Lumax Industries Limited — Q3 FY26

Lumax Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=AqTMD4A2kf4 Published: 3 months ago

0:01 1 second Ladies and gentlemen, welcome to the quarter 3 and 9 months FY26 earnings conference call of Lumax Industries 0:09 9 seconds Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 0:20 20 seconds These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that 0:28 28 seconds are difficult to predict. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:36 36 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:45 45 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:52 52 seconds Deepak Chan, chairman and managing director of Lumax Industries Limited. Thank you and over to you sir. 1:01 1 minute, 1 second Thank you very much. Good morning and thank you for joining us for the Lumax Industries Limited Q3 and 9month FY26 1:08 1 minute, 8 seconds earnings conference call. I'm joined by our leadership team including Mr. Amul Jen the joint managing director, Mr. 1:15 1 minute, 15 seconds Sanjim Hetta, group CFO, Mr. Rabi Tilpia the CFO of the company, Mr. Nabal Khana the corporate head of taxation, Miss 1:22 1 minute, 22 seconds Priyanka Sharma, head of corporate communication. I would also like to introduce Miss Surabhi Chana who joined 1:29 1 minute, 29 seconds on this call as the group head of investor relations and value creation and along with our investor relation advisor SGA. The result and investor 1:39 1 minute, 39 seconds presentations have already been submitted to the stock exchanges and are available on the company's website and we trust that you've had the opportunity to review them. I will begin by giving 1:47 1 minute, 47 seconds an overview of the economy followed by the automotive industry performance and the company updates. India's economic momentum remains strong and supported by 1:56 1 minute, 56 seconds resilient domestic demand and steady structural reforms. The economy continues to grow at a pace that places India among the fastest growing major 2:04 2 minutes, 4 seconds economies globally. The recent union budget reinforces this momentum with a clear focus on growth, stability and long-term competitiveness. At the same 2:13 2 minutes, 13 seconds time, the sustained push on public capital expenditure, particularly across infrastructure, manufacturing and logistics, is expected to strengthen 2:21 2 minutes, 21 seconds supply chains, enhance private investment, and generate employment. 2:25 2 minutes, 25 seconds Together, these levers of consumption support and public capex are expected to drive economic growth. In parallel, 2:32 2 minutes, 32 seconds recent developments on the trade fund, including the US trade agreement and progress on the EU FDA, should be positive for the industry over the 2:41 2 minutes, 41 seconds medium-term by improving market access and competitiveness. 2:46 2 minutes, 46 seconds Now, regarding the automotive sector, the momentum remains really strong with the industry continuing to fire on all cylinders. The union budget has 2:55 2 minutes, 55 seconds reinforced this outlook through a higher allocation under the PLI auto scheme for FI27. 3:01 3 minutes, 1 second In addition, a 40,000 cr outlay for the electronic manufacturing program is set to enhance domestic capabilities in 3:08 3 minutes, 8 seconds semiconductors, sensors, and power electronics that are critical for modern and electric vehicles. 3:15 3 minutes, 15 seconds On the quarterly industry performance, despite Q3 being a seasonally weak period, the automotive industry has delivered its best ever third quarter. 3:24 3 minutes, 24 seconds As per CM production data for October to December quarter, the passenger vehicle production stood at AC about 14 lakh 3:32 3 minutes, 32 seconds units up 19% yearonear. Two wheelers were around 68.1 lakh units up 15% yearonear. Three wheelers are roughly at 3:41 3 minutes, 41 seconds about 3.5 lakh units up about 35% yearonear and commercial vehicles are close to 2.9 lakh units up 18% year on 3:49 3 minutes, 49 seconds year. This broad-based growth has been driven by three key factors. Improved affordability following the GST rate 3:56 3 minutes, 56 seconds reductions, benefits from personal income tax relief, enhancing disposable income, and successive repo rate cuts by 4:04 4 minutes, 4 seconds the RBI, which have eased financing cost and supported demand across vehicle categories. Overall, this robust 4:11 4 minutes, 11 seconds performance in H2 has led to 2025 being the best year for the Indian automotive industry across segments. The year-end 4:18 4 minutes, 18 seconds sales push, healthy pipeline of bookings, and the full transmission of 2025 rate cuts into lending rates are expected to support demand, pointing to continued growth momentum into 2026 27. 4:31 4 minutes, 31 seconds Regarding the Lumax industries, we are proudly reporting our best quarterly performance in the history of our operations. 4:39 4 minutes, 39 seconds Revenues for the quarter grew by 18.7% year-on-year to rupees 1,053 crores with 4:46 4 minutes, 46 seconds improvement on profitability front with EITA of 10.6% for Q3 FI26 compared to 8% 4:54 4 minutes, 54 seconds in the same period last year. The Indian automotive lighting industry today stands at the cusp of significant technological transformation. And as 5:03 5 minutes, 3 seconds vehicles become smarter, safer, and more design-led, lighting has evolved from a functional component to a key element of safety, differentiation, and brand 5:12 5 minutes, 12 seconds identity. With the rapid shift of LED technology, advanced lighting systems, DRLs, and signature designs, the content 5:19 5 minutes, 19 seconds per vehicle continues to rise. This structural premiumization presents a strong value opportunity and 5:26 5 minutes, 26 seconds Lumax Industries is well positioned to benefit from the increasing technology intensity per vehicle. Over the years, we have evolved alongside the industry and in many ways led it advancements. 5:38 5 minutes, 38 seconds Through a long-standing partnership with Stanley, a global leader in automotive lighting, we have introduced cuttingedge technologies to the Indian market, 5:45 5 minutes, 45 seconds elevating design, engineering and quality standards. This has strengthened our product portfolio, enhanced our kit value across platforms. On the order 5:53 5 minutes, 53 seconds book front, current order book stands at 1759 Kores. We have secured multiple new 6:00 6 minutes orders from leading OEM across segments, further strengthening order book. In the passenger vehicle segment, we have won orders from Tata Motors for the newly 6:08 6 minutes, 8 seconds launched Sierra where we'll be supplying the front fog lamps and auxiliary tail lamps. We have also secured business for the Tata punch facelift supplying the 6:17 6 minutes, 17 seconds front DRLs and the position lamps. Our team executed the P punch lighting project at exceptional speed transforming the concept into a 6:25 6 minutes, 25 seconds delivered product in the shortest possible timeline. In the three-wheeler segment, we have also received orders from Mahindra for their last mile mobility e- richas where we'll be 6:33 6 minutes, 33 seconds supplying headlamps, tail lamps, and reflex reflectors. In the two-heer segment, we have won a prestigious order from TVS for the flagship Apache RTX300 6:42 6 minutes, 42 seconds for the supply of headlamps. On the capex front, Bangoru plant expansion to support Maruti and Toyota's upcoming 6:50 6 minutes, 50 seconds models is progressing as planned and is expected to be commissioned from Q4 FI27. 6:56 6 minutes, 56 seconds Additionally, phase two of our chaken facility remains on schedule to commence operations from Q4 FI26 and will 7:03 7 minutes, 3 seconds primarily cater to the requirements of Shakoda and Volkswagen, further strengthening our presence with global OEM partners. Overall, supported by 7:11 7 minutes, 11 seconds strong industry tailwinds and backed by our proven capabilities, deep OEM partnerships and technology focus, we are well positioned to strengthen our 7:19 7 minutes, 19 seconds leadership position. We remain confident of staying at the forefront of automotive lighting industry while driving sustainable growth and long-term 7:26 7 minutes, 26 seconds value creation. I now hand over the call to our CFO for Mr. Ravi Titia for updates on operational and financial performance. Please go ahead Ravi. 7:37 7 minutes, 37 seconds Thank you sir. Good morning everyone. 7:39 7 minutes, 39 seconds I'll walk you through the key operational and financial highlights for the quarter and 9 months ended 31st December 2025. 7:47 7 minutes, 47 seconds As our CMD mentioned earlier, we have delivered our best performance to date across all key parameters. Starting with the quarter ended 31st December 2025. 7:59 7 minutes, 59 seconds Our total operating revenue stood at 1053 crores reflecting a strong year growth of 18.7%. 8:07 8 minutes, 7 seconds This was largely driven by robust growth in our manufacturing business where revenues grew 35.8% 8% yearonear to 1014 8:16 8 minutes, 16 seconds crores. Abita excluding exceptional items for the quarter came in at rupees 8:23 8 minutes, 23 seconds 112 cr a growth of a growth of 57.3% y. Our avita margin improved to 10.6%. 8:33 8 minutes, 33 seconds The margin expansion was supported by operating leverage improved performance across plants and content per vehicle. 8:40 8 minutes, 40 seconds Profit after tax including share of associates stood at rupees 47 crores up 39% yearonear with a bat margin of 4.4%. 8:51 8 minutes, 51 seconds I would like to highlight that this is after accounting for a one-time impact of 15.9 crores related to the 8:58 8 minutes, 58 seconds implementation of new labor codes. Now looking at the performance for the 9 months of FI26, 9:06 9 minutes, 6 seconds total operating revenue stood at rupees 2984 crores reflecting a healthy growth of 20.5% 9:12 9 minutes, 12 seconds yearonear. Abita was rupees 287 crores up 41.2% with a margin at 9.6% demonstrating consistent improvement in profitability. 9:24 9 minutes, 24 seconds Pat for the 9 month period stood at rupees 118 crores a growth of 23% with a 9:31 9 minutes, 31 seconds margin of 4%. Once again this includes the onetime labor code impact of 15.9 crores. Overall the number reflects 9:40 9 minutes, 40 seconds strong execution improving operating efficiency and sustained momentum across our business. Let me now move to our 9:48 9 minutes, 48 seconds operational performance with a continued rise in LED penetration across the automotive industry. Our revenue mix clearly reflects the structural shift. 9:57 9 minutes, 57 seconds LED lighting contributes over 61% of our revenue compared to 52% in the same 10:03 10 minutes, 3 seconds quarter last year. We expect this share to increase further going ahead as nearly 81% of our current order book is 10:11 10 minutes, 11 seconds LED based giving us strong alignment with future market demand and good revenue visibility for the 9 month 10:18 10 minutes, 18 seconds period. The passenger vehicle segment continues to anchor our portfolio driven by higher complexity and increased 10:27 10 minutes, 27 seconds content per vehicle. PV contributed 65% of revenues while tubular accounted for 29% and the balance 6% came from other 10:36 10 minutes, 36 seconds segments. The order book mirrors this mix with nearly 2/3 coming from PV lighting and most of the remainder coming from two-heer segment. 10:47 10 minutes, 47 seconds From a product standpoint, front lighting given its higher technological intensity and safety relevance 10:53 10 minutes, 53 seconds contributed around 69% of revenue. Rear lighting accounted for 22% reflecting the growing importance of styling and 11:02 11 minutes, 2 seconds design differentiation with a balance coming from other lighting products. 11:07 11 minutes, 7 seconds Coming to capital expenditure as mentioned earlier overall our overall capex plans are progressing well. Capex 11:14 11 minutes, 14 seconds for the full year FY26 will be 350 to 400 crores up from the earlier guided number of 220 to 260 crores in our 11:23 11 minutes, 23 seconds previous call. However, this is largely due to advancement of capex driven by customer project timelines and related 11:31 11 minutes, 31 seconds long lead time of machines and equipments particularly for our Bangalore new plant wherein we are expediting execution. Overall, the 11:39 11 minutes, 39 seconds 2-year outlook FI26 and FI27 on capex remains broadly unchanged. We continue to repay our long-term loans with improved margins and extended credit. 11:50 11 minutes, 50 seconds Our net debt net debt to AITA is expected to continue to reduce. With this, we we would like to open the floor for questions. Thank you. 12:01 12 minutes, 1 second Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may press star 12:09 12 minutes, 9 seconds and one on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use 12:17 12 minutes, 17 seconds only handsets while asking our questions. Ladies and gentlemen, we will wait for a moment while the question queue assemb You may please press star and want to ask questions. 12:42 12 minutes, 42 seconds The first question is from the line of Vijay Pande from Noama. Please go ahead. 12:50 12 minutes, 50 seconds Uh thank you for taking my questions and congratulations for an excellent quarter still in separate numbers. Uh I have 12:58 12 minutes, 58 seconds couple of questions. First on the uh margin expansion. So our beta margin increased by 260 basis point uh more than 250 basis point year. 13:10 13 minutes, 10 seconds So just want to understand uh how much sustainable is this level of 13:16 13 minutes, 16 seconds AITA margin and also should we expect further increase from 13:23 13 minutes, 23 seconds here because some of our peers have an AIA margin of around 12% 13%. So can we 13:32 13 minutes, 32 seconds go through that length or uh is 10% 11% is going to be the longer long-term perspective. 13:42 13 minutes, 42 seconds So if you can just understand both the short-term midterm outlook as well as a long-term outlook on the margin front. 13:53 13 minutes, 53 seconds Sure. So this is [clears throat] Anmul Jen. I'll take that question. So number one, I think you're absolutely right. 13:58 13 minutes, 58 seconds Quarter 3 has been a significantly higher margin but part of that is aided by an exceptional tooling profitability 14:07 14 minutes, 7 seconds as well. Uh if you take out the tooling profitability still we have inched 14:14 14 minutes, 14 seconds forward in terms of IITA margins on a consecutive quarter 2 to quarter 3 basis. Uh tooling as you know is very 14:22 14 minutes, 22 seconds very cyclical. It depends on the new product launches but we are very confident that we will continue to progressively increase our IITA margins. 14:31 14 minutes, 31 seconds We safely probably secured in the doubledigit IITA margins. Now uh we do expect for the full year also to perhaps 14:40 14 minutes, 40 seconds have a similar uh a bit deliverable in terms of double digit margin and uh coming to your question on 12 13% I 14:48 14 minutes, 48 seconds think yes going forward that is our endeavor but perhaps in the next 2 years or so we should be able to get you know 14:56 14 minutes, 56 seconds close to those margin levels as well but uh we are pretty confident that we'll get there. 15:03 15 minutes, 3 seconds Okay sir. Uh thank you. Now secondly sir I wanted to understand how the industry outlook in terms of lighting because we 15:12 15 minutes, 12 seconds understand that LED penetration has been increasing especially in the two-heer side but what is if you can highlight 15:21 15 minutes, 21 seconds little bit about what is happening on the passenger vehicle side and uh what what will be the growth drivers going 15:29 15 minutes, 29 seconds forward in the mid one to long run scenario. 15:37 15 minutes, 37 seconds So on the industry side again I think there is as you know the production numbers across segments have seen a very encouraging upward trend in quarter 3. 15:48 15 minutes, 48 seconds uh coming specifically for the lighting I think uh the passenger vehicle continues to be one of the key uh factor 15:58 15 minutes, 58 seconds where you know almost 65% of uh the total lighting for us is I 16:06 16 minutes, 6 seconds mean the market size is on passenger exterior lighting uh again because it has a very high significant contribution 16:14 16 minutes, 14 seconds per vehicle we remain focused on expanding ing our wallet share across key customers. Our order book which is 16:22 16 minutes, 22 seconds at about 1,760 crores is again a testimony of the same. We've had some significant wins. Mari Suzuki is almost 16:30 16 minutes, 30 seconds onethird of our order book. Uh so again we are expanding our wallet share both in front lighting as well as in rear 16:38 16 minutes, 38 seconds lighting as uh as long as the passenger vehicle is concerned and we continue to again progress on the two-heer aspect as 16:46 16 minutes, 46 seconds well. We are enjoying u the leadership wallet share in certain OEMs like HMSI 16:54 16 minutes, 54 seconds as well as Herom Motorcop and I think the endeavor is to grow certain key accounts where the company has recently entered like TV. 17:04 17 minutes, 4 seconds Okay. Okay. 17:06 17 minutes, 6 seconds Very helpful sir. Lastly sir if you look at so are you also planning to get into the ambient lighting in the passenger ve 17:15 17 minutes, 15 seconds segment and do you plan to get into the commercial wetland space also uh because that is going to be an upcycle. 17:25 17 minutes, 25 seconds So are you planning to get there get in the commercial vehicle space? 17:31 17 minutes, 31 seconds So commercial vehicle is a small part of the pie today. It's about 6% of our total revenue. But again we do see 17:40 17 minutes, 40 seconds certain technological evolution, technological changes in the commercial vehicle space. Uh and again we are con continuously engaged with certain OEMs. 17:53 17 minutes, 53 seconds So we do expect the commercial vehicle piece of the pie to also expand but it will definitely be always overshadowed 18:01 18 minutes, 1 second by the growth we see in something like a passenger car and uh maybe the two-heer just because of sheer volumes and the 18:08 18 minutes, 8 seconds value per vehicle. Uh so that's on the CV part. In terms of ambient lighting, while the company does have one specific 18:16 18 minutes, 16 seconds ambient lighting order which is under development with one of the OEMs, but that's a uh category which largely is 18:25 18 minutes, 25 seconds something which is not a core of this company and we would uh perhaps cater to that from the other group company. 18:34 18 minutes, 34 seconds Okay. And sir, what is the industry mix in the passenger vehicle between LED and conventional lights? 18:42 18 minutes, 42 seconds Uh industry mix and versus our mix and how is this accepted to grow? 18:51 18 minutes, 51 seconds Currently if we see like our LED share is 60 plus percentage and industry is running somewhere around close to 50%. 19:00 19 minutes So of course as we mentioned uh that LED is more a hygiene today and uh uh it is 19:08 19 minutes, 8 seconds becoming more and more and that's been reflected in our order book as well. So we see that industry will also expand and our share of uh uh LED and 19:17 19 minutes, 17 seconds electronics will also expand in coming days and there's some realization benefit in 19:23 19 minutes, 23 seconds terms of LED and conventional or yeah I'll go similar first 19:31 19 minutes, 31 seconds yes yes so basically it differs model to model but in general because electronics 19:37 19 minutes, 37 seconds has a higher import content and content per vehicle in electronics based 19:45 19 minutes, 45 seconds lighting is somewhere range from 2 to 5 6x that way. 19:52 19 minutes, 52 seconds Okay sir. So thank you sir uh for all the questions and uh congratulations for excellent set of numbers. 20:00 20 minutes Thank you. All the best. 20:01 20 minutes, 1 second Thank you. Thank you. You may press star and one to ask questions. The next question is from the line of Sor Jen from Sunidi Securities. Please go ahead. 20:13 20 minutes, 13 seconds Hello. Yeah, congratulations sir for the wonderful set of numbers. Uh we have uh you know surpassed our initial guidance 20:21 20 minutes, 21 seconds which we had given at the beginning of the year by a wide margin and uh so uh 20:28 20 minutes, 28 seconds sir my first question uh connects to two things capex and revenue. So uh uh we 20:35 20 minutes, 35 seconds are you know getting into the fractifying stage of chakan phase 2 where the capeex uh has already been 20:43 20 minutes, 43 seconds done major capex and this would be the quarter where you know commercial production would begin uh and you had 20:51 20 minutes, 51 seconds guided that in FI27 the expected revenue can be around 250 to 300 cr. Now we had 20:58 20 minutes, 58 seconds a uh in the last quarter also we had revised our capex guidance from 180 to 220 cr to 260 cr and now we are again 21:07 21 minutes, 7 seconds elevating that to 350 to 400 cr. Now our Bangalore facility where where the major 21:14 21 minutes, 14 seconds capex will be in fi27 and uh we were expecting revenue of almost 450 cr in 21:22 21 minutes, 22 seconds fi28. So how all these things are shaping up for FI27 and FI28 based on 21:29 21 minutes, 29 seconds our current order book and the new capex what kind of growth should one expect? 21:36 21 minutes, 36 seconds Yeah. Uh thank you so basically first on the plant tree phase uh two part you rightly mentioned uh that project is 21:46 21 minutes, 46 seconds ready to go for SOP and as per our previous guidelines in this quarter month of March most likely March or 21:54 21 minutes, 54 seconds April sometime the SOP of the models will start and will take up in FY27 to 22:00 22 minutes 250 to 300 cr. As far as the Bangalore facility is there, it's a new facility 22:07 22 minutes, 7 seconds which is uh under uh under development at this stage and the expected business 22:14 22 minutes, 14 seconds start would be somewhere around uh quarter 4 of F FI 27 on the capex 22:21 22 minutes, 21 seconds guidelines as I mentioned for the two years that is current FI 26 and FI 27 we are maintaining our overall guidelines 22:30 22 minutes, 30 seconds only thing is to like a preloading in the current financial year to uh speed 22:36 22 minutes, 36 seconds up the execution as well as the customer uh timelines meeting requirement but overall the uh capex is same as we mentioned earlier. 22:47 22 minutes, 47 seconds So 350 to 400 for fi26 and next year would be next next year would be somewhere around 100 to 150. 22:57 22 minutes, 57 seconds Okay. So sir that uh brings me to the topline growth for FI 27 and 28 23:04 23 minutes, 4 seconds and uh in terms of topline growth for next financial year we are looking at somewhere around close to 20 plus 23:11 23 minutes, 11 seconds percentage and overall for next 3 to 5 years we are maintaining our guidelines of 15 to 20%. 23:17 23 minutes, 17 seconds Okay. And sir, uh uh my next question is on AITA front. Uh so last quarter we had an uh impact of forex fluctuations of 70 23:27 23 minutes, 27 seconds to 80 basis points and this quarter you mentioned that there was some tooling profitability. So apart from tooling 23:36 23 minutes, 36 seconds profitability was there any impact of forex in this quarter? 23:42 23 minutes, 42 seconds No actually there what are as such there's no impact on of the forex gain or loss. 23:49 23 minutes, 49 seconds Okay. And what would be the quantum of tooling uh profitability uh that was exceptional in this quarter approximately? 23:59 23 minutes, 59 seconds So it should be about give or take 10 crores which would be over and above what we usually do. If I look at an 24:06 24 minutes, 6 seconds average, we do about 5 crores of uh profit on a quarter on a tooling. If you look at the last few quarters, this 24:14 24 minutes, 14 seconds quarter has been exceptional because of certain key uh part. So yeah, I would say 10 crores would be a extraordinary uh gain from tooling in the quarter. 24:24 24 minutes, 24 seconds Got it sir, that's helpful. My last question is on the localization front. 24:28 24 minutes, 28 seconds Earlier we had stated that we aim to increase localization uh to around 25 to 30%. Uh I think we have uh we had 24:38 24 minutes, 38 seconds already reached that level and uh we were aiming for 50 to 60% uh mainly through PCB assemblies and certain 24:46 24 minutes, 46 seconds electronates. So, so any update on that and also if you can just give the revenue numbers for SLUMAX for this 24:54 24 minutes, 54 seconds quarter and 9 months and how has been the growth uh uh during these 9 months and what's the outlook for FI27 25:04 25 minutes, 4 seconds [clears throat] 25:05 25 minutes, 5 seconds the localization is going well I think uh overall yes we are upwards of 30 to 35% today but again it depends on the 25:14 25 minutes, 14 seconds product category for example Example, in something like connectors, we are at about 35 to 40% localization. But on a 25:22 25 minutes, 22 seconds PCB, the bare board PCB, we've already achieved close to 70% localization. The 25:28 25 minutes, 28 seconds SMT is 100% localized. And again, some LED modules and you know, projectors are 25:35 25 minutes, 35 seconds still high on the imported front. So, it's a mixed bag. There are few components which have a higher localization opportunity and uh in the 25:44 25 minutes, 44 seconds near term some will take a longer term and some will continue to be imported for now like the LED modules but overall 25:52 25 minutes, 52 seconds I think we're progressing well you know coming from a 10 to 15 we've reached a 30 35% overall localization level on SL 26:00 26 minutes Lumax I'll let Ravi answer that please yeah so on SL LUMX in the quarter three as we see that they have reported a 26:08 26 minutes, 8 seconds growth they Pune facility is now operational with platform October 25. 26:14 26 minutes, 14 seconds Therefore, they have reported somewhere around 15 plus percentage of revenue growth on a 9 month basis because the quarter one and quarter two were little 26:23 26 minutes, 23 seconds lean. So, they are close to flat I would say compared to last financial year or 9 months. So, in terms of revenue for 9 26:30 26 minutes, 30 seconds month yeah 9 months revenue was how much sir? 26:36 26 minutes, 36 seconds Revenue revenue for 9 months in the current financial year compared to last financial year is almost flat. 26:43 26 minutes, 43 seconds So what was the number? 26:45 26 minutes, 45 seconds Amount is overall number is two 2,160 cr. 26:51 26 minutes, 51 seconds Okay. And how is the outlook for FI2 for SLUMAX? 26:56 26 minutes, 56 seconds Outlook for the current financial year most likely they will close somewhere around 27 to 2,800 cr. That's how it 27:04 27 minutes, 4 seconds looks but it all uh depends how the market will shape up. 27:09 27 minutes, 9 seconds Got it sir. Thank you. That's all from my head. Wish you all the best. Thank you. 27:15 27 minutes, 15 seconds Thank you. Thank you. Please press star and one to ask questions. The next question is from the line of Ronak Jan 27:22 27 minutes, 22 seconds from Equirus Securities. Please go ahead. 27:26 27 minutes, 26 seconds Yeah. Uh congratulations on good set of numbers and thank you for giving me the opportunity. So uh my question is on LED 27:33 27 minutes, 33 seconds uh penetration. So you mentioned that uh 60% of your revenues currently come from LED but that is in terms of uh value. So 27:41 27 minutes, 41 seconds I was looking on uh how what is the uh LED penetration in terms of volumes in two wheelers and PVs for the industry currently. 27:53 27 minutes, 53 seconds So it's a difficult thing to tell you exactly because u uh I would assume that the penetration of LED by volume would 28:02 28 minutes, 2 seconds be close to about perhaps 70 to 80%. 28:07 28 minutes, 7 seconds [clears throat] 28:08 28 minutes, 8 seconds uh please understand by volume I'm saying by value it drops because again when you look at the headlamp which is a higher uh content per vehicle on a 28:17 28 minutes, 17 seconds two-heer that only has a part of the function which is an LED the main 28:25 28 minutes, 25 seconds lighting is still from a h hallogen bulb uh so again it's a partial LED lamp not 28:32 28 minutes, 32 seconds a full LED lamp but when it comes to a tail lamp we do see that there is a higher penetration of LED as a 28:39 28 minutes, 39 seconds technology and the full lamp itself is uh based on LED uh along with the blinkers as well which are more and more 28:48 28 minutes, 48 seconds getting into the LED space. So again by volume I would say it would be pretty 28:54 28 minutes, 54 seconds higher than uh value but again it's a mixed bag between a headlamp and a tail lamp. 29:02 29 minutes, 2 seconds Yeah. Uh so just a follow up on this. So you said by volume it would be higher but in general LEDs have higher content 29:10 29 minutes, 10 seconds per vital right. So shouldn't it be that by volume LEDs would be lower penetration compared to value? 29:22 29 minutes, 22 seconds No. Are you talking about two wheelers specifically or are you talking about the whole industry in pass cars as well? 29:28 29 minutes, 28 seconds Two wheelers and pass car separately like you can uh tell us about both the same. 29:34 29 minutes, 34 seconds So again from a volume perspective I would say almost you know again there are a lot of smaller lamps which are not 29:42 29 minutes, 42 seconds on a LED. As I said when you say it's a LED lamp for us it's a partial LED. Uh 29:49 29 minutes, 49 seconds so again the value content per vehicle is a mixed bag between how much LED value is going onto that lamp versus how 29:57 29 minutes, 57 seconds much conventional technologies are still used on that lamp. We don't classify that as a 100% value towards acrewing 30:04 30 minutes, 4 seconds towards LED if there are certain other h hallogen or certain other technologies in play. So again u from a volume 30:13 30 minutes, 13 seconds perspective yes most of the lamps today have some part of function as a LED 30:22 30 minutes, 22 seconds technology and that's why when we report we say that almost close to 80% of our order book is uh 81% is on LED lighting 30:32 30 minutes, 32 seconds but again from a value wise it would tend to be lower because there is also a lot of lamps we make which are nonLEDD 30:40 30 minutes, 40 seconds which are more conventional technologies today. 30:44 30 minutes, 44 seconds Okay, got it. Sir, uh just one last question. So, uh can you specifically tell like what would be the penetration for headlamps like uh in LED in both two 30:54 30 minutes, 54 seconds wheelers and PV LED penetration in headlamps? 31:00 31 minutes Yeah. So basically u if we see overall our business uh has a all roughly around 31:07 31 minutes, 7 seconds 70% is coming from front lighting. Uh so front lighting is not only the headlamp it's a combination of all type of 31:14 31 minutes, 14 seconds lighting and from our uh PV segment uh today we are driving uh roughly around 31:21 31 minutes, 21 seconds 55 to 60% uh from LED base. So by that logic if we do then that must be the LED 31:28 31 minutes, 28 seconds contribution comes from the front lighting. Okay. Got it sir. Thank you so much. 31:37 31 minutes, 37 seconds Thank you. 31:37 31 minutes, 37 seconds Thank you. A reminder to all the participants that you may please press star and one to ask questions at this 31:45 31 minutes, 45 seconds time. The next question is from the line of Nirj from Demat Capital. Please go ahead. 31:53 31 minutes, 53 seconds Yeah. Hello. uh thank you for the opportunity and congrats to the management team. You know we are finally at double digit margins which we have been aiming for so many years. So really 32:02 32 minutes, 2 seconds commendable efforts sir. Uh my question was around our uh revenue split. So if you see you know for the 9 months maroti 32:09 32 minutes, 9 seconds is let's say uh 26% of our revenue and also it forms a significant part of our order book. Just wanted to understand 32:16 32 minutes, 16 seconds out of this 26% you know what percentage of revenue can be attributable to you know which is uh which Maroti is in turn 32:24 32 minutes, 24 seconds exporting you know we are uh so can you elaborate on that? 32:32 32 minutes, 32 seconds Well, we are on a few models. We do not specifically track out of the total revenue of Maruti, what percentage of 32:40 32 minutes, 40 seconds Maruti's revenue is coming out of export models, but we are present on various 32:48 32 minutes, 48 seconds platforms which Marauti Suzuki does export out to the other countries. But again for us, it is the same lamp which goes on the export or the domestic side. 32:59 32 minutes, 59 seconds So it's very difficult for us to give you a very detailed breakup as to what kind of revenue comes out of the export vehicles. 33:10 33 minutes, 10 seconds Understood. And uh just uh on coming back to the margin commentary, I did hear your views that you know like there were some one-offs as well on the 33:19 33 minutes, 19 seconds tooling side. But will it be fair to assume that you know whatever margins margins we did in Q3 it is like the base 33:26 33 minutes, 26 seconds and from this you know we will build on onwards because more and more capacities will come online so there will be some operating leverage as well. Will that be a correct uh correct way to look at it? 33:38 33 minutes, 38 seconds Yes absolutely. I think if you take out the extraordinary gain on the tooling uh 33:44 33 minutes, 44 seconds you would see that our margins have expanded based on the previous quarters and I think this definitely should be a 33:52 33 minutes, 52 seconds solid foundation for us to progressively now further enhance and expand the margins in the coming quarters. So I 34:00 34 minutes think we do see uh we are quite optimistic on expanding our margins not just in Q4 but going into FY27 as well 34:09 34 minutes, 9 seconds on again the back of operational efficiencies with the 15 20% growth as well as better capacity utilizations. 34:19 34 minutes, 19 seconds Understood. Thank you so much sir. All the best. Thank you. 34:23 34 minutes, 23 seconds Thank you participants. You may please press star and one to ask questions. 34:30 34 minutes, 30 seconds The next question is from the line of Nepun Kimka from CD research. Please go ahead. 34:36 34 minutes, 36 seconds Yeah, thank you for the opportunity. So my question is uh how much uh development of new products integral to uh our future? 34:46 34 minutes, 46 seconds Sorry, could you repeat that question? 34:49 34 minutes, 49 seconds Yeah, sure. Sure. Uh specifically regarding uh new product. So how much development of uh new products integral 34:56 34 minutes, 56 seconds to our future view EV products? 35:01 35 minutes, 1 second No sorry new products new book. 35:05 35 minutes, 5 seconds So uh if I understand correctly you're asking me if part of the order book how much is the EV business? 35:13 35 minutes, 13 seconds No no no let me repeat Mr. Kimka I'm sorry to interrupt you. I would request you to kindly use your handset and try asking your question again. 35:23 35 minutes, 23 seconds Yeah. Yeah. Sure. 35:25 35 minutes, 25 seconds Yeah. Now, you may try sir. You may proceed. 35:30 35 minutes, 30 seconds Yeah. Yeah. Yeah. So, uh how much development of new products entail to our future group? 35:39 35 minutes, 39 seconds Two wheelers. 35:41 35 minutes, 41 seconds I'm sorry. I'm still unable to understand. You're saying two wheeler products. U new new products or new products. 35:50 35 minutes, 50 seconds New product. Yes. the new products. 35:54 35 minutes, 54 seconds Yeah. So, how much is that integral to a feature boost? 35:59 35 minutes, 59 seconds Okay. So again [clears throat] as I said the order book is at about 1760 crores. 36:06 36 minutes, 6 seconds 60% of this order book comes into production in the next financial year FY27. 36:15 36 minutes, 15 seconds That is part of the reasons why we have accelerated and you know preponed the capeex towards the Bangalore facility. 36:22 36 minutes, 22 seconds As Rabbi mentioned earlier, I think we do expect next year to give a revenue 36:29 36 minutes, 29 seconds forecast of a growth of 20% plus and I would say that close to perhaps half of 36:35 36 minutes, 35 seconds that uh should come from the new products and the rest would be uh inorganic sorry organic growth of the industry. 36:45 36 minutes, 45 seconds Okay. Okay. Got it. Got it. And my uh second question was regarding that is fast launching of note models by OEMs considered good or bad for us? 36:58 36 minutes, 58 seconds A faster launch of models by OEMs fares very well for the company because uh 37:05 37 minutes, 5 seconds pretty much in every facelift there is a styling change on both the front and the 37:12 37 minutes, 12 seconds rear lighting. So for us it is an opportunity and it's for us it's a kind of a new product development. So yes 37:19 37 minutes, 19 seconds we've seen shorter uh product cycles now by the OEMs. You know earlier it used to be 3 to four years 5 years in some 37:28 37 minutes, 28 seconds cases. Now it's definitely squeezed to 2 to 3 years. So it definitely is a positive uh opportunity for the company. 37:38 37 minutes, 38 seconds Okay. Okay. Got it. Thank you. Thank you. Thank you. 37:45 37 minutes, 45 seconds To ask questions, you may please press star and one. Now the next question is from the line of Ashush Tavari from Equirus. Please go ahead. 38:02 38 minutes, 2 seconds Mr. Tari, I have unmuted your line. Please proceed with your question, sir. Yeah. Am I audible? Yes. 38:11 38 minutes, 11 seconds Yeah. Uh congressman go set the numbers. 38:13 38 minutes, 13 seconds Uh firstly on the punch side were [clears throat] you supplying earlier or it's a new order for us? On the what side? 38:22 38 minutes, 22 seconds Tata punch. Tata punch is a new order for us or were supplying earlier also. 38:27 38 minutes, 27 seconds No we we were supplying to Tata Punch earlier also and we have win the new orders also for the punch and uh it has 38:36 38 minutes, 36 seconds a very lith exhibition time and we did it in very well. So punch uh in yeah punch has been a existing uh model. 38:47 38 minutes, 47 seconds Okay. And and that now we are seeing like you talked about new designs and also has the content increased versus 38:55 38 minutes, 55 seconds where we were earlier in punch in terms of lighting content per vehicle in punch versus earlier model. 39:03 39 minutes, 3 seconds Yes, in general we do see the content per vehicle is increasing but again that is primarily because of different 39:12 39 minutes, 12 seconds technologies and new styling requirements. Uh I think we are progressing very well on you know the 39:20 39 minutes, 20 seconds acceptance of new technologies but again this is probably more true for certain OEMs. So I'm not sure exactly what the 39:30 39 minutes, 30 seconds punch the new punch uh technology map is like. I I would not be able to comment specifically on the punch. But in 39:38 39 minutes, 38 seconds general, yes, we do see OEMs like Tata Motors, OEMs like Mahindra and Mahindra with the new tech and the new innovation, the content per vehicle on the lighting uh is definitely going up. 39:51 39 minutes, 51 seconds And see in LED as well I think uh over the last few years globally as well as in India there's a transition that probably you first shifted to basic 39:58 39 minutes, 58 seconds lights and now you're getting more advanced lighting and all um you must have seen that change with that even 40:06 40 minutes, 6 seconds like say when you migrate to a new variant or new model um uh basically are you seeing that there's upgrade in terms 40:13 40 minutes, 13 seconds of technology and then that's why content will probably keep increasing is that thought process correct absolutely I Think LED is just one piece 40:22 40 minutes, 22 seconds of the puzzle. I think there are a lot of other technologies like again there are projector lamps, there are also 40:31 40 minutes, 31 seconds adaptive uh driving assisting beams. All of those are very high technology. Uh again it will not come to mass market. 40:42 40 minutes, 42 seconds It will probably start at certain variants on the premium segment of passenger vehicles and then make its way 40:50 40 minutes, 50 seconds into the you know mass market scalable models uh you know based on the price points uh also will will will change 40:59 40 minutes, 59 seconds accordingly. But yes, that is one of the reasons why the content per vehicle will continue to increase. Not just based on 41:06 41 minutes, 6 seconds LED penetration, which I think is fairly high already, but on the back of other technologies being introduced into the exterior lighting. 41:16 41 minutes, 16 seconds No, but on this point of LED penetration like you mentioned that penetration is high but in that we include tail lamps 41:23 41 minutes, 23 seconds and everything all put together uh your uh blinkers everything but uh the high content is in the headlamp on the LED 41:30 41 minutes, 30 seconds side and now maybe tail lamps also because uh you are not seeing across the length of the vehicle and the TVs but in 41:37 41 minutes, 37 seconds case of headlamps only if I talk if I ask about what would be penetration of uh LED in two wheelers and passenger 41:44 41 minutes, 44 seconds vehicle I'm talking about only in the two wheelers and PV headlamps the penetration like hogen is what percentage and what percentage LED 41:52 41 minutes, 52 seconds roughly I I I know that you won't have the exact figure but industry for industry so again uh it's a very difficult 42:00 42 minutes question to answer but uh I will try and give you some sense on this on a two-heer lamp again as I said you know 42:08 42 minutes, 8 seconds there is usually a DRL or a separate front combination lamp that has a LED 42:18 42 minutes, 18 seconds technology and that is the only function which goes on the LED. Let us say the 42:25 42 minutes, 25 seconds main light source for the main headlamp in two wheelers is still on a h hallogen which is the low beam and the high beam. 42:34 42 minutes, 34 seconds So that continues to be hogen technology. So in terms of value, we don't have a breakup as to what is the 42:43 42 minutes, 43 seconds contribution of LED as a technology on the total headlamp value and what would be the h hallogen because for us it's 42:51 42 minutes, 51 seconds the same lamp and you know we we we we look at the whole lamp as a unit. Uh 42:57 42 minutes, 57 seconds when it comes to passenger vehicles, this actually drops even further because the main source of lighting could be a h 43:05 43 minutes, 5 seconds hallogen or it could be a projector lamp which again has a very high value per vehicle. LED again could be just a turn 43:15 43 minutes, 15 seconds indicator function or more and more now we have seen there is something called a front center lamp which you know runs 43:23 43 minutes, 23 seconds across the front hood of a vehicle. uh between the two headlamps that is usually again on LED just because of the 43:32 43 minutes, 32 seconds sleekness and just because of the styling requirements. So again, I do not have a clear answer in terms of what would be the LED content 43:41 43 minutes, 41 seconds part of the header lamp on a two-heer or a four-wheeler. But if I were to give you a rough estimate, I would assume it 43:48 43 minutes, 48 seconds would be a probably a 40 60 uh 40% of the value of the lamp would be probably 43:56 43 minutes, 56 seconds LED or maybe 50% of it would be LED uh in passenger cars and maybe another 50% would come from nonLEDD technologies. 44:03 44 minutes, 3 seconds And on a two-heer I would probably tend to say that it would be slightly higher at maybe a 6040 or a 65 7030 ratio. 44:14 44 minutes, 14 seconds And lastly on this extension of this only uh do you think that over next three to four year period even this low 44:22 44 minutes, 22 seconds high beam on two wheelers or even in passenger vehicle can shift towards LEDs? 44:30 44 minutes, 30 seconds It definitely can, but I personally still feel that it's going to be pretty 44:37 44 minutes, 37 seconds a long call as LED as a full LED headlamp to become mass market because 44:44 44 minutes, 44 seconds again the cost and the economies just don't work out. As I mentioned earlier, most of the LED modules not just for DUMAX but across the industry are still 44:53 44 minutes, 53 seconds imported. So they are not really being localized yet. But again, I would tend to say that instead of LED as a light 45:01 45 minutes, 1 second source, more and more use of projector lamps and other technologies would come into play faster on on the two-heer. 45:12 45 minutes, 12 seconds Okay, got it. Thank you so much. Thank you. 45:15 45 minutes, 15 seconds Thank you. The next question is from the line of Adita Buher from LFC security. Please go ahead. 45:23 45 minutes, 23 seconds Uh hello. Am I on? 45:26 45 minutes, 26 seconds Yes Adita but there is a lot of background noise from your end. Can you move to a quieter please? 45:35 45 minutes, 35 seconds Yeah. Am I audible now? You may proceed now. Thanks. 45:39 45 minutes, 39 seconds Uh yeah. Uh currently uh first of all uh uh congratulation on good set of numbers 45:46 45 minutes, 46 seconds and uh management uh is been guiding that uh there will be a margin expansion 45:53 45 minutes, 53 seconds and uh currently we are having a 70% volume penetration in LED lab. So is 46:01 46 minutes, 1 second there any other contributor to this uh which will fuel margin growth? Yeah, that was my question. 46:09 46 minutes, 9 seconds Yeah, of course. I think uh margin growth is a combination of multiple factors. It is better asset realization, 46:17 46 minutes, 17 seconds better capacity utilizations, optimized fixed costs based on a higher turnover growth as well as you know I 46:26 46 minutes, 26 seconds say again I say LED as a higher penetration will definitely aid a lot to the revenue 46:34 46 minutes, 34 seconds side because of the contribution per vehicle but it cannot be just seen as an automatic improvement in the margins. In 46:43 46 minutes, 43 seconds some cases, the LED lamps may not be as profitable as some of the conventional lamps. So again, uh there are various 46:52 46 minutes, 52 seconds reasons why the margins have expanded and I think we continue to as I said remain bullish and optimistic that we 47:00 47 minutes will continue to progressively increase the margin performance of the company over the next uh quarters in in going into FI27 as well. 47:12 47 minutes, 12 seconds Okay. Thank you. 47:16 47 minutes, 16 seconds Thank you ladies and gentlemen. Due to time constraint that this will be the last question for today which is from Ajit Sati from Eco Quantum Solutions. 47:26 47 minutes, 26 seconds Please go ahead. 47:28 47 minutes, 28 seconds Uh thank you for the opportunity. Uh sir as we have said that uh we are expecting half of the growth in FY27 should come 47:35 47 minutes, 35 seconds from the new products. So should we expect that the I beta margin should be around 11 to 11.5% in FY27 and in the 47:42 47 minutes, 42 seconds subsequent FY28 uh with our all capacity uh will come online. So can we expect to reach that 12% margin that you are saying that we will reach in 2 years? 47:54 47 minutes, 54 seconds So as I mentioned earlier Ajit I think the endeavor would be to attain a 12% IITa margin over the next 2 years or so. 48:05 48 minutes, 5 seconds Having said that, yes, there are various factors which definitely on the back of which we are confident that the IITa 48:12 48 minutes, 12 seconds margin in FY27 should move forward and should become better than what we would deliver on 48:21 48 minutes, 21 seconds FY27. But I think we are safely giving a guidance that the company has now achieved a double digit margin with a 48:30 48 minutes, 30 seconds solid foundation and I think we will continue to expand on that. So I don't know specifically if we will hit 11% or 48:39 48 minutes, 39 seconds so in FY27 but yes we will continue to expand uh the IITA margin you know from hereafter. 48:48 48 minutes, 48 seconds Okay. Thank you sir. Thank you. 48:51 48 minutes, 51 seconds Thank you. As that was the last question for today. I would now like to have the conference over to the management for closing comments. Thank you and over to you. 49:01 49 minutes, 1 second Well I would like to thank you all for joining us today. We hope we have addressed all your questions. We remain committed to keeping the investment 49:09 49 minutes, 9 seconds community informed with regular updates on any developments in the company. For any further information or queries, please 49:17 49 minutes, 17 seconds feel free to reach out to us or SGA, our investor relations advisor. Thank you. 49:22 49 minutes, 22 seconds Thank you members of the management. On behalf of Lumax Industries Limited, that concludes this conference. We thank you for joining us and you may now disconnect your lines.