even if you see our end customers, the overall post GST 2.0, what has happened is the mix has changed. They are going in for more production of low-end cars. Let me not put it as low-end cars. It is basically smaller-sized cars, smaller-sized vehicles, because the demand for that is more, both in the rural and the urban segment. Automatically, the realization price per piece changes, as we have those kind of products going in more. You will find that by value, the realization could slightly vary because the mix changes drastically.

Speaker #2: They've gone in for more production of low-end cars. I mean, let me not put it as low-end cars. It is basically smaller-sized cars.

Speaker #2: Smaller sized vehicles, because the demand for that is higher both in the rural and urban segments. So, automatically, the realization price per piece changes as we have more of those kinds of products going in.

Speaker #2: And you'll find that, by value, the realization could slightly vary because the mix changes drastically.

Speaker #3: Okay, okay. And another one about—

[Analyst] (Seven Rewards Holding): Okay. Another question.

Harsha Rao: Okay. Another question.

Speaker #2: So, what is important is to maintain the kind of margins that we want to maintain, which we have been able to do.

Krishna Srinivasan: What is important is to maintain the kind of margins that we want to maintain, which we have been able to do that.

Krishnakumar Srinivasan: What is important is to maintain the kind of margins that we want to maintain, which we have been able to do that.

Speaker #3: Yeah, so another question is on the margin side. If I look at the standalone business now, I'm comparing sequentially Q4 FY26 versus Q1 FY27.

[Analyst] (Seven Rewards Holding): Another question is on the margin side. If I look at the standalone business, now I'm comparing sequentially Q4 FY26 versus Q1 FY27. Between these two quarters, our gross margins have gone up on standalone business. It has gone up by 60 bps, yet our EBITDA margins have come down. They've almost come down by 200 bps. What explains that?

Harsha Rao: Another question is on the margin side. If I look at the standalone business, now I'm comparing sequentially Q4 FY26 versus Q1 FY27. Between these two quarters, our gross margins have gone up on standalone business. It has gone up by 60 bps, yet our EBITDA margins have come down. They've almost come down by 200 bps. What explains that?

Speaker #3: So between these two quarters, our gross margins have gone up on standalone business. They have gone up by 60 basis points, yet our EBITDA margins have come down.

Speaker #3: They've almost come down by 200 bits. So what explains that?

Speaker #2: That's what I explained. You know the commodity prices. You know you have a quarter delay in the commodity prices, and you'll see.

Krishna Srinivasan: That's what I explained. The commodity prices. You have a quarter delay in the commodity prices, you'll see that.

Krishnakumar Srinivasan: That's what I explained. The commodity prices. You have a quarter delay in the commodity prices, you'll see that.

Speaker #3: No, no, but our gross margins have improved between Q4 FY26 and Q1 FY27. Our gross margins are almost intact, yet the EBITDA margins are down by 200 bps.

[Analyst] (Seven Rewards Holding): No, our gross margins have improved between Q4 FY26 to Q1 FY27. Our gross margins are almost intact, yet the EBITDA margins are down by 200 bps.

Harsha Rao: No, our gross margins have improved between Q4 FY26 to Q1 FY27. Our gross margins are almost intact, yet the EBITDA margins are down by 200 bps.

Speaker #2: Yeah sir. No that's what I said. It's a combination of a multiple combination of you know mix plus volumes. And also the fact that you know the when when I say mix it also means a mix of you know our overall business within our portfolio.

Krishna Srinivasan: No, that's what I said. It's a multiple combination of mix plus volumes. Also the fact that, when I say mix, it also means a mix of our overall business within our portfolio, the kind of mix that we have. Overall, it shows that some of our areas of, let's say, aftermarket business and other things. Normally in the first quarter, we always have a lag. In the first quarter, if you really compare the first quarter of last year, you'll always see that lag.

Krishnakumar Srinivasan: No, that's what I said. It's a multiple combination of mix plus volumes. Also the fact that, when I say mix, it also means a mix of our overall business within our portfolio, the kind of mix that we have. Overall, it shows that some of our areas of, let's say, aftermarket business and other things. Normally in the first quarter, we always have a lag. In the first quarter, if you really compare the first quarter of last year, you'll always see that lag.

Speaker #2: You know the kind of mix that we have. So, you know, overall it shows that some of our areas of, you know, let's say, aftermarket business and other things have, you know, normally in the first quarter we always have a lag.

Speaker #2: In the first quarter, if you really compare the first quarter of last year, you'll always see that lag.

Speaker #3: Okay. And sir, last question: Is there any update on the fundraise and any new acquisitions that are in the pipeline?

[Analyst] (Seven Rewards Holding): Okay. Sir, last question is, any update on the fundraise and any new acquisitions that are in the anvil?

Harsha Rao: Okay. Sir, last question is, any update on the fundraise and any new acquisitions that are in the anvil?

Speaker #2: Yeah, we have our team working on the acquisition part, and you know, there is a lot of work going on there.

Krishna Srinivasan: Yeah. Our team is working on the acquisition part, and there is a lot of work going on there. We'll inform all of you guys at the right time. As far as fundraise is concerned, I think we are progressing as per target.

Krishnakumar Srinivasan: Yeah. Our team is working on the acquisition part, and there is a lot of work going on there. We'll inform all of you guys at the right time. As far as fundraise is concerned, I think we are progressing as per target.

Speaker #2: And we'll inform all of you guys at the right time as far as the fundraise is concerned. I think we are progressing as per target.

Speaker #3: Sure, sure. Thank you so much, sir.

[Analyst] (Seven Rewards Holding): Sure. Thank you so much, sir.

Harsha Rao: Sure. Thank you so much, sir.

Speaker #2: Thank you.

Krishna Srinivasan: Thank you.

Krishnakumar Srinivasan: Thank you.

Speaker #1: Thank you. The next question is from the line of Nandan Pradhan from MK Global Financial Services. Please go ahead.

Moderator: Thank you. The next question is from the line of Nandan Pradhan from Emkay Global Financial Services. Please go ahead.

Speaker #4: Yeah, hi. Good evening, sir, and congratulations on a great set of results. I hope I'm audible.

Nandan Pradhan: Yeah. Hi. Good evening, sir. Congratulations on a great set of results. I hope I'm audible.

Speaker #2: Yeah Nandan. Nandan ji please.

Krishna Srinivasan: Yeah, Nandan. Nandan Ji, go ahead.

Krishnakumar Srinivasan: Yeah, Nandan. Nandan Ji, go ahead.

Speaker #4: Yes, sir. Yes, sir. Good evening. So, I think just following up on the questions from the previous participant, I think what we are trying to understand is, our gross margins are intact.

Nandan Pradhan: Yes, sir. Good evening. Sir, I think just following up on the questions from the previous participant, I think what we are trying to understand is our gross margins are intact. Sequentially, our staff cost as well as our OPEX has gone up. I understand there could be some impact from the minimum wage hike as well here, right? Just on that, also those other expense would include some sort of one-off expenditure since we are just integrating Antolin. Do we consider this as a new normal, or do we expect this run rate to go down as we get the synergies kicked in over the coming quarters? That would be the first question.

Speaker #4: Sequentially, our staff cost as well as our OPEX has gone up. I understand there could be some impact from the minimum wage hike as well here, right?

Speaker #4: So just on that, and also, those other expenses would include some sort of one-off expenditures since we are just integrating Antonin. And do we consider this as a new normal, or do we expect this run rate to go down as we get the synergies kicked in over the coming quarters?

Speaker #4: So, that would be the first question.

Speaker #2: No, I think you are—again, you know, the overall mix impact has an impact while the gross margin could, you know, show the improvement.

Krishna Srinivasan: I think the overall mix impact has an impact. While the gross margin could show the improvement, you cannot compare it sequentially with Q4 of last year because mix was completely different. You'll have to see it with the mix of Q1. The mix of the market also makes a big difference. Both the things come together. Of course, we have our normal wage increases that we have every year, which happens normally during Q1, 1 April. That has a small impact on the employee cost percentage that you see. Otherwise, we are well within the targets.

Krishnakumar Srinivasan: I think the overall mix impact has an impact. While the gross margin could show the improvement, you cannot compare it sequentially with Q4 of last year because mix was completely different. You'll have to see it with the mix of Q1. The mix of the market also makes a big difference. Both the things come together. Of course, we have our normal wage increases that we have every year, which happens normally during Q1, 1 April. That has a small impact on the employee cost percentage that you see. Otherwise, we are well within the targets.

Speaker #2: But if you have compared it, you cannot compare it sequentially with Q4 of last year, because the mix was completely different. You know, so you will have to see it with the mix of Q1.

Speaker #2: The mix of the market also makes a big difference, so both things come together. Of course, we have, you know, our normal wage increases that we have, you know, every year.

Speaker #2: Which happens normally during the first quarter, typically in April. That has a small impact on the employee costs percentage that you see.

Speaker #2: But otherwise, we are well within the targets.

Speaker #4: Got it, sir. And so, just I think across until these, the wage hike has seen an impact. And since we are also in the northern region, would you broadly give, directionally, some idea about how much the wage impact has been this quarter, and how are we seeing about that?

Nandan Pradhan: Got it, sir. Sir, just I think across Antolin, the wage hike has seen an impact, and since we are also in the northern region, could you broadly give directionally some idea about how much the wage impact has been this quarter, and how are we seeing the amount of

Speaker #2: Normally, we don't give those internal figures, Nandan ji. But the good part is that we have been able to retain the team.

Krishna Srinivasan: Internal figures we don't normally give, Nandan Ji, the good part is that we have been able to retain the team. The team is doing a fantastic job. All of them are very motivated to work in the kind of atmosphere that we are presenting to them. The team is doing a fantastic job.

Krishnakumar Srinivasan: Internal figures we don't normally give, Nandan Ji, the good part is that we have been able to retain the team. The team is doing a fantastic job. All of them are very motivated to work in the kind of atmosphere that we are presenting to them. The team is doing a fantastic job.

Speaker #2: The team is doing a fantastic job. All of them are very motivated to work in the kind of atmosphere that we are presenting to them.

Speaker #2: And the team is doing a fantastic job.

Speaker #4: Okay, sir. Thank you so much, sir. Good luck, and thank you.

Nandan Pradhan: Okay, sir. Thank you so much, sir. Good luck. Thank you.

Speaker #2: Yeah, thanks a lot, Nandan ji. Thanks.

Krishna Srinivasan: Yeah. Thanks a lot, Nandan Ji. Thanks.

Krishnakumar Srinivasan: Yeah. Thanks a lot, Nandan Ji. Thanks.

Speaker #1: Thank you. The next question is from the line of Devyansh Gupta from Leighton PMS. Please go ahead.

Moderator: Thank you. The next question is from the line of Divyansh Gupta from Latent Advisors PMS. Please go ahead.

Speaker #4: Hi sir. So the first question is just to understand the time lag from when we supply, let's say, the pistons to our OEMs. To their production timeline, what is the typical gap?

Divyansh Gupta: Hi, sir. The first question is to just understand the time lag from when we supply, let's say, the pistons to our OEMs to their production timeline. What is the typical gap?

Speaker #2: Can you repeat that? There was a small drop in your voice.

Krishna Srinivasan: Can you come again? There's a small drop in your voice.

Krishnakumar Srinivasan: Can you come again? There's a small drop in your voice.

Speaker #4: Sure. I'll repeat the question. Basically, let's say we supply X number of pistons to, say, Maruti on the first of April. How far ahead in their production line will that be conceived?

Divyansh Gupta: Yeah. I'll repeat the question. Basically, let's say we supply X number of pistons to, say, Maruti on 1 April.

Divyansh Gupta: How far ahead in their production line will that be consumed?

Speaker #2: In their production line?

Krishna Srinivasan: In their production line?

Krishnakumar Srinivasan: In their production line?

Speaker #4: I mean, basically, for them to finally ship out the car, what is the time?

Divyansh Gupta: In the assembly. Basically for them to finally ship out the car. What is the timeline?

Speaker #2: It varies, yeah, it varies. You know, product to product, it varies. Some of the products, you know, when the demand is very good in the end markets, then those products go within maybe less than a month's time.

Krishna Srinivasan: It varies. Product to product, it varies. Some of the product, when the demand is very good in the end market, then those products goes within maybe less than a month's time. If the products are depending on the kind of stock levels that they operated across various operators across the country, it varies. It varies from time to time, but on an average, you can see the kind of volume growth that Suzuki is having, and we are going quite well with them. We have a fairly good market share.

Krishnakumar Srinivasan: It varies. Product to product, it varies. Some of the product, when the demand is very good in the end market, then those products goes within maybe less than a month's time. If the products are depending on the kind of stock levels that they operated across various operators across the country, it varies. It varies from time to time, but on an average, you can see the kind of volume growth that Suzuki is having, and we are going quite well with them. We have a fairly good market share.

Speaker #2: But if the products are, you know, depending on the kind of stock levels that they operate at across various operators across the country, it varies.

Speaker #2: So it varies from time to time. But on an average you know you can you can see the kind of volume growth that Suzuki is having.

Speaker #2: And we are growing quite well with them. We have a fairly good market share.

Speaker #4: Sir, I wasn't specifically asking about Maruti. I just took Maruti as an example, as a name, as a placeholder.

Divyansh Gupta: No, I wasn't specifically asking for Maruti. I just took Maruti as a, let's say, example, as a name, as a placeholder.

Speaker #2: Sir, even others—everywhere it is the same story. See, on average, you know, the product, when we supply, we of course do a lot of things to supply them. You know, there are also requirements that we should supply just in time, as the manufacturing takes place.

Krishna Srinivasan: Even others. Everywhere it is the same story. See, on average, the product when we supply, we, of course, do lot of things to supply them. There are also requirements that we should supply just in time as the manufacturing takes place. Post their manufacturing, how much time they will take to supply to the end market, now that is a question that you have to probably ask the end customer there.

Krishnakumar Srinivasan: Even others. Everywhere it is the same story. See, on average, the product when we supply, we, of course, do lot of things to supply them. There are also requirements that we should supply just in time as the manufacturing takes place. Post their manufacturing, how much time they will take to supply to the end market, now that is a question that you have to probably ask the end customer there.

Speaker #2: But post their manufacturing, how much time will they take to supply to the end market? You know, that is a question that you probably have to ask the end customers here.

Speaker #4: Got it. Understood, sir. The second question was just if you can tell what would have been the growth of our consolidated Business X of Antonin.

Divyansh Gupta: Got it. Understood, sir. The second question was, just if you can tell what would have been the growth of our consolidated business, X of Antolin. I'm just looking at the numbers and not margin or anything. Just X of Antolin, what would have been our growth? Top line only.

Speaker #4: I'm just looking at the numbers, and it's not margin or anything. Or just X of Antonin—what would have been our growth?

Speaker #4: Top line only.

Speaker #2: So, I think it's over 16 percent.

Krishna Srinivasan: I think it's over 16%.

Krishnakumar Srinivasan: I think it's over 16%.

Speaker #4: One sixteen. Got it. And, sir, your last question with the government trying to push for higher blends of ethanol. We have readiness up till E85, is what I understand.

Divyansh Gupta: 16%, got it. Sir, your last question, with the government trying to push in higher blends of ethanol, we have readiness up till E85, is what I understand.

Speaker #2: Yes.

Krishna Srinivasan: Yes.

Krishnakumar Srinivasan: Yes.

Speaker #4: The question that I have is: what are the kinds of conversations we are having with our clients? And let's say, if the ramp-up—actually, if the blending levels increase, would it lead to more capex just to support higher blending, or can the current capacity also support higher blending?

Divyansh Gupta: The question that I have is that, what are the kind of conversations we are having with our clients? Let's say, the ramp up, the actual blending levels increase, would it lead to more CapEx just to support higher blending, or current capacity can also support higher blending?

Speaker #4: And how far ahead, or how far behind, we are as a company.

Speaker #2: See, what happens is when the blending goes on the higher side, the product undergoes a change. Okay, you have to, because of more water content and carbon content, you have to improve the kind of coatings that we have on the piston as well as on the rings.

Krishna Srinivasan: What happens is when the blending goes on a higher side, the product undergoes a change. Because of more water content and carbon content, you have to improve the kind of coatings that we have on the piston as well as on the rings. We have already tested all the products that is required by our customers up to E85. Now, the strategy of what they want to introduce into the market will depend on the political situation in the country as well as the end customer's market needs. As far as we are concerned, we are ready with the products. Every segment of the product, whether it is for E20, or whether it's for E40, or whether E85, will undergo a change, and the price is different because of the content change that happens. With most of the customers, we have already signed up.

Krishnakumar Srinivasan: What happens is when the blending goes on a higher side, the product undergoes a change. Because of more water content and carbon content, you have to improve the kind of coatings that we have on the piston as well as on the rings. We have already tested all the products that is required by our customers up to E85. Now, the strategy of what they want to introduce into the market will depend on the political situation in the country as well as the end customer's market needs. As far as we are concerned, we are ready with the products. Every segment of the product, whether it is for E20, or whether it's for E40, or whether E85, will undergo a change, and the price is different because of the content change that happens. With most of the customers, we have already signed up.

Speaker #2: So we have already tested all the products that are required by our customers, right up to E85. Now, the strategy of what they want to introduce into the market will depend on various geopolitical situations—sorry, the political situation in the country—as well as the end customers’ market needs.

Speaker #2: So as far as we are concerned we are ready with the products. Every product you know every segment of the product whether for whether it is for E20 or whether it's for E40 or whether E85 will undergo a change and the price is this different.

Speaker #2: Because of the content change that happens. So, with most of the customers we have already signed off, the products are all tested for our products.

Krishna Srinivasan: The products are all tested for our products. I don't know about what other products has an impact because of E20 or E40. We feel that this situation should get addressed quickly and, hopefully, the customers will start growing their business. As far as we are concerned on the flex fuel side, we are completely ready.

Krishnakumar Srinivasan: The products are all tested for our products. I don't know about what other products has an impact because of E20 or E40. We feel that this situation should get addressed quickly and, hopefully, the customers will start growing their business. As far as we are concerned on the flex fuel side, we are completely ready.

Speaker #2: I don't know about what other products have an impact because of E20 or E40. And we feel that this situation should get addressed quickly, and hopefully, you know, the customers will start going about their business.

Speaker #2: You know, as far as we are concerned on the flex fuel side, we are completely ready.

Speaker #4: Got it. My question was a bit different. So, my question was: let's say we have to supply 100 pistons to Maruti. If we are doing it for E20 versus, let's say, E40 or E85...

Divyansh Gupta: My question was a bit different. My question was, let's say we have to supply 100 pistons to Maruti. If we are doing for E20 versus, let's say, E40 or E85. To provide the same volume, do we need to do further CapEx?

Speaker #4: To provide the same volume, do we need to do further capex?

Speaker #2: It's what I said. I think I answered this question. I don't—I think it requires a different kind of plating, and we have enough capacity for that.

Krishna Srinivasan: That's what I said. I think I answered this question. I think it requires different kind of plating, we have enough capacity for that.

Krishnakumar Srinivasan: That's what I said. I think I answered this question. I think it requires different kind of plating, we have enough capacity for that.

Speaker #4: Understood. Understood. That's all. That's all from my side. Thank you.

Divyansh Gupta: Understood. That's all from my side. Thank you.

Speaker #1: Thank you. We take the next question from the line of Devesh Kayal from Boring AMC. Please go ahead.

Moderator: Thank you. We take the next question from the line of Devesh Kayal from Boring AMC. Please go ahead.

Speaker #4: Yeah, I think I just want to understand our gross margins. The standard impact has been, around the past two quarters, about 50 to 57 percent versus what we have seen historically of 59 to 61 percent.

Devesh Kayal: Yeah, I just want to understand our gross margins on the standard insights have been around, the past 2 quarters have been around 60%, 67%, versus what we have seen historically of 59% to 61%. Is this just a commodity hit or any other product mix or lower export share? Or if you can just provide some color.

Speaker #4: So is it just a commodity hit, or does any other product make or lower export share? Or if you can just go...

Speaker #2: I think I asked. Devesh I think I answered this question. It is a mix of you know both the you know the commodity the product mix as well as the commodity impact.

Krishna Srinivasan: Devesh, I think I answered this question. It is a mix of both the product mix as well as the commodity impact. Both are there.

Krishnakumar Srinivasan: Devesh, I think I answered this question. It is a mix of both the product mix as well as the commodity impact. Both are there.

Speaker #2: Both are there.

Speaker #4: Okay. How do.

Devesh Kayal: Okay.

Speaker #2: You know, we normally have a gap in our recovery with our customers, as far as I explained. I think I explained this in the earlier question.

Krishna Srinivasan: We have normally a gap in our recovery with our customers, as far as I explained. I think I explained this in the earlier question.

Krishnakumar Srinivasan: We have normally a gap in our recovery with our customers, as far as I explained. I think I explained this in the earlier question.

Speaker #4: Okay. So we can try to argue that we will see recovery in this part, and it's not a normalized scenario.

Devesh Kayal: Okay. We can say to our impact, we will see recovery in this part, and it's not a normalized scenario.

Speaker #2: Obviously, we recover; we are not going to lose our margins.

Krishna Srinivasan: Obviously, we will recover. We are not going to lose on our margins.

Krishnakumar Srinivasan: Obviously, we will recover. We are not going to lose on our margins.

Speaker #4: Okay. And sir, what would be the gross debt currently, if the consolidation...?

Devesh Kayal: Okay. Sir, what was your gross debt currently? If you can tell again.

Speaker #2: Net 35. Net debt is around $550 million.

Krishna Srinivasan: Net debt is around INR 550.

Krishnakumar Srinivasan: Net debt is around INR 550.

Speaker #4: Sorry?

Devesh Kayal: Pardon?

Speaker #2: Our net debt is around $550 million. You can see it in our balance sheet that we have already declared.

Krishna Srinivasan: Our net debt is around INR 550. You can see it on our balance sheet that we declared already.

Krishnakumar Srinivasan: Our net debt is around INR 550. You can see it on our balance sheet that we declared already.

Speaker #4: Okay. This is as of June, not March.

Devesh Kayal: Okay, this is as of June, and not month.

Speaker #2: As of June—yeah, as of this month, it will be even better.

Krishna Srinivasan: As of June, yeah. As of this month, it will be even better.

Krishnakumar Srinivasan: As of June, yeah. As of this month, it will be even better.

Speaker #4: Okay, okay. Yeah, that's it from my side.

Devesh Kayal: That's okay. Yeah, that's it from my end.

Speaker #2: Yeah. Yeah.

Krishna Srinivasan: Yeah.

Krishnakumar Srinivasan: Yeah.

Speaker #1: Thank you. The next question is from the line of Viraj Kacharia from SIMPL. Please go ahead.

Moderator: Thank you. The next question is from the line of Viraj Kacharia from Securities Investment Management. Please go ahead.

Speaker #4: Yeah, thanks for the opportunity, and congratulations on a good set of numbers in a challenging environment. Please, just two questions, sir. First: this ₹30 crore—eventually, if I look at it on an annual basis, we will recover this from the customer, right?

Viraj Kacharia: Yeah, thanks for the opportunity, and congratulations on good set of numbers in challenging environment. Three, four questions, sir. First is, this 30 crore will eventually, if I look at annual basis, we will recover this from the customer, right?

Speaker #2: Normally it has a you know you have a gap of a you know quarter. So we are hoping that it will get it will all get normalized in this quarter.

Krishna Srinivasan: Normally, you have a gap of a quarter. We are hoping that it will all get normalized in this quarter.

Krishnakumar Srinivasan: Normally, you have a gap of a quarter. We are hoping that it will all get normalized in this quarter.

Speaker #4: Okay, sir. Second question is, if I look at exports, say, or understand the environment outside India is pretty bad in terms of market not recovered from the bottom does.

Viraj Kacharia: Okay. Sir, second question is, if I look at exports, say, I understand the environment outside India is pretty bad in terms of market not recovers on the bottom though. If one has to understand next three, five years kind of horizon, how should one understand export play for us, especially in the legacy business? Capacity is, market is getting consolidated, what are we doing? If you can give some more deep dive, how are we approaching this over a three, five year period?

Speaker #4: But if one is to understand, say, over the next three- to five-year kind of horizon, how should one understand the export play for us, you know, especially in the legacy business, right?

Speaker #4: Because capacity is—you know—market is getting consolidated. So, what are we doing, you know, if you can give some more deep dive, you know, how are we approaching this over a three to five year period.

Speaker #2: You know, it is a mix of the end market that is happening in exports and also, you know, the issue of some of the people vacating capacities.

Krishna Srinivasan: It is a mix of the end market that is happening in exports and also the issue of some of the people vacating capacities. As you heard in the previous question, Eaton has closed down some of their plants for engine valves in the US. It's a mix of both. What we see as a possibility for us is that the end markets will recover because once the geopolitical situation improves, it will certainly recover. The possibilities of markets opening up for us is always there, and we are already working on it. Both the things seems to be quite positive for us looking forward. I don't see any major issue.

Krishnakumar Srinivasan: It is a mix of the end market that is happening in exports and also the issue of some of the people vacating capacities. As you heard in the previous question, Eaton has closed down some of their plants for engine valves in the US. It's a mix of both. What we see as a possibility for us is that the end markets will recover because once the geopolitical situation improves, it will certainly recover. The possibilities of markets opening up for us is always there, and we are already working on it. Both the things seems to be quite positive for us looking forward. I don't see any major issue.

Speaker #2: As you heard in the previous question, you know E10 has closed down some of their plants for Indian Wells in the US, so it's a mix of both.

Speaker #2: But you know, what we see as a possibility for us is that the end markets will recover, because once the geopolitical situation improves, it will certainly recover.

Speaker #2: And the possibilities of markets opening up for us is always there, and we are already working on it. So both the things seem to be quite positive for us looking forward.

Speaker #2: So, I don't see any major issue. If you see, even under a very tough geopolitical situation, the whole of last year we delivered almost 2% to 3% better results in exports coming out of different segments of the market that we have been able to develop.

Krishna Srinivasan: If you see, even under a very tough geopolitical situation the whole of last year, we delivered almost 2% to 3% better results in exports coming out of different segments of the market that we have been able to develop. That also was for partial of the year. For this year, I hope that we'll get the full year benefit. At the same time, we are continuing to grow into newer segments and newer areas, and with newer customers, which will really help us to grow the export business. Frankly, I see it as a very positive side for us.

Krishnakumar Srinivasan: If you see, even under a very tough geopolitical situation the whole of last year, we delivered almost 2% to 3% better results in exports coming out of different segments of the market that we have been able to develop. That also was for partial of the year. For this year, I hope that we'll get the full year benefit. At the same time, we are continuing to grow into newer segments and newer areas, and with newer customers, which will really help us to grow the export business. Frankly, I see it as a very positive side for us.

Speaker #2: Now, that was also for part of the year, so for this year I hope that we’ll get the full-year advantage, full-year benefit.

Speaker #2: At the same time, we are continuing to grow into newer segments and newer areas, and with newer customers, which will really help us to grow the export business.

Speaker #2: So, frankly, I see it as a very, very positive side for us.

Speaker #4: Okay. Just one follow up on this. See technology partners also have their own you know customer base and you know market policies. So you know when we looking at business say in US or Europe is there a limitation for us to explore and you know go and approach for new business when in those markets.

Viraj Kacharia: Okay. Just one follow-up on this. See, technology partners also have their own customer base and market policy. When we're looking at business, say, in US or Europe, is there a limitation for us to explore and go and approach for new business wins in those markets or any color you can give on this?

Speaker #4: Or any color change.

Speaker #2: We have had clear agreements with our technology partners, and we have always worked within the precincts of those agreements, as we have in previous years also.

Krishna Srinivasan: We have had clear agreements with our technology partners, and we have always worked within those precincts of those agreements that we have in the previous years also. Whatever you see is always relative to the previous years, and I am seeing that it is going to be positive going ahead. I don't see any issue there.

Krishnakumar Srinivasan: We have had clear agreements with our technology partners, and we have always worked within those precincts of those agreements that we have in the previous years also. Whatever you see is always relative to the previous years, and I am seeing that it is going to be positive going ahead. I don't see any issue there.

Speaker #2: So whatever you see is always relative to the previous years. And I am seeing that I am seeing that it is going to be positive going ahead.

Speaker #2: So, I don't see any issue there.

Speaker #4: Okay. This last question, sir: if you look at these Takata subsidiaries, for FY26 we had seen a margin moderation and a PAT drop, right?

Viraj Kacharia: Okay. Just last question. Sir, if you look at the Takahata subsidiary, for FY26, we had seen a margin moderation and a PAT drop, right? What really happened there? If you can give some color.

Speaker #4: So, what was, you know, what really happened there? You know, if you can give some color.

Speaker #2: You know, it's purely a market mix situation there—and you know the product mix also. So always, if you really compare, you have to compare it with the first quarter of last year.

Krishna Srinivasan: It's purely a market mix situation there and the product mix also. You have to compare it to the Q1 of last year. Don't compare it on a sequential, because always in April, we do have a drop in the mold sales and others. It always happens that way.

Krishnakumar Srinivasan: It's purely a market mix situation there and the product mix also. You have to compare it to the Q1 of last year. Don't compare it on a sequential, because always in April, we do have a drop in the mold sales and others. It always happens that way.

Speaker #2: Don't compare it on a sequential basis, because always in April we do have a drop in the mold sales and others. So it always happens that way.

Speaker #4: No, no, no. I was actually asking about FY26 as a whole for Takata. So, there was a drop, there was margin moderation, and there was a de-growth in profitability on a full-year basis.

Viraj Kacharia: No, I was actually asking about FY26 as a whole for Takahata.

Krishna Srinivasan: Yeah.

Krishnakumar Srinivasan: Yeah.

Viraj Kacharia: There was a margin moderation, and there was a de-growth in profitability on a full year basis.

Speaker #2: Yeah, it's purely a sales mix. I don't think there is a major issue or any drop in prices.

Krishna Srinivasan: Yeah. It's purely a sales mix. I don't think there is a major issue on any drop in prices.

Krishnakumar Srinivasan: Yeah. It's purely a sales mix. I don't think there is a major issue on any drop in prices.

Speaker #4: Okay, and my last question was about your EMPI business. I think we have now commissioned the capacity, and based on your earlier communication, the capacity can go up to a peak sales of a couple of hundred crores.

Viraj Kacharia: Okay, last question was on EMFI business. I think we have now commissioned the capacity, and based on your earlier communication, the capacity can go up to a peak sales of couple of hundred crores. Where are we in that process of ramp-up and any color on new order wins?

Speaker #4: So, where are we in that process of ramp-up, and any color on new order wins?

Speaker #2: It was only because of the ramp-up, because of the new, you know, investments that we have done in Coimbatore, that we have been able to double the sales task last year.

Krishna Srinivasan: It was only because of the new investments that we have done in Coimbatore, that we have been able to double the sales last year. That was only for part of the year because we commissioned it sometime by end of December only. This year, we'll get the full benefit of the full capacity that we have created there. We are really progressing very well. In the very Q1 itself, we have done quite well.

Krishnakumar Srinivasan: It was only because of the new investments that we have done in Coimbatore, that we have been able to double the sales last year. That was only for part of the year because we commissioned it sometime by end of December only. This year, we'll get the full benefit of the full capacity that we have created there. We are really progressing very well. In the very Q1 itself, we have done quite well.

Speaker #2: And that's only—you know, that was only for part of the year because we commissioned it sometime by the end of December only. So this year we'll get the full benefit of the full, you know, capacity that we have created there.

Speaker #2: We are really progressing very well in the very first quarter itself, and we have done quite well.

Speaker #4: Okay. Thank you.

Viraj Kacharia: Thank you.

Speaker #2: Thanks Viraj.

Krishna Srinivasan: Thanks, Veera.

Krishnakumar Srinivasan: Thanks, Veera.

Speaker #1: Thank you. The next question is from the line of Preet Pitlani from InGrid AMC. Please go ahead.

Moderator: Thank you. The next question is from the line of Prit Pitlani from InCred AMC. Please go ahead.

Prit Pitlani: Thank you. Am I audible?

Preet Pitani: Thank you. Am I audible?

Speaker #4: Thanks. Quarterly. Am I audible?

Speaker #2: Yeah, Preet ji, please go ahead.

Krishna Srinivasan: Yeah, Prit. Please go ahead.

Krishnakumar Srinivasan: Yeah, Prit. Please go ahead.

Speaker #4: Hello am I audible?

Prit Pitlani: Hello, am I audible?

Preet Pitani: Hello, am I audible?

Speaker #2: Yeah, Preet ji, please go ahead.

Krishna Srinivasan: Yeah, Prit. Please go ahead.

Krishnakumar Srinivasan: Yeah, Prit. Please go ahead.

Speaker #4: Yeah, my first question is on the line of margin. Like we had said, of all the acquisitions we have done, we have translated much margin from those in high single digit to low double digit.

Prit Pitlani: Yeah. My first question is on the line of margins. Like we have said that of all the acquisitions we have done, we have translated margin from high single digit to low double digit, and we are aiming to acquire double digit. Just wanted to know, what are the margin driver? Is it by price, which we are getting change price? Or is it from the operating leverage? Or is it from some expense which earlier pre-acquisition gave into the place which we have removed? If you could give some highlight on the same.

Preet Pitani: Yeah. My first question is on the line of margins. Like we have said that of all the acquisitions we have done, we have translated margin from high single digit to low double digit, and we are aiming to acquire double digit. Just wanted to know, what are the margin driver? Is it by price, which we are getting change price? Or is it from the operating leverage? Or is it from some expense which earlier pre-acquisition gave into the place which we have removed? If you could give some highlight on the same.

Speaker #4: And we are aiming for higher double digits. Just wanted to know, what are the margin drivers? Is it by price, which we are getting? Change in price?

Speaker #4: Or is it from the operating leverage or is it from the is it from the some expense which earlier pre acquisitions gave they were into the place which we have removed.

Speaker #4: If you could give some highlights on the scene.

Speaker #2: Thank you, Preet ji. There are, you know, over—you know—many, many actions due to which the stats are happening. And, you know, it not only takes—you know, is not only related to actions on the shop floor, actions on improvements, on operations, improvements on supply chain.

Krishna Srinivasan: Frankly, Prit, there are over many actions due to which this starts happening. It's not only related to actions on the shop floor, actions on improvements on operations, improvements on supply chain, improvements on some of the insourcing that we are planning. Lot of actions. It has a time period for that, and over a period of time, you'll see the improvements happening further.

Krishnakumar Srinivasan: Frankly, Prit, there are over many actions due to which this starts happening. It's not only related to actions on the shop floor, actions on improvements on operations, improvements on supply chain, improvements on some of the insourcing that we are planning. Lot of actions. It has a time period for that, and over a period of time, you'll see the improvements happening further.

Speaker #2: Improvements on, you know, some of the insourcing that we are planning. A lot of— a lot of— a lot of actions.

Speaker #2: So, it will, it will—it has a time period for that. And over a period of time, you'll see the improvements happening further.

Speaker #4: Thank you. And second question is, with our current capacity utilization, what peak revenue can we achieve?

Prit Pitlani: Thank you. Second question is on the line of with our current capacity utilization, what peak revenue can we achieve?

Preet Pitani: Thank you. Second question is on the line of with our current capacity utilization, what peak revenue can we achieve?

Speaker #2: See capacity is something that we continue to keep on investing. As I said you know we we bought the Sunbeam lines. We got a fantastic capacity for for Piston.

Krishna Srinivasan: See, capacity is something that we continue to keep on investing. As I said, we bought the Sunbeam lines. We got a fantastic capacity for pistons. This capacity is a dynamic number. They'll keep on changing. We have to continue the investment. We'll continue to ensure that we are able to meet our customer demands. We are putting all the money at the right place and ensuring that we are able to meet the customer demands. Happy to state that in Q1, we have met our customer demands, and have maintained a fairly good mix so that you are able to maintain our margins.

Krishnakumar Srinivasan: See, capacity is something that we continue to keep on investing. As I said, we bought the Sunbeam lines. We got a fantastic capacity for pistons. This capacity is a dynamic number. They'll keep on changing. We have to continue the investment. We'll continue to ensure that we are able to meet our customer demands. We are putting all the money at the right place and ensuring that we are able to meet the customer demands. Happy to state that in Q1, we have met our customer demands, and have maintained a fairly good mix so that you are able to maintain our margins.

Speaker #2: So this capacity is a dynamic number. We will keep on changing it. So, we have to continue the investments and continue to ensure that we are able to meet our customer demands.

Speaker #2: So, we are putting all the money in the right place and ensuring that we are able to meet the customer demands. Happy to state that in the first quarter, we have met our customer demands.

Speaker #2: Even and have maintained a fairly good mix, so that you are able to maintain our margins.

Speaker #4: Not on Piston are the three acquisitions that we did. What would be the...

Prit Pitlani: Not on piston. Other three acquisitions which we did.

Preet Pitani: Not on piston. Other three acquisitions which we did.

Prit Pitlani: All

Preet Pitani: All

Prit Pitlani: what would be the

Preet Pitani: what would be the

Speaker #2: Everywhere we are, we are putting in a lot of money. That's what I said in my speech, that there are capacity expansion programs going on almost in every place.

Krishna Srinivasan: Everywhere we are putting in a lot of money. That's what I said in my speech, that there are capacity expansion programs going on almost in every place, right? From our plastics business to motors, controllers to even our interiors business and also our legacy pistons business.

Krishnakumar Srinivasan: Everywhere we are putting in a lot of money. That's what I said in my speech, that there are capacity expansion programs going on almost in every place, right? From our plastics business to motors, controllers to even our interiors business and also our legacy pistons business.

Speaker #2: Right from, you know, our plastics business to motors, controllers, to, you know, even our interiors business, and also our legacy pistons business.

Speaker #4: Thank you so much, sir. That's it from my side.

Prit Pitlani: Thank you so much, sir. That's it from my side.

Preet Pitani: Thank you so much, sir. That's it from my side.

Speaker #2: Yeah yeah.

Krishna Srinivasan: Bye.

Krishnakumar Srinivasan: Bye.

Speaker #1: Ladies and gentlemen, in order to make sure that management is able to answer questions from all participants, please limit your questions to two per participant.

Moderator: Ladies and gentlemen, in order to make sure that the management is able to answer questions from all participants, please limit your questions to two per participant. The next question is from the line of Varun Arora from Safe Enterprises. Please go ahead.

Speaker #1: The next question is from the line of Varun Arora from Safe Enterprises. Please go ahead.

Speaker #3: Hi. Thanks for the opportunity. So my question is regarding Andal in India. You mentioned about some new wins. It would be great if you can give some customer wise you know idea in terms of share of business.

Varun Arora: Hi, thanks for the opportunity. My question is regarding Antolin India. You mentioned about some new wins. It will be great if you can give some customer-wise idea in terms of share of business. My understanding is that Antolin India was probably not investing prior to the acquire, and customers wanted them to make certain investments. Under now SPR, you've also mentioned that you've made some investments. Now, can you give some idea in terms of how our share of business could improve with leading OEMs?

Speaker #3: You know, my understanding is that Andal in India was probably not investing, you know, prior to when we acquired. And customers wanted them to make certain investments.

Speaker #3: So under SPR now, you know, you have also mentioned that you've made some investments. So, can you give some idea in terms of how our share of business could improve with leading OEMs?

Speaker #2: Well, you know, if you really see Andal's business, Andal's business has been quite, you know, they have a fairly good market share with all the other customers.

Krishna Srinivasan: If you really see Antolin's business, they have a fairly good market share with all the other customers, all the customers. We have maintained those market shares, and we are seeing how we can go further. As far as we are concerned, we have opened up all the possibilities to invest, and all our customers know that. Customers know us right from the beginning. Almost all the customers are similar. We have contacts with all the levels of the customers, both for our legacy business as well as all our other businesses. We have a fairly good confidence, and customers have a good confidence on the SPR Auto Technologies, that we'll continue to invest and make the right investment for them. We don't give the exact figures, but we are continuing to invest. At the end of the year you will see all the details.

Krishnakumar Srinivasan: If you really see Antolin's business, they have a fairly good market share with all the other customers, all the customers. We have maintained those market shares, and we are seeing how we can go further. As far as we are concerned, we have opened up all the possibilities to invest, and all our customers know that. Customers know us right from the beginning. Almost all the customers are similar. We have contacts with all the levels of the customers, both for our legacy business as well as all our other businesses. We have a fairly good confidence, and customers have a good confidence on the SPR Auto Technologies, that we'll continue to invest and make the right investment for them. We don't give the exact figures, but we are continuing to invest. At the end of the year you will see all the details.

Speaker #2: All the customers. And you know, we have maintained those market shares and we are seeing how we can go further. As far as we are concerned, we have opened up all the possibilities to invest.

Speaker #2: And all our customers know that. Customers have known us right from the beginning. You know, almost all the customers are similar. We have contacts at all levels with our customers.

Speaker #2: Even you know at both for our legacy business as well as all our other businesses. So we have a fairly good confidence and customers have a good confidence on the SPR Auto Technologies.

Speaker #2: That we'll continue to invest and make the right investments for them. So, we don't give the exact figures, but we are continuing to invest.

Speaker #2: And you'll see it at the end of the year. You'll see all the details.

Speaker #3: Sure. And sir, on subsidies, we've seen a good margin improvement. So, you mentioned partly due to Andal, you know, margins have come to early teens.

Varun Arora: Sure. Sir, on subsidiaries, we've seen a good margin improvement. You mentioned partly due to Antolin, margins have come to early teens. Again, I think our competitors are operating at early teens to mid-teens. SPR, our profitability, generally we do a good job across the businesses. Fair to say that we can get to mid-teens level even for Antolin?

Speaker #3: Again, I think our competitors are operating at early teens to mid-teens. So, fair to say that—I mean, SPR—I mean, you know, our profitability generally, we do a good job across the businesses.

Speaker #3: So, fair to say that we can kind of get to mid-teens level, even for Andal in.

Speaker #2: Well, I hope we can. So, we are pushing the teens, and we'll continue to see how we can make further progress on our margins.

Krishna Srinivasan: Well, I hope we can. We are pushing the teams, and we'll continue to see how we can make further progress on our margins. We have number of actions lined up, and I think all of them are working, which is seen by the result, I don't see any reason why it should not further improve.

Krishnakumar Srinivasan: Well, I hope we can. We are pushing the teams, and we'll continue to see how we can make further progress on our margins. We have number of actions lined up, and I think all of them are working, which is seen by the result, I don't see any reason why it should not further improve.

Speaker #2: We, you know, we have a number of actions lined up. And I think most of them, or all of them, are working, which is seen by the result.

Speaker #2: And I don't see any reason why it should not further improve.

Speaker #3: Sure. Just a follow-up, sir. Related to margins, are margin improvements also driven by the EV subsidies, or just Andal in?

Varun Arora: Just a follow-up, sir. Related to margins, our margins improvement, is it also driven by the EV subsidies or just Antolin? Like Q1Q margin improvement?

Speaker #3: Like, you want a margin improvement.

Speaker #2: No, all the subsidiaries. All the subsidiaries have done well, on the margins.

Krishna Srinivasan: No, all the subsidies. All the subsidies have done well on the margins.

Krishnakumar Srinivasan: No, all the subsidies. All the subsidies have done well on the margins.

Speaker #3: Right. Because the EV subsidy would have gotten the maximum operating leverage, right? With the volume ramp-up.

Varun Arora: Right. The EV subsidy would have got the maximum operating leverage, right? With the volume ramp-up.

Speaker #2: Yeah yeah. They everybody everybody has got a good good margin improvement. So I'm I I must say that all the all the companies have done really well.

Krishna Srinivasan: Yeah. Everybody has got a good margin improvement. I must say that all the companies have done really well.

Krishnakumar Srinivasan: Yeah. Everybody has got a good margin improvement. I must say that all the companies have done really well.

Speaker #3: Okay, thanks. Thank you, sir. Thank you.

Varun Arora: Okay, fine. Thank you, sir.

Speaker #2: Yeah.

Krishna Srinivasan: Yeah.

Krishnakumar Srinivasan: Yeah.

Speaker #1: Thank you. The next question is from the line of Nikunj Mehta from Magma Ventures. Please go ahead.

Moderator: Thank you. The next question is from the line of Nikunj Mehta from Magma Ventures. Please go ahead.

Speaker #3: Yeah, hi. Thanks for the opportunity. Am I audible?

Nikunj Mehta: Yeah, hi. Thanks for the opportunity. Am I audible?

Speaker #2: Yeah Nikunj please go ahead.

Krishna Srinivasan: Yeah, Nikunj. Please go ahead.

Krishnakumar Srinivasan: Yeah, Nikunj. Please go ahead.

Speaker #3: Yeah. So just a couple of questions on my side. So one is that from the fundraise which we are which we have taken the board approval from.

Nikunj Mehta: Just a couple of questions from my side. One is that from the fundraise which we have taken the board approval from. I just wanted to understand that how much is going to be used for acquisition and how much will be used for debt repayment?

Speaker #3: So I just wanted to understand how much is going to be used for acquisition and how much will be used for debt repayment.

Speaker #2: We don't normally give this backup. We are looking at various things. You know, see, money is completely fungible, you know. We already have money sitting on our balance sheet.

Krishna Srinivasan: We don't normally give this breakup. We are looking at various things. See, money is completely fungible. We already have money sitting in our balance sheet. We do have plans for further investments. We have plans for the repayment of debt. At the same time, we also have to continue to invest on all our businesses. It's a mix of everything. The good part is that it will be put to very good use, and it will be put to the areas of growth. We continue to look at excellent business opportunities ahead, and we are quite confident of using the money well.

Krishnakumar Srinivasan: We don't normally give this breakup. We are looking at various things. See, money is completely fungible. We already have money sitting in our balance sheet. We do have plans for further investments. We have plans for the repayment of debt. At the same time, we also have to continue to invest on all our businesses. It's a mix of everything. The good part is that it will be put to very good use, and it will be put to the areas of growth. We continue to look at excellent business opportunities ahead, and we are quite confident of using the money well.

Speaker #2: So, we do have plans for, you know, further investments. We have planned for, you know, the repayment of debt. At the same time, we also have to continue to invest in all our businesses.

Speaker #2: So, it's all a mix of everything. And the good part is that it will be put to very good use, and it will be put to the areas of growth.

Speaker #2: And we continue to look at excellent business opportunities ahead, and we are quite confident of using the money here.

Speaker #3: Okay, so just a follow-on question on this one. From an acquisition perspective, as we have moved over the last two years, our acquisition size has clearly increased, with the Andal deal being the largest one which we have acquired.

Nikunj Mehta: Okay. Just a follow-on question on this one. From an acquisition perspective, now, as we have moved over the last two years, our acquisition size has clearly increased, with Antolin being the largest one which we have acquired. How should we look at now going forward? At the console level, our size and scale is increasing. Is there any threshold in terms of acquisition amount or the business which you want to acquire? Is there any threshold or something like that which you have in your mind?

Speaker #3: So how should we look at it now going forward? Because at the console level, our size and scale are increasing. So, is there any threshold in terms of acquisition amount or the business which we want to acquire?

Speaker #3: Is there any threshold or something like that which you have in mind?

Speaker #2: No, Nikunj, normally the acquisition, you know, has to stand on its own legs with regards to all the parameters that we have in our, you know, evaluation.

Krishna Srinivasan: No, Nikunj. Normally, the acquisition has to stand on its own legs with regards to all the parameters that we have in our evolution. We completely ensure that it falls into the respective parameters that we check on. Only after we tick mark on all the issues related to technology, future growth, markets, and so many other possibilities, that we really fix it. It could be INR 300 crore, or it could be INR 500 crore or INR 1,500 crore. We can't really go by that. The good part is that the company now has a good appetite, and it has a good means of managing a fairly good appetite in terms of.

Krishnakumar Srinivasan: No, Nikunj. Normally, the acquisition has to stand on its own legs with regards to all the parameters that we have in our evolution. We completely ensure that it falls into the respective parameters that we check on. Only after we tick mark on all the issues related to technology, future growth, markets, and so many other possibilities, that we really fix it. It could be INR 300 crore, or it could be INR 500 crore or INR 1,500 crore. We can't really go by that. The good part is that the company now has a good appetite, and it has a good means of managing a fairly good appetite in terms of.

Speaker #2: We completely, you know, ensure that it falls into the respective parameters that we check on. And only after it has, you know, we tick mark on all the issues related to technology, future growth, markets, and so many other possibilities that we really fix it.

Speaker #2: It could be a 300 crore or it could be a 500 crore or a 1500 crore. So we can't we can't really go by that.

Speaker #2: The good part is that the company now has a good appetite, and it has a good means of managing a fairly good appetite in terms of, you know, managing their mandate.

Nikunj Mehta: Okay

Krishna Srinivasan: Managing their mandates. We'll continue to do that till the time we know that for sure, we are able to service it well.

Krishnakumar Srinivasan: Managing their mandates. We'll continue to do that till the time we know that for sure, we are able to service it well.

Speaker #2: So we'll continue to do that until the time we know for sure that we are able to, you know, service it well—and especially for all our stakeholders.

Nikunj Mehta: Okay

Krishna Srinivasan: especially for all our stakeholders.

Krishnakumar Srinivasan: especially for all our stakeholders.

Speaker #3: So, from a balance sheet perspective, is there any metric like net debt to equity or net debt to EBITDA, for which you would want to define thresholds—like, "We will not cross this one"?

Nikunj Mehta: From a balance sheet perspective, is there any metric like a net debt to equity or a net debt to EBITDA, which you would want that these are the thresholds we will not cross this one?

Speaker #2: We have very clear parameters on that—very, very clear parameters internally. And you can always work out the net debt to equity that we have.

Krishna Srinivasan: We have very clear parameters on that. Very clear parameters internally, and you can always work out the net debt to the equity that we have. It's fairly very low.

Krishnakumar Srinivasan: We have very clear parameters on that. Very clear parameters internally, and you can always work out the net debt to the equity that we have. It's fairly very low.

Speaker #2: So it's fairly very low.

Speaker #3: So, is it fair to say that we would like to keep it at one as the higher side for net debt to equity?

Nikunj Mehta: Is it fair to say that we would like to keep it at one as a higher time net debt to equity?

Speaker #2: Yeah. It it could it could even be lower than that. You know I don't think we'll that. It is a present it is only 0.2.

Krishna Srinivasan: Yeah. It could even be lower than that. I don't think we'll.

Krishnakumar Srinivasan: Yeah. It could even be lower than that. I don't think we'll.

Nikunj Mehta: It's very less actually, it's 0.2.

Krishna Srinivasan: At present, it is only 0.2, so we don't see any reason why we have to go even up to one.

Krishnakumar Srinivasan: At present, it is only 0.2, so we don't see any reason why we have to go even up to one.

Speaker #2: So, we don't see any reason why we have to go even up to one.

Speaker #3: Okay. I mean, last question from my side.

Nikunj Mehta: Okay. Last question from my side.

Speaker #2: It's in our balance sheet. Yeah.

Krishna Srinivasan: In our balance sheet, yeah.

Krishnakumar Srinivasan: In our balance sheet, yeah.

Speaker #3: And last question from my side that you have mentioned that you are you want that the consolidated margins essentially should over the time kind of merge with what we are doing on a standalone side of the equation.

Nikunj Mehta: Last question from my side, you had mentioned that you want that the consolidated margins essentially should, over the time, merge with what we are doing on the standalone side of the equation. In that journey, how much time do you see that you will be able to kind of meet that?

Speaker #3: So in that journey, how much time do you see that it will be before you'll be able to kind of meet that?

Speaker #2: You mean investment in the legacy business?

Krishna Srinivasan: You mean investment in the legacy business?

Krishnakumar Srinivasan: You mean investment in the legacy business?

Speaker #3: No, no. The margins at the consolidated level to reach at the...

Nikunj Mehta: No.

Speaker #1: Sorry to interrupt, Mr. Nikunj Mehta. Please get back in the queue for any follow-up questions.

Moderator: Sorry to interrupt, Mr. Nikunj Mehta. Please get back in the queue for any follow-up questions.

Speaker #3: Sir, this was just a last question from my side.

Nikunj Mehta: Yeah, this was just the last one from my side.

Speaker #2: Just to answer this question, Nikunj, we are continuing to grow our margins. You know, you can see that at a consolidated level, if we are able to maintain the high teens, I think it's an excellent possibility.

Krishna Srinivasan: Just to answer this question, Nikunj, we are continuing to grow our margins. You can see that at a consolidated level, if we are able to maintain the high teens, I think it is excellent possibility, and it gives us a lot of opportunity within the group to do many things, both in terms of improving capacities as well as in terms of investing for the future in future M&As.

Krishnakumar Srinivasan: Just to answer this question, Nikunj, we are continuing to grow our margins. You can see that at a consolidated level, if we are able to maintain the high teens, I think it is excellent possibility, and it gives us a lot of opportunity within the group to do many things, both in terms of improving capacities as well as in terms of investing for the future in future M&As.

Speaker #2: And it gives us a lot of opportunity within the group to do many things, both in terms of improving capacities as well as in terms of investing for the future, including future M&A.

Speaker #3: Okay, thanks. Thank you so much.

Nikunj Mehta: Okay. Thank you so much.

Speaker #2: Thank you Nikunj.

Krishna Srinivasan: Thank you, Nikunj.

Krishnakumar Srinivasan: Thank you, Nikunj.

Speaker #1: Thank you. The next question is from the line of Ravi Purohit from Securities Investment Management. Please go ahead.

Moderator: Thank you. The next question is from the line of Ravi Purohit from Securities Investment Management. Please go ahead.

Speaker #3: Yeah hi. Thanks for for taking my question. So two questions. One is on you know this NFI you know business that we have. If you could just you know kind of give us some color on you know what kind of capacities have we created and what kind of product.

Ravi Purohit: Yeah. Hi. Thanks for taking my question. Sir, two questions. One is on this EMFI business that we have. If you could just kind of give us some color on what kind of capacities have we created and what kind of product. When we go on the website of our SPR EMFI, we see products like axial flux motors or drone motors or electric marine motors, right? There are quite a few interesting products that are there listed on the website. If you could, kind of, because generally this business does not really get too much spoken about either in our presentations or the con calls. If you could just spend some time, and I think we have commissioned the capacity, like you had mentioned in December 2023.

Speaker #3: Because when we go on the, you know, pay website of our SPR NPI, you know, we see products like, you know, Excel Flux Motors or Drone Motors or Electric Marine Motors, right.

Speaker #3: So there are quite a few interesting products that they are that are there listed on the website. If you could kind of you know because generally this this business does not really get too much spoken about in our you know either in our presentations or the con calls.

Speaker #3: So if you could just spend some time, and I think we have commissioned a capacity—like you had mentioned—in December, you know, last year.

Speaker #3: So if you could just share some insights as to what this business is, how scalable it is, what kind of products we are doing, how big it can be over a period of time, and what are the industries that it is addressing.

Ravi Purohit: If you could just share some insights as to what this business is, how scalable it is, what kind of products are we doing, how big can it be over a period of time, what are the industries that it is addressing?

Speaker #2: Yeah, see, we put our, you know, electric motor and controllers facility. We are probably one of the very few who make both the motors and controllers together.

Krishna Srinivasan: Yeah. See, we put our electric motor and controller facility. We are probably one of the very few who make both the motors and controllers together. We have a couple of lines for electric motors and controllers. Electric motors standalone and controllers also. As far as electric motors is concerned, we make traction motors. We can make PMSM motors, non-PMSM motors, ferrite motors, as well as the synchronous ferrite motors, as well as others for the two-wheeler industry, the car industry, that is the passenger car industry, and also the truck and the bus industry. We already have products which are under various stages of validation with various customers. I would like to state that we have really grown very well in this, and we have almost become a very sizable player today as a motor and controller supplier across the industry.

Krishnakumar Srinivasan: Yeah. See, we put our electric motor and controller facility. We are probably one of the very few who make both the motors and controllers together. We have a couple of lines for electric motors and controllers. Electric motors standalone and controllers also. As far as electric motors is concerned, we make traction motors. We can make PMSM motors, non-PMSM motors, ferrite motors, as well as the synchronous ferrite motors, as well as others for the two-wheeler industry, the car industry, that is the passenger car industry, and also the truck and the bus industry. We already have products which are under various stages of validation with various customers. I would like to state that we have really grown very well in this, and we have almost become a very sizable player today as a motor and controller supplier across the industry.

Speaker #2: We have a complete lines we have couple of lines for electric motors and controllers. Electric motors standalone and controllers also. And as far as electric motors is concerned we make traction motors you know we can make PMSM motors non PMSM motors Ferrite motors as well as you know the synchronous Ferrite motors as well as others for the two wheeler industry the four the car industry that is the passenger car industry and also the truck and the bus industry.

Speaker #2: And we already have products which are under various stages of validation with various customers. So it's a I would I would like to state that we have really grown very well in this and we have almost become a very sizable player today in the motor motor and controllers supplier as a motor and controllers supplier across the industry.

Speaker #2: So, you know, we don't normally give the market share, obviously because this is changing by the day. We are getting new customers—it's changing by the day—and it's really not right to give one number and then tomorrow say a different number.

Krishna Srinivasan: We don't normally give the market share, obviously, because this is changing by the day. We are getting new customers, it's changing by the day, and it's really not right to give one number and then tomorrow say a different number. We are as yet not giving any kind of those details because it's evolving, and I am very happy to state that last year we doubled the turnover, and we continue to grow very fast in this segment.

Krishnakumar Srinivasan: We don't normally give the market share, obviously, because this is changing by the day. We are getting new customers, it's changing by the day, and it's really not right to give one number and then tomorrow say a different number. We are as yet not giving any kind of those details because it's evolving, and I am very happy to state that last year we doubled the turnover, and we continue to grow very fast in this segment.

Speaker #2: So, we are as yet not giving any kind of those details because it's evolving, and I am very happy to state that last year we doubled the turnover, and we continue to grow very, very fast in this segment.

Speaker #3: So, what kind of capacity do we have right now at peak capacity utilization levels? What kind of turnover can this business do? And is it, like, is it diluting?

Ravi Purohit: What kind of capacity do we have right now? At peak capacity utilization levels, what kind of turnover can this business do? Is it like a diluting?

Speaker #2: No, no, I'll tell you. Ravi ji, if I had one winding machine, capacity would increase by more than, you know, fifteen percent.

Krishna Srinivasan: No, I'll tell you, Ravi. If I add one winding machine, capacity will increase by more than 15%. I can't give the capacity number. It's a figure which will keep changing as we keep putting a little bit of investment here and there. Normally, we are not giving that because then that restricts our growth targets, and neither do I want to tell the team that we are not going to invest. For me, it's important to get the business and meet those businesses, and we'll continue to grow.

Krishnakumar Srinivasan: No, I'll tell you, Ravi. If I add one winding machine, capacity will increase by more than 15%. I can't give the capacity number. It's a figure which will keep changing as we keep putting a little bit of investment here and there. Normally, we are not giving that because then that restricts our growth targets, and neither do I want to tell the team that we are not going to invest. For me, it's important to get the business and meet those businesses, and we'll continue to grow.

Speaker #2: So I can't give the capacity number. It's a figure which will keep changing as we keep putting a little bit of investment here and there.

Speaker #2: So normally we are not giving that because then that restricts our you know growth targets and neither do I want to tell the team that we are not going to invest and not you know for me it's important to get the business and meet those businesses.

Speaker #2: And we'll continue to grow.

Speaker #3: Okay. Okay. Because you know some of the products that that like Excel Flux Motors right. Not many companies actually do it in India. So I was wondering like as to you know what kind of you know R&D work is being done.

Ravi Purohit: Okay. Because some of the products like axial flux motors, not many companies actually do it in India. I was wondering as to what kind of R&D work is being done, what kind of technology do we have there, and what is the source of the technology for this business?

Speaker #3: What kind of technology do we have there, and what is the source of the technology you know, for this business?

Speaker #2: This, I think I have answered in my previous calls. We have a, you know, good technology partner. EMF is based out of–EMFI International is based out of Singapore.

Krishna Srinivasan: This, I think I have answered in my previous calls. We have a good technology partner. EMF is based out of EMFI International base out of Singapore. We have a fairly good technology availability. We have also tie-ups with Lingbo for our controller. We are able to cater to all the requirements that is there for the Indian market as on date.

Krishnakumar Srinivasan: This, I think I have answered in my previous calls. We have a good technology partner. EMF is based out of EMFI International base out of Singapore. We have a fairly good technology availability. We have also tie-ups with Lingbo for our controller. We are able to cater to all the requirements that is there for the Indian market as on date.

Speaker #2: We have fairly good technology availability. We also have tie-ups with Lingbo for our controllers, and we are able to cater to all the requirements that are there for the Indian market as of date.

Speaker #3: Okay. Okay. And so would you, so you know, now we have until in...

Ravi Purohit: Okay. Would you, now we have-

Moderator: Sorry to interrupt, Mr. Raghavan. You may please return to the queue for any follow-up questions.

Speaker #1: Sorry to interrupt, Mr. Ravi Purohit. Please return to the queue for any follow-up questions.

Speaker #3: Okay. Thank you.

Ravi Purohit: Okay, thank you.

Speaker #2: Yeah.

Speaker #1: The next question is from the line of Vijay Pande from Axis Capital. Please go ahead.

Moderator: The next question is from the line of Vijay Pandey from Axis Capital. Please go ahead.

Speaker #2: Yeah Vijay ay ji.

Krishna Srinivasan: Yeah, Vijay ji.

Krishnakumar Srinivasan: Yeah, Vijay ji.

Speaker #3: So, just want to understand about the capacity expansion that we were taking up for Takarta and TGPL. How is it looking, and when can we expect product revenues from there?

Vijay Pandey: Just want to understand about the capacity expansion, which we were taking up for Takahata and TGPEL. How is it looking and when can we expect revenues from there?

Speaker #2: Yeah phase four expansion in in Takarta is already started. And we are building up the new plant. Just adjacent to our existing plant. We have another five acre of land which is adjacent to that piece of land that we the the factory that we had where we have got three phases of expansion already done.

Krishna Srinivasan: Our phase 4 expansion in Takahata has already started, and we are building up the new plant just adjacent to our existing plant. We have another 5 acres of land, which is adjacent to that piece of land, the factory that we had, where we have got 3 phases of expansion already done. Now we are planning for the 4th phase of expansion in Takahata. Similarly, in TGPEL, we already have the 2 plants in Noida, and in the second plant, we have complete capacity available, and that's getting filled up as we speak.

Krishnakumar Srinivasan: Our phase 4 expansion in Takahata has already started, and we are building up the new plant just adjacent to our existing plant. We have another 5 acres of land, which is adjacent to that piece of land, the factory that we had, where we have got 3 phases of expansion already done. Now we are planning for the 4th phase of expansion in Takahata. Similarly, in TGPEL, we already have the 2 plants in Noida, and in the second plant, we have complete capacity available, and that's getting filled up as we speak.

Speaker #2: Now we have gone in for the fourth phase of expansion in Jakarta. And similarly, in TGPL, we already have the two plants in Noida.

Speaker #2: And in the second plant, we have complete capacity available, and that's getting filled up as we speak.

Speaker #3: And these two plants will start generating revenue over the next two years, or will it be faster?

Vijay Pandey: These 2 plants will start generating revenues over next 2 years or will it be faster?

Speaker #2: Yeah. As far as the new business in Takarta is concerned, I think we are expecting it to start generating revenues by next year.

Krishna Srinivasan: As far as the new business in Takahata is concerned, I think we are expecting it to start generating revenues by next year, early next year. TGPEL is already on the process.

Krishnakumar Srinivasan: As far as the new business in Takahata is concerned, I think we are expecting it to start generating revenues by next year, early next year. TGPEL is already on the process.

Speaker #2: Early next year. And TGPL is already in the process.

Speaker #3: Okay. And just on the EMFI business, just a follow-up on the previous question. If you can help us understand the key OEMs or key OEMs to which we supply, because even in the EV business...

Vijay Pandey: Okay. Just on the EMFI business, just a follow-up for the previous question. If you can help us understand the key OEMs or key OEMs to which we supply, because even in the EV business.

Krishna Srinivasan: Almost on a monthly basis, we've got addition of new customers happening. It's very difficult for me to give any particular names and miss out the others, which would be impacting my business. Kindly believe in us that it's not that we have doubled the volume just by talking. It is double the volumes just by getting new customers. We are growing the business, and it's doing very well.

Krishnakumar Srinivasan: Almost on a monthly basis, we've got addition of new customers happening. It's very difficult for me to give any particular names and miss out the others, which would be impacting my business. Kindly believe in us that it's not that we have doubled the volume just by talking. It is double the volumes just by getting new customers. We are growing the business, and it's doing very well.

Speaker #2: Almost on a monthly basis, we have got addition of new customers happening. So it's very difficult for me to give any particular names and miss out the others, which would be, you know, impacting my business.

Speaker #2: So kindly believe in us that, you know, it's not that we have doubled the volume just by talking. It is double the volume just by getting new customers, right?

Speaker #2: So, we are growing the business, and it's going very well.

Speaker #3: Like, even if you can give a bit of color.

Vijay Pandey: Even if you can give a bit color.

Speaker #1: Mr. Vijay Pande, sorry to interrupt. Sorry to interrupt, Mr. Vijay Pande. We may request you to return to the question queue for any follow-up questions.

Moderator: Mr. Vijay Pandey, sorry to interrupt. We may request you to return to the question queue for any follow-up questions. The next follow-up question is from the line of Gokul Maheshwari from Aviga Capital Advisors. Please go ahead.

Speaker #1: The next follow-up question is from the line of Gokul Maheshwari from Avreega Capital Advisors. Please go ahead.

Speaker #3: Yeah, thank you for the opportunity again. Just one question, sir. If you could comment on the Antoline business—how does our current business, either standalone or through Takarta or TGPL, work along with the Antoline business with respect to providing synergies or certain products, etcetera, which can be catered to, or providing raw materials, etcetera, to the Antoline business?

Gokul Maheshwari: Yeah, thank you for the opportunity again. Just one question, sir. Just if you could comment on the Antolin business, how does our current business or standalone or whether Takahata or TGPEL work along with the Antolin business with respect to providing synergies or certain products, et cetera, which can be catered by or providing raw materials, et cetera, to the Antolin business? How does operational synergies taking place?

Speaker #3: How are the operational synergies taking place?

Speaker #2: Yeah, it's going quite well, and we are looking at—you know, all this takes a lot of time with regards to approvals, getting the clearances, making the dies, tools, and then getting the customer approvals, end-customer approvals.

Krishna Srinivasan: Yeah, it's going quite well. All this takes a lot of time with regards to approvals, getting the clearances, making the dies, tools, and then getting the end customer approval. All this takes time, but we are progressing quite well. Already the synergies have started, and the teams have started collaborating quite well. The overall, let me put it this way, the integration of the team within the overall SPR management has been extremely good, and that's what is showing the results.

Krishnakumar Srinivasan: Yeah, it's going quite well. All this takes a lot of time with regards to approvals, getting the clearances, making the dies, tools, and then getting the end customer approval. All this takes time, but we are progressing quite well. Already the synergies have started, and the teams have started collaborating quite well. The overall, let me put it this way, the integration of the team within the overall SPR management has been extremely good, and that's what is showing the results.

Speaker #2: So all of this takes time, but we are progressing quite well. And, you know, already the synergies have started, and the teams have started collaborating quite well.

Speaker #2: And the whole overall—let me put it this way—the integration of the team within the overall SPR management has been extremely good. And that's what is showing in the results.

Speaker #3: Okay, sir. Thank you so much.

Gokul Maheshwari: Okay, sir. Thank you so much.

Speaker #2: Thank you so much, Gokul ji.

Krishna Srinivasan: Thank you so much, Gokul ji.

Krishnakumar Srinivasan: Thank you so much, Gokul ji.

Speaker #1: Thank you. The next question is from the line of Ajay Om Prakash Ahuja, an individual investor. Please go ahead.

Moderator: Thank you. The next question is from the line of Ajay Omprakash Ahuja, an Individual Investor. Please go ahead.

Speaker #3: Hello am I audible? Hello?

Ajay Omprakash Ahuja: Hello, am I audible? Hello.

Speaker #2: Yeah, please go ahead. Yeah, please go ahead, Ajay ji.

Krishna Srinivasan: Yeah, please go ahead, Ajay ji.

Krishnakumar Srinivasan: Yeah, please go ahead, Ajay ji.

Speaker #3: So, my question is regarding the Antoline integration. Three years from now, what has to be true for you to say the acquisition has been truly successful?

Ajay Omprakash Ahuja: My question is regarding the Antolin integration. Three years from now, what has to be true for you to say the acquisition has been truly successful? Beyond the financing metrics I'm asking, what would be the early strategic indicators that tell you the integration is progressing in the right direction? This is my question.

Speaker #3: Beyond the financial metrics, I'm asking: what would be the early strategic indicators that tell you the integration is progressing in the right direction? This is my question.

Speaker #2: Yeah, this is a very interesting question. You know, at least from my standpoint, from the standpoint of management, I can tell you that we have four or five clear parameters based on which we say that it has been successful.

Krishna Srinivasan: Yeah, it's a very interesting question. From my standpoint, at least from the standpoint of the management, I can tell you that we have four or five clear parameters based on which we say that it has been successful. I already say that it is successful because the integration of the teams have happened well, teams are working together quite well. There's a good collaboration. There's a good amount of culture that is getting developed across all the companies that we have done M&A. Almost all of them we are trying to build in the same kind of culture in terms of how we work. It's going to be more about people that I'm going to say, because automatically then once we know that our people are all aligned, businesses start thriving. We are quite confident of getting that to happen.

Krishnakumar Srinivasan: Yeah, it's a very interesting question. From my standpoint, at least from the standpoint of the management, I can tell you that we have four or five clear parameters based on which we say that it has been successful. I already say that it is successful because the integration of the teams have happened well, teams are working together quite well. There's a good collaboration. There's a good amount of culture that is getting developed across all the companies that we have done M&A. Almost all of them we are trying to build in the same kind of culture in terms of how we work. It's going to be more about people that I'm going to say, because automatically then once we know that our people are all aligned, businesses start thriving. We are quite confident of getting that to happen.

Speaker #2: I already said that it is successful because the integration of the teams has happened well. Teams are working together quite well. There’s good collaboration.

Speaker #2: There's a good amount of culture that is getting, you know, developed across all the companies where we have done M&A. Almost all of them have, you know, we are trying to build in the same kind of culture in terms of how we work.

Speaker #2: And you know, it's going to be more about people, and I'm going to say that because, automatically, once we know that our people are all aligned, businesses start thriving.

Speaker #2: So we are quite confident of getting that to happen. We provide a very, very professional management, and that really helps everybody to grow within the umbrella of SPR.

Krishna Srinivasan: We provide a very professional management, that really helps everybody to grow within the umbrella of SPR.

Krishnakumar Srinivasan: We provide a very professional management, that really helps everybody to grow within the umbrella of SPR.

Speaker #3: Okay so thanks a lot.

Ajay Omprakash Ahuja: Okay, sir. Thanks a lot.

Speaker #2: Thanks Ajay ji. Thanks.

Krishna Srinivasan: Thanks, Ajay ji. Thanks.

Krishnakumar Srinivasan: Thanks, Ajay ji. Thanks.

Speaker #1: Thank you very much. We will take that as the last question and conclude the question-and-answer session. I would now like to hand the conference over to Mr. Krishnakumar for closing comments.

Moderator: Thank you very much. We take that as the last question and conclude the question and answer session. I would now like to hand the conference over to Mr. Krishna Srinivasan for closing comments.

Speaker #2: You know, I know we have overshot the time. I know that some of the people have also not been able to complete all their questions.

Krishna Srinivasan: I know we have overshot the time. I know that some of the people have also not been able to complete all their questions. I'd really request all of you to reach out to our secretarial department so that we can answer back one on one. Please do not feel otherwise that we have not been able to take all the questions because time-wise, we were limited. We have already overshot by almost 15 minutes, very happy to see the amount of questions that we have had and the kind of questions that we have had, which really talks about how deeply people are really analyzing the company. That gives us a lot of confidence that we have great stakeholders who are supporting the business to actually grow. We thank you once again for all that support that you are giving us.

Krishnakumar Srinivasan: I know we have overshot the time. I know that some of the people have also not been able to complete all their questions. I'd really request all of you to reach out to our secretarial department so that we can answer back one on one. Please do not feel otherwise that we have not been able to take all the questions because time-wise, we were limited. We have already overshot by almost 15 minutes, very happy to see the amount of questions that we have had and the kind of questions that we have had, which really talks about how deeply people are really analyzing the company. That gives us a lot of confidence that we have great stakeholders who are supporting the business to actually grow. We thank you once again for all that support that you are giving us.

Speaker #2: I'd really request all of you to reach out to our Secretarial Department so that we can answer back one-on-one. And please do not feel otherwise that we have not been able to take all the questions, because time-wise we were limited.

Speaker #2: We have already shot by over overshot by almost fifteen minutes. But I'm very happy to see the amount of questions that we have had and the kind of questions that we have had which is really which really talks about how deeply people are really analyzing the the company.

Speaker #2: And that gives us a lot of confidence that we have great stakeholders who are supporting the business to actually grow. We thank you once again for all the support that you are giving us.

Speaker #2: And thank you for joining us today and for asking such valuable questions. We hope that all your queries will get answered, even if some of them have not been answered so far.

Krishna Srinivasan: Thank you for joining us today and for asking such valuable questions. We hope that all your queries will get answered, even if some of them have not been answered so far. You can reach out and we'll answer it back. Thank you once again for the secretarial cell and the investor relationship partners at Ernst & Young who have given the full support. Thank you once again for everybody who have joined the call. Thanks. Thanks a lot.

Krishnakumar Srinivasan: Thank you for joining us today and for asking such valuable questions. We hope that all your queries will get answered, even if some of them have not been answered so far. You can reach out and we'll answer it back. Thank you once again for the secretarial cell and the investor relationship partners at Ernst & Young who have given the full support. Thank you once again for everybody who have joined the call. Thanks. Thanks a lot.

Speaker #2: You can reach out and we'll answer it back. And thank you once again to the, you know, secretarial cell and the investor relationship partners at Ernst & Young for giving their full support.

Speaker #2: Thank you once again to everybody who joined the call. And thanks—a lot.

Moderator: On behalf of SPR Auto Technologies Limited, that concludes this conference. Thank you for joining us, you may now disconnect your lines.

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Q1 2027 SPR Auto Technologies Ltd Earnings Call

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