Endurance Technologies Limited — Q2 FY26

Endurance Technologies Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ys3aQWTD-JQ Published: 6 months ago

0:01 1 second Ladies and gentlemen, good morning and welcome to the Endurian Technologies Q2FY26 earnings conference call hosted by 0:09 9 seconds Access Capital Limited. As a reminder, all participant clients will be in the listen only mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 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. Nishit Jan from Access Capital Limited. Thank you and over to you sir. 0:41 41 seconds Thank you so much. Good morning everyone. Welcome to Q2 SI26 poster conference call of endurance technologies. We are pleased to host the 0:50 50 seconds management team of endurance. Today we have with us Mr. Anuran Jan, managing director, Mr. Matimo Venuti director and 0:58 58 seconds CEO endurance overseas Mr. Rajendra Abhang director and COO Mr. Raja Gopal 1:05 1 minute, 5 seconds Sakri group CFO and Mr. Raj Mundra treasurer and investor relations I'll now hand over the call to Nar for his 1:12 1 minute, 12 seconds opening remarks post which we can uh start with the Q&A over to you Mr. T. Thank you very much. 1:20 1 minute, 20 seconds Good good morning everyone. 1:22 1 minute, 22 seconds As we close quarter two of FI26, India's economic backdrop remains strong even as global uncertainties persist. 1:32 1 minute, 32 seconds The domestic economy continues to show strength as we move into the second half of the year. The RBI has revised it FI26 growth forecast from 6.5% to 6.8%. 1:45 1 minute, 45 seconds It has lowered its CPI inflation forecast for FI26 to 2.6% down from 3.1%. 1:53 1 minute, 53 seconds These along with a steady repo rate reflect a supportive macro backdrop for demand and investment. 2:00 2 minutes World Bank 2 has raised India's GDP growth forecast 26 but have cut their FI27 forecast to 6.3%. 2:10 2 minutes, 10 seconds citing headwinds from the recent 50% US tariffs impacting Indian exports and slower global demand. We are hopeful for 2:19 2 minutes, 19 seconds a for a better and amicable settlement on the trade tariff issue. 2:23 2 minutes, 23 seconds A major domestic policy move of the last quarter is the GST rationalization implemented from 22nd September 2025 2:32 2 minutes, 32 seconds which simplified the rate structure into fewer slabs and lower rates for many consumer goods, farm and manufacturing 2:40 2 minutes, 40 seconds inputs and for most automobiles and auto parts. This is expected to support growth of the automotive industry by 2:48 2 minutes, 48 seconds improving affordability and consumption across segments and the robust festive season sales were also attributed to 2:56 2 minutes, 56 seconds such lower cost of ownership. In the automotive sector as per two wheeler sales reached 6.9 million units in 3:05 3 minutes, 5 seconds quarter 2 FI26 up 10.3% year-onear with motorcycles at 9.6% 6% growth and 3:12 3 minutes, 12 seconds scooters at 12.4% growth. Passenger vehicle sales increased by 2.4% to 1.3 million units while three wheel sales 3:21 3 minutes, 21 seconds rose 21.4% to4 million units. Insurance in its standalone financials for quarter 2 FI26 saw a year-over-year growth of 16.2%. 3:34 3 minutes, 34 seconds In a European Union, UK sales saw a year-on-year rise of 7.7% in quarter 226 3:41 3 minutes, 41 seconds while our endurance saw a total income growth was significantly higher at 32.5% 3:48 3 minutes, 48 seconds with Stepha consolidation. If we remove the impact of Stepha consolidation as well as the cooling sales, our total income grew by 7.8%. 3:59 3 minutes, 59 seconds In quarter 2 FI26 industry volume, there was a 17.4 4% share of battery electric vehicles, 10.2% for plug-in hybrids and 4:09 4 minutes, 9 seconds 34.3% for hybrids in Europe. On the strategic growth front, we are pleased to share key updates. As you aware, the 4:17 4 minutes, 17 seconds central government had issued a draft guideline mandating ABS for all vehicles sold after 2025. We've announced a 4:25 4 minutes, 25 seconds capacity expansion increasing the ABC ABS capacity by 2.0 4 billion units peranom which is a fivefold increase 4:34 4 minutes, 34 seconds along with a significant increase in disc brake systems and brake disc. Also a new ABS capacity of 2.4 million ABSS 4:44 4 minutes, 44 seconds will be installed in two phases with the first line of 1.2 million will be operational in quarter 1 FI27 and the 4:51 4 minutes, 51 seconds second line will be linked to the timing based on the final guidelines which is expected in this month. Since ABS was 4:59 4 minutes, 59 seconds already mandatory for more than 125cc two wheelers, we expect much of the incremental demand to come from 125cc or 5:08 5 minutes, 8 seconds lower two wheelers with a single channel ABS. For a dual channel ABS SOP, one OEM 5:15 5 minutes, 15 seconds will start SOP next month and the second OEM by January 2026. So the run rate of 640,000 EBS peranom capacity we have 5:24 5 minutes, 24 seconds will be reached in quarter 4 of this financial year. 5:28 5 minutes, 28 seconds For the large increase in volumes of single channel APheads, we are lining a backward integration of steel bed hoses, 5:35 5 minutes, 35 seconds valves and ECU assemblies. We also plan to insource part of the ECU printed circuit boards leads through our SMP line. 5:45 5 minutes, 45 seconds We have we have started civil work for setting up our new plant for disc brake systems which includes the master cylinder caliper brake disc and brake 5:54 5 minutes, 54 seconds hoses where we expect SOP in quarter 2527. 5:58 5 minutes, 58 seconds Here we will produce 3 million disc brake assembly systems for anom and 4 million brake discs for anom. This will 6:05 6 minutes, 5 seconds be part of the total 7.6 million disc brake uh systems and 8.6 6 million brake discs at endurance which is planned at 6:13 6 minutes, 13 seconds at at at endurance. This will help us not only to serve better our customers in south India like TVS, Yamaha and Roy 6:22 6 minutes, 22 seconds Enfield as we'll be close to them but also help create space for our new ABS expansion in our existing brakes plant at Chhatrapati Sabhaji. 6:33 6 minutes, 33 seconds As you are aware, we are also setting up a new integrated R&D facility for brakes which will be double the size of the existing one. The new R&D facility will 6:42 6 minutes, 42 seconds be ready and commissioned by quarter 4 of this financial year and will completely integrate two wheeler brakes as well as the ABS R&Ds with space 6:50 6 minutes, 50 seconds provisioned for four wheeler brake assemblies. Also here we are also adding a brake parameter measurement lab. 7:00 7 minutes We continue to position our new Oric Shindra facility as a key point of critical machine castings for four-wheeler and non-autro applications. 7:10 7 minutes, 10 seconds We are therefore equipping this plant with highly sophisticated machining and finishing equipment. 7:16 7 minutes, 16 seconds In the past we have mentioned about orders from MI US and UK based OEMs and also orders from value for electric 7:24 7 minutes, 24 seconds platforms of Mahindra and now we have added Yazaki as a customer taking the total sales close to rupees 388 KS 7:33 7 minutes, 33 seconds peranom at peak. SOP for both the US and UK OEMs will start in quarter 1 of FI27 and we will reach peak sales in FI28. 7:44 7 minutes, 44 seconds The SOP for the Oric Shendra plant is is going to be in January 2026. 7:53 7 minutes, 53 seconds At a new two-heer alloy plant at Oric Bitkin, the SO has already started in October for Bajar Auto while supplies 8:00 8 minutes for Royal Enfield will start in next month and Suzuki alloy wheels will start by the end of quarter FI27. 8:08 8 minutes, 8 seconds This plant will have an annualized sales of more than rupees 600 crores by quarter 2 of FI27. 8:16 8 minutes, 16 seconds As you are aware, the plant has an installed capacity of 3.6 million BS peranom which has been entirely booked with orders from OAN clients. A shark 8:25 8 minutes, 25 seconds alloy wheel plant is also running full with a capacity of 5.5 million bills peranom 8:33 8 minutes, 33 seconds for a battery pack manufacturing facility near Pune. Key imported machinery shall be installed by next month and SOP will be SOP will be on 8:42 8 minutes, 42 seconds January 2026 for a leading two-heer OEM in India. Once this battery pack cylindrical line is installed, we are 8:50 8 minutes, 50 seconds confident of getting battery pack business for other two-heer and three-wheer programs. We will also focus on battery packs for high potential 8:57 8 minutes, 57 seconds sectors like inverters, telecom and battery energy storage systems. With respect to the 300 rupees 300 cr plan in 9:05 9 minutes, 5 seconds business one from a leading two wheel the total samples have been submitted in this quarter which is in line with our SOP which is planned in January 2026. 9:15 9 minutes, 15 seconds In half one of this financial year a wholly owned subsidiary Maxwell achieved a record turnover of rupees 73 crores as 9:23 9 minutes, 23 seconds against rupees 70 kores in the full year of FI25. 9:27 9 minutes, 27 seconds We are now supplying battery management systems for scooters, three-wheelers, tractors, construction equipment for endurance company as well as for 9:35 9 minutes, 35 seconds telematics along with motor control units. 9:39 9 minutes, 39 seconds A strong R&D and innovation sale at Maxwell has helped us to optimize and value engineer the battery management 9:46 9 minutes, 46 seconds system products across two wheelers, three dealers and tractor segments. We also focusing now on a high voltage 9:53 9 minutes, 53 seconds battery management system for four wheelers and e buses. 10:00 10 minutes The special season demand was met by products rolling out of a highly on automated surface mounted technology line at Saminaga where we have now a 10:09 10 minutes, 9 seconds capacity of 44,000 battery management systems per month. We will be adding another 44,000 battery management systems per month on the second SMP line by March 2026. 10:21 10 minutes, 21 seconds In half FI26 at Maxwell, we have won rupees 21 K of new business which has taken the total cumulative orders one to 10:28 10 minutes, 28 seconds rupees 209 cranum which will peak in order 3 of FI27. 10:34 10 minutes, 34 seconds The orders one are for two meters shorts ebikes electrical construction equipment and for airline buggies. 10:43 10 minutes, 43 seconds A natural have now a strong pipeline of RSUs of rupees 137 kores. 10:50 10 minutes, 50 seconds We are the clear market leader in inverted fronts and this business has grown steadily over the years with rising demand from multiple OEM 10:58 10 minutes, 58 seconds customers. We have started supply of inverted front forks and bonus shocks to TVS where the front has been upgraded with adjustable features and with both 11:07 11 minutes, 7 seconds side cartridge systems. The SOP for another OEM Euro motor is planned within this financial year while SOP for a 11:14 11 minutes, 14 seconds leading Chinese two-heer OEM is expected to start in quarter one of FI27. 11:19 11 minutes, 19 seconds This would take the nor total number of OEMs using our inverted front box to six. 11:25 11 minutes, 25 seconds Our overseas OEM client KTM has also started increasing scheduled for inverted fronts. We should cross a total 11:33 11 minutes, 33 seconds of 650,000 inverted front sales in this financial year. 11:38 11 minutes, 38 seconds As you are aware, our aluminium forging business, which has a technical collaboration with FGM in Italy, started as a backward integration for supplying 11:45 11 minutes, 45 seconds aluminium forged access clamps for our inverted front box. This large inverted front growing business is a captive use 11:53 11 minutes, 53 seconds opportunity for our aluminium forging axle clamps. We already have four aluminium forging presses which we will move to a new forging facility in 12:01 12 minutes, 1 second quarter 1 of FI27 along with fifth aluminium forging press which has already been ordered for aluminium 12:08 12 minutes, 8 seconds forging business. We have now won export orders of rupees 5 roads for Adam for new parts from a German OE SOP planned in quarter 1 FI28. 12:18 12 minutes, 18 seconds As you are aware, we have orders for aluminium forging from Jaguar Land Rover of rupees 27 cranum which business will start in quarter 4 of this financial 12:26 12 minutes, 26 seconds year. We also want aluminium forging orders from Royal Enfield or rupees 12 cranum which SOP in quarter 1 FI27. 12:35 12 minutes, 35 seconds A line of sight for aluminium ping business next year is around rupees 140 crores. 12:44 12 minutes, 44 seconds Sale of the first set of containers carrying export assignment of solar dampers took place in quarter 2. We are 12:51 12 minutes, 51 seconds building a new infrastructure in our plant as in Gujarat to cater to the large volume orders for these solar dampers. This business value run from 13:00 13 minutes the Spanish OAN is rupees 200 kores which will be executed by FI27. 13:06 13 minutes, 6 seconds There is a tremendous opportunity to increase this business. We are in the process of finalizing business with another global client. 13:14 13 minutes, 14 seconds In quarter two, we started supplies also of our assistant lift clutches to Royal Enfield and Kawasaki introducing Admiral 13:22 13 minutes, 22 seconds technology to the Indian market. SOP for Baj is expected in the next quarter. 13:28 13 minutes, 28 seconds As mentioned earlier, we started on vehicle testing for our first four-wheeler drive shock order. We expect to commence SOP in quarter 4526. 13:36 13 minutes, 36 seconds In view of multiple three-wheer orders across five OEMs and and expected growth in the four-wheeler business, we plan to set up a separate four-wheeler drive shop assembly line during this quarter. 13:48 13 minutes, 48 seconds As informed in the previous call, we completed the acquisition of the 60% stake in Stepha entities in Germany in the beginning of quarter 1 of this 13:57 13 minutes, 57 seconds financial year with a line of size of acquiring the remaining 40% in 5 years. 14:02 14 minutes, 2 seconds Stephle has an annual turnover of approx of approximately 80 million euro from April 2025. Step financials are 14:10 14 minutes, 10 seconds consolidated in the endurance group financials. 14:15 14 minutes, 15 seconds We mentioned earlier that under the Maharash PSI 2019 scheme. We received an eligibility certificate of rupees 600 14:23 14 minutes, 23 seconds crores for capix incurred till September 2025. 14:28 14 minutes, 28 seconds Under this 2019 scheme, we will now apply for an additional eligibility certificate for capeex up to full FI 2026. 14:36 14 minutes, 36 seconds Based on rupees 66 crores certified by the authorities, we have recorded a PSI incentive of rupes 33 crores in quarter 14:44 14 minutes, 44 seconds 1 and rupes 37 crores in quarter 2 of this financial year. 14:49 14 minutes, 49 seconds You will recall that we have booked almost all amounts totaling rups 446 crores under the PSI 2033 and have 14:57 14 minutes, 57 seconds collected cash to the tune of rupees 350 K. 15:02 15 minutes, 2 seconds Let me now give you a gist of orders won during half one of this financial year. 15:07 15 minutes, 7 seconds Please note that the business value from new orders are without including orders from Bajage Auto. Overall overall order 15:14 15 minutes, 14 seconds win in in the half on FI26 in India business was rupees 999 cr peranom of which 15:23 15 minutes, 23 seconds rupees 93.8 crores is new business this includes the new business of 300 crores perom for the 15:31 15 minutes, 31 seconds battery pack at a plant and rupes 21 cr new order of BMS at max. 15:38 15 minutes, 38 seconds A overall business win in half FI26 is rupees 355.8 crores 15:45 15 minutes, 45 seconds which is a which is 61% of the total business win this year. 15:51 15 minutes, 51 seconds This includes rupees 103 crores of EV casting business for a leading US EBE and rupees 146 cr alian passing order 16:00 16 minutes from Hyundai and Kia Motors. SOP is an FI27 which is next year. We've also won 16:08 16 minutes, 8 seconds the from Gator Energies for their scooters. The annoying business was rupes 31 crores with a 100% share of business for their new upcoming plant and or bitkin at Chhatraati Sami. 16:21 16 minutes, 21 seconds Cumulative India business orders for the EV segment till date stand at rupees,2 kanom and with baj this figure is rupes 1195 k per peranom. 16:34 16 minutes, 34 seconds So the total orders won since FI22 is rupes 4,671 cranum out of which rups 3,953 kores is new business. 16:47 16 minutes, 47 seconds We expect rups 3500 kores per panum out of this to peak in fi 28. 16:55 16 minutes, 55 seconds We have a total of rups 4209 crores worth of RSQs in hand. 17:01 17 minutes, 1 second We expect to win more than rupes 1,500 crores of business in the next 12 to 18 months. 17:08 17 minutes, 8 seconds In our Europe business, we have booked orders worth euro 12.7 million during half month. These are orders for machine 17:16 17 minutes, 16 seconds caring from the Volkswagen group, machining orders from Stefle and ED component orders for a specialtity plastics unit in Tur. 17:26 17 minutes, 26 seconds The aftermarket is a strategic priority for us. We have set ambitious growth goals till 2013. We are focusing on 17:34 17 minutes, 34 seconds secondary demand generation with retailers and mechanics for the domestic business. We have appointed a new 17:40 17 minutes, 40 seconds domestic head and a value ad product head for the bought out products we buy. 17:47 17 minutes, 47 seconds We have developed district actions plans for 78 district clusters and define unique value propositions for 39 countries. 17:57 17 minutes, 57 seconds We're the first in our industry to launch a global rewards program which is a tiered loyalty program for our channel partners. We also driving a holistic 18:06 18 minutes, 6 seconds development program to build capability of our sales team and to empower them with the right tools and skills. 18:14 18 minutes, 14 seconds Coming to our financial performance, the information has been uploaded at the stock exchanges last evening along with a presentation explaining the numbers. I 18:24 18 minutes, 24 seconds will how however highlight some key numbers. 18:27 18 minutes, 27 seconds During quarter 2 FI26, the company recorded a standalone total income of rupees 2,692.2 18:34 18 minutes, 34 seconds crores, a year-on-year growth of 16.2% from rupees 2,317.1 18:41 18 minutes, 41 seconds Kores. In the previous year, the IBITA grew 6.3% from rupes 316.1 Kores to 335.9 Kores with a margin at 12.5%. 18:53 18 minutes, 53 seconds The pad grew 1.5% from rupes 184.8 crores to rupees 187.6 crores. The evita 19:01 19 minutes, 1 second drop of 1.16% on total income is largely contributed by raw material cost increase led by aluminum alloy which 19:09 19 minutes, 9 seconds forms 55% of the total raw material purchases around rupees 10 cr is due to investment 19:16 19 minutes, 16 seconds in people for future business growth in the areas of strategy R&D after market and sourcing. 19:26 19 minutes, 26 seconds A further around rupees 10 crores is in two special pro projects which are for the after market profit growth and the 19:33 19 minutes, 33 seconds sourcing savings with a leading global consulting firm which is an investment of profit growth as well as cost control 19:40 19 minutes, 40 seconds and this will continue till quarter 4 this financial year. 19:46 19 minutes, 46 seconds In quarter 2 FI26 our consolidated total income grew 22.6% 6% over quarter 2 of 19:52 19 minutes, 52 seconds last year from rups 2,939.2 crores to rups 3,63.8 19:59 19 minutes, 59 seconds crores. The grew 21.9% rupes 48.5 crores to rupes 497.8 crores a margin was at 13.8%. 20:11 20 minutes, 11 seconds The pack grew 12% from rupees 203 crores to rupees 227.3 cr at 6.3% pack margin. 20:23 20 minutes, 23 seconds With diversification and business growth, our HR department continues to play a key role as a enabler in shaping 20:30 20 minutes, 30 seconds the business outcomes. Our focus remains on strategic workforce planning and talent ramp up with emphasis on 20:38 20 minutes, 38 seconds strengthening the mid-management layer to build a balanced organizational pyramid. HR digitization is being 20:45 20 minutes, 45 seconds actively leveraged to enhance efficiency and improve ease of business to build future ready capabilities. We have also 20:54 20 minutes, 54 seconds launched the legs which is a learn, earn, grow and succeed program with a customized skill development program for our blue corner employees. 21:03 21 minutes, 3 seconds Alongside, we continue to strengthen our leadership and capability building agenda through multiple flagship 21:10 21 minutes, 10 seconds programs such as the endurance leadership program. 21:16 21 minutes, 16 seconds On the sustainability front, we made significant progress this year towards our ambitious goals for FI30. We achieved a 48% carbon neutral 21:25 21 minutes, 25 seconds percentage. We lowered specific electrical and thermal energy as well as specific water consumption while water 21:32 21 minutes, 32 seconds recycling and hazardous waste re recycling both stand at 98% each. 21:38 21 minutes, 38 seconds We also enhanced our renewable power share from 23% in FI24 to 25% FI25 and 21:47 21 minutes, 47 seconds now we have increased it in quarter 2 of this financial year to 28% through expanded rooftop solar and wind power agreements. 21:56 21 minutes, 56 seconds We also contributed 300,000 kale of water through water augmentation projects. 22:05 22 minutes, 5 seconds Try has increased our ESG rating for FI24 to 59 up from 56 in FI23 22:14 22 minutes, 14 seconds while another agency SCES has increased the rating to 74 up from 68 in the previous year. A A120 22:24 22 minutes, 24 seconds Vanus plant has been awarded the prestigious CI Green gold rating. 22:31 22 minutes, 31 seconds At endurance, we see CSR as a way to create real and lasting impact. Our approach is centered on lowering 22:38 22 minutes, 38 seconds inequity, one community, one child, one individual at a time. This is how we create impact that endures well beyond 22:47 22 minutes, 47 seconds the tenor or scope of CSR work we are doing. I'm pleased to share that our CSR tamer trust has transformed 61 schools 22:56 22 minutes, 56 seconds with solar energy and hygiene based focused facilities enhancing attendance as well as outcomes while training over 23:05 23 minutes, 5 seconds 900 adon girls in health and skills with sustainable agriculture training. A farmer empowerment program has benefited 23:13 23 minutes, 13 seconds over 4,900 people and ECOV, a vocation training center at Shakhati Samai Nagar 23:20 23 minutes, 20 seconds has imparted training to over 2,300 youth securing over 85% employment. Our 23:27 23 minutes, 27 seconds health work has reached 42 villages serving 19,000 people and we have built 2300 toilets to improve sanitation. Our 23:35 23 minutes, 35 seconds wetland program too has been successful providing treatment to 43,000 animals in 47 villages. 23:43 23 minutes, 43 seconds This quarter we have started work on the biggest forest project covering 25 acres land with 2.5 lakh plantations three plantations. 23:54 23 minutes, 54 seconds I'm happy to inform you that we have won the quality excellence award from Tata Motors at their annual supply conference in September 2025. 24:03 24 minutes, 3 seconds I'm also happy to inform you that in October this year, Endurance overseas plant supplying to Stellantis Group was 24:10 24 minutes, 10 seconds recognized as a top supplier in the global supplier awards 2025. 24:16 24 minutes, 16 seconds Now with these open remarks, I would now like to invite questions from all of you. Thank you. 24:24 24 minutes, 24 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 24:31 24 minutes, 31 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 24:38 24 minutes, 38 seconds may press star and two. Participants are requested to use hand tips while asking your question. Ladies and gentlemen, we 24:46 24 minutes, 46 seconds will wait for a moment while the question assembles. 24:55 24 minutes, 55 seconds The first question is from the line of Manish Ota from Yul Bank Private Limited. Please go ahead. 25:04 25 minutes, 4 seconds Yes sir. Thank you for the opportunity and I have a question on the slide number 12 of the presentation where the 25:11 25 minutes, 11 seconds scooter segment has seen a decline of 4.4%. In the last quarter there was a very strong growth. So any spillover 25:19 25 minutes, 19 seconds effect can you comment on this line item why there is a decline in this particular quarter? 25:24 25 minutes, 24 seconds Yeah, I think this decline is mainly due to the decline of you know Honda uh motorcycles and scooters as you know 25:32 25 minutes, 32 seconds they have had a deg uh uh for this 25:41 25 minutes, 41 seconds I mean industry volume is 12.4% cop in your presentation and your income growth is negative 4. Hope 25:49 25 minutes, 49 seconds yes. So, so the reason for that is that you know uh uh HMSI is our second largest OEM customer and when they get 25:57 25 minutes, 57 seconds impacted uh we also get impacted. So, so, so that's the main reason 26:04 26 minutes, 4 seconds financial year when they really grew very well you know. So, so it does have impact because as you know HMSI is a market leader for scooters. 26:14 26 minutes, 14 seconds Right. Right. Okay. Thank you. 26:21 26 minutes, 21 seconds Thank you. The next question is from the line of Adi Jav from Invest Tech. Please go ahead. 26:29 26 minutes, 29 seconds Yeah, thank you for the opportunity and congrats on a resilient quarter. Uh my first question is on the you know the 26:36 26 minutes, 36 seconds standalone business India business where we saw a Y basis you know margin compression if you can explain that you 26:44 26 minutes, 44 seconds know if you can quantify what could be the impact of aluminium pass through and what would be the other variables to drive the you know y margin compression. 26:54 26 minutes, 54 seconds Yes I will request Raja Gupta group C4 to answer thanks for this question. we did get a a 27:03 27 minutes, 3 seconds flavor of that uh when when the managing director spoke. So we did have a compression in margin and we we are 27:10 27 minutes, 10 seconds trying to compare that with our sales on production on product sales and that is close to a 1.36% increase in material 27:20 27 minutes, 20 seconds cost and this is coming predominantly about 35% of that or 40% of that is coming from aluminum increase and then 27:28 27 minutes, 28 seconds we have seen a few other topics where strategically we have been spending some consuming some material for our R&D projects because we are getting lot 27:36 27 minutes, 36 seconds suspension orders and also we are getting ready for the upcoming uh legislation and uh there have been some seasonal 27:43 27 minutes, 43 seconds effects where generally we have this um uh benefit in terms of turnover discount and uh in the last year in the same 27:50 27 minutes, 50 seconds quarter we had in the first half this year they have been moved to the second half of the year so there have been some seasonality effects in effect uh I would 27:58 27 minutes, 58 seconds say that close to 40 50% of that is from the commodity side some part of it is the additional consumption due for R&D 28:06 28 minutes, 6 seconds projects and some of it is a seasonality aspect of some ontime effects in the last year same quarter and some of them 28:13 28 minutes, 13 seconds which have been postponed to the uh upcoming quarters in this year. So this is largely the main reason and the other 28:21 28 minutes, 21 seconds aspect is which was also mentioned by the managing director in his uh opening remarks. This is the employee cost. So we have spent uh a bit on the employee 28:30 28 minutes, 30 seconds cost for strategic reasons and this will have a gestation effect uh gestation u uh impact where all these additional 28:38 28 minutes, 38 seconds people in the sourcing in the strategic functions in the R&D function uh these are important for our upcoming growth 28:45 28 minutes, 45 seconds plans and the third one is on the schedule projects in the other expenses we did spend a bit on the consultance cost and associated travel and other uh 28:54 28 minutes, 54 seconds deployment cost of the strategies to reduce the material cost also to increase our aftermarket sales and this weekend this will continue for the next 29:01 29 minutes, 1 second two quarters at least. So we are seeing the bene impact of some of the initiatives which you are taking taking for future growth and also the future 29:09 29 minutes, 9 seconds cost competitors that is impacted this quarter. 29:14 29 minutes, 14 seconds Yeah that's good to know. So we we do we expect that you know uh next financial year we'll be back to uh you know 29:22 29 minutes, 22 seconds historical margin trajectory for the standalone business. Is it fair to assume that or some of these headwinds might no longer be there? 29:29 29 minutes, 29 seconds Yeah. So, so, so we are very very focused on that and uh we'll put all our efforts to improve the the product mix 29:37 29 minutes, 37 seconds also and uh so so so that's clearly our target as we go forward as we believe in only profit growth but I think this raw 29:45 29 minutes, 45 seconds material cost increase and these two special projects uh or as well as our investment in people for the future was 29:52 29 minutes, 52 seconds very very important for us. So here we don't look at you know just the margin percentage we look at the future of the company and and that's and that's very very important for us going forward. 30:03 30 minutes, 3 seconds Yeah. Uh thank you. And uh next question is on our ABS expansion plan. So uh where are we in terms of you know the 30:11 30 minutes, 11 seconds you know if you can remind us of you know the expansion plans and incremental discussion with customer what kind of 30:18 30 minutes, 18 seconds timeline u you are anticipating for the regulation to get implemented. Uh just a quick update on ABS. 30:26 30 minutes, 26 seconds So uh right now we have a capacity of 640,000 which I said we'll reach in quarter four based on the line of sight 30:34 30 minutes, 34 seconds we have on schedules from our customers by quarter 4 of this year. We have ordered uh 1.2 million capacity ABS line 30:43 30 minutes, 43 seconds uh which will be coming which we'll install by April or I would say quarter one of next financial year. on this line 30:52 30 minutes, 52 seconds depending on the guidelines uh of course we believe there was a meeting which took place but it will not be good for me to speculate anything on this call so 31:01 31 minutes, 1 second we expect the guidelines to come in this month and based on that looking at the lead time which is there to I mean 31:10 31 minutes, 10 seconds implement these new guidelines based on that I think the the line which we have ordered uh the the the the capacity I 31:18 31 minutes, 18 seconds mean used on that will depend on that but today definitely we have a line of sight to use that line but uh we'll have 31:26 31 minutes, 26 seconds to see uh that that that what is the timeline which comes under this new guideline and this so and the second 1.2 31:35 31 minutes, 35 seconds million line we will order based on this guideline which we'll get in this month you know so 2.2 million we were very clear to place the orders uh you know 31:43 31 minutes, 43 seconds after we got the draft guidelines so 1.2 million orders already beyond 640,000 and 1.2 2 million we will wait for the 31:51 31 minutes, 51 seconds new guideline but we are talking to to all the OEMs on the ABS and there are not many players so uh so we are very 31:58 31 minutes, 58 seconds very optimistic of this new of this new business for sure going forward okay uh the next question is uh you know 32:07 32 minutes, 7 seconds on the four-wheeler suspension business uh has there been any discussion with customers and what is the initial sense uh we are getting on the four-wheeler 32:16 32 minutes, 16 seconds suspension side yes uh uh I will request Mr. Dr. 32:19 32 minutes, 19 seconds Rajendra Bank, our director to speak on this. 32:23 32 minutes, 23 seconds Yes, thanks for this question. See, you already know we have made some inroads into four-wheeler proprietary products. 32:30 32 minutes, 30 seconds It's been already spoken uh in last couple of industry meetings. Uh suspension is very much on our cards and 32:37 32 minutes, 37 seconds we are very close to getting into one of the OEMs. Now, uh as you know, it's a it's a technology product and OEMs will 32:44 32 minutes, 44 seconds only take it when you prove your competency. We are very close to getting into one OEM major leading OEM of India. 32:51 32 minutes, 51 seconds The second is also in the queue. So as we get closer to it and we get a letter of intent, we will anyway come to know 32:58 32 minutes, 58 seconds about it. But the there is there can be an exciting news in the near future. 33:04 33 minutes, 4 seconds Yeah, that that's good to know. U my next question is for Msimo. uh you know if uh you can give you know outlook for 33:11 33 minutes, 11 seconds the European business uh medium you know medium-term outlook and any impact of this exterior chip issue that uh they 33:19 33 minutes, 19 seconds are anticipating on the production line okay so the the situation in in Europe 33:27 33 minutes, 27 seconds the quarter u you know with an increase of 7.7% in terms of volume in terms of registration but if you analyze the 33:36 33 minutes, 36 seconds production the prodction continues to go down. Second is that in this moment the market is growing only because they are reducing stock with important discount. 33:45 33 minutes, 45 seconds Expectation for the future months is to maintain more or less the stability. In this situation as as endurance we are 33:51 33 minutes, 51 seconds performing align compared to the market with an increase of 7.8% 8% without surf compared to the previous year and this 33:59 33 minutes, 59 seconds is not stop as you can imagine but is more production compared to the previous year and we continues to be more or less optimistic for the for the future to cor 34:07 34 minutes, 7 seconds because the expectation is to maintain stability everybody in Europe we are waiting the position of the government 34:14 34 minutes, 14 seconds for the new rules of the green deal in June 2026 and from my point of view till the data the situation will remain more 34:22 34 minutes, 22 seconds or less stable. Speaking about the situation of the shortage of confidence and so on in this moment no particular issue from our 34:31 34 minutes, 31 seconds customer we receive official position already by the langis and also baging group more or less 50% of our customer 34:40 34 minutes, 40 seconds portfolio so at this moment we don't see particular problem that's good to know uh that's it for my side thank you 34:48 34 minutes, 48 seconds thank you thank you a reminder to all the participants 34:55 34 minutes, 55 seconds You may press star and one to ask a question. 35:00 35 minutes The next question is from the line of s from simple. Please go ahead. Uh yeah, hi. Thanks for the opportunity. 35:08 35 minutes, 8 seconds Just couple of questions. Uh purpose of the subscription part. Uh you talked about getting some of us. Uh so is it 35:19 35 minutes, 19 seconds more into the new technology uh areas like the active suspension or active or uh you know it's more on the mass uh you 35:28 35 minutes, 28 seconds know tech side uh so that is one uh and a later question there is you know if you see the landscape right now uh 35:36 35 minutes, 36 seconds you're seeing the marketing being a two player market there's a good amount of uh competition 35:46 35 minutes, 46 seconds of pricing you know players not earning But you know actually you know actually your voice is 35:54 35 minutes, 54 seconds not very clear you know so cannot understand everything you're saying the first question we I mean understood was the technology which you will use in 36:02 36 minutes, 2 seconds suspension whether semi-active active or a normal technology and the second question we are not clear what you asking the second question 36:11 36 minutes, 11 seconds yeah yeah yeah sure let's take one by one can your first question in a short way so that we really understand exactly. 36:21 36 minutes, 21 seconds Yeah, sure. So what is uh what technology areas uh you know the business we are thinking for in for and 36:28 36 minutes, 28 seconds how should one look at the uh margin structure in given the central density is very high 36:35 36 minutes, 35 seconds actually not able to understand you know I'm sorry it's not clear did anybody 36:44 36 minutes, 44 seconds sorry to interrupt in between uh Mr. VJ, can you please speak in the handset mode? Yeah, I'm already on handset mode. 36:55 36 minutes, 55 seconds Sorry for that because if you don't understand the question, you may not get the right answer. 37:00 37 minutes No problem. If you want, I can repeat you know. 37:08 37 minutes, 8 seconds So uh what technology you know we are picking for a business in suspension and second is uh you know the corporate 37:15 37 minutes, 15 seconds industry is quite high and there are players who are you know quoting businesses at midnight margins or low 37:23 37 minutes, 23 seconds margin. So how should we understand profitability you know in this segment for us he's asking competition density 37:32 37 minutes, 32 seconds and with competition quoting lower prices how do we see the profitability in this business? Yeah. Uh let me tell you the question is very good. Um it's a 37:42 37 minutes, 42 seconds tough business to get into. Let me honestly admit that. Uh we are a late entrance rather we have not entered the 37:49 37 minutes, 49 seconds four-wheeler suspension as yet. There are already established pairs in the market. But as you know we always try to 37:57 37 minutes, 57 seconds give best value to our customers by way of the frugal technology. We as we told you this is the last time we already 38:05 38 minutes, 5 seconds have a technology partner from Korea who is very formidable and we feel their technology will be highly suited for the 38:13 38 minutes, 13 seconds Indian smaller cars especially the small size cars and uh we will definitely bring some value. Our engineering is 38:21 38 minutes, 21 seconds also equally strong in suspension as you know we are marketed in two wheelers. So there will be a lot of horizontal deployment from the learning of two 38:28 38 minutes, 28 seconds dealers and uh we are pretty sure that we will crack into certain uh major markets major customers in the passenger 38:37 38 minutes, 37 seconds of vehicles and also make decent kind of you know the profitable uh um 38:44 38 minutes, 44 seconds proposition to the uh to the company. So we are confident about it. 38:50 38 minutes, 50 seconds Okay. Second question is on the assessment you know you talked about inverted fund what will be the market 38:59 38 minutes, 59 seconds share there you know just to get a perspective and what is the adoption we are seeing in the industry 39:05 39 minutes, 5 seconds yeah so u uh I don't to be honest I would not know the market share 39:12 39 minutes, 12 seconds but definitely it is uh I mean know it is a high majority I can say that uh I don't have that but I know on suspension 39:21 39 minutes, 21 seconds uh that you know in the front fork we I think at 43% of the market and in shock absorbers we are 37% of the 39:28 39 minutes, 28 seconds market as a quarter two sorry 44 in quarter 39:35 39 minutes, 35 seconds but the inverted core would be higher inverted core is definitely higher because there are very few players in this he has a first advantage with our 39:45 39 minutes, 45 seconds technology with KTM in 2008 and uh like I said we are also one is we 39:52 39 minutes, 52 seconds have uh Bajage auto of course also increasing you know it requirement as 39:58 39 minutes, 58 seconds well as we are seeing uh also u you know I said we are starting with Hero Motor Pop uh as as well as with a Chinese OEM 40:07 40 minutes, 7 seconds in quarter 1 FI27 and and we are in touch with almost every OAN on this inverted 40:16 40 minutes, 16 seconds okay uh last question on the solar have in my hand. Uh he may talk about us talking to further 40:24 40 minutes, 24 seconds large OEMs. Uh any color you can give in what stage you know the you know the 40:32 40 minutes, 32 seconds discussions are and how big this business can be for us in like say three or four years. 40:38 40 minutes, 38 seconds Okay. So this I think uh I think let me reply back. Okay. So this is relatively a new addition to our portfolio and um 40:47 40 minutes, 47 seconds as uh two or three uh investor calls before we already declare that we are going to get into it and the good news 40:55 40 minutes, 55 seconds is we already started uh bulk supplies to this market um as one of the fastest 41:02 41 minutes, 2 seconds entrance into this segment. We know there's a competition in this segment as well but I think the way we have gotten into it has been well appreciated by the 41:10 41 minutes, 10 seconds customer that confidence has gone up. So we will grow this business very rapidly. 41:15 41 minutes, 15 seconds This is point number one. Um last time I told the market potential is huge without telling any floating any 41:24 41 minutes, 24 seconds number I can tell you it can be a very significant part of our total business. 41:29 41 minutes, 29 seconds It all depends upon how well we are able to garner this customer suppose and there are multiple players in this one 41:37 41 minutes, 37 seconds is already um is a Spanish company who is already with us now we are going to get into another two companies we are in 41:45 41 minutes, 45 seconds deep discussions if that happens the size of this business could be very significant so over five year period can it be like 41:53 41 minutes, 53 seconds a 10% or 15% of a business does it have that kind of potential to be you know uh 42:01 42 minutes, 1 second for total business no no I don't want to say any number at this stage it's a bit too premature but I can only say uh it 42:08 42 minutes, 8 seconds the potential is huge okay come back thank you yes thank you 42:18 42 minutes, 18 seconds thank you next question is from the line of Rajit Agarwan from Investment Managers please go ahead uh good morning sir Am I audible? 42:30 42 minutes, 30 seconds Yes. Yes. Can I hear you clearly? 42:33 42 minutes, 33 seconds Okay. Thank you. Uh this question is related to the European business uh and also on the overall margins. So the 42:40 42 minutes, 40 seconds European business sequentially has seen a decline in turnover where whereas the last quarter uh there was an 42:48 42 minutes, 48 seconds industry-wide degrowth this quarter industry has actually grown and despite that eventually our numbers are lower. 42:56 42 minutes, 56 seconds At the same time the margins seem to be higher. Now one the question on how do we read these numbers. Second is if the 43:04 43 minutes, 4 seconds margins of this quarter in the European business are going to be carried forward and overall the consolidated margins 43:11 43 minutes, 11 seconds will be at similar levels as of this quarter. 43:16 43 minutes, 16 seconds Okay. So speaking about the second quarter of the European operation, we close with 88.7 million e per hour 43:24 43 minutes, 24 seconds compared 66.9 million the previous year with an increase of 32.7%. 43:30 43 minutes, 30 seconds In terms of the 15.8 million of 17.10% compared 10.7 million of 16% of the 43:37 43 minutes, 37 seconds previous financial year in terms of net result we grew 36% net profit 3.9 million of e 4.4% 4% 43:47 43 minutes, 47 seconds compared 2.9 million euro the previous year 4.3%. 43:52 43 minutes, 52 seconds This increase in term of turnover aid and net profit also without consider that means that the company view without 44:00 44 minutes consider more or less 6% in terms of 200 and 7% in terms of ATB and 10% in in 44:08 44 minutes, 8 seconds terms of net results. If you compare the this quarter with the previous quarter, the reduction is due only to the normal seasonality of the business in Europe. 44:18 44 minutes, 18 seconds In fact, we grew we close with 88 as I told you.7 million to another compared 44:26 44 minutes, 26 seconds 13 million view of the previous quarter of the previous quarter of the quart quarter 1 2023 26 but the market go down 44:35 44 minutes, 35 seconds 13.3% compared to the previous quarter in the European um union we registered 44:43 44 minutes, 43 seconds 2.5 million of this quarter compared 2.9 of the previous quarter this is the normality in Europe because in the second quarter of the financial year 44:51 44 minutes, 51 seconds there is the amount of and it is amount of holiday in Europe this is the normality you can't compare compared to the the first quarter this is the 44:59 44 minutes, 59 seconds normality also in the past you can check again no that's fine so thank thanks a lot for the clarification 45:06 45 minutes, 6 seconds uh and this the followup question was on the margins so the margins of this quarter are they going to continue for the European business from I mean will 45:15 45 minutes, 15 seconds the trend be We we will try to do the best for sure. 45:19 45 minutes, 19 seconds This is our target. We are growing uh more than 47% in ter compared to the previous year of 45:28 45 minutes, 28 seconds financial year. The beta reach 17. We are very happy if you consider that now nobody speak about energy but please 45:36 45 minutes, 36 seconds consider that we continues to have three times the energy cost and the gas compared situation. So from my point of 45:43 45 minutes, 43 seconds view the performance is uh really really good and the expectation for the future mass is to maintain and to improve the profitability as we have done in the past for sure. 45:53 45 minutes, 53 seconds Right. The performance is much appreciated sir and thanks for the clarification. Just one small followup question and the presentation did mention that there were certain tooling 46:00 46 minutes orders in this quarter. So if those were to be removed then what would be the margins in the European business? 46:07 46 minutes, 7 seconds Because tooling orders I'm assuming are generally higher margin. Uh so it depends because in the tooling you 46:14 46 minutes, 14 seconds can have from 10% to 40% of pretty margin. It depends if you're talking about tooling of foundry or tooling for 46:22 46 minutes, 22 seconds the machine because when you start when you do important investment you receive from 15 to 20% of contribution from the 46:31 46 minutes, 31 seconds customer but in we don't consider the profitability of the tooling we consider only the industrial profitability in the analysis it's correct to say that in the 46:40 46 minutes, 40 seconds previous financial year in the second quarter we have had an important impact in terms of turnover of touring and if you offset is that the the the current 46:49 46 minutes, 49 seconds increase of turnover compared to the previous year was has been 7.8% compared to market that grew 7.5%. This 46:57 46 minutes, 57 seconds is the reason why we are saying that we are growing more than compared to the market. And on top of this please our increase of to is real production as you 47:06 47 minutes, 6 seconds can imagine for the registration as I told you before the market is only the socking the uh uh the dealer uh 47:13 47 minutes, 13 seconds situation because the production continues to go down only to give you an idea the German market the major market in term of production in Europe lost 47:22 47 minutes, 22 seconds more or less 4% of production compared to the previous year in terms of compared to the previous year in the quarter 47:31 47 minutes, 31 seconds Right sir. Thank thanks a lot. Uh if if I may persist again I'm sorry for followup. Can you quantify the amount of 47:38 47 minutes, 38 seconds tooling orders in terms of euro or an hour? 47:43 47 minutes, 43 seconds Existing would be something like 14 million. 47:47 47 minutes, 47 seconds No I'm sorry. I'm no the revenue from tooling in Q2.9. 48:01 48 minutes, 1 second 1.9 million compared to the previous quarter. 48:06 48 minutes, 6 seconds All right. Okay sir. Fine. Thank you. Uh can may I ask a question on related to the capital expenditure of the group as a whole? What what will be the capex in Q3 and Q4? 48:18 48 minutes, 18 seconds Speaking about the Europe more or less the is 20 million. Our expectation is to reach 30 32 million euro in the total financial year. 48:29 48 minutes, 29 seconds All right. 48:30 48 minutes, 30 seconds And for India in the India standalone business uh we may be closing the year with close to 48:38 48 minutes, 38 seconds 750 800 crores and we already have done 450 crores in the first half. 48:43 48 minutes, 43 seconds So there'll be an increment to 300 to 350 crores. 48:47 48 minutes, 47 seconds Yes. Yes. Three new plants you know which are coming up. Right. Right. 48:54 48 minutes, 54 seconds That's the reason. 48:57 48 minutes, 57 seconds Correct. Correct. Thank you sir. I'll get that in the queue. 49:05 49 minutes, 5 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is 49:13 49 minutes, 13 seconds from the line of Mr. Nishi Tillan from Access Capital Limited. Please go ahead. 49:19 49 minutes, 19 seconds Yeah, thank you. Uh two questions from my side. Uh first on the India business. 49:23 49 minutes, 23 seconds Uh on the four-wheeler side, uh Mr. said uh if you look at uh this business um we have been winning a lot of orders but 49:31 49 minutes, 31 seconds our revenue has been stuck at around 5 to 6% of total revenues. So just wanted to get a sense based on whatever orders 49:38 49 minutes, 38 seconds that we have won so far how do you see revenue scaling up in this business over the next uh over the next two years? 49:46 49 minutes, 46 seconds Will the contribution from this business go up meaningfully from here on? And my second question is on uh Europe. in Europe. Uh if I remember Maximo earlier 49:55 49 minutes, 55 seconds you used to talk about that uh given that uh lot of EV business is coming in where investments initially will be 50:03 50 minutes, 3 seconds higher right so we should start looking at uh EIT margin and if you look at your depreciation expenses have gone up substantially is is it because of that 50:11 50 minutes, 11 seconds same EV trend where where the margin will be higher but since investment has been higher initially so the depreciation will go up or we should 50:20 50 minutes, 20 seconds look at it different way. Thank you so much. 50:24 50 minutes, 24 seconds Okay. First of all from from Europe, I confirm to you that the increase of depreciation in in the quarter is due to the startup of the important investment 50:33 50 minutes, 33 seconds we have done for Telantis and for Bag and there will be another step of increase of deforestation in the next quarter for the startup of the the four 50:42 50 minutes, 42 seconds new line for the 1.5 liter ques of this is due to the important investment we have done in the in the in the past. But 50:50 50 minutes, 50 seconds from my point of view, it's not an issue because we are growing more or less 1.6% in terms of cash profit. And so if we 50:57 50 minutes, 57 seconds are able to increase the bid in the same way of the increase of the uh deprecation, it means that the payback 51:05 51 minutes, 5 seconds of the investment is aligned with our expectation. So in this moment I don't see any kind of problem. 51:12 51 minutes, 12 seconds Sorry just one follow up here. So you mentioned that the depreciation is increasing because of some startup cost. 51:17 51 minutes, 17 seconds So is it is it going to be the normal run rate or you will see uh deprecation coming off uh beyond uh once the plan starts or it's going to stay around the similar level. 51:26 51 minutes, 26 seconds No no it's a normal crime up is okay thank you. Yeah. Uh so so as far as 51:34 51 minutes, 34 seconds India is concerned so no uh you know like I said that we have done we have won since FI22 3,953 51:44 51 minutes, 44 seconds K of business out of which we we had realized around 1440 K last year and 51:52 51 minutes, 52 seconds this year we'll do about 1160 crores of this business and the balance will be in the next two years. You know I said we 51:59 51 minutes, 59 seconds will reach a peak of 3500 cranium in FI28 versus 3,953. That's the line of sight we see uh which is there. I also 52:08 52 minutes, 8 seconds said we will win further more than rupes 1,500 crores against the 4,200 crores we have of RFQS. This is the line of sight 52:16 52 minutes, 16 seconds which we have. We are also winning maybe for Oric Shendra plant. If you see the 52:24 52 minutes, 24 seconds uh if you see the casting orders for electric vehicles, we've already won 456 kores from from in fact five five customers or from four customers. 52:35 52 minutes, 35 seconds Apart from that we have also won another 355 kores of orders this year which is for four-wheeler castings. You know we 52:43 52 minutes, 43 seconds also won the drive shaft riytory business of about 24 Kuman last year. 52:48 52 minutes, 48 seconds Now we run the drum brace order which is there and we are really focusing on growth on the proprietary business which is taking a bit of time but definitely 52:56 52 minutes, 56 seconds step by step like I mentioned earlier also that uh like in two measures gradually build up the business we plan 53:05 53 minutes, 5 seconds to do so with our strength on technology and and on cost our strength on cost you know so so so we are we are in a good 53:13 53 minutes, 13 seconds place I'm not worried about the growth I think we have to focus more on product mix and port controls and that's why we are trying to see that we take more and 53:22 53 minutes, 22 seconds more profitable business in the future you know so so I'm very very confident of that you know the way things are going 53:30 53 minutes, 30 seconds okay thank you so much thank you the next question is from the line of Janesh Kanti from Oaklane 53:39 53 minutes, 39 seconds capital please go ahead uh hi mam good morning yes sir good morning good morning hi 53:48 53 minutes, 48 seconds Uh and then question on Maxwell. Uh given that we are broad gazing that business from pure play DNS now to also 53:56 53 minutes, 56 seconds having other electronic components. Uh are we also thinking of broad gazing beyond uh E2 54:04 54 minutes, 4 seconds broadbasing beyond auto given opportunities which are opening up in energy storage and other areas. 54:11 54 minutes, 11 seconds Yes sir. So we are definitely see one is the forward integration we have done into battery packs you know that's a big move you know you know and uh that is 54:20 54 minutes, 20 seconds going to start in January 2026 with a major OEM EV customer but apart from that I think what is happening in the 54:28 54 minutes, 28 seconds non auto space everybody want everybody wants to see our cylindrical assembly 54:35 54 minutes, 35 seconds line of battery packs running okay and uh that will help us to get into the 54:42 54 minutes, 42 seconds non-auto because when they see such a good automated line we have imported this from China know it's already come it'll be installed commissioned by by 54:51 54 minutes, 51 seconds next month then see is believing so you know most of the people have told us you please start running you please see it and then we get confidence you know 54:59 54 minutes, 59 seconds because see this these kind of projects are still new in India you know I mean EVs is still a new area battery packs is 55:07 55 minutes, 7 seconds maybe six seven eight years because EV business is really caught up postco I would say you know so still initial 55:15 55 minutes, 15 seconds space but very very confident of our technology of our cost competitiveness whether it's on BMS whether it's on 55:23 55 minutes, 23 seconds battery pack I mentioned about our innovation sale how we are able to value engineer our products both on the BMS as 55:30 55 minutes, 30 seconds well as battery pack space our sourcing is very strong you know so we are very confident you know of uh of really 55:37 55 minutes, 37 seconds scaling up this business in future and and uh and the value especially I mean I would say the the value of the business 55:44 55 minutes, 44 seconds on battery pack is huge as you know you know so we can really scale up our sales in future I mean 300 cr is just one 55:52 55 minutes, 52 seconds platform right so so this is not happening and as we talk there's a lot more new business we 56:00 56 minutes are talking about you know got it and the uh so battery pack on 56:08 56 minutes, 8 seconds obviously will get benefits from uh the start of assembly operations. Uh but BMS 56:14 56 minutes, 14 seconds for uh uh energy storage side uh uh is our product ready or how far away we 56:21 56 minutes, 21 seconds from product uh preparedness as well as uh getting uh orders. 56:27 56 minutes, 27 seconds See uh we we definitely know the I mean we do what what type of BMS we have to offer. R&D sale is fully aware of it. 56:39 56 minutes, 39 seconds It's question of just getting the business you know we know what kind of equipments we have to order the product 56:47 56 minutes, 47 seconds the cost competitiveness we're fully aware the question is to first is to get the business. So so the main target is 56:55 56 minutes, 55 seconds focus is not on the technology side whether it's a process or the product the main focus is to get the business you know. 57:04 57 minutes, 4 seconds Right. Got it. Got it. That's it for all my thanks. Thanks for the question. Thank you. 57:10 57 minutes, 10 seconds Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for closing comments. 57:20 57 minutes, 20 seconds No. So, I just want to say that uh we at endurance are fully committed to profitable growth, sales growth. We have 57:28 57 minutes, 28 seconds done that since the IPO in October 2016 and we continue to do do so. There'll be a huge focus on of course technology 57:35 57 minutes, 35 seconds process and product huge focus on financial improvement and uh so this will always be our focus. So just want to say that thank you. 57:48 57 minutes, 48 seconds Thank you very much sir. On behalf of Access Capital Limited that concludes this conference. Thank you for joining us today and you may now disconnect your lines.