PPAP Automotive Limited — Q4 FY26

PPAP Automotive Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PFEd2T_gcn4 Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to PPAP automotive limited earnings call for Q5 Q4 and FI26. 0:08 8 seconds 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. 0:19 19 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant 0:27 27 seconds lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:35 35 seconds during the conference call, please signal an operator by pressing star ben zero on your touchstone phone. Please note that this conference is being 0:44 44 seconds recorded. And now the conference over to Mr. Abishek Jin, managing director and CEO of PPAP Automotive Limited. Thank you and over to you sir. 0:54 54 seconds Yeah, thank you IRA and a very good afternoon everyone. I extend a very warm welcome to all the participants joining 1:02 1 minute, 2 seconds us on this call today. I am joined today by Mr. Sachin Jen CFO. 1:08 1 minute, 8 seconds Good morning, good afternoon all and strategic growth advisors, our investor relation advisors. 1:14 1 minute, 14 seconds We have uploaded our quarter 4 and financial year 26 financial results and presentations on the stock exchanges as 1:23 1 minute, 23 seconds well as on our website and I hope everyone has seen them. 1:28 1 minute, 28 seconds Quarter 4 financial year 26 marks a significant turning point for the company reflecting the positive outcomes 1:35 1 minute, 35 seconds of the sustained efforts and strategic initiatives undertaken over the past several quarters. The quarter not only 1:43 1 minute, 43 seconds demonstrated improved business performance and operational recovery, but also laid the foundation for the future through several long-term 1:52 1 minute, 52 seconds strategic reforms and organizational initiatives aimed at driving sustainable growth and value creation. 2:01 2 minutes, 1 second I am pleased to share with you that going forward the company along with all its subsidiaries will collectively 2:07 2 minutes, 7 seconds operate under the unified identity of the AJ group. This represents a significant milestone in our journey 2:15 2 minutes, 15 seconds towards building a stronger, more cohesive and future ready organization with a shared vision, unified culture 2:23 2 minutes, 23 seconds and enhanced strategic alignment across all businesses. 2:29 2 minutes, 29 seconds In alignment with the group's long-term strategy, apart from the rebranding, three additional strategic initiatives have also been undertaken and s set in 2:38 2 minutes, 38 seconds motion. These initiatives are again aimed at sharpening the business focus, driving the operational efficiencies and 2:46 2 minutes, 46 seconds enabling more effective capital allocation, thus creating sustainable long-term value for all the stakeholders. 2:55 2 minutes, 55 seconds The first strategic reform was the successful completion of the divestment of our stake in the joint venture 3:02 3 minutes, 2 seconds company PPAP Tokai India Rubber Private Limited. 3:07 3 minutes, 7 seconds This divestment has been done to Tokai Tokyo Company Limited Japan. 3:12 3 minutes, 12 seconds Over a period of nearly 10 years, the company had invested approximately 48.5 3:19 3 minutes, 19 seconds cr rupees in the venture which generated limited financial returns. 3:24 3 minutes, 24 seconds The stake has now been divested for a total consideration of 100 crores representing a significant value 3:31 3 minutes, 31 seconds realization for the company. The proceeds from the transaction after payment of applicable taxes will strengthen the company's reserves, 3:40 3 minutes, 40 seconds support reduction in net debt and provide additional financial flexibility for long-term strategic investments and future growth opportunities. 3:51 3 minutes, 51 seconds The second strategic restructuring initiative relates to the tooling business operating under the MRAI brand. 3:58 3 minutes, 58 seconds In line with our focus on creating sharper business verticles and enabling specialized growth, the tooling business 4:05 4 minutes, 5 seconds is proposed to be hyped up into a wholly owned subsidiary of PPAP under the name of MRAI Precision Tools Engineering Limited. 4:15 4 minutes, 15 seconds This restructuring is expected to provide greater operational focus, enhance scalability, and strengthen the business's ability to pursue growth opportunities independently. 4:27 4 minutes, 27 seconds The transition is targeted to be completed by quarter two of financial year 27 subject to the 4:35 4 minutes, 35 seconds receipt of the necessary regulatory and statutory approvals. 4:40 4 minutes, 40 seconds The third strategic reform relates to the battery business operated through the wholly owned subsidiary Avenia Batteries Limited. As part of the 4:48 4 minutes, 48 seconds group's ongoing efforts to streamline operations and to improve efficiency, the company has proposed the merger of 4:57 4 minutes, 57 seconds Avenia Batteries Limited with the parent entity PPAP Automotive Limited. 5:03 5 minutes, 3 seconds Again this moger is expected to enhance the operational synergies, optimize resource utilization and simplify the 5:11 5 minutes, 11 seconds corporate structure which will further enable stronger integration of the battery business with the overall strategy of the group. The merger 5:20 5 minutes, 20 seconds process is targeted to be completed by quarter 4 of financial year 27 subject again to the necessary regulatory and statuto approvals. 5:31 5 minutes, 31 seconds We are confident that following the successful implementation of these reforms, the group will emerge stronger and better position for long-term 5:39 5 minutes, 39 seconds growth. Collectively, these restructuring initiatives represent a significant strategic milestone for the 5:47 5 minutes, 47 seconds AJ group and are aimed at creating a more focused, financially stronger, operationally efficient and future ready 5:55 5 minutes, 55 seconds organization capable of delivering sustainable value to all the stakeholders. 6:01 6 minutes, 1 second Coming to the operational performance, we are pleased to report a strong sequential recovery during quarter 4 of 6:08 6 minutes, 8 seconds financial year 26 driven by improved execution across key business segments and gradual normalization in customer 6:16 6 minutes, 16 seconds schedules. The quarter reflects strengthening business momentum and the positive impact of focused operational 6:23 6 minutes, 23 seconds initiatives undertaken across the organization. 6:28 6 minutes, 28 seconds Consolidated revenue for quarter 4 grew by 18.6% year-on-year basis and 25.7% 6:38 6 minutes, 38 seconds on quarteron quarter basis to Indian rupees 175.5 crores. 6:45 6 minutes, 45 seconds EITA for the quarter increased by 12.9% yearonear to INR 16.9 crores supported 6:53 6 minutes, 53 seconds by improved business momentum, better operational performance and enhanced execution during the quarter. 7:01 7 minutes, 1 second Capacity utilization levels also improved meaningfully to approximately 78% reflecting stronger throughput across 7:09 7 minutes, 9 seconds facilities and gradual stabilization in customer shules. 7:15 7 minutes, 15 seconds For financial year 26, the company reported a consolidated revenue of 567 crores. While the overall performance 7:24 7 minutes, 24 seconds remained resilient amid a challenging operating environment, revenue growth during the year was primarily impacted 7:31 7 minutes, 31 seconds by the deferment of SOPs as well as model specific performance trends across the market and customer segments in which we operate in. 7:42 7 minutes, 42 seconds Despite these headwinds, the company continued to maintain operational stability and remained focused on strengthening its fundamentals and long-term capabilities. 7:53 7 minutes, 53 seconds During the year, the company had reviled its guidance in January 2026 to reflect the prevailing business environment and 8:02 8 minutes, 2 seconds customer schedules at that particular point. However, during the later part of Q4, demand conditions and due to some 8:10 8 minutes, 10 seconds ordering patterns remained softer than anticipating resulting in a variance even against the revised guidance. 8:20 8 minutes, 20 seconds The deviation in guidance was primarily driven by a slower than expected demand recovery from the automotive OE customers. 8:30 8 minutes, 30 seconds Some orders of the tooling business got deferred to the quarter one. Some battery related orders also got uh got 8:39 8 minutes, 39 seconds deferred to quarter 1 and moderation in the consumer demand durables demand cycle. 8:45 8 minutes, 45 seconds Lower sales volume during the quarter also impacted operating leverage thereby affecting profitability 8:54 8 minutes, 54 seconds at the PAT level. Profitability was further impacted by marktomarket losses on investments and an additional 9:01 9 minutes, 1 second one-time employee benefit obligation of approximately 3.6 crores arising from the labor code implementation challenges 9:10 9 minutes, 10 seconds which were not factored into the earlier guidance. 9:14 9 minutes, 14 seconds Looking ahead, while our order pipeline and customer engagement remain encouraging across all the five businesses, the external operating 9:23 9 minutes, 23 seconds environment continues to remain dynamic and volatile due to the ongoing geopolitical uncertaintities, the 9:30 9 minutes, 30 seconds disruptions and the logistic related challenges arising from the West Asia conflict. 9:37 9 minutes, 37 seconds Given the evolving demand it demanding environment and continued uncertaintity, the company has decided that it will 9:45 9 minutes, 45 seconds provide its financial year 27 guidance during the quarter 1 financial year 27 earnings announcement once we have a 9:53 9 minutes, 53 seconds better clarity on how the market conditions are fairing out. We remain committed to further strengthening our 10:00 10 minutes guidance and communication framework to ensure greater transparency and provide the market with a more accurate 10:09 10 minutes, 9 seconds reflection of the company's business outlook and expected performance. 10:15 10 minutes, 15 seconds Let me now briefly discuss the performance across our key business segments. 10:20 10 minutes, 20 seconds The first being the automotive parts business. 10:24 10 minutes, 24 seconds This business continues to remain the largest contributor to our revenues. 10:29 10 minutes, 29 seconds During the year, we commence supplies for several new vehicle models across all OEMs, further strengthening our presence across both EV and I segments. 10:41 10 minutes, 41 seconds Going forward, the business is expected to benefit from the gradual ramp up of all the new projects that we've started in the last year while tremendously 10:50 10 minutes, 50 seconds preparing for the launch of multiple new models also in the coming periods. 10:56 10 minutes, 56 seconds These developments are expected to support the growth, improve capacity utilization, and further strengthen our long-term business visibility. 11:05 11 minutes, 5 seconds During financial year 26, the company secured new businesses of approximately 840 crores across EV and ICE platforms. 11:15 11 minutes, 15 seconds The auto book continued to remain diversified across key customers including Maruki Suzuki, Tata Motors, 11:22 11 minutes, 22 seconds Mahindra and Mahindra Honda and other OEMs. Now coming to the aftermarket business. 11:30 11 minutes, 30 seconds The aftermarket business continued to deliver robust growth momentum during the financial year 26 recording an 11:38 11 minutes, 38 seconds impressive growth of 36% over the previous year. The robust performance was driven by the company's expanding 11:46 11 minutes, 46 seconds distribution network which is now comprising of 147 distributors which are supported by a diversified product 11:54 11 minutes, 54 seconds portfolio of 1,264 SKUs which are spread across three key 12:01 12 minutes, 1 second segments. Spare parts, service parts and accessories. Accessories including perfumes and car care products. 12:10 12 minutes, 10 seconds The business continues to strengthen its market presence through wider reach, enhanced product availability, and growing customer acceptance across 12:18 12 minutes, 18 seconds channels. Going forward, the focus for this business will remain on further expanding the distribution network, 12:25 12 minutes, 25 seconds which will deepen the market penetration and strengthening of the product portfolio to drive higher customer engagement and higher long-term growth. 12:35 12 minutes, 35 seconds Now talking about the tooling business. 12:37 12 minutes, 37 seconds The tooling business has successfully improved its utilization levels to more than 90% during the financial year 26 12:45 12 minutes, 45 seconds and maintains a robust order pipeline across both automotive and non-automotive sectors. 12:53 12 minutes, 53 seconds In financial year 26, the business grew by 12.1%. 12:58 12 minutes, 58 seconds The division has successfully developed 148 molds during the entire year. 13:04 13 minutes, 4 seconds Going forward, the business will remain focused on expanding its customer base and tendering market reach to further enhance its growth trajectory. 13:15 13 minutes, 15 seconds The industrial product uh division continues to make steady progress during financial year 26 by leveraging PPAP's 13:23 13 minutes, 23 seconds core strength in plastic and rubber extrusion as well as plastic injection molding into adjacent industrial applications. 13:33 13 minutes, 33 seconds The business again witnessed encouraging traction across non-automotive applications as well as export markets 13:41 13 minutes, 41 seconds resulting in a growth of 38% during this year. This performance reflects the company's continued efforts towards 13:48 13 minutes, 48 seconds diversification and expansion into new customer segments and applications. 13:54 13 minutes, 54 seconds Going forward, the division will remain focused on further strengthening its presence across industrial and export 14:00 14 minutes markets with the object of diversifying revenue streams and reducing dependence on the automotive sector while building 14:09 14 minutes, 9 seconds a more resilient and balanced business portfolio. 14:14 14 minutes, 14 seconds Now talking about the battery business, the battery business witnessed an encouraging operational improvement during quarter 4 and is now gradually moving towards a turnaround phase. 14:26 14 minutes, 26 seconds Revenue from the business increased by 1.28 times in financial year 26 compared to the previous year reflecting improve 14:35 14 minutes, 35 seconds traction and strengthening business momentum. Over the last few quarters, the company has undertaken several 14:42 14 minutes, 42 seconds strategic initiatives aimed at improving operational efficiency, strengthening the customer engagement, and enhancing 14:49 14 minutes, 49 seconds the long-term scalability of the business. These efforts are expected to support a stronger and more diversified 14:56 14 minutes, 56 seconds customer profile going forward. We believe that the strategic actions already implemented together with the organizational reforms planned during 15:05 15 minutes, 5 seconds the year will help improve the operating margins which will definitely improve the overall business efficiency and 15:14 15 minutes, 14 seconds significantly reduce the losses being contributed by this division over the medium term. 15:22 15 minutes, 22 seconds In line with our continued commitment to the shareholder value creation, the board has recommended a final dividend 15:29 15 minutes, 29 seconds of 1.5 rupees per equity share for financial year 26 taking the total 15:35 15 minutes, 35 seconds dividend for the year to 2.5 rupees per equity share subject to the shareholders approval. 15:44 15 minutes, 44 seconds Friends, the the end of financial year 26 marks a significant turning point of the for the company wherein we have 15:51 15 minutes, 51 seconds started witnessing the positive impact of higher utilization of the company's assets and the strategic initiatives 15:58 15 minutes, 58 seconds undertaken over the past several quarters. The improvement in operational efficiency and capacity utilization 16:05 16 minutes, 5 seconds during the quarter four of financial year 26 provides confidence in the underlying strength of all the 16:13 16 minutes, 13 seconds businesses being done by the company subject to stability in the external operating environment. We believe that 16:20 16 minutes, 20 seconds sustaining the current momentum will enable the company to maintain and further strengthen the performance levels achieved during the quarter across this upcoming year. 16:32 16 minutes, 32 seconds We remain focused on strengthening our core automotive business while scaling up our emerging verticals with the 16:39 16 minutes, 39 seconds objective again of driving long-term growth and de-risking our business from sectoral and geographical risks and 16:48 16 minutes, 48 seconds creating enduring value across all our business segments. 16:54 16 minutes, 54 seconds With that I conclude my opening remarks and I request Ikra to open the floor for questions. Thank you very much for your kind listening. 17:04 17 minutes, 4 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 17:14 17 minutes, 14 seconds If you wish to remove yourself from the question key, you may press star N2. 17:20 17 minutes, 20 seconds Participants are requested to use hands while asking the question. Ladies and gentlemen, we will wait for a moment while the questions you assemble. 17:46 17 minutes, 46 seconds The first question is from the line of sit Kumar from ADM Advisor. Please go ahead. 17:54 17 minutes, 54 seconds Hello. Hi sir, I'm audible. Yes, we can hear you. 18:00 18 minutes Yeah, sir. My first question was considering the ongoing waste ratio conflict and the resultant uh supply 18:07 18 minutes, 7 seconds chain disruption. So the raw motor prices are expected to remain elevated. 18:13 18 minutes, 13 seconds So how is PPAP managing these challenges and what could be the potential impact on market going ahead? 18:25 18 minutes, 25 seconds So uh regarding the uh this supply chain disruption so there is a significant increase in the raw material prices. So 18:32 18 minutes, 32 seconds that side currently we are uh uh the first priority is to supply the material to the customer without disturbing their 18:39 18 minutes, 39 seconds line. So as of now the price increase demanded by the supplier in consultation with the customer we are giving to the 18:47 18 minutes, 47 seconds supplier so that there should not be any disruption to the customer end and out of that almost 50% is already covered 18:55 18 minutes, 55 seconds with the customer uh we have the pass and policy with the customer ref we are discussing we are in the discussion with the customer how to take care with that 19:03 19 minutes, 3 seconds because currently the situation is quite fluid so uh uh when the situation is stabilized post that will have detail 19:10 19 minutes, 10 seconds discussion how to take care of the the the balance impact of the 50%. 19:16 19 minutes, 16 seconds Okay sir. Okay. And sir my second question was how does the company plan to utilize the proceeds from the 19:23 19 minutes, 23 seconds proposed sales of the JB state? So do we have any immediate plan to reduce our debt? 19:30 19 minutes, 30 seconds Yeah on the net level that is reduced to 103 crores and there for the gross level it is around 195. So because we want to 19:38 19 minutes, 38 seconds deploy it for the our long-term strategic requirement. So for this year we will keep it like this only and we 19:45 19 minutes, 45 seconds will utilize the fund uh as in when there is a requirement for the strategy side. Rest capex will be done from the internal equals only and we will uh keep 19:55 19 minutes, 55 seconds the net table uh around this level only for this financial year. 20:00 20 minutes Okay sir. Okay that was helpful. Thank you so much. 20:06 20 minutes, 6 seconds Thank you. Ladies and gentlemen, before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and one. 20:16 20 minutes, 16 seconds We will take our next question from the line of manav chain from Jane Investments. Please go ahead. 20:22 20 minutes, 22 seconds Thank you for the opportunity, sir. Uh so can you elaborate the reason behind the decline in the contribution of clothing business and overall sales? 20:33 20 minutes, 33 seconds uh the cooling sales depends we have the two kinds of tooling sale. One is the manufacturing by the manufacturing unit 20:41 20 minutes, 41 seconds tools. So that side there is more decline and uh second tooling is linked with the customer SOPs. So last year uh 20:49 20 minutes, 49 seconds in the Q4 there was some SOPs are planned so that's why there was high tooling sale uh in the last financial 20:55 20 minutes, 55 seconds year. uh in Q4 there is a one model was there Marupi. So that is why there is a 21:02 21 minutes, 2 seconds change in the uh the tooling material this year there is no as such uh uh uh decrease in the uh we can say the same 21:11 21 minutes, 11 seconds because we have lots of model in uh pipeline so that will be done in the FI 27. So this year again we have the significant new sales. 21:22 21 minutes, 22 seconds Okay. So I got it. And additionally as you highlighted in the commentary uh regarding the tooling business is being restructured under MEA precision tools. 21:32 21 minutes, 32 seconds So like what are management's long-term aspirations for this business for next 3 21:39 21 minutes, 39 seconds to 5 years and what key milestones are we targeting to achieve through this restructuring? 21:47 21 minutes, 47 seconds See first of all uh this restructuring is being done so that we have better clarity on the tooling business and the 21:55 21 minutes, 55 seconds management side also it is a clearcut uh management style because it is very different from the part business which 22:03 22 minutes, 3 seconds is primarily a just in time business that's why it is required that this tooling business should be done in a 22:10 22 minutes, 10 seconds separate entity uh as I explained you in this Uh in the 22:17 22 minutes, 17 seconds opening remarks uh this year we are planning we have made almostund 22:24 22 minutes, 24 seconds 148 molds in the whole financial year and uh gradually in the next uh 3 years we will try to double this uh capacity. 22:36 22 minutes, 36 seconds So maybe in 3 years we are planning roughly around 300 uh odd molds per uh 22:44 22 minutes, 44 seconds per year more or less one one mold in every 1.5 days. 22:53 22 minutes, 53 seconds Okay sir got it. And so regarding the battery business, you had mentioned that the business was witnessing early green 23:01 23 minutes, 1 second shoots on ground and when do we expect this business to achieve break even and how do we see the capacity utilization evolving in FY27? 23:13 23 minutes, 13 seconds So this year based on what is uh what orders we executed in quarter 4 in financial year 27 we expect a full 23:22 23 minutes, 22 seconds recovery of this business and uh based on the contracts that we already have with the customers and whatever things 23:31 23 minutes, 31 seconds are being discussed we expect that uh the whole plant and machinery will be 23:38 23 minutes, 38 seconds uh will be 100% utilized in this year financial year 27. 23:44 23 minutes, 44 seconds Okay. Okay. And have we secured any meaningful customer orders? Sorry. 23:50 23 minutes, 50 seconds Have we secured any meaningful customer orders? Yes. 23:57 23 minutes, 57 seconds Business division. Yes, we already have uh meaningful orders and uh we are 24:04 24 minutes, 4 seconds engaging with good customers now and uh if you wait till quarter one I think quarter one you can see the increase in sales of this division. 24:15 24 minutes, 15 seconds Okay sir thank you that was very helpful. Thank you and all the best. Thank you. 24:23 24 minutes, 23 seconds Thank you. A reminder to all the participants, you may press star and one to ask a for question. 24:29 24 minutes, 29 seconds Next question is from the line of Maj from Pinpoint X Capital. Please go ahead. 24:38 24 minutes, 38 seconds Yes, you're audible. 24:41 24 minutes, 41 seconds Uh thank you sir for the opportunity. So my first question that I have is uh so of the new order book how much is the 24:48 24 minutes, 48 seconds execution timeline such a receipt this quarter and the financial. 24:55 24 minutes, 55 seconds So generally the execution timeline depend almost 3 to 5 years over the period of next 3 to 5 years we exclude 25:03 25 minutes, 3 seconds the lifetime order of any order which you receive. 25:08 25 minutes, 8 seconds Okay. Uh so you were saying that there was slowdown in the automotive segment but result if I see peers in their auto 25:15 25 minutes, 15 seconds ancillary segment they were growing much faster than the space like what were the key segment that dragged our overall 25:23 25 minutes, 23 seconds units and margins it's not uh related to the automotive 25:31 25 minutes, 31 seconds industry per se but as we explained in the opening commentary also it's particularly related to certain models and certain customers only. 25:42 25 minutes, 42 seconds So we were anticipating them to start SOPs much earlier and uh and produce 25:49 25 minutes, 49 seconds much more higher cars but unfortunately that has not happened. 25:58 25 minutes, 58 seconds Uh sir will do we expect say going for any developments on that currently on those models? 26:08 26 minutes, 8 seconds No sorry I didn't understand your question. 26:11 26 minutes, 11 seconds So you said there was slow down in learnings due to the delay in I'm audible now I'm audible now. 26:20 26 minutes, 20 seconds Yeah yeah you sir. So my question that I have is you are saying due to some of the models which got delayed our revenue 26:28 26 minutes, 28 seconds revenue margins didn't go in line with our expectation. So currently what's the update about those models which got delayed? 26:35 26 minutes, 35 seconds Those models have started production now that is why you see the increase in quarter 4 numbers. 26:42 26 minutes, 42 seconds Okay. And which will continue for this uh 26 27 financial year also. 26:49 26 minutes, 49 seconds And along with that there will be certain new model startups also happening in this uh in this financial year. 27:00 27 minutes Got it. Uh so when this comes into place, how do we see our gross margins and EITA margins uh going forward? 27:08 27 minutes, 8 seconds FI27 see primarily I we need to focus on the 27:15 27 minutes, 15 seconds utilization of our assets. So quarter four our utilization was roughly around 78%. 27:22 27 minutes, 22 seconds And in the whole year we are anticipating somewhere around uh that level only maybe quarter one is is 27:31 27 minutes, 31 seconds little less but over a period of time in next year I think utilization will improve to 80 80 82%. 27:40 27 minutes, 40 seconds So that will drive all the gross margins and everything. And second uh factor 27:47 27 minutes, 47 seconds will be uh the operational efficiencies that we are planning to to do. Right now 27:55 27 minutes, 55 seconds uh although all the inflationary costs, job costs have increased but once all 28:02 28 minutes, 2 seconds this uh stabilizes uh we have some certain counter measures to reduce our expenses. 28:10 28 minutes, 10 seconds uh like uh implementation of uh of solar energy compared to the grid powers 28:18 28 minutes, 18 seconds uh grid powered supply and certain employee uh related reforms also. So all 28:27 28 minutes, 27 seconds those put together I think our margins for uh financial year 26 27 should get 28:35 28 minutes, 35 seconds better than what we've been doing in the past and quarter four also you can see that 28:45 28 minutes, 45 seconds uh on a standalone basis if you remove the impact of the wage code then we have 28:52 28 minutes, 52 seconds improved the margins to 13% every compared to 11% in the previous on year on year basis. 29:05 29 minutes, 5 seconds Perfect sir. 29:06 29 minutes, 6 seconds And sir regarding the battery business as of Q4 what was the loss or are having a break 29:13 29 minutes, 13 seconds even stage as of now? In Q4 uh there is a almost only loss of around 40 K 40 29:20 29 minutes, 20 seconds lakhs sorry uh in the that last year it was around 1.2 K so we have reduced the losses almost 60 to 70%. 29:32 29 minutes, 32 seconds So going forward can you expect profits or uh or in the break even spaces next year? So this year on the standard room 29:40 29 minutes, 40 seconds basis this battery segment should be uh at the profitable at the uh the PPT level it should be profitable. 29:50 29 minutes, 50 seconds product and sir finally just want to know about the afterm market segment sir how are we 29:57 29 minutes, 57 seconds looking to grow fi 25 afterm market business over past 3 four years it's been growing at a good uh 30:06 30 minutes, 6 seconds good caggr of more than 25% and this year also we are introducing 30:12 30 minutes, 12 seconds many new products adding continuously uh products to our portfolio and increasing the distribution network. 30:22 30 minutes, 22 seconds So we are anticipating that even this year it will continue to grow. 30:27 30 minutes, 27 seconds See it's been only three three four years since we started this aftermarket business and opportunity is huge in 30:34 30 minutes, 34 seconds front of us and we're going full throttle in in increasing our market share in all 30:42 30 minutes, 42 seconds the three segments that I told you about spare parts, service parts and accessories. 30:51 30 minutes, 51 seconds Okay. Thank you, sir. All the time. Thank you. 31:00 31 minutes Thank you. 31:03 31 minutes, 3 seconds Anyone who wishes to ask a question may press star and one. We will take our next question from the line of Jane from RJS Capital. Please go ahead. 31:13 31 minutes, 13 seconds Uh hello. Am I audible? 31:16 31 minutes, 16 seconds Yes. Uh so congratulations on the good set of number. My question is in the traditional automotive component business which remains closely linked to 31:25 31 minutes, 25 seconds the OEM model cycles. What trends are we witnessing in terms of new model launches and platform additions by OEMs? 31:32 31 minutes, 32 seconds Also how we added any major C have we added any major customers or new programs during the year and uh further 31:40 31 minutes, 40 seconds can you provide a broad range of content per vehicle opportunity across passenger vehicle platforms? 31:50 31 minutes, 50 seconds So your first question was uh the sales of automotive OEMs right? 31:58 31 minutes, 58 seconds Uh yes yes platform addition by OEMs. 32:01 32 minutes, 1 second So every OEM has the has some program or something running now. Uh I think we'll 32:09 32 minutes, 9 seconds witness a lot of new vehicles being coming starting production uh in this uh financial year. 32:17 32 minutes, 17 seconds So Honda also will launch new vehicles Toyota, Tata, Kia, Nissan, Honda, Mahindra, every we are seeing across the 32:26 32 minutes, 26 seconds passenger vehicle segment all the customers have some or the other model starting up in this new financial year 32:35 32 minutes, 35 seconds and uh when it comes to us uh I think uh we have added Vinf as one of the major 32:44 32 minutes, 44 seconds customers last year. apart from uh the EV uh maker uh dealer motors and uh last 32:54 32 minutes, 54 seconds year we also secured businesses from Kia and Ninda which are supposed to start uh production in this financial year 26 27. 33:06 33 minutes, 6 seconds So this year we'll see lot of uh new products being started and uh overall when we see our revenues 33:15 33 minutes, 15 seconds uh almost uh 78% of our revenue is from vehicles which 33:22 33 minutes, 22 seconds have been in the market for less than 5 years. So it's a fairly young uh portfolio of vehicles which we are catering to. 33:32 33 minutes, 32 seconds And uh when it comes to content per vehicle uh it ranges from customer to customer. 33:41 33 minutes, 41 seconds Uh somewhere we have higher exposure, somewhere we have lower. Uh on an average it ranges somewhere between uh 33:49 33 minutes, 49 seconds 2,500 to 3,500 rupees per acre. And uh on the upper side it goes up to 33:58 33 minutes, 58 seconds uh 8,000 to 10,000. And on the lower side it goes up to 1,000 rupees per vehicle. 34:06 34 minutes, 6 seconds Okay. Okay. And uh I have one other question is we understand from various OEMs that demand for entry- level passenger vehicles could remain under 34:14 34 minutes, 14 seconds pressure due to inflationary conditions and concerns around the rural demand and monsoon trends like what is PPAP's 34:22 34 minutes, 22 seconds exposure to the small and entry- level passenger vehicle segment? 34:28 34 minutes, 28 seconds uh I think uh the business that we are getting now first of all this whole uh market is now shifting towards SUVs. 34:38 34 minutes, 38 seconds So SUV even if it is a mini SUV still I believe the the demand is quite high. 34:47 34 minutes, 47 seconds It's only uh sedans whether it's the entry- level sedan or even the premium C 34:54 34 minutes, 54 seconds segment or D segment sedans that is where the problem started in the industry and we've seen the numbers of 35:03 35 minutes, 3 seconds those vehicles coming down but uh in the next year uh whatever models we are 35:11 35 minutes, 11 seconds starting are I think 90% of those are in the SUV space and therefore we don't see 35:18 35 minutes, 18 seconds much impact of uh the market changes coming in into our uh sales. 35:26 35 minutes, 26 seconds Okay. Sure. Thank you so much and best of luck. Thank you. 35:35 35 minutes, 35 seconds Thank you. 35:37 35 minutes, 37 seconds Anyone who wishes to ask a question may press star N1 now. 35:50 35 minutes, 50 seconds As there are no further questions from the participants and now hand the conference back to Mr. Bishek Jin for closing comments over to you sir. 35:59 35 minutes, 59 seconds Yeah thank you Ikra. Uh thank you everyone for joining us today. We hope we have been able to address all your questions effectively. 36:09 36 minutes, 9 seconds For any further questions or clarifications, please please feel free to reach out to us or our investor 36:16 36 minutes, 16 seconds relation advisers, strategic growth advisors. Wishing everyone a very good evening. Thank you very much. Thank you. Thank you very much. 36:26 36 minutes, 26 seconds Thank you on behalf of PPAP Automotive Limited. That concludes Wisconsin. Thank you all for joining us today. And you may now disconnect your lines.