Exide Industries Ltd — Q4 FY26

Exide Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=mAtf8cAJmzA Published: 7 days ago

0:00 Ladies and gentlemen, good day and welcome to the Exide Industries Q4 FY26 earnings conference call hosted by 0:09 9 seconds Investic Capital Services. As a reminder, all participant lines will be in the listen only mode and there will 0:16 16 seconds be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:28 28 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Adita Javar from Invested Capital Services. 0:39 39 seconds Thank you and over to you sir. 0:41 41 seconds Yeah, thank you. Good afternoon to you all. From excite industries we have with us MD and CEO Mr. Aik, director of 0:49 49 seconds finance and CFO Mr. Mahus Kumar Agar Bahal Mr. Pravin Saraf MD and CEO of Xside Energy Solutions uh President 0:58 58 seconds Legal and Corporate affairs and company secretary Mr. Chitinder Kumar and Mr. 1:01 1 minute, 1 second Brashant Sarasut head of investor relations before we proceed there is a disclaimer for the call few statements made by the company's management in the 1:10 1 minute, 10 seconds call may be forward-looking in nature and we request you to refer to the disclaimer and earnings presentation for further details. We will start the call 1:17 1 minute, 17 seconds with a brief opening remark from the management and followed by Q&A session. 1:21 1 minute, 21 seconds I would now like to hand over the call to Mr. A Roy for opening remarks. Thank you and over to you sir. 1:29 1 minute, 29 seconds Thank you Adita. 1:31 1 minute, 31 seconds Good afternoon. Good afternoon ladies and gentlemen and a warm welcome to you all to the excite earnings call. 1:39 1 minute, 39 seconds Before taking you through the key highlights of our performance, I would like to talk about some of the macro and industry drivers that shaped our 1:47 1 minute, 47 seconds operating environment in the last quarter. 1:50 1 minute, 50 seconds Globally, the West Asia conflict continues to be an ongoing threat with regard to availability and pricing of 1:57 1 minute, 57 seconds commodities such as LPG, sulfuric acid and plastics. The situation is quite alarming. 2:06 2 minutes, 6 seconds Rapidly increasing commodity rates coupled with rupee depreciation continue to pressurize our input costs. 2:14 2 minutes, 14 seconds But in contrast, the Indian demand situation remained favorable. Low inflation rates, low interest rates and 2:21 2 minutes, 21 seconds the consequence of GST 2.0 reforms increased in consumers affordability especially in the second half of FY26. 2:30 2 minutes, 30 seconds Rural India experienced strong broad-based revival as well driven by rising income, upbeat sentiment and infrastructure development. 2:40 2 minutes, 40 seconds Coming to the company's performance during quarter 4, nearly 92% of the business has grown by about 16%. 2:50 2 minutes, 50 seconds And that's basically includes our entire domestic business minus telecom. 2:55 2 minutes, 55 seconds All key verticals grew double digits headlined by two-wheer and four-wheeler OEM then home UPS solar two-heer and 3:06 3 minutes, 6 seconds four-wheeler replacement market as well as industrial infrastructure business excluding telecom 3:13 3 minutes, 13 seconds remaining 8% of the business witnessed a strong decline in revenues exports being one of them which was subdued by the 3:21 3 minutes, 21 seconds given geopolitical situation and telecom and Shark continues to shift towards lithium ion technology. 3:29 3 minutes, 29 seconds This translated to about 9.4% year-on-year overall revenue growth. And in quarter 4, we generated our highest ever quarterly revenue. 3:40 3 minutes, 40 seconds Domestic business sales grew by 12% year-on-year. 3:45 3 minutes, 45 seconds For the full year FY26, the company has delivered 4.1% year-on-year revenue growth. Again 3:53 3 minutes, 53 seconds nearly 92% of the business grew by double digits. 3:57 3 minutes, 57 seconds Uh the domestic business sales uh business grew by about 7 and a half% yearonear for the full year. In quarter 4:05 4 minutes, 5 seconds four the company continued to ramp up production leading to higher capacity utilization, better absorption of fixed cost and positive impact on the bottom line. 4:16 4 minutes, 16 seconds The company was also able to maintain on a sequential quarter basis the IITA margin of 11.7%. 4:23 4 minutes, 23 seconds Boyed by strong volume growth, improved product mix and better realization 4:30 4 minutes, 30 seconds which was also helped a lot by lowering our warranty costs and benefiting and benefits acrewing out of our manufacturing excellence projects. 4:39 4 minutes, 39 seconds All the above efforts resulted in expanding the IDIA margin yearonar by nearly 50 basis points. 4:48 4 minutes, 48 seconds The GST 2.0 le demand surge continued in Q4 as autoem business recorded its second consecutive quarter of 25% plus 4:57 4 minutes, 57 seconds year-on-year growth. Also hitting its highest ever quarterly revenue breaking the mark set in quarter 3. 5:05 5 minutes, 5 seconds Home UPS business recorded its highest ever quarter four sales uplifted by the a little early onset of summer. 5:15 5 minutes, 15 seconds Solar vertical returned to doubledigit growth and I'm happy to inform you that we incubated and nurtured this solar 5:22 5 minutes, 22 seconds vertical for the last few years and to this year they have crossed the thousand crer and four-wheeler replacement demand 5:31 5 minutes, 31 seconds remained robust as it continued in its mid-tense growth rates as in the past quarters industrial infrastructure excluding 5:40 5 minutes, 40 seconds telecom continued its strong performance maintaining doubledigit year-on-year growth. grow order inflow and execution remain healthy across sectors like 5:49 5 minutes, 49 seconds railways, motive power and industrial UPS. 5:54 5 minutes, 54 seconds Geopolitical tensions continue to impact exports business. We expect these uncertainties to remain for at least in the first half of next year of this current year. 6:06 6 minutes, 6 seconds Uh we have been briefing you for the last couple of years on our new oneide operating model. So a few comments on that. 6:15 6 minutes, 15 seconds The company transformed from a strategic business unitled model to a one side operating model in FY25. 6:23 6 minutes, 23 seconds This was intended to recalibrate our go-to market approach across vertical business verticals. 6:30 6 minutes, 30 seconds During the last year FY26, this operating model has enabled the company to be more agile and customer focused 6:37 6 minutes, 37 seconds while bringing synergies across the organization reflecting in the overall company performance. 6:43 6 minutes, 43 seconds As we enter the next fiscal years, the outlook for the lead assets business remains positive across most business uh vertical. However, we remain cautiously 6:52 6 minutes, 52 seconds optimistic and will constantly watch and monitor the domestic demand situation in view of the expected inflationary 6:59 6 minutes, 59 seconds economy if at all. The company remains focused on tight cost control despite the global headwinds. 7:07 7 minutes, 7 seconds I believe that excite with its advanced product portfolio, panindia distribution network and a strong brand recall will 7:14 7 minutes, 14 seconds continue to benefit from growth opportunities. 7:18 7 minutes, 18 seconds I will move on to our lithium ion cell manufacturing project where we have invested 600 crores in quarter 4 and 7:26 7 minutes, 26 seconds about 1,500 cr in FY26 in the full year. With this the total equity investment made in Exide Energy, 7:35 7 minutes, 35 seconds our subsidiary till date stands at 4,82 crores. 7:40 7 minutes, 40 seconds Our cylindrical lines are expected to start customer sample delivery by around this month onwards while the prismatic 7:48 7 minutes, 48 seconds line will be initiating product trials shortly thereafter. 7:53 7 minutes, 53 seconds Meanwhile, the company continues to engage with various OEMs of two-wheeler, three-wheeler, and four-wheeler and stationary energy providers to build the offic across key and consumer markets. 8:05 8 minutes, 5 seconds With this, I close my opening remarks. 8:07 8 minutes, 7 seconds We will now be happy to take your questions going forward. 8:12 8 minutes, 12 seconds Thank you very much. We will now begin with a question and answer session. 8:17 8 minutes, 17 seconds Anyone who wishes to ask a question may press star and then one on the touchstone telephone. 8:24 8 minutes, 24 seconds If you wish to remove yourself from the question queue, you may press star and then two. Participants, you are 8:31 8 minutes, 31 seconds requested to use answers while asking a question. 8:35 8 minutes, 35 seconds Ladies and gentlemen, we will wait for a moment while the question sends. 8:43 8 minutes, 43 seconds A reminder to all the participants, you may press star and then one to ask a question. 8:52 8 minutes, 52 seconds We will take the first question from the line of van Singh from Morgan Stanley. Please go ahead. 9:00 9 minutes Uh hi team thanks for the opportunity. 9:02 9 minutes, 2 seconds Uh in the opening remark we talked about um you know 8% of the business declining which is telecom and uh exports. Fair to 9:10 9 minutes, 10 seconds say that exports will be around 5% of top line and telecom around three. Will will that be the breakup? 9:20 9 minutes, 20 seconds Yes, you are right in the ballpark. 9:23 9 minutes, 23 seconds And uh you know which leads 3% uh 3% would also include the bit of irriia business. 9:30 9 minutes, 30 seconds Okay. Because uh that brings me to my next question here. When you look at next year on this core business, uh 9:37 9 minutes, 37 seconds exports will have volatility for the first half but will recover. So then uh we should be actually quite set for a much better topline growth than this year next year, right? 9:48 9 minutes, 48 seconds Because I would like to believe the positive side is when the baseline is now low for these businesses because we have declined and next year we see we 9:58 9 minutes, 58 seconds have a strategy in place given if the you know uh global geopolitical tensions 10:04 10 minutes, 4 seconds ease out a little bit. uh I see a uh substantial upside for the exports because our main export markets are also 10:12 10 minutes, 12 seconds in uh western Europe and uh US where we were targeting as a strategy. So exports 10:19 10 minutes, 19 seconds was already doing was already 8% of our revenue a couple of years back. So we came down to 5%. So I think there's a 10:27 10 minutes, 27 seconds good chance to increase our share of exports uh and therefore the incremental revenue and the o overall topline growth also 10:35 10 minutes, 35 seconds next year uh should improve from this year right because all the other businesses commentary that you gave was quite uh strong. 10:42 10 minutes, 42 seconds Yes. Yes. The exits have been quite strong. Q3, Q4 has been quite strong and I personally believe that and we as you 10:51 10 minutes, 51 seconds you will recall we were little pulled down because of the Q2 wash out when this GST announcement was made in the month of mid August and it was effective 11:00 11 minutes from 22nd September if you recall. So that one and a half two months we almost had a wash out because there was no offtech from our distribution network. 11:10 11 minutes, 10 seconds So other than Q2 I think all three quarters uh we have been doing well and also riding on the demand wave. I would 11:17 11 minutes, 17 seconds still believe that the core core business at this uh situation has a potential to do at least a high single 11:24 11 minutes, 24 seconds digit to uh double digit growth. Today we are domestic we are uh even despite the telecom decline domestic we are 12 11:33 11 minutes, 33 seconds and a half% in the quarter. So I would like to believe that high single to double digit growth for the overall core business is possible. 11:43 11 minutes, 43 seconds And so secondly on the new energy business uh I think in the press release we had added that for cylindrical the trial runs have started. Prismatic will 11:51 11 minutes, 51 seconds be few quarters uh down the line. Uh so to that extent is prismatic also for this year only. Um the 11:59 11 minutes, 59 seconds yes yes prismatic is uh the LSP line and uh this is also scheduled for this year. 12:06 12 minutes, 6 seconds The difference between a cylindrical line and prismatic would be that uh you know the start of revenue will be 12:14 12 minutes, 14 seconds quicker in uh LFP because that product will not go through so much of validation and customeration like the 12:22 12 minutes, 22 seconds two-heer batteries in cylindrical. So though the production of cylindrical will start first but possibly the revenue stream will come first from the prismatic lines. 12:31 12 minutes, 31 seconds Yeah. 12:32 12 minutes, 32 seconds And could you talk a little bit about industrial side of the opportunity because globally what we've seen that that opportunity PI has surprised on the 12:40 12 minutes, 40 seconds positive side and margins are also actually better. Uh so when you talk about when you think about data centers 12:47 12 minutes, 47 seconds ESS uh in your view the 6 gawatt uh capacity allocation what could be industrial share in that um how is the 12:55 12 minutes, 55 seconds reception of clients on the industrial side. 12:58 12 minutes, 58 seconds See Ben uh you you know we have two lines of LFP about LFP prismatic which is meant for 13:06 13 minutes, 6 seconds industrial stationary storage applications. I mean the designs you know every cell what we are going to manufacture will have multiple use 13:15 13 minutes, 15 seconds cases. It could be both automotive as well as stationary depends on the the form factory is prismatic in any case. 13:21 13 minutes, 21 seconds So we are the the cell formats which we are uh will be producing in line three and line four. The prismatic lines will 13:28 13 minutes, 28 seconds also cater to the stationary storage use cases. You have heard I have made in the opening commentary uh that the telecom 13:35 13 minutes, 35 seconds is shifting towards uh lithium ion. Um irria is shifting towards lithium ion 13:43 13 minutes, 43 seconds and there are some other uh use cases shifting towards lithium ion. Now in many cases we are already present with our packed business only thing that we 13:51 13 minutes, 51 seconds are doing it through imported sales. We will just switch over to our own made in India sales. That's the plan. 13:58 13 minutes, 58 seconds And so just lastly on the commodity in all the sorry to interrupt in between I'll come back in between. Yeah. Yeah. Thanks G. 14:06 14 minutes, 6 seconds Thanks. 14:09 14 minutes, 9 seconds Thank you. Going to take the next question from the lineup to Pashankar NG from Aendas Park. Please go ahead. 14:17 14 minutes, 17 seconds Uh good afternoon and thank you for the opportunity. Uh my first question will be on the uh commodity cost. Just wanted you to get a sense around the extent of 14:25 14 minutes, 25 seconds impact what we have seen in fourth quarter and uh what sort of escalation is anticipated in the first quarter of 14:32 14 minutes, 32 seconds FI27 considering the initial comments and uh continuation to the question is that uh what would be the extent of price hikes taken in the aftermarket and 14:41 14 minutes, 41 seconds uh the expectation on further price hikes going ahead. Thank you. Thank you for the question. 14:49 14 minutes, 49 seconds So first question on the commodity situation. Our impact on material cost 14:55 14 minutes, 55 seconds uh for quarter 4 was uh roughly net net impact was 150 uh crores. I would say a 15:03 15 minutes, 3 seconds negative impact. So it has come down uh by about the gross margin if you see has come down by about 90 basis points. 15:12 15 minutes, 12 seconds Though we have been able to maintain our uh able to improve our IIDA but even if you see quarteron quarter movement the 15:19 15 minutes, 19 seconds gross margin has uh come down from let's say it was in Q3 it was 31.6 six and uh 15:28 15 minutes, 28 seconds in uh Q4 in the last quarter it was 30.1 but despite that we have been able to 15:35 15 minutes, 35 seconds maintain our AIDA uh sequentially at 11.7% because of our tight controls on the other cost elements we have been very uh 15:45 15 minutes, 45 seconds successful in controlling our factory costs as a percentage of sale employee cost you will see that and best part is we could be able to reduce the warranty 15:54 15 minutes, 54 seconds cost as a percentage of sale so these three mostly these three elements have offseted the increase in the commodity cost. Uh 16:03 16 minutes, 3 seconds so therefore we could offset the drop in gross margin through our internal controls. But as long as far as price 16:09 16 minutes, 9 seconds hike is concerned, uh we have started I I think I have mentioned this in the past that in Q3 we did not take a price 16:17 16 minutes, 17 seconds rise consciously because GST revised GST rates were announced and we thought we will pass on the entire benefit to the 16:25 16 minutes, 25 seconds end consumer. But from January onwards we could not sustain the cost inflation of material. Therefore we started taking 16:33 16 minutes, 33 seconds uh price increases uh stage by stage. So January 1st January 1st March 20th March 16:41 16 minutes, 41 seconds I think in three tranches we have taken uh increases which maybe amounts to about let's say uh about 5% 5 to 6% uh 16:50 16 minutes, 50 seconds you know varies on the segment but across all segments in the trade in the afterm market we have taken corrections and even on 1 of April we announced the 16:59 16 minutes, 59 seconds last uh round in April also we took another round of correction so we have been uh trying to uh you know pass on as 17:07 17 minutes, 7 seconds much as possible uh of our commodity inflation and that has also resulted in our resilience uh in quarter 4 margins. 17:18 17 minutes, 18 seconds Got what was the I have I left anything nothing sir I think uh one one followup is that what was the quantum of price 17:26 17 minutes, 26 seconds taken in on April 1st as well can if you can share that it was around 3%. 17:33 17 minutes, 33 seconds All right. And and do you anticipate further hikes coming in given that the commodity inflation is has been uh quite 17:40 17 minutes, 40 seconds sharp. U so just wondering uh you know given the competitive dynamics do we see further prices coming in to pass through 17:48 17 minutes, 48 seconds this inflation. See the I mean right now it's difficult to comment but the leading indicators if you see the April exit prices of commodity 17:58 17 minutes, 58 seconds it is far more than March exit whether you whether it's ste whether it's the sulfur sulfuric acid we are very very 18:05 18 minutes, 5 seconds badly hit the the March the March exit was 58 rupees per kg and April exit is already 74 rupees and just imagine one 18:14 18 minutes, 14 seconds year back it used to be only 15 rupees per kg so 15 to 75 7475 is 5x. So 18:23 18 minutes, 23 seconds obviously we will be watching it and uh going forward we will have to take the price. We have no other option. 18:32 18 minutes, 32 seconds Got it sir. And and with respect to OEM contracts the the escalation comes in with a lag. So what what would be the uh 18:41 18 minutes, 41 seconds time period of that lag and what will be covered? Is it only the lead asset piece which will be covered? Right. So, so the other aspects uh are you negotiating with them to pass this on? 18:51 18 minutes, 51 seconds Yes. Yes, you're right. We have and the good news is that last year also when we were going through this huge uh 18:59 18 minutes, 59 seconds inflation um you know non-laid inflation I would say non-lay inflation on on 19:06 19 minutes, 6 seconds commodities we have uh been able to you know make our customers OEMs agree to a 19:14 19 minutes, 14 seconds certain amount of price increases. We have been successful. They have we have given them evidences that how we are suffering and some of them has been 19:21 19 minutes, 21 seconds extremely uh logical and they gave us price correction last year. So that helped us in the uh fullear performance 19:29 19 minutes, 29 seconds as well as the quarterf performance of autom also. Uh having said that we have again approached them and everybody 19:37 19 minutes, 37 seconds knows this. It's not surprise that uh the commod the way the commodities are growing particularly the commodities which are essential for batteries acids 19:46 19 minutes, 46 seconds plastics LPGs and uh of course currency hitting the lead prices I think we are constantly in touch with the major OEMs 19:54 19 minutes, 54 seconds some of them agreed and some of them the negotiations are on so the lead time is typically two months 20:03 20 minutes, 3 seconds to one 3 months is that is that the right metric need I'll rather say it's a quarter. 20:10 20 minutes, 10 seconds Sure. Understood. That's it from my senator. Thank you for answering my question. Thank you. Thank you. 20:19 20 minutes, 19 seconds Thank you. We will take the next question from the line of Sedhar Pera from Namura. Please go ahead. 20:26 20 minutes, 26 seconds Yeah, thanks for the opportunity sir. Uh sir, first question is on this jet business. Uh we have invested close to 20:33 20 minutes, 33 seconds 4,800 crores till now. How much uh investment do you see uh in the next one or two years uh going ahead uh in this 20:42 20 minutes, 42 seconds business? And uh second is I mean we when we have started uh the trials uh uh 20:49 20 minutes, 49 seconds when we sort of look at the commercial supplies do you think the pricing will be at par with uh the imported or there 20:57 20 minutes, 57 seconds can be uh some premium we can derive and uh how should we think about the learning curve? Where are the yields? Do 21:04 21 minutes, 4 seconds you expect that uh we may be in in the normal uh sort of ease by uh quarter 3 when we start or that may take some time to settle down? 21:14 21 minutes, 14 seconds So let [clears throat] me take the first part of the question and then I will hand over to provin who's on the call to answer about uh pricing and yields. The 21:24 21 minutes, 24 seconds first part is uh Siddhap we have uh already got a board approval and this has been announced in the past of 21:31 21 minutes, 31 seconds investing 1,400 cr in the fiscal year 27 which is a mix of both capex as well as the opex working working capital 21:40 21 minutes, 40 seconds requirement which we have to uh fund. So that's the number for FI27. I think that should be sufficient for phase one. 21:49 21 minutes, 49 seconds we'll see and how it works regarding uh our uh pricing strategy and 21:56 21 minutes, 56 seconds um yields. I I'll request Pravin to take over. Provin? 22:01 22 minutes, 1 second Yeah, thank you. Uh so uh I'll start with the reply to yield. So you're absolutely right the yield is the most 22:08 22 minutes, 8 seconds critical uh uh factor governing the price uh the cost of the cell manufacturing and we uh what is how we 22:16 22 minutes, 16 seconds control and improve the yield is uh we we must have good machines uh paper trend people who is operating the 22:24 22 minutes, 24 seconds machines as well as having the process knowledge and good technology support. 22:27 22 minutes, 27 seconds So you you know that we have uh very good technology support uh from sold and we have uh good machines already uh 22:37 22 minutes, 37 seconds already installed which are very capable. So but what yield will govern is only by experiencing and we learn 22:45 22 minutes, 45 seconds that once we start three shift running and having continuous running then the yield will improve. So it takes time uh but definitely we we will work towards 22:53 22 minutes, 53 seconds it and how much take will be better to once we start the manufacturing then we'll able to exactly predict that how 23:01 23 minutes, 1 second much time it takes. I can only assure that whatever uh required uh things and parameters control yield are present. So 23:08 23 minutes, 8 seconds once we start we'll able to quickly reach to we'll try to reach to the yield level. Uh the the best yield level should be 90% what we should target. 23:16 23 minutes, 16 seconds Coming to the pricing, yes, today uh the raw material uh we are getting all from import from China. So the pricing today 23:25 23 minutes, 25 seconds is definitely will be little higher but what we are targeting is that with yield pl action of the plant with the uh 23:34 23 minutes, 34 seconds maximum utilization more than 85% yield 90%. And with some amount of local action which you already know that a lot 23:42 23 minutes, 42 seconds of local suppliers are coming we will also able to meet the targeted price uh what is the landed price today. So what 23:50 23 minutes, 50 seconds what will help us in achieving this is also if you may be knowing recently there is a [clears throat] change in the VAT structure in China. So for the 23:57 23 minutes, 57 seconds imported uh cells today uh the u there is a 3% increase in the v due to the v structure already implemented and by 24:06 24 minutes, 6 seconds january next year it will be additional 6%. So it will be overall 9% increase will happen. So this will also help us 24:14 24 minutes, 14 seconds parally we are also working with uh uh government to have subsidies and incentives for the localization of raw 24:21 24 minutes, 21 seconds material as well as for manufacturing of cell. So put together our target will be meeting the landed cost of the import itself. 24:31 24 minutes, 31 seconds Thank you. 24:32 24 minutes, 32 seconds Thank you. I think uh the key will be the key will be to also the government has has to also develop this industry locally. There has to be a value for 24:41 24 minutes, 41 seconds making India cell like I have been repeating quarter after quarter that uh we are the first one and making India 24:49 24 minutes, 49 seconds cell has to have its learning curve uh because otherwise nobody else will come up for investment like this if they are not encouraged. So that's also our take. 24:59 24 minutes, 59 seconds Thank you. 25:00 25 minutes Got it. Thank you sir. I'll come back in the queue. 25:05 25 minutes, 5 seconds Thank you. We will take the next question from the lineup. Arvid Sharma from SETI please go ahead. 25:12 25 minutes, 12 seconds Hi Graham sir thank you for taking my question. Um on the lithium and business uh have you seen any I mean any u 25:21 25 minutes, 21 seconds revenue commitment u over past few months uh given the trials supplies have started or are supposed to start. So 25:30 25 minutes, 30 seconds when should the companies actually start seeing revenue acrew from the lithiumion business uh and versus the plans say 25:37 25 minutes, 37 seconds when you launch in 2022 u I remember you had said around 27 to 30 months is a time it takes for operationalization 25:46 25 minutes, 46 seconds uh where are you in that u in in that uh plan right now that first business 25:54 25 minutes, 54 seconds I think uh let's little to bring clarity to the uh question first one is what is your status of revenue flow? That 26:03 26 minutes, 3 seconds simple. So far we have been doing packed business which is around let's say 100 200 crores of module and packed 26:11 26 minutes, 11 seconds businesses which we were doing through imported sales. Now we will be making sales. 26:16 26 minutes, 16 seconds Now regarding start of sell revenue rate, I think uh I already mentioned in the previous question that uh in the 26:24 26 minutes, 24 seconds first question itself that when is likely the revenue to start and uh so it will probably start with the uh LSP 26:31 26 minutes, 31 seconds prismatic line uh because that product does not need so much of uh approvals and things like 26:39 26 minutes, 39 seconds that that use case but as a start of production the NMC cylinder ical line 26:47 26 minutes, 47 seconds will be first which is and we have not started the supplies of sales just to correct you we have completed our 26:54 26 minutes, 54 seconds process validation the sample supplies will start possibly this month end of this month or next month would you like 27:01 27 minutes, 1 second to add on this yeah uh yes sir so we our internal validations for the uh cylindricical cells have been completed and we will 27:09 27 minutes, 9 seconds able to give the cell to our customers in next month uh uh of course as you all know that the custom validation will 27:16 27 minutes, 16 seconds take time because thereation as well as their internal trials at the cell as well as at the pack level and for the prismatic 27:25 27 minutes, 25 seconds cell we are right now we are running the trials for the making the customer samples we are we are targeting by uh 27:33 27 minutes, 33 seconds June and July we can say we want to give the samples for customer valuation got it sir so um it will still be some 27:42 27 minutes, 42 seconds time before there's any significant revenue recognition from in the cell plant. 27:47 27 minutes, 47 seconds See, uh this is uh this will be a material disclosure for us. So, uh be assured that we will uh let you know much in advance our start date officially. 27:58 27 minutes, 58 seconds Sure, sir. Thank you. Sir, uh second question on the core business in the legacy business. Um will it be possible to share the proportion of autos and 28:07 28 minutes, 7 seconds non-autos and the OEM replacement share in the mix? Uh will it be possible? I think this we have uh shared many times 28:14 28 minutes, 14 seconds in the past. Uh auto and non-auto is almost half off roughly or maybe 53 47 28:23 28 minutes, 23 seconds kind of auto is uh OEM and aftermarket put together is about 50%. And the ratio 28:30 28 minutes, 30 seconds between auto replacement and on auto as you know it's standard it's 7030 28:36 28 minutes, 36 seconds plus minus 1%. So yeah thank you so much. That's all from my side. Thanks. Thank you. 28:45 28 minutes, 45 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. 28:56 28 minutes, 56 seconds We will take the next question from the line of Vijay Pandi from Access Capital. Please go ahead. 29:06 29 minutes, 6 seconds Hi sir, thank you for taking my question. There's a couple of questions. 29:11 29 minutes, 11 seconds wanted to check in terms of uh the raw commodity inflation how much uh impact 29:18 29 minutes, 18 seconds are you seeing currently so absolutely can you have to repeat your question I'm afraid you were not very 29:25 29 minutes, 25 seconds clear can you say that again uh is it okay now am I 29:34 29 minutes, 34 seconds better better uh so sir I wanted to check in terms of commodity inflation Uh what's 29:41 29 minutes, 41 seconds sorry to interrupt between uh Vijay, could you please use a handset mode and speak? 29:48 29 minutes, 48 seconds Yeah, there are some background noises coming in. Is it okay now? 29:55 29 minutes, 55 seconds Yes. 29:57 29 minutes, 57 seconds Yeah, I wanted to check uh the commodity inflation of uh the fourth quarter and the first quarter till date. So what has 30:06 30 minutes, 6 seconds been the what is the level of price uh of price increase you I think 30:15 30 minutes, 15 seconds this question we just uh answered a little back I think to vin Singh if you read the transcripts I think we 30:24 30 minutes, 24 seconds have mentioned it already. No no uh sir uh not looking uh not the about the price height the inflation the government. 30:33 30 minutes, 33 seconds Yes yes yes we have mentioned that as well you have mentioned that also exactly what was the impact on the 30:40 30 minutes, 40 seconds material rate impact you have mentioned. Okay. Yeah. 30:45 30 minutes, 45 seconds Okay. Um secondly the the prismat itself so the that validation will take a customer 30:54 30 minutes, 54 seconds validation will take around should we expect around 3 months or is it longer than two to three 31:01 31 minutes, 1 second see prismatic uh sales what we are making is primarily for three wheelers and some stationary applications 31:10 31 minutes, 10 seconds for these applications basically these are either through trade channels or to institutional customers where we are we 31:19 31 minutes, 19 seconds do not have that kind of a homologation process like an autom runs. 31:26 31 minutes, 26 seconds So therefore the time to market will be and the time for revenue will be quicker than auto OEM 31:33 31 minutes, 33 seconds and for cylindricical send it will be around 3 months or I mean depends on the depends on the 31:41 31 minutes, 41 seconds customer because it depends on how much mileage the vehicle will run or they want to run. So but uh yeah around that 31:48 31 minutes, 48 seconds ballpark I think pra Yes. Yes. Uh two to three months. Yes. But of course depends on customer again. 31:55 31 minutes, 55 seconds So we are always also discussing with them but depends on that. Yeah. 32:01 32 minutes, 1 second Okay. Uh thanks to interrupted between I would request you to kindly rejoin the queue again for more questions. 32:13 32 minutes, 13 seconds Thank you. We will take the next question from the line of Adept Jawar from Investic Capital Services. Please go ahead. 32:21 32 minutes, 21 seconds Yeah, thank you for the opportunity sir. 32:23 32 minutes, 23 seconds I think this commodity question is uh you know is quite important in the current context. If you can refresh you 32:31 32 minutes, 31 seconds know that if you look at our bill of material what are the ballpark big commodity you know in terms of percentage exposure 32:38 32 minutes, 38 seconds that we have uh you know the top top three four commodities whether it is lead you know polymer how much percentage of cogs it represents and for 32:48 32 minutes, 48 seconds specific commodity if you can talk about that what is the near-term outlook that you're looking at. 32:55 32 minutes, 55 seconds Okay. So if you uh let's see how much uh we can give you I'll give you both quarteronquarter and yearon-year rises. 33:02 33 minutes, 2 seconds H so first first question I would recommend that for FI26 on a fullear basis that what is 33:11 33 minutes, 11 seconds the breakup of our bill of material in terms of exposure to key big commodities. Look I I think it's perhaps this is uh a 33:20 33 minutes, 20 seconds little not in public domain. All I can say is that our key components is lead, acid and plastic. Okay, mainly the our 33:28 33 minutes, 28 seconds uh bill of material items this covers about 95 96%. 33:33 33 minutes, 33 seconds Lead as a index has been softer year on year but you know in India lead is sold even recycled leads and uh pure leads 33:42 33 minutes, 42 seconds are sold on import parity prices. So uh because the currency has uh softened by 33:48 33 minutes, 48 seconds about 10%. the the reduction in uh LME has been over offseted by the dollar uh rupee depreciation. 33:58 33 minutes, 58 seconds Okay. So we did not get a net net benefit on lead also. Uh so regarding plastics because we use polyropylene 34:07 34 minutes, 7 seconds containers. This is uh this was directly hit in the Q4. Q1 to Q3 was pretty stable but Q4 we got a hit because of 34:16 34 minutes, 16 seconds shortage of crude which is coming to uh India. 34:21 34 minutes, 21 seconds uh sulfuric acid I mean this for the first time we used to buy sulfuric acid for 15 rupees as I said one year back 34:28 34 minutes, 28 seconds sulfur is a byproduct of the uh petrochemical refinary plants right and since the prochemical plants refiners 34:36 34 minutes, 36 seconds are operating at a lower capacity utilization uh because of crude shortage even the generation of sulfur has also come down 34:45 34 minutes, 45 seconds and therefore just to run the business sulfuric acid costs have gone to 75 rupees April exit compared to 15 rupees uh in the beginning of the year. 34:58 34 minutes, 58 seconds So uh yeah sir I mean what what I'm trying to understand sir clearly I think lead 35:06 35 minutes, 6 seconds prices not going up is also a better situation for us in INR terms um and lead might represent more than 50 60% of 35:15 35 minutes, 15 seconds cost and even the polymer prices would be the remaining 20 30%. So what I'm trying to understand that yes sulfur is a has seen a big spike but that is it 35:24 35 minutes, 24 seconds that less it is less than 10% of bomb same I mean we have to go into details there are other alloys which also come 35:33 35 minutes, 33 seconds in play based on seasonal demand are you looking for Q1 outlook or kind of a picture of Q1 or last quarter four 35:41 35 minutes, 41 seconds you know so I mean the outlook I mean if you look at on a blended basis depending upon how much exposure we have because now the Street is worried about you know the commodity inflation. 35:52 35 minutes, 52 seconds Now looking and our exposure is significantly different to commodities as compared to OEM. So we are just trying to understand from FI27 36:00 36 minutes perspective what should we think about commodity inflation and how much price increase would be required to offset that. So, 36:09 36 minutes, 9 seconds so the short answer is this that this year at least quarter on quarter we will 36:16 36 minutes, 16 seconds pass through the non-LE price increases to the customers. 36:21 36 minutes, 21 seconds The lead will be governed by uh lead will be governed by uh the formulas that we have with at least the OEMs and 36:29 36 minutes, 29 seconds industrial customers. But otherwise everything we will try to take price correction because uh at this moment 36:38 36 minutes, 38 seconds uh we believe that our sourcing efficiency is at its best just for business continuity itself. So uh we 36:46 36 minutes, 46 seconds have been successful in passing on in both as I said January, February, March, April 4 months consecutively we could be 36:53 36 minutes, 53 seconds we could able to take price corrections from the market. uh if I do not know the situation of rupee this is a this rupee 37:01 37 minutes, 1 second to dollar is is a is a is a kind of a uncertainty but if it stays at this level then probably even if LME goes 37:09 37 minutes, 9 seconds down we will not get benefit in rupee terms just for your information Adita that till March though LM was 37:18 37 minutes, 18 seconds softer but in April LM has again shot up to 1950 uh so it's really volatile we are 37:24 37 minutes, 24 seconds navigating navigating through uh you know calibrated price increase from the market. 37:32 37 minutes, 32 seconds Yeah, sure. Thank you sir. 37:36 37 minutes, 36 seconds Thank you. We will take the next question from the line of Sham from MLP. Please go ahead. 37:44 37 minutes, 44 seconds Hi sir. Am I audible? Yes please. 37:50 37 minutes, 50 seconds Yeah sir. If you can just help us understand that within the acid consumption, is it only sulfuric acid or are there other type of acid also that we use? 37:59 37 minutes, 59 seconds No, it's sulfuric acid. 38:02 38 minutes, 2 seconds Okay, that's it. That's the only question I had. Thank you so much. 38:09 38 minutes, 9 seconds Thank you. We will take the next question from the line of Vin Samir Desh Pandi from Alpha Peak Investment. Please go ahead. 38:19 38 minutes, 19 seconds Hello sir, good afternoon. Good afternoon. 38:23 38 minutes, 23 seconds Um the results have been quite decent in the current scenario and our dominance in the market share uh 38:33 38 minutes, 33 seconds is really helping us getting good result and the another important thing the first uh to become the first company in 38:41 38 minutes, 41 seconds India to make this lithium ion batteries will be a good uh figure in the cap. But uh as you rightly said uh is the 38:50 38 minutes, 50 seconds government likely to be significantly supportive to the company with these uh 38:57 38 minutes, 57 seconds benefits or incentives like PLI or any other incentives because otherwise the imports are going to hurt with the rupee depreciation. 39:07 39 minutes, 7 seconds So what is uh the status on that? So uh imports are going to be expensive. That's what you meant. 39:15 39 minutes, 15 seconds Yes. Yes, precisely there are two parts of it. One is of course government has to develop this uh industry and uh you know give a 39:24 39 minutes, 24 seconds value for or give a attention to making India cell and believe me when I manufacturing it's electrode manufacturing it's not importing 39:33 39 minutes, 33 seconds complete electrodes and just assembling it as a cell and then uh supplying. So if government wants us to really integrate backward in manufacturing, 39:42 39 minutes, 42 seconds manufacturing our own electrodes, sourcing our own anode and cath cathode material from the country, they have 39:49 39 minutes, 49 seconds they have to uh know support the industry and that will happen eventually otherwise investments will not come not 39:56 39 minutes, 56 seconds only in the cell manufacturing but also in the supply chain. Uh there is a second angle to it. The second angle is 40:04 40 minutes, 4 seconds the comfort of the OEMs. Now how how long do you think a large OEM like let's say the top two names Marauti, Tatas, 40:12 40 minutes, 12 seconds Mahindras of this world will depend on completely imported batteries from China for their vehicle. 40:18 40 minutes, 18 seconds The OEM OEM runs on one day inventory that is how their supply chain and here they are you know investing in 40:27 40 minutes, 27 seconds 3 months uh inventory of imported material. So their operational sequence their uh total supply chain chain 40:35 40 minutes, 35 seconds management also uh you know is improves for making India sourcing. So I'm sure once there are scales once there are 40:44 40 minutes, 44 seconds players like us even the OEMs would also like to have localized supplies. We have seen those trends already in some cases. 40:52 40 minutes, 52 seconds Uh because they of course they want to have at least two sources even if not they even if they don't want to disrupt their import they will like to have an 41:00 41 minutes alternative source because otherwise it is too expensive and too volatile too big an exposure to depend on uh imported 41:07 41 minutes, 7 seconds complete batteries from uh China on the long term. So yes, we are looking uh forward that both the government as well 41:15 41 minutes, 15 seconds as the auto em will be uh driving this market which will encourage more players to come in. Yeah. 41:23 41 minutes, 23 seconds Yes. uh uh I think definitely with the atma policies of the government and the current situation in the Gulf which is 41:31 41 minutes, 31 seconds always exposing u the country to these huge risks because if there are no imports possible then the things really 41:41 41 minutes, 41 seconds can come to a standstill and uh hit the India in a big way. So definitely the government support will come and I hope 41:49 41 minutes, 49 seconds with the big investments we have made around 5,000 crores uh to date and I think in this year also you are likely to invest about 1,000 crores you 41:57 41 minutes, 57 seconds mentioned 1,400 okay so it will be about 6,000 about 6,500 or crores will be the total 42:06 42 minutes, 6 seconds investment and at the when we sold our life insurance business we got approximately the similar amount I think in terms of the shares of HDFC life. 42:18 42 minutes, 18 seconds Yeah. Roughly that amount. Yeah. 42:19 42 minutes, 19 seconds Huh. So we are currently in the investments in the balance sheet now non-current investments have fallen by 42:26 42 minutes, 26 seconds about 850 crores. So have you sold some part of the shares of SDFC life during the year? 42:32 42 minutes, 32 seconds No no I will hand over to Mano our CFO to answer this question. So okay because of the mark to mark of uh 42:41 42 minutes, 41 seconds valuation of the shares we have not sold any shares as of on date. 42:45 42 minutes, 45 seconds Okay. So the mark to market valuation has come down by about 850 odd crores. Yes. As of 31st March. Yeah. 42:53 42 minutes, 53 seconds And that the uh second effect has been given to uh the resource or what 43:00 43 minutes it it went through OCI. Now we route through OCI. So it is coming as a network not. 43:07 43 minutes, 7 seconds Okay. Okay. Okay. So between I would request you to please rejoin the queue again for more questions. 43:15 43 minutes, 15 seconds Okay, thank you and all the best. Thank you. Thank you. 43:19 43 minutes, 19 seconds Thank you. We will take the next question from the line of Sura Chira from Bandan. Please go ahead. 43:27 43 minutes, 27 seconds Yeah. Hi sir. Uh couple of questions. Uh first on the uh lead. 43:32 43 minutes, 32 seconds Sorry to interrupt in between. Suraj you're not audible. Please use the handset mode. Yeah. Is it better now? 43:42 43 minutes, 42 seconds No, you're not order key. Hello. Is it better now? Yes, please proceed. 43:49 43 minutes, 49 seconds Yeah. Uh, so couple of question from my side. Uh, first on the core lead acid battery business. Uh, in the earlier uh comments during the call, you mentioned 43:58 43 minutes, 58 seconds that uh you expecting uh mid uh high single door to early double digit growth. This you mentioned with respect 44:05 44 minutes, 5 seconds to FI27. Do you think over next 3 to four years that should be the medium-term area for your business? 44:13 44 minutes, 13 seconds uh I think even in medium-term CG year it should be last five years also if you see the five years CAG year was 11%. And 44:22 44 minutes, 22 seconds I don't see any reason uh for the next 5 years a year to be different from that plus minus few percentage 1% maybe 44:31 44 minutes, 31 seconds because uh clearly the if you look at the OEM uh business today which is uh 44:38 44 minutes, 38 seconds for at least consecutive two quarters as well as Q1 outlook of this year the automotive OEM business is growing by 44:46 44 minutes, 46 seconds you know 20% plus 25% plus these are all going to uh get reflected in after market after 2 years. 44:55 44 minutes, 55 seconds Understood. Okay. And what is the uh UPS revenue mix for you right now in FY 26? 45:02 45 minutes, 2 seconds The UPS revenue would be uh just a minute. 45:07 45 minutes, 7 seconds It would be more than 2,000 crores around 2,300 crores. 45:14 45 minutes, 14 seconds Okay. And telecom you mentioned is maybe around 2 3% of your revenues right now. Yes. Yes. 45:20 45 minutes, 20 seconds Okay. And second question was with respect to your uh first phase one of you know uh 6 gawatt hour capacity for 45:28 45 minutes, 28 seconds lithium and cell manufacturing. How do you see this uh capacity being allocated between say automotives and maybe 45:36 45 minutes, 36 seconds stationary application or telecom or BS segment any any plan you are having over next one two years? 45:43 45 minutes, 43 seconds I'll request pra to take this. 45:45 45 minutes, 45 seconds Sure. Thank you. uh so uh the six at we have two chemistries uh uh I think it's it's a good thing that because of two 45:52 45 minutes, 52 seconds chemistries we can able to cater uh the various applications so we have cylindrical and prismatic so our capacity is divided uh cylindrical in 46:01 46 minutes, 1 second three and prismatic in 3 GB so uh as you know cylindrical today's applications is two wheeler and in prismatic uh we have 46:09 46 minutes, 9 seconds applications like four wheeler buses and stationary like telecom sector as well as BS 46:17 46 minutes, 17 seconds So this is how this today the capacities are located. 46:20 46 minutes, 20 seconds Okay. Okay. Any break up of this 6 G or between the two chemistry ballpark numbers? 46:25 46 minutes, 25 seconds Three three three for cylindrical and three for prismatic. 46:29 46 minutes, 29 seconds Okay. Okay. And for this three gaw prismatic one this will also cover your tie up with the Hundai which you announced right? 46:39 46 minutes, 39 seconds No no no that's that's little different. 46:42 46 minutes, 42 seconds This is this will not have an impact on the home. 46:46 46 minutes, 46 seconds Okay. Okay. So that will be part of your interrupt then between Suraj I would request you to please rejoin the queue again. Sure. Sure. It's a follow up on that. 46:54 46 minutes, 54 seconds Just last question on this. 46:57 46 minutes, 57 seconds Thank you. We will take the next question from the line of Karan Kney from Tata AIA Life Insurance. Please go ahead. 47:06 47 minutes, 6 seconds Yes sir. Uh thanks for the opportunity. 47:08 47 minutes, 8 seconds Uh so I just had a clarificatory question. So um if I heard right you said that sulfuric acid prices have gone 47:16 47 minutes, 16 seconds up from 15 rupees per kg to 75 rupees per kg. 47:21 47 minutes, 21 seconds The sulfur price not sulfur price. Okay sorry. So sulfur prices have gone up from 15 rupees per kg to 75 rupees per kg. Uh you said this 47:30 47 minutes, 30 seconds has happened since the start of the year. So um this is since Jan or this is since April. No this is for uh one year. 47:38 47 minutes, 38 seconds Gradual increase. 47:39 47 minutes, 39 seconds Gradual increase. uh quarter on quarter started I the baseline is Q1 of 25 four quarters 47:46 47 minutes, 46 seconds okay for the last for the last one year telling four quarters yes okay and on a sequential basis what will be the jump 47:54 47 minutes, 54 seconds sequential basis uh in Q4 sulfur was plus 40% 48:00 48 minutes and uh sulfuric acid uh is uh no year on year sorry quarter on quarter sequential basis will be about uh 20%. 48:12 48 minutes, 12 seconds April exit is higher than March exit by a lot. Yeah. 48:17 48 minutes, 17 seconds Okay. And and these these this increase in price uh does it get reflected in the same quarter or will it get reflected in the uh upcoming quarter? 48:25 48 minutes, 25 seconds More or less same quarter. That's why uh if you recall I just said that from 1st of April itself we took the price hike 48:33 48 minutes, 33 seconds and uh because we did not wait normally acid and others uh impact immediately. 48:40 48 minutes, 40 seconds So that's why first we announced on 1st of April uh actually we took on 20th of March one round. If you check your 48:48 48 minutes, 48 seconds channels, you will know we 20th of March we announced and then 1st of April back to back after 10 days we announced and 48:55 48 minutes, 55 seconds now we again uh if ongoing in May and June you will also hear some announcements. 49:03 49 minutes, 3 seconds Okay, got it. Uh that's it from Thanks a lot. 49:06 49 minutes, 6 seconds Yeah, thank you. 49:10 49 minutes, 10 seconds Thank you. We will take the next question from the line of Deepak Ajane from IG India. Please go ahead. 49:18 49 minutes, 18 seconds Yeah. Hi, thanks for the opportunity. 49:21 49 minutes, 21 seconds Um, we would like to understand your thought process that you have invested 5,000 cr. 49:27 49 minutes, 27 seconds We'll be investing another 1,000 cr and what sort of um return metrics uh now 49:34 49 minutes, 34 seconds looking at the raw material price and uh uh the uh demand and the availability. 49:41 49 minutes, 41 seconds What's your internal projection on the return metrics and the margin metric? 49:46 49 minutes, 46 seconds So sir, at the moment uh we are completely focused on ramping up the production as Pravin has mentioned. U we 49:55 49 minutes, 55 seconds do not know what will be the level of commodity prices when we actually serialize our uh production. Today lithium has again gone up by double 50:03 50 minutes, 3 seconds digit in the last couple of months due to various uh supply demand constraints. 50:08 50 minutes, 8 seconds uh so it's it's not proper for me to do a math based on assumptions on commodity prices because all those things will uh 50:16 50 minutes, 16 seconds depend dep depend on that what is good is that that the customer has uh realized that lithium is also volatile 50:26 50 minutes, 26 seconds today uh last one year lithium was dropping because there was high over capacity in China 50:33 50 minutes, 33 seconds uh today if you look at last 2 3 months the situation ation is reversed because of this West Asia crisis because of crude shortages. The production of 50:42 50 minutes, 42 seconds electric vehicle and electric vehicle batteries in China has shot up. 50:46 50 minutes, 46 seconds Everybody has you know loaded their factories because uh primary fossil fuel 50:53 50 minutes, 53 seconds is in crisis at this moment. So this has led into a you know demand side boom locally and therefore the prices are 51:00 51 minutes going up. So people also understand that lithium prices is not exactly predictable because this type of 51:07 51 minutes, 7 seconds volatility will happen going forward and uh and then China suddenly the 51:14 51 minutes, 14 seconds government has come up with a uh policy that you know you can't bleed anymore the auto the EV manufacturer cannot make losses anymore they have to be 51:23 51 minutes, 23 seconds profitable so they are forced to raise prices that's why pra told you that they have withdrawn lot of VAD benefits and 51:30 51 minutes, 30 seconds export support benefit. So this is the environment of lithium. So I have a feeling that we will have a much better 51:38 51 minutes, 38 seconds case than last year when we start production because prices will stabilize number one. Number two is the prices are 51:45 51 minutes, 45 seconds also indexed to a great extent so that the risk is also a pass through like lead. And third is as I said the OEMs 51:54 51 minutes, 54 seconds will definitely uh take a deeper look of developing local uh supply chain for uh sales and packs. So I think with this 52:03 52 minutes, 3 seconds we'll have a much stronger case but the time to announce that has not come. Uh let us ramp up our plant. Let us operate 52:11 52 minutes, 11 seconds at 85% uh utilization with 90% yield and that will be the time when I'll come back and reply to this question. 52:21 52 minutes, 21 seconds Noted. Thank you. Thanks for allowing us. 52:23 52 minutes, 23 seconds Please have in mind, please have in mind we are the first one in the country to manufacture cells uh with this kind of scale. 52:31 52 minutes, 31 seconds Yeah. 52:32 52 minutes, 32 seconds Yeah. Yeah. Yeah. That's a really great commendable. The second question is 52:40 52 minutes, 40 seconds while you are liing on the policy framework on the self manufacturing localization, what is 52:49 52 minutes, 49 seconds their feedback? what what they are exactly waiting for for the any policy measures. 52:57 52 minutes, 57 seconds It's like kind of a chicken and egg. I mean you also have to have sufficient capacity locally to uh you know announce 53:05 53 minutes, 5 seconds a policy for making in India. uh so unless there is I would like to believe unless there is about 20 25 gawatt of 53:13 53 minutes, 13 seconds capacity in India or let's say 20 gawatt uh that is a minimum base where we will 53:20 53 minutes, 20 seconds get lot of support from the government u in fact today uh the whole EV market 53:27 53 minutes, 27 seconds in automotive the EV market in India is also 20 gawatt hour so to have that just to have that in mind at scale so once we 53:36 53 minutes, 36 seconds have two three players coming up with 15 20 gawatt hour I think we'll have substantial scale for the government to 53:43 53 minutes, 43 seconds intervene and uh you know take some uh policy changes noted sir thank you all the best 53:52 53 minutes, 52 seconds thank you very much thank you will take the next question from the line of sag from relative 54:02 54 minutes, 2 seconds investment please go ahead yeah hi am I audible Yes, please. 54:08 54 minutes, 8 seconds Yeah. So, just uh I was confused actually. You said 6 gawatt, three is in NMC and three is in LFP cylindrical. NMC 54:16 54 minutes, 16 seconds cylindrical three and LFP uh this thing but uh and then you said Hundai is separate. So, what what exactly do with 54:23 54 minutes, 23 seconds Hundai? We have a uh separate contract which where there is a co-investment. 54:30 54 minutes, 30 seconds So, we are delinking it with our own internal investment. So uh so that there that will be an incremental capacity over 6 KW when we commission that. 54:41 54 minutes, 41 seconds Oh so that is not a part of that six. So when will that be commissioned and how that 4,800 crores also 4,800 crores will be not? 54:50 54 minutes, 50 seconds No no no. So that we'll make a disclosure uh when the time comes maybe soon. 54:56 54 minutes, 56 seconds Yeah but it's not a part of FI27. uh this number I'm not commenting on that this is still not in public could be but uh I'm not uh 55:05 55 minutes, 5 seconds commenting on this because this is a material disclosure 55:17 55 minutes, 17 seconds thank you very much ladies and gentlemen we will take that as the last question for today and with that concludes the 55:24 55 minutes, 24 seconds question and answer session I now hand the conference back to the management for closing comments. 55:31 55 minutes, 31 seconds So, thank you everybody uh for the uh extremely engaging questions. We have 55:38 55 minutes, 38 seconds been uh pretty confident of the quarter coming by because last consecutive two quarters 55:46 55 minutes, 46 seconds was pretty satisfying particularly after a week quarter two. 55:51 55 minutes, 51 seconds uh I think we have been able to deliver a growth which uh normally is in line with the expectation both in top line 55:59 55 minutes, 59 seconds and bottom line and our April having gone I think we have also have a similar view on quarter one of this year as 56:06 56 minutes, 6 seconds well. I hope we have been able to answer all your questions satisfactoryily. If you have any further questions I mean we 56:13 56 minutes, 13 seconds would we would be very happy uh to be of assistance kindly reach out to us. Thank you. Over to the moderator. 56:22 56 minutes, 22 seconds Thank you members of the management. On behalf of invested capital services, that concludes this conference. Thank you all for joining with us today.