Q1 2027 Samvardhana Motherson International Ltd Earnings Call

August 6, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Q1 FY27 results conference call hosted by Samvardhana Motherson International Limited. 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.

Operator: Ladies and gentlemen, good day, and welcome to the Q1 FY27 Results Conference Call hosted by Samvardhana Motherson International Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Mr. Laksh Vaaman Sehgal from Motherson. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day. Welcome to the Q1 FY 2027 Results Conference Call hosted by Samvardhana Motherson International Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Mr. Laksh Vaaman Sehgal from Motherson. Thank you, and over to you, sir.

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

Speaker #1: I now have the conference over to Mr. Laksh Sehgal from Motherson. Thank you and over to you, sir.

Speaker #2: Thank you. And good evening, everyone. And thank you for joining us for the Q1 FY27 release call of Samvardhana Motherson International Limited. We are pleased to report the highest ever quarterly revenue in Q1 FY27 driven by robust performance across our businesses.

Laksh Vaaman Sehgal: Thank you, and good evening, everyone. Thank you for joining us for the Q1 FY27 earnings call of Samvardhana Motherson International Limited. We are pleased to report the highest-ever quarterly revenue in Q1 FY27, driven by robust performance across our businesses. Revenue grew by 17% year on year and 3% sequentially during the quarter. It is worth noting that historically, Q1 has always seen a sequential decline in revenue over Q4. This year, however, Q1 revenues came in higher than Q4 FY26, underscoring the strength of the momentum across our businesses. The growth was driven by healthy performance across all our core businesses, as well as our emerging businesses, particularly those built using our D.E.M.A.L. capabilities, mainly consumer electronics and aerospace. Within wire harness, there was strong momentum in India, combined with a recovery in the North American commercial vehicle business, which drove 31% year on year revenue growth.

Laksh Vaaman Sehgal: Thank you, and good evening, everyone. Thank you for joining us for the Q1 FY 2027 earnings call of Samvardhana Motherson International Limited. We are pleased to report the highest-ever quarterly revenue in Q1 FY 2027, driven by robust performance across our businesses. Revenue grew by 17% year on year and 3% sequentially during the quarter. It is worth noting that historically, Q1 has always seen a sequential decline in revenue over Q4. This year, however, Q1 revenues came in higher than Q4 FY 2026, underscoring the strength of the momentum across our businesses. The growth was driven by healthy performance across all our core businesses, as well as our emerging businesses, particularly those built using our D.E.M.A.L. capabilities, mainly consumer electronics and aerospace. Within wire harness, there was strong momentum in India, combined with a recovery in the North American commercial vehicle business, which drove 31% year on year revenue growth.

Speaker #2: Revenue grew by 17% year on year and 3% sequentially during the quarter. It is worth noting that historically Q1 has always seen a sequential decline in revenue over Q4.

Speaker #2: Q1 revenues came in higher this year than in Q4 FY26, underscoring the strength of the momentum across our businesses. The growth was driven by healthy performance across all our core businesses as well as our emerging businesses, particularly those built using our demo capabilities.

Speaker #2: Namely, consumer electronics and aerospace. Within Wire Harness, there was strong momentum in India, combined with a recovery in the North American commercial vehicle business, which drove 31% year-on-year revenue growth.

Speaker #2: The modules and polymer vision systems as well as integrated assembly services grew in line with the industry. Our consumer electronics business continues to scale meaningfully.

Laksh Vaaman Sehgal: The modules and polymer vision systems, as well as integrated assembly businesses, grew in line with the industry. Our consumer electronics business continues to scale meaningfully. The third facility remains on track for commissioning in Q3 FY27 and will bring added upstream integration capabilities. CapEx for this third facility is expected to be approximately INR 65 billion, spread over a period of three years, building manufacturing capacity of 40 million units annually at full scale. Our aerospace business delivered revenue growth of over 20% year on year, while the order book grew by more than 17% since FY26 end, giving us strong visibility on future growth. EBITA grew by 26% during the quarter, ahead of revenue growth, with EBITA margins improving by 60 basis points year on year.

Laksh Vaaman Sehgal: The modules and polymer vision systems, as well as integrated assembly businesses, grew in line with the industry. Our consumer electronics business continues to scale meaningfully. The third facility remains on track for commissioning in Q3 FY 2027 and will bring added upstream integration capabilities. CapEx for this third facility is expected to be approximately INR 65 billion, spread over a period of three years, building manufacturing capacity of 40 million units annually at full scale. Our aerospace business delivered revenue growth of over 20% year on year, while the order book grew by more than 17% since FY26 end, giving us strong visibility on future growth. EBITA grew by 26% during the quarter, ahead of revenue growth, with EBITA margins improving by 60 basis points year on year.

Speaker #2: The third facility remains on track for commissioning in the third quarter of FY27 and will bring added upstream integration capabilities. Capex for this third facility is expected to be approximately $6.5 billion, spread over a period of three years, building manufacturing capacity of 40 million units annually at full scale.

Speaker #2: Our aerospace business delivered revenue growth of over 20% year on year, while the order book grew by more than 17% since FY26 end, giving a strong visibility on future growth.

Speaker #2: EBITDA grew by 26% during the quarter, ahead of revenue growth with EBITDA margin improving by 60 basis points year on year. This improvement was primarily driven by the modules and polymer business, wherein the restructuring initiatives undertaken over the last 1.5 years to breathe with the market helped absorb input cost inflation and deliver year-on-year margin improvement.

Laksh Vaaman Sehgal: This improvement was primarily driven by the modules and polymer business, wherein the restructuring initiatives undertaken over the last 1.5 years to breathe with the market helped absorb input cost inflation and deliver year on year margin improvement. Normalized PAT grew by 55% in Q1 FY27, driven by the scale-up across our businesses. There were no one-off items impacting PAT this quarter. Adjusted for the normalization in the base quarter, the Q1 FY27 PAT grew 102% on the quarter basis. These results were delivered against a genuinely tough external business environment, which makes this performance all the more meaningful. Globally, the light vehicle market and industry de-grew by 1.8% year on year during the quarter, led by weaknesses in China, the largest automotive market, which de-grew by 3.1%. South Asia, led by India, was a clear bright spot and continued to see strong growth.

Laksh Vaaman Sehgal: This improvement was primarily driven by the modules and polymer business, wherein the restructuring initiatives undertaken over the last 1.5 years to breathe with the market helped absorb input cost inflation and deliver year on year margin improvement. Normalized PAT grew by 55% in Q1 FY 2027, driven by the scale-up across our businesses. There were no one-off items impacting PAT this quarter. Adjusted for the normalization in the base quarter, the Q1 FY 2027 PAT grew 102% on the quarter basis. These results were delivered against a genuinely tough external business environment, which makes this performance all the more meaningful. Globally, the light vehicle market and industry de-grew by 1.8% year on year during the quarter, led by weaknesses in China, the largest automotive market, which de-grew by 3.1%. South Asia, led by India, was a clear bright spot and continued to see strong growth.

Speaker #2: Normalized PAC grew by 55% in the first quarter of FY27, driven by the scale-up across our businesses. There was no one-off items impacting PAC this quarter.

Speaker #2: Adjusted for the normalization in the base quarter, the Q1 FY27 PAC grew 102% on reported basis, these results were delivered against a genuinely tough external business environment, which makes this performance all the more meaningful.

Speaker #2: Globally, the light vehicle market and industry degrew by 1.8% year-on-year during the quarter, led by weaknesses in China, the largest automotive market, which degrew by 3.1%.

Speaker #2: South Asia, led by India, was a clear bright spot and continued to see strong growth. Planned ed European OEM launches are expected to support industry growth in the quarters and years ahead.

Laksh Vaaman Sehgal: Planned European OEM launches are expected to support industry growth in the quarters and years ahead. On the commercial vehicle side, a recovery in North American markets helped sustain the CV industry's growth momentum, which is estimated to have grown 5.4% year on year. The outlook for the CV industry remains favorable through FY 2027. That said, certain developments did weigh on the business during the quarter. Copper prices continued to rise up 4% sequentially, following increases of 13% and 16% sequentially in Q3 of FY 2026 and Q4 of FY 2026 respectively. On a year on year basis, copper prices are now up 40%, creating near-term input cost pressures, as these costs are typically passed on to the customers with a lag of one or two quarters. Geopolitically driven crude price inflation also pushed polymer prices in Germany up by 55% year on year and 66% sequentially.

Speaker #2: On the commercial vehicle side, a recovery in North American market helped sustain the CV industry's growth momentum, which is estimated to have grown 5.4% year on year.

Speaker #2: The outlook for the CV industry remains favorable through FY27. That said, certain developments did weigh on the business during the quarter. Copper prices continued to rise up 4% sequentially, following increases of 13% and 16% sequentially in the third quarter of FY26 and the fourth quarter of FY26 respectively.

Speaker #2: On the year-on-year basis, copper prices are now up 40%, creating near-term input cost pressures as these costs are typically passed on to the customers with a lag of one or two quarters.

Speaker #2: Geopolitically driven, crude price inflation also pushed polymer prices in Germany up by 55% year-on-year and 66% sequentially. This primarily affected INPP and vision system divisions, nonetheless both divisions held flat to improving margins aided by ongoing cost optimization initiatives.

Laksh Vaaman Sehgal: This primarily affected IMPP and vision system divisions. Nonetheless, both divisions held flat to improving margins, aided by ongoing cost optimization initiatives. We continue to work with our customers to pass on these higher input costs. Freight costs were similarly affected, with the World Container Index up 40% year on year and 83% sequentially. In certain instances, we incurred additional costs to ensure timely delivery to our customers. Detailed business performance and the underlying drivers of revenue profitability are covered on slides 15 to 18 of the presentation. With that, I will now hand over to our CFO, Gandharv, to take you through the key highlights on capital allocation, our balance sheet, and recent M&A activity. Gandharv?

Speaker #2: We continue to work with our customers to pass on these higher input costs. Trade costs were similarly affected, with the World Container Index up 40% year-on-year and 83% sequentially.

Speaker #2: In certain instances, we incurred additional costs to ensure timely delivery to our customers. Detailed divisional performance and the underlying drivers of revenue profitability are covered on slides 15 to 18 of the presentation.

Speaker #2: With that, I will now hand over to our CFO, Gandharv, to take you through the key highlights on capital allocation, our balance sheet, and recent M&A activity.

Speaker #2: Gandharv.

Speaker #3: Thank you, Varman. We continue to invest heavily in Capex during the quarter to build future revenue streams. We spent $1,614 on Capex in the first quarter, in line with our four-year guidance of $6,000 plus minus 10%.

Gandharv Tongia: Thank you, Vaman. We continued to invest heavily in CapEx during the quarter to build future revenue streams. We spent INR 1,614 crores on CapEx in Q1, in line with our full year guidance of INR 6,000 crores, plus or minus 10%. This represented 52% of the quarter's EBITDA invested across growth, backward integration, and maintenance CapEx, and should support both business expansion and margin improvement going forward. Three plants were operationalized during the quarter, and we currently have 13 facilities at various stages of development, of which 10 are expected to become operational during the course of this year. Despite this continued investment in growth, we further improved our leverage position. Our leverage ratio is now at an all-time low of 0.8x, well within our financial policy ceiling of 2.5x and our internal aspiration of staying below 1.5x.

Speaker #3: This represented 52% of the quarter's EBITDA, invested across growth, record integration, and maintenance Capex, and should support both business expansion and margin improvement going forward.

Speaker #3: Three plans were operationalized during the quarter. And we currently have 13 facilities at various stages of development, of which 10 are expected to become operational during the course of this year.

Speaker #3: Despite this continued investment in growth, we further improved our leverage position. Our leverage ratio is now at an all-time low of 0.8x times well within our financial policy ceiling of 2.5x, and our internal aspiration of staying below 1.5x.

Speaker #3: This reflects the financial discipline we continue to maintain across the organization. We also made further progress on the inorganic growth front during the quarter.

Gandharv Tongia: This reflects the financial discipline we continue to maintain across the organization. We also made further progress on the inorganic growth front during the quarter. We announced the acquisition of Shenzhen AutoCruise, a company primarily engaged in interior and exterior digital vision and monitoring systems. This acquisition broadens Motherson's technology offerings and competitiveness in interior and exterior digital vision systems and strengthens our position in next-generation mobility. Key products include camera monitoring system, full display mirrors, 360-degree around view monitoring system, driver monitoring system, and dash cams with video recording. We also completed the acquisition of Nexans AutoElectric and Yutaka Giken in July. The Nexans AutoElectric acquisition increases our addressable market through the addition of passenger vehicle and commercial vehicle wiring harness capabilities globally, improves our relationship with large OEMs, and opens up cross-selling possibilities.

Speaker #3: We announced the acquisition of Shenzhen Auto Crews a company primarily engaged in interior and exterior digital vision and monitoring systems. This acquisition broadens Motherson's technology offering and digital vision systems and strengthens our position in next-generation mobility.

Speaker #3: Key products include camera monitoring system, full-display mirrors, 360-degree around-view monitoring system, driver monitoring system, and dashcam with video recording. We also completed the acquisition of Nexus Auto Electric, a New Tata Gaican in July.

Speaker #3: The Nexus Auto Electric acquisition increases our addressable market through the addition of passenger vehicle and commercial vehicle wiring harness capabilities globally improves our relationship with large OEMs and opens up cross-selling possibilities.

Speaker #3: Key products include PV and CV wiring harness, specialty harness, safety components, and body harness. Utah Gaican marks our third acquisition of a Honda Sound Link asset.

Gandharv Tongia: Key products include PV and CV wiring harness, specialty harness, safety components, and body harness. Yutaka Giken marks our third acquisition of a Honda-san linked asset. It will be housed under a new vertical within our emerging businesses called Vehicle Systems, with a product range spanning exhaust systems, brake systems, and others. This acquisition expands our product portfolio and unlocks new growth opportunities for the company. Overall, this was a very good quarter for the company. We remain very positive on the company's growth prospects through increasing content per vehicle, deepening relationships with our OEM partners, and serving new opportunities across powertrains. We will continue to leverage our thermal capabilities to scale up our non-automotive businesses. As always, our focus remains on financial prudence. Thank you. We will now open the floor for questions.

Speaker #3: It will be housed under a new vertical within our emerging businesses called Vehicle Systems, with a product range spanning exhaust system, brake systems, and others.

Speaker #3: This acquisition expands our product portfolio and unlocks new growth opportunities for the company. Overall, this was a very good quarter for the company. We remain very positive on the company's growth prospects.

Speaker #3: Through increasing content per vehicle, deepening relationships with our OEM partners, and serving new opportunities across powertrains. We will continue to leverage our demo capabilities to scale up our non-automotive businesses.

Speaker #3: As always, our focus remains on financial progress. Thank you and we will now open the floor for questions.

Speaker #1: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on your touchstone telephone.

Operator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Vinay Singh with Morgan Stanley. Please go ahead.

Speaker #1: If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes in the line of Vinay Singh with Morgan Stanley.

Speaker #1: Please go ahead.

Speaker #4: Hi team. Thanks for the opportunity. Two questions are one on the existing business. We are adding two companies this quarter, Yucata and Exxon. Could you remind us again about the annualized run rate and the margin at these businesses are at?

Vinay Singh: Hi, team. Thanks for the opportunity. Two questions. One on the existing business. We are adding two companies this quarter, Yutaka and Nexans. Could you remind us again about the annualized run rate and the margin that these businesses are at? The second one on consumer electronics. The CapEx number that we've disclosed, as I understand, it's only for what Motherson will do, $65 billion. What is the full CapEx of this project? Is the other partner also bringing in capital? Any sort of trajectory on how to think about revenue potential from this 40 million annual capacity? That's it. Thanks.

Binay Singh: Hi, team. Thanks for the opportunity. Two questions. One on the existing business. We are adding two companies this quarter, Yutaka and Nexans. Could you remind us again about the annualized run rate and the margin that these businesses are at? The second one on consumer electronics. The CapEx number that we've disclosed, as I understand, it's only for what Motherson will do, $65 billion. What is the full CapEx of this project? Is the other partner also bringing in capital? Any sort of trajectory on how to think about revenue potential from this 40 million annual capacity? That's it. Thanks.

Speaker #4: And the second one on consumer electronics, the Capex number that we've disclosed, as I understand it's only for what Motherson will do, 65 billion.

Speaker #4: What is the full Capex of this project? Is the other partner also bringing in capital? And any sort of trajectory on how to think about revenue potential from this 40 million annual capacity?

Speaker #4: That's it. Thanks.

Gandharv Tongia: Vaman, you can take the first one on the sales and what we have disclosed for the acquisitions on Nexans. I'll take the consumer electronics one. Sure. Thanks, Vinay, for your question. Both of these businesses put together, Yutaka and Nexans, should contribute almost close to $2 billion to our top line on an annualized basis. Over the midterm, the margin profile should broadly reflect the comparable margins in this particular industry. As you know, in general, our aspiration is that all of our businesses, whether the recently acquired businesses or the existing businesses, should meet our internal expectation of 40% growth. We believe that over the period, all the acquisitions should contribute and move in that direction. On the second part of the question, as Vaman mentioned, I'll probably defer it to him. Vaman, over to you. Yeah, thanks, Vivek.

Laksh Vaaman Sehgal: Vaman, you can take the first one on the sales and what we have disclosed for the acquisitions on Nexans. I'll take the consumer electronics one.

Speaker #3: Gandharv, you can take the first one on the sales and what we have disclosed for the acquisitions on Nexus, and I'll take the consumer electronics one.

Speaker #2: Sure. Thanks, Vinay, for your question. Both of these businesses put together, Utah and Nexus, should contribute almost close to 2 billion dollar of to our top line on annualized basis.

Gandharv Tongia: Sure. Thanks, Vinay, for your question. Both of these businesses put together, Yutaka and Nexans, should contribute almost close to $2 billion to our top line on an annualized basis. Over the midterm, the margin profile should broadly reflect the comparable margins in this particular industry. As you know, in general, our aspiration is that all of our businesses, whether the recently acquired businesses or the existing businesses, should meet our internal expectation of 40% growth. We believe that over the period, all the acquisitions should contribute and move in that direction. On the second part of the question, as Vaman mentioned, I'll probably defer it to him. Vaman, over to you.

Speaker #2: Over the midterm, the margin profile should broadly reflect the comparable margins in this particular industry. And as you know, in general, our aspiration is that all of our businesses, whether the recently acquired businesses or the existing businesses, should meet our internal expectation of 40% growth.

Speaker #2: And we believe that over the period, all the acquisitions should contribute and move in that the second part of the question, as Bhavan mentioned, I'll probably defer it to him.

Speaker #2: Bhavan, over to you.

Speaker #3: Yeah, thank you for the consumer electronics business. I'll join Venture Partner does have 10%, so they are bringing 10% of their equity. They do have an opportunity to go up to 49%.

Laksh Vaaman Sehgal: Yeah, thanks, Vivek. For the consumer electronics business, our joint venture partner does have 10%, so they are bringing 10% of their equity. They do have an opportunity to go up to 49%, but at the moment they are holding at that 10%. We are funding 90% of the equity. The complete, I think, CapEx requirement will be finished in this year and it will ramp. We are very close to, of course, the facility is fully ready. We will have a formal inauguration in a couple of months as well for that facility, which will be the largest facility in Motherson. A historic moment for us. The size and scale of that facility is supposed to hopefully open that will come. I request for another two quarters for you to really see the impact of that and what sort of revenue run rate that will come to.

Laksh Vaaman Sehgal: For the consumer electronics business, our joint venture partner does have 10%, so they are bringing 10% of their equity. They do have an opportunity to go up to 49%, but at the moment they are holding at that 10%. We are funding 90% of the equity. The complete, I think, CapEx requirement will be finished in this year and it will ramp. We are very close to, of course, the facility is fully ready. We will have a formal inauguration in a couple of months as well for that facility, which will be the largest facility in Motherson. A historic moment for us. The size and scale of that facility is supposed to hopefully open that will come. I request for another two quarters for you to really see the impact of that and what sort of revenue run rate that will come to.

Speaker #3: But at the moment, they're holding at that 10%. So we are funding 90% of the equity. The complete I think Capex requirement will be finished in this year, and it will ramp very close to, of course, the facilities fully ready.

Speaker #3: We will have a formal inauguration in a couple of months as well. For that facility, we should be the largest facility in Motherson. So, a historic moment for us; the size and scale of that facility is, hopefully, in line with many more that will come.

Speaker #3: And I request for another two quarters for you to really see the impact of that. And what sort of revenue run rate that will come to.

Speaker #3: It does ramp much faster unlike the automotive business, which ramps at the customer program launches and it takes about two years, years, two years to really get to the height of the program.

Gandharv Tongia: It does ramp much faster.

Laksh Vaaman Sehgal: It does ramp much faster. Unlike the automotive business, which ramps as the customer program launches and it takes about two years to really get to the height of the program. Here you will see a much faster launch that will happen in the next couple of months. These orders are also currently in negotiation. As you can imagine, the consumer electronics does not have such long order tails. It happens more in the same year itself. All that is happening as we speak, and I think you will see that impact in the next couple of quarters as these plants launch. There could be a quarter here and there, but like I said, we are really excited in the next two quarters. This will launch in a very meaningful way.

Gandharv Tongia: Unlike the automotive business, which ramps as the customer program launches and it takes about two years to really get to the height of the program. Here you will see a much faster launch that will happen in the next couple of months. These orders are also currently in negotiation. As you can imagine, the consumer electronics does not have such long order tails. It happens more in the same year itself. All that is happening as we speak, and I think you will see that impact in the next couple of quarters as these plants launch. There could be a quarter here and there, but like I said, we are really excited in the next two quarters. This will launch in a very meaningful way.

Speaker #3: Here you see a much faster launch that will happen in the next couple of months. These orders are also currently in negotiation, as you can imagine, their consumer electronics does not have such large such long order tails.

Speaker #3: It happens more in the same year itself. So all that is happening, as we speak, and I think you will see that impact in the next couple of quarters as these plans launch.

Speaker #3: There could be a quarter here and there, but like I said, we're pretty excited about the next two quarters. This will launch in a very meaningful way.

Speaker #4: Thanks, team. Thanks on that. Just one follow-up on the first question. So even Nexon and wiring harness, is it now closer to our bidder margin of 11% or so?

Vinay Singh: Thanks, team. Thanks on that. Just one follow-up on the first question. Even Nexans and wiring harness, is it now closer to our EBITDA margin of 11% or so?

Binay Singh: Thanks, team. Thanks on that. Just one follow-up on the first question. Even Nexans and wiring harness, is it now closer to our EBITDA margin of 11% or so?

Speaker #2: See, as of now, not necessarily all of the newly acquired businesses are meeting the comparable industry benchmark. But, as we have done in several of these acquisitions over time, the objective is to transform them, and we believe that the new acquisitions, including Nexus and Utah, should be able to be transformed over the period.

Gandharv Tongia: See, as of now, not necessarily the newly acquired businesses are meeting the comparable industry benchmark. But as we have done in several of these acquisitions over the period, the objective is to transform, and we believe that these acquisitions, including Nexans and Yutaka, we should be able to transform over the period and improve their margin profile in times to come.

Speaker #2: And improve their margin profile in times to come.

Speaker #4: Great, great. Thanks.

Vinay Singh: Great. Thanks.

Binay Singh: Great. Thanks.

Speaker #3: Yeah, to add on, yeah, just to add on that, look, I think these are meaningful and strategic acquisitions for us. The size and scale of our wire harness is, of course, much larger than what we have acquired from Nexon.

Laksh Vaaman Sehgal: Just to add on that, I think these are meaningful and strategic acquisitions for us. The size and scale of our wire harness footprint is, of course, much larger than what we have acquired from Nexans. We are very much excited about the possibilities of clubbing together our purchasing and driving synergies together, which we have done, if you have seen how we did with MWSI, PKC. I'm sure the wire harness team is extremely excited about this opportunity. Yutaka brings in completely new products for us, and so it perhaps will take slightly longer as we get more comfortable and understand how to drive more synergies with this. Again, opening up new customers, opening up new locations for this business and bringing in vital capability to increase our product portfolio that we can bring to all the other customers as well.

Speaker #3: So we are very much excited about the possibilities of clubbing together our purchasing and driving synergies together, which we have done, which we have seen with how we did with MWSI, PKC, so I'm sure that their wire harness team is extremely excited about this opportunity.

Speaker #3: Utah brings in completely new products for us, so it perhaps will take slightly longer as we get more comfortable and understand how to drive more synergies with this.

Speaker #3: But again, opening up new customers, opening up new locations, for this business and bringing in vital capability to increase our product portfolio that we can bring to all the other customers as well.

Speaker #3: Of course, that takes a little bit of time, but that should grow up nicely. So we're very excited about these two acquisitions.

Laksh Vaaman Sehgal: Of course, that takes a little bit of time, but that should grow up nicely. We're very excited about these two acquisitions.

Speaker #4: Great. Thanks, team. Thanks for that. I'll come back in a few. Thank you. The next question comes on the line of Gunjan, Priyathmi, with Bank of America.

Vinay Singh: Great. Thanks, team. Thanks for that. I will come back in the queue.

Binay Singh: Great. Thanks, team. Thanks for that. I will come back in the queue.

Operator: Thank you. The next question comes from the line of Gunjan Prithyani with Bank of America. Please go ahead.

Speaker #4: Please go ahead.

Speaker #5: Yeah, hi. Thanks for taking my questions. Just a quick follow-up again on the consumer electronics bit. Looking for a bit more clarity, there was this 26 billion that you had called out earlier in terms of investment.

Gunjan Prithyani: Yeah. Hi. Thanks for taking my questions. Just a quick follow-up again on the consumer electronics bit. Looking for a bit more clarity. There was this INR 26 billion that you had called out earlier in terms of investment. In this INR 40 billion, the INR 65 billion is on top of that. Just trying to understand the cumulative business is INR 65 plus INR 26. The INR 26 is already done. Is that fair to assume? What would be the cumulative units that you have called out 40 million for third plant? Is there a cumulative number for the business that you can share on the consumer electronics?

Speaker #5: So in this 40 billion the 65 billion is on top of that. So just trying to understand the cumulative business is 65 plus 26.

Speaker #5: The 26 is already done. Is that fair to assume? And what would be the cumulative units that you've called out, 40 million for third plant, is there a cumulative number for the business that you can share on the consumer electronics?

Speaker #3: Bhavan, do you want me to clarify that?

Gandharv Tongia: Vaman, you want me to clarify that?

Laksh Vaaman Sehgal: Yeah, please. Please clarify that. I'll add on.

Speaker #4: Yeah, please, Surasha. I'll add on.

Speaker #3: Sure. So thanks a lot for your question. The overall Capex, including what we have already incurred in this facility, including GF1, GF2, and GF3, should be around seven and a half thousand crore rupees.

Gandharv Tongia: Sure. Thanks a lot for your question. The overall CapEx, including what we have already incurred in this facility, including GF1, GF2, and GF3, should be around INR 7,500 crore. As of now, we have more or less incurred one-third of it, one-third of INR 7,500 crore, and balance is expected to be incurred in the next 2 to 3 years. As far as the third plant capacity is concerned, it should be around 40 million units annually at full capacity, and this will be achieved over the period. As Vaman mentioned in the response to the first question, we are trying our level best to commission this facility later in the current calendar year. I hope I have clarified, but happy to attend your follow-up questions.

Speaker #3: As of now, we have more or less incurred one third of it, one third of seven and a half thousand crore rupees, and balance is expected to be incurred between in the next two to three years.

Speaker #3: As far as the third plant capacity is concerned, it should be around 40 million units annually at full capacity. And this will be achieved over the period.

Speaker #3: And as Bhavan mentioned in the response to the first question, we are trying our level best to commission this facility later in the current calendar year.

Speaker #3: I hope I have clarified, but happy to attend your follow-up questions.

Speaker #5: Okay, no, that's helpful. And the second question that I had was on the margins. There's a fair bit of benefit that we are getting from the restructuring program or optimization program.

Gunjan Prithyani: Okay, that's helpful. The second question that I had was on the margins. There's a fair bit of benefit that we are getting from the restructuring program or optimization program. Is there a way you can give us some sense of what was the commodity or metal, all these pressures that you're seeing, what was that headwind in this quarter and the offset that we saw from the restructuring program, and is there a way that we can think through more pressure in Q2? Is there more to come through in terms of the headwind on the RM side? Some color on that margin, and if you can focus a bit more on the modules, because that's where the restructuring bit was.

Speaker #5: Is there a way you can give us some sense of what was the commodity or metal? I mean, with all these pressures that you're seeing, what was that headwind in this quarter?

Speaker #5: And the offset that we saw from the restructuring program—how do we think, is there a way that we can think through more pressure in Q2?

Speaker #5: Is there more to come through in terms of the headwind on the RM side? So some color on that margin if you can focus a bit more on the modules because that's where the restructuring bit was.

Speaker #3: Sure. I'll see how I can add that. Look, the restructuring on the European footprint was, if you look at it for what we've been saying for the last two years, we've acquired a lot of businesses as well.

Laksh Vaaman Sehgal: Sure. I'll see how I can help that. Look, the restructuring on the European footprint is, if you look at it from what we've been saying for the last few years, we've acquired a lot of businesses as well, a lot of businesses the customer requested us to look into. We actually added a lot of footprint in Europe with the acquisitions that we had done. The restructuring was done to keep in line with these new facilities that we had also acquired. Of course, some of the distressed assets in these facilities were not running at full capacity, so to speak, because the EVs did not come out as expected by a lot of these suppliers who had invested heavily.

Speaker #3: A lot of businesses the customer requested us to look into. So we actually added a lot of footprint in Europe with the acquisitions that we had done.

Speaker #3: The restructuring was done. So that to keep in mind with these new facilities that we had also acquired. And of course, some of the distressed assets in this facility were not running in at full capacity, so to speak, because the EVs did not come out as expected by a lot of these suppliers who had invested heavily.

Speaker #3: So restructuring the footprint required that we be able to drive some of these units that were not driving at that were not producing at full capacity to merge them, combine them, and also, of course, trim some headcount at these locations and focus and combine more locations together so that the locations are now able to sustain and add decent capacity levels with headroom for future growth as we do believe that the new programs with the customers are now launching.

Laksh Vaaman Sehgal: Restructuring the footprint required that we were able to drive some of these units that were not driving, that were not producing at full capacity, to merge them, combine them, and also, of course, trim some headcount at these locations and focus and combine more locations together so that the locations are now able to sustain and at decent capacity levels with headroom for future growth, as we do believe that the new programs which the customers are now launching, the new generation of EVs, definitely have a much better response from the customers. It's evident that the first two programs didn't perform as expected. This headcount restructuring in tune with the market as our customers were also rebalancing their lines.

Speaker #3: The new state of EVs definitely have a much better response from the customers and it's evident that the earthwell runs didn't perform as expected.

Speaker #3: So this headcount restructuring is in tune with the market, as our customers were also rebalancing their lines. You saw a lot of news coming from the general OEMs that they were also reducing. It was done in line with that.

Laksh Vaaman Sehgal: You saw a lot of news coming from the general OEMs that they were also reducing was done in line with that and to make our footprint more optimized. Right now we believe, of course, that it is at a decent level. Of course, there are new programs that are still coming. Customers are still asking us to do more acquisitions. We're constantly looking at balancing this whole thing up. There is also an opportunity perhaps to do more in this financial year, which we are focusing on to try to be the most efficient producer. Of course, the commodity pressures which are happening, those are negotiations that we continue to have with the customers which are out of our control. We try to get, of course, compensation, if it goes either which way.

Speaker #3: And to make our footprint more optimized. Right now, we believe, of course, that it is at a decent level. Of course, there are new programs that are still coming.

Speaker #3: Customers are still asking us to do more acquisitions. We're constantly looking at balancing this whole thing. There is also an opportunity, perhaps, to do more in this financial year, and we are focusing on trying to be the most efficient producer.

Speaker #3: But of course, the commodity pressures that are happening—those are negotiations that we continue to have with the customers, which are out of our control.

Speaker #3: And we try to get of course, compensation if it goes either which way. And of course, the last couple of quarters, it's only been going in a negative manner.

Laksh Vaaman Sehgal: Of course, in the last couple of quarters, it's only been going in a negative manner. There is a lag for us to be able to go and claim that. I think the reduction in the headcount and the optimization of the footprint, you're seeing those benefits which are meaningful, that even with such high impacts of the commodity prices and logistics for all the issues that are happening in the world, that we've been able to maintain and, of course, improve some of our performance in the margin. Again, as a company, we're not really focused on just the EBITDA margins. We believe that the whole program should deliver 40% ROCE. That takes time. Of course, margins have a contribution to that. We are tracking it. Overall, the idea is to have an extremely efficient footprint in the region.

Speaker #3: So, there is a lag for us to be able to go and claim that. But I think with the reduction in the headcount and the optimization of the footprint, are you seeing those benefits which are meaningful? Even with such high impacts of the commodity prices and logistics— for all the issues that are happening in the world— we've been able to maintain and, of course, improve some of our performance in the margins.

Speaker #3: And again, as a company, we're not really focused on just the beta margins. We believe that the whole program should deliver 40% grosses. That takes time.

Speaker #3: So of course, margins have a contribution to that. So we are tracking it. But overall, the idea is to have a extremely efficient footprint in the region.

Speaker #3: I mean, that is profitable. And then of course, get that the lost contribution for the margin pressures towards the end of the year when we see the entire volume play out of the customers of these programs.

Laksh Vaaman Sehgal: I mean, that is profitable. Then, of course, get back the lost contribution for the margin pressures towards the end of the year when we see the entire volume play out of the customers of these programs. I hope that was there. I mean, there's a tremendous amount of programs, customers, locations. To get into finer details of all of that only happens towards the end of the year as you go customer by customer, program by program. We're in the middle of a lot of launches that are happening right now as well. Really difficult to quantify it in Q1.

Speaker #3: I hope that was there. I mean, there's tremendous amount of programs, customers, locations, so to get into finer details of all of that only happens towards the end of the year as we go customer by customer program by program.

Speaker #3: And in the middle of a lot of launches that are happening right now as well. So really difficult to quantify it in the first quarter.

Speaker #5: Got it. That's pretty useful color. I mean, just to follow up, is there any way to break up the benefit that we have in terms of just to understand how much were we able to offset or maybe if you can give us a color on how much was the commodity impact RM impact in this quarter just to think through how do we think about the normalized margin?

Gunjan Prithyani: Got it. That's pretty useful color. I mean, just to follow up, is there any way to break up the benefit that we have in terms of just to understand how much were we able to offset? Or maybe if you can give us a color on how much was the commodity impact, RM impact in this quarter, just to think through how do we think about the normalized margin if there is a number

Speaker #5: If there is a number that you guys can share.

Laksh Vaaman Sehgal: Yeah

Gunjan Prithyani: that you guys can share.

Speaker #3: Ma'am, I would love to give you a number. The thing is that each customer has different grades of engineered plastics. So these do not move exactly in line with just how food prices move.

Laksh Vaaman Sehgal: Look, ma'am, I would love to give you a number. The thing is that each customers have different grades of engineered plastics. These do not move exactly in line with just how crude prices move. Some moves higher, some moves lower, some are fairly static. As you know, we're not making one product. It's not just a bumper. It's dashboards, door trims, claddings, mirrors. There's hundreds of different products that we are supplying. Each program is actually what we look at towards, again, the end of the year only with the whole year going through, because some quarters there might be lower pickup, that picks up later at a later quarter. We don't have that kind of a mechanism where we're doing it every month or something like that.

Speaker #3: Some moves higher, some moves lower. Some are fairly static. And as you know, we're not making one product. It's not just a bumper. It's dashboards, door trims, claddings.

Speaker #3: Mirrors. There are hundreds of different products that we are supplying. So each program is actually what we look at towards, again, the end of the year only with the whole year going through, because some quarters they might be lower pickup, but then that picks up later up into the quarter.

Speaker #3: So we don't have that kind of a mechanism where we're doing it every month or something like that. I think with the wire harness, the copper, that's a more direct one because it's a direct commodity.

Laksh Vaaman Sehgal: I think with the wire harness, the copper, that's a more direct one because it's a direct commodity, with the plastics and what you have in Europe, it's a lot more complicated, and the relationship is not exactly 1 is to 1. That happens only towards the end of the year. That's why you see most of our Q4s are the ones where we have the strongest kind of performance because all the nettings and all of that kind of happen in that quarter. The volume also is enough time for the customer to understand that it's a meaningful impact over the year, and we're not going back every single month for something like that.

Speaker #3: But with the plastics and what you have in Europe, it's a lot more complicated. And the relationship is not exactly one is to one.

Speaker #3: So that happens only towards the end of the year. That's why you see most of our Q4s are the ones where we have the strongest kind of performance because all the nettings and all of that kind of happen in that quarter.

Speaker #3: And the volume also is enough time for the customer to understand that it's a meaningful impact over the year and we're not going back every single month for something like that.

Speaker #3: Of course, if the impact is there's something that's really out of the extraordinary, like in terms of some of these logistics costs because of what happened in Strait of Hormuz and stuff like that, we look for immediate support on things like that.

Laksh Vaaman Sehgal: Of course, if the impact is something which is really out of the extraordinary, like in terms of some of the logistics costs because of what happened in Strait of Hormuz and stuff like that, we look for immediate support on things like that. Mostly these volume compensations and what happens on commodity price, it doesn't happen in every month or so. There is a little bit of lag in time that the customer needs and also some time for them to catch up on their models. We'd really be able to talk more about that in Q4 and what kind of numbers that kind of impacted. I think that will be the right time to discuss that.

Speaker #3: But mostly these volume compensations and what happens on commodity price happens it doesn't happen every month or so. Usually, there is a little bit of lag in time that the customer needs and also sometime for them to catch up on their models.

Speaker #3: So we'd really be able to talk more about that in Q4 and what kind of numbers that kind of impacted. I think that would be the right time to discuss that.

Speaker #3: I think what you should take heart is that look, even in probably one of the most difficult quarters in terms of fluctuation of commodity prices and logistics and what's happening in the world, we were able to hold margins, improve margins, which means that the other actions which we have taken to right size our operations, it has really worked and helped us in our favor.

Laksh Vaaman Sehgal: I think what you should take out is that, look, even in probably one of the most difficult quarters in terms of fluctuation of commodity prices and logistics and what's happening in the world, we were able to hold margins, improve margins, which means that the other actions which we have taken to rightsize our operations has really worked and helped us in our favor. Again, the customers really appreciating us because there are not so many strong suppliers with a strong balance sheet and performance like us. Hence we're also getting a lot more growth opportunities. We've just announced two more acquisitions, and our balance sheet again is one of the strongest points. I think we should really take a lot of strength from these kind of reportings that we are making that we are in good shape.

Speaker #3: And again, the customers really appreciating us because of their not so many strong suppliers with the strong balance sheet and performance like us. And hence, we're also getting a lot more growth opportunities and we've just announced two more acquisitions and our balance sheet is again on the strongest point.

Speaker #3: So I think you should really take a lot of strength from these kinds of reportings that we are making—that we're in good shape.

Speaker #5: Got it. No, that's really helpful. Best wishes. I'll join that too.

Gunjan Prithyani: Got it. No, that's really helpful. All best wishes. I'll join back with you.

Speaker #3: Thank you. Thank you.

Laksh Vaaman Sehgal: Thank you.

Speaker #2: Thank you. The next question comes from the line of Amin Therani with JP Morgan. Please go ahead.

Operator: Thank you. The next question comes from the line of Amyn Pirani with J.P. Morgan. Please go ahead.

Speaker #4: Yes, hi. Thanks for the opportunity. Two questions. One related to the quarter on wiring harness. Now, you mentioned that obviously copper prices went up and margins were impacted by the denominator effect and the pass-through.

Amyn Pirani: Yes, hi. Thanks for the opportunity. Two questions, one related to the quarter on wiring harness. You mentioned that obviously copper prices went up and margins were impacted by the denominator effect and the pass-through. If I look at the numbers, honestly, it doesn't look like there has been any impact. I just wonder how much higher the margins could have been, if the commodity was not there. Are there any, like you have spoken at length about the polymer, is there any structural cost changes, any mix changes which are helping the underlying margins for wiring harness? Because given the commodity and the copper inflation, a 30 basis points margin impact is at least in our view, not really anything material. What's going on there, if you could help us?

Speaker #4: But if I look at the numbers, honestly, it doesn't look like there has been any impact. And I just wonder how much higher the margins could have been if the commodity was not there.

Speaker #4: So are there any like you have spoken at length about the polymer, is there any structural cost changes, any mix changes which are helping the underlying margins for wiring harness?

Speaker #4: Because given the commodity and the copper inflation, a 30 basis point margin impact is at least in our view, not really anything material. So what's going on there if you could help us?

Speaker #3: Okay. So you want to take that and I can support because of the thunder or.

Laksh Vaaman Sehgal: Pankaj, you want to take that? I can support together with Kumud or

Speaker #6: No, I can explain that. So basically, while copper has gone up and there is an impact as we've explained that on our overall basis, we have a pass-through which is has a lag of three to six months.

Pankaj Mital: No, I can explain that. Basically, while copper has gone up, there is an impact, as we've explained that on an overall basis, we have a pass-through, which has a lag of three to six months. If you see quarter-on-quarter, there's a 4% impact if you look at a global thing. The impact has been very, very high in India because the impact is also having that currency factor with rupee depreciation. However, globally, if we look at it, the impact is not so much because, if we are in Europe, the impact has been in dollar terms, but in euro terms has been much less.

Speaker #6: And if you see quarter on quarter, there's a four-person impact. If you look at a global thing. So the impact has been very, very high in India.

Speaker #6: Because the impact is also having the currency factor with the rupee depreciation. However, globally, if you look at it, the impact is not so much because if we are in Europe, the impact has been in dollar terms, but in euro terms, has been much less.

Speaker #6: Secondly, an overall basis, some of the facilities globally, since we are in so many geographies and there are multiple businesses, some of them which were not doing so well in the first quarter of last year have done shape better.

Pankaj Mital: Secondly, on overall basis, some of the facilities globally, since we are in so many geographies and there are multiple businesses, some of them which were not doing so well in Q1 of last year have done or shaped better. The US market has also started to rise. That has also given us a very improved performance compared to the last year.

Speaker #6: And the US market has also started to rise. So that has also given us a very improved performance compared to the last year.

Speaker #4: Okay. Understood that.

Amyn Pirani: Okay. Understood.

Laksh Vaaman Sehgal: Pankaj, if I could add, I think this is a really fantastic performance by the wiring harness team. In the last few years, the China volumes significantly impacted. The US also was seeing slowdown. We really worked hard at, again, chipping away at the cost base that we have for these businesses. Now that those markets are coming back, I think you're seeing that the impact of what happened in India with the wage rate increases and the copper hitting harder here. Overall, it was fairly muted because of the diversification, the cost improvement actions taken by the teams. Really, we are really quite impressed with how hard the team has worked during these tough times, and those steps which were taken in the last couple of years for the international wiring harness business is really helping us to show this kind of a performance.

Speaker #3: If I could add, I think this is a really fantastic performance by the wire harness team. In the last few years, China volumes were significantly impacted, and the US also seems to be slowing down.

Speaker #3: So we really worked hard at, again, chipping away at the cost base that we have for these businesses and now that those markets are coming back, I think you're seeing that the impact of what happened in India with the ways rate increases and the copper hitting harder here, overall, it was fairly muted because of the diversification, the cost improvement actions taken by the teams.

Speaker #3: So really, we are really quite impressed with how hard the team has worked during these tough times and those steps which were taken in the last couple of years for the international wiring harness business is really helping us to show this kind of a performance.

Speaker #3: So it was really well done by the team.

Laksh Vaaman Sehgal: It was really well done by the team.

Speaker #4: Yes. I mean, a very good performance here as well. Thanks for that. My second question is slightly more medium term. In your automotive business, obviously Europe is a large part of revenues across segments.

Amyn Pirani: Yes. A very good performance here as well. Thanks for that. My second question is slightly more medium term. In your automotive business, obviously Europe is a large part of revenues across segments. Even China is an important part. How should we think about the Chinese OEM engagement in China? In China also, I think, most of your engagement is with European OEMs. Is there an engagement happening with Chinese OEMs in China? The medium-term question is with respect to Europe, as these Chinese are already gaining market share in Europe and planning to put up facilities in Europe, do you think that there will be engagement for you with Chinese OEMs? How should we think about the medium-term opportunity here? It looks like the European OEMs, at the margin are losing some share to this new competition.

Speaker #4: And even China is an important part. How should we think about the Chinese OEM engagement in China? Because in China also, I think most of your engagement is with European OEM.

Speaker #4: So is there an engagement happening with Chinese OEMs in China? And the medium-term question is with respect to Europe, because as the Chinese are already gaining market share in Europe and planning to put up facilities in Europe, do you think that there will be engagement for you with Chinese OEMs?

Speaker #4: How should we think about the medium-term opportunity here? Because it looks like the European OEMs at the margin are losing some share to this new competition.

Speaker #3: Look, our entire business in China is balanced well. I think, of course, we started the business in China with the international OEMs. But the local market is also transitioning more towards the local OEMs, which we are also reflecting in our business.

Laksh Vaaman Sehgal: Look, our entire business in China is balanced well. Of course, we started the business in China with the international OEMs, but the local market is also transitioning more towards the local OEMs, which we are also reflecting in our business. We are being extremely picky because we are very focused on the top line and bottom line. We do not chase top line where we cannot make the profitability margins. We have seen a lot of the local Chinese OEMs also been added to our product mix in China. However, we still are with the largest share of the business is still with the international OEMs with the local JV partnerships in China, which I think is still holding on and doing well.

Speaker #3: Of course, we are being extremely picky because we are very focused on the top line and bottom line. So we do not chase top lines where we cannot make the profitability margins.

Speaker #3: So we have seen a lot of the local Chinese OEMs also been added to our product mix in China. However, the we still are with the larger share of the business since the international OEMs within local GV partnerships in China.

Speaker #3: Which I think is still holding on and doing well. Yes, the numbers have come down and we have seen a little bit of shift towards that the Chinese OEMs, which our businesses are also making that shift.

Laksh Vaaman Sehgal: Yes, the numbers have come down, and we have seen a little bit of shift towards the Chinese OEMs, which our businesses are also making that shift. Now, we already have those good relationships with those local Chinese OEMs that we have over time and selectively built, I think that gives us good strength as these businesses, as these OEMs move to Europe and other locations. We've already been visited by them. We already have those relationships with them. We're also discussing supplies with them. Motherson is, as you know, an independent supplier. We supply to all OEMs. Wherever we do see that we could make the returns and there's profitable business, we will surely supply.

Speaker #3: Now, because we already have those good relationships with those local Chinese OEMs that we have over time and selectively built, I think that gives us good strength for as these businesses as these OEMs move to Europe and other locations, we do we've already been visited by them.

Speaker #3: We already have those relationships with them. And they're also discussing supplies with them. So Motherson is, as you know, an independent supplier. We supply to all OEMs.

Speaker #3: So wherever we do see that we could make the returns, and there's profitable business, we will surely supply. And I think we're probably one of the best placed because of our international presence, because of our local presence in China, our numerous local Chinese JV partners, which we have a very strong relationship with.

Laksh Vaaman Sehgal: I think we're probably one of the best placed because of our international presence, because of our local presence in China, our numerous local Chinese JV partners which we have a very strong relationship with. Wherever these OEMs are going outside, we're definitely getting the opportunity to supply to them first because we're already supplying to them in China. Like I said, I think you're talking about even market share loss and things like that for the OEMs. I would be careful. I would look at the numbers a little bit more in detail than what's really going on over there. The situation is not as bad. I think the international OEMs are, of course, holding ground in their regions, and we're seeing some OEMs also have growth with their new program launches that are competing head-on with the EV launches of the Chinese OEMs.

Speaker #3: So wherever these OEMs are going outside, we're definitely getting the opportunity to supply to them first because they're already supplying to them in China.

Speaker #3: But like I said, I think you're talking about market share loss and things like that for the OEMs. I would be careful when I look at numbers a little bit more in detail than what's really going on over there.

Speaker #3: And the situation is not as bad. I think the international OEMs are, of course, holding ground in their regions and we're seeing some OEMs also have growth with their new program launches that are completing head-on.

Speaker #3: With the EV launches of the Chinese OEMs. So like I said, for us, the more customers there are, the more opportunities for us to supply.

Laksh Vaaman Sehgal: Like I said, for us, the more customers there are, the more opportunities for us to supply. For us, we are fairly balanced, and we will continue to grow even with the Chinese OEMs that are coming into Europe because of our deep relationships already established with them in the local market.

Speaker #3: So for us, we don't really—we're fairly balanced, and we will continue to grow even with the Chinese OEMs that are coming into Europe because of our deep relationships already established with them in the local market.

Speaker #4: That's really good to know. Thanks for that, Rahman. I'll come back and pick you.

Amyn Pirani: That's really good to know. Thanks for that, Vaman. I'll come back in the queue.

Speaker #3: Thank you. The next question comes on the line of Kapil Singh with Nomura. Please go ahead.

Operator: Thank you. The next question comes from the line of Kapil Singh with Nomura. Please go ahead.

Speaker #4: Yeah. Good evening, sir. The question is a bit strategic in nature. Just wanted to understand, there are several new areas which are throwing up substantial opportunities.

Kapil Singh: Yeah, good evening, sir. The question is a bit strategic in nature. Just wanted to understand, there are several new areas which are throwing up substantial opportunities, for example, robotics or industrial automation, AI-related areas or semiconductors. Which of these areas are of interest for you or you are studying and you think there is a match in terms of ability for Motherson to tap those opportunities?

Speaker #4: For example, robotics or industrial automation, AI-related areas. So or semiconductors. So which of these areas are of interest for you or you are studying and you think there is a match in terms of ability for Motherson to tap those opportunities?

Laksh Vaaman Sehgal: Great question. Answer is all of them. Look, we haven't really spoken about some of the other businesses because we are in building block phase of these businesses because these are new growth opportunities. Again, with our D.E.M.A.L., the design, engineering, manufacturing, assembly, logistics framework and core competence that we have developed at Motherson, we are being looked at many of these companies that are looking for meaningful partnerships, of course, in India, but globally also, to be able to take advantage of the prowess that we have in the operation excellence of manufacturing and be able to supply to them. We are definitely doing stuff in semiconductor. We are supplying already to some of the players in that field, of course, in the B2B kind of segments, so manufacturing and supporting their ambitions in India and in their countries.

Speaker #3: Good question. Answer is all of them. Look, we haven't really spoken about some of the other businesses because we are in building block phase of these businesses because these are new growth opportunities.

Speaker #3: And again, with our demo, the design engineering, manufacturing, assembly, logistics framework and core competence that we have developed at Motherson, we are being looked at many of these companies that are looking for meaningful partnerships, of course, in India, but globally also, to be able to take advantage of the profits that we have in the operation excellence of manufacturing.

Speaker #3: And be able to supply to them. So we are definitely doing stuff in semiconductor. We are supplying already to some of the players in that field, of course, in the B2B kind of segments of manufacturing and supporting there and their ambitions in India.

Speaker #3: And in their countries. So there is some opportunities there which we will again come back to once it reaches a size and scale. That is currently being reflected in a small way in the numbers that you are seeing.

Laksh Vaaman Sehgal: There is some opportunities there, which we will again come back to once it reaches a size and scale. That is currently being reflected in a small way in the numbers that you are seeing. Again, I'm really positive about what we're going to be doing in the semiconductor. You would also hear more about potential joint ventures that we are discussing with at the moment. Of course, I cannot disclose who they are until they are signed, but we are very much a JV specialist, so many of these partners that are looking to, again, expand in India, we've become a partner of choice with our robust and our track record on that. I'm also really glad to tell you that we already have won small orders for actually supporting humanoid production.

Speaker #3: But again, I'm really positive about what we're going to be doing in the semiconductor. You would also hear more about potential joint ventures that we are discussing with at the moment.

Speaker #3: Of course, I cannot disclose if they are signed. But we are very much a GV specialist. So maybe if these partners that are looking to again expand in India, we've become a partner of choice with our track record on that.

Speaker #3: I'm also really glad to tell you that we already have one small order for actually supporting human rights production. Again, cannot really disclose too much on that because as you know, the market right now is extremely niche and only growing.

Laksh Vaaman Sehgal: Again, cannot really disclose too much on that because the market right now is extremely niche and only growing, but we've already targeted those kind of customers and to bring newer solutions from our product portfolio to be able to supply to that. Again, the numbers are extremely small right now, but I think again, as this business grows, we're setting ourselves and sowing the seeds to be in a great position to be able to supply to these businesses because we look at some of the volume projections, they're absolutely mind-boggling. Again, we cannot comment on any of that right now because it really hasn't happened. We will wait for that to happen.

Speaker #3: But we have already targeted those kind of customers and to bring newer solutions from our product portfolio to be able to supply to that.

Speaker #3: Again, the numbers are extremely small right now, but I think again, as this business grows, we're setting ourselves and sowing the seeds to be in a great position to be able to supply to these businesses because we look at some of the volume projections are absolutely mind-boggling.

Speaker #3: But again, we cannot comment on any of that right now because it's really hasn't happened. So we will wait for that to happen. But we're positioning ourselves that these businesses do take off in the future.

Laksh Vaaman Sehgal: We are positioning ourselves that if these businesses do take off in the future, we are well-positioned to take advantage and supply from our complete solution suite in terms of plastics, electronics, wire harness, everything that is required in these businesses to be able to go after them. Our own use of robotics is also really increasing. We have our own company inside Motherson called ROBIS, which has done some stellar work to be able to help manufacturing and automation drive that we are putting in all our facilities globally. Our strategy of producing locally, source locally, produce locally, supply locally, now with AI automation, the labor arbitrage and everything really becomes really minuscule because you're able to really automate and bring all of these kinds of cost synergies or drive.

Speaker #3: We are well positioned to take advantage and supply from our complete solution suite in terms of plastics, electronics, via harness, everything that is required in these businesses to be able to go after them.

Speaker #3: And our own use of robotics is also really increasing. We have our own company inside Motherson called Robust. Which has been some stellar work to be able to help manufacturing and automation drive that we are putting in all our facilities globally.

Speaker #3: And our strategy of producing locally, source locally, produce locally, supply locally, now with AI, automation, the labor arbitrage and everything really becomes really minuscule because if you're able to really automate and bring all of these kind of cost synergies or drives, you can really be competitive in any location because now with logistics costs being so high and so much volatility in currencies and logistics, I think local production is being preferred everywhere by a lot of our customers.

Laksh Vaaman Sehgal: You can really be competitive in any location because now with logistics costs being so high and so much volatility in currencies and logistics, I think local production is being preferred everywhere by a lot of our customers. That really gives us the upper hand to be able to supply, again, our D.E.M.A.L. capabilities to these customers for all bunch of different things, everything that needs manufacturing, and we're really going after these businesses. To get to 108, you will see that some of these things will click and help us to get there.

Speaker #3: So that really gives us the upper hand to be able to supply again our demo capabilities to these customers for a whole bunch of different things.

Speaker #3: Everything that needs manufacturing. And we're really going after these businesses. And to get to 108, you will see that some of these things will click and help us to get there.

Speaker #4: Thanks, Rahman. That's very exciting to hear about. A few of the questions on consumer electronics. Just wanted to know what is our current capacity and the utilization level?

Kapil Singh: Thanks, Vaman. That's very exciting to hear about. A few of the questions on consumer electronics. Just wanted to know what is our current capacity and the utilization level?

Speaker #3: So it's a again, I can't tell you too much about those numbers. The current two facilities are a fraction of what the new facility is going to be at.

Laksh Vaaman Sehgal: Again, I can't tell you too much about those numbers. The current two facilities are a fraction of what the new facility is going to be at. These were just to prove it out that we could do it and we have experience, because this is the largest facility in Motherson Group. You can understand the size and scale of this. The factory is the size of 53 football fields in a row. In that sense, the first two facilities were just prototypes and I think small batch productions just for the process. It's a 17-stage process to make the glass products that we do. Highly technical, requires a lot of engineering, a lot of getting used to, and the scrap rates and everything are like even a small fraction of one is a meaningful impact.

Speaker #3: So and these were just to prove it out that we could do it and we have experience because this is the largest facility in Motherson Group.

Speaker #3: So you can understand the size and scale of this. The factory is the size of 33 football fields in a row. So in that sense, the first facilities were just prototypes and I think small batch productions just for the process.

Speaker #3: It's a very it's a 17-stage process to make the glass products that we do. So highly technical, requires a lot of engineering, a lot of getting used to and the scrap rates and everything are even a small fraction one is a meaningful impact.

Speaker #3: So to really get it right, to understand the chemistry, to understand how to deal with glass, it's extremely fragile. It scratches very, very easily and gets completely rejected.

Laksh Vaaman Sehgal: To really get it right, to understand the chemistry, to understand how to deal with glass, extremely fragile. It scratches very, very easily and gets completely rejected. Very different to what we've been doing in some of the other products portfolio. Again, I think you guys have to be just a little bit more patient with us. I think two quarters you would see that. Like I said, we can give you a volume kind of growth, but what kind of revenues and all that generate depends on the programs, depends on the features, depends on what we finally win, which is all happening as we speak. Please just be a little bit more patient. I know we've kept you guys waiting for some of this, but please believe me, it's worth it.

Speaker #3: So very different to what we've been doing in some of the other products. Portfolio. So again, I think you guys have to be just a little bit more patient with us.

Speaker #3: I think two quarters you will see that. And like I said, we can give you a volume kind of growth, but what kind of revenues and all that generate depends on the programs depends on the features, depends on what we finally win.

Speaker #3: Which is all happening as we speak. So please just be a little bit more patient. I know we've kept you guys waiting for some of this, but please believe me, it's worth it.

Speaker #3: It's going to be it's going to be it's going to be great for our company to be able to upstream into this new business.

Laksh Vaaman Sehgal: It's going to be great for our company to be able to upstream into this new business and create something, a complete new line of business for the group that will be meaningful. We will share a lot of these things with you in couple of quarters as we ourselves learn and understand how this business is fully ramped up and how it goes.

Speaker #3: And create something a complete new line of business for the group that will be meaningful. And we will share a lot of these things with you in a couple of quarters as we ourselves learn and understand how this business is fully ramped up and how it goes.

Speaker #4: Okay. And just lastly on emerging businesses, because it involves a lot of new businesses and probably we don't understand it so well. So what I'm noticing is that the margins at least on a quarter on quarter basis have been moving up and down a lot.

Kapil Singh: Okay. Just lastly, on emerging businesses, because it involves a lot of new businesses and probably we don't understand it so well. What I'm noticing is that the margins at least on a quarter-on-quarter basis have been moving up and down a lot. Can you just help us understand what is causing this? Is there some kind of seasonality here we should keep in mind, or is the mix changing? Just any color here to help understand this will be helpful.

Speaker #4: So can you just help us understand what is causing this? Is keep in mind or is the mix changing? Just any color here to help understand this will be helpful.

Speaker #3: Yeah. Look, and Gandha, please support me. I think look, in the emerging businesses, we are clubbing a lot of different businesses together right now because they're all at that infancy stage.

Laksh Vaaman Sehgal: Yeah. Look, Gambhir please support me. I think, look, in the emerging businesses, we are clubbing a lot of different businesses together right now because they're all at that infancy stage. There are facilities that are ramping up. There are new programs that are launching over there. Again, once these become of meaningful size, we will bifurcate them so that we will get a more detailed picture on, for example, consumer electronics. It says we will look to see to give you a lot more clarity, because that is obviously one of our largest facilities with the capital, et cetera. Right now you're seeing some of that clubbing effort, which is happening with some of those emerging businesses all coming together to give you a more consolidated view.

Speaker #3: There are facilities that are ramping up. There are new programs that are launching over there. And again, once these become of meaningful size, we will bifurcate them so that we will get a more detailed picture on, for example, consumer electronics.

Speaker #3: Itself, we will look to see to give you a lot more clarity because that is obviously one of our largest facilities with the capacity, etc.

Speaker #3: So right now you've seen some of that clubbing effort, which is happening with some of those emerging businesses all coming together to give you a more consolidated view.

Laksh Vaaman Sehgal: Like I said, we're in the middle of ramp-ups, new facilities that have come up to support what the orders are going to come. I think, again, in coming quarters, you will see a lot more detailed view of that. You can see that there's tremendous amount of growth there. A lot of the electronics piece that we are doing in consumer electronics, not just with this facility of glass, but with also other capabilities that we are building for what we want to do with SMT lines and things like that. We have a lot of use of PCBs ourselves. There are a lot of things that we are thinking and trying out ourselves, which is there.

Speaker #3: And like I said, we're in the middle of ramp-ups new facilities that have come up to support what the orders are going to come.

Speaker #3: But I think again, in coming quarters, we will see a lot more detailed view of that. But you can see that there's tremendous amount of growth there.

Speaker #3: A lot of the electronics piece that we are doing in consumer electronics, not just with this facility of glass, but with also other capabilities that we are building.

Speaker #3: For what we want to do with SMT lines, and things like that. We have a lot of use of PCBs. Ourselves. So there are a lot of things that we are thinking and trying out ourselves, which is there.

Speaker #3: But again, I think in a couple of quarters—by the end of this year—you will see a lot more clarity on that, as some of these things come up to full swing and we are kind of fully ready to present to you what we are doing in some of these new growth areas.

Laksh Vaaman Sehgal: In a couple of quarters, by the end of this year, you will see a lot more clarity on that as some of these things come up to full swing and we are kind of fully ready to present to you what we are doing in some of these new growth areas.

Speaker #4: Thank you so much. And look forward to that. Best Best wishes.

Kapil Singh: Thank you so much. Look forward to that. Best wishes.

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

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question comes from the line of Raghunandan NL with Nuvama Wealth Management Limited. Please go ahead.

Speaker #1: The next question comes from the line of Raghunandan NL with Noama Research. Please go ahead.

Raghunandhan N. L.: Good evening team. In the investor presentation, thank you for sharing the quarterly region-wide revenue mix. That is very helpful. On my first question, with the Nexans acquisition, will the existing India business, for instance, Kyungshin and Motherson Wiring India, benefit from the support like technology support, can they be synergy?

Raghunandhan NL: Good evening team. In the investor presentation, thank you for sharing the quarterly region-wide revenue mix. That is very helpful. On my first question, with the Nexans acquisition, will the existing India business, for instance, Kyungshin and Motherson Wiring India, benefit from the support like technology support, can they be synergy?

Speaker #3: Good evening team. In the investor presentation, thank you for sharing the quarterly region-wise revenue mix that is very helpful. On my first question, with an advanced acquisition, will the existing India business, for instance, Johnson and Motherson wiring India, benefit from the support like technology support, can it be synergy?

Laksh Vaaman Sehgal: Pankaj sir, do you want to take that?

Speaker #4: We'll take that.

Speaker #2: Yeah. Raghunandan, obviously wherever we do business, we always support. So if there is something which is required in the Indian market, that will always be available.

Pankaj Mital: Yeah. Raghunandanji, obviously, wherever we do business, we always support. If there is something which is required in the Indian market, that will always be available. At the moment, both Samvardhana's continuous knowledge gain and the company in India is supported by Sumitomo's MSW, and Kyungshin is supported by Kyungshin's technical knowledge that's dedicated to Hyundai and Kia businesses. Whatever we gain knowledge anywhere in the world is obviously available to our child companies.

Speaker #2: So at the moment, both Sam will spend in his knowledge gain and the company in India has supported by Sumitomo San and as well.

Speaker #2: And Kyungshin is supported by Kyungshin's technical knowledge because that's dedicated to Hyundai and Kia businesses. Whatever we gain knowledge anywhere in the world is obviously available to our child companies.

Speaker #3: Noted, sir. Thank you. Going back to consumer electronics for FY26, it is great to see 1,300 crore revenue and 8% data margin. This increase in CapEx to 7,500 crores is I assume 2 and a half times gross sector number.

Raghunandhan N. L.: Noted, sir. Thank you. Sir, going back to consumer electronics for FY2026, it is great to see INR 1,300 crore revenue and 8% EBITDA margin. This increase in CapEx to INR 7,500 crore, if I assume two and a half times growth at turnover, it can go as much as INR 20,000 crore revenue by 2030 with double-digit margins. Do you think something like that is realistic and achievable?

Raghunandhan NL: Noted, sir. Thank you. Sir, going back to consumer electronics for FY2026, it is great to see INR 1,300 crore revenue and 8% EBITDA margin. This increase in CapEx to INR 7,500 crore, if I assume two and a half times growth at turnover, it can go as much as INR 20,000 crore revenue by 2030 with double-digit margins. Do you think something like that is realistic and achievable?

Speaker #3: It can go as much as ₹20,000 crore revenue by 2030, with double-digit margins. Do you think something like that is realistic and achievable?

Speaker #4: Look, we cannot give you any sort of projection. But of course, you have to understand that these facilities and things that we are putting in will be one-time kind of investments for this facility and we will hopefully be able to reap the rewards of it for the next 20 years from the facility that we do put in.

Laksh Vaaman Sehgal: Look, we cannot give you any forward projections. Of course, you have to understand that these facilities and things that we are putting in will be one-time kind of investments for this facility, and we will hopefully be able to reap the rewards of it for the next 20 years from the facility that we do put in. It's not something that is only for this program or something for life. Please do have heart. These are really flagship kind of investments that we are making in these things. Then, of course, over the years, we do see this business also being able to give us 40% ROCE as we grow.

Speaker #4: It's not something that is only for this program or something for life. So please do have heart. These are very flagship kind of investments that we are making in these things and then of course over the years we do see this business also being able to give us 40% grosses as we grow.

Speaker #4: How we have to get there, of course, it's an uphill climb, but I think the most important thing is to be able to show to the customer that we can ramp very, very large facilities in new product lines with new customers, with new quality specs, and do that very successfully.

Laksh Vaaman Sehgal: How we have to get there, of course, it's uphill climb, but I think the most important thing is to be able to show to the customer that we can ramp very large facilities in new product lines with new customers, with new quality specs and do that very successfully. I think this is just first of many, and hopefully with the launch of this, we will be able to showcase to this customer and to other customers that we could now perhaps attempt to double the size of this facility with our capabilities, with the learnings and everything that we have got. Definitely looking to ramp from here. Of course, a lot depends on the product actually that we win because it's a fairly diversified kind of a product. Applications are very large. We're only focusing on one side as we are proving ourselves in this business.

Speaker #4: And I think this is just first of many. And hopefully with the launch of this, we will be able to showcase to this customer and to other customers that we could now perhaps attempt double the size of this facility with our capabilities, with the learnings and everything that we have got.

Speaker #4: So definitely looking to ramp from here. Of course, a lot depends on the product actually that we win because it's a fairly diversified kind of a product.

Speaker #4: Applications are very, very large. We're only focusing on one side as we are proving ourselves in this business. But yeah, we are very, very hopeful that this capacity will give us returns for many, many years.

Laksh Vaaman Sehgal: We are very hopeful that this capacity will give us returns for many years. This product is definitely not going anywhere. Glass will continue to be used in a meaningful way in a lot of consumer electronics, and we hope to give you a lot better returns than what you're seeing right now at the startup phase when it's at ramp.

Speaker #4: And this product is definitely not going anywhere. Glass will continue to be used in a meaningful way in a lot of consumer electronics, and we hope to give you much better returns than what you're seeing right now at the startup phase, when it's at full ramp.

Operator: Does that answer your query?

Speaker #4: Is that answering your question?

Speaker #3: Yes.

Laksh Vaaman Sehgal: Yes.

Raghunandhan NL: Yes.

Speaker #4: Okay. Go ahead.

Operator: Okay. Go ahead. Mr. Raghunandan, does that answer your question?

Laksh Vaaman Sehgal: Okay. Go ahead.

Operator: Mr. Raghunandan, does that answer your question?

Speaker #1: Mr. Raghunandan, does that answer your question?

Speaker #3: Yes, yes. Thank you very much. That's very helpful.

Raghunandhan N. L.: Yes. Thank you very much.

Raghunandhan NL: Yes. Thank you very much.

Operator: Okay.

Raghunandhan N. L.: That's very helpful.

Raghunandhan NL: That's very helpful.

Speaker #1: Thank you. The next question comes on the line of Siddhanth with ASK Investments. Please go ahead.

Operator: Thank you. The next question comes from the line of Siddhant with ASK Investments. Please go ahead.

Speaker #3: Yeah. Good evening everyone. Am I audible?

[Analyst] (ASK Investments): Yeah. Good evening, everyone. Am I audible?

Speaker #1: Yes, please go ahead.

Operator: Yes, please go ahead.

Speaker #3: Yeah. So my first question is just a clarification. When we say that 38% of the wiring harness revenue came from India, we are including 100% of the Motherson wiring business and then later on we are deducting the 100% under the JV method.

[Analyst] (ASK Investments): Yeah. My first question is just a clarification. When we say that 38% of the wiring harness revenue came from India, we are including 100% of the Motherson wiring business, and then later on, we are deducting the 100% under the JV method. Is that right?

Speaker #3: Is it right?

Speaker #1: Okay.

Laksh Vaaman Sehgal: Abhay.

Speaker #3: Yeah.

Gandharv Tongia: Yeah. Vaman, I'll take this. Whatever is of MSWIL, that is accounted as associate or joint venture. What we explained, that is what we do. We also have exposed business that is included in MBL.

Speaker #4: Raman, I'll take it. Whatever is of MS will, that is accounted as associate or joint venture. And what we explained that is what we do.

Speaker #4: But we also have exposed business that is included in Samuel.

Speaker #3: Yeah. But my understanding was correct, right? We'll be including 100% of the Motherson wiring and then we are deducting 100%.

[Analyst] (ASK Investments): Yeah, my understanding was correct, right? We are including 100% of the Motherson wiring, and then we are deducting 100%.

Speaker #4: That's right. And the profit is then accounted for as a share of.

Laksh Vaaman Sehgal: That's right. The profit is then accounted for as a share of JV-

Gandharv Tongia: That's right. The profit is then accounted for as a share of JV-

[Analyst] (ASK Investments): Share of JV and associates.

Speaker #3: Share of JV and associate.

Speaker #4: Yeah. You're absolutely right.

Laksh Vaaman Sehgal: Yeah. You are absolutely right.

Gandharv Tongia: Yeah. You are absolutely right.

Speaker #3: Right. So my second question is regarding the JF3 facility right now the JV share is 90-10. So how should we model the revenue going forward?

[Analyst] (ASK Investments): Right. My second question is regarding the GF3 facility. Right now, the JV share is 90/10, so how should we model the revenue going forward? Will it be 90/10 or it'll be 50/50 once they convert the shares?

Speaker #3: Will it be like 90-10 or it'll be 50-50 once they convert the shares?

Laksh Vaaman Sehgal: Well, right now, we don't have any indication that they want to go up. I cannot really comment on that. They have the opportunity to do so, they are currently quite happy at that 10%. If that changes, we will definitely come back to you. Currently it is what it is.

Speaker #4: Well, right now we don't have any indication that they want to go up. So I cannot really comment on that. They have the opportunity to do so, but they are currently quite happy at that 10%.

Speaker #4: So if that changes, we will definitely come back to you. But currently, it is what it is.

Speaker #3: Okay. Thank you, sir. I'll get back to you.

[Analyst] (ASK Investments): Okay. Thank you, sir. I'll get back in the queue.

Speaker #1: Thank you. The next question comes on the line of Chandramalli Muthia with Goldman Sachs. Please go ahead.

Operator: Thank you. The next question comes from the line of Chandramouli Muthiah with Goldman Sachs. Please go ahead.

Speaker #3: Hi. Good evening and thank you for my questions. My first question is just around the upcoming facility. The third facility under the consumer electronics business.

Chandramouli Muthiah: Hi, good evening. Thank you for taking my questions. My first question is just around the upcoming facility, the third facility under the consumer electronics business. Just given the scale and size of the plant, is this being planned to have maybe fungible lines and capabilities to have products beyond the glass products that you're already making today? Just related to this, want to understand in your own sort of internal models, when do you expect the consumer electronics business to fund its own CapEx? What is the sort of timeframe that you have on that? In a steady state, what sort of asset turns would you aspire for in the consumer electronics business? That's my first question.

Speaker #3: Just given the scale and size of the plant, is this being planned to have maybe fungible lines and capabilities to have products beyond the glass products that we're already making today?

Speaker #3: And just related to this, wanted to understand in your own sort of internal models, when do you expect the consumer electronics business to fund its own CapEx?

Speaker #3: What is the sort of time frame that you have on that? And in a steady state, what sort of asset terms would you aspire to in the consumer electronics business?

Speaker #3: That's my first question.

Speaker #4: Okay. Thanks for that. Look, in the consumer electronics business, like I said, this current product is glass and the applications are large. But what we are doing and the capacities that we are setting up in this facility are already completely taken by the customer that we have.

Laksh Vaaman Sehgal: Okay, thanks for that. Look, in the consumer electronics business, like I said, this current product is glass, and the applications are large. What we are doing and the capacities that we are setting up in this facility are already completely taken by the customer that we have. It's Motherson's prerogative always to diversify and make sure that, again, no facility is only or no company is only focused on concentrated customer. We want to bring in more and more customers, and I think those opportunities will definitely come as we are able to show, again, that we are fully capable to ramp large programs in this industry, which is a new industry for us. Definitely with the profits of this, we are looking to reinvest that and further grow this industry and it to be on its own.

Speaker #4: It's Motherson's prerogative always to diversify and make sure that again, no facility is only or no company is only focused on concentrated customer. We want to bring in more and more customers.

Speaker #4: And I think those opportunities will definitely come. As we're able to show, again, that we're fully capable to ramp large programs in this industry, which is a new industry for us.

Speaker #4: And definitely with the profits of this, we are looking to reinvest that and further grow this industry and it to be on its own.

Laksh Vaaman Sehgal: In the investor conference, we also spoke about how some of these incubations, as they become young adults, we would like them to hive off and become standing on their own feet. I think that's what we are following with all of our new businesses, the aspirations for all the new businesses to be completely standing on their own feet. Again, depending on how this thing performs, which we are very hopeful and positive about, these should be good candidates for these companies to be standing on their own feet, funding their own CapEx and growing up on their own. I think SAMIL has done it with this first facility. After that, everything that we need to do is, hopefully this company is able to stand on its own and drive its own future. That was the whole strategy behind incubating all the new verticals in SAMIL.

Speaker #4: In the investor conference, we also spoke about how some of these incubations as it become young adults, we would like them to hive off and become standing on their own feet.

Speaker #4: And I think that's what we're following with all of our new businesses. The aspirations for all the new businesses to be completely standing on their own feet.

Speaker #4: So again, depending on how this thing performs, which we are very hopeful and positive about, these should be good candidates for these companies to be standing on their own feet, finding their own CapEx and growing up on their own.

Speaker #4: I think Samuel has done its bit with this first facility. After that, everything that we need to do is—hopefully, this company is able to stand on its own and drive its own future.

Speaker #4: And that was the whole strategy behind incubating all the new verticals. In Samuel.

Speaker #3: Got it. That's helpful. My second question is about the emerging opportunities in the industrial space globally, specifically around some of the topics discussed earlier—robotics, humanoids, physical AI, and so on.

Chandramouli Muthiah: Got it. That's helpful. Second question is just around the emerging opportunities in the industrial space globally, around some of the topics that were earlier discussed, robotics, humanoids, physical AI, and so on. Just want to understand from your standpoint, how long does it typically take, potentially, to develop parts in-house for sale into these supply chains? Are there also products, just given your scale globally and your variety of SKUs, are there some products in the basket at some of your plants globally that you think can be cross-sold into the supply chain? Just trying to understand what is the breadth of products and the time taken to develop products for this emerging growth opportunity.

Speaker #3: So I just want to understand from your standpoint, how long does it typically take potentially to develop parts in-house for sale into these supply chains?

Speaker #3: And are there also products just given your scale globally and your variety of SKUs, are there some products in the basket at some of your plants globally that you think can be cross-sold into the supply chain?

Speaker #3: Just trying to understand what is the breadth of products and the time taken to develop products for this emerging growth opportunity.

Speaker #4: I'm not able to grasp the question completely, but I'll probably start and maybe my team can help if they understood it better. Look, the idea from developing new products and things like that, I mean, all the companies that we are acquiring, we are obviously adding to the product portfolio and the customer wants this company to survive because it has good technology and it needs to be serviced.

Laksh Vaaman Sehgal: I'm not able to grasp the question completely. I'll probably start and maybe my team can help if they answer it better. Look, the idea from developing new products and things like that, all the companies that we are acquiring, we are obviously adding to the product portfolio. The customer wants this company to survive because it has good technology and it needs to be serviced in their growth plans. Our idea is always to be able to take the existing products. Can we show them to more customers? Can we take them to more geographies? We did that very successfully when we acquired SMR, for example. There was numerous technologies on the rearview mirror that we were able to bring into the Indian customers that saw a lot of value in these new attributes that were coming out in, let's say, the European cars.

Speaker #4: In their growth plans, our idea is always to be able to take the existing products. Can we show them to more customers? Can we take them to more geographies?

Speaker #4: We did that very successfully when we acquired SMR, for example. There were numerous technologies on the rear view. Mirror that we were able to bring into the Indian customers.

Speaker #4: That saw a lot of value in these new attributes that were coming out in, let's say, the European cars. And we had a lot of success with things like that.

Laksh Vaaman Sehgal: We had a lot of success with things like that. It's not just about. Of course, we're continuing to spend money on our development of our feature-rich content, because if you look at the key real estate in the car and look at all the electronics and the features and the attributes that are coming, we own that real estate. If you're looking at all the electronics for exterior environment that comes in the front bumper, back bumper, exterior mirrors, that's our real estate. If you look at all the features that are coming in the interior, it's coming on the dashboard, it's coming on the doors. That's our real estate. There's huge opportunity there to be able to, again, continually develop more and more features.

Speaker #4: So it's not just about, of course, we're continuing to spend money on our development of our feature-rich content because if you look at the key real estate in the car and look at all the electronics and the features and the attributes that are coming, we own that real estate.

Speaker #4: If you're looking at all the electronics, for exterior, environment that comes in the front bumper, back bumper, exterior mirrors, that's our real estate. If you look at all the features that are coming in the interior, it's coming on the dashboard, it's coming on the doors.

Speaker #4: That's our real estate. So there's a huge opportunity there to be able to, again, continually develop more and more features. And that's why we say that we're not producing something static like cement or something like that, which is the same except for perhaps small changes that go into the compounds.

Laksh Vaaman Sehgal: That's why we say that we're not producing something like static like cement or something like that, which is the same with perhaps small changes that go into the compounds. Actual features and the amount of products that go inside our product continuously changes with every new program, which allows us to bring in, again, new electronics, new touch and feel, new materials, new ways of processing. All of that kind of is our core competence for which we are able to go to the customers and help them achieve their goals of driving the value up in their products, and also better ways and sustainability drives to be able to change the way that some of these things have been done historically. A lot of avenues of growth. That's what really excites us.

Speaker #4: But actual features and the amount of products that go inside our product continuously changes with every new program, which allows us to bring in, again, new electronics, new touch and feels, new materials, new ways of processing.

Speaker #4: And all of that kind of is our core competence for which we are able to go to the customers and help them achieve their goals of driving the value up in their products and also better ways and sustainability drives to be able to change the way that some of these things have been done historically.

Speaker #4: So a lot of avenues of growth. That's what really excites us. I think we are always told you that, look, our engine exposure is minimal.

Laksh Vaaman Sehgal: I think we've always told you that, look, our engine exposure is minimal. We're an engine-agnostic company. We do have a very small product line that is really focused on ICE, but the majority of our product portfolio is applicable to the entire car, no matter what, whether it's ICE or hybrid or hydrogen in the future or whatever that comes, we're fully capable to ramp up to that. With that also, we can also take these kind of products to not just passenger car. We are seeing synergies that we can drive in the aerospace. We are seeing synergies that we can drive in the rolling stock business. A lot of opportunities for growth.

Speaker #4: We're engine agnostic companies. We do have a very small product line that is really focused on ice, but our majority of our product portfolio is applicable to the entire car, no matter what whether it's ice or hybrid or hydrogen in the future or whatever that comes.

Speaker #4: We're fully capable to ramp up to that. And with that also, you can also take these kind of products to not just pass car.

Speaker #4: We have seen synergies that we can drive in the aerospace. We have seen synergies that we can drive in the rolling stock business. So a lot of opportunities for growth.

Speaker #4: And now, space is, of course, something that's heating up and something that we're also looking to go after, given the amount of money that is being spent globally on these kinds of programs.

Laksh Vaaman Sehgal: Now space is, of course, something that's heating up and something that we're also looking to go after with seeing the amount of money that is being spent, again, globally on these kind of programs and how quickly this is going to also ramp up. It's a mixture of all of these things. We allow the autonomy to the companies to go after their products and see the development that they want to make and the industries and the customers that they want to go after. Extremely exciting because we are very relevant in the age of mobility, where mobility is only increasing, and the number of options for the consumer and the number of customers are also increasing who are providing new mobility solutions. Even stuff like the new age mobility stuff which we're seeing, short-term transportation. A lot of exciting stuff is coming.

Speaker #4: And how quickly this is going to also ramp up. So it's a mixture of all of these things. We allow the autonomy to the companies to go after their products and see the development that they want to make and the industries and the customers that they want to go after.

Speaker #4: But extremely exciting because we are very relevant in the age of mobility where mobility is only increasing and the number of options for the consumer and the number of customers are also increasing who are providing new mobility solutions.

Speaker #4: Even stuff like the new age mobility stuff that you've seen, short-term transportation, so a lot of exciting stuff is coming. Again, these are all things which are niche industries which are growing.

Laksh Vaaman Sehgal: Again, these are all things which are niche industries, which are growing. I can't name some of the customers that we are talking to. They're completely new age. Again, very exciting opportunities. Even if one of these things click, it's really meaningful. I think when EVs were just coming out, we were one of the first companies to support the large ones that were coming out internationally. Building those strong relationships really helped us to grow meaningfully in the EV space as well, providing all our platform of products. Especially SMR did a wonderful job at that time because they were global. I think that continues, that kind of ethos continues, and we see a lot of opportunity for our products to grow with the new age customers, the new age mobility that's coming, and we will stay focused on growing that.

Speaker #4: I can't name some of the customers that we are talking to. We are completely new age. But again, very exciting opportunities. And even if one of these things clicked, it's really meaningful.

Speaker #4: I think when EVs were just coming out, we were one of the first companies to support the large ones that were coming out internationally.

Speaker #4: And building those strong relationships really helped us to grow meaningfully in the EV space as well. Providing all our platform of products, especially SMR, there's a wonderful job at that time because they were global.

Speaker #4: So I think that continues. That kind of ethos continues. And we see a lot of opportunity for our products to grow with the new age customers, the new age mobility that's coming.

Speaker #4: And we will stay focused on growing that.

Speaker #3: Correct. That's helpful. Thank you very much and all the best.

Chandramouli Muthiah: Got it. That's helpful. Thank you very much. All the best.

Speaker #1: Thank you. The next question comes from the line of Manpreet Arora with Northern Lights Wealth. Please go ahead.

Operator: Thank you. The next question comes from the line of Manpreet Arora with Northern Trust Wealth. Please go ahead.

Speaker #5: Yeah, thank you for the opportunity. Just a clarification: we said the GF3 is 40 million units, eventual capacity around, let's say, FY2029. And in FY26, our exit run rate was 16 million units.

Manpreet Arora: Thank you for the opportunity. Just a clarification. We said the GF3 is 40 million units eventual capacity in around, let's say, FY2029. In FY2026, the exit run rate was 16 million units. Is it fair to assume that the total capacity will be like 56 million units at the end of FY2029? Is that the correct assumption?

[Analyst]: Thank you for the opportunity. Just a clarification. We said the GF3 is 40 million units eventual capacity in around, let's say, FY2029. In FY2026, the exit run rate was 16 million units. Is it fair to assume that the total capacity will be like 56 million units at the end of FY2029? Is that the correct assumption?

Speaker #5: So is it fair to assume that the total capacity will be like 56 million units at the end of in FY29? Is that the correct assumption?

Speaker #4: Again, yes, yes and thereabouts. I think, again, depending on the program that we win and the number of processes that that product has, we could definitely do a little bit more than that or less depending, again, on the programs.

Laksh Vaaman Sehgal: Yes, and thereabout. I think, again, depending on the program that we win and the number of processes that that product has, that we could definitely do a little bit more than that or less, depending again on the programs. Yeah, it's going to be significantly more than what we are doing right now. Again, like I said, we have to wait a couple of quarters to really get more idea on that. I think trying to piece together more numbers and stuff like that, I don't think will give you the best view of that. Please be patient for another couple of quarters. We'll have all the information you need to understand this business.

Speaker #4: But yeah, it's going to be significantly more than what we are doing right now. And again, like I said, you have to wait a couple of quarters to really get more idea on that.

Speaker #4: I think trying to piece together more numbers and stuff like that, I don't think will give you the best view of that. So please be patient for another couple of quarters.

Speaker #4: We'll have all the information you need to understand this business.

Speaker #5: Sure, sure. I mean, I was just trying to get an idea of the size or the expansion that we're doing. So my next question, Raman, you mentioned about some of these businesses that we're incubating will be ready to stand on their own.

Manpreet Arora: Sure. I was just trying to get an idea of the size of the expansion that we're doing. My next question, Vaman, you mentioned about some of these businesses that we're incubating will be ready to stand on their own.

[Analyst]: Sure. I was just trying to get an idea of the size of the expansion that we're doing. My next question, Vaman, you mentioned about some of these businesses that we're incubating will be ready to stand on their own. I think you also talked about that on the Investor Day.

Speaker #5: And I think you also talked about that in the investor day on the investor day. Now, does it also mean that at some point of time we will look at separately listing them some of these businesses and unlock value?

Manpreet Arora: I think you also talked about that on the Investor Day.

Laksh Vaaman Sehgal: Yes.

Manpreet Arora: Now, does it also mean that at some point of time, we will look at separately listing them, some of these businesses, and unlock value?

[Analyst]: Now, does it also mean that at some point of time, we will look at separately listing them, some of these businesses, and unlock value?

Speaker #4: Yes, absolutely. I think how we do it, what are the semantics, that's something that will depend on what the structure of that business is, what is the best way to create value.

Laksh Vaaman Sehgal: Yes, absolutely. I think how we do it, what are the semantics, that's something that will depend on what the structure of that business is, what is the best way to create value. Our drive is to create a lot of value for all the investors that have incubated these businesses and supported them together in SAMIL, and for them to drive their own path and to grow up. Yes, everything is on the cards. I can't tell you exactly what happens because right now we're really focused on execution and making sure that these companies become extremely valuable and standalone on their own. How and what shape that will happen will, again, come in this five-year plan. We will come back to you and tell you how exactly we're doing it.

Speaker #4: But our drive is to create a lot of value. For all the investors that have incubated these businesses and supported them together in Tamil and for them to drive their own path and to grow up.

Speaker #4: So yes, everything is on the cards. I can't tell you exactly what happens because they're still right now we're really focused on execution and making sure that these companies become extremely valuable and stand alone on their own.

Speaker #4: And how and what shape that will happen will again come in this five-year plan. We will come back to you and tell you how exactly we're doing it.

Speaker #4: But that's definitely a drive for us to create independent, because if you look at Tamil, we're doing a lot of different industries, incubating it in Tamil.

Laksh Vaaman Sehgal: That's definitely a drive for us to create independent, because if you look at SAMIL, we are doing a lot of different industries, incubating it in SAMIL, and I think the way to unlock that value will be that once they are of a certain size and scale, to give them that independence to be able to grow and stand on their own feet and that the dependence of SAMIL be cut off and have their own trajectory of growth, which is slightly different to where the automotive business is in that scenario. That is something that we are more mature in. These are more new growth, high growth areas and something that's very exciting and will require, like I said, complete independence from SAMIL once they are able to stand up on their own feet, which is not far away.

Speaker #4: And I think the way to unlock that value will be that once they're of a certain size and scale, to give them that independence to be able to grow and stand on their own feet and let the dependence of Tamil be cut off and have their own trajectory of growth which is slightly different to where the automotive businesses in that scenario.

Speaker #4: That is something that we are more mature in. And these are more new growth, high growth areas and something that's very exciting. And we'll require, like I said, complete independence from Tamil once they are able to stand up on their own feet.

Speaker #4: Which is not far away.

Speaker #5: Great. Thanks. So should we look at something happening in FY28? Some value unlocking or would it be beyond that?

Manpreet Arora: Great. Thanks. Should we look at something happening in FY28, some value unlocking, or would it be beyond that?

[Analyst]: Great. Thanks. Should we look at something happening in FY28, some value unlocking, or would it be beyond that?

Speaker #4: Look, it's definitely in this five-year plan. For us, the faster the better. Depends on how, again, how they ramp and how the market perceives that they are valuable as well.

Laksh Vaaman Sehgal: Look, it's definitely in this five-year plan. For us, the faster, the better. Depends on, again, how they ramp and how the market perceives that they're valuable as well. From our side, we are taking all the steps for as soon as possible that these things happen. For us, it's better faster than later. Definitely, we have set up plans internally, everything depends on the execution for the next couple of years for that to of course happen, is we need to have some performance of these companies so that people understand that what's really happening over there. The good news is that everything is on track. It's as we had imagined. Of course, there's headwinds in terms of geopolitical and those kind of things which affect the markets.

Speaker #4: But from our side, we're taking all the steps for as soon as possible that these things happen. For us, it's better faster than later.

Speaker #4: But definitely, we have set up plans internally and everything depends on the execution for the next couple of years for that to, of course, happen.

Speaker #4: But we need to have some performance of these companies so that people understand that what's really happening over there. So good news is that everything is on track.

Speaker #4: It's as we had imagined. Of course, there's headwinds in terms of geopolitical and all those kind of things which affect the markets. But in terms of our performance, in terms of what we are winning in terms of customer confidence, in terms of our execution, we are very much on track.

Laksh Vaaman Sehgal: In terms of our performance, in terms of what we are winning, in terms of customer confidence, in terms of our execution, we are very much on track.

Speaker #5: All right. Thank you. One final question, Raman. This is more of a specific to our vision systems. Vertical. Are there regulatory tailwinds that we're seeing especially in India?

Manpreet Arora: All right. Thank you. One final question, Vaman. This is more specific to our Vision Systems vertical. Are there regulatory tailwinds that we're seeing, especially in India? We have this AIS-184 regulation about driver drowsiness detection that is probably coming in, and this requires a lot of sensors, maybe camera for monitoring the driver and some software to detect and all that. Is it a meaningful growth opportunity for us because we are present in the CV space? Do we have capability across the stack, across sensors, camera, software, and is it a meaningful opportunity for our Vision Systems vertical? Just wanted to.

[Analyst]: All right. Thank you. One final question, Vaman. This is more specific to our Vision Systems vertical. Are there regulatory tailwinds that we're seeing, especially in India? We have this AIS-184 regulation about driver drowsiness detection that is probably coming in, and this requires a lot of sensors, maybe camera for monitoring the driver and some software to detect and all that. Is it a meaningful growth opportunity for us because we are present in the CV space? Do we have capability across the stack, across sensors, camera, software, and is it a meaningful opportunity for our Vision Systems vertical? Just wanted to.

Speaker #5: We have this AIS 184 regulation about driver drowsiness detection that is probably coming in. And this requires a lot of sensors, maybe camera for monitoring the driver and some software to detect and all that.

Speaker #5: So is it a meaningful growth opportunity for us? Because we are presented with a CV space and do we have capability across the stack across sensors, camera, software?

Speaker #5: And is it a meaningful opportunity for us vision systems vertical responded?

Speaker #4: Thank you. Thank you so much for asking that question. My friend Rajath on the call, unfortunately, does not get a lot of airtime because everybody's already asking me about consumer electronics business.

Laksh Vaaman Sehgal: Yeah. Thank you so much for asking that question. My friend Rajat on the call, unfortunately, does not get a lot of air time because everybody's only asking me about the consumer electronics business, where the mirror business has been one of the most resilient, one of the highest cash generators for us in terms of free cash flow, and is doing phenomenal things under his leadership. Really, I am so glad that someone asked this question and recognized that the mirror business is also in a very good trajectory. Rajat, please, the stage is yours, and finally somebody's asked about the mirror business. Thank you so much. Yeah, I think good question, and yes, we are seeing these new regulatory frameworks helping us. If you see what we've done in this new acquisition, Autocruise, this is exactly in that direction.

Speaker #4: Where the mirror business has been one of the most resilient, one of the highest cash generators for us in terms of free cash flow and is doing phenomenal things under his leadership.

Speaker #4: So really, I'm so glad that someone asked this question and recognized that the mirror business is also in a very, very good trajectory so that at least the stage is yours and finally somebody has asked about the mirror business.

Speaker #5: Yeah, yeah. Thank you. Thank you so much. So yeah, I think good question. And yes, we are seeing these new regulatory tailwinds helping us.

Rajat Jain: Thank you so much. Yeah, I think good question, and yes, we are seeing these new regulatory frameworks helping us. If you see what we've done in this new acquisition, Autocruise, this is exactly in that direction. They have a good product portfolio. They are already doing interior digital mirrors. They are also doing driver monitoring systems for buses. They are also doing other products which then we can scale up in China itself, and we can also then add these products in India. Of course, there will be work that will have to be done, because these would require homologation.

Speaker #5: And if you see what we've done in this new acquisition, AutoPulse this is exactly in that direction. Because they have a good product portfolio they are already doing interior digital mirrors they're also doing driver monitoring systems for buses.

Laksh Vaaman Sehgal: They have a good product portfolio. They are already doing interior digital mirrors. They are also doing driver monitoring systems for buses. They are also doing other products which then we can scale up in China itself, and we can also then add these products in India. Of course, there will be work that will have to be done, because these would require homologation. They would have to clear all the requirements that we have from the regulators. Clearly, it provides us a very strong platform to then build upon and catch up. I think these things are still in the starting phase, and we are just in time to bring in these technologies, and then ride on the growth that the market would see with these regulations coming in more and more. Great, thanks. Can I ask one more, if possible?

Speaker #5: They are also doing other products which then we can scale up in China itself. And we can also then add these products in India.

Speaker #5: So of course, there'll be work that will have to be done. Because these would require homologation. They would have to clear all the requirements that we have from the regulators.

Rajat Jain: They would have to clear all the requirements that we have from the regulators. Clearly, it provides us a very strong platform to then build upon and catch up. I think these things are still in the starting phase, and we are just in time to bring in these technologies, and then ride on the growth that the market would see with these regulations coming in more and more.

Speaker #5: But clearly, it provides us a very strong platform to then build upon. And catch up. So I think these things are still in the starting phase.

Speaker #5: And we are just in time to bring in these technologies. And then right on the growth that the market would see with these regulations coming in more and more.

Speaker #5: Okay, great. Thanks. Can I ask one more, if possible?

[Analyst]: Great, thanks. Can I ask one more, if possible?

Speaker #4: Sure, sure. Please go ahead.

Operator: Sure. Please go ahead.

Laksh Vaaman Sehgal: Sure. Please go ahead.

Speaker #5: Yeah. Yeah. This is more on the health and medical side. Our revenues have degrown over the last three years. We're making our losses have increased.

Laksh Vaaman Sehgal: Yeah. This is more on the health and medical side. Our revenues have de-grown over the last three years in making, our losses have increased. What is the grand vision with the health and medical side of the emerging business? Do we see ourselves becoming like a GE HealthCare of India or Just want to know the grand vision there, and what are we doing to grow our capabilities in that vertical? Yeah. Look, the vision remains the same for like the rest of other businesses. We do not have any ambitions to become a OEM of that size and scale. We definitely want to be supplying to customers like that, and that's the idea. Yes, you are right, the business is slightly slower to get off the blocks, but that happens. There were extreme high valuations in this industry.

[Analyst]: Yeah. This is more on the health and medical side. Our revenues have de-grown over the last three years in making, our losses have increased. What is the grand vision with the health and medical side of the emerging business? Do we see ourselves becoming like a GE HealthCare of India or Just want to know the grand vision there, and what are we doing to grow our capabilities in that vertical?

Speaker #5: So what is the grand vision with the health and medical side or the emerging business? And I mean, do we see ourselves becoming like a GE Healthcare of India or just want to know the grand vision there.

Speaker #5: What are we doing to grow our capabilities in that vertical?

Speaker #4: Yeah. Look, the vision remains the same. Like the rest of other businesses. We do not have any ambitions to become a OEM. Of that size and scale.

Laksh Vaaman Sehgal: Yeah. Look, the vision remains the same for like the rest of other businesses. We do not have any ambitions to become a OEM of that size and scale. We definitely want to be supplying to customers like that, and that's the idea. Yes, you are right, the business is slightly slower to get off the blocks, but that happens. There were extreme high valuations in this industry.

Speaker #4: We definitely want to be supplying to customers like that. And that's the idea. Yes, you're right. The business is slightly slower to get off the blocks.

Speaker #4: But that happens. There were extreme high valuations in this industry. So to try to do a large acquisition or something we didn't see any paths to delivering 40% row seats if we were paying those kind of multiples.

Laksh Vaaman Sehgal: To try to do a large acquisition or something, we didn't see any paths to delivering 40% ROCE if we were paying those kind of multiples. I think now, under the leadership of Sachin Nene, we are really looking at a much more sound way of driving this business. We've opened up our first plant in Chennai, which is the largest plant that we have for health and medical, which is getting orders. Hopefully this trend that you see of the negative should reverse in coming quarters, because that's fully up and ready now and commissioned. I think we're also looking at some strategic plays globally. With, again, our competence now in the other product groups, I think there's a lot to add to that vertical.

Speaker #4: But I think now under the leadership of Sachin Menon, we have really looking at a much more sound way of driving this business. We've opened up our first plant in Chennai, which is the largest plant that we have for health and medical, which is getting orders and hopefully this trend that you see of the negative should reverse in coming quarters.

Speaker #4: Because that's fully up and ready now, and commissioned. And I think we're also looking at some strategic plays globally, and with, again, our competence now in the other product groups, I think there's a lot to add to that vertical.

Laksh Vaaman Sehgal: We have also partnered and done some of our own stuff in terms of partnership with Erlic for ultrasound kind of machines. I think that's seeing some traction now. It was a startup that we were working with, there's a lot of stuff that we needed to do to bring the manufacturing, global sales, et cetera, to sync all of that up. I think that's happened. We should see meaningful growth there also. Yeah, I think that is clearly it's a wait and watch. The vision is exactly the same. It's been slightly slower, but when the things will click, I'm pretty sure that that will happen fairly quickly, and this will grow also rapidly at the right time.

Speaker #4: We have also partnered and done some of our own stuff in terms of partnership with Enel X for ultrasound kind of machines. I think that's seen some traction now.

Speaker #4: We did. It was a startup that we were working with. So there was a lot of stuff that we needed to do to bring the manufacturing global sales sector in to sync all of that up.

Speaker #4: I think that's happened. So we should see meaningful growth there also. So yeah, I think that is please wait and watch the vision is exactly the same.

Speaker #4: It's been slightly slower. But when the things will click, I'm pretty sure that that will happen fairly quickly and this will grow also rapidly at the right time.

Speaker #4: And also looking at cementing some good joint ventures to bring some really good technology into India, to support the needs of the health and medical industry in India.

Laksh Vaaman Sehgal: Looking at cementing some good joint ventures to bring some really good technology into India to support the needs of the health and medical industry in India. Most of the stuff that we see in India, also a lot of it is imported. Huge growth opportunities there. Like I said, I think just because of the nature of that business, we were not able to get global traction on that very quickly. I think now in this five-year plan, you will see meaningful growth that comes over there. I am sure the teams will show you a good performance by the end of this five-year plan. Great. Thank you, Vaman. Appreciate your time.

Speaker #4: Because most of the stuff that we see in India is also a lot of it is imported. So huge growth opportunities there. And like I said, I think the just because of the nature of that business, we were not able to get a global traction on that very, very quickly.

Speaker #4: But I think now in this five-year plan, you will see meaningful growth that comes over there. And I'm sure the teams will show you a good performance by the end of this five-year plan.

Speaker #5: Great. Great. Thank you. Appreciate your time.

[Analyst]: Great. Thank you, Vaman. Appreciate your time.

Speaker #4: Thank you. Please and gentlemen, that was the last question for today. I now hand the conference over to Mr. Varman for closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Vaman for closing comments.

Speaker #5: Thank you so much. And thank you for all your questions. I think again, you've seen a really resilient performance by a group in really tough, challenging conditions.

Laksh Vaaman Sehgal: Thank you so much. Thank you for all your questions. I think, again, you have seen a really resilient performance by our group in really tough, challenging conditions. I think the operating teams are completely flat out combating all of these things yet showing you these impressive performances, one of our strongest performance in Q1. We are extremely proud of what we have built. I think you are seeing the full engine of Motherson running now with the demo capabilities that we have been harping on and building on as a platform for the last so many years. We are really excited of upcoming quarters and extremely bullish about where we go from here. Look forward to your support, and see you all in the next quarter. Thank you all so very much for your time. All the best. Thank you. Bye-bye.

Speaker #5: I think the operating teams are completely flat out. Combating all of these things and yet showing you is interested performance is one of our strongest performance in Q1.

Speaker #5: So we're extremely proud of what we have built. I think you are seeing the full engine of mother-son running now with the demo capabilities that we've been hopping on and building on as a platform for the last so many years.

Speaker #5: And we're really excited of upcoming quarters and extremely bullish about where we go from here. So look forward to your support and see you all in the next quarter.

Speaker #5: Thank you all so very much for your time. All the best. Thank you. Bye-bye.

Speaker #4: Thank you so much. On behalf of Samvardhana Motherson International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you, sir. On behalf of Samvardhana Motherson International Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.

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