Endurance Technologies Limited — Q1 FY26

Endurance Technologies Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bN3j6h2a3oo Published: 9 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Endurance Technology Q1 FI26 earnings conference call hosted by 0:10 10 seconds Access Capital Limited. As a reminder, all participant lines will be in the listenon 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 0:26 26 seconds operator by pressing star then zero on a touchstone phone. Please note that this call is being recorded. With this, I now 0:34 34 seconds hand the conference over to Mr. Nishid Jalan. Thank you and over to you, sir. 0:39 39 seconds Thank you so much. Uh good morning everyone. Welcome to P1 FI26 post conference call of endurance 0:46 46 seconds technologies. Uh we are pleased to host uh the management team of endurance. 0:51 51 seconds Today uh we have with us Mr. Anurang Jan managing director, Mr. Masimo Venuti, director and CEO Endurance Overseas, Mr. 1:01 1 minute, 1 second Rajendra Abhang, director and COO, Mr. 1:04 1 minute, 4 seconds Raja Gopal Sastri, group CFO and Mr. Raj Mundra, treasurer and investor relations. I'll now hand over the call 1:11 1 minute, 11 seconds to Mr. And for his opening remarks uh post which we can move to the Q&A. Over to you Mr. Jan. Thank you. 1:20 1 minute, 20 seconds Good morning uh to all. 1:23 1 minute, 23 seconds As we conclude quarter 1 of FI26, India's economic landscape reflects a steady foundation amid evolving global dynamics. 1:34 1 minute, 34 seconds As per latest government estimates, the Indian economy achieved a GDP growth of 6.5% in FI25. 1:42 1 minute, 42 seconds CI CI and SNP have maintained a similar guidance in FI26. 1:49 1 minute, 49 seconds Businesses worldwide are facing uncertainties with regard to trade barriers, rare earth magnet supplies, inflation, and 1:58 1 minute, 58 seconds end user demand. Very recently, challenges faced included the pandemic, wars, chip shortages, and energy price hikes. 2:09 2 minutes, 9 seconds Individual businesses like ours cannot change the course of these events. We instead focus on building strength and diversity in our own business. 2:20 2 minutes, 20 seconds At present, we serve multiple OEMs across India and Europe. Our products go into ice and electric vehicles. In 2:28 2 minutes, 28 seconds India, we are strong in two-heer and three-wheeler end use and are focused on growing our presence in the four-wheeler segment, which is already our area of 2:37 2 minutes, 37 seconds strength in Europe. We are also adding new products to our portfolio. 2:43 2 minutes, 43 seconds In the automotive sector as per CM two-wheeler sales reached 5.81 billion units in quarter 1 FI26 down 1.6% 2:53 2 minutes, 53 seconds yearonear with motorcycles at 1.8% deg growth and scooters at8% growth. 3:01 3 minutes, 1 second Passenger vehicle sales increased by8% to 1.22 million units while three-wheeler sales rose 10.4% to.26 3:10 3 minutes, 10 seconds million units. Endurance in its standalone financials for quarter 1 FI26 saw a year-on-year growth of 10.1%. 3:20 3 minutes, 20 seconds In a European Union, new car sales saw year-on-year drop of 1.8% in quarter 1 FI26 3:27 3 minutes, 27 seconds while our endurance Europe total income growth was significantly higher at 28.5%. 3:35 3 minutes, 35 seconds If we also remove the impact of the stephila acquisition, our top line in Europe grew by6%. 3:44 3 minutes, 44 seconds In quarter 1 FI26 industry volumes, there was a 15.9% share of battery 3:50 3 minutes, 50 seconds electric vehicles, 9.2% for plug-in hybrids, and 34.2% for hybrids in Europe. 3:59 3 minutes, 59 seconds On the strategic growth front, we are pleased to share key updates. As most of you are aware, the Ministry of Road 4:06 4 minutes, 6 seconds Transport and Highways has proposed new safety requirements mandating 100% use of ABS for greater than 50 CC ice two 4:15 4 minutes, 15 seconds wheelers and all two-wheeler EVs greater than 4 kilowatt motor power. 4:22 4 minutes, 22 seconds This as of now is made effective from January 2026. 4:28 4 minutes, 28 seconds As you're aware, Endurance had has had embarked upon the ABS journey and had rolled out its first ABS in September 4:36 4 minutes, 36 seconds 2021 by MNC players. We have we have 4:45 4 minutes, 45 seconds installed capacity of 640,000 units both for single and dual channel ABS. 4:50 4 minutes, 50 seconds A single channel ABS has been on the road since 2021 and a dual channel ABS final samples have been sent to Royal 4:58 4 minutes, 58 seconds Enfield and Bajage and we and we expect SOP to start in the next month. 5:05 5 minutes, 5 seconds The new safety requirements are expected to increase the ABS requirement in India five-fold. Higher ABS use would also lead to higher disc brake penetration. 5:16 5 minutes, 16 seconds Endurance is in touch with its OEM customers to meet the OEM's deadlines for higher quantum of ABS requirements. 5:23 5 minutes, 23 seconds This would involve expanding our ABS setup in Waluch which process has already started and will complete by March 2026. 5:33 5 minutes, 33 seconds We are planning set setup of a new plant for disc brake assembly including for master cylinder, caliper, brake disc and 5:40 5 minutes, 40 seconds brake hoses in Chennai where we already have a land bank. This plant will cater to the south Indian OEM clients 5:48 5 minutes, 48 seconds including TBS, Royal Enfield and Yamaha India amongst other OEMs. 5:54 5 minutes, 54 seconds I'm pleased to highlight significant progress also at our Orex Shendra facility. We have successfully commenced shipments to a leading European OEM for 6:03 6 minutes, 3 seconds preop builds completing the journey from customer LOI to facility installation in a record time of 4 months. We we have 6:12 6 minutes, 12 seconds also supplied initial samples for the electric vehicle motor housings for Mahindra's 6E and9 platform through 6:18 6 minutes, 18 seconds Valium within a record 10E lead time achieving first time right parts to support the localization drive. The Oric 6:27 6 minutes, 27 seconds Shendra plant is a green building die casting facility and actively supports the ESG goals with sustainable 6:34 6 minutes, 34 seconds manufacturing practices. Die casting press machines ranging from 1100 ton to 2500 ton are planned to align with 6:42 6 minutes, 42 seconds market trends towards higher tonnage and lightweighting in electric vehicles and advanced automotive components. 6:50 6 minutes, 50 seconds The SOP is now planned in quarter 4 of this financial year. 6:56 6 minutes, 56 seconds I'm pleased to inform you that the SOP at a two-heer alloy wheel plant in Oric Bitkin will start in week four of this 7:03 7 minutes, 3 seconds month. The plant has an installed capacity of 3.6 million wheels peranom and bulk of this capacity has been 7:11 7 minutes, 11 seconds booked with orders from OEM plants at a battery pack manufacturing facility near Pune. Civil work and statutory 7:20 7 minutes, 20 seconds consents are in place. Machinery has been ordered and we will install and will be installed at our plant in early next quarter. 7:28 7 minutes, 28 seconds We had mentioned that we have received an LOI from a leading two-wheeler OEM for a peak business value of rupees 300 7:36 7 minutes, 36 seconds kes peranom. 3D validation and simulations have been completed in quick time. Rotos will be submitted in this 7:44 7 minutes, 44 seconds quarter which is in line with our planned SOP in January 2026. 7:50 7 minutes, 50 seconds In quarter 1 of FI26, we accelerated the purchase of the balanced 38.5% stake in Maxwell. We are now 100% owners of this 8:00 8 minutes business and have strong plans to make it the cornerstone of our electronics and energy business. 8:06 8 minutes, 6 seconds With good acceptance of reconfigured models of electric two-wheelers for our key OEM clients, Maxwell has witnessed a 8:15 8 minutes, 15 seconds healthy uptick in sale of battery management systems. with our RD and innovation we have been able to improve 8:23 8 minutes, 23 seconds we we have been able to provide optimized products for each of their offerings. 8:29 8 minutes, 29 seconds Apart from scooters we also have orders for battery management system usage in motorcycles, three-wheelers, tractors 8:36 8 minutes, 36 seconds and have recently secured an an order for airport cargo handling electric buggies where BMS supply will begin in November 2025. 8:48 8 minutes, 48 seconds The strategic transition also paves the way for future high voltage platforms for four-wheelers and ebuses. 8:56 8 minutes, 56 seconds We have won cumulative orders to the extent of rupees 156 kes peranom at Maxwell which will reach peak in quarter 1 of FI27. 9:06 9 minutes, 6 seconds Maxwell is also pursuing leads now of rupees 150 ks per anomaly. 9:13 9 minutes, 13 seconds With increased business both in BMS and for future ABS electronic control unit boards, we would need to add capacity at 9:21 9 minutes, 21 seconds our surface mounted technology lines in Chhatrapaji Sambaji Nagar. We have recently installed additional 9:28 9 minutes, 28 seconds end-of-the-line testing lines and in due course two new high-speed surface mounted technology lines will also be 9:35 9 minutes, 35 seconds set up to cater to this increased demand. 9:40 9 minutes, 40 seconds Our new generation suspension R&D center at Waluch for two, three and four-wheeler applications is fully operational since July 25, marking a 9:48 9 minutes, 48 seconds significant milestone in our innovation journey. This state-of-the-art facility helps us to co-create advanced 9:55 9 minutes, 55 seconds suspension solutions with OEMs, further solidifying our leadership in two-heer and three-wheeler suspensions. 10:04 10 minutes, 4 seconds Also, the new R&D cent's four-wheeler testing and validation capabilities along with our expanded R&D team and a 10:12 10 minutes, 12 seconds four-wheeler suspension technical assistance agreement with the leading Korean entity will enable us to enter and grow in the four-wheeler suspension 10:20 10 minutes, 20 seconds market. We are actively pursuing new business prospects with multiple OEMs. 10:27 10 minutes, 27 seconds Endurance is far above uh Endurance is by far the market leader for inverted front forks. Over the years, this 10:34 10 minutes, 34 seconds business has grown with demand from various Bajage and KTM models. In January, we have begun supplies to TVS for the inverted front fork requirement. 10:43 10 minutes, 43 seconds We have orders from Heromoto COP and the leading Chinese OEM which SOPs will start in this financial year. The KTM 10:53 10 minutes, 53 seconds export uptake has been lower than the earlier years. Now with Bajage in full control over the global KTM operations, 11:00 11 minutes we expect demand to increase in the next quarters. 11:05 11 minutes, 5 seconds Now aluminium forging products are used as components namely axle clamps for inverted front forks. They also offered 11:13 11 minutes, 13 seconds to third party two-wheeler and four-wheeler OEM clients. Our supplies to Jaguar Land Rover are expected to begin in January 2026. 11:22 11 minutes, 22 seconds We have we now have orders also from Royal Enfield and Hero Motorc and multiple RFQS are being addressed from 11:29 11 minutes, 29 seconds Indian and international OEMs. This is a huge focus area of growth for us. 11:35 11 minutes, 35 seconds Increased demand would require setting up of more aluminium forging presses. We have ordered our fifth press now which we would install next year in a new 11:44 11 minutes, 44 seconds aluminium forging plant at Vaduch. Our existing aluminium forging setup will also be moved to this new plant where the similar work is on. 11:54 11 minutes, 54 seconds We have begun SOP in May 25 for the first Heromoto Cough clutch which peak requirement will 12:02 12 minutes, 2 seconds reach 100k clutch assemblies per month which we hope to do in quarter 4 of this financial year. In September next month, 12:09 12 minutes, 9 seconds we will become we will be we will begin SOP also for the first assist and slip APC clutches to Royal Enfield and Bajage 12:16 12 minutes, 16 seconds Auto. This introduces our Italian company Adlas technology to the Indian market for the first time. We also 12:24 12 minutes, 24 seconds setting up a new R&D facility for ABS and two and four brakes at our second brakes plant at Waluch. This will have 12:32 12 minutes, 32 seconds advanced test rigs focusing on higherend two-wheeler brakes. ABS testing including electronic tests as well as four-wheeler brake tests. 12:42 12 minutes, 42 seconds We have also secured our first order for the four-wheeler drum brakes from Tata Motors. This is the start of a journey where where we would require and deploy 12:51 12 minutes, 51 seconds technology for advanced four-wheeler braking systems. Our aluminium casting plant at Wam has won the best supplier 13:00 13 minutes award for excellence in delivery from from from Ather energy for the first time right products and quick ramp 13:09 13 minutes, 9 seconds up. This is another testimony to our unwavering commitment to high levels of achievement in QCDDM. 13:16 13 minutes, 16 seconds I'd mentioned to you about our first order in the four-wheeler passenger vehicle drive shaft. 13:21 13 minutes, 21 seconds We have begun on vehicle testing at our captive proving ground in Chhatrapi Sambaji Nagar. Our testing facilities cater not only to our current needs but 13:30 13 minutes, 30 seconds also act as a pathway to reach our aspirations in new product segments. 13:36 13 minutes, 36 seconds As informed in the previous call, we completed the acquisition of the 60% stake in the Stephle entities in Germany 13:43 13 minutes, 43 seconds in the beginning of quarter 1. Stephle has an annual turnover of approximately 80 million euro. From April 2025, Steph 13:52 13 minutes, 52 seconds financials are consolidated in the endurance group financials. 13:59 13 minutes, 59 seconds We had announced that under the Maharash PSI 2019 scheme, we received an eligibility certificate of rupees 66 14:07 14 minutes, 7 seconds kores for capex incurred till September 2025. 14:12 14 minutes, 12 seconds Under this 2019 scheme, we would apply now for additional eligibility for capeex up to financial year 2026. 14:20 14 minutes, 20 seconds Based on rupees 66 crores, we've recorded a PSI incentive of rupees 32.91 crores in quarter 1 of this financial year. 14:30 14 minutes, 30 seconds You will recall that we have booked almost all amounts under the rupees 446 cr under the PSI scheme of 2013 and have 14:39 14 minutes, 39 seconds collected cash to the tune of rupees 329 crores. 14:43 14 minutes, 43 seconds Let me now give you a gist of orders won during quarter 1 of FI26. 14:48 14 minutes, 48 seconds Please note that the business value from new orders are without including orders from Bajage Auto. Overall order booking in quarter 1 FI 26 India business was 14:58 14 minutes, 58 seconds rupees 252 crores of which rupees 247 crores is new business. This is 15:05 15 minutes, 5 seconds excluding the rupees 300 kores perm business which we have won for battery packs. 15:12 15 minutes, 12 seconds Key OEM customers in the list of quarter 1 FI26 orders are two-heer OEMs such as Royal Enfield, TBS and Mahindra. and our 15:22 15 minutes, 22 seconds first four-wheeler foundation breaks business one from Tata Motors which opens the door to a new vertical. 15:29 15 minutes, 29 seconds We have won a total of rupees 3,225 crores worth of RFQS in hand. 15:35 15 minutes, 35 seconds Cumulative India business orders for EV segment till date stands at rupes 864 crores and with Bajage auto this figure is now at rupes,7 crores peranom. 15:46 15 minutes, 46 seconds Total orders won since FI21 is rupes 4,950 kores which rups 3,986 15:54 15 minutes, 54 seconds crores is new business. Out of the rups 3,986 crores new business close to rups 1,400 16:01 16 minutes, 1 second crores saw SOP in FI25. A further rups 1150 crores is expected in this year FI26. The rest of the business will be realized in FI27 and FI28. 16:13 16 minutes, 13 seconds In our Europe business, we have booked orders for €2 million euro during quarter 1. These are electric vehicle component orders for our specialtities plastics unit in Duran. 16:27 16 minutes, 27 seconds In continuation of the strategic aftermarket plan started with a global consultancy firm, on ground activations have begun across the top 100 high 16:36 16 minutes, 36 seconds potential districts in India. We also began test marketing new product ranges with a focused go-to market approach. 16:44 16 minutes, 44 seconds For exports, detailed market studies were conducted to have a robust product and channel strategy for high potential countries. 16:52 16 minutes, 52 seconds In addition, we have introduced front pipes in Indonesia and Brazil catering to both Indian and non-Indian 16:59 16 minutes, 59 seconds two-wheeler platforms to further expand our range in these key markets. 17:05 17 minutes, 5 seconds Coming to our financial performance, the information has been uploaded at the stock exchanges last evening along with our presentation explaining the numbers. 17:14 17 minutes, 14 seconds I will however highlight some key numbers. During quarter 1 FI26, the company recorded a standalone total 17:22 17 minutes, 22 seconds income of rupees 2,351 crores, a year-on-year growth of 10.1%. 17:29 17 minutes, 29 seconds This growth comes majorly from content addition as the industry volumes were tipped in this quarter. The major content addition comes in new business 17:37 17 minutes, 37 seconds especially in brakes and suspension segments with OEMs such as TBS, Royal Enfield, Honda which is HMSI, Suzuki and 17:47 17 minutes, 47 seconds Hiro Park. A s a significant portion of the growth in the total income is also from price corrections to compensate increase in commodity prices. 17:57 17 minutes, 57 seconds Unfortunately, the commodity inflation based based total income increase had a 18:04 18 minutes, 4 seconds negative impact on our percentage margins which is evident in the 0.5% drop in the IITA margins. Further, this 18:12 18 minutes, 12 seconds is a period where we are investing in our future and along with the lands, factories and assets, we are also hiring 18:19 18 minutes, 19 seconds the talent required to further our multi-prololong business growth plans. 18:24 18 minutes, 24 seconds The people cost increase reflects our talent acquisition which is a strong positive for us to consolidate our 18:31 18 minutes, 31 seconds growth plans in the future. Further, quarter 1 FI26 had its own seasonal and mixed factors. Therefore, the standalone 18:39 18 minutes, 39 seconds profit after tax is rupees 166 kores or 7.1% against rupees 163 kores or 7.6% in 18:47 18 minutes, 47 seconds quarter 1 FI25 which is a 3 cr increase in profit after tax. 18:54 18 minutes, 54 seconds Europe topline increase in euros is 28.5% with the car market in Europe being 20% below the pre-COVID size. We have 19:01 19 minutes, 1 second achieved higher sales through the acquisition of step. Even without step, our European product sales had a year on 19:08 19 minutes, 8 seconds year year-on-year growth in spite decline in new car sales. The European profit after tax is at rupees 62 crores 19:16 19 minutes, 16 seconds which grew 42% over quarter 1 FI21 profit after tax or rupees 44 crores with margin slightly improving 19:26 19 minutes, 26 seconds in quarter 1 FI26 a consolidated total income grew 17.3% over quarter 1 of last year from rups 19:35 19 minutes, 35 seconds 2859 crores to rups 3,355 crores the The IBITA grew 17.5% 19:45 19 minutes, 45 seconds from rupees 48 crores to rupees 480 crores and the margins was maintained same at last year's level of 14.3%. 19:57 19 minutes, 57 seconds The profit after tax grew 11% to rupees 226 crores at 6.7%. 20:04 20 minutes, 4 seconds I would like to also mention specifically that our consolidated earnings per share have more than doubled from IPO year FI7 to FI25 that 20:13 20 minutes, 13 seconds is from rupees 23.48 per share to rupees 59.46 per share. 20:19 20 minutes, 19 seconds A high performing inclusive culture remains core to our success. We have 20:26 20 minutes, 26 seconds deepened our focus on inclusion, capability building and employee experience through sensitization 20:33 20 minutes, 33 seconds programs. Upgraded HR policies and infrastructure enhancements. 20:39 20 minutes, 39 seconds Flashship skill and capability programs like suction for the white collared people and uni for the bluecollar employees are helping nurture talent 20:47 20 minutes, 47 seconds across levels while also grooming high potential employees for future leadership roles. 20:55 20 minutes, 55 seconds On the sustainability front, we made significant progress this year onwards towards our ambitious goals of FI for 21:03 21 minutes, 3 seconds FI30. We achieved a 45% carbon neutral percentage. We lowered specific electrical and thermal energy as well as 21:11 21 minutes, 11 seconds specific water consumption while water recycling and hazardous waste recycling stands at 96% each. We also enhance our 21:20 21 minutes, 20 seconds renewable power share from 23% in FI24 to 25% FI25. We have now increased this 21:27 21 minutes, 27 seconds share to 31% in quarter 1 FI26 through expanded rooftop solar and windfire agreements. 21:34 21 minutes, 34 seconds We contributed 300,000 kale of water through water augmentation projects. 21:41 21 minutes, 41 seconds CSR is a strategic priority for endurance rooted in our belief that real impact comes from reducing inequity 21:50 21 minutes, 50 seconds which means one community one child one individual at a time and this will help in every community we transform every 21:59 21 minutes, 59 seconds child we inspire and every individual we empower I'm happy to inform you that our CSR aam 22:07 22 minutes, 7 seconds trust has transformed 55 schools schools with solar energy and hygiene focused facilities enhancing attendance and 22:15 22 minutes, 15 seconds outcomes while training over 900 adolescent girls in health and skills with sustainable agriculture training. 22:24 22 minutes, 24 seconds Our farmers empowerment program has benefited over 4,000 people and eco which is a vocational training center in 22:30 22 minutes, 30 seconds Satrapi Sami Nagar has imparted training to over 2,000 youth securing over 85% employment. Her health work has reached 22:39 22 minutes, 39 seconds 42 villages serving 17,000 people and we have built 2300 toilets to improve sanitation. Our wet van program 2 has 22:48 22 minutes, 48 seconds been successful providing treatment to 40,000 animals in 47 villages. 22:55 22 minutes, 55 seconds I'm happy to tell you that in quarter one, three of our plants have received the national award for manufacturing competitiveness and awards from 23:04 23 minutes, 4 seconds integration from international research institute for manufacturing. 23:09 23 minutes, 9 seconds With these opening remarks, I would now like to invite questions from all of you. Thank you. 23:15 23 minutes, 15 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 23:23 23 minutes, 23 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 23:32 23 minutes, 32 seconds requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question cue assembles. 23:42 23 minutes, 42 seconds The first question comes from the line of Adict Javar from Invest Tech. Please go ahead. 23:49 23 minutes, 49 seconds Uh hi, thanks for the opportunity and congrats on a good set of numbers. Uh my first question is on the PV brakes uh PV 23:58 23 minutes, 58 seconds brakes business. Uh it's a very encouraging start. uh if you can just you know let us know that what could be you know the SOP and you know broadly 24:06 24 minutes, 6 seconds the order size and one pertinent question here is that based on this breakthrough do you think that we could 24:13 24 minutes, 13 seconds get you know access to other OEMs or do we still need a tech tie up you know on this that's the first question 24:22 24 minutes, 22 seconds yes yes so of course it's very heartening to because you need a first break uh you know to start the business 24:29 24 minutes, 29 seconds right now the drum break assembly business on a peranom basis. I think the value is a small value. It's about 25 24:36 24 minutes, 36 seconds crores and uh peranom and this will start end of quarter 4 is is the plan as 24:43 24 minutes, 43 seconds of now. Uh and uh and and as far as the collaboration is concerned ultimately our aim is to go into 24:52 24 minutes, 52 seconds advanced you know uh systems of braking like the ESP for example which is required for four-wheelers. We have a collaboration with Beijing West 25:00 25 minutes Industries as you know for two-heer ABSS and u uh and we are totally involved with them to try and introduce this. Of 25:08 25 minutes, 8 seconds course, this will take some time because there's a long lead time uh for the four-wheeler, you know, advanced braking systems, but we are totally focused to 25:17 25 minutes, 17 seconds try and get uh and try and increase these orders in the four-wheeler space. 25:23 25 minutes, 23 seconds Yeah. Uh thank you for that. uh you know second question is on you know our ABS opportunity. So clearly this regulation 25:30 25 minutes, 30 seconds change has come you know in um our favor uh if you can help us understand that uh what could be the opportunity size in 25:38 25 minutes, 38 seconds you know ABS and plus the break and how is your discussion progressing with OEMs on this. Do you think that there could 25:46 25 minutes, 46 seconds be a some postponement of the timeline and you know when you look at a slightly you know few quarters or say by end of 25:53 25 minutes, 53 seconds next year do you think that India would have enough capacity uh to support the ABS requirement for the two-heer industry? 26:01 26 minutes, 1 second Yes. Yes. See uh we are today engaged with most OEMs because there are not many players. You have Bosch Continental 26:10 26 minutes, 10 seconds Niss Nissen and it is us. We're the only Indian company doing ABS and and and and as I mentioned the what 26:18 26 minutes, 18 seconds we feel is that the at least 16 million and in case not more at least 16 million two wheelers will need you know APS 26:28 26 minutes, 28 seconds of course as per the draft uh this thing draft which we have seen from the ministry of road transport and highways 26:35 26 minutes, 35 seconds uh they talk about January but but if I look at our past experience which has happened 26:42 26 minutes, 42 seconds Normally the delay could be 3 to 6 months but of course we don't know what will happen. We expect that we get some clarification by next month is what I'm 26:51 26 minutes, 51 seconds told. So let's hope that happens but definitely I think this is here to stay. 26:57 26 minutes, 57 seconds It could be 3 to 6 months of delay is what we feel based on past experience when when such drafts have come in the past. But we'll have to wait and watch 27:05 27 minutes, 5 seconds that. As far as endurance is concerned, of course, our capacity was 640,000. 27:11 27 minutes, 11 seconds We are expecting a 10-fold growth for sure. So the the commitments which we have already got from certain customers, 27:18 27 minutes, 18 seconds we are immediately going ahead with the two lines which will add another 2.4 million. These lines should be ready by March 2026. 27:28 27 minutes, 28 seconds And as we engage and as we get commitments, we will keep adding more lines. But for us this opportunity is 27:35 27 minutes, 35 seconds definitely 10 times and I also expect the two-heer industry to grow because um as per figures which they say of FI30 27:42 27 minutes, 42 seconds even if you take a small growth I think we should reach 2930 million vehicles by FI30. So today we are talking about a 27:49 27 minutes, 49 seconds figure of 16 million on a 22 million sales which we expect in uh you know uh both in India as well as in sports but 27:57 27 minutes, 57 seconds this industrial will also grow and uh so so at present we we feel it's a 10-fold you know this opportunity for us to go 28:05 28 minutes, 5 seconds to at least for 6.4 million and then looking at technology and pricing we'll do our best to try and you know increase 28:12 28 minutes, 12 seconds this in future. So this is of course for endurance no it's a real game changer. 28:18 28 minutes, 18 seconds Yeah, that's good to know. My final question is on capeex. Uh if you can, you know, help us understand that how 28:25 28 minutes, 25 seconds should we think about capeex for fi26 in the presentation you have included for the quarterly uh capeex but for a fullear basis how should we think about 28:34 28 minutes, 34 seconds that number and directionally if you can give us a sense that what could be the capeex in 27 and 28 as compared to the last couple of years. 28:43 28 minutes, 43 seconds Yes. So you know the cape apex has been growing every year if you see a past track record and we've been growing we are seeing in in turbulent times which I 28:51 28 minutes, 51 seconds mentioned in my opening remarks we have been growing you know both in India as well as in Europe Europe also with you 28:58 28 minutes, 58 seconds know acquisitions I you know and and and also these you know acquisitions make a lot of money for us and uh so if you see quarter one 29:07 29 minutes, 7 seconds in India we have spent 286 crores and as you know there are three projects which I already mentioned. Uh the big ones are the Oric Shendra starting in quarter 4. 29:18 29 minutes, 18 seconds There's a slight postponement to that and uh then you have the Oric Bitkin which is starting uh in in week four of 29:25 29 minutes, 25 seconds this month and also we have the battery pack uh plant which is starting in January 26 and of course we have a 29:32 29 minutes, 32 seconds existing the business uh you know expansion which is going on. So I see uh looking at the capacities which we need 29:40 29 minutes, 40 seconds to sweat also you know uh the the capeex crossing 800 crores in this year you 29:46 29 minutes, 46 seconds know in in FI28 uh or I would say FI27 definitely this 29:54 29 minutes, 54 seconds figure of course very very uh you know difficult to say but the question is we believe in sweating our assets that's 30:02 30 minutes, 2 seconds why you see operational efficiency is quite good you know since the beginning So we only spend when there is a requirement to spend but as we look at 30:10 30 minutes, 10 seconds inorganic growth opportunities also both in India and Europe and which is actively going on as we speak you know so I don't see 30:19 30 minutes, 19 seconds this figure to be honest as of now going down if FI27 and of course we at endurance will take all all 30:26 30 minutes, 26 seconds opportunities you know we have we have now aluminium castings the orange chendra which is a which is a very good 30:33 30 minutes, 33 seconds margin export you know plant mainly Starting with EVs to start with is a huge opportunity if you ask me. You know 30:41 30 minutes, 41 seconds alloy wheels is a large sales business plant. Aluminium forgings which is a new product segment which is coming up. We started as a backward integration that 30:49 30 minutes, 49 seconds is starting. Battery pack in the new energy space is a good you know this opportunity for the future. And of course I I would say like I've always 30:57 30 minutes, 57 seconds mentioned and I mentioned earlier in my opening remarks we don't supply all our products to all the OEMs. I just mentioned suspension and brakes in 31:04 31 minutes, 4 seconds quarter one. We have really increased business for brakes and suspension. In Suzuki, there were no scooter front work. Last year, now we are doing 60,000 31:12 31 minutes, 12 seconds a month from April to June. Uh in in as far as Hero Motor Cop is concerned, it was 5,000 breaks a month. Today we have 31:19 31 minutes, 19 seconds gone to 30 to 35,000 breaks a month. You know, PBS we were doing 75,000 brakes a month. Now it's 100,000 brakes a month. 31:27 31 minutes, 27 seconds Royal Enfield's break per month have increased from 50,000 to 100,000. you know so there there's a lot happening 31:34 31 minutes, 34 seconds and as we increase new customers uh to all our product segments that will be the biggest growth driver it's not 31:42 31 minutes, 42 seconds just the industry volumes so we are very excited because of our strengths and process product technology as well as 31:49 31 minutes, 49 seconds our ability the trust we have created with the OEM clients of two and three wheelers now starting on a new four-wheeler journey and as I also 31:57 31 minutes, 57 seconds mentioned in in my this thing that today we have Last end of last month started solar suspension called a solar tracking 32:05 32 minutes, 5 seconds system. We were 200 crores order from a Spanish OEM a Spanish client not OEM Spanish client is 200 crores per which 32:13 32 minutes, 13 seconds will be reached which will reach peak next year and now we are talking to somebody else. 32:18 32 minutes, 18 seconds I mean there's a huge business opportunity for profit growth in the non-auto also. We're looking at non-auto in organic growth also. So, so uh and of 32:28 32 minutes, 28 seconds course uh when you talk about capeex there would be capeex high capeex now for the abs. So I've said more than 800 crores but but it could go higher. So 32:37 32 minutes, 37 seconds we'll see you know what really happens because uh ABS is also there which is uh plus with ABS I forgot to tell you there are new brake system which are coming. 32:46 32 minutes, 46 seconds So because ABS requires a brake system and not a drum brake. So and it's above 50 cc. So all the drum brakes will 32:54 32 minutes, 54 seconds convert to ABS. Now that requires a disc brake assembly system you know so so whatever orders and business nominations 33:02 33 minutes, 2 seconds we are getting since this announcement even the brake system orders are increasing and that's why I mentioned that in Chennai 33:10 33 minutes, 10 seconds we are planning to put up a brakes plant and uh because we can't handle it in these existing two plants so so I would 33:19 33 minutes, 19 seconds say there's a lot happening on the growth front at endurance and we are really very excited about So I just want to 33:27 33 minutes, 27 seconds just one you know you know uh clarification if you have to summarize what you have just said that in terms of 33:34 33 minutes, 34 seconds numbers uh last year you know overall we spent you know about what uh little over 1,000 cr including Europe uh Europe 33:43 33 minutes, 43 seconds business in terms of capeex this year we talking about India cex of uh north of 800 crores and Europe capeex you know 33:50 33 minutes, 50 seconds should we you know assume about a 550 cr number or is there an update on that. 33:55 33 minutes, 55 seconds So, and what could be the total capeex in terms of absolute I would maxim because there's a lot of money which has gone into Steph 34:03 34 minutes, 3 seconds acquisition and which will go in the next 5 years like we said we're exploring new acquisition there. Okay. 34:10 34 minutes, 10 seconds So, I I would request Masimo to answer this question. Masimo, could you answer this capeex question? 34:16 34 minutes, 16 seconds Yes. So in the first quarter of this financial year we spent 9 million of euro in terms of capex for the new 34:24 34 minutes, 24 seconds project with the Stalantis Mercedes basically and also Volkswagen. Uh for sure in this financial year the uh the 34:31 34 minutes, 31 seconds effort in terms of capex capex will be lower compared to the previous year where we stand 50 million euro due to the fact that in this moment the market 34:40 34 minutes, 40 seconds is waiting an official position about the European government for the the new rules of green deal and everybody are 34:48 34 minutes, 48 seconds stopping the investment and this is positive from our side as endurance because we can use this the cash profit of the company for extraordinary 34:56 34 minutes, 56 seconds operation in uh inorganic growth that we are evaluating after the acquisition of surface the European market as you know 35:03 35 minutes, 3 seconds is consolidating the business and we are part of this consolidation uh from a point of view in the right side from the part of the customer and 35:11 35 minutes, 11 seconds so we will see but for sure the impact of the car for this financial year will be uh 50% compared to the previous year 35:18 35 minutes, 18 seconds a maximum 20 million 25 million yeah thank thanks Mino will fall back and see. Thank you. All the best. 35:31 35 minutes, 31 seconds Thank you. Thank you. 35:34 35 minutes, 34 seconds The next question comes from the line of promote from Increte Capital. Please go ahead. 35:40 35 minutes, 40 seconds Yeah. Hi. Uh so first I wanted to clarification on this Europe uh sales. 35:45 35 minutes, 45 seconds So if you have to look at the stock rail uh can you give a similar breakup in terms of AITA where it stands now 35:52 35 minutes, 52 seconds because you have given a breakup of sales edition. How much did they brought to you? 35:59 35 minutes, 59 seconds Absolutely. Yes. So we closed this quarter with 103.2 million of euro of turnover compared 80.3 of the previous financial year. So we grew 28.5%. 36:11 36 minutes, 11 seconds Of which 22 million of euro as Mr. J told you before also without the acquisition of the European company grew 36:19 36 minutes, 19 seconds more or less 1%. A bit we close with 18 million of it which means 17.4%. 4% compared 13.3 million of euro of the 36:28 36 minutes, 28 seconds previous financial year 16.5%. And so we grew in terms of a vida 4.7 million of euro 35.1% compared to the previous 36:37 36 minutes, 37 seconds year. In terms of net results we close with the 6.4 million of euro it means 6.2%. 36:43 36 minutes, 43 seconds Compare 4.9 million of euro the previous financial year 6.1% with an increase in terms of net result of 1.5 million of it 36:51 36 minutes, 51 seconds means 31.3% compared to the previous year 37:02 37 minutes, 2 seconds sorry there is some disturbance on the second please go ahead with your question. 37:08 37 minutes, 8 seconds Yeah, sorry. The second question is with regard to the APS uh side. Wanted to know based on your experience on R&D 37:16 37 minutes, 16 seconds over the last uh 4 years, what's the ideal timeline you would require to do R&D for this 100 cc and come up with a 37:24 37 minutes, 24 seconds product one and second what cost efficiencies or the uh product improvements can be brought in because 37:31 37 minutes, 31 seconds these guys will look for a more economical solution. Would you feel it can be a better position to give much better solution than the MNC players and how? 37:42 37 minutes, 42 seconds See, I think uh cost is a very big strength for us because we have our own R&D and as I've always said, it's not 37:50 37 minutes, 50 seconds the performance and durability we do on R&D. We do a lot of value engineering and I've been saying over the past ABS stainless steel braid hoses which used 37:59 37 minutes, 59 seconds to be imported, valves which were imported are being done inhouse today. 38:04 38 minutes, 4 seconds The electronic control units which I've been mentioning will be started from next quarter in-house you know so these 38:11 38 minutes, 11 seconds are all ways how you lower the cost plus definitely when the volumes go up your fixed costs are spread that also brings 38:19 38 minutes, 19 seconds down the cost and I can only say that that that we are very strong as far as the you know cost controls are concerned 38:28 38 minutes, 28 seconds so so uh so so that's why we feel very confident already based on um the I mean 38:36 38 minutes, 36 seconds confirmations we have got we've already started the work we are not waiting to be honest for the final because final u 38:43 38 minutes, 43 seconds you know this thing to come the the notes to come from the ministry of highways and road transport uh so we are 38:50 38 minutes, 50 seconds going ahead because we want to be ready with the capacity which I said should be by March 2026 but that's the time it takes but there are some long lead 38:58 38 minutes, 58 seconds machineries in that so we are going ahead and and and we'll be very fast on the cape but that's the time it takes to I mean set it up because I don't think 39:07 39 minutes, 7 seconds that capacity is there in India right now right and uh what's the you also supply CBS so incrementally it'll be a CBS 39:15 39 minutes, 15 seconds vanishing and ABS coming for you right if I'm understand right no it is not only ABS growth and it took us a day to realize that that is also a 39:25 39 minutes, 25 seconds CBS growth because ABS needs CBS and not a drum break you know because it is above 50 cc Now 39:32 39 minutes, 32 seconds it's 50 cc and above, right? 39:35 39 minutes, 35 seconds So for example, if scooters had drum brakes now, they'll have a ABS with a disc brake, 39:42 39 minutes, 42 seconds right? But you will lose out on the CBS, right? Sir, if I'm uh able to understand it, and then gain on the ABS front. 39:50 39 minutes, 50 seconds No, no. In fact, there are many vehicles like I mentioned, scooters, which are largely no drum brake in the front. So 39:59 39 minutes, 59 seconds now when you have an ABS, ABS requires a disc brake assembly. Plus a caliper and disc it doesn't need a drum brake. So 40:06 40 minutes, 6 seconds that becomes a added volume and the the reason for this new Chennai plant is those volumes are also going up. Sure. 40:13 40 minutes, 13 seconds So based on that we immediately have started uh this thing you know we are just planning to start to work there. 40:19 40 minutes, 19 seconds Sure. And considering your experience with the higher CC uh would you still be looking at giving a full system or you 40:27 40 minutes, 27 seconds would also be open for just supplying disc brakes and capture a value with the customer. How are you trying to approach 40:33 40 minutes, 33 seconds this? No. No. See we are a complete solution provider endurance we give the whole system but 40:41 40 minutes, 41 seconds what happens is some customers have a step-by-step approach. So like I said we first start with a brake disc and then 40:48 40 minutes, 48 seconds they get into the brake system. So that is normally what also happens sometimes that's been a journey of last 20 years. 40:55 40 minutes, 55 seconds First some was directly the system some a brake disc and then the system you know. 40:59 40 minutes, 59 seconds Okay. Okay. And uh if you had to look at the current market size uh uh and the market share how it has traveled for you 41:08 41 minutes, 8 seconds would you give some color what's the size of the market in terms of value? 41:14 41 minutes, 14 seconds See value I will I will not give you but uh the value I can uh see okay leaving the value apart I just mentioned that we 41:23 41 minutes, 23 seconds are gauging the market to be 16 million out of 22 million now maybe that's a conservative figure I don't know okay so that is the volume 41:32 41 minutes, 32 seconds well I've seen some analyst reports talking about 2500 2750 you know as the price now you can gauge what the price would be 41:40 41 minutes, 40 seconds okay sure and where is your market share currently sir And where you expect to be post this 100 cc? 41:46 41 minutes, 46 seconds See right now because we were doing single channel on a 640,000 we were at a run rate of 400,000 which I mentioned earlier. Right. Right. 41:55 41 minutes, 55 seconds Now with this happening I mean I've already said 640 + 2.4 is confirmed. That's why we are we are placing the orders. 42:05 42 minutes, 5 seconds Now rest we are in talks. I mean uh I mean I'm I'm again going next week to meet a major customer. So all this is in 42:12 42 minutes, 12 seconds process because they also just waiting that finally will it be January will it be April will it be July it will be you know when but uh but some people don't 42:20 42 minutes, 20 seconds want to wait so they already started and giving commitments you know so uh so so so that's where it stand but but we have 42:29 42 minutes, 29 seconds gone this thing I mean we are going ahead okay sir is it fair to say you have a singledigit market share now and which can be substantially moving up is that 42:38 42 minutes, 38 seconds the fair understanding to have the uh Right. No, not single. It would be I think it should should be about I 42:46 42 minutes, 46 seconds mean the market size I thought was 3 million. Uh I've been saying uh and we are doing 400,000. So it should be about 13 to 15% I think. 42:56 42 minutes, 56 seconds Okay. Sure. No. And dare you. 42:57 42 minutes, 57 seconds No no no sorry no this right now it's 13 to 15 but we should now with this higher volume our target is at least 25%. 43:08 43 minutes, 8 seconds Okay. Sure sir. Thanks and all the 25% of the higher number. 43:13 43 minutes, 13 seconds Yeah. Got it. So you are ambitious to ramp up and how do you the last one is with regard to R&D capability even 43:20 43 minutes, 20 seconds though you have been seeding this with the R&D capability in the ABS front. Uh how is it prepared to handle this rush 43:27 43 minutes, 27 seconds of customers and how are you better placed on R&D and test track versus the others? Uh if you can give quote them. 43:34 43 minutes, 34 seconds Yeah. See I don't like to comment about others. I would like to talk about ourselves. We are fully ready. I can only say that. 43:41 43 minutes, 41 seconds Okay. Sure. And how does it compare versus when you started in ABS? Is that substantial improvement in capability on uh R&D side? 43:48 43 minutes, 48 seconds Yes. Yes. Yes. Yes. Yes. Absolutely. A lot of learnings because you learn learn a lot from uh from you know from customers your experience. 43:59 43 minutes, 59 seconds Okay. Lowering cost improving efficiencies. 44:03 44 minutes, 3 seconds Then the main thing is on the software part the collaboration of software. 44:08 44 minutes, 8 seconds Right now we used to depend a lot on our collaborative Beijing West Industries. 44:12 44 minutes, 12 seconds Now with our test riders and our internal team we are able to do it ourselves and that's that and that's I I would say one of the biggest learnings and also 44:20 44 minutes, 20 seconds the speed and the and and the cost comes down. 44:24 44 minutes, 24 seconds Okay. And I hope that should also substantially reduce your development time. Yes, absolutely. 44:31 44 minutes, 31 seconds Sure. Thanks and always. 44:34 44 minutes, 34 seconds Thank you. The next question comes from the line of Arvin Sharma from City Group. Please go ahead. 44:43 44 minutes, 43 seconds Yeah. 44:43 44 minutes, 43 seconds Hi. Uh good morning sir. Thank you for taking my question. Uh sir, first question would be uh on the ABS part. Uh 44:50 44 minutes, 50 seconds so just to confirm your current capacity is 640,000 uh and on top of it you plan to add 44:58 44 minutes, 58 seconds another 2.4 million. Is that I understand sir? Yes. Yes. Yes. 45:04 45 minutes, 4 seconds Great. And any timeline for the 2.4 million, sir? Yes, I said March 26 we'll be ready. 45:10 45 minutes, 10 seconds Okay. So March 26 will be ready in March 26. 45:15 45 minutes, 15 seconds Got it sir. Uh so March 23 you'll have a total capacity of almost 3 million uh units. Yes. Yes. Yes. 45:22 45 minutes, 22 seconds Got it. And sir this uh the Chennai facility that you talked about uh that is also for ABS I believe. 45:28 45 minutes, 28 seconds No, no, that is for like I clarified uh in my opening is disc brake assembly system which is master cylinder caliper disc brake disc and brake hose. 45:40 45 minutes, 40 seconds Got it sir. And there's one small clarification in the presentation when you give the number for uh disc brake that includes your ABS I believe. 45:51 45 minutes, 51 seconds Uh which number did I give uh sir? Uh so in the in the presentation uh there's this uh 15.5% 45:59 45 minutes, 59 seconds contribution which is given by disk break. 46:03 46 minutes, 3 seconds So say yeah yeah yeah talking about what you uploaded the quarterly presentation. Okay. 46:09 46 minutes, 9 seconds Yes sir. Yes sir. That is uh total breaking right? Yes. Yes. Yes. That is total breaking. 46:16 46 minutes, 16 seconds You use ABS that 100,000 perom we are doing. 46:19 46 minutes, 19 seconds Sure sir. Uh thank you so much for the The reason why we not got to 640 is because of the dual channel which is now 46:26 46 minutes, 26 seconds starting uh like I mentioned from next you know so so that's the reason that 240 is uh available. 46:35 46 minutes, 35 seconds Got it. The second question would be on Europe. Um uh first of all sorry I I did not get the exact Stefle contribution 46:43 46 minutes, 43 seconds this quarter. If um you could uh repeat that sir in revenue Mimo can you uh can you clarify that? 46:52 46 minutes, 52 seconds So we close with the 103 million of turnover compared 80.3 of the previous financial year and so it means 22.9 47:01 47 minutes, 1 second million of increase in terms of turnover which 22 million of uh is safer level and speaking about 18 million of euro 47:11 47 minutes, 11 seconds was the actual of this financial this first quarter compared 13.3 million of the previous financial year and so it 47:19 47 minutes, 19 seconds means 4.7 million euro fund of which 4.5 million CS are left and certainly that also without CS left the profitability 47:28 47 minutes, 28 seconds of the company and also the turnover grew compared to the the previous financial year 0.6% in terms of turnover 47:34 47 minutes, 34 seconds and 0.2% in terms of percentage in the bid. 47:39 47 minutes, 39 seconds Got it. Thank you so much. And uh just one last question if I may ask. Uh in the in the uh European ramp up schedule 47:47 47 minutes, 47 seconds that you give in the uh that you give in the presentation there's been a very slight slowdown uh especially in FI26. 47:57 47 minutes, 57 seconds Uh is that uh a reflection of the broader industry um environment? 48:04 48 minutes, 4 seconds Absolutely. Yes. This moment is very difficult to predict the next 18 months as you can imagine. I can tell you only one thing in the first quarter of this 48:13 48 minutes, 13 seconds financial year the European market reached the 25% of share in the electrical vehicle be 48:21 48 minutes, 21 seconds and also for and this is an important signal. So I'm we are waiting uh the official position of the government for 48:29 48 minutes, 29 seconds the incentive. Have you seen that Spain is the only market that is growing double digits compared to the previous year only because there are incentive in 48:38 48 minutes, 38 seconds the automotive. Everybody in Germany, in France and Italy are waiting for this incentive and this could be a boost for the future grow the next 18 months. 48:48 48 minutes, 48 seconds Got it. Got it. And just one final clarification. I know I'm I'm slightly overstepping the time given but uh the current revenue and epida by Stepher is 48:57 48 minutes, 57 seconds only for the 60% stake. The remaining 40% is yet to come 100% we are 49:05 49 minutes, 5 seconds no we are consolidating 100% of the because we are consolidating also for the the Indian gap uh the residual 49:14 49 minutes, 14 seconds payment of 40% in our financial depth these are the rules and so we are considering also the potential 27 million euro that we will pay in the 49:22 49 minutes, 22 seconds next five years due to the multiplicator of the bid for the the future five years. So in our figures you will see 49:30 49 minutes, 30 seconds 100% of the the result and also 100% of the depth due to the acquisition. Oh got it. Thanks for clarification. 49:37 49 minutes, 37 seconds That's all from my side. Thank you so much. Pleasure. 49:40 49 minutes, 40 seconds Thank you. Thank you. The next question comes from the line of Shagun Vaia from Anandrai. Please go ahead. 49:48 49 minutes, 48 seconds Hello. 49:50 49 minutes, 50 seconds Yes ma'am. Please go ahead with your question. You're audible. 49:53 49 minutes, 53 seconds Uh yes. uh I wanted to check uh so since the acquisition for uh Stepha is 60% 50:01 50 minutes, 1 second there would be some minority interest so want to check which line item is it reported in in the consolidated 50:07 50 minutes, 7 seconds financials that's my first question uh next is uh what is the opportunity side for disk breaks and pads with the new 50:16 50 minutes, 16 seconds norms um and what are the plans to expand market share with the new customers in ABS also uh the capeex in 50:26 50 minutes, 26 seconds terms of dis disc brakes and uh pads and the pen market penetration for disk brakes currently. 50:36 50 minutes, 36 seconds Okay, for the first the first answer I repeated there are no minority interest in the acquisition of we are 50:43 50 minutes, 43 seconds consolidating 100% of the result and also 100% of the asset and the relative debt. Okay. Okay. Got it. 50:53 50 minutes, 53 seconds Okay. So, so uh so your question was that uh on the I mean ABS right? Right. 51:01 51 minutes, 1 second So, so see okay now I'll put it like this at present in two wheelers endurance has 51:10 51 minutes, 10 seconds 43% market share in the braking system is mainly master cylinder and caliper when you come to only bra disc I think it's over 60%. 51:20 51 minutes, 20 seconds Now what is happening is ABS right now our capacity 640,000 as we are only doing single channel it's 400,000 is 51:28 51 minutes, 28 seconds what we are doing per okay 240,000 we'll realize mainly from the next quarter when we start the dual channel ABS so 51:36 51 minutes, 36 seconds we'll try and use up our 640,000 then u I I also mentioned that the total market on 22 million should be at least 51:46 51 minutes, 46 seconds 16 million on a conservative basis for the use of ABS And it talks about above 50 cc all vehicles including scooters. 51:54 51 minutes, 54 seconds Now in the 16 million we as as you know endurance uh are uh are you know uh we have 52:04 52 minutes, 4 seconds started with right now another 2.4 4 million which we want to reach by March 26 and of course I mean our uh target I 52:12 52 minutes, 12 seconds said as this 16 million is there and as it grows we start with a 25% so is where we want to reach first you know that 52:19 52 minutes, 19 seconds that is what I said and uh and we'll go step by step from there you know okay thank you 52:28 52 minutes, 28 seconds so be okay thanks thank Thank you. 52:37 52 minutes, 37 seconds The next follow-up question comes from the line of Adita Javar from Invest. Please go ahead. 52:44 52 minutes, 44 seconds Yeah. Hi, thanks for the follow. Uh the you know honorable man of the comment you mentioned about this Chinese you 52:51 52 minutes, 51 seconds know OEM. So is it included in the 300 cr order you know that we talked about in the presentation? 52:59 52 minutes, 59 seconds no that Chinese we sorry yeah yeah please continue so the question 53:06 53 minutes, 6 seconds yeah so the question is see the 300 kes peranom is for the battery pack which is for a Indian 53:15 53 minutes, 15 seconds two-heer OEM which I mentioned in my opening remark that is for battery pack what I talked about the Chinese a 53:22 53 minutes, 22 seconds leading Chinese OEM is for supply of inverted front forks and rear monoshocks which will start in this financial year 53:30 53 minutes, 30 seconds most probably quarter three or quarter four we'll see how that goes uh so that was more of our growth other than Baj 53:38 53 minutes, 38 seconds and KTM uh you know to get into so like I said TVS we have started Hiroto coffee are starting they're talking to almost 53:45 53 minutes, 45 seconds everybody and we've got this order from these Chinese I mean it is a leader in it is one of the top companies for 53:53 53 minutes, 53 seconds making bikes and uh so that is for the in What is front and rear monoshock the Chinese? 54:01 54 minutes, 1 second Okay. So, okay. Okay. So, I was referring to this you know order of 300 cr for E4heer application. Um fair enough that was a 54:10 54 minutes, 10 seconds good clarification. So, you would be supplying in which market this uh the Chinese OEM? No. So, this will be exported to China. 54:19 54 minutes, 19 seconds China. Okay. Uh perfect. Uh that's what helpful. So are you talking about the Oric Shendra plant two global OEMs? 54:28 54 minutes, 28 seconds So there you know there are two separate questions. One is this Oric Shendra that's about the 300 K order for E four-wheeler application. 54:36 54 minutes, 36 seconds Okay. It's a coincidence that Okay. 54:38 54 minutes, 38 seconds Okay. Okay. So that 300 KS that 300 K is for two global OEMs in US and Europe. Okay. 54:49 54 minutes, 49 seconds Okay. Uh okay. So you'll be okay. Fair enough. Fair enough. 54:55 54 minutes, 55 seconds Okay. As far as the uh Okay. Which was the second question? Uh 55:03 55 minutes, 3 seconds no, I think that that that's quite helpful. So this is a separate you know 300 cr order and this Chinese you know order. So if you can give some order size of this Chinese customer. 55:14 55 minutes, 14 seconds Chinese. Okay. as of now I don't have it but it's uh it is quite a decent value but I I can get back to you on this 55:22 55 minutes, 22 seconds sure the Chinese yeah but it'll it'll be more peak in FI27 as we are starting only in next 55:30 55 minutes, 30 seconds quarter end you know perfect all the best thank you thank you 55:37 55 minutes, 37 seconds thank you the next question comes from the line of Mr. Nishid Jalan from Access Capital please go ahead sir. 55:46 55 minutes, 46 seconds Yeah hi uh sir my question is you are talking about that uh at least the size of ABS will be 16 million units. Now if 55:53 55 minutes, 53 seconds ABS is getting mandatory on every product uh higher than 50 cc then will it not be applicable in entire 22 56:02 56 minutes, 2 seconds million units? Uh is it something we are missing here? uh see I I mean I mean let let us hope so 56:10 56 minutes, 10 seconds but I've just taken mopeds are there also there you know in that figure u 56:17 56 minutes, 17 seconds well we have taken a conservative figure of 16 to be honest you know okay I mean by logic you're right it should be in all 56:25 56 minutes, 25 seconds but uh we are just looking at 16 right now because TC till we get the final uh this thing draft huh 56:33 56 minutes, 33 seconds exports may not have Yeah. No, no, no, no. In fact, one important point here which has just struck me. See, a lot of these two wheel OEMs are exporting to 56:41 56 minutes, 41 seconds Africa, South America. So, their ABS may not be mandatory, you know. So, well, it just struck me 56:49 56 minutes, 49 seconds that uh that must that that that we've adjusted. 56:53 56 minutes, 53 seconds No, but the domestic market domestic market size itself will be like 20 million unit plus excluding the exports. 57:00 57 minutes See the exports? Yeah, you're right. I mean but exposed would be at least 3 million. I have to get the numbers would be at least 3 million. Okay. So so so 57:08 57 minutes, 8 seconds your figure on 22 could be 19. I'm saying we are saying 16. Okay. So it's a 3 million difference but but we'll see 57:14 57 minutes, 14 seconds how that goes you know. U but but exports will not have it because major exports are South America, Africa, 57:23 57 minutes, 23 seconds Southeast Asia and they don't have these ABS rules. 57:27 57 minutes, 27 seconds Correct. Correct. Correct. Uh just one last question on Europe. Right. this top acquisition that we have done uh this 57:34 57 minutes, 34 seconds company seems to be very very profitable right 4.5 million euro I believe on a 22 million euro topline uh so just wanted 57:42 57 minutes, 42 seconds to understand just wanted to understand uh uh uh uh what actually happened what did we get get to do this M&A it was not 57:49 57 minutes, 49 seconds a struggling company right so so why were we looking to sell and uh what drove this uh M&A and what was the total amount sorry I forgot what was the total 57:58 57 minutes, 58 seconds amount that we have paid to acquire 60% stake in this Mimo. 58:04 58 minutes, 4 seconds Okay. So the the first answer is that we spent 37.7 million euro to buy 60% of share. Speaking about the second uh the 58:14 58 minutes, 14 seconds first uh your uh statement regarding the profitability of the company for sure I guarantee that the profitability of the company is very high. uh for us was a 58:23 58 minutes, 23 seconds strategic acquisition basically for the consolidation of one customer that is Mercedes and you have to consider that 58:30 58 minutes, 30 seconds this is a company with only machining and so as you can imagine the bid is you can compare the bid of a company that do 58:39 58 minutes, 39 seconds only machining with a company that also found component and so the profitability 58:47 58 minutes, 47 seconds of the company is 20% 18.7% we continues to grow from my point of view in the next future year due to the fact that 58:54 58 minutes, 54 seconds now we are doing important synergy between endurance is definitely due to the fact that Stephan bought in the past 59:03 59 minutes, 3 seconds 100% of the opacity to the market now we can produce this part for them and so it means that we can add in the our 59:11 59 minutes, 11 seconds additive value in our bid also the the added value of the foundry process this was the strategy of the acquisition of 59:18 59 minutes, 18 seconds the company and so from my point of view only To give you an idea as you know two years ago we acquired an important 59:25 59 minutes, 25 seconds business with BMW for 5 million of turnover for a new transmission 100% electric furn we produce the machining 59:33 59 minutes, 33 seconds of this component because we understood that they have the production capacity available and we can move from endurance 59:41 59 minutes, 41 seconds to SE this project it means that we can save in our balance sheet more or less 3.5 million fixed assets these are the 59:48 59 minutes, 48 seconds the economy of scale that we are trying to do that we did in the part in the acquisition when you you are obliged to grow in terms of inorganic grow in a 59:57 59 minutes, 57 seconds market that is not growing in terms of volume. So this is the only possibility to save and to survive and to uh increase and maintain our profitability. 1:00:08 1 hour, 8 seconds Thank you. Thank you so much. 1:00:09 1 hour, 9 seconds And and I would also like to add just to add that even there's a machine building capability which which we've acquired by you know acquiring. 1:00:19 1 hour, 19 seconds Sure. Sure. As you know Stepher produce produce the machine and so in terms of 1:00:25 1 hour, 25 seconds saving for the future capex it will be an important asset for for endurance because usually we are obliged to uh 1:00:34 1 hour, 34 seconds reinvest from green field when we start with a new business with our customer with we can also learn and we can make 1:00:43 1 hour, 43 seconds experience also reusing the existing production capacity to the market. You can imagine what does it mean to to move to transform the existing production 1:00:51 1 hour, 51 seconds capacity of the internal combustion engine for the future project of electric. If we be able to do this, we can save important amount in our future assets. 1:01:05 1 hour, 1 minute, 5 seconds Okay, thank you so much. That's it from my side. Thank you. Thank you. Thank you. Welcome. 1:01:12 1 hour, 1 minute, 12 seconds Ladies and gentlemen, we take that as the last question. I now hand the conference over to the management for the closing comments. 1:01:21 1 hour, 1 minute, 21 seconds Uh well, I would just like to uh close this by saying that uh we are really focused on profal growth. There are a lot of opportunities now. 1:01:35 1 hour, 1 minute, 35 seconds Now our focus will be how we can give high technology products at affordable prices so that we can increase the range 1:01:43 1 hour, 1 minute, 43 seconds and the volumes of our products which were earlier meant for 250 400 cc and bring them down to a 125cc. 1:01:50 1 hour, 1 minute, 50 seconds So uh so that will be a focus how to gain business value and value engineering and giving more and more features to our uh customers which we 1:01:59 1 hour, 1 minute, 59 seconds have done for the last 25 years. So so uh so that's what I would like to say. Thank you. 1:02:08 1 hour, 2 minutes, 8 seconds Thank you members of the management team. Ladies and gentlemen, on behalf of Access Capital Limited, that concludes this conference call. We thank you for 1:02:15 1 hour, 2 minutes, 15 seconds joining us and we may now disconnect your lines. Thank you.