Automotive Axles Limited — Q3 FY26

Automotive Axles Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=17XeHcjBMNE Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Automotive Access Limited Q3 FI26 earnings conference call hosted 0:08 8 seconds by Barta and Karani Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask 0:16 16 seconds questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:23 23 seconds zero on a touchtone phone. Please note that this conference is been recorded. I now hand the conference over to Mr. 0:31 31 seconds Slesh Raja from Batly Wala and Karani Securities. Thank you and over to you sir. 0:35 35 seconds Yeah, thanks uh Shoubam. Good morning and thanks to everyone who have logged into uh Automotive Access 3Q826 earnings 0:42 42 seconds conference call. Uh from the management side we have with us Mr. Nagar Raja uh president and wholetime director Automotive Access Limited and we have 0:51 51 seconds Mr. uh Raman K in CFO of Automotive Access Limited and uh Mr. Krishnan Kumar uh who is uh whole time director Merator 1:00 1 minute HBS India. I would now like to turn the call to Mr. Nagaraja uh for the opening remarks followed by Q& sir. Uh you may begin now. 1:10 1 minute, 10 seconds Um thank you Shesh. Uh good morning everyone. Uh wish you a belated happy new year 2026. Uh I have with me uh Mr. 1:20 1 minute, 20 seconds Kishan um general manager and president MHSL and also um Mr. Raman K our uh new 1:27 1 minute, 27 seconds interim CFO um first of all it was an exciting quarter um started little bit slow but momentum picked up and I'm very 1:36 1 minute, 36 seconds glad to share with you that we were able to convert most of our order board um and uh to start with Raman will quickly 1:45 1 minute, 45 seconds go through the financials and followed by um Kishan giving you an update on the market outlook for rest of the year 1:54 1 minute, 54 seconds including how our new products are fairing. Uh over to you Raman. Thank you Anj. Uh good morning everyone. 2:03 2 minutes, 3 seconds Um uh thanks for joining uh this call. 2:06 2 minutes, 6 seconds Um so I'll start off with the financial updates. Uh so for the quarter ended Q3 2:13 2 minutes, 13 seconds our revenue was 562 crores and including the other income our total income stood 2:19 2 minutes, 19 seconds at 570 crores or 579 million. uh our our expense structure has been you know 2:25 2 minutes, 25 seconds fairly stable over the past and uh you know we have been kind of closed all our expenses at about 57 crores uh leaving 2:32 2 minutes, 32 seconds us with a bit of 725 million or 72.5 crores which is at about 12.9%. 2:40 2 minutes, 40 seconds Uh so when you compare the sequential quarter the revenue growth uh happened at about 21% um and know the margin growth has 2:48 2 minutes, 48 seconds happened at about 26%. Uh so we have and on basis points percentage our margins grew by you know 52 bits uh quarter over 2:57 2 minutes, 57 seconds quarter um and maybe giving you a same year-over-year comparison I think our revenue uh grew grew by about 6% uh 3:06 3 minutes, 6 seconds year-over-year and our AITA grew by about 14% year-over-year and on percentage basis it grew by 93 basis 3:14 3 minutes, 14 seconds points and in this quarter there is an exceptional item of about 12 crores which was an impact on the wage code 3:21 3 minutes, 21 seconds that we had to take. Uh the new wage code came into effect on 21st November. 3:25 3 minutes, 25 seconds So uh you know we assessed the impact based on the new wage definition and uh you know basis are uh feedback from our 3:33 3 minutes, 33 seconds SAT auditor. So we have taken the impact of about 119 million so close to 11.9 crores. So you know considering that our 3:41 3 minutes, 41 seconds profit before tax is about 512 million or 51 crores uh which is about at about 9.11%. 3:49 3 minutes, 49 seconds So comparing to sequential quarter we we had about 10.4% 4% PBT um and considering this exceptional item 3:56 3 minutes, 56 seconds because that exceptional item had an impact of close to about 2% in the margin but overall the margin has kind of dipped only by about 1.3% 4:04 4 minutes, 4 seconds um quarter quarter and coming to the PAT so we we ended the quarter about 388 4:11 4 minutes, 11 seconds million at about 7% pat um so again you know the that that has the impact of the exceptional item of of 12 crores um so I 4:21 4 minutes, 21 seconds think u These were the key uh highlights of the financials. Uh with this maybe I'll turn over the call to uh Mr. Kishan for the market updates. 4:32 4 minutes, 32 seconds Thanks Raman and good morning to all. So uh the last quarter was um like Nagaraja 4:38 4 minutes, 38 seconds said it started uh at a pretty reasonable average quarter that we have been seeing in the in the past several 4:46 4 minutes, 46 seconds years. But uh after September post the GST uh rate cuts there was uh real 4:54 4 minutes, 54 seconds traction in terms of demand and this came from almost every OEM that we are partnered with and which translated into 5:02 5 minutes, 2 seconds a very strong quarter in terms of the volume that did have some change in the product mix compared to previous years 5:09 5 minutes, 9 seconds uh which was anticipated and um the overall uh uh I if I can say the upturn 5:16 5 minutes, 16 seconds in terms of percentage from where we started to where we ended. We were able to convert most of that. It was a significant ramp up in terms of some of 5:25 5 minutes, 25 seconds the products that we have launched recently and I'm happy that um it it turned out pretty reasonably well. 5:32 5 minutes, 32 seconds Looking forward the next quarter which is this quarter uh which is typically again a very high quarter in the financial cycle for the several past 5:40 5 minutes, 40 seconds years. The momentum is going forward. So we are expecting it to be better than last year at least by 5 to 10%. Um one 5:48 5 minutes, 48 seconds thing that we are very closely monitoring is uh how the OEMs are maintaining their inventory. So far it 5:55 5 minutes, 55 seconds is in a very healthy level. So there is a real conversion of sales and um I think uh we are very positive that this 6:03 6 minutes, 3 seconds quarter will also turn out to be one of the best uh uh for the industry. Thank you. 6:11 6 minutes, 11 seconds Thank you very much. We will now begin with the question and answer session. 6:15 6 minutes, 15 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 6:22 6 minutes, 22 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 6:32 6 minutes, 32 seconds The first question comes from the line of Shikamea from time and tire advisor. Please go ahead. 6:38 6 minutes, 38 seconds Good morning, sir. Congratulations on a great set of numbers. Uh I was just looking to understand our numbers a bit better. So when we've said there has 6:47 6 minutes, 47 seconds been a bit of product mix and we saw good volume growth, can you uh can you quantify the volume growth if possible? 6:55 6 minutes, 55 seconds So how much of our topline growth uh yearon year has come from volume and from pricing if possible? 7:06 7 minutes, 6 seconds Um thank you. Thank you very much for this. I will probably also ask Kishan to add comments after that. For us, it's a 7:15 7 minutes, 15 seconds little bit um uh tricky and bit difficult for us to um you know quantify uh the overall growth uh you know with 7:24 7 minutes, 24 seconds respect to a specific product or product mix. What we can I can tell you is the product mix has been positive uh and our 7:32 7 minutes, 32 seconds new product what we have introduced MS 195 that volume is getting uh traction uh which uh along with the operational 7:40 7 minutes, 40 seconds efficiency which has really helped us uh you know converting uh those uh additional sales. Um Tishan would you would you like to add anything to that? 7:50 7 minutes, 50 seconds Yes. Um thanks for the question. Um the way we look at is first is whether do we have the full bandwidth when this 7:58 7 minutes, 58 seconds product mix change happens and in this case in uh in the previous quarter we were able to convert most of the upturn 8:06 8 minutes, 6 seconds so the 10% increase what we saw 10 to 15% increase what we saw in the quarter we had the products available we had the capacity to ramp up to that level now 8:15 8 minutes, 15 seconds what it means to our financials in terms of number is uh just as a comparison again tandem axles versus a single solo 8:24 8 minutes, 24 seconds axle. So there is definitely a difference um in the per axle realization because of the architecture, the content and the fact that there is more meat, more material in the tandem. 8:35 8 minutes, 35 seconds So that impact is natural when the product makes change happen. So that is something we have been seeing for a a 8:41 8 minutes, 41 seconds long period of time. So in in nutshell I agree with Nagaraja it's u with the with the mix that we see this is probably 8:50 8 minutes, 50 seconds going to be a normaly this is what we have to be ready and the agility that we have in our uh uh product portfolio and 8:57 8 minutes, 57 seconds the uh the capacity and uh the overall uh operations efficiency you know is what is driving us to towards the right u approach to manage this situation. 9:08 9 minutes, 8 seconds Thank you. 9:09 9 minutes, 9 seconds And uh sir if I could I just have two more questions. One is if you see Ashoken's data who of course is a major 9:17 9 minutes, 17 seconds customer for us I think 60 to 70% of our revenues will be coming from there. Uh 9:24 9 minutes, 24 seconds in the MHCV segment which we cater to if you remove their bus volumes they see 9:31 9 minutes, 31 seconds they've been seeing almost you know 20 25% uh 9:40 9 minutes, 40 seconds Miss Ma sorry uh not audible. You are not audible. Can you please repeat the question? Yes. Am I audible now? 9:48 9 minutes, 48 seconds Yes. 9:49 9 minutes, 49 seconds Yeah. So I was talking about customer for us and if I see their 9:56 9 minutes, 56 seconds volume growth uh since November has been north of 20%. 10:03 10 minutes, 3 seconds uh only on the MHCV segment without buses which of course uh you know we are we might cater to at some point but 10:10 10 minutes, 10 seconds currently I guess large chunk of our axles go into the MHCV segment. Um so when can we see you know that kind of 10:20 10 minutes, 20 seconds volume growth come through for us or would it not convert in the same way? 10:27 10 minutes, 27 seconds Uh I can take this Nagaraja. So um I if I understand rightly you are if we discount the buses you're saying you are 10:34 10 minutes, 34 seconds looking at a 20 20 20 to 25% growth in Ashok and MN HCV segment. Can I confirm that please? Yes. 10:41 10 minutes, 41 seconds Okay. Right. So I I have not seen the data but going by what you're saying if there is a change shift of 20 to 25 that 10:50 10 minutes, 50 seconds will translate into volumes considering where we have a single source which means we are the 100% suppliers that is with us. we convert that completely. 10:59 10 minutes, 59 seconds That is what we did in the previous quarter. And then there is a common source where the customer has um dual sourcing strategy. They can buy either 11:08 11 minutes, 8 seconds from us or the competition. So that that will decide or that will you know give you a comparison of their strategy 11:15 11 minutes, 15 seconds versus how we grow along with uh uh their requirement or demand. So what we see is depending on what they demand, we 11:24 11 minutes, 24 seconds need to be close to 99% delivery. That's the target. So that's how the numbers roll up when we look at our financials. 11:33 11 minutes, 33 seconds Understood sir. And sir could you give any indication on for how many products we would be a single source supplier even in percent even in percentage terms 11:42 11 minutes, 42 seconds or ballpark roughly 30 to 50% is it it depends on uh the product mix again roughly 30 to 50%. 11:52 11 minutes, 52 seconds Got it. Got it. And so lastly on our ebitita margins um as we mentioned the product mix seems sustainable so these 12:00 12 minutes margins would also be sustainable for us right? 12:06 12 minutes, 6 seconds Yes I think yeah sorry ramen go ahead. Yeah. So, uh yeah when compared to I think uh you 12:13 12 minutes, 13 seconds know as I explained like the margins have grown. So there is uh there is the mixes as they mentioned you know that is some very critical factor that helps us 12:22 12 minutes, 22 seconds you know maintaining the margins. You're right there. 12:26 12 minutes, 26 seconds Uh thank you so much for answering my questions. I'll come back in the queue. 12:32 12 minutes, 32 seconds Thank you. The next question comes from the line of Akasha from NBA. Please go ahead. 12:40 12 minutes, 40 seconds Yeah, thanks for the opportunity. Uh sir uh just adding to the earlier participants question uh I mean would 12:49 12 minutes, 49 seconds like a more uh detailed or an elaborated uh uh response on uh when do you expect 12:57 12 minutes, 57 seconds the industry uh growth to reflect in uh our numbers because industry clearly for 13:04 13 minutes, 4 seconds the last 3 four months uh beat our key customers even if we are you know a dual source supplier to some OEMs uh that should effectively reflect in our numbers as well, right? 13:15 13 minutes, 15 seconds So I mean just wanted your thoughts on you know how you see Q4 shaping up and for FI27 what kind of uh growth 13:25 13 minutes, 25 seconds estimates are you are building in you're taking that? 13:40 13 minutes, 40 seconds Okay. Um it looks like u Kishan has dropped off. He will join now. Uh let me try to uh answer this question. Uh as 13:48 13 minutes, 48 seconds you can see there uh in the numbers if I'm right you know our top line has grown um uh you know almost by 21 22% 13:56 13 minutes, 56 seconds compared to the last quarter. Um so we are expecting this one to continue. Um but again FI27 is you know anybody's 14:05 14 minutes, 5 seconds guess. While we are having a a positive outlook in terms of stability uh whether 14:12 14 minutes, 12 seconds we can uh grow from there it all depends on the inventory that uh you know all the OM are going to end up at the end of 14:19 14 minutes, 19 seconds this quarter um which probably you know we'll get a much better outlook as we 14:26 14 minutes, 26 seconds near the you know uh last week of March um um but uh you know based on the you 14:33 14 minutes, 33 seconds know uh order order book We think that you know this quarter is going to be stable and the next quarter will be 14:40 14 minutes, 40 seconds probably a little bit flat just like any other earlier uh years. Um but uh you 14:46 14 minutes, 46 seconds know the Q2 Q3 Q4 of FI27 we still waiting for the OEM's you know uh 14:54 14 minutes, 54 seconds outlook uh so that you know we can uh align our capacities and supply chain to that requirement. 15:04 15 minutes, 4 seconds Sir uh one more question from my side that is uh sir I wanted to ensure do we 15:10 15 minutes, 10 seconds have the capacities to uh I mean uh handle a 20 25% 15:18 15 minutes, 18 seconds uh ramp up uh in Q4 as well as let's say there's a further uh 8 to 10% jump in FI27 in the market will we be able to 15:27 15 minutes, 27 seconds handle those capacities and last question would be on the new product MS185 would like to understand more about 15:34 15 minutes, 34 seconds that. Uh what is that product? Where does it uh find its end use and uh what traction are we seeing there? Yeah, that's it for myself. 15:44 15 minutes, 44 seconds Okay, Kishan, are you there? 15:46 15 minutes, 46 seconds Yes. Sorry, I got disconnected. I don't know how much of what I was saying was Yeah. Yeah. So, you want to take this call? 15:56 15 minutes, 56 seconds Hello. Sorry, I I missed the question. Sorry. 15:58 15 minutes, 58 seconds Okay. Okay. Yeah. Maybe I'll just add it up and then you know uh so uh the thing is like this our current capacity 16:05 16 minutes, 5 seconds utilization is around 80%. Uh again our capacity is going to go uh you know up and down depending upon the product 16:13 16 minutes, 13 seconds mixes and then you know different configuration and uh um you know it keeps changing you know almost on a 16:20 16 minutes, 20 seconds weekly basis. Uh but the current outlook we can say that whatever the uh demand is there we probably will be able to 16:29 16 minutes, 29 seconds meet uh you know most of the um uh you know uh requirement in the short term unless there is a big change in the um 16:37 16 minutes, 37 seconds you know weekly uh or daily uh bucket that changes. Um so um you know capacity 16:44 16 minutes, 44 seconds wise uh you know we'll be like uh we discussed about you know we are investing it and uh you know starting 16:51 16 minutes, 51 seconds from Q1 FI27 and by Q3 um um FI27 we would have added all the capacities that 17:00 17 minutes is required for the you know out outlook of you know somewhere around 500,000 you know M and HCV segment uh with respect 17:08 17 minutes, 8 seconds to MS 185 you know where it is used and their application and how the traction in the market maybe Kish can answer that. 17:16 17 minutes, 16 seconds Yes, thank you. So, um it's definitely the trend. I think we have spoken about this in the previous investors calls as 17:23 17 minutes, 23 seconds well. The shift in the heavy duty or high tonnage vehicles multiaxles into tractor trailer uh tandem into tractor 17:32 17 minutes, 32 seconds trailer that that's going to stay. Now, um where will it reach as a peak? That's anybody's guess today. But uh we we 17:39 17 minutes, 39 seconds think with uh the share of business that we have with our customers and the plan that we have to ramp up and to meet that 17:47 17 minutes, 47 seconds demand we are in fact looking at a demand in 2030. So it's uh it's 5 years or 4 years from today. So that is what 17:54 17 minutes, 54 seconds our focus is and 185 is very relevant to the industry and that will continue to see the growth where it will stop 18:02 18 minutes, 2 seconds probably that's like I said um we will see in the in the coming years when the change in the powertrain mainly the 18:09 18 minutes, 9 seconds engine uh that will start driving further change in the axel and we have a global port portfolio ready for that. Thank you. 18:20 18 minutes, 20 seconds Thank you. The next question comes from the line of Abhishek Kumar Jane from Alphaacurate. Please go ahead. Uh 18:27 18 minutes, 27 seconds thanks for opportunity and congrat set of numbers sir. Uh sir uh your revenue growth was just 6% uh y on y versus the 18:36 18 minutes, 36 seconds industry growth of 17%. And uh uh you had also underperformed in the last quarter as well. So just wanted to 18:44 18 minutes, 44 seconds understand is it because of the change in the products mix due to slowdown in the taper and higher shares of the buses 18:53 18 minutes, 53 seconds uh and the just wanted to understand how long it will uh continue when will it start to outperform versus that uh 19:02 19 minutes, 2 seconds industry what would be the suitable uh tailwinds uh when we'll start to show the number 19:12 19 minutes, 12 seconds Let me answer this first. Um, you are partially right. The impact happens when 19:19 19 minutes, 19 seconds our core which I can say that the tandem and probably the high tonnage axle that 19:25 19 minutes, 25 seconds shifts to uh uh you know market segment where we are not strongly present which is today the bus and there was 19:33 19 minutes, 33 seconds definitely more buses uh in the last few months and even the previous quarter but that is not the primary only reason. uh 19:41 19 minutes, 41 seconds the other reason which I was trying to answer in the previous question is it's also what we do outside the M and XCV 19:48 19 minutes, 48 seconds those markets also influence to some extent our top line um so I was talking about the defense end of highway where 19:56 19 minutes, 56 seconds we are present very limited part and then the export which has been um I will say a considerable drop so all these 20:04 20 minutes, 4 seconds three four things put together is why if you just look at the MNCV growth and then compare with our topline growth it 20:11 20 minutes, 11 seconds will never match that these industries behave differently. It is not even just India, it is the global uh markets that also will have impact on some of these things. 20:22 20 minutes, 22 seconds So can you second question? Yeah, go ahead. 20:27 20 minutes, 27 seconds The second question that you asked was uh how long this will continue. What is in our control is getting the product 20:34 20 minutes, 34 seconds there, right? That's been the focus and we have spoken about bus axle. Uh there may be a few questions on that. I'm not 20:41 20 minutes, 41 seconds sure how many of you have seen an announcement that came in about a few weeks ago where uh the the requirement 20:49 20 minutes, 49 seconds or the mandate is beyond October 26 all the 9 plus meter city buses they have to be low floor. So we are really 20:57 20 minutes, 57 seconds evaluating this what does it mean to the new product that we are in we have in the pipeline. So once we have the 21:05 21 minutes, 5 seconds clarity you know I'm not saying we are stopping anything it's just uh how the OEMs will take this and how their architecture will change that will 21:13 21 minutes, 13 seconds define the overall powertrain and the impact on the excel. 21:18 21 minutes, 18 seconds Okay. Uh so uh I just wanted to understand the contribution of revenue from the MXBs versus the uh uh non MSTB segment. defend the export. 21:30 21 minutes, 30 seconds Raman sorry Krishna uh sorry can I get that question again please? So what is the 21:38 21 minutes, 38 seconds contribution of MSV versus non MS cavis uh uh segment revenue? Uh I mean to say that a defense plus export. 21:49 21 minutes, 49 seconds Okay. So um see our our export has always been you know in the in the mid- teens. Um and and within the within the 21:57 21 minutes, 57 seconds axles segment predominantly we are on we are on on on highway segment. So that could be about uh maybe I would say the 22:05 22 minutes, 5 seconds offway or the defense segment should should make us about you know another 10% within the axial segment. 22:12 22 minutes, 12 seconds So so 90% 90% is the MSV correct? Yes. 22:20 22 minutes, 20 seconds I'll slightly change that. Sorry I'll slightly change that. It it varies. So in the recent quarter if you see it may be 90 because there's a drop in export 22:29 22 minutes, 29 seconds offway demand and defense demand. But if all the industries or the other industries come back it can shift 70 30 or 80 20 also. 22:39 22 minutes, 39 seconds Okay. Got it. And uh just wanted to understand is uh slowdown in the tractor trailer is also impacting the overall 22:46 22 minutes, 46 seconds revenue uh of the company because that uh in a tractor trailer there's a higher requirement of uh uh uh this XL versus 22:55 22 minutes, 55 seconds that uh uh sorry uh in a uh in a TER there's a higher requirement of the uh 23:02 23 minutes, 2 seconds XL versus that tractor trailer. So uh uh so I just wanted to understand the slowdown in the ter segment is impacting 23:10 23 minutes, 10 seconds overall that yes you're right that has an impact 23:17 23 minutes, 17 seconds so so can you uh give me the mix of tractor Taylor holidays and cheaper revenue 23:25 23 minutes, 25 seconds you know generally uh we generally don't share 23:33 23 minutes, 33 seconds the you know customer mix and the product mix because like what Kishan was mentioning uh it can dramatically change 23:40 23 minutes, 40 seconds you know monthto monthth um you know week to week uh so it becomes very difficult for us to you know kind of uh 23:49 23 minutes, 49 seconds uh you know segregate and then share that product mix I'm sorry so got it so most probably the last quarter 23:57 23 minutes, 57 seconds you had mentioned that chapter Taylor uh total mix is around 30 32% so most probably 50 could be 50%. 24:07 24 minutes, 7 seconds Uh again we don't want to speculate there. Uh I would say that a good percentage of our you know last month 24:15 24 minutes, 15 seconds production came out of uh you know our prime or uh prime axel portfolio that is 24:23 24 minutes, 23 seconds you know tipper axels and then uh the MS185. 24:28 24 minutes, 28 seconds Okay. Okay. And my last question on that uh this in this quarter uh many OM are 24:35 24 minutes, 35 seconds saying that there's the improvement in the demand of the uh ter segment and clear is also launched two new ters. So 24:44 24 minutes, 44 seconds just wanted to uh uh understand uh because of the change in the outlook of the ter uh revenue growth can outperform 24:53 24 minutes, 53 seconds uh of your company as you are saying that a 20 25% growth in the next quarter 24:59 24 minutes, 59 seconds uh uh re so um let me correct that I I'm not 25:08 25 minutes, 8 seconds seeing 20 to 25% growth but what I am seeing is definitely it's going to be better than the previous quarter fours 25:16 25 minutes, 16 seconds and um the tipper launches are there from the OEMs and it's it will keep happening. What I would like to end this 25:24 25 minutes, 24 seconds question is we are 100% present where there is a new launch with this customer. Okay. Okay. Got it. Thank you sir. 25:33 25 minutes, 33 seconds That's all for me. Thank you. 25:39 25 minutes, 39 seconds The next question comes from the line of British from Lucky Investment. Please go ahead. 25:45 25 minutes, 45 seconds Yeah. Hello sir. Sir uh just to ask uh very clearly uh you know from all the earlier three four questions which have 25:53 25 minutes, 53 seconds been asked we are a little bit concerned because when we look at the OE growth and when we look at your growth there is a difference. So is there any loss of 26:01 26 minutes, 1 second wallet share with Ashok Cleland? Is there any loss of market share with Ashok Cleland? if you could just uh comment on that and uh if not then maybe 26:10 26 minutes, 10 seconds you want to comment on the residual 35% of your business because I think 60% of business play uh what's happening in the 26:18 26 minutes, 18 seconds residual 40% of the business for us to understand the deviation between the OE growth and your growth for this quarter 26:25 26 minutes, 25 seconds or last quarter whatever uh that would be very helpful sir for a more clearer understanding uh rather than running 26:32 26 minutes, 32 seconds around the bush sir Uh let me attempt this question again. 26:38 26 minutes, 38 seconds So if we uh look at it is not just one OEM. 26:43 26 minutes, 43 seconds Last quarter I think every OEM had a higher demand and against that demand our delivery performance was in the 26:50 26 minutes, 50 seconds north of 97 98%. Which means to the capacity we have and what we could do to 26:57 26 minutes, 57 seconds increase and maximize the additional volume that was in the market we were able to serve that at the rate of 97 to 98%. 27:05 27 minutes, 5 seconds This did not result in any drop in the market share of uh our share of business with the customer. Of course, there were 27:13 27 minutes, 13 seconds mixed changes where single source was the priority as you understand no line stock page is expected. So, we were able 27:20 27 minutes, 20 seconds to do that. And the second question is again which comes again and again. If there was a way to plot our growth 27:29 27 minutes, 29 seconds removing all other elements from the revenue which is coming from non on highway or M& CV segment then you will 27:37 27 minutes, 37 seconds see that it is as on par with the industry growth right provided there is no serious uh impact from the product 27:46 27 minutes, 46 seconds mix mainly the bus because we've been saying that bus is one thing which we get impacted and that is where our focus was you know in launching the new axel 27:54 27 minutes, 54 seconds so when whenever There is more bus yes we have an impact but if it is the regular amended CV segment and if you have seen our product portfolio we are 28:02 28 minutes, 2 seconds there from 7 ton all the way up to 70 ton and every slicing that the market has we have a product available except 28:10 28 minutes, 10 seconds the buses. So in this comment it's fair to conclude that above 7 7 and a half ton you are mirroring industry growth 28:18 28 minutes, 18 seconds rate and you do not have any loss of market share with the main customer and uh obviously the other 30% of the business which is some other customer. 28:27 28 minutes, 27 seconds Is is this a fair conclusion? 28:30 28 minutes, 30 seconds That is a fair conclusion and even even the other on highway customers we are able to meet their demand. So what is 28:38 28 minutes, 38 seconds not in our control is the other segments which which will not show up in the top line because we don't give that difference of M& CV and the other 28:45 28 minutes, 45 seconds segments. But if you compare growth to growth let's say let's put it in the terms of number of axles it is in line with what is the demand 28:54 28 minutes, 54 seconds and the other segment is what other than MHCV that's what your reference is. So you have a MCV business and a nonhcv business, right? 29:04 29 minutes, 4 seconds That's right. 29:05 29 minutes, 5 seconds And non MHCV business is what portion of your revenue? 29:10 29 minutes, 10 seconds Uh it ranges depending on how the export market behaves. It can be 15 to 25%. 29:17 29 minutes, 17 seconds So whatever deviation Yeah. mix of it is a mix of export, defense and offer. 29:26 29 minutes, 26 seconds Perfect. So whatever deviation that we are trying to gauge or see is to do with that 20% of the business. 29:36 29 minutes, 36 seconds Yes. Primarily export. Export is really low. I think it's not it's not just us. 29:42 29 minutes, 42 seconds I think most of the companies in this domain who are into export they have seen this reduction. 29:47 29 minutes, 47 seconds Correct. Correct. So now from a course correction point of view what do you see on this 20% of the piece? How does it 29:56 29 minutes, 56 seconds shape up over the next uh one year and first of all in the 9 month if you could tell us this 20% of the piece what is 30:03 30 minutes, 3 seconds the shrinkage in this 20% of the piece if that one number if you did would be very helpful for us to you know solve 30:10 30 minutes, 10 seconds this resolve this matter Ran I turn that question to you I don't know if we 30:17 30 minutes, 17 seconds because one number if you give us one number you know we can you know we can stop moving around the bush you know we can come to some conclusion. 30:27 30 minutes, 27 seconds Um maybe I I'll try to just Yeah, go ahead. 30:32 30 minutes, 32 seconds Yeah, sorry. Yeah. So uh see overall as as we explained right the the move with the export you know can vary depending on lot of circumstances earlier 30:41 30 minutes, 41 seconds sir we are not asking you for the reason we are just asking you in 9 month what is the drop in the 20% of the revenue 30:48 30 minutes, 48 seconds 20% of the business is there a shrinkage if there's a shrinkage and what is the shrinkage 30:57 30 minutes, 57 seconds uh see like uh you know I will just put it this way uh maybe uh see the out of the total wallet share as as Kishan 31:05 31 minutes, 5 seconds mentioned so we have you know between exports and the other business we have closer to about 20 uh somewhere it 31:12 31 minutes, 12 seconds ranges between 15 to 25%. So when I when when I see a total you know 9 month window so you know this again you know 31:20 31 minutes, 20 seconds depending on the quarter there are a lot of other factors that come in. So that's that's the reason you know we are not able to exactly give you you know how 31:27 31 minutes, 27 seconds this movement happens cuz you have you have to factor of all the macroeconomic stuffs and everything that's going on. No problem. Yeah. 31:36 31 minutes, 36 seconds No problem. Yeah. Sorry. Nothing sir. Go ahead. 31:45 31 minutes, 45 seconds Correct. So uh so you know one one thing you know that we can assure is like you know we have uh you know we we have a you know complete understanding of how 31:53 31 minutes, 53 seconds the market is working. So I think we'll be you know in the range of 15 to 25% across in that particular uh you know export and the offway business that we have. 32:03 32 minutes, 3 seconds Okay. Perfect. So I'm just concluding this your 80% of the business with MHCV there is no loss of market share. You 32:10 32 minutes, 10 seconds have to mirror the we growth eventually marring some distortion for a few months here and there based on who has what 32:18 32 minutes, 18 seconds kind of inventory in the system. The 20% of the piece is where there are variations and hence the overall revenue growth of auto XL at times doesn't 32:26 32 minutes, 26 seconds mirror the OE growth which we are trying to do. Correct. 32:31 32 minutes, 31 seconds Are you constrained by capacity by any that's broadly right? Are you constrained by Yeah. Are you constrained by capacity for growth? 32:41 32 minutes, 41 seconds Um no that's what I told you know right now uh we are not constrained and uh like I said by Q3 uh 20 FI27 32:50 32 minutes, 50 seconds will be completely um you know uh improve our capacity to meet the peak demand in the next three years. 32:59 32 minutes, 59 seconds Perfect. Of course, of course, assuming that, of course, one comment, you know, of course, assuming that we have been continuously, you know, trying to 33:08 33 minutes, 8 seconds increase our share of business, you know, right now with the kind of line of sight, we'll will not be running out of capacity. 33:16 33 minutes, 16 seconds Okay. Just three quarters back my last question you had talked about two products 175 XL and 180 AX or bus XL 33:24 33 minutes, 24 seconds which were introduced to your key customer and you talking about a wallet share rise of about 2 3%. What is the progress there on those new product line 33:32 33 minutes, 32 seconds with the customer. So here you know we were actually looking at new increasing market share and growing faster because 33:40 33 minutes, 40 seconds of this product line. So if you want to update us on this. 33:44 33 minutes, 44 seconds Sure. Um so that there are three products uh one is the break 394 break which we went into production uh end of December 33:52 33 minutes, 52 seconds and this year. So the way to look at this break is this is the next trend. 33:57 33 minutes, 57 seconds This is the future with all the shift that we are seeing. Uh this is going to replace some of our existing volume. It may not be the additional share of 34:05 34 minutes, 5 seconds business. This is the trend that is in the industry and that is why the break is developed and it is in production. 34:11 34 minutes, 11 seconds The second product is it's for the tipper market uh which is where our strength is and this is also going into 34:18 34 minutes, 18 seconds production this quarter. It's going to be a pilot production and it'll get into a full SOP. Again there will be some 34:25 34 minutes, 25 seconds cannibalization of the existing tipper axle into the new tipper axle. This is again a upgradation of the technology 34:32 34 minutes, 32 seconds and making it more suitable for the market. The third product which is the bus axel that's that's the real product gap where we are not present and um this 34:41 34 minutes, 41 seconds is almost it is ready I will say this is ready tested but the concern we have now with this latest um mandate from the 34:49 34 minutes, 49 seconds government that all 9 plus meter city buses have to be low floor we are re-evaluating what does it mean to the OEM what will be their power train 34:58 34 minutes, 58 seconds strategy and then how this may or may not impact us so that's ready but it's not ready for the launch because we need we really need to focus on what is the next change coming in. 35:09 35 minutes, 9 seconds Okay. Does the first two product by virtue of their tech advancement help you gain some share with us with with 35:16 35 minutes, 16 seconds your OE or it just a continuity of business for you? 35:21 35 minutes, 21 seconds It is both sir. It is both. I I would say it would be the continuity to a large extent because this is a change. 35:27 35 minutes, 27 seconds This is a brake replacement and then there is an additional I would say 5 to 10% opportunity where it can be applicated to the new new uh vehicles 35:36 35 minutes, 36 seconds where we are not present today. So the product can serve both. Done sir. So this was very helpful. 35:44 35 minutes, 44 seconds Thank you and all the best sir. Thank you so much. Thank you. Thank you. 35:50 35 minutes, 50 seconds A request to all participants. Please restrict your questions to true for participants. For more questions, please rejoin the queue. The next question 35:58 35 minutes, 58 seconds comes from the line of Ankur Kumar from Alpha Capital. Please go ahead. 36:02 36 minutes, 2 seconds Uh hello sir, thank you for taking my question and sir, most of the volume related questions. So I just wanted to 36:10 36 minutes, 10 seconds inquire on the raw material side course side. So our COGS has improved in the last two three quarters. So do 36:18 36 minutes, 18 seconds you expect uh this to trend to continue this gross margin improvement trend to continue? 36:25 36 minutes, 25 seconds Um so I I want to be a little bit uh um uh cautious here uh because uh the way 36:33 36 minutes, 33 seconds we are uh uh reporting our results has slightly changed because of the uh recent uh uh related party transaction 36:41 36 minutes, 41 seconds uh that happened um uh you know uh three quarters ago. Okay. So few numbers are uh you know kind of moved uh in and 36:49 36 minutes, 49 seconds around. uh but uh uh you are right we have been always focusing because 70 plus percentage of our uh cost is you 36:57 36 minutes, 57 seconds know the uh raw material uh so we have been always focusing on that optimize our supply chain um you know developing 37:04 37 minutes, 4 seconds a innovative designs lighter designs so that you know we can always uh uh uh continue to improve in that. So that end 37:12 37 minutes, 12 seconds trend will continue and as we also look at you know having a better realization by introducing a new products. So that 37:21 37 minutes, 21 seconds uh you know number will be uh continuously you are going to see the improvement but also considering the nature of our product. Okay. So there is 37:30 37 minutes, 30 seconds only so much that we can do but there is a opportunity over next two to three years to you know uh improve in that 37:37 37 minutes, 37 seconds area as you know high performance high technology products are going to come in. Uh so that cogs you know co cost of raw material is going to come down. 37:52 37 minutes, 52 seconds Got it sir. Since on in this quarter there is a significant jump in the other expense 38:00 38 minutes it has moved to over 81 cr versus 60 or in the last quarter. So can you explain what is the increase in this? 38:10 38 minutes, 10 seconds So I'll take this question. Um so see it's like um um I think we have already explained right. So we have uh the the 38:18 38 minutes, 18 seconds technical fee arrangement with the merator. So uh so whatever is the revenue growth so to that extent because it works as a percentage on the revenue. 38:26 38 minutes, 26 seconds So you can you'll see the same amount you know that will also move in the other expenses. So maybe that is one significant portion given that revenue 38:33 38 minutes, 33 seconds has grown by about 22% you would you know see a similar kind of a growth there. Uh so yeah that's mostly about that 38:41 38 minutes, 41 seconds sorry but if I look at y revenue has grown much lesser than this growth in this other expense. 38:52 38 minutes, 52 seconds No. Yeah. Right. So, so last year again, you know, we we don't have this technical fee arrangement, right? So, it is only pertaining to this year. So, I'm just comparing quarter over quarter. So, 39:00 39 minutes where the revenue grew by 22%, the cost has also grown in the similar range. 39:05 39 minutes, 5 seconds Okay. And in terms of Q4, do you expect things to go better? Isn't our growth to 39:13 39 minutes, 13 seconds be in line with OEM growth or do you think it will still continue to grow slower than the OEM? 39:20 39 minutes, 20 seconds Maybe if you can take that. 39:25 39 minutes, 25 seconds Um I think you know Kishan has answered it. I think with the current product mix and then you know our share of business 39:33 39 minutes, 33 seconds with all the OEMs and with the little bit of flat you know export and aftermarket uh uh you know outlook I 39:42 39 minutes, 42 seconds think you know we'll be in line with the industry barring you know those uh product lines where we are not present 39:50 39 minutes, 50 seconds as long as you know tractors and tippers you know they continue to you know grow uh we will be um you know keeping up 39:57 39 minutes, 57 seconds with the indust industry or probably there is a good opportunity for for us to also improve uh in other areas. 40:06 40 minutes, 6 seconds Sure sir. Thank you and all the rest. Thank you. 40:11 40 minutes, 11 seconds The next question comes from the line of Rakkesh Sharma from SEC. Please go ahead. 40:17 40 minutes, 17 seconds Yeah, thank you for the opportunity sir and congratulations for great sat members in a challenging environment and constraint product portfolio. 40:27 40 minutes, 27 seconds What I would like to ask is that sir uh after this India US FDA or any or the 40:36 40 minutes, 36 seconds deal whatever you talk about that and this EU deal what will be the benefits in the next 3 to four years for the company. 40:49 40 minutes, 49 seconds Thank you for the question. I will start. So yeah definitely we see this as a much weighted uh positive move uh both 40:58 40 minutes, 58 seconds the European and as well as the North America or US specifically. Um I'll talk about the Europe first. Uh we we don't 41:06 41 minutes, 6 seconds see a major at least as of now the details available we don't see a major movement in the way we are actually 41:13 41 minutes, 13 seconds exporting into Europe. uh because it's more what we are seeing is the import uh benefits which we are not um you know on 41:21 41 minutes, 21 seconds our bomb cost if you see we are almost everything locally you know available so we don't see a big change there but details are awaited so we have to really 41:29 41 minutes, 29 seconds understand it from a more holistic uh know way coming to the US tariff uh um 41:37 41 minutes, 37 seconds it's not just the tariff when it is US it is uh it's important to understand what the market is what is happening in the market there And as we stand you 41:46 41 minutes, 46 seconds know beginning of February I think the market is still expected to be low and when I say market there the addressable market for us is in the commercial 41:54 41 minutes, 54 seconds vehicle is the class 8 which is the heavy duty that is where our strongest presence is and until unless the market improves the tarif alone will not drive 42:03 42 minutes, 3 seconds any major shift and but what we are expecting is with this at least there is some certaintity and clarity and that 42:10 42 minutes, 10 seconds should help the OEMs there to plan their supply chain. because everything requires four to 6 months. If they are expecting a market come back in H2 42:19 42 minutes, 19 seconds calendar year H2 they have to start putting things in action in March. So we are expecting that will start now that dialogue has been almost like nothing 42:28 42 minutes, 28 seconds till now because of the uncertaintity that will come back and in the overall 3 to 5 years horizon I think there are very good opportunities with the ramp up 42:37 42 minutes, 37 seconds and everything that we are doing in the plant that will you know that will keep us ready when the market comes back there. 42:44 42 minutes, 44 seconds Thank you. Perfect. Perfect sir. And sir, starting FY27, can we expect a revenue growth of 10% and after the uh 42:53 42 minutes, 53 seconds new capacity comes in and all this deal starts to kick in in the next uh 43:00 43 minutes financial in the next calendar year. So can we expect a growth of 15% something like that starting FI 27 10% and after that 15% revenue growth possible? 43:17 43 minutes, 17 seconds Um again let me take this question. It more than the percentage how we are looking at is in two ways. One is do we 43:24 43 minutes, 24 seconds have the right capacity and capability to meet the requirement you know technical and the capacity requirement 43:31 43 minutes, 31 seconds both and second one is what will be the trade-off if we have to do a trade-off which we don't want to 43:39 43 minutes, 39 seconds domestic market fluctuation versus the global market and uh this is this is exactly the long-term strategy that we 43:47 43 minutes, 47 seconds have in place so it is not the 10% or 15% is it what is our ability to convert the upturn at the best rate. So that's 43:56 43 minutes, 56 seconds how we are thinking about this not just the number in the short term or in the 1 to two years horizon. 44:04 44 minutes, 4 seconds Perfect sir. So any new product portfolio from the parent or uh any new port product portfolio you have interest to in introduced in house. 44:15 44 minutes, 15 seconds Uh I will I will read this as whether for the current market is there any new product required? Yes, I think the bus axle is the new product. But looking at 44:23 44 minutes, 23 seconds the future trend, 5 years now from now, engines getting into higher horsepower, we already have global products 44:31 44 minutes, 31 seconds available. They are not localized because the market here is not ready. So when the when we see this happening, we 44:38 44 minutes, 38 seconds will start the action of getting those localization plan in place. How we can make it more unique to India. So this is 44:45 44 minutes, 45 seconds something we have been doing for years and years. The good example is 185. We knew 185 will be required in 2022. We 44:53 44 minutes, 53 seconds knew that it's going to be there. So we we are that's why we have a seamless launch of that product and we are ensuring that we are ramping up also in the same page. 45:03 45 minutes, 3 seconds 2032 2022 not 2032 right? No sorry 2022 we anticipated the MS1 185 which is the 45:12 45 minutes, 12 seconds hot cake now that is required for the industry and we had started all our work on that and the product was ready at least one one 12 to 18 months before the demand. 45:22 45 minutes, 22 seconds Great great sir best of luck for the future sir. Thank you so much. 45:26 45 minutes, 26 seconds Thank you. The next question comes from the line of sake Kapoor from Kapoor and please go ahead. 45:36 45 minutes, 36 seconds Ashkar sir and thank you for this opportunity. Hope I'm audible sir. Yes you are. Yes please. 45:43 45 minutes, 43 seconds Yeah yeah thank you. So sir as in the discussion uh is it is it clear for us that going ahead the next year will be 45:52 45 minutes, 52 seconds the the first year where we'll be seeing meaningful uh volume growth because of the fresh capacity addition. So is that 46:01 46 minutes, 1 second understanding correct? First of all, um let me just talk about this you know 46:08 46 minutes, 8 seconds see we did not have any capacity constraints for the current uh uh market you know volumes. Um uh so we did not 46:18 46 minutes, 18 seconds lose any uh revenue because of the capacity portion of it. uh like Kishan has always mentioned it was a product 46:25 46 minutes, 25 seconds mix in the industry at at the same time um other than amended CV whatever the uh you know industry uh impact was there 46:34 46 minutes, 34 seconds that is what is kind of u uh you know slowing us down in terms of growth or matching with the Mund CV you know um 46:42 46 minutes, 42 seconds growth um what we talked about the you know capacity is basically to look at you know the future capacity whenever 46:50 46 minutes, 50 seconds the you know uh uh the amount CV market and then uh export demands come back you 46:57 46 minutes, 57 seconds know next 6 to 12 or to 18 months we will be ready to you know convert those uh um you know uh demands you know 47:06 47 minutes, 6 seconds without uh having to you know uh lose that uh um you know potential orders. 47:13 47 minutes, 13 seconds Okay. So, so just to simplify it in terms of tonnages, uh will there be additional tonnages that we will be 47:21 47 minutes, 21 seconds adding to our portfolio or will be only the product mix that is going to change that is also on the advent of demand going ahead. 47:33 47 minutes, 33 seconds Let me take this question. So yeah, go ahead t. So I I think it's it's it will be at 47:42 47 minutes, 42 seconds least for the next 12 to 18 months the tonnage will be the focus but I think over that period tonnage will not matter. It what will matter is tonnage 47:51 47 minutes, 51 seconds will remain what matters is uh the top speed efficiency specific to axle efficiency how much more further we can 48:00 48 minutes improve. So that is when our next generation axles will come into play. 48:04 48 minutes, 4 seconds And along with that what the expectation based on the trend is when we move the average horsepower of the vehicle which 48:12 48 minutes, 12 seconds is still in the 200 horsepower today to 350 400 that is when the 48:19 48 minutes, 19 seconds next generation high efficiency products will be required. So um tonnage yes it will remain u where it 48:27 48 minutes, 27 seconds is today. there may not be a big movement there because globally also we don't see anything operating on highway more than 60 70 ton I think we have 48:35 48 minutes, 35 seconds reached that that is already done now how to make it more efficient that is that is the challenge in the industry so 48:42 48 minutes, 42 seconds I think our portfolio from global experience it's already there so how to seed them how to work with the OEMs that's the 48:50 48 minutes, 50 seconds focus we are having thank you a request to all participants Please risk your question to one per 48:59 48 minutes, 59 seconds participant. For more questions, please rejoin the queue. The next question comes from the line of Vijay from Noama. 49:05 49 minutes, 5 seconds Please go ahead. 49:08 49 minutes, 8 seconds Hi sir, thank you for taking my question. I have couple of questions. 49:13 49 minutes, 13 seconds First on uh so I did some back calculation based on industry growth for M our MSTV 49:22 49 minutes, 22 seconds segment and uh non MSTV segment. the 20% sales contribution. So is it correct 49:30 49 minutes, 30 seconds that our non MSCV sales has declined by around 20% Y that understanding should be correct 49:43 49 minutes, 43 seconds so um that is definitely drop I'll start with that whether it is and I am not fully aware of what data you have used for 49:51 49 minutes, 51 seconds your analysis but internal analysis shows that it can be 5 to 15% now and also going forward in at least 49:59 49 minutes, 59 seconds the next couple of um uh months because the the respond I gave in the previous 50:05 50 minutes, 5 seconds um uh one of the question 15% growth sir or contribution no the drop in the non amended CV 50:13 50 minutes, 13 seconds revenue I'm talking about the drop in the export revenue for example is in this range of 5 to 15% for us 50:22 50 minutes, 22 seconds okay okay so helpful to know uh secondly 50:30 50 minutes, 30 seconds sorry we request you to return to the question queue for the followup question this is my second 50:38 50 minutes, 38 seconds the next question comes from the line of Adita Boher from LFC securities please 50:45 50 minutes, 45 seconds go ahead yeah good morning yes sir 50:52 50 minutes, 52 seconds uh uh uh thank you for the opportunity uh I just wanted a small clarification Then for Q4 the comment was that it is 51:02 51 minutes, 2 seconds expected to be better by 10%. So in terms of sales uh revenue number 51:13 51 minutes, 13 seconds you are breaking off. Sorry Mr. Boy your voice is not I'm audible now. 51:23 51 minutes, 23 seconds Yes. Yeah. 51:25 51 minutes, 25 seconds uh the question was uh for Q4 the commentary was that it is expected to be better by 5 to 10% y so is it in terms 51:34 51 minutes, 34 seconds of revenue number uh okay I understand the question thank you so it is the industry volume so we 51:42 51 minutes, 42 seconds are looking at the industry volume the revenue will again be a mix of many things that we have been discussing in the previous questions 51:50 51 minutes, 50 seconds okay okay so it is a uh uh the industry is expected to grow That's right. Compared to the previous quarter. Yes. 51:59 51 minutes, 59 seconds Okay. Okay. 52:06 52 minutes, 6 seconds Thank you. The next question comes from the line of Kushi Parik from Bugle Rock PMS. Please go ahead. 52:14 52 minutes, 14 seconds Yeah. Hi. Uh so the question is that uh we mentioned about the new product on the bus excel side and the regulation 52:22 52 minutes, 22 seconds that is uh you know likely to start impacting uh our product itself. So how much uh 52:29 52 minutes, 29 seconds tweaking or anything that we anticipate uh uh and the timeline that we anticipate once this regulation kicks in 52:36 52 minutes, 36 seconds and as a continuity of this particular uh question uh so uh how much of the market share we 52:45 52 minutes, 45 seconds expect to have for our current largest customer for this particular product itself altogether. So any uh discussions 52:53 52 minutes, 53 seconds that you've been having on this uh line as well? 52:58 52 minutes, 58 seconds Yeah, thank you. Um so the regulation what it states is from the October 26 53:06 53 minutes, 6 seconds onwards it has to be a low floor and when we say low floor there is a number associated with that 400 mm. Now what we 53:13 53 minutes, 13 seconds are trying to understand further is it is 400 mm whether it is a completely flat floor or there are steps allowed 53:22 53 minutes, 22 seconds because you may have already seen there are low entry buses low floor buses with different architecture and uh different 53:29 53 minutes, 29 seconds definition. So and and second point here is once that is understood OEMs will have to look at what tweaks that you 53:37 53 minutes, 37 seconds mentioned right what tweaks they have to do to meet this requirement and in this exercise what we will figure out is our current axel if you really see it meets 53:45 53 minutes, 45 seconds most of this 400 m depending on how the 400 m is defined so we are trying to get that detailed analysis done. Um second 53:55 53 minutes, 55 seconds say that we have figured it out and our current product line is uh matching the requirement uh the expected penetration 54:04 54 minutes, 4 seconds with the with our largest OEM may be 3 to 5% because that is the only gap we see it's 3 to 5%. Um and let the third 54:12 54 minutes, 12 seconds part to your question was if it is not meeting the tweak we don't know that yet whether it's a totally different 54:20 54 minutes, 20 seconds architecture whether it will require uh a complete uh low floor which we have in the global portfolio whether we need 54:27 54 minutes, 27 seconds that we have no idea right now so we are still trying to analyze this in a in a you know a detailed manner technically 54:35 54 minutes, 35 seconds and also understanding from the OEMs how they will approach this and each OEM may approach in a very different way. 54:42 54 minutes, 42 seconds Okay. So just to uh uh clarify the 3 to 5% that you mentioned it is the 3 to 5% market share of the buses portfolio that they have. 54:52 54 minutes, 52 seconds Uh 3 to 3 to 4% of yes our customers portfolio. Yes, you're right. Oh, got it. Thank you. 55:01 55 minutes, 1 second Thank you. The next question comes from the Akash Vora from NVFM. Please go ahead. 55:11 55 minutes, 11 seconds Mr. Bora, you may proceed with your question. Yeah. Am I audible? Yes. 55:19 55 minutes, 19 seconds Yeah. Uh are we in any way uh losing 55:27 55 minutes, 27 seconds what we can say losing market to kind of you know OEMs doing their insource manufacturing for axis. Is is that a possibility? 55:36 55 minutes, 36 seconds uh I mean is that happening in India the where the OEMs are uh inhouse assembling the axles uh by procuring let's say the 55:44 55 minutes, 44 seconds axle housing the beam and the shaft uh from various other domestic players 55:52 55 minutes, 52 seconds um when you okay u let me start with what we are seeing globally we're seeing globally OEMs are actually moving away 56:01 56 minutes, 1 second from doing anything to do with Axel so we have examples in um Europe and North America where discussions are going on 56:08 56 minutes, 8 seconds where OEMs are asking us do our access even including their own design right that's the trend where the focus is on other technology and the other relevant 56:16 56 minutes, 16 seconds value that they want to create on the vehicles coming back to India within our existing business we have 56:25 56 minutes, 25 seconds this model where we supply uh we we supply as a kit different parts that's purely basically because of logistics 56:32 56 minutes, 32 seconds but every the entire content is ours It is not that the modularity what you're saying that doesn't exist in the industry where they pick something from 56:40 56 minutes, 40 seconds somebody and then try to assemble it themselves. No, it is mostly content is from one supplier but it is supplied in different uh uh conditions. 56:50 56 minutes, 50 seconds So, so in the present moment you are saying that uh the whole axel is what they uh look to procure from players 56:58 56 minutes, 58 seconds like you uh right and not the actual component they'll be procuring separately and in-house assembly that would not be the case. 57:07 57 minutes, 7 seconds So the the answer is we are supplying the whole axle and we are also supplying the axles in kits to the same OEM. It is 57:15 57 minutes, 15 seconds depending on the logistics their planned capability what they have in the in that location based on that. So the answer is 57:24 57 minutes, 24 seconds the full content at the vehicle level belongs to us. It cannot be that supplier one or competition one gives something competition two gives something and they bring something else 57:33 57 minutes, 33 seconds and make it a you know it it doesn't fit that way. The architecture will be very different. So just to follow up on this, I mean who's our current competitor? I 57:41 57 minutes, 41 seconds mean uh in the domestic market who's our current competitor, biggest competitor since we are dual source as well for many OEMs. 57:51 57 minutes, 51 seconds So our uh in terms of largest competition we have is is the captive OEMs where like we have Tata Motors, Aishers, they do their own axles. So if 58:01 58 minutes, 1 second you look at from that way they are the largest competition but of course as an independent uh axles brake supplier we have multiple we have brakes Indian 58:10 58 minutes, 10 seconds brakes uh Dana American axle and some pieces in the offway segment which is very small 58:17 58 minutes, 17 seconds and for the show clear name it's the same names that I mentioned 58:24 58 minutes, 24 seconds okay yeah thank you thank you thank you ladies and gentlemen that was 58:31 58 minutes, 31 seconds the last question for today. I now hand over the conference to the management for closing comments. Thank you and over to you sir. 58:39 58 minutes, 39 seconds Okay. Um thank you very much uh once again uh you know having trust in automotive axels and um continue to be 58:47 58 minutes, 47 seconds our stakeholders. Um just to summarize it you know the last quarter you know it was exciting and we were able to convert 58:55 58 minutes, 55 seconds it. The current quarter is also looking quite positive. um we will do everything possible to make sure that you know we 59:02 59 minutes, 2 seconds convert these uh you know opportunities and um thank you very much for calling in and have a great day. 59:11 59 minutes, 11 seconds Thank you. 59:13 59 minutes, 13 seconds Thank you. Thank you on behalf of Bakley Wala and Karani Securies. That concludes this conference. Thank you for joining us and you will now disconnect your lines. 59:21 59 minutes, 21 seconds Thank you.