Gabriel India Limited — Q2 FY26

Gabriel India Limited Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=MKCwiZpzDZI Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Gabriel India Limited Q2FI26 earnings conference call. This 0:09 9 seconds conference call may contain forward-looking statements about the company that are based on the beliefs, opinions, and 0:17 17 seconds expectations of the company as on date of the call. These statements are not the guarantees of future performance and 0:25 25 seconds involve risks and uncertaintities that are difficult to predict. As a reminder, all participant lines will be in the 0:33 33 seconds listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:41 41 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:49 49 seconds this conference has been recorded. I now hand the conference over to Mr. Atul Jagi, managing director from Gabriel 0:58 58 seconds India Limited. Thank you and over to you sir. Yeah. Uh thank you. Thank you so much. 1:05 1 minute, 5 seconds Yeah. Uh good morning everyone. A warm welcome uh to everybody present on the call and uh joining me today we have uh 1:14 1 minute, 14 seconds Mr. Mr. Goyel uh the group uh CEO uh Mohit our CFO, Mr. Nilles Jan our 1:21 1 minute, 21 seconds company secretary and SGA our uh investor relation advisor. 1:27 1 minute, 27 seconds We have uploaded our results and investor presentation for the quarter ended 30th September 2025 on the stock 1:34 1 minute, 34 seconds exchange and on the company's website. I hope each one of you had a chance to go through the same. 1:41 1 minute, 41 seconds The company entered into a joint venture with SK and Move Comp Limited, a leading Korean corporation to undertake the 1:50 1 minute, 50 seconds business of engineering, manufacturing and marketing of comprehensive range of automotive and industrial lubricants 1:58 1 minute, 58 seconds including engine oils, e-luids, shock absorber oils, greases and thermal management fluids. With Gabriel India 2:05 2 minutes, 5 seconds holding a 49% stake in the new joint venture, this partnership marks a strategic step towards expanding our 2:13 2 minutes, 13 seconds presence into newer product segments that complement our core business and support the evolving need of sustainable 2:21 2 minutes, 21 seconds mobility. This joint venture is in line with our ambition to transition from a suspension centric company to a 2:28 2 minutes, 28 seconds diversified and innovationdriven mobility solution provider. 2:33 2 minutes, 33 seconds Additionally, I would like to share an update on the revised joint venture agreement between Gabriel India and Inalpha roof systems. The earlier 2:43 2 minutes, 43 seconds proposal which had a shareholding of 49% by Gabriel India Limited and 51% by Inalpha was subject to PM3 approval. 2:51 2 minutes, 51 seconds However, the application for PN3 approval filed by Inalpha was rejected by the Ministry of Heavy Industries, 2:58 2 minutes, 58 seconds Government of India in the year 202 uh 2024. 3:03 3 minutes, 3 seconds Following this, both parties have agreed to revise the proposed shareholding structure to 65% by Gabriel India and 3:10 3 minutes, 10 seconds 35% by Inalpha subject to fresh PN3 approval. A revised joint venture agreement reflecting this structure will 3:18 3 minutes, 18 seconds be in installed in due course and its execution and implementation will proceed only after obtaining the 3:25 3 minutes, 25 seconds necessary regulatory approvals. Now let me start with providing a brief overview of the company's operation and key highlights in the uh automotive industry. 3:36 3 minutes, 36 seconds In quarter 2 FY 26 our standalone operating revenue grow uh grew by 15.4% 3:43 3 minutes, 43 seconds 4% yearonear reaching 2,66 cr supported by higher volume and strong sales performance in all our segments with the 3:52 3 minutes, 52 seconds two three-wheer growing by 15% passenger vehicle segment growing by 13% and commercial uh vehicle railway 4:00 4 minutes division growing by 35% yearonearita grew by 19% y reaching 96 crores with 4:07 4 minutes, 7 seconds margin improving from 8.7 to 9%. This improvement in margins is attributable to higher volumes and the continued 4:15 4 minutes, 15 seconds impact of our operational excellence initiative under the core 90 program. In the quarter gone by in alpha, Gabriel 4:22 4 minutes, 22 seconds Sunroof System Private Limited uh reported revenues from operations of 114 crores and aa margins at 16.5%. 4:31 4 minutes, 31 seconds The sunroof business continues to experience strong demand fueled by rising volumes and new vehicle launches. 4:37 4 minutes, 37 seconds On a consolidated basis, our quarterly revenue stood at 1180 crores, showcasing a growth of 15% on a Y basis and for the 4:46 4 minutes, 46 seconds halfyear revenue stood at 20 279 crores reflecting a growth of 15.5% as compared to H1 FY25. 4:56 4 minutes, 56 seconds AITA for the quarter stood at 160 in 116 crores reflecting growth of 18% on a Y 5:02 5 minutes, 2 seconds basis with margin standing at 9.8% 8% and for the H1 FY26 AITA stood at 225 crores marking a 5:11 5 minutes, 11 seconds growth of 19% on a year-on-year basis with margins standing at 9.9%. 5:17 5 minutes, 17 seconds PBT for the quarter was 91 crores uh showing a 11% growth year on year and on 5:24 5 minutes, 24 seconds for the sec for the half uh year our PBT stood at 172 crores marking a notable growth of 9%. 5:32 5 minutes, 32 seconds Quickly uh coming to the industry highlights uh for the quarter 2 FY26 the automobile industry delivered a healthy 5:40 5 minutes, 40 seconds performance growing by 9.5% Y with it volumes reaching 8.8 million units. This was supported by steady domestic demand 5:49 5 minutes, 49 seconds and strong export growth particularly for Africa, Latin America and Middle East. The early part of September saw 5:56 5 minutes, 56 seconds some softness as the customers awaited clarity on GST 2.0 low but demand rebounded sharply once the uncertainty 6:04 6 minutes, 4 seconds lifted. Overall Q2F by 26 closed on a positive note. As we enter the second half of the fiscal year, we see this 6:12 6 minutes, 12 seconds demand momentum continuing uh with a positive consumer uh sentiment. 6:19 6 minutes, 19 seconds Coming to the two-heer uh the two-wheer segment delivered a 10% year-on-year growth reaching uh 6.8 8 million units 6:27 6 minutes, 27 seconds were supported by uh uh very good rural demand and revised GSD GST structures. 6:34 6 minutes, 34 seconds Scooters led with 12% growth while motorcycle growth was 10%. Uh export was 6:41 6 minutes, 41 seconds really good. It hit a wonderful 1.3 million units rising 25% yearonear. 6:48 6 minutes, 48 seconds Overall the segment remains a key driver for the uh industry recovery. 6:53 6 minutes, 53 seconds Rewiller uh again uh the segment continued to post a healthy growth 21% year-on-year growth in this particular 7:02 7 minutes, 2 seconds quarter. Uh this was driven by easier financing and rising adoption of last mile mobility solution. Export in three 7:10 7 minutes, 10 seconds wheelers reached to 1.23 lakh units up by 51% on a YI basis. 7:17 7 minutes, 17 seconds On the passenger vehicle side, uh the Q2 FY26, the passenger vehicle segment demonstrated a gradual recovery with 7:25 7 minutes, 25 seconds volumes rising by 2.54% Y reaching 1.3 million units. The quarter started on a softer note but 7:33 7 minutes, 33 seconds gained traction towards the end supported by the GST 2.0 rate reduction, improving customer sentiment and the 7:40 7 minutes, 40 seconds onset of the festival season. A key highlight for the quarter was the sharp uh rebound in exports. PV ship export 7:48 7 minutes, 48 seconds shipment rose to 2.4 lakh unit, marking a 23% year-on-year increase. 7:54 7 minutes, 54 seconds On the CV side, uh the commercial vehicle this quarter delivered a healthy 9.4% Y growth with sales reaching 8:02 8 minutes, 2 seconds approximately 2.6 lakh units. uh the growth was uh uh 10.1% in the MH HCV 8:11 8 minutes, 11 seconds segment and while the LCV segment grew by 9%. Exports also grew by 22% reaching 8:18 8 minutes, 18 seconds to.24 lakh units. Quickly on the EV side the 8:25 8 minutes, 25 seconds uh electric vehicle segment recorded a strong Y growth of 13% with volumes now 8:31 8 minutes, 31 seconds reaching 5.8 lakh unit. Uh this is being driven by expanding product portfolio across the segment and improving charging infrastructure. 8:41 8 minutes, 41 seconds Uh showing a shift in the consumer preference towards cleaner and more costefficient solution. Looking ahead, 8:48 8 minutes, 48 seconds the Indian automotive industry enters the second half of FY26 on a strong footing supported by festive momentum, 8:56 8 minutes, 56 seconds stable uh macroeconomic conditions and the positive impact of GST 2.0. 9:05 9 minutes, 5 seconds On that note, I come to the end of my opening remarks. I I now request the moderator to begin the Q&A session. Over to you. 9:14 9 minutes, 14 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 9:22 9 minutes, 22 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 9:32 9 minutes, 32 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 9:43 9 minutes, 43 seconds We take the first question from the line of J K from Securities. Please proceed. 9:49 9 minutes, 49 seconds Yeah. Uh thank you for taking my question and good morning. Uh so my first question is on uh SKN move. uh you know if you could just outline some of 9:57 9 minutes, 57 seconds the uh you know details of the transaction in terms of what is the size of revenues that you're expecting uh 10:04 10 minutes, 4 seconds initially uh when could we start seeing this and also as a SK group has many 10:10 10 minutes, 10 seconds products globally uh so uh is there any uh thought process of uh you know eventually uh localizing some of these 10:18 10 minutes, 18 seconds products or getting those products uh over here if you can just uh elaborate a little bit on this uh transaction and your outlook on this on this. 10:27 10 minutes, 27 seconds Thank you uh thank you J for the question. We have our group CEO Mr. 10:32 10 minutes, 32 seconds Goyel. Uh sir if you are there you can you can answer give us the perspective. 10:44 10 minutes, 44 seconds a very light group uh which you have seen probably on the press note also and 10:52 10 minutes, 52 seconds uh whatever social media information was available. So they are in the different product line but uh for business which 11:01 11 minutes, 1 second we have uh entered into a joint venture with SK group it is for the lubricant which uh uh Mr. 11:10 11 minutes, 10 seconds covered in his initial briefing. So that is what uh uh our our initial joint 11:17 11 minutes, 17 seconds venture with SQL and we have not discussed anything about any any other products so far. So uh let us restrict 11:27 11 minutes, 27 seconds our discussion with respect to the lubricant business only and uh uh from the business point of view uh I think we 11:35 11 minutes, 35 seconds made a business plan and uh we expect this company to grow uh you know it's a it's a highly competitive market. It is a big market uh again it is a very very big market. 11:47 11 minutes, 47 seconds So there is a lot of scope uh uh to uh put our business uh you know as one of 11:54 11 minutes, 54 seconds the other player in the market and we expect to grow this business uh uh uh you know uh uh I mean based on our 12:03 12 minutes, 3 seconds business plan uh whatever we have made I think uh uh it should take almost uh uh 12:10 12 minutes, 10 seconds our aim is that this 500 K business in in next five to six years time basically. 12:18 12 minutes, 18 seconds Okay. 500 crores in the next five to six years uh time. Understood. And this will largely be uh in the uh replacement market business, right? So uh is it fair 12:27 12 minutes, 27 seconds to sorry after market? So is it fair to assume uh that this would fetch higher margins than the current company average margin? 12:37 12 minutes, 37 seconds So it is uh of course our idea is to not to not to have a different margins. Of course it is the initial period. So 12:45 12 minutes, 45 seconds initial period will start with the uh with the maybe one or two years with the slightly negative number but of course the margin will gradually will go up. 12:55 12 minutes, 55 seconds Actually that is what we have to see because any business will take time to grow and it is not only replacement 13:02 13 minutes, 2 seconds market it is also a OE market business basically. 13:08 13 minutes, 8 seconds Understood. Understood. uh uh and my second question is on your uh you know reported numbers uh if you see your margin profile you know while it has 13:16 13 minutes, 16 seconds been healthy above 9% on the console basis and a consistent basis uh but last couple of quarters maybe it's just kind 13:23 13 minutes, 23 seconds of flattering out despite you seeing strong traction on a revenue side uh on a quarteronquarter basis also. So just wanted to uh uh you know pick your 13:32 13 minutes, 32 seconds thoughts on how how are you seeing the pulls and pushes on the margin side and what should happen going forward for 13:39 13 minutes, 39 seconds this uh to further move up. So maybe uh J I'll I'll take this question. uh so uh as I think we discussed even in the last 13:47 13 minutes, 47 seconds call also uh uh with the uh MMAS acquisition I had mentioned earlier uh 13:55 13 minutes, 55 seconds that even in this quarter now we have realized uh a full quarter sale uh coming from MAS uh but uh yes the 14:03 14 minutes, 3 seconds margins there uh as discussed earlier have been under stress uh where we uh shared that we are looking uh at a 14:12 14 minutes, 12 seconds positive uh PBT by the end of the uh year. So definitely I think a little bit of uh impact and 14:20 14 minutes, 20 seconds pulling down the overall margins is coming from there. Uh but uh there's a clear plan which is available to uh sort 14:30 14 minutes, 30 seconds of break even and then take the margins to a similar level uh as the uh as the overall Gabriel number. But yes uh uh 14:39 14 minutes, 39 seconds that impact is is definitely coming in the last quarter also and this quarter also. 14:47 14 minutes, 47 seconds Understood. And that's around 50 60 crores revenues on a quarterly run basis. Little less little less than that. 14:54 14 minutes, 54 seconds Okay. Okay. And uh just on your uh uh market share on two wheelers and passenger vehicle suspension side uh you 15:02 15 minutes, 2 seconds know while we see that two wheeler suspension market share has is pretty steady at 30 32% uh since the last many 15:10 15 minutes, 10 seconds quarters uh passenger vehicles if you just highlight you know how are you seeing the market uh you know there has been some plateauing out or marginal 15:18 15 minutes, 18 seconds reduction in market share uh that we've seen uh how are seeing the competitive pressures over there 15:25 15 minutes, 25 seconds uh see uh again uh uh maybe uh I'll I'll speak about the new businesses here uh 15:32 15 minutes, 32 seconds for for say both the segments. Uh on the passenger car side as you as you rightly said I think the market share has been 15:39 15 minutes, 39 seconds hovering around this number uh but uh uh in this uh last quarter we have been able to secure uh three platforms three 15:48 15 minutes, 48 seconds new platforms uh uh all coming from uh uh Maruti. So definitely we are uh and 15:57 15 minutes, 57 seconds we have just launched uh one model uh with uh with Marauti Suzuki Victor. So 16:05 16 minutes, 5 seconds uh with with this uh business acquisitions we are now looking at improving the market share. Uh 16:14 16 minutes, 14 seconds so by by next year we are looking at another model which coming into SOP and then in the next further two years another two three models coming into 16:22 16 minutes, 22 seconds SOP. This is all secured business. So, uh we can easily expect uh a four to 5% 16:30 16 minutes, 30 seconds increase in the market share in the PC side also um starting from the next year. 16:38 16 minutes, 38 seconds So, uh this is this is one uh even uh on the two-heer side also I think the market share has been growing steadily. 16:46 16 minutes, 46 seconds Uh I have I have one good news to share that we have again there also we have secured couple of good businesses. uh uh 16:53 16 minutes, 53 seconds one of them with Yamaha for the inverted front folks, upside down front forks uh uh which will come into production by 17:02 17 minutes, 2 seconds the end of next year. Uh so there also we are expecting uh to to see a slight improvement uh there. 17:14 17 minutes, 14 seconds Understood. And just uh last couple of questions uh one is on your EV market share as well. you know how are you seeing that evolve given earlier you 17:22 17 minutes, 22 seconds used to be 100% share of business in most of the new models except Bajage uh but now you know with the market 17:30 17 minutes, 30 seconds settling down how are you seeing the split of business between various players incrementally and where do you see this market share settling uh of 17:37 17 minutes, 37 seconds course it's at very elevated levels currently and last one is on export side uh you know it's currently 2 3% of your 17:44 17 minutes, 44 seconds revenues uh now with this restructuring etc taking is uh reorganization how are you seeing exports opportunities are you 17:53 17 minutes, 53 seconds seeing uh green shoots over there to increase that share yeah so uh on the on the EV side uh uh 18:01 18 minutes, 1 second Jess uh again I think we while the market share has been historically uh high uh because we all we we got that 18:09 18 minutes, 9 seconds first mover advantage working with uh most of the EV players uh we continue to uh we continue to enjoy a healthy market 18:17 18 minutes, 17 seconds share there. Uh you but uh with with all the competition around in the long run 18:25 18 minutes, 25 seconds uh continuing to enjoy a 65 70% market share in such a competitive industry may not uh may not be possible but we would 18:33 18 minutes, 33 seconds still like to continue to be a dominant player there. As of now we have not lost any platform. uh uh the new businesses 18:43 18 minutes, 43 seconds continue to uh continue to flow like uh the recent uh uh uh river model which is 18:51 18 minutes, 51 seconds basically branded for Yamaha which was just launched showcased again has a Gabriel uh suspension 18:59 18 minutes, 59 seconds uh in it. the the latest launches of ultraviolet has uh the Gabriel suspension 19:06 19 minutes, 6 seconds uh and uh so uh but we are looking at uh the target is to to continue to have a more than 50% share in this particular 19:14 19 minutes, 14 seconds segment. So we we continue to put our efforts towards that. Even the last launch of TVS uh orbit 19:22 19 minutes, 22 seconds orbiter has a Gabriel suspension. So uh we we still we have maintained that 19:29 19 minutes, 29 seconds we'll continue to uh target more than 50% share and I think the actions are aligned uh with that. 19:37 19 minutes, 37 seconds Uh uh your second question was on the exports. Uh yes exports I think while uh 19:43 19 minutes, 43 seconds we uh we have always been targeting uh new businesses uh towards the export 19:50 19 minutes, 50 seconds side and uh as I shared uh I think couple of call back we have we have sort of uh added some resources also in the 19:58 19 minutes, 58 seconds organization put up a structure to start working on the exports. Uh we have not got uh any significant success. Uh there 20:07 20 minutes, 7 seconds are one or two discussions at an advanced stage. one on the commercial vehicle side, one on the the PC side which is going on. Uh but yes definitely 20:16 20 minutes, 16 seconds I think uh uh I I I hope something will materialize from there but uh just to 20:23 20 minutes, 23 seconds add to that uh the the efforts on the ebike and the solar side also will support our export journey. So overall 20:31 20 minutes, 31 seconds maybe I think uh another uh year or so we may look at a better number once these two products also come into regular production I would say. 20:43 20 minutes, 43 seconds Great. Uh thanks thanks and all the best and I'll follow. Thank you sir. Thank you. 20:49 20 minutes, 49 seconds Thank you. We take the next question from the line of Vira from SIMPL. Please proceed. 20:56 20 minutes, 56 seconds Yeah. Thanks for the opportunity. Congratulations on good set of numbers. 21:03 21 minutes, 3 seconds I just have a couple of questions. Uh first is if you can give sales aida pat 21:10 21 minutes, 10 seconds of the four group companies or H1 and the similar trend for last year and any 21:17 21 minutes, 17 seconds broader mix you can give in terms of end sector exposure like CV PV that is one. Hello. 21:25 21 minutes, 25 seconds Yeah. Yeah. So uh second yeah sure maybe uh just to share with you I think the the presentation that we had shared 21:33 21 minutes, 33 seconds uh had very clearly uh uh has has all the numbers uh the distribution of the 21:40 21 minutes, 40 seconds top line bottom line uh of all these the companies that four companies that I think what you are mentioning is basically the the part of the 21:48 21 minutes, 48 seconds restructuring I I I presume you are talking about uh the Dana Henkle uh enem 21:56 21 minutes, 56 seconds numbers So they are all part of the presentation that was uploaded. Uh all the business distribution u segment wise 22:03 22 minutes, 3 seconds also was shared earlier. Maybe uh any specific query is there. Uh maybe any H1 numbers you can share. Sir 22:10 22 minutes, 10 seconds uh we not be this year we will not be able because you're still going through all the uh regulatory approvals. We may not we will not be able to share the 22:17 22 minutes, 17 seconds latest numbers for that. uh but uh as we had mentioned I think all all the four entities continue to grow continue to do 22:26 22 minutes, 26 seconds uh very well uh and in line with what we had discussed in the previous calls post 22:32 22 minutes, 32 seconds the 30th June um approval. So okay okay okay yeah nothing has changed there they 22:40 22 minutes, 40 seconds continue to to sort of outperform the market they to do really well okay two three questions on that uh see 22:47 22 minutes, 47 seconds uh if you look at the management fee and the royalty especially in the three uh post the transfer of ownership to 22:55 22 minutes, 55 seconds Gabriel uh the management fee or royalty does that also get transferred to Gabriel or how will the distribution be 23:02 23 minutes, 2 seconds like and the same applies for the soup business post the you know uh shareholding structure we have arrived 23:09 23 minutes, 9 seconds at. So that is one. If you can give some more clarity how will that be distributed and will that also flow to 23:15 23 minutes, 15 seconds Gabia. So that is one during the maybe you can you can just ask okay we have noted uh V you can ask if you have 23:24 23 minutes, 24 seconds other question also. Uh yeah, second is on the Dana GV. Uh see if you look at Dana play in India, they have multiple entities. I think there are three four 23:33 23 minutes, 33 seconds different entities. Uh and if you look at the portfolio globally, they have a wide set of products other than drive line drivetrain products. So what will 23:42 23 minutes, 42 seconds be the part of this JV and what will not and uh they recently also set up this Ghana India CV which is 100% subsidy 23:51 23 minutes, 51 seconds which will also cater to access life sharps to the CV sector. So how will that affect the GV? 24:00 24 minutes Mhm. Want me to answer? 24:03 24 minutes, 3 seconds Yeah, Mr. You can definitely Okay. So, uh I think uh one I'll take the latest first question on the on the 24:13 24 minutes, 13 seconds inner side. So, Dana uh uh overall so let's not confuse with our joint venture 24:20 24 minutes, 20 seconds uh which is part of restructuring with Gabriel. So that has not changed anything with respect to uh the joint 24:27 24 minutes, 27 seconds venture that continues uh the way it has been continuing and it is growing the way it has been growing 24:34 24 minutes, 34 seconds head of market and as a mentioned all all companies are part of the restructuring they are they are they are 24:42 24 minutes, 42 seconds maintaining the way they have been performing in past in the same way actually basically and uh has reduced 24:49 24 minutes, 49 seconds its presence in India they have sold now fiveway business so So uh uh so 24:56 24 minutes, 56 seconds accordingly whatever business they left out there's nothing new which they they started and they were having this 25:04 25 minutes, 4 seconds business already which was 100% for dinner. So that continues which means our JV has not changed anything it 25:13 25 minutes, 13 seconds is continuing from the so our JV is for 100% for the dry shaft business and uh 25:20 25 minutes, 20 seconds and for Excel we are for up to uh say small commercial vehicle 25:27 25 minutes, 27 seconds XL Excel actually business but dry shaft for entire entire whether it is car or 25:34 25 minutes, 34 seconds it is SUV or it is commercial vehicle any kind of a commercial vehicle or or trailer or tractor anything 25:41 25 minutes, 41 seconds actually and whatever they serving Excel business it is it is already there for last 15 years which is primarily uh in a 25:50 25 minutes, 50 seconds segment which is not not is with joint venture actually nothing has changed in fact dana has reduced size in India 25:58 25 minutes, 58 seconds actually hello 26:07 26 minutes, 7 seconds yeah on uh management fee, royalty uh post the ownership transfer to Gabriel that will also get transferred or how will the distribution be like? 26:16 26 minutes, 16 seconds Gabriel is a manufacturing company. 26:18 26 minutes, 18 seconds Gabriel is a business thing is changing for the Gabriel and uh Anand has a separate wing for providing services 26:27 26 minutes, 27 seconds that continues to provide services to to Gabriel or to it's entire companies whether they are part of the 26:35 26 minutes, 35 seconds restructuring or otherwise actually nothing is changing for Gabriel as such basically okay last query uh see for the Dana 26:43 26 minutes, 43 seconds business uh JV they have a very sizable exports to us uh suppose this tariff you know which is there uh how does it 26:52 26 minutes, 52 seconds affect their business? So who bears the tariff and how does it affect the relatively competitive position uh because most of the exports are to the group entities uh globally. 27:03 27 minutes, 3 seconds Yeah. So nothing has impacted the tariff actually we continue to do same uh it means that any tariff in tax partially 27:11 27 minutes, 11 seconds it is applicable partially it is not applicable first 25% was applicable 27:17 27 minutes, 17 seconds other 25% was not applicable on exports da we are exporting back to dana so dana 27:25 27 minutes, 25 seconds is in turn recovering dana global I'm saying actually dana global is recovering from its customer okay and incremental competitive 27:33 27 minutes, 33 seconds position does it affect in terms of new business pipeline you know given the tariff which is there uh so far uh we it is not impacted in 27:42 27 minutes, 42 seconds fact we continue to do well but business line is growing as well basically so it is we have not seen any impact on the new business also 27:51 27 minutes, 51 seconds okay last question see next two to three years uh focus for us uh you know will largely be on consolidating 27:59 27 minutes, 59 seconds these four entities and the two JBs which we announced or you think there's enough pipeline in terms of new product additions. How should we understand next two three years focus for us? 28:10 28 minutes, 10 seconds I think initially earlier also uh we made a statement and we continue to maintain the same statement that Gabriel 28:18 28 minutes, 18 seconds is a growth future for the Anand group and that strategy continue basically. 28:24 28 minutes, 24 seconds So you know just to just to add add to it uh I think uh uh the the you have seen that even the supposedly 30th June 28:32 28 minutes, 32 seconds uh sort of restructuring uh discussion that we had and I think there there have been two uh two more sort of entities 28:40 28 minutes, 40 seconds that have been uh that have been created now. So the growth journey continues uh 28:47 28 minutes, 47 seconds basis the uh we continue to explore opportunities and whenever the right comes I think we go and take the next 28:54 28 minutes, 54 seconds step. So okay but is there a pipeline in place for you? 29:01 29 minutes, 1 second Yeah. So while not possible to share anything there but I think we uh at any time we continue to uh explore multiple 29:10 29 minutes, 10 seconds opportunities uh whenever uh it fits into our uh sort of strategy in into our aspiration into our direction we take 29:19 29 minutes, 19 seconds the next step. So so I'll come back in. Thank you very much. Thank you. 29:27 29 minutes, 27 seconds Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to 29:34 29 minutes, 34 seconds address questions from all the participants, please limit your questions to two per participant. We 29:41 29 minutes, 41 seconds take the next question from the line of Adita Ketan from Smith's Institutional Equities. Please proceed. 29:50 29 minutes, 50 seconds Thank you sir for the opportunity. 29:53 29 minutes, 53 seconds Just a couple of questions deep into our inner part. Uh so so they're getting a lower shareholding 30:02 30 minutes, 2 seconds compared to Gabriel your initial discussions with them what you suggesting like u are we looking the company 30:11 30 minutes, 11 seconds so with the higher volume or higher payout and maybe uh I think we are not able to hear 30:20 30 minutes, 20 seconds your voice clearly so either you come closer to the mic or if you're using the speaker maybe use a handset please. 30:27 30 minutes, 27 seconds Hello. Hello. Am I a sir? Oh, much better. Much better. 30:31 30 minutes, 31 seconds Yes, sir. Sir, my question was onto the Inela restructuring. So, they are getting a lower shareholding compared to Gabriel and since they were the technology 30:38 30 minutes, 38 seconds provider, what is your what are your initial discussions with them suggesting uh regarding the lower shareholding? 30:52 30 minutes, 52 seconds Uh hello. 30:55 30 minutes, 55 seconds Adita the question is discussions related to the lower shareholding. 31:02 31 minutes, 2 seconds So the question is regarding uh is is regarding the restructuring which is happening right now. So what is the discussion which I'm suggesting? 31:12 31 minutes, 12 seconds So the discussion is exactly what we just shared. Uh obviously when we are looking at you know the EPN3 initially 31:20 31 minutes, 20 seconds uh was not approved. So I think subsequent to that there have been continuous discussions between both the 31:26 31 minutes, 26 seconds uh both the organizations and uh uh the the current structure that we just shared with the 6535 31:34 31 minutes, 34 seconds uh has been sort of approved by by the NALA board also and has been approved by the Gabriel board also. So every 31:43 31 minutes, 43 seconds discussion has been in line uh uh with what we have just shared with them. 31:48 31 minutes, 48 seconds So post post approval of both the boards it has been shared by H1 K of 108 cr if you can share what 31:58 31 minutes, 58 seconds would be the folure KPIX and divided into segments like your second phase of sunroof and other businesses 32:06 32 minutes, 6 seconds the H1 KEX had MMA asset acquisition uh and that that was uh disclosed also. 32:14 32 minutes, 14 seconds that was the uh major number and I think we anticipate about 150 uh odd crores as 32:24 32 minutes, 24 seconds we've been doing regularly and in case of any there are some upgradation of uh uh 32:32 32 minutes, 32 seconds assets so maybe we might hit 180 odd cr of caps this year 32:40 32 minutes, 40 seconds okay uh s our phase one of has operating at full utilization level. So this phase two would be largely catering to the clear model. 32:53 32 minutes, 53 seconds No you said can you repeat the last line phase two would be catering to catering to newer models like yeah and 33:00 33 minutes other other clear. So um I think while I we have already shared that we had installed additional capacity uh so uh 33:10 33 minutes, 10 seconds in the in the sunroof business but I think uh the current uh Kia model uh uh unfortunately continues to not do so 33:19 33 minutes, 19 seconds well. uh so that is why even you have uh you have been seeing a sort of a more I would say a flatter trajectory uh in the 33:28 33 minutes, 28 seconds overall uh sales of uh in alpha. So I think the capacity is available uh there 33:34 33 minutes, 34 seconds for any future model coming in um but uh this the the current uh uh trend looks 33:42 33 minutes, 42 seconds to continue uh for the even for the next year also. 33:48 33 minutes, 48 seconds Okay sir. Got it. Thank you. Thank you. Thank you. 33:55 33 minutes, 55 seconds We take the next question from the line of Shubam Sag from SMPL. Please proceed. 34:06 34 minutes, 6 seconds Mr. Shoubam, your voice is not audible. 34:09 34 minutes, 9 seconds It is breaking. Could you please fix that? Hello. Hello. Yeah, much better. Yeah. Is it better? 34:17 34 minutes, 17 seconds Better? 34:17 34 minutes, 17 seconds Yeah, much better. Sure. Yeah. Uh my first question was so our railway business grew by almost 57% in H. So 34:25 34 minutes, 25 seconds could you some more color and uh is sustainable? 34:32 34 minutes, 32 seconds Uh yeah so uh see uh I think one the overall number is both CV and railways 34:41 34 minutes, 41 seconds uh put together. Okay. So uh the the growth that you see is basically in the CVR side. So it is CV and railway put 34:48 34 minutes, 48 seconds together. Uh the railway yes the growth has been has been quite good but the you know the railway uh the top line is is 34:57 34 minutes, 57 seconds generally very small uh contributor there. So it is it basically depends upon the uh the number of coaches uh 35:05 35 minutes, 5 seconds that are uh planned uh to be to be added per year. So basis that uh yeah we we 35:14 35 minutes, 14 seconds continue to enjoy a good market share there. uh it is is mostly a distributed business a tender-based business but we 35:21 35 minutes, 21 seconds continue to enjoy a good share on the especially on the uh the vandarat coaches and the train 18 coaches which 35:30 35 minutes, 30 seconds are the latest ones. So uh with focus uh continue the focus of the government 35:37 35 minutes, 37 seconds continuing uh on the railways we we we believe that I think this trend should continue may not be at that level again 35:46 35 minutes, 46 seconds it will purely depend upon the plan for the next year and the plan for the years ahead. Uh but yes we we anticipate a continued growth in this segment. 35:58 35 minutes, 58 seconds Okay. Okay. Got it. Uh my next question was that our two JVS the JNAP and SKN move one um firstly what would be when 36:07 36 minutes, 7 seconds uh would the commercialization begin for both of them and um in the in our move 36:14 36 minutes, 14 seconds uh JV so we are into lubricating and functional fluid. So I just wanted to know does it in any way conflict with our liqu agreement? 36:30 36 minutes, 30 seconds Okay. 36:31 36 minutes, 31 seconds Shall I answer? Uh yeah. So maybe I think uh liquid uh yeah you can answer s first otherwise I can 36:37 36 minutes, 37 seconds answer is no more a any arrangement actually that was already finished 36:45 36 minutes, 45 seconds almost 3 years back but there's no conflict because of that. Yeah. 36:52 36 minutes, 52 seconds And the commercialization to PV commercial go ahead. 36:58 36 minutes, 58 seconds FY 27 is when we are uh we are expecting uh and obviously uh something will start 37:06 37 minutes, 6 seconds because for JANV we need to set up a sort of a manufacturing location. So uh we are expecting that to happen by 37:14 37 minutes, 14 seconds somewhere I think the second half of the next year and post that uh uh it will it 37:20 37 minutes, 20 seconds will start. So okay so for both GBsC you can expect the commercialization to start in F by 27 37:28 37 minutes, 28 seconds then yeah so some see significant numbers would start flowing in by say start of 28 37:36 37 minutes, 36 seconds kind of a number but something will say start at the end of 27 but we will uh we can practically assume that in uh FYI 28 37:46 37 minutes, 46 seconds I think we'll start seeing some reasonable numbers coming. 37:50 37 minutes, 50 seconds Okay. Okay. Just just a question from my side. Um so uh in our other and uh so we 37:59 37 minutes, 59 seconds have a major aftermarket products which we are selling in India. So uh what would be the export scaler for this? 38:07 38 minutes, 7 seconds Would we be eligible to sell these products in global after markets? Could you just provide some color? 38:14 38 minutes, 14 seconds Uh this question is related to NAMCO. Yes. 38:20 38 minutes, 20 seconds uh ENMCO. So ENMCO there is no sort of restriction on selling anything uh for 38:26 38 minutes, 26 seconds uh for exports. Yes. Uh they uh the the business is a mix of OE, OES and 38:33 38 minutes, 33 seconds aftermarket business. And uh there's there's no restriction uh to sort of move out and uh start the supplies on both. 38:44 38 minutes, 44 seconds So just to be clear, we can we would be eligible to sell those products in the global aftermarket as well. Yeah, we we can we can the only thing is like a a product like D the diesel exhaust fluid. 38:55 38 minutes, 55 seconds Now the transportation because it you know it is it is a water-based product. 39:00 39 minutes So the uh it is very competitive product. So the transportation plays a very very important role uh in that while theoretically uh there's no uh 39:09 39 minutes, 9 seconds there's no uh stoppage on that. But yes the uh uh generally you have to be 39:16 39 minutes, 16 seconds closer to uh to the uh sort of usage point. That is why in this particular case for this product you see uh smaller 39:24 39 minutes, 24 seconds plants but much closer to the customer locations and distributed across the country. uh so uh because this this cost 39:32 39 minutes, 32 seconds plays a very important role on the on the coolant and the other uh PU or the PVC kind of products there's there's no 39:39 39 minutes, 39 seconds restriction we can do uh any export okay all right thank you I'll join back in the queue 39:49 39 minutes, 49 seconds thank you we take the next question from the line of Amit Iranandani from Philip Capital please proceed 39:57 39 minutes, 57 seconds uh yeah thanks for the opportunity Sir my question is related to the uh sunroof business. So wanted to understand how's the traction present in 40:06 40 minutes, 6 seconds the sunroof business. Any new order from key clients also now the capacity is ramped up to 40:14 40 minutes, 14 seconds around 400,000 units annually. So what is the present utilization level? 40:19 40 minutes, 19 seconds Yeah. Okay. Uh so uh oh thank you on uh so on the on the sun I'll I'll give you 40:27 40 minutes, 27 seconds a little update. uh now uh uh in terms of the current uh capacity utilization I 40:34 40 minutes, 34 seconds think uh as I said earlier because the the KIA cyros and the Alkazar have not sort of performed up to the desired 40:43 40 minutes, 43 seconds level while they are obviously the KIA is now planning some some updates some exports for that particular model we'll have to see how they pan out in the 40:51 40 minutes, 51 seconds second half of the year or the start of next year uh the capacity utilization continues to be at exactly at the same 40:59 40 minutes, 59 seconds level and we we have practically sort of idle capacity available almost I would 41:05 41 minutes, 5 seconds say a line the second line is not utilized currently uh because of these two models not doing uh so well so 41:14 41 minutes, 14 seconds currently we are at a much lesser utilization uh in terms of new businesses uh I think 41:25 41 minutes, 25 seconds we have got few RFQ additional RF which we are working on now uh uh both with 41:32 41 minutes, 32 seconds the the local customers and uh uh uh the other customers the Japanese customers uh there uh one challenge that we have 41:41 41 minutes, 41 seconds is that the current uh business that is uh that is the main business there uh we have not been able 41:50 41 minutes, 50 seconds to win the uh the new platform that will come into the production in 2027. 41:57 41 minutes, 57 seconds So uh it becomes all the more important for us to uh sort of work and work on 42:03 42 minutes, 3 seconds the new RFQS and when uh certain new businesses to fill up the gap that may come in the second half of 2027 assuming 42:13 42 minutes, 13 seconds the model starts as per the timelines uh there. So we are expecting uh sort of a 42:20 42 minutes, 20 seconds flatter trajectory uh for for for the next couple of years and uh we need to 42:26 42 minutes, 26 seconds fill the pipeline moving forward. So uh right sir so is it any kind of a 42:36 42 minutes, 36 seconds you know you have some 1,000 cr target revenue right by by 30 so 42:42 42 minutes, 42 seconds I think uh looking at the uh the current uh situation uh I think we uh we may not be able to achieve that number by 2030. 42:53 42 minutes, 53 seconds uh while as I said I think there are multiple RFQS uh in uh uh in uh in the 42:59 42 minutes, 59 seconds pipeline uh under discussion but uh I think a more realistic number is that 43:07 43 minutes, 7 seconds the the aspiration continues to be the same but I think we may see a a year or a twoear delay into achieving that 43:14 43 minutes, 14 seconds number. uh we have we are reworking those numbers but maybe the 2030 number of uh thousand may not happen in 2030. 43:25 43 minutes, 25 seconds There can be a delay of one or two years there in this business. 43:35 43 minutes, 35 seconds Just a followup question the last question. 43:41 43 minutes, 41 seconds No AIT uh I uh if you ask something after I spoke we could not hear you. 43:50 43 minutes, 50 seconds Sorry I was just saying that any kind of margin pressure you are seeing here in the Sun business. 43:57 43 minutes, 57 seconds Uh not on the uh not on the current products that are there. Uh okay. Uh because uh some work on the localization 44:05 44 minutes, 5 seconds etc is also happening. Uh so not not in the immediate term but yes obviously with uh with multiple players now 44:13 44 minutes, 13 seconds competing for uh for the sunru business uh with many new players getting added yes uh the business finally would any 44:21 44 minutes, 21 seconds new business would come at a competitive price. 44:25 44 minutes, 25 seconds So that we will have to uh wait and watch to see once we get uh the new businesses but uh nothing on the current 44:41 44 minutes, 41 seconds Mr. Amit, are you on the line? Can you please unmute yourself? 44:49 44 minutes, 49 seconds Okay, we'll proceed with the next question. The next question is from the line of sukid part from eyesight trade private limited. Please proceed. 45:03 45 minutes, 3 seconds Good afternoon team. Uh I have two uh forward-looking questions. Uh you have given good guidance about the margins and everything. Uh I just want to 45:11 45 minutes, 11 seconds understand you know looking beyond this quarter strong numbers. Uh what is the bigger plan for uh G for uh Gabriel as 45:19 45 minutes, 19 seconds the auto industry shifts towards uh electrification and premium suspension 45:26 45 minutes, 26 seconds uh module and uh global supply chain uh integration. How are you uh planning to build a lasting edge for the company? 45:37 45 minutes, 37 seconds You know, beyond just uh segment growth or joint joint ventures, is there something uh deeper 45:45 45 minutes, 45 seconds planned in like uh you know, tech it tech uh platforms uh or any innovation 45:53 45 minutes, 53 seconds pipeline, you know, that's something that gives you the edge over your uh competitors. Yeah. Thank you. Thank you. 46:00 46 minutes Yeah. No, thanks for question. Uh, so uh 46:08 46 minutes, 8 seconds can you uh there's a lot of background noise? 46:13 46 minutes, 13 seconds I will just uh mute myself. One sec please. 46:17 46 minutes, 17 seconds Yeah. Thank you. Thank you so much. So uh yes uh so uh I I'll come to technology on the premium models. Yes. 46:24 46 minutes, 24 seconds you we see a clear pre the market shift towards premiumization while the overall numbers are are in increasing uh so the 46:34 46 minutes, 34 seconds market is moving towards premiumization and so is uh sort of our product portfolio also moving towards that because uh I just also shared I say an 46:44 46 minutes, 44 seconds example of two-heer I think the market is clearly moving towards the inverted front folks the upside down fronts monoshocks where uh the the uh the 46:54 46 minutes, 54 seconds products are uh far superior in terms of performance. Obviously the realization is also much better there. So the market 47:02 47 minutes, 2 seconds is moving towards that. Gabriel has also been significantly moving towards that. 47:07 47 minutes, 7 seconds As I said we recently won another order from Yamaha uh for one of the platforms of inverted front folks. uh our new 47:15 47 minutes, 15 seconds business acquisitions with the other customers including uh TVS being the large largest customer for us continues 47:24 47 minutes, 24 seconds uh there and there are multiple discussions going on uh for that. Uh now especially on the technology piece uh as 47:33 47 minutes, 33 seconds I think most of you are aware that uh uh 3 years back we had set up a tech center in Europe. uh we have been investing a 47:42 47 minutes, 42 seconds significant amount of uh uh money uh towards the technology upgradation whether it is the next generation 47:49 47 minutes, 49 seconds products on the passive side or whether they the on the electronic suspension side uh uh I'm I'm also happy to share 47:58 47 minutes, 58 seconds that uh today we are working uh on multiple PC's with customers uh both on the two-heer side also on the passenger 48:07 48 minutes, 7 seconds car side on the uh on on on the technologies that I have shared and there's a clear uh tech road map 48:14 48 minutes, 14 seconds available uh uh there and we have uh we have been filing uh continuous uh 48:22 48 minutes, 22 seconds patents on the new technologies uh that we have been developing as I said whether on the passive side also on the active side uh there so that journey 48:30 48 minutes, 30 seconds continues the investment continues uh we uh we have been continuously strengthening the team in in Europe both 48:37 48 minutes, 37 seconds in Europe and India uh especially with a focus on being ready for the for the future also uh in India but also for the 48:47 48 minutes, 47 seconds global markets. So uh I I hope I've been able to answer if uh 48:55 48 minutes, 55 seconds any specific point is there I can no no thanks for the thing uh my my second question uh to Mr. movie know 49:03 49 minutes, 3 seconds again a forwardl looking one when costs rise whether it's raw materials logistic or 49:11 49 minutes, 11 seconds compliance issues uh how how do you make sure the margins stay steady without uh you know putting any pressure on the 49:18 49 minutes, 18 seconds profits is there any uh system that uh you have built or you put into place uh 49:26 49 minutes, 26 seconds you know that quietly helps you uh stay keep the profits up you know even when things are getting sometimes out of 49:33 49 minutes, 33 seconds control or uh you know something so yes I just want to hear your view on this thanks thanks so I think you have 49:40 49 minutes, 40 seconds asked this question to Mohit so I'll allow Mohit to answer but before that I'll just add two points and then Mohit would uh add on to it see one is on the 49:50 49 minutes, 50 seconds compliance part of it so uh on the compliance part there's no it is nothing to do with the the profitability per se compliance is something which is 49:58 49 minutes, 58 seconds sacrosant which is mandatory it has to Okay. So, uh that is one. Second, uh I think we have been mentioning about the 50:07 50 minutes, 7 seconds core 90 program where we look at all the aspects of the cost uh and we continue to uh obviously we continue to face 50:14 50 minutes, 14 seconds various challenges. We continue to find uh u some solutions uh to sort of handle 50:22 50 minutes, 22 seconds those challenge and and continue our journey. uh restite I think Mohit can add. I think uh you have already covered 50:30 50 minutes, 30 seconds uh compliance uh uh no negotiation and uh uh this is something which is uh 50:37 50 minutes, 37 seconds being uh talked about in the town halls in in the induction program in in the very periodic reviews which we have uh 50:46 50 minutes, 46 seconds that is that is a very essential part of doing business uh within Gabriel uh in terms of the profitability and of course 50:54 50 minutes, 54 seconds uh the couple of uh jerks which we is we talked about uh uh MMA's uh uh turnaround strategy and the program 51:03 51 minutes, 3 seconds which we have is core 90 where I think all the liberal leadership participates in terms of uh taking the 51:12 51 minutes, 12 seconds uh certain targets factoring in the contingencies which might land uh during 51:19 51 minutes, 19 seconds the way and then track the progress on periodic basis and that has been the key in terms of uh sustaining the margins. 51:28 51 minutes, 28 seconds So over the period of time despite having uh now putting up a significant 51:34 51 minutes, 34 seconds money in MAS then also uh the kind of uh restructuring we are doing also leads to 51:42 51 minutes, 42 seconds certain expenses but we are ensuring that through a very sustainable structured core 90 program we should be able to meet the expectations of the investors. 51:52 51 minutes, 52 seconds Like any business some expected some unexpected challenges keep coming right like if you see take an example of Maharashtra suddenly there's lot of 52:00 52 minutes pressure on the power tariffs which for a short term would we be seen in the sort of variable cost because now the 52:08 52 minutes, 8 seconds the banking is not allowed for the renewable energy. So automatically the the tariffs uh go up, your electricity bills go up, but then you through the 52:16 52 minutes, 16 seconds core 90 program you you come up with certain more ideas and initiatives to sort of bring this back to a normal thing. So this is I think there's a 52:25 52 minutes, 25 seconds there's a good systematic approach that is available uh in the organization. I have to sign off now. 52:33 52 minutes, 33 seconds Okay. Okay. We'll continue. No, no worries. Thank you. 52:36 52 minutes, 36 seconds Thank you for the guidance and I wish the team best of luck for Q3. Thank you. Thank Thank you. Thank you. 52:45 52 minutes, 45 seconds We take the next question from the line of Sura Cha from 3P Investment Manager. Please proceed. 52:52 52 minutes, 52 seconds Yeah. Uh thanks for the opportunity. Am I audible? Yes. Yes. Yes sir. 52:58 52 minutes, 58 seconds Yeah. Sure. So uh my question is on this uh the new Creta platform which you mentioned right? Uh what is the timeline 53:04 53 minutes, 4 seconds for this? Is it second half of EI27 or FI27? 53:09 53 minutes, 9 seconds Uh this is uh 20 FY 2728. 53:18 53 minutes, 18 seconds Okay. The second half of Okay. 2 of FI28. Yes. Yes. Yes. FYI 28. Yes. 53:23 53 minutes, 23 seconds Okay. And so this will be a 100% share of business for uh competition or how does it work in you know? 53:31 53 minutes, 31 seconds So there are two variants to it. One is the EV variant and second is the ICE variant. We continue on the EV variant. 53:38 53 minutes, 38 seconds uh uh but uh uh the uh we lost the ICE variant of this uh now EV numbers as of 53:46 53 minutes, 46 seconds now are not uh as strong as the ICE variants. 53:51 53 minutes, 51 seconds Let us see how how it pans out in the next couple of years. Understood. Yeah. 53:57 53 minutes, 57 seconds And what is the key rational for OEM source feature because you are very you know strong existing supplier for them. 54:03 54 minutes, 3 seconds uh is their pricing a key uh rational for them or if you can highlight some color on those. It 54:10 54 minutes, 10 seconds is very u very difficult to to say uh because in in lot of these cases 54:17 54 minutes, 17 seconds sometimes the decisions u uh happens more looking at the global businesses. 54:24 54 minutes, 24 seconds Sometimes the decision happens at a very local level. Uh so uh it is not uh only 54:33 54 minutes, 33 seconds sometimes it can be only competitiveness sometimes it is a combination of multiple other things uh there so very 54:40 54 minutes, 40 seconds very difficult to pinpoint exactly what happens but again casetoase basis it may it may vary 54:47 54 minutes, 47 seconds understood and uh how is are you close to a breakthrough with any Japanese OEMs for sunroof business if can give some uh 54:56 54 minutes, 56 seconds colors in terms of you over next two three years are you expecting any good new high volume models you know in terms 55:03 55 minutes, 3 seconds of your sunroof business? No, definitely as I said I think there are multiple uh RFQS uh that are there. Uh we have also 55:11 55 minutes, 11 seconds uh made a sort of a separate team to work on the new business acquisition to create a business pipeline uh uh for uh 55:20 55 minutes, 20 seconds for this uh business. Uh definitely I think we uh expect to fill up now when it happens which is the first customer 55:29 55 minutes, 29 seconds that happens uh we will have to wait and watch whether it is the Indian customer or Japanese customer or any other 55:35 55 minutes, 35 seconds customer. Uh but we will we'll keep sharing the updates on a quarterly basis. 55:42 55 minutes, 42 seconds Sure. Sure. The second question was on your standalone margin right. So before uh MMS acquisition you were targeting a 55:50 55 minutes, 50 seconds double digit margin say over one or two years right I understand that with you know integration of uh MMA the margin 55:58 55 minutes, 58 seconds profile has come off uh so what is the realistic target for you say by fi 28 in terms of standard margin any ballpark range which you can give maybe somewhere 56:07 56 minutes, 7 seconds between 9 to 9 and a half% or you still hold on to that 10% target for you over next two three years 56:14 56 minutes, 14 seconds see uh again um The as as we always have said that the aspiration the target has been to go to a double digit margin. Uh 56:23 56 minutes, 23 seconds we continue the journey towards that. uh on and off. Uh some challenges would come uh maybe uh sometimes needed for 56:32 56 minutes, 32 seconds the growth of the organization because with MMS obviously we add some customers, we add capacities, we add uh 56:39 56 minutes, 39 seconds a new product uh uh there and as we mentioned on it the target is to sort of make it uh to a positive uh 56:47 56 minutes, 47 seconds profitability by the end of the year. uh but u looking at the next couple of years the uh there's no change in the 56:55 56 minutes, 55 seconds target that we we have set for ourselves. Uh understood. Yeah. Thank you so much. 57:02 57 minutes, 2 seconds Really appreciate your attended conversation with the investors. Thank you. Thank you sir. Thank you. 57:09 57 minutes, 9 seconds Thank you ladies and gentlemen. Due to time constraints that was the last question for the day and would now like to hand the conference over to Mr. Atul 57:18 57 minutes, 18 seconds Jagi for closing comments. Over to you sir. 57:22 57 minutes, 22 seconds Yeah thank you. Thank you. Uh so I take this opportunity to thank everyone for joining on the call. I hope we have been able to address all your queries. Uh for 57:31 57 minutes, 31 seconds any further information kindly get in touch with any uh of us or our uh strategic growth advisers our uh IR advisor. Thank you so much. 57:43 57 minutes, 43 seconds Thank you on behalf of Gabriel India Limited. That concludes this conference. 57:48 57 minutes, 48 seconds Thank you for joining us and you may now disconnect airlines.