Divgi Torqtransfer Systems Limited — Q4 FY26

Divgi TorqTransfer Systems Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=t1V3zcMU6Gc Published: 3 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Divkey Talk Transfer Systems Limited Q4 FY26 earnings 0:08 8 seconds conference call hosted by Centrum Broking Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an 0:17 17 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:25 25 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:33 33 seconds hand the conference over to Mr. Amit Damea from Sentum Broking Limited. Thank you and over to you sir. Good afternoon 0:42 42 seconds everyone. On behalf of Central Broking Limited, I welcome you all to Q4 and FR26 post sales call of DIG of transfer 0:50 50 seconds systems limited. From the management side, we have Mr. Bibi, managing director, Mr. Hindra, whole time director, Mr. Sujin Mjandra, CFO, Mr. 1:00 1 minute Fatima Sabwa, chief growth officer, and Mr. Deepak Bhani, COO. I will now hand over the call to Jim for his opening remarks. Over to you, sir. 1:10 1 minute, 10 seconds Yeah. Uh, thank you very much. And uh good afternoon everyone and welcome to the Q4 and FI26 earnings call for the BTTS. 1:20 1 minute, 20 seconds Um I trust you have had the opportunity to go through the Q4 and FI26 financial results uh and the presentation which 1:28 1 minute, 28 seconds were uploaded on the stock exchanges and are also available on the company's website. Uh as was mentioned uh joining 1:36 1 minute, 36 seconds me on the call today uh we have our leadership team that includes uh uh Hendra Divi our full-time executive 1:44 1 minute, 44 seconds director Sudin Majanar our CFO Sundar Singh Sabarwal our chief growth officer 1:51 1 minute, 51 seconds and our COO Mr. Deepakwani and our investor relations advisor SGA have also 1:57 1 minute, 57 seconds joined us on this call today. Uh so to begin with uh FI26 marked uh you would agree an important turning point for the 2:06 2 minutes, 6 seconds top transfer systems. Uh following two relatively subdued years uh FI26 emerged 2:13 2 minutes, 13 seconds as a year of strong uh recovery of one of execution and accelerated momentum across multiple uh sort of growth 2:22 2 minutes, 22 seconds drivers of the company. I'm delighted to share that we delivered the highest ever total revenue in our history uh crossing 2:30 2 minutes, 30 seconds 375 crores uh representing a robust growth of approximately 56% over FI25 2:39 2 minutes, 39 seconds and essentially bringing uh the the trajectory back on track. 2:45 2 minutes, 45 seconds Uh IBIT stood at over 92 crores with margins remaining healthy and resilient at nearly 25%. 2:52 2 minutes, 52 seconds uh while PAT grew sharply by over 90% to uh almost 47 crores uh reflecting strong 3:00 3 minutes operating leverage uh an optimized business mix and sustained operational discipline. Uh what is even more 3:08 3 minutes, 8 seconds encouraging is the steady improvement witnessed from you know from quarter to quarter in FI26. 3:15 3 minutes, 15 seconds uh our quarterly revenue run rate has nearly doubled over the last few quarters increasing 3:23 3 minutes, 23 seconds uh from the low of around 55 crores to over 110 crores in Q4 FY26. 3:30 3 minutes, 30 seconds Uh this strong run rate sort of reflects improving uh product acceptance across customers, higher wallet share with 3:38 3 minutes, 38 seconds existing customers, expanding export opportunities uh and growing traction across multiple new programs and platforms. 3:47 3 minutes, 47 seconds Uh importantly this growth has been achieved by while by while by while by maintaining financial discipline a debt-free balance sheet and continued 3:56 3 minutes, 56 seconds investments in a strong uh a debt-free balance sheet discipline capital allocation 4:03 4 minutes, 3 seconds and uh investments in technology uh engineering capabilities leadership strengthening and future ready uh mobility platforms. 4:14 4 minutes, 14 seconds The year clearly reflects the success of our diversification strategy and reinforces our confidence that we are 4:22 4 minutes, 22 seconds now entering the next stage of scalable and sustainable growth. Uh what I want to do now is just briefly touch upon 4:29 4 minutes, 29 seconds each uh of our important segments. Uh first uh our transfer case business. Uh this continues to remain one of the 4:38 4 minutes, 38 seconds companies I mean the strongest and most strategic uh vertical. The business witnessed uh a sharp recovery beginning 4:46 4 minutes, 46 seconds Q4 FI25 with volumes returning close to U FI23 levels uh after somewhat of a 4:54 4 minutes, 54 seconds prolonged slowdown. During FI26, the segment once again emerged as the company's primary uh growth driver uh 5:03 5 minutes, 3 seconds supported by increasing adoption of four-wheel drive system, successful new vehicle launches, uh higher offtake uh 5:11 5 minutes, 11 seconds across various uh segments and uh growing traction across both domestic and export programs. 5:19 5 minutes, 19 seconds As a uh part of the Indonesia export programs, the company has secured transfer case orders for Mina Scorpio 5:27 5 minutes, 27 seconds pickup and Tata Motors Yoda pickup platforms where DIP has been selected as the exclusive transfer case supplier. 5:35 5 minutes, 35 seconds Execution of these programs remains firmly on track and provides strong medium-term volume visibility further 5:43 5 minutes, 43 seconds reinforcing our position as a trusted drivetrain technology partner to leading Indian OEMs in their global expansion 5:50 5 minutes, 50 seconds journey. A key strategic milestone during the year was the nomination received from a leading Japanese OEM for 5:57 5 minutes, 57 seconds the development of transfer cases for an iconic uh global pickup truck platform. 6:03 6 minutes, 3 seconds uh from this OEM with SOP targeted in SI 28 2829. 6:10 6 minutes, 10 seconds Our engagement with the Japanese OEM ecosystem continues to progress positively and represents an important 6:17 6 minutes, 17 seconds step uh in our own globalization journey. We have already successfully completed prototype development and 6:24 6 minutes, 24 seconds proof of concept validation for the program uh in a record 3 to four months of getting the award. 6:31 6 minutes, 31 seconds Uh so what's next in this area? We continue to strengthen uh our future ready transfer case portfolio through 6:38 6 minutes, 38 seconds development of advanced technologies including what is known as uh talk on demand systems uh electronically 6:46 6 minutes, 46 seconds controlled four-wheel drive systems uh as also lowcost um you know manual shift transfer case solutions that have 6:55 6 minutes, 55 seconds certain other features uh uh that uh distinguish and differentiate them. Uh 7:02 7 minutes, 2 seconds in addition the company achieved a significant technology breakthrough with its uh anchor customer that is Mahindra 7:10 7 minutes, 10 seconds through the successful development of a next generation talk on demand transfer case uh integrated with what is known as 7:17 7 minutes, 17 seconds MLO technology uh for upcoming vehicle platforms and we're currently uh engaged in discussions to figure out the 7:26 7 minutes, 26 seconds integration of this technology in many of their production models. Overall, the FI26 marked a year of meaningful 7:34 7 minutes, 34 seconds progress for the transfer case business with significant advancements in technological capabilities, customer 7:42 7 minutes, 42 seconds engagements, export opportunities and uh future platform expansion. 7:48 7 minutes, 48 seconds Uh we now come to the EV transmission business. Uh this segment remained relatively uh subdued but consistent 7:57 7 minutes, 57 seconds with last year. Um and uh partly because of 8:04 8 minutes, 4 seconds uh lengthened uh development cycles at our major OEM customer that is Tata Motors. Volumes remained largely 8:13 8 minutes, 13 seconds uh rangebound through most of FI26 and there was some gradual improvement in FI26. 8:21 8 minutes, 21 seconds Uh despite these headwinds, the company itself has made significant strategic progress in expanding its ED portfolio 8:29 8 minutes, 29 seconds across multiple Tata Motors platforms uh as well as other OEM OEMs and Tata 8:36 8 minutes, 36 seconds Motors as you know uh by volume is the market leader uh in India. The improvement in volumes during FI26 was 8:45 8 minutes, 45 seconds supported um by higher uh volumes. The uh the significant thing was that the 8:52 8 minutes, 52 seconds Tigor platform has been upgraded with one of our transmission uh models and a 8:59 8 minutes, 59 seconds new design now uh has been developed for which we have received a production approval from Tata which will go on uh 9:08 9 minutes, 8 seconds models such as the Nexon uh and the curve. 9:12 9 minutes, 12 seconds Uh overall while EV industry growth remained rapid uh during the year we continue to invest consistently in 9:19 9 minutes, 19 seconds product development, engineering capability and future ready technologies. The company has further strengthens strengthened its positioning 9:28 9 minutes, 28 seconds through strong uh NDH performance which is very critical for EV transmissions uh that require high quality manufacturing 9:37 9 minutes, 37 seconds standards um uh you know to be seen as a credible supplier in both domestic and overseas 9:45 9 minutes, 45 seconds markets. Um during the year we successfully developed advanced uh 120 9:52 9 minutes, 52 seconds kW transmission system across multiple platforms that I just mentioned uh and 9:58 9 minutes, 58 seconds further deepened our integration with uh our key customer that is Tata Motors. Uh although commercialization has 10:06 10 minutes, 6 seconds progressed gradually, we expect volumes to improve progressively alongside uh upcoming EV launches, platform expansion 10:14 10 minutes, 14 seconds uh and increasing localization initiatives ac across the industry. The point I want to emphasize as a takeaway 10:22 10 minutes, 22 seconds is that our entire EV transmission portfolio is our proprietary 10:30 10 minutes, 30 seconds uh uh asset uh proprietary design and therefore that enables us to leverage 10:37 10 minutes, 37 seconds this successful development to expand into other market segments and other customers. Uh so one of the ideas that 10:47 10 minutes, 47 seconds we're actively working on is to take our EV transmission portfolio and go overseas into markets like the United States, Europe, and also China. 10:58 10 minutes, 58 seconds So what's next? Uh we are actively evaluating opportunities in the fast growing three-wheeler 11:07 11 minutes, 7 seconds electrifications segment and we're working closely uh with OEMs 11:13 11 minutes, 13 seconds uh for to export uh some of these uh uh products. Uh there we are working essentially with uh a host of startups. 11:24 11 minutes, 24 seconds Uh some of you may recall that uh we were at one time actively working on uh the the three-wheeler assignment at 11:32 11 minutes, 32 seconds Mahindra but Mahindra chose to keep the three-wheeler production inhouse 11:39 11 minutes, 39 seconds uh and so uh that opportunity did not uh realize for us but the important uh uh 11:48 11 minutes, 48 seconds benefit that we derived from that assignment was that we developed our own uh designs and we are now in in the 11:54 11 minutes, 54 seconds midst of prototyping with these designs uh with a couple of uh startup customers. 12:01 12 minutes, 1 second Uh we believe that the EV transmission business in in this segment represents a significant long-term growth opportunity 12:10 12 minutes, 10 seconds for the company. So our focus remains firmly on building a scalable, diversified and technology-led EV 12:18 12 minutes, 18 seconds mobility portfolio that can become a meaningful contributor to the company's uh future trajectory. Uh just a quick 12:26 12 minutes, 26 seconds sentence on what I mean by technology-led uh EV mobility portfolio. 12:31 12 minutes, 31 seconds uh I want to clarify that we uh are going to restrict our scope to the 12:38 12 minutes, 38 seconds mechanical portion but we expect some level of sophistication to come into uh EV transmissions through either 12:47 12 minutes, 47 seconds two-speed or 3-speed uh transmissions and this is where our uh experience in 12:54 12 minutes, 54 seconds uh auto automated shifting uh will come uh handy and become an asset as we develop 13:01 13 minutes, 1 second these uh uh products that are multi-speed EV transmissions. 13:07 13 minutes, 7 seconds In conclusion, I wish to state that we have the world's widest portfolio of production ready transmission models all 13:15 13 minutes, 15 seconds the way from 10 kow to 150 kow and we continue to remain India's largest uh EV 13:24 13 minutes, 24 seconds transmission u manufacturer at least in terms of the capacity uh that we currently have. Uh so let me now shift 13:32 13 minutes, 32 seconds to um uh components and exports. Uh where as you if you have studied uh the data 13:41 13 minutes, 41 seconds that we have put out we saw some uh exceptional performance in this last one year. So this business emerged uh as one 13:50 13 minutes, 50 seconds of the strongest uh growth drivers in uh the year just gone by. Revenue from the component segment nearly doubled during 13:57 13 minutes, 57 seconds the year while exports uh increased sharply from around 6% of revenue to a meaningful uh double-digit contribution of nearly 18%. 14:08 14 minutes, 8 seconds Uh the business delivered exceptional growth driven by of course increased volume uh deeper engagement with global 14:15 14 minutes, 15 seconds tier 1 customers such as Bo Warner and Magna uh expanding customer relationships across many of their 14:23 14 minutes, 23 seconds plants. uh and rising acceptance of not just our products but the uh solutions 14:30 14 minutes, 30 seconds that are embedded uh in the parts that we supply. Uh export revenue scaled up significantly during the year uh and are 14:39 14 minutes, 39 seconds steadily becoming an important contributor to the company's overall revenue mix and diversification strategy. Importantly, the business has moved meaningfully up the value chain. 14:50 14 minutes, 50 seconds We are increasingly delivering integrated engineering, manufacturing and supply chain solutions rather than operating merely as a peace part 14:58 14 minutes, 58 seconds supplier. This evolution is strengthening uh customer stickiness, improving wallet share and enhancing long-term scalability of the business. 15:09 15 minutes, 9 seconds So what's next in this uh area? Uh what is particularly encouraging is that this growth is no longer driven solely by 15:17 15 minutes, 17 seconds cost competitiveness. Increasingly our growth is uh driven by uh the ability to give engineering solutions 15:26 15 minutes, 26 seconds uh overall product uh quality also getting it right first time for program management overall execution reliability 15:35 15 minutes, 35 seconds uh consistency transparency in communication uh advanced manufacturing 15:42 15 minutes, 42 seconds um you know process knowledge and our ability to cater to specialized uh niche applications 15:49 15 minutes, 49 seconds um you know whether it's metal energy uh heat treatment uh special coating uh processes and such. During the year we 15:59 15 minutes, 59 seconds further expanded our international footprint across North America, Europe, Asia-Pacific uh the Asia-Pacific markets and 16:08 16 minutes, 8 seconds reinforcing our uh globalization strategy. Our board has approved the incorporation of a wholly owned 16:15 16 minutes, 15 seconds subsidiary in the United States to to strengthen customer proximity and deepen our engagement in the strategically 16:23 16 minutes, 23 seconds important North American market. Um, and I'd be happy to answer any additional questions uh that you have during the 16:31 16 minutes, 31 seconds Q&A session. Uh in addition, the newly uh secured component programs are expected to contribute annual revenues 16:39 16 minutes, 39 seconds uh nearing 100 crores uh with volumes exceeding 1 million parts annually. 16:45 16 minutes, 45 seconds Reflecting the strong momentum in the business, our monthly revenue run rate uh has already increased from approximately 7 crores to nearly uh 10 16:54 16 minutes, 54 seconds to 12 crores. Export business has now become um a major strategic focus area 17:01 17 minutes, 1 second across transfer cases, components uh and other transmission products that we have including EVs. 17:08 17 minutes, 8 seconds export contribution increased significantly uh crossing 20% in Q2 FI26 17:15 17 minutes, 15 seconds um while the company continues to maintain a medium-term target of 20 to 25% export contribution to overall 17:24 17 minutes, 24 seconds revenues and going by the recent uh depreciation in the rupee one can see the wisdom uh of such a business mix and 17:33 17 minutes, 33 seconds having such a business model uh we are also seeing encouraging opportunities emerging from global supply chain diversification initiatives 17:42 17 minutes, 42 seconds uh and potentially India US and India EU trade agreements which could further strengthen uh our positioning as a 17:50 17 minutes, 50 seconds preferred manufacturing and engineering hub. The component business is steadily emerging uh as another major growth 17:57 17 minutes, 57 seconds engine for the company uh supported by specialized capabilities that we have uh strong supply chain inte uh integration 18:06 18 minutes, 6 seconds and as I mentioned before uh acceptance to the the type of solutions that we bring uh and so this is an indication of 18:16 18 minutes, 16 seconds rising uh brand perception of the company. We believe the opportunity landscape uh remains extremely large uh 18:25 18 minutes, 25 seconds you know in in components in both domestic uh and international markets and the company is well positioned to scale this business meaningfully uh over 18:33 18 minutes, 33 seconds the coming years. Uh we'll now shift to uh ICE the general area of ICE 18:40 18 minutes, 40 seconds transmissions and we first take up manual transmissions and synchronizers. 18:45 18 minutes, 45 seconds uh our manual transmission and synchronizer business uh has been uh a small yet strong pillar of our business. 18:53 18 minutes, 53 seconds Uh revenue from this vertical nearly doubled during the year on a on a smaller space. Uh during the year 26 we 19:01 19 minutes, 1 second executed increased sales through additional synchronizer opportunities from existing customers uh new business 19:08 19 minutes, 8 seconds wins on on key components on manual transmissions. 19:13 19 minutes, 13 seconds So what's next? Uh we continue to leverage uh our strong application engineering capabilities uh our 19:20 19 minutes, 20 seconds execution uh capacity, high localization, in-house manufacturing capacity and proven track record on quality and 19:29 19 minutes, 29 seconds delivery uh to position the VTDS as a reliable partner for OEMs for their needs of manual transmissions. So we 19:37 19 minutes, 37 seconds have the ability to give uh you know high-tech components uh transmissions built to print or transmissions with our 19:46 19 minutes, 46 seconds proprietary designs. Uh we are engaged on uh a business opportunity with a leading Indian OEM for supply of a full 19:54 19 minutes, 54 seconds manual transmission for uh one of their trucks light medium trucks. uh this uh current uh opportunity is under 20:02 20 minutes, 2 seconds negotiation right now and we are uniquely positioned to address some of the critical concerns that they have in terms of quality and delivery on this 20:11 20 minutes, 11 seconds particular model. So we have been brought in uh uh to fix uh a problem of 20:18 20 minutes, 18 seconds quality and delivery. We are also strongly positioned to win uh another high volume manual transmission. Um and 20:26 20 minutes, 26 seconds this is a significant larger going up to 100,000 a year. Uh and a decision uh on 20:34 20 minutes, 34 seconds the overall outsourcing strategy is awaited from this OEM. We continue to assess opportunities to uh license our 20:44 20 minutes, 44 seconds new generation six-speed manual transmission to OEMs. Uh offering them a unique opportunity to have a fully 20:51 20 minutes, 51 seconds designed and validated latest general manual transmission for SUV pickup truck applications, giving them the right to 20:59 20 minutes, 59 seconds industrialize and utilize the capacities they have invested in. And we believe that this initiative can deliver uh a 21:09 21 minutes, 9 seconds win-win situation for us and the OEM. Uh in short, we are working towards a goal 21:16 21 minutes, 16 seconds of full uh system supply of manual transmission solutions. uh ensuring our readiness on product development, 21:24 21 minutes, 24 seconds design, validation, inhouse capacity and flexibility in the in in in the way we approach the business model uh to industrialize transmission products. 21:34 21 minutes, 34 seconds Uh and now finally on to I think the most one of the most important cornerstones of our business which is uh 21:43 21 minutes, 43 seconds the whole question of the automatic transmission. Now this market in uh in India is growing rapidly 21:50 21 minutes, 50 seconds uh with key drivers including growing SUV uh demands a continued preference uh 21:57 21 minutes, 57 seconds for ice power trains in SUVs, LCVs uh you know in the context of uh pretty 22:06 22 minutes, 6 seconds crazy traffic conditions that we have in Indian metropolitan areas uh and therefore end customer convenience uh 22:14 22 minutes, 14 seconds without sacrifice sacrificing in reliability uh uh in in the automatic transmission solution. The India market continues to 22:23 22 minutes, 23 seconds be served with automatics coming mainly from Japan and some from Korea and Europe and there is negligible local 22:30 22 minutes, 30 seconds content. Uh Indian OEMs continue to demand local solutions to mitigate risk of rupee depreciation, supply chain 22:39 22 minutes, 39 seconds disruptions, geopolitical risks, you know, and and such kind of problems. 22:46 22 minutes, 46 seconds um in a world marked by almost you could say global disorder. 22:52 22 minutes, 52 seconds Um unfortunately Indian OEMs have not been successful in persuading their overseas suppliers to figure out local 23:01 23 minutes, 1 second solutions and therefore that represents a considerable opportunity for this. 23:07 23 minutes, 7 seconds So our team is in advanced discussions for a technology transfer agreement uh with um a leading global OEM and as you 23:17 23 minutes, 17 seconds can imagine uh these negotiations do take time. uh but the idea is to bring 23:24 23 minutes, 24 seconds uh a proven automatic transmission uh to India uh not just for 23:30 23 minutes, 30 seconds manufacturing but to enable eventually deeploization of the key subsystems uh of an automatic 23:39 23 minutes, 39 seconds transmission. Um so we have had many visits uh to our partner and we're in the process of completing 23:48 23 minutes, 48 seconds uh you know due diligence which includes manufacturability and most important of all uh uh overall supply chain uh integrity. 23:58 23 minutes, 58 seconds So the idea is that uh we are looking at this as a long-term uh strategic mission for the Indian ecosystem 24:07 24 minutes, 7 seconds uh such that the next generation of transmissions uh with additional features can be designed and developed uh in India. 24:17 24 minutes, 17 seconds So I think in that sense uh our approach is highly differentiated uh from the one being followed by uh 24:26 24 minutes, 26 seconds Japanese and German and Korean uh multinationals. Um so what what what can we expect here? 24:34 24 minutes, 34 seconds Um so the idea is we we want to conclude the due diligence for high localization uh or significant localization right 24:42 24 minutes, 42 seconds from the start uh of production. Um over the next quarter or so we are 24:50 24 minutes, 50 seconds trying to conclude uh the proof of concept demonstration of the proposed technology uh on one of the 24:59 24 minutes, 59 seconds latest uh successful vehicle platforms uh of our Indian OEM and work is underway in right earnest with that OEM. 25:10 25 minutes, 10 seconds uh we are committed to partner with uh global and local tier one uh tier 2s to us uh to build an ecosystem in India you 25:20 25 minutes, 20 seconds know where a significant proportion of the value chain is localized uh so the mission really our vision on 25:28 25 minutes, 28 seconds this is over the next um 3 to 5 years that's our experience that that's how long it takes for the first generation 25:36 25 minutes, 36 seconds to get assimilated uh but I can assure our investors with the many years of experience that we 25:42 25 minutes, 42 seconds have of having worked with global OEMs, global multinationals. Remember that we were also for 21 long years a JV partner 25:51 25 minutes, 51 seconds of Bwan. Um so we know that uh it takes some extraordinary 25:58 25 minutes, 58 seconds uh drive and initiative uh within India by an Indian company uh to break the uh 26:06 26 minutes, 6 seconds uh strangle hold of what I would call you know the the technology barrier. So 26:13 26 minutes, 13 seconds such that uh the the roots for the de the development and design of such products in India are properly struck. 26:23 26 minutes, 23 seconds So uh and that is the mission that we are on and that that is the point I I wish to emphasize. So to that extent our 26:31 26 minutes, 31 seconds approach is very different uh and and you know it it is distinguished by this the points that I just made. 26:44 26 minutes, 44 seconds So um as we make progress over the next few quarters, our long-term objective is 26:52 26 minutes, 52 seconds clear. It is to evolve through these four verticals into an integrated global drivetrain and 27:00 27 minutes mobility solution provider with strong in-house engineering, localization and advanced manufacturing capabilities. 27:09 27 minutes, 9 seconds And as those of you who have stayed with us these last few years, you know that our vision is to build a very strong 27:18 27 minutes, 18 seconds vibrant uh global brand for this line out of India. 27:25 27 minutes, 25 seconds Importantly, while pursuing these growth investments, we remain firmly committed to financial discipline. This is a very 27:32 27 minutes, 32 seconds uh key foundational element of our strategy uh and prudent capital allocation. And even after factoring in 27:40 27 minutes, 40 seconds future expansion plans and increased working capital requirements associated with growth, the company expects to maintain a healthy net cash position. 27:52 27 minutes, 52 seconds So then overall as I conclude what is to be expected as we look to 27 and beyond 28:01 28 minutes, 1 second and we firmly believe that we are now entering uh the next orbit of growth. 28:06 28 minutes, 6 seconds Our business fundamentals have strengthened significantly through uh you know the scale up in transfer case 28:12 28 minutes, 12 seconds volumes, rapid expansion in in exports, uh continuing maturity uh in our EV uh business and technologies. 28:24 28 minutes, 24 seconds Uh increasing engagement with global customers and OEMs. 28:30 28 minutes, 30 seconds uh we have completed 5 years of uh the association with Toyota Sufo uh with 28:38 28 minutes, 38 seconds whose help we are reaching out uh into the universe of Japanese uh OEMs. 28:45 28 minutes, 45 seconds Um and finally, you know, the overall strengthening of our technology-led uh 28:54 28 minutes, 54 seconds product portfolio. And we continue to pursue opportunities across automatic transmissions, 29:00 29 minutes uh hybrid transmission technologies, global transfer case and manual transmission solutions and overall 29:08 29 minutes, 8 seconds export oriented u you know solutions that we bring to customers overseas. 29:14 29 minutes, 14 seconds Most importantly, our approach remains unchanged. Building capacities and capabilities ahead of the curve, maintaining strong financial discipline 29:23 29 minutes, 23 seconds uh and creating a globally competitive mobility systems company supported by diversified products, customers uh 29:31 29 minutes, 31 seconds technologies and geographies. So but reconciling all of this uh diversification with an inherent sense 29:40 29 minutes, 40 seconds of cohesion so that the aspect of synergy across our verticals is not is 29:47 29 minutes, 47 seconds not lost. So with that let me conclude my opening remarks. I will now hand over the proceedings to my colleague and our 29:54 29 minutes, 54 seconds CFO Sud Machar. Thank you very much. Thank you sir. 30:03 30 minutes, 3 seconds Uh good afternoon to everyone on the call. Uh before presenting the financial number of the Q4 and FY26, 30:12 30 minutes, 12 seconds I would like to highlight a few key points. 30:17 30 minutes, 17 seconds I'm pleased to share that FY26 has been a landmark year for the company as we 30:23 30 minutes, 23 seconds surpass our historical performance and delivered the highest ever revenue in our history. This strong performance was 30:32 30 minutes, 32 seconds driven by sustained volume momentum across both uh key segments, transfer cases and components. Each continuing to 30:40 30 minutes, 40 seconds demonstrate robust traction throughout the year. 30:46 30 minutes, 46 seconds The transfer case business benefited from healthy uptake from key OEM customers supported by strong demand 30:54 30 minutes, 54 seconds momentum and improved operational execution. 30:59 30 minutes, 59 seconds Meanwhile, our our predominantly export-driven components segment continued a strong growth trajectory, 31:07 31 minutes, 7 seconds demonstrating resilience despite ongoing global uncertainties with demand for our high precision components remaining healthy. 31:18 31 minutes, 18 seconds Alongside growth, we remained sharply focused on operational discipline across the organization. 31:26 31 minutes, 26 seconds During the year, we continued to drive cost optimization initiatives, include uh productivity levels, strengthen 31:35 31 minutes, 35 seconds inventory management practices, and maintain prudent capital allocation. All of which uh supported healthy and 31:43 31 minutes, 43 seconds sustainable profitability, improved capacity utilization and operating leverage also contributed 31:49 31 minutes, 49 seconds positively to margins and overall efficiency. 31:54 31 minutes, 54 seconds Our balance sheet continues to remain strong and debt free providing us with significant financial flexibility to 32:01 32 minutes, 1 second support future growth initiatives while maintaining disciplined capital deployment reflecting the company's strong 32:09 32 minutes, 9 seconds financial performance and confidence in the business outlook. The board of directors has recommended a final 32:16 32 minutes, 16 seconds dividend of rupees 3.27 27 per equity share of rupees 5 each for FY26 subject to shareholders approval. 32:29 32 minutes, 29 seconds Now speaking of the financial performance of FY26 as I mentioned earlier we delivered our highest ever 32:36 32 minutes, 36 seconds revenue of rupees 375 crores registering a strong 56% yearon-year growth from rupees 240 crores in acquire 25. 32:48 32 minutes, 48 seconds This growth was led by sustained momentum in transfer cases, volumes and continued robots performance in component business. 32:57 32 minutes, 57 seconds So from revenue mix uh mix the transfer case segment delivered strong growth of 66% yearonear compared to FY25. 33:07 33 minutes, 7 seconds Uh we have continued to witness healthy volume traction throughout the financial year primarily driven by a higher uptake 33:15 33 minutes, 15 seconds from our key OEM customer and we remain confident that this momentum will sustain in the coming quarters. 33:24 33 minutes, 24 seconds The EV transmission segment increased by 10% in SY 26 compared to FY25. 33:30 33 minutes, 30 seconds The segment has remained largely rangebound uh due to subdued EV volumes in the market. However, we expect a ramp 33:39 33 minutes, 39 seconds up in the coming quarter supported by strong customer optic and deeper integration across newer uh EV platforms. 33:49 33 minutes, 49 seconds The component segment continued its robust performance growing 124% in FY26 compared to FY25. 33:58 33 minutes, 58 seconds This exceptional growth was largely exportled despite global market uncertainties. We expect this momentum to sustain in coming quarters as well. 34:09 34 minutes, 9 seconds Exports continue to steadily increase its share in the overall uh revenue mix. 34:14 34 minutes, 14 seconds In FY26, export contributed around 18% of our total revenue and we are 34:20 34 minutes, 20 seconds progressing well toward our medium-term target of 20 to 25. 34:28 34 minutes, 28 seconds Gross margins for FY26 stood at 63.5% mainly in line with FY25. 34:35 34 minutes, 35 seconds The big for 26 came in at rupees 92 crores resisting a healthy 58% year-on-year growth from rupees 58 34:44 34 minutes, 44 seconds crores in FY25. The improvement was largely supported by a better product mix and operating leverage benefits 34:52 34 minutes, 52 seconds arising from higher volumes which resulted in improved absorption of fixed cost. I beta margin for the period stood at 24.6%. 35:02 35 minutes, 2 seconds Profit after tax for employ 26 stood at rupees 46.9 crores reflecting a strong 35:09 35 minutes, 9 seconds 92% yearon growth from rupees 24.4 four per in acquired 25 driven by enhanced 35:17 35 minutes, 17 seconds operating efficiency and larger volumes in major segments leading to further standing of overall popularity pack margin stood at 12.5%. 35:28 35 minutes, 28 seconds So coming to the to the quarterly numbers in Q4 of FI26 we have surpassed our previous best performance we which 35:37 35 minutes, 37 seconds we achieved in Q3 of FI26 which itself was a record quarter for the company. We delivered our highest 35:45 35 minutes, 45 seconds ever quarterly revenue of rupes 113.8 8 crores registering a strong 78% year-on-year growth formed rupees 64.1 35:54 35 minutes, 54 seconds crores in Q4 of SI 25 and a strong 18% sequential growth over Q3 of SI 26 36:03 36 minutes, 3 seconds for the quarter stood at 27.8 8 crores representing a 92% increase formed with this 14.5 crores in Q4 of FY25 and a 36:13 36 minutes, 13 seconds strong 19% sequential growth over Q3 of S526. 36:19 36 minutes, 19 seconds The beta margin for the quarter was healthy at 24.5%. 36:25 36 minutes, 25 seconds uh profit after tax for Q4 S52 came in at rupes 15.5 crores marking a 189% 36:32 36 minutes, 32 seconds year-on-year increase from rupees 5.4 crores in Q4 of S525 and a strong 32% 36:40 36 minutes, 40 seconds sequential rise from rupees 11.8 cr in Q3 of SI26 margin for the quarter stood at 13.6%. 36:50 36 minutes, 50 seconds So this consistency in performance reflect the strength of our product portfolio, the resonance of our customer relationships and the discipline 36:58 36 minutes, 58 seconds execution by our teams across functions uh with the visibility we currently have and the opportunities in the pipeline. 37:07 37 minutes, 7 seconds We expect this positive momentum to continue in the coming quarters as well. 37:12 37 minutes, 12 seconds So that's it for my right. Now I would like to open the floor for questions and answer. Thank you. 37:21 37 minutes, 21 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 37:30 37 minutes, 30 seconds If you wish to remove yourself from the question queue, you may press star and two. 37:35 37 minutes, 35 seconds Participants are requested to use handsets while asking a question. 37:40 37 minutes, 40 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 37:48 37 minutes, 48 seconds Our first question comes from the line of Karan Gupta with ACM IIL. Please go ahead. 37:58 37 minutes, 58 seconds Yeah. Hi. Uh so uh my question is on the volume. If you can share your volume to 38:05 38 minutes, 5 seconds interrupt current, you're not quite audible. Could you please use your phone on the handset mode in case if it's not answer? 38:14 38 minutes, 14 seconds Uh now it's audible. Yes, much better. Please. Yeah. Sure. 38:20 38 minutes, 20 seconds So uh my question is uh regarding the volume side. Uh so if you can share the volume numbers of transfer case 38:26 38 minutes, 26 seconds um or other segments your gear driver components volumes if you can share that and what's the realization growth? 38:38 38 minutes, 38 seconds Yeah. Uh so I think uh and here I'm kind of uh speaking from memory 38:46 38 minutes, 46 seconds uh from this year we have accomplished about 50 52,000 52,000 38:54 38 minutes, 54 seconds uh which was up from uh low 30s that we did in FI25. So you can see it's almost 39:02 39 minutes, 2 seconds like 70 80% uh increase in volumes of transfer cases. Um, okay. And EVs it was 39:11 39 minutes, 11 seconds uh much more modest but uh that happened because uh one of my new products that was supposed to launch last year it got 39:20 39 minutes, 20 seconds delayed because of uh delayed uh customer vehicle testing. The uh 39:27 39 minutes, 27 seconds production system approval uh we have already received uh from the customer but the vehicle testing I think uh took 39:35 39 minutes, 35 seconds longer uh than we had uh thought it would. Uh so uh next month or definitely 39:43 39 minutes, 43 seconds by July these new uh this new model will be going into production and we are expecting almost a doubling of the EV 39:51 39 minutes, 51 seconds volumes. Uh so so that is the immediate uh as far as components are concerned I 39:59 39 minutes, 59 seconds think uh you know you can see that the the the export business increased uh from you know almost 10 times. Uh so the 40:08 40 minutes, 8 seconds the volumes again have gone up commenurately. 40:13 40 minutes, 13 seconds Okay. So that that is the sort of short answer to your question. 40:18 40 minutes, 18 seconds Okay. Okay. But just uh want to clarify the numbers again. So 52,000 you said for the transfer case. 40:26 40 minutes, 26 seconds Yeah. 40:27 40 minutes, 27 seconds Yeah. Okay. And uh uh for the E gear E gear drive member not I think it was about 24,000. 40:34 40 minutes, 34 seconds Okay. 24,000. And for uh component volume is something over a million. Five lakh something. 40:42 40 minutes, 42 seconds 2.3 million. Yeah. Uh 7 lakh. Over seven lakh. Over 13. 40:49 40 minutes, 49 seconds Over 13. Okay. 40:52 40 minutes, 52 seconds Okay. And what's the capacity utilization for now for the EV E drive segment? 40:58 40 minutes, 58 seconds Uh we are still I think you said 30% something. 41:02 41 minutes, 2 seconds Yeah, we just we still around 25% capacity utilization. 41:07 41 minutes, 7 seconds 35 25 to 30 25 to 30. Okay. So as you can see uh 41:16 41 minutes, 16 seconds when the if the utilization improves given the current uh financials you can expect certainly much better financial efficiency. 41:27 41 minutes, 27 seconds Okay. And the timeline for the BCP uh the same as per 28. 41:34 41 minutes, 34 seconds Uh yeah uh there are uh uh at least three projects we are working on. uh two 41:41 41 minutes, 41 seconds at one customer and one uh with a second customer in in low modest volumes. Uh if 41:48 41 minutes, 48 seconds uh our program management is successful, we could see the first revenue trickle happening maybe middle to uh second half 41:57 41 minutes, 57 seconds of next year calendar and the big volume coming a year after that. 42:05 42 minutes, 5 seconds Okay. Okay. Sure. Thank you. 42:11 42 minutes, 11 seconds Thank you. The next question comes from the line of Nirva with Equirius Securities. Please go ahead. 42:19 42 minutes, 19 seconds Yeah, thank you for taking my question. 42:22 42 minutes, 22 seconds Uh, so my question was basically on to the Indonesia orders which we have got. 42:27 42 minutes, 27 seconds So that would roughly be around 70,000 kind of a volume. I think previously we had mentioned that this was supposed to be completed in FY27. 42:36 42 minutes, 36 seconds So due to current situation are we seeing some kind of delay here or this is on track for an FI27 completion? It is on track for FI27. 42:45 42 minutes, 45 seconds Okay. So basically here in the next year we may see a very big jump in terms of revenues but post that how do we expect 42:54 42 minutes, 54 seconds to continue that kind of a you know uh revenue uh you know revenue number as such going 43:01 43 minutes, 1 second ahead in FY 2018. what other segments basically are we forcing which can offset that? 43:10 43 minutes, 10 seconds Yeah, excellent question and I'm sure uh others in the audience will also uh 43:17 43 minutes, 17 seconds appreciate this uh very relevant. So uh we are quite conscious of this phenomenon and uh what I want to tell 43:26 43 minutes, 26 seconds you is uh there are three or four uh uh developments which uh are sort of uh 43:34 43 minutes, 34 seconds powering the underlying foundation of our business uh over and above this uh 43:42 43 minutes, 42 seconds you could say windfall of an opportunity that has come uh by way of Indonesia. Uh first is uh we have won uh a new 43:51 43 minutes, 51 seconds four-wheel drive contract uh on the uh uh you know uh Tata Sierra I mean at uh 44:00 44 minutes Tata. Uh the second one is uh there is an uplift on uh the volumes coming from 44:09 44 minutes, 9 seconds the US on a particular Ford application uh at uh one of our uh tier one 44:16 44 minutes, 16 seconds customers there. Uh third, the global pickup truck at Mahindra is going into 44:23 44 minutes, 23 seconds uh production and we have been requested by Mahindra to support their uh overseas facility in South Africa for 44:32 44 minutes, 32 seconds this purpose. So we are expecting some amount of uh uh buoyancy in full uh you 44:40 44 minutes, 40 seconds know transfer case uh uh exports to come about and the current uh uh EV business 44:48 44 minutes, 48 seconds that we have uh we expect uh uh better utilization uh because we will now have uh four different designs in production. 44:58 44 minutes, 58 seconds Uh we also continue to push the envelope uh in the three-wheeler segment where prototypes have been submitted uh and we 45:06 45 minutes, 6 seconds are working with at least two uh customers uh uh there. Uh and finally uh uh I 45:16 45 minutes, 16 seconds alluded to uh a manual transmission opportunity uh on a on a truck program. 45:23 45 minutes, 23 seconds Uh that will also start and it will lead it will the the the initial volumes are quite modest but once established the 45:31 45 minutes, 31 seconds line is being designed in a flexible way uh to handle two models. one is a low volume model and the other one is high 45:39 45 minutes, 39 seconds volume and the high volume could be uh anywhere from 60,000 to 100,000. So these are the uh uh opportunities that 45:48 45 minutes, 48 seconds we are working on. Uh and let me just point out that the winning of this award 45:56 45 minutes, 56 seconds in Indonesia while it may at first glance appear like a flash in the pan uh 46:04 46 minutes, 4 seconds we must not forget the what effect it is going to have in the ASEAN region. Uh because this is being backed by the Indonesian government. 46:14 46 minutes, 14 seconds uh it has been won fair and square in a competitive tender that included at 46:21 46 minutes, 21 seconds least three or four major Japanese OM and I might add two very large Chinese companies. So our customers from India 46:30 46 minutes, 30 seconds have comprehensively and decisively uh beaten this competition to win this contract and my sense and our sense is 46:39 46 minutes, 39 seconds that they are not going to rest on their laurels after this. Uh both customers have actually uh pretty sophisticated 46:48 46 minutes, 48 seconds offerings in pickup trucks uh uh at prices uh that are quite unimaginably 46:56 46 minutes, 56 seconds more competitive than what the Japanese can offer. So uh I think it is reasonable if not in the immediate wake 47:04 47 minutes, 4 seconds of the following year that in time to come in the next 3 to 5 years we will definitely see uh an expansion of Tata 47:13 47 minutes, 13 seconds and Mahindra in the 10 countries uh that constitute the AEAN region. uh this will 47:19 47 minutes, 19 seconds also be not lost uh uh sight of in other markets like central Asia, North Africa, 47:26 47 minutes, 26 seconds subsaharan Africa and Latin America uh because they have socioeconomic conditions that sort of correspond to 47:36 47 minutes, 36 seconds what we have in Afghan. So uh this may very well turn out to be the proverbial tip of the iceberg. Right? So this is 47:45 47 minutes, 45 seconds how we are looking at uh this development. But to come back to the n of your question, what is the strategy 47:52 47 minutes, 52 seconds for FI28? It is to convert these other three or four opportunities that we are working on uh into revenue streams. Uh 48:01 48 minutes, 1 second and fortunately the customers want us to do that. There is tremendous uh pressure on our product development and product 48:08 48 minutes, 8 seconds management teams uh to deliver. So uh that is uh how we look at it. Got it. 48:15 48 minutes, 15 seconds Got it. Sure. Also finally the last question is on we have you know indicated the US investments of around 48:21 48 minutes, 21 seconds say three crup. So basically would this be only on to the component end of business or will it also include the transfer cases and other proprietary 48:30 48 minutes, 30 seconds board which we are doing? Another very good question and thank you so much for asking it because I think in the heat 48:37 48 minutes, 37 seconds heat of the moment I perhaps did not uh adequately amplify when I uh alluded to 48:44 48 minutes, 44 seconds this in my opening remarks. Uh see the US presence is like the the beach head 48:51 48 minutes, 51 seconds if I if I can use an Americanism. It's our initial beach head. uh and two of 48:58 48 minutes, 58 seconds our most experienced people uh will go on the ground uh uh by July August uh in 49:06 49 minutes, 6 seconds the US. Uh they have uh two or three objectives they are working on. a better understanding of the market on the 49:15 49 minutes, 15 seconds ground. Uh a better way to figure out what manufacturing systems and how to go about uh uh you know putting that and 49:24 49 minutes, 24 seconds also a deeper engagement uh to facilitate program management uh of awards that we have won and which are 49:32 49 minutes, 32 seconds development uh under development right now. So uh that is the purpose of of 49:39 49 minutes, 39 seconds this this three floors is just an initial setting up of offices infrastructure maybe a small warehouse 49:46 49 minutes, 46 seconds to to uh keep you know exhibits and things. Uh and in the first year we will be participating in expose uh uh and 49:56 49 minutes, 56 seconds spend you know sort of deepening uh our engagement with customers. Um and I think through uh the platform of these 50:05 50 minutes, 5 seconds uh earnings calls hopefully we'll be able to keep uh our uh investors updated on the progress we make uh in the US. 50:15 50 minutes, 15 seconds Our initial uh analysis has shown that uh the US still is not a very 50:22 50 minutes, 22 seconds competitive place. If you have to get on the ground and succeed uh we have to look at it in an integrated way. So the 50:30 50 minutes, 30 seconds market, the type of products, the manufacturing facility and the supply chain from within the US and from without that that means with support 50:38 50 minutes, 38 seconds from India and we we need to look at this holistically and comprehensively to find the right value uh for that 50:47 50 minutes, 47 seconds business model in the US and that is what this team will be doing on the ground. 50:52 50 minutes, 52 seconds All right. Also just one follow up on this that within this period of developing the US business if we get anything in some sort of an inorganic 51:01 51 minutes, 1 second opportunity would we be keen on that or we would organically grow this business. 51:06 51 minutes, 6 seconds Uh right now our preference is to uh grow given you know the size of the business and the way we work our 51:14 51 minutes, 14 seconds preference uh is to sort of do this organically uh and uh because I think the uh 51:24 51 minutes, 24 seconds culturally we you know small mediumsiz Indian companies can underestimate the energy that needs to go into uh cultural 51:33 51 minutes, 33 seconds adaptation and We don't want to fritter our energy uh into those sorts of 51:40 51 minutes, 40 seconds things. Uh our energy is finite uh and we need to prioritize it uh to deliver 51:47 51 minutes, 47 seconds maximum business uh impact uh for the company and for our shareholders. 51:53 51 minutes, 53 seconds Fair, fair enough. Fair enough. That's all from my side. Thank you. 51:58 51 minutes, 58 seconds Thank you. The next question comes from the line of J Praash with Common Capital. Please go ahead. 52:06 52 minutes, 6 seconds Hi. Hi sir. So this my question is regarding this Indonesian um uh orders right which Tata Motors and Mahindra 52:14 52 minutes, 14 seconds received last uh quarter but I I think there was a news that the Indonesian government is keeping them on hold. So 52:22 52 minutes, 22 seconds but I think in just in the previous question you talked about Indonesia. So if you can give a bit of color on that that will be helpful. 52:29 52 minutes, 29 seconds Yeah. Yeah. Yeah. So there was a certain amount of media narrative that was being pushed. Uh but uh I think it was uh how 52:38 52 minutes, 38 seconds should I say a little frivolous and somebody thought that they could create this narrative and uh uh you know create 52:47 52 minutes, 47 seconds some impediment uh for for the uh Indian OEMs. But I think what has been overlooked in all of this is that our 52:56 52 minutes, 56 seconds companies have been um it has been a very above the board kind of process. 53:01 53 minutes, 1 second There was a tender put out by the U by the Indonesian government. Uh we bid fair and square uh and we beat them uh 53:09 53 minutes, 9 seconds uh comprehensively. The other factor which was critical in this uh which I think all this media hype overlooked was 53:18 53 minutes, 18 seconds the speed of execution. The Indonesian government wanted this executed before March 31st, 2027. And the reality is 53:27 53 minutes, 27 seconds that the Japanese and the Chinese were not ready for it. It's only the Indian companies that have come up and walked up to the line uh and said they could do 53:36 53 minutes, 36 seconds it. The reason this order has been split equally between the two uh Indian companies is because uh no one company 53:45 53 minutes, 45 seconds has the capacity to deliver 70,000. So it has been split between data and mind and as luck would have it I think we are 53:52 53 minutes, 52 seconds the transfer case supplier in both cases. So it's like a little bit of how how how they say in American Americanism 54:00 54 minutes it's a double whammy for us. Uh right but a positive double whammy. Uh 54:07 54 minutes, 7 seconds um but but to come back to your question no this is a this is serious stuff. uh 54:15 54 minutes, 15 seconds uh remember that uh uh the the the Japanese uh propaganda against uh uh 54:22 54 minutes, 22 seconds India in in this regard because you know the Japanese are invested in Indonesia uh is not fair because the the Japanese 54:31 54 minutes, 31 seconds influenced uh the signing of the Indo-Asan free trade agreement. they have taken advantage of it to expand 54:38 54 minutes, 38 seconds their markets into India and now India is just making use of the same bridge as it were uh to go into a so now you 54:46 54 minutes, 46 seconds really can't complain uh that India is landing its products uh uh you know competitively you see my point what I'm trying to say 54:55 54 minutes, 55 seconds no I I totally understand that so basically you're saying it was just a frivolous comments and uh you the our 55:03 55 minutes, 3 seconds companies have got the order and you supplying to them. 55:06 55 minutes, 6 seconds Absolutely. I have just given a little bit of the background and context to substantiate uh my remarks. 55:15 55 minutes, 15 seconds Okay. Great. Great. That's that's really helpful, sir. Uh thank you. I'll come back in. Sure. 55:23 55 minutes, 23 seconds Thank you. The next question comes from the line of Amit Damea with sentrum broken. Please go ahead. 55:30 55 minutes, 30 seconds Yeah. Uh thank you. So my uh question is on the AED side. So as for my understanding uh we were supposed to be 55:36 55 minutes, 36 seconds onboarded across all platforms from S2 X5 to D6 onwards. So even right now we are currently at 25% utilization. So are 55:46 55 minutes, 46 seconds there any challenges that we are facing on the EV side and what would be our target utilization for FR27? 55:53 55 minutes, 53 seconds Yeah. So as I said we are currently on uh up to now we have worked on uh um the 56:02 56 minutes, 2 seconds uh Thiago uh Tigor and the lower trim level of the punch. The higher trim 56:08 56 minutes, 8 seconds level of the punch had uh this new transmission this 90 to 120 kow which was going on the higher trim level of 56:17 56 minutes, 17 seconds punch on the Nexon and the fur and also on the front axle of the Harrier. Okay. 56:24 56 minutes, 24 seconds Now it is this uh design 90 to 120 kilowatt which goes across these four four platforms that was uh in valid 56:33 56 minutes, 33 seconds testing uh at Tata which took which took uh longer than expected. Uh but we have successfully finished all our testing. 56:43 56 minutes, 43 seconds Uh we got production part uh you know approval. Um so it's reasonable to say 56:50 56 minutes, 50 seconds that in the uh in FI27 we will see the volumes coming uh you know from these 56:56 56 minutes, 56 seconds applications. U so this was the original intent uh of the LOI that was given to 57:04 57 minutes, 4 seconds us uh back in uh 21 and it's now coming to uh fruition. But I must say that uh the ED market is extremely competitive. 57:16 57 minutes, 16 seconds Uh we have to remember that um there is Mahindra also in in this and the Mindra 57:24 57 minutes, 24 seconds strategy is different because there's a multinational tier one uh who is the premier supplier there. Uh there's also 57:32 57 minutes, 32 seconds uh NG Motors with the Windsor model. Uh so there are uh you know competitive 57:40 57 minutes, 40 seconds forces out there uh that you know we have to uh contend with. Um our effort 57:48 57 minutes, 48 seconds is to also see how much more of this new market uh we can gain and I can just say 57:54 57 minutes, 54 seconds that we are engaged. Uh in some cases we seem to have uh a rather decisive 58:01 58 minutes, 1 second advantage given our track record. uh in some cases the competition is tougher 58:08 58 minutes, 8 seconds uh but to further derisk the the uh EV business we are now going overseas we're 58:16 58 minutes, 16 seconds looking at uh especially in the US we're looking at opportunities uh we have also appointed a representative in China and 58:25 58 minutes, 25 seconds you might wonder uh you know how is it that an Indian company can compete uh in China uh but our intelligence 58:34 58 minutes, 34 seconds suggests it is to be it's it's a hypothesis right now that the the Chinese EV market is so big that there 58:42 58 minutes, 42 seconds are uh intercies and pockets in the Chinese market where the motor and 58:49 58 minutes, 49 seconds electronics is available but the uh supply chain is looking for a more competitive uh and higher quality uh 58:57 58 minutes, 57 seconds supplier of the mechanical systems especially in low to medium volumes. Of course in China a volume of 40 50,000 is 59:05 59 minutes, 5 seconds also low volume because you know they are already at 1.25 25 million Eisen per month. Uh that's 15 million electric 59:14 59 minutes, 14 seconds cars China makes. Uh which is bigger than the US automotive industry. But in this huge flux uh there are pockets 59:23 59 minutes, 23 seconds where there are opportunities. So we have appointed uh uh a a sort of initial sales representative to try and investigate opportunities. 59:34 59 minutes, 34 seconds uh we continue to do that in Europe and our US office uh our intelligence suggests that uh the pricing and 59:42 59 minutes, 42 seconds therefore the margins coming from the US uh could potentially be the best. Uh so that is our strategy with respect to go sir. Thank you. 59:56 59 minutes, 56 seconds Thank you. The next question comes from the line of Kashish Sha with Sushi Finance. Please go ahead. Hello. Am I audible? 1:00:05 1 hour, 5 seconds Yes, please go ahead. 1:00:07 1 hour, 7 seconds Yeah. So, firstly, congratulations for the great set of numbers. Um, so my question is from a point of uh potential 1:00:16 1 hour, 16 seconds annual revenue. Uh, so last quarter we saw uh something around 1500 plus uh crores of revenue we were saying and now 1:00:25 1 hour, 25 seconds we've revived it to say 2,000 plus crores. So I just wanted to know a couple of things from this angle that uh 1:00:32 1 hour, 32 seconds which segment do we see additional 500 crores of revenue uh and uh by when are we expecting this uh kind of revenues? 1:00:43 1 hour, 43 seconds So I think no no surprises for guessing that the cornerstone of this uh strategy and business plan is really the automatic transmission. 1:00:54 1 hour, 54 seconds uh but we don't want to uh deflect attention uh on the uh attractiveness of 1:01:01 1 hour, 1 minute, 1 second the other segments. Um for example uh if we were to win uh a global 1:01:10 1 hour, 1 minute, 10 seconds four-wheel drive uh business at uh let's say 200,000 which is about 1:01:18 1 hour, 1 minute, 18 seconds 16,000 units a month uh which we have you know it's realistic we we can easily scale up to that level uh that that 1:01:26 1 hour, 1 minute, 26 seconds would represent uh an opportunity of almost uh 800 crores if we were to win a 1:01:34 1 hour, 1 minute, 34 seconds 200,000 and that is not let me tell you uh outside the realm of the possible 1:01:41 1 hour, 1 minute, 41 seconds okay uh there are some impediments right now and so we have we are not uh in the guidance sort of we are giving we are 1:01:49 1 hour, 1 minute, 49 seconds not putting that number of 800 crores we are a little more conservative because there is a certain brand perception 1:01:56 1 hour, 1 minute, 56 seconds about India and Indian companies right now which we have to gradually overcome and so in the present presentation we 1:02:03 1 hour, 2 minutes, 3 seconds put up uh it's also there on our website I think we have called out a potential of around 300 crores 1:02:10 1 hour, 2 minutes, 10 seconds consist on the four-wheel drive um but uh any one of these segments especially 1:02:17 1 hour, 2 minutes, 17 seconds transfer cases in EV EV transmissions uh if we were to get a breakthrough uh the numbers could be you know more than 1:02:26 1 hour, 2 minutes, 26 seconds double of what we had put there okay uh the automatic transmission number is is extremely conservative. 1:02:36 1 hour, 2 minutes, 36 seconds Uh that is about the number we put up there is for about um 80 to 100,000 1:02:44 1 hour, 2 minutes, 44 seconds uh per year. Our uh sense is that given the engagement we have with our companies 1:02:53 1 hour, 2 minutes, 53 seconds uh is that the ambition of Tata and Mahindra far exceeds this. Uh and today 1:03:01 1 hour, 3 minutes, 1 second they don't have a local uh tier one supplying them automatics. Uh our belief is that if our Indian companies have to 1:03:09 1 hour, 3 minutes, 9 seconds be have to become global, they have to be taken serious globally. 1:03:15 1 hour, 3 minutes, 15 seconds uh you cannot build a business model that is globally strong you know by continuously importing. If you look 1:03:24 1 hour, 3 minutes, 24 seconds around the world the big OEMs have their own indigenous uh deeply aligned tier ones 1:03:33 1 hour, 3 minutes, 33 seconds which is what Kata and Minecraft do not have today on transmissions. 1:03:38 1 hour, 3 minutes, 38 seconds Uh we are not the only ones. I'm sure there'll be a clutch of them eventually, but we certainly plan to be one of the 1:03:45 1 hour, 3 minutes, 45 seconds significant deeply aligned tier ones uh to these OEMs. Uh and let me just draw 1:03:53 1 hour, 3 minutes, 53 seconds your attention to the fact that Tara Motors has now they own JLR. They it's in the public domain that they are 1:04:02 1 hour, 4 minutes, 2 seconds actively working with Stellantis that owns the Jeep model. Okay. So imagine 1:04:08 1 hour, 4 minutes, 8 seconds data now has influence on the two of the world's biggest brands Land Rover and 1:04:16 1 hour, 4 minutes, 16 seconds Jeep uh through through the cooperation they have with Sky like this and uh as you 1:04:22 1 hour, 4 minutes, 22 seconds may be aware excuse me Tata has acquired ICO one of the largest truck makers of 1:04:30 1 hour, 4 minutes, 30 seconds Europe and through Eeo uh that has a very very strong presence in South America 1:04:37 1 hour, 4 minutes, 37 seconds uh Tara Motors will will be going truly global truly global on their truck business. ICO has a very very strong uh 1:04:46 1 hour, 4 minutes, 46 seconds light commercial you know any from the 3 ton to the 8 ton uh GVW which is where 1:04:54 1 hour, 4 minutes, 54 seconds our transfer cases play an important role and I can assure you that at the highest levels in param motors you know 1:05:03 1 hour, 5 minutes, 3 seconds and by highest I mean really the highest we are quite uh uh engaged quite earnestly 1:05:11 1 hour, 5 minutes, 11 seconds uh to develop up the line of sight and to give Tata the vision that we are there with them as they go to these 1:05:19 1 hour, 5 minutes, 19 seconds global uh markets. So the um in summary our estimate of a,000 crores actually uh 1:05:28 1 hour, 5 minutes, 28 seconds we could be accused of being too conservative uh by some of you but I would rather uh remain like that. 1:05:40 1 hour, 5 minutes, 40 seconds Great sir. Great. I got it. Uh, all right. Thank you. for how our thinking goes. 1:05:48 1 hour, 5 minutes, 48 seconds Yes, sir. Got it. Got it. 1:05:51 1 hour, 5 minutes, 51 seconds Uh, yes. So, all the best sir for the future. Thank you. 1:05:58 1 hour, 5 minutes, 58 seconds Thank you, ladies and gentlemen. Due to time constraints, we would take that as the last question for today. I would now like to hand the conference over to the management for their closing remarks. 1:06:09 1 hour, 6 minutes, 9 seconds Um so I'm I'm particularly pleased and uh you know gratified that uh we have 1:06:17 1 hour, 6 minutes, 17 seconds been uh to some extent been able to live up to the promise that was given to our investors when we did the IPO. Uh I want 1:06:25 1 hour, 6 minutes, 25 seconds to assure you that uh you know not a week goes by or not a month goes by without us uh you know thinking about 1:06:34 1 hour, 6 minutes, 34 seconds where we are what we are doing and doing everything we can to live up to uh you know the promise we gave you uh and for 1:06:43 1 hour, 6 minutes, 43 seconds all the trust and confidence you have put in in the company in the in the management team uh and in me. So I'm 1:06:51 1 hour, 6 minutes, 51 seconds very thankful for that and I hope this uh year has given you some confidence 1:06:59 1 hour, 6 minutes, 59 seconds that this that this team will now going forward deliver to your expectations. Thank you very much. 1:07:06 1 hour, 7 minutes, 6 seconds Thank you sir. Ladies and gentlemen, on behalf of Centrum Broking Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.