Shriram Pistons & Rings Ltd — Q4 FY26

Shriram Pistons & Rings Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=C-mWKQAN4u4 Published: 1 day ago

0:01 1 second Ladies and gentlemen, good day and welcome to the SPR Auto Technologies Limited, formerly known as Sri Rams 0:07 7 seconds Distance and Rings Limited Q4 and F and full year FY26 earnings call. As a 0:15 15 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:23 23 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:30 30 seconds zero on a touchstone port. Please note that this conference is being recorded today. From the management we have as 0:38 38 seconds Mr. Krishna Kumar Shindasan, managing director and chief executive officer, Mr. Premraati, executive director and 0:46 46 seconds chief financial officer and Mr. Pankage Gupta, Deputy Executive Director, Head Legal and Company Security Secretary. 0:55 55 seconds Before we begin, let me remind you that your disk that this discussion may contain forward-looking statements that 1:02 1 minute, 2 seconds may involve known as or unknown risk, uncertaintities and other factors. It may view in conjunction with the 1:11 1 minute, 11 seconds business risk that conclude that could cause future results, performance or achievements to different significantly 1:19 1 minute, 19 seconds from what is expressed or implied by such forward-looking statements. I now hand the conference over to Mr. Krishna 1:26 1 minute, 26 seconds Kumar for his opening remarks post which we will open the floor for an interactive question and answer session. 1:33 1 minute, 33 seconds Thank you and over to you sir. 1:50 1 minute, 50 seconds sir. You can go ahead. 2:01 2 minutes, 1 second So, can you hear me? 2:09 2 minutes, 9 seconds So I would request you to unmute your line and please go ahead. 2:17 2 minutes, 17 seconds Hello. 2:42 2 minutes, 42 seconds Thank you. 2:45 2 minutes, 45 seconds Don't 2:57 2 minutes, 57 seconds be afraid. 3:39 3 minutes, 39 seconds I'm still Heat. Heat. 4:28 4 minutes, 28 seconds Ladies and gentlemen, we have the management light reconnected. So you can go ahead. Yeah, thank you Julius. 4:36 4 minutes, 36 seconds First and foremost, our apologies. The line got disconnected at the time when the transfer was taking place. 4:42 4 minutes, 42 seconds So first and foremost, good evening everyone and thank you for joining us on our first ever earnings call after 4:50 4 minutes, 50 seconds sending the company's name to SPR Auto Technologies Limited. We sincerely thank all of you who are present here today and for your continued support throughout the year. 5:01 5 minutes, 1 second FYI26 was truly a landmark year for SPR Auto Technologies Limited. Our 5:07 5 minutes, 7 seconds performance in FY26 was exceptional with record consolidated total income of rupees 4,571 crores growing by 25% 5:18 5 minutes, 18 seconds year-over-year and highest ever at rupes 989 crores growing by around 18% year-over-year. 5:27 5 minutes, 27 seconds This strong financial performance was driven by the company's strategic endeavors and reflect the strength of our business model, the resilience of 5:35 5 minutes, 35 seconds our core operations and the benefits of our continued focus on execution. 5:41 5 minutes, 41 seconds All the strategic initiatives that the company has taken in the past few years are resulting are yielding good results on a sustainable basis. 5:51 5 minutes, 51 seconds This growth was also well supported by a strong recovery in automotive demand especially in the second half of the year reflecting the industry's highest 6:00 6 minutes sales across all segments despite the geopolitical tensions in the tail end of the year. 6:08 6 minutes, 8 seconds This momentum was supported by favorable macroeconomic factors domestically including the introduction of GST 2.0 Z 6:16 6 minutes, 16 seconds income tax reforms and reducing reduced financing costs. 6:22 6 minutes, 22 seconds During the year, we have achieved several key milestones that have significantly strengthened our leadership position in the auto components industry and further aided to the foundation of sustained growth. 6:34 6 minutes, 34 seconds Our transition to SPR Auto Technologies Limited marked a significant milestone in our journey towards becoming a 6:41 6 minutes, 41 seconds multi-product multi-dommain auto component supplier in the industry. This new identity reflects our broader 6:49 6 minutes, 49 seconds strategic vision to build a future ready technology-led business franchise. 6:55 6 minutes, 55 seconds As the mobility ecosystem evolves, we remain focused on strengthening our core businesses while selectively expanding 7:03 7 minutes, 3 seconds into adjacent and adjacent and technologyled opportunities that support sustainable long-term growth. 7:13 7 minutes, 13 seconds A highlight of the year was our strategic expansion into the automotive interiors and lighting segment through the successful acquisition of three Indian entities of the Anteline group. 7:23 7 minutes, 23 seconds This acquisition not only diversifies our portfolio but also enhances our capabilities in high growth technologydriven areas. 7:32 7 minutes, 32 seconds The acquired businesses have already demonstrated strong performance validating the strategic rationale behind this acquisition. 7:40 7 minutes, 40 seconds In addition to this, we acquired Karna Intertech at the beginning of the year to strengthen our tool manufacturing capabilities thereby supporting the growth programs within the group. 7:51 7 minutes, 51 seconds We are actively integrating these businesses with our existing processes to unlock synergies and operational efficiencies that will drive further value creation. 8:02 8 minutes, 2 seconds We remain committed to continuing our investments to grow and diversify into a multi-product domain. Our strategy is to build a broad-based automotive 8:11 8 minutes, 11 seconds technology platform that spans various product lines and powertrain technologies. 8:16 8 minutes, 16 seconds This diversification positions us to capture emerging opportunities across the evolving mobility landscape. 8:24 8 minutes, 24 seconds During the year, we have invested close to rupees 200 crores in capacity expansion across various business lines, 8:32 8 minutes, 32 seconds reinforcing our commitment to scaling our operations and meeting the growing market demands. 8:38 8 minutes, 38 seconds Further to take care of increasing demand from our customers, 8:46 8 minutes, 46 seconds SPR Kakata is in the process of setting up a new manufacturing facility at Nimana 8:54 8 minutes, 54 seconds and SPR TGPL is also increasing its capacities at its NA plant. 9:00 9 minutes We have also started the phase three expansion at our SCL pitur plant. Apart from the capacity expansions being done 9:08 9 minutes, 8 seconds at Gazyabad and Pati the commissioning of the being acquired assets are also progressing well thereby 9:16 9 minutes, 16 seconds improving our capacity on systems. All these capacity expansions will only help us in further strengthening our positions with our customers and also 9:24 9 minutes, 24 seconds meeting their requirements in a seamless manner. 9:29 9 minutes, 29 seconds All our businesses, the legacy business, interior and lighting solutions, the high precision injection molded parts and EV motors and controllers are 9:38 9 minutes, 38 seconds performing well and are steadily improving in terms of profitability. 9:42 9 minutes, 42 seconds The reflects this reflects our focus on operational excellence, cost optimization and value creation across the portfolio. 9:50 9 minutes, 50 seconds Notably, power train agnostic businesses contributed around 35% of our consolid consolidated total income during the 9:57 9 minutes, 57 seconds quarter underscoring our diversified and future ready portfolio. 10:03 10 minutes, 3 seconds Furthermore, on account of our multimarket and multi-product presence, nearly 60% of our business is now direct 10:11 10 minutes, 11 seconds is now not directly impacted by power chain impacts. 10:15 10 minutes, 15 seconds This is an important development for us because it reflects the success of our diversification strategy and the strength of our multi-chnology approach. 10:24 10 minutes, 24 seconds We are confident that this positive trajectory will continue as we leverage our strengths and scale our operations. 10:33 10 minutes, 33 seconds There are significant opportunities for synergies across the group and we are leveraging each other's strength to enhance the efficiency, innovation and market reach. 10:42 10 minutes, 42 seconds This collaborative approach is a key driver of our integrated good strategy and will unlock further value for the company and its stakeholders. 10:51 10 minutes, 51 seconds To further support our growth ambitions, we continue to invest in new technologies and capacity expansion. 10:58 10 minutes, 58 seconds These investments are critical to maintaining our competitive edge and meeting the increasing demand for advanced automotive components and solutions. 11:07 11 minutes, 7 seconds Our commitment to innovation and capacity building remains unwavering. We are also focusing on developing new product lines across all our businesses. 11:17 11 minutes, 17 seconds This proactive approach ensures that we stay ahead of the market trends and customer requirements and thereby enabling us to offer very differentiated and future ready solutions. 11:30 11 minutes, 30 seconds At SPR Auto Technologies, sustainability is integral to our long-term growth strategy and to the manner in which we create enduring value for all our stakeholders. 11:41 11 minutes, 41 seconds The company's ESG journey continues to gain strong external validation. 11:46 11 minutes, 46 seconds We have invested proactively in renewable energy through solar power, reinforcing our commitment to reducing environmental impact. 11:55 11 minutes, 55 seconds During the year, our climate and water disclosures were awarded a CDP rating for 2025 and our greenhouse gas 12:03 12 minutes, 3 seconds emissions were independently assured in line with ISO 17029 underscoring the credibility of our sustainability data. 12:12 12 minutes, 12 seconds We also achieved the bronze medal from Eco reflecting an improvement in our sustainability rank ranking and 12:21 12 minutes, 21 seconds positioning us amongst the top 25 globally 25% globally. We also received 12:28 12 minutes, 28 seconds the ESG rating of two the highest rating in India from Dun and Brad Street which also recognized us among the top ESG performing companies. 12:38 12 minutes, 38 seconds Further strengthening our credentials, we are PU certified, received the excellence in ESG award, gold award 2025 12:44 12 minutes, 44 seconds from ACMA and were recognized by CI for significant achievement in corporate sustainability. 12:51 12 minutes, 51 seconds Taken together, these milestones clearly demonstrate that the company is taking the right consistent and 13:00 13 minutes well-governed steps towards long-term sustainable value creation. 13:05 13 minutes, 5 seconds We also remain committed to rewarding our shareholders. 13:09 13 minutes, 9 seconds In addition to the interim demand dividend of rupees 5 per share already paid in February 2026, the board has 13:16 13 minutes, 16 seconds recommended a final dividend of rupees 5 for share subject to shareholders approval in ensuing AGM. This reflects our confidence in the company's strong 13:25 13 minutes, 25 seconds financial position and our commitment to delivering the shareholder value. 13:31 13 minutes, 31 seconds Looking ahead, we have continu we will continue to pursue a disciplined execution, strategic investments and a 13:38 13 minutes, 38 seconds sharper operational focus. We are confident that SPR Auto Technologies Limited is now well positioned to 13:45 13 minutes, 45 seconds capitalize on the next phase of growth in the automotive ecosystem, delivering value to our stakeholders and driving innovation in the industry. 13:55 13 minutes, 55 seconds Thank you once again for your continued support and I look forward to answering your questions. I now request the moderator to open the floor for questions. Thank you once again. 14:06 14 minutes, 6 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If 14:15 14 minutes, 15 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a questions. Ladies 14:25 14 minutes, 25 seconds and gentlemen will wait for a moment while the question assembles. 14:31 14 minutes, 31 seconds The first question is from the line of Ram Shashan from Aendis Park. Please go ahead. 14:38 14 minutes, 38 seconds Yeah, good evening and thank you for the opportunity. TK uh congrats on great set of numbers. Um two questions. First on 14:46 14 minutes, 46 seconds the subsidy side of things. Uh just on antelin uh would be keen to understand uh the details on the current uh product 14:53 14 minutes, 53 seconds mix between uh headliners and other uh ambient lighting products. Uh and also would you like to call out uh revenue 15:02 15 minutes, 2 seconds and margins for the three major subsidies and TGBL and Takahhata for the quarter? 15:10 15 minutes, 10 seconds Yeah. Hi Ram. No basically uh Anton has you know as we as you are aware we have 15:18 15 minutes, 18 seconds got we acquired them on 8th of Jan and then post that for one quarter we have already seen the results. results have 15:25 15 minutes, 25 seconds been quite encouraging. The demands I I have personally visited to all the customers along with their teams and you 15:34 15 minutes, 34 seconds know we have got excellent um you know contacts with all the customers and we have been working on uh various programs for the customers. 15:45 15 minutes, 45 seconds Basically as you know that uh we are into headliners, we are into plastic trims, we are into door panels, we are 15:52 15 minutes, 52 seconds into uh you know sun visors and also we also supply um you know all the lighting solutions interior lighting as well as 16:00 16 minutes touch panels and u uh you know fairly the you know we don't normally give the 16:08 16 minutes, 8 seconds mix amongst these uh products uh portfolios that we have in Mento but we can say that we are well represented in 16:17 16 minutes, 17 seconds almost all the companies that you can think of in in the country and we are uh you know representing them for all the 16:26 16 minutes, 26 seconds product lines and uh I'm happy to state that the the new programs that they are presently working on for all the new 16:34 16 minutes, 34 seconds models that the customers are looking at looks also very exciting and healthy. 16:43 16 minutes, 43 seconds Sir, thank you sir. Uh any uh update on or probably uh would you want to call out what would be the revenue and margin 16:51 16 minutes, 51 seconds for the three subsidies in the fourth quarter? 16:58 16 minutes, 58 seconds Uncle DJ and Takahhata just broad numbers. 17:12 17 minutes, 12 seconds talking about margins of the individual entities. Yes sir. If if that would be possible. 17:19 17 minutes, 19 seconds Yeah. But normally you know we don't give that break up but I can tell you that it is in the uh high uh you know 17:29 17 minutes, 29 seconds 20s and uh you know and certainly amongst all the companies we have uh you 17:35 17 minutes, 35 seconds know we are having similar kind of benchmarks in terms of the you know targets for our uh overall uh 17:43 17 minutes, 43 seconds profitability targets and I'm happy to state that post our takeover even Anton started showing some good improvements 17:51 17 minutes, 51 seconds and we are we're confident that we will improve the margins and this will all come from various synergies that we are 18:00 18 minutes planning within the group and we expect that with all the actions that 18:07 18 minutes, 7 seconds we are taking you know the group profitability will be maintained at more or less the kind of levels that the standalone company is maintaining. 18:18 18 minutes, 18 seconds Great. Thank you. That's that's very helpful. The the second question was on the standalone operations. Uh uh you 18:26 18 minutes, 26 seconds know could you give us probably a broad mix between the PV, CVS, two wheelers and non-autos and uh you know what would 18:35 18 minutes, 35 seconds you like to call out any special areas of growth in the next couple of years you know in in in the standalone business uh where do you see traction 18:42 18 minutes, 42 seconds from here on? Yeah, you know, legacy business also has done exceedingly well uh last year and uh as you know, you 18:51 18 minutes, 51 seconds know, you know, there was a fantastic growth uh post the GST 2.0 that was 18:58 18 minutes, 58 seconds announced sometime in October and post that we have actually had a very healthy uh domestic requirement uh coming from 19:06 19 minutes, 6 seconds almost all our customers. There's been overall growth has been in the region of around 10 10 11%. And uh you know if you 19:14 19 minutes, 14 seconds really see the growth has come across all segments you know whether it is two wheelers, three wheelers, tractors uh 19:21 19 minutes, 21 seconds you know even standalone u jets and also uh all the commercial vehicles. 19:27 19 minutes, 27 seconds So frankly it has been a very healthy growth story. 19:33 19 minutes, 33 seconds Normally otherwise we do have a mix of one industry going down and the other other one segment going down and the other segment doing well. But luckily 19:41 19 minutes, 41 seconds this time all the segments have actually fired on all guns. So they really helped us to improve our sales from the OE side. 19:51 19 minutes, 51 seconds And with respect to outlook over the next two years sir any any special areas of growth you would want to call out? 19:59 19 minutes, 59 seconds Yeah. So basically we we observe that almost all our customers are working on 20:05 20 minutes, 5 seconds multiple hybrid platforms and u we are uh present with them in multiple u 20:13 20 minutes, 13 seconds programs where we are supporting them for u you know completely redesigning the engine. Uh because for a hybrid the 20:22 20 minutes, 22 seconds engine is redesigned completely and um you know in many cases it is with turbocharger and some without turbocharger applications and all that 20:31 20 minutes, 31 seconds requires a different kind of solution and we are happy to state that uh we are uh we are working on programs which are going to see the light of the day maybe 20:39 20 minutes, 39 seconds in 2029 2030. So as I see it uh we have a very healthy pipeline. 20:48 20 minutes, 48 seconds Got it. Thank you for answering my questions. Thank you. Thanks a lot. 20:54 20 minutes, 54 seconds Thank you. The next question is from the line of Chiral Chen from MK Global. Please go ahead. 21:02 21 minutes, 2 seconds Yeah, thank you for the opportunity and congratulations for the new identity. Uh sir, sir, a couple of questions. One, in 21:10 21 minutes, 10 seconds terms of the outlook, you mentioned that it is quite healthy. uh can we discuss about any potential impacts of commodity 21:17 21 minutes, 17 seconds or FX or maybe energy cost going up and probably even labor shortages that has been happening in the industry. Would that have an impact in terms of our performance over the next few quarters? 21:30 21 minutes, 30 seconds Yeah. Yeah. uh you know we do uh as as is known in the industry now you know with the current geopolitical situations 21:38 21 minutes, 38 seconds existing in the Middle East there is an impact uh on commodities commodity prices have been rising up uh right from 21:46 21 minutes, 46 seconds the last quarter and u we have seen that u you know um that aluminium prices have 21:53 21 minutes, 53 seconds gone as high as 40% higher than the base rate that was availing at that point in time And uh you know most of the other 22:03 22 minutes, 3 seconds areas also you know the commodities have increased you know whether it's elements or whatever is used for allowing on the 22:10 22 minutes, 10 seconds on the Indian side and then on the energy also we more or less the the uh 22:16 22 minutes, 16 seconds you know we see a situation where uh the energy prices have been maintained in the country and we we hope that it will continue to maintain but we did have 22:25 22 minutes, 25 seconds some issues with regards to LPG supplies and other things which has been normalized at this stage now. So we do not see any major issue coming out of the energy side. And as far as labor is 22:34 22 minutes, 34 seconds concerned, we did have uh you know the impacts coming out of the labor issue that started in Noa and in um you know 22:41 22 minutes, 41 seconds uh Ariana and then post that. But however we are happy to state that uh you know our organization was not affected by that and we were able to 22:50 22 minutes, 50 seconds maintain because we have always been uh you know paying much higher than the minimum basis. So from that standpoint we did not have any issue with the 22:58 22 minutes, 58 seconds labor. So overall I would say that commodity prices did have an impact but uh we are back to back covered uh from 23:07 23 minutes, 7 seconds our commodity standpoint with our customers because 100% of the commodity uh uh changes are uh you know backed up 23:16 23 minutes, 16 seconds by the customers and we go back to our customers and gain but of course we do have a gap of uh quarters delay that 23:23 23 minutes, 23 seconds happens because of the uh because of the formula that we normally use you know Because in the pipeline we expect all the stocks and other things to remain 23:32 23 minutes, 32 seconds and you know there is always that small gap that is always there. 23:38 23 minutes, 38 seconds Understood. Understood. So by and large energy and labor is not a major issue and commodity even though it has gone up but it's a pass through for us as as per 23:46 23 minutes, 46 seconds the arrangements that we have with the Oians. That's right. 23:50 23 minutes, 50 seconds Okay. And also in terms of expansion you mentioned most of your businesses are going through expansion be Akata or 23:57 23 minutes, 57 seconds DGTN. Uh can you elaborate in terms of what could be the extent of expansion that we are doing is it like we are adding 30% or 50% of the revenue 24:06 24 minutes, 6 seconds potential that we have as of now. Uh that would be quite helpful. 24:10 24 minutes, 10 seconds Yeah individual businesses have individual needs. You know the for example you know for example you might have heard that in uh two-wheeler the 24:18 24 minutes, 18 seconds anti-skid braking system has become a necessity as a result of which uh you know there is a renewed demand in terms 24:25 24 minutes, 25 seconds of technology from the uh from the you know brick manufacturers who are actually providing this kind of systems 24:33 24 minutes, 33 seconds where a new item has to be injection molded with a very very specific technology. There's new businesses have been won by our um you know plastics 24:42 24 minutes, 42 seconds division and similarly there are many such small uh you know uh components which have to be developed primarily 24:50 24 minutes, 50 seconds because of uh the you know change in technology that is required by our customers. So we have been lucky enough 24:58 24 minutes, 58 seconds to say that uh we have got recognized by customers for the technology footprint that we bring to the table and that we 25:05 25 minutes, 5 seconds are able to support their requirements uh very seamlessly. That's point number one. Now from a you know from uh our 25:12 25 minutes, 12 seconds legacy business I already explained the previous question that we are working on multiple programs for hybrids as well as uh you know there are also a lot of 25:21 25 minutes, 21 seconds requirement with regards to some of the Indian change that is happening because of um you know the customers having 25:29 25 minutes, 29 seconds realized that uh all this powertrain technology will coexist for some time and uh because of that there is a 25:36 25 minutes, 36 seconds renewed focus on uh increased supplies and increased solutions which we are providing to our customers 25:44 25 minutes, 44 seconds and thirdly from a from our interiors business I think there are multiple programs on which we are working including also we're trying to enter 25:52 25 minutes, 52 seconds into we are trying to bring in some new technologies on the table to the customers and a lot of discussions going on on those fronts in our uh uh business 26:02 26 minutes, 2 seconds for u for the plastic injection molding we are now uh almost uh you know decided that we'll have to go in for an 26:10 26 minutes, 10 seconds expansion of Takat and Ningana factory where we'll be putting up another phase three expansion that uh we had we we 26:18 26 minutes, 18 seconds have to plan primarily to meet the increased demands for uh plastic precision injection products. So these 26:25 26 minutes, 25 seconds are the number of activities that are going on and I think it's a very exciting time ahead. 26:32 26 minutes, 32 seconds And just lastly in terms of Antoine would you like to give any number in terms of margin expiration over the next let's say two three years what kind of 26:40 26 minutes, 40 seconds margins that we can aspire for I think I mentioned it in the previous question that I expect all my businesses 26:46 26 minutes, 46 seconds to be performing to close to our if not uh same but if not better but at least close to our margins that we perform in 26:55 26 minutes, 55 seconds the standalone company though it's not possible to reach that kind of a level overnight but um We are working on a 27:02 27 minutes, 2 seconds number of uh synergies and possibilities to see if we are able to come to those levels of uh listening. I hope you are able to hear. 27:12 27 minutes, 12 seconds Yeah. Yeah. So uh this aspiration is obviously individual businesses moving towards standalone profitability. I thought the overall subsidiary performance moving towards stand. 27:22 27 minutes, 22 seconds Yeah. All the subsidiaries are you know other subsidiaries are already at those levels except except motors controllers and uh 27:30 27 minutes, 30 seconds and uh the interiors business. Motors controller is a you know is a huge startup as you already know but even 27:37 27 minutes, 37 seconds even then that organization standalone has been now uh you know positive and is really growing very well. 27:46 27 minutes, 46 seconds Yeah that's it from my side. Thank you and all the best. Thanks a lot. Thanks a lot. 27:54 27 minutes, 54 seconds Thank you. A reminder to all the participants, please restrict yourself to two or three questions per 28:00 28 minutes participant. The next question is from the line of Gokul Maheshwari from Aviraa Capital. Please go ahead. 28:10 28 minutes, 10 seconds Yeah. Uh thank you for the opportunity. 28:12 28 minutes, 12 seconds for the entering business. Uh can you quantify how much were the three entities on a combined basis prior to 28:20 28 minutes, 20 seconds your acquisition paying uh royalty or technical fees to their parent 28:26 28 minutes, 26 seconds and uh and also what are we paying any uh such fees uh to uh get access to the technology of the acquisition? 28:38 28 minutes, 38 seconds Yeah, Google you know uh I I think I answered it answered this question in the previous call but we are more or 28:45 28 minutes, 45 seconds less uh you know as I said uh uh you know our uh the technology side on the technology side we have signed a TLA TCA 28:54 28 minutes, 54 seconds as we call it technology agreement which is uh giving us a seamless access to all the technologies that are there within 29:02 29 minutes, 2 seconds the link for a nominal uh you know tech uh royalty royalty payment that we'll be paying otherwise uh you know most of the 29:11 29 minutes, 11 seconds technologies are available to us from a standpoint of uh the usage with the customers and uh for the you know very 29:20 29 minutes, 20 seconds clearly for an identified area of um India and we also have uh you know from 29:27 29 minutes, 27 seconds a from a ITA standpoint from a requirement of an ITA standpoint we have the company was you know as you already 29:35 29 minutes, 35 seconds know they were in the you know rate 10 or let me put it this say between 9 or 10% beta which we are expecting it to 29:43 29 minutes, 43 seconds start improving once we bring in all the synergy activities that we are bringing in. We already see the improvement in the first quarter and uh it is started 29:52 29 minutes, 52 seconds becoming to very healthy levels. So thank you. 29:56 29 minutes, 56 seconds But is this what we are paying is more than what the antelin as in the previous pay to their parent? 30:05 30 minutes, 5 seconds Those those those details we don't give normally but it is in line with whatever was there in the market requirements in 30:12 30 minutes, 12 seconds terms of normal technology fees that we pay for all the others. We have got five technology partners as you know and uh you know with all of them whatever kind 30:20 30 minutes, 20 seconds of technology fees we pay is more or less in line with that. 30:26 30 minutes, 26 seconds Okay. Secondly just on the capital allocation KT sir if you could just elaborate uh the reason for doing a QIP 30:34 30 minutes, 34 seconds because uh I understand that your net debt is around 750 or cr or so uh but uh 30:41 30 minutes, 41 seconds that is around 0.25 25 net equity uh which is not much uh so what is the 30:48 30 minutes, 48 seconds reason for raising uh 1,000 crores or plans to raise 1,000 crores for a QIP move 30:56 30 minutes, 56 seconds yeah you know the QIP has not been raised for repaying the loan that's not the thing as you write as you know that it is you know we are already operating 31:05 31 minutes, 5 seconds on a low uh debt equity ratio but we are continuing we are still hungry to grow our business and we are still hungry to 31:13 31 minutes, 13 seconds uh look at other options and uh there are some interesting uh options available that we are working on nothing 31:20 31 minutes, 20 seconds has been uh formalized. So for growth both uh you know um uh in both the areas 31:28 31 minutes, 28 seconds of our internal growth as well as all the other growth through acquisition we will continue to be hungry and looking out for options. So that is why we are 31:37 31 minutes, 37 seconds um it is necessary for us to look at options of raising funds. 31:42 31 minutes, 42 seconds That is very clear sir. Thank you so much and all the best. Thanks a lot. 31:49 31 minutes, 49 seconds Thank you. The next question is from the line of Radha Motil from Motilal Koswal. Please go ahead. 31:57 31 minutes, 57 seconds Hi sir, congratulations on strong performance and the sharp turnaround in 19 digits in the first quarter of application. 32:05 32 minutes, 5 seconds not to hear you. Can you speak a little loudly please? Is it better now? Yeah. Yeah, it's better. 32:14 32 minutes, 14 seconds Yes. So my first question is sir uh headliners contribute the largest portion of revenue for an in India where 32:22 32 minutes, 22 seconds the company along with Krishna Maluti is already holding a very uh large 75% market share. So given the high market 32:29 32 minutes, 29 seconds share and limited aftermarket and export opportunity in the segment, what do you see as the key growth driver for the industry outperformance going forward? 32:39 32 minutes, 39 seconds Would the focus be more on scaling up other products categories within Analine or is there a play on minimization or any other growth plans that you can have 32:47 32 minutes, 47 seconds at the Yeah. So rather actually what happens is in in 32:55 32 minutes, 55 seconds headliners classically have been the you know the leading product as as you rightly said but over a period of time 33:03 33 minutes, 3 seconds now we have a good mix of uh headliners plastic trims plastic uh plastic components door trims and also uh interior lightings along with sun visor. 33:13 33 minutes, 13 seconds So we have a fairly good mix amongst all the product lines and I must say that uh the growth is coming across all segments 33:21 33 minutes, 21 seconds you know with with our customers and um luckily for this you know this is this is an animal where uh or rather I should 33:30 33 minutes, 30 seconds say that headliner also is an animal which actually continuously under goes change as the vehicle changes. So any 33:37 33 minutes, 37 seconds new model it has to have a different headliner and uh for any kind of uh different applications with some without sunroof etc also the headliner keeps 33:46 33 minutes, 46 seconds changing as a result the number of variance and number of requirements also goes up with every new model so we are working on a number of new platforms and 33:55 33 minutes, 55 seconds uh you know it's a very busy time as far as Anton is concerned in terms of uh the newer newer growth into multiple models 34:03 34 minutes, 3 seconds across the country so there is going to be continuous growth and uh we we expect that we'll continue to grow on all the product lines that we have within. 34:14 34 minutes, 14 seconds All right, so that's good to hear. And second question is sir, in previous calls you had highlighted that the total addressable market for the automotive 34:22 34 minutes, 22 seconds segment of PDP and Takahhata business is somewhere about 3,500 crores. Uh wherein you you had highlighted that the 34:30 34 minutes, 30 seconds company's aim is to reach uh 20 to 30% market share. So what are the levers for gaining market share in rich competitive 34:38 34 minutes, 38 seconds business and uh secondly by expanding your presence in industry and medical components how will this 3,500 per time 34:46 34 minutes, 46 seconds increase and how much market share are you expecting in this non-automotive segment? 34:52 34 minutes, 52 seconds Yeah. So basically uh what happens is this uh precision auto component industry is also uh undergoing a lot of 35:01 35 minutes, 1 second change and people realize that there's a huge amount of technology that is required for some of the newer areas like I just said in the previous 35:09 35 minutes, 9 seconds question that for the two wheeler just for the antiskit braking system we have specific components which goes into the 35:16 35 minutes, 16 seconds anti-skid braking system which requires a very very different kind of molding technology and very high precision. in technology. So this again is a new 35:25 35 minutes, 25 seconds business that we have we have won and it has really helped us to uh you know uh put in our new investments that we are 35:32 35 minutes, 32 seconds planning to put in Takata. Similarly uh even in TGPL we are working on new areas 35:39 35 minutes, 39 seconds as far as uh precision injection molding is concerned. So the market is continuing to evolve. It's not that the market market is going to remain static 35:47 35 minutes, 47 seconds at 3,500. My own impression is that this market will continue to evolve as newer technologies are demanded by the 35:54 35 minutes, 54 seconds customers and precision engineer precision injection molding components are the ones which get initially affected in terms of uh the 36:02 36 minutes, 2 seconds requirements. So as a result uh I think uh with the various programs that we are working on we already see that we are 36:11 36 minutes, 11 seconds either improving market share or improving the volumes and as a result uh we have to continue to put in investments to grow that. So we'll 36:19 36 minutes, 19 seconds continue in our plastic division that way and uh you know going forward uh coming to the uh you know newer areas of 36:29 36 minutes, 29 seconds business that we have uh you know within the plastics portfolio also we see a lot of possibilities for us to supply within 36:36 36 minutes, 36 seconds the group you know for example there's a lot of plastics requirement uh by which can be supplied from our plastic 36:42 36 minutes, 42 seconds solution other plastic solution so there will be a lot of synergy that we see between the various companies And this will really help us to grow the business 36:51 36 minutes, 51 seconds equally across all the segments within the plastics. 36:57 36 minutes, 57 seconds Thank you. And the last question is so anteline already operates as a tier one system integrator now along with TGPL 37:05 37 minutes, 5 seconds and Tatawata. Is there a scope to further deepen this integration by combining complimentary product capabilities into larger interior 37:13 37 minutes, 13 seconds solutions for OU? Can this become a key differentiator or a USB for the company and hence margin drivers going forward? 37:22 37 minutes, 22 seconds No, within Antoine itself this uh this capability exists today even within Antrolin India and uh you know so we 37:29 37 minutes, 29 seconds call it more as SPR auto interior solutions now and within this SPR auto interior solutions uh we are finding 37:36 37 minutes, 36 seconds that you know there are multiple possibilities for us to combine not only headliners but along with headliners a lot of other uh ancillary components 37:45 37 minutes, 45 seconds that needs to be delivered to the customer. In fact for many of the customers we give a very integrated solution with all the assemblies done. 37:54 37 minutes, 54 seconds So there is a a lot of possibilities for us to do it for many many other customers and we are working on it continuously. 38:03 38 minutes, 3 seconds Okay. Thanks and all the best. Thanks R. Thank you. 38:09 38 minutes, 9 seconds Thank you. The next question is from the line of Fit Pitani from Ingrid AMC. Please go ahead. 38:18 38 minutes, 18 seconds Thank you for the opportunity sir. Uh and congratulation for good set of numbers. Uh so just wanted to ask on QIP 38:25 38 minutes, 25 seconds option. Uh what will promote promoter would be participating in the QIP and what is the uh minimum states which 38:34 38 minutes, 34 seconds promoter would like to continue in the company? 38:39 38 minutes, 39 seconds Well uh Q in QIP promoters cannot participate you know. So very clearly they will not be participating but u you 38:48 38 minutes, 48 seconds know uh that is fine you know we we whatever we want to raise I think should be possible for us to raise uh for them 38:55 38 minutes, 55 seconds and uh they go by the business needs and they are completely supportive of growing the business. 39:03 39 minutes, 3 seconds Uh so is there any minimum stake that promoter would like to have at least in the company or something like that? 39:11 39 minutes, 11 seconds Not that I know of. No, nothing that that has been specified. 39:17 39 minutes, 17 seconds Okay. Thank you. I'll hand back it again. Thanks. Thanks. 39:24 39 minutes, 24 seconds Thank you. The next question is from the line of Punit Gupta from Gir Capital. Please go ahead. 39:32 39 minutes, 32 seconds Good afternoon sir. Uh congratulations on a good number. just wanted to ask uh when do we plan to repay the debt we've 39:40 39 minutes, 40 seconds taken for the admin acquisition and if you could also answer what specific uh segments you're looking to break into for M&M 39:49 39 minutes, 49 seconds uh you could detail and what is the second part of the question I didn't hear it properly 39:56 39 minutes, 56 seconds uh basically like what other segments of autos you plan to break into for if you want to acquire companies which segments of automation Okay. 40:06 40 minutes, 6 seconds Yeah. 40:06 40 minutes, 6 seconds Yes. So, uh well far as the NCDS are concerned uh we have uh uh two time frames. One is for 18 months and uh one 40:14 40 minutes, 14 seconds 500 crores is for 18 months and 500 crores is for 24 months. Uh we we plan to you know repay it on time. So there 40:23 40 minutes, 23 seconds is no such uh ideas of you know no prepaying it and uh whatever we are QPS we are raising it's all for growth 40:32 40 minutes, 32 seconds reasons including in you know our internal growth as well as by growth acquisition. 40:40 40 minutes, 40 seconds Yes sir. I just wanted to understand which segments do you want to apply that like if you want to do more auto component we are looking at various options you 40:49 40 minutes, 49 seconds know it will be difficult for me to give that at this stage but uh we are most of the options that we looking at and you 40:56 40 minutes, 56 seconds have seen in the past five six years that we have done acquisitions over the last six years it has always been with 41:03 41 minutes, 3 seconds technology and in technology areas and certainly with uh you know with a good u 41:10 41 minutes, 10 seconds um headroom to grow. So it's primarily with that clear option that wherever we see a good possibility for us to 41:17 41 minutes, 17 seconds continue our growth uh aspect we we want to ensure that it is earning accuracy for us overall and we'll uh based on that we continue to look at options. 41:31 41 minutes, 31 seconds Understood. That's it. That's all I have. Thank you. Thanks a lot. 41:37 41 minutes, 37 seconds Thank you. The next question is from the line of Rushes Desai from Motilal Oswalc. Please go ahead. 41:46 41 minutes, 46 seconds Yeah. Hi sir. Uh this is Ali from Motion Fund. Uh just following up on the question uh the previous participant asked you regarding this uh growth. You 41:55 41 minutes, 55 seconds mentioned that you know this is expans uh QIP that you are doing is uh for growth. If you could just share some 42:02 42 minutes, 2 seconds more color in terms of you know you mentioned this is for bone expansion as well as inorganic. So you know uh if you can just outline some more details 42:09 42 minutes, 9 seconds regarding how much you plan to use out of this for organic, how much for inorganic uh is there something in you know more advanced stage and you think 42:18 42 minutes, 18 seconds possibility that this could probably you know uh get fruified maybe in the next one year and uh you know any more details you can share related to that. 42:28 42 minutes, 28 seconds Yeah. So normally you know we don't give these details rishies uh you know because obviously because you know that plenty of we also have huge competitors 42:38 42 minutes, 38 seconds you know and everybody is tracking us so at this stage it will be very difficult for me to give uh these kind of details 42:45 42 minutes, 45 seconds but uh rest assured it is u you know um there are very strong plans and uh based 42:53 42 minutes, 53 seconds on that only we have decided to go in for this uh QP otherwise the kind of generation the company has you know we 43:01 43 minutes, 1 second don't we didn't and with the kind of debt equity we are standing it is not required for us to really raise 43:09 43 minutes, 9 seconds so this will be entirely for inorganic right or also this could be used for any organic large expansions no we are we are looking at both because 43:17 43 minutes, 17 seconds overall we have to see as far as the company still has good amount of uh funds available in the in the uh in it 43:25 43 minutes, 25 seconds this thing so the next uh net debt is going to be a much lower figure than the,000 crores that we have taken as 43:32 43 minutes, 32 seconds debt from NCDS. So even after I think that you know for both organic and inorganic we need the future for our 43:40 43 minutes, 40 seconds future growth we need the Q. Second question sir is on margin. You mentioned that you know while your acquisition 43:47 43 minutes, 47 seconds targets that you have you know recently taken are at lower margin close about 10 11% versus your you know standing margin 43:54 43 minutes, 54 seconds at 20% plus and your aim is to get the subsidy is also closer to your standalone margin. So any road map you 44:02 44 minutes, 2 seconds can give how much time it should take you know uh to achieve uh those targets uh is it probably next two three years 44:09 44 minutes, 9 seconds it could be much longer uh and what are the you know levers uh that you have to improve margins in your subsidy business 44:18 44 minutes, 18 seconds yeah is primarily you know it's not that I can give you a clear road map on this because we are working on number of 44:26 44 minutes, 26 seconds permutation combinations but one thing I can tell you that uh with introduction of newer technologies with um you know 44:34 44 minutes, 34 seconds some of the uh synergies that we are looking at with a lot of uh insourcing that we can do for components there are 44:41 44 minutes, 41 seconds a lot of possibilities to improve our margins and we are working on that and I think um the road map is quite clear for us in terms of how we want to achieve it 44:50 44 minutes, 50 seconds and um but it's going to take some time to you know clearly lay it out we it requires a lot of them require customer 44:57 44 minutes, 57 seconds approvals we have to get it validated from customers So all this takes a lot of time. So we can't exactly give you the timeline but the direction is quite clear. 45:07 45 minutes, 7 seconds Okay. Would it be like a 3 year plan sir or it will be longer? 45:12 45 minutes, 12 seconds Well I expect it to be even lower than 3 years. You know my demands are lower than 3 years but then we can't say how it will go but you know we'll have to look at it how it comes. 45:24 45 minutes, 24 seconds Sorry to interrupt. Rashik sir please rejoin the queue for more questions. 45:36 45 minutes, 36 seconds The next question is from the line of Anub Mukaji from Persistent Capital. Please go ahead. 45:43 45 minutes, 43 seconds Uh sir, thanks for the opportunity. So my first question is that uh now that it has been few months that we have 45:50 45 minutes, 50 seconds acquired the antis entities can you provide a qualitative assessment of what 45:56 45 minutes, 56 seconds are the areas in which we can help uh the company and help them uh will it be 46:03 46 minutes, 3 seconds like better sourcing to improve your margin customer? 46:10 46 minutes, 10 seconds Yeah, I'm really finding it difficult to understand your question because voice is having a echo and I'm not able to understand the question well. 46:19 46 minutes, 19 seconds Um, is this better? Hello. 46:22 46 minutes, 22 seconds No, it's still Hello sir, can I request you to use your handset sir? Okay. Uh, is this better now? 46:31 46 minutes, 31 seconds Yeah, it's slightly better now. Yeah. 46:34 46 minutes, 34 seconds Okay. Uh sir I was asking that uh now that it has been uh like few months that we have acquired the enterp 46:46 46 minutes, 46 seconds areas in which as a parent company we can help them uh will it be like better 46:52 46 minutes, 52 seconds sourcing to improve gross margin or uh cost control or new customer addition some qualitative like uh perspective 47:01 47 minutes, 1 second will be available. you know in various various areas in almost all the areas you know for for example you know uh 47:08 47 minutes, 8 seconds SPRL has been is well known in the industry for the last five decades and uh you know it's well recognized well respected amongst all the customers we 47:16 47 minutes, 16 seconds have excellent relationships at uh at with all the OEM and also with uh with uh you know many of the uh aftermarket 47:25 47 minutes, 25 seconds component customers so we can help in various activities with regards to you know growing their uh uh you 47:34 47 minutes, 34 seconds sales and at the same time looking at uh helping them on various synergy activities uh across the group. you know 47:41 47 minutes, 41 seconds with regards to uh almost since we are in the same line of business at as a auto component supplier a lot of things 47:49 47 minutes, 49 seconds that we can do together and we can also leverage a lot of things from their side because we have an excellent team in 47:56 47 minutes, 56 seconds Antel in India and I I I think that uh they only add a lot of value to the overall group and uh we can you know 48:05 48 minutes, 5 seconds leverage that and we'll be able to really uh see that we are able to you know grow together. 48:14 48 minutes, 14 seconds Great. Thanks. And sir, uh uh like from the uh investor presentation uh like we saw that like the exports have been flat for us since FY24. 48:26 48 minutes, 26 seconds So uh can you share from uh like uh growth growth perspective for the exports in the coming financial year or over next two three years? 48:38 48 minutes, 38 seconds Yeah. So it's no no big surprise that exports are really in a tough situation with all the kinds of uh you know with 48:45 48 minutes, 45 seconds the Ukraine war continuing with the kind of situation that exists in the in the European region uh there's hardly any 48:53 48 minutes, 53 seconds growth there's in fact degrowth and in terms of uh you know the kind of situation that has now started because 49:00 49 minutes of the Middle East war so obviously you know all this puts a lot of restrictions with regards to not only the entire 49:07 49 minutes, 7 seconds supply chain But um you know also in the sentimentalities of all our customers with regards to procuring goods from 49:16 49 minutes, 16 seconds various places. So obviously there is a lot of uh issues uh with regards to the 49:23 49 minutes, 23 seconds overall export market. But the good part is that even though the markets uh have become tougher, we have been able to 49:32 49 minutes, 32 seconds more or less retain our uh you know uh export business at the same level as last year even though the markets 49:39 49 minutes, 39 seconds actually went down badly. So that shows the amount of new uh areas that we have been able to enter into the new product 49:46 49 minutes, 46 seconds lines that we have started and uh you know been able to service newer customers whom we have been able to develop. This process is continuing and 49:55 49 minutes, 55 seconds I think uh you know if everything goes well we should be able to further grow our you know sports business. It's not 50:02 50 minutes, 2 seconds that we are going to reduce our exports business you know you can be rest assured that we continue to grow that. 50:10 50 minutes, 10 seconds We get that. Thanks. Thank you. That's awesome. Yeah. Thanks a lot. 50:16 50 minutes, 16 seconds The next question is from the line of Davish Kayal from Boring AMC. Please go ahead. 50:22 50 minutes, 22 seconds Yeah, first you mentioned that uh we are setting up a new facility at Nimana and expanding capacity at existing Mida 50:30 50 minutes, 30 seconds plant. So overall sir across facilities what is the traffic plan for FI27? 50:37 50 minutes, 37 seconds you know last year as I said you know we've invested almost close to 200 crores which will give uh you know some kind of um you know increased uh 50:46 50 minutes, 46 seconds businesses which we have already taken some you know a year in advance and then all that businesses starts getting mature over the next one or two years. 50:56 50 minutes, 56 seconds So all the investments that we have to do you know in the automotive business is always the maturity comes after maybe 51:03 51 minutes, 3 seconds 2 to 3 years. So we will continue to invest in those kind of um you know those kind of uh figures with regards to 51:11 51 minutes, 11 seconds the kind of investments that we have to do over the next two three years. 51:15 51 minutes, 15 seconds Okay. So try to assume we'll do around 200 cr over next two to three years like every year more or less. 51:24 51 minutes, 24 seconds That's it. No more more than more or less. Okay. Okay. 51:33 51 minutes, 33 seconds Thank you. The next question is from the line of Dyan Shin Gupta from Leen PM PMS. Please go ahead. 51:41 51 minutes, 41 seconds Hi sir, I'm hope I'm audible. Uh yeah, we can hear you. 51:46 51 minutes, 46 seconds Yeah. So couple of questions. So right now you mentioned 60% is let's say powertrain agnostic. Is there a target 51:53 51 minutes, 53 seconds number for the next two three years? We want let's say the legacy business to reach a certain number. 52:02 52 minutes, 2 seconds Well uh frankly I now I'm looking at more or less maintaining this kind of a stand because it's a fairly good kind of 52:08 52 minutes, 8 seconds a mix and uh even with this kind of a situation I think uh uh the legacy business is never going to become zero 52:16 52 minutes, 16 seconds and uh neither are we ining at that you know we are looking at in fact most of our customers as I said will the lastman 52:23 52 minutes, 23 seconds standing for the uh ice product uh and u you know we don't see across all 52:30 52 minutes, 30 seconds customers we are seeing continued investments for development of new engines for hybrid requirements and as a 52:37 52 minutes, 37 seconds result we are continuing to in fact put more uh more money into the legacy business also as we are putting into the 52:45 52 minutes, 45 seconds other uh areas. So more or less uh this kind of a trend will continue and I think it's a very good mix that we have 52:52 52 minutes, 52 seconds now you know in terms of even if we just look at uh growing the aftermarket business as well as the exports business 53:00 53 minutes we have a good huge runway that is possible for us to do uh you know it's only that we have to keep on uh adding 53:08 53 minutes, 8 seconds capacities so we have to be very careful in the overall capacity enhancement plan that we have across all the companies so 53:16 53 minutes, 16 seconds that we don't uh overcommit on one and under commit on the other. So we we are balancing it very well and trying to see how we can uh you know continue to have 53:24 53 minutes, 24 seconds the growth story amongst all our u you know uh subsidiaries but that also means that let's say any 53:32 53 minutes, 32 seconds future acquisitions even a business acquisition is something that is at play because otherwise if we acquire non or 53:41 53 minutes, 41 seconds other power agnostic business then this should ideally come down. So is that a well we I at least I don't see any uh 53:48 53 minutes, 48 seconds immediate plans to acquire any u you know uh business on the ice products because uh we have just recently done 53:56 53 minutes, 56 seconds the uh asset deal with uh Sunbeam and uh that has actually improved our capacities as far as u you know crystals 54:04 54 minutes, 4 seconds are concerned and uh engine wells and this we are growing also organically with regards to the further investments and so we continue to invest in those areas. 54:13 54 minutes, 13 seconds Got it. And the second question is regarding EMFI MP. So with all of this Middle East tension and let's say at 54:21 54 minutes, 21 seconds least in QC we said we expect five to seven times ramp up. Are you seeing an accelerated even more accelerated 54:28 54 minutes, 28 seconds approvals from uh clients because of let's say people saying that EV let's 54:35 54 minutes, 35 seconds buy EV instead of ice because of fuel prices or availability. 54:40 54 minutes, 40 seconds And the second associated is uh I was reading that we have some partnership with Lingbo and Greatland but my 54:48 54 minutes, 48 seconds understanding these are more two-wheeler and lower power uh capabilities. 54:54 54 minutes, 54 seconds Uh do we have anything planned for four-wheeler EVs? 54:58 54 minutes, 58 seconds Well, and all are for both high voltage uh systems you know we are operating on 55:05 55 minutes, 5 seconds uh you know low voltage as high voltage uh less than 300 volts as well as more than 800 volts up to 800 volts. So we 55:13 55 minutes, 13 seconds have all the systems that are required on our motor and controller facility. 55:19 55 minutes, 19 seconds Now with the new uh setup that we have in Kimbatur is a state-of-the-art plant, one of the best that you'll see in the country and uh you know with all the 55:26 55 minutes, 26 seconds customers that we are working we clearly see that most of the customers are now approaching us uh not only because of the facilities that we have but also 55:35 55 minutes, 35 seconds because of the technology that we bring on the table including some of the newer technologies like hairpin winding and all that. So we have lot of u you know 55:44 55 minutes, 44 seconds possibilities being worked out with our customers at this stage. Got it. And sir, if I may ask last question in in my because of time. 55:52 55 minutes, 52 seconds Yeah. 55:53 55 minutes, 53 seconds If I look at our exports X of Europe and North America, they have degrone. Uh while I understand Europe, let's say 56:01 56 minutes, 1 second Euro plus one was a is a wave. But any color that you can give on why South America or Middle East because Middle 56:08 56 minutes, 8 seconds East only let's say March is when let's say all the fighting started but the fall in revenue has been much higher. So 56:17 56 minutes, 17 seconds any color you want to give on um the export market what happened basically there? No. Uh, you know, as I said, we 56:26 56 minutes, 26 seconds have the market is primarily uh the end markets are badly affected in uh Europe as well as uh you know, across uh the 56:35 56 minutes, 35 seconds Middle East as well as America. So it is not that uh you know the markets are uh growing there and as a result uh we do 56:44 56 minutes, 44 seconds have uh a small dip in the in those regions but if you really see our overall performance has been even better 56:51 56 minutes, 51 seconds than FY25. So we have more or less been able to retain our uh you know our export volumes and uh yes uh you know we 57:00 57 minutes did not have a phenomenal growth but uh certainly you know with the current market situation that is existing in the 57:07 57 minutes, 7 seconds Middle East as well as in Europe and with all the tensions that is there on the supply chain. This is a fantastic uh 57:14 57 minutes, 14 seconds number in terms of the overall growth in exports but basically no market share loss. No, no, absolutely nothing. 57:24 57 minutes, 24 seconds Got it. Uh, thank you. Thank you, sir. 57:30 57 minutes, 30 seconds Thank you. A reminder to all the participants, please restrict yourself for one question, please. The next 57:38 57 minutes, 38 seconds question is from the line of a Shriram from Palani from IT PMS. Please go ahead. 57:47 57 minutes, 47 seconds Am I able? Yeah, sure. We can hear you. 57:52 57 minutes, 52 seconds Thanks for the opportunity. Uh, so in previous calls you mentioned that the classic position is a niche segment 58:00 58 minutes where our an OEM sticks with one supplier for one item. If that is the case, how are we increasing our revenue 58:08 58 minutes, 8 seconds apart from our existing business? Would a new OEM switch to us or is it increasing orders from existing customers? what will drive drive our revenue in this segment? 58:21 58 minutes, 21 seconds Yeah, I think I answered it in the previous question. It was there Mr. Sam that uh this is coming you know the plastic injection uh precision injection 58:30 58 minutes, 30 seconds molding facilities require they the growth is comes more from new technology additions you know like uh for example 58:38 58 minutes, 38 seconds it has become mandatory now for the anti-skid braking system two wheelers this requires a completely different product that has to be designed and uh 58:46 58 minutes, 46 seconds planned for some of the Indian OEMs or rather most of the Indian OEMs and it requires a huge amount of uh investments 58:53 58 minutes, 53 seconds and capabilities to be built on technology as well as on volumes. So both the sides we are investing and we are seeing that we are able to grow in 59:02 59 minutes, 2 seconds that area and precision injection molding will not you know we don't expect you know we we as I said in the 59:10 59 minutes, 10 seconds previous calls also we would expect that we want to retain our margins and we don't want to become a uh you know low margin high volume business you know 59:18 59 minutes, 18 seconds it's going to remain a segment and is going to that is how it's going to contribute to the overall growth of the overall franchise 59:30 59 minutes, 30 seconds Thank you Mr. 59:34 59 minutes, 34 seconds Thank you. The next question is from the line of Har Sa from Seven Rivers. Please go ahead. 59:43 59 minutes, 43 seconds Uh yeah, good afternoon Sha. Uh so my my question is on the standalone uh the legacy business. uh would it be fair to 59:51 59 minutes, 51 seconds assume that uh uh 11 12% growth would kind of be a uh a matured or or a 59:59 59 minutes, 59 seconds maximum growth that we can do in this business given that OEMs are growing at single digit and also in Q4 have we lost 1:00:06 1 hour, 6 seconds any market share because lot of OEMs have reported more than 18 20% kind of sales volumes if you can highlight on 1:00:13 1 hour, 13 seconds that no so as far As the legacy business is 1:00:19 1 hour, 19 seconds concerned, you know, we uh we always believe that we should outgo the market, you know. So if you really 1:00:28 1 hour, 28 seconds see the overall market has grown around anywhere between 6 to 7%, if I do a combined weighted average uh kind of a 1:00:35 1 hour, 35 seconds growth for all segments of the business, you know, whether it is two wheeler, four-wheeler, tractors, you know, commercial vehicles and everything. So 1:00:43 1 hour, 43 seconds but against that backdrop we have grown at around 11%. And we have outgrown the market we have outgrown the business and 1:00:50 1 hour, 50 seconds we continue we my aim is and my push to the team is always to outgrow the end market. So we'll continue to do that as 1:00:57 1 hour, 57 seconds far as the end markets are concerned as far as the coming to quarter 4 uh you know as I said we have uh I don't think 1:01:06 1 hour, 1 minute, 6 seconds uh you know there has been a lot of volume uh play that has that has happened between the two quarters the quarter of October to December and 1:01:14 1 hour, 1 minute, 14 seconds December to so while the end markets might have uh been better for the OEM but you have to see it from a overall year perspective because our supply 1:01:23 1 hour, 1 minute, 23 seconds chain actually works on global supply chain. So while they have probably done six to 7% overall for the year, we have 1:01:31 1 hour, 1 minute, 31 seconds done 11%. No, that is how you have to see it in the quarter. Uh basically what happens is they did have good volumes in 1:01:38 1 hour, 1 minute, 38 seconds the pipeline uh in the in the you know stocks uh which happened at the post end December and they have continued to sell 1:01:48 1 hour, 1 minute, 48 seconds those volumes and as a result they had increased sales for that quarter. you know for those volumes we have already supplied in the past quarter. 1:01:58 1 hour, 1 minute, 58 seconds Okay. Okay. And sir a lot is happening on the EV side. I mean uh especially geopolitical issues. Just just a followup question. Just a followup 1:02:06 1 hour, 2 minutes, 6 seconds question. Uh yeah. Yeah. So on the EV side because of all the geopolitical issues and then recently the government has notified new cased ones. Uh and and 1:02:16 1 hour, 2 minutes, 16 seconds even then the government has banned registration of new ICE vehicles from April 2020. a lot of activities 1:02:23 1 hour, 2 minutes, 23 seconds happening on on on this EV or low emission side. So how do you see the industry panning out after FI 2028? I 1:02:32 1 hour, 2 minutes, 32 seconds mean with your discussions with the OEMs would EV penetration start increasing dramatically after 2028 or hybrid would 1:02:40 1 hour, 2 minutes, 40 seconds be uh a better middle ground for them to grow. So if you have to hazard a guess I mean say 203031 1:02:49 1 hour, 2 minutes, 49 seconds uh will the uh penetration of EVs would be higher or hybrid vehicles would be higher? 1:02:55 1 hour, 2 minutes, 55 seconds Well uh you know frankly uh many of the people still term hybrid vehicles as EV vehicles you know so please do not uh 1:03:03 1 hour, 3 minutes, 3 seconds when people say it is EV or it is tending towards EV if they also include the hybrid vehicles in that and if I 1:03:11 1 hour, 3 minutes, 11 seconds look at all the programs that we are working on and all the customer uh OEMs working on various programs they continue to work on uh you know many of 1:03:19 1 hour, 3 minutes, 19 seconds the hybrid programs and uh you know there are newer engines being developed by the customers I have always been maintaining this and 1:03:26 1 hour, 3 minutes, 26 seconds I I again call call this off uh still that you know we are not as a as a country we are not fully gear get up to 1:03:35 1 hour, 3 minutes, 35 seconds service the uh you know the overall infrastructure requirements that are there for a full EV kind of a end play 1:03:42 1 hour, 3 minutes, 42 seconds full EV base EV whereas it is going to be a combination of all power planes existing as I said it will we'll have 1:03:50 1 hour, 3 minutes, 50 seconds power planes from coming out of CND coming out of other biouels And also uh you know coming out of ethanol blending 1:03:58 1 hour, 3 minutes, 58 seconds you know there is a possibility that the ethanol blending may rise from the 20% to maybe uh 85%. So there are various 1:04:07 1 hour, 4 minutes, 7 seconds possibilities that are being looked into by the by the government which will also which will in some way of the other also 1:04:13 1 hour, 4 minutes, 13 seconds improve the uh consumption or reduce reduce the consumption of gasoline and diesel in the country. So uh our 1:04:21 1 hour, 4 minutes, 21 seconds personal opinion is that there will be multiple power trains coexisting and we have to be present in all the power trains. Luckily for us we are in the switch spot that we supply to both ends 1:04:30 1 hour, 4 minutes, 30 seconds of the market whether it is the end uh you know the legacy business or whether it is the new EV business and we are well positioned to cater to the demands in both the both the sides. 1:04:41 1 hour, 4 minutes, 41 seconds So from a you know from say 2030 perspective we continue to maintain even after all this current situations if I 1:04:48 1 hour, 4 minutes, 48 seconds include hybrid as part EV and part uh you know uh ICE business we have to look at it from a point of view that the 1:04:57 1 hour, 4 minutes, 57 seconds penetration uh you know overall from a number of engines being made and number of electric motors being supplied and look at the total business I still think 1:05:06 1 hour, 5 minutes, 6 seconds that the EV business will be anywhere between 15 to 17% penetration uh by 2030 but this will be at a 1:05:13 1 hour, 5 minutes, 13 seconds backdrop on a on a CAGR growth of around 6%. If I look at uh 6% growth over the 1:05:20 1 hour, 5 minutes, 20 seconds next four years we are looking at a 24 25% growth in volumes and uh you know and penetration of 15% still I'll be 1:05:28 1 hour, 5 minutes, 28 seconds making more ICE engines or uh ice related vehicles including hybrids by 2030 2031 so I still don't see any major 1:05:37 1 hour, 5 minutes, 37 seconds issue uh in those kind of things. So we continue to work on all the areas and continue. So I think the most important 1:05:44 1 hour, 5 minutes, 44 seconds part would be to see how we can continue to grow uh the volumes and on all fronts. 1:05:54 1 hour, 5 minutes, 54 seconds Thank you. The next question is from the line of Sahil Jane from Ashwa Management Services. Please go ahead. 1:06:02 1 hour, 6 minutes, 2 seconds Yeah. Hi. Thank you for the opportunity. 1:06:04 1 hour, 6 minutes, 4 seconds Just wanted to ask one question like all the questions answered but according to the new labor laws and the increase in producer uh how will there be an 1:06:12 1 hour, 6 minutes, 12 seconds increase in the post going forward? I join the list. 1:06:23 1 hour, 6 minutes, 23 seconds Hello please stay connected sir the management line has got disconnected. Please stay 1:06:30 1 hour, 6 minutes, 30 seconds connected. We'll connect it to 1:06:45 1 hour, 6 minutes, 45 seconds through it. 1:07:09 1 hour, 7 minutes, 9 seconds Finger Sorry. 1:08:00 1 hour, 8 minutes feel happy. 1:08:09 1 hour, 8 minutes, 9 seconds Under 1:08:33 1 hour, 8 minutes, 33 seconds baby 1:08:53 1 hour, 8 minutes, 53 seconds Ladies and gentlemen, we have the management line reconnected. Uh, Mr. S, can you please repeat your question? Sorry about that. Thank you. 1:09:00 1 hour, 9 minutes Yeah, sure. Sure. Yeah, sure. 1:09:02 1 hour, 9 minutes, 2 seconds Yeah. Sorry, Mr. S. you know I I really don't know what happened but uh you know line is getting disconnected there's some issue but anyway uh we sorry about 1:09:10 1 hour, 9 minutes, 10 seconds that and uh please go that's completely fine sir thank you for the opportunity and uh sorry if it's a repeat question but I just want to ask 1:09:18 1 hour, 9 minutes, 18 seconds according to new labor laws and the increase in wages what will be the effect on our employee cost and the productivity across and how will we 1:09:26 1 hour, 9 minutes, 26 seconds mitigate these risks going forward yeah I think I answered this question in the last uh call that we had based on 1:09:35 1 hour, 9 minutes, 35 seconds our last quarter results but I'll repeat again you know we have have we have had an impact uh because of the wage code 1:09:43 1 hour, 9 minutes, 43 seconds and uh as I said uh this is a part of you know this is a this is an impact which has already been considered in the 1:09:50 1 hour, 9 minutes, 50 seconds in the financials it's to a tune of you know standalone is almost to a tune of around 23 odd crores and consolidated is 1:09:58 1 hour, 9 minutes, 58 seconds around 27 odd crores and all of this has been considered in both our cons conservative the results as well as the standard 1:10:05 1 hour, 10 minutes, 5 seconds results and even post that I think we have maintained a good run rate on our margins. 1:10:11 1 hour, 10 minutes, 11 seconds Understood sir. Thank you. All the other questions were answered. Thank you so much. Yeah. Thanks. 1:10:19 1 hour, 10 minutes, 19 seconds Thank you. The next question is from the line of Vira from SPL. Please go ahead. 1:10:26 1 hour, 10 minutes, 26 seconds Yeah. uh thanks for the opportunity and congratulations on a really good set of numbers in a very challenging environment. Uh so just two questions I 1:10:34 1 hour, 10 minutes, 34 seconds have. Uh one is you know if I look at quarter 4 I understand export has been weak for us but if I look at the standalone business any color you can 1:10:43 1 hour, 10 minutes, 43 seconds give in terms of how the each segment has done the domestic OEM the aftermarket the non-auto business you know what kind of a growth trend we have seen in quarter 4 in the year gone by. 1:10:56 1 hour, 10 minutes, 56 seconds Yeah ex see uh the export business has grown only by around 1 1.5%. Primarily as you as you can see you know is 1:11:03 1 hour, 11 minutes, 3 seconds primarily because of the external environment we have not lost any business share and as far as domestic and optimal are concerned both have 1:11:12 1 hour, 11 minutes, 12 seconds register a fairly even kind of a growth of almost close to 10 11%. 1:11:18 1 hour, 11 minutes, 18 seconds Okay got it. So and second question was uh you know you did give some color in terms of the margin trajectory for you 1:11:26 1 hour, 11 minutes, 26 seconds know improvement for the group of entering businesses uh but would it be right to think that a large part of the improvement would be driven by factors 1:11:35 1 hour, 11 minutes, 35 seconds which are internal to us rather than external you know either of new product or size decisions of customers 1:11:42 1 hour, 11 minutes, 42 seconds no I think it is going to be a combination of everything you know it's not as I said you know it's not that uh you know we can we have 1:11:51 1 hour, 11 minutes, 51 seconds to work on number of areas we have to work on customer approvals we have to work on so many things but based on which uh we'll be able to improve the 1:11:59 1 hour, 11 minutes, 59 seconds margin so there are lot of you know actions we planned and hopefully we'll it will all give us positive results 1:12:08 1 hour, 12 minutes, 8 seconds got thank you very much and good luck thanks a lot vir thank you the next question is from the 1:12:16 1 hour, 12 minutes, 16 seconds line of Jenna from C9 family office please go ahead. 1:12:22 1 hour, 12 minutes, 22 seconds Hello uh thank you for giving me the opportunity. 1:12:26 1 hour, 12 minutes, 26 seconds So just wanted uh wanted to understand like uh you said there is new capacity expansion on the Takasa as well as PGPS 1:12:34 1 hour, 12 minutes, 34 seconds side. Uh what sort of are we going to do uh on that side? 1:12:42 1 hour, 12 minutes, 42 seconds I think I already answered this question that we are contain we are putting up a phase three expansion in uh you know in 1:12:49 1 hour, 12 minutes, 49 seconds Takata you know on the land that we bought uh at some point in time you know almost I think two years back we are 1:12:57 1 hour, 12 minutes, 57 seconds building up a new factory there for manufacturing again a very uh related products which is precision plastic 1:13:05 1 hour, 13 minutes, 5 seconds injection moldings and similarly we are also expanding our facilities in TGL where uh we are setting extra facilities uh for uh you know growth regions. 1:13:17 1 hour, 13 minutes, 17 seconds Okay. Uh but like can you quantify the capex amount like if possible? 1:13:24 1 hour, 13 minutes, 24 seconds uh well individual capex as I said overall all put together we are looking at a capex figure which is similar to 1:13:32 1 hour, 13 minutes, 32 seconds the kind of figures that we have already invested last year and going forward also next 2 three years we'll have to continue to do those kind of investments 1:13:42 1 hour, 13 minutes, 42 seconds understood okay and uh on the acquisition side as in uh I wanted to understand so what are the minimum sort of return 1:13:50 1 hour, 13 minutes, 50 seconds levels we would be targeting whatever new acquisitions uh we do and what sort of peak valuations are we comfortable when we uh 1:13:59 1 hour, 13 minutes, 59 seconds go about uh like going for the acquisition of a company. 1:14:05 1 hour, 14 minutes, 5 seconds Uh I think very clearly more or less we have to go as per whatever acquisitions we have done in the past over the last uh five years we have done five acquisitions. 1:14:15 1 hour, 14 minutes, 15 seconds It is more or less you can see the kind of uh you know uh multiples we have given and multiples we have worked on 1:14:22 1 hour, 14 minutes, 22 seconds and uh we uh you know we look at uh but at the same time it is important to note that we don't only go by multiples we or 1:14:31 1 hour, 14 minutes, 31 seconds by the margins they make today we go by the possibility of how we can you know work together to you know uh use the 1:14:39 1 hour, 14 minutes, 39 seconds synergies with the group and be able to improve our businesses overall. So there are multiple areas on which we look at 1:14:46 1 hour, 14 minutes, 46 seconds it's a very very detailed exercise and uh you know it's it's not going to be uh just one odd uh uh one odd valuation or 1:14:54 1 hour, 14 minutes, 54 seconds one odd u you know uh per capita numbers that will drive this kind of a decision. 1:15:01 1 hour, 15 minutes, 1 second We also look at a lot in terms of the technology and uh we also look at how that technology play will be there in 1:15:09 1 hour, 15 minutes, 9 seconds the future and uh we do a very detailed exercise on that. 1:15:16 1 hour, 15 minutes, 16 seconds Yeah, those are my questions. Thank you. Yeah, thanks V. Thank you. 1:15:25 1 hour, 15 minutes, 25 seconds Due to time concern we take this that was the last question for the day and now hand the conference over to Mr. 1:15:32 1 hour, 15 minutes, 32 seconds Krishna Kumar for closing comments. 1:15:37 1 hour, 15 minutes, 37 seconds Yeah. So once again thanks for a great set of questions. I think that's been really invigorating and I I would say 1:15:44 1 hour, 15 minutes, 44 seconds that um you know if you have any more questions please do write to us uh to in to our secretarial cell and we will 1:15:52 1 hour, 15 minutes, 52 seconds ensure that we answer you specifically with regards to you know uh ensuring that you all get satisfied with the 1:15:59 1 hour, 15 minutes, 59 seconds answers that we get and um uh with that I again once again thank you all for joining us today and for asking such 1:16:06 1 hour, 16 minutes, 6 seconds valuable questions. your engagement has been uh you know has really uh enhanced our discussions today. We are confident 1:16:15 1 hour, 16 minutes, 15 seconds that the company is very well positioned for the next phase of growth. 1:16:20 1 hour, 16 minutes, 20 seconds This confidence comes from the strength of our teams, the trust of our customers, the support of our partners and the progress that we have made over 1:16:28 1 hour, 16 minutes, 28 seconds the last years and all the support that we get from all our stakeholders and including many of you who are there in the call today. And we hope all your 1:16:36 1 hour, 16 minutes, 36 seconds queries have been answered. In case of any answer any unanswered questions, please do reach reach reach us to our investor relations partner DNY or to our 1:16:44 1 hour, 16 minutes, 44 seconds secretary itself. We'll be very happy to answer your questions. So thank you once again for joining the call and uh you 1:16:51 1 hour, 16 minutes, 51 seconds know look forward to continuing the growth story that we have for SPR Auto Technologies Limited. Thank you so much. 1:17:01 1 hour, 17 minutes, 1 second Thank you on behalf of SPR Auto Technologies Limited formerly known as Sriram Christens and Rings Limited. That 1:17:10 1 hour, 17 minutes, 10 seconds concludes this conference. Thank you for joining us and you may now disconnect your lines. 1:17:16 1 hour, 17 minutes, 16 seconds Thank