Ashok Leyland Limited — Q4 FY26

Ashok Leyland Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=NSPD-i1AYgw Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Ashok Cleland's Q4 FI26 earnings conference call. As a reminder, all participant lines will be in the 0:09 9 seconds listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:17 17 seconds operator by pressing start and zero on a touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. MKkesh Sharavs. Thank you and over to you sir. 0:42 42 seconds Hello, I'm audible. Yes sir. Yeah, you're audible. 0:48 48 seconds Okay, great. Um, thank you. Good evening everyone. MKkesh Saratog and this talk. 0:53 53 seconds Appreciate everybody logging in this 4K FYI26 earnings call for showing limited from the management team. I'm pleased to 1:00 1 minute host Mr. Shinaral, managing director and CEO, Mr. KM Balanji, president finance and CFO along with the investor 1:07 1 minute, 7 seconds relations team. I now hand over the call to Mr. Agarwal for his opening remarks post which we'll begin with the Q&A. 1:14 1 minute, 14 seconds Over to you sir. 1:18 1 minute, 18 seconds Good afternoon everyone and thank you for your trust in Ashoklland. As always I am pleased to report that FI26 has 1:26 1 minute, 26 seconds been a truly milestone year for our company. We achieved all-time high CV 1:32 1 minute, 32 seconds volume revenue profit and cash surplus marking the best annual performance in 1:39 1 minute, 39 seconds Ashoklland's history. Building on FI25 record results, we have delivered another year of broad-based growth 1:48 1 minute, 48 seconds across all our core businesses, demonstrating the resilience of our operations and the trust that our 1:55 1 minute, 55 seconds customers play place in us. Basis standout performance of FI26, the board of directors have recommended a second 2:03 2 minutes, 3 seconds interim dividend of rupees 2.50 per share. 2:09 2 minutes, 9 seconds Q4 FI26 provided a strong finish to the year with a solid performance that reflects the strength of demand in the 2:17 2 minutes, 17 seconds CV industry and our disciplined executions. 2:22 2 minutes, 22 seconds Domestic vehicles volume growth led by GST 2.0 rate rationalization gained 2:28 2 minutes, 28 seconds further momentum during the quarter. Q4 domestic MSCV industry volume was higher 21.5% 2:37 2 minutes, 37 seconds YI and for full year it was higher 12% YI a short plent domestic MSCB volume 2:46 2 minutes, 46 seconds grew in line with industry with market share of a healthy 30.8% 8% for quarter 4. Ashoke clearen domestic MSCV trucks 2:56 2 minutes, 56 seconds volume for FI26 was 105,95 units with market share of 30.2% 3:05 3 minutes, 5 seconds and MSCV bus volume was 20,840 units with a market share of 34.1%. 3:13 3 minutes, 13 seconds Ashoke len continued its leadership position in MCV buses. Ashoken domestic 3:20 3 minutes, 20 seconds LCV volume for Q4 was at 21,8001 units higher 23% YI growth better than 3:30 3 minutes, 30 seconds that of industry. LCV vahan market share for Q4 was 12.8% with a gain of 90 basis points on YI 3:39 3 minutes, 39 seconds basis. For full year LCV volume was 74,322 3:45 3 minutes, 45 seconds units. Higher 12% YI and full year LCV vahan market share stood at 12.7% 3:54 3 minutes, 54 seconds higher 80 basis points YI. This is the highest ever annual volume recorded in 4:00 4 minutes LTV. Our export volumes for full year reached a historic high of 18,082 units, 4:09 4 minutes, 9 seconds delivering a robust growth of 18.5% over the previous year's 15,255 4:16 4 minutes, 16 seconds units. For the quarter volume at 5322 units, 5,322 4:23 4 minutes, 23 seconds units was marginally lower YI primarily due to international logistics issues faced in March. Overall CV volume scaled 4:33 4 minutes, 33 seconds a new all-time high of 220,437 units, [snorts] surpassing the previous 4:41 4 minutes, 41 seconds peak of 197,366 units achieved in FI19. 4:48 4 minutes, 48 seconds This includes defense vehicles. Our non CV businesses also demonstrated remarkable growth. Domestic aftermarket 4:57 4 minutes, 57 seconds revenue for the quarter was up 11.2%. 2% YI and higher 9.5% for the full year. 5:06 5 minutes, 6 seconds FI26 revenue from power solutions business was higher by 16.4% YI. Revenues from defense business 5:15 5 minutes, 15 seconds including revenue from our defense subsidiary ALDS was higher 20% YI. 5:22 5 minutes, 22 seconds Defense order book and tender wind pipeline remains ever strong. 5:28 5 minutes, 28 seconds Coming to financial performance, Ashokland achieved all-time high quarter 4 revenue aida and operating PBT. 5:36 5 minutes, 36 seconds Revenue for Q4 was at 14,161 cr higher by 19% YI. IIDA was at rupees 5:46 5 minutes, 46 seconds 2,66 crores higher by 15.3% YI. FI26 revenue was at rupees 44,07 crores higher by 13.6%. 6:00 6 minutes IDIDA for the quarter was at 2066 crores and IIDA margin was at 14.6%. 6:09 6 minutes, 9 seconds With full year IIDA margin at 13% we have now truly entered the teen bracket. 6:16 6 minutes, 16 seconds This is an improvement of 30 basis points from last year. 6:21 6 minutes, 21 seconds [clears throat] 6:21 6 minutes, 21 seconds Q4 PBT before exceptional items was at rupees 1,99 6:27 6 minutes, 27 seconds cr higher 14% YI PAT excluding exceptional items was at rupees 1,45 6:35 6 minutes, 35 seconds crores higher 13% YI full year PBT before exceptional items was rupes 5,163 6:44 6 minutes, 44 seconds cr higher 22% yi and pat incl excluding ing exceptional items I repeat excluding 6:53 6 minutes, 53 seconds exceptional items was at rupees 3,914 cr may note that during Q3 of FI26 on 7:02 7 minutes, 2 seconds account of the new labor code there was a one-time charge of rupees 308 crores 7:10 7 minutes, 10 seconds material cost as a percentage of revenue for Q4 was 71.4% 4% higher by 80 basis 7:18 7 minutes, 18 seconds points on YI basis. For full year the ratio was at 71.4% again 10 10 basis points higher than last year. 7:30 7 minutes, 30 seconds Despite commodity headwinds we could maintain and even improve our gross margins. This was made possible through 7:38 7 minutes, 38 seconds better price realizations, rigorous cost-saving efforts and continued focus on improving product and business mix. 7:47 7 minutes, 47 seconds Capex for the quarter was at rupes 203 crores and cumulatively at rupees 1,50 7:54 7 minutes, 54 seconds crores for the year. Most of the capital expenditure has been deployed towards new products include including future 8:01 8 minutes, 1 second technology development alternator alternate powertrain technologies and electric vehicles. Investments in 8:09 8 minutes, 9 seconds subsidiaries in Q4 was 371 cr primarily towards repayment of loans in the optier 8:16 8 minutes, 16 seconds books. Investments for full year was at 387 cr. 8:23 8 minutes, 23 seconds Our cash position net of debt has got even stronger. We had net cash of rups 5,899 8:32 8 minutes, 32 seconds cr at the end of the year an increase of more than 1,650 crores yi. 8:40 8 minutes, 40 seconds We are resolutely pursuing the path of premiumization working diligently on delighting our customers with superior products and 8:48 8 minutes, 48 seconds services and maintaining operational discipline. The highlight of the year was our launch of Hippo tractors and 8:57 8 minutes, 57 seconds Taurus tippers with industry best power and torque delivering best-in-class TCO. 9:04 9 minutes, 4 seconds In MAV category, we launched new trucks with improved powertrain of 280HP. 9:12 9 minutes, 12 seconds In LCV segment, we launched new 4.1 tados with industry best payload. We 9:19 9 minutes, 19 seconds also launched our most advanced LCB product Phoenix for the export markets. 9:26 9 minutes, 26 seconds Our product pipeline remains strong with substantial portion of our capex being allocated in creating new product capabilities. 9:36 9 minutes, 36 seconds For strengthening our service delivery, we added more than 100 touch points each in our MSCV and LCV businesses. More 9:44 9 minutes, 44 seconds than 45% of our touchpoint editions have been in the north and the northeast regions. At the end of FI26, Ashoken 9:54 9 minutes, 54 seconds network has a total of 2,14 touch points, 1159 for MCV and 945 for 10:02 10 minutes, 2 seconds LCV. In international markets, we expanded our network to four new countries in the previous year. 10:13 10 minutes, 13 seconds A particularly noteworthy achievement in FI26 was our progress in electric mobility and alternative propulsion 10:20 10 minutes, 20 seconds vehicles, areas that are critical to our future growth. During Q4 FI26, we announced groundbreaking for a green 10:29 10 minutes, 29 seconds field battery pack manufacturing facility at Pille Pakam near Chennai intended to support our electric 10:36 10 minutes, 36 seconds mobility programs. Our EV subsidiary Switch Mobility India delivered a standout performance attaining net 10:44 10 minutes, 44 seconds profitability in FI26 a major milestone in our electrification journey. During 10:51 10 minutes, 51 seconds the year, Switch India achieved market leadership position in electric buses as well as in two to four ton electric LCV 11:00 11 minutes market. Switch significantly scaled up deliveries of electric buses and light vehicles during the year with 1,530 11:09 11 minutes, 9 seconds buses higher 238% YI and 1,600 electric LCVS higher 56% YI 11:20 11 minutes, 20 seconds order booked at the end of the year for switch India stood at 1,600 units. 11:26 11 minutes, 26 seconds O Mobility our e-mass subsidiary improved operational fleet to over 1,400 ebuses now injalen finance our vehicle 11:35 11 minutes, 35 seconds financing subsidiary delivered robust growth in FI26 with its AUM expanding by 11:42 11 minutes, 42 seconds 24 years yearon year to approximately 59,000 crores. HLS strong performance 11:49 11 minutes, 49 seconds not only contributed to our consolidated results but also enabled vehicle sales through continued financing support to 11:57 11 minutes, 57 seconds our customers. HLF's PAT at rupees 491 cr was higher 20% YI. 12:06 12 minutes, 6 seconds Hinduja Housing Finance or HHF similarly saw its AUM grow by 15% YI to 12:13 12 minutes, 13 seconds approximately 16,000 crores on back of steady demand. HHF PAT at rupees 387 cr 12:22 12 minutes, 22 seconds was higher 4% YI both HLF and HHF maintain healthy asset 12:28 12 minutes, 28 seconds quality with consolidated net NPA at 1.4% 4% approximately delivering solid 12:36 12 minutes, 36 seconds profitability alongside prudent risk management augers well for the future growth of both the financial companies. 12:44 12 minutes, 44 seconds Reverse merger of HLF with NDL ventures is progressing as per plan and should get consumated within this or the next quarter. 12:53 12 minutes, 53 seconds We remain focused on our ESG commitments. Our road to school and road to livelihood program continues to grow 13:01 13 minutes, 1 second extending their reach to about 6.3 lakh students. Now our Dow Jones sustainability index ESG score has 13:10 13 minutes, 10 seconds improved significantly and we are now in global top 2% of the industrial engineering and electrical equipment 13:17 13 minutes, 17 seconds companies. In our commitment towards RE 100, we have achieved a 77% RE status 13:25 13 minutes, 25 seconds against 69% in FI25 with our Tamil Nadu plants now at 91% RE 100. In summary, 13:35 13 minutes, 35 seconds FI26 was an outstanding year for Ashokand as we executed our strategy effectively and delivered record results while planting seeds for future growth. 13:49 13 minutes, 49 seconds Looking forward, we are entering the new fiscal year with cautious optimism. 13:54 13 minutes, 54 seconds Demand drivers for commercial vehicles remain positive overall. However, we are mindful of the macroeconomic headwinds 14:01 14 minutes, 1 second such as global economic uncertaintities, commodity price volatility and diesel price increases. However, our 14:10 14 minutes, 10 seconds foundations remain strong. We will keep innovating attuned to our customers need with intense operational discipline and 14:19 14 minutes, 19 seconds heightened focus on prudent fiscal management. Ashokand is well positioned to navigate the road ahead and continue 14:27 14 minutes, 27 seconds creating long-term value for our stakeholders. 14:32 14 minutes, 32 seconds Thank you once again for your continued trust on us. 14:43 14 minutes, 43 seconds hand it over back to the moderator. Now I hand it back. I hand it over back to the moderator. 14:50 14 minutes, 50 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press char and one on the touchdown telephone. 14:58 14 minutes, 58 seconds If you wish to remove yourself from the question queue, you may press char and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question assembles. 15:12 15 minutes, 12 seconds The first question is from the line of Kapil Singh from Namora. Please go ahead. 15:18 15 minutes, 18 seconds Hi, good evening sir. Congratulations on a strong performance. Uh my first question is on demand itself. Uh recently we have seen fuel price hikes. 15:28 15 minutes, 28 seconds Uh so just wanted to check uh what are the demand signals you are observing? 15:33 15 minutes, 33 seconds Has there been any change and for FI27 as a whole uh is there any outlook you 15:40 15 minutes, 40 seconds would like to give on the growth uh for MCVs? Uh similarly on export also if you can share the outlook. 15:52 15 minutes, 52 seconds Yeah, thank you Capil. Uh it's a very relevant question and we do hear a lot of noise in the media uh about several 16:01 16 minutes, 1 second things but uh I just wanted to clarify what our outlook or our view about the market is. uh of course you know that 16:11 16 minutes, 11 seconds since October the market has grown uh very strongly on both MSCV side and the 16:17 16 minutes, 17 seconds LCB side and the reason was basically uh one uh the effect of the GST 16:25 16 minutes, 25 seconds rationalization which reduced the prices by about 10%. And the other reason was also that this JST rationalization acted 16:33 16 minutes, 33 seconds as a trigger uh for replacement of the age fleets and we know that the aging of the fleet is at its all-time high. Now 16:42 16 minutes, 42 seconds uh having said that Q3 and Q4 had very strong growth uh and April also was uh 16:49 16 minutes, 49 seconds very positive. In May we are not seeing any uh significant slowdown both on the 16:57 16 minutes, 57 seconds MCV and LCV side. However, there is a kind of uh uh sentimental sentiment 17:06 17 minutes, 6 seconds attached to the diesel oil prices that is there in the market uh which is affecting the current logistics 17:13 17 minutes, 13 seconds operations also uh in many routes and in many areas. However, I think the the 17:20 17 minutes, 20 seconds resilience of the demand based on GST and on the replacement factor is uh is 17:27 17 minutes, 27 seconds acting very very strongly and it is protecting a minimum baseline on the CV demand right now. Of course, we have to 17:36 17 minutes, 36 seconds watch how the diesel oil price situation in terms of availability and in terms of the price hikes how these pan out. So to 17:44 17 minutes, 44 seconds that extent we have to have a kind of a wait and watch uh uh approach. Uh but I 17:52 17 minutes, 52 seconds can tell you for sure that when we are talking to our customers and the big fleet owners and I was in traveling in the eastern region uh last week or a 18:01 18 minutes, 1 second couple of weeks back I think that basic base level demand resilience is very very strong 18:09 18 minutes, 9 seconds on the export side. uh you know the situation is very similar at least in our home markets of GCC, Africa and SAR 18:19 18 minutes, 19 seconds uh although the oil prices has gone up quite significantly uh but uh we are not seeing any 18:26 18 minutes, 26 seconds significant slowdown in the demand on the retail level. Now of course export volumes may get still affected because 18:33 18 minutes, 33 seconds of the international logistics situation like even in March and also in April uh while there was demand we could not ship 18:42 18 minutes, 42 seconds out the quantities according to the demand uh because of logistics issue. 18:48 18 minutes, 48 seconds So, so exports might drop uh I would say in Q1 although things are now coming 18:54 18 minutes, 54 seconds back to normaly as we speak. Uh uh the situation in our factory in RAK uh also 19:04 19 minutes, 4 seconds we had to drop the production there uh because of local challenges. Uh so we had some effect in March and also in 19:12 19 minutes, 12 seconds April but now we are trying to bring it back to 100% capacity utilization. It may take few more weeks to do that. Uh 19:20 19 minutes, 20 seconds but overall the demand scenario is not very concerning. 19:26 19 minutes, 26 seconds Okay, that's good to hear. Uh so second question was on margins. Uh the gross margins have seen an improvement this quarter. You alluded to it. So if you 19:35 19 minutes, 35 seconds could just elaborate uh how much was the price hike we took and uh what was the commodity cost pressure uh that was felt 19:43 19 minutes, 43 seconds during the quarter and also the outlook for next quarter like if you've taken any price hikes and how how much commodity pressure uh should we expect in the coming 1 QFI 27. 19:56 19 minutes, 56 seconds Thank you. Thanks for the question. 20:00 20 minutes actually uh we have taken a price increase of about uh 1% uh effective 20:07 20 minutes, 7 seconds January and uh we could uh uh continue to recover that 1% uh for the entire 20:15 20 minutes, 15 seconds quarter. Okay, that was the uh the the recovery part. On the cost side, uh cost side there has been some uh increases 20:24 20 minutes, 24 seconds which have happened on the cost but we have been uh successful enough to uh get the savings on account of this value 20:33 20 minutes, 33 seconds engineering and esourcing and commercial negotiations etc which is much higher than uh the kind of commodity increase 20:41 20 minutes, 41 seconds which we witnessed in Q4. That is where we have uh we have sort of managed the commodity cost increases uh through the 20:50 20 minutes, 50 seconds value engineering and esourcing savings that has really helped us on the uh gross margin front. 20:58 20 minutes, 58 seconds Okay. And for uh one uh what is the outlook on both pricing and cost? See pricing we have taken a price increase 21:07 21 minutes, 7 seconds of about 1 one and a half% but we'll have to wait and see whether we'll be able to sustain the kind of price increase for the full quarter and on the 21:14 21 minutes, 14 seconds commodity cost side there has been an increase there has been a significant increase which has happened on the commodity cost side predominantly steel 21:23 21 minutes, 23 seconds uh so there it is going to be a challenge which we'll be facing uh as far as 21:30 21 minutes, 30 seconds Q1 is concerned There any number you can share like what's the range of commodity pressures we are facing? 21:39 21 minutes, 39 seconds No it's too early to give a range or a number capel. 21:44 21 minutes, 44 seconds Okay. Okay. Thank you. That's all from my side. 21:50 21 minutes, 50 seconds Thank you. The next question is from the line of mummand from Anandrati Institutional Equities. Please go ahead. 21:58 21 minutes, 58 seconds Yeah. Uh thank you sir for the opportunity and congrats on a good set of numbers. Uh just firstly just on the demand side uh post CST we see a good 22:07 22 minutes, 7 seconds demand from the small transporters. I just want to check how how that has changed in recent times uh uh with the 22:14 22 minutes, 14 seconds with the price is seen in the vehicle uh and also the diesel and disruption what is happening in the market sir. 22:23 22 minutes, 23 seconds Yeah thank you thank you for the question. I mean uh as far as the impact of the GST was concerned uh you know you 22:32 22 minutes, 32 seconds are aware that it had a slightly different level of impact uh of course positive impact on various segments of 22:39 22 minutes, 39 seconds the CV industry. Uh the LCVs the smaller vehicles were the ones that uh that had 22:46 22 minutes, 46 seconds the most positive impact followed by the intermediate commercial vehicles or ICVs and then the heavy duty trucks. uh 22:54 22 minutes, 54 seconds within the heavy duty trust I think tipper demand uh has been more stronger than the rest uh because of various 23:01 23 minutes, 1 second infrastructure activities also helping the demand. Now uh this also indicates 23:07 23 minutes, 7 seconds that uh the demand push was uh better or stronger on the retail side. Uh and also 23:15 23 minutes, 15 seconds the fact is that the fleet owners were uh still kind of uh you know um making 23:23 23 minutes, 23 seconds their bets in terms of calculating the real impact of GST because of input tax credit issues etc. So the fleet owner 23:30 23 minutes, 30 seconds demand started uh surging from December onwards while the first two months it was largely on the retail side. So so 23:39 23 minutes, 39 seconds basically that is the scenario and as I said to in response to the previous question we think this is a fundamental 23:47 23 minutes, 47 seconds factor that will play out even in the long run that is for next several quarters. Now the price increase uh 23:54 23 minutes, 54 seconds there was no price increase actually taken uh between October and March and uh but from April 1 we have taken a 24:04 24 minutes, 4 seconds price increase like Paraji said between 1 and 1 and a half% depending on various categories of products uh but you know I 24:13 24 minutes, 13 seconds mean if you compare that one or one and a half% with the 10% advantage that GST created it is not a it is not a 24:20 24 minutes, 20 seconds significant price increase and in any case taking one one and a half% over 6 months of period is a very normal 24:27 24 minutes, 27 seconds phenomena in the CV or the larger automotive industry right so I think let us not be too concerned about the price increase and its impact that has 24:36 24 minutes, 36 seconds happened uh however you know the situation on the ground is a little bit challenging uh for for the for truck 24:44 24 minutes, 44 seconds operators and mainly the reason is uh availability of diesel not throughout the country but in certain pockets there 24:52 24 minutes, 52 seconds are facing some problems with the availability of diesel and some of the pumps have even rationed it. When we speak to the government, the government 25:00 25 minutes says there is no shortfall of supply. So some indic some people indicate that probably this is because of the holding 25:06 25 minutes, 6 seconds etc you know or a general fear in the minds of the people as to whether diesel 25:13 25 minutes, 13 seconds supply will actually get impacted but uh but the situation is quite manageable. I mean like I said last year, last month I 25:22 25 minutes, 22 seconds was in eastern zone and I met several fleet operators there. So so I think they have clearly laid out their plans 25:30 25 minutes, 30 seconds for next 12 to 18 months in terms of how much fleet they will add into and what kind of fleet replacement they will do 25:38 25 minutes, 38 seconds and they are all sticking right now they are all sticking to those plans. 25:45 25 minutes, 45 seconds Got it sir. Thanks for this answer and just if you can share how would the mix of a of a retail or the small transporter versus fleet uh institutional bias. 25:58 25 minutes, 58 seconds See generally at the industry level uh retail uh would be about 55 to 60%. 26:05 26 minutes, 5 seconds Uh and uh the rest of it will be fleet. 26:08 26 minutes, 8 seconds I'm talking about heavy duty trucks mainly but when you look at ICV and LCVs the retail quantum is much retail proportion is much higher but for heavy duty trucks it ranges between 55 to 60%. 26:19 26 minutes, 19 seconds Uh right now and the rest is fleet. Got it sir. Uh thanks for this answer. 26:25 26 minutes, 25 seconds Uh sir just on the financial side uh uh this uh the operating income has seen a rise to 86 cr versus 56 cr. Any reason 26:33 26 minutes, 33 seconds for that increase? Uh and lastly uh what are plans for FI27 capex and the investments? 26:42 26 minutes, 42 seconds On on the other uh income the Sunday income side there is no specific uh reason except that uh uh that we had 26:51 26 minutes, 51 seconds some returns which we have got on account of the investment of the surplus funds. So that is the reason for the 26:58 26 minutes, 58 seconds increase in the the sunary income and uh on the capital expenditure side 27:05 27 minutes, 5 seconds last year we incurred about about 1,000 crores. So next year also the plan would be uh to incur about 750 27:14 27 minutes, 14 seconds to,000 crores on the capital expenditure side. and on the investments uh we will decide based on the requirement of uh uh 27:23 27 minutes, 23 seconds the the subsidies even in the previous calls I have stated many of you wanted to know how much we'll invest before 27:31 27 minutes, 31 seconds this year end so we went uh I indicated to you at that time itself that we will go based on the requirement of the the 27:39 27 minutes, 39 seconds funds by the subsidies and we have actually repaid about 30 million out of the 80 million 27:47 27 minutes, 47 seconds loan which was there with the uh with the opt with the switch UK uh company. 27:53 27 minutes, 53 seconds Uh this I had indicated and we have not dispersed any other funds to any other subsidy company during the quarter and we will do that based on the requirement 28:01 28 minutes, 1 second and we have plans as indicated to you earlier. Uh some of the subsidy companies like Hinduja Leand finance and its subsidy Hinduja housing finance as 28:10 28 minutes, 10 seconds well as M these would require funds. Of course, switch you would have noticed switch is in a very uh comfortable position now. They have made profits. 28:18 28 minutes, 18 seconds They have moved for the first time. They have reported a profit after tax of about 100 crores, 100 plus crores. So they are all in a comfortable position. 28:28 28 minutes, 28 seconds But for the needy subsidies suddenly know we will step in and then we will provide the funds and that will absolutely be on the need based hand. 28:37 28 minutes, 37 seconds It'll be very difficult for me to put a number now and then uh give you the details on that. 28:45 28 minutes, 45 seconds Got it sir. Thank you sir for the opportunity. 28:50 28 minutes, 50 seconds Thank you. The next question is from the line of Ben Singh from Morgan Standi. Please go ahead. Uh hi team thanks for the opportunity. 28:58 28 minutes, 58 seconds Uh in the opening remarks you shared the net cash number. Uh I missed that. Could you repeat that again? 29:05 29 minutes, 5 seconds that is 5899 crores that is end of because the December net cash was 29:13 29 minutes, 13 seconds 2600 crores so that's a quite a good jump between December to March um outside of you know that's very that's very typical 29:22 29 minutes, 22 seconds of the automotive industry especially this is the working capital changes that came through for you yeah because demand CV demand in Q4 is 29:31 29 minutes, 31 seconds very high you know so we have to purchase a lot of raw raw material for that and the payables of those raw material at the peak level is comes into April and May. 29:41 29 minutes, 41 seconds Correct. So I think it is better to compare it with last year because that phenomena is there for Q4. Uh at the end 29:48 29 minutes, 48 seconds of last year like I said uh you know it was 1,650 crores lesser than what is at the end of so that is the real gain in 29:56 29 minutes, 56 seconds the cash. Uh not okay to look at Q3 versus Q4 to that extent. Correct. 30:03 30 minutes, 3 seconds Uh and uh secondly team could you share us what was your FI26 uh numbers was pairs uh defense and uh exports 30:13 30 minutes, 13 seconds defense and exports you want the revenue numbers yeah if you could just uh basically the non-track item uh revenue numbers for Q4 or Q4 you want 30:22 30 minutes, 22 seconds for FI26 only you can share yeah FI FI26 uh spares would be around 3,800 crores uh power solution business would 30:31 30 minutes, 31 seconds be around 1,400 crores and exports it has crossed 3,000 crores. It is at 3,200 crores. 30:39 30 minutes, 39 seconds Right. Thanks. Thanks. Any number on? Yeah. Defense and standalone how much? Yeah. 30:45 30 minutes, 45 seconds Defense is at 800 crores in the books of AM but overall defense business is at 1200 crores including our subsidiaries. 30:53 30 minutes, 53 seconds Defense business. 30:55 30 minutes, 55 seconds Right. Right. and and team uh lastly just next year for subsidiaries uh from the you know like we've seen turnaround this year but how to look at subsidiary 31:03 31 minutes, 3 seconds performance next year subsidiaries actually they are doing well especially you know Hinduja land 31:10 31 minutes, 10 seconds finance and Hinduja housing finance they are growing at uh uh at a 15 to 20% 31:17 31 minutes, 17 seconds basis year on year while on one side it is good to note that the growth is quite good and it is continuous but on the 31:24 31 minutes, 24 seconds other side they would also require funds at times um at times because I mean the 31:31 31 minutes, 31 seconds the tier one capital sometimes is low compared to the peers in the same 31:37 31 minutes, 37 seconds industry. So that is also in a way requiring us to invest in in Hinduja 31:45 31 minutes, 45 seconds housing as well as Hindu land finance and on uh switch uh it is growing uh very well. You would 31:53 31 minutes, 53 seconds have seen the numbers. The numbers have gone uh several times especially on the busel side as well as on the light commercial vehicle side also we have sold about 1,600 32:02 32 minutes, 2 seconds uh ELCVs. The going is quite good now and for the first time I mean as per our plan as indicated earlier in our earlier 32:10 32 minutes, 10 seconds conference calls the company has touched uh touched uh profit figure PA is about 32:17 32 minutes, 17 seconds 100 100 plus crores and they have quite a good good and a strong order book position also about 1,600 vehicles order 32:25 32 minutes, 25 seconds book position they have from various uh state transport undertaking as well as on the private requirement side uh so I 32:32 32 minutes, 32 seconds mean overall It is good and on the own side as indicated earlier they might require some funds because they will have to buy the vehicles and then they 32:41 32 minutes, 41 seconds will have to run it for the STUs. So they might require some funds wherein Ashokand might have to chip in with some 32:50 32 minutes, 50 seconds investments in M. Similarly as I indicated to you we may also have to require invest some funds in India land 32:58 32 minutes, 58 seconds finance as well as in Induja housing finance. So these will be the two companies that would require uh some funds uh to uh to towards their growth 33:07 33 minutes, 7 seconds plans and team earlier in September we had talked about the CLB uh partnership 33:14 33 minutes, 14 seconds right on the battery ecosystem uh any update on that uh is that uh I assume it's not a part of the 33:21 33 minutes, 21 seconds investments that you are talking about right no the battery business is currently housed within Ashokan only so it's not 33:30 33 minutes, 30 seconds housed in a separate subsidiary yet. Uh so all those investments would be part of our own capex that number Baji has 33:37 33 minutes, 37 seconds given you and as far as the business itself is concerned uh it is uh moving on track. Uh we have uh already planned 33:46 33 minutes, 46 seconds we have already done the groundbreaking ceremony of setting up this battery pack manufacturing facility at Pille Pakam which is uh not very far from Chennai. 33:55 33 minutes, 55 seconds We should be able to start uh construction work within the next 8 to 10 weeks I would suppose and the target 34:03 34 minutes, 3 seconds for the start of production would be Q2 of next year. 34:08 34 minutes, 8 seconds And uh on cell manufacturing uh no we are starting with pack first uh it is a phased approach uh that we are 34:17 34 minutes, 17 seconds adopting. So we are starting with pack uh for captive consumption and also for uh energy storage systems. In the second 34:26 34 minutes, 26 seconds phase we will expand the pack capacity to get into non-captive demand also on the auto auto automotive side and then in the third phase we will look at uh cell manufacturing. 34:37 34 minutes, 37 seconds So so it is a phased approach that we are following because uh because one thing is manufacturing but also the other thing is the penetration of 34:45 34 minutes, 45 seconds electric vehicle in India. So we'll have to just dovetail our own manufacturing 34:52 34 minutes, 52 seconds investments with the demand scenarios that will emerge in the country. 34:57 34 minutes, 57 seconds Right. And and lastly just see any thoughts on PLI? Uh you know when do we expect that uh on on the electric side? 35:08 35 minutes, 8 seconds PLI uh we are still trying to match up to those thresholds uh as per the government scheme. So there are some investment proposals that are coming up. 35:18 35 minutes, 18 seconds I think we should be able to provide you a better update on that uh hopefully in four to five months from now. 35:26 35 minutes, 26 seconds Okay, great. Great. Thanks for that. Thanks. 35:31 35 minutes, 31 seconds Thank you. The next question is from the line of Prammouth Kumar from UBS Securities. Please go ahead. 35:38 35 minutes, 38 seconds Yeah. Uh thanks a lot for the opportunity sir. Uh so my before I go into the business question the first a clarification uh can you just share the 35:45 35 minutes, 45 seconds 4Q non-vehicle revenue uh bit bal like how you shared the spares and the exports and the defense bit for the full year can you share it for 4q and how has 35:53 35 minutes, 53 seconds it grown uh year-on-year basis uh 4q spares is uh 36:01 36 minutes, 1 second uh 60 crores uh for the spares last year number was 36:08 36 minutes, 8 seconds 950 crores Engines uh 400 425 crores last year at same level 36:16 36 minutes, 16 seconds uh exports 1,00 crores last year was 825 crores defense 275 crores last year was 170 36:25 36 minutes, 25 seconds crores. So these non-vehicle revenue uh do you expect the momentum to continue 1 because we do have a a bit of a problem on the commodity and even on the demand 36:33 36 minutes, 33 seconds side. So I'm just trying to see will these will we get the benefit what we got in 4Q in the subsequent quarters from non-vehicle revenue or there could be some moderation there as well or seasonality rather. 36:43 36 minutes, 43 seconds As of now it appears that the demand continues to be there for the non vehicle side. So we don't see any dip 36:52 36 minutes, 52 seconds happening on the non-vehicle revenue side. 36:55 36 minutes, 55 seconds Yeah that's good to hear and sh question to you. Uh it's understandable given the macro u uh and the situation uh what he 37:04 37 minutes, 4 seconds explained um we we've all been working with mids single digit to high single digit industry growth for next year for fiscal 27 um and this is even with the 37:13 37 minutes, 13 seconds second half base kind of coming in which is quite daunting uh but now given the current scenario if you can just what 37:20 37 minutes, 20 seconds will be the conservative or if you can give us a range of uh growth which you expect assuming that the situation doesn't resolve or the commodity 37:28 37 minutes, 28 seconds escalation doesn't reverse out soon and and and which which could be the bottom case for uh in terms of a number for the industry 37:36 37 minutes, 36 seconds and uh but that will be really helpful sir because we are all trying to kind of uh work with this uncertainty but you are definitely got a much better picture 37:44 37 minutes, 44 seconds on demand on on the on the ground pulse and everything. So if you can just help us understand there as to what could be the range of outcomes here on the growth fund. 37:53 37 minutes, 53 seconds Promote listen I would have loved to give you an estimate but uh I wouldn't host a guess guess here because I would be really shooting in the dark but I can 38:01 38 minutes, 1 second tell you two things huh and then you can make your own judgments around it. 38:05 38 minutes, 5 seconds uh one thing is like I said the base level demand in CV industry we have seen 38:12 38 minutes, 12 seconds has been very very resilient even after the outbreak of the war even after the increase in the diesel prices uh and 38:19 38 minutes, 19 seconds this I'm suggesting not just because of the numbers of April and May so far but I'm also suggesting this based on several conversations we had with the 38:27 38 minutes, 27 seconds customer like like I said you know most of the customers had made very ambitious plans on the replacement of fleet and 38:35 38 minutes, 35 seconds addition of the fleets after GST uh around December January they had created those plans and the customers that are fully loyal to us of course they do 38:44 38 minutes, 44 seconds share their plans with us so that we can work together and fulfill their uh their 38:50 38 minutes, 50 seconds expansions uh and as far as I mean uh as I mean until about uh last week I can 38:59 38 minutes, 59 seconds say and this is after the price hikes on the diesel uh people are not changing their plans right now. So while there is 39:08 39 minutes, 8 seconds a bit of a challenge on the ground and it is limited to some areas not the entire country like I said in terms of 39:15 39 minutes, 15 seconds uptime in terms of that that they have to deliver mainly because of the diesel shortages in some pockets. Uh but most 39:24 39 minutes, 24 seconds of the fleet owners are sticking to their plans for the year in terms of expansion of the fleet. So that is a 39:31 39 minutes, 31 seconds kind of a very good signal as far as the demand is concerned overall on the next 39:37 39 minutes, 37 seconds two to three or four quarters basis. Now uh you know what we need to see is like 39:45 39 minutes, 45 seconds how much uh of inflation we see on the oil on the diesel side. So far they have 39:52 39 minutes, 52 seconds increased it about 7 rupees which I said is like very manageable for the fleet owners. 39:58 39 minutes, 58 seconds uh you know and I think the general view is that even if it goes to around 10 to 15 rupees they would be able to manage 40:06 40 minutes, 6 seconds by passing on uh most part of it to the suppliers and bearing a little bit of a 40:12 40 minutes, 12 seconds compression there. So, so I think that is the situation. It will be very difficult to say to put a number on it 40:20 40 minutes, 20 seconds like how much Q1 will grow or how much Q2 will grow. But I am quite optimistic that at least Q1 is concerned this uh 40:28 40 minutes, 28 seconds industry level CV performance would be uh better than last year Q1. 40:35 40 minutes, 35 seconds Yeah. But that we can see that in April itself sir. But uh uh but okay let me put it this way. on a full year basis do you envisage a scenario where you could 40:44 40 minutes, 44 seconds actually see no growth of the industry level is that a possibility compared to a you know you know promote the way I see 40:51 40 minutes, 51 seconds it is like this let us assume that there will be some setback in the demand in quarter 1 quarter two or so 40:59 40 minutes, 59 seconds [clears throat] now my feeling is that even if there is a setback this demand is not going to go away permanently it 41:07 41 minutes, 7 seconds is going to convert into a phantom demand and the reason I say that because fundamentally the situation is very strong on the ground. The sentiment is 41:16 41 minutes, 16 seconds very strong. People have huge expansion plans. The aging of the fleet is at its highest. The rate cut has really improved the economics and the TC of the 41:24 41 minutes, 24 seconds fleets. Right? So when the fundamentals are strong, even if there is a temporary dip because of a certain macroeconomic 41:32 41 minutes, 32 seconds factor, don't you think that will end up becoming a pent-up demand for the industry? And even if there is a dip in 41:40 41 minutes, 40 seconds Q2, it should come back in Q3 or Q4. I mean that is my view. You know you may have I mean people may have other views 41:48 41 minutes, 48 seconds but that is like my view talking to a lot of people in the industry. 41:52 41 minutes, 52 seconds Fair. Last question to Balaji sir on margins. Um I think it's a tough hand what you have here. U so and and you got 42:00 42 minutes a very solid base for last few years in terms of execution on margins. Kudos to you and the team. uh but now given this 42:07 42 minutes, 7 seconds scenario at the high base how should one look at the margins on the near term because even if the war stops tomorrow I don't think the commodity price are easing back any any in a hurry so in the 42:16 42 minutes, 16 seconds near term Balaji if you can help us understand uh margins given all the inflation and demand potentially being a 42:25 42 minutes, 25 seconds bit uh uh soft and which limits our pricing uh capability. So if you can just help us understand the margin outlook for the near to medium term for the next two to three quarters please. 42:34 42 minutes, 34 seconds See there are u there are various pockets where we can work out on the cost. See there are you can broadly 42:43 42 minutes, 43 seconds divide the entire cost into two. One is controllable the other one is not controllable. The non-controllable costs are the ones that that are predominantly 42:52 42 minutes, 52 seconds this uh uh commodity costs where you don't have any control. But on the other side we also have uh just like how we 42:59 42 minutes, 59 seconds did in Q4 of last financial year we have control on uh the savings the value engineering esourcing the commercial 43:07 43 minutes, 7 seconds negotiations the turnover discounts from the suppliers etc where we can work and then we can try and reduce and negate but this also I can tell you that we can 43:16 43 minutes, 16 seconds do it only up to a certain extent if the commodity cost grows exorbitantly high then it becomes an issue but we are 43:24 43 minutes, 24 seconds confident that we can effectively know reduce the costs which are in our control. Actually we have started uh now 43:33 43 minutes, 33 seconds forming the cross functional ste teams essentially know to understand and look at uh each of the operating expense uh 43:43 43 minutes, 43 seconds accounting headwise individually and then work on the possibility of the reduction. We have started this process and you'll see the benefit of this uh 43:52 43 minutes, 52 seconds coming inside uh in the in the subsequent quarters and then B just to quantify yeah so the under recovery sir right now as of one Q 44:01 44 minutes, 1 second where where are we on the under recovery on commodity how much is under recovery Q4 Q4 uh Q4 we could recover more than 44:12 44 minutes, 12 seconds the cost increases but in Q1 we'll have to see I mean we'll have to wait and see because there is a combination There's also a price increase which we 44:19 44 minutes, 19 seconds have taken and uh there's also a cost increase which has happened and the balance we'll have to recover by way of 44:28 44 minutes, 28 seconds uh the operating expense reduction as well as the value engineering and resourcing. Right now the gap seems to be somewhat manageable but we'll have to wait and see. 44:38 44 minutes, 38 seconds But pro I mean the situation is situation on the commodity side is definitely challenging. I mean you guys also have those data points. what is 44:47 44 minutes, 47 seconds happening in the steel on aluminium copper rubber etc. 44:51 44 minutes, 51 seconds Yeah. So I mean we are just hoping that some of it we can neutralize through price increases which has already happened. Now the question is whether we 44:59 44 minutes, 59 seconds can sustain them those price increases for the whole quarter and the second is like Balaji said uh you know uh we have 45:07 45 minutes, 7 seconds initiated a whole lot of cost control measures inside the company. Of course, we do not want to dilute any programs 45:16 45 minutes, 16 seconds which have a future positive impact on the company because I like I explained even if there is a dip in the market, we do hope that it will convert into a 45:25 45 minutes, 25 seconds pent-up demand which will start showing back up again in the later half of the year. Uh so we do not want to sacrifice 45:31 45 minutes, 31 seconds on that view or that demand which might come up later. uh but uh anything which 45:39 45 minutes, 39 seconds is discretionary, anything that can be pushed out, anything that is uh not 45:46 45 minutes, 46 seconds really adding a huge value uh over the next few quarters each and every bit of cost we are looking at and we are trying 45:55 45 minutes, 55 seconds to restrain uh put some restraints on those cost. So I mean I know you want a 46:01 46 minutes, 1 second particular number but uh but it is very difficult you know there is definitely a impact on the margins from the commodity 46:09 46 minutes, 9 seconds side but let us see how much of it we can neutralize through price increases and cost controls. Best of luck sir that's thank you. 46:19 46 minutes, 19 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your 46:27 46 minutes, 27 seconds questions to two per participant. The next question is from the line of Amy Pirani from JP Morgan. Please go ahead. 46:34 46 minutes, 34 seconds Yes. Uh hi, thanks for the opportunity. 46:37 46 minutes, 37 seconds Um my my first question is actually regarding the quarter. um in in 4Q this time we did not see the kind of 46:45 46 minutes, 45 seconds operating leverage on the staff and other costs that we normally see in every fourth quarter as volume goes up. 46:51 46 minutes, 51 seconds So is there anything that is a one-off or anything that we should you know keep in mind when we are looking at the financials for this quarter? 46:59 46 minutes, 59 seconds I mean uh uh your observation is quite right. I mean we could not get much of leverage as we got in the first three quarters of uh uh the last financial 47:08 47 minutes, 8 seconds year that is a 26 and this quarter actually uh we had to also uh in line with the performance we we 47:17 47 minutes, 17 seconds also had to make uh some provision towards uh uh uh the performance related 47:23 47 minutes, 23 seconds bonuses for the executives. So, so this we we wanted to provide after it 47:30 47 minutes, 30 seconds reaching uh the threshold limits. So, this we did only in the fourth quarter. 47:36 47 minutes, 36 seconds So, that's why you see uh that happening and on top of it I did speak about this commodity cost increases. Uh though 47:44 47 minutes, 44 seconds effectively we contained but in the earlier three quarters we didn't experience this kind of a surge on the commodity costs. So that has in a way 47:52 47 minutes, 52 seconds that has also indirectly impacted though quarteron quarter there has been a 80 basis points improvement on the gross 47:59 47 minutes, 59 seconds profit but this has not really uh no I mean helped us on the operating leverage side your observation is right 48:06 48 minutes, 6 seconds sure and and just as a followup I mean obviously we've talked at length about the commodity pressures and you know 48:14 48 minutes, 14 seconds what the company can do but given that there is a general inflation and you know there are you know challenges is on 48:21 48 minutes, 21 seconds employee costs, uh wages, uh diesel availability, gas availability. Is there something that we need to keep in mind 48:29 48 minutes, 29 seconds in you know your other expenses for next year? Do we need to keep something in mind whether this could be a year of 48:36 48 minutes, 36 seconds extraordinary inflation or it will be you know a normal year and the only challenge is the raw material line which we need to monitor. 48:47 48 minutes, 47 seconds We we will also get challenges on the operating cost side also. Uh especially there are few expenses like uh this 48:56 48 minutes, 56 seconds transportation expense which we incur towards the moment of the chassis from the plant to the selling point. There are certain expenses which are going to 49:05 49 minutes, 5 seconds go up which are entirely dependent on this uh fuel price. Similarly, there is also a lot of uh conversion which 49:14 49 minutes, 14 seconds happens even on the raw material side where we pay the conversion cost and uh finally know we'll also have to look at 49:21 49 minutes, 21 seconds how this uh exchange is going to behave uh rupee if it is going to weaken 49:28 49 minutes, 28 seconds further then that could also add up to the cost. So these could be the possible costs which can get inside the other expenditure. 49:37 49 minutes, 37 seconds Okay. Okay. That's that good. And just lastly if I can ask you um the last two three years you know you have been very judicious in taking price hikes. I think 49:46 49 minutes, 46 seconds the industry in general you know has not tried to do a price war given the infiltrationary scenario and the 49:53 49 minutes, 53 seconds uncertainty. Uh is the industry still continuing to be judicious and um you know disciplined or just just some thoughts on that. 50:03 50 minutes, 3 seconds I think the current uh situation should add to that discipline. Uh you know I mean like I said definitely there would 50:11 50 minutes, 11 seconds be a challenge on the commodity cost side. So industry to the extent possible you know should use their judgment to 50:19 50 minutes, 19 seconds see how much of it can be passed on to the to the market without affecting the demand. Uh but generally speaking, yes, 50:27 50 minutes, 27 seconds we are all we are hoping that uh you know uh we industry should look at taking multiple price hikes during the year. 50:38 50 minutes, 38 seconds Okay, great. That that's good to know. Thank you. 50:42 50 minutes, 42 seconds Thank you. The next question is from the line of Ragu Nandan from Noama Research. Please go ahead. 50:50 50 minutes, 50 seconds Uh congratulations sir on a strong FI26 and uh uh a couple of questions. Uh 50:58 50 minutes, 58 seconds firstly within the MXCV how do you see uh the demand for various subcategories which segments could outperform and underperform the overall market? 51:11 51 minutes, 11 seconds Yeah Rau thank you for the question. uh you know like I said so far what we have seen as an impact of GST uh is more on 51:20 51 minutes, 20 seconds the side of the ICV you know ICV demand has grown more than the heavy duty truck demand and that has created some kind of a mixed pressure on us like you know 51:29 51 minutes, 29 seconds heavy duty trucks are more uh marginative uh however uh we do believe that that 51:36 51 minutes, 36 seconds initial enthusiasm on the ICB side uh will start to moderate and uh demand uh 51:45 51 minutes, 45 seconds momentum on the heavy duty truck side uh should start uh coming across now. I mean with this we have seen since 51:53 51 minutes, 53 seconds February itself I mean heavy duty trucks has gone through a good momentum since February although first three months 52:00 52 minutes larger fleet owners they took time to adjust to the new system especially the tax system. Uh this year we are thinking 52:08 52 minutes, 8 seconds that the tipper segment and the multiaxle segment would be the fastest growing segments. Uh followed by a 52:16 52 minutes, 16 seconds segment which we call trip trailer which is part of the tractor trailer because trip trailers are generally used in the mines. So anything that you that is uh 52:25 52 minutes, 25 seconds to connect with the mines or infrastructure projects or construction projects I think they would show tremendous promise uh this year. uh 52:34 52 minutes, 34 seconds while the tractor trailer and to in some routes of long haul which is non steel non cement non 52:43 52 minutes, 43 seconds uh uh iron uh may uh may little bit uh 52:49 52 minutes, 49 seconds moderate uh so that is our view right now so little bit moderation in ICV and moderation when I say it's not respect to last year I say this respect to last 52:58 52 minutes, 58 seconds 6 months so ICV and tractor long haul might moderate But anything related to mine would show tremendous promise is our view currently. 53:09 53 minutes, 9 seconds Thank you sir. That is very helpful. And also if you can speak on uh uh LCV and 53:15 53 minutes, 15 seconds defense how do you see the outlook and uh specifically on defense uh how big is the pending order book and after a 20% 53:25 53 minutes, 25 seconds growth in FI26 how do you see the prospects for FI27? 53:31 53 minutes, 31 seconds Yeah, like I explained you know I mean we had a fabulous FI26 in defense more than 20% growth revenues increased to 53:38 53 minutes, 38 seconds 1200 crores plus including that of the subsidiary but uh but uh also the fact 53:45 53 minutes, 45 seconds is that our order pipeline on defense is uh is strongest ever. So it is already it is above 1500 crores uh which are the 53:54 53 minutes, 54 seconds orders in our hand which are due for execution and supply. And uh we also hope to receive 54:02 54 minutes, 2 seconds u um uh many orders during the year also. Right? So on defense we are very sure that it's not just this year but uh 54:11 54 minutes, 11 seconds at least for the next two to three years uh we will show uh very strong growth. 54:19 54 minutes, 19 seconds Noted thank you so much. And uh how how do you see the outlook for LCD? 54:24 54 minutes, 24 seconds Mr. Raunand may request you return to the question queue for a follow-up question. Sure. Thank you. 54:30 54 minutes, 30 seconds Thank you. Participants are requested to limit the questions to two per participant. The next question is from the line of Kul Agarwal from HSBC. 54:38 54 minutes, 38 seconds Please go ahead. 54:39 54 minutes, 39 seconds Yeah. His thank you for the opportunity just one question uh on the market share side. So, so recently you have launched the new series of drugs but uh at the 54:49 54 minutes, 49 seconds same time we have seen market share is largely stable or I would say slightly declined in last 3 to four years. So how do you see the new portfolio launch 54:57 54 minutes, 57 seconds helping in recovering or gaining some market share in future and do we still have some white spaces in our portfolio which can be plugged in future uh to gain some more market share? 55:07 55 minutes, 7 seconds Hey, thank you uh first of all but uh maybe I'll ask our investor relations team team to get in touch with you to 55:14 55 minutes, 14 seconds clarify that we haven't lost market share in last 3 four years but we have tremendously gained actually on the MSCV 55:21 55 minutes, 21 seconds side I mean looking at FI22 as a base so 23 24 25 26 4year data if you look where 55:28 55 minutes, 28 seconds is a substantial increase in the MSCV market share however that uh we can discuss later but uh uh right now let me 55:37 55 minutes, 37 seconds just tell you that we are very very confident of the new product launches and I'm not just saying because these are any this is any other launch I am 55:46 55 minutes, 46 seconds saying because we have put in lot of effort into these launches uh you know one of the reason we lost some market 55:54 55 minutes, 54 seconds share in some limited segments was also that we were little bit uh kind of delayed in coming to the market with 56:01 56 minutes, 1 second these higher horsepower tractor and tippers now since we have these in the in powerfold and undoubtedly I can tell 56:09 56 minutes, 9 seconds you that these are the best in the industry right now in terms of power torque and uh mileage reliability etc. 56:18 56 minutes, 18 seconds So we would definitely see a positive impact in our market share or market penetration. Now having said that uh you 56:26 56 minutes, 26 seconds know we have just started shipping these products as far as last year is concerned. We just started shipping in February and March and there are only a 56:33 56 minutes, 33 seconds few hundred units that we have shipped out until 31st March. So you cannot see the impact in last year but you would 56:40 56 minutes, 40 seconds definitely see this impact starting quarter two. In quarter one also the dispatches would not be to the full extent of the demand and uh because 56:49 56 minutes, 49 seconds there is a certain lead time in ramping up the the production of new products. 56:54 56 minutes, 54 seconds Uh but you will see that impact definitely in especially two segments. 57:00 57 minutes One would be the tipper segment and the other would be a director trader segment. 57:11 57 minutes, 11 seconds Thank you. The next question is from the line of Shrar Kalyani from Antique Stock Broking Limited. Please go ahead. 57:19 57 minutes, 19 seconds Thank you for the opportunity sir. So just one followup question that I wanted to understand a difference. You 57:27 57 minutes, 27 seconds mentioned that around 1,500 cr order book we have. So this is a like execution or anything on key channel panel revenues if you could help us 57:35 57 minutes, 35 seconds understand like 150 will be executing in the current year or it is split into two to three years. 57:43 57 minutes, 43 seconds So, so uh you know the way it happens is that different orders have different supply schedules, right? So, none of the 57:50 57 minutes, 50 seconds orders in army or uh mod uh most of the orders cannot be fulfilled in just one year, right? So, they have a longer 57:58 57 minutes, 58 seconds supply schedule ranging between 1 to 3 years. So, the order book will not all be uh delivered in this year. However, 58:06 58 minutes, 6 seconds as I said, there would be many new orders we'll receive during the year which will also help us uh building the 58:13 58 minutes, 13 seconds top line for the current year. So, but one thing I can tell you that uh uh we have been delivering 20% growth in 58:22 58 minutes, 22 seconds defense uh business over last few years and at least that trend we hope to continue with. 58:30 58 minutes, 30 seconds That is really helpful sir and like just as you explained to us that uh like me by MCV there might be some moderation 58:38 58 minutes, 38 seconds over the next few months. Uh how do you look at the ICV and NCV space? Uh do you see some moderation over there also in the coming quarters? 58:49 58 minutes, 49 seconds Yeah when I I I just want to clarify that when I want when I'm saying about moderation I'm not comparing it with last year. I still believe our volumes 58:57 58 minutes, 57 seconds will be higher than last year. But moderation when I'm saying I'm referring to Q4 essentially because Q4 you know the industry went kind of berserk you 59:06 59 minutes, 6 seconds know all that uh GST effect started playing in all the in all the segments right so that is what my view is because 59:14 59 minutes, 14 seconds LCV demand I think was up like 20 25% at an industry level in Q4. So when I say moderation I mean moderation from those levels. 59:25 59 minutes, 25 seconds Okay. So, so some moderation would be seen in LCV and ICV and uh some pickup in demand relative demand as from Q4 should be seen in the heavy duty trucks. 59:36 59 minutes, 36 seconds That is how we view it and actually this will be helpful uh in terms of the mix as well because 59:43 59 minutes, 43 seconds heavy duty trucks is uh much more richer in terms of mix. 59:50 59 minutes, 50 seconds Got it. In terms of sir just one thing in terms of geography where do we see uh good substantial demand coming in from 59:57 59 minutes, 57 seconds like it's geography specific if uh you can just help us understand which regions are expected to do well uh compared to last year. I think I think 1:00:06 1 hour, 6 seconds it would be quite broad-based. Uh but if I were to pick on one or two specifically, I would say any all the 1:00:13 1 hour, 13 seconds sectors related to mining and infrastructure would see the strongest demand this year. So mining most most of 1:00:22 1 hour, 22 seconds the mining is happening around Maharashtra, Orisa, Chhattisgar, Jarkand uh West Bengal etc. So that part of the 1:00:30 1 hour, 30 seconds country uh you know I think will be strong because of mining and also the other factor would be infrastructure and 1:00:37 1 hour, 37 seconds construction projects. Now these are quite broad-based but you can I mean figure out you know where the money is coming which products are which projects 1:00:44 1 hour, 44 seconds are running right now uh or which new projects are coming. So that is why that is how we also plot our demand on the uh area specific uh uh basis. 1:00:57 1 hour, 57 seconds Right. Good. Thank you so much. 1:01:00 1 hour, 1 minute Thank you ladies and gentlemen. We take that as the last question of the day. 1:01:04 1 hour, 1 minute, 4 seconds And now I would like to hand the conference over to the management for closing comments. 1:01:10 1 hour, 1 minute, 10 seconds Oh, thank you uh once again uh uh for your continued trust in us. uh you know 1:01:16 1 hour, 1 minute, 16 seconds we know uh there is a lot of noise in the market around various macroeconomic factors but I just want to once again 1:01:24 1 hour, 1 minute, 24 seconds tell you that uh the way we see the demand uh in CV industry we think that there is lot of resilience in the 1:01:31 1 hour, 1 minute, 31 seconds baseline demand. Now how much we will grow with respect to Q4 and Q3 and how much we will grow with respect to last 1:01:38 1 hour, 1 minute, 38 seconds year is something which remains to be seen. uh but uh uh I think the sentiment is very positive. The especially on the 1:01:47 1 hour, 1 minute, 47 seconds fleet owner side, they still have very ambitious plans to add fleets or replace fleets. Uh the material cost situation 1:01:55 1 hour, 1 minute, 55 seconds is challenging uh but like Baji explained earlier in the call uh we are looking at all avenues to see how we can 1:02:02 1 hour, 2 minutes, 2 seconds neutralize it through price increases and also through cost savings. Uh with that I would like to close the call. 1:02:09 1 hour, 2 minutes, 9 seconds Thank you very much once again for joining us. 1:02:12 1 hour, 2 minutes, 12 seconds Thank you on behalf of Spark Institutional Equities Private Limited. 1:02:17 1 hour, 2 minutes, 17 seconds That concludes this conference. Thank you for joining us and you may now disconnect your lines.