Belrise Industries Limited — Q3 FY26

Belrise Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=48JmNLDHkIw Published: 3 months ago

0:06 6 seconds Ladies and gentlemen, good morning and welcome to the Q3 and 9 MFI26 earnings conference call of Belrise Industries 0:14 14 seconds Limited. As a reminder, all participant lines will remain in the listenon mode and there will be an opportunity for you 0:21 21 seconds to ask questions after the presentation concludes. 0:24 24 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:32 32 seconds Please note that this conference is being recorded. Before we begin, a brief disclaimer. 0:39 39 seconds This conference call may contain forward-looking statements about the company which are based on the belief, opinions and expectation of the company 0:46 46 seconds has on date of this call. These statements are not the guarantee of future performance of the company and it may involve risk and uncertaintities that are difficult to predict. 0:57 57 seconds I now hand the conference over to Mr. 0:59 59 seconds Shrihan Badway, managing director from Bel Industries Limited for opening remarks. Thank you and over to you sir. 1:08 1 minute, 8 seconds Good morning everyone and thank you for joining us for Boise Industries Q3 1:16 1 minute, 16 seconds and 9 month financial year 2026 earnings call. 1:22 1 minute, 22 seconds Joining me on this call are my sons Sume and Swastit 1:29 1 minute, 29 seconds along with our CFO Mr. Rahul Ganu our CMO Mr. Sun Kulkrani and our investor 1:37 1 minute, 37 seconds relations advisors SGAA Bill Industries is a leading tier 1 1:45 1 minute, 45 seconds automotive component manufacturer with 22 manufacturing facilities acce 1:58 1 minute, 58 seconds innovation and expanding relationship has continued to drive growth. 2:05 2 minutes, 5 seconds Within our core automotive business, we continue to strengthen our positioning through higher content per vehicle and expanding OEM partnerships. 2:18 2 minutes, 18 seconds During the quarter, we secured [clears throat] a strategic order to establish a new management plant in 2:26 2 minutes, 26 seconds Harido for one of India's largest two-heer OEMs. 2:31 2 minutes, 31 seconds Our Chennai plant ramped up production in line with rising OM volumes where we 2:39 2 minutes, 39 seconds are single source supplier for a key two-heer EV platform. 2:45 2 minutes, 45 seconds Meanwhile, our BIO plant began supplies for a premium Japanese model after achieving full operational readiness. 2:57 2 minutes, 57 seconds A key highlight in the non-to segment was the acquisition of a French company SDM. 3:08 3 minutes, 8 seconds Now this acquisition we have now entered the supply chains of the largest civilian aircraft OM 3:16 3 minutes, 16 seconds globally as well as a leading combat aircraft OM. 3:23 3 minutes, 23 seconds Further, we also entered into strategic partnership with Israel's Plan Sasa to 3:30 3 minutes, 30 seconds bring the flagship ATM platform to India and to become an integral part of the global supply chain. 3:42 3 minutes, 42 seconds I'm also happy to announce the much awaited merger of Beratcoms 3:49 3 minutes, 49 seconds and Eximus Infright Industries Limited. 3:55 3 minutes, 55 seconds Both of these promoter entities are being merged at a valuation 4:02 4 minutes, 2 seconds close to their respective book values and hence represent a sign significant 4:10 4 minutes, 10 seconds discount to what build is trading at today. 4:16 4 minutes, 16 seconds This transaction will be EPS and value accreditive for all shareholders of Belra Industries Limited from day one. 4:27 4 minutes, 27 seconds I would request everyone to keep the merger presentation handy which has been uploaded on our website 4:37 4 minutes, 37 seconds and the stock exchanges as we'll be referring to it later in the call. 4:45 4 minutes, 45 seconds Coming to the results, total revenue from operations for Q3 AI 2026 4:54 4 minutes, 54 seconds stood at INR 23,45 million up by 8% yearonear 5:03 5 minutes, 3 seconds including manufacturing revenue of INR 18,660 5:09 5 minutes, 9 seconds million which grew 5% yearonear. Our EITA 5:17 5 minutes, 17 seconds and manufacturing IITA stood at INR 2,869 5:24 5 minutes, 24 seconds million and INR 279 million respectively 5:32 5 minutes, 32 seconds with margins at 12.3% and 14%. 5:37 5 minutes, 37 seconds Our adjusted PAT grew sharply to INR 1,268 5:45 5 minutes, 45 seconds million which is up by 26% yearon year. 5:51 5 minutes, 51 seconds With this brief I now hand over the call to Swastid who will take you through our merger and 6:00 6 minutes related business updates. Thank you very much. 6:05 6 minutes, 5 seconds Thank you everyone for joining the call today. I will be going through the merger presentation uploaded on our website as well as the stock exchanges. 6:13 6 minutes, 13 seconds Firstly, it gives me immense pleasure to announce that the board has approved a proposed merger of Budway Autoforms Private Limited and Eximus Infolions 6:22 6 minutes, 22 seconds Private Limited with our listed entity Bell Industries. 6:26 6 minutes, 26 seconds If you turn to page four of the merger presentation uploaded on the exchanges, I'll walk you through the strategic rationale behind this transaction and 6:34 6 minutes, 34 seconds explain why it makes strong financial as well as operational sense for the listed company and its shareholders. 6:41 6 minutes, 41 seconds To begin with, these two entities together represent one of the largest players in the Indian two-heer plastic component segment with a combined market share of approximately 14%. 6:52 6 minutes, 52 seconds Bell Rice on a standalone basis currently has close to a 10% market share. Post merger the combined entity 6:59 6 minutes, 59 seconds will command nearly a 25% market share in two wheeler plastic components. This scale translates into a higher wallet 7:06 7 minutes, 6 seconds share with OEM and greater customer sickness. Second, both bad autoarms and exmission protect are promoter owned 7:14 7 minutes, 14 seconds entities with long-standing relationships with Maki global OEM including a large 2 and three bill OEM 7:22 7 minutes, 22 seconds and a leading global consumer durables OEM amongst others. 7:26 7 minutes, 26 seconds These relationships have been built steadily over many years and have grown in tandem with the success of these OEMs in the market. 7:35 7 minutes, 35 seconds Third, from a financial standpoint, these entities are already meaningfully scaled. In FI25, 7:42 7 minutes, 42 seconds Bud Autocoms reported revenues of approximately 14 billion INR, while Xmir Inf reported revenues of close to 7 7:50 7 minutes, 50 seconds billion INR profit after tax. So that INR 793 million and INR 330 million respectively. 8:00 8 minutes This represents a meaningful profit addition to bed rise and accordingly the transaction will be earnings aggressive. 8:06 8 minutes, 6 seconds Finally on valuation as discussed earlier our objective has always been to execute this transaction as close to book value as possible. In line with 8:16 8 minutes, 16 seconds this philosophy, this merger is being executed at a P multiple of 8.3x based on FI25 numbers for these two entities. 8:25 8 minutes, 25 seconds While Bell is currently trading at a P multiple of approximately 30.9 on a TTM basis. Given this valuation 8:34 8 minutes, 34 seconds differential, the transaction will be both EPS and value from day one. If you now move to slide five, I'll outline the merger rale in greater detail. 8:45 8 minutes, 45 seconds Firstly, the merger will result in significantly simplified group structure with rated party transactions reducing materially by close to 11.5 billion INR. 8:56 8 minutes, 56 seconds Secondly, the merger will also increase our cost per vehicle by over 3,000 rupees taking it from approximately 17,300 to 20,300 an increase of nearly 20%. 9:10 9 minutes, 10 seconds This will also be accompanied by a greater push towards tier 0.5 assemblies enabling us to offer more consolidated system level solutions to our OEMs. 9:19 9 minutes, 19 seconds Thirdly, given the merging entities and Bell rides already transact and operate alongside each other, the merger will 9:27 9 minutes, 27 seconds also lead to a higher degree of verticalization with all operations coming under a single umbrella. This will drive strong operational 9:34 9 minutes, 34 seconds efficiencies ac across people processes and procurement. Fourth, we also expect 9:41 9 minutes, 41 seconds a meaningful increase in wallet share particularly in the plastic component segment of over 30% with certain market 9:48 9 minutes, 48 seconds OEMs. This expansion in wallet share will further enhance customer thickness. 9:53 9 minutes, 53 seconds And finally, as mentioned earlier, the transactions immediately EPS aggressive. 9:59 9 minutes, 59 seconds Now if you move on to page seven, I'd like to highlight a few additional data points that are worth noting. 10:05 10 minutes, 5 seconds Together these entities operate five facilities across Maharashtra. Four in Orangabad and one in Pune. This will 10:12 10 minutes, 12 seconds further expand Bell Riser's geopolical footprint. Their revenue mix is largely power agnostic. One particularly 10:19 10 minutes, 19 seconds interesting capability is Eggmouth Infatex present in the EV powertrain space the manufacturer of copper bus 10:26 10 minutes, 26 seconds bars which are critical conductive components used in battery systems. 10:32 10 minutes, 32 seconds Currently these are supplied indirectly to a major Indian passenger vehicle OEM. 10:37 10 minutes, 37 seconds There's also a high degree of in-house verticalization with capabilities planning plastic molding, painting, aesthetic application and assembly 10:46 10 minutes, 46 seconds resulting in minimal dependence on tier 2 suppliers. 10:50 10 minutes, 50 seconds Moving to page eight in terms of the post merger revenue mix. What is particularly exciting is the significant strengthening of our exposure to PV and 10:59 10 minutes, 59 seconds PVE segment. Post merger, approximately 34% of the incremental revenue contribution from these two entities 11:07 11 minutes, 7 seconds will come from the passenger vehicle and commercial vehicle segments. This allows us to continue gaining market share in four-wheelers and commercial vehicles and growth in these segments. 11:18 11 minutes, 18 seconds On page 9, from people and infra standpoint, the merger will add approximately 2,000 employees to the Benai family, including around 1550 blue 11:27 11 minutes, 27 seconds collar workers and 400 white collar employees. 11:31 11 minutes, 31 seconds The operations of these two entities are also highly automated with approximately 50 robots used in fabrication around 30 machines deployed in plastic molding. 11:41 11 minutes, 41 seconds Moving on to page 10. While the overall product mix is broadly similar to Bell R's current portfolio, there are two key differentiators. 11:50 11 minutes, 50 seconds The first is a fairing assembly where over 50 individual components both manufactured in-house and sourced 11:57 11 minutes, 57 seconds externally are assembled into a complete module and supplied directly to OEM. 12:03 12 minutes, 3 seconds This is a strong example of a continued transition towards a tier 5 assembly model. The second differentiator as I 12:11 12 minutes, 11 seconds mentioned earlier is the copper buzzbar application for electric coers. a capability that better rise does not currently possess and one that 12:19 12 minutes, 19 seconds strengthens are present in the EV power chain segment on page 11 from the perspective of awards and customer relationships these 12:28 12 minutes, 28 seconds entities work closely with two marquee global OEMs in addition they export high precision engineered plastic components 12:36 12 minutes, 36 seconds with tolerances less than 5 microns to a global consumer durable OEM across China, North America and Europe. 12:44 12 minutes, 44 seconds Achieving this level of precision in plastic components at scale is challenging and bad autocom has built this capability to strong R&D in mold design and product engineering. 12:57 12 minutes, 57 seconds From an awards perspective, we are also proud of receiving two JIPM awards from the Japanese Institute of Plant Maintenance which is among the most 13:05 13 minutes, 5 seconds prestigious global recognitions for TPM excellence. 13:10 13 minutes, 10 seconds Now if you move on to the next slide, this merger also supports Belry's medium to long-term strategy in three key ways. 13:19 13 minutes, 19 seconds Firstly, in deepening our two wheeler presence. Secondly, in increasing verticalization and thirdly, in accelerating our 13:27 13 minutes, 27 seconds evolution from a tier 1 to a tier 0.5 supplier as shown on slide 14. Firstly, the merger is expected to drive an 13:35 13 minutes, 35 seconds approximately 30% increase in wallet share in plastic for market two and three o and beyond the guided content 13:44 13 minutes, 44 seconds per vehicle of INR 17,300 for bell rise we see an incremental increase around 3,000 rupees taking consolidated 13:52 13 minutes, 52 seconds consolidated content per vehicle to approximately 20,300 rupees. 13:58 13 minutes, 58 seconds The flowchart on slide 15 illustrate how these entities already collaborate. 14:04 14 minutes, 4 seconds For instance, in fairing assemblies, Ben Rice supplies the metal components while Eggmit Infertex supplies the 14:11 14 minutes, 11 seconds plastic parts with final assembly carried out at Egimit infert. Similarly, in exhaust systems, Bell focuses on 14:20 14 minutes, 20 seconds heavy stamping and tube processing while Bway Autoforms handles fabrication, surface treatment and assembly. 14:28 14 minutes, 28 seconds Bringing these capabilities under one umbrella will further enhance operational efficiencies. 14:34 14 minutes, 34 seconds Moving on to slide 16. As mentioned earlier, we undertake a highly complex fairing assembly comprising over 50 14:41 14 minutes, 41 seconds individual components for a leading two wheel and three wheel. This is tough to replicate as an extremely sticky business. 14:49 14 minutes, 49 seconds Lastly, coming to the financials on slide 18. These entities generate strong profitability with a combined profit 14:56 14 minutes, 56 seconds after tax of approximately 1.1 billion INR with robust EIA margins. 15:03 15 minutes, 3 seconds Post merger net of related party elimination. We expect an incremental 10 billion INR of revenue to be added to 15:10 15 minutes, 10 seconds Bel along with a margin uplift driven by the internal RPD networks. 15:17 15 minutes, 17 seconds As mentioned earlier based on FI25 numbers the transaction is being executed at a P multiple of 8.3X based 15:26 15 minutes, 26 seconds on FI25 numbers while Bell Rice is trading at approximately 30.9 P ratio on a DTM basis. In terms of advisers on 15:35 15 minutes, 35 seconds this deal and Young acted as the independent registered valuer while GM Financial provides the fairest opinion for the transaction. 15:44 15 minutes, 44 seconds Promoter shareholding currently stands at approximately 66.5% premer merger and is expected to increase to around 67.9% 15:53 15 minutes, 53 seconds post merger with a balance held by the public. This is of course subject to regulatory and shareholder approvals at the upcoming AGM or EGM. 16:04 16 minutes, 4 seconds With that, I will pause here and hand it over to Sume who will walk you through our entry into aerospace and defense and how this opens up the next phase of growth beyond automotive. 16:16 16 minutes, 16 seconds Thank you. 16:19 16 minutes, 19 seconds Uh the quarter was particularly significant for us with meaningful progress across both these verticals. 16:25 16 minutes, 25 seconds First, during the quarter, we entered into a strategic collaboration agreement with Plasan Sasa, a leading Israel based 16:32 16 minutes, 32 seconds defense company with strong capabilities in advanced armoring and autonomous defense mobility solutions. 16:40 16 minutes, 40 seconds Lassan is globally recognized for his integrated platforms and has a flagship product, the Atom, which translates to 16:47 16 minutes, 47 seconds all terrain electric mission module, which has been deployed across multiple geographies globally and at scale. 16:56 16 minutes, 56 seconds The Atom platform is particularly suited for highly rugged and inaccessible terrains and is also capable of autonomous operations making it relevant 17:05 17 minutes, 5 seconds for deployment in sensitive defense zones where human and conventional vehicle movement is constrained. 17:12 17 minutes, 12 seconds This strategic collaboration plus is two-prong. 17:16 17 minutes, 16 seconds Number one, we will team with Plasan in India to jointly engage with the MOD, defense PSUs and other relevant 17:25 17 minutes, 25 seconds stakeholders to industrialize and productionize the atom solution for the Indian ecosystem. 17:31 17 minutes, 31 seconds The initial uh the initial phase will involve assembly in India and testing this solution across diverse terrains in the country like in remote and 17:39 17 minutes, 39 seconds accessible areas such as the northeast and and the north of India such as the seat and glacia etc. 17:46 17 minutes, 46 seconds Second, beyond the Indian market, we will become an integrated manufacturing partner for Placan's global supply chain, enabling cost-ffective production of Plazan's advanced systems in India. 17:58 17 minutes, 58 seconds We've already initiated prototype and initial supplies for select platforms. 18:03 18 minutes, 3 seconds And over time, we expect to become one of Plazan's key partners globally for components catering to their global exports. 18:11 18 minutes, 11 seconds This dual approach allows us to genable revenues while simultaneously building a differentiated defense mobility solution tailored to Indian operating conditions. 18:22 18 minutes, 22 seconds In addition to this during the quarter I'm very happy to share that we also completed our first ever international acquisition in the aerospace segment 18:30 18 minutes, 30 seconds through the acquisition of SDM a European aerospace manufacturing manufacturer specializing in high precision machine parts for aerosures and robotics. 18:41 18 minutes, 41 seconds Today, SDM supplies to some of the world's leading aerospace OEMs, including the largest global aircraft manufacturer, 18:49 18 minutes, 49 seconds French fighter aircraft OEM, including the largest global commercial aircraft manufacturer, 18:56 18 minutes, 56 seconds um, and the fighter OEM that I mentioned and a large French robotics OEM and various others. 19:04 19 minutes, 4 seconds With this acquisition, we have entered the supply chain of all these market customers. 19:09 19 minutes, 9 seconds To lead this business, we have onboarded the former CEO of an Airbus subsidiary who not only has key experience in scaling business in Europe but also in 19:18 19 minutes, 18 seconds shifting complex supply chains globally from a supply chain angle. 19:23 19 minutes, 23 seconds The acquisitions was completed at an attractive valuation. SGM is expected to generate revenues of approximately 3 to 4 million in FI27. 19:32 19 minutes, 32 seconds While the acquisition was cons was done at a consideration of.35 million euros implying an entry valuation of 19:40 19 minutes, 40 seconds approximately.1x sales. This is a very strategic acquisition in nature. It's very and it's small enough to manage and 19:49 19 minutes, 49 seconds gives us a European footprint to further grow our engagement in that geography. 19:55 19 minutes, 55 seconds Going forward, we plan to grow the business in Europe while also leveraging SDM technical capabilities to establish and scale aerospace manufacturing 20:02 20 minutes, 2 seconds operations in India and positioning India as a best cost manufacturing hub. 20:08 20 minutes, 8 seconds When we refer to best cost, we mean a combination of three specific factors. Number one, favorable labor economics. 20:17 20 minutes, 17 seconds Number two, a strong engineering depth recognized globally across automotive, industrial, medtech and aerospace 20:24 20 minutes, 24 seconds sectors. And number three, India's proven ability to integrate culturally and operationally with global customers. 20:33 20 minutes, 33 seconds Together, these factors position India as a preferred destination for aerospace manufacturing. 20:38 20 minutes, 38 seconds Also given the strong order pipeline of global aircraft OEMs and the increasing importance of India as one of the largest aviation markets globally. We 20:47 20 minutes, 47 seconds believe this trend will continue to pay out over the next five to 5 to 10 years and we expect to be a key beneficiary of this shift. Let me now hand over to Mr. 20:56 20 minutes, 56 seconds Rahul Gan our CFO take you through our financial performance of Q3 and 9 months of FI26. Over to you please. 21:03 21 minutes, 3 seconds Thank you Mr. Sumit and good morning to everyone on the call. Let me take you through the key financial highlights. 21:09 21 minutes, 9 seconds Quarter 3 FY26 consolidated financial highlights. Total revenue of quarter 3 FY26 to INR 23405 million up 8% yearon year from INR 21668 million in Q3 FY25. 21:24 21 minutes, 24 seconds Manufacturing revenue for Q3 FY26 stood at INR660 million up 5% Y from INR 17801 million. 21:34 21 minutes, 34 seconds ITA stood at INR2869 million up 10% YI in Q3 FY25. ITA margin stood at 12.3%. 21:44 21 minutes, 44 seconds Manufacturing EITA stood at INR 2579 million up 11% YI and manufacturing IITA margins stood at 14%. 21:53 21 minutes, 53 seconds adjusted back which is excluding the exceptional item expense of rupees 64.1 22:00 22 minutes million related to increase in employee benefit obligations resulting from the change in the labor law by government of 22:06 22 minutes, 6 seconds India at INR268 million up 26% yi INR 106 million and past margin stood at 5.2%. 22:16 22 minutes, 16 seconds Export contributed 5.8% 8% to our manufacturing revenue in quarter 3 FY26 that is INR1075 22:24 22 minutes, 24 seconds million. Coming to the segmental performance on the manufacturing front, two wheeler and three-wheer contributed 80.6%. 22:33 22 minutes, 33 seconds Passenger vehicles contributed 4.9%. Commercial vehicle contributed 7.9%. 22:40 22 minutes, 40 seconds Octure 3 FY26 and others would be 6.6%. 22:44 22 minutes, 44 seconds 9 monthly FY26 controller and financial hierarch total revenues for 9 monthly 22:50 22 minutes, 50 seconds FY26 stood at INAR 69563 million up 16% YI from INR 60165 million in 9 monthly 22:59 22 minutes, 59 seconds FY25 manufacturing revenue for 9 monthly FY26 stood at INR 55LE 583 million up 16% y 23:10 23 minutes, 10 seconds from INR 47947 million stood at INR 8636 million up 16% Y from 23:18 23 minutes, 18 seconds INR 7452 million in 9 monthly FY25 margin agents were stable at 12.4%. 23:27 23 minutes, 27 seconds Manufacturing sto INR 7778 million up 18% YI from INR 6608 million and manufacturing margins stood at 13.8%. 23:40 23 minutes, 40 seconds Adjusted T stood at INR 3714 million of 51% YI from INR2454 million and part margins at 5.3%. 23:51 23 minutes, 51 seconds Exports contributed 5.6% to our manufacturing revenue in 9 monthly FY26 that is in 3127 million. Net debt as of 24:01 24 minutes, 1 second December 2025 stood at INR 7767 million and ROAC stood at 15.1%. 24:10 24 minutes, 10 seconds Coming to the segmental performance on manufacturing fund, two wheeler and three-wheer contributed 81.5%. 24:17 24 minutes, 17 seconds Passenger vehicles contributed 4.8% commercial vehicles contributed 8.3% for quarter 3 FY26 and others would be 5.4%. 24:28 24 minutes, 28 seconds With this, I would like to give this back to Mr. S for his closing remarks on this opening note. Thank Thank you, Mr. Ganu. Finally, we would 24:38 24 minutes, 38 seconds like to share our vision for the company and where we headed over the next few years. 24:43 24 minutes, 43 seconds Since embarking on our public market journey, we've continued to strengthen and win in our core capabilities in sheet metal fabrication, in stamping, 24:51 24 minutes, 51 seconds and service treatment. We've not only secured incremental program wins with our top three two-wheer OEM customers, but also achieved meaningful traction 25:00 25 minutes with the with the Challenger OEMs, customers that are growing rapidly where our historical presence was limited. 25:08 25 minutes, 8 seconds This momentum is translating into increased market share both with existing customers and across new large OEM relationships. 25:17 25 minutes, 17 seconds Alongside this, we've deliberately established new verticals, each of which we believe has the potential to become a substantiative revenue contributor over the medium term. 25:27 25 minutes, 27 seconds In steering columns, we now supply to all marquee OEMs in India across two wheelers and three-wheelers and have recently commenced exports to a global 25:35 25 minutes, 35 seconds European OEM as well. In suspensions, we've made strong progress expanding from engagements with two large two-heer 25:44 25 minutes, 44 seconds OEMs at the start of the year to four today. 25:47 25 minutes, 47 seconds In parallel, our execution in high tensile technology has enabled us to deepen relationships with existing Japanese customers while expanding our offering to Indian OEMs as well. 25:58 25 minutes, 58 seconds We strongly believe that high tensile technology will see wider adoption in India over the next few years as the industry reaches an inflection point 26:07 26 minutes, 7 seconds driven by the need for lightweing and enhanced crash safety trends which are already well established in North America and in Japan. 26:16 26 minutes, 16 seconds In addition, we're undertaking a fundamental strategic pivot in our approach to the defense and aerospace segment. 26:23 26 minutes, 23 seconds This has been a focus area for us for some time and through recent milestones including our collaboration with Plasan and the acquisition of of SGM, we're now 26:32 26 minutes, 32 seconds working with six aerospace and defense OEMs within a very short span. We're bullish on this segment and expect to become a meaningful revenue contributor over the next few years. 26:43 26 minutes, 43 seconds Lastly, a key commitment we made during our IPO and subsequent earning calls was to simplify our corporate structure. 26:50 26 minutes, 50 seconds We've delivered on this commitment in a very value accreative manner for both public and institutional shareholders from day one. We believe this merger 26:59 26 minutes, 59 seconds will enable higher wallet share, greater vertical integration, increase customer seekiness and overall even acrition at a 27:08 27 minutes, 8 seconds consolidated level. As we move forward with this vision, we would like to thank all our stakeholders for being part of this journey so far. This is only the 27:17 27 minutes, 17 seconds beginning. With this, we can open the floor for questions. Thank you so much. 27:24 27 minutes, 24 seconds Thank you. 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 the touchstone telephone. 27:35 27 minutes, 35 seconds If you wish to remove yourself from the question queue, you may press star and two. 27:41 27 minutes, 41 seconds Participants are requested to use their handsets while asking a question. 27:45 27 minutes, 45 seconds Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. 27:55 27 minutes, 55 seconds We will wait for a moment while we poll for questions. 28:03 28 minutes, 3 seconds We take the next first question from the line on Nitage Mangal from Jeff. Please go ahead. 28:09 28 minutes, 9 seconds Hi, good morning and thanks for taking my question. Uh firstly, congratulations on getting the approvals for the merger of the promoter entities and I must say 28:17 28 minutes, 17 seconds it's coming at pretty attractive valuations. Uh my first question is on the core business where we have seen some dependent two-heer revenues uh as 28:26 28 minutes, 26 seconds well as passenger vehicle revenues on a Y basis. uh could you explain uh what is leading to this and uh what how do you 28:34 28 minutes, 34 seconds see the trend in these uh uh businesses going forward? Thank you. Thank you for that question. 28:43 28 minutes, 43 seconds Uh firstly on the two wheel bit I would like to talk about the outcome. So in terms of revenues the company two revenues remains largely flat on a 28:51 28 minutes, 51 seconds sequential basis. So we were around 15,85 million in the quarter 2 of FI 26 and right now we're at around 15,41 29:00 29 minutes million in quarter 2 FI 26. So if you even look at the volumes of our top four customers in the two wheel segment, even 29:09 29 minutes, 9 seconds their volumes have largely remained flat on a sequential basis. Hence, if you would have asked me at the start of uh 29:16 29 minutes, 16 seconds you know October about where we would see volumes, this would largely have been an expected outcome for us. 29:23 29 minutes, 23 seconds Secondly, I think if you look at the larger trend for tier ones, December usually is a slow month for the industry. So, OEM usually have a plan 29:32 29 minutes, 32 seconds maintenance shutdown for at least a few days. And perhaps what you're also seeing is a bit of a lag between perhaps 29:38 29 minutes, 38 seconds the numbers that the tier one uh players uh report and what the OEMs operate. 29:44 29 minutes, 44 seconds Maybe uh a bit of timing gap is seen over here and that's what we're probably seeing in this quarter. However, one thing I would like to point out is in 29:52 29 minutes, 52 seconds terms of our two wheel growth in the 9 months, we're still outperforming the industry. We're still up 12% on a Y basis if we you know compare the 9 30:01 30 minutes, 1 second months of this year as compared to the 9 months of last year and we see absolutely no issue in terms of us continuing to outperform the industry. 30:09 30 minutes, 9 seconds Of course in the coming quarter I think we'll get a lot of help of the upcoming facilities. Uh the one in Chennai for the leading EV platform for a two 30:17 30 minutes, 17 seconds wheeler OEM, the Bihari facility where we're supplying to a a premium Japanese two wheeler OEM as well as a Harbar 30:24 30 minutes, 24 seconds facility for a leading two-heer OEM. So all three of these facilities will come into play in this quarter and in that 30:31 30 minutes, 31 seconds sense uh we see actually no issue in continuing to outerform the industry and doing well going forward. 30:42 30 minutes, 42 seconds Uh thanks Ash. Uh secondly uh I mean I do see you winning quite a number of orders and the uh new components like 30:50 30 minutes, 50 seconds suspensions, steering columns uh height and style products etc over the last one one and a half year. Uh how do you see these business scaling up uh uh let's 30:58 30 minutes, 58 seconds say over the next few years and how much can these uh components start to contribute to the top in a few years? 31:06 31 minutes, 6 seconds Right. So thank you. So firstly I want to talk about these components that you mentioned including you know suspensions or steering columns or height and cell 31:14 31 minutes, 14 seconds components. So firstly these are as you mentioned largely proprietary parts. So uh they require a fair amount of 31:21 31 minutes, 21 seconds investment that goes into the IP itself and because they are say parts that have IP and require R&D usually OEMs have a 31:31 31 minutes, 31 seconds very long distation period to onboard these parts. anytime they have to uh onboard any of these parts they actually 31:38 31 minutes, 38 seconds go through at least 9 to 12 months of testing if not more to kind of get to a stage like this. So I think what we've 31:45 31 minutes, 45 seconds really achieved so far is really penetration or entry amongst multiple OEMs. So in suspensions we started the 31:53 31 minutes, 53 seconds year supplying to only two OEMs. Now we're supplying to four OEMs. Uh these are all really large OEMs that we're working with. In steering columns, we're 32:01 32 minutes, 1 second again working with all of the Indian OEMs as well as a Maki for an OEM and also in height and cell components. Now we're working with almost all of the you 32:09 32 minutes, 9 seconds know uh Japanese OEM as well as speaking to a couple of Indian OEMs. So across all of these segments we have now 32:17 32 minutes, 17 seconds entered multiple OEMs. So the NP and the broad basing of OEMs has been a critical part so far. Now the real key will be 32:25 32 minutes, 25 seconds penetrating and gaining wallet share amongst all of these OEMs. Uh I think the tougher part if you ask me is the 32:32 32 minutes, 32 seconds entry itself because once a technology established to take it to an inflection point is not as tough as say entering in 32:39 32 minutes, 39 seconds the first place. Now that we are in all of these OEMs the the purchase side R&D side production side is convinced of the 32:47 32 minutes, 47 seconds benefits we're getting from this technology. Now all we have to do is say continue to win new programs and grow the business. In terms of where we want 32:55 32 minutes, 55 seconds this business to be, uh we feel each of these three verticals, so suspension, steering columns and high tensile 33:02 33 minutes, 2 seconds components, each of them can be a growth vertical of its own. I think uh it would be pretty fair to say that each of them 33:10 33 minutes, 10 seconds going forward can be multiund businesses and uh this we're speaking about kind of a medium-term perspective in the next two to three years. So that's that's 33:19 33 minutes, 19 seconds where we want our ambition to be and we think we have the building blocks in place to achieve that. 33:26 33 minutes, 26 seconds Thanks. Can I have one more question? Uh I'm sorry to interrupt you then if you could please join back the queue for follow-up questions. 33:36 33 minutes, 36 seconds Sure. No worries. Thank you. 33:40 33 minutes, 40 seconds Ladies and gentlemen, if you wish to ask a question, please press star and one. 33:46 33 minutes, 46 seconds We take the next question from the line of Vijay Pande from Nuama. Please go ahead. 33:53 33 minutes, 53 seconds Uh uh thank you for taking my question and um good that you have completed the 34:00 34 minutes acquisition the related party acquisition. It was one of the key points uh uh which you highlighted at 34:08 34 minutes, 8 seconds the time of IP. So coming on to the Q3 dumpers uh 34:15 34 minutes, 15 seconds generally the other suppliers which have reported the numbers uh they have seen a 34:22 34 minutes, 22 seconds good level of growth especially for the two wheeler segment even Bajage auto their sales was up around 7% in quarter. 34:32 34 minutes, 32 seconds So I'm a bit confused that where our underperformance is coming from is it 34:38 34 minutes, 38 seconds like uh any particular model or how is it uh because I'm just not able to get 34:47 34 minutes, 47 seconds that sense why we have underperformed even if we I compare it with autos 34:54 34 minutes, 54 seconds number so while we don't comment on particular OEMs uh you'd appreciate that our growth 35:02 35 minutes, 2 seconds is based across multiple OEMs. I think we answered on why we think two wheel numbers have been uh fairly stagnant as 35:11 35 minutes, 11 seconds compared to uh last year. Of course, there can be a bit of impact of mix, but that being said, it's not like we're 35:19 35 minutes, 19 seconds losing any programs. We're continuing to get more RSQs, win more programs. Of course, different OEMs go in different 35:26 35 minutes, 26 seconds segments. Uh it's not say uh state sailing for each of them. There can be certain models that do well, certain 35:32 35 minutes, 32 seconds models that don't do well. So we of course don't inform OEM strategy in that sense. What we can talk about is uh what 35:42 35 minutes, 42 seconds we are hearing from the OEMs and the plan that we're setting up for them. Uh means that we are well on track to achieve the numbers that we have guided 35:49 35 minutes, 49 seconds for not only in the two wheel segment but also as a larger company. 35:56 35 minutes, 56 seconds Uh how how do you say currently the demand looking? So uh for the fourth quarter do you expect it to be 36:05 36 minutes, 5 seconds uh like uh positive mids singledigit growth going into the fourth quarter or 36:13 36 minutes, 13 seconds so but we expect a flattish growth we won't be commenting on quarterly guidance we have an annual guidance that 36:22 36 minutes, 22 seconds we give uh to all analysts and investors and we maintain that going forward of course the GFC rate cut has been positive 36:30 36 minutes, 30 seconds I think uh the numbers for January should be out soon and they show quite a positive trend. 36:37 36 minutes, 37 seconds Okay. Just if I do apologize. 36:41 36 minutes, 41 seconds I just it's a followup to the same question. Um just want to check uh so uh how is the inventory situation 36:50 36 minutes, 50 seconds at the OEN level? uh because some of the OEMs have guided that the inventory level is digits. 36:59 36 minutes, 59 seconds We don't comment on we don't comment on OEMs for our customers. Okay. 37:10 37 minutes, 10 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. 37:25 37 minutes, 25 seconds Ladies and gentlemen, if you wish to ask a question, please press star and one. 37:40 37 minutes, 40 seconds We take the next question from the line of Jimit Sha from Motila Los Financial Services Limited. Please go ahead. 37:49 37 minutes, 49 seconds Hi. Yes. 37:54 37 minutes, 54 seconds Yeah. Uh hi. Uh thanks for the opportunity. Uh just a couple of questions. So uh one of the key growth 38:01 38 minutes, 1 second strategies for us was uh taking the CPV for the number one and number two OEM from 12 a half,000 to 17 half,000. Now 38:08 38 minutes, 8 seconds it would go to 20 and a half thousand without with the inclusion uh and for number three number four to go to 12 a half,000 first. So uh where are we in 38:17 38 minutes, 17 seconds that journey? Is there traction from the OEMs? Uh any update on that? 38:24 38 minutes, 24 seconds Right. So I can talk about uh maybe one of our market OEMs with one of the larger OEMs that we work with. We've 38:31 38 minutes, 31 seconds already gone from say 12 a.5,000 to 14,000 with the addition of steering columns and uh with this acquisition 38:39 38 minutes, 39 seconds with the same OEM we've gone close to uh 17,000 and as we speak we're also in discussions with them uh for two new 38:47 38 minutes, 47 seconds products which we think can take it from 17,000 to say upwards of 18,000 over this fiscal year. So with one OEM we're 38:55 38 minutes, 55 seconds already seeing that journey from 12,000 to 18,000 which is a you know close to 45% increase and that is something that has happened over the past few months. 39:04 39 minutes, 4 seconds One thing I would like to point out is usually when you enter a new product uh of course you'll not get a lion share of 39:11 39 minutes, 11 seconds the wallet share immediately. They usually OEM usually introduce you to uh one model and then based on performance 39:18 39 minutes, 18 seconds kind of broad base of growth amongst different models. So I think the entries are important and those are things that are happening as we speak now. We'll 39:26 39 minutes, 26 seconds continue to grow them. In terms of your second question on on you know uh taking our third and fourth largest OEMs to higher levels. So I can talk about one 39:36 39 minutes, 36 seconds of the largest two wheel and three wheel OEMs uh which is uh in that category and uh with them now we've set on two 39:44 39 minutes, 44 seconds different things. One we are supplying to them for their uh premium segment. So by supplying to them in the premium segment our content per vehicle has gone 39:52 39 minutes, 52 seconds up by around 1.8 to two times uh specifically for them. Secondly, for the same OEM, we have now entered the 40:01 40 minutes, 1 second plastic commodity segment. And by entering the plastic commodity segment, we are now supplying a wide variety of products including fenders, cows, 40:09 40 minutes, 9 seconds covers, dashboards, visors, all relevant plastic parts, which can which can result in an increase in contour vehicle 40:16 40 minutes, 16 seconds around uh 2,000 rupees. And uh maybe with another premium four-wheeler two-heer OEM uh we are basically uh 40:26 40 minutes, 26 seconds doing more of the suspension part. So suspension entry has just happened recently and that will also lead to a quantity per vehicle increase of around 40:34 40 minutes, 34 seconds 1,500 rupees. So uh just to summarize our our top OEM we're kind of growing quite fast increase per vehicle by 45% 40:43 40 minutes, 43 seconds and with say our third fourth fifth type of OEMs there's a continued increase of new commodities that we're selling to them. 40:51 40 minutes, 51 seconds Yeah. Uh thanks for the detail. Uh secondly, uh on the overall business side of things on the core business. So 40:59 40 minutes, 59 seconds uh two wheels have been very congruent on the demand going ahead. So EU4 numbers expected to be very strong for 41:06 41 minutes, 6 seconds all two wheel or three wheel OEMs. U and relatively low base of H1 for the next year also bs well for the industry 41:13 41 minutes, 13 seconds growth. So is there any ramp up of schedules from the OEMs that you've seen or anything on the demand front that we are expecting? 41:24 41 minutes, 24 seconds So in general we don't comment on the schedules that we get from OEMs. I think the numbers are out for everyone to see in terms of the January uh production 41:32 41 minutes, 32 seconds numbers for OEMs. I think as you mentioned correctly uh you know the numbers seem positive and seem to be going in the right 41:40 41 minutes, 40 seconds trajectory. We maintain our guidance of outcome in the industry uh in two wheelers uh substantially and also kind 41:48 41 minutes, 48 seconds of maintaining that mid- team kind of revenue growth uh going forward. 41:55 41 minutes, 55 seconds Uh thanks for that. Thank you. Thank you. 42:00 42 minutes We take the next question from the line of Shubam Jen from Invest. Please go ahead. 42:07 42 minutes, 7 seconds Hi, thanks for the opportunity. My first question was on defense and aerospace growth prospects. Uh how do we see this business scaling up over the next few 42:15 42 minutes, 15 seconds years and the second question was a bookkeeping bookkeeping question. Uh the tax rate this quarter seems to be high at about 29%. 42:24 42 minutes, 24 seconds Uh like what should be the tax rate number that we should work with? Uh here yeah that's all. 42:31 42 minutes, 31 seconds I can I can take the first one. 42:34 42 minutes, 34 seconds Yeah. From a from a defense perspective, I think um as we mentioned on the call, fundamentally we started working with 42:41 42 minutes, 41 seconds six new OEMs. There is very very positive traction from from um domestic as well as international OEMs. 42:50 42 minutes, 50 seconds I want to supplement that with saying not just defense but defense and aerospace. Aerospace is an area for us uh that we're looking at very keenly. 42:59 42 minutes, 59 seconds We've already entered supply chain of two of the largest players in that space and u as I'm sure you've you must have 43:07 43 minutes, 7 seconds seen in the news over the past few months of the year uh the largest OEMs in the aerospace industry in the aviation industry are looking at India 43:15 43 minutes, 15 seconds very very seriously they're looking to uh set up manufacturing in uh or sort of source more from India and also manufacture in India we want to 43:23 43 minutes, 23 seconds capitalize on that positive trajectory while this The French acquisition is an 43:30 43 minutes, 30 seconds entry mechanism for us to start very close engagement with the European counterparts with with the European OEMs. We want to fundamentally 43:39 43 minutes, 39 seconds um set up manufacturing facilities in India for the aerospace and defense vertical which is currently in the in 43:46 43 minutes, 46 seconds the works. Largely in the medium-term we see this as a very very positive and meaningful contributor to our revenues 43:55 43 minutes, 55 seconds going forward. I unfortunately cannot comment on on the specific numbers but it'll be a meaningful contributor in a short time. 44:04 44 minutes, 4 seconds Yeah. And to answer your second question of the tax rate, I think over the course of the year we'll see this normalize around uh 20 to 24% of corporate tax rate. 44:20 44 minutes, 20 seconds Thank you. 44:22 44 minutes, 22 seconds We take the next question from the line of Vira Sanvi from Ambit Capital. Please go ahead. 44:30 44 minutes, 30 seconds Hi, thanks for taking my question. So, uh my first question is on the fourwheeler part. Uh we've mentioned in 44:36 44 minutes, 36 seconds the merger presentation that the post merger uh exposure to four wheelers is uh rising sharply uh than what we have 44:45 44 minutes, 45 seconds currently. So, can you provide more color as to what is the customer profile over here? Is it largely uh E4heer OEMs 44:52 44 minutes, 52 seconds and what are the kind of products and what is uh the change in CPV on the four-wheeler side uh post merger. 45:02 45 minutes, 2 seconds Right. Thank you uh for that question. 45:04 45 minutes, 4 seconds So uh just to shed some light on that we'll be adding close to a,000 crores of revenue or 10,000 million INR of revenue 45:12 45 minutes, 12 seconds uh post merger and around 34% of this would be geared towards passenger vehicle as well as commercial vehicles. 45:20 45 minutes, 20 seconds I think two major parts of what would be supplying to passenger vehicle and commercial vehicles. Number one would be the copper buzz bars which are uh 45:27 45 minutes, 27 seconds extremely important from a battery and battery management perspective since uh you know it's a critical part that uh 45:34 45 minutes, 34 seconds rules conductivity in in a system. And secondly, uh these companies also have a decent exposure uh in the plastic 45:43 45 minutes, 43 seconds segment to supplying a lot of different parts like uh dashboards, tire covers, uh tire wheels and uh interior 45:52 45 minutes, 52 seconds infotainment parts for uh marquee passenger vehicle OEM. 45:56 45 minutes, 56 seconds In terms of mix, we actually also work we work with a four-wheeler Indian domestic OEM for the buzzbas and for the 46:04 46 minutes, 4 seconds plastic path there's a wide variety of OEMs including uh a couple of uh European OEMs as well as a couple of 46:11 46 minutes, 11 seconds domestic OEMs. Some of which is direct and some of which is through a tier one given that a lot of these parts go into 46:19 46 minutes, 19 seconds infotainment systems which are say managed by uh particular tier ones. Uh I think uh the content per vehicle 46:27 46 minutes, 27 seconds increase that uh we can see in four-wheelers would be slightly higher uh would be close to 5,000 rupees that we'll be able to see. 46:39 46 minutes, 39 seconds Sure. Thanks. Uh secondly uh from this quarter's uh perspective we've seen a decline in the PV uh revenue as well. So 46:48 46 minutes, 48 seconds uh could you shed uh some details on how the two wheeler performed but uh any color on why the decline was there on the PV side? 46:59 46 minutes, 59 seconds So uh on on the PV side a couple of factors coming together uh you know contribute to it. So firstly uh in the 47:07 47 minutes, 7 seconds last quarter this quarter there was some supply chain issues with one of our largest Europe based four-wheeler OEM which is a premium automaker and in fact 47:16 47 minutes, 16 seconds this OEM is also our largest four-wheeler OEM and as they have uh struggled volumes of cost that has had uh a negative impact on our revenues. Uh 47:26 47 minutes, 26 seconds second was as we announced last time we are setting up a facility in Baji for uh plastic molding uh for uh one of the 47:34 47 minutes, 34 seconds largest Japanese OEMs. This plant was being shifted from another location. So during the shifting of course uh there was a bit of loss of production. 47:42 47 minutes, 42 seconds However, that is transitional and uh you'll see it getting recovered in the fourth quarter or 526. 47:51 47 minutes, 51 seconds Another important point I'd like to highlight is uh H1 and Belright both uh also work a lot uh in the tooling and D 48:00 48 minutes industry where we uh supply tooling to a lot of marquee Japanese as well as Indian passenger vehicle OEMs. Uh this 48:09 48 minutes, 9 seconds has been categorized in the others category. So while these sales are in the end happening to uh a passenger 48:16 48 minutes, 16 seconds vehicle OEM uh we have technically classified them as others because uh you know it's a kind of different product 48:23 48 minutes, 23 seconds category and uh just fourthly on a on a broader perspective if you look at our fashion vehicle numbers we're still up 48:31 48 minutes, 31 seconds 24% on a year-on-year basis if you compare 9 months against 9 months and uh hence we again don't see any change in 48:39 48 minutes, 39 seconds our guidance which is to double our four wheeler commercial vehicle revenue in the next two years as compared to FI25 48:46 48 minutes, 46 seconds numbers. So, uh I think we can definitely achieve that and there's no reason why that should not happen. 48:54 48 minutes, 54 seconds Got it. Uh thanks. Lastly, just one thing you sure thank you. 49:04 49 minutes, 4 seconds We take the next question from the line of Naven Mata from Mahindra Manul Life Investment Management Private Limited. Please go ahead. 49:13 49 minutes, 13 seconds Yeah. Hi sir, thanks for the opportunity. Just uh another uh kind of follow up on the two ler uh growth being 49:21 49 minutes, 21 seconds lower for us in this quarter. I just wanted a bit more understanding when we look at your mix is two wheeler plus three-wheer is about uh 64%. 49:30 49 minutes, 30 seconds Uh just if is it possible for you to split this between two wheeler and three-wheer or what would be the composition of this? 49:40 49 minutes, 40 seconds Thank you Nimi for the question. Uh so this would largely be two wheeler. Uh while I don't have the exact number in front of me, I think it would be close to 60% uh two wheelers probably 3 or 4% three wheelers. 49:52 49 minutes, 52 seconds Okay. Uh because when I look at your largest customers production growth Yi, it looks like two wheelers is about 3 4% 49:59 49 minutes, 59 seconds growth and three wheelers is about 30% growth. Which is why the question that if we have lesser salency in the preheer 50:06 50 minutes, 6 seconds mix uh is that the reason why our number is kind of trending flattish or kind of broadly in line with our largest 50:14 50 minutes, 14 seconds customer. Is that the explanation or you think uh there's another way to kind of look at this? 50:20 50 minutes, 20 seconds I think that that's also a fair way to look at it. I think uh another important point that I would like to highlight 50:27 50 minutes, 27 seconds here is that our uh penetration in the three-wheer sector is going up. So for our largest customer or for a couple of 50:36 50 minutes, 36 seconds largest customers, we've won orders with them across uh their upcoming chassis systems for their upcoming three-wheeler 50:43 50 minutes, 43 seconds platform both across ICE and EV. We've also won additional orders from them for suspensions both in ICE and EV. So 50:50 50 minutes, 50 seconds you're right. Right now the the presence in uh three-wheelers per se is lower but uh I think that is also going up uh in the future. 51:03 51 minutes, 3 seconds Fair enough. That's it from Thank you. Thank you. 51:09 51 minutes, 9 seconds We take the next question from the line of Radha from BNK Securities. Please go ahead. Hi sir, thank you for the opportunity. 51:17 51 minutes, 17 seconds Uh so my first question is I wanted to understand how big is the market size of plastic components in two wheelers and three wheelers and four-wheelers 51:26 51 minutes, 26 seconds separately in India and is this business entirely outsourced by OE in India or is there a captive market share also? 51:37 51 minutes, 37 seconds Uh I would probably have the two wheeler numbers handy on me right now. uh that market for a limited size of products. 51:46 51 minutes, 46 seconds If I just consider three products which is a fender cowl and cover that would be close to 5 to 600 cr market. Of course if you add the dashboard and the visor 51:54 51 minutes, 54 seconds and the helmet accessories I think my best guess would be this would be uh close to 2,000 cr market on a console 52:02 52 minutes, 2 seconds basis in the two wheeler uh segment. I unfortunately don't have the numbers handy on me for passenger vehicles and whether this is all outsourced. Yes, I 52:11 52 minutes, 11 seconds don't think any OEM does a lot of plastic manufacturing now. It is usually outsourced to tier one sagas. 52:19 52 minutes, 19 seconds And what is the maximum content per vehicle that can be reached in these products in two wheelers and four 52:28 52 minutes, 28 seconds wheelers separately? So this would help us understand how big uh can this business become for us. 52:35 52 minutes, 35 seconds So one thing I would like to point out is when it comes to plastic molding or say fabrication I think I think uh the 52:43 52 minutes, 43 seconds process largely remain the same. So we can say manufacture almost all components that go into a two wheel or four-wheeler uh using a similar plastic 52:51 52 minutes, 51 seconds injection molding process. So in say two wheelers I think the a quantum vehicle that we have guided for is around uh you 52:59 52 minutes, 59 seconds know 2,000 rupees that is there currently and of course that going up with fairing assemblies which have a bit of plastic as well a bit of metal so 53:08 53 minutes, 8 seconds that can say go from 2,000 to around 3,000 rupees in four-wheelers it's tough to you know you know comment on a a 53:16 53 minutes, 16 seconds content per vehicle amount because there's a very wide variety of products that that go into a four-wheeler and neutally Each of them are managed by 53:24 53 minutes, 24 seconds system integrators. So it depends a lot on which system in indicators you're working with. If you get entry with system integrator or become a system 53:31 53 minutes, 31 seconds indicator yourself uh that's a very lumpy type of growth that you get in four-wheelers. 53:38 53 minutes, 38 seconds Yeah. Just to add uh to that in those four wheels especially it's more complex because uh like SOS system integrators 53:45 53 minutes, 45 seconds and these are much larger assemblies that they supply know the tier ones especially you know a lot of it also includes a part of the system it 53:54 53 minutes, 54 seconds includes the side panels so all of this comes pretty much well for well furbished and uh just ready to fit so 54:02 54 minutes, 2 seconds apart from plastic there are other parts also which get into it so it's uh really very difficult to analyze as to what would be the uh the total content when you look at such kind of assemblies being supplied to four wheelers. 54:14 54 minutes, 14 seconds Mr. Thank you and all the best. Thank you. 54:20 54 minutes, 20 seconds We take the next question from the line of Raman KV from Sequent Investments. Please go ahead. 54:26 54 minutes, 26 seconds Uh hello sir, can you hear me? Yeah, please go ahead. 54:32 54 minutes, 32 seconds Yes. So uh yeah my first question is with respect to the merger of the promoter owned entities. So together 54:40 54 minutes, 40 seconds this Bway autoco comp and Eximus Infra they did around 2,100 crores of revenue in FI25. 54:47 54 minutes, 47 seconds Uh I just want to understand how how they performed in the current 9 month period for the financial year FI26 and 54:55 54 minutes, 55 seconds what do you expect the growth of these two entities to be in the next one or two years? one is that and uh you as you 55:03 55 minutes, 3 seconds mentioned this will reduce the uh related party transaction by 1,100 1,200 crores which will basically add 55:12 55 minutes, 12 seconds around 1,000 crores to the revenue of bell r so I just want to understand by when this will be finalized by fi26 or 55:21 55 minutes, 21 seconds fi27 right so I think to answer your second 55:28 55 minutes, 28 seconds question uh this is of subject to a lot of regulatory approvals uh because we'll have to get the approvals from the 55:35 55 minutes, 35 seconds exchanges as well as the NCL uh for the merger to be finalized and uh 55:42 55 minutes, 42 seconds I think the timeline that we've indicated in our presentation is uh anywhere between 10 to 12 months. So you 55:49 55 minutes, 49 seconds can assume that this happens uh within FI25 itself. 55:56 55 minutes, 56 seconds And uh sorry what was your second question? 56:00 56 minutes My first question was the growth with respect to the Bway Autocomes and Exomus Infra. 56:07 56 minutes, 7 seconds Right. Right. So in general we'll not be uh commenting on the growth for these uh companies of now once a clarity of when 56:17 56 minutes, 17 seconds and how these companies we'll speak more about it then. 56:23 56 minutes, 23 seconds Uh understood. Just a follow up on this uh both of this merger I mean it will reduce your uh uh uh excess corporate uh 56:34 56 minutes, 34 seconds overheads uh this mergers will be margin aggressive as well right 56:42 56 minutes, 42 seconds so of course when when your RPT revenues are getting netted off and the ITA is being added in so I think 56:51 56 minutes, 51 seconds if you look at the IITA margins of these two entities uh they say close to 12 to 13%. So 56:57 56 minutes, 57 seconds fairly in line with what Belita margins are so imagine that the revenues are getting net off but I getting added 57:05 57 minutes, 5 seconds in so in that sense of course it should be ITA as well as credit. 57:10 57 minutes, 10 seconds Understood sir and sir what I would request you to please join the que for followup question. uh just a followup. 57:16 57 minutes, 16 seconds Uh I just want to understand the debt and cash in this uh both the entities. 57:25 57 minutes, 25 seconds So I think that's part of the presentation. You can you can just take a quick look at it. Okay. Thank you sir. 57:31 57 minutes, 31 seconds Thank you. We take the next question from the line of Ashwin Patil from LKP Securities Limited. Please go ahead 57:44 57 minutes, 44 seconds Ashman. Please unmute your line and proceed with your question. 57:58 57 minutes, 58 seconds Since there is no response, ladies and gentlemen, due to time constraint, we take that as the last question and we conclude the question 58:06 58 minutes, 6 seconds and answer session. I now hand the conference over to the management for their closing comments. 58:17 58 minutes, 17 seconds Thank you everyone for your time and this question. Okay everyone I would like to 58:24 58 minutes, 24 seconds management everyone for their time interest and questions. 58:33 58 minutes, 33 seconds I hope we have been able to address most of your queries. We remain confident in our growth trajectory both near-term and long-term driven by strategic 58:41 58 minutes, 41 seconds investments and our commitment to advancing products and technologies. For any further queries, please reach out to us or to study our IR partners. 58:56 58 minutes, 56 seconds Thank you on behalf of Bellrise Industries Limited. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.