Bharat Forge Limited — Q3 FY26

Bharat Forge Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=3YA84cL88Us Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Bhat Forge Limited Q3 and 9 months F526 earnings conference call. As 0:10 10 seconds a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:18 18 seconds during the conference call, please signal an operator by pressing start and zero on your touchstone p. Please note that this conference is being recorded. 0:27 27 seconds I now hand the conference over to Mr. 0:29 29 seconds Amit Kalyani, vice chairman and joint managing director Bharat Forge Limited. Thank you and over to you Mr. Kalyan. 0:38 38 seconds Thank you. Uh good afternoon ladies and gentlemen and thank you for your time and interest in joining our earnings call for the third quarter FY26. 0:49 49 seconds Um I trust that you've seen the numbers and gone through uh what we put out. Uh before that I'll introduce you to the 0:57 57 seconds team that I have with us. I have uh my colleague from the board subot. Um I have our group CFO. I have our CFO 1:05 1 minute, 5 seconds Kedar, our head of investor relations Raj and his colleague Chinmay. And we are happy to uh take you through our 1:14 1 minute, 14 seconds quarter and uh um answer whatever questions you have. So over to Kedar and he'll take you through a synopsis. 1:23 1 minute, 23 seconds Good afternoon everyone. I'll take you through the standalone business highlights for quarter 3 and 9 months ended if for FY26. The standalone 1:32 1 minute, 32 seconds revenues were up 7% sequentially to about 20 uh 84 crores and IBIDA at 569 1:40 1 minute, 40 seconds cr which was which shows a growth of 4.6% quarter or quarter with aida margin of 27.3%. 1:49 1 minute, 49 seconds uh this this includes a tariff uh cost impact of uh uh rupees 31 cr. The performance was aided by strong growth 1:58 1 minute, 58 seconds in domestic automotive business and execution of defense order book. Uh continued detocking in North America 2:05 2 minutes, 5 seconds truck market had an adverse impact on export revenues in quarter 3. Uh while the auto sector was down 13%, the industrial witnessed sharp 11% growth. 2:16 2 minutes, 16 seconds Uh this was mainly on account of uh improved business in oil and gas aerospace business. Uh to put things in 2:23 2 minutes, 23 seconds perspective, North American truck market revenues are down 51% as compared to quarter 3 of last year. We had an 2:32 2 minutes, 32 seconds onetime impact of 487 million on account of changes in labor code. This is mainly to do with the graduity provision for the past services. 2:42 2 minutes, 42 seconds Standalone revenues for 9 months was 6135 crores with IBIDA margin at uh 27.7%. 2:49 2 minutes, 49 seconds Balance sheet continues to remain strong with debt debt to equity net of cash of only.15. 2:56 2 minutes, 56 seconds Uh at the end of this year, we'll have a long-term debt of only 600 crores uh on our balance sheet. Uh quarter 3 3:04 3 minutes, 4 seconds consolidated revenues came in at 4343 crores and Ibida margin at 17.3%. 3:12 3 minutes, 12 seconds Uh stable performance in overseas subsidiaries and improving execution in defense helped the overall performance 3:19 3 minutes, 19 seconds for 9 months. Uh consolidated revenue was 12,284 crores with ibida margin of 17.5%. 3:27 3 minutes, 27 seconds Indian subsidiaries continue to perform well. uh JSA which is our casting business saw their topline and IBIDA 3:34 3 minutes, 34 seconds growth by strong 22% and 39% respectively. Kry which is our recent acquisition saw muted topline but good 3:43 3 minutes, 43 seconds jump in IBIDA from 3% to about 5% in this quarter. 3:49 3 minutes, 49 seconds Uh quarter 3 uh in last quarter the company had secured new business uh worth 2388 3:56 3 minutes, 56 seconds crores across all key businesses which includes uh uh the component business of 4:02 4 minutes, 2 seconds 378 crores, defense of uh 1878 crores, casting 78 crores and K drive 55 crores. 4:12 4 minutes, 12 seconds Talking about the overseas subsidiaries, the European operations were stable amidst the patchy demand due to holiday 4:20 4 minutes, 20 seconds season. Utilizations levels in quarter 3 were about 60 to 65%. 4:26 4 minutes, 26 seconds During the quarter, EU uh operations recorded an IBID of 39 crores. Uh US aluminium had a stable quarter given the 4:35 4 minutes, 35 seconds sentiment in North American passenger car market. uh the US operations recorded EBID of about 10 crores for 4:41 4 minutes, 41 seconds quarter 3. The tariff on aluminium into US uh is impacting uh the profitability and demand uh in this business. Current 4:51 4 minutes, 51 seconds utilization level of aluminium business in the US is about 65%. 4:56 4 minutes, 56 seconds Uh for 9 months performance uh uh we continue to work on the improvement in our overseas business. So for 9 months 5:04 5 minutes, 4 seconds the US losses were down almost 50%. And we are seeing a lower losses at EU level 5:12 5 minutes, 12 seconds and while we continue to improve our operation we also continue to evaluate restructuring operations for our European steel business and we will 5:22 5 minutes, 22 seconds update the progress by end of this fiscal year. 5:25 5 minutes, 25 seconds Now I will hand over uh to Amit sir for his comments. 6:02 6 minutes, 2 seconds uh speakers please go ahead. Yes. 6:11 6 minutes, 11 seconds So uh ladies and gentlemen, thank you. 6:13 6 minutes, 13 seconds Uh just want to tell you that you know we entered into all this uncertainty 6:20 6 minutes, 20 seconds very suddenly and by God's grace and you know the government and everybody doing their job we've also come out of this 6:28 6 minutes, 28 seconds mess in a very sudden manner. I hope that uh uh the positivity translates into uh real action and I see early 6:38 6 minutes, 38 seconds signs of that. So we have a good amount of confidence that the vers is behind us and that I think we have strengthened 6:45 6 minutes, 45 seconds our position. We have further developed new products and you will see that evidence in the next few years how we 6:55 6 minutes, 55 seconds are building new segments for our company uh which have growth potential and are the kind of products and 7:03 7 minutes, 3 seconds technologies that will give us uh a very good uh future. Um I think uh on the 7:11 7 minutes, 11 seconds domestic front the GST reforms have given a boost to the automotive industry and also take the industry players by 7:19 7 minutes, 19 seconds surprise. In fact uh the growth was uh almost unmanageable by them. The recent announcement with the trade deal has 7:27 7 minutes, 27 seconds also uh been positive and coupled with the CV market in the US bottoming out and beginning to uh show higher order 7:37 7 minutes, 37 seconds intake will also be give us a lot of momentum. It's a deja vu of 2019 where every period of ours was 7:45 7 minutes, 45 seconds witnessing a strong growth. Uh I'm also very happy to report that uh our in our acquisition of JSA 7:53 7 minutes, 53 seconds little over two years ago uh uh has worked out very well for us. We have now brought in a very high quality investor 8:02 8 minutes, 2 seconds in the form of PremG invest which has invested uh to take a meaningful stake in the company and uh it's 23% at a 8:12 8 minutes, 12 seconds valuation of at 4300 crores. So that values our investment at a multiple you know three and a half to four times of 8:20 8 minutes, 20 seconds what we had bought it for. So you know our team has done a good job and I think that the overall collaboration between 8:27 8 minutes, 27 seconds our automotive business, the casting business and our customers has worked very well and will give us plenty of growth going forward. Um the CV sector 8:36 8 minutes, 36 seconds for Q4 India looks very strong and may continue into first half of next year. 8:41 8 minutes, 41 seconds Exports seem to have bottomed out and we should see a gradual improvement from here. On defense, we see a strong uptake 8:48 8 minutes, 48 seconds uh driven by commencement of the ATAGS order and the beginning of CQB production. We should look at a you know 8:56 8 minutes, 56 seconds 30 40% plus growth in our defense business next year. Aerospace segment also we see a very strong growth next 9:03 9 minutes, 3 seconds year. also year after next because next year we have some new programs and some new capacities coming online but 9:11 9 minutes, 11 seconds significantly larger coming online year after next and we believe that we are on track to you know really meaningfully 9:20 9 minutes, 20 seconds grow this business in the next three odd years and make it a business that is sizable and will generate very uh tidy 9:30 9 minutes, 30 seconds returns and addition to our top and bottom time. 9:35 9 minutes, 35 seconds Uh on the M&A side, you know, we we are looking at uh some very interesting opportunities 9:41 9 minutes, 41 seconds and uh you know, we'll take it as it comes. In terms of capacity addition, we 9:48 9 minutes, 48 seconds have new orders that we've won which are very long-term in very strategic sectors and we're setting up some new facilities 9:55 9 minutes, 55 seconds to uh take care of that. So I think on the whole that's the picture where it stands. So I think we're now ready to 10:03 10 minutes, 3 seconds take your questions. So u thank you very much. 10:09 10 minutes, 9 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If 10:16 10 minutes, 16 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 10:24 10 minutes, 24 seconds and gentlemen, we will wait for a moment while the question assembles. 10:31 10 minutes, 31 seconds The first question comes from the line of Kungjan with Bank of America. Please go ahead. Yeah. 10:37 10 minutes, 37 seconds Hi, thanks for taking my question. My uh first question is on the uh defense business. Um you know there have been 10:44 10 minutes, 44 seconds quite uh wide ranging winds in the last quarter right small guns carbine then unmanned system 10:52 10 minutes, 52 seconds drones and then u you know uh even the marine one came through in the last couple of months. So clearly the product 10:59 10 minutes, 59 seconds capabilities and is is far wider than the gun guns and the portfolio is expanding right. So I I mean I'm just 11:06 11 minutes, 6 seconds looking to get some sense from you as to how do we think about the scale up of this business in the next 2 three years. 11:13 11 minutes, 13 seconds Yes. Of course there's one way that we look at order book and execution of order book but I it does seem like you know some of the newer opportunities are adding in. So you know some thoughts on 11:21 11 minutes, 21 seconds how do we think about this business from a two three year perspective. 11:24 11 minutes, 24 seconds Yeah sure bun. I think you have to look at our defense business the way you look at our overall company. 11:32 11 minutes, 32 seconds You know, we will derisk defense from any one vertical. We will have multiple verticals. We will have verticals that have continuous business. 11:42 11 minutes, 42 seconds We'll have verticals that will have lumpy business and we will look at global opportunities for all the 11:49 11 minutes, 49 seconds products that we make. Uh it's very clear that unmanned systems and drones 11:56 11 minutes, 56 seconds are a very big opportunity. Uh these are uh definitely both complimentary and supplementary to manned systems. So we 12:04 12 minutes, 4 seconds have to have a play there and we are there both in the water domain that is underwater and in aerial domain. Uh and 12:13 12 minutes, 13 seconds we are building the capability not just for the product but also for the payload. So that is a uh one way to look 12:20 12 minutes, 20 seconds at it. Um and these are products that can be ranging from you know 12:27 12 minutes, 27 seconds few cr rupees to many many million dollars. So there's a wide range of products within that also. So we believe 12:36 12 minutes, 36 seconds that once you become a defense player uh and especially in a network ccentric uh uh you know battle environment or 12:44 12 minutes, 44 seconds defense environment you need to have all the network products that become a force multiplier for any of your products. 12:54 12 minutes, 54 seconds Got it. If I were to like just sort of think that defense is you know roughly about you know 10 12% or even less 10% 13:02 13 minutes, 2 seconds order of your revenues right now with these new opportunities order book conversion I mean you know just directionally how do you think this how 13:11 13 minutes, 11 seconds significant can this be I'm just trying to get the scale of this business maybe 3 years down the line maybe 5 years down the line what the way you internally 13:19 13 minutes, 19 seconds sort of look at the evolution of this see realistically Basically defense has the opportunity to become as big as our 13:28 13 minutes, 28 seconds business today is overall business is today. If you look at global opportunities, you know, if you look at the budget of Europe, uh European 13:37 13 minutes, 37 seconds defense budget is going from 350 billion to 800 billion. India's defense budget is growing by 21% this year. So overall 13:45 13 minutes, 45 seconds there is a huge growth taking place in these sectors. So it depends on what we play in, what role we play and what we 13:54 13 minutes, 54 seconds win. But clearly 10%, 11% will you know definitely be more like closer to 18 20% 14:03 14 minutes, 3 seconds if things go right. Could be even more than that. 14:07 14 minutes, 7 seconds Got it. 18 20% in two to three years. Is that how should let's look at 2030. 14:14 14 minutes, 14 seconds Okay. Got it. Um now second question is on this um tariff uh you know clearly 14:20 14 minutes, 20 seconds you guys navigated it really well um you know with pretty modest hits. Uh I'm just trying to get a color on what does 14:28 14 minutes, 28 seconds the deal do beyond the easing of margin pressures. Is there fundamentally something you see has shifted and which can put us in a better place as a 14:37 14 minutes, 37 seconds supplier ecosystem from India? You know some qualitative thoughts around that. 14:41 14 minutes, 41 seconds Yeah. So look, obviously it puts us in a better position than certain other countries which have a higher tariff than us. 14:50 14 minutes, 50 seconds So that's one thing. Okay. Second is uh you know the tariff deal being done and 14:57 14 minutes, 57 seconds the punitive 25% being removed means that uh you know we're in a differentiated position than others. 15:07 15 minutes, 7 seconds Plus the new product development will start again with all all our customers not that it had stopped but there is 15:14 15 minutes, 14 seconds more confidence now to go full stream ahead. 15:20 15 minutes, 20 seconds Got it. Um and last question just on Europe restructuring again you know trying to get your thoughts on uh you you mentioned that you'll give an update 15:29 15 minutes, 29 seconds by the end of the year but any color on how what is it that we are looking to do is it looking to wind down the business 15:37 15 minutes, 37 seconds is it looking to shift it to India I mean what sort of re I can't say anything more than what we've already said 15:44 15 minutes, 44 seconds okay got it but you know like I said we have to make a profit or you know we have to take some decisions so we have to see what to do. 15:57 15 minutes, 57 seconds Okay. All right. I I'll join back with you. Thank you so much. 16:03 16 minutes, 3 seconds Thank you. Next question comes from the line of Amin Pirani with JP Morgan. Please go ahead. 16:14 16 minutes, 14 seconds Yes. Hi. Uh thanks for the opportunity. 16:16 16 minutes, 16 seconds Uh actually my my first question was on the announcement of uh the uh the 16:23 16 minutes, 23 seconds investment in JS Auto. So uh my question was that you know given that you are you know probably the experts on the on the 16:32 16 minutes, 32 seconds manufacturing business that it is and given that you know balance sheet is not really a constraint for you. what is the value that you know um you know this 16:41 16 minutes, 41 seconds investor is bringing in uh and uh how does this change the scale of operations which maybe you couldn't have done on your own? 16:49 16 minutes, 49 seconds No, there's nothing that we couldn't have done on our own. I just think that sometimes having you know a few more uh 16:57 16 minutes, 57 seconds you know let's say a slightly different perspective is uh always good and having 17:03 17 minutes, 3 seconds more uh you know what do you call it bandwidth I know to think about things and they 17:11 17 minutes, 11 seconds also have a lot of connect globally plus we want this business to grow fast we want it to grow both organically and 17:19 17 minutes, 19 seconds inorganically and Now we don't have to worry about putting any more money in here. 17:27 17 minutes, 27 seconds Okay. Uh understood. Fair enough. Um secondly, you know, just following up on the Europe question. So interestingly, you know, in the last two three 17:35 17 minutes, 35 seconds quarters, it looks like uh these numbers have already started to move up. So you know that's trying to understand are there already some things that you're 17:43 17 minutes, 43 seconds doing in the business or we still have to think about you know a kind of big restructuring which you had indicated like you know few quarters back 17:51 17 minutes, 51 seconds so look we're trying to do a lot of things we're reducing a lot of cost um but 17:58 17 minutes, 58 seconds you know it's not easy it's every day there's something new happening in Europe uh you know so we're trying to do 18:06 18 minutes, 6 seconds the best we can we are putting a lot of improvement measures etc. We just have to see how effective they are whether uh one is internal the second is external. 18:17 18 minutes, 17 seconds We also need to see whether whatever we are doing the external landscape and the market is big enough and is there to take advantage of. 18:29 18 minutes, 29 seconds So understood you know it's not just uh one way you know Europe I think is in a secular problem and we don't know where it's heading so we have to see. 18:39 18 minutes, 39 seconds Okay so uh thanks for that I'll come back. 18:46 18 minutes, 46 seconds Thank you. Next question comes from the line of Kapil Singh with Numura. Please go ahead. Yeah, good afternoon sir. 18:55 18 minutes, 55 seconds Uh so wanted to check firstly your thoughts on the defense business profitability. How would it be comparable to the auto business over 19:03 19 minutes, 3 seconds time? How uh how should we think about I I would expect it to be uh you know profitable equivalent on an IDA basis 19:12 19 minutes, 12 seconds generally speaking and you know uh I think the ROC should be better because 19:20 19 minutes, 20 seconds we don't have the same amount of capital employed. Okay. 19:26 19 minutes, 26 seconds Also it will have a long tail because there'll be uh constant uh you know MRO and support income coming from everything that you sell. 19:36 19 minutes, 36 seconds Okay. And sir this order book that we have what period should we look at for the execution? Also we had a small arms 19:45 19 minutes, 45 seconds contract order for the small arms is 5 years the rest would be between uh mostly four years. 19:54 19 minutes, 54 seconds Okay. Okay. Okay. 19:56 19 minutes, 56 seconds And uh sir also on the outlook for particularly the global truck business 20:04 20 minutes, 4 seconds has it already bottomed out as you as you mentioned but when do we start to see the upcycle? Are there any signs visible? What is the outlook for next 20:12 20 minutes, 12 seconds one year? You know I'm not just asking for one quarter. 20:15 20 minutes, 15 seconds My uh colleagues to both answer that question please. Well um you've seen the 20:23 20 minutes, 23 seconds the incoming orders in the US for you know class 7 8 in the last two months they've been on the upside and uh 20:30 20 minutes, 30 seconds generally there is a sense of confidence just given that all the uncertainties of the last year that things would be better so we are hoping uh that things 20:39 20 minutes, 39 seconds would be better than uh last year and hopefully things would be stable as well and growing. So that's that's what we are planning for. 20:48 20 minutes, 48 seconds Okay. 20:49 20 minutes, 49 seconds It's going to be steady. It's going to be steady but but on the positive side is what we expect. 20:55 20 minutes, 55 seconds Okay. And sir, can you comment on the passenger vehicle exports as well as we continue growing our passenger car 21:04 21 minutes, 4 seconds exports? Uh again uh we are engaged with all the major players in the world and uh yeah I mean we uh we have lot of 21:12 21 minutes, 12 seconds opportunities on the table. So all of them are being addressed. Okay, thank you. Thanks a lot. 21:23 21 minutes, 23 seconds Thank you. Next question comes from the line of Abishek Sha with Valor Capital. Please go ahead. 21:31 21 minutes, 31 seconds Hi sir. 21:35 21 minutes, 35 seconds Hello Mr. Sha. Sorry for interrupting. Your voice is breaking. Can you come in the range and talk? Yeah. Hi. Uh is it better now? Hello. 21:43 21 minutes, 43 seconds Yes, please go ahead. 21:45 21 minutes, 45 seconds Yeah. Uh sir uh I this is regarding a news article and uh somewhere we've been reading online that uh Kalyani group as 21:52 21 minutes, 52 seconds such has been uh you know granted by Orisa government you know we we were planning to set up a project of 17,000 odd crores uh just wanted some more 22:02 22 minutes, 2 seconds clarity uh on this I mean the project uh what our understanding was it will be implemented by three companies of our 22:09 22 minutes, 9 seconds group Barat Forge Kalyani steel and Sanova so maybe if you can give us some more understanding on you what will be the split, who's spending how much and what 22:17 22 minutes, 17 seconds is this project about? Uh uh and maybe tentative timelines for the same. 22:23 22 minutes, 23 seconds So the first part of the project will be uh uh specialty steel plant which will be set up by Kalyani steels. Uh that 22:33 22 minutes, 33 seconds will be coming up in uh I mean they once once the EC and everything happens they will uh break ground and start work. uh 22:42 22 minutes, 42 seconds that will be about 700,000 tons of steel specialty steel. Then the second part will be a super alloy plant which will 22:51 22 minutes, 51 seconds be set up by SARA to make aerospace and other uh super alloy grades uh including uh tool and die steel etc. 23:02 23 minutes, 2 seconds And the third will be a uh forging, machining, potentially also casting facility by the 23:11 23 minutes, 11 seconds relevant companies including JSA if needed. uh uh if there is an opportunity 23:17 23 minutes, 17 seconds to do uh you know a further expansion of our own existing products and certain 23:24 23 minutes, 24 seconds new products uh using the raw material and the overall advantage that we'll get in that location. 23:36 23 minutes, 36 seconds So what will be the tentative capex split between the three? 23:41 23 minutes, 41 seconds I see each company will do its own capex so I don't want to in a bat for call talk about other companies. 23:49 23 minutes, 49 seconds No no in the sense out of 17,000 how much are we going to spend? How much is bat for going to spend sir? 23:55 23 minutes, 55 seconds So bhat we have said up to 3,000 crores. 23:59 23 minutes, 59 seconds Aa okay got it. and s tentative timelines uh for when we start our capeex I mean I'm talking from bat soj's 24:07 24 minutes, 7 seconds perspective and how does it link to the group basically this will be the next growth phase after 24:13 24 minutes, 13 seconds our existing expansions in bahamati etc so nothing in the immediate one or two 24:21 24 minutes, 21 seconds years I mean not in the next one year okay got it got it that's all from my side thank 24:32 24 minutes, 32 seconds Thank you. A reminder to all the participants that you may press star and one to ask question. Next question comes 24:39 24 minutes, 39 seconds from the line of Nit and Jen with fair value equity advisor. Please hold. 24:45 24 minutes, 45 seconds Yeah. Uh congratulations on the excellent quarter. Uh I have uh just two questions. Uh so if you can talk a little bit about your defense order 24:53 24 minutes, 53 seconds pipeline. Uh now I'm asking this because uh uh QQ itself our order book has grown 25:00 25 minutes more than 1500 crores. So uh where do we expect to end this year? Uh and what kind of bid pipeline we have for uh fiscal 27. 25:12 25 minutes, 12 seconds So we have increased our order book by two 25:19 25 minutes, 19 seconds things. one is the CQB carbine and uh some of the EP orders that we 25:26 25 minutes, 26 seconds got. Okay. Now, we have a lot of other things that are in the pipeline. There 25:33 25 minutes, 33 seconds are a lot of new programs that we are working on, a lot of new products that we're developing. I don't want to talk about any of that right now. Once we 25:41 25 minutes, 41 seconds place, you know, once we make the bids, we can talk about them, right? So uh do we expect any of these 25:50 25 minutes, 50 seconds to materialize by fiscal 27 or there's still time to go? 25:56 25 minutes, 56 seconds See uh as you know the whole defense uh procurement uh process is being overhauled and being 26:03 26 minutes, 3 seconds speeded up. Uh the new DAP has come out which is very uh you know comforting that it is focusing more on Indian 26:12 26 minutes, 12 seconds development and design products and making India a lot more. So I think we are quite bullish on uh you know this 26:21 26 minutes, 21 seconds whole sector growing for India. There's also a global opportunity to be a supplier both of systems and components 26:29 26 minutes, 29 seconds into Europe and many other parts of the world. So overall I think this is a market that's going to grow. This is a sector that's going to grow and a 26:37 26 minutes, 37 seconds business that's you know going to have a long-term strong future for us. 26:43 26 minutes, 43 seconds Great. uh also recently one of the Indian for companies uh they were inducted into uh the NATO supply chain for high precision defense components. 26:54 26 minutes, 54 seconds So uh like this is considered positive for their business. Uh so I just wanted to know if we also share any similar 27:01 27 minutes, 1 second credentials or we are uh vying for the same. First of all, I would say please validate what you're saying. Uh because 27:09 27 minutes, 9 seconds uh okay and second, we already are supplying uh into we are already 27:16 27 minutes, 16 seconds exporting into uh sales you know large quantities in this area. 27:24 27 minutes, 24 seconds Okay, great. And lastly, any development on the server business? Uh last we had heard from the company was that it tied 27:31 27 minutes, 31 seconds up with a few global leaders. uh if you can make us aware the development phase. Okay. Thank you. 27:39 27 minutes, 39 seconds Thank you. 27:42 27 minutes, 42 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Akash Ji with time and tight advisor. Please go ahead. 27:55 27 minutes, 55 seconds Good afternoon sir and thank you for the opportunity. Um my first question is um how has the acquisition of American Axel 28:03 28 minutes, 3 seconds been performing and what is our view on the segment? Uh the acquisition has performed well. 28:09 28 minutes, 9 seconds Our margins have grown by uh you know almost uh 200 basis points and I expect 28:17 28 minutes, 17 seconds that this sector will do well. This is a high growth sector and we are already winning quite a lot of new business from 28:25 28 minutes, 25 seconds uh Indian OEMs. So this is a uh been a good acquisition for us and we expect this to you know turn out to be a very 28:34 28 minutes, 34 seconds positive uh step for the company. 28:39 28 minutes, 39 seconds Sure. And the group also has taken automotive axis. So how are we looking at these two companies in similar segments? 28:48 28 minutes, 48 seconds So I'm not personally involved with automotive axles individually because of uh the same reasons. uh and you know as you know automotive axles is a 28:57 28 minutes, 57 seconds investment of the company of the group for a very long time uh it has its own position in the heavy axle sector and 29:05 29 minutes, 5 seconds this is another player in this axle sector so I think uh you know each will find its own niche and you know where needed they will also compete. 29:15 29 minutes, 15 seconds Sure. And my last question is has American accent been gaining market share has been what gaming market share 29:23 29 minutes, 23 seconds has been gaining market share yes it's been getting a lot of new business yes 29:29 29 minutes, 29 seconds okay any or any way to quantify that I think uh you know next quarter we'll 29:36 29 minutes, 36 seconds talk about that sure thank you so much so much thank you a reminder to all the 29:45 29 minutes, 45 seconds participants that you may star and want to ask a question. 29:56 29 minutes, 56 seconds Once again a reminder to all the participants press star and one to ask a question. 30:11 30 minutes, 11 seconds Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I would now like to hand the conference 30:18 30 minutes, 18 seconds over to Mr. Amit Talyani for closing comments. 30:22 30 minutes, 22 seconds So ladies and gentlemen, thank you very much for your time and interest and your questions. Um, you know, as always, it's 30:30 30 minutes, 30 seconds a pleasure interacting with you. Thank you for your positive comments and feedback and we look forward to remaining engaged as we continue the 30:38 30 minutes, 38 seconds growth journey of our company over the next many years. Thank you. Bye-bye. 30:44 30 minutes, 44 seconds Thank you. On behalf of Bad Forge Limited, that concludes this conference. 30:48 30 minutes, 48 seconds Thank you for joining us. You may now disconnect your lines.