Q1 2027 Suprajit Engineering Ltd Earnings Call

August 7, 2026

Speaker #1: Ladies and gentlemen, you have been connected to the Suprajit Engineering Q1 FY27 audience conference call. Please stay connected; the call will begin shortly. Ladies and gentlemen, you have been connected to the Suprajit Engineering Q1 FY27 audience conference call.

Operator: Ladies and gentlemen, you've been connected to Suprajit Engineering Q1 FY27 Earnings Conference Call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you've been connected to Suprajit Engineering Q1 FY27 Earnings Conference Call. Please stay connected, the call will begin shortly. Ladies and gentlemen, good day and welcome to the Suprajit Engineering Q1 FY27 Earnings Conference Call hosted by Anand Rathi's Share and Stock Brokers. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Mumuksh Mandlesha from Anand Rathi Share and Stock Brokers. Thank you. Over to you, sir.

Speaker #1: Please stay connected; the call will begin shortly. Ladies and gentlemen, good day, and welcome to the Suprajit Engineering Q1 FY27 Earnings Conference Call, hosted by Anand Rathi Share and Stock Brokers.

Speaker #1: 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.

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

Speaker #1: I now hand the conference over to Mr. Mumuksh Mandalesha from Anand Rathi Share and Stock Brokers. Thank you, and over to you, sir.

Speaker #2: Yeah, thanks, Shruti. On behalf of Anand Rathi Shares and Stock Brokers, I welcome you all to the Suprajit Engineering Q1 FY27 Results Conference Call.

Mumuksh Mandlesha: Yeah, thanks, Shruti. On behalf of Anand Rathi Share and Stock Brokers, I welcome you all to the Suprajit Engineering Q1 FY27 results conference call. I thank the management for taking time out for this call. From the management side, we have Mr. Ajith Kumar Rai, the Founder and Chairman; Mr. N. S. Mohan, MD and Group CEO; Mr. Akhilesh Rai, Director and Chief Strategy Officer; and Mr. Medappa Gowda J, CFO and Company Secretary. I request Ajith sir and team to give an introduction review about the results, and then we can follow up with the Q&A session. Over to you, sir.

Speaker #2: I thank the management for taking time out for this call. From the management side, we have Mr. Ajit Kumar Rai, the Founder and Chairman, and Mr. N.

Speaker #2: Dr. S. Mohan, MD and Group CEO; Mr. Akhilesh Rai, Director and Chief Strategy Officer; and Mr. Medapa Gowda Jay, CFO and Company Secretary. I request Ajit sir and team to give an introductory review about the results.

Speaker #2: And then we can follow up with the Q&A session. Over to you, sir.

Speaker #3: Thank you, Mumuksh, and good morning to you all. Greetings from Suprajit. Thank you for joining us for the Q1 call. As you all know, the Middle East conflict, the oil and commodity prices, trade restrictions, and shipping disruptions continue to be in play.

Ajith Kumar Rai: Thank you, Mumuksh, and good morning to you all. Greetings from Suprajit. Thank you for joining us for the Q1 call. As you all know, the Middle East conflict, the oil and commodity prices, trade restrictions, and shipping disruptions continue to be in play. Global automotive and non-automotive business have been not growing. They also stayed muted. India had a very good quarter in terms of the automotive numbers with the sector growing at about 22%, and both passenger vehicle and two-wheeler segments had a solid double-digit growth. From our point of view, I think our team will talk briefly about how we performed, but on an operating level, I think we have had an exceptionally good quarter. Consolidated revenue grew up by about 24%. EBITDA was up by nearly 57%. We had the highest-ever quarterly operating revenue of INR 1,070 crores in this quarter.

Ajith Rai: Thank you, Mumuksh, and good morning to you all. Greetings from Suprajit. Thank you for joining us for the Q1 call. As you all know, the Middle East conflict, the oil and commodity prices, trade restrictions, and shipping disruptions continue to be in play. Global automotive and non-automotive business have been not growing. They also stayed muted. India had a very good quarter in terms of the automotive numbers with the sector growing at about 22%, and both passenger vehicle and two-wheeler segments had a solid double-digit growth. From our point of view, I think our team will talk briefly about how we performed, but on an operating level, I think we have had an exceptionally good quarter. Consolidated revenue grew up by about 24%. EBITDA was up by nearly 57%. We had the highest-ever quarterly operating revenue of INR 1,070 crores in this quarter.

Speaker #3: Global automotive and non-automotive businesses have not been growing; they have also stayed muted. India, you know, had a very good quarter in terms of automotive numbers, with the sector growing at about 22%.

Speaker #3: And both passenger vehicle and two-wheeler segments had solid, double-digit growth. From our point of view, I think our team will talk briefly about how we performed, but on an operating level, I think we have had an exceptionally good quarter.

Speaker #3: Consolidated revenue grew by about 24%, and EBITDA was up by nearly 57%. We had the highest ever quarterly operating revenue of ₹1,070 crores in this quarter.

Speaker #3: Standalone margins came under pressure, and Mohan will be walking through that—explaining what happened and how it's going to be a temporary phenomenon for us.

Ajith Kumar Rai: Standalone margins came under pressure. Mohan will be walking through that as to what happened and how it's going to be a temporary phenomenon for us. Then we'll take on the questions after all our briefing's done from our team. First of all, I'll hand over to Medappa for a brief financial detail. Medappa?

Ajith Rai: Standalone margins came under pressure. Mohan will be walking through that as to what happened and how it's going to be a temporary phenomenon for us. Then we'll take on the questions after all our briefing's done from our team. First of all, I'll hand over to Medappa for a brief financial detail. Medappa?

Speaker #3: And then we'll take on the questions after all our briefings are done from our team. First of all, I'll hand over to Medapa for a brief financial detail.

Speaker #3: Medapa?

Speaker #4: Yes. Thank you, sir. Good morning, everyone. The consolidated revenue for the quarter ended June 2026 was ₹1,070 crore, as against ₹863 crore for the corresponding previous year, recording a growth of 24%.

Medappa Gowda J: Yeah. Thank you, sir. Good morning, everyone. The consolidated revenue for the quarter ended June 2026 was INR 1,070 crores as against INR 863 crores for the corresponding previous year, recording a growth of 24%. The consolidated operational EBITDA for the quarter ended June 2026 was INR 129 crores as against INR 82 crores for the corresponding previous year, recording a growth of 57%. The standalone revenue for the quarter ended June 2026 was INR 470 crores against INR 390 crores for the previous year, recording a growth of 20%. The standalone operational EBITDA for the quarter ended June 2026 was INR 60 crores against INR 61 crores for the corresponding previous year, recording a growth of 0.3%. The total debt level was INR 776 crores as on June 2026. Surplus cash balance was INR 243 crores as on June 2026, invested in the mutual funds and bonds. For further queries, you can connect with me even after the call.

Medappa Gowda: Yeah. Thank you, sir. Good morning, everyone. The consolidated revenue for the quarter ended June 2026 was INR 1,070 crores as against INR 863 crores for the corresponding previous year, recording a growth of 24%. The consolidated operational EBITDA for the quarter ended June 2026 was INR 129 crores as against INR 82 crores for the corresponding previous year, recording a growth of 57%. The standalone revenue for the quarter ended June 2026 was INR 470 crores against INR 390 crores for the previous year, recording a growth of 20%. The standalone operational EBITDA for the quarter ended June 2026 was INR 60 crores against INR 61 crores for the corresponding previous year, recording a growth of 0.3%.

Speaker #4: The consolidated operational EBITDA for the quarter ended June 2026 was ₹129 crore, as against ₹82 crore for the corresponding previous year, recording a growth of 57%.

Speaker #4: The standalone revenue for the quarter ended June 2026 was ₹470 crores, against ₹390 crores for the previous year, recording a growth of 20%. The standalone operational EBITDA for the quarter ended June 2026 was ₹60 crores, against ₹61 crores for the corresponding previous year, recording a growth of 0.3%.

Speaker #4: The total debt level was ₹776 crore as on June 2026. There was surplus cash as on June 2026, invested in mutual funds and bonds. For further queries, you can connect with me even after the call.

Medappa Gowda: The total debt level was INR 776 crores as on June 2026. Surplus cash balance was INR 243 crores as on June 2026, invested in the mutual funds and bonds. For further queries, you can connect with me even after the call. Thank you very much.

Speaker #4: Thank you very much.

Medappa Gowda J: Thank you very much.

Speaker #3: Mohan? very good morning. Thank you. Medapa also, let's start with the global cables and mechatronics, what we call it as GCM now, which used to be formerly called as SCD or Suprajit Controls Division.

Ajith Kumar Rai: Mohan?

Ajith Rai: Mohan?

N. S. Mohan: Very good morning. Thank you, Medappa. Let's start with the Global Cables and Mechatronics, what we call it as GCM now, which used to be formerly called as SCD or Suprajit Controls Division. First of all, the revenue went up by 27% and almost 28%, and EBITDA moved very smartly from 5.8% to 12.6%. This has been an outcome of the global restructuring that we had been explaining over the last few quarters. Thank you for all your patience. We are finally seeing the results here. GCM continues to work with our customers and also with some of the governments for a fair recovery of the tariffs, particularly in USA. We have certain VAT recoveries in China, Canada, and Germany, which was a part of the acquisitions that we had done there. In terms of new business, we are ramping up new projects both in China and India.

Mohan Nagamangala: Very good morning. Thank you, Medappa. Let's start with the Global Cables and Mechatronics, what we call it as GCM now, which used to be formerly called as SCD or Suprajit Controls Division. First of all, the revenue went up by 27% and almost 28%, and EBITDA moved very smartly from 5.8% to 12.6%. This has been an outcome of the global restructuring that we had been explaining over the last few quarters. Thank you for all your patience. We are finally seeing the results here. GCM continues to work with our customers and also with some of the governments for a fair recovery of the tariffs, particularly in USA. We have certain VAT recoveries in China, Canada, and Germany, which was a part of the acquisitions that we had done there. In terms of new business, we are ramping up new projects both in China and India.

Speaker #3: First of all, the revenue went up by 27%, almost 28%, and EBITDA moved very smartly from 5.8% to 12.6%. This has been an outcome of the global restructuring that we had been explaining over the last few quarters.

Speaker #3: Thank you for all your patience, and we are finally seeing the results here. GCM continues to work with our customers and also with some of the governments for a fair recovery of the tariffs.

Speaker #3: Particularly in the USA, and we have certain VAT recoveries in China, Canada, and Germany, which were a part of the acquisitions that we had done there.

Speaker #3: In terms of new business, we are ramping up new projects both in China and in India. In China, we have one of the largest OEMs that we are now working with, and we are going to launch the product with them.

N. S. Mohan: China, we have one of the largest OEMs that we are now working with. We are going to launch the product with them. It is a Chinese OEM. Again, in India, we are launching quite a few lines and products for a large US OEM, who is specifically looking to building a resilient supply chain as they describe it. These are all driving good volumes at GCM. This quarter was very strong for new business wins also. We have recorded business wins across India, Mexico, and China, which I think is showing the customers' various preferences, particularly with the kind of global footprint that we have today. With this, I move to India. Before I get into the specifics, let me just talk about something in general.

Mohan Nagamangala: China, we have one of the largest OEMs that we are now working with. We are going to launch the product with them. It is a Chinese OEM. Again, in India, we are launching quite a few lines and products for a large US OEM, who is specifically looking to building a resilient supply chain as they describe it. These are all driving good volumes at GCM. This quarter was very strong for new business wins also. We have recorded business wins across India, Mexico, and China, which I think is showing the customers' various preferences, particularly with the kind of global footprint that we have today. With this, I move to India. Before I get into the specifics, let me just talk about something in general.

Speaker #3: It's the Chinese OEM. And again, in India, we are launching quite a few lines and products for a large US OEM, who is specifically looking to build a resilient supply chain, as they describe it.

Speaker #3: These are all driving good volumes at the, you know, GCM. This quarter was very strong for new business events also, and we have recorded business wins across India, Mexico, and China, which I think is showing the customers' various preferences.

Speaker #3: Particularly with the kind of global footprint that we have today. With this, I'll move to India and, before I get into the specifics, let me just talk about something in general.

Speaker #3: First things first, I think we need to recognize that we have strong headwinds that have hit—not in terms of the market itself. The market is doing good, but the raw material prices have really gone sky high.

N. S. Mohan: First things first, I think we need to recognize that we have strong headwinds that has hit us, not in terms of the market. The market is doing good, the raw material prices are really gone sky high. To compound with that, what we have had is an increase in employee cost happened, as you know, in the NCR region, all those unrest happened, the elections happened. Therefore, we had a lot of migration of labor going back to work in their constituencies. Therefore, these were the kind of headwinds we faced. While we have mechanisms with our customers to tackle the material cost increases, employee cost increase has been a different animal for us.

Mohan Nagamangala: First things first, I think we need to recognize that we have strong headwinds that has hit us, not in terms of the market. The market is doing good, the raw material prices are really gone sky high. To compound with that, what we have had is an increase in employee cost happened, as you know, in the NCR region, all those unrest happened, the elections happened. Therefore, we had a lot of migration of labor going back to work in their constituencies. Therefore, these were the kind of headwinds we faced. While we have mechanisms with our customers to tackle the material cost increases, employee cost increase has been a different animal for us.

Speaker #3: And to compound with that, what we have had is an increase in employee cost. So, this happened, as you know, in the NCR region, all those unrest happened, and the elections happened.

Speaker #3: Therefore, we had a lot of migration of labor going back to work in their constituencies. These were the kind of headwinds we faced.

Speaker #3: While we have mechanisms with our customers to tackle material cost increases, employee cost increase has been a different animal for us. For the first time in many years, we have approached customers to pass this on, and quite a few customers understand this pain point, and some of them have already agreed to make amends.

N. S. Mohan: For the first time in many years, we have approached the customers to pass this on to, quite many customers understand this pain point, some of them have already agreed to make amends. I am sure that we should be able to see reason in the industry and make good of it, net of the productivity measures that we are going to take. Having said that, let me start with the specifics. I move to India Cable and Mechatronics, or ICM, which we used to call it as DCD earlier. Revenues went up by almost 21%. This is broad-based. If you look at it, OEM, aftermarket, everything put together. EBITDA grew only by 4.2%, with the margins down from almost 15% to 13%. This was primarily due to the cost pressures that I mentioned to you.

Mohan Nagamangala: For the first time in many years, we have approached the customers to pass this on to, quite many customers understand this pain point, some of them have already agreed to make amends. I am sure that we should be able to see reason in the industry and make good of it, net of the productivity measures that we are going to take. Having said that, let me start with the specifics. I move to India Cable and Mechatronics, or ICM, which we used to call it as DCD earlier. Revenues went up by almost 21%. This is broad-based. If you look at it, OEM, aftermarket, everything put together. EBITDA grew only by 4.2%, with the margins down from almost 15% to 13%. This was primarily due to the cost pressures that I mentioned to you.

Speaker #3: I am sure that we should be able to see reason in the industry and make good of it, net of the productivity measures that we are going to take.

Speaker #3: Having said that, let me start now with the specifics. Now I move to India, cable and mechatronics. Our ICM, which we used to call DCD earlier.

Speaker #3: The revenues went up by almost 21%. This is broad-based—if you look at it, OEM, aftermarket, everything put together. But EBITDA grew only by 4.2%, with margins down from almost 15% to 13%.

Speaker #3: This was primarily due to the cost pressures that I mentioned to you. In our opinion, this is very clearly a timing problem. We haven't yet passed through all these, you know, raw material and wage increases to the customer.

N. S. Mohan: In our opinion, this is very clearly a timing problem. We haven't yet passed through all these raw material and wages increase to the customer. The process will get completed in the coming quarter, and the margins will recover. Our braking products, we are moving very well and on a small base, a smaller base, but on a long journey, it always starts with a small step. The CBS revenues went up by 110%, brake shoes and brake pads went up by around 80%. I think it's a good start in our braking area. Moving over to Phoenix Lighting and Electricals, or PLE, what we used to call as PLD earlier. Our revenues went up by 5.4%, but EBITDAs went down by 45%, margins went down 2.8% to 6.7%, primarily due to delayed price increases and also particularly in the aftermarket business.

Mohan Nagamangala: In our opinion, this is very clearly a timing problem. We haven't yet passed through all these raw material and wages increase to the customer. The process will get completed in the coming quarter, and the margins will recover. Our braking products, we are moving very well and on a small base, a smaller base, but on a long journey, it always starts with a small step. The CBS revenues went up by 110%, brake shoes and brake pads went up by around 80%. I think it's a good start in our braking area. Moving over to Phoenix Lighting and Electricals, or PLE, what we used to call as PLD earlier. Our revenues went up by 5.4%, but EBITDAs went down by 45%, margins went down 2.8% to 6.7%, primarily due to delayed price increases and also particularly in the aftermarket business.

Speaker #3: And the process will get completed in the coming quarter, and the margins will recover. Our braking products are moving very well, and on a small base—a smaller base—but, on a long journey, it always starts with a small step.

Speaker #3: The CBS revenues went up by 110%, and brake shoes and brake pads went up by around 80%. So I think it's a good start in our braking area.

Speaker #3: Moving over to Phoenix Lighting and Electricals, or PLE, what we used to call PLD earlier. Our revenues went up by 5.4%, but EBITDA was down by 45%. Margins went down from 6.7% to 2.8%, primarily due to delayed price increases, particularly in the aftermarket business.

Speaker #3: And new prices are now in effect, and we expect a recovery going forward in Q2 and Q3. Prefab sales in the Middle East still remain soft.

N. S. Mohan: New prices are now in effect, and we expect a recovery going forward in Q2, Q3. Free Fall sales in Middle East still remains soft. On a positive side, we have started ramping up deliveries to one of the largest retailers in the US who awarded significant additional business. Overall, while we look at damp results in Phoenix Lighting and Electricals, we look at that brightening going forward. With this, I'm going to hand it over to Akhilesh to take us through Sensors, Electronics, Displays and Technology Center. Over to you, Akhilesh.

Mohan Nagamangala: New prices are now in effect, and we expect a recovery going forward in Q2, Q3. Free Fall sales in Middle East still remains soft. On a positive side, we have started ramping up deliveries to one of the largest retailers in the US who awarded significant additional business. Overall, while we look at damp results in Phoenix Lighting and Electricals, we look at that brightening going forward. With this, I'm going to hand it over to Akhilesh to take us through Sensors, Electronics, Displays and Technology Center. Over to you, Akhilesh.

Speaker #3: And on a positive side, we have started ramping up deliveries to one of the largest retailers in the US, who awarded significant additional business. So overall, while we look at damp results in Phoenix Lighting and Electricals, we look at that brightening going forward.

Speaker #3: With this, I'm going to hand it over to Akhilesh to take us through sensors, electronics, displays, and the technology center. Over to you, Akhilesh.

Speaker #2: Yeah. Thank you, Mohan, and good morning, everyone. From the Sensors and Electronics and Displays division, it had a very strong quarter. Revenue was up 48%, EBITDA up 100%, margins close to double digit.

Akhilesh Rai: Thank you, Mohan, and good morning, everyone. From the Sensors and Electronics and Displays division, it had a very strong quarter. Revenue was up 48%, EBITDA up 100%, margins close to double-digit. This is because of a lot of new projects that ramped up very well in the quarter and will be continuing to ramp up. A lot of strength is in the digital clusters and electronic throttle grip area where that is driving the growth of the business. We also have a very good pipeline of new wins, which is why we are now on a war footing, expanding capacity of our electronics division to cater to this increased demand and our pipeline. SED has also picked up a lot of good awards worth noting.

Speaker #2: This is because of a lot of new projects that ramped up very well in the quarter, and will be continuing to ramp up. A lot of strength is in the digital clusters and electronic throttle grip area, where that is driving the growth of the business.

Speaker #2: We also have a very good pipeline of new wins, which is why we are now on a war footing, expanding capacity of our Electronics Division to cater to this increased demand and our pipeline.

Speaker #2: SCD, I also picked up a lot of good awards, worth noting. Firstly, from Mahindra Last Mile Mobility, we got an award for our extraordinary efforts in ramping up the throttle supplies that we had this year.

Akhilesh Rai: Firstly, from Mahindra Last Mile Mobility, we got an award for our extraordinary efforts in ramping up the throttle supplies that we had this year. This is all because of the rare earth curbs that were put on India, we had developed a rare earth-free throttle. They had to very quickly move to Suprajit, and that ramp-up was extremely difficult this year, but we managed successfully, and we have now won further businesses with Mahindra. Similarly, we also on operations continue to have excellence in operations as well, and that's shown with the ACMA Manufacturing Excellence Award, which SED won this quarter. Coming to STC, because SCS is now part of GCM, I won't be covering it. It is already covered with Mohan under GCM.

Speaker #2: This is all because of the rare earth curbs that were put on India, and we had developed a rare earth-free throttle. So they had to very quickly move to Suprajit, and that ramp-up was extremely difficult this year, but we managed successfully, and we have now won further businesses with Mahindra.

Speaker #2: Similarly, we also, on operations, continue to have excellence in operations as well, and that's shown with the ACMA, which SCD won this year, this quarter.

Speaker #2: Coming to STC, since SCS is now part of GCM, I won't be covering it—it is already covered with Mohan under GCM.

Speaker #2: So, coming to STC, it of course is our R&D engine and continues to support a lot of projects, including the ABS and sunroof cable projects, which are now progressing well.

Akhilesh Rai: Coming to STC, it of course is our R&D engine, continues to support a lot of projects, including the ABS and sunroof cable projects, which are now progressing well. STC and ICM have jointly picked up the Ather's Most Innovative Supplier Award, really showing the kind of capability that we are building as a true technology provider in India. The new STC building is on track now for completion in Q3. We would look forward to hosting our investors there sometime. General updates, I think we also have won a lot of good awards from Bajaj Auto, our JIPM TPM Excellence Award. TVS Motor gave us a platinum award for our TPM process as well. Those show that we continue to have great support from all our customers, whether it is ICE or EV. With that, over to you, Chairman.

Speaker #2: And STC and ICM have jointly picked up the Aether's Most Innovative Supplier Award, really showing the kind of capability that we're building as a true technology provider in India.

Speaker #2: The new STC building is on track now for completion in Q3, and we look forward to hosting our investors there sometime. As for general updates, I think we have also won a lot of good awards from Bajaj, JIPM—TPM Excellence Award—and TVS Motors gave us a Platinum Award for our TPM process as well.

Speaker #2: And those show that we continue to have great support from all our customers, whether it's ICE or EV. So with that, over to you, Chairman.

Speaker #3: Thank you, Akhilesh. Just to sum up, I think the GCM restructuring is completed, and the numbers in the quarter clearly show that the restructuring has yielded the right results for us.

Ajith Kumar Rai: Thank you, Akhilesh. Just to sum up, I think the GCM restructuring is completed. The numbers of the quarter clearly show that the restructuring has yielded the right results for us. ICM and PLE margin pressure, as N. S. Mohan has explained, it is a timing issue and a price pass-through. We expect that to be recovering well in this and the next quarter. The guidance we gave, despite all these things, the guidance that we gave in our press release dated 25 May 2026 still holds for the year. I do not think there is any concern on meeting the guidance that we have already set out. Thank you all for joining. Now I hand over to Shruthi at the Chorus Call to start organizing the call and the questions. Thank you.

Ajith Rai: Thank you, Akhilesh. Just to sum up, I think the GCM restructuring is completed. The numbers of the quarter clearly show that the restructuring has yielded the right results for us. ICM and PLE margin pressure, as N. S. Mohan has explained, it is a timing issue and a price pass-through. We expect that to be recovering well in this and the next quarter. The guidance we gave, despite all these things, the guidance that we gave in our press release dated 25 May 2026 still holds for the year. I do not think there is any concern on meeting the guidance that we have already set out. Thank you all for joining. Now I hand over to Shruthi at the Chorus Call to start organizing the call and the questions. Thank you.

Speaker #3: ICM and PLE margin pressure, as Mohan has explained, is a timing issue and a price pass-through. We expect that to be recovering well in this and the next quarter.

Speaker #3: The guidance we gave—I mean, despite all these things, the guidance that we gave in our press release dated 25th May 2026—still holds for the year.

Speaker #3: I don't think there is any concern on meeting the guidance, that we have already set out. Thank you all, for joining. now I hand over to the, to Shruti, at the chorus to start, you know, organizing the call, and the questions.

Speaker #3: Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj from Simplii Financial. Please proceed.

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

Speaker #1: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Virat from Simple. Please proceed.

Speaker #4: Yeah, yeah. Am I audible?

[Analyst] (Simplii Financial): Yeah. Hi. Am I audible?

[Analyst] (Simplii): Yeah. Hi. Am I audible?

Speaker #3: Yes, you are, Virat.

Ajith Kumar Rai: Yes, you are, Viraj.

Ajith Rai: Yes, you are, Viraj.

Speaker #4: Yeah. Hi, sir. Congratulations on a decent set of numbers in a very volatile environment. Just a couple of questions. First is on the GCM. So, if you look at the console numbers also and the segmental which you gave, you know, the margin which we own this quarter—was there any one-off in terms of write-backs or any FX element in this?

[Analyst] (Simplii Financial): Yeah. Hi, sir. Congratulations on recent set of numbers in a very volatile environment. Just a couple of questions. First is on the GCM. If you look at the consolidated numbers also and the segmental which you gave, the margin which we earned this quarter, was there any one-off in terms of write-backs or any FX element in this?

[Analyst] (Simplii): Yeah. Hi, sir. Congratulations on recent set of numbers in a very volatile environment. Just a couple of questions. First is on the GCM. If you look at the consolidated numbers also and the segmental which you gave, the margin which we earned this quarter, was there any one-off in terms of write-backs or any FX element in this?

Speaker #3: In operational result, there is no.

Ajith Kumar Rai: In operational result, there is no.

Ajith Rai: In operational result, there is no.

Speaker #4: So in the global cable.

[Analyst] (Simplii Financial): In the global -

[Analyst] (Simplii): In the global -

Speaker #3: Yeah, GCM—whatever the operational number that we have set out—there isn’t anything that is a one-off number in that. I mean, there may be small one-offs, but nothing that is material, no.

Ajith Kumar Rai: Yeah. GCM, whatever the operational number that we have set out there isn't anything that is a one-off number in that. There may be small one-offs, but nothing that is material, no.

Ajith Rai: Yeah. GCM, whatever the operational number that we have set out there isn't anything that is a one-off number in that. There may be small one-offs, but nothing that is material, no.

Speaker #4: Okay. Because, you know, if you look at the contribution margin, you know, if you look at the console gross margin—contribution margin first—we've seen a very healthy expansion.

[Analyst] (Simplii Financial): Okay. If you look at the consolidated margin.

[Analyst] (Simplii): Okay. If you look at the consolidated margin.

Ajith Kumar Rai: Okay

Ajith Rai: Okay

[Analyst] (Simplii Financial): if you look at the consolidated gross margin, contribution margin for us, we've seen a very healthy expansion given.

[Analyst] (Simplii): if you look at the consolidated gross margin, contribution margin for us, we've seen a very healthy expansion given.

Speaker #4: Given, you know, this is despite the, you know, the pressure we have seen on the RM and the standalone or the India business. And, you know, also, considering that, you know, the overall raw material environment has been very, inflationary.

Ajith Kumar Rai: Yes

Ajith Rai: Yes

[Analyst] (Simplii Financial): this is despite the pressure we have seen on the RM and the standalone of the India business. Also considering that the overall raw material environment has been very inflationary. Despite that.

[Analyst] (Simplii): this is despite the pressure we have seen on the RM and the standalone of the India business. Also considering that the overall raw material environment has been very inflationary. Despite that.

Speaker #4: So, despite that, we have seen a very healthy gross margin. In the console, I'm assuming that in the subsidiaries, or the global business, we have seen a very healthy expansion in contribution margin.

Ajith Kumar Rai: Right

Ajith Rai: Right

[Analyst] (Simplii Financial): We've seen a very healthy gross margin in the consolidated also. I'm assuming that in the subsidiaries or the global business, we've seen a very healthy expansion in contribution margin. I'm just trying to understand what is driving this.

[Analyst] (Simplii): We've seen a very healthy gross margin in the consolidated also. I'm assuming that in the subsidiaries or the global business, we've seen a very healthy expansion in contribution margin. I'm just trying to understand what is driving this.

Speaker #4: So, I'm just trying to understand what is driving this.

Ajith Kumar Rai: I think one is, please understand, the restructuring has made our operations very tight, and it is much leaner now compared to what it was earlier. That is number one. Number two, there is a top-line growth of whatever, 20%-plus. Automatically when the operations are tight and lean and efficient and the top line grows, it automatically drops into the gross margins, no?

Ajith Rai: I think one is, please understand, the restructuring has made our operations very tight, and it is much leaner now compared to what it was earlier. That is number one. Number two, there is a top-line growth of whatever, 20%-plus. Automatically when the operations are tight and lean and efficient and the top line grows, it automatically drops into the gross margins, no?

Speaker #3: I think one is, please understand, the restructuring has made our operations, you know, very tight. And it is much leaner now compared to what it was earlier.

Speaker #3: There is number one. Number two, there is a top-line growth of, whatever, 20-plus percent. Now, automatically, when the operations are tight and lean, and efficient, and the top-line grows, it automatically drops into the— you know, gross margins, no.

Speaker #4: Got it. So this margin.

[Analyst] (Simplii Financial): Got it. This margin

[Analyst] (Simplii): Got it. This margin

Speaker #3: Please also note, during the course of last year, we have initiated quite a few cost improvement projects within the group globally. So, that also has had its effect.

Ajith Kumar Rai: Please also note, during the course of last year, we have initiated quite a few cost improvement projects within the group globally. That also has had its effect. There's nothing one-off in this actually.

Ajith Rai: Please also note, during the course of last year, we have initiated quite a few cost improvement projects within the group globally. That also has had its effect. There's nothing one-off in this actually.

Speaker #3: So there is nothing one-off in this, actually. It's...

Speaker #4: Okay. So this margin.

[Analyst] (Simplii Financial): Okay. This margin.

[Analyst] (Simplii): Okay. This margin.

Ajith Kumar Rai: It's a pure improvement in margins. Yes.

Ajith Rai: It's a pure improvement in margins. Yes.

Speaker #3: This margin improvement in margins, yes.

Speaker #4: Okay. So this margin of 12, 12.5 percent which we earned this quarter—this is what should broadly sustain?

[Analyst] (Simplii Financial): Okay. This margin of 12% to 12.5% which we earned this quarter, this is what should broadly sustain.

[Analyst] (Simplii): Okay. This margin of 12% to 12.5% which we earned this quarter, this is what should broadly sustain.

Ajith Kumar Rai: We did mention about 10.5%, I think 10.5% to 12% was what we said in the beginning of the year. At this moment, it is at about 12%-plus, I will still stick to my guidance that we have given for GCM at whatever, 10% to 12%. Again, it depends upon the product mixes as we go forward. New projects are getting launched, we have to actually see how the margins are. That 10% to 12% at GCM is very much on the cards. Right now it is on the higher side, little bit.

Speaker #3: We did mention about 10 and a half—I think 10 to 10 and a half to 12 was what we said at the beginning of the year.

Ajith Rai: We did mention about 10.5%, I think 10.5% to 12% was what we said in the beginning of the year. At this moment, it is at about 12%-plus, I will still stick to my guidance that we have given for GCM at whatever, 10% to 12%. Again, it depends upon the product mixes as we go forward. New projects are getting launched, we have to actually see how the margins are. That 10% to 12% at GCM is very much on the cards. Right now it is on the higher side, little bit.

Speaker #3: At this moment, it is at about 12-plus percent. But I will still stick to my guidance that we have given for GCM at, whatever, you know, 10 to 12 percent.

Speaker #3: Again, it depends upon the product mix as we go forward. New projects are being launched, so we have to actually see how the margins are.

Speaker #3: That 10% to 12% at GCM is very much on the cards. Right now, it is on the higher side, a little bit, yeah.

Speaker #4: Okay. And the question was on the India business. See, I understand, you know, there was a raw material impact and the wage inflation. But typically, you know, do OEs—do they give the escalation from the wage impact? Or, you know, do you see any continual impact of that in coming quarters?

[Analyst] (Simplii Financial): Okay. The question was on the India business. I understand, there was a raw material impact and the wage inflation. Typically, do OEs give the escalation from the wage impact or do you see any continual impact of that in coming quarters?

[Analyst] (Simplii): Okay. The question was on the India business. I understand, there was a raw material impact and the wage inflation. Typically, do OEs give the escalation from the wage impact or do you see any continual impact of that in coming quarters?

Speaker #3: It's a, it's a, you know, honestly, you know, we have, in discussion with the customers—I think the pass-through of materials is not an issue.

Ajith Kumar Rai: Honestly, we are in discussion with the customers. I think the pass-through of materials is not an issue. Pass-through of wage increases, which has been significant, particularly in the northern region, is pretty significant. I think customers understand our view. Some of them have agreed to pay, some of them are still dilly-dallying. That's why I said it takes one or two quarters to convince this part of the increments. Having said that, we are also working on a lot of cost reduction within the organization. My view is that by Q2, Q3, let's say latest, we should be recovering most of that lost 100 basis points here and there on the wage.

Ajith Rai: Honestly, we are in discussion with the customers. I think the pass-through of materials is not an issue. Pass-through of wage increases, which has been significant, particularly in the northern region, is pretty significant. I think customers understand our view. Some of them have agreed to pay, some of them are still dilly-dallying. That's why I said it takes one or two quarters to convince this part of the increments. Having said that, we are also working on a lot of cost reduction within the organization. My view is that by Q2, Q3, let's say latest, we should be recovering most of that lost 100 basis points here and there on the wage.

Speaker #3: Pass-through of wage increases, which has been significant, particularly in the northern region, is pretty significant. I think customers understand our view. Some of them have agreed to pay.

Speaker #3: Some of them are still dilly-dallying. So that's why I said, you know, it takes one or two quarters to convince this part of the increments.

Speaker #3: But, having said that, we are also working on a lot of cost reduction within the organization. So, my view is that, you know, by Q2, Q3—let's say, latest—we should be recovering most of that, you know, lost 100 basis points here and there on the wage.

Speaker #4: Okay, that's all from my side. Thank you.

[Analyst] (Simplii Financial): Okay. That's also fine, sir. Thank you.

[Analyst] (Simplii): Okay. That's also fine, sir. Thank you.

Speaker #1: Thank you. The next question is from the line of Anubhav Mukherji from Percent Capital.

Operator: Thank you. The next question is from the line of Anubhav Mukherjee from Persimmon Capital.

Operator: Thank you. The next question is from the line of Anubhav Mukherjee from Prescient Capital.

Speaker #5: Hello. am I audible?

Anubhav Mukherjee: Hello. Am I audible?

Speaker #3: Yes.

Ajith Kumar Rai: Yes.

Ajith Rai: Yes.

Speaker #5: Sir, congrats on a great set of numbers, and thanks for the opportunity. So, my first question is to separately share the revenue contribution and EBITDA margin for FCSS in Q1?

Anubhav Mukherjee: Sir, congrats on a great set of numbers, and thanks for the opportunity.

Ajith Kumar Rai: Thank you.

Ajith Rai: Thank you.

Anubhav Mukherjee: My first question is, will it be possible to share separately the revenue contribution and EBITDA margin for SCS in Q1, sir?

Speaker #3: No. We very clearly said last year itself, at the end of the year, even when you acquired it, that the FCS will be separately disclosed for a year, till March this year.

Ajith Kumar Rai: No. We have very clearly said last year itself, end of the year, even when we acquired itself, that the SCS will be separately disclosed for a year till March this year, just to show how the progress we have done post-acquisition. That it will turn EBITDA positive. Once that is done, we have said that we are going to combine that in global cables and mechatronics. The reason is simple. They all work in tandem with each other. The names of SCS, LDC, Wescon, they all vanish from the scene. They are all acquisition entities, acquisition names. Today, GCM operates as a single entity as far as we are concerned. There are entities within GCM which will disclose their numbers at the end of the year, which you will get to see.

Ajith Rai: No. We have very clearly said last year itself, end of the year, even when we acquired itself, that the SCS will be separately disclosed for a year till March this year, just to show how the progress we have done post-acquisition. That it will turn EBITDA positive. Once that is done, we have said that we are going to combine that in global cables and mechatronics. The reason is simple. They all work in tandem with each other. The names of SCS, LDC, Wescon, they all vanish from the scene. They are all acquisition entities, acquisition names. Today, GCM operates as a single entity as far as we are concerned. There are entities within GCM which will disclose their numbers at the end of the year, which you will get to see.

Speaker #3: Just to show how the progress we have done post-acquisition. And once, and that it will turn, EBITDA positive. And once that is done, we have said that we are going to combine that in global cables and mechatronics.

Speaker #3: The reason is simple: they all work in tandem with each other. Now, the names of SCS, LDC, Wescon—all of them vanish from the scene.

Speaker #3: They are all acquisition entities—acquisition names. Today, GCM operates as a single entity as far as we are concerned. There are entities within GCM, which will disclose their numbers at the end of the year, which we will get to see.

Speaker #3: But as it has got no meaning, actually, because the way we have restructured—see, such a way that the LDC entity has been... Wescon entity has been shut down and merged with the LDC.

Ajith Kumar Rai: It has got no meaning actually, because the way we have restructured, it is such a way that a Wescon entity has been shut down and merged with the LDC. SCS in Germany has been restructured. The warehouse of SCS has moved to old LDC. There are so many things have happened. Separately disclosing has got no meaning anymore, which we explained earlier con calls also. It will be under GCM.

Ajith Rai: It has got no meaning actually, because the way we have restructured, it is such a way that a Wescon entity has been shut down and merged with the LDC. SCS in Germany has been restructured. The warehouse of SCS has moved to old LDC. There are so many things have happened. Separately disclosing has got no meaning anymore, which we explained earlier con calls also. It will be under GCM.

Speaker #3: You know, SCS in Germany has been restructured. You know, the warehouse of SCS has moved to the old LDC. There are so many things that have happened.

Speaker #3: So, separately disclosing has got no meaning anymore, which you have explained in earlier con calls also. So it will be under GCM.

Speaker #4: Got it, sir. And sir, the very strong revenue growth of 8.28% in GCM—can you share some perspective on what kind of growth you expect for the rest of the financial year?

Anubhav Mukherjee: Got it, sir. Sir, the very strong revenue growth of 28% in GCM. Can you share some perspective on what kind of growth you expect for the rest of the financial year in GCM year?

Speaker #4: In, in GCM, yeah.

Speaker #3: Let me also clarify a little bit. I think the second tranche of SCS Canada and China happened in May, so we didn't have the revenue of April and May of the second tranche of SCS last year.

Ajith Kumar Rai: Let me clarify a little bit. I think the second tranche of SCS Canada and China happened in May. We did not have the revenue of April and May of the second tranche of SCS last year. Actually optically, the number of 27%, I must state that is not entirely right. I think if you offset those two months' revenues, the growth is around 23% or so, actually, because the acquisition completed end of May last year. There's that slight variation is there. Having said that, it is still a very good growth. What we are seeing from at least a month's number that we see as of July, it is still very strong. August is a month where, of course, it is the same thing for last year also, is a month of holidays in Europe and most of the places.

Ajith Rai: Let me clarify a little bit. I think the second tranche of SCS Canada and China happened in May. We did not have the revenue of April and May of the second tranche of SCS last year. Actually optically, the number of 27%, I must state that is not entirely right. I think if you offset those two months' revenues, the growth is around 23% or so, actually, because the acquisition completed end of May last year. There's that slight variation is there. Having said that, it is still a very good growth. What we are seeing from at least a month's number that we see as of July, it is still very strong. August is a month where, of course, it is the same thing for last year also, is a month of holidays in Europe and most of the places.

Speaker #3: So actually, optically, the number of 27% is—I must state—that is not entirely right. I think if you offset those two months' revenues, the growth is around 23% or so, actually.

Speaker #3: Because, you know, the acquisition was completed at the end of May last year, so there's that slight variation. Having said that, it's still very good growth.

Speaker #3: What we are seeing from, you know, at least the numbers for the month that we see as of July, it is still very strong. August is a month where, of course, it's the same thing as last year also.

Speaker #3: It's a month of holidays in Europe and most other places. So, regarding revenues and whether revenue growth will be there or not compared to the first quarter, I do not know.

Ajith Kumar Rai: Whether the revenue growth will be there or not compared to Q1, I do not know. Compared to last year, still strong double-digit growth for this quarter also for GCM.

Ajith Rai: Whether the revenue growth will be there or not compared to Q1, I do not know. Compared to last year, still strong double-digit growth for this quarter also for GCM.

Speaker #3: But compared to, still strong double-digit growth for this quarter also for GCM.

Speaker #5: Okay, sir. So my last question is, the other income for Q1 compared to Q1 last financial year has seen a sharp drop. So can you...

Anubhav Mukherjee: Great, sir. Sir, my last question is, the other income for Q1 compared to Q1 last financial year.

Ajith Kumar Rai: Yes

Ajith Rai: Yes

Anubhav Mukherjee: That has seen a sharp drop. Can you explain the composition?

Speaker #3: Significant drop, yes.

Speaker #5: Yeah, the composition and, yeah.

Ajith Kumar Rai: Yeah, I know.

Ajith Rai: Yeah, I know.

Speaker #3: Yeah. The compositions are, there are multiple. I think there are so many things, but I will summarize this way. There are a few elements in it.

Anubhav Mukherjee: Yeah.

Ajith Kumar Rai: Yeah. I think there are so many things, but I will summarize this way. There are few elements in it. One is restatement of our, let's say, loans across our divisions. It gets restated. We have quarter-end creditors and debtors, which is in different currencies. That gets restated. There is also forward covers that we have made. There are certain portion of the forward cover, which does not go through the balance sheet. It comes into the P&L. There is also some other incomes that accrue. For example, last year we had some subsidy came into Morocco, which is not there this year. These four, five elements, if you see last year, from the beginning of last year to end of the last year, the rupee-dollar, rupee-euro, all was very positive in terms of change.

Ajith Rai: Yeah. I think there are so many things, but I will summarize this way. There are few elements in it. One is restatement of our, let's say, loans across our divisions. It gets restated. We have quarter-end creditors and debtors, which is in different currencies. That gets restated. There is also forward covers that we have made. There are certain portion of the forward cover, which does not go through the balance sheet. It comes into the P&L. There is also some other incomes that accrue. For example, last year we had some subsidy came into Morocco, which is not there this year. These four, five elements, if you see last year, from the beginning of last year to end of the last year, the rupee-dollar, rupee-euro, all was very positive in terms of change.

Speaker #3: One is the restatement of our, let’s say, loans across our divisions. It gets restated. We have, you know, quarter-end creditors and debtors, which are in different, different currencies.

Speaker #3: That gets restated. There are also forward covers that we have made. There is a certain portion of the forward cover which does not go through the balance sheet.

Speaker #3: It comes into the, you know, P&L. And there are also some other incomes that accrue. For example, last year, we had some subsidy come into Morocco, which is not there this year.

Speaker #3: So these four, five elements if you see last year from the beginning of last year to end of the last year, the, you know, dollar, in rupee dollar, rupee euro, all was very positive, in, in terms of change.

Speaker #3: That's why you saw a large number at the end of last year. Since March, it has been more or less stable, so that fluctuation isn't there.

Ajith Kumar Rai: That's why you saw a large number end of last year. Since March now, it is more or less stable. That fluctuation isn't there. There is no delta there. That's why that amount for the Q1 is much smaller.

Ajith Rai: That's why you saw a large number end of last year. Since March now, it is more or less stable. That fluctuation isn't there. There is no delta there. That's why that amount for the Q1 is much smaller.

Speaker #3: So there is no delta there. That's why that amount for the first quarter is much smaller.

Speaker #5: get that. Thanks for the explanation. So my final question, before I get back in the queue, sir, in the SCDE division, can you, share some light on, like, like, what is driving the growth and is it like, mainly driven by the digital cluster business and, what kind of new business news are we getting in that?

Anubhav Mukherjee: Get that. Thanks for the explanation. Sir, my final question before I get back in the queue. Sir, in the SED division, can you share some light on what is driving the growth, is it mainly driven by the digital cluster business, what kind of new business wins are we getting in that?

Speaker #3: Mohan, will you answer that question?

Ajith Kumar Rai: Mohan, will you answer that question?

Ajith Rai: Mohan, will you answer that question?

Speaker #6: Sure. Well, we need to break it down into three major product groups. One, I would call it display systems—that is, instrument clusters.

N. S. Mohan: Sure. Well, we need to break it down into three major product groups. One, I would call it as display systems. That is instrument clusters. Second one, I would call it as actuators and sensors. The third one specifically within sensor, it would be the throttle position sensor or TPS as we call it. On all the three counts, we are seeing growth. We are seeing growth happening. It is not just across one customer. We have got couple of customers. In fact, if there is one problem, and it's a good problem to have, this month and next month is multiple launches. I am facing about six launches in my plant with various customers. Therefore, is it a problem? The answer is yes, but it's a good problem to have. Are we gaining traction on all these product groups?

Mohan Nagamangala: Sure. Well, we need to break it down into three major product groups. One, I would call it as display systems. That is instrument clusters. Second one, I would call it as actuators and sensors. The third one specifically within sensor, it would be the throttle position sensor or TPS as we call it. On all the three counts, we are seeing growth. We are seeing growth happening. It is not just across one customer. We have got couple of customers. In fact, if there is one problem, and it's a good problem to have, this month and next month is multiple launches. I am facing about six launches in my plant with various customers. Therefore, is it a problem? The answer is yes, but it's a good problem to have. Are we gaining traction on all these product groups?

Speaker #6: The second one I would call actuators and sensors, and the third one specifically, you know, within sensors, would be the throttle position sensor, or TPS, as we call it.

Speaker #6: So on all three counts, we are seeing growth. We are seeing growth happening, and it is not just across one customer—we have got a couple of customers.

Speaker #6: In fact, if there is one problem—and it's a good problem to have—this month and next month, it's multiple launches. I am facing about six launches.

Speaker #6: In my plant, with various customers, therefore, is it a problem? The answer is yes, but it's a good problem to have. So, are we gaining traction on all these product groups?

Speaker #6: The answer is yes, with multiple customers.

N. S. Mohan: The answer is yes, with multiple customers.

Mohan Nagamangala: The answer is yes, with multiple customers.

Speaker #3: And to add to what Mohan said, just as a matter of general information, I think July has been an exceptionally good month at the Electronics Division, clocking the highest sales.

Ajith Kumar Rai: To add to what Mohan said, just as a matter of general information, I think July has been an exceptionally good month at electronics division, clocking the highest sales. I think the trend seems to be continuing at the moment.

Ajith Rai: To add to what Mohan said, just as a matter of general information, I think July has been an exceptionally good month at electronics division, clocking the highest sales. I think the trend seems to be continuing at the moment.

Speaker #3: And I think the trend seems to be continuing at the moment.

Speaker #5: Okay, thanks. That's all from me, sir.

Anubhav Mukherjee: Okay. Thanks. That's all from my side.

Speaker #3: Thank you.

Ajith Kumar Rai: Thank you.

Ajith Rai: Thank you.

Speaker #1: Thank you. The next question is from the line of Rakesh from Axis AMC. Please proceed.

Operator: Thank you. The next question is on the line of Rakesh from Axis AMC. Please proceed.

Speaker #7: yeah, hi. congratulations, sir, on a good set of number. I think some good delivery from last four to eight quarters, what the efforts we have taken.

[Analyst] (Axis AMC): Yeah, hi. Congratulations, sir, on a good set of numbers. I think some good delivery from last four to eight quarters, what efforts we have taken. Vinod, looking at your presentation, the FAQs clearly highlight one thing, that our product portfolio today does not cater the EV power trend in a very significant way. While the market is moving in a direction, at least in two-wheeler, three-wheeler, MPVs, where currently a large part of the growth is being driven over there. How is the management thinking in terms of catering to this journey of EV right now? Organically, how are we placed? If I've missed out any of your products which are not there in presentation, and how should we think about our participation in this growth phase of EV?

Rakesh Jain: Yeah, hi. Congratulations, sir, on a good set of numbers. I think some good delivery from last four to eight quarters, what efforts we have taken. Vinod, looking at your presentation, the FAQs clearly highlight one thing, that our product portfolio today does not cater the EV power trend in a very significant way. While the market is moving in a direction, at least in two-wheeler, three-wheeler, MPVs, where currently a large part of the growth is being driven over there. How is the management thinking in terms of catering to this journey of EV right now? Organically, how are we placed? If I've missed out any of your products which are not there in presentation, and how should we think about our participation in this growth phase of EV?

Speaker #7: you know, looking at your presentation, the FAQs, clearly, you know, highlight one thing, that the, our, our pre our product portfolio today do not cater the EV power train in a very, significant way.

Speaker #7: While the market is moving in a direction—at least into the three-wheeler MPVs—currently a large part of the growth is being driven over there.

Speaker #7: So, you know, how is the management thinking in terms of, you know, catering to this, this journey of EV right now? I mean, organically, you know, how are we placed?

Speaker #7: And, I mean, if I missed out any of your products which are not there in the presentation, how should we, you know, think about our participation in this growth phase of EV?

Speaker #3: I will ask Akhilesh to answer this. Akhilesh, on our EV journey and what we are doing, and what are the products that are going in.

Ajith Kumar Rai: I will ask Akhilesh to answer this. Akhilesh, on our EV journey and what we are doing and what are the products that's going in.

Ajith Rai: I will ask Akhilesh to answer this. Akhilesh, on our EV journey and what we are doing and what are the products that's going in.

Speaker #2: Yeah, sure. So, you know, of course, we are very much and very deeply involved with EV, sub-EV, with many EV customers. I would say, you know, EV has been a great, great driver of our growth, especially at SCD, but also in our ICM division.

Akhilesh Rai: Yes, sure. Of course, we are very much and very deeply involved with many EV customers. I would say EV has been a great driver of our growth, especially at SED, but also in our ICM division. I understand if your question is just around the drivetrain, we don't specifically look at the drivetrain itself. We look at very agnostic products that will support EVs and non-EV programs. Please understand that just like a drivetrain makes a vehicle go forward, we also need to stop that vehicle. Our focus has been on the stopping side and looking at braking as a key technology going forward. Because EVs, just like the drivetrain, have changed, also the requirement of the braking is changing. We are in the right place at the right time with lot of good technologies in braking to support this change.

Speaker #2: So, you know, I understand where—if your question is just around the drivetrain, we don't specifically look at the drivetrain itself.

Speaker #2: But we look at very agnostic products that will support EV and non-EV programs. Please understand that, you know, just like an EV has to have a drivetrain that makes the vehicle go forward, we also need to stop that vehicle.

Speaker #2: So, our focus has been on the stopping side and looking at braking as a key technology going forward. Because EVs—not just the drivetrain is changing—also the requirement of the braking is changing.

Speaker #2: And we are in the right place at the right time with a lot of good technologies in braking to support this change. And I think that's why, for example, Ather has given us an innovation award, and they gave us their key braking system products.

Akhilesh Rai: I think that's why, for example, Ather has given an innovation award, and they gave us their key braking system products. It is because of this kind of knowledge and technology that we're building, and I think Ather, as you know, is a renowned technology name in the EV industry in India. Similarly, we supply to all the new age EV brands for some of our products. It depends on whether it's clusters or actuators or braking products or even our core cable product. We're still supplying to practically all the EV players in India.

Speaker #2: It is because of this kind of knowledge and technology that we are building. And I think Ather is, you know, is a well-renowned technology name in the EV industry in India.

Speaker #2: And similarly, we supply to all the new-age EV brands for some of our products. I mean, it depends on whether it's clusters or actuators or braking products, or even our core cable product—we are still supplying to practically all the EV players in India.

Speaker #7: Sure. Can you help us understand how the content of braking or actuation products would have, or how different it is for EVs versus ICE, in terms of whichever customers we are catering to?

[Analyst] (Axis AMC): Sure. Can you help us, how different it is for EVs versus ICE in whatever customers we are catering to?

Rakesh Jain: Sure. Can you help us, how different it is for EVs versus ICE in whatever customers we are catering to?

Speaker #2: So the content per vehicle, for the most part is the same in terms of EV versus ICE. But because, you know, we're going from, you know, our core product of 100 rupee, you know, cable to a product of braking, which could be anything from, you know, 400 rupee CBS to, you know, 1,500 rupee, 2,000 rupee brake systems.

Akhilesh Rai: The content per vehicle, for the most part, is the same in terms of EV versus ICE. Because we're going from our core product of an INR 100 cable to a product of braking, which could be anything from INR 400 CBS to INR 1,500, INR 2,000 brake systems, or from speedometer cables to digital clusters, which can again span from INR 700, INR 800 to INR 7,000, depending on the cluster. Each of our product lines are increasing by at least 3 to 4, 5x in terms of price that we sell to our customers. In terms of whether EV and ICE, there is no real difference. EV or ICE could pick any of these products going forward.

Speaker #2: Or from speedometer cables to digital clusters, which can again span from, you know, ₹700–800 to ₹7,000, depending on the cluster. So, you know, each of our product lines is increasing by at least three to four, even five times in terms of the price that we sell to our customers.

Speaker #2: But in terms of whether EV or ICE, there is no real difference. I mean, you know, these EV or ICE could pick any of these products, going forward.

Speaker #3: I think just to add on what Akhilesh has said, I think it's important to understand between ICM and SCD, both are in the, you know, significantly in the two-wheeler, kind of space.

Ajith Kumar Rai: I think just to add on what Akhilesh has said, it's important to understand between ICM and SED, both are significantly in the two-wheeler kind of space. If you add them together, the kind of growth we had is ahead of the automotive industry growth. What I'm trying to say is that, a couple of years ago, we have said that some part of our cable portfolio may become or changed over to something else. At the same time, we have said that our content per vehicle will increase. We still hold the same view, whether it is ICE, whether it is EV, our overall content in the two-wheeler per vehicle, it's only increasing as we see it now.

Ajith Rai: I think just to add on what Akhilesh has said, it's important to understand between ICM and SED, both are significantly in the two-wheeler kind of space. If you add them together, the kind of growth we had is ahead of the automotive industry growth. What I'm trying to say is that, a couple of years ago, we have said that some part of our cable portfolio may become or changed over to something else. At the same time, we have said that our content per vehicle will increase. We still hold the same view, whether it is ICE, whether it is EV, our overall content in the two-wheeler per vehicle, it's only increasing as we see it now.

Speaker #3: if you add them together, the kind of growth we had is ahead of the automotive industry growth. So what I'm trying to say is that, you know, you know, E a couple of years ago, we have sort of said that some part of our cable portfolio may become or changed over to something else.

Speaker #3: But at the same time, you have said our content per vehicle will increase. We still hold the same view, whether it is ICE or whether it is EV.

Speaker #3: Our overall content in the two-wheeler, per vehicle, I think it's only increasing as we see it now.

Speaker #7: Great, great. That was helpful. I'll fall back in the queue. Thank you.

[Analyst] (Axis AMC): Great. That was helpful. I'll fall back in the queue. Thank you.

Rakesh Jain: Great. That was helpful. I'll fall back in the queue. Thank you.

Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that 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 is on the line of Gokul Maheshwari from Orega Capital. Please proceed.

Speaker #1: The next question is from the line of Gokul Maheshwari from Auriga Capital. Please proceed.

Speaker #4: Yeah, thank you for the opportunity. I just have a couple of questions. So, one is on the GCM business. Is there an element of forex which would have come in with respect to enhancing your growth rates?

Gokul Maheshwari: Thank you for the opportunity. I just have couple of questions. One is on the GCM business. Is there an element of Forex which would have come in with respect to enhancing your growth rates? If you could just provide what could be a constant currency kind of growth rate, which we would have experienced in Q1?

Speaker #4: Or, if you could just provide what could be a constant currency kind of growth rate which we would have experienced in Q1?

Speaker #2: Yeah, you know, as you know, Gokul, we have not been announcing the constant currency rate for all these because there are so many multi-currencies involved.

Ajith Kumar Rai: As you know, Gokul, we have not been announcing the constant currency rate for all this because there's so many multi currencies involved. Yeah, there would be some, I would not deny that. In the last quarter, at least, there has not been much change. No significant change in the rates. Whereas, I think during the course of last year, there has been an increase in dollar rupee conversion significantly. I think now it has been around whatever 95, 96 has been more or less stable. I think that would be the rate that has been used.

Ajith Rai: As you know, Gokul, we have not been announcing the constant currency rate for all this because there's so many multi currencies involved. Yeah, there would be some, I would not deny that. In the last quarter, at least, there has not been much change. No significant change in the rates. Whereas, I think during the course of last year, there has been an increase in dollar rupee conversion significantly. I think now it has been around whatever 95, 96 has been more or less stable. I think that would be the rate that has been used.

Speaker #2: So yeah, there would be some. I would not deny that because, you know, but in the last quarter, at least, there has not been much change in the—no significant change in the rates.

Speaker #2: Whereas I think during the course of last year, there has been an increase in, you know, dollar-rupee conversion significantly. But I think now it has been, you know, around, whatever, 95, 96, and has been more or less stable.

Speaker #2: I think that would be the rate at which it has been used, that has been used.

Speaker #4: Sure. And did any tariff recoveries happen in this quarter?

Gokul Maheshwari: Fair. Any tariff recoveries happen in this quarter?

Speaker #2: Yeah, please understand, tariff recovery is a double-edged sword. If the customer has given the tariff relief to us, we'll have to give it back to them.

Ajith Kumar Rai: Yeah. Please understand, tariff recovery is a double-edged sword. If the customer has given the tariff relief to us, we'll have to give it back to them. If they have not given it, that is the only thing that we can recover. As we have always said, most of it has been passed on in our last year's press releases. Most of us that has come back also needs to be going back. There will be some delta, if you ask me. We always like to hold on to something, but that is something it is difficult to quantify it here, but that would not be very significant.

Ajith Rai: Yeah. Please understand, tariff recovery is a double-edged sword. If the customer has given the tariff relief to us, we'll have to give it back to them. If they have not given it, that is the only thing that we can recover. As we have always said, most of it has been passed on in our last year's press releases. Most of us that has come back also needs to be going back. There will be some delta, if you ask me. We always like to hold on to something, but that is something it is difficult to quantify it here, but that would not be very significant.

Speaker #2: And if they have not given it, that is the only thing that we can recover. So, as we have always said, most of it has been passed on in our last year's—what is that?

Speaker #2: Our press releases—most of us that have come back also need to be going back. There will be some delta. If you ask me, I mean, we always like to hold on to something.

Speaker #2: But, you know, that is something, you know, it is difficult to quantify here. But that would not be very significant.

Speaker #1: Okay.

Speaker #4: Just lastly, only, domestic business. So, this year, this quarter, we grew 20%, which is fantastic. If you could just give us sort of a flavor with respect to, the, the broader breakup between the core traditional business in terms of the cables, and how this is how newer products within this segment are actually helping driving the growth.

Gokul Maheshwari: Okay, great. Just lastly on the domestic business. This quarter we grew 20%, which is fantastic. If you could just give us sort of a flavor with respect to the broader breakup between the core traditional business in terms of the cables and how newer products within this segment are actually helping driving the growth. I'm not talking specifically of the numbers, but just more qualitative comment that how the new products are really contributing in ensuring that the growth rate is now matching with the sector growth rates.

Speaker #4: I'm not talking specifically about the numbers, but just making a more qualitative comment on how the new products are really contributing to ensuring that the growth rate is now matching with the sector growth rates.

Speaker #2: Yeah, I think in this, Gokul, I would say the other products, the non-cable or beyond cable products, are basically some of these braking products like CBS and, you know, some of those related products.

Ajith Kumar Rai: I think in this, Gokul, I would say, the other products, the non-cable or beyond cable products are basically some of these braking products like CBS and some of those related products. Although they have grown very well, as Mohan has sort of mentioned in his commentary, but they're still a low base. Will that would have given it, let's say, a couple of percentage of traction to ICM? The answer is yes, but it is not beyond that. That's what I am trying to say. It's still a small base. Let's see how the whole year goes. Maybe next year we will segregate braking separately out or whenever the time is right, then I think we will also get to know more clearly that. The base is still small. They are growing at a much higher rates, yes.

Ajith Rai: I think in this, Gokul, I would say, the other products, the non-cable or beyond cable products are basically some of these braking products like CBS and some of those related products. Although they have grown very well, as Mohan has sort of mentioned in his commentary, but they're still a low base. Will that would have given it, let's say, a couple of percentage of traction to ICM? The answer is yes, but it is not beyond that. That's what I am trying to say. It's still a small base. Let's see how the whole year goes. Maybe next year we will segregate braking separately out or whenever the time is right, then I think we will also get to know more clearly that. The base is still small. They are growing at a much higher rates, yes.

Speaker #2: That is, although they have grown very good, very well as Mohan has sort of mentioned in his commentary, there is still a small, you know, low base.

Speaker #2: So will there have been, let's say, a couple of percentage points of traction to ICM? The answer is yes, but it is not beyond that.

Speaker #2: That's what I'm trying to say. So, it's still a small base. I hope—let's see how the whole year goes. Maybe next year we will segregate, break it separately out, or whenever the time is right.

Speaker #2: Then I think, you know, we'll also get to know more clearly that. But the base is still small, but they are growing at much higher rates.

Speaker #2: Yes.

Speaker #4: Okay. Okay, great. Thank you so much, and all the best.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question is from the line of Nishita Shankalesha from Sapphire Capital. Please proceed.

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

Ajith Kumar Rai: Thank you.

Ajith Rai: Thank you.

Operator: Thank you. The next question is from the line of Nishita Shanklesha from Sapphire Capital. Please proceed.

Speaker #7: hello. Am I audible?

Speaker #3: Yes.

Speaker #7: Yeah, so I'm just attending the call for the first time and reading about the company also for the first time. So, if you could just reiterate the guidance that you've given earlier, that would be great.

Nishita Shanklesha: Hello, am I audible?

Ajith Kumar Rai: Yes.

Ajith Rai: Yes.

Nishita Shanklesha: Yeah. I am just attending the call for the first time. I am learning about the company for the first time. If you could just reiterate the guidance that you have given earlier, that would be great.

Speaker #3: Okay. What we did was, in May, after finalizing the Q4 and the year-on-year—I mean, yeah, annual—numbers, we said that on a consolidated basis, we will grow in double digits.

Ajith Kumar Rai: Okay. What we did was in May, after finalizing the Q4 and the annual numbers, we have said that on a consolidated basis, we will grow in double digits and that the EBITDA margin range would be, these are all operational numbers we are talking, 12% to 13.5%. We have said the global cable and mechatronics will also have a double-digit growth with the EBITDA margin operationally at between 10% to 12%. ICM, we have said around the last year's number, which is I think about 5.15%. PLE, that is Phoenix Lighting and Electricals, we have again said around last year, which is about 12%.

Ajith Rai: Okay. What we did was in May, after finalizing the Q4 and the annual numbers, we have said that on a consolidated basis, we will grow in double digits and that the EBITDA margin range would be, these are all operational numbers we are talking, 12% to 13.5%. We have said the global cable and mechatronics will also have a double-digit growth with the EBITDA margin operationally at between 10% to 12%. ICM, we have said around the last year's number, which is I think about 5.15%. PLE, that is Phoenix Lighting and Electricals, we have again said around last year, which is about 12%. ED, we have said again in line with the last year, which was touching 10%. We are aiming to do the 10% again. These are the guidance that we have given last year for the current year.

Speaker #3: And that the EBITDA margin range would be—these are all operational numbers we are talking about—12 to 13.5%. We have said the global, cable, and mechatronics will also have a double-digit growth, with the EBITDA margin operationally between 10 to 12%.

Speaker #3: ICM, we have said, is around last year's number, which is, I think, about 5-15%. PLD, that is Phoenix Lighting and Electricals, you know, we have again said is around last year, which is about 12%.

Speaker #3: And SED, we have said again, in line with last year, which was touching 10%. So basically, we are aiming to do the 10% again.

Nishita Shanklesha: Yeah.

Ajith Kumar Rai: ED, we have said again in line with the last year, which was touching 10%. We are aiming to do the 10% again. These are the guidance that we have given last year for the current year.

Speaker #3: These are the guidance that we have given last year for the current year.

Speaker #7: Okay. Okay. Understood. Yes, thank you so much.

Speaker #3: Thank you.

Speaker #1: Thank you. The next question is from the line of Purnima from Kevin Family Office. Please proceed.

Nishita Shanklesha: Okay. Understood. Yes. Thank you so much.

Ajith Kumar Rai: Thank you.

Ajith Rai: Thank you.

Operator: Thank you. The next question is from the line of Purnima from Karan Family Office. Please proceed.

Speaker #4: Hello. Am I audible?

Speaker #3: Yes.

Speaker #4: Yes. Good morning.

Purnima: Am I audible?

[Analyst] (Karen Family Office): Am I audible?

Speaker #3: Can you please talk a little louder? I think you're a bit soft. Sorry.

Ajith Kumar Rai: Yes.

Ajith Rai: Yes.

Purnima: Yeah. Good morning, sir.

[Analyst] (Karen Family Office): Yeah. Good morning, sir.

Speaker #4: Okay, so can you tell me the revenue generated from the LED retrofitting business, as in financial year '26? And is it profitable?

Ajith Kumar Rai: Can you please talk little louder? I think you're a little weak, sorry.

Ajith Rai: Can you please talk little louder? I think you're a little weak, sorry.

Purnima: Okay. Can you tell me the revenue generated from LED retrofitting business as in financial year 2026?

[Analyst] (Karen Family Office): Okay. Can you tell me the revenue generated from LED retrofitting business as in financial year 2026?

Speaker #3: I can't hear you properly, Purnima. Sorry, I'm not able to get your question properly. Not very good.

Ajith Kumar Rai: I can't hear you properly, Purnima. Sorry. I'm not able to get your question properly.

Ajith Rai: I can't hear you properly, Purnima. Sorry. I'm not able to get your question properly.

Speaker #4: is it better?

Speaker #3: Okay, go ahead with your question. Let's see.

Purnima: Can you hear me now?

[Analyst] (Karen Family Office): Can you hear me now?

Ajith Kumar Rai: Not very good.

Ajith Rai: Not very good.

Purnima: Is it better?

[Analyst] (Karen Family Office): Is it better?

Speaker #4: I wanted to ask, what is the revenue number for the LED retrofitting business as in financial year '26? And is it profitable at a dividend pack level?

Ajith Kumar Rai: Okay, go ahead with your question. Let's see.

Ajith Rai: Okay, go ahead with your question. Let's see.

Purnima: I wanted to ask, what is the revenue number for LED retrofitting business as in financial year 2026? And is it profitable on EBITDA level?

[Analyst] (Karen Family Office): I wanted to ask, what is the revenue number for LED retrofitting business as in financial year 2026? And is it profitable on EBITDA level?

Speaker #3: LED retrofit, I—I don't think we give any separate number for that. I don't think it is large enough to disclose. But Mohan, do you have any idea on what is retrofit? General comment.

Ajith Kumar Rai: LED retrofit, I don't think we give any separate number for this. I don't think it is large enough to disclose. Mohan, do you have any idea on what is the LED status on our retrofit? General comment, maybe.

Ajith Rai: LED retrofit, I don't think we give any separate number for this. I don't think it is large enough to disclose. Mohan, do you have any idea on what is the LED status on our retrofit? General comment, maybe.

Speaker #6: No, I don't have specific information. I do know we track what we call it as 'beyond halogen.' But specifically, is it such a significant number that we can disclose?

N. S. Mohan: No, I don't have specific information. I do know we track what we call it as beyond halogen. Specifically, is it such a significant number that we can disclose? The answer is no.

Mohan Nagamangala: No, I don't have specific information. I do know we track what we call it as beyond halogen. Specifically, is it such a significant number that we can disclose? The answer is no.

Speaker #6: The answer is no.

Speaker #3: Okay. We don't have that.

Speaker #4: Okay. And is that segment profitable? Do you have any idea about that?

Ajith Kumar Rai: Yeah. We don't have that number.

Ajith Rai: Yeah. We don't have that number.

Speaker #3: It is profitable because the point is, yeah. Go ahead, Mohan. You can comment on the retrofit generally, maybe. Yeah.

Purnima: Okay. Is that segment profitable? Do you have any idea about that?

[Analyst] (Karen Family Office): Okay. Is that segment profitable? Do you have any idea about that?

Speaker #6: Yeah. So that I can confirm. Yes. there are there is quite an amount of localization that we have done. There is some amount of imports that happen, but there is quite an amount of localization that we have done.

Ajith Kumar Rai: It is profitable because. Go ahead, Mohan. You can comment on the retrofit generally, maybe.

Ajith Rai: It is profitable because. Go ahead, Mohan. You can comment on the retrofit generally, maybe.

N. S. Mohan: That I can confirm. Yes.

Mohan Nagamangala: That I can confirm. Yes. There is quite an amount of localization that we have done. There is some amount of imports that happen, but there is quite an amount of localization that we have done. Again, when you say LED, you have to understand that we are doing what we call it as a drop-in solution, a retrofit drop-in solution. Therefore, this almost looks like, in the way it is handled, more like a halogen, but it is an LED-operated lamp or a bulb. That's how we are doing it. In terms of profitability, the answer is definitely yes.

Ajith Kumar Rai: There is quite an amount of localization that we have done. There is some amount of imports that happen, but there is quite an amount of localization that we have done. Again, when you say LED, you have to understand that we are doing what we call it as a drop-in solution, a retrofit drop-in solution. Therefore, this almost looks like, in the way it is handled, more like a halogen, but it is an LED-operated lamp or a bulb. That's how we are doing it. In terms of profitability, the answer is definitely yes.

Speaker #6: And again, when you say LED, you have to understand that we are doing what we call a drop-in solution—a retrofit drop-in solution.

Speaker #6: Therefore, this almost looks like, in the way it is handled, more like halogen. But it is an LED-operated, you know, lamp or bulb.

Speaker #6: So that's how we are doing it. So, in terms of profitability, the answer is definitely yes.

Speaker #4: Okay, thanks. Thank you. That was amazing.

Speaker #1: Thank you. The next question is from the line of Janice from Oregon. Please proceed.

Purnima: Okay, thanks. Thank you. That was on my side.

[Analyst] (Karen Family Office): Okay, thanks. Thank you. That was on my side.

Operator: Thank you. The next question is on the line of Jinil from Auriga. Please proceed.

Speaker #5: good morning, Dean. And, congratulations for a good set of numbers and execution, super G team. So almost a year back, Ajit sir, I, I there was a time when you guys had given, you know, some of the order wins initially and said that, okay, you know, you, you kind of wanted to show it one time.

Jinil: Good morning, team, and congratulations for a good set of numbers and execution, Suprajit team. Almost a year back, Ajith, sir, there was a time when you guys had given some of the order wins initially and said that, okay, you kind of wanted to show it one time. Just when I look back in the last four quarters with the SED Division, we've been in that INR 40, INR 45 crores of revenues kind of run rate. We've kind of consolidated there. Yes, there was a slight uptick in this quarter, and EBITDA obviously have been in that INR 4-plus crores on a run rate basis. Just trying to understand that earlier when these order wins were given, one thing that I want to understand is the execution and timeline of how that flows through.

Jinal Sheth: Good morning, team, and congratulations for a good set of numbers and execution, Suprajit team. Almost a year back, Ajith, sir, there was a time when you guys had given some of the order wins initially and said that, okay, you kind of wanted to show it one time. Just when I look back in the last four quarters with the SED Division, we've been in that INR 40, INR 45 crores of revenues kind of run rate. We've kind of consolidated there. Yes, there was a slight uptick in this quarter, and EBITDA obviously have been in that INR 4-plus crores on a run rate basis. Just trying to understand that earlier when these order wins were given, one thing that I want to understand is the execution and timeline of how that flows through.

Speaker #5: So just when I look back in the last four quarters with the SED division, we are kind of, you know, we've been in that 40, 45 cross of revenues kind of run rate.

Speaker #5: We've, you know, we've been kind of consolidated there. Yes, there was a slight uptick in this quarter. And EBITDA has obviously been in that four-plus crores on our run rate basis.

Speaker #5: So just to kind of understand, earlier when these order wins were given, one thing that I want to understand is the execution and timeline of how that flows through.

Speaker #5: Because in this quarter, you mentioned that there have been certain wins from the US and the Chinese OE. So, in that sense, will that kind of show up? And when you speak of order wins, what timelines are we actually talking about?

Jinil: Because in this quarter you mentioned that there's been certain wins from the US and the Chinese OEM. In that sense, will that kind of show up? When you speak of order wins, what timelines are we certainly talking about, and the kind of quantum over the next two, three years in terms of contribution to revenues?

Jinal Sheth: Because in this quarter you mentioned that there's been certain wins from the US and the Chinese OEM. In that sense, will that kind of show up? When you speak of order wins, what timelines are we certainly talking about, and the kind of quantum over the next two, three years in terms of contribution to revenues?

Speaker #5: And the kind of quantum over the next two to three years, in terms of contribution to revenues?

Speaker #3: This is for GCM you're talking about? Because order wins in the US and China are mostly on GCM. You started talking about the Electronics Division, I think.

Ajith Kumar Rai: This is for GCM you're talking?

Ajith Rai: This is for GCM you're talking? Order wins in US, China is mostly on GCM. You started talking about the Electronics Division, I think.

Speaker #5: So I'm in, in effect, I'm talking about both because one thing I refer to is that a year back did you, you know, you mentioned about order wins across, Yeah.

Ajith Kumar Rai: Order wins in US, China is mostly on GCM. You started talking about the Electronics Division, I think.

Jinil: In effect, I'm talking about both because one thing I referred to is that a year back you mentioned about order wins.

Jinal Sheth: In effect, I'm talking about both because one thing I referred to is that a year back you mentioned about order wins.

Speaker #5: That, plus the factor that I'm talking about the US and the Chinese OE as well.

Speaker #3: Yeah. The what's happening is that, you know, what how we are growing so much when the global business is at 0% growth, even if, if you're, you know, adjusting for the two months, you know, of that, small, last year's between SCS, China, and Canada, you know, we are growing at, 22%, 24%.

Ajith Kumar Rai: Yes

Ajith Rai: Yes

Jinil: Across. Yeah.

Jinal Sheth: Across. Yeah.

Ajith Kumar Rai: Yeah. Correct

Ajith Rai: Yeah. Correct

Jinil: the fact that I'm talking about the US and the Chinese OE as well.

Jinal Sheth: the fact that I'm talking about the US and the Chinese OE as well.

Ajith Kumar Rai: Yeah. What's happening is how we are growing so much when the global business is at 0% growth. Even if you're adjusting for that two months of that small last year between SCS, China, and Canada, we are growing at 22%, 24%. How is that possible when the global business is at 0%? That is because of those orders that we have won a year ago or 18 months ago, is now starting to come into production, number one. At the same time, some of the businesses that we have been producing also going out of business. There are two things happening. One is some of the old contracts are going away, but the new contracts are so much more that the growth has been at that particular percentage, which we are expecting to continue.

Ajith Rai: Yeah. What's happening is how we are growing so much when the global business is at 0% growth. Even if you're adjusting for that two months of that small last year between SCS, China, and Canada, we are growing at 22%, 24%. How is that possible when the global business is at 0%? That is because of those orders that we have won a year ago or 18 months ago, is now starting to come into production, number one. At the same time, some of the businesses that we have been producing also going out of business. There are two things happening. One is some of the old contracts are going away, but the new contracts are so much more that the growth has been at that particular percentage, which we are expecting to continue.

Speaker #3: How is that possible when the global business is at 0%? So, that is because those orders that we had won a year ago, or 18 months ago, are now starting to come into production, number one.

Speaker #3: At the same time, some of the businesses that we have been producing are also going out of business. So there are two things happening. One is that some of the old contracts are going away, but the new contracts are so much more that the growth has been at that particular percentage, which we are expecting to continue.

Speaker #3: So, it's a solid performance, and that also, along with the restructuring and, you know, more competitive buying, and, you know, new contracts are coming at current prices, all of that has added to the margin improvement.

Ajith Kumar Rai: It's a solid performance, and that also along with the restructuring and most competitive buying and new contracts are coming at current prices. That all has added to the margin improvement. That's why margins are more than doubled from the last year same quarter time. That is where the whole color is changing, actually. I don't know whether that's what you are expecting as an answer or.

Ajith Rai: It's a solid performance, and that also along with the restructuring and most competitive buying and new contracts are coming at current prices. That all has added to the margin improvement. That's why margins are more than doubled from the last year same quarter time. That is where the whole color is changing, actually. I don't know whether that's what you are expecting as an answer or.

Speaker #3: That's why its margins have more than doubled from the last year, same quarter time. So that is where the whole thing, the whole color, is changing actually.

Speaker #3: I don't know whether that's what you were expecting as an answer, or whether I got the question right.

Speaker #5: So to add to that, so when you speak about the order wins with the US and the Chinese OE, is there a possibility to kind of give a perspective that over the next two, three years, how what is the opportunity there in terms of any size or any numbers that you can share broadly?

Jinil: Yeah

Jinal Sheth: Yeah

Ajith Kumar Rai: whether I got the question right.

Ajith Rai: whether I got the question right.

Jinil: To add to that, when you speak about the order wins with the US and the Chinese OE, is there a possibility to kind of give a perspective that over the next two, three years, what is the opportunity there in terms of any size or any numbers that you can share broadly?

Jinal Sheth: To add to that, when you speak about the order wins with the US and the Chinese OE, is there a possibility to kind of give a perspective that over the next two, three years, what is the opportunity there in terms of any size or any numbers that you can share broadly?

Speaker #3: See, I think in terms of the size of the business, we have made a press release, I think a month ago, particularly about three large contracts.

Speaker #3: I don't know whether you've seen it, but that was a very important announcement we have made, which—I don't know whether I got that number here—but that was very significant.

Ajith Kumar Rai: I think in terms of the size of the business, I think we've made a press release, I think a month ago, particularly about three large contracts. I don't know whether you've seen it, that was a very important announcement we have made, which, I don't know whether I got that number here, that was very significant. I think about three contracts we have talked about. One is the largest EV cable contract, which is an annualized value of $5 million and a lifetime of about $37 million. Second one is a European luxury OEM, which is at INR 2 million a year, a lifetime of INR 12 million. Another one is from a Japanese OEM, again, INR 1.2 million a year, lifetime of INR 6 million.

Ajith Rai: I think in terms of the size of the business, I think we've made a press release, I think a month ago, particularly about three large contracts. I don't know whether you've seen it, that was a very important announcement we have made, which, I don't know whether I got that number here, that was very significant. I think about three contracts we have talked about. One is the largest EV cable contract, which is an annualized value of $5 million and a lifetime of about $37 million. Second one is a European luxury OEM, which is at INR 2 million a year, a lifetime of INR 12 million. Another one is from a Japanese OEM, again, INR 1.2 million a year, lifetime of INR 6 million.

Speaker #3: The contracts we have talked about—one is the largest EV cable contract, which has an annualized value of $5 million and a lifetime value of about $37 million.

Speaker #3: The second one is a European luxury OEM, which is 2 million a year, with a lifetime of 12 million. And another one is from a Japanese OEM, again, 1.2 million a year, with a lifetime of 6 million.

Speaker #3: But they are all going for different, different plants of ours—for Metamorus, for China, etc.—and probably some of them are also going to Morocco.

Speaker #3: So, what I'm saying is that the order inflows are pretty strong. These are only three major ones we have talked about. Subsequently, we have won additional new business.

Ajith Kumar Rai: They're all going for different plants of ours, for Matamoros, for China, et cetera, and for probably some of them also going to Morocco. What I'm saying is that the order inflows are pretty strong. These are only three major ones we have talked about. Subsequently, we have won additional new businesses. I think we are in a position where from last year, everybody fighting the tariff war, today we are fighting for the order wins. I think the scenario has changed, and I think we have been winning them pretty handsomely. In terms of how it will change the profile of margin, I think let's understand this. It is still a very competitive business globally, there is a consolidation happening, and I think the consolidation only leads to eventually the stronger player to probably eke out a slightly better margin.

Ajith Rai: They're all going for different plants of ours, for Matamoros, for China, et cetera, and for probably some of them also going to Morocco. What I'm saying is that the order inflows are pretty strong. These are only three major ones we have talked about. Subsequently, we have won additional new businesses. I think we are in a position where from last year, everybody fighting the tariff war, today we are fighting for the order wins. I think the scenario has changed, and I think we have been winning them pretty handsomely. In terms of how it will change the profile of margin, I think let's understand this. It is still a very competitive business globally, there is a consolidation happening, and I think the consolidation only leads to eventually the stronger player to probably eke out a slightly better margin.

Speaker #3: So, I think we are in a position where, you know, last year, everybody was fighting the tariff war. Today, we are fighting for the order wins.

Speaker #3: So, I think the scenario has changed, and I think we have been winning them pretty handsomely. But in terms of how it will change the profile of margin, I think let's understand this.

Speaker #3: It is still a very competitive business globally. But there is a consolidation happening, and I think the consolidation only leads to, eventually, the stronger player probably eking out slightly better margins.

Speaker #3: But we have just completed a major restructuring, so any change in guidance, we don't want to do now. Maybe at the end of the year—you know, we have said 10 to 12%.

Speaker #3: After seeing the actual, you know, outcome of these restructurings, if you find that the margin profile needs to be revisited, we'll probably only do it at the end of the year.

Ajith Kumar Rai: We have just completed a major restructuring, any change in guidance we don't want to do now. Maybe end of the year, we have said 10% to 12%. After seeing the actual outcome of this restructuring, if we find that the margin profile needs to be revisited, we'll probably only do end of the year.

Ajith Rai: We have just completed a major restructuring, any change in guidance we don't want to do now. Maybe end of the year, we have said 10% to 12%. After seeing the actual outcome of this restructuring, if we find that the margin profile needs to be revisited, we'll probably only do end of the year.

Speaker #5: Okay. And lastly, on the SED, at, so the current run rate, that we are heading is that something that over the next couple of years, the, the in terms of the visibility that you all have, is there something that we can see, a kind of major, push up there in terms of all the pipelines that you are, have currently?

Jinil: Okay. Lastly, on the SED, the current run rate that we are heading, is that something that over the next couple of years, in terms of the visibility that you all have, is there something that we can see a kind of major push up there in terms of all the pipelines that you have currently?

Jinal Sheth: Okay. Lastly, on the SED, the current run rate that we are heading, is that something that over the next couple of years, in terms of the visibility that you all have, is there something that we can see a kind of major push up there in terms of all the pipelines that you have currently?

Speaker #3: I'll let Akhilesh answer this. Akhilesh, do you want to take this question?

Speaker #4: Yeah, sure. So you know, firstly, you know, when we made our disclosure, before launching, the electronic division, you know, and we talked about the pipeline and, the businesses that, we had, one for that business, it also included at the time who was one of the largest, you know, EV players and a significant portion was their business, which, as you know, that player didn't really continue with the volumes that they were at, you know, two, two years, three years ago.

Ajith Kumar Rai: I'll let Akhilesh answer this. Akhilesh, you want to take it?

Ajith Rai: I'll let Akhilesh answer this. Akhilesh, you want to take it?

Akhilesh Rai: Yeah, sure. Firstly, when we made our disclosure before launching the Electronics Division, we talked about the pipeline and the businesses that we had won for that business, it also included, at the time, who was one of the largest EV players and a significant portion was their business. Which, as you know, that player didn't really continue with the volumes that they were at 2 years, 3 years ago. That loss of that volume was negative for the division, which we overcome by bringing a lot more businesses. Probably, whatever was in that disclosure, there are a lot more projects that came in, which more than overtook what we had, the volume that we didn't get from this number 1 player at the time. I think that is one point on Electronics Division.

Speaker #4: So you know, the loss of that, volume was a negative for the division, which we overcome by bringing a lot more businesses. So probably you know, whatever was in that, disclosure, there were there are a lot more projects that came in, which, more than overtook, what we had, you know, the volume that we didn't get, from this number one player at the time.

Speaker #4: So, I think that is one point on the electronic division. And what's good is that, right now, the electronic division—a lot of the business is not just driven by EVs, but also by ICE customers, who are, you know, picking up a lot.

Akhilesh Rai: What's good is that right now the Electronics Division, a lot of the business is not just driven by EVs but also by ICE customers who are picking up a lot, especially in the south region, a lot of the OEMs here are doing pretty well. We see the strong growth continuing in the next few quarters. We see, like we said in the release, that we are expanding our capacity on a war footing because we are flooded with orders and new launches. I think, of course, a lot of these EV things, you never know how they are going to do, go up or down. At least in terms of the current market scenario, EVs are doing great and therefore, this SED should also do well, along with the fact that ICE is also doing well.

Speaker #4: In, you know, especially in the South region, a lot of the OEMs here are doing pretty well. So we see the strong growth continuing in the next few quarters. Like we said in the release, we are expanding our capacity on a war footing because we just are, you know, we are flooded with orders and new launches.

Speaker #4: So, you know, I think, you know, of course, a lot of these EV things—you never know how they, when are they going to go up or down.

Speaker #4: But at least in terms of the current market scenario, EVs are doing great, and therefore, you know, this SED should also do well, along with the fact that ICE is also doing well.

Speaker #4: So our business is looking strong for at least the next 12 months. We see good traction to continue at these levels that we are seeing this quarter.

Speaker #3: Akhilesh, you can also talk a little bit about some of the businesses we are working on, on the connected side, maybe.

Akhilesh Rai: Our business is looking strong for at least the next 12 months. We see a good traction to continue at these levels that we see this quarter.

Speaker #4: Yeah, I think, you know, I mean, like Chairman said, you know, we have—of course, we also have, you know, our tech center continues to work on a lot of projects.

Ajith Kumar Rai: Akhilesh, you can also talk a little bit about some of the businesses we are working on the connected side, maybe.

Ajith Rai: Akhilesh, you can also talk a little bit about some of the businesses we are working on the connected side, maybe.

Speaker #4: And one of them is in telematics. And this quarter, actually, we won three projects in telematics and connected clusters and TCUs.

Akhilesh Rai: I think, like Chairman said, of course we have also, our tech center continues to work on a lot of projects, and one of that is into telematics. This quarter, actually, we won three projects in telematics and connected clusters and TCUs. This is a great opportunity also for us to grow into the telematics side of the business. That should launch in the coming year and then gives us a new platform to take to all our other OEMs as well. I think that's on telematics.

Speaker #4: So, this is a great opportunity for us to grow into the telematics side of the business. That should launch in the coming year and gives us a new platform to take to all our other OEMs as well.

Speaker #4: So yeah, I think that's on telematics.

Speaker #3: And to add to what Akhilesh has said, you know, we have now decided to move out of the current location temporarily. We have already found a larger leased-out premises nearby. I think in the next—I don't know the timeline—maybe six months or so, we'll be completely relocating to that site.

Ajith Kumar Rai: To add to what Akhilesh has said, we have now decided to move out of the current location temporarily. We already found a larger leased-out premises nearby. I think in the next, I don't know the timeline, maybe six months or so, we will be completely relocating to that site and completely rebuilding the current plant by demolishing and coming out with a much larger facility for electronics. All that shows that we are very clear that the original plan at which we said that, "Okay, this place is okay for some, let's say INR 250 crore of business," but now we are seeing much higher traction. What we are doing is we are relocating the plant, except a part of it, and then completely rebuilding and coming out with a multi-story electronics division. I think that work should start soon.

Ajith Rai: To add to what Akhilesh has said, we have now decided to move out of the current location temporarily. We already found a larger leased-out premises nearby. I think in the next, I don't know the timeline, maybe six months or so, we will be completely relocating to that site and completely rebuilding the current plant by demolishing and coming out with a much larger facility for electronics. All that shows that we are very clear that the original plan at which we said that, "Okay, this place is okay for some, let's say INR 250 crore of business," but now we are seeing much higher traction. What we are doing is we are relocating the plant, except a part of it, and then completely rebuilding and coming out with a multi-story electronics division. I think that work should start soon.

Speaker #3: And completely rebuilding the current plant by demolishing and coming out with a much larger facility for electronics. So all that shows that we are very clear that the original plan, at which we said that, okay, probably this place is okay for, say, let's say, ₹250 crore of business.

Speaker #3: But now we are seeing much higher traction. So what we are doing is, we are relocating the plant—except a part of it—and then completely rebuilding and coming out with a multi-story electronics division. I think that work should start soon.

Speaker #5: Thank you for these responses. And if I may, in the PLE, there were two comments. One comment made in the last quarter was about one European competitor having trouble.

Speaker #5: And in the current quarter, you've mentioned the US largest retailer order revamping. So with this, you know, we've been in that ₹90 crore run rate per quarter. Do we see that we could be breaking out of that zone in the coming quarters?

Jinil: Thank you for these responses. If I may, in the PLE, there were two comments. One comment made in the last quarter about one European competitor having trouble, and in the current quarter, you mentioned about the US larger retailer order revamping. With this, we have been in that INR 90 crore run rate per quarter. Do we see that we kind of breaking out of that zone in the coming quarters?

Jinal Sheth: Thank you for these responses. If I may, in the PLE, there were two comments. One comment made in the last quarter about one European competitor having trouble, and in the current quarter, you mentioned about the US larger retailer order revamping. With this, we have been in that INR 90 crore run rate per quarter. Do we see that we kind of breaking out of that zone in the coming quarters?

Speaker #3: You know, it's, it's, it's, it's a, you know, the volume globally is obviously reducing, right? I mean, it's in that old part. The insolvency in Europe, it is still ongoing.

Speaker #3: They're still operating. There are some customers who are trying to support them and all that stuff. The whole thing has still not yet fully rolled out as to how it will pan out.

Ajith Kumar Rai: The volume globally is obviously reducing, right? It is in that old part. The insolvency in Europe, it is still an ongoing, they are still operating. There are some customers are trying to support them and all that stuff. The whole thing is still not yet fully rolled out as to how it will pan out. In the meantime, we are in discussion with multiple opportunities to do business, but I think ultimately, it depends upon whether this particular player who is in insolvency, how he comes out of insolvency. Does it shut down? Does it get taken over? These are the kind of questions. We are in discussion with multiple customers, prospects. I think in the next quarter or so, we will start seeing much better clarity on those inquiries.

Ajith Rai: The volume globally is obviously reducing, right? It is in that old part. The insolvency in Europe, it is still an ongoing, they are still operating. There are some customers are trying to support them and all that stuff. The whole thing is still not yet fully rolled out as to how it will pan out. In the meantime, we are in discussion with multiple opportunities to do business, but I think ultimately, it depends upon whether this particular player who is in insolvency, how he comes out of insolvency. Does it shut down? Does it get taken over? These are the kind of questions. We are in discussion with multiple customers, prospects. I think in the next quarter or so, we will start seeing much better clarity on those inquiries.

Speaker #3: So, in the meantime, we are in discussion with multiple opportunities to do business. But I think ultimately this depends upon whether this particular player, who is in insolvency, how he comes out of insolvency.

Speaker #3: Does it shut down? Does it get taken over? I mean, these are the kind of questions. So, we are in discussion with multiple customers and prospects.

Speaker #3: I think in the next quarter or so, we'll start seeing much better clarity on those inquiries. So, I think there is a good opportunity for us.

Speaker #3: And I'm pretty sure that, we will capitalize on it over the period of next three to six months time. This US, you know, business is ramping up nicely.

Speaker #3: I think we have had much higher numbers. I think this year it will be a much larger business than last year. And again, it will go into a much larger business for the following year, and the next year.

Ajith Kumar Rai: I think there is a good opportunity for us, and I am pretty sure that we will capitalize on it over the period of next three to six months time. This US business is ramping up nicely. I think we have had much higher, I think this year it will be a much larger business than last year. Again, it will go into much larger business for the following year, in the next year. Because last year we did piloting. This year, talking about specific number of stores, and I think that number of stores will probably triple or go four times next year. I think that is going as per the plan. In fact, I think we had a good dispatch of that in this July month, I think.

Ajith Rai: I think there is a good opportunity for us, and I am pretty sure that we will capitalize on it over the period of next three to six months time. This US business is ramping up nicely. I think we have had much higher, I think this year it will be a much larger business than last year. Again, it will go into much larger business for the following year, in the next year. Because last year we did piloting. This year, talking about specific number of stores, and I think that number of stores will probably triple or go four times next year. I think that is going as per the plan. In fact, I think we had a good dispatch of that in this July month, I think.

Speaker #3: Because it's, you know, we—last year, we, you know, did piloting. This year, talking about a specific number of stores, and I think that number of stores will probably triple or go four times next year.

Speaker #3: So, I think that is going as per the plan. So, in fact, I think we had a good dispatch of that in this July month, I think.

Speaker #5: Truly appreciate your detailed responses. Good luck to the team.

Speaker #3: Thank you.

Speaker #1: Thank you. The next question is from the line of Chirag Shah from Whitepine Investment Management. Please proceed.

Speaker #2: Thank you for the opportunity, and congratulations on a good set of numbers. Sir, before I ask the question, I have a request and a suggestion. If you look at some of your peers here, their disclosures on new order wins are reasonably well-organized in the quarterly updates.

Jinil: Truly appreciate your detailed responses. Good luck to the team.

Jinal Sheth: Truly appreciate your detailed responses. Good luck to the team.

Ajith Kumar Rai: Thank you.

Ajith Rai: Thank you.

Operator: Thank you. The next question is from the line of Chirag Shah from White Pine Investment Management. Please proceed.

Speaker #2: Is it possible you can think about it? And when I say new order wins, it could mean either an addition of a product, an addition of a model, a new customer, a new geography, etc., etc.

Chirag Shah: Thank you for the opportunity, and congratulations for good results. Sir, before I ask the question, I have a request and a suggestion. If you look at some of your peers, their disclosures on new order wins is reasonably well-organized in the quarterly updates. If possible, you can think about it. When I say new order wins, either addition of a product or addition of a model or a new customer or a new geography, et cetera. If you want, we can take it offline, because this question keeps on coming every time, and it will save time on discussion also. You don't have to repeat a lot of things.

Speaker #2: So if you want, we can take it offline. But it's because this question keeps coming up every time, and it will save time in discussion also.

Speaker #2: So you don't have to repeat a lot of things. It's a suggestion. Yeah. Sir, the question is: one, the India business or the standalone business, where we have seen margin pressures which you have explained—on an annualized basis, can we assume that margins will be similar to last year?

Speaker #2: The ones that passed through, etc., happened?

Speaker #3: I would say almost similar. Let's say, take plus or minus 50 basis points, probably.

Ajith Kumar Rai: Okay.

Ajith Rai: Okay.

Chirag Shah: It's a suggestion. Yeah. Sir, the question is, one, the India business or the standalone business where we have seen margin pressures, which you've explained. On annualized basis, can we assume that margins will be similar to the last year, once the pass-through, et cetera, happens?

Speaker #2: Okay.

Speaker #3: It's difficult to say because ultimately, you know, it depends upon what price we are able to strike with customers. Our feeling is that it will probably not be more than 100 basis points, if at all.

Speaker #3: But we don't expect that also, but I'm just saying—probably as an extreme case.

Ajith Kumar Rai: I would say almost similar. Let's say, taken plus or minus 50 basis points, probably.

Ajith Rai: I would say almost similar. Let's say, taken plus or minus 50 basis points, probably. It's difficult to say, because ultimately, it depends upon what price we are able to strike with customers. Our feeling is that it probably not more than 100 basis points, if at all. We don't expect that also, but I'm just saying as in probably as an extreme case.

Speaker #2: No, fair point. Yeah, that's why we're asking, because quarterly variation will be.

Speaker #3: The issue isn't just about passing on the material cost increase, Chirag. I think the main concern is regarding the wage increases.

Chirag Shah: Okay.

Ajith Kumar Rai: It's difficult to say, because ultimately, it depends upon what price we are able to strike with customers. Our feeling is that it probably not more than 100 basis points, if at all. We don't expect that also, but I'm just saying as in probably as an extreme case.

Speaker #2: Wage increases.

Speaker #3: That is where the real debate is going on. I don't think anybody is questioning our material cost increases. I think on the labor cost increases, because we are still a fairly large labor-intensive operation.

Chirag Shah: No, fair point. Yeah, that's why I was asking, because quarterly variations will be there.

Speaker #3: I think that part is what is being strongly debated.

Ajith Kumar Rai: The only problem is not about passing on the material cost increase, Chirag. I think the issue is about the wage increases.

Ajith Rai: The only problem is not about passing on the material cost increase, Chirag. I think the issue is about the wage increases.

Speaker #2: Fair point. Sir, my second question was, Akhilesh alluded to the different price points of different parts that are applied to customers. If I have to ask it in a different way, what would be the median price per unit realization that we would have?

Chirag Shah: Wage increases.

Ajith Kumar Rai: That is where the real debate is going on. I don't think anybody is questioning our material cost increases. I think on the labor cost increases, because we are still a fairly large labor-intensive operation. I think that part is what is being strongly debated.

Ajith Rai: That is where the real debate is going on. I don't think anybody is questioning our material cost increases. I think on the labor cost increases, because we are still a fairly large labor-intensive operation. I think that part is what is being strongly debated.

Speaker #2: Because we have products from 100 rupees going up to 7,000 rupees. But.

Speaker #3: It is difficult to say, Chirag. I can't give you that number because it keeps changing. It's a dynamic situation. Our product range is like that.

Chirag Shah: Fair point. The second question was, Akhilesh alluded to the different price points of different parts that we supply to customers. If I have to ask it in a different way, what will be the median price per unit realization that we would have? Because we have product from INR 100 going up to INR 7,000.

Speaker #3: So giving a median price is, like, you know, throwing a dart. We don't know where it's going to hit.

Speaker #2: But, structurally, over a three-year or five-year route, can we expect a 25 to 30 percent increase in this median pricing, whatever the number could be?

Ajith Kumar Rai: It is difficult to say, Chirag. I can't give you that number because it keeps changing. It's a dynamic situation. Our product range is like that, so giving a median price is like throwing a dart. We don't know where it's going to hit.

Ajith Rai: It is difficult to say, Chirag. I can't give you that number because it keeps changing. It's a dynamic situation. Our product range is like that, so giving a median price is like throwing a dart. We don't know where it's going to hit.

Speaker #2: Is that the right direction we are in, given the way the product is?

Speaker #3: Again, yeah, yeah. I think our—again, the question, you know, the point here is that, you know, cable has got one range of price, right?

Speaker #3: I got a six rupees cable. I got also, I got a 600 rupee cable. Now, how do I give a median of that? And then add on top of that, we have got this other products coming where the volumes are different than the cables.

Chirag Shah: Structurally, three years or five years out, can we expect a 25% to 30% increase in this median pricing, whatever the number it could be? Is that the right direction we are in, given the way the product

Speaker #3: Cables are all high-volume ones. And the median value of our per-piece, on a consolidated basis, is like—absolutely, I think it's a wasted exercise, if you ask me.

Ajith Kumar Rai: Yeah. The point here is that cable has got one range of price, right? I got a INR 6 cable. Also, I got a INR 600 cable. Now, how do I give a median of that? On top of that, we have got these other products coming, where the volumes are different than the cables. Cables are all high volume ones. The median value of our per piece on a consolidated basis is absolutely, I think it's a wasted exercise, if you ask me.

Ajith Rai: Yeah. The point here is that cable has got one range of price, right? I got a INR 6 cable. Also, I got a INR 600 cable. Now, how do I give a median of that? On top of that, we have got these other products coming, where the volumes are different than the cables. Cables are all high volume ones. The median value of our per piece on a consolidated basis is absolutely, I think it's a wasted exercise, if you ask me.

Speaker #2: No, fair point. It is like...

Speaker #3: I think the content, content per weight, content per vehicle is a fair question, I think. That's what I'm trying to say.

Speaker #2: Yeah, yeah. Okay, fair point. Content per vehicle is also a good way of looking at it. But...

Speaker #3: Yeah, it doesn't matter what it is. Yeah.

Speaker #2: Directionally, we can see a 5% to 6% improvement per annum, and about a 20% to 25% improvement over three to five years. Is that a fair assumption?

Chirag Shah: No, fair point.

Ajith Kumar Rai: I think the content per vehicle is a fair question, I think.

Ajith Rai: I think the content per vehicle is a fair question, I think.

Speaker #3: Improvement on what? Sorry, improvement of what?

Chirag Shah: Yeah.

Speaker #2: Content per vehicle.

Ajith Kumar Rai: That's what I can say.

Ajith Rai: That's what I can say.

Chirag Shah: Okay, fair point. Content per vehicle is also a good way of looking at it.

Speaker #3: I can't answer that question without us having done some homework. But, as I just explained earlier, if you combine our SCD and ICM, you can see the growth, right?

Ajith Kumar Rai: Yeah

Ajith Rai: Yeah

Chirag Shah: Can we say directionally?

Ajith Kumar Rai: It doesn't matter what it is. Yeah.

Ajith Rai: It doesn't matter what it is. Yeah.

Chirag Shah: Directionally, we can see a 5% to 6% improvement or annual basis by around 20% to 25% improvement over three to five years. Is this a fair assumption to make?

Speaker #3: That growth is more than the industry growth. Now, it is, it is at the same time, there has been some of the cable operation you know, are not there now compared to what it was, let's say, a year ago.

Ajith Kumar Rai: Improvement on what? Sorry. Improvement of what?

Ajith Rai: Improvement on what? Sorry. Improvement of what?

Chirag Shah: Content per vehicle.

Ajith Kumar Rai: I can't answer that question without having done some homework. I just explained earlier, if you combine our SED and ICM, you can see the growth, right? That growth is more than the industry growth. At the same time, there has been some of the cable operation are not there now compared to what it was, let's say, a year ago. The content per vehicle, we will try to see how we can accommodate that and whether we can see whether we can track something like that. Maybe it's a good idea to do it for us on internal basis, but whether we'll disclose, we'll decide on that. I cannot give an answer to your question, no.

Ajith Rai: I can't answer that question without having done some homework. I just explained earlier, if you combine our SED and ICM, you can see the growth, right? That growth is more than the industry growth. At the same time, there has been some of the cable operation are not there now compared to what it was, let's say, a year ago. The content per vehicle, we will try to see how we can accommodate that and whether we can see whether we can track something like that. Maybe it's a good idea to do it for us on internal basis, but whether we'll disclose, we'll decide on that. I cannot give an answer to your question, no.

Speaker #3: So, the content per vehicle—we will try to see how we can accommodate that and whether we can track something like that. Maybe it's a good idea to do it for us on an internal basis.

Speaker #3: But whether we'll disclose, we'll decide on that. But I cannot give an answer to your question, no.

Speaker #2: No, fair point, sir. Maybe six months down the line, once you do your work internally, you may choose.

Speaker #3: Brother, now, a lot of new things. You are the breaking cable is breaking products are coming up now. electronic division is, you know, is ramping up fast.

Speaker #3: At the same time, the new baby is growing, starting to grow. So we don't know the trajectory of all these products, as to how it will be over two or three years' time.

Chirag Shah: No, fair point, sir. Maybe if it goes down the line, once you do your work internally.

Speaker #3: So it depends. Something may take off. It depends upon how the customer volumes are there. There are so many, you know, variables. So it's impossible to put a target there.

Ajith Kumar Rai: There are a lot of new things. Even the braking cable, braking products are coming up now. Electronic division is ramping up fast. At the same time, the new baby is starting to grow. We don't know the trajectory of all these products as how it will be over two or three years' time. It depends. Something may take off. It depends upon how the customer volumes are there. There are so many variables, it's impossible to put a target there.

Ajith Rai: There are a lot of new things. Even the braking cable, braking products are coming up now. Electronic division is ramping up fast. At the same time, the new baby is starting to grow. We don't know the trajectory of all these products as how it will be over two or three years' time. It depends. Something may take off. It depends upon how the customer volumes are there. There are so many variables, it's impossible to put a target there.

Speaker #2: In the last question, in the brake and brake release system, we have mentioned TVS and HMSI as the customers. In the brake and brake release system, you have mentioned TVS and HMSI as the customers.

Speaker #3: That is for the CBS, I think. That is for CBS. Yeah.

Speaker #2: Okay. That is, that is only for CBS. And, is that—if you can throw more light—is it that we have just made entry in one or two models, and that too three years out?

Chirag Shah: In the brake and brake release system, we have mentioned CBS and HMSI as the customers.

Ajith Kumar Rai: Sorry, come again.

Ajith Rai: Sorry, come again.

Chirag Shah: In the brake and brake release system, you have mentioned CBS and HMSI as the customers.

Speaker #3: Mohan, do you have any clarity on the CBS situation now? Where are we on that?

Ajith Kumar Rai: That is for the CBS, I think. That is for CBS. Yeah.

Ajith Rai: That is for the CBS, I think. That is for CBS. Yeah.

Speaker #4: Sure. First of all, let us understand one thing. The braking system, or brakes, is a safety-critical item. Therefore, any OEM, before they take a plunge, does a lot of, you know, confirmation, product validation, design validation, etc.

Chirag Shah: Okay. That is only for CBS.

Ajith Kumar Rai: Yeah.

Ajith Rai: Yeah.

Chirag Shah: If you can throw more light, is it that we have just made entry in one or two models, or how it is, and how should we look at it two, three years out?

Ajith Kumar Rai: Mohan, you can do any clarity on the CBS situation now? Where all we are?

Ajith Rai: Mohan, you can do any clarity on the CBS situation now? Where all we are?

Speaker #4: Therefore, we are going through that process with multiple customers. With some of the customers, we have completed it; with others, we are still in the process.

N. S. Mohan: Sure. First of all, let us understand one thing. The braking system or brakes is a safety critical item. Any OEM, before they take a plunge, they do a lot of confirmation, product validation, design validation, et cetera. We are going through that process with multiple customers. With some of the customers, we have completed it, some we are in the process. Second portion that I need to explain here is, unlike many other, I would say, players in the market, we are looking at a total technology stack here. That means we are looking at the levers, we are looking at the cables, we are looking at the hoses, we are looking at the reservoir, we are looking at caliper, we are looking at rotor, brake pad, ABS.

Mohan Nagamangala: Sure. First of all, let us understand one thing. The braking system or brakes is a safety critical item. Any OEM, before they take a plunge, they do a lot of confirmation, product validation, design validation, et cetera. We are going through that process with multiple customers. With some of the customers, we have completed it, some we are in the process. Second portion that I need to explain here is, unlike many other, I would say, players in the market, we are looking at a total technology stack here. That means we are looking at the levers, we are looking at the cables, we are looking at the hoses, we are looking at the reservoir, we are looking at caliper, we are looking at rotor, brake pad, ABS.

Speaker #4: The second point that I need to explain here is, unlike many other players in the market, we are looking at a total technology stack here.

Speaker #4: That means we are looking at the levers, we are looking at the cables, we are looking at the hoses, and we are looking at the reservoir.

Speaker #4: We are looking at caliper, we are looking at rotor, you know, brake pad, ABS. Therefore, we are looking at a complete technology stack in the braking system.

Speaker #4: And CBS also, as a part of that. Therefore, what we are doing is making inroads with certain customers, with certain portions of it. So our general vision or guideline, what I would like to say is, A, we would like to own a complete system responsibility.

N. S. Mohan: We are looking at a complete technology stack in the braking system, and CBS also as a part of that. What we are doing is making inroads with certain customer, with certain portions of it. Our general vision or guideline, what I would like to say is, A, we would like to own a complete system responsibility. That's our direction. We take over the system responsibility. Second thing is we would like to have a claim on a specific real estate in a two-wheeler architecture. This is the way I would be looking at. To answer your question, which part of your body is growing more, hands or legs or brain? If you're asking me, it is very difficult.

Mohan Nagamangala: We are looking at a complete technology stack in the braking system, and CBS also as a part of that. What we are doing is making inroads with certain customer, with certain portions of it. Our general vision or guideline, what I would like to say is, A, we would like to own a complete system responsibility. That's our direction. We take over the system responsibility. Second thing is we would like to have a claim on a specific real estate in a two-wheeler architecture. This is the way I would be looking at. To answer your question, which part of your body is growing more, hands or legs or brain? If you're asking me, it is very difficult.

Speaker #4: So that's our direction. So we take over the system responsibility. Second thing is, we would like to have a claim on the real estate—a specific real estate—in a two-wheeler, in architecture.

Speaker #4: Therefore, this is the way I would be looking at it. To answer your question—if you're asking which part of your body is growing more, hands, legs, or brain—if you're asking me, it is very difficult.

Speaker #4: I would say that there is an overall growth happening in the body, and I'm maturing, both as a technology and also as a player in the market.

Speaker #2: Fair point. Because this is a very—if you're able to do the transition, it would be a unique one, and it could really bring a lot of profitability to the company.

Speaker #2: Hence, I was asking about it. Where are we?

Speaker #3: Absolutely. I agree with you, Chirag. Absolutely agree. I think that is the idea. I believe I've made this comment in some of our previous calls as well.

N. S. Mohan: I would say that there is an overall growth happening in the body, and I'm maturing, both as a technology and also as a player in the market.

Mohan Nagamangala: I would say that there is an overall growth happening in the body, and I'm maturing, both as a technology and also as a player in the market.

Chirag Shah: Fair point. This is a very exciting, if you're able to do the transition, it would be a unique one and it could really add a lot of profitability also to the company, hence I was asking about it.

Speaker #3: This is a long-term story—even longer than the electronics division story. In terms of how it will mature: which product will get launched first, which product will grow faster, which product will launch later.

Akhilesh Rai: I agree with you, Chirag. Absolutely agree. I think that is the idea. I think I've made this comment in some previous calls also. This is a long-term story, even longer than the electronics division story in terms of how it will mature, which product will get launched first, which product will grow faster, which product will launch later. The idea, as Mohan said, is to give a complete braking solution. I think that is our North Star statement.

Speaker #3: But the idea, as Mohan said, is to give a complete braking solution. I think that is our North Star statement.

Speaker #2: Okay. Thank you very much.

Speaker #3: Thank you. I think—what is the time we have? 12 o'clock. So, we'll take two more questions from the audience here.

Speaker #5: All right, sir. The next question is from the line of Raksha Srivasta. Due to no response from the current participant, we will move on to the next.

Chirag Shah: Okay. Thank you very much.

N. S. Mohan: Thank you.

Mohan Nagamangala: Thank you.

Speaker #5: Next question is from the line of Ravi Purohit from Security Investment Management. Please proceed.

Operator: Thank you. The next question-

N. S. Mohan: I think, what is the time? We have 12:00, we will take two more questions from the audience here.

Mohan Nagamangala: I think, what is the time? We have 12:00, we will take two more questions from the audience here.

Speaker #6: Yeah, hi. Am I audible? Yeah, hi. Congratulations, sir, on a good set of numbers. This is one question—most of the other questions have been answered, right?

Operator: All right, sir. The next question is from the line of Raksha Srivastava. Due to no response from the current participant, we move on to the next. The next question is from the line of Ravi Purohit from Spark PWM. Please proceed.

Speaker #6: So, I think, you know, we had discussed a little bit on actuation systems, right, from the LTC acquisition. And I think last quarter's concall, we had mentioned that we have kind of done a refresh of the, you know, of the tech or the, you know, products that we are kind of doing in that.

Ravi Purohit: Yeah, hi. Am I audible?

Speaker #6: So if you could kind of, you know, throw some light because that was one opportunity which kind of allowed us to, you know, if I can use the word, forward integrate from cables to actually providing actuation systems.

N. S. Mohan: Yes, you are, Ravi.

Ajith Rai: Yes, you are, Ravi.

Ravi Purohit: Yeah, hi. Congratulations, sir, on a good set of numbers. This is one question, most of the other questions have been answered. I think we had discussed a little bit on actuation systems from the LDC acquisition, and I think last quarter con call, we had mentioned that we had kind of done a refresh of the tech or the products that we are kind of doing in that. If you could kind of throw some light, because that was one opportunity which kind of allowed us to, if I can use the word, forward integrate from cables to kind of actually providing actuation systems and addressable market for that similarly is significantly larger than just the plain cable. If you could throw some light on any order wins or anything that we are looking at on that aspect over the next couple of years.

Speaker #6: And the addressable market for that, similarly, is significantly larger than just the plain cable. So if you could throw some light on any order wins or anything that we are looking at on that aspect over the next couple of years.

Speaker #3: Yeah, sure. Akilesh, can you answer both on our product development status and maybe on the business side of it, please?

Speaker #7: Yeah. I mean, on product development, I think the product has been developed now, and we are taking this to our customers in the US especially, and then next to Europe.

Speaker #7: You know, this will, of course, take some time to filter into actual business wins. So, you know, this will not be something that will be an immediate kicker. But what we're seeing is that in India also, there is a lot more talk about bringing these kinds of actuation systems.

N. S. Mohan: Yeah, sure. Akhilesh, can you answer both on our product development status and maybe on the business side of it, please?

Ajith Rai: Yeah, sure. Akhilesh, can you answer both on our product development status and maybe on the business side of it, please?

Akhilesh Rai: Yeah. On product development, I think the product has been developed now, and we are taking this to our customers in the US especially, then next to Europe. This will, of course, take some time to filter into actual business wins. This will not be something that will be an immediate kicker. What we're seeing is that in India also, there is a lot more talk about bringing these kinds of actuation systems. In the US, it is a standard on premium vehicles. In India, it is barely there, even in the top-end vehicles of most of the cars. Now, I think a lot of customers are looking at it. You have seen, I'm sure, in the analysis of these industries, a lot of new tie-ups in seating-related companies coming to India to bring their technologies.

Speaker #7: In the US, it is standard on premium vehicles, but in India, it is barely there—even in the top-end vehicles of most cars.

Speaker #7: So you know, now, I think a lot of customers are looking at it. You have seen I'm sure, in your you know, in the analysis of these industries, a lot of new tie-ups in seating, related companies coming to India to bring their technologies.

Speaker #7: And in those technologies, you know, a lot of them are also talking about actuation for all these seating companies. So we are also in discussion with seating companies in India.

Speaker #7: But you know, this is a mixture of both—that the technology has to come to India plus, you know, we need to win that business.

Speaker #7: So, I would say it's still a little bit down the line before we can really win seating actuation businesses in, in, in other than what we already have.

Akhilesh Rai: In those technologies, a lot of them are also talking about actuation for all these seating companies. We are also in discussion with seating companies in India, but this is a mixture of both that the technology has to come to India, plus we need to win that business. I would say it's still a little bit down the line before we can really win seating actuation businesses other than what we already have. I think that's an ongoing process. At the same time, I would say that with some of our key passenger vehicle customers, and I won't name one of them, but it's a leading EV OEM. They have looked at us for almost four or five different actuation-based projects, which are all very much in the R&D phase. This may take, again, two, three years before it even comes into the market.

Speaker #7: I think that's an ongoing process. But at the same time, you know, I, I would say that, you know, with some of our key passenger vehicle customers, and I won't name one of them, but, it's, leading EV, OEM, you know, they have looked at us for almost four, five different actuation-based projects, which are all on the, you know, very much in the R&D space.

Speaker #7: So this may take, again, two, three years before it even comes into the market. But this is with, you know, in, in, you know, very deep advanced engineering that we're working very closely on very, you know, on interesting actuation projects.

Speaker #7: So, I think this is a matter of time to play out, but, you know, I think the signs are strong on actuation that we'll have a lot more business going forward.

Speaker #3: To add to what Akilesh said, Ravi, the current businesses that we have in actuation continue. Some new projects we have launched in the two-wheeler segment in the last two to three years are also continuing.

Akhilesh Rai: This is with very deep advanced engineering that we're working very closely on very interesting actuation projects. I think this is a matter of time to play out. I think the signs are strong on actuation that we'll have a lot more business going forward.

Speaker #3: Now, I think the Indian, you know, larger passenger vehicle side, you know, OEMs are seriously looking at some of these newer technologies on seating.

Speaker #3: And I think that's where we are fitting in. And I think we had some very interesting conversations with at least a couple of them.

Ajith Kumar Rai: To add to what Akhilesh said, Ravi, is that

Ajith Rai: To add to what Akhilesh said, Ravi, is that the current businesses that we have in actuation continues. Some new projects we have launched in the two-wheeler in the last two, three years, they're also continuing. Now, I think the Indian larger passenger vehicle side, OEMs are seriously looking at some of these newer technologies on seating, and I think that's where we are fitting in. I think we had some very interesting conversation with at least couple of them, and as Akhilesh said, we are in discussion.

Ajith Kumar Rai: The current businesses that we have in actuation continues. Some new projects we have launched in the two-wheeler in the last two, three years, they're also continuing. Now, I think the Indian larger passenger vehicle side, OEMs are seriously looking at some of these newer technologies on seating, and I think that's where we are fitting in. I think we had some very interesting conversation with at least couple of them, and as Akhilesh said, we are in discussion. In terms of the product, I think we are working on, as he said, it's more or less finalized, at least two, what I would call as the level of actuation based on the force. I think they are all in the final approvals are in the process. I think they will all be launched as an upgrade on the existing actuation products that we have.

Speaker #3: And as Akilesh said, we are in discussion. In terms of the product, I think at a I think we are on working on, you know, as he said, it's more or less finalized.

Speaker #3: At least two, you know, what I would call as the level of actuation based on the force. I think they are all in the final, you know, approvals are in the process.

Speaker #3: So I think they will all be launched as an upgrade on the existing actuation products that we have. So I think it's a journey, but I think there are some very exciting new opportunities that we see.

Ajith Rai: In terms of the product, I think we are working on, as he said, it's more or less finalized, at least two, what I would call as the level of actuation based on the force. I think they are all in the final approvals are in the process. I think they will all be launched as an upgrade on the existing actuation products that we have. I think it's a journey, but I think there is a very exciting new opportunities that we see.

Speaker #2: Okay, great. Great, sir. Good to know that. The other question is on the non-auto side, right? So, historically, I think a few years back, before we acquired LTC, we used to kind of discuss the non-auto side of the business, too. Over the last couple of years...

Speaker #2: I think the discussions have mostly veered towards auto. So is there anything, any update that you can share on, you know, what's happening on non-auto side of, you know, any products that we have developed or anything that we are working on or anything that looks exciting?

Ajith Kumar Rai: I think it's a journey, but I think there is a very exciting new opportunities that we see.

Ravi Purohit: Okay, great, sir. Good to know that. The other question is on the non-auto side, right? Historically, I think a few years back before we acquired LDC, we used to kind of discuss non-auto side of the business too. Over the last couple of years, I think the discussions have mostly veered towards auto. Is there any update that you can share on what's happening on non-auto side of any products that we have developed or anything that we are working on, or anything that looks exciting?

Speaker #3: I think non-automotive has been fairly—the business in the US, I mean—it's large. Most part of that business is out of the US. They have continued.

Speaker #3: In the last two years, unfortunately, I would say, it has remained a very muted and hence, our conversations have also been fairly muted. So what we are doing, though, now is, you know, in those days, what we are talking about is on opportunities in cable.

Speaker #3: But what our business development guys are doing now is that we are pitching in some of our new products, particularly from the STC products—on the displays and on sensors, etc.

Ajith Kumar Rai: I think non-automotive has been fairly the business in US. Most part of that business is out of US. They have continued in the last two years, unfortunately, I would say, it has remained very muted and hence our conversations have also been fairly muted. What we are doing though now is, in those days what we were talking about is on opportunities in cable. What our business development guys are doing now is that we are pitching in some of our new products, particularly from the SCS products on the displays and on sensors, et cetera. I think we already started supplying some of the sensors already in the last couple of years. I think there are quite a few new ones, including some of the displays, are being presented and discussed with these non-automotive customers.

Ajith Rai: I think non-automotive has been fairly the business in US. Most part of that business is out of US. They have continued in the last two years, unfortunately, I would say, it has remained very muted and hence our conversations have also been fairly muted. What we are doing though now is, in those days what we were talking about is on opportunities in cable. What our business development guys are doing now is that we are pitching in some of our new products, particularly from the SCS products on the displays and on sensors, et cetera. I think we already started supplying some of the sensors already in the last couple of years. I think there are quite a few new ones, including some of the displays, are being presented and discussed with these non-automotive customers.

Speaker #3: I think that is, you know, we had already started supplying some of the sensors in the last couple of years. But I think there are quite a few new ones, including some of the displays, that are being presented and discussed with these non-automotive customers.

Speaker #3: The cable side of the business, honestly, is not growing. But I think these new products are where we expect the traction to come over the next few quarters.

Speaker #2: Okay. Okay, great, sir. All the best.

Speaker #3: Thank you. And we'll take one last question, if there is one, madam.

Speaker #4: Yes, sir. Thank you. The next question is on the line of Devesh Kayal from Boringi MC. Please proceed.

Ajith Kumar Rai: The cable side of the business honestly is not growing, but I think these new products is where we expect the traction to come over the next few quarters.

Ajith Rai: The cable side of the business honestly is not growing, but I think these new products is where we expect the traction to come over the next few quarters.

Speaker #2: Okay, sir, just want to understand. You mentioned, regarding this Chinese OEM, we want to...

Speaker #3: Sorry? What OEM? Yes. Okay.

Ravi Purohit: Oh, okay. Great, sir. All the best.

Speaker #2: Yeah, yeah. So what we have been hearing is that Chinese guys are making inroads in Europe and other places globally. So for us, how has it grown and what would be your contribution to revenue?

Ajith Kumar Rai: Thank you. We'll take one last question if it is there, madam.

Ajith Rai: Thank you. We'll take one last question if it is there, madam.

Operator: Yes, sir. Thank you. The next question is on the line of Devesh Payal from Barings AMC. Please proceed.

Operator: Yes, sir. Thank you. The next question is on the line of Devesh Kayal from Barings AMC. Please proceed.

Speaker #2: And how do we see from here on?

Devesh Payal: Sir, just want to understand, you mentioned, regarding this Chinese OEM-

Devesh Kayal: Sir, just want to understand, you mentioned, regarding this Chinese OEM-

Speaker #3: I think the Chinese OEM business is done out of Lone Star in China, actually. How we pitched to this OEM was simple: they have global ambition.

Ajith Kumar Rai: Sorry, what OEM?

Ajith Rai: Sorry, what OEM?

Operator 2: Chinese OEM.

Operator: Chinese OEM.

Ajith Kumar Rai: Yes. Okay.

Ajith Rai: Yes. Okay.

Operator 2: Yeah. What we have been hearing, Chinese guys making inroads in Europe and other places globally. For us, how it has grown and what would be your contribution to revenue, and how do we see from here on?

Devesh Kayal: Yeah. What we have been hearing, Chinese guys making inroads in Europe and other places globally. For us, how it has grown and what would be your contribution to revenue, and how do we see from here on?

Speaker #3: They are the largest, you know, EV maker today in the world. And they have global ambition. They are, I think, already in Hungary.

Speaker #3: They are talking about Mexico. So how we pitched it a year and a half ago was that, you know, we have a footprint in these places where they want to go.

Ajith Kumar Rai: I think Chinese OEM business is done out of Lonestar in China, actually. How we pitched this OEM was simple, that they have global ambition. They are the largest EV maker today in the world. They have global ambition. They are, I think, already in Hungary. They are talking about Mexico. How we pitched it a year and a half ago was that we have footprint in these places where they want to go, and that we want to be their global supplier. They have a local couple of suppliers, but they are purely local. They have no global footprint. Eventually, after good rounds of discussion, they have said that, Okay, let us try you out, because if that is really needed, we will be able to use your footprints globally. The starting point was China. Okay? We are still making most of it out of China.

Ajith Rai: I think Chinese OEM business is done out of Lonestar in China, actually. How we pitched this OEM was simple, that they have global ambition. They are the largest EV maker today in the world. They have global ambition. They are, I think, already in Hungary. They are talking about Mexico. How we pitched it a year and a half ago was that we have footprint in these places where they want to go, and that we want to be their global supplier. They have a local couple of suppliers, but they are purely local. They have no global footprint. Eventually, after good rounds of discussion, they have said that, Okay, let us try you out, because if that is really needed, we will be able to use your footprints globally. The starting point was China. Okay? We are still making most of it out of China.

Speaker #3: And that we want to be their global supplier. They have a couple of local suppliers, but they are purely local—they have no global footprint.

Speaker #3: Eventually, after a good round of discussion, they said, "Okay, let us try you out, because if it's really needed, we will be able to use your footprints globally."

Speaker #3: But the starting point was China, okay? We are still making most of it out of China. You supply to our current product. So in the process, I think we have won nearly 25 different cable projects with these customers.

Speaker #3: And I think five or six of them have been launched already, and the balance will be launched over the next 12 months or whatever time frame, depending upon the development time.

Speaker #3: The growth is very clearly seen. If you look at Lone Star, you know, the last two years have been flat years for Lone Star.

Speaker #3: But we are seeing something like a 20% growth at Lone Star, and I think that trend is likely to continue with the kind of business wins that we have.

Ajith Kumar Rai: We supply to our current product. In the process, I think we have won nearly 25 different cable projects with this customer, and I think five or six of them have been launched already, and the balance will be launched over the next 12 months or whatever timeframe, depending upon the development time. The growth is very clearly seen. If you look at Lonestar, last two years, there have been flat years for Lonestar. We are seeing something like a 20% growth at Lonestar. I think that trend is likely to continue with the kind of business wins that we have. Eventually, the idea is to take that from there to try to offer to the same OEM, out of Europe or for North American launches. That is the overall plan.

Ajith Rai: We supply to our current product. In the process, I think we have won nearly 25 different cable projects with this customer, and I think five or six of them have been launched already, and the balance will be launched over the next 12 months or whatever timeframe, depending upon the development time. The growth is very clearly seen. If you look at Lonestar, last two years, there have been flat years for Lonestar. We are seeing something like a 20% growth at Lonestar. I think that trend is likely to continue with the kind of business wins that we have. Eventually, the idea is to take that from there to try to offer to the same OEM, out of Europe or for North American launches. That is the overall plan.

Speaker #3: And eventually, the idea is to go to—you know—take that, from there, to try to offer to the same OEM, out of Europe, or for North American launches.

Speaker #3: So, that is the overall plan.

Speaker #2: Okay, that's it from me, sir. I wish you all the best.

Speaker #3: Okay. Thank you. Thank you all. Thank you very much for your time, patience, and continued interest in Suprajit. I would also like to thank Mumuksh, Anandrati, and Koraskaul for organizing this call.

Speaker #3: And all the best. Thank you very much, Shruti. As far as we are concerned, from our side, there is no more—brief from our side.

Speaker #3: So thank you.

Devesh Payal: Okay. That is it from my side. I wish you all the best.

Devesh Kayal: Okay. That is it from my side. I wish you all the best.

Speaker #4: Thank you. On behalf of Anandrathi, Sharon, and Stock Brokers, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Ajith Kumar Rai: Okay. Thank you. Thank you, all. Thank you very much for your time and patience and continued interest in Suprajit. I would also like to thank Mumuk and Anand Rathi and Chorus Call to organize this call, and all the best. Thank you very much, Shruti. As far as we are concerned, from our side, there is no more brief from our side. Thank you.

Ajith Rai: Okay. Thank you. Thank you, all. Thank you very much for your time and patience and continued interest in Suprajit. I would also like to thank Mumuk and Anand Rathi and Chorus Call to organize this call, and all the best. Thank you very much, Shruti. As far as we are concerned, from our side, there is no more brief from our side. Thank you.

Operator: Thank you. On behalf of Anand Rathi Share and Stock Brokers, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Ajith Kumar Rai: Thank you.

Ajith Rai: Thank you.

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