Fiem Industries Limited — Q3 FY26

Fiem Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cBC0mH8qvSg Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to FIAM Industries Limited Q3 FI26 earnings call. As a reminder, all 0:09 9 seconds participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:26 26 seconds this conference is being recorded. I now hand the conference over to Mr. Sahil Sangi from Monach Network Capital Limited. Thank you and over to you sir. 0:38 38 seconds Thank you Rudra. Uh good evening everyone and welcome to the Fam Industries Limited Q3 FI26 earnings 0:45 45 seconds conference call. Uh the disclaimer uh the conference call may contain forwardlooking statements about the company which are based on belief, 0:52 52 seconds opinions and expectations of the company as on date of the call. The statements are not the guarantees of future performance and involve risks and 0:59 59 seconds uncertainties that are difficult to predict. I now hand over the call conference call. I sorry and I now hand 1:08 1 minute, 8 seconds over the call to Mr. JK Jen for the opening remarks. Uh Jen, sir, over to you. 1:14 1 minute, 14 seconds Thank you. Good afternoon and welcome to the Q3 FY26 earning call of Fam Industries Limited. Joining me today's 1:23 1 minute, 23 seconds call are Rahul Jan joint managing director Rajes Sharma joint managing director Vinit Sani CEO and director 1:32 1 minute, 32 seconds Arvind Ch Johan company secretary OP Gupta CFO and other members of the finance team. Our investor presentations 1:41 1 minute, 41 seconds and results are now available on our website and the stock exchange. I trust you must have reviewed the same. Let me 1:50 1 minute, 50 seconds begin with an overview of the broader economic environment. The Indian economy 1:56 1 minute, 56 seconds continues to demonstrate re resilient and steady momentum in spite of the geopolitical challenges. 2:05 2 minutes, 5 seconds As highlighted in the recent economy survey, India real GDP growth for FY26 2:12 2 minutes, 12 seconds is estimated at around 7.4% 4% and the growth is expected to remain strong going into FY27. 2:22 2 minutes, 22 seconds This reflects broadbased domestic demand, healthy investment and stable consumption trend. Inflation has 2:31 2 minutes, 31 seconds remained under control which has supported purchasing power and consumer confidence. The recent union budget has 2:39 2 minutes, 39 seconds reinforced physical uh discipline while maintaining a strong focus on in price structure and 2:47 2 minutes, 47 seconds manufacturing. In addition, GSC rationalization has improved affordability in the two-heer segment. 2:55 2 minutes, 55 seconds This has supported retail traction and overall industry sentiment. Overall the macro and policy environment remains 3:04 3 minutes, 4 seconds constructive for the automotive ecosystem. Coming to the two-wheeler industries, the quarter witness broadbased recovery. 3:14 3 minutes, 14 seconds Total two-wheer production grew by 15% year on year to 6.8 million units in the 3:22 3 minutes, 22 seconds quarter. For the first 9 months, industry's production is already at 9.6 6 million unit. This puts the sector in 3:31 3 minutes, 31 seconds a strong position going into the final quarter and expected to cross the previous peak of roughly 24.4.5 million units recorded in FY19. 3:44 3 minutes, 44 seconds Leading OEMs like PBS Honda have reported healthy volume performance during the quarter supported by the 3:52 3 minutes, 52 seconds festival demand and improving ruler sentiment. Overall Q3 has been a balanced and healthy quarter for the 3:59 3 minutes, 59 seconds industries. Against this improving industry's backdrop, FIAM has once again deliver a very strong performance. 4:08 4 minutes, 8 seconds Further, as part of the long-term commitment to sustainable manufacturing, we are rolling out renewable energy projects across all our plants. 4:19 4 minutes, 19 seconds The this green initiative will help reduce energy cost, improve operational efficiency and is strengthening our 4:27 4 minutes, 27 seconds commitment to becoming carbon neutral company. 4:32 4 minutes, 32 seconds As vehicle per platform become more advanced, the styling differentiation is gaining importance. Lighting and the 4:40 4 minutes, 40 seconds electronics are emerging at the key element in defining brand identity. In this environment, our focus remain clear 4:50 4 minutes, 50 seconds by strengthening technology, maintaining high quality standards, driving cost 4:56 4 minutes, 56 seconds efficiency, and ensuring timely delivery in line with our state-of-the-art EMC 5:03 5 minutes, 3 seconds and EMI laboratory in Gorga has started trials and product validation. 5:10 5 minutes, 10 seconds This en enhances our electronic capabilities and significantly 5:17 5 minutes, 17 seconds strengthening our in-house testing and validation infrastructure. 5:22 5 minutes, 22 seconds Our commitment to the passenger car business continue to gain momentum. We are now supplying products such as 5:30 5 minutes, 30 seconds number plate lamp, rear reflector and fog lamp across various models to Mahindra and Mahindra. In addition, high 5:38 5 minutes, 38 seconds mount stop lamp of Boloro and Scorpio are currently under development. 5:45 5 minutes, 45 seconds We continue to invest in innovation across advanced lighting and electronic technology including laser system, touch 5:54 5 minutes, 54 seconds interference interface, adaptive drive beam and metric lighting solution etc. 6:02 6 minutes, 2 seconds This focus on innovation will enable us to participate in higher value lighting 6:08 6 minutes, 8 seconds solution in future. As we move into the final quarter of the financial year, the overall industry's outlook remains positive. 6:18 6 minutes, 18 seconds With support supportive macro condition, stable policy directions and a healthy order pipeline, we remain confident 6:27 6 minutes, 27 seconds about the future growth. With this I now hand over to Mr. Oki Gupta and the finance team to take you through the detailed financial performance. 6:39 6 minutes, 39 seconds Thank you sir. Good afternoon to everyone. I am presenting quarter 3 numbers for FY26 in comparison to the 6:48 6 minutes, 48 seconds corresponding quarter of previous financial year. The company has registered sales of rupees 685.81 81 cr 6:57 6 minutes, 57 seconds in Q3 FY26 against rupees 590.1 crores in corresponding quarter of previous 7:05 7 minutes, 5 seconds financial year which is an increase of 16.22%. 7:10 7 minutes, 10 seconds I am delighted to announce that for the first time the AITA margin of company has crossed 14% reflecting overall operational efficiency. 7:22 7 minutes, 22 seconds The beta for this quarter is rupees 97.7 cr which works out to rupees 24.245% 7:32 7 minutes, 32 seconds as compared to an aita of rupees 77.88 crores that is 13.2% in the 7:40 7 minutes, 40 seconds corresponding quarter of previous year for quarter 3 is rupees 63.45 cr as 7:48 7 minutes, 48 seconds compared to rups 47.41 41 crores in corresponding quarter of police financial year which is higher by 33.83%. 7:58 7 minutes, 58 seconds Now I would like to present the 9 month number four FY26. 8:05 8 minutes, 5 seconds The company has registered sales of rupes 246.3 cr in the 9 month of current financial 8:13 8 minutes, 13 seconds year as against rupees 1,771.15 cr in the corresponding period of 8:20 8 minutes, 20 seconds previous year which is an increase of 15.54%. 8:26 8 minutes, 26 seconds The beta in 9 month of current financial year stand at rupees 284.16 8:32 8 minutes, 32 seconds cr translating into an aita margin of 13.89%. 8:38 8 minutes, 38 seconds As compared to an aita of rupees 236.92 cr that is 13.38% 8:45 8 minutes, 45 seconds in the corresponding period of previous year pet for 9 month of current financial year is rupees 183.29 29 cr as 8:55 8 minutes, 55 seconds against rupees 146.44 crores in the corresponding period of previous financial year which is higher by 25.16%. 9:06 9 minutes, 6 seconds During the quarter the comp quarter 3 the company has made a capex of rups 41.02 cr and total capex in the 9 month 9:15 9 minutes, 15 seconds of current financial year is rups 78.83 83 code. With this I end the financial brief and now the floor is open for question and answers. 9:27 9 minutes, 27 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 9:35 9 minutes, 35 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 9:42 9 minutes, 42 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for the moment while the question queue assembles. 9:54 9 minutes, 54 seconds Our first question comes from the line of CA Gervit Coyle from Serene Alpha Analytics LLP. Please go ahead. 10:02 10 minutes, 2 seconds Hi. Uh I'm audible. Yes sir, you up? Yes, go ahead. 10:07 10 minutes, 7 seconds Uh good evening sir and congrats for a good set of numbers. Uh my first question is on uh the insurance and uh fire incident part. Uh over the last two 10:15 10 minutes, 15 seconds years uh the company has disclosed fire incidents at more than one manufacturing unit. Uh so can management help us understand the root car root cause 10:23 10 minutes, 23 seconds identified in uh each case and uh whether there are any common operational or the safety gaps and what are the permanent corrective measures have been 10:31 10 minutes, 31 seconds implemented to to ensure that such incidents do not uh reoccur. Uh, additionally have these uh, incidents led to any any changes in the insurance 10:39 10 minutes, 39 seconds terms or the premium or any internal safety audit uh, across the plant sir. 10:47 10 minutes, 47 seconds Uh, so uh, regarding the the let me break this question into three parts. 10:53 10 minutes, 53 seconds First part is about the insurance. As we already disclosed our insurance is under process and for the unit seven that is 11:01 11 minutes, 1 second the ry unit we already received around 50 cr and rest of the assessment is under process. It should be completed uh whatever in the due course of time. Now 11:11 11 minutes, 11 seconds uh all the policies what we are taking in the insurance is on reinstatement basis. So as you understand in case of 11:19 11 minutes, 19 seconds the this kind of policy the assessment takes time. Now coming to the unit 8 that we already uh informed to the 11:28 11 minutes, 28 seconds exchange as well and we already filed on January 30th 82.30 cr insurance claim on reinstatement basis. So it will take 11:37 11 minutes, 37 seconds time. Now about the safety aspect and all these thing the reasons are already there in the do uh with the surveyor. So 11:45 11 minutes, 45 seconds there is nothing bigish about that but yes whatever the safety measures we are taking or we are doing I think uh Mr. 11:53 11 minutes, 53 seconds Rajes Sharma he can explain a little bit. Yeah, 12:03 12 minutes, 3 seconds there is a uh plant rye as well as uh tabukura. 12:08 12 minutes, 8 seconds These are all being audited on the periodic basis. This is being hired a third party and the same time safety 12:17 12 minutes, 17 seconds team from FM is also auditing and regularly monitoring the situations. So Ry plant whatever fire incident is being 12:25 12 minutes, 25 seconds heaven have happened because of short circuit and uh it is being claimed it is being already highlighted and being presented and similarly all all the 12:34 12 minutes, 34 seconds plants we have a full commitment and uh safety measures which is being necessary to run the produ production line and to 12:41 12 minutes, 41 seconds save the human uh which is being in all the cases is being taken care. 12:48 12 minutes, 48 seconds Just to add uh in both the cases there is no uh injury to anybody. So uh our 12:55 12 minutes, 55 seconds our whatever the safety measures existing in the company in every factory it is appreciated by all but this is 13:02 13 minutes, 2 seconds unfortunate event. So sometimes you know things are beyond control when this kind of things happen. Add to add this thing 13:10 13 minutes, 10 seconds there is no loss of business in any of the event you can uh see the numbers. So rest of the things in for future we management is taking a very serious view 13:18 13 minutes, 18 seconds about the safety aspect and this are this is being undertaken with the help of external risk assessment agencies and 13:26 13 minutes, 26 seconds this will be you maybe uh quarter on quarter we can update you 13:33 13 minutes, 33 seconds sir and secondly uh on the four segment uh while management has been discussing this opportunity for some time uh the 13:41 13 minutes, 41 seconds revenue mix has not seen a meaningful shift At the same time, competitors in this category are scaling up rapidly and uh 13:49 13 minutes, 49 seconds several new players are entering into this segment. So in that context uh could you help us understand uh when you expect the four-wheeler business to 13:56 13 minutes, 56 seconds start uh contributing meaningfully to the revenues and uh what timeline we should uh uh realistically factor in for that. Additionally, uh uh from an uh 14:05 14 minutes, 5 seconds execution standpoint, uh will four-wheeler orders be catered uh from the existing manufacturing facilities only or or through the dedicated plants for this segment? 14:16 14 minutes, 16 seconds Yeah. Uh I am Vin Si. Uh yes, we are I'm answering your second question first. We are catering the four-wheeler orders 14:23 14 minutes, 23 seconds from our existing facilities only at this moment and this we had shared in our previous calls also. Uh regarding the revenue, we had shared to you that 14:32 14 minutes, 32 seconds we are in the process of building our credibility first entering into small lambs and in the next uh investor meet 14:39 14 minutes, 39 seconds which would be in May next year when we close this financial year we'll be sharing you a business plan and the 14:46 14 minutes, 46 seconds revenue impact that the four-wheeler is going to make in future. 14:51 14 minutes, 51 seconds Got it sir. Got it. Uh I think I will join back the queue sir. Thank you very much. 14:58 14 minutes, 58 seconds Thank you. Our next question comes from the line of Anubhau from Precient Capital. Please go ahead. Am I audible? 15:07 15 minutes, 7 seconds Yes sir, you are. Please go ahead. Hello. Yes. 15:09 15 minutes, 9 seconds Uh uh congrats on a good set of man number. Uh my first question is that uh gross margins this quarter uh showed a 15:18 15 minutes, 18 seconds substantial improvement both yearon year and by and even on quarter quarter sequentially. 15:25 15 minutes, 25 seconds So uh what drove this improvement and is this sustainable? 15:32 15 minutes, 32 seconds Yeah, thanks for that question. So uh so yes, you're right. The margins are as we mentioned are at an all-time high for us 15:40 15 minutes, 40 seconds at 14.25% at the VITA level. It's driven by a number of factors. There is operating leverage kicking in. There is improved efficiency. There have been 15:48 15 minutes, 48 seconds some efficiency trials that have been done at the factories which are resulting in some positive impact. And of course there is a product mix but 15:55 15 minutes, 55 seconds also uh we also got some escalations during the quarter. So that has also uh come in to boost the margin to to from a 16:04 16 minutes, 4 seconds from a going forward perspective. Uh we feel confident that the efficiency parameters that we have done will keep 16:11 16 minutes, 11 seconds helping the margin. So we believe that we should uh ideally be at 14% plusa margin in future as well. uh that that's 16:20 16 minutes, 20 seconds the kind of uh target we are setting for ourselves. 16:24 16 minutes, 24 seconds Uh get that and uh uh like if you look at the sales uh primary sales uh data 16:31 16 minutes, 31 seconds for all your key two-heer OEMs whether it is TBS, HMSI, Suzuki, Royal Enfield, 16:38 16 minutes, 38 seconds all of them have grown 20% uh less. Uh but our topline growth has been slightly 16:45 16 minutes, 45 seconds lower at 16%. So can you like throw some light on that? 16:51 16 minutes, 51 seconds So um there has been growth across the industry but it's not 20%, we look at the production figures rather than 16:59 16 minutes, 59 seconds sales. So if you look at production figures, DVS has grown 17%, we have outperformed that growth Honda has grown 17:06 17 minutes, 6 seconds 18%, we are broadly in line there. So uh so uh I think also what happens is quarter over quarter there's a there's a 17:15 17 minutes, 15 seconds product mix in terms of which model is there and are we there in that model and so on. So from a overall market share perspective we continue to be right up there with our customers. 17:27 17 minutes, 27 seconds uh get that and uh sir please don't mind asking my question but I think it'll be on the mind of all the analysts because 17:34 17 minutes, 34 seconds our competitor uh listed competitor Lumax industry they have also declared their results and uh their revenue from 17:42 17 minutes, 42 seconds HMSI both this quarter and for the 9 months has grown like at 50% plus very 17:50 17 minutes, 50 seconds very strong growth whereas our growth has been uh much lower compared to that 17:57 17 minutes, 57 seconds so again can you throw some light on what's driving this like uh market share loss if I may call that in this uh 18:06 18 minutes, 6 seconds financial year yeah this is in line with the same answer he's been given this is totally 18:13 18 minutes, 13 seconds be depend on the model mix which are as of now and there are few models which are exclusively with the uh competitor 18:22 18 minutes, 22 seconds those are giving the right volume volume which is giving this kind of uh yeah 18:29 18 minutes, 29 seconds and also uh also there is they have a large four-wheeler business which we don't have so I think like to like from 18:35 18 minutes, 35 seconds a Honda perspective uh and and overall numbers if you look at that you know sometimes that picture also doesn't come 18:44 18 minutes, 44 seconds out but uh what we do like to reinforce is that uh that our market share with 18:50 18 minutes, 50 seconds Honda remains the same so sir this specific specifically uh clearly reported HMSI and not Honda. So 18:59 18 minutes, 59 seconds I don't think that can be the reason but uh I get the point on models. Um so yeah 19:07 19 minutes, 7 seconds and uh uh u sir uh any update on uh any new uh RFQ from uh any other uh 19:17 19 minutes, 17 seconds passenger vehicle OEM other than uh Eminem and also like last quarter we had reported that uh we were working on an 19:26 19 minutes, 26 seconds RFQ from Force Motors. So has that converted into uh some concrete orders? 19:34 19 minutes, 34 seconds Yes. So um Venites the side yes force motors has converted we are this is under development we will be reporting 19:42 19 minutes, 42 seconds that in the next meet and uh also Mahindra we are working on certain RFQ which are at final stages at least two 19:50 19 minutes, 50 seconds RF major RFQS are at final stages hopefully we'll be sharing that development in our next meet 19:59 19 minutes, 59 seconds thanks I'll get back in queue thank you thank Hello. Our next question comes from the line of Shubam Seagel from Simple. Please go ahead. 20:10 20 minutes, 10 seconds Hello. I'm audible. 20:13 20 minutes, 13 seconds Yes, you are sir. But uh can you be speak a little more louder? Yeah, sure. 20:21 20 minutes, 21 seconds Please go ahead. Hello. Yes, please go ahead. 20:30 20 minutes, 30 seconds Yes. Yes. So my uh first question was have we started supplies to Yamaha for their uh Tracer 7 model as if I'm not 20:38 20 minutes, 38 seconds wrong the model has been commercialized in Europe and UK and uh despite uh this model VIN and also the other new model Vins we have for the India geography. 20:48 20 minutes, 48 seconds Why have we uh seen a decline in sales to Yamaha this quarter? 20:54 20 minutes, 54 seconds This tracer 700 is already in production right now and we have started uh supplying to Europe and last 4 months it 21:02 21 minutes, 2 seconds is in continuous supply. Uh the decline uh in Yamaha is only because of there are few models which being brand being 21:10 21 minutes, 10 seconds exported are always be based on the period base like it is sometimes the 21:17 21 minutes, 17 seconds volume which is being inclined or sometimes volumes is being always be in in case condition. So period this is quarter toquarter you can see some 21:25 21 minutes, 25 seconds Yamaha because export model is always been uh up and down and quantity is being fixed for certain certain models. 21:35 21 minutes, 35 seconds Okay. Okay. Got it. Domestic domestic market all Yeah. No go ahead. Go ahead. 21:42 21 minutes, 42 seconds Yeah. All domestic models whatever as of now running is being uh accelerated right now and it is being giving the good business uh in domestic market. 21:52 21 minutes, 52 seconds Okay. Okay. Got it. And just an update on like two other uh models I think. So uh one on TVS we had mentioned for TVS not in uh you know we had developed a 22:01 22 minutes, 1 second new technology based uh lighting system uh like any update on that and also for the uh passenger vehicle RSQ. We had 22:10 22 minutes, 10 seconds also mentioned that we were in final stages for uh an RFQ with Mercedes. So any like update on these two? 22:18 22 minutes, 18 seconds Yeah. So Norton uh as of now it is being launched and mass production will start in couple of months. 22:26 22 minutes, 26 seconds We we we are ready and uh it is vehicle homalocation is as of now on and might be in next 3 months time uh we'll be in 22:35 22 minutes, 35 seconds position to start our supplies from here to Northern UK and to uh TVSM India too. 22:42 22 minutes, 42 seconds And can you repeat your question on Mercedes please? 22:45 22 minutes, 45 seconds Yeah. So we had mentioned on the last call that we were in the final stages of an RSQ for force motors and Mercedes. So any update on Mercedes? 22:53 22 minutes, 53 seconds Yes. Uh there is an update Mercedes top level team visited us in the month of January. Uh members senior members from 23:01 23 minutes, 1 second Germany and India the top people and our I'm happy to inform that our plant and other things stand approved as a 23:09 23 minutes, 9 seconds potential supplier to Mercedes globally for small lamps. Of course, we will now wait for RFQS to come in, but uh 23:16 23 minutes, 16 seconds probably we are the only lighting suppliers at this moment to reach this place with Mercedes. This was their fifth visit to our plant. Uh so it's 23:25 23 minutes, 25 seconds moving in the right direction. It takes time but it is moving in a in a proper manner. 23:31 23 minutes, 31 seconds Okay. Like when can we expect uh to get commercialized? Like in a year or two like any rough timeline? Okay. So, 23:38 23 minutes, 38 seconds normally normally uh it is very difficult to put a time to it but we are expecting uh certain RFQS to come in 23:47 23 minutes, 47 seconds this uh in the next financial year and then it is their process development time is around 18 months to two years 23:54 23 minutes, 54 seconds with Mercedes but important point is to find a foothold in Mercedes because there the potential is huge. So, so that is what we are targeting. 24:04 24 minutes, 4 seconds Okay. Got it. Thanks a lot. 24:09 24 minutes, 9 seconds Thank you. Our next question comes from the line of Vira, an individual investor. Please go ahead. 24:16 24 minutes, 16 seconds Yeah. Hi, this is Vir from Simple. Uh, am I audible? Yes sir, you are. Please go ahead. Y. Yeah. Hi. So, just couple of questions. 24:25 24 minutes, 25 seconds Uh, one is on the gross margin. I just wanted to get your perspective. Actually if I look at the margins contribution 24:32 24 minutes, 32 seconds margins in this quarter you know we've earned somewhere around 40.3% which is the highest ever since March 23 quarter. 24:40 24 minutes, 40 seconds So just trying to understand what drove such high gross margin for us and was there any element of oneoff in this. 24:50 24 minutes, 50 seconds Yeah, we just mentioned that it's a combination of efficiency, operating leverage, product mix and also some escalations which have come through for the quarter. 25:00 25 minutes So it's a as as I as I said uh a this is a 25:07 25 minutes, 7 seconds combination and b going forward we are still guiding for a 14% plus a bit. 25:14 25 minutes, 14 seconds Okay. So, so why I asked this is like uh see we've been making investments uh rightly so in our uh in terms of 25:21 25 minutes, 21 seconds investments in PNA towards a four lighting business right and uh if I were to you know adjust for that then the 25:29 25 minutes, 29 seconds implied margins would be upwards of 16 17% for us you know while we're making the investments in P&LN uh the revenue 25:37 25 minutes, 37 seconds maturity is still yet to play out so if I look at the existing business X of that you know to the business that would 25:44 25 minutes, 44 seconds be above close to 16% or above. So I'm just trying to understand you know you know uh consider that the commentary is 25:53 25 minutes, 53 seconds quite positive in the growth. How should one understand the sustainability of margins you know further in terms of improvement. 26:02 26 minutes, 2 seconds So first I would uh sort of agree that X you can delink the business like that because you know a lot of four-wheeler 26:10 26 minutes, 10 seconds uh projects are also working with our current capex and current capacities. Uh having said that I think the important 26:18 26 minutes, 18 seconds thing what we are seeing is that there's a lot of efficiencies that are kicking in. There's a lot of with the new volumes that we have overall there's a lot of uh operating leverage coming in. 26:28 26 minutes, 28 seconds So going forward in spite of all the investments that are already envisaged. 26:32 26 minutes, 32 seconds So next two years for example we envisage a 200 cr keex which is a combination of our uh existing projects 26:40 26 minutes, 40 seconds as well as whatever we need on the four-wheeler side. Even with that we believe that we should be at uh these 26:47 26 minutes, 47 seconds margins or uh at least 14% plus is what we are targeting. 26:52 26 minutes, 52 seconds Okay. Uh just a followup to this uh if you look at some of the other players in the space right you know they earn 27:00 27 minutes somewhere close to 17 18% or slightly above margins in the lighting business you know the mix can differ between four-wheeler two wheeler but uh if you 27:09 27 minutes, 9 seconds were to see this kind of a growth rate you know say low teams or double growth rate sustaining for us uh then do you 27:16 27 minutes, 16 seconds think that you know margins for us you know there's scope for further improvement in margin structure in the 27:24 27 minutes, 24 seconds I I think it's a highly competitive market and I don't see 17 18% margin coming through at all here. I think 14% 27:32 27 minutes, 32 seconds plus is a very good aspiration to have which we are focusing at least for the next 24 months. I think that's what we want to get to. 27:41 27 minutes, 41 seconds Got it. Uh one more two two more questions sir. one is on see if I look at a two-heer business uh you know we 27:49 27 minutes, 49 seconds have HSMI TVs uh you know accounting for almost 60 65% of the overall business 27:59 27 minutes, 59 seconds uh in terms of diversification how are you thinking about it uh see I understand you know there may be quarters where one customer may degrow 28:07 28 minutes, 7 seconds or not grow to the expectation we would like it to be but in terms of one one has to look into the wide spaces you 28:15 28 minutes, 15 seconds know and maturity of those white spaces uh you know how are we thinking about it. 28:22 28 minutes, 22 seconds Great question. So I think from a OEM perspective if you see what we are the OEM who we are not serving is only 28:28 28 minutes, 28 seconds Bajage in this uh matrix. Uh other than that we serve everyone and our our share 28:35 28 minutes, 35 seconds even with a hero is growing. on the other opportunities what we what you mentioned is something that was highlighted in the chairman speech as 28:43 28 minutes, 43 seconds well that you know there is an increased focus now on the electronics in the company so as we move ahead with all the uh OEMs that we have uh there is a 28:53 28 minutes, 53 seconds increased uh contribution coming from electronic component which should help us drive growth much faster uh going 29:00 29 minutes forward so that has been our thrust which is where all the investment is also going the MIMC labs and other areas which we are investing ing are heavily into electronics and technology. 29:12 29 minutes, 12 seconds So when you say electronics is that a part of the lighting system or this is a separate uh business vertical which we 29:19 29 minutes, 19 seconds are catering to which we were not earlier. 29:24 29 minutes, 24 seconds So this will be the part of lighting system only. 29:27 29 minutes, 27 seconds Okay. And any color you can give how large is hero for us now? 29:35 29 minutes, 35 seconds Hero see we are working already on 10 odd projects of Hero uh that is for front and rear lighting both wherein few 29:43 29 minutes, 43 seconds projects are already in mass production Destiny is already mass production X team is also in mass production X440 is in production further on there are few 29:51 29 minutes, 51 seconds models which will soon be launched and we'll announce uh those business also very soon 29:58 29 minutes, 58 seconds okay I'll come back in Q thank you thank you participants who wish to ask a question may press star and one on the 30:07 30 minutes, 7 seconds touchstone telephone. Our next question comes from the line of sia deshmuk from Pune esto proing please go ahead. 30:16 30 minutes, 16 seconds Hello I'm yes ma'am you are please go ahead. 30:21 30 minutes, 21 seconds Okay. Uh just from an industry understanding perspective, does the automotive lighting components industry typically faces challenges around you know uh dead or slow moving inventory? 30:33 30 minutes, 33 seconds And uh if yes, how does our company manage such risk of operation? 30:40 30 minutes, 40 seconds That's can you please repeat your question? This is not clear. 30:46 30 minutes, 46 seconds like uh if the automotive lighting industry typically faces challenges around dead or slowmoving inventory. 30:57 30 minutes, 57 seconds No, where from you got this information? This is wrong information. Okay. Yeah. 31:04 31 minutes, 4 seconds Okay. Thank you. Thank you. 31:07 31 minutes, 7 seconds Thank you. Our next question comes from the line of Pawan from Ratnatraa Capital. Please go ahead. 31:15 31 minutes, 15 seconds Sir, can you uh please outline uh other projects from what you are doing 31:21 31 minutes, 21 seconds for uh Mahendra and also Mercedes? I understand uh we had a ARFQ which we are 31:30 31 minutes, 30 seconds working for force motors also. So c can you just outline for us uh when can be 31:37 31 minutes, 37 seconds when can there be products which would be commercial which would be in commercial production for the these kind for four-wheelers especially at a scale. 31:49 31 minutes, 49 seconds So at this stage we will not be able to diverge the actual products that we are working on. We are also working on 31:57 31 minutes, 57 seconds certain new technologies with these customers. So as and when they mature up and we are ready to declare we will do 32:04 32 minutes, 4 seconds that in these needs. But currently we are not able to do this because we are under NDA with our customers and next 32:12 32 minutes, 12 seconds quarter we will be sharing a bit more about the production plans in the future. 32:20 32 minutes, 20 seconds Okay. Okay. Thank you. That was my question. 32:26 32 minutes, 26 seconds Thank you. Our next question comes from the line of Shri Kant, an individual investor. Please go ahead. 32:34 32 minutes, 34 seconds Hi, good evening. Just let me know if I'm audible. Yes sir, you are. Please go ahead. 32:39 32 minutes, 39 seconds Yeah, thank you. Uh good evening to the management. Uh congratulations for a good set of numbers. So as per the last 32:46 32 minutes, 46 seconds call we had discussed, we were in some proof of concept uh uh in ambient interior lighting. So any update on that? 32:56 32 minutes, 56 seconds Yes. uh we have got some official go aheads from the customer on developing a proof of concept for the technology that 33:05 33 minutes, 5 seconds you mentioned and a couple of other technologies. We are in the process of doing that and as we speak I get a mail 33:13 33 minutes, 13 seconds of RSQ also from our customer on ambient lighting just sharing with you online. 33:19 33 minutes, 19 seconds So it is moving in the right right direction. 33:22 33 minutes, 22 seconds Okay. going forward can we see this uh contributing good to our top link like uh as a product? 33:31 33 minutes, 31 seconds Uh see we do see this contributing to as a product but still it has a long way to go because you need to establish 33:38 33 minutes, 38 seconds hardware software lighting solutions and we are working actively with our customer. So uh the proof of concept 33:46 33 minutes, 46 seconds will be made then they will uh prove it in the car get the management approval but it has a good potential of growth in 33:54 33 minutes, 54 seconds the coming future because most of the cars are going for ambient lighting. 33:59 33 minutes, 59 seconds Okay. And secondly like uh do we like are there any kind of plans to add any other products like uh we have bank 34:07 34 minutes, 7 seconds angle lean sensor or canister. So any kind of that product which we are looking to add to our portfolio. 34:17 34 minutes, 17 seconds Yeah, bank angle sensor we are already supplying as of now for all models of Honda and yeah this is these are all under 34:26 34 minutes, 26 seconds technical assistance and it is being supplying to Honda only and canister of course uh is no more right now. it is almost be out and there are a few 34:35 34 minutes, 35 seconds customers only they are getting this uh Yamaha or some uh TVS only. 34:42 34 minutes, 42 seconds Okay. So any uh kind of like do we plan to venture out in a uh joint venture or 34:50 34 minutes, 50 seconds to produce any kind of product in future? 34:55 34 minutes, 55 seconds We both are under technical assistance from Japan. one is of Toyota and so other is of so these are both are running under technical assistance 35:03 35 minutes, 3 seconds agreement only with the Japanese company okay so uh understood thank you thank 35:11 35 minutes, 11 seconds you that's all from me thank you our next question comes from the line of CA from Serene Alpha 35:18 35 minutes, 18 seconds Analytics LLP please go ahead hello I'm audible yes sir you are please go ahead 35:25 35 minutes, 25 seconds yes so I have a question um So from a medium-term perspective, how does management assess uh the industry 35:33 35 minutes, 33 seconds outlook over 12 to 24 months? And also I want to know the supply side or demand side factor which you believe uh could 35:41 35 minutes, 41 seconds pose some risk uh or opportunities for us in the future. 35:48 35 minutes, 48 seconds Think over the next 12 to 24 months we continue to guide uh with our initial guidance just 15 to 20% growth. We have 35:55 35 minutes, 55 seconds kind of always outperformed the industry. So we will strive to do the same. Industry anyway is doing very well as we have commented first nine months 36:04 36 minutes, 4 seconds have been very good. Even going forward we believe the outlook is pretty positive. From a so from a demand side we don't see any challenges. From a 36:12 36 minutes, 12 seconds supply side also there uh you know a little bit of supply shocks were there say 12 18 months on some uh some few components that have been taken care of. 36:21 36 minutes, 21 seconds So there is no specific challenges that we see right. Okay. Okay. So sir, thank you. 36:31 36 minutes, 31 seconds Thank you. Our next question comes from the line of Kush Nahar from Electrum Portfolio Management Services. Please go ahead. 36:40 36 minutes, 40 seconds Yeah. Uh thank you for the opportunity sir. So just one question on the four-wheeler. Are we open for any acquisitions or are we looking at that 36:48 36 minutes, 48 seconds so that you know time to market becomes a bit faster instead of putting up a green field green field uh facility from the start. 36:58 36 minutes, 58 seconds Yeah to answer your question yes we are open for acquisition and high growth route. However we are also conservative 37:06 37 minutes, 6 seconds in acquiring any organization because it has to be a right fit with our philosophy. 37:12 37 minutes, 12 seconds So we will see in future how it develops. 37:16 37 minutes, 16 seconds So anything has been looking at currently at advanced stages for the four-wheeler or two wheeler. No. 37:24 37 minutes, 24 seconds All right sir. Thank you. 37:27 37 minutes, 27 seconds Thank you. Our next question comes from the line of Anuba from Precient Capital. Please go ahead. 37:34 37 minutes, 34 seconds Uh thanks for the opportunity. Uh uh so apart from Mercedes uh is there any 37:41 37 minutes, 41 seconds international OEM uh uh that we are like uh working with uh uh to get me? 37:48 37 minutes, 48 seconds We have a very we have a very initial working which has started for another OEMs uh which we will talk later. It is at a 37:57 37 minutes, 57 seconds very initial stage but we are talking to them. In fact they have approached us so we are working on them. 38:05 38 minutes, 5 seconds get that. And uh uh on the aftermarket business uh is that a focus area and are 38:13 38 minutes, 13 seconds we trying to like grow that because uh that has uh remained flat for quite some quarters. So if you can like throw some light on that. 38:24 38 minutes, 24 seconds We are working with OEM and the product belongs to our product. Whatever is being developed is belongs to the C customer and we are we are bound to as 38:34 38 minutes, 34 seconds per with the agreement we cannot s those supplies to market. 38:41 38 minutes, 41 seconds Right. So market is but you do have a but you do there are few product which are Yeah. There are few product which is uh 38:49 38 minutes, 49 seconds being developed by us in pass like uh for some specific customers wherein we are not in OEM we are supplying and uh 38:57 38 minutes, 57 seconds that market is very and another point is now the new all all the new uh businesses whatever is being 39:05 39 minutes, 5 seconds developed those are all in LED which is having no aftermarket it is already being used only once uh there is 39:11 39 minutes, 11 seconds accidents get that I'll get back Thanks. 39:19 39 minutes, 19 seconds Thank you. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 39:26 39 minutes, 26 seconds Our next question comes from the line of Vijay Kumar Pande from Noama. Please go ahead. 39:33 39 minutes, 33 seconds Hi sir. Thank you for taking my question. I just have couple of two questions. 39:41 39 minutes, 41 seconds Sorry to interrupt you sir but can you speak a little louder? Uh is it okay now? Yeah, please go ahead. 39:49 39 minutes, 49 seconds Yeah. Uh first I wanted to check in terms of how share with 39:57 39 minutes, 57 seconds and sorry to interrupt you sir. Your voice is breaking. 40:05 40 minutes, 5 seconds Hello. Is it okay now? 40:07 40 minutes, 7 seconds Uh can you move to a different environment and speak something? Is it okay now? 40:14 40 minutes, 14 seconds Yeah, please go ahead. 40:17 40 minutes, 17 seconds Yeah, I wanted to check uh about our wallet share with uh market share with 40:23 40 minutes, 23 seconds HMSI and Yamaha. largest uh declined as compared to what it was previously 40:31 40 minutes, 31 seconds because uh our growth has been slightly low lower that 40:38 40 minutes, 38 seconds uh what they have been growing at least the production rate at which they have been growing. So just want to understand 40:45 40 minutes, 45 seconds if you could throw a little bit light on that. 40:51 40 minutes, 51 seconds See uh it is already being replied in last question also because this is all depend on the model mix which model is running good which model is doing good 41:00 41 minutes which state is good which model which state is doing good. So this is only the model mix wherein overall market grew by 41:07 41 minutes, 7 seconds uh HMSI is 18% we are at 14%. So we are we are stable there. There is no uh market drop. 41:15 41 minutes, 15 seconds Okay. So sir between the model we are not present with HMS 41:22 41 minutes, 22 seconds there are few like highness headlamp we are not supplying front lighting is not supplying rear is not supplying. So there are few product wherein we are not 41:31 41 minutes, 31 seconds there but uh mo most of the market we we and most of the vehicles uh segment we are our presence is there. 41:40 41 minutes, 40 seconds Okay sir. Uh thank you. And secondly I wanted to understand uh about uh your 41:49 41 minutes, 49 seconds uh plan to get into the electronic segment. How do you see uh that 41:56 41 minutes, 56 seconds electronic segment to be developing and what like which are the products you are targeting to get into because 42:03 42 minutes, 3 seconds electronics includes a variety of segments. So if you can give little bit of electronic. 42:11 42 minutes, 11 seconds Yeah. These are the part of uh lighting only and uh what all LED business we are doing it is being well designed and 42:19 42 minutes, 19 seconds developed inhouse only. All SMT EMS process is being done in house and additionally the testing facilities 42:27 42 minutes, 27 seconds which is being under installation commissioning which will very soon be start that will also enhance our overall R&D capability which will be kept 100% of captive uses for lighting business. 42:41 42 minutes, 41 seconds Okay. Okay. Okay. So as such we are not getting into uh we will not be supplying any external electronics product. 42:51 42 minutes, 51 seconds No, as of now. 42:53 42 minutes, 53 seconds Okay. Okay, sir. Thank you. Thank you and all the best for upcoming quarters. Thank you. 43:00 43 minutes Thank you. Our next question comes from the line of Vinay Nadkarnney from Vatway Investments Private Limited. Please go ahead. 43:08 43 minutes, 8 seconds Yeah, just wanted to check out is there any uh uh input costs going up because of uh supply constraints or anything of that sort? 43:20 43 minutes, 20 seconds It is called nothing specific and if it does uh you know as we mentioned it is kind of 43:27 43 minutes, 27 seconds passed on. It sometimes comes with a lag but otherwise on the input costs are uh passed on on a rolling basis. 43:35 43 minutes, 35 seconds Okay. Secondly, can you help us with uh your Q3 capacity utilization of your plants? Roughly what would it be ballpark? 43:45 43 minutes, 45 seconds between u 77 78 odd percent but you know again these numbers also depend on how many shifts you are running and so on 43:53 43 minutes, 53 seconds and so forth but I think uh overall we are well positioned with our capex plan for the next year we've already spent 44:01 44 minutes, 1 second close to 80 crores uh in 9 months we will spend another 20 crores and also setting up enough uh capacities 44:08 44 minutes, 8 seconds for future so um so that we can handle the growth going forward in the next two Yes. 44:15 44 minutes, 15 seconds Okay. And what are these capex spent on in this year? If you have covered it somewhere, I'll just pick it up from there. 44:22 44 minutes, 22 seconds 48. 44:23 44 minutes, 23 seconds Uh no. Uh there is no specific uh we have given the plant wise or the but this is basically on the machines and the expanding the manufacturing 44:31 44 minutes, 31 seconds capacities only and some part is uh at the tapuka facilities. 44:38 44 minutes, 38 seconds Okay. And lastly uh does this FDA with the EU and UK open up some opportunities 44:45 44 minutes, 45 seconds for exports directly to manufacturers abroad or is that not possible? 44:54 44 minutes, 54 seconds Generally we deal with the entities here in India through an onward export. So for example a Yamaha or a Honda export 45:03 45 minutes, 3 seconds onwards. Uh we do not directly report except for a few. 45:07 45 minutes, 7 seconds Sorry to interrupt but there's some disturbance in the background. Mr. Vin, no there is no disturbance here. 45:16 45 minutes, 16 seconds No, it's from your end actually. Okay. Okay. Please go ahead. 45:22 45 minutes, 22 seconds Yeah. So uh there's no major implication as we explained uh most of the exports that we have are in the form of indirect 45:30 45 minutes, 30 seconds export where we actually export to the we sell to the local entity we the Honda and Yamaha who further export so they 45:37 45 minutes, 37 seconds may get a philip further. Similarly like uh Norton is being taken over by uh TVS which will be indirect sales to UK also. 45:47 45 minutes, 47 seconds The product will be supplied and manufactured here and will supply to TVs and TVs will forward it to UK. 45:54 45 minutes, 54 seconds No no what what I yeah that you had explained last time. 45:58 45 minutes, 58 seconds What I was trying to understand is uh uh for manufacturers in Europe and in UK manufacturers would you like to I mean 46:08 46 minutes, 8 seconds would you be exploring opportunities to supply to them directly not those who are manufacturing in India and we are already supplying like in Europe 46:15 46 minutes, 15 seconds we supply directly to Pazio Ailia we supply directly both the customers from here to uh for their for their different models. So this FDA will help you. 46:28 46 minutes, 28 seconds Uh not such. It is already in regular in regular supply and it is it will not be. 46:36 46 minutes, 36 seconds Thank you. Thank you. 46:40 46 minutes, 40 seconds Our next question comes from the line of Vira an individual investor. Please go ahead. 46:46 46 minutes, 46 seconds Yeah. Hi thanks for the opportunity. Uh just two questions. uh one is is one is to understand you know you talked about 46:54 46 minutes, 54 seconds increase in electronic content uh so the current lighting you know uh LED modules which you uh supply to customers if you 47:03 47 minutes, 3 seconds take that as a base of 100 then how much the content increases post increase 47:09 47 minutes, 9 seconds electronic content any rough indication it is totally be depend on product wise 47:18 47 minutes, 18 seconds uh it is very difficult to say percentage but it it it always varies from 30% to 80%. 47:26 47 minutes, 26 seconds On the existing base itself would I be right? Yes, exactly. 47:33 47 minutes, 33 seconds Okay, got it. And uh so just one last question was uh and this is to Mr. Jen. 47:39 47 minutes, 39 seconds Uh uh so our cash levels if you see you know that will just keep on increasing. 47:44 47 minutes, 44 seconds So despite the capex which we are planning and even you know even accounting for the potential PD plan 47:52 47 minutes, 52 seconds capex the overall cash position in the company would just keep on increasing. 47:57 47 minutes, 57 seconds So how are we thinking about utilization of this? I mean I'm just asking more from a 2 three or five year 48:04 48 minutes, 4 seconds perspective you know you know how are you thinking about utilization of this surplus cash? 48:11 48 minutes, 11 seconds Yeah. So we want you to be well positioned for any growth opportunities that may come by whether it's organic in 48:19 48 minutes, 19 seconds inorganic whether it is in four-wheeler or whether it is in a in our two-heer related space. So at this point of time 48:26 48 minutes, 26 seconds there is expansion anyway as we mentioned 200 odd crex going through in the next uh 18 to 24 months but uh yes 48:34 48 minutes, 34 seconds you're right even then we will have some surplus and I think we will at an appropriate time take a call but at this time we think uh business presents 48:41 48 minutes, 41 seconds opportunities which we could utilize this cash at some point of time and we are constantly looking for such opportunity. 48:50 48 minutes, 50 seconds Okay thank you and good luck. 48:55 48 minutes, 55 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Our next question 49:03 49 minutes, 3 seconds comes from the line of CA Garvit Coyel from Serene Alpha Analytics LLP. Please go ahead. 49:09 49 minutes, 9 seconds Hi uh thanks for the followup. Uh regarding the growth part, we are guiding for 15 to 20% kind of growth, right? Uh which is more or less 49:18 49 minutes, 18 seconds equivalent to our historical average of 15%. uh but if I look at your competitor they are on the higher base right and 49:26 49 minutes, 26 seconds they are uh growing and expecting to grow they are providing the guidance of maybe more than 20% kind of number on such higher base I agree that right now 49:34 49 minutes, 34 seconds we are into two two-heer segment uh but next year onwards I'm expecting based on your commentary like uh you will be getting some uh contribution from 49:42 49 minutes, 42 seconds four-wheeler meaningfully right so considering that thing in mind uh on a lower base as as compared to the competitor why are not we aggressive in the terms of the growth outlook. 49:51 49 minutes, 51 seconds of the growth outlook. 49:54 49 minutes, 54 seconds So on the four-wheeler side, I think So on the four-wheeler side, I think 49:57 49 minutes, 57 seconds we've already explained that we will we've already explained that we will kind of present you with those numbers. kind of present you with those numbers. 50:01 50 minutes, 1 second Those numbers are on top of this is the Those numbers are on top of this is the organic rate of growth that we are organic rate of growth that we are 50:05 50 minutes, 5 seconds talking about 15 to 20 and obviously we talking about 15 to 20 and obviously we 50:08 50 minutes, 8 seconds will strive for more but our guidance will strive for more but our guidance 50:10 50 minutes, 10 seconds continues to be in this range at this 50:23 50 minutes, 23 seconds Thank you for the clarification. Thank you. 50:26 50 minutes, 26 seconds Thank you. Our next question comes from the line of Shri Kant, an individual investor. Please go ahead. 50:33 50 minutes, 33 seconds Yeah, thanks for the followup. Uh post Q3 capex, what would be the current cash level? 50:41 50 minutes, 41 seconds Uh so this is 22 uh 2 222 crores as of 31st December. 50:47 50 minutes, 47 seconds Yeah. Thank you. All the best. 50:52 50 minutes, 52 seconds Thank you. Our next question comes from the line of Kush Nahar from Electum Portfolio Management Services. Please go ahead. 50:59 50 minutes, 59 seconds Yeah. Uh thank you for the opportunity again sir. So my question was more on the electronic side. So like we mentioned going on we'll focus more on 51:06 51 minutes, 6 seconds electronics. So I just wanted to understand this will be beneficial to us more in terms of content per vehicle on 51:13 51 minutes, 13 seconds the revenue side or more of backward integration which will help in you know maintaining 14% plus 14 to 16% ITA 51:22 51 minutes, 22 seconds margins. So where will we get the value from? 51:30 51 minutes, 30 seconds This will definitely be increase the value also. And another point is like uh in our CMD speech we are already working 51:38 51 minutes, 38 seconds on um upcoming technology where in lesser where in ADB where in metrics this will also give us a positive uh 51:45 51 minutes, 45 seconds sign once you have a electronics R&D facilities in house and testing and validation also. 51:55 51 minutes, 55 seconds So it will be both on revenue side also plus benefit from the beta margin also. Sure. 52:02 52 minutes, 2 seconds Okay sir. Thank you. 52:06 52 minutes, 6 seconds Thank you. Our next question comes from the line of Sahil Sanki from Monarch Network Capital Limited. Please go ahead. 52:15 52 minutes, 15 seconds Yeah. First of all congratulations for very good numbers. Um my first question is uh so this year uh what will be the 52:22 52 minutes, 22 seconds total capeex uh target uh and next year uh how much will be spent? 52:29 52 minutes, 29 seconds Uh this year will be 100 crores uh for FI26 and for the next two years we think it could be upwards of 200 cr around 200 odd cr. 52:39 52 minutes, 39 seconds So so 200 total right I mean not each but 200 total for next two years total for the next 24 months. 52:46 52 minutes, 46 seconds Okay. Okay. And secondly, at the start of the call, um um Jenser did say that there is uh a lot a lot of planning 52:55 52 minutes, 55 seconds going around green energy rollouts across the manufacturing units. So if if uh you can give some more information on 53:03 53 minutes, 3 seconds that, what kind of uh capacity of power plant are we trying to add and what kind of savings can we expect on the power cost? 53:12 53 minutes, 12 seconds Uh so s thank you uh for this green energy initiatives and whatever the renewable energy we are implementing 53:20 53 minutes, 20 seconds across our plants. One major part is the solar solar in the both form that is rooftop as well as the open access and 53:29 53 minutes, 29 seconds in the south we are also exploring the wind energy. Maybe uh next one or two quarter you will get a clear picture 53:37 53 minutes, 37 seconds where we are and but this initiative is already uh you know in a uh we are rolling it out and you will see the impact in next two three quarters. 53:48 53 minutes, 48 seconds So this will um any timeline when this can get commissioned if you can help us with that. 53:54 53 minutes, 54 seconds So okay so let me clarify this rooftop we will be implementing. So it is it takes around uh four to 6 months time 54:02 54 minutes, 2 seconds depending upon this capacity and open access is very you know uh short short timer. So it it is around 1 month or 2 54:10 54 minutes, 10 seconds months time 12 months. 54:12 54 minutes, 12 seconds No no that so to to start with we can start for the open access it takes around uh 2 months time to start and 54:19 54 minutes, 19 seconds then uh gradually that it is implemented. 54:24 54 minutes, 24 seconds So maybe next so maybe after two three quarters you will get the clear picture. 54:33 54 minutes, 33 seconds Okay. Okay. Thank you. That's all my sir. Thank you. 54:37 54 minutes, 37 seconds Thank you. My next question comes from the line of Vin Nadkarnney from Hatway Investments Private Limited. Please go ahead. 54:45 54 minutes, 45 seconds Yeah, just one one query we had uh see there is so much of dependence on one single sector automotive you had in the 54:54 54 minutes, 54 seconds past said that you are also looking at exploring other areas of indoor and outdoor uh applications 55:01 55 minutes, 1 second uh any progress on that because today the automotive sector is doing well so we are happy you know we've always been automotive 55:10 55 minutes, 10 seconds focused company and and that is something that we have always done and I don't think we mentioned anything in the indoor outdoor so our focus will 55:19 55 minutes, 19 seconds continue to be and our fortunes will continue to be driven by auto industry whether is positive or negative it will be driven by auto 55:27 55 minutes, 27 seconds so uh there is no other uh sector specific outside of automotive that we are looking at 55:33 55 minutes, 33 seconds okay fine thanks a lot sir thank you our next question comes from the line of CAVID coil from Seren Alpha 55:42 55 minutes, 42 seconds Analytics LLP please go ahead Uh hi uh thanks for the follow again. Uh sir you mentioned uh our certain 55:50 55 minutes, 50 seconds products are not getting we are not providing to uh our end customers Yamaha and HMSI. So I just wanted to understand uh what is the reason for that? Why aren't we not providing these products? 56:00 56 minutes Are these products getting provided by any other competitor of ours only or what is the scenario? 56:06 56 minutes, 6 seconds Uh I think uh uh this is let me clarify it again. We are talking about ex we were explaining to one question that how 56:15 56 minutes, 15 seconds we are supplying to the export and any you know global market. So what the OEM do they take this product from us in 56:22 56 minutes, 22 seconds India by their Indian entity only and then onwards they supply to their plants in Europe in Indonesia in Japan wherever it is. So that is the root otherwise 56:31 56 minutes, 31 seconds there is no uh such thing that we don't supply to our customers. 56:36 56 minutes, 36 seconds Uh no sir uh uh let me repeat uh I'm just trying to understand like the growth uh uh I think our customers are 56:43 56 minutes, 43 seconds growing at a higher pace in this particular quarter than the growth of our so that is why I think you explained key some of the products we are not 56:50 56 minutes, 50 seconds supplying uh so on that part I'm trying to understand from you key uh who is providing those products to those customers 56:58 56 minutes, 58 seconds competitors see this may be different competitors they may be supplying but uh whatever product is being supplied by 57:06 57 minutes, 6 seconds us. It is totally be depend on the requirement from the individual customers from worldwide. So global global requirement is not stable like 57:14 57 minutes, 14 seconds India do like domestic market here in India. It is totally be a depend on the area and uh month wise there are few 57:22 57 minutes, 22 seconds products which is always be run during uh high winter season for production of uh two wheeler vehicles is always be 57:30 57 minutes, 30 seconds reduced there. So this is a cycle only and we we are whatever model mix volume is being fixed at the time of RFQ these are all being supplied by us. 57:42 57 minutes, 42 seconds Understood. Understood. And uh it is not like uh the demand for the models which we are catering uh is not getting reduced right. It's not like that. 57:51 57 minutes, 51 seconds No no it is not like it is not like that. Okay understood. Thank you. 57:57 57 minutes, 57 seconds Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference 58:04 58 minutes, 4 seconds over to Mr. Sahil Sangi for closing comments. Over to you, sir. 58:10 58 minutes, 10 seconds Yeah, just time the management. Yeah, go ahead sir, please. 58:14 58 minutes, 14 seconds Yeah, I would like to thank everyone for participation in today's conference call. I hope that we have adequately 58:22 58 minutes, 22 seconds addressed all your queries. If you have any further question, please don't hesitate to contact us. Thank you and have a good evening. 58:33 58 minutes, 33 seconds Thank you on behalf of Bonak Network Capital Limited. That concludes this conference. Thank you for joining us.