ASK Automotive Limited — Q3 FY26

Ask Automotive Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=T-rvSYYy6Qc Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to ASK Automative G Q3 and 9 month FI26 post results on call hosted 0:10 10 seconds by factors PR. As a reminder, all participant line will bend the listenon mode and there will be an opportunity for you to ask questions after the 0:19 19 seconds presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:28 28 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Rishab Sha from Edectors. Thank you and over to you 0:36 36 seconds siring to everyone and welcome to Q3 and 9 months FI26 earnings call of ASK 0:45 45 seconds Automotive Limited. From the management we have with us Mr. Kulip Singh Rati chairman and managing director, Mr. 0:52 52 seconds Kashant Rati, joint managing director, Mr. Mr. Aman Rati, Joint Managing Director, Mr. Narish Kumar, Chief 0:58 58 seconds Financial Officer, and Mr. Mano Sharma, Chief General Manager, Investor Relations. Before we begin the call, I 1:06 1 minute, 6 seconds would like to me mention that some of the statements made during the call may be forward-looking in nature and hence it may involve risks and uncertainty 1:15 1 minute, 15 seconds including those related to the future financials and operating performance of the company. Please bear with us if there are any call drops during the 1:23 1 minute, 23 seconds course of the conference call. We would like to ensure uh the call is reconnected at the earliest. I would now like to hand over the call to Mr. Kep 1:32 1 minute, 32 seconds Singh Rati, chairman and managing director for his opening remarks. Thank you and over to you sir. Thank you Mr. Rush. 1:41 1 minute, 41 seconds Good evening ladies and gentlemen. 1:44 1 minute, 44 seconds It's my great pleasure to welcome you all to our Q3 and 9 months FI26 earnings conference call. 1:54 1 minute, 54 seconds I hope you have had the opportunity to review the detailed presentation submitted to the exchanges and available on our website. 2:05 2 minutes, 5 seconds The government of India's GST20 reform marks a pivotal milestone that is set to elevate the Indian automo industry and 2:15 2 minutes, 15 seconds energize the broader economy given the sector's deep forward and backward linkages. 2:22 2 minutes, 22 seconds Now let me begin by sharing a quick overview of the broader industry as reported by C. 2:30 2 minutes, 30 seconds The Indian automo sector witnessed healthy momentum in 9 months FI26 with 2:37 2 minutes, 37 seconds overall vehicle production across all segments registering a robust yearon-year growth of 9.3%. 2:46 2 minutes, 46 seconds The two wheeler segment matched the overall vehicle production growth at 8.8. 8% on year-on-year basis. 2:55 2 minutes, 55 seconds We are optimistic that the growth momentum will remain in the coming quarters as well supported by stable 3:03 3 minutes, 3 seconds macroeconomic conditions and GST20 reforms that have improved overall afford affordability and consumer sentiments. 3:14 3 minutes, 14 seconds The tubular industry closed 9 month FY26 with a strong production volume of 19.6 6 million units, 3:23 3 minutes, 23 seconds up from 18 million units in 9 months FY25. 3:29 3 minutes, 29 seconds In Q3 alone, production touched 6.8 million units as compared to 5.9 million in the same quarter last year. 3:39 3 minutes, 39 seconds Looking ahead, we believe that the industry will continue to gain from the far-reaching macroeconomic policy reforms undertaken by the government. 3:50 3 minutes, 50 seconds particularly GST20 reforms, personal income tax rationalization announced in the union budget 2025-26, 4:00 4 minutes successive rate cuts and liquidity enhancement measures by the Reserve Bank of India. 4:06 4 minutes, 6 seconds These have positively impacted consumer purchasing power and improved access to the vehicle financing created a 4:14 4 minutes, 14 seconds conducive environment for the sustained demand. 4:18 4 minutes, 18 seconds Rising rural income will also be beneficial for the tubular sector since all our products were under the 4:26 4 minutes, 26 seconds category of 28% GST. Hence the reduction of GST rate from 28% to 18% is helping 4:34 4 minutes, 34 seconds us to outgrow in the Indian afterm market and gain more market share from gray market operators and duplicators. 4:44 4 minutes, 44 seconds With this positive backdrop, we remain optimistic about the growth trajectory of the sector in the coming quarters. 4:54 4 minutes, 54 seconds Before we move on to ASK's business performance, we would like to highlight that our 9.9 5:02 5 minutes, 2 seconds megawatt solar plant at SISA Hana has started supplies from April 25. 5:09 5 minutes, 9 seconds We are excited with the results in terms of sustainable operational economies. 5:15 5 minutes, 15 seconds Happy to announce that company is installing one more captive solar power plant of 11.55 5:22 5 minutes, 22 seconds megawatt at Rajasthan which is expected to be operational by Q1 FY27. 5:30 5 minutes, 30 seconds This reflects ASK's special focus on green energy. 5:36 5 minutes, 36 seconds Moving on to business updates. 5:39 5 minutes, 39 seconds I am delighted to share with you that we had a strong finish to the third quarter and nine months of the year in both revenue and profitability. 5:50 5 minutes, 50 seconds This marks our ninth consecutive quarter of robust performance since the company's listing. 5:57 5 minutes, 57 seconds During Q3 FI26, we delivered revenue growth of 28%. 6:03 6 minutes, 3 seconds Excluding wheel assembly business, the wheel assembly strategic reduction was 51.5% 6:11 6 minutes, 11 seconds and thus our consolidated published revenue has grown by 18.5% on year-on-year basis. 6:20 6 minutes, 20 seconds We achieved growth of 26.8% in a beta and 21.3% in PAT on yearon-year basis. 6:29 6 minutes, 29 seconds This is the highest ever absolute revenue IATA and PAT earned by us in any quarter in the past. 6:39 6 minutes, 39 seconds We continue to outperform the two-heer industry in terms of vehicle production growth during Q3 F526. 6:48 6 minutes, 48 seconds Further, we have achieved the IBATA margin of 13.4% 4% in Q3 Fi26 6:56 6 minutes, 56 seconds representing an improvement of 88 basis points over Q3 F25. 7:03 7 minutes, 3 seconds Our IITA margin is affected by aluminium alloy prices. 7:08 7 minutes, 8 seconds Upward increase in prices of aluminium affects our IITA percentage because of denominator effect. However, our absolute IITA number remains the same. 7:21 7 minutes, 21 seconds With this strong performance on profitability, our earnings per share in Q3 FY26 7:28 7 minutes, 28 seconds has increased to rupees 4.05 per share against rupees 3.34 per share in the 7:35 7 minutes, 35 seconds same period last year. Improvement in margins is mainly driven by better economies of scale due to higher 7:44 7 minutes, 44 seconds volumes. Benefit from increasing capacity utilization at Karoli and New Bangalore facility and strategic 7:52 7 minutes, 52 seconds reduction in low value added wheel assembly business. 7:58 7 minutes, 58 seconds As a result in 9 months of FI26, we delivered revenue growth of 18.6%. 6% excluding 8:08 8 minutes, 8 seconds wheel assembly business because of wheel assembly strategic reduction by 52.8% the consolidated revenue which is 8:16 8 minutes, 16 seconds published has grown by 10.2% on yearon-year basis achieved growth of 21.9% 8:25 8 minutes, 25 seconds in IITA and 18.8% 8% in PAT on yearon-year basis. 8:31 8 minutes, 31 seconds We have delivered IITA margin of 13.5% and improvement of 130 basis point on 8:38 8 minutes, 38 seconds yearon-year basis. With strong performance on profitability, our earnings per share in 9 months F526 8:46 8 minutes, 46 seconds has increased to rupees 11.45 per share against at rupees 9.64 per 8:54 8 minutes, 54 seconds share in the same period last year. Our all three product segments performed 9:00 9 minutes well in Q3 and 9 months F526. In terms of revenue growth, we have sustained our market leadership position in the advanced baking system. 9:11 9 minutes, 11 seconds Our advanced baking system revenue grew by 22% in Q3 and 12% in 9 months FI26 on 9:19 9 minutes, 19 seconds yearon-year basis. The aluminium lightweighting precision solution revenue grew by 36% in Q3 and 24% in 9 9:30 9 minutes, 30 seconds months FI23 on year basis. The safety control cable revenue also recorded 9:37 9 minutes, 37 seconds growth of 22% in Q3 and 10% in 9 months FI26 on a year on basis. In the unstable 9:46 9 minutes, 46 seconds global geopolitical environment due to tariff and other issues, our revenue from exports were at rupees 100 cr 9:54 9 minutes, 54 seconds against rupees 108 crores last year in the same period. However, based on Q3 10:01 10 minutes, 1 second SY26 performance, we do feel that we'll touch the last year's number. 10:08 10 minutes, 8 seconds Thank you very much for your patient hearing. With this we leave the floor open for question and answer. 10:16 10 minutes, 16 seconds Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 10:27 10 minutes, 27 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are request to use 10:33 10 minutes, 33 seconds handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Qsembles. 10:48 10 minutes, 48 seconds First question come from the line of Ragunan NL from Noama Research. Please go ahead. 10:56 10 minutes, 56 seconds Thank you sir for the opportunity. 10:58 10 minutes, 58 seconds Congratulations uh to you and the entire team for the strong numbers. 11:03 11 minutes, 3 seconds Uh my first question was on the keek side uh the new keex of 35 crore and uh 11:10 11 minutes, 10 seconds increasing the capacity to 32 crore brake shoes and pads. So how much would now the total capex be for fi26 11:20 11 minutes, 20 seconds and also your thoughts on fi27 kex and even for fi26 if you can also provide a 11:28 11 minutes, 28 seconds breakup of crypek that will be very useful. 11:33 11 minutes, 33 seconds the we'll close the FY26 capex. We had planned 450 crores uh initially in the FY26. 11:44 11 minutes, 44 seconds However, we tried to economize wherever it was possible. But then another capex 11:51 11 minutes, 51 seconds of 40 crores we did for to set up the solar power plant which was not scheduled initially and with this extra 11:59 11 minutes, 59 seconds capex but still we'll close the capex at 500 crores. 12:05 12 minutes, 5 seconds Noted sir and how do you see it for fi 27? 12:11 12 minutes, 11 seconds FY27 capex will be less. We intend to be within limits for up 400 crores only. 12:21 12 minutes, 21 seconds Got it sir. And uh uh uh on brake pads approximately what would be your market share? 12:30 12 minutes, 30 seconds See the brake pads overall market is less uh than that. So our market share should be around between 10 to 12% or something. 12:41 12 minutes, 41 seconds Got it sir and uh congratulations on the performance on exports in this quarter. 12:48 12 minutes, 48 seconds Uh you had earlier spoken about the fourth order. Would that be commencing by end of FI26 12:55 12 minutes, 55 seconds and how do you see that for order commencing and ramping up over FI27 and 13:01 13 minutes, 1 second 28 and also because of this order would you expect uh FI26 exports to be flat? 13:10 13 minutes, 10 seconds The FY26 exports as I mentioned will be flat. However, the exports to Ford have 13:19 13 minutes, 19 seconds already started. The containers are going but because of the great uncertainties uh created by the tariff 13:27 13 minutes, 27 seconds issues uh not only by US but also by Mexico where some parts were going and 13:32 13 minutes, 32 seconds they have also imposed 50% duties. So uh but still we are very hopeful that since 13:40 13 minutes, 40 seconds our product is highly technical we feel there'll be some smooth supplies in the FI27. 13:49 13 minutes, 49 seconds Got it sir. Uh just the last question uh can you share how was the utilization at Bangalore and Karoli plant this quarter? 13:59 13 minutes, 59 seconds Yes sir. In this quarter we have reached uh between 75 to 80% capacity utilization in the Bangalore plant and 14:07 14 minutes, 7 seconds now it's almost fully operational Bangalore plant and the capacity utilization in Rajasthan plant remains 14:15 14 minutes, 15 seconds at 65% only uh because in that we are waiting for some new uh items to be 14:24 14 minutes, 24 seconds started which are likely to start at the H2O. 14:30 14 minutes, 30 seconds Got it sir. Thank you. Thank you so much and wishing all the best. Thank you sir. 14:37 14 minutes, 37 seconds Thank you. Our next question come from the line of Naven Kumar Dub from Denalia Financial Service Limited. Please go ahead. 14:45 14 minutes, 45 seconds Yeah. Hi sir. Uh congratulations for the strong set of numbers. Uh I have two questions. Uh first question is related 14:53 14 minutes, 53 seconds to the margin. uh we uh our alloy wheel business is like 50% of the revenue 15:00 15 minutes currently and aluminium prices have gone up but we don't see the much of impact 15:07 15 minutes, 7 seconds on the margin uh have we taken any price increases uh in that and Mr. Navin we have not taken any 15:16 15 minutes, 16 seconds price increase so far and uh the margins uh uh that you see uh is already down by 15:25 15 minutes, 25 seconds at least uh 30 to 40 basis point because of the aluminium price increase. The the 15:32 15 minutes, 32 seconds revenue has gone up by uh that much and the IITA margin has come down by 30 basis point. 15:42 15 minutes, 42 seconds So what you see the beta margin in this quarter of 13.4 would have been 13.7 or 13.8 had the aluminium uh prices have not skyroed. Okay. 15:56 15 minutes, 56 seconds Okay. Okay. Uh and the second question is on the same same Loyville business we have done that Japanese uh collaboration and how is that progressing sir? 16:08 16 minutes, 8 seconds That's progressing pretty well. We are going to take out the product in our premises the first product uh in 16:16 16 minutes, 16 seconds February by before February end there'll be testings for a few months and we hope to start the supplies in the in start of H2. 16:28 16 minutes, 28 seconds Oh okay. Uh thank you sir. That's it. That's it from my side. 16:35 16 minutes, 35 seconds Thank you so much ladies and gentlemen. 16:38 16 minutes, 38 seconds Anyone who wishes to ask a question may press star anyone on that restaurant telephone. 16:45 16 minutes, 45 seconds Our next question come from the line of Vijay Pande from Noama Wealth Management. Please go ahead. 16:52 16 minutes, 52 seconds Hi sir. Thank you for taking my question sir. Uh two questions. Uh one was on the 16:59 16 minutes, 59 seconds um commodity prices sir. uh how how are we 17:07 17 minutes, 7 seconds uh able to like uh how are we tackling the increased commodity inflation especially on the aluminium side? Do we 17:16 17 minutes, 16 seconds have any hedge or like uh is it a pass through? How should we uh look into that? 17:25 17 minutes, 25 seconds Uh the aluminium prices are passroughs month on month. So uh we are not very much affected on that account. So that's 17:34 17 minutes, 34 seconds what we said that the absolute ea numbers remaining the same only the uh percentage of the I beta has gone down by 30 basis point. 17:46 17 minutes, 46 seconds Okay. Uh secondly so our new uh plant which we are setting 17:53 17 minutes, 53 seconds up this will be again solar. So uh will be powered by solar. So is there any 18:00 18 minutes extra incrementary capex because of the solar situation because the solar 18:07 18 minutes, 7 seconds uh panels has the cost of solar panel has gone up like can you confirm the incremental urinate economics there? 18:16 18 minutes, 16 seconds No we are not incurring any extra there's no impact because the project is getting almost complete uh the all the 18:25 18 minutes, 25 seconds supplies had already come before the price increase. So this new solar plant will be set up within the stipulated uh budget. 18:35 18 minutes, 35 seconds Okay. Okay. Okay. And now sir, how how are you uh it's is it possible if you 18:42 18 minutes, 42 seconds can give us an outlook for the remainder of fourth quarter and going into a 527 18:50 18 minutes, 50 seconds a slight break up uh for the two wheelers especially in the ruler and that will be pretty helpful. 18:59 18 minutes, 59 seconds So I uh as regards the coming quarter is there we have very strong projections from the OEMs and uh even the 19:09 19 minutes, 9 seconds independent after market is looking very very good because of the GST reduction from 28 to 18% in our line. So we are 19:18 19 minutes, 18 seconds very bullish even on this uh Q4 you know and as regards the next year we are very 19:25 19 minutes, 25 seconds bullish on that because we feel that uh this tubular story will continue because it has it has started continuing only 19:34 19 minutes, 34 seconds after a gap of many years. So even the next years seems to be very good sir. Thank you. 19:49 19 minutes, 49 seconds Thank you. Our next question come from the line of Deep Sha from Yes Securities in Institutional Equities. Please go ahead. 19:57 19 minutes, 57 seconds Yeah. Hi sir. Uh thanks a lot for the opportunity. A few questions. So first to begin with uh on the other itself 20:05 20 minutes, 5 seconds while you have alluded some timelines to our uh Kushu Japanese JV uh if you can 20:12 20 minutes, 12 seconds throw some light on the Leo the Taiwan JV that we were working for. So any any progress in that that would be the first question. 20:20 20 minutes, 20 seconds Yes. Yeah. The one thing is going on well it's under testing. There were a few amendments to be done. We have 20:27 20 minutes, 27 seconds already done those amendments. But you you know I have explained it in every call that this being a safety item we 20:34 20 minutes, 34 seconds cannot uh uh do any hurried call we cannot take you know. So let the 20:42 20 minutes, 42 seconds customer take the call. But we are very confident all the results will definitely come in the Tavan collaboration also positive results will come. 20:50 20 minutes, 50 seconds Okay. And that's sir the second question is about the uh Sundu cable J that we 20:57 20 minutes, 57 seconds did and then some sort of supply was expected from 1 FY27. 21:03 21 minutes, 3 seconds Uh so where are we on that journey? Is it on track or I mean is there any initial uh let's say soft commitments uh 21:11 21 minutes, 11 seconds by themsel we are very uh much on track on that 21:18 21 minutes, 18 seconds already the machines have come the setup and is there and I think all our samples etc production will come out in the Q2 21:27 21 minutes, 27 seconds uh of FI27 and the supply should start in the H2 and sir by roughly uh what would be the addressable revenue size for us. 21:39 21 minutes, 39 seconds Addressible revenue side is not not too big. addressable revenue side is about 21:45 21 minutes, 45 seconds 100 CR that's all but so see I told in the last call that uh uh we don't do 21:53 21 minutes, 53 seconds many things just for the sake of money we take pride in saying that uh this is a uh atmar bharat project and we'll be 22:03 22 minutes, 3 seconds the first one to indigitize it in the country surely and sir last question is about the JV uh so there also we that uh 22:12 22 minutes, 12 seconds commented about some you know appointmentment of some 4050 odd dealers for aftermarket uh PV penetration. So where are we on that aspect? 22:20 22 minutes, 20 seconds That is that is ramping up now slowly and gradually and uh maybe in the first quarter of next year we'll break even in that. 22:32 22 minutes, 32 seconds Okay. Okay sir. Thanks a lot. Thank you. 22:39 22 minutes, 39 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 22:48 22 minutes, 48 seconds Next question come from the line of Yesesh Agarwal from NAL bank. Please go ahead. 22:52 22 minutes, 52 seconds Good evening sir and congratulation for the great set of result. I just wanted to know your view on update any update 22:59 22 minutes, 59 seconds on the draft ABS regulation which was meant to be implemented by the first gen. So give any update on that? There 23:07 23 minutes, 7 seconds is no no update from the government. Uh I think it is only it was a draft which is now hanging you know because the 23:15 23 minutes, 15 seconds request of the also in the quarter three we have seen 23:23 23 minutes, 23 seconds that the two wheeler I segment growth outpaced the two-heer EV segment. So mainly maybe because of the GSG benefit 23:30 23 minutes, 30 seconds uh the like I segment is doing better in the two-heer side. So do we expect this trend to continue going forward? 23:38 23 minutes, 38 seconds You are right because now the the gap is very less because of the GST reduction 23:44 23 minutes, 44 seconds and uh that way I think uh uh ice sector is rather in a stronger position 23:54 23 minutes, 54 seconds and what are your expectation for the Q uh Q4 two-wheeler production growth estimates like have you revised it 24:01 24 minutes, 1 second higher as compared to the last time? We will we we know our projections. We have we always say we'll grow in bits and we'll be growing in bits. 24:12 24 minutes, 12 seconds Okay sir. Thank you from my side. 24:19 24 minutes, 19 seconds Thank you. A nice question comes from the line of hers from PIC square. Please go ahead. 24:28 24 minutes, 28 seconds Hi sir, I just wanted to understand your guidance about your debt levels and what are our plans with that 24:35 24 minutes, 35 seconds debt levels our debt equity never increases 0.5 and uh we are much we'll 24:42 24 minutes, 42 seconds be will remain below that in spite of the extra expenditures on capex that will be increasing this financial year 24:50 24 minutes, 50 seconds and uh it's always one one year of a bit normally it's close to 24:58 24 minutes, 58 seconds Um I just also wanted to understand uh what will be your ideal capacity utilization across your uh various plants on a on a blended level. 25:09 25 minutes, 9 seconds See we are see the economies of scale come when we are overall 80% capacity 25:15 25 minutes, 15 seconds utilization. We we love to do that but uh however we put up the next plant 25:23 25 minutes, 23 seconds much before because uh we are we are suppliers to all our prestigious 25:30 25 minutes, 30 seconds customers and direct online and just in time suppliers. So we keep always some extra capacities. 25:39 25 minutes, 39 seconds Okay. Thank you. Thank you. 25:46 25 minutes, 46 seconds Our next question come from the line of Sahil Sangi from Wash Network Capital. Please go ahead. 25:54 25 minutes, 54 seconds Good evening sir. Thank you for the opportunity and congratulations for very good numbers. Um so just wanted to understand the uh growth in the AB 26:04 26 minutes, 4 seconds segment and uh the LP segment that we've reported. So ideally in the breaking segment we usually have something uh 26:13 26 minutes, 13 seconds some growth around the two wheel industry but this time it's it's much much higher. Uh so um if you could help 26:20 26 minutes, 20 seconds us with the reason and also the aluminum segment has grown um a little higher than our run rate for the last two three 26:28 26 minutes, 28 seconds quarters. So just the reasons for that and do you expect that uh these these growth rates will sustain? 26:36 26 minutes, 36 seconds See there has been an impact on the Indian afterm market as I have mentioned many times that the reduction of GST we 26:44 26 minutes, 44 seconds were unfortunate to be on the 28% bracket now that it has come down to 18%. So lot of gray market we are giving 26:53 26 minutes, 53 seconds a tough fight to the gray market operators you know which are prevalent in the country you know so I think we are grabbing more and more share from 27:02 27 minutes, 2 seconds them so that there is a very huge growth uh in the Indian after market that's the main reason 27:10 27 minutes, 10 seconds plus our ICE uh OEM players you know their duty was also reduced from 28 to 27:18 27 minutes, 18 seconds 18% so their numbers have also increased tremendously and in the Q3 even they grew by 15%. 27:27 27 minutes, 27 seconds So similar reasons apply for the aluminium segment. 27:31 27 minutes, 31 seconds Aluminium segment yes similar reasons or even otherwise there the work can come from anywhere you know that's a very 27:38 27 minutes, 38 seconds flexible uh and great opportunity that is why we call it the sunrise indust. 27:47 27 minutes, 47 seconds Got it sir. Got it. Uh thank you sir. Thank you. Thank you. 27:56 27 minutes, 56 seconds Our next question comes from the line of Saga Shetty from DP Equity. Please go ahead. Uh yeah, sir. Uh I'm audible. 28:05 28 minutes, 5 seconds Yes, please. 28:06 28 minutes, 6 seconds Yeah. So, so congrats on the good set of numbers. So I just wanted to get a picture on how like after the GST rates cut so how are how is the sentiment 28:14 28 minutes, 14 seconds going on with the OEMs are we seeing any particular better demand from two wheelers or PVs or anything like that if you could just give some color on it. 28:22 28 minutes, 22 seconds See after the reduction in GST two wheeler demand is really picking up both at the OEM level and the independent 28:30 28 minutes, 30 seconds aftermarket level and it has been a real big boost to the two-heer sector. 28:38 28 minutes, 38 seconds Okay. Answer. So do we expect some like you know uh if not in Q4 but F27 onward do we expect some revision in our in our 28:46 28 minutes, 46 seconds growth guidance like from mid mid- teen digits to somewhere around high teen digits or anything like that or do we expect some 28:53 28 minutes, 53 seconds we we we we always expect mid- teens and we are happy to achieve that you know 29:02 29 minutes, 2 seconds because see we are outgrowing the market. You'll appreciate that you know even this year in spite of such good 29:09 29 minutes, 9 seconds times the two wheeler sector in 9 months has grown only by 8.8% 8% and whereas we have grown substantially higher you know 29:18 29 minutes, 18 seconds right yeah uh and sir if I could just ask one more thing like with the ABS thing going on so if the draft has not 29:25 29 minutes, 25 seconds been announced by the government so what is going on with the OEMs right now what is the sentiment with the you know the bike two wheeler manufacturer if we had 29:33 29 minutes, 33 seconds any conversation with them and is there any you know kind of thing you have discussed on how no no I I I have repeatedly said that 29:41 29 minutes, 41 seconds we'll talk on this hypothetical question and we'll discuss when the final notification comes because our OEMs are already in discussion with the 29:49 29 minutes, 49 seconds government that it's not practical. So let the result come out of that you know. Okay. Okay. Thank you. 29:54 29 minutes, 54 seconds We are we are not aware what they are discussing with the government. Okay. Yeah. Got it sir. Thank you so much. 30:06 30 minutes, 6 seconds Thank you. Our next question come from the line of Nitina from JM Financial. 30:11 30 minutes, 11 seconds Please go ahead. Yeah, thanks for the opportunity and congratulation on great set of number. I would like I wanted to know about your margin guidance since uh 30:20 30 minutes, 20 seconds we've ramped up the Bangalore facilities and the distance facility is expected to ramp up. So do uh are we trying to or are we thinking of revising our 30:28 30 minutes, 28 seconds estimates upwards going in FI27 or are we maintaining around 13.7 uh thereabouts? 30:36 30 minutes, 36 seconds We had given a guidance of 13.7 but that gets affected at least by 30 basis point because of the denominator factor of the 30:44 30 minutes, 44 seconds aluminium price increase you know so that 13.7 becomes 13.4 and uh and uh we 30:52 30 minutes, 52 seconds are very hopeful that we'll try to maintain around that only in the next financial year. Absolutely. 30:58 30 minutes, 58 seconds Okay. Okay. So but uh you highlighted that aluminium prices are a pass through on a month on basis. hopes eventually the margin will come back to what we were uh you know guiding for initially. 31:09 31 minutes, 9 seconds Is that understanding correct? 31:10 31 minutes, 10 seconds No no no that understanding is not correct. The the uh contribution that we get to for doing the job remains the 31:18 31 minutes, 18 seconds same. So when the aluminium prices go up you know the margins percentage goes down but the absolute remains the same. 31:27 31 minutes, 27 seconds Okay. Okay. Sorry. Sorry. That's it from my side. Thank you. 31:34 31 minutes, 34 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their test telephone. 31:44 31 minutes, 44 seconds Our next question come from the line of Vijay Pande from Noama Wealth Management. Please go ahead. 31:50 31 minutes, 50 seconds Uh thank you for the followup. Just want to confirm uh about the launch plan for 31:57 31 minutes, 57 seconds the new startups in the next year. So we have Sunro, we have uh two programs of 32:05 32 minutes, 5 seconds loyal beans. Uh if you can just confirm when can we expect commercial production or 32:12 32 minutes, 12 seconds production both the programs we will be launching in H start of H2 you know. 32:21 32 minutes, 21 seconds Okay. Okay. Okay. 32:25 32 minutes, 25 seconds So both agreements uh the agreement with Taiwan the one agreement with the Japart Japanese 32:33 32 minutes, 33 seconds company both will come in the second half only. 32:36 32 minutes, 36 seconds Yes second half they can come they will come in second half after due testing and uh even this uh sunroof cable will also come that will also come. 32:47 32 minutes, 47 seconds I mean generally how much time does it take for the full ramp up? So can we 32:54 32 minutes, 54 seconds prepare we are prepared from day one you know we are prepared today also because we have already invested everything so 33:01 33 minutes, 1 second once the testing is complete then we'll immediately clear up okay 33:08 33 minutes, 8 seconds thank you sir and all the best thank you thank you thank you 33:16 33 minutes, 16 seconds next question come from the line of rishi kapadyia from clsa please go ahead Uh yeah thank you so much for taking my questions and congratulations on good 33:25 33 minutes, 25 seconds fur. Uh sir my first question is on wheel assembly business. Uh by when can we expect that this would kind of completely phase out. 33:36 33 minutes, 36 seconds Uh so the uh customer has assured that by March end the balance will also go which is about uh 48%. 33:47 33 minutes, 47 seconds Uh so let's see once the customer takes it back we'll be announcing in the next 33:53 33 minutes, 53 seconds call you know if the if the if the customer takes it 34:00 34 minutes back in March then next year also you will see the same representation from our side that 34:08 34 minutes, 8 seconds actual excluding wheel assembly this is the growth and without wheel and the published is this 34:17 34 minutes, 17 seconds Uh thank you sir. And so my second question is uh on uh your ROC uh you are currently delivering 27 28% of ROC uh 34:26 34 minutes, 26 seconds and despite capacity utilizations of your two plant at lower levels. So what do you expect? uh can ROC go ahead from 34:34 34 minutes, 34 seconds current levels or uh 27 28 is something which would kind of build an inishi 34:42 34 minutes, 42 seconds you are satisfied with 27% ROC that's a uh that's a tough job to achieve which we are achieving you know and second 34:51 34 minutes, 51 seconds thing I would correct that one plant has already gone to 80% capacity utilization so only one is left now you know at 65% 34:59 34 minutes, 59 seconds ROC will remain there this will be difficult to maintain 27 but we make allout efforts to maintain 27. 35:08 35 minutes, 8 seconds Okay. Uh and so lastly just a clarification uh would aluminium inflation would lead to roughly 2% 35:16 35 minutes, 16 seconds revenue inflation as well or it certainly certainly one side it leads to revenue inflation the other side it it 35:26 35 minutes, 26 seconds leads to reduction in the percentage of aida margin you know not the absolute but percentage of aid margin 35:33 35 minutes, 33 seconds okay the quantum would be uh just 2% roughly yeah three three you can say 3% %. Okay. 35:41 35 minutes, 41 seconds Two to two to 3%. Yeah. Okay. Thank you so much. 35:48 35 minutes, 48 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question if it's the RN one on the touchstone 36:07 36 minutes, 7 seconds as there are no further question from the participant I would like to hand the conference over to Mr. Kulib Singhi 36:15 36 minutes, 15 seconds from uh from ASK Automative Limited for closing comments. Thank you and over to you sir. 36:21 36 minutes, 21 seconds Thank you everyone for such a patient hearing and uh I would like to once again reassure you that the future looks 36:29 36 minutes, 29 seconds very bright and as you know that I am always an optimist. Our Q4 is going to be very bright and even the next year 36:38 36 minutes, 38 seconds seems to be very good. On that positive note I would like to end and thank you. Thank you very much once again. 36:44 36 minutes, 44 seconds Thank you so much sir. On behalf of ESQ Automatives, that concludes this conference.