Alicon Castalloy Limited — Q4 FY26

Alicon Castalloy Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2ooaE6GZtwc

0:01 1 second Ladies and gentlemen, good day and welcome to Alicon Castilloy Limited's Q4FI26 earnings conference call. As a 0:10 10 seconds reminder, all buyer lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touch phone. 0:26 26 seconds I now hand the conference over to Mr. 0:28 28 seconds Mayangaswani from CDR India. Thank you and over to you Mr. Vasani. 0:35 35 seconds Thank you Michelle. Good evening everyone and thank you for joining us on Alicon Castio Limited Q4 and FI26 0:43 43 seconds conference call. We have with us on the call today Mr. Sumit Bnagar CEO and Mr. 0:48 48 seconds Vimal Gupta CFO. Mr. Sumit Bnagar will share his perspectives on the industry backdrop and the growth strategy 0:55 55 seconds following which Mr. Dr. Vimal Gupta will cover the financial and operational performance for the quarter and the full year. Before we begin, I would like to 1:04 1 minute, 4 seconds point out that some of the statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been included in the earnings documents that 1:13 1 minute, 13 seconds have been shared with all of you earlier. 1:16 1 minute, 16 seconds I would now like to hand over the floor to Mr. Sumit Patnagar. Over to you, sir. 1:22 1 minute, 22 seconds Uh thank you Mike and good evening everyone. uh and thank you for joining us today and I trust all of you have had 1:30 1 minute, 30 seconds the opportunity to review the earnings presentation which was shared with you earlier. Uh it's a privilege for me to address all of you as I take over as the 1:38 1 minute, 38 seconds CEO of Alicon Castilloy effective 1st of April 2026. 1:43 1 minute, 43 seconds Uh I would like to begin by expressing my gratitude to our board employees, customers, partners, shareholders for the trust and confidence they have 1:51 1 minute, 51 seconds placed in me as we enter the next phase of Alicon's journey. 1:56 1 minute, 56 seconds Algon today stands on a a very strong foundation built over five decades through deep engineering expertise, robust manufacturing capabilities, 2:05 2 minutes, 5 seconds enduring customer relationships and an unwavering commitment towards quality and execution. 2:11 2 minutes, 11 seconds As I step into this role, uh I do so with great respect for the legacy uh that has been created and with a clear 2:19 2 minutes, 19 seconds focus on strengthening Alicon scale, capabilities and long-term relevance across evolving markets and technologies. 2:27 2 minutes, 27 seconds Over the years, Alicon has evolved alongside the changing automotive landscape and establish itself as a 2:34 2 minutes, 34 seconds trusted supplier across both domestic and the global markets. 2:39 2 minutes, 39 seconds Today the industry is undergoing a significant transformation driven by electrification premier premiumization lightweing energy 2:48 2 minutes, 48 seconds transition and increasing the technology integration. We believe Alicon is well positioned and to participate meaningfully in these structural shifts 2:56 2 minutes, 56 seconds given our strong product capabilities, diversified customer base and growing presence in technologically advanced and value added applications. 3:05 3 minutes, 5 seconds Going forward, our priorities will remain centered around three broad themes. A deepening of customer relationships, expanding our 3:14 3 minutes, 14 seconds capabilities and manufacturing footprint, and further strengthening our leadership and organizational depth. On 3:21 3 minutes, 21 seconds the customer front, I recently had the opportunity to engage with several of our global customers across both automotive and industrial segments and 3:30 3 minutes, 30 seconds the feedback has been highly encouraging. Increasingly, customers are looking at Alicon not merely as a 3:37 3 minutes, 37 seconds component supplier, but as a long-term engineering and manufacturing partner capable of supporting their future growth plans. We are seeing 3:46 3 minutes, 46 seconds opportunities expand across platforms, geographies, and product categories with customers expressing greater willingness to 3:54 3 minutes, 54 seconds consolidate business with reliable and technically capable partners such as Alicon. 3:59 3 minutes, 59 seconds This is true not only in automotive applications but also in adjacent industrial and non-automotive segments where our casting machining and 4:07 4 minutes, 7 seconds engineering capabilities provide meaningful competitive advantages. 4:12 4 minutes, 12 seconds As the relationship deepen there is also a corresponding opportunity to expand our scale and capabilities. 4:19 4 minutes, 19 seconds Customers are increasingly engaging with us for higher value and more technologically advanced products while also encouraging us to participate in a 4:27 4 minutes, 27 seconds larger share of their sourcing requirements. Uh aligned with this, we will continue to invest in capacity enhancement, automation, machining and 4:36 4 minutes, 36 seconds process capabilities both organically and through selective inorganic opportunities where they strengthen our strategic positioning and customer 4:44 4 minutes, 44 seconds relevance. Equally important is uh our focus on building the organizational capability and the leadership bandwidth. 4:52 4 minutes, 52 seconds We firmly believe that creating a stronger and more future ready organization is essential to support the next phase of telecom's growth. Over 5:01 5 minutes, 1 second recent months, we have significantly strengthened our leadership team across functions including sales and marketing, 5:09 5 minutes, 9 seconds product and process technology, program management, manufacturing, supply chain, tool manufacturing, operational excellence, and human resource. The pace 5:17 5 minutes, 17 seconds and quality of talent addition undertaken during this period reflects our intent to build scalable organization capable of supporting 5:24 5 minutes, 24 seconds materially higher levels of growth in the years ahead. Turning to the broader operating environment, the global 5:31 5 minutes, 31 seconds business landscape became relatively more challenging during the fourth quarter amid the volatile macroeconomic 5:38 5 minutes, 38 seconds conditions. While the quarter began on a stable footing, the escalation of tensions in the Middle East contributed 5:45 5 minutes, 45 seconds to increased uncertaintity resulting in volatility in energy prices, persistent inflationary pressures, and some disruptions in freight movement and 5:53 5 minutes, 53 seconds supply chains. In contrast, the domestic environment remained comp comparatively resilient. India continued to be among 6:02 6 minutes, 2 seconds the fastest growing major economies globally supported by healthy domestic consumption, government-led infrastructure investments, improving 6:10 6 minutes, 10 seconds manufacturing activity and sustained momentum across several industrial sectors. In addition, proactive measures undertaken by the government towards 6:18 6 minutes, 18 seconds diversification of energy procurement and supply chain management have helped mitigate the broader impact of global 6:25 6 minutes, 25 seconds disruptions on the domestic economy thus far. Against this backdrop, uh we witnessed several important trends 6:32 6 minutes, 32 seconds emerging across automotive industry. One of the most notable developments has been the renewed momentum in electric vehicles and hybrid technologies. 6:41 6 minutes, 41 seconds Growing focus on energy security and fuel diversification has accelerated customer interests in alternate mobility 6:48 6 minutes, 48 seconds solutions resulting in stronger traction for EV and hybrid platforms across the multiple segments. At the same time, uh 6:56 6 minutes, 56 seconds inflationary pressures across the value chain have remained significant. In addition to aluminum and related alloys, prices of commodities such as steel, 7:05 7 minutes, 5 seconds copper and other input materials witnessed meaningful increase. 7:10 7 minutes, 10 seconds This was further compounded by high energy cost, freight expenses, packaging costs and currency movements. While aluminum price increases are largely 7:19 7 minutes, 19 seconds passed through in nature, there is typically a timing lag involved whereas certain over overhead related cost increases are fully recoverable. 7:28 7 minutes, 28 seconds Consequently, these factors could exert some pressure on the margins as we move into FY2027. 7:38 7 minutes, 38 seconds Excuse me. Energy availability also emerged as an important area of focus during the quarter and we use a variety 7:45 7 minutes, 45 seconds of fuels including LSHS, CBFS, PNG and LPG mainly in process of melting, tie heating and heat treatment. Uh we 7:53 7 minutes, 53 seconds undertook several operational initiatives including process modifications, optimization of gas utilization and selective migration 8:01 8 minutes, 1 second towards electric heating solutions in order to manage fuel availability challenges effectively. And these measures help us significantly reduce 8:09 8 minutes, 9 seconds the gas consumption without any disruption to production schedules to our customers. Importantly, during the brief period of fuel supply constraints, 8:17 8 minutes, 17 seconds our team demonstrated some exceptional commitment beyond the workplace as well. 8:22 8 minutes, 22 seconds In several instances, employees and plant teams came together to support workers and their families by helping arrange essential cooking cure and 8:30 8 minutes, 30 seconds meals, ensuring that operational continuity was matched by care and responsibility towards our people and communities. 8:37 8 minutes, 37 seconds While on the subject of energy availability and consumption, it's important to highlight that over 50% of overall power requirement is now being 8:46 8 minutes, 46 seconds met through renewable resources, primarily the solar energy. The transition has significantly strengthened our operational resilience 8:53 8 minutes, 53 seconds and only a small part of operations is expos exposed to the risk of uh risk coming from the impact of volatility in 9:01 9 minutes, 1 second energy prices, supply constraints and disruptions due to the evolving geopolitical situations in the Middle East. Another important development 9:09 9 minutes, 9 seconds during the quarter pertains to the labor cost. Following the implement implementation of the revised labor cost labor codes earlier the recent 9:17 9 minutes, 17 seconds notification by government of Ariana regarding an increase in minimum wages effective first April 26 is expected to 9:24 9 minutes, 24 seconds increase the labor cost at our north India factory binola by approximately 35%. 9:30 9 minutes, 30 seconds Uh there means a possibility of similar visions being implemented across the states over a period of time. However, we we believe that our ongoing 9:38 9 minutes, 38 seconds investments in automation, productivity enhancement and operational efficiency initiatives will help us meaningfully absorb the impact over the medium term. 9:47 9 minutes, 47 seconds Uh despite these near-term challenges, we remain constructive on the medium-term outlook for Indian manufacturing and exports. Global OEMs 9:56 9 minutes, 56 seconds are increasingly evaluating India as a reliable and cost competitive manufacturing and sourcing hub as part of a broader supply chain diversification initiatives. 10:06 10 minutes, 6 seconds Additionally, developments around India EU trade framework and progress towards India US trade agreement are also 10:14 10 minutes, 14 seconds encouraging from a long-term perspective. 10:18 10 minutes, 18 seconds With its strong engineering capabilities, diversified customer base and estimless manufacturing footprint, Elicon remains well positioned to participate in these opportunities. 10:29 10 minutes, 29 seconds Coming to the business development, Elicon has recently secured orders for uh two uh very distinct part numbers in 10:36 10 minutes, 36 seconds this quarter. The first part is for a premium two-wheer customer in India. 10:41 10 minutes, 41 seconds This is a critical part for an upcoming product launch pertaining to higher CC platforms in motorcycles. The second part is supply of a turbo core 10:50 10 minutes, 50 seconds compressor component used in data centers. This is uh in the non-auto segment for Alicon and opens up a 10:57 10 minutes, 57 seconds completely new product category for us as uh as well as a new addressable market. Our existing passenger vehicle 11:05 11 minutes, 5 seconds programs with leading Japanese OEM continues to perform well during this year supported by a strong growth in SUV platforms and hybrid vehicle demand. 11:13 11 minutes, 13 seconds Given an increasing end customer preference towards hybrids and fuel efficiency mobility solutions, we believe these programs remain well 11:21 11 minutes, 21 seconds positioned for continued momentum going forward. 11:25 11 minutes, 25 seconds uh in the commercial vehicle segment. Uh the program secured during the previous quarter from leading domestic OEM along with the additional order from a 11:33 11 minutes, 33 seconds prominent tier 1 supplier with a diversified Indian industrial group are progressing well. Development and implementation activities have largely 11:41 11 minutes, 41 seconds been completed and these programs have now moved into the initial production. 11:46 11 minutes, 46 seconds Domestic CV industry volumes during the fourth quarter grew up by approximately 9 19 and a half% yearon year and Elicon 11:54 11 minutes, 54 seconds remains well push positioned to participate in this growth given our strong relationship across the leading OEMs. We also witnessed improved 12:02 12 minutes, 2 seconds traction from our two-wheer customers during the recent quarters. Alicon today supplies several critical products to leading players within the segment and 12:11 12 minutes, 11 seconds the strong recovery in industry volume since September 2025 has translated into improved business momentum for the companies. Consequently, the 12:20 12 minutes, 20 seconds contribution of the two wheel segment to our overall business increased meaningfully during quarter 426 as compared to the corresponding previous last year. 12:30 12 minutes, 30 seconds On the global side, uh we recently secured a EXL housing program from a premium German automo OEM and has also 12:38 12 minutes, 38 seconds progressed very satisfactoryily with execution moving in line with the plan timelines. Successful delivery of these 12:46 12 minutes, 46 seconds technologically advanced and value accurate programs is expected to further strengthen Alicon's credibility, deepen customers engagement and support 12:55 12 minutes, 55 seconds additional opportunities across the global markets. Overall, we remain focused on a disciplined execution, operational excellence, customer 13:04 13 minutes, 4 seconds centricity, and strengthening Elicon's positioning as a technology-driven manufacturing partner supported by a healthy order pipeline, strong customer 13:12 13 minutes, 12 seconds relationships, and ongoing investments in manufacturing and process capabilities. We remain very confident that the company's long-term growth opportunities. 13:21 13 minutes, 21 seconds Uh with that I would like to hand over the call to Vimel our CFO who will take you through the operating and financial performance for the quarter and the year. Thank you. 13:32 13 minutes, 32 seconds Thank you Sumit and good good evening everyone. We appreciate your participation in today's call to discuss elecast performance for fourth quarter and for the financial year 2526. 13:44 13 minutes, 44 seconds Despite a relatively challenging global macroeconomic environment during the quarter, Alicon delivered a resilient performance and concluded FY26 on a 13:53 13 minutes, 53 seconds strong note. While international business witnessed some recovery in quarter 4, growth during the period was primarily driven by robust momentum in 14:01 14 minutes, 1 second domestic market across key automotive segments. 14:05 14 minutes, 5 seconds For Q4 F FY26, Alicorn Castell reported a total revenue of 495 cr reflecting 14:13 14 minutes, 13 seconds healthy growth of 16% yearonear. This also represent the highest ever quarterly revenue reported by the company. A part of increase in topline 14:22 14 minutes, 22 seconds during the quarter was attributable to pass through impact of higher aluminium and alloy prices. 14:28 14 minutes, 28 seconds The domestic business remained the principal growth driver during the quarter supported by strong demand across passenger vehicle and commercial 14:35 14 minutes, 35 seconds vehicle segments along with improving traction in two wheelers. On the international side, customer specific issues and relatively softer demand 14:44 14 minutes, 44 seconds conditions in select export market continued to weigh on volumes. However, the strength of domestic business helped 14:52 14 minutes, 52 seconds offset a significant portion of these headwinds. 14:56 14 minutes, 56 seconds From a profitability standpoint, gross margins for the quarter stood at 45% reflecting a reduction of 248 basis points on year-on-year basis. 15:05 15 minutes, 5 seconds Margin during quarter was influenced by a combination of factors including change in the product means a relatively higher contribution from the domestic 15:13 15 minutes, 13 seconds and two wheeler business and the impact of elevated aluminium prices. 15:18 15 minutes, 18 seconds While higher raw material prices contributed positively to revenue growth on absolute basis, they had a moderating effect on the gross margin due to the pass through nature of almonium pricing. 15:30 15 minutes, 30 seconds On a quarteronquarter basis, gross margin moderated by 216 basis points from 47.2% 2% in quarter 3 to quarter 3 15:39 15 minutes, 39 seconds of FY26 reflecting changes in product mix and the base effect of higher aluminium prices 15:47 15 minutes, 47 seconds for quarter 4 of FY26 was 46 crores representing a year-on-year decrease of 15:54 15 minutes, 54 seconds 3% due to the inflationary trend in cost heads and base effect of higher aluminum prices 16:02 16 minutes, 2 seconds improves compared to quarter 3 avoid indices as operational performance performance strengthened during the quarter offset offsetting the other 16:09 16 minutes, 9 seconds factors. However, Abita margins broadly mirrored the trend seen at the gross margin level due to the evolving business mix and raw metal pricing dynamics. 16:19 16 minutes, 19 seconds Profitability during the year also continue to reflect investments being made towards future growth initiatives and operational upgrades 16:27 16 minutes, 27 seconds including technology enhancement programs, automation initiatives, capacity expansion, employee capability building and business development efforts. 16:37 16 minutes, 37 seconds While these investments impacted near-term profitability to some extent through higher depreciation and operating cost, they are expected to 16:45 16 minutes, 45 seconds contribute meaningfully towards productivity, efficiency and scalability over the medium term. At the same time, strong working capital discipline and 16:53 16 minutes, 53 seconds prudent balance sheet management contributed towards lower finance cost during the period. 16:59 16 minutes, 59 seconds profit before tax before external items for quarter 4 a 26 to that uh 10 crores 17:06 17 minutes, 6 seconds as compared to 11 crores in quarter 3 on a year-on-year basis PBT was lower by 4 crores largely reflecting the higher 17:14 17 minutes, 14 seconds depreciation profit after tax for quarter 4 FY26 stood at rupees 8 crores compared to 9 17:21 17 minutes, 21 seconds cr in quarter 4 of FY25 on a sequential quarter basis profit after tax in quarter four was higher by 17:30 17 minutes, 30 seconds 141% compared to pat of 3.3 cr in quarter 3 of FY26 on a full year basis. Alicon Castella 17:39 17 minutes, 39 seconds reported a consolidated total income of approximately 1784 cr FY26 reflecting year-on-year growth of approximately 4% over FY25. 17:50 17 minutes, 50 seconds The strong performance during the second half of the year, particularly in the domestic automotive market contributed to significantly towards topline growth. 17:59 17 minutes, 59 seconds Additionally, higher aluminium and alloy prices also had a positive impact on reported revenues during the year due to pass through pricing mechanism. 18:06 18 minutes, 6 seconds IITA for FI26 to approximated 203 cr registering a year-on-year increase of 3% over 190 cr reported in the previous 18:14 18 minutes, 14 seconds financial year. Profit before tax of FI26 to get 55 cr 18:20 18 minutes, 20 seconds as against 62 cr reported in FY25 after absorbing impact 8 cr account of new labor code and exceptional items were 34 18:29 18 minutes, 29 seconds cr in a 26 as com against 46 cr reported in a 25. 18:36 18 minutes, 36 seconds In view of the company's resilient performance despite a challenging operating environment, the board of directors has recommended a dividend of 2 rupees per share for FY26. 18:48 18 minutes, 48 seconds Capital expenditure during the FY26 stood at approximately 135 cr with investment directed towards automation 18:54 18 minutes, 54 seconds initiatives, enhancement of machining capabilities, capacity augumentation and readiness for upcoming customer programs. Simultaneously, the company 19:04 19 minutes, 4 seconds continued to invest in research and development, localization initiatives, and digital manufacturing capabilities with the objective of strengthening 19:11 19 minutes, 11 seconds long-term competitiveness and operational resilience. 19:15 19 minutes, 15 seconds Operationally, FY26 was characterized by continuous focus on execution, excellence, productivity enhancement and 19:23 19 minutes, 23 seconds throughput improvement across manufacturing facilities. 19:26 19 minutes, 26 seconds Despite demand softness in certain export market, the company worked closely with customers to maintain product stability, optimize 19:35 19 minutes, 35 seconds capacity utilization, ensure operational efficiency across locations. 19:40 19 minutes, 40 seconds During the fourth quarter, we also undertook a comprehensive review of our order book to improve visibility and enhance the quality of the executable 19:48 19 minutes, 48 seconds pipeline. Certain completed programs naturally moved out of the order book while a few programs were customer volumes had not metalized despite 19:57 19 minutes, 57 seconds advanced development stage were also rationalized and removed from the backlog. These two include two large global players as well as two prominent 20:06 20 minutes, 6 seconds customers in India. We are hopeful that these programs will revive at the later stage at which we will add them to our order backlog again. 20:16 20 minutes, 16 seconds Following this exercise and including recent order wins, Alicon executable order book stands approximately 7,600 20:23 20 minutes, 23 seconds crores as on March 31st representing in not executable orders over a period of 5 years from 2627 to 3031. 20:31 20 minutes, 31 seconds This does not include programs that are currently ongoing and already part of revenue of FY26. 20:40 20 minutes, 40 seconds Overall, while global markets continue to remain somewhat volatile in the near- term, the domestic automotive industry 20:47 20 minutes, 47 seconds continues to exhibit healthy momentum and customer demand trends remain encouraging 20:54 20 minutes, 54 seconds supported by a healthy order book healthy order pipeline, strong customer relationship and continued investment tech in technology capabilities and 21:03 21 minutes, 3 seconds capacity expansion. Edon Castelli remains well positioned in sustaining growth trajectory over the medium to 21:11 21 minutes, 11 seconds long term. With that I conclude my remarks and we can now open the floor for questions. 21:18 21 minutes, 18 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask questions may please press star and one on their touchtone phone. 21:28 21 minutes, 28 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking our 21:35 21 minutes, 35 seconds question. Ladies and gentlemen, we will wait for a moment while the question assembly. You may please press star and one to ask questions. 21:57 21 minutes, 57 seconds The first question is from the line of Ragunan NN from Noama Research. Please go ahead. 22:05 22 minutes, 5 seconds Uh good evening team. Uh thank you so much for the opportunity. Uh firstly to 22:11 22 minutes, 11 seconds Sumit sir. Uh thank you sir for the detailed opening remarks and highlighting the key focus areas. uh 22:19 22 minutes, 19 seconds best wishes for the days ahead. Uh my question is how do you see the medium and long-term targets potential for the 22:29 22 minutes, 29 seconds company and uh for the near term how do you see the FI27 revenue target given 22:36 22 minutes, 36 seconds that uh there is a large uh pending order book of 7,600 crores at your disposal. Thank you. 22:46 22 minutes, 46 seconds All right. Uh thank you for your question. Rahu as as I've said that I have recently taken charge in telecom and it's a very valid question coming 22:54 22 minutes, 54 seconds from an investor on in terms of understanding how do I see the midterm and long-term prospects of the company. 23:00 23 minutes Uh so if I look at uh FI27 the year which we have just started uh the first 23:07 23 minutes, 7 seconds approach for me is to make sure that we build a very very strong foundation. Uh Alicon has been there for more than five 23:15 23 minutes, 15 seconds decades. So uh I would not say that while we don't have a great foundation but I want to revisit and relook at all 23:22 23 minutes, 22 seconds the processes and make sure that we have the right abilities in terms of technology processes human capital to 23:30 23 minutes, 30 seconds make sure that we are all ready for the for a big leap. So this is the year for Elicon to refocus reset and rebuild. Uh 23:38 23 minutes, 38 seconds that's number one. Uh number two uh if you really look at uh the short term uh the first most important thing for us at 23:47 23 minutes, 47 seconds Alicon is to expand our footprint. Uh you will see uh 2026 27 uh definitely 23:55 23 minutes, 55 seconds minimum one new manufacturing factory site coming for Elicon. Uh that is uh step number one to answer your question 24:03 24 minutes, 3 seconds that how do we take care of the the backlog order books. So that's step number one. I've already mentioned in my 24:10 24 minutes, 10 seconds my speech that we have made uh uh serious recruitments at various levels across Alicon and this is basically to 24:18 24 minutes, 18 seconds meet to this particular requirement. Uh definitely India is a is a growing market. 24:25 24 minutes, 25 seconds In past there are some customers with whom we have not been uh seriously engaged but I can only tell you today that uh we already have done initial 24:33 24 minutes, 33 seconds businesses with them and they're very keen to really expand their their business portfolio with Alicon and uh this is where I'm looking uh in this 24:41 24 minutes, 41 seconds year to first grow in the domestic business. That's number one. Number two, uh last year I think we have already 24:49 24 minutes, 49 seconds said in the previous call and also in this call that uh because of some geopolitical situation the the global 24:57 24 minutes, 57 seconds markets did not do so well for us. Uh we have we have always strategically been focusing a lot on the European markets 25:04 25 minutes, 4 seconds and the American markets but uh but we have not done to our expectations for for various seasons which we have also told in the past. This year we are 25:13 25 minutes, 13 seconds seeing for those things to also revive for us while 2627 I don't want to make promises of an extraordinary bumper year 25:21 25 minutes, 21 seconds for Alicon but definitely we are looking at a reasonable growth and uh and and our focus is also going to be relook at 25:29 25 minutes, 29 seconds our margins and further strengthen them in a big way. So this is what I can share with you at this point of time and I think you also asked me rau a 25:37 25 minutes, 37 seconds visibility on on our growth uh for fi27 uh definitely we are looking for a 25:45 25 minutes, 45 seconds modest growth of around 8 to 10% without uh taking care of the aluminum volatility it's neutral because we don't 25:52 25 minutes, 52 seconds know to what extent aluminum will grow because that would further add up to the top line. So this is what we are looking at at Alicon for for this year and once 26:01 26 minutes, 1 second you once you talk about the long-term which is another right question there are some strategic movements which we will make and uh uh which will be a kind 26:10 26 minutes, 10 seconds of more forward integration of our products which we are very seriously looking at at the right time we will also let all of you know that what we 26:18 26 minutes, 18 seconds are planning and definitely we want to strengthen our European base as well and a team has been aggressively working with the European customers and uh we 26:27 26 minutes, 27 seconds have already made some good headway with them and which should convert into results in the near future. 26:34 26 minutes, 34 seconds So I hope that that answers your question Rahu. 26:38 26 minutes, 38 seconds Yes sir. Thank you very much very helpful and uh gives us an insight into your thought process. uh to sir uh sir 26:48 26 minutes, 48 seconds uh in terms of uh Q4 results on the cost side other expenses uh seem to be on the 26:55 26 minutes, 55 seconds higher side compared to uh last quarter or last year. Uh can you indicate whether there was any uh one-off item or 27:04 27 minutes, 4 seconds any expense which is not likely to continue in the coming quarters? 27:11 27 minutes, 11 seconds Yeah. So in quarter four there are two aspects we have to see. One is that like uh Sumit has explained there is a impact of the aluminium. 27:22 27 minutes, 22 seconds So there is a huge price increase we have seen in the aluminium in the quarter 4 due to this uh Middle East 27:30 27 minutes, 30 seconds war. So approximately we are seeing that 30 35 crores when we compare with the 27:37 27 minutes, 37 seconds quarter 3. So that is the one part where we can see there because in the result there is a uh increase in the raw middle 27:44 27 minutes, 44 seconds cost our margins are gross margins are down what I was explaining in my uh notes that is one part so that impact 27:53 27 minutes, 53 seconds and second when we are talking about the operating cost uh this manufacturing and other cost. So you know uh lot of things 28:02 28 minutes, 2 seconds we have reviewed and some uh one-time uh cost we have considered and maybe some uh provisions we have made. So 28:11 28 minutes, 11 seconds approximately 15 crores additional cost those were not there when we compare in the quarter three or maybe earlier 28:18 28 minutes, 18 seconds quarters that has come in and we have considered in quarter four. So that is the major impact that we have seen in this. 28:30 28 minutes, 30 seconds Uh thank you for that sir. And uh this uh aluminium uh would it be 3 month lag for the indexation pass through to customers? 28:41 28 minutes, 41 seconds No because earlier some customers was online means uh month-on-month basis some work on quarterly basis. But after 28:48 28 minutes, 48 seconds this uh big increase what we have seen from the mid of March. So almost customers they are on the same month on monthly basis we are doing. 29:01 29 minutes, 1 second Wonderful sir. So so there should be some uh pass through benefit we should see in the uh going ahead especially that should help the gross margin. 29:11 29 minutes, 11 seconds Say the benefit I'd say that there will be no loss. 29:15 29 minutes, 15 seconds Understood. Understood sir. So, so your absolute gross profit uh uh you know should not be impacted. 29:22 29 minutes, 22 seconds Yes. Yes. Yes. 29:24 29 minutes, 24 seconds And for FI27 I understand there will be this uh numerator denominator effect that arithmetic effect because uh you know 29:33 29 minutes, 33 seconds your aluminium prices go up and uh at the same time your cost go up. So, so uh but broadly uh what is the range of uh 29:42 29 minutes, 42 seconds margin you would expect for FI27 and also uh given that you are working on building your capacities what is the capeex we should work with for FI27. 29:56 29 minutes, 56 seconds So first is uh like uh has explained about uh 30:03 30 minutes, 3 seconds just uh one is that the top line 8 to 10% and he has explained totally based on without taking the impact the aluminium 30:11 30 minutes, 11 seconds prices because we don't know in the when in the March we have seen so big jump in April I have seen approximately again 30:20 30 minutes, 20 seconds further 15 20% increase and may also again increase so there is a huge jump maybe in the and we will go for the quarter one review we will see a huge 30:28 30 minutes, 28 seconds jump in the aluminum prices. So we are not bothered about that and we are not even considering our calculations all this. So that is the one part and so 30:36 30 minutes, 36 seconds whatever the sum has explained the growth that is purely without taking the impact of these aluminium prices and on the I beta side what you are talking 30:44 30 minutes, 44 seconds about the margins so you see the when we are talking uh saying that the 8 10% increase in the top line so 30:51 30 minutes, 51 seconds approximately 20% plus we are expecting increase in the gross this margins 31:02 31 minutes, 2 seconds I'm talking about the amount Understood that's the amount maybe as a percentage maybe I uh one and a half% or whatever it comes. 31:11 31 minutes, 11 seconds Got it sir. Got it. No this is very helpful. And on the ke side how much you'll be spending and uh what are the areas where it will be spent. 31:21 31 minutes, 21 seconds Maybe Sumit would like to answer for this. 31:23 31 minutes, 23 seconds All right. So uh Rau uh so so this year our capital expenditure are mainly going to be uh first on increasing our 31:31 31 minutes, 31 seconds capacities especially on some of the specific manufacturing processes uh of diecasting. Uh we will also be putting 31:38 31 minutes, 38 seconds our capeex on on increasing our machining abilities and machining capacities and of course we will be coming with up a new manufacturing plant 31:46 31 minutes, 46 seconds and other than this uh we are keeping aside a good capex for strengthening of our cyber security. We are also going to 31:55 31 minutes, 55 seconds be spending uh substantial amount on on automations uh uh because it's very clear that in future we want to have 32:03 32 minutes, 3 seconds more and more automated processes to reduce the involvement of people in core manufacturing areas. So if you if you ask about the numbers I think uh give 32:13 32 minutes, 13 seconds and take we are looking for a capital expenditure of anywhere between 130 to 140 or 50 crores. 32:22 32 minutes, 22 seconds noted sir. Thank you. This is very helpful. I'll come back in the queue for more questions. Sure. 32:31 32 minutes, 31 seconds Thank you. The next question is from the line of Riddesh Gandhi from Discovery Capital. Please go ahead. 32:38 32 minutes, 38 seconds I so apologies that I joined the call slightly slightly late. So apologies if it's if it's a bit of a repetition but 32:45 32 minutes, 45 seconds just want to understand what exactly has gone wrong over the last couple of years because you know given that the Range 32:53 32 minutes, 53 seconds Rover issue should now have been resolved by Q4 you know and you know overall if you look at numbers for most 33:01 33 minutes, 1 second of the auto components players both exposed uh uh to the local markets or global all the Q4 numbers have been 33:10 33 minutes, 10 seconds extremely strong. So just wanted to understand what has really gone wrong and what are we doing to actually fix it. 33:18 33 minutes, 18 seconds Uh all right I think I'll take this question while your question is pertaining to the past period but I would still attempt to give a fair 33:27 33 minutes, 27 seconds answer to this question. Uh in the last couple of years uh if you I think somebody can please mute it. I can see 33:35 33 minutes, 35 seconds lot of noises. Yeah, uh sorry to interrupt you sir. Reesh I would request you to kindly u mute yourself and the management is answering. Thank you. 33:44 33 minutes, 44 seconds Thank thank you Resh. All right. So if you look at the past couple of years our uh strategy has been very clearly uh 33:52 33 minutes, 52 seconds more focused in two specific areas. One is we have been really pushing very hard 34:00 34 minutes to grow in the global markets. Number two, we had been pushing very hard to grow on high value edition products. And 34:08 34 minutes, 8 seconds if you if you really look at Alicon's uh history for last few years, most of the new developments have happened in the 34:15 34 minutes, 15 seconds passenger vehicle segment where we have won businesses with some of the larger OEMs in higher VAS side. At the same time, we have won multiple businesses in 34:24 34 minutes, 24 seconds Europe uh especially in the EV side and also on the non-EV side. And uh this is where we have put all our energies on. 34:32 34 minutes, 32 seconds Now you also spoke about what went wrong with the Range Rover and so I'll it's a very specific question you have asked. 34:40 34 minutes, 40 seconds So I think while you are aware that uh the entire JR was severely hit for more than a couple of months because of uh 34:48 34 minutes, 48 seconds some challenges what they had felt uh or they realized internally but the vehicle is yet to be launched in the market. Uh 34:56 34 minutes, 56 seconds the good news is uh we have recently seen the vehicle. We had an opportunity while we were in JLR. Uh the vehicle is 35:02 35 minutes, 2 seconds due to come on the roads very soon. Our supplies have started. Eventually this there has been a delay of significant 35:10 35 minutes, 10 seconds day off I would say. Uh in short but but this product has been one of the most complicated development of Alicon so 35:17 35 minutes, 17 seconds far. uh this product so far has not been developed by any other Indian companies 35:23 35 minutes, 23 seconds uh until today. So I think it is it's a matter of lot of fight for us that we have done it but there has been 18 months delay in the development which 35:32 35 minutes, 32 seconds primarily happened from from the customer side but now this has been sorted the vehicle manufacturing has started the launch will be announced 35:39 35 minutes, 39 seconds very soon and you will also hear from them directly. So this is something which has which has really put a big dent to our growth journey or our 35:48 35 minutes, 48 seconds efforts. Other than this because our focus was mainly on the export market and uh unfortunately uh we did not get 35:58 35 minutes, 58 seconds uh enough lifting of the material from the European and the US markets for various reasons including the tariffs. 36:04 36 minutes, 4 seconds So so overall uh wherever we have put more efforts those places have not yielded enough results for us. Now the 36:12 36 minutes, 12 seconds question is so how are we fixing it? And I think I I already explained to you some time back uh we have now gone back to some of the major Indian OEMs where 36:22 36 minutes, 22 seconds we have traditionally not been supplied and I'm very happy to share that we already have one one business from each one of them which is already into 36:29 36 minutes, 29 seconds serious production from last couple of months. So this is definitely a beginning with them. uh we are now 36:36 36 minutes, 36 seconds putting equal efforts and energy also on the domestic markets so that we create enough balance between our European 36:44 36 minutes, 44 seconds plants, US plants as well as the Indian plants. And in this process we also realized that uh we need more more 36:51 36 minutes, 51 seconds capacities. We need better footprint. We already have now gone ahead. We have already earmarked the place the factory has been finalized and by end of this year our target is to have minimum one. 37:02 37 minutes, 2 seconds It could be more if everything falls right uh in place for Alon but but yes that's true that maybe some of the more 37:10 37 minutes, 10 seconds strategic plans which Algon has done in last two years they have not yielded the results that they were anticipated but they are not failed initiatives the 37:18 37 minutes, 18 seconds results are delayed and we will see the results now in the coming years for sure got understood but then just to understand I understand that obviously 37:27 37 minutes, 27 seconds the entire JLR issue was completely out of our hands and it's a high revenue and a high high volume of business and and 37:36 37 minutes, 36 seconds you know actually little tariffs and all of these implications. But even given that you you're still like guiding only 37:43 37 minutes, 43 seconds towards an 8 to 10% growth. Wouldn't we have to then make up for the like lack of growth over the last year and then have this year? 37:54 37 minutes, 54 seconds for students this year the growth be materially higher with regards to what you're guiding towards. 38:02 38 minutes, 2 seconds Yeah. 38:05 38 minutes, 5 seconds Sure. So it is a fair question. uh as I've said that uh uh the capacity expansion has started uh but you can 38:12 38 minutes, 12 seconds understand in our kind of industry once you start the expansions they take some time to yield positive results and uh 38:19 38 minutes, 19 seconds I'm very hopeful that towards the end of this financial year uh those steep growth increases you will see uh coming 38:26 38 minutes, 26 seconds up but uh it cannot just happen suddenly on a given day but yeah but I think it's a fair question but I can only tell you that elicon is now completely geared up 38:35 38 minutes, 35 seconds for this growth And you will see this uh very soon in the coming future. So and this exceptional item which we had of the write offs which you were sort of 38:44 38 minutes, 44 seconds indicating at of uh you just wanted to understand is that behind us or are there other write offs we still need to 38:52 38 minutes, 52 seconds do or in terms of cleaning up the balance sheet just wanted to understand what were those write offs which were 38:58 38 minutes, 58 seconds done. So retiml did explain some of the extraordinary writeoffs which I have done but I can only tell you that we are 39:05 39 minutes, 5 seconds not looking for any further write offs in this year uh and uh we have recently done our audits and uh I am quite 39:13 39 minutes, 13 seconds hopeful and I believe uh we have just cleaned up whatever has to be done but I'm not looking for any such events coming in the next financial year. So 39:21 39 minutes, 21 seconds then you know just to understand you know what given that now the JLR orders will start which is higher 39:31 39 minutes, 31 seconds profitability given the exceptional write offs which we have taken last year again we're guiding towards just a very 39:39 39 minutes, 39 seconds small enhancement in terms of the margin you know we just being conservative in terms of our guidance because I I mean 39:47 39 minutes, 47 seconds it just appearing to be you know how given all of that the capex which we've incurred over the last few years is not 39:54 39 minutes, 54 seconds like reflecting in our return ratios and our growth or or our profitability. So are we just being like conservative on 40:02 40 minutes, 2 seconds on our guidance or were we sort of off on our expectations with with with regards to the returns we can make on the capex? 40:13 40 minutes, 13 seconds Yeah, I can only tell you at this point of time that the bottom line and the and the profitability as I've also said in the beginning is going to be one of the 40:22 40 minutes, 22 seconds major focus areas which is not limiting to getting more businesses but also to improve our internal efficiencies, 40:29 40 minutes, 29 seconds productivities and other things. Uh we have plans uh we are working on them. uh what I have shared with the entire forum is something which we definitely are 40:38 40 minutes, 38 seconds looking for and uh and definitely I can only tell you that once it comes on making internal goals and we will take 40:45 40 minutes, 45 seconds much more aggressive targets but I think at this point of time what I have shared uh I would really be going hard to uh to meet them but yeah your point is right 40:54 40 minutes, 54 seconds we will not uh uh take any conservative targets for the organization uh we will be very aggressive and meeting 41:01 41 minutes, 1 second so yeah so I think uh Maybe maybe I think I think by quarter by quarter I think you would be able to see that this 41:09 41 minutes, 9 seconds still we are in a state where the market is volatile. Uh we still have not completely got over from the energy prices and the and the various 41:17 41 minutes, 17 seconds escalations which have happened. uh we are still dealing with them to really commit something under this market volatile situation is not very fair on 41:25 41 minutes, 25 seconds my side but uh still under these circumstances uh we are going to do our best to achieve uh great results for 41:33 41 minutes, 33 seconds okay sir that's it from me all the best thank you thank you the next question is from the 41:40 41 minutes, 40 seconds line of Pit Satani from Incred please go ahead hello sir thank you so for the 41:49 41 minutes, 49 seconds opportunity. Now I would just like to ask like last 3 years we have done around 500 crores approves 500 crores of 41:56 41 minutes, 56 seconds capeex which has been our entire profit for the last 10 to 12 years. Just want to understand what exact and despite 42:04 42 minutes, 4 seconds this capeex we are now at 78% utilization. So what exactly this last five years capex was and how how it has 42:12 42 minutes, 12 seconds helped us because our margins are also at the uh bottom end of bottom bottom end. So how exactly these capex has 42:20 42 minutes, 20 seconds helped us just wanted to understand see the all right so so the thing is 42:28 42 minutes, 28 seconds whenever we do a capital planning generally you can believe that almost 50% of the capital planning is always a maintenance capex these are the machines 42:36 42 minutes, 36 seconds and equipment uh which really need to be upgraded over a or a period of time so this is one area where the capex has 42:45 42 minutes, 45 seconds been spent I think which is natural course or any organization. But if you talk about the new capex, yes, we have invested significantly on projects like 42:54 42 minutes, 54 seconds GLR. Uh we made some significant investments for some more customers from Europe and which have already started their sales. Uh new projects is a place 43:03 43 minutes, 3 seconds where we have invested a lot. We have been investing on automations. Uh we are actually going to increase it by further more extent. While I don't have a 43:12 43 minutes, 12 seconds immediate break up of all the numbers what we have said but I can only tell you that we have been very vigilant in spending and we also look at the returns 43:19 43 minutes, 19 seconds what we uh we we need to deliver as as as any capex which has been invested in the organization. So you can be rest 43:27 43 minutes, 27 seconds assured that all the capital investments what we are doing right now uh is going to have a good rate of return. Yes, I 43:35 43 minutes, 35 seconds for whatever reasons we have not seen those reflecting in the in the in our in the bottom line but I think 26 27 you 43:43 43 minutes, 43 seconds would see that as well. This is what I can share with you at this point of time. 43:48 43 minutes, 48 seconds Got it. That was helpful sir. Another question would be lying on the entire year FI26 just wanted to understand that 43:56 43 minutes, 56 seconds out of 1700 of revenue which we are doing what would be the one-off revenue like you mentioned in the quarter three 44:03 44 minutes, 3 seconds call that base B base B base B base B 44:05 44 minutes, 5 seconds base B base B base B base B base B base B base has B base B was B has some one-off revenues onetime revenues so just wanted to understand in this entire year was there any one oneoff orders and 44:14 44 minutes, 14 seconds also on the expense side apart from the exceptional loss of 75 crores was there any oneoff of cost which we have 44:21 44 minutes, 21 seconds incurred which will not be coming in next year. 44:28 44 minutes, 28 seconds Just can you please explain again your question? The first is about the revenue. 44:32 44 minutes, 32 seconds The oneoff revenue I think his question is was there any one-off revenue which only happened once? 44:38 44 minutes, 38 seconds Yeah, not in this year then 2526 it was not there. 44:42 44 minutes, 42 seconds So I I'm not that's an event which has happened. If you can please be specific about your question 44:50 44 minutes, 50 seconds and on the expense side also was there any one of expense which which was in entire FI26 which will not be reconing 44:58 44 minutes, 58 seconds in the coming year. 45:01 45 minutes, 1 second So for the full year like uh uh I have explained the 15 crores in the quarter 4. So when we worked out uh for the full 45:09 45 minutes, 9 seconds year so it was approximately 25 26 crores because like wage code act or some other right or some in one time in 45:18 45 minutes, 18 seconds increase in the cost so those things have happened. So we have just approximately one time expenses during the full year is around 25 26 crores. 45:30 45 minutes, 30 seconds Okay thank you sir. Uh and on the next line we have mentioned some few corn call few quarters back that we have 45:37 45 minutes, 37 seconds received Amler order and this this will be starting in FI26 or quarter 3/4. So has this order started and how big is this order? 45:48 45 minutes, 48 seconds So this order is executed now and uh we have uh I mean there are only 18 parts out of that uh 60% pep is through and 45:57 45 minutes, 57 seconds parts have streamlined another eight parts will go in next two quarters. So on a peak sale this would be somewhere 46:05 46 minutes, 5 seconds around 80 to 90 cr yearly sales. So I'm hoping uh maybe end of I mean sorry I mean second half of the next year this 46:14 46 minutes, 14 seconds will come into peak but yes uh what we also see the numbers have are pretty well I mean projects which we have 46:22 46 minutes, 22 seconds kicked off uh what we were anticipating the numbers uh I think the hit rate is more than 110%. 46:31 46 minutes, 31 seconds Got it. Got it. Uh apart from this just wanted to understand last full year our revenue growth growth was only 4%. or 46:38 46 minutes, 38 seconds 80% of business is coming from domestic which has grown at 10 12%. So are we losing any market share on the domestic upfront or uh if you could explain it. 46:52 46 minutes, 52 seconds So we have not lost any market share. Uh I think uh if you look at in fact our if you look at our two-heer segment we have 47:00 47 minutes done better than last year and in fact our market share has gone up. Even in passenger vehicles uh the models where 47:07 47 minutes, 7 seconds we supply in those models uh we are we are we are exactly at the same market share as we used to be earlier but there 47:16 47 minutes, 16 seconds since we are not there in all the models uh the corresponding growth is apparently not visible in our growth because uh in uh in the PV side we 47:25 47 minutes, 25 seconds supply to some bigger OEMs uh in some specific models where our shares is substantially high. So this could have 47:32 47 minutes, 32 seconds been the reason why the entire growth is also not reflecting in our domestic growth. Uh but this is something which we are we are now planning to correct by 47:40 47 minutes, 40 seconds adding new part numbers and new products to others as well. 47:45 47 minutes, 45 seconds Got it sir. So on this followup thing uh if you could just mention for full year FI26 what was our domestic growth? What 47:52 47 minutes, 52 seconds was our export D growth? Uh yeah and if you could also mention about two wheeler 47:58 47 minutes, 58 seconds PV anything quantitative would be suffic 48:06 48 minutes, 6 seconds segment wise bifocation for this year u two wheeler yeah there was a little up because of the market pull up so it was 48:13 48 minutes, 13 seconds near about 42% followed by passenger at 34 roughly 17 to 18% was commercial and also we 48:21 48 minutes, 21 seconds noticed noticed little traction in the non-auto to 5 to 6%. And if I read this in terms of the market, uh yes, uh if I 48:31 48 minutes, 31 seconds consider even the bean export indirectly what we share to the global region, it's somewhere around 20%. 48:39 48 minutes, 39 seconds Got it. And on the last question on the side of uh order book, we have mentioned that we have around 7,00,600 48:47 48 minutes, 47 seconds of order book executable over next five years. So just wanted to clear if my understanding is correct. Our current 48:54 48 minutes, 54 seconds base of FI26 odd revenue is around 1,800 crores. So that means we can with no no 49:01 49 minutes, 1 second new orders receiving we can clock around uh 25,000 crores of uh revenue by FI31 49:08 49 minutes, 8 seconds 18,000 1800 currently and uh 7,000 B is my understanding correct? 49:15 49 minutes, 15 seconds I'll just uh I mean put share some more remarks on this subject. So basically yes uh we were following on the new businesses whatever we have accured over 49:24 49 minutes, 24 seconds last 2 three years the only thing what we have done is we have just revalidated with the numbers because lot of uh 49:31 49 minutes, 31 seconds dynamics of the market especially the newer parts were changing. So what we have noted now if I consider period from 49:39 49 minutes, 39 seconds 2526 to 3031 that is 6 years. So I see a visibility of this new orders 49:46 49 minutes, 46 seconds with to a cumulative sales uh revenue of around 7600. 49:52 49 minutes, 52 seconds So this is for six year period not five and mainly thing that because earier when we were talking about so many 50:00 50 minutes orders like uh because we have seen the market is not as grown up what we were thinking for the EV. So that already we 50:08 50 minutes, 8 seconds have scaled down many some new intents were there. So even we they have even closed up their projects. So everything 50:16 50 minutes, 16 seconds we have updated and on that basis we have worked out this numbers and uh another is that uh now we are started uh 50:24 50 minutes, 24 seconds we are in process of negotiation many new orders in the like Sumir has explained in the uh Europe European 50:31 50 minutes, 31 seconds market and the US market. Hopefully this will be a very good new order book further in uh uh 26 27 or maybe in 27 28 we will see. 50:43 50 minutes, 43 seconds Got it. Just just wanted to understand like 1 1700 1,800 crores of revenue we are doing currently. We have 7,500 50:51 50 minutes, 51 seconds crores of order book in 6 years period which implies I know that order book cannot be evenly spreaded but that 50:58 50 minutes, 58 seconds implies 1,300400 crores of revenue in one year. So just wanted to understand that cumulative revenue will go from 51:06 51 minutes, 6 seconds 1,700 cr to 3,000 crores or from 1,700 crores to it will go to 9,9,500 crores. 51:13 51 minutes, 13 seconds No no on year-on-year basis maybe 3,500 cr. 51:18 51 minutes, 18 seconds 3,000. So we are expecting with no new order flows we are expecting topline to double in next 5 years based on the current new order book. 51:26 51 minutes, 26 seconds based on the current order because what I what I have explained like we are in process of finalizing very 51:35 51 minutes, 35 seconds lot of new orders in the coming in this year as well as in the next year. So that will be added up. 51:42 51 minutes, 42 seconds Got it. And uh you mentioned to some previous participant that we are planning of 140 crores of capeex in this year uh one around 140 crores. So what 51:51 51 minutes, 51 seconds this capeex is for for current year it is a maint how much how much would be maintenance capex how much would be the capeex for new plant you mentioned something about new plant if you could 52:00 52 minutes just give some idea about the so just to give you a rough estimate around 50 cr of cex is going to be a 52:08 52 minutes, 8 seconds maintenance capex and rest of the cex is going to be for the new project expansion 52:15 52 minutes, 15 seconds and uh by this 90 crores of new cex how much revenue we could target at its peak level. 52:21 52 minutes, 21 seconds This is too early to comment on this right now. Our objective is to create enough capacities to answer to lot of requests which are coming from Indian 52:30 52 minutes, 30 seconds and global pairs. But uh because uh because the capex what we are considering is not the complete capex which is supposed to be allocated to 52:38 52 minutes, 38 seconds this plant. It is going to be much more as the time goes. So, so to very specifically tell uh 90 crores in 52:45 52 minutes, 45 seconds relation to the revenue, it is slightly tough for us but it is a strategic move to create create bigger and bigger 52:52 52 minutes, 52 seconds capacities to answer all the RSQs and the on the inquiries which are coming from all over the places. 52:58 52 minutes, 58 seconds Right. So generally what kind of asset turnover we get from this type of project? So generally from from the new 53:06 53 minutes, 6 seconds business our target is always between 2.5 to three times at least and on the old old gloss block how much 53:14 53 minutes, 14 seconds we can do maximum old the existing assets I think your your 53:21 53 minutes, 21 seconds question is how much uh maximum we can do on existing capacities or yes yes 53:33 53 minutes, 33 seconds from the uh existing capacities what you're talking about the asset turnover you are talking about then we are all it is below than two that we you already 53:42 53 minutes, 42 seconds seen at present. So you know that what the real issue is that whatever the new orders are coming those are the very 53:49 53 minutes, 49 seconds complex parts and uh we need new investments for that new kind of technology machining lot of machining we 53:56 53 minutes, 56 seconds have to do and lot of automation. So that is the main reason key maybe you cannot see a big uh jump in the asset 54:05 54 minutes, 5 seconds turnover ratio but we have to focus more on the margin side. 54:14 54 minutes, 14 seconds Got it sir. And just on the margin up front currently you mentioned we have done peak margin of 12 12.5 13% kind of 54:21 54 minutes, 21 seconds aida margin in fi 24 and I think we are predicting for 10% and 20% aida margin 54:27 54 minutes, 27 seconds growth that brings around 12%. Uh so and although we had 25 crores of oneoff 54:34 54 minutes, 34 seconds items in the previous year so what is stopping us from making the margins of 13 13.5%. See 54:42 54 minutes, 42 seconds I've already I think I have already explained you uh see thing is uh nothing is stopping us. We we really want to do more and more uh but currently see I 54:52 54 minutes, 52 seconds cannot give you that number in in current situation where we are still surrounded by a major volatility. I have already said what I have said is 55:00 55 minutes something which we at least want to deliver which is a good step up on the last year but uh I can only assure you that quarteron quarter I would like to 55:08 55 minutes, 8 seconds come back to you showing how much progress we are making on that so the internal challenges to our team is going 55:15 55 minutes, 15 seconds to be far more aggressive uh but yes sitting today while we still don't have answer to lot of macroeconomic 55:23 55 minutes, 23 seconds situations it is very tough for me to commit a number to you which I can't foresee very clearly today but maybe as the year goes maybe I will be more 55:31 55 minutes, 31 seconds confident to give a various precise answer to your queries. 55:35 55 minutes, 35 seconds Fair point. Fair point. Thank you so much for answering my all question. I'll join back to the Q& thank you sir. 55:42 55 minutes, 42 seconds Thank you. The next question is from the line of Bhavy Doohi from Sushil Finance. Please go ahead. 55:50 55 minutes, 50 seconds Uh good evening and thank you for the opportunity. Uh my first question is uh most peers have talked about the revival 55:57 55 minutes, 57 seconds of the US commercial vehicle cycle. Are you seeing a similar positive trend for your uh commercial vehicle sales in FI27? 56:08 56 minutes, 8 seconds Yes. uh we are noticing I mean the newer engines which they have recently launched there is a good demand for those number and not just uh the dam 56:17 56 minutes, 17 seconds which I mentioned but yeah there are further accounts also like we supply charge a cooler tanks to the other locations we also have noticed the 56:27 56 minutes, 27 seconds quantum of RFQS from such accounts has increased so we are expecting some uh I mean very soon some 56:34 56 minutes, 34 seconds region further so that we can add little of the sale in the coming quarters going forward but but touch we see a good 56:43 56 minutes, 43 seconds visibility going forward on that just I would like to further explain about this we have to correlate what uh Rajiv and 56:51 56 minutes, 51 seconds Sumit is saying then because this is a very uh crucial that Sumit has explained about the new plan because what we have 56:59 56 minutes, 59 seconds seen then when we any new customer comes for the new business so always face a challenge of the capacities so unless until we have the new plants, new 57:08 57 minutes, 8 seconds capacities. So we cannot increase our top line. So that is the first step we have taken in this year and uh what we 57:17 57 minutes, 17 seconds are seeing in the last 6 months or maybe especially in the last 3 months huge huge customers are coming up with new 57:25 57 minutes, 25 seconds businesses, new parts, high volumes and at this moment lot of demand is there. 57:32 57 minutes, 32 seconds So but just to meet those demands we need capacities. So that first thing we are fixing in this year. 57:41 57 minutes, 41 seconds Okay. Uh thank you. And uh my next question is uh there has been a significant growth in the quarter for top line year on year as well as quarter 57:49 57 minutes, 49 seconds and quarter. Is this driven by volume growth or value growth? 57:56 57 minutes, 56 seconds This is a mix. Yeah. If you talk about the domestic market, yes, we noted a good jump from the two-heer segment. 58:02 58 minutes, 2 seconds Yeah. If you talk about our traditional partners like Royenfield, the numbers were high even hero numbers were high. 58:08 58 minutes, 8 seconds So we were able to grab little and we definitely focus on higher share of business with such accounts and even we 58:15 58 minutes, 15 seconds noted good momentum. Yeah. If you talk about passenger or commercial I mean we have noticed I mean uh be Mahindra or 58:22 58 minutes, 22 seconds Tata both are aggressively focusing to become a number two in this market and touchwood we have recently added few 58:30 58 minutes, 30 seconds parts from both the accounts. So this is adding us on the top line. And on the third front on commercial, yes, lot of 58:38 58 minutes, 38 seconds investment projects from the government we have noticed. Yeah. And that also is driving. And just to uh if I if I talk 58:47 58 minutes, 47 seconds about nonto also I see uh good numbers even segments like energy. So that has supported us a little on that gun also and accumulating toward the top line. 59:00 59 minutes Okay. Thank you. And uh so uh can you uh tell us what are the orders added in FI26? 59:12 59 minutes, 12 seconds Yes. Um 59:22 59 minutes, 22 seconds so last year we have added uh around 14 parts with 59:29 59 minutes, 29 seconds with seven customers. So this includes uh both domestic and global accounts and 59:36 59 minutes, 36 seconds this even includes uh I mean parts from the niche market like from Lamborghini 59:42 59 minutes, 42 seconds or Audi. for the European location. So good yeah good momentum we have drawn over 59:49 59 minutes, 49 seconds there. So this part uh will uh fetch near about a sale of around 140 crores 59:57 59 minutes, 57 seconds at the peak yearly sales of 140 cr at the peak and if I talk about over a period of say 3 to four years this will fetch us about 500 to 600 crores. 1:00:10 1 hour, 10 seconds Okay. Uh thank you for the answers. Uh that's it from my side. 1:00:17 1 hour, 17 seconds Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead. 1:00:24 1 hour, 24 seconds Um yes. Hello. 1:00:27 1 hour, 27 seconds Yeah. Also uh I had a question on your order book. Uh so you mentioned that we have the order book of 7600 crores. So 1:00:35 1 hour, 35 seconds uh does that also include the order from JR? 1:00:40 1 hour, 40 seconds Yes, it includes the orders from JR also. 1:00:43 1 hour, 43 seconds So what is the amount for that? If you can like give us that amount. 1:00:49 1 hour, 49 seconds So JR when we I mean when we got the alloy this was somewhere. 1:00:56 1 hour, 56 seconds So so so this I if I talk about uh JR precisely this would be no I think uh I think I should pitch in. 1:01:04 1 hour, 1 minute, 4 seconds I think we we cannot reveal a customer specific customer specific number. I think that's 1:01:10 1 hour, 1 minute, 10 seconds a legal bonding between us and JL. So my apologies for that because that would not go again in line with the contract. 1:01:19 1 hour, 1 minute, 19 seconds So sorry I can't share that with you. 1:01:21 1 hour, 1 minute, 21 seconds Okay. Okay. In the public and uh the another question I had so you mentioned that we'll have a 1.5% of increase in 1:01:29 1 hour, 1 minute, 29 seconds the EITA margin. So is that on the current margin of around 11.4% that we did in Sy 26? 1:01:39 1 hour, 1 minute, 39 seconds So first of all you have to understand the what are the real margins in the quarter four or maybe for the full year like we have explained because there is 1:01:46 1 hour, 1 minute, 46 seconds impact of the almonium as well as some uh one-time cost. So 1:01:52 1 hour, 1 minute, 52 seconds then uh we are already at that level and uh at least maybe when we are talking 1:01:59 1 hour, 1 minute, 59 seconds about the 11% margins maybe taking the impact of the external cost or or even the impact of the aluminium. show one 1:02:07 1 hour, 2 minutes, 7 seconds and a half% maybe uh 12 and a half to 13% we can say for the year. Okay. Okay. I Yeah. 1:02:16 1 hour, 2 minutes, 16 seconds Thank you. Thank you. 1:02:21 1 hour, 2 minutes, 21 seconds Uh sir, we have one more question. Can we take that? Okay, I think we can take the last one. 1:02:27 1 hour, 2 minutes, 27 seconds Sure. Ladies and gentlemen, this will be the last question from for today from Pri Sitani from Incred. Please go ahead. 1:02:35 1 hour, 2 minutes, 35 seconds Am I audible? Yes, please proceed. 1:02:42 1 hour, 2 minutes, 42 seconds Thank you so much for the opportunity to answer again. So, just wanted to ask last one question on front of uh debt side. We are planning of around 140 1:02:50 1 hour, 2 minutes, 50 seconds crores of uh 140 crores of KPX uh and we have very small amount of cash on the 1:02:57 1 hour, 2 minutes, 57 seconds balance sheet. So just wanted to know this will will be taking a debt for this or how are we planning to do this capex? 1:03:06 1 hour, 3 minutes, 6 seconds At this moment the plan that it has to be funded through the internal approvals. Sorry pardon me I did not hear you. 1:03:15 1 hour, 3 minutes, 15 seconds At this moment we have planned in our cash flow planning that it will be funded through the internal approvals. 1:03:22 1 hour, 3 minutes, 22 seconds So sir on that internal approvals part our credittor days for the FI26 have rose from 9900 days to 135 days. So how 1:03:31 1 hour, 3 minutes, 31 seconds is our credittor days generally for a year? It stays at 135 days or uh is it between 90 to 100 days? It depends 1:03:39 1 hour, 3 minutes, 39 seconds customer to customer because uh some customers we have negotiated we have given them a very good uh uh platform 1:03:46 1 hour, 3 minutes, 46 seconds for the vendor financing and uh on that basis a good negotiation for the days has happened the credit period and 1:03:53 1 hour, 3 minutes, 53 seconds they're also enjoying that uh the cost what they are paying. So on average basis how would it last? 1:04:03 1 hour, 4 minutes, 3 seconds It it depends on uh commodity to commodity but uh uh 90 plus almost all customers are all vendors are there. 1:04:12 1 hour, 4 minutes, 12 seconds Got it. But thank you. Thank you so much sir. Thank you for it. 1:04:16 1 hour, 4 minutes, 16 seconds Thank you. As that was the last question for today. I now hand the conference over to the management for closing comments. Thank you and over to you sir. 1:04:27 1 hour, 4 minutes, 27 seconds Okay. Okay. Thank you everyone. And uh before we conclude uh I would like to sincerely thank uh all the investors, analysts and stakeholders for your continued trust, engagement and support. 1:04:38 1 hour, 4 minutes, 38 seconds As discussed during the call, while the external environment remains dynamic, we believe the econ is well positioned for the future. Healthy momentum in the 1:04:46 1 hour, 4 minutes, 46 seconds domestic business, encouraging customer engagement across markets and our continued investments in technologies, capabilities, and operational excellence 1:04:54 1 hour, 4 minutes, 54 seconds provide us confidence in the company's long-term growth prospects. We remain focused on disciplined execution, strengthening customer relationships and 1:05:02 1 hour, 5 minutes, 2 seconds building a more agile and future ready organization while maintaining a prudent approach towards growth and capital allocation. Uh thank you once again for 1:05:10 1 hour, 5 minutes, 10 seconds joining us today. We look forward to interacting with all of you in the next quarter. Thank you. 1:05:16 1 hour, 5 minutes, 16 seconds Thank you members of the management. On behalf of Alicon Gas Loy Limited that concludes this conference. We thank you for joining us and you may now 1:05:23 1 hour, 5 minutes, 23 seconds disconnect your lines. Thank you. Thank you.