Sandhar Technologies Limited — Q3 FY26

Sandhar Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=X5aEqEdoIyk Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Sandha Technologies Limited Q3 FY26 earnings conference call 0:08 8 seconds hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listenon mode and 0:16 16 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:24 24 seconds signal an operator by pressing star then zero on your Touchstone phone. Please note that this conference is being 0:31 31 seconds recorded. I now hand the conference over to Mr. Chiak Jane from MK Global. Thank you and over to you sir. Thank you Huda. 0:40 40 seconds Uh good morning everyone. On behalf of MK Global Financial Services. I would like to welcome you all to the uh 3Q 0:47 47 seconds FI26 earnings conference call of SAR Technologies Limited. Today we have with us from the management team Mr. Jen Daw, executive chairman, director and CEO. 0:58 58 seconds Mr. Mr. Neil Jay Dawar, director, Mr. 1:00 1 minute Gurvinder Jit Singh, wholetime director and head of corporate strategy and Mr. 1:05 1 minute, 5 seconds Yashpal Jane, chief financial officer and company secretary. We will begin the call with opening comments from the management team followed by Q&A session. 1:13 1 minute, 13 seconds Over to you Mr. Dawer. 1:16 1 minute, 16 seconds Uh thank you Churag. So let me begin with my gratitude to MK as well as to chorus for organizing this call. Uh good 1:25 1 minute, 25 seconds morning to everyone. Um it seems we are in good times. 1:32 1 minute, 32 seconds Uh from what I understand and if I reflect on what Mr. Chundra, President of Siam said that 2025 has been a 1:41 1 minute, 41 seconds landmark year for the Indian auto industry. Uh the year began a little subdued uh in the first half uh but has 1:49 1 minute, 49 seconds picked up uh in the third quarter and and to give you the good news the 1:56 1 minute, 56 seconds passenger vehicle segment posted its highest ever sales of quarter 3 at 12.76 lakhs the in in two wheelers quarter 3 2:06 2 minutes, 6 seconds again two wheelers posted their highest ever quarter 3 sales of 5.7 million if I 2:13 2 minutes, 13 seconds look at Three-wheelers again quarter 3 has posted their highest ever quarter 3 numbers of 2.15 lakhs. Commercial 2:22 2 minutes, 22 seconds vehicles again recorded its highest ever sales of quarter 3 of 2.90 lakhs. So u 2:29 2 minutes, 29 seconds as we sit here today of course these are the final numbers of the OEMs in quarter 3 which meant that the auto component 2:38 2 minutes, 38 seconds industry uh was most active in quarter two because there is a lag. uh but what 2:44 2 minutes, 44 seconds I see going forward is that the outlook uh for this particular quarter for the 2:51 2 minutes, 51 seconds auto component industry and even the first quarter of the next financial year 2:58 2 minutes, 58 seconds for the auto segment itself uh seems to be very very bullish as we sit and talk 3:06 3 minutes, 6 seconds here today. uh we as a company have um um very clearly given our u investor 3:15 3 minutes, 15 seconds presentation. I'm sure all of you have a copy uh but to give you some highlights of this particular presentation. We've 3:23 3 minutes, 23 seconds largely divided it into three different parts. One is the India operations which is the existing business. One is the 3:31 3 minutes, 31 seconds India operations which are new businesses that their company has added or have taken in in terms of the 3:39 3 minutes, 39 seconds acquisitions. Then there is the overseas business uh which uh again is the third element of this particular presentation. 3:49 3 minutes, 49 seconds Add to this there are elements of the EV business, the subsidiaries and the joint ventures. So uh to give you a broadside 3:59 3 minutes, 59 seconds let me just u give you some numbers. I know you have those numbers but if I look at quarter 3 numbers our revenue 4:06 4 minutes, 6 seconds from operations uh grew by 24% on a 9-month basis we grew by 26%. 4:13 4 minutes, 13 seconds Overseas business the revenue of operations was down by6 but eidata was up by 68%. 4:21 4 minutes, 21 seconds uh if I look at 9month period the revenue from operations grew by 2%. On a consolidated business growth quarter 3 4:29 4 minutes, 29 seconds numbers we've grown by 22% on a 9-month basis we've grown by 24%. 4:35 4 minutes, 35 seconds Uh in terms of joint ventures all the five joint ventures have performed satisfactorily registering revenue of 4:41 4 minutes, 41 seconds 61.69 crores and total eidata at 7.40 40 crores for quarter 3 and 21 crores for 9 4:50 4 minutes, 50 seconds months of the current financial year. Um overseas subsidiaries and business I've already mentioned there has been a 4:58 4 minutes, 58 seconds slight decline. Uh but despite the slight decline in revenue the losses have been cut down to 8 crores versus almost 11 crores in quarter 325. 5:10 5 minutes, 10 seconds And the company you'd be happy to know has taken many steps to reduce the cost, increase operational efficiency and 5:18 5 minutes, 18 seconds expand the customer and product base. We are very very hopeful that this particular quarter uh we should be able 5:26 5 minutes, 26 seconds to break even as I had mentioned even in the previous calls. The European markets continue to witness uncertainty. uh but 5:35 5 minutes, 35 seconds with the steps that we have taken as a company I am sure that we will move ahead in a positive direction from now 5:43 5 minutes, 43 seconds on. In terms of EVs, uh we've started doing commercial invoicing of battery chargers and motor controllers. Um we 5:51 5 minutes, 51 seconds are getting a positive response from the market. Uh so far we've generated a revenue of 12.18% 5:58 5 minutes, 58 seconds which is multiple times of what we had done in the previous year. And now that it's fully operational, we expect that 6:07 6 minutes, 7 seconds the next uh full year will dramatically improve over the performance so far. So those are my opening comments. Uh in the 6:15 6 minutes, 15 seconds call today uh there is me uh there is Mr. GJ Sen whole time director, there is 6:23 6 minutes, 23 seconds Mr. Neil Dawer and there is Mr. Yash Pal Jan who's the CFO of the company who should be able to answer all your 6:31 6 minutes, 31 seconds questions regarding any kind of numbers uh what has happened what is likely to 6:38 6 minutes, 38 seconds happen are are things that he would be able to take on very comfortably with that I open the conference once again 6:45 6 minutes, 45 seconds with a big thank you uh the uh we happy to take your questions from now on thank you 6:53 6 minutes, 53 seconds thank you very much we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 7:02 7 minutes, 2 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 7:11 7 minutes, 11 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 7:18 7 minutes, 18 seconds The first question is from the line of Adita from Complete Circle. Please go ahead. 7:25 7 minutes, 25 seconds Uh hi team Sar congrats on a great set of performance. My first question was on the margins if you can just give any 7:31 7 minutes, 31 seconds outlook on that. And number two uh in the EU or any other geographies abroad are you looking at any more acquisitions? Thank you. 7:41 7 minutes, 41 seconds Uh Adita thank you for that question. Uh just to give you a broadside so that everybody also understands. Like I said we've divided the presentation into 7:50 7 minutes, 50 seconds three distinct parts. On the existing business the revenue has grown by 14.5%, the eidata margin has gone up from 10.5% to 11.9%. 8:02 8 minutes, 2 seconds Uh the EBIT again has increased and the interesting thing is that the ROS annualized for the existing business has gone up from 16.3% to 21.1%. 8:13 8 minutes, 13 seconds Uh so there is a distinct improvement that is happening uh in every segment. 8:19 8 minutes, 19 seconds If I look at the over the new projects, the new projects are obviously very very small uh in terms of revenue, we have 8:27 8 minutes, 27 seconds gone up from uh a revenue of only 2.754 crores to 305 crores in the 9 month 8:34 8 minutes, 34 seconds period. Uh the EITA which was minus has come into positive territory and again we are very bullish on this going 8:43 8 minutes, 43 seconds forward. Overseas business again uh while the revenue is has gone up only by 8:49 8 minutes, 49 seconds 2% in this 9-month period uh the we we do believe that this last quarter will 8:57 8 minutes, 57 seconds be the turning quarter for the company in terms of negating any negative uh numbers that we were getting so far. Uh 9:05 9 minutes, 5 seconds yes pal in case you could come in and explain this a little more uh to the satisfaction of Adita. 9:13 9 minutes, 13 seconds Yes sure sir. So like if you see the figures sir basically the 9 months figures if we say we have a cumulative 9:21 9 minutes, 21 seconds loss of 25.81 crores in the overseas business which is partly on account of translation losses partly on account of 9:28 9 minutes, 28 seconds the operations operations but uh now the effective measures have been taken. So going forward starting quarter four of 9:36 9 minutes, 36 seconds the current financial year and quarter one of the next financial year this would be turning to positive. So if you 9:45 9 minutes, 45 seconds consider the coming financial year this negative negative contribution from the overseas is likely to be eliminated. 9:52 9 minutes, 52 seconds Similarly the new projects which has sustained a loss of close to 24.98 crores. So again around 25 crores. So 10:00 10 minutes taking together is 50 crores for both these overseas as well as a new project. 10:04 10 minutes, 4 seconds So new projects are also showing a healthy sign of turnaround uh which are currently visible from the improvement in AITA level also. So starting uh from 10:14 10 minutes, 14 seconds April 26 these projects will also turn around. So gradually the margin should go up. 10:24 10 minutes, 24 seconds And sir, any color on any acquisitions or any potential target that you're looking at? 10:31 10 minutes, 31 seconds Well, al this is a ongoing process. If any good opportunity comes up, we keep on evaluating. But if it fits into our 10:38 10 minutes, 38 seconds parameters, then only we pursue the same otherwise we don't pursue it. We have set some internal parameters in terms of financial and operational evaluation for the target entities. 10:49 10 minutes, 49 seconds And unfortunately for last one and a half years we have been in touch with many of these opportunities but none of them could fit into our parameters. So 10:58 10 minutes, 58 seconds we are on the lookout but at the right time for the right opportunity we might go for it depending on this other I mean 11:05 11 minutes, 5 seconds many factors are sure thank you. 11:08 11 minutes, 8 seconds In simple terms there is nothing on the table today. If there is something that were to arrive which was going to which is very very exciting uh we we are open 11:17 11 minutes, 17 seconds to pursuing it is all I'm going is all I'm going to leave you with. No helpful sir. Thank you. 11:25 11 minutes, 25 seconds Thank you. 11:26 11 minutes, 26 seconds The next question is from the line of Anik from CR Kotari and Sons. Please go ahead. 11:34 11 minutes, 34 seconds Thank you for the opportunity. First of all uh congratulation and great set of number. 11:42 11 minutes, 42 seconds Uh my specific question would be regarding to the previous in case there's a lot of disturbance from your line. Can you please check? 11:51 11 minutes, 51 seconds Hello. Hello. Yes, please continue. 11:58 11 minutes, 58 seconds So my specific question first of all I have two questions. The first one would be regarding like the previous guidance which was provided in the earlier calls 12:07 12 minutes, 7 seconds were about like 30 40 basis points improvement in the AIDA. Was it uh including other income or excluding 12:16 12 minutes, 16 seconds other 12:29 12 minutes, 29 seconds background sound chorus? Can we Yes pi you want to take that question? 12:35 12 minutes, 35 seconds Yeah yeah yeah sure sir I mean I was just waiting for the second question also if you can put the second question also. 12:40 12 minutes, 40 seconds Yes the second question is regarding the currently as India's uh foring into multiple trade deals and uh deals with 12:49 12 minutes, 49 seconds European countries as well. So I wanted to understand what would be the impact on the companies like product demand and supply side. 12:59 12 minutes, 59 seconds Sure. So first question I'll answer. So earlier guidance that we have given to you was excluding this uh I would say 13:06 13 minutes, 6 seconds onetime profit on sale of our uh one of the existing uh land parcels in Pina Bangalora from which we got a profit of 13:13 13 minutes, 13 seconds 34 kores. So obviously that is only extraordinary income you can say but that plant was a part of our operations and we merge that operation into one of 13:22 13 minutes, 22 seconds our another plant as a uh I mean as a part of our uh to lean the operations wherever we don't require the larger 13:30 13 minutes, 30 seconds facilities or I would say the head count I mean the number of the facilities secondly in terms of 30 to 40 uh base 13:39 13 minutes, 39 seconds improvement in the margins yes we were projecting it but as we have I mean tried to present to the investors that 13:46 13 minutes, 46 seconds existing business we are up to the mark that we were expecting to go except there has been a slight fall in the quarter one that we explained to the 13:54 13 minutes, 54 seconds investor community during quarter one also due to disturbances in the productions from one of the OE and also 14:01 14 minutes, 1 second the slowdown in the offway vehicle segment uh apart from that we are very well on the track that we have guided to the 14:10 14 minutes, 10 seconds market and uh quarter four will be a more better quarter because quarter 3 has a lesser number of working days in 14:17 14 minutes, 17 seconds terms of there's always a closure in the last week of December at various OE so quarter 4 will be the better one and I think we would be able to improve our 14:26 14 minutes, 26 seconds margins un so just for the final remark it would be excluding or including other in 14:35 14 minutes, 35 seconds we whenever we count we count excluding extraordinary other income but there are certain regular incomes which are classified as per the accounting 14:43 14 minutes, 43 seconds standard other income But they are part of operations only. So the the classification is based on the accounting standards the indust but some 14:50 14 minutes, 50 seconds of these incomes are in the nature of operating income but they are not classified as revenue from operation they are classified as other income as 14:58 14 minutes, 58 seconds other operating income. Yeah uh second portion sir you would like to 15:06 15 minutes, 6 seconds reply or in terms of the trade deal with Europe. 15:12 15 minutes, 12 seconds Uh what was the second question? Come come again. It wasn't very clear. There was a background. 15:17 15 minutes, 17 seconds Okay. So I'll So it was uh regarding the demand supply for products in overseas markets as India is getting into 15:25 15 minutes, 25 seconds multiple deals with just recently EU and the UK FDA as well. 15:30 15 minutes, 30 seconds So just wanted to understand uh the total impact on the products of our company. If I can get a bipation that would be great. 15:40 15 minutes, 40 seconds uh to be honest if you look at the entire auto industry and the auto industry that was largely supplying to 15:46 15 minutes, 46 seconds OEMs there is hardly any impact because if there were parts that were going to the commercial vehicle segment or 15:54 15 minutes, 54 seconds otherwise to the US or to the EU there were exemptions already in place where the punitive tariffs were not being 16:02 16 minutes, 2 seconds considered at all it was only in the case of aftermarket that the impact of the tariffs was felt 16:10 16 minutes, 10 seconds uh so to that end people who are in the afterm market in terms of exports uh they will probably benefit we as a 16:19 16 minutes, 19 seconds company we are an OEM directed company largely wherever our incomes from overseas is concerned whether they are 16:26 16 minutes, 26 seconds from India or from our international operations. So the impact on us uh in 16:32 16 minutes, 32 seconds terms of u our current operations is is not there but we do believe that going 16:40 16 minutes, 40 seconds forward this would lead to several other opportunities as Europe and America 16:46 16 minutes, 46 seconds start looking at India uh for a larger base for supply. But to answer your 16:53 16 minutes, 53 seconds questions directly as of now uh is there an impact and will we suffer or gain? Uh the answer is no. 17:02 17 minutes, 2 seconds Okay. Thank you for the clarity sir. 17:03 17 minutes, 3 seconds I'll join back with you and wait for my chance. All right. 17:08 17 minutes, 8 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star N1 on their telephone. 17:17 17 minutes, 17 seconds The next question is from the line of Basant Patil from the wealth company. Please proceed. 17:25 17 minutes, 25 seconds Yeah. Hello sir. Yeah. Uh thanks for the opportunity. Uh sir, just wanted to understand your uh thought process on 17:32 17 minutes, 32 seconds overseas debt actually. So if you look at last one year trajectory, we are on the elevated curve only. So there is no 17:40 17 minutes, 40 seconds uh declining trend actually which has not seen. Even if you look at the performances of the overseas actually still at the operating level we continue 17:47 17 minutes, 47 seconds to do the losses. So what would be the rational or what do you think going ahead down the line 2 three years is there could be any opportunity to uh 17:56 17 minutes, 56 seconds liquidate some of the assets to repay the debt or you have to burn the cash from India earnings what we earn here and we should able to serve the debt there. 18:05 18 minutes, 5 seconds I'll let Yash Pali answer the question but a large part of it is translation in terms of debt that was already there. Yashpi you want to come? 18:13 18 minutes, 13 seconds Yes sir. Yeah I'll answer. So like in overseas uh yeah there has been a little pressure on account of the business 18:20 18 minutes, 20 seconds being slow over there. So the increase in that is because of two factors like one is if you see if you compare from 18:27 18 minutes, 27 seconds March 25 because we have a borrowings there in overseas in USDs and euro which are serviced in USD and euros and we are 18:35 18 minutes, 35 seconds earning in the same currencies. So directly on a realization basis we are not incurring any exchange losses but 18:42 18 minutes, 42 seconds the euro has moved from 92.43 rupees to 105.49 and similarly dollar has moved from 85 18:50 18 minutes, 50 seconds rupees to 90 rupees in terms of translation. So partial of the that increase is on account of the translation losses that we have been uh 18:59 18 minutes, 59 seconds putting to convert the same into Indian GAP as per the Indian gap because we are our group currency is Indian rupees. 19:07 19 minutes, 7 seconds There is yes there is a increase in the debt in clear terms in USDA that is shown in the investor presentation chart 19:14 19 minutes, 14 seconds also. This is on account because earlier they were having the bill discounting facilities which were classified into current liabilities because as per the 19:22 19 minutes, 22 seconds accounting standard even IFRS also the current liabilities and in India as also the current li this bill discounting is a part of current liabilities but since 19:31 19 minutes, 31 seconds it was a costly affair for us because bill discounting was literally about 10% over there the bill discounting entirely 19:37 19 minutes, 37 seconds we have switched from uh uh to a clean debt in terms of WCDL so now it is being added to the overseas is that so these 19:45 19 minutes, 45 seconds are the major two components and some is the routine capex that we have done over there which is not a bigger amount it's 19:52 19 minutes, 52 seconds around 18 to 20 crores in terms of maintenance and like stuff in terms of repayment of the debt we are 20:00 20 minutes we have been able to service the debt from there itself as of now we haven't remitted any money from India the only arrangement with the bankers is that we 20:08 20 minutes, 8 seconds have extended the comfort letter from India and the standby letter of credit from India and the Borrowings have been 20:15 20 minutes, 15 seconds secured at overseas level and they have been able to service their debt requirements although there has not been a cut down in the debt but starting 20:23 20 minutes, 23 seconds April 26 once the operations are back to the track they will start uh as I mean repaying their debt in a proportion of 20:31 20 minutes, 31 seconds the cash earnings that they will be generating. 20:36 20 minutes, 36 seconds Okay. Thank you. Thank you. Yeah. And yeah and the one more question uh sir actually on the overseas performance. So 20:44 20 minutes, 44 seconds what is your uh thought pun for next at least for one year when you are going to see the aggressive ramp up and improvement in the margins especially I 20:54 20 minutes, 54 seconds hope all the four uh geographies are aluminium die casting only. So in even uh going to be going ahead there is a 21:02 21 minutes, 2 seconds lot of pressure on the aluminium prices which have been elevated since now. So how much of this kind of the losses so 21:10 21 minutes, 10 seconds you won't be able to take a pass through agreement to completely to the clients or how it is actually so definitely there could be losses what is your just 21:19 21 minutes, 19 seconds wanted to understand in that segment for your Yeah sure yeah sure so with the I mean the with 21:26 21 minutes, 26 seconds the efforts put in place with the changes put in place starting April 26 the overseas should not sustain losses 21:34 21 minutes, 34 seconds this is the first thing despite aluminium is being strong because we have passed through with the customers also but operationally the uh I mean the 21:43 21 minutes, 43 seconds entire operations have been I would say restructured many of the things have been put in I mean new things have been put in place 21:52 21 minutes, 52 seconds some old practices have been done away with and it's not only from the financial restructuring also but we have done from the operational side also on 22:00 22 minutes so I don't think there is any reason why we should not see any improvement starting ing April 26 in the overseas 22:07 22 minutes, 7 seconds also. So we are hopeful that starting uh first part of the next financial year overseas will go back to the old trajectory that they used to be. 22:19 22 minutes, 19 seconds So old trajectory means that means close to high single digit kind of the operating margins. 22:23 22 minutes, 23 seconds Yeah. Yeah. Yeah. Around 9 to 10% of margin starting starting. Okay. Yeah. 22:30 22 minutes, 30 seconds Okay. Thank you sir. I'll come. Thank you. Sure. Thank you. 22:34 22 minutes, 34 seconds Thank you. The next question is from the line of meet from Aquarius PMS. Please go ahead. 22:42 22 minutes, 42 seconds Yeah. Thanks for the opportunity. Am I audible? Yes sir. Yes you are. 22:47 22 minutes, 47 seconds Yeah. Yeah. So uh firstly on uh Sundaram ADC business what was the contribution in Q3 and uh how are the margins uh trending in that business? 23:00 23 minutes So in Q3 as we I mean informed in the earlier quarters also that this year would be a pressure year for the solar 23:08 23 minutes, 8 seconds business because we are operating in a different from a different premises. 23:12 23 minutes, 12 seconds So this year the it was at a break even at the AITA level and uh on our revenue size it was 82 crores of revenue the business gave us. 23:22 23 minutes, 22 seconds However the AITA was around five lakhs only. Uh so it's so it was more of a break even at the beta level. 23:31 23 minutes, 31 seconds Okay. 23:31 23 minutes, 31 seconds Uh going forward like April 26 or early week of May 26 we will be completing the switch over of the plant from the existing to our own premises. 23:42 23 minutes, 42 seconds So starting uh financial year 26 27 we are expecting to in the first year to go back at a margin of 7 to 7 and a half%. 23:52 23 minutes, 52 seconds and in the next 3 years to reach uh to create I mean to reach the level of 9 and a half% that we are getting in the other ADC businesses also. 24:02 24 minutes, 2 seconds Okay. Okay. And in terms of uh revenue for Sundaram can FI27 uh exceed 500 crores? 24:11 24 minutes, 11 seconds They should be around 500 crores sir. 24:15 24 minutes, 15 seconds Okay. Okay. Okay. And second in terms of if you look at the product mix so what products are housed under the other 24:24 24 minutes, 24 seconds segment uh so I just wanted to understand the maybe a seasonality aspect or some other thing because contribution of others uh has decreased 24:33 24 minutes, 33 seconds from 7 and a half% to 2% in this quarter if I look at QQ. 24:39 24 minutes, 39 seconds Yeah exactly. So others are very miscellaneous. I mean there's a big set of other activities that we are doing 24:46 24 minutes, 46 seconds like there's a plastics business there's other businesses also which are not classified into above say seven eight categories so one of the reasons for the 24:55 24 minutes, 55 seconds if you see the fall in the above categories that some of those business have matured and uh they have been I would say I they have been merged with 25:03 25 minutes, 3 seconds the above businesses bases the nature of those businesses but largely it remains to be a very residual class I would say 25:11 25 minutes, 11 seconds more than 1820 type of other businesses are there. I mean a small type of project products which cannot be classified over here. 25:20 25 minutes, 20 seconds Okay. So contribution from those products will remain at around 2 3%. 25:24 25 minutes, 24 seconds Yeah it will be 2 3% only. If that crosses around 100 crores or 200 crores of the mark then it would be classified as a separate product base in the list. 25:33 25 minutes, 33 seconds Till that time it will be forming part of others only. 25:38 25 minutes, 38 seconds Understood. Understood. So sir if we uh if you look at two things uh first uh Sundaram business uh turning profitable 25:48 25 minutes, 48 seconds in FI27 and maybe some meaningful improvement in uh overseas profitability which you just highlighted. So how one should look at 25:56 25 minutes, 56 seconds uh FI27 and 28 margins at a console level. 26:00 26 minutes Yeah. Yeah. Yeah. Sure. So I would respond in a manner like 25.81 crores we have sustained losses in overseas 26:08 26 minutes, 8 seconds business. Right. and another 25 K is a loss from these new businesses on and the higher side is on the Sundam clayton 26:15 26 minutes, 15 seconds one out of this 24.81 if you see our slide number uh five right so at the 26:23 26 minutes, 23 seconds current levels of the P&L account this 50 crores should add to our bottom line that we have shown in this 9 months huh 26:30 26 minutes, 30 seconds to be very fair side h so like we are showing a net profit of 134.84 84 for the 9 months right sir in the slide 26:40 26 minutes, 40 seconds number eight so 50 crores eventually should add plus quarter 4 of profit so 26:46 26 minutes, 46 seconds it comes 193 190 oh sorry 184 and another should be around 225 something I 26:54 26 minutes, 54 seconds say roughly it's a rough estimate and by the starting of first quarter we'll come back with the new guidelines but this 50 27:02 27 minutes, 2 seconds crores will eventually add to our margins we are hopeful that these business around. 27:10 27 minutes, 10 seconds Okay. Okay. Thank you. Thank you. 27:13 27 minutes, 13 seconds Thank you. The next question is from the line of Anik from CR Kotari Sons and Stock Broking Net. Please go ahead. 27:25 27 minutes, 25 seconds Thank you once again. Um so my question is around the EV side of our business. 27:32 27 minutes, 32 seconds Can I get a B biperation for the Q3 and 9 months of this current year if that's okay? 27:42 27 minutes, 42 seconds Uh this is for the EV business. Yes. 27:46 27 minutes, 46 seconds So EV business is just starting to ramp up. Huh. And uh the Yeah. So uh in terms 27:53 27 minutes, 53 seconds of revenue based it's a 12 crores of revenue that we have generated as of data and the larger portion has come 28:01 28 minutes, 1 second flown in the third quarter itself. Huh around 5 and a half crores of revenue has flown in uh this uh third quarter. 28:08 28 minutes, 8 seconds Fourth quarter would be more much better as per the estimates this would be higher. So it's uh slowly ramping up but as of now these figures are not so 28:16 28 minutes, 16 seconds comparable with other business verticles that we are doing. Is that 12 crores of revenue that we have got? Yeah. 28:24 28 minutes, 24 seconds So we can say it is kind of growing but uh aluminum die casting and cable fabrication would be on the greater side of the percentage here. 28:34 28 minutes, 34 seconds Uh aluminum die casting the casting machine and tooling and the sheet metal one because sheet metal we have two types of business. One is the cabins and fabrication other is the sheet metal 28:43 28 minutes, 43 seconds other than off highway vehicles. So the off-handed vehicle will have a growth but not up to that level which the sheet 28:50 28 minutes, 50 seconds metal will have because we have done investments more into sheet metal business compared to the cabins business. Huh. Cabins is also expecting 28:57 28 minutes, 57 seconds a growth of 15 16% in the coming financial years. Yeah. 29:02 29 minutes, 2 seconds Thank you for Okay. Thank you. 29:07 29 minutes, 7 seconds A reminder to all participants. Anyone who wishes to ask a question may press star N1 on their telephone. 29:15 29 minutes, 15 seconds The next question is from the line of Chira Jane from MK Global. Please go ahead. 29:20 29 minutes, 20 seconds Uh yeah sir just few clarification uh or let's say questions around uh the new businesses uh let's say smart locks. Uh 29:29 29 minutes, 29 seconds we have let's say two OEMs as of now in terms of orders. Uh so any progress in terms of how the ramp up would be and any uh let's say new client addition in that part of the business. 29:40 29 minutes, 40 seconds Chirat from what I understand we have two main customers. Uh the rest are still to be uh still to take to 29:48 29 minutes, 48 seconds commercial production and commercial launch for their products with smart locks in the market. Uh the way I see it 29:56 29 minutes, 56 seconds the volumes that were projected about 3 years ago uh seem to be slowing down in terms of 30:05 30 minutes, 5 seconds adoption because of high prices. But the ones that have been launched while the movement and the adoption is slow it is 30:14 30 minutes, 14 seconds definitely there. Uh we will uh we do expect that going forward there will be 30:20 30 minutes, 20 seconds more adoption. Uh but the levels of adoption and the speed and pace of adoptions will not be as was expected 3 30:30 30 minutes, 30 seconds to four years ago. Uh so in this particular year uh which is uh 2627 the 30:37 30 minutes, 37 seconds coming year uh we do expect that the numbers for this uh will still be less than 2 to 3% of the overall market. 30:50 30 minutes, 50 seconds Understood. And any uh update on the uh Hyundai business for the electronic uh mirrors uh in terms of SOP? 30:57 30 minutes, 57 seconds Yes. Yes. So, we've got a go ahead now. We start supplies on the 1st of April. 31:02 31 minutes, 2 seconds It was supposed to be uh end of February. Uh but now we've got a go ahead for mass supplies from the 1st of April. 31:11 31 minutes, 11 seconds Understood. And just lastly in terms of overseas business, uh I think we had mentioned about few new client wins. Uh so any update or progress on that? 31:22 31 minutes, 22 seconds Yes, we have new client wins. uh we also have seen that the market in Europe and America is uh sustainable. It's not 31:32 31 minutes, 32 seconds growing as we had expected but luckily for us the new wins that we had in terms of substitution from other suppliers is 31:40 31 minutes, 40 seconds now becoming active and therefore what Yashpal GI said uh will will take shape in the uh starting from next quarter. 31:51 31 minutes, 51 seconds Understood. Thank you so much. Uh we'll go back to the question queue. Huda. 31:55 31 minutes, 55 seconds Yes sir. Thank you. The next question is from the line of Radha from BNK Securities. Please proceed. 32:04 32 minutes, 4 seconds Hi sir, thank you for the opportunity. 32:06 32 minutes, 6 seconds Uh sir uh you mentioned in your opening remarks that uh the commercial vehicle sales has been all-time high in this 32:13 32 minutes, 13 seconds quarter. But uh if we compare the cabin and fabrication performance uh as compared to the industry uh sales volume 32:21 32 minutes, 21 seconds it appears to be muted. So is there any market share loss or uh in this cabinet fabrication department or uh how is the way to look at this business? 32:40 32 minutes, 40 seconds Yeah. There you go. 32:44 32 minutes, 44 seconds Let me let me Yes, sir. Sure, sir. You can answer. 32:47 32 minutes, 47 seconds Oh, sorry. Uh, Rada, I'm sorry. I was on mute and I was speaking. Um, the commercial vehicles have had their 32:55 32 minutes, 55 seconds highest ever quarter 3 sales uh of almost 2.9 lakhs in quarter 3. Uh, but the cabin and fabrication doesn't fall 33:04 33 minutes, 4 seconds into the commercial vehicle category. We call it the construction and offhighway equipment. 33:10 33 minutes, 10 seconds There there we believe that you know because of the change in the engine norms that happened last happened last 33:17 33 minutes, 17 seconds year uh the initial year the first half and even quarter three there wasn't much movement but we do see the increase in 33:26 33 minutes, 26 seconds volumes and increase in orders starting from this particular quarter. So you would see that that will also ramp up 33:34 33 minutes, 34 seconds the way we look at uh how things are going to be in the quarter that we are running in and for the next uh full calendar and financial year. 33:45 33 minutes, 45 seconds So if we compare the four-wheeler including CV uh that performance with the industry CV sales volume uh so I'm 33:54 33 minutes, 54 seconds not taking the cabin fabrication but I'm just taking two wheel up the uh that number. So that also remains noted. So 34:01 34 minutes, 1 second this can be compared with the CV industry sales states sir. Which one? Which one? Uh come again. 34:09 34 minutes, 9 seconds The fourwheer sales sir. 34:12 34 minutes, 12 seconds No are you talking about our India operations? 34:16 34 minutes, 16 seconds Overall sir in the presentation we give uh verification two wheeler four-wheeler or highway. I'm looking at the fourwheer. 34:25 34 minutes, 25 seconds Okay. Let me look at that. 34:27 34 minutes, 27 seconds Okay. Yeah. Yeah. So I'll just answer sir the breakup you are referring it comprise of overseas business as well as 34:34 34 minutes, 34 seconds India passenger car vehicles that what you are referring to the four passenger vehicle four-wheeler in the presentation 34:40 34 minutes, 40 seconds yes the four-wheeler including TV yeah so like if you go with the vehicles 34:48 34 minutes, 48 seconds PV C uh CV commercial vehicles we don't have a much larger share in the commercial vehicles so it has emerged in 34:55 34 minutes, 55 seconds others while passenger vehicles is showing separately IA this is all it is 11.2% for quarter 3 and on 9 months it is 12.8%. 35:05 35 minutes, 5 seconds The fall is basically primarily in India we have Honda cars as the customer. So the volumes Honda cars are down and as 35:12 35 minutes, 12 seconds well as overseas business is now again going I I mean it will go back to the old levels. So once this happens the 35:19 35 minutes, 19 seconds volumes will again go back to around 15 16% as we used to have earlier. 35:28 35 minutes, 28 seconds So what gives us confidence of turnaround in overseas decision in the next quarter? 35:33 35 minutes, 33 seconds Uh the turnaround there have been a many factors as I mentioned in the earlier to the earlier participant also at the operational side also and in terms of 35:42 35 minutes, 42 seconds the financial restructuring also in terms of their payables receivables debt. We have done a complete restructuring the effect of will start 35:51 35 minutes, 51 seconds flowing from next month onwards because it normally takes two to three months to get the documents endorsed from the counterparty in overseas. Similarly in 36:00 36 minutes operation side also because overseas have some I would say strict norms compared to India in terms of the labor also in terms of other operation 36:07 36 minutes, 7 seconds aspects. So now we have been able to do the same. So that's the reason we are hoping and expecting that starting April 36:16 36 minutes, 16 seconds 26 there should be a turnar around in the overseas business. Also let me also add that let me also add 36:26 36 minutes, 26 seconds that some of the new projects uh which were in the pipeline uh now go into 36:33 36 minutes, 33 seconds manufacturing with us. Uh so with that happening obviously the revenue will also rise and as Yeshal G said in terms 36:41 36 minutes, 41 seconds of restructuring our operations both from a financial standpoint as well as from an operational standpoint uh we 36:48 36 minutes, 48 seconds plugged in a lot of gaps that we felt we could uh with how we anticipated things to be those have been done and keeping 36:57 36 minutes, 57 seconds all these measures in mind we are very very hopeful and bullish on these operations now going back to track as to how they used to be. 37:08 37 minutes, 8 seconds Okay. Volume growth you're expecting 15 16% in the overseas business. Is that right? 37:14 37 minutes, 14 seconds Well, it it could be on a on the overall platform and on the basis. Yes, we do believe that the uh uh the the volume 37:23 37 minutes, 23 seconds and the revenue growth could be of that order. Yes. 37:29 37 minutes, 29 seconds The last question is on the Shundaram plant. The Sundaram revenue used to be 100 crores per quarter in a 34 crores. 37:37 37 minutes, 37 seconds So on a Q basis you mentioned to the previous participant the number. So it seems that both the revenue and have come down while the plant was at the 37:46 37 minutes, 46 seconds same premises in the previous quarter as well. Then what has led to this and by when do you expect 500 cr revenue and at 500 cr what margins are you expecting? 37:58 37 minutes, 58 seconds So quarter three the revenue and margins are down because for a week the operations were uh running at a very low capacity and last five six days they 38:06 38 minutes, 6 seconds were shut down because TVS was also under maintenance. So we could supply them before the that part period. So that's the reason the revenues have been 38:14 38 minutes, 14 seconds 82 and a half crores against 100 crores that we were getting in the earlier two quarters. 38:20 38 minutes, 20 seconds Similarly uh the reasons of fall in profit is also attributable to the low volumes because of fixed cost remains the same and as I mentioned to the 38:29 38 minutes, 29 seconds earlier participants starting April 26 for 26 27 I think this plant should be at around 7 to 7 and a half% of aidita 38:37 38 minutes, 37 seconds margin in the first year and in next 2 to 3 years it should go to 9 to 9 and a half that we are getting from other 38:45 38 minutes, 45 seconds businesses in aluminium diecasting because our shifting will be completed by the end of April or the first week of May. Yeah. And then we will have the 38:52 38 minutes, 52 seconds full ramp up capacity in the new plant there is an impact of Yeah. Yeah. Yeah. 39:00 39 minutes Please. Yeah. Rather there is no shortage of orders. 39:05 39 minutes, 5 seconds Yeah. It is it is it is the constraints that we have uh operating from the 39:11 39 minutes, 11 seconds existing facility uh which is transitory and and for your information the new plant is almost complete now. We are now 39:20 39 minutes, 20 seconds fixing it up with utilities and we are quite confident that we should be able to run trials uh in the beginning of 39:27 39 minutes, 27 seconds April and within April itself we should be able to move the entire facility to the new plant. 39:36 39 minutes, 36 seconds That's great sir. Thanks and all the best to the team. 39:40 39 minutes, 40 seconds Thank you. The next question is from the line of Maitric Sha from Safaya Capital. Please proceed. 39:48 39 minutes, 48 seconds Yeah. Hello Mahad. Yes ma'am. 39:52 39 minutes, 52 seconds Yeah. Yeah. Good morning. Just a few questions. Firstly on the targets for revenues to the existing business on the Indian side. We grew uh more than it now 40:01 40 minutes, 1 second 11.9% margin. So do you see such growth being sustainable for the next fiscal year or are we targeting even more? 40:10 40 minutes, 10 seconds Uh mri quick uh answer to this is we've grown at the number that we had 40:17 40 minutes, 17 seconds projected and I see no reason why the next uh year and the year after that should not continue with the same rate 40:26 40 minutes, 26 seconds of growth. Uh we have uh the infrastructure in place, we have the orders in place. uh and and of course 40:34 40 minutes, 34 seconds unless something unduly happens in the world which obviously is something which we cannot control uh we do believe that 40:41 40 minutes, 41 seconds our highway is now quite clear and is allowing us that particular kind of 40:48 40 minutes, 48 seconds growth for the foreseeable future. Okay, that's great. And we do maintain the 12% of VA margins going forward as well on the existing side. 40:58 40 minutes, 58 seconds Well, we are looking so this is a combination of margins. It depends on the average route of u both our 41:06 41 minutes, 6 seconds proprietary business, our aluminium business, our sheet metal business. But suffice to say that each one of these areas is looking to improve their 41:15 41 minutes, 15 seconds margins. I would not be able to give you an exact number but I can definitely say that the overall margins will improve from here on even further. 41:25 41 minutes, 25 seconds That is great. Yeah. And on the new new businesses we've seen a massive growth this year. What sort of margins do you 41:33 41 minutes, 33 seconds expect going forward from next year and any growth growth targets you have for this business on the India new business side? 41:40 41 minutes, 40 seconds The India new business side. The India new business is largely businesses which have which are new plants. So there's a 41:48 41 minutes, 48 seconds plant that we have two new facilities that have become active in Punea. Uh there is a new facility in Chennai and 41:56 41 minutes, 56 seconds there is of course the Sundram Clayton business. Uh these are things that we've defined as our uh new uh projects which are which have been in initial stages. 42:07 42 minutes, 7 seconds Uh again there would be a hybrid of several things but like I said there would be a dramatic difference and an 42:16 42 minutes, 16 seconds improvement in the in these businesses in terms of margins and a dramatic growth. You've already seen revenue go 42:24 42 minutes, 24 seconds from 9 month 25 from 2.74 to 305. you would see a dramatic improvement in the revenues and you would see an even much 42:33 42 minutes, 33 seconds more dramatic uh improvement in terms of margins any quantification on the margin side since you mentioned that 42:40 42 minutes, 40 seconds like I said it's see see like I said it is a hybrid for example uh Mr. Yashpali 42:48 42 minutes, 48 seconds just said that in terms of casting businesses we do imagine that the new businesses would take us from a break 42:56 42 minutes, 56 seconds even aida to about 7 7 and 12% in the coming year. Uh so in the sheet metal 43:03 43 minutes, 3 seconds business again uh there have been improvements and we will continue to see those improvements happening as we go forward. uh the there are some elements 43:12 43 minutes, 12 seconds of the EV business which are in losses and we do imagine that in the next year we should be close to break even there 43:19 43 minutes, 19 seconds as well. So if you were to combine uh it it leads up to several hybrid numbers for which I cannot give you a single number today. 43:28 43 minutes, 28 seconds Correct. Correct. Okay. Yeah, that is it from my side. Thank you so much. 43:33 43 minutes, 33 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir. 43:43 43 minutes, 43 seconds All right. Uh with that, I think we come to the end of our question answer. I hope we've been able to satisfy. Uh we 43:51 43 minutes, 51 seconds tried to to the best of our ability. Uh let me once again use this platform to invite you all to visit some of our 43:58 43 minutes, 58 seconds plants uh for you to get a closer look at what we do, how we do uh how we operate and we'd be very happy to answer 44:07 44 minutes, 7 seconds your questions in person as well. U uh but for today I want to thank chorus. I want to thank MK and Shira uh for 44:16 44 minutes, 16 seconds putting this call together. Uh I will leave you all on a happy note which says 44:22 44 minutes, 22 seconds that the immediate quarter looks extremely exciting and the next year 44:30 44 minutes, 30 seconds also looks very very exciting with our plans roads all ready for takeoff. With that thank you all once again on behalf of me and my entire team here at Sand. 44:42 44 minutes, 42 seconds Thank you. 44:43 44 minutes, 43 seconds Thank you on behalf of MK Global Financial Services Limited. That concludes this conference. Thank you for joining us and you may now disconnect our lives.