Raghunandhan NL · Nuvama
directWhy is CapEx per ton higher than previous expansions?
It is about a 350 tons capacity addition leading to about INR 17 crore per metric ton of CapEx. The increase comes as a result of both the inflationary pressures... and also because the technology keeps moving.
Raghunandhan NL · Nuvama
partialWhat is the volume growth breakdown by channel?
Our volume growth for OEM and replacement was in mid-teens, and in exports it was just short of 20%. So we've had a healthy growth, as I mentioned, across all the three channels.
Raghunandhan NL · Nuvama
partialWhat was A&P spend in Q3 and future ratio?
We used to be roughly around 2% spend of A&P as a percentage of sales. In a normalized scenario, we would be upping it to about 2.5% to drive the top-line growth.
Basudeb Banerjee · CLSA
directWhat was the exact A&P spend this quarter?
A&P, along with certain sales promotion, was of the order of INR 150 crore.
Basudeb Banerjee · CLSA
partialWill elevated A&P last till Q4?
In the short term, because even as we take our call on what are the A&Ps we want to continue... it will take some time... FY 2027 scenario would be a more normalized scenario.
Basudeb Banerjee · CLSA
partialHow to view gross margin risk from raw materials?
the current outlook given by our procurement team is a flattish scenario. So as of now, that's the best estimate we have.
Basudeb Banerjee · CLSA
directWhen will debt reduction reflect in P&L?
It will start reflecting fairly in the next quarter.
Amyn Pirani · JPMorgan
directWhat is the capacity utilization for India overall?
For us, what is more relevant is the overall India operations capacity utilization. That, as I mentioned, is in the high 80s, both for car tires and truck tires.
Amyn Pirani · JPMorgan
directWhat is the total capacity addition in numbers?
Our India capacity is a little short of 60,000... we are adding 10,500... about 17%-18% of capacity to our India PCR capacity. Similarly, our existing TBR capacity is 15,000+, and we are adding 3,600 tires per day capacity, so about a 20%.
Amyn Pirani · JPMorgan
directWhat is the total CapEx for next year?
I would put the overall CapEx number for next year closer to INR 3,000 crore, Amyn.
Amyn Pirani · JPMorgan
partialWhat is the current ROCE and outlook?
Our current year ROCE, we are running at 13.5%... still not reaching that 15% target... We'll have to come back to you on that.
Joseph · Research desk
partialWhen will tax rate move to 25%?
Yes, Joseph. The tax team is examining, and with the change, most probably we would be moving to that tax bracket.