Q1 2027 Bosch Ltd Earnings Call
Speaker #1: Yes.
Speaker #2: Ladies and gentlemen, good day and welcome to the Bosch Limited Q1 FY 2026-27 post-sales conference call, hosted by 361 Capital Market Research, with participation from Bosch management.
Speaker #2: We have with us today Mr. Guruprasad Mudlapur, Managing Director, and Mr. Tilman Alsen, Chief Financial Officer. For Mr. Tilman Alsen, this will be the first investor call—welcome, sir.
Speaker #2: At this point, all participant lines will be in listen-only mode. There will be an opportunity to ask questions after the management presentation and opening remarks.
Speaker #2: Over to you, sir.
Speaker #3: Hi, good afternoon everyone, and welcome to our Q1 FY 2027 earnings conference call. We'll begin with an overview of the current macroeconomic landscape and our outlook.
Speaker #3: The domestic economy remained resilient in the first quarter of fiscal 2027. This stability was driven by robust private consumption and stable monetary policy from the Reserve Bank of India.
Speaker #3: Which held the benchmark policy repo rate steady at 5.25%, under a neutral stance at its August 2026 meeting. While food and energy volatility pushed June headline inflation to 4.38%, reaching the RBI's 4% medium-term target for the first time in 17 months, it remains comfortably within the central bank's 2% to 6% flexible inflation targeting framework.
Speaker #3: This policy flexibility is critical for India's macro stability in FY 2027, allowing the RBI to manage price stability amidst external volatility, while prioritizing steady economic growth to avoid policy-induced slowdowns.
Speaker #3: Given this context, our outlook for the remainder of fiscal 2027 is anchored in strategic reliance and resilience. We are highly encouraged by the RBI's decision to raise its real GDP growth forecast for FY 2026-2027 to 6.7%, up from its previous estimate of 6.6%.
Speaker #3: Backed by strong capital expenditure momentum outlined in the budget, India remains positioned as the fastest-growing major economy. Our strategy is built to thrive amidst external market dynamics.
Speaker #3: Our key priorities will remain focused on strengthening our operational resilience in the face of ongoing external uncertainties, enhancing supply chain agility through diversified sourcing, and managing commodity and currency risk proactively.
Speaker #3: Next slide, please. The Indian automotive industry concluded Q1 FY 2027 on a resilient note, despite geopolitical disruptions in West Asia. This was supported by strong domestic demand, lower GST rates, and a favorable base effect compared to Q1 FY 2026.
Speaker #3: The passenger vehicle demand remained strong during the quarter under review, despite geopolitical tensions in West Asia, elevated inflation within the RBI's target band, and heat waves across select regions.
Speaker #3: Demand was supported by sustained preference for SUVs and healthy consumer sentiment. The HCV segment maintained healthy demand despite the ₹7.5 per liter increase in diesel prices.
Speaker #3: The HCV segment maintained its momentum, supported by a combination of stable freight activity, steady replacement demand, and sustained spending in construction and infrastructure. Continued momentum in key sectors—specifically steel and cement—provided a strong foundation for further growth.
Speaker #3: LCV demand remained robust, driven by healthy last-mile logistics, sustained e-commerce and FMCG demand, and a low base effect that supported growth momentum. Three-wheeler sales maintained strong growth momentum, supported by steady passenger mobility demand and increasing last-mile connectivity.
Speaker #3: The EV segment continued to expand its market share, driven by attractive operating economics and lower running costs. Tractor demand remained resilient despite concerns over an uneven monsoon across parts of the country, supported by healthy farm cash flows from a strong Rabi harvest and pre-tariff farm activities.
Speaker #3: The two-wheeler market recorded robust growth, supported by a low base effect and resilient rural demand. Next quarter, we expect resilient 8% growth, driven by festive demand, stronger rural cash flows, and ongoing infrastructure activity.
Speaker #3: However, monsoon variability, potential El Niño effect, and geopolitical tensions remain key downside risks. Next slide, please. Quarter on quarter, the Mobility business has grown 25.7% in April–June 2026, as compared to April–June 2025, driven mainly by the Power Solutions business, which grew by 29%, mainly on account of growth in passenger cars and off-highway segments.
Speaker #3: The mobility aftermarket recorded growth of 9.6%, driven by strategic price positioning and rollout of new schemes for key product categories, including lubricants and spark plugs.
Speaker #3: The two-wheeler business grew by 41.4%, mainly on account of growth in value-added EMS products, increased sales to premium motorcycle platforms, and steady demand from major domestic OEMs.
Speaker #3: The consumer goods business grew by 20.9%, driven by strong demand for tools and supported by marketing campaigns. Sequentially, the mobility business has grown 7.5% in April–June 2026, as compared to January–March 2026, driven mainly by the power solutions business, which grew by 5.8%, mainly on account of growth in passenger cars and off-highway segments.
Speaker #3: The mobility aftermarket business, which grew by 8.7% mainly on account of strong growth in lubricants, wiper systems, and spark plugs, and the two-wheeler business has grown significantly by 20.5%, mainly on account of higher production volumes from two-wheeler OEMs, supported by channel inventory replenishments.
Speaker #3: The consumer goods business declined by 15.7% due to seasonal factors. Next slide, please. Quarter on quarter, revenue from operations in April–June 2026 stood at ₹58,419 million, which grew by 22% over April–June 2025.
Speaker #3: The growth was driven mainly by higher sales in power solutions, and two-wheeler power sports segments as seen in the previous slide. Likewise, the revenue for the period April, June 2026 grew by 5% over April, Jan, March 2026, from 55,657 million INR to 58,419 million INR.
Speaker #3: This growth was driven by strong performance in the Power Solutions and Mobility Aftermarket segments. The EBITDA for April to June 2026 was ₹8,180 million, which grew by 28% over the same quarter of the previous year.
Speaker #3: The improvement in EBITDA margin was primarily driven by growth in revenue and optimization of expenses. EBITDA for the period April to June 2026 was ₹8,180 million, as compared to ₹7,816 million in January to March 2026, which grew by 4.7%.
Speaker #3: The increase in EBITDA was due to revenue growth. The profit after tax for April to June 2026 declined by 37.1% over the same quarter of the previous year.
Speaker #3: April–June 2025 had an exceptional item of profit on sale of video solutions, access and intrusion, and communication systems under the Building Technology segment.
Speaker #3: The profit after tax, without this exceptional item, in the April–June 2025 quarter has grown by 9.9%. The profit after tax for the three months ending June 2026 stood at ₹7,018 million, which is a growth of 23.4% over the sequential quarter.
Speaker #3: The growth impact is mainly due to revenue growth and higher mutual fund gains, which are taxed at a lower rate. Next slide, please. I will now walk you through the key highlights from our business divisions for the first quarter of the fiscal year 2026-2027.
Speaker #3: From our Power Solutions division, it achieved strong growth, significantly outperforming the broader automotive market. This performance was driven by robust demand across all our key segments, including passenger cars, commercial vehicles, and tractors.
Speaker #3: Our focus continues on navigating the evolving regulatory landscape. We are actively engaged with our partners to address upcoming regulations like CAFE Phase 3 and the implementation of ADAS in commercial vehicles.
Speaker #3: Our commitment to quality and innovation continues to be recognized across the industry. This quarter, multiple OEMs honored us for our performance. We received a delivery excellence award from a leading commercial vehicle manufacturer, and a prominent tractor and utility vehicle manufacturer awarded us for best quality performance.
Speaker #3: Best in technology and innovation, and named as their Business Partner of the Year. Moving to our Two-Wheeler and Power Sports division, the business successfully met a surge in market demand, ensuring zero production disruptions for our customers despite ongoing geopolitical and supply chain complexities.
Speaker #3: Bosch's advanced safety systems were recently introduced and integrated into the first electric motorcycle from a leading two-wheeler manufacturer for its commercial launch. We also showcased our latest innovations across powertrain, safety, and electrification at the ACMA Mobility Foundation Technology Show.
Speaker #3: Furthermore, we were honored by a leading global two-wheeler manufacturer for providing exceptional development speed and engineering support for one of their flagship scooter platforms—a testament to our strong collaborative partnership.
Speaker #3: In our Mobility Aftermarket division, the Independent Aftermarket business was a standout performer, achieving its highest-ever monthly sales in June. The Original Equipment segment also delivered robust growth.
Speaker #3: This performance was driven by strong contributions from our core product categories, including lubricants, batteries, spark plugs, and braking systems. Strategically, we are accelerating our workshop programs and expanding our portfolio with new product launches, such as the Tulix LED range of advanced lighting solutions, Brithvi, a heavy-duty commercial vehicle battery, PC clutches, and suspension, which will further strengthen our market position.
Speaker #3: In our Power Tools division, we saw strong sequential growth and accelerated demand in the construction and automotive sectors, with our online sales channels continuing to expand their share of total sales.
Speaker #3: Our strategic focus remains centered on driving cordless conversion, extending our product portfolio, and expanding our market reach to key customers, key users, and small to medium enterprises.
Speaker #3: Next slide, please. Yeah. Thank you all for your contributions and for listening patiently throughout the call. We will now address your queries. Thank you, and we are open for questions.
Speaker #1: Yes, thank you, sir. We will now begin the question-and-answer session. For participants who wish to ask a question, I request that you please raise your hand.
Speaker #1: We will now wait for a moment while the questions are assembled.
Speaker #2: Yeah.
Speaker #1: First question is from Pramodante. Please unmute and ask your question. Pramod, you can unmute and ask your question.
Speaker #2: I don't know.
Speaker #3: Hello? Can you hear me? Yeah.
Speaker #1: Yeah, yeah, we could hear you. Yeah, yeah, we could hear you. Please go ahead.
Speaker #3: Congratulations on the good setup. So, the first question is: The aftermarket segment seems to have come back into high single-digit growth after languishing in low single digits.
Speaker #3: I wanted to get your comments on how sustainable this momentum is, and what you have done differently from now onwards, because it's a large legacy business to be addressed.
Speaker #2: Yeah. Thank you, Pramod. Yes, I mean, we had some low-growth period last year with our mobility aftermarket, and we've recognized that and made quite a few corrections in our strategy and our approach to the market.
Speaker #2: So, specifically, to address your question, the independent aftermarket business saw very, very robust growth. There was a lot of contribution from lubricants, batteries, spark plugs, braking systems, and rotating machines.
Speaker #2: We've also continued the expansion of our workshop program, which we are expanding at a very, very rapid pace now. We've also introduced several new product launches: TULIX, the LED lights. Then, for the heavy commercial vehicle and CV batteries, we brought in new products like the PC clutch and suspension system.
Speaker #2: So overall, the aftermarket portfolio is much, much stronger. The market, which is even more significant, has started to produce results. So we believe that this is a sustainable path over the coming period.
Speaker #2: So, we should see sustained growth moving forward.
Speaker #1: Yeah, thanks. So, the second question is regarding margins. Compared to the post-COVID EBITDA margin range of 12–13 percent, in the last two quarters you have successfully delivered a 14 percent margin.
Speaker #1: And even in the annual report, you talked about holding on to the margins. So, in that context, I wanted to know how sticky these margins are.
Speaker #1: Are there any one-offs which have helped you, and going forward, how confident are you in maintaining these types of margins?
Speaker #2: Yeah, I'll give you my perspective, and maybe Thilman can add on to this. So, I think we've done quite a few things over the last several years—maybe at least two years or so—consistently.
Speaker #2: Which has led to sustained improvement in our margins. The first thing is continuous improvement in our operational excellence, so that has led to a sustained change.
Speaker #2: We've had a continued increase in our localization content, so that's contributed quite a bit. The volume growth has been favorable, which has also been a very good one.
Speaker #2: We've had improvements in productivity overall. That has also been a major contributor. And the product mix has been quite favorable going forward, so that's also a good addition to our margin base.
Speaker #2: So, overall, I would say we are on an upward trend, and we would say that we will sustain this.
Speaker #1: Thilman, if you would like to add anything, please feel free to comment. I would also like to mention that Thilman is not feeling very well.
Speaker #1: That's why he's on the call from home. So, only when required, he can join in. Otherwise, I'll chip in for him.
Speaker #4: I'm here. Guru, I'm here. Just maybe one addition: I think we also profit from the worldwide purchasing organization. As you are all aware, the sourcing market is in quite a turmoil.
Speaker #4: I think we are blessed with a worldwide purchasing organization, which helps us to maneuver this very volatile situation and maintain, as best as possible, our margin in this situation via also our sourcing activities.
Speaker #4: That's the only thing I would add.
Speaker #1: Sure, thanks. If I may, I'd like to ask one more question. Based on your annual report, you have successfully delivered in terms of reducing the purchase of goods as a percentage of sales.
Speaker #1: Over the last two, three years, by reducing it from, whatever, 40 percent plus by around 200 basis points. But if I had to look at the mix of it, the sourcing from parent continues to go up.
Speaker #1: It's now almost like, in that basket, 53% is a mix, which is, I think, a decadal high, whereas the local subsidies proportion has come down.
Speaker #1: So, how should we look at it? Is there a directional trend that imports from the parent will come down, or will new technology still demand this proportion?
Speaker #2: There has been a certain surge in volumes, which has also led to this effect. But all I can state is that our localization plans are well on track.
Speaker #2: And consistently, increasing localization content. We will continue to go in this path and continue to increase our localization content. So, as we go by in the coming quarters, we will continue to share our localization updates, and this is on a very good path as far as I can see.
Speaker #1: Sure. Thanks, Nargis.
Speaker #3: Thanks, Pramod. One minute. Mr. Ravi Gupta, you can unmute and ask your question.
Speaker #1: Hello?
Speaker #2: Go ahead, please.
Speaker #1: No, no. Yeah, he's not able to. One minute. I will ask. Mr. Mukul, you and Darshing, you can unmute and ask your question.
Speaker #3: Thank you. Thank you, and congratulations on the wonderful numbers. This is Mukul Yudhvir Singh from Auto Car Professional. You know, everybody is focusing on SDVs, electronics, and everything else.
Speaker #3: But India's share of CNG vehicles and alternative fuels is growing as well, or growing much faster. Five years from today, if I wanted to understand—in terms of incremental revenue—would Bosch want to have that increased share from technologies that have something to do with the engine, or not with the engine?
Speaker #3: In other words, would you also be working for the way India is growing, would you also be working to make ICE engine more cleaner and better for the future?
Speaker #3: Also from revenue standpoint.
Speaker #2: Okay, Mukul, I think the answer is pretty straightforward for us. We are a technology company, and we will support, and continue to support, whatever technology the market demands.
Speaker #2: So, you listed a few SDVs, electrification, CNG—there are plenty of others: ADAS and everything else. Every one of these is in our portfolio, and we continue to offer them to our OEMs.
Speaker #2: That said, there is also momentum which will carry the combustion technologies forward, including maybe some alternate fuels. This progression will continue for many years to come.
Speaker #2: So this is something that's not stopping. We see this, including volume growth in combustion technologies continuing to happen. There is possibly also upgraded legislation in combustion technologies as we move forward.
Speaker #2: And we are certainly leading that way, and we will continue to support. So, overall, as a technology company, for us, these are all base technologies which we support based on whatever the OEMs demand, or whatever the legislation demands, or market demands.
Speaker #3: Thank you, sir. Just one more follow-up question on this. A lot of OEMs now increasingly want to own software and electronics architecture themselves, and this trend is only picking up, right?
Speaker #3: Do you see a risk of losing some of the value Bosch traditionally captured as a tier one? Or do you actually see Bosch's content per vehicle only increasing from here?
Speaker #2: Yeah, I mean, today it's an earnings call. I would be happy to engage with you in this kind of conversation separately.
Speaker #3: No, sir. Perfect. Thank you, sir.
Speaker #2: The quick answer to this is no, we don’t see this as a negative phenomenon at all. We are happy to engage with OEMs on different models.
Speaker #2: And we already do.
Speaker #3: Perfect. Thank you, sir. And once again, congratulations on the wonderful numbers from Q1.
Speaker #2: Thank you. And if you would like to engage specifically on these topics, feel free to let us know, and we can have a conversation.
Speaker #3: Thanks once again, and congratulations from Auto Car Professional.
Speaker #2: Thank you, Mukul.
Speaker #1: Yeah, yeah. So if any investor has a question, you can raise your hand. In the meantime, Mr. Ronak Mehta, you can please unmute and ask your question.
Speaker #4: Hi. Thank you for the opportunity. Congratulations on your strong growth and resilient margin performance. My first question is on the Power Solutions business. Can you help us understand if there was any content increase or new program execution that would have driven this outperformance?
Speaker #4: And how sustainable is this?
Speaker #2: Yeah, you are referring specifically to Power Solutions? Okay. So in the Power Solutions business, we've sort of outperformed the growth across all our segments.
Speaker #2: Right from passenger cars to off-highway and tractors, I think the effect is largely a volume effect, and maybe also some new introductions that we did over the last two quarters.
Speaker #2: So, which have helped us. I think what we look forward to, moving forward, are the upcoming legislations on CAFE 3—CAFE Phase 3—which will come up in April, and should be an even better boost.
Speaker #2: We also have the CV ADAS coming up in October of next year, so a lot of preparation is going on towards that. That's another area where we look forward to sustaining this already good growth path.
Speaker #2: So overall, I think Power Solutions is on a very, very good track.
Speaker #4: Perfect. Thank you. Thank you. And my second question is on the two-wheeler segment. So, you indicated that you started supplying to premium two-wheeler platforms starting this quarter.
Speaker #4: Does this mean that you have gained market share, or is it more to do with mix or content?
Speaker #2: We've gained market share.
Speaker #4: Perfect.
Speaker #2: Yes, there are some new products introduced to new OEMs, so we've gained market share.
Speaker #4: Perfect. And also, just a clarification—when you talked about upcoming regulation, specifically CAFE 3 norms from next year, what is the content opportunity for Bosch?
Speaker #4: Any color on that? Segment-wise content opportunity?
Speaker #2: We can share that separately. I don't have the exact number right now, and I don't want to speculate on a value. So, we can share that.
Speaker #4: Perfect. Thank you. Thank you so much. All the best.
Speaker #1: Yeah. If anybody has any questions, please raise your hand. In the meantime, there are some questions in the chat box—some housekeeping questions. For example, this time, the employee cost, even in absolute terms year on year, shows no big change.
Speaker #1: Are there any one-offs in the employee expenses?
Speaker #2: No, yeah. To answer that, no, there are no one-offs.
Speaker #1: Okay. Okay. And on the other expenses, any one-offs, sir?
Speaker #2: No, no, we don't have any one-offs.
Speaker #1: Okay, okay. Already somebody has come in the queue. Mr. Yash Goyankai, you can unmute and ask your question.
Speaker #5: Yeah, I had a couple of questions on the Bosch chassis acquisition. So first, is there any goodwill or amortization expense for the same acquisition?
Speaker #2: No. No. There is nothing.
Speaker #5: Okay. And the Bosch Chassis will be operated as a separate subsidiary. So how are the synergies on cost and revenue going to play out if we don't really merge it with our business?
Speaker #5: Can you just give a sense, from the synergy point of view, for the next two years?
Speaker #2: Yeah. So the chassis systems business, which we've acquired, was a Bosch sister company. And in terms of synergy effects, we see very minimal improvements in cost and synergy effects.
Speaker #2: There will be some small improvements, but I don't see that as a big benefit. It's a great portfolio addition for Bosch Limited that we add a sort of powertrain-agnostic product line, which comes into Bosch Limited.
Speaker #2: And that's the bigger focus. The company operates with very good performance characteristics right now, and very good projects are acquired for the next several years.
Speaker #2: So, it's a very profitable, good-growth, good-market-share company, and that should help Bosch Limited significantly moving forward. Already starting next quarter, we will publish consolidated results, and you will start to see the impact of it.
Speaker #5: Okay. And so, what are the sales numbers for FI26 for Bosch chassis? And also, if you can provide us the breakup of the same for two-wheeler or four-wheeler, CV, tractor, export, or aftermarket, etc.
Speaker #2: Yeah. So the consolidation of chassis systems is underway right now. The sale was completed in July, and starting this quarter onwards, we will be able to produce all the numbers.
Speaker #2: We will share more details in the upcoming quarter's conference call. I would also like to state that we are planning an investor meet at the Chassis Systems location, Chakand, Pune, in November.
Speaker #2: We will send out invites, and please feel free to come over. We can share a lot more information, including a site visit and a plant visit when you're there.
Speaker #5: Okay, and if I could just please ask one last question. Can you let me know what is our business share that is fuel agnostic right now at a consolidated level?
Speaker #2: So offhand, I won't be able to give you a good number because this cuts across different domains. But this is something we can work towards, and we can share more data with you independently.
Speaker #5: Okay, sure. Thank you. That's all from my side.
Speaker #1: Ms. Niril, you can unmute and ask your question.
Speaker #3: Am I audible?
Speaker #2: Yes. Okay. So, my first question is: How do you see the export trends over the next two to three years, and what percentage of revenue does it contribute?
Speaker #2: Yes. So currently, we are seeing a high single-digit trend. We are in that range today, and over the next few years, our aim is to continuously increase this number.
Speaker #2: We are probably at 8% now, if I'm not wrong—8, 8 and a half percent. And we will continue to increase this moving forward.
Speaker #2: So, over the next couple of years, this is on a—
Speaker #3: And sir, just one last question, which is: As the base effect comes into the picture after the GST, how do you see the CV and PV cycle?
Speaker #3: Will their demand sustain, or do you see a significant decline or subdued growth in the volumes of the overall industry?
Speaker #2: Yeah, I mean, this is sort of a crystal ball question. The first two quarters after the GST, everybody expected the demand to sort of normalize after the GST effects.
Speaker #2: But it hasn't happened that way. There has been sustained growth, and I think that maybe in one or two more quarters, the GST-related things may normalize.
Speaker #2: But the demand and the consumption-led growth are continuing quite sustainably. And we hope this momentum will only be added to by the lower GST rates, which we already have.
Speaker #2: So, overall, we see this as positive.
Speaker #3: Got it.
Speaker #1: Thanks, Ms. Niril. Yeah. Mr. Anant Chandrasekhar, you can unmute and ask your question. Yeah.
Speaker #3: Hi, am I audible? Yeah. Thank you for taking my question. This is Anant from Informist. I wanted to understand how much of your revenue growth is currently coming from underlying volume growth versus content per vehicle and product mix?
Speaker #2: So, just hold on. I would say we have outperformed the volume growth in the market by a few percentage points.
Speaker #3: Okay, all right. Sure. Also, I wanted to understand, do you expect the current product mix to remain favorable through FY27, or could margins normalize as the—
Speaker #2: I think it is quite favorable throughout the year.
Speaker #3: All right. If I could just squeeze in one more, one final question. How quickly do you expect EVs to become a meaningful part of your mobility business?
Speaker #2: EVs are already part of our mobility business—maybe not showing up in terms of turnover, but in terms of technology, in terms of product, and in terms of what we plan to do. We also, as you are aware, announced a joint venture with TACO, where we will produce e-axles moving forward.
Speaker #2: So, EVs are certainly an integral part of our overall mobility offering. And in terms of revenue addition, we will get back to you as the quarters go by.
Speaker #3: Okay. Sure. Thank you.
Speaker #1: Thanks, Mr. Anant. Mr. Vedant, you can unmute and ask your question.
Speaker #4: Hello.
Speaker #1: Yeah. Yeah. We could hear.
Speaker #4: Thanks for the opportunity. I just wanted to ask about both of these KVs, one with Fields and Brakes in there, and the second with TACO.
Speaker #4: So, where are we in terms of the overall regulatory approvals, and when will the revenue start flowing in from these KVs?
Speaker #2: Yeah, thank you for the question. The GVs are in the process of getting set up. The JV, or both JVs, are in their final stages of merger controls.
Speaker #2: These are ongoing. We need both, for example, the Bosch Group and the Tata Group are operational worldwide, and we need merger control clearances from many places.
Speaker #2: So, there is some of this admin or procedural work that's ongoing. The JV with TACO will be set up at Nasik or will be operational out of Nasik.
Speaker #2: The JV with TSF Group will be operational out of Chennai, and the e-axle JV revenue should start coming in from the JV by late next year.
Speaker #4: Yes, thank you. Quite clear. And sir, if you can disclose again any sort of order wins or any sort of details on that.
Speaker #2: Sorry, I couldn't hear you at all. Could you repeat that?
Speaker #4: Could you disclose any sort of order wins in these JVs as of now?
Speaker #5: Order winds in the JVs?
Speaker #2: Oh, okay. So, yeah, I mean, at this point in time, I would not like to disclose that. But we got into the JV only after we had a healthy order book on our side.
Speaker #2: And from the TACO side, we are doing quite well there. On the TSF joint venture for air systems, we are now starting to talk to customers, starting September at the IAA Auto Show.
Speaker #2: And from then on, we should start to discuss real business. So, give us a quarter, and then we will update you more on the order book and further details.
Speaker #4: And just if I can squeeze in one last question. So overall commodity outlook—going forward, how do you see that standing?
Speaker #2: Sorry. Could you repeat?
Speaker #4: Sir, what is the overall commodity outlook now?
Speaker #2: Oh, commodity outlook. Okay. Yeah, we've seen a pretty strong increase over the last several quarters, which has sort of leveled off a little bit at this point in time.
Speaker #2: A lot of it, again, is dependent on global conditions, geopolitics, supply chain issues, and logistics issues. So, it's a pretty volatile environment at this point in time.
Speaker #2: We have some impact. We have contained some impact. And at this point of time, it looks a little stable. But I won't want to give you any guidance on how this is going because it's so dynamic and externally oriented.
Speaker #4: Thank you. And best wishes though.
Speaker #1: Yes, sir. I will take a question from the chat box. It's a very generic question: What will be our growth drivers for the next three to five years?
Speaker #2: Okay, so the first growth driver, as always, is significantly increasing volume growth in all our mobility portfolio over the next three to five years.
Speaker #2: So there we see quite a lot of new things. In every one of our product areas, power solutions, two-wheelers, and of course, also on mobility aftermarket, power tools and now the complete chassis systems area, we have quite a lot of new product introductions coming up which we'll see offtake in the market over the years.
Speaker #2: So, new products and product mix changes will give us significant support on volume growth—I mean, our revenue growth. We also see new technology introductions, which will happen in the coming years.
Speaker #2: And for example, commercial vehicle ADAS is a whole new technology or regulated market where we will see quite some action happening, starting next year.
Speaker #2: And that should also be a good growth driver. So overall, the premiumization of vehicles, the volume increase in vehicles, and new technology in vehicles are all growth drivers for us.
Speaker #1: Sir, there are no more questions. Any closing comments you want to make, sir? Only one question—just come. Yeah. But he's unable to unmute, sir.
Speaker #1: We can go ahead, sir. No closing comments. Yeah.
Speaker #2: No, if there are any other questions, please feel free to send them to us and we can answer—it's not an issue. The closing remark I would say is: thank you all for your support and for being with us all this time.
Speaker #2: We've had a good quarter—an exceptionally good quarter—and overall, I would say a very good year, which we closed. The trend is looking good and positive for us as we go into the next quarter.
Speaker #2: So, yeah. Thank you very much, and I look forward to further growth talks.
Speaker #1: Thanks, sir.
Speaker #2: In the coming quarter.
