SJS Enterprises Ltd — Q4 FY26

SJS Enterprises Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=nvQIMONxni0 Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the SJS Enterprises Limited Q4 FY26 earnings call hosted by IIFL 0:10 10 seconds Capital Services Limited. As a reminder, all participant lines will be on listenonly mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Joseph George from IIL 0:35 35 seconds Capital Services Limited. Thank you and over to you. 0:39 39 seconds Thank you. This is Joseph from EFL Capital. Good day everyone. On behalf of EFL Capital, I welcome you all to the 4Q 0:47 47 seconds FI26 results conference call of SJS Enterprise Limited. I also welcome the senior management of SJS, Mr. Ka Joseph promoter and managing director Mr. 0:58 58 seconds Sanjay Taper group CEO and executive director Mr. Mahendra Naredi group CFO now I will hand over a call to M Dwanchi 1:07 1 minute, 7 seconds Dua head of industrial relations to take it forward over to you Dwanchi. 1:13 1 minute, 13 seconds Thank you Joseph. Good morning ladies and gentlemen and thank you for being with us over this call today. We appreciate it. 1:21 1 minute, 21 seconds Moving on. This is how we intend to take today's conference call forward. I will pass on the dice to Mr. Ka Joseph, our 1:28 1 minute, 28 seconds MD, who will make his opening remarks and then hand it over to Mr. Central Tapper, our group CEO and executive 1:35 1 minute, 35 seconds director who will take you all through some of the slides of our presentation that has been uploaded on the stock exchange as well as on our website. Mr. 1:43 1 minute, 43 seconds Sanjay will take you all through the industry view, our business performance and then give a strategic outlook for the future or growth of the company at 1:52 1 minute, 52 seconds the end and Mr. Mahendra Naredi our group CFO will update you on our financial highlights post which we will 1:58 1 minute, 58 seconds open the floor for Q&A. The duration of this call is around 60 minutes and we will try to wrap our comments in about 20 minutes. So we leave enough time for 2:07 2 minutes, 7 seconds you guys to ask questions. If the time is not enough, please feel free to reach out to us through email or write to us and I will try to answer all your questions to the best of my ability. 2:18 2 minutes, 18 seconds Thank you once again and I will now hand it over to Mr. Joseph to make his opening comments. Over to you Joseph, sir. 2:25 2 minutes, 25 seconds Yeah, thank you Dan Chief for the introduction. Uh good afternoon everyone. I hope you all had the opportunity to review our investor 2:34 2 minutes, 34 seconds presentation and the financial results published yesterday. 2:38 2 minutes, 38 seconds India's automotive industry witnessed a steady growth during FI26 supported by sustained demand across both two-heer 2:46 2 minutes, 46 seconds and passenger vehicle segments. The industry continued to benefit evolving consumer preferences, premiumization 2:53 2 minutes, 53 seconds trends, and the increasing adoption of enhanced products. While growth remained stable across segments, value growth 3:01 3 minutes, 1 second outpaced volume growth driven by higher content per vehicle and growing focus on aesthetics and technology. In this 3:10 3 minutes, 10 seconds environment, SJ has continued to set new benchmarks delivering strong performance and marking its 26th consecutive year of outperformance. 3:19 3 minutes, 19 seconds Notably, the company achieved a Yi growth of 41 41.1% 3:26 3 minutes, 26 seconds in the automotive segment in Q4 FY26, exceeding the automotive industry's production volume growth of 18.9% 3:35 3 minutes, 35 seconds by more than two times. SJ reported its highest ever quarterly revenue in Q4 FI26 with a consolidated revenue of 3:44 3 minutes, 44 seconds rupees 2,601.2 2 million reflecting robust growth across key segments. This performance 3:52 3 minutes, 52 seconds was driven by continued traction in the two-heer and passenger vehicles along with strong export growth during the 3:59 3 minutes, 59 seconds quarter. The company also delivered its highest ever path of rupees 488.7 4:06 4 minutes, 6 seconds million supported by an improved product mix incre uh increasing export contribution and a continued focus on 4:14 4 minutes, 14 seconds operational efficiency. As you are aware during the year SA has entered into a technology license come supply agreement 4:22 4 minutes, 22 seconds with DOE Vatronics a Hong Kong based company for optical parting and assembly of automotive display systems in India. 4:30 4 minutes, 30 seconds This marks an important step in expanding our capability into advanced display solutions. Such strategic 4:38 4 minutes, 38 seconds partnerships further strengthen our technology base and enhance our ability to meet the evolving aesthetic and functional requirements of global OEMs. 4:49 4 minutes, 49 seconds With a sustained financial strength and [clears throat] a strong cash flow generation, SJ remains committed to delivering long-term shareholder value. 4:58 4 minutes, 58 seconds The company continues to maintain a robust net cash position enabling to fund ongoing capital expenditure strategic initiatives and a potential inorganic opportunities. 5:10 5 minutes, 10 seconds Reflecting this performance, the company has declared a final dividend of 35% of the face value of its shares. 5:18 5 minutes, 18 seconds Furthermore, I would like to announce that our board of directors have appointed Mr. Randi Singh Kali as an 5:26 5 minutes, 26 seconds independent director of the company. In the end, looking ahead, we remain focused on innovation and leveraging our 5:34 5 minutes, 34 seconds in-house design and R&D capabilities to develop differentiated products. With a strong pipeline of next generation 5:41 5 minutes, 41 seconds products, deeper engagement with OEMs, and an expanding export uh export presence, SIS is well positioned to continue to outperforming the industry. 5:53 5 minutes, 53 seconds With that, I would now like to hand over the call to Sanjay who will take you all through the business and industry highlights for the quarter. Thank you and over to you Sanjay. Thank you Joe. 6:04 6 minutes, 4 seconds Good afternoon everybody. We are pleased to conclude FI26 on a strong note marking yet another quarter of 6:11 6 minutes, 11 seconds consistent execution across both operational and financial parameters. 6:16 6 minutes, 16 seconds The strategic priorities undertaken during the year including product premiumization, expansion of key customer relationships and investments 6:24 6 minutes, 24 seconds in technology have translated into sustained growth and margin improvement for us. We remain confident that these 6:32 6 minutes, 32 seconds initiatives will continue to support our performance in the coming periods as well. Let me now highlight some key 6:38 6 minutes, 38 seconds updates. In Q4 of FI26, SGS delivered it delivered its highest ever quarterly 6:45 6 minutes, 45 seconds revenue of 2,601.2 million rupees, registering a growth of 29.7% 6:53 6 minutes, 53 seconds yearonear. This performance was driven by strong growth across both two-wheeler and passenger vehicle segments which 7:01 7 minutes, 1 second combined grew by 41% Y significantly outperforming the underlying automotive 7:06 7 minutes, 6 seconds industry growth of 18.9% Y. The company delivered strong margin performance 7:13 7 minutes, 13 seconds during the quarter with IIDA growing by 53% Y to 87.6 6 million rupees resulting in an IBITA margin of 30.3%. 7:26 7 minutes, 26 seconds This reflects improved operating leverage, a better product mix and a higher export contribution. 7:32 7 minutes, 32 seconds We reported a highest ever quarterly PAT of 488.7 million rupees representing a growth of 7:41 7 minutes, 41 seconds 44.9% year-onear with margins improving to 18.8%. 7:47 7 minutes, 47 seconds The company generated strong cash flows during this quarter resulting in a healthy net cash position. During the 7:55 7 minutes, 55 seconds quarter, the company declared a final dividend payout of 35 35% of face value 8:02 8 minutes, 2 seconds uh of our share. Ikra upgraded SCS's long-term credit rating to aa minus 8:08 8 minutes, 8 seconds positive from aa minus stable reflecting improved financial strength and stability. Aligned with a long-term 8:16 8 minutes, 16 seconds growth strategy, SCS has made steady progress on its capacity expansion initiatives. The chrome plating facility at SCS Deoplast is currently in the 8:25 8 minutes, 25 seconds final stages of commissioning. The optical display facility at Hosour is ready with equipments ordered and capacity expansion at the Bangalore unit 8:34 8 minutes, 34 seconds is progressing well to support new business opportunities. These investments are aimed at strengthening our capabilities and enhancing our 8:42 8 minutes, 42 seconds ability to scale across segments. For the full year FY26, SJS reported 8:48 8 minutes, 48 seconds consolidated revenues of 9,550.7 million rupees representing a growth of 8:55 8 minutes, 55 seconds 25.6% year-onear significantly outperforming the automotive industry two-wheeler plus passenger vehicle 9:03 9 minutes, 3 seconds industry growth of 11.4% yearonear. IDA stood at 2,879.6 9:11 9 minutes, 11 seconds million rupees, up 41.7% year-on-year, while PAT grew by 44.6% 9:19 9 minutes, 19 seconds to rupees 1,718 million. This performance underscores our ability to scale profitably while 9:28 9 minutes, 28 seconds maintaining strong cost recipar 9:39 9 minutes, 39 seconds of approximately 30% across revenue IDA and PAT. 9:46 9 minutes, 46 seconds During this quarter, we continue to strengthen our position with leading OEMs supported by multiple new business wins across key customers including 9:53 9 minutes, 53 seconds Mahindra, Suzuki, Whirlpool, Bajage Auto, Atamburg, John Deere amongst others. Furthermore, during the year 9:59 9 minutes, 59 seconds FI26, we added Heromoto, Autolive USA, FCA USA, Oruroall USA for Nissan, Yazaki, River and many other customers. 10:11 10 minutes, 11 seconds Exports remain a key pillar for our growth strategy. In Q4, exports grew by 10:17 10 minutes, 17 seconds 74.6% yearonear to rupees 255.5 million. For FY26, 10:25 10 minutes, 25 seconds export reached their highest ever level supported by deeper penetration in existing geographies and expansion into new markets. 10:34 10 minutes, 34 seconds We are strengthening our presence across three regions including Asean, Europe, North America while also enhancing our 10:41 10 minutes, 41 seconds on ground sales capabilities in Turkey, Brazil, Argentina, Colombia, South Korea and more recently added Germany. This 10:50 10 minutes, 50 seconds focused approach is expected to further scale up our export contribution and unlock new global opportunities. 10:56 10 minutes, 56 seconds Free cash flow to the firm stood at 1,426.6 6 million rupees with a further 11:04 11 minutes, 4 seconds improvement in a net cash position reflecting a strong balance sheet. This financial strength provides us with the 11:10 11 minutes, 10 seconds flexibility to fund capacity expansion, invest in new technologies and pursue organic and inorganic growth opportunities. 11:19 11 minutes, 19 seconds During the year, SG has continued to receive recognition for grow operational excellence and innovation. We were 11:26 11 minutes, 26 seconds ranked among the top 30 midsize India's best workplaces in manufacturing in 2026 11:32 11 minutes, 32 seconds marking our sixth consecutive year of recognition by great place to work. 11:38 11 minutes, 38 seconds Additionally, the company received multiple accolades at ACMA excellence awards for new product design and development along with recognition for 11:47 11 minutes, 47 seconds quality performance and financial management. 11:51 11 minutes, 51 seconds Mahendra Naredi, a group CFO, has been honored with the CFO of the year award at the CFO impact awards in 2026. A 11:58 11 minutes, 58 seconds testament to the company's strong financial discipline and strategic excellence. 12:04 12 minutes, 4 seconds In line with our commitment to ESG and community development, we continue to drive meaningful impact through focus 12:10 12 minutes, 10 seconds CSR initiatives. During the year, we supported programs such as providing meals to those in need across various 12:17 12 minutes, 17 seconds locations through let's feed the needy trust. We also contributed to community safety uh initiatives by funding 12:26 12 minutes, 26 seconds surveillance infrastructure along Kungpura road and extended support for critical healthcare programs. 12:33 12 minutes, 33 seconds Furthermore, we partnered with VCA Sava Trust to empower approximately 380 women in Punea and Bangalore 12:41 12 minutes, 41 seconds through skill development programs. We also supported the Rotary Club of Metropolis Trust for project hope after 12:50 12 minutes, 50 seconds fire which provides treatment for burn injuries to underprivileged patients across India. In addition, we conducted tree plantation drives in planting close 12:59 12 minutes, 59 seconds to 2,750 trees at Guori Vidanor near Bangalore. These initiatives reflect a 13:07 13 minutes, 7 seconds continued commitment to building stronger communities, empowering the undererved populations and contribution 13:14 13 minutes, 14 seconds to inclusive and sustainable development. Looking ahead, FI26 has been a milestone year for SS marked by 13:22 13 minutes, 22 seconds strong growth, improved margins and strategic progress across many key initiatives. We remain focused on 13:31 13 minutes, 31 seconds premiumization, expanding our global presence and strengthening customer relationships which will continue which 13:38 13 minutes, 38 seconds will help us continue outperforming the industry growth in the coming years as well. I would now like to hand over the call to Mahindra our group CFO to 13:47 13 minutes, 47 seconds provide a detailed overview on our financial performance. Over to you Mahindra. 13:51 13 minutes, 51 seconds Thank you Mr. Tabar. Good afternoon everyone. 13:55 13 minutes, 55 seconds Slide 14 to 17 cover our consolidated financials. 14:00 14 minutes Let me walk you through the key highlights. 14:03 14 minutes, 3 seconds Quarter for FY26 was our strongest quarter on every metric. Revenue came in at rupees 2,601.2 14:11 14 minutes, 11 seconds million. up 29.7% Y driven by a strong traction in our automotive segments and continued export momentum. 14:22 14 minutes, 22 seconds What stands out is the quality of this growth. Abita grew 53% to rupees 87.6 14:29 14 minutes, 29 seconds million with margin expanding 424 bips point to 30.3%. 14:35 14 minutes, 35 seconds A result of three deliberate labors, a richer product mix, higher export contribution and operational 14:43 14 minutes, 43 seconds efficiencies across our manufacturing footprint. 14:47 14 minutes, 47 seconds Back for the quarter was rupees 488.7 million up 44.9% at a margin of 18.8%. 14:56 14 minutes, 56 seconds This was further supported by our continued focus on reducing interest cost through efficient treasury management. Moving to return ratios 15:05 15 minutes, 5 seconds which we track closely as a measure of capital efficiency. ROE for FY26 stood at 19.5% 15:14 15 minutes, 14 seconds and improvement of 226 basis point Y and ROC expanded sharply to 35.5% from 25.3% a jump of close to 1,4 basis point. 15:27 15 minutes, 27 seconds These are best-in-class number for our space and they reflect profitable growth, margin expansion and disciplined capital deployment working in tandem. 15:38 15 minutes, 38 seconds Coming to the balance sheet, we generated free cash flow of rups,426.6 million during FY26 with cash flow from 15:47 15 minutes, 47 seconds operations at 77.7% of AITA. We closed the year with a net cash position of rups 2,437.1 15:56 15 minutes, 56 seconds million against just rupes 77 million of total debt. Our capital allocation framework rests on three priorities 16:06 16 minutes, 6 seconds funding committed organic capex retaining dry powder for value active acquisitions and progressively rewarding 16:13 16 minutes, 13 seconds shareholders. Reflecting this, the board has recommended a final dividend of rupes 3.5 rupees per share or 35% of 16:21 16 minutes, 21 seconds face value. A quick word on the revenue mix. New generation products now contribute around 24% of consolidated 16:29 16 minutes, 29 seconds revenue. Validating or premiumization strategies for FY26. Segment wise, two biller contributed 38.3%, 16:37 16 minutes, 37 seconds passenger vehicle 41.7% and consumer others around 20%. a well balanced diversified mix on export FY26 was a 16:47 16 minutes, 47 seconds record year at rupes 911.4 4 million witnessing 60.5% Y growth. I would 16:54 16 minutes, 54 seconds reiterate that since both SDPL and Walter are predominantly domestic, the consolidated export percentage 17:02 17 minutes, 2 seconds understate the export intensity of standon SJS. 17:06 17 minutes, 6 seconds Finally, the IKRA rating upgrade to double A minus with positive outlook is an important external validation of our 17:14 17 minutes, 14 seconds financial discipline and supports our ability to fund growth at competitive cost. 17:19 17 minutes, 19 seconds Now to summarize, strong topline expended margins, healthy cash generation, best-in-class return at 17:26 17 minutes, 26 seconds 19.5% ROE and 35% ROC, a robust net cash position, and a disciplined capital 17:33 17 minutes, 33 seconds allocation framework. We enter FY27 from a position of financial strength. With that, I would like to hand the call back 17:41 17 minutes, 41 seconds to Mr. Tabar to discuss our future plans and growth outlook. Thank you. 17:46 17 minutes, 46 seconds Thank you, Mayor. Let me now share our outlook for future growth. We remain focused on sustaining a growth momentum supported by strong financial 17:54 17 minutes, 54 seconds performance, disciplined execution and a clearly defined strategic roadmap. Our net cash position and consistent cash 18:02 18 minutes, 2 seconds flow generation provide us with the flexibility to fund ongoing and planned capital expenditure. These investments will further strengthen our 18:10 18 minutes, 10 seconds manufacturing capabilities and enhance our readiness to meet increasing customer demand. A creep priority for us 18:18 18 minutes, 18 seconds continues to be expansion of our export business. We are working towards increasing share of exports in our 18:24 18 minutes, 24 seconds consolidated revenue to 14 to 15% by by 28 driven by deeper penetration in existing markets, entry into new 18:33 18 minutes, 33 seconds geographies and the addition of new customers. Our recent traction with global OEMs and steady growth in export revenues provide confidence in our ability to achieve this objective. 18:44 18 minutes, 44 seconds Innovation remains a key focus area for us. We are expanding our capabilities in advanced aesthetic and functional 18:51 18 minutes, 51 seconds products including optical cover glass and automotive display systems while also developing next generation technologies such as inmold electronics, 19:01 19 minutes, 1 second illuminated logos and integrated solutions. These initiatives are aimed at enhancing content per vehicle, 19:08 19 minutes, 8 seconds improving realizations, and strengthening our position as a comprehensive aesthetics partner for our customers. Premiumization continues to 19:17 19 minutes, 17 seconds be central to our strategy as we move up the value chain through differentiated technologydriven offerings. By leveraging strong customer relationships 19:25 19 minutes, 25 seconds and expansion across both automotive and consumer segments, we aim to further enhance our product value and sustain a 19:32 19 minutes, 32 seconds track record of of outperforming the industry based on our current strong performance execution visibility and the 19:41 19 minutes, 41 seconds current order book being over 85% of the FI27 forecasted revenue. We expect to outperform underlying industry growth by 19:50 19 minutes, 50 seconds 1.5x to 2x in FI27. 19:55 19 minutes, 55 seconds With a diversified customer base, strong order visibility, expanded capacity, and a focus on execution. SCS is well 20:03 20 minutes, 3 seconds positioned to sustain its growth trajectory. We remain committed to delivering consistent performance, strengthening our market position, and 20:12 20 minutes, 12 seconds creating long-term value for all our stakeholders. With that I conclude my remarks. Thank you. And now we are open to questions. 20:20 20 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown 20:29 20 minutes, 29 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 20:38 20 minutes, 38 seconds question and to restrict to two questions at a time. 20:42 20 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 20:48 20 minutes, 48 seconds We'll take a first question from the line of Pesh Sher from Lucky Investments. Please go ahead. Yeah, thank you for the opportunity sir. 20:56 20 minutes, 56 seconds I have two questions. One uh from your slide where you have mentioned uh two wheeler growing at 4x the industry growth rate and Pascar growing at 3x the 21:05 21 minutes, 5 seconds industry growth rate for you. Is it possible to split or give some flavor on what would be the market shareled growth 21:12 21 minutes, 12 seconds in that and what would be the contentled growth in that? Uh that's question number one. 21:22 21 minutes, 22 seconds Yeah. So you want me to answer or you want to complete your second question? 21:25 21 minutes, 25 seconds Which? Okay. So my second question is uh please go ahead. 21:30 21 minutes, 30 seconds Uh now this growth is led by winning businesses. Uh, of course, there are new customers that we've added to our sales. 21:39 21 minutes, 39 seconds Uh, new products have been added. Uh, higher value added products. So, all of the above uh led to this outperformance 21:46 21 minutes, 46 seconds uh in the two-heer space. So, we've outperformed. 21:50 21 minutes, 50 seconds But I understand the qualitative comment from a quantitative side. Is it possible to give some color whether you know 30% 22:00 22 minutes is content and 30% is market share in that you know We don't we don't we we we traditionally don't give you that breakup uh because it's a complex mix. 22:11 22 minutes, 11 seconds We supply to almost all the customers and we supply different products. So in some cases it is increased content. In 22:18 22 minutes, 18 seconds some case it is uh increasing uh uh our sales to new models that have come where our uh share of business is 100% or or 22:27 22 minutes, 27 seconds has increased. So, so it's difficult to split it up because of the sheer variety of the products that we serve and the customers we serve. 22:35 22 minutes, 35 seconds Okay, no problem. My second question is on the capacities and the utilization across the three businesses or entities 22:42 22 minutes, 42 seconds SJS uh Deoplast and Uterac. 22:48 22 minutes, 48 seconds So these three place Exoplast sorry. So at these three places uh FI26 utilizations and capac uh and 22:57 22 minutes, 57 seconds incremental capacity expansions in these three areas to support the growth. Yeah. Take that. Yeah. 23:04 23 minutes, 4 seconds So Pra on the capacity side our SGS the Bangalore facility with the improved revenue what we have in FY 26 we are now 23:12 23 minutes, 12 seconds reach around 75% of our capacity. Uh we have further expanding our capacity here. be in our last call also we have 23:21 23 minutes, 21 seconds added that we are investing 45 cr rupees uh into the SJS Bangalore facility which will give us another uh 20% kind of a 23:29 23 minutes, 29 seconds capacity expansion so that is one uh our subsidiary STPL SGS deoplast we call which is the chrome 23:38 23 minutes, 38 seconds and painting facility they are operating 95% plus kind of a capacity utilization and we are working with couple of 23:46 23 minutes, 46 seconds outsource uh uh uh suppliers uh at the same time we have expanding our capex we are setting a green field 23:55 23 minutes, 55 seconds project for uh 100 cr rupes which is which is uh Mr. Tap it is on final commissioning level. So that will give a 24:04 24 minutes, 4 seconds additional almost double the capacity what we have as of now. Uh now third is werack. Would pack we are operating 24:12 24 minutes, 12 seconds somewhere 75% kind of a capacity. So I hope this uh answer your question. Thank you very much. 24:20 24 minutes, 20 seconds Thank you. 24:22 24 minutes, 22 seconds Next question is from the line of Goyel from Origin Capital. Please go ahead. 24:27 24 minutes, 27 seconds Yeah. Thanks for taking my question. My first question is on if you look at exotex uh there's a Q substantial increase in revenue without the new 24:35 24 minutes, 35 seconds plant coming in and we see a sub similar increase in the four-wheeler uh Q revenues. So is it a new program which is ramped up with the customer? 24:45 24 minutes, 45 seconds No. So we continue winning businesses across all our customers and luckily for us the customers that we serve continue 24:52 24 minutes, 52 seconds to grow very strongly. One marquee customer that we have has shown very good traction. uh you can guess what this customer is uh and our efforts to 25:02 25 minutes, 2 seconds sweat our assets. So we we we have a very keen eye on how to eliminate waste and improve throughput in our plants and 25:10 25 minutes, 10 seconds that has led to this uh very strong growth at SCPL and so and similarly WPI we have seen 25:18 25 minutes, 18 seconds Ywide decline right so despite Tata Motors being one of very key client there they have done well but consumer durables there has been impact so can 25:27 25 minutes, 27 seconds you tell us uh how is that progressing what are you steps are you taking for uh WPI to return to growth We took a strategic decision to 25:36 25 minutes, 36 seconds rationalize the product mix at WPI and that happened to be a consumer durable company. Uh we uh shed some weight in 25:46 25 minutes, 46 seconds terms of uh products that were uh not contributing enough uh margin and we have now one businesses which are at a 25:54 25 minutes, 54 seconds much higher business from the same customer. So it's just rationalizing of the product mix. This new business is in the ramp up phase. So you will see the 26:02 26 minutes, 2 seconds fruits of that. You know we are very focused on profitable growth and uh focusing our uh efforts and our util 26:10 26 minutes, 10 seconds capac capacities to product which yield the larger margins. So it has worked out very well for us and with water pack 26:18 26 minutes, 18 seconds you'll see that impact coming through uh in the next couple of quarters. 26:24 26 minutes, 24 seconds Okay my final question I request you to join back the queue please as we are participants waiting for this. No problem. Thank you. 26:32 26 minutes, 32 seconds Next question is from the line of Pranane RP Chaty from Burman Capital. Please go ahead. Hi. Uh am I audible sir? 26:41 26 minutes, 41 seconds Yes absolutely. 26:42 26 minutes, 42 seconds Good afternoon sir. Uh my first question is on the uh general macro uh both from the uh demand side and the supply side. 26:51 26 minutes, 51 seconds Uh if you can just give a give some color overall. On the demand side, the channel checks uh that we do suggest 26:58 26 minutes, 58 seconds that and I would like your comments that underlying demand uh is still there. Uh some of the fears people were having 27:05 27 minutes, 5 seconds that you know this fuel inflation and whatn not might have an impact on demand but bookings seem to be at a dealer 27:12 27 minutes, 12 seconds level still going strong. So I would love to hear what is happening at your end and also what I'm hearing is the constraint really as of right now is 27:20 27 minutes, 20 seconds supply where because of certain specific products with uh uh supplies ancillary products which are in short supply the 27:28 27 minutes, 28 seconds production may get impacted or is getting impacted. So that could be the constraint. So if you could just give an overall color how should we expect uh 27:36 27 minutes, 36 seconds you know business at your end to progress in the incremental next few months given the volatility. [snorts] 27:42 27 minutes, 42 seconds Okay. uh FY26 was a record year for the automotive industry both for two wheelers and four-wheelers. So we we 27:51 27 minutes, 51 seconds came back for many years. We used to say that 1718 was the best golden period for two wheeler sales. So we've shot past 27:59 27 minutes, 59 seconds that. Four-wheeler sales went up thanks in a large measure to the GST rationalization and improved uh 28:08 28 minutes, 8 seconds rationalization of the free cash available with customers to do discretionary purchases. And as we talk 28:15 28 minutes, 15 seconds of uh April, we just finished April and April also has been a very strong month. 28:20 28 minutes, 20 seconds So the outlook continues to be extremely bullish. uh on a global view we still have challenges of multiple wars going 28:28 28 minutes, 28 seconds on uh we don't know which way they will go but uh overall uh what uh all these 28:36 28 minutes, 36 seconds wars have taught us if we look back is that business continues there are some short-term hiccups that do come but uh I 28:44 28 minutes, 44 seconds think finally sense prevails and business comes back to normal so what we are hearing from customers at this moment is uh all of them are gearing up 28:52 28 minutes, 52 seconds for high growth and uh we are accordingly gearing up and I think we were right in line with our 28:59 28 minutes, 59 seconds capacity expansion plans uh to benefit from this growth. So so our outlook uh is bullish. We are uh excited about the 29:09 29 minutes, 9 seconds future. We've come back from a very strong come out of a strong uh finished last year on a very very strong note expanding both our sales and margins 29:17 29 minutes, 17 seconds quite significantly and we expect this trend to continue. 29:24 29 minutes, 24 seconds Got it sir. Uh thanks for that. Uh so my second question is on margins. Uh so whatever uh inflation related pressures 29:32 29 minutes, 32 seconds you would you would have had my question is not on the quantum my question is rather on uh whenever that comes in some part would have come in this quarter 29:40 29 minutes, 40 seconds some part would come in next quarter but whatever the impact is uh how is the progress on passing those on do you think it's a comfortable pass through or 29:47 29 minutes, 47 seconds there is some push back or how is that working out? So if you study the profile of SCS over so many years, uh we have we 29:56 29 minutes, 56 seconds are leading the pack in terms of what margins we get thanks to our very strong focus on products that are 30:03 30 minutes, 3 seconds differentiated uh on uh great focus on how to reduce cost uh and reduce waste 30:10 30 minutes, 10 seconds in our process and that is what has led to margin expansion. So we continue uh to drive that theme forward. Um now the 30:20 30 minutes, 20 seconds input cost increase for example crude oil increasing a lot of these are uh impacting polymer prices but as uh you 30:28 30 minutes, 28 seconds may be aware at SGS these are aesthetic decorative products they get refreshed uh uh every year and the new prices get 30:37 30 minutes, 37 seconds priced in automatically so that's a advantage that we have from the industry we operate in addition to that there are 30:45 30 minutes, 45 seconds some businesses like chrome plating where uh there are input cost increases and we have a backto-back arrangement with customers that they get passed on. 30:53 30 minutes, 53 seconds So typically it is a lag of a quarter uh before they get priced in. So so we don't have a concern really in terms of 31:01 31 minutes, 1 second uh input cost increasing. We've been we've demonstrated this over the years through the pandemic. So I'm quite confident that we'll navigate this uh situation also pretty well. 31:12 31 minutes, 12 seconds Sir, final question. 31:14 31 minutes, 14 seconds I request you to join by the queue please as we are participants waiting for their turn. Thank you. Next question is from the line of Ganesh Ram from Unifi Capital. Please go ahead. 31:27 31 minutes, 27 seconds Thank you for taking my question and congratulations on the performance. Um I just have uh two questions. The first is on the growth outlook uh with BO 31:36 31 minutes, 36 seconds electronics. Obviously side is agreement. Uh Ganesha sorry to interrupt. Can you use your handset mode please? Your audio is not very clear. 31:43 31 minutes, 43 seconds Yeah, it should be better now. So my question wrote was with regards to BOE Vetron X. Uh if you could give us a 31:50 31 minutes, 50 seconds sense as to what is the opportunity size that you have over here. What sort of timelines you're thinking about and 31:58 31 minutes, 58 seconds what's the capex outlay you're thinking about some granularity around this so we can work with it. And similarly on the 32:06 32 minutes, 6 seconds growth uh if you could give us an idea there's a bunch of new countries that you've mentioned. Is this some is this going to be a buildout of SJS? Are you 32:13 32 minutes, 13 seconds going to deploy your own people there or are you approaching through partners and what are your expectations there? 32:22 32 minutes, 22 seconds Uh okay. Uh on BOE, so BOE is uh a world leader in terms of display technologies. 32:30 32 minutes, 30 seconds They have multiple products and I think we have uh selected and uh partnered with a very very strong global company 32:39 32 minutes, 39 seconds uh operating out of China because the Chinese market is the largest uh four-wheeler market in the world and if 32:46 32 minutes, 46 seconds a company is a leader not just in China but across the world then you can be sure that in terms of quality of their 32:52 32 minutes, 52 seconds offerings and the uh processes that they follow and the supply base they have which supply child components 33:00 33 minutes uh into that full display are uh best-in-class. So, so coming back uh BOE 33:07 33 minutes, 7 seconds is a great company uh the world number one and we have partnered with them. So, that is a very very strong statement to 33:14 33 minutes, 14 seconds make. Now, as far as the progression of project goes, we have a plant uh which we've announced earlier. Uh our plant is 33:22 33 minutes, 22 seconds ready. Uh this is a facility in Hosur that we have. Uh the plant as I said is ready. the equipment is on order and we 33:30 33 minutes, 30 seconds will expect that by Q2 we will have uh the machines coming in and then there'll be a phase of trials. What I've said in 33:39 33 minutes, 39 seconds my earlier calls also is that we expect supplies to start uh uh by early uh FY27 33:49 33 minutes, 49 seconds and uh could be earlier but uh this uh early FI28 sorry my mistake uh end of 27 33:58 33 minutes, 58 seconds early FI28 is when we hope supplies to start. uh people currently our teams are uh interacting with the BOE plant to get 34:06 34 minutes, 6 seconds trained on what these processes are. So it is progressing well. So we will have um uh uh a common agenda to demonstrate 34:15 34 minutes, 15 seconds uh capabilities uh to customers in India of how we can bring this technology into India and supply to them in a in a good 34:25 34 minutes, 25 seconds manner which meets their quality cost expectations. So so it's going well. And just a follow up on this question. 34:34 34 minutes, 34 seconds Sorry. 34:35 34 minutes, 35 seconds Um just to follow up on this is uh if you could give us a sense, have you spoken to any potential customers about this? And essentially in this optical 34:44 34 minutes, 44 seconds glass portion, how what part will be be helping us with? 34:50 34 minutes, 50 seconds No. So the optical the display consists of uh three components. One is the cover glass, the other is the TFT screen and 34:59 34 minutes, 59 seconds then there is a backlight and these are optically bonded. So we are setting up capabilities to do all of these uh at 35:06 35 minutes, 6 seconds the facility and uh this is what our offering is going to be. Uh we have uh strong printing capability in SCS for 35:15 35 minutes, 15 seconds almost four decades now. So so we we know that business very well. We know the aesthetic requirements of uh customers very well because we've been 35:23 35 minutes, 23 seconds uh supplying dials to global companies out of SJS for many many years now. So I think we are the right partner uh to be able to deliver this to our customers. 35:34 35 minutes, 34 seconds Um so that is the aim that we have. Okay. Thank you. Thank you. 35:41 35 minutes, 41 seconds Thank you. 35:43 35 minutes, 43 seconds Next question is from the line of Rakkesh Jen from Access AMC. Please go ahead. 35:49 35 minutes, 49 seconds Yeah. Hi Sanjay Sar and team. Uh another impressive quarter. Congratulations. Uh I I I have one question uh on your 35:57 35 minutes, 57 seconds premiumization strategy. Um sir, how do you think you know this strategy helps in content per vehicle? Uh when we see 36:05 36 minutes, 5 seconds the model mix of all the OEMs, a lot more focus on electric vehicles, larger size vehicles, more premium SUVs. uh how 36:14 36 minutes, 14 seconds does that particular thing shapes up in terms of content per vehicle for uh us because we do see that you know some of the OEMs are showcasing your your 36:23 36 minutes, 23 seconds product related aspects as a marketing tool also in some of their models you know so how are we largely benefiting from that in terms of content per 36:31 36 minutes, 31 seconds vehicle if directionally you can grow and the second question is uh you know you did call out in your PPT that 24% of 36:39 36 minutes, 39 seconds your product revenue is now new generation products uh from a management standpoint of you what kind of target are you keeping for next year uh from new generation products? 36:49 36 minutes, 49 seconds So uh thank you uh Rajesh. Uh yes our focus is on premiumization. We try and 36:57 36 minutes, 57 seconds understand the requirement of the customer. We have uh styling studio which engages very early in the development phase with customers. So we 37:05 37 minutes, 5 seconds have enriched margins by providing different uh features and different finishes on the existing products that 37:13 37 minutes, 13 seconds the customers have. And of course a big strategic move that we've made is that uh electronics uh uh especially the 37:21 37 minutes, 21 seconds display area is going to see a lot of action. So my personal sense is that the content in the vehicle in the future is 37:30 37 minutes, 30 seconds going to be driven by what appeals to a customer sitting inside the vehicle. So there could be IML IMD parts, IM 37:38 37 minutes, 38 seconds applications, they are chrome finishes or painting finishes, chrome finishes in different uh types of chrome. So for a 37:47 37 minutes, 47 seconds very large customer launching a lot of EVs, we've added very premium finishes which are very well accepted. Uh we have 37:55 37 minutes, 55 seconds done illuminated logos. So so we do that for one customer uh and the other customers see it because it's a customer 38:02 38 minutes, 2 seconds demand and they start accepting it. So we've done this for with Tata. We've done this with Mahindra. uh Mari Suzuki 38:09 38 minutes, 9 seconds is wanting solutions in a similar manner because what appeals to the final car buyer is what the Williams manufacturer. 38:18 38 minutes, 18 seconds They listen to the voice of the customer and we uh have consistently ensured that we are not only able to give them ideas, 38:27 38 minutes, 27 seconds we are also able to translate that into new products with a very short turnaround time. So I think we take all those boxes and coming to the the mother 38:36 38 minutes, 36 seconds of all the uh uh in innovations or the new products from our portfolio when you talk of the content from 24% where is 38:45 38 minutes, 45 seconds likely to go. So I'm quite bullish on the display technologies that we will bring to the table. So think like this 38:52 38 minutes, 52 seconds that cars not only will have an infotainment or instrument cluster display they would have displays for the rear view mirror. They would have 39:00 39 minutes displays uh which are rear seat entertainment. They would have uh displays which have specific features 39:08 39 minutes, 8 seconds inside uh the the cabin uh for the uh entertainment of the code driver and uh 39:16 39 minutes, 16 seconds security and a lot of these are going to see you going to see. So over the next 5 years my expectations that this 24% 39:24 39 minutes, 24 seconds could grow up to maybe 30% of our revenues. Of course the idea is that how uh uh does uh how well do the OEMs ramp 39:33 39 minutes, 33 seconds up in terms of translating customer expectations into real product offerings but uh we see a very strong strong 39:40 39 minutes, 40 seconds traction and a lot of people are uh now looking at introducing these at different price points so it could be 39:48 39 minutes, 48 seconds anywhere between 25 to 30% uh over the next 5 years that's what my expectations premium cost 39:56 39 minutes, 56 seconds share of yes yeah thank Thank you. Next question is from the 40:03 40 minutes, 3 seconds line of Nilles Jen from Astute Investment Management. Please go ahead. 40:08 40 minutes, 8 seconds Hi, thank you for the opportunity. Um my first question is on given you have uh been generating good amount of free cash 40:15 40 minutes, 15 seconds flow. We actively looking for any inorganic acquisitions and if um it would be for which geography we are looking at. 40:25 40 minutes, 25 seconds Yeah, absolutely. So inorganic growth is a very strong pillar of uh our strategy moving forward. Uh we've done two 40:32 40 minutes, 32 seconds acquisitions in the last four years and uh as I've said in my earlier calls, we are uh uh generating a lot of cash. So 40:41 40 minutes, 41 seconds we have close to about 243 crores in our books now available for deployment for expansion projects and for new 40:49 40 minutes, 49 seconds acquisitions and we'll generate free cash in this year as well. So we are looking at targets. we already have uh a 40:56 40 minutes, 56 seconds few in mind which we are in uh discussions with. So as and when we conclude I will uh we of course announce 41:03 41 minutes, 3 seconds to the market uh in terms of uh geographies of interest. So as I maintained earlier uh North America is a target. Uh Southeast Asia is a target. 41:15 41 minutes, 15 seconds India as well is a target because uh there are uh this is a fragmented business and it could uh simply be 41:22 41 minutes, 22 seconds consolidation uh where we could bring our own uh efficiencies and efficiencies of scale to play out. So it would depend 41:29 41 minutes, 29 seconds on what uh target uh do we zero in on in terms of what what meets our strategic 41:36 41 minutes, 36 seconds requirement in terms of the cost of acquisition and how can we add value to it. As I mentioned earlier, uh these 41:44 41 minutes, 44 seconds will be bite-size acquisitions. We don't uh we are intrinsically a uh company that does not believe in taking a lot of 41:52 41 minutes, 52 seconds debt on our books. So, we are largely debtree and uh we wanted to continue maintain this. But if we get some 41:59 41 minutes, 59 seconds exciting uh opportunity, we are not averse to taking debt. But typically it would be companies that add strategic uh 42:08 42 minutes, 8 seconds uh uh uh value to us and where we feel that we can contribute to increase margins. So margin growth is a very key 42:15 42 minutes, 15 seconds or central to our overall philosophy as a company and we'll continue to focus on that. 42:22 42 minutes, 22 seconds Okay, thank you for that. Uh my second question is given you've been operating at the you know highest margins uh for 42:31 42 minutes, 31 seconds now uh do you think there's further scope of margin expansion or uh this is or even this margin should be 42:39 42 minutes, 39 seconds sustainable n our focus really is to be honest uh our benchmark is more than 25% margin is 42:47 42 minutes, 47 seconds what we focus on so we we of course don't rest at 25 uh as you've seen with our results So 29.6% margin is a result 42:57 42 minutes, 57 seconds of that focus that we have. But in a long term I think that 27 28% sort of margins with a high growth trajectory is what you should expect from SCS. 43:07 43 minutes, 7 seconds Okay. Thank you and all the best. Thank you. 43:12 43 minutes, 12 seconds Next question is from the line of Pratik Giri from Shubl Research. Please go ahead. 43:21 43 minutes, 21 seconds Hi everyone. Uh greetings uh good set again and robots operating cash flow. Uh Mr. Mr. Mr. Ter if I'm catching it right 43:29 43 minutes, 29 seconds earlier investor presentation you to guide for a 2 to 2.5x group sorry volume. 43:36 43 minutes, 36 seconds Sorry could you repeat that question? I miss can I use your handset mode please? Yes. Uh is it better now? Yes. 43:44 43 minutes, 44 seconds Yeah. Uh so Mr. Tap uh if I'm catching it right. uh earlier our investor presentation used to guide for a 2 to 43:51 43 minutes, 51 seconds 2.5x growth but this quarter uh PPG says 1.5 to 2x growth so in an environment 43:59 43 minutes, 59 seconds where auto is doing really well and we are also coming up with new capacities uh should I look at this as a guidance 44:08 44 minutes, 8 seconds down region or am I overreading it no so you clearly you are overreading it 44:15 44 minutes, 15 seconds so we continue to outperform the market specifically the guidance last year I said because we added hero as a customer 44:23 44 minutes, 23 seconds so I said that we will outgrow the market or outperform the market by 2.5x last year but overall we've been saying 44:31 44 minutes, 31 seconds our content increase will be far higher than the increase in uh uh the volume of 44:38 44 minutes, 38 seconds vehicles that are made so we will continue to outperform that we've done for 26 quarters that we've reported to you so that outperformances uh will 44:47 44 minutes, 47 seconds continue and always we've been guiding 1.5x to 2x because we don't want to give a specific guidance which could uh uh I 44:55 44 minutes, 55 seconds mean this is a direction that I'm giving uh but ultimately our interest is to outperform the market so it depends on 45:02 45 minutes, 2 seconds the uh how the year pans out in terms of the macroeconomic challenges that there are but overall uh it is going to be 45:11 45 minutes, 11 seconds 1.5x to 2x which is consistent with what we've said so 2.5x last year was specific because we had uh won some very 45:20 45 minutes, 20 seconds large export businesses and we' got hero on board as a customer. So that was uh what I mentioned last year. 45:28 45 minutes, 28 seconds Got it. No, this is this is helpful. Mr. 45:30 45 minutes, 30 seconds Kapar, Mr. Tap, my second question is on our export uh target. Now I just wanted to get your opinion uh if we have set a 45:40 45 minutes, 40 seconds target which is you know quite softer because given the kind of market size uh 45:45 45 minutes, 45 seconds globally uh 14 15% FI28 uh exports revenue contribution uh do you think 45:52 45 minutes, 52 seconds this is uh you know a little soft uh target we have been setting for ourselves and can we increase it going ahead just one add-on to this question 46:01 46 minutes, 1 second uh we don't have any global office so far we have offices only in India. So I was just wondering if that can be a route to we can explore you know to to capture that market faster. 46:13 46 minutes, 13 seconds Yeah. So okay let me answer that. Uh Pratik basically what we have uh on our 46:20 46 minutes, 20 seconds there is a very large global set available. Uh as you know uh we are the reason why we are building capacity uh 46:27 46 minutes, 27 seconds across uh plants is primarily to tap into that. So we have very strong inquiries. uh there's a lot of interest 46:34 46 minutes, 34 seconds from customers. We've proven ourselves in terms of being competitive globally and that is a theme that we'll continue 46:41 46 minutes, 41 seconds to drive but we uh choose to do it in a step-by-step manner. There could be an inorganic acquisition that uh suddenly 46:51 46 minutes, 51 seconds uh not only gives us an office in an overseas location could give us a a company there. So we are uh well aware 46:58 46 minutes, 58 seconds of that and uh we are balancing uh what we need to do to make sure that we continue our growth trajectory. So we we 47:06 47 minutes, 6 seconds grew by 25% last year. We hope to uh continue that growth trajectory and to 47:12 47 minutes, 12 seconds grow uh looking at uh export markets is critical because we already are uh today 47:20 47 minutes, 20 seconds supplying to all the customers in India and there'll be a certain rate of growth in the Indian market but the export market for us is underpenetrated. So 47:28 47 minutes, 28 seconds we've proven our credentials in terms of quality, cost and delivery and we are now have built capacity or we have 47:35 47 minutes, 35 seconds invested in capacity and certainly we want to utilize that to grow. Uh for the short-term just setting up an office is 47:43 47 minutes, 43 seconds additional cost. So we have a lot of reps in multiple countries who operate from their home. We choose we we feel that this is a model that works for us 47:51 47 minutes, 51 seconds at the moment. But when we have a very large uh uh uh opportunity set in a specific region, we certainly are open 47:59 47 minutes, 59 seconds to look at uh setting up an office or a warehouse. We already have warehouses in North America. Uh ASEAN for example is 48:07 48 minutes, 7 seconds one area that we could look at uh setting up our own uh office and a warehouse to be able to benefit from proximity to the customer. So on a 48:15 48 minutes, 15 seconds need-based basis, wherever the opportunity exists, we'll take that call. 48:20 48 minutes, 20 seconds So there is an uh upside potential to this target we have set for ourselves Mr. Is that something correct? Export. 48:27 48 minutes, 27 seconds Yeah. So for the I mean we increased our overall exports by 2% last year uh on a consolidated basis. We have a very 48:34 48 minutes, 34 seconds strong pipeline. So so I will continue to share that deadline uh at that guideline that we've given once we reach that of course this is a moving target. 48:43 48 minutes, 43 seconds It's not that this cast in stone. So ideally uh it's a 4 billion market. So uh the opportunity set is so huge that I 48:51 48 minutes, 51 seconds can't even uh uh try to explain to you but uh as a strategy we find that export 48:58 48 minutes, 58 seconds businesses give us more margin and that is one reason why margins are expanding. 49:03 49 minutes, 3 seconds So we will continue to drive that uh as fast as we can by balancing everything. 49:08 49 minutes, 8 seconds So it's not just uh uh the customer the capacity has to be in line because when an export customer gives you business then he expects that you have already 49:16 49 minutes, 16 seconds all the capacities in place. So you can't uh do the reverse that get a business and then say that okay I will set up capacity. So you would have seen 49:24 49 minutes, 24 seconds in the last two years we built our capacity. So this is a synchronized approach to target the export potential 49:31 49 minutes, 31 seconds that there is which we know is more value for us as a company. Wonderful. Thank you. One clarification. 49:39 49 minutes, 39 seconds I request you to join by the queue please. 49:42 49 minutes, 42 seconds We have participants waiting for their turn. Thank you. 49:46 49 minutes, 46 seconds Next question is from the line of Sahil Sangri from Monarch Network Capital. Please go ahead. 49:53 49 minutes, 53 seconds Yeah. Hi, good afternoon. 49:55 49 minutes, 55 seconds Congratulations for very good set of numbers. My first question is on the consumer side. Um our performance has been um not the best. So if you can help 50:04 50 minutes, 4 seconds us understand what's happening over here and how do you see this um performing over the next one year. 50:11 50 minutes, 11 seconds So consumer fundamentally I mean we have everything that we need to grow the consumer business. As I mentioned to an earlier question uh there was a product 50:19 50 minutes, 19 seconds rationalization that we did. We found that we are spending a lot of resources not earning enough money on a very large program. So we chose to uh surrender 50:28 50 minutes, 28 seconds that and alternately get another program that I said is we have one which is uh in the ramp up phase. So over the next 50:36 50 minutes, 36 seconds two quarters you'll see that benefit happening also for the quarter uh there was some amount of uh global uncertainty 50:43 50 minutes, 43 seconds that happened. So a lot of these orders got prepawned uh where uh in uh Q3 we uh 50:51 50 minutes, 51 seconds shipped material uh just to get over those uh tariff uncertainty that they were there. Some customers wanted us to ship early. So that is just a normal 50:59 50 minutes, 59 seconds rationalization that happened in this quarter but in the next one or two quarters you see that growth trajectory coming back. 51:06 51 minutes, 6 seconds Okay. Got it. And uh my second question is um on the on the capeex uh uh the 51:14 51 minutes, 14 seconds absolute number of capex that you intend to spend uh this year and the next and for uh which expansions would it be 51:22 51 minutes, 22 seconds because some of these capacities I mean the the cape spend in FI26 has been lower than what you had guided. So just wanted to understand on that thing. 51:32 51 minutes, 32 seconds So major could you answer that? So sahil on the capex side uh last time or last earning course we have guided that for a 51:40 51 minutes, 40 seconds period of three year starting from May 26 uh we have some special initiative which 51:47 51 minutes, 47 seconds is the SGS Bangalore expansion SDPL chrome rating green field and we are also investing for the color glass and 51:56 51 minutes, 56 seconds the display business. So put together there is investment close to 220 cr rupes. Uh apart from that we have the 52:02 52 minutes, 2 seconds normal capex which is around 15 20 cr rupes per atom. So on a three-ear basis we could say 260 270 cr rupees and out 52:13 52 minutes, 13 seconds of which 80 cr rupes happened in the last year. Uh and the further capex are in in progress at this moment. Uh so 52:20 52 minutes, 20 seconds that will continue for this year and the next year. Thank you. 52:28 52 minutes, 28 seconds Next question is from the line of Jigar Jani from Noama PCG research. Please go ahead. 52:35 52 minutes, 35 seconds Yeah. Hi, thanks for taking the question. 52:37 52 minutes, 37 seconds Uh your voice is muffled. Can you use your handset mode? Yeah. Is this better? Yes, please go ahead. 52:46 52 minutes, 46 seconds Yeah. Um so congratulations sir on a great set of numbers again. Uh just two questions. First uh carrying on from the 52:53 52 minutes, 53 seconds previous participant, the capeex at Bangalore was uh supposed to come online on Q4. Uh so uh can you just let me know 53:02 53 minutes, 2 seconds what is the status? Uh Kosour you have already explained in the call but for uh Bangalore and Deoplas uh when can we 53:09 53 minutes, 9 seconds expect this capacities to come online and and supplies to start? That is my first question. Uh and my second 53:16 53 minutes, 16 seconds question is uh on your slide um in your presentations you have mentioned a particular slide on kit value uh where 53:24 53 minutes, 24 seconds you have uh specified that uh the future kit value could be 5 to 8x uh especially for PVs. So by when can you expect this 53:34 53 minutes, 34 seconds uh development and uh what is the time frame that you're looking at uh for this expansion in kit value uh bas Yeah. 53:44 53 minutes, 44 seconds Yeah. So last question first. So this kit value fundamentally has increased because of our uh focus on the display 53:52 53 minutes, 52 seconds business that we have and I mentioned earlier in the call uh early FY20 54:00 54 minutes uh 28 is when we expect uh uh revenues to 54:07 54 minutes, 7 seconds start coming. So this kit value is the sum total of the individual products that we have to offer in terms of value 54:15 54 minutes, 15 seconds and what is it that it doesn't mean that we supply this to all the customers but in our portfolio we have products which 54:23 54 minutes, 23 seconds total up to what so that's what we said so by early FY28 we should be that 5 to 54:30 54 minutes, 30 seconds 8x uh from what we originally said in our DRSP when we went public so that is the base year from which we compute 54:38 54 minutes, 38 seconds How many times has our uh kit value increased? The second question was on capacity. Uh so uh the new plant at uh 54:48 54 minutes, 48 seconds Puna is complete for the chrome plating facility that we've added where we are doubling capacity there and uh uh so the 54:57 54 minutes, 57 seconds plant is just in the final stages of commissioning. There are some trials etc that need to be done to validate everything. Uh we are already winning 55:04 55 minutes, 4 seconds businesses. uh we are at uh close to our hit rate in terms of the numbers that we want to reach uh FI27 as I said we are 55:13 55 minutes, 13 seconds sweating assets we have uh auxiliary capacity outside at dedicated suppliers who are working for us so this will 55:20 55 minutes, 20 seconds continue seamlessly uh the new plant uh as I said is uh being focused uh primarily to say that what new customers 55:28 55 minutes, 28 seconds can we add and how uh what export business can we target out of that plant. So, so we are well on uh on track 55:36 55 minutes, 36 seconds uh the business development activity is uh ongoing. Uh we are already in discussions with customers to book that capacity. So it is progressing well. 55:44 55 minutes, 44 seconds Coming back to Bangalore uh we uh uh had uh we were there were opportunities both 55:52 55 minutes, 52 seconds for exports and for a major Indian customer that we added. So already the equipment is uh has been ordered uh it 56:01 56 minutes, 1 second is installed and we are shipping parts out of those. So so the capacity is created. There are some additional modifications that we are doing at that 56:08 56 minutes, 8 seconds plant. So this will be uh done uh another uh by the end of this quarter uh we will have this plant uh fully ready. 56:17 56 minutes, 17 seconds I mean it's not a new plant. It is an extension of the existing facility the parent plant that we have at Bangalore. 56:23 56 minutes, 23 seconds and uh by the end of this quarter that should be completely ready but the production equipment is already installed. So so our capacities are already in place. 56:33 56 minutes, 33 seconds So sir but uh according to earlier conference calls I think 145 K was the 45 K was the expansion in Bangalore and 56:43 56 minutes, 43 seconds 100 K for the chrome plating plant. So 145 was supposed to be spent on both these plants but we have spent only 80 56:50 56 minutes, 50 seconds if I'm not wrong the CFO s just said so majority of this will happen in Q1 uh if so uh 56:59 56 minutes, 59 seconds uh it was older and the when when the work is happen it happen into there are some milestone to the contractors right 57:08 57 minutes, 8 seconds so the payment flow as per the contract as per the milestone and there are some milestone also happen which is kind of a six month or one year letter by seeing 57:16 57 minutes, 16 seconds the uh no letter of parameters. So the work is happening uh don't go by the numbers of in uh actual income uh but 57:26 57 minutes, 26 seconds the work is happening at Mr. Tapper updated we are in the last stage of uh commissioning and 57:33 57 minutes, 33 seconds so payment terms payment terms of course you know depend on that satisfactory completion proving of the plant etc etc so so that is a 57:42 57 minutes, 42 seconds commercial deal that we've done separately but as far as the operational capacity goes that I said is uh in the final stage of commissioning and for 57:50 57 minutes, 50 seconds Bangalore the machines or the production equipment is already yielding results in terms of increased revenue so so it's just a uh matter of uh releasing those payments to get that accounted for. 58:01 58 minutes, 1 second That's it. Understood. So it's timing difference. 58:04 58 minutes, 4 seconds Uh yeah. Yeah. Thank you. Thank you so much. Yeah. Thank you. 58:10 58 minutes, 10 seconds Next question is from the line of Lokesh Manik from Valam Capital. Please go ahead. 58:17 58 minutes, 17 seconds Uh yes. Hi, good afternoon team. Am I audible? Yes, you are. Yes, please go ahead. 58:21 58 minutes, 21 seconds Great. Great. Uh so uh pitching to a new client or you're sourcing new business, is there a 58:29 58 minutes, 29 seconds minimum order value or uh you know volume that you look at uh you know when uh targeting new customers or you know 58:38 58 minutes, 38 seconds within the existing customers new programs for that matter. 58:43 58 minutes, 43 seconds So our lens to look at any new customer that we onboard is what can it be? So obviously all things start small. It's 58:52 58 minutes, 52 seconds not that he's going to give you 100 cr order when you start pitching for a new business. But it is our judgment call that we say that okay how many plants 59:00 59 minutes does this customer have? What is the uh reputation he has in the market? Uh where do we see our contribution being? 59:09 59 minutes, 9 seconds Uh what is the intensity of competition? 59:12 59 minutes, 12 seconds Where do we think we can add value? And then we do a judgment call to say that yes this is a global customer. Just to tell you a lot of mega accounts that we 59:20 59 minutes, 20 seconds built. We started very small. So, Viston it was just one plant in India that we started with and today we are supplying 59:28 59 minutes, 28 seconds to 10 plants across the world. Walpool Corporation we started with just making overlays for them. We added multiple new 59:36 59 minutes, 36 seconds products and we are one of the few global suppliers that they have that we supply not only to India but all their other plants worldwide as well. A lot of 59:44 59 minutes, 44 seconds their plants worldwide as well. So the the way we look at it is that uh it is a start but is there promise that we can 59:53 59 minutes, 53 seconds enter this customer in a big manner not just in India but globally. So if I have a choice between a local Indian customer 1:00:01 1 hour, 1 second who has let's say a relatively small volume who is a a global player who I can uh supply to not just in India but 1:00:10 1 hour, 10 seconds also across the world then obviously the first priority will be for the global customers. So so that those are those basic rules that we follow when we select that which customer to go into. 1:00:20 1 hour, 20 seconds There's no absolute number to say that whether it should be a 5 cr business or a 10 cr business. More important is that 1:00:27 1 hour, 27 seconds in 5 years can this be a a large enough customer to 1:00:34 1 hour, 34 seconds so that we care uh happy allocating resources to develop products for them. 1:00:40 1 hour, 40 seconds Understood sir. So my second question is a clarification uh what are the programs like you mentioned capeex programming across three divisions. So which of 1:00:47 1 hour, 47 seconds these are coming online in FI27? Uh and also the Decoast program uh that is similar to the uh that is the uh plant at Hosour which has been commissioned. 1:00:58 1 hour, 58 seconds If you can just give this clarification. 1:01:00 1 hour, 1 minute So so Decoast is what was earlier called Exote for us that is in Ranjanga Puna. 1:01:07 1 hour, 1 minute, 7 seconds So we have one chrome plating and painting facility in Punea already. This plant is hardly 2 km 3 km away from that 1:01:14 1 hour, 1 minute, 14 seconds plant. And this is a green field plant that we set up which will double our capacity for chrome and painting. So, so 1:01:21 1 hour, 1 minute, 21 seconds that's the plant that uh I said is in final stages of commissioning and of course all the billing etc should be 1:01:28 1 hour, 1 minute, 28 seconds done. So been FI 27 obviously everything will be settled even for the plant at 1:01:36 1 hour, 1 minute, 36 seconds Puna uh sorry Bangalore that we are expanding the current SCS plant all that also will be done in FI27 the HOSU plant 1:01:44 1 hour, 1 minute, 44 seconds is a lease facility where we have close to about 97,000 ft of uh the plant is ability ready the equipment is on order 1:01:52 1 hour, 1 minute, 52 seconds so that investment also should be done within FI27 so all these three initiatives Yes, we should complete capex in FI27. 1:02:04 1 hour, 2 minutes, 4 seconds Got it. Got it. Thank you so much, sir. Thank you. From my side. 1:02:09 1 hour, 2 minutes, 9 seconds Next question is from the line of Kush Nahar from Electrum PMS. Please go ahead. 1:02:16 1 hour, 2 minutes, 16 seconds Uh hi, thank you for the opportunity. 1:02:18 1 hour, 2 minutes, 18 seconds So, couple of questions. So first uh with Hero have we are you already in discussions for other products since it's been around 9 10 months since you 1:02:27 1 hour, 2 minutes, 27 seconds started the SOPs for them? Yes, we are in discussions right and accordingly uh we have capacities 1:02:35 1 hour, 2 minutes, 35 seconds for that which is the SGS magna facility the capex that we're doing right yeah we we proactively build capacity so that uh we are when we pitch for a 1:02:44 1 hour, 2 minutes, 44 seconds business we have all the capability to support that uh additional business that we target right and so on the display side is just 1:02:52 1 hour, 2 minutes, 52 seconds one clarification over here we'll be uh manufacturing the optical glass and then doing the optical bonding for all three of them right or is it only the bonding part that we'll do? 1:03:03 1 hour, 3 minutes, 3 seconds No, no. So, so there are let me explain that process to you. So, there is a uh optical bonding of the TFT screen with 1:03:12 1 hour, 3 minutes, 12 seconds the cover glass. So, that cover glass uh uh will get bonded. This is phase one. 1:03:19 1 hour, 3 minutes, 19 seconds Phase two is we will make the cover glass ourselves. So that is getting raw glass, machining it, printing it and 1:03:28 1 hour, 3 minutes, 28 seconds then even coating it. So there are specialty coatings which are anti-reflection, anti-glare, anti-fingerprint. So so we will do all 1:03:35 1 hour, 3 minutes, 35 seconds of that and we will bond all these uh together. And the third element here is the backlight and uh it is our ambition 1:03:44 1 hour, 3 minutes, 44 seconds to also do the backlight. So SGS will be a fully integrated facility for the display in India. 1:03:51 1 hour, 3 minutes, 51 seconds Except for the software, we will do all the hardware part of the display. Right sir, just one follow up on that. 1:03:58 1 hour, 3 minutes, 58 seconds Are we in discussions already in terms of business development and uh onboarding customers or is it more 1:04:05 1 hour, 4 minutes, 5 seconds sampling post the machines only once we get it? 1:04:09 1 hour, 4 minutes, 9 seconds No no no. So we have already in discussions in very advanced stage of discussions. There are some businesses that we are jointly discussing with BOE. 1:04:17 1 hour, 4 minutes, 17 seconds So we are very very hopeful and confident that we will uh start supplies out of this plant as I mentioned in uh early 528. 1:04:27 1 hour, 4 minutes, 27 seconds As I said the 40 crores for the plant right 40 to 50 crores. 1:04:32 1 hour, 4 minutes, 32 seconds We said that uh glass is about 40 crores and for the display we add another 25 crores. So roughly ballpark number about 1:04:41 1 hour, 4 minutes, 41 seconds 65 crores on the s. All right sir. Thank you. Thank you. 1:04:45 1 hour, 4 minutes, 45 seconds Thank you. Ladies and gentlemen, due to time constraints, we'll take that as the last question for today. I would now like to hand the conference over to 1:04:53 1 hour, 4 minutes, 53 seconds management for closing comments. Over to you, sir. 1:05:00 1 hour, 5 minutes Yeah. I would like to thank everyone for joining on the call. I hope we have been able to respond to all your questions 1:05:06 1 hour, 5 minutes, 6 seconds adequately. For any further information, we request you to please do get in touch with us. Stay safe, stay healthy and 1:05:15 1 hour, 5 minutes, 15 seconds thank you once again for joining with us. Have a good week. Have a good week. 1:05:20 1 hour, 5 minutes, 20 seconds Thank you. On behalf of IFL Capital Services Limited, that concludes this conference. Thank you for joining us and now disconnect your lines. 1:05:29 1 hour, 5 minutes, 29 seconds Thank you.