Schaeffler India Ltd — Q3 FY26

Schaeffler India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TFWDXU1sug8 Published: 2 months ago

0:01 1 second Good morning ladies and gentlemen and welcome to the shafller India Q4 CY25 earnings conference call. As a reminder, 0:10 10 seconds all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on a 0:26 26 seconds touchstone phone. Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Miss Gordi Kaneker. Thank you and over to you ma'am. 0:39 39 seconds Thank you. Hello and welcome to Shhatler India Limited's earnings conference call for the fourth quarter and 12 months ended December 30th, 2025. We have with 0:48 48 seconds us from the management today our managing director and chief executive officer Mr. Harsha Kadum and our director of finance and chief financial 0:55 55 seconds officer Miss Hardi Basirani. Mr. Kadam will first take us through a short presentation on the results after which we will open the floor for questions. 1:04 1 minute, 4 seconds Thank you and over to you Mr. Kadam. 1:07 1 minute, 7 seconds Thank you Babi and uh good morning to all of you. A warm welcome to this uh earnings call. I have with me my CFO Mr. 1:15 1 minute, 15 seconds Hardi Wazirani as well. Hello. 1:19 1 minute, 19 seconds So let me uh straight away get into the flow. So let me uh take you through the brief presentation that has already been 1:26 1 minute, 26 seconds uploaded. So I draw your attention to slide number two. And I always begin my 1:34 1 minute, 34 seconds presentation with some success stories and uh success coming from the customer speaks high about the good work that we 1:42 1 minute, 42 seconds as an organization as a motion technology company have been striving to do over the over the years. Now that 1:50 1 minute, 50 seconds said, I'm on slide number two and uh in the quarter Q4 2025. 1:58 1 minute, 58 seconds As you can see, we have uh uh been awarded few awards. Three coming predominantly 2:05 2 minutes, 5 seconds from the customers, one from each of the business divisions that we play in and two of the awards coming for our CSR 2:14 2 minutes, 14 seconds effort uh that we undertake as well. Let me start with the first award coming from W. Uh we were awarded uh from our 2:23 2 minutes, 23 seconds industrial customer VIP for the best performance and continuous commitment to excellence. Uh fundamentally coming on 2:32 2 minutes, 32 seconds the back of uh uh zero quality complaints in the last 12 months. Uh this has been a commendable win. Uh 2:41 2 minutes, 41 seconds particularly uh based on the fact that uh we started business with voice wipe 2:48 2 minutes, 48 seconds couple of years back and uh our commitment to deliver the best quality products remains on top and we have 2:55 2 minutes, 55 seconds lived up to the expectations of the customer. 3:00 3 minutes The second award I would draw your attention to is from Aisha Motors. And 3:06 3 minutes, 6 seconds here again this is awarded in the aftermarket space uh fundamentally because of um our outstanding 3:15 3 minutes, 15 seconds contribution in supply chain transformation wherein we have made investments to ensure on-time deliveries to our 3:25 3 minutes, 25 seconds customer there and this two has been recognized for our performance in the quarter for the entire year 2025. 3:34 3 minutes, 34 seconds The third award is from our esteemed customer Mahindra and Mahindra again here and uh this again is coming for uh 3:44 3 minutes, 44 seconds ontime deliveries for the engine systems which we have consistently maintained month after month and we were recognized for this as well. 3:56 3 minutes, 56 seconds Moving on uh you know we were awarded in a corporate social responsibility initiative. So doing good for Barat 4:04 4 minutes, 4 seconds Awards which was held at South Asia's largest CSR and ESG summit in New Delhi. 4:11 4 minutes, 11 seconds Now this event focused predominantly on women and inclusion, employability and livelihood which highlights impactful 4:19 4 minutes, 19 seconds projects driving social change. our project women's skill development and nisara which was showcased on the 10th 4:28 4 minutes, 28 seconds of October 2025 reinforcing our commitment to empiring empowering women 4:34 4 minutes, 34 seconds and also fostering inclusive growth and the last award that I wanted to share with you has been a consistent 4:43 4 minutes, 43 seconds winner for us of what a conservation project the gel Samrudi won another award under the beyond defense 4:53 4 minutes, 53 seconds And this was uh at New Delhi again. Uh fundamentally this is about water 5:00 5 minutes absorption trenches, the recharge ponds, the drainage line deepening and check dams that we have invested in building 5:08 5 minutes, 8 seconds in an arid region. Uh and also couple that with solar powered pumps with drip 5:15 5 minutes, 15 seconds irrigation systems that we have been able to consistently invest over the years. So with which has eventually 5:24 5 minutes, 24 seconds enhanced water harvesting capacity of almost up to a height of 1.04 m above 5:32 5 minutes, 32 seconds the groundwater levels. This has impacted almost 2,500 people in the village around and we are very proud of 5:40 5 minutes, 40 seconds this uh corporate social responsibility projects that we remain committed to and we remain focused on. On that good note, 5:49 5 minutes, 49 seconds let me now move to throw some light on the economy and uh I move to slide number four. 5:58 5 minutes, 58 seconds So as you can see from the GDP growth in India, India's momentum reflects a combination of domestic demand 6:05 6 minutes, 5 seconds resilience, structural reform continuity and a clear growing role in the global supply chain. 6:14 6 minutes, 14 seconds Now obviously it goes without saying that a combination of uh the policy rate cuts, the regulatory relaxation for the 6:23 6 minutes, 23 seconds banks and to some extent even the weaker exchange rates they all eased the financial conditions in India and uh not 6:33 6 minutes, 33 seconds to mention of course the softening of the income tax and the good services tax cuts uh supported a kind of nent recovery in urban consumption. 6:44 6 minutes, 44 seconds And um while the rural consumption was recovery was also sustained. 6:52 6 minutes, 52 seconds What is important to note is the inflation which was significantly lower in 2025 and as you can see in the chart 7:00 7 minutes down below uh the overall average for last year 2025 the inflation has been averaging around 2.2%. 7:09 7 minutes, 9 seconds and especially in Q4 as you can see has recorded the lowest inflation ever at 0.8. 7:18 7 minutes, 18 seconds So the however the core inflation on higher precious metals inflation mainly on the gold and silver still remains 7:26 7 minutes, 26 seconds high. The real private consumption showed a recovery as such and overall you find that has been a very 7:35 7 minutes, 35 seconds substantial sound fundamentals within the Indian economy. When you look at the index of industrial production too you 7:43 7 minutes, 43 seconds you do see that in the quarter there has been a further appreciation uh to an extent of 5 percentage point 7:51 7 minutes, 51 seconds over the preceding quarter which used to be at 3.8. 7:56 7 minutes, 56 seconds One of the hallmarks for last year and that is specifically for Q4 last year 8:02 8 minutes, 2 seconds has been the GST 2.0 reform which has been a big boost for the automobile 8:09 8 minutes, 9 seconds industry and the government's push for GST 2.0 zero reform which is a landmark 8:17 8 minutes, 17 seconds step towards simplifying compliance as well as fueling economic growth and particularly what this meant for the 8:25 8 minutes, 25 seconds automobile sector obviously streamline tax structures and uh you know lower cascading costs in manufacturing and 8:34 8 minutes, 34 seconds even after sales and obviously resulting in an increased affordability of the for the vehicle consumer. Now that said 8:44 8 minutes, 44 seconds uh overall the automotive production in the the production growth in the quarter has 8:51 8 minutes, 51 seconds been pretty strong comparatively which began to see a strong uptick. Now talk about the consumer price index too. Uh 9:01 9 minutes, 1 second the food inflation moderated the core inflation stayed soft. Energy prices remains stable. overall all the 9:09 9 minutes, 9 seconds indicators for a very sound growth in GDP for the country. 9:16 9 minutes, 16 seconds I would like to throw some light on the core sector performance and to that I ask you to look at slide number five. 9:23 9 minutes, 23 seconds Now what you see here is the specific industrial sectors and as you can see month after month compared to the 9:32 9 minutes, 32 seconds preceding years every sector has posted pretty strong improvement and uh uh strong 9:40 9 minutes, 40 seconds productivity growth as well. Cement production has been very strong which contributes to 5.4% 4% to the economy as 9:49 9 minutes, 49 seconds you can see has grown 10% overall. Steel production close to 9% overall and uh 9:57 9 minutes, 57 seconds mining and coal has been muted a bit but still in the positive range. energy 10:04 10 minutes, 4 seconds which is clearly an indicator of the production and the manufacturing activity in the country also has 10:11 10 minutes, 11 seconds remained more or less stable uh has not seen any decline so to say. So all said and done has been pretty strong on the 10:20 10 minutes, 20 seconds industrial sector. And if I were to move now a little more specific on the automotive sector to slide number six. 10:28 10 minutes, 28 seconds What you get to see is all the sectors have grown strongly obviously riding on 10:34 10 minutes, 34 seconds the back of the uh you know the uh GST 2.0 reforms that I earlier referred to. 10:42 10 minutes, 42 seconds If you look at the two visuals as you can see in the quarter uh we had a strong growth month after 10:50 10 minutes, 50 seconds month uh compared to the previous years and growing at a average of 8.6% at the 10:57 10 minutes, 57 seconds annual level. Passenger vehicles again at 8% strong growth. Commercial vehicles 11:04 11 minutes, 4 seconds too which was sluggish last year has come back and has posted about 8.4% growth there again. tractors again very 11:13 11 minutes, 13 seconds strong growth 17.2% as you can see all in all the biggest beneficiary of the 11:20 11 minutes, 20 seconds GST 2.0 zero reforms uh clearly is a good indicator of uh strong rebound in the automotive sector performance. 11:30 11 minutes, 30 seconds Now uh if one were to look at the production numbers that have been uh registered u you know passenger vehicles 11:38 11 minutes, 38 seconds almost uh even the export markets have posted a strong growth uh while the production numbers grew at 8% 11:46 11 minutes, 46 seconds the export numbers or export sales went up to 16% in passenger vehicles look at the commercial vehicles there again it 11:54 11 minutes, 54 seconds was a hoping 58% improvement uh for the entire year January to December uh in the export market for commercial 12:03 12 minutes, 3 seconds vehicles and talk about two wheelers again there we have seen 24% increase in exports for the full year compared to 12:12 12 minutes, 12 seconds the last year. So all in all very strong performance on the domestic sales at single digit 8 9%. 12:20 12 minutes, 20 seconds But uh on the export side definitely double digit growth all attributing and this is something that as sha India we 12:29 12 minutes, 29 seconds were able to leverage the growth in a very efficient and agile manner which the numbers as I move into the next slide will tell you. 12:40 12 minutes, 40 seconds I move on to slide number eight wherein I want to throw light on the quarter 12:48 12 minutes, 48 seconds four performance and as you can see here the revenue uh we closed the quarter at 2,643 12:56 12 minutes, 56 seconds crores which was a clear 26.9% better than Q4 2024 and also a 12% 13:06 13 minutes, 6 seconds increase over the preceding quarter Q325. plan. 13:11 13 minutes, 11 seconds This volume growth also resulted in a strong eida as you can see uh bringing 13:17 13 minutes, 17 seconds in 505.6 6 million rupees and uh uh 13:23 13 minutes, 23 seconds resulting in an AIDA margin of uh uh I don't see that okay which is a clear 13:32 13 minutes, 32 seconds increase of 19.1% over the Q4 of 25 and the preceding quarter an increase of 20%. So strong 13:40 13 minutes, 40 seconds bottom line performance as well which ultimately resulted in a profit after tax of 328 crores in the quarter. 13:50 13 minutes, 50 seconds One of the highlights has been the strong focus on free cash flow generation which as you can see uh we 13:58 13 minutes, 58 seconds have been able to bring in 254 crores into the kitty and uh this has uh helped 14:04 14 minutes, 4 seconds us to also shore up all the spending and the expenses that had to be uh you know 14:14 14 minutes, 14 seconds aligned with and decided in this quarter which I think I'll share in the subsequent slide. on this back has been 14:20 14 minutes, 20 seconds a pretty sound and good financial performance of the organization in the quarter Q4. Q4 has been one of the 14:29 14 minutes, 29 seconds highest performances in the last four quarters for the entire year. 14:34 14 minutes, 34 seconds Now while the market did enable uh our growth story however it's also I would 14:42 14 minutes, 42 seconds like to attribute that a continuous preparedness in terms of acquiring new businesses also contributed equally 14:51 14 minutes, 51 seconds strongly to the growth story. I draw your attention to slide number nine where our sustained business development 14:59 14 minutes, 59 seconds activity in terms of new business wins whether it is in the automotive technology space. Uh we did have some 15:07 15 minutes, 7 seconds good wins again on passenger vehicle clutches and the dial mass flyings. We had new business wins in the hydraulic 15:15 15 minutes, 15 seconds clamp phases as well. And uh we also had uh some clutch win businesses in the 15:22 15 minutes, 22 seconds light vehicle category as well. Even on the vehicle lifetime solutions, we had uh some strong wins on the front end 15:31 15 minutes, 31 seconds auxiliary drive mechanisms, the timing kits for the passenger vehicles and we continued our focus in adding more 15:39 15 minutes, 39 seconds products to the portfolio as more and more bat six-stage vehicles started to come back for repairs. 15:48 15 minutes, 48 seconds Lastly on the bearings and industrial solutions too we did have significant business wins particularly in the 15:56 15 minutes, 56 seconds product lines of ball bearings needle roller bearings in the two-heer sector and quite a lot in the needle bearings as well and some of the industrial 16:05 16 minutes, 5 seconds applications on the spericals the four row and the two rows uh critical roller bearings and the taper roller bearings 16:13 16 minutes, 13 seconds uh specifically in the cement and the steel sectors as such. So this has been our endeavor continuously to ensure that 16:21 16 minutes, 21 seconds we have pipeline of business coming so that we are ever prepared to capitalize 16:28 16 minutes, 28 seconds as the market begins to uh you know the demand begins to show more traction. 16:35 16 minutes, 35 seconds With that I now move to the third uh part of the agenda which is the financial highlights and I draw your attention to slide number 11 revenue 16:44 16 minutes, 44 seconds from operations. And as you can see and as I mentioned earlier uh when you look at the top chart and you look at the 16:52 16 minutes, 52 seconds 2025 bars you will find that quarter on quarter we have been able to demonstrate 16:59 16 minutes, 59 seconds a sustained growth and the last quarter Q4 has been a significant increase as you can see in terms of the revenue 17:09 17 minutes, 9 seconds at an annualized level we have closed the year with 9395 17:15 17 minutes, 15 seconds crores reports as turnover and uh when if one were to look at the Q4 the quarteronquarter growth has been at 12% and the yearon-year growth of 26.9%. 17:28 17 minutes, 28 seconds So very strong topline growth that we have demonstrated. Now where is this coming from? And if you look at the 17:35 17 minutes, 35 seconds table at the bridge below, you will find that the automotive brought into the system 17:43 17 minutes, 43 seconds uh for the quarter 270 crores. After market 2 contributing 43 crores uh bearings and industrial solution also 17:52 17 minutes, 52 seconds bringing in 120 crores and our export business also did bounce back very strongly in the last quarter and that 18:00 18 minutes came in at about 128 crores. All in all helping us to close the quarter with 2,643 18:07 18 minutes, 7 seconds crores for Q4 which is a clear 12% better than the preceding quarter and a 26.9% 18:15 18 minutes, 15 seconds better than the same period compared to last year. Now that said uh obviously uh a mix how is that looking now and as you 18:24 18 minutes, 24 seconds can see we still continue to sustain a pretty balanced mix of automotive OEM business and our bearings and industrial business at 35% and 39% respectively. 18:36 18 minutes, 36 seconds The aftermarket too has performed much better and registers 11% share of the total sales mix with our export 18:44 18 minutes, 44 seconds sustained at 15% which is exactly in line with our plan as such. Now that said, 18:52 18 minutes, 52 seconds I move to the earnings quality slide which is on slide number 12. And here what you see is the EIDA performance for 19:01 19 minutes, 1 second the quarter. Once again demonstrating that every quarter on quarter we have been able to increase our EIDA 19:10 19 minutes, 10 seconds numbers and as you can see while at an annualized level we were able to deliver 19.6%. 19:18 19 minutes, 18 seconds uh what you see is a quarter on 6.2% better than the preceding quarter bringing in 505 crores into the kitty. 19:27 19 minutes, 27 seconds Now the bridge clearly explained the has to where did this come from and obviously the gross margin contributed 19:36 19 minutes, 36 seconds with the blend of mix and volume effect that is coming in and we did have some expenses related to employee costs and 19:44 19 minutes, 44 seconds some of the other income and expenses that were there. But all in all strong bottom line performance and this has 19:51 19 minutes, 51 seconds resulted in a strong profit after tax which is clearly visible in the third 19:58 19 minutes, 58 seconds bar chart that you see down there. I would also wish to point out that there 20:04 20 minutes, 4 seconds were some uh special or exceptional expenses that were coming in and we have 20:11 20 minutes, 11 seconds ensured that the impact has been absorbed. impact coming due to regulatory changes on the labor code 20:19 20 minutes, 19 seconds which was uh uh attributing almost 0.8% for the quarter and which we have 20:26 20 minutes, 26 seconds already absorbed that in the results that you see. So with that in spite of their absorptions we have been able to 20:34 20 minutes, 34 seconds post a strong profit after tax as you can see at 12.4% 4% compared to the 12% 20:42 20 minutes, 42 seconds of the preceding uh year 204 of last year. 20:48 20 minutes, 48 seconds I'll now move to the working capital and the capex spend on slide number 13. And 20:56 20 minutes, 56 seconds here again our commitment to continue to invest in our capex. uh the journey 21:04 21 minutes, 4 seconds continues. While it may look that we are spending lower capex than what is uh 21:11 21 minutes, 11 seconds what was spent last year uh yes that's because we have now started to leverage 21:18 21 minutes, 18 seconds and ensure the sweating of the assets that we have already invested in last year. So we have judiciously started to 21:26 21 minutes, 26 seconds adjust our investments in line with the demand and in line with the capacity that we have already installed. However, 21:33 21 minutes, 33 seconds as a percentage to sales, we continue to operate at about 4% of sales in the last quarter. As you can see, 21:41 21 minutes, 41 seconds we did have some uh uh good control on the working capital management and in the quarter we were able to manage and 21:48 21 minutes, 48 seconds get the working capital uh as a percentage to sales down to 17.9% in Q4 uh which is definitely much better than 21:57 21 minutes, 57 seconds the 19% which we were there for the same period last year or even on the preceding quarter which was at close to 22:05 22 minutes, 5 seconds 19% again. So that said uh I did talk about the strongest performance also has 22:13 22 minutes, 13 seconds been on free cash flow generation and as you can see the yearonyear change in the quarter 56% improvement in the quarter 22:22 22 minutes, 22 seconds itself has been a clear demonstration of the effort sustained effort of the entire team to ensure that we bring in 22:30 22 minutes, 30 seconds the cash to run the operations in a smooth and an efficient manner. With that I move to slide number 14 which 22:39 22 minutes, 39 seconds talks about the key performance indicators and I did already talk about the revenue in the quarter coming in and 22:48 22 minutes, 48 seconds uh at an annualized level closing the year with 9,395 crores um which is a clear growth of 22:58 22 minutes, 58 seconds 16.3% over the previous year. EITA at 19.6 6 which definitely is better than the 18.5 23:07 23 minutes, 7 seconds that we delivered last year resulting in an EBIT margin of 16.1 again better than the previous year's 15.2 2 profit after tax at 12.7%. 23:18 23 minutes, 18 seconds It is better than 12.1 last year and obviously the free cash flow has been 23:24 23 minutes, 24 seconds strong as well comparatively in this uh 12-month period as you can see. 23:31 23 minutes, 31 seconds I move to slide number 15 which gives you the consolidated picture of automan subsidiary as well. the KRSV innovative 23:39 23 minutes, 39 seconds auto solutions uh private limited uh KRSV or KS as we 23:45 23 minutes, 45 seconds call it also has been able to generate a revenue of 81.5 crores in the quarter uh 23:52 23 minutes, 52 seconds although we still have some way to go in the bottom line performance uh all I can say is that uh the 23:59 23 minutes, 59 seconds performance of KS or KRSC is exactly in line with our plan and at a consolidated level For the Q4, 24:08 24 minutes, 8 seconds the revenue stands at 2724 crores with an EIDA of 18.4% 24:14 24 minutes, 14 seconds consolidated resulting in an EBIT before exceptional items at 15%. 24:23 24 minutes, 23 seconds And with that I now move to another important subject which is the dividend payout on slide number 16. 24:33 24 minutes, 33 seconds Yesterday we concluded the board meeting and the board of directors have approved and recommended and approved uh 35 24:43 24 minutes, 43 seconds rupees uh a dividend per share payout which is well within our targeted dividend payout ratio which we try and 24:50 24 minutes, 50 seconds keep it between 30 to 50% of the net income and uh I'm happy to say that this has been uh finally approved per equity 24:59 24 minutes, 59 seconds share of 35 rupees and uh This is something now that will result in the uh execution of it going forward as well. 25:10 25 minutes, 10 seconds With that I also want to move your draw your attention to another milestone that we crossed on slide number 17. Uh I must 25:19 25 minutes, 19 seconds say that we are extremely proud that uh uh we have been now val evaluated by S&P 25:27 25 minutes, 27 seconds Dow Jones sustainability index score and we came out with flying colors and Shatler India Limited has been uh ranked 25:36 25 minutes, 36 seconds first in India and incidentally Shatler India has been ranked seventh globally 25:42 25 minutes, 42 seconds as well. Now this to us is a very important step clearly demonstrating a 25:48 25 minutes, 48 seconds focus on our sustainability focus and uh the ESG targets that we have set for 25:56 25 minutes, 56 seconds ourselves and uh post the evaluation the overall CSA scores stood at 76 out of 26:04 26 minutes, 4 seconds 100 which was a clear 40 point increase from the earlier evaluation that we did 26:11 26 minutes, 11 seconds and uh clearly uh this is very motivating for us 26:19 26 minutes, 19 seconds looking at all the three areas of environment social as well as governance. We are 26:25 26 minutes, 25 seconds happy to see that we have continued to establish strong credentials and build the confidence in the stakeholder 26:34 26 minutes, 34 seconds community and we will continue to work on whatever little gaps do exist. We have clearly identified action plans to 26:41 26 minutes, 41 seconds that effect and we will continue to work towards that. 26:46 26 minutes, 46 seconds I move to slide number 18 to summarize and uh we continue with the clear doubledigit growth momentum which we 26:54 26 minutes, 54 seconds have uh delivered every quarter and we have sustained that on a much stronger footing in the Q4 as a result of which 27:02 27 minutes, 2 seconds the volume growth or earnings quality also has improved uh with uh managing our cap capital efficiency very well and 27:12 27 minutes, 12 seconds clear focus on our localization which we continue to march ahead and we have managed in the quarter to take up the localization percentage as well. 27:23 27 minutes, 23 seconds Capex as I already mentioned that we continue to keep the focus and watch the market developments and accordingly keep 27:32 27 minutes, 32 seconds adjusting of sales when it comes to capex as well as leverage the already installed capacities that we have put in 27:39 27 minutes, 39 seconds our plants. I'm happy to say that uh the last quarter the capacity utilization in our plants have been pretty robust and 27:47 27 minutes, 47 seconds we had all the plants running well above 85% capacity utilizations. Yeah. And on this note positive traction in the 27:55 27 minutes, 55 seconds marketplace sound footing the fundamentals being strong u our focus clearly on growth pipeline generation 28:04 28 minutes, 4 seconds and managing the cost elements within our operations. We enter 2026 and we 28:12 28 minutes, 12 seconds look forward to a sustained growth and continue to deliver the strong results that we have much to the expectations of all our stakeholders. 28:23 28 minutes, 23 seconds Thank you very much. I hand over the call now to govern. 28:31 28 minutes, 31 seconds We can now begin the question and answer session please. Thank you very much. 28:39 28 minutes, 39 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone. 28:49 28 minutes, 49 seconds If you wish to remove yourself from the question queue, you may press star and two. 28:55 28 minutes, 55 seconds Participants, you are requested to use handsets while asking a question. 29:00 29 minutes Ladies and gentlemen, we will wait for a moment while the question assembles. 29:10 29 minutes, 10 seconds We have the first question from the line of MKkesh Sarab from Evenders Spark. Please go ahead. 29:17 29 minutes, 17 seconds Yes, sir. Good morning and uh thank you for the opportunity. Um I'll just get uh the bookkeeping question out of the way first on the other expenses. Uh this 29:25 29 minutes, 25 seconds quarter we've seen that rise to about 400 crores. Um is there any any lumpy uh item that you'd want to call out within that? 29:36 29 minutes, 36 seconds Yeah. Um, just give me a minute. Yeah, sure. 29:47 29 minutes, 47 seconds So, uh, it's uh for the quarter uh that means quarter visa is quarter. 29:52 29 minutes, 52 seconds Um, yeah. 29:55 29 minutes, 55 seconds Uh, quarter visa is quarter. We have other expenses in total increasing by 72 crores. 30:03 30 minutes, 3 seconds Right. 30:05 30 minutes, 5 seconds Um and within this 72 crores we have uh certain services and 30:12 30 minutes, 12 seconds true up of costs um for which the bill for previous quarters were received in Q4. 30:21 30 minutes, 21 seconds Okay. Okay. Okay. So there's there's no oneoff as such. It's just timing of certain costs that are that are bunching up this quarter. 30:29 30 minutes, 29 seconds Absolutely. 30:31 30 minutes, 31 seconds Got it. And uh uh now on the business itself um uh we've kind of seen that uh there's a large plant of the competator 30:39 30 minutes, 39 seconds on SRD, CRBs for the industrial segment now uh beginning operations. Uh so I mean have you started seeing any 30:47 30 minutes, 47 seconds increase in competitive intensity say for segments like iron and steel, cement etc on the SRV, CRV bearings um given 30:54 30 minutes, 54 seconds local localization has increased um within the industry. Uh so any anything that you could highlight there? 31:05 31 minutes, 5 seconds Yeah uh MKkesh so rightfully our strategy is very clear. We keep increasing our localization content. I 31:12 31 minutes, 12 seconds think uh last quarter we were uh we reached a percentage of 78 correct uh localization yes 31:19 31 minutes, 19 seconds was at 78%. So clearly uh we will continue on this journey to continue to localize and predominantly of focus is 31:28 31 minutes, 28 seconds on the spherical roller bearings where we see lot more potential to continue localization. 31:35 31 minutes, 35 seconds Uh so the other part of your question is there uh you know increased activity in terms of competition. Uh well 31:44 31 minutes, 44 seconds competition always exists in the market and we acknowledge the presence of the competition. However, our focus remains 31:50 31 minutes, 50 seconds on having our own growth strategy. We continue to do that. 31:56 31 minutes, 56 seconds Got it. Got it. And uh uh secondly, um your automotive technologies uh growth is quite strong. Um um and and I think 32:05 32 minutes, 5 seconds in the past you have kind of mentioned that you have decent supplies uh for strong hybrids. uh so have we started seeing any benefits because I think 32:13 32 minutes, 13 seconds we've seen one one launch um one mass market launch on the hybrid side from a large OEM and and we also noticed that a 32:21 32 minutes, 21 seconds lot of the other OEMs are talking about uh a lot more hybrids um say in the next say coming year or so uh so one is have 32:29 32 minutes, 29 seconds you already started seeing some benefit and secondly are you seeing um significant increase uh in activity levels uh with respect to hybrid power 32:37 32 minutes, 37 seconds trains Let me treat that there are two parts to the question. One, yes uh we already 32:45 32 minutes, 45 seconds have a businessman on the hybrids which we have started the series production as well as supplies from our Indian plant. 32:54 32 minutes, 54 seconds Uh certainly there are a few more projects in the hybrid space with some of our esteemed customers that we are 33:00 33 minutes working with. Correct. And they have to go through the homologation and the validation process which is work in progress. I'm sure we will sustain that as well. 33:10 33 minutes, 10 seconds uh regarding is there an increased u uh you know interest from our customers I 33:18 33 minutes, 18 seconds guess uh we will have a wait and watch because yes hybrids too has become very attractive for our OEM customers so 33:26 33 minutes, 26 seconds while the battery electric vehicles also have seen an upswing we're also seeing attraction on the hybrid technology I 33:33 33 minutes, 33 seconds think we will we believe that both these will coexist forward as Right. And and the CPV the content for us is higher in in hybrids visa vi. 33:46 33 minutes, 46 seconds Yeah. Obviously because uh uh the hybrid technology what we deliver is at a module and a subsystem level. 33:54 33 minutes, 54 seconds So the value of which is definitely much higher. So which obviously raises the content per vehicle. That's number one. 34:00 34 minutes Number two, the hybrid product or solution that we offer is an add-on to the IC engine technology. So, it kind of 34:09 34 minutes, 9 seconds obviously increases our content very good. Great. Great. Uh, thank you for this. Uh, I'll get back in with you. 34:17 34 minutes, 17 seconds Yeah, thank you. We have the next question from the line of Abishek Goo from DSP Mutual Fund. Please go ahead. 34:28 34 minutes, 28 seconds Yeah. Hasha, thanks for the opportunity. 34:30 34 minutes, 30 seconds Uh sir in terms of vites if you can just help us understand where are we in terms of the integration are the benefits of that already occurring in terms of the new that you have spoken about. 34:40 34 minutes, 40 seconds Uh c can you come closer to the mic? 34:43 34 minutes, 43 seconds Yeah your your position was not so audible please if you better now is it better yeah that's better. Yeah. So my question 34:50 34 minutes, 50 seconds was around uh with ESCO where are we in that journey in terms of the integration of the operations? Uh are we already 34:58 34 minutes, 58 seconds seeing some benefits of coming through in terms of new wins or the margin profile? Just your thoughts on the VISCO integrations. Thanks. 35:06 35 minutes, 6 seconds Yeah, as we already have concluded the merger of the VISCO uh in front of the customer there is only one uh brand that is represented and that is chef. Yeah. 35:18 35 minutes, 18 seconds And uh regarding your question as to whether we have new businesses, of course we do have new businessmen. We have a lot of businesses in the uh BMS 35:28 35 minutes, 28 seconds or the battery management system as we call it particularly in the um battery electric vehicle space with couple of 35:36 35 minutes, 36 seconds our OEMs. Uh I think our uh designs have been uh approved and uh that's something 35:43 35 minutes, 43 seconds we foresee. So surely there's a lot of offering since it's in the electronic and uh hardware space coupled with the 35:51 35 minutes, 51 seconds software that we give. I think uh we we are seeing very good response and we believe that we can uh definitely 35:59 35 minutes, 59 seconds leverage the offering going forward. We have started to consolidate and grow our offerings with many other OEMs as well. 36:07 36 minutes, 7 seconds So surely the Tesco portfolio is uh very complementaryary to our uh you know mechanical product offerings that we 36:15 36 minutes, 15 seconds have been giving all these years and uh we now are on a stronger footing to to to to uh give a much higher value ad to our 36:24 36 minutes, 24 seconds own customers and we see that already represented in the new businessman like the uh BMS that I talked to you about. 36:34 36 minutes, 34 seconds Okay sir that's helpful. Uh sir just in terms of the exports we have seen very strong growth coming in there as well. 36:42 36 minutes, 42 seconds So is it base catching up? Is it again you know uh uh or from a particular region are you seeing good demand from 36:50 36 minutes, 50 seconds wind or any particular segment which is driving if you can help us with that sir. 36:56 36 minutes, 56 seconds I mean uh so far as our exports is concerned the numbers that we report does not have wind in it. Correct. 37:04 37 minutes, 4 seconds um our uh sales to the wind customers is in our domestic sales who onwards 37:12 37 minutes, 12 seconds um uh export their products. Uh if we talk only about our own exports, we have 37:19 37 minutes, 19 seconds uh seen the growth coming from all the regions uh mainly from uh Europe and Asia Pacific. 37:29 37 minutes, 29 seconds Yeah, there are two parts that Abishik was asking. one is our own exports to our sister concerns across the globe. uh 37:37 37 minutes, 37 seconds wind since you touched upon our own wind business has grown uh quite significant at an annualized level uh we have 37:44 37 minutes, 44 seconds already grown at 17 to 18% over the last year comparatively even in the quarter while the quarter was a little over 37:52 37 minutes, 52 seconds compared uh you know Q4 over uh the same period last year was just about 4% 37:59 37 minutes, 59 seconds growth but Q4 over Q3 was still a 15% double digit growth that we have registered So a strong performance in 38:07 38 minutes, 7 seconds the quarter from uh our wind business and as Advi was already explaining we don't bracket or categorize the wind 38:16 38 minutes, 16 seconds sector business under exports our customers would be exporting those equipments but that we don't treat as export for us it's a domestic sale. 38:28 38 minutes, 28 seconds Got that sir. So one last thing is you called out your utilizations are uh north of 80%. How should and you are you 38:37 38 minutes, 37 seconds know continuing to grow at a much higher pace uh and you have also you know 38:44 38 minutes, 44 seconds largely in the CY25 you have moderated your capeex so how should we look at your capeex from a 2 to three year 38:51 38 minutes, 51 seconds perspective given that your parent has also uh you know rolled out a 5year strategy for you all in this slide sir how should we look at it can will growth 39:00 39 minutes get compromised at any point in time because of uh capacity constraint because your pace of growth is far higher than the underelling industry. So that was the last question. Thanks. 39:09 39 minutes, 9 seconds Um uh so I will explain um your question in two parts. Yes. Uh our capacity utilization is over 85%. 39:21 39 minutes, 21 seconds However, the plants continuously work on improvement of productivity and OEE uh through some small measures. 39:30 39 minutes, 30 seconds uh so they can still absorb uh much better uh capacity utilization. The 39:37 39 minutes, 37 seconds second part is yes we had moderated our capex um in the year 2025 39:46 39 minutes, 46 seconds um deliberately because we wanted to focus on utilization and capital efficiency. However, talking about 2026, 39:55 39 minutes, 55 seconds we will be stepping up again uh to the average of previous three years levels 40:02 40 minutes, 2 seconds over 500 crores. Um to begin with in 2026 um the numbers which were announced by 40:09 40 minutes, 9 seconds Mr. Rosenfeld our group CEO are for the period of 2026 to 2030 and uh beginning 40:17 40 minutes, 17 seconds 26 you will see uh the the uh capex uh scaling up 40:24 40 minutes, 24 seconds also if I may add Abhishek u if you look at our performance we have uh strived to always deliver a double-digit growth 40:32 40 minutes, 32 seconds rate and clearly on a midterm frame as we pointed out uh we want to sustain maintain a double digit growth rate. Uh 40:41 40 minutes, 41 seconds and if we had to do that, obviously it goes without saying commenuate with the growth rates. We'll have to continue our 40:50 40 minutes, 50 seconds capacity investments as well. We will continue to do that. What we want to do is also look at the market dynamics uh 40:58 40 minutes, 58 seconds and bring in the appropriate products into India for localization. Uh not do some things in a hurry and then we realize that uh the market has changed. 41:08 41 minutes, 8 seconds So it's important that we align our capacity investments in line with the future product demands that are very 41:17 41 minutes, 17 seconds spec specific to India needs. So hence uh we would moderate at times. However, we might even accelerate at times. You will see this happening. 41:28 41 minutes, 28 seconds Great sir. Thank you so much for answering my questions. Wish you all the best. I'll come back in. Thank you. Thank you. 41:35 41 minutes, 35 seconds Thank you. We have the next question from the line of Mahesh Bindri from LIC mutual fund. Please go ahead. 41:44 41 minutes, 44 seconds Uh hi sir, thank you so much for the opportunity. I have one question sir. Uh uh India and European Union is expected 41:51 41 minutes, 51 seconds to sign a trade agreement uh shortly uh detailed one. So uh will there be any benefit uh come on our way? 42:02 42 minutes, 2 seconds Um yeah uh so surely there will be benefits coming our way specifically when we talk about import of raw 42:10 42 minutes, 10 seconds materials and components the child part there we expect however um the further 42:18 42 minutes, 18 seconds details of FT are not announced currently uh we are paying duty in the range of 7.5% to 15% on import of raw 42:26 42 minutes, 26 seconds material um but the new rates have not been announced as yet. Um talking about uh import of 42:35 42 minutes, 35 seconds finished goods, yes as a group we will be benefited but even there uh the rates have not been announced. Uh on exports 42:44 42 minutes, 44 seconds uh to Europe uh the import duty is already in the range of 0% to 2%. Uh 42:50 42 minutes, 50 seconds there we do not see any major benefit or change. Also I think uh it's pertinent mahesh to also factor that you know some 42:59 42 minutes, 59 seconds of the component level imports that we do is because we do not have suppliers locally. So while we have strived to 43:09 43 minutes, 9 seconds localize the development of these components as well. Now with the FDA getting signed obviously it is important 43:17 43 minutes, 17 seconds for us to revisit those strategies as well because if it is now competitive to continue to import the components uh 43:26 43 minutes, 26 seconds should we go for localization that is something we will definitely take cognizance of. 43:33 43 minutes, 33 seconds Sure. Thank you so much sir. 43:38 43 minutes, 38 seconds Thank you. We have the next question from the line of Bal Subramanyan from Aryant Capital. Please go ahead. Um, good morning sir. Good morning madam. 43:47 43 minutes, 47 seconds Uh, thank you so much for the opportunity. Congratulations for a good set of numbers. My first question uh mentioned wind business uh growth rate 43:56 43 minutes, 56 seconds 17 to 18%. But if you look at last quarter some slucky slucky sluggishness because of timing differences in project 44:05 44 minutes, 5 seconds based sectors like wind and trailbased I'm trying to understand in the Q4 uh improvement it's a simply their 44:12 44 minutes, 12 seconds realization of those delayed projects and we could uh give some update on the railway side it's only because of the 44:20 44 minutes, 20 seconds wind or we have seen improvement on the railway side also. 44:25 44 minutes, 25 seconds So Mr. Mr. Bmanium um you you have asked questions. So if we look at all the 44:32 44 minutes, 32 seconds sectors that we operate in and do business in uh you know some of the sectors are also have a business cycle 44:40 44 minutes, 40 seconds they are dependent time dependent as well. Uh so in the fourth quarter of last year for us the railway and the 44:49 44 minutes, 49 seconds wind actually posted lower numbers u but it was definitely not in the negative range. it was better. But then compared 44:58 44 minutes, 58 seconds to the other sectors such as power transmission or uh uh the raw material sectors or industrial automation or even 45:06 45 minutes, 6 seconds the aftermarket business what we see is that while all these sectors registered a very robust growth uh there were a 45:15 45 minutes, 15 seconds couple of sectors which showed a little uh weaker growth and I would say this is only due to the either it's a timing 45:23 45 minutes, 23 seconds issue or some of them tender based businesses. So tender is not forthcoming. So this is what I would 45:32 45 minutes, 32 seconds talk about the raw material I mean the railways as one of the sector and the wind energy. 45:37 45 minutes, 37 seconds Yeah I mean having said that as hersa said that fully year growth was very impressive very impressive 45:44 45 minutes, 44 seconds if we look at quarteronquarter change there are of course changeing system. 45:52 45 minutes, 52 seconds Uh got it madam. 45:54 45 minutes, 54 seconds My next question on that KRSV side uh they have seen uh uh the losses has been widened uh nearly 18.3% to 14.7% in this 46:04 46 minutes, 4 seconds quarter. What are the specific milestones for uh CY26 uh to get a truck uh for 2027 break even and uh our 46:14 46 minutes, 14 seconds current strategy is basically dark store expansion is majorly prioritizing topline growth at the cost of higher 46:23 46 minutes, 23 seconds expenses. Uh when will the focus uh will shift into profitability? 46:32 46 minutes, 32 seconds So in 2026 you will see um that uh so we have done quite a good infrastructure 46:39 46 minutes, 39 seconds setup of dark stores and hubs now and uh this particular growth will now moderate in 2026 and more focus will be on the 46:49 46 minutes, 49 seconds channel and product mix um from now onwards because we have now sufficient dark and hubs in place. So more focus 46:58 46 minutes, 58 seconds will be on channel mix. So we have three channels there wholesalers, retailers and workshops. Uh so we will be 47:05 47 minutes, 5 seconds balancing our channel mix there as well as we will be looking at the product mix uh based on different geographies. So 47:14 47 minutes, 14 seconds moving forward you will see um that also the financial parameters will start uh improving. 47:22 47 minutes, 22 seconds Also if I may add uh uh all the last two years we've been uh investing in uh establishing the infrastructure base 47:31 47 minutes, 31 seconds which we have done and uh now the focus is on we have a very clear plan when to break even. Now uh what is important is 47:40 47 minutes, 40 seconds to stay focused on the services mix that we have the product mix that we have as 47:47 47 minutes, 47 seconds well as increase the efficiency of the processes that we have put in place. So the focus is on how do we increase the 47:56 47 minutes, 56 seconds business and sales to happen in each of the locations that we have started to operate in and we have started to keep 48:03 48 minutes, 3 seconds the focus high on deliverables from each of the places where we have started to invest in. So uh the last quarter 48:11 48 minutes, 11 seconds performance clearly indicates that we are well on track to deliver the numbers. In fact we did see some better improvement in profitability as well 48:20 48 minutes, 20 seconds going forward. I'm sure we will be able to register or sustain the uh same momentum and deliver in line with a plan that we have set for goals. 48:33 48 minutes, 33 seconds Thank you so much for the detailed explanations. Uh all the best. 48:40 48 minutes, 40 seconds Thank you. We have the next question from the line of Ragunan NL from Nuama Research. Please go ahead. 48:48 48 minutes, 48 seconds Uh congratulations sir once again for the stellar number. Uh firstly sir on the shagiri plant can you indicate how 48:56 48 minutes, 56 seconds the capacity ramp up uh is expected to pan out in future if possible? Can you 49:03 49 minutes, 3 seconds indicate the investment in C by 25 and 26 and how you see the capacity utilization in 26? 49:13 49 minutes, 13 seconds Um so uh capacity utilization in all our plants uh is over 85% currently. Um and 49:23 49 minutes, 23 seconds uh uh this year's capex was um in the range of 375 to 400 crores. Um we will 49:31 49 minutes, 31 seconds be again scaling this up in 2026 in line with what we did from 2022 to 2024. 49:41 49 minutes, 41 seconds Um so we will continue to invest in capacities uh for the products which are relevant for the market and new 49:49 49 minutes, 49 seconds technologies that the market is expecting. 49:55 49 minutes, 55 seconds Uh noted ma'am. Uh on relocation of the clutch line from UK to Osour plant has 50:02 50 minutes, 2 seconds this reflected in revenue in Q4 can you indicate the revenue potential for this clutch line in CY26? 50:13 50 minutes, 13 seconds So the relocation is uh done. However uh it takes time to uh lay out the complete 50:20 50 minutes, 20 seconds lines and all and we will see the realization work in progress. 50:24 50 minutes, 24 seconds Yeah. So the full realization we will see in um in this year. Uh however still uh we will not uh be disclosing the 50:33 50 minutes, 33 seconds numbers as the order books are being relocated based on the stocks availability at different locations. 50:43 50 minutes, 43 seconds Noted ma'am. Thank you for that. On the eexl uh can you indicate how the progress is happening? Uh how are you 50:51 50 minutes, 51 seconds expecting the ramp up to take place for next year? Uh given that you already have a very large order book there. 51:00 51 minutes So let me start on the eaxel with uh the numbers that we had projected for 2025. 51:06 51 minutes, 6 seconds I'm happy to say that uh we have exceeded those numbers uh which is very encouraging for us because we had 51:15 51 minutes, 15 seconds started to invest in the next phase of localization of the production itself which is going according to the plan 51:23 51 minutes, 23 seconds that we have already laid out. That said uh and looking at the all customer vehicles winning in the marketplace uh 51:32 51 minutes, 32 seconds we are now seeing more traction for new platforms as well which we have started to engage with other customers. So uh 51:41 51 minutes, 41 seconds rightfully as and when we have the new business that come up you will get to hear in the future earnings call as well from us. 51:51 51 minutes, 51 seconds Thank you sir. uh on expose uh uh can you indicate how do you see the uh 51:58 51 minutes, 58 seconds demand conditions in key geographies and recently there was this uh news on the rod depth scheme where the incentive has 52:07 52 minutes, 7 seconds been reduced by half. Uh so so would you be able to quantify how much was the rodep export incentives for 25? 52:19 52 minutes, 19 seconds So uh we see um that the order book for 2026 is in line with uh last year uh we 52:27 52 minutes, 27 seconds that means 2025 uh in 2025 uh we already saw the demand coming back but moving 52:35 52 minutes, 35 seconds forward we don't see that the same momentum of 30 35% will continue now it will moderate u based on the economic 52:42 52 minutes, 42 seconds growth projections uh specifically of Europe and uh Asia Pacific we do not see that it will be more than uh 5 to 10%. 52:52 52 minutes, 52 seconds So that is going to be the export scenario in 2026. 52:58 52 minutes, 58 seconds Thank you ma'am. And uh uh would you have it handy the rod export incentive for CY25? 53:06 53 minutes, 6 seconds Uh no I will uh let investor relations be talking. 53:12 53 minutes, 12 seconds Noted noted. Thank you so much. I'll come back uh in the cube. 53:19 53 minutes, 19 seconds Thank you. We have the next question from the line of Harsh Patel from Equir Securities. Please go ahead. 53:27 53 minutes, 27 seconds Thank you very much for the opportunity. 53:30 53 minutes, 30 seconds Uh sir, my first question is on the BIS segment. U we have posted a very healthy growth on both YI as well as POQ basis after a few relatively muted quarter. 53:43 53 minutes, 43 seconds What changed in this particular quarter? 53:46 53 minutes, 46 seconds uh you have highlighted the timing of projects in railways and wind as uh one of the reasons. Could you also highlight 53:54 53 minutes, 54 seconds uh other factors and do you believe that the current revenue run rate will further accelerate from here in this segment? 54:04 54 minutes, 4 seconds So Harsh is your question uh towards the other sector performance in Q4. Q4 I know. 54:11 54 minutes, 11 seconds Yes. 54:12 54 minutes, 12 seconds Yeah. If you if one were to look at a Q4 Q Q4 performance uh compared to Q4 last year, you would 54:21 54 minutes, 21 seconds see uh a double- digit growth in all the other sectors on the industrial space. 54:26 54 minutes, 26 seconds Uh which is a clear indicator that uh obviously the uh market demand had a 54:33 54 minutes, 33 seconds positive traction which we were able to better leverage. So as I already mentioned some of the weaker performance 54:41 54 minutes, 41 seconds was from the wind and rail but however all the other sectors registered a very strong performance in the quarter right. 54:54 54 minutes, 54 seconds Uh secondly on the u automotive technologies uh uh we have posted a growth of almost uh 42% 55:03 55 minutes, 3 seconds uh by wire which is significantly ahead of the automotive production volumes growth in the country. Uh obviously you 55:11 55 minutes, 11 seconds have mentioned uh some of the key business rules uh that uh we have registered for the past several quarter and that would have definitely 55:20 55 minutes, 20 seconds contributed but uh would you uh uh say that the majority of the growth in this 55:27 55 minutes, 27 seconds particular quarter would have come from the ramp up of the EXL project. would that project had the highest share of 55:36 55 minutes, 36 seconds this growth that we have posted and we will see I mean obviously the growth rate could moderate from uh this this 55:43 55 minutes, 43 seconds very high level but could we see uh could we continue to see the hiking kind of growth in the automotive technology 55:51 55 minutes, 51 seconds segment ahead so let me clarify that while what you said about the e-mobility business 55:58 55 minutes, 58 seconds growth being very strong for us yes it's a fact uh as our customer models are living in the market and uh so we are 56:06 56 minutes, 6 seconds riding on their success. Uh and it goes without saying that we will continue to increase a competitiveness here by way 56:14 56 minutes, 14 seconds of the localization phase 2 that is currently ongoing in the production lines for our EXAs. 56:21 56 minutes, 21 seconds However, I must also point out that even in the internal combustion application, the IC engine applications, we have 56:30 56 minutes, 30 seconds registered pretty strong growth uh whether it is u in the clutch applications or in the damper systems. 56:39 56 minutes, 39 seconds So, engine and transmission applications also we have registered pretty strong wins as I already pointed out. Uh we 56:46 56 minutes, 46 seconds continuously strive to secure uh new business wins and we had very strong booktobill ratio going forward and we 56:55 56 minutes, 55 seconds remain focused on ensuring that we continue to create the pipeline and accordingly also make the appropriate investments in production capacities 57:04 57 minutes, 4 seconds even for the IC engines as we believe that in the midterm uh we still see uh growth happening in the IC engine applications as such. 57:16 57 minutes, 16 seconds So it goes without saying that uh even if it were to grow at a 4 to 6% uh 57:23 57 minutes, 23 seconds GST2.0 reforms notwithstanding uh it is a clear indicator that uh we must continue to invest if we want to 57:31 57 minutes, 31 seconds sustain the growth and also capitalize the market opportunity that we see. So 57:38 57 minutes, 38 seconds there have been uh areas like wild train systems as well. We have started to focus the numbers are small but we confident going forward the belt and 57:47 57 minutes, 47 seconds chain drive systems. So all the application and the products that go in and around the IC engines we continue to 57:56 57 minutes, 56 seconds keep our focus and uh what you see in the Q4 is exactly that the focus has 58:03 58 minutes, 3 seconds helped us to grow at a very strong double-digit growth rate in Q4 even in the IC engine application also. 58:12 58 minutes, 12 seconds Understood sir. Uh thank you very much for answering my questions and all the well. 58:20 58 minutes, 20 seconds Thank you. We have the next question from the line of Sagar Parik from Renance Asset Manager. Please go ahead. 58:28 58 minutes, 28 seconds Yeah, good morning sir. I think you have answered my question but essentially I just wanted to understand this uh FDA 58:34 58 minutes, 34 seconds with EU. Um uh just I'm reiterating what you said. So you said that uh on the export side there is no impact because 58:42 58 minutes, 42 seconds the because the uh rates are almost 0 to 2%. Right? Correct. That's right. 58:49 58 minutes, 49 seconds And on the import side uh we are still waiting for the uh the rates to uh be seen like 7 we pay right now 7.5% duty. 58:57 58 minutes, 57 seconds If that goes down then we can see more imports uh from uh EU right understanding. Absolutely. 59:06 59 minutes, 6 seconds Okay. Perfect. and anything on the US FDA uh uh where we can see some uh momentum or nothing there. 59:15 59 minutes, 15 seconds No, no, there is nothing else. 59:17 59 minutes, 17 seconds Uh also you know the uh USFDA clarity is still to come correct the commodity or an item level is still not been 59:25 59 minutes, 25 seconds released. So yeah but I I think our exports to us is also not very big. So I don't think that should be 59:33 59 minutes, 33 seconds but can it become meaningful if if us if there is some uh mean um material changes in the rates. 59:41 59 minutes, 41 seconds uh well again I guess uh the similar pattern would emerge where the import duties would have to come down because the bone of contention is what is 59:50 59 minutes, 50 seconds imported into India right uh what goes out of India obviously if the export duties were kept at zero or rather 59:59 59 minutes, 59 seconds import into USA were kept at zero uh we don't see that any differentiation there as such so we believe that uh yes our 1:00:09 1 hour, 9 seconds export business would strive purely on our own competitiveness within the Indian market space when looked at 1:00:17 1 hour, 17 seconds globally. So I guess that's the only differentiating factor that we have. 1:00:23 1 hour, 23 seconds All right. Noted. Thanks a lot. That's it. Yeah. 1:00:29 1 hour, 29 seconds Thank you very much ladies and gentlemen. As there are no further questions from the participants that concludes the question and answer 1:00:37 1 hour, 37 seconds session. I now hand the conference over to Miss Gori Khanikar for closing comments. Thank you and over to you ma'am. 1:00:45 1 hour, 45 seconds Thank you everyone for joining us today. 1:00:48 1 hour, 48 seconds If you have any further questions, please do reach out to me at gaudi.hanikarshack.com. 1:00:53 1 hour, 53 seconds With this we conclude the call and wishing you a good rest of the day. Thank you. Thank you. Thank you all. 1:01:01 1 hour, 1 minute, 1 second Thank you members of the management. On behalf of Staffer India, that concludes this conference. Thank you all for 1:01:08 1 hour, 1 minute, 8 seconds joining us and you may now disconnect your lines.