Tenneco Clean Air India Ltd — Q3 FY26

Tenneco Clean Air India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Z10kmImnv3g Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Teneo Clean Air India Limited Q3 FI26 earnings conference call. As a 0:11 11 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 concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:28 28 seconds I now hand the conference over to Mr. 0:30 30 seconds Rupali Singh, company secretary and compliance officer from Tenico Clean Air India Limited. Thank you and over to you ma'am 0:53 53 seconds ma'am. 0:55 55 seconds Yeah, thank you. Uh good evening ladies and gentlemen. We welcome you to the earnings call of Chenico Cleaner India 1:02 1 minute, 2 seconds Limited. Today we have with us Mr. Arvin Chandra Shikhril, full-time director and CEO of the company and also Mahindra 1:09 1 minute, 9 seconds Chabda, the chief financial officer. A detailed presentation on the business and financial performance is available on company's website and on the website 1:18 1 minute, 18 seconds of the stock exchanges as well. We will begin with Mr. Chandra uh providing a business update followed by Mr. Shabra 1:26 1 minute, 26 seconds covering the financial results. We expect the base to take about 20 odd minutes. After that, we would open the 1:32 1 minute, 32 seconds floor for Q&A session of about 20 40 minutes. Before we proceed, I would like to draw your attention uh to the 1:39 1 minute, 39 seconds cautionary statement that appears in the presentation. And with that, I would hand it over to Ad. 1:48 1 minute, 48 seconds Thank you. Thank you, Rupali. 1:51 1 minute, 51 seconds Uh good evening. Uh and thank you all for joining us for Teneo Clean Air India's Q3 FY26 earnings call. For us, 2:01 2 minutes, 1 second this quarter was defined by robust execution. 2:05 2 minutes, 5 seconds Execution that translated technology into customer adoption, strengthened our order book and reinforced the leadership 2:12 2 minutes, 12 seconds and relevance of our portfolio in a rapidly evolving Indian automotive market. In Q3, we delivered strong value 2:21 2 minutes, 21 seconds added revenue growth of 15% year-over-year alongside IBIDA growth of 25% reflecting operating leverage and 2:29 2 minutes, 29 seconds discipline cost management. Our margins remained at healthy levels with IBITA at 18.6% 2:36 2 minutes, 36 seconds underscoring the quality of earnings and the scalability of our operating model. 2:40 2 minutes, 40 seconds for profit after tax. We had a one-time impact of recently notified labor code which required us to go back in time to 2:47 2 minutes, 47 seconds calculate the full impact of statutory benefits per the new definition. So due to this onetime impact, our path came out at 9.9%. However, without this, we 2:57 2 minutes, 57 seconds would have been much better quarter over-arter showing strong underlying business performance improvement. 3:03 3 minutes, 3 seconds Our current ROC levels uh we're attaining 80% plus levels folks. 3:10 3 minutes, 10 seconds Now, now comes the exciting part. At Tenacle, our focus goes beyond manufacturing components. We engineer 3:18 3 minutes, 18 seconds experiences that OEMs can bring to life where technology, comfort, and performance come together to create meaningful differentiation for end 3:26 3 minutes, 26 seconds consumers. A defining highlight this quarter was a strong validation of our technology leadership through the 3:33 3 minutes, 33 seconds adoption of Davinci DCX, a first in the world advanced suspension system adopted 3:40 3 minutes, 40 seconds by a leading Indian OEM for a next generation flagship SUV platform with an estimated annual revenue potential of 3:48 3 minutes, 48 seconds around 2,200 million INR for this one program alone. This win demonstrates our 3:55 3 minutes, 55 seconds ability to translate mechanical innovation to scalable customer relevant solutions. Our patented DCX reflects our 4:04 4 minutes, 4 seconds commitment to India bringing global suspension expertise tuned for local road conditions through a purely 4:11 4 minutes, 11 seconds mechanical architecture that avoids the cost and complexity of software or electronic heavy systems. 4:19 4 minutes, 19 seconds This combination of performance, affordability, and speed to market positions Davinci DCX as a market ready 4:27 4 minutes, 27 seconds solution for all passenger vehicle segments, including SUVs. It is also a total gamecher and disruptive to the 4:35 4 minutes, 35 seconds conventional mechanical dampers which still dominate over 90% of passenger vehicles in India as OEMs are 4:43 4 minutes, 43 seconds increasingly pushing ride quality as their top differentiator. 4:48 4 minutes, 48 seconds Alongside this win, we also secured a strategic clean air program win with a leading global commercial vehicle OEM 4:57 4 minutes, 57 seconds based on a modular inline BS6 after treatment system with an estimated annual revenue potential of around 1,150 5:06 5 minutes, 6 seconds million INR. This program allowed the customer to retain its captive engine architecture while reducing overall 5:15 5 minutes, 15 seconds system cost and it highlights our ability to combine engineering flexibility with the speed of execution. 5:23 5 minutes, 23 seconds Importantly, this win was driven by close customer engagement, resident engineering support, and strong focus on 5:30 5 minutes, 30 seconds firsttime right validation capabilities that are increasingly critical as program timelines tighten. 5:38 5 minutes, 38 seconds These achievements are not isolated. 5:41 5 minutes, 41 seconds They reflect how our engineering and manufacturing capabilities are being translated into tangible customer outcomes across both advanced right 5:48 5 minutes, 48 seconds technologies and clean air and powertrain solutions. While our plans expand capacity to support future growth in the clean air business. 5:57 5 minutes, 57 seconds Now supporting the clean air growth trajectory, our board has approved to develop a green field plant in North 6:04 6 minutes, 4 seconds India, namely in Koda Hana to strengthen proximity to the northern customer base and to support awarded programs across 6:13 6 minutes, 13 seconds light vehicles off highway and tractor segments. This project envisages INR 710 6:21 6 minutes, 21 seconds million capex with an estimated start of production in Q3 of FY27, further enhancing Tenico's operational footprint and customer responsiveness. 6:32 6 minutes, 32 seconds We continue to hold strong leadership positions in our core segments. Leading the market in India in clean air and powertrain applications for commercial 6:40 6 minutes, 40 seconds truck and offhighway OEMs and holding the number one position and shock absorbers for passenger vehicles. These 6:49 6 minutes, 49 seconds positions have been built over decades of manufacturing excellence and continue to deepen as content per vehicle increases and program complexity rises. 6:59 6 minutes, 59 seconds From a broader industry perspective, trends remain supportive with tighter emissions norms, rising expectations around comfort and safety and a 7:07 7 minutes, 7 seconds continued shift towards SUVs and premium platforms. At the same time, India's role as an export base is expanding. 7:15 7 minutes, 15 seconds Against this backdrop, our portfolio across emissions, powertrain and advanced suspension is well aligned with where OEM investment differentiation are 7:24 7 minutes, 24 seconds headed. Now before I hand over to our CFO Mahender Chabra, I want to touch briefly on our growth visibility. Our 7:33 7 minutes, 33 seconds order book remains very strong and well diversified with exports now contributing to over 20% of the total 7:42 7 minutes, 42 seconds order book. Importantly, this order book provides full 100% revenue coverage through FY2028 7:50 7 minutes, 50 seconds and supports a clear doubledigit keer visibility over the next 3 years. 7:56 7 minutes, 56 seconds Therefore, vastly outperforming the market. 8:00 8 minutes You will recall from our red herring prospectus from last year that we had grown our value added revenues by 5.9% kagger from FY23 to 25. 8:13 8 minutes, 13 seconds This new growth curve between FY25 and 28 proves our tailwinds and content per 8:20 8 minutes, 20 seconds vehicle exports and white space. Our order book is also well balanced across clean air powertrain and advanced right 8:27 8 minutes, 27 seconds technologies giving us confidence in the sustainability and quality of our growth as we move forward. New tariff and duty 8:35 8 minutes, 35 seconds reduction announcements by the US and EU will strongly improve the tailwinds to allow us to grow our exports further. 8:44 8 minutes, 44 seconds We're talking about 50% tariffs down to 18% for the US and 3 to 8% range to zero for the EU. 8:52 8 minutes, 52 seconds With that, thank you once again for your time. I will now hand over to our chief financial officer, Mind Chabra, who will walk you through the financial 9:01 9 minutes, 1 second performance for Q3 and the 9 months ended FY26. 9:06 9 minutes, 6 seconds Uh thank you Arvind. Uh good good evening everyone and thank you once again for joining us in today's call. 9:13 9 minutes, 13 seconds I'll be taking you through the financial highlights for the quarter 3 FY 26 and the 9month period ended December 25 9:21 9 minutes, 21 seconds using value added revenue or B as a primary performance metric as it excludes pass through substrate cost and 9:28 9 minutes, 28 seconds more regulatory reflects our underlying operating performance. Uh I'll be I'll start with quarter 326. Uh revenue from 9:36 9 minutes, 36 seconds operations stood at INR 12,853 million representing a 14% 14.2 2% 9:43 9 minutes, 43 seconds growth year on year. Value added revenue for the quarter was INR 11,941 9:49 9 minutes, 49 seconds million up by 14.7% yearonear. It clearly demonstrates continued momentum driven by higher volumes and a favorable 9:58 9 minutes, 58 seconds product mix. Clean air and powertrain solutions recorded revenue of 5,644 million INR growing at the rate of 5.4% 10:06 10 minutes, 6 seconds 4% while advanced light technology delivered INR 6,297 million growing at the rate of 24.5% 10:15 10 minutes, 15 seconds supported by strong suspension demand and the program rampups. AITA for the quarter 3 was INR 2,225 10:24 10 minutes, 24 seconds million a healthy 24.8% year-on-year increase with AITA margins at 18.6% of 10:31 10 minutes, 31 seconds value added revenue. Margin performance during the quarter benefited from the operating leverage, our operating model 10:37 10 minutes, 37 seconds P3, commercial actions and effective cost management enabling us to deliver strong margins. Profit after tax for a 10:45 10 minutes, 45 seconds quarter was 1,188 million. And I would like to mention here that this figure is after accounting for oneoff spend related to 10:53 10 minutes, 53 seconds new labor code which came into effect from 21st November 25 to the extent of 203 million INR. Excluding this one-off 11:01 11 minutes, 1 second impact, adjusted profit after tax margins remain aligned with underlying operating and abita performance of the 11:08 11 minutes, 8 seconds business at INR 1,391 million with 18 with 11.7% of value added revenue. Uh 11:15 11 minutes, 15 seconds coming to 9 month period ended December 25, we continue to deliver consistent growth with sustainable margins. Revenue 11:23 11 minutes, 23 seconds from operations for the 9 months period grew 8.1% yearonear to INR 38,515 11:30 11 minutes, 30 seconds million while value added revenue increased 10.3% yearonear to 35,122 million driven by higher volumes 11:39 11 minutes, 39 seconds increasing export contribution and a favorable product mix. AITA for the period stood at INR 6,682 11:47 11 minutes, 47 seconds million up by 12 12% yearonear while AITA margins at 19% of value added revenue supported by operating leverage 11:54 11 minutes, 54 seconds commercial actions and discipline cost management. Profit after tax for a 9-month period stood at INR 4,376 12:02 12 minutes, 2 seconds million reflecting a 6% year-on-year increase. Similar to quarter three, profit after tax includes the impact of the onetime labor cost charge and the 12:11 12 minutes, 11 seconds adjusted profitability remains healthy and consistent with operating performance. From a capital efficiency perspective, returns remain strong with 12:19 12 minutes, 19 seconds return on capital employed exceeding 80% for a 9 months period ended December 25, reflecting disciplined execution, 12:28 12 minutes, 28 seconds efficient capital employment, and robust operating cash generation. Our balance sheet metrics continue to remain healthy sported by a negative cash conversion 12:36 12 minutes, 36 seconds cycle and effective working capital management on the revenue mix. Exports continue to gain traction and now formid 12:44 12 minutes, 44 seconds higher share of our order book compared to our domestic business which structurally sports margins quality. 12:50 12 minutes, 50 seconds Importantly, as highlighted earlier, our order book provides 100% revenue coverage through FY 2028, offering clear 12:58 12 minutes, 58 seconds medium-term visibility and sporting a double digit kegger outlook for us over the next three years. 13:08 13 minutes, 8 seconds As Arvin mentioned earlier, we are very excited about the new green uh about the new green field plant at Koda Hana to 13:16 13 minutes, 16 seconds support major passenger vehicle OEMs and O and tractor OEMs. We believe that the capex investment of INR 710 million will 13:25 13 minutes, 25 seconds give us healthy fix turnover ratio and in line with the consistent consistent with our industryleading past 13:32 13 minutes, 32 seconds performance. To summarize, quarter three and the 9-month period delivered strong revenue growth margins and strong 13:39 13 minutes, 39 seconds capital efficiency. The combination of technology-led program wins, favorable mix, export momentum and disciplined 13:46 13 minutes, 46 seconds execution position us well as we move into the final quarter of the financial year. Uh thank you. With this I now hand over the call back to Rupali. 13:58 13 minutes, 58 seconds Thank you uh Arvind and Mahendas. Uh for the Q&A session uh we would request the participants to kindly limit the 14:06 14 minutes, 6 seconds questions to two at a time. If you have additional questions, please rejoin the queue. I would now request the moderator to please commence the Q&A session. 14:17 14 minutes, 17 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 14:24 14 minutes, 24 seconds star and one on their touchstone telephone. 14:28 14 minutes, 28 seconds If you wish to withdraw yourself from the question queue, please press star then two. Participants are requested to use handset while asking a question. 14:38 14 minutes, 38 seconds Ladies and gentlemen, we will wait for a moment while the question ceue assembles. 14:52 14 minutes, 52 seconds The first question comes from the line of Janesh Gandhi with Oaklane Capital. Please go ahead. 14:59 14 minutes, 59 seconds Yeah. Hi. Have a Yes. Yeah. Hi. My question is for Deni order. 15:07 15 minutes, 7 seconds So, would it be fair to say Deni is close to semi-active suspensions which are available in high-end cars? 15:19 15 minutes, 19 seconds Uh Steve, uh the audio is not very clear for us. Uh okay. Is it better? Uh yeah Mr. Gandhi if you would please repeat the question. 15:29 15 minutes, 29 seconds Yeah uh my question was on Davinci suspensions. So would it be fair to say it is closer to semi-active suspensions 15:36 15 minutes, 36 seconds which are available in more premium vehicles? 15:40 15 minutes, 40 seconds Got it. Got it. Uh hi Janice this is Arvin. U thanks for your thanks for your question. Um uh no it's it's different 15:47 15 minutes, 47 seconds in the sense that uh it's a purely mechanical suspension. So I think it it really 15:54 15 minutes, 54 seconds um has the best combination of affordability and uh performance uh in terms of ride quality. So it has the 16:02 16 minutes, 2 seconds shim stack uh discs uh that are arranged in a way that they allow selective hydraulic flow. So we don't really have 16:09 16 minutes, 9 seconds any software or electronics uh like we have in the semi-active suspension. 16:14 16 minutes, 14 seconds Right? So it's it's think of it as the most affordable but the the best ride quality across highways um you know 16:21 16 minutes, 21 seconds uneven road surfaces, bumpy roads and even potholes. So the it's got the best combination at an afford a affordable price without having the the 16:30 16 minutes, 30 seconds complications of electronic software sensors motors and so any sense of affordability semi seactive 16:38 16 minutes, 38 seconds is 100 this would be what about uh 60 70 index to semi-active 16:46 16 minutes, 46 seconds in fact let me answer it in a different way if it's more like a cuz you know 90% of Indian roads have conventional shock 16:53 16 minutes, 53 seconds absorbers So you could say that since India's independence we've mostly operated with pretty you know average or you know conventional shock absorbers. 17:03 17 minutes, 3 seconds So if you were to go up from that level, right? So from if you had to convert every single passenger vehicle uh cars, 17:10 17 minutes, 10 seconds SUVs, even light commercial vehicles and some commercial trucks conventional DVinci suspension, the 17:18 17 minutes, 18 seconds additional cost delta is is really not much from at least the price that we charge OEMs, right? That delta cost is 17:26 17 minutes, 26 seconds literally the cost of uh a dinner for two at a fivestar hotel. I mean that that's what we're talking about here. So 17:33 17 minutes, 33 seconds it is very affordable I think from a OEM standpoint but in return for for just that cost you have now a much much 17:42 17 minutes, 42 seconds better performing suspension system that's on a vehicle for life and life means what 15 20 years 17:50 17 minutes, 50 seconds right got it uh and in that context uh are you seeing very uh encouraged and 17:57 17 minutes, 57 seconds higher level of inquiries from more OEMs beyond Mahindra because this obviously seems to be a gamecher from suspension technology is concerned. 18:09 18 minutes, 9 seconds Yeah. Uh the demand is is fast and furious. Um everybody recognizes that this is a 18:17 18 minutes, 17 seconds gamecher. So it's just not uh uh it's Mahindra. It's obviously many other you 18:23 18 minutes, 23 seconds know Indian and also Japanese Korean OEMs. Everybody is interested in this technology because you know it's it it 18:31 18 minutes, 31 seconds it's at the right cost range but at the same time from a performance standpoint from a right quality comfort standpoint 18:38 18 minutes, 38 seconds it is a it's a completely different level and and I urge you I urge as many of you to come to our Hosour plant and actually try out the difference between 18:47 18 minutes, 47 seconds a conventional suspension and the Davinci suspension right so I think that that's the game changer we're talking about cuz you know in India look we are 18:54 18 minutes, 54 seconds a very value conscious society yes semi-active suspension is the way to go in the future. However, you know, it does come at a certain price point because you've got comp complicated 19:02 19 minutes, 2 seconds softwares, electronics, and the integration of all that. However, uh this suspension, you know, pretty much 19:10 19 minutes, 10 seconds gets you as close uh as possible to uh an electronics uh suspension. So, I think this is kind of a nice kind of a 19:18 19 minutes, 18 seconds um uh you know mid to premium offering that covers a very very large part of the Indian market. 19:27 19 minutes, 27 seconds Bottom and my second question is on your exports. So uh it's great to see 20% of order book from exports. Any color on 19:36 19 minutes, 36 seconds how would be the end geographic mix of this 20% order book of from exports. Uh the reason I'm asking this is 19:44 19 minutes, 44 seconds considering the changes which are happening on the tariff side. Uh EU obviously from 3 to 3 to 8% tariffs is 19:51 19 minutes, 51 seconds now down to zero hopefully in next 12 to 15 months. uh could that be a very large market uh if it is already not a sizable portion of the export order book today? 20:04 20 minutes, 4 seconds Yeah. So, so good question. So, this has been the big game changer, right? So, just if I just back up a second, right? 20:10 20 minutes, 10 seconds Um if you remember in our red herring prospectus, uh we had said that our exports as a percentage of sales was 20:17 20 minutes, 17 seconds only 5%. Right? So, we were not very comfortable with that, right? And the good news is our order book uh like I said earlier is already coming in at 20% 20:26 20 minutes, 26 seconds of the total order book which is great news right and and the and the another great news on top of that is it's nicely spread between clean air powertrain as 20:35 20 minutes, 35 seconds well as uh right technologies right so both the engine side and the chassis side of the business are seeing nice gains in export uh in terms of regions 20:43 20 minutes, 43 seconds um look now going forward things are going to change right because now the US we've become very competitive because the even from 50 dropped not to 25 but 20:52 20 minutes, 52 seconds to 18 which is excellent from a competitiveness standpoint for us. Uh same thing with EU. Uh some like 20:59 20 minutes, 59 seconds bearings which used to have 8% duties are now to zero. So both from a US and US EU perspective that's going to help 21:06 21 minutes, 6 seconds our competitiveness as it comes to exports. I think I exports will see a much higher keer already exports the keer is is very very very strong double 21:15 21 minutes, 15 seconds digit growth. Right. right now uh what we've booked so far you could say it's a good mix with Asia being uh the leading 21:23 21 minutes, 23 seconds uh uh destination followed by US and Europe but I think looking just at what we have uh order booked just in the last 21:31 21 minutes, 31 seconds let's say few weeks uh it it's going to probably balance out much better and of course for the future because of the new uh tariff reduction announcements 21:40 21 minutes, 40 seconds uh by the US and EU uh it's going to get even even better so I think we're very excited again these exports are not just to third party OEMs. They're also 21:48 21 minutes, 48 seconds exports because we have better labor cost arbitrage, better competitiveness as we supply back to our technical entities worldwide. Could be Teno Europe, could be Tenico uh US as well. 22:00 22 minutes Got it. Thanks. I'll fall back into Thank you. The next question comes from Sha with Modil Financial Services. 22:12 22 minutes, 12 seconds Please go ahead. 22:15 22 minutes, 15 seconds Yeah. Hi sir, thanks for taking my question. Uh so the past few days we've been hearing some news on uh the cafe 22:22 22 minutes, 22 seconds norm. So uh maybe there's a concessions for the smaller cars coming in in the cafe 3 norms. I mean even in five 22:31 22 minutes, 31 seconds there's a pushing timeline according to a couple of media articles. So just wanted to get some sense on uh what are 22:38 22 minutes, 38 seconds you hearing from the Os and how does it negatively impact our visibility for growth in the clean air system segment. 22:49 22 minutes, 49 seconds Uh sorry can I request you to please come a little closer to the speaker and repeat your question. You're not very audible to us. 22:58 22 minutes, 58 seconds Yeah. Uh is this better? Yeah. Let's try this please. 23:04 23 minutes, 4 seconds Yeah. So uh just on the clean air solution, we've been hearing some uh articles, news articles and some chatter in the media that uh cafe norms might 23:12 23 minutes, 12 seconds have some concessions for the smaller car segment and uh TFI is maybe pushed uh by a couple of quarters uh according 23:21 23 minutes, 21 seconds to a couple of media articles. So just wanted to get your sense on what you're hearing from the OEMs and how can it affect our growth going forward in the segment. 23:30 23 minutes, 30 seconds Okay, thanks G. I I got your question. 23:33 23 minutes, 33 seconds So I think look um there there are always um rumors on you 23:39 23 minutes, 39 seconds know push back etc uh across cafe t 5 even BS7 as you know right um but from our standpoint we're not seeing that 23:48 23 minutes, 48 seconds right we're seeing that OEMs really want to get ahead of the curve and and there's one main reason for that and the reason for that is exports right OEMs 23:56 23 minutes, 56 seconds are also very very interested in exporting u uh to to you know South Africa to back to Asia to Japan to to 24:06 24 minutes, 6 seconds Europe and so on and and you see examples of our Indian OEMs that are finding a lot of recent success uh with 24:13 24 minutes, 13 seconds exports uh in in various regions. So I think from that standpoint if they have to export vehicles from a cafe from a 24:21 24 minutes, 21 seconds CO2 standpoint they have to be on par with uh the the rest of the OEMs that that uh operate in those regions. And 24:29 24 minutes, 29 seconds same thing for TM 5. Trem 5 is a good example where tractors for example if you want to export tractors to other regions and by the way OEMs make much 24:37 24 minutes, 37 seconds better profits uh overseas I assume simply because I think that you know the the market can can adopt and accept a 24:45 24 minutes, 45 seconds much higher uh price. So from from from that standpoint as well we're seeing that uh there's no push back then in 24:53 24 minutes, 53 seconds fact if at all there is more pull from from us to say okay what else can you do? Can you make it more affordable? Can you make it package better? Can you do 25:01 25 minutes, 1 second it faster? So, I think it's it's more the contrary, I would say. It's just that uh OEMs really want to make sure that they they are not the ones that are 25:09 25 minutes, 9 seconds slowing anything down uh from a from an export standpoint. So, they they want to make sure that they are on par uh with the legislation uh looking into their business as a global business. 25:20 25 minutes, 20 seconds Got that. Got that. Also uh just on the green field plan that we are looking to set up, what would be the uh asset turn over there? I'm sorry if we've already answered that. I just missed it. 25:33 25 minutes, 33 seconds So typically, you know, we say um uh again see this is the theoretical because this is how we've operated in the last let's say 10 years or so, 25:41 25 minutes, 41 seconds right? So for every rupee of capex invested, we typically this is again gross block, right? So every rupee of capex invested 25:49 25 minutes, 49 seconds gives us a steady state revenue of 3.5 to four rupees, right? One is to four, right? on a net block basis we are more 25:56 25 minutes, 56 seconds like 1 is to 7 or 1 is to8 I would say so uh we've uh the number that that we've put in the press release is 710 26:04 26 minutes, 4 seconds million INR yeah so you can just take three three and a half times that to say okay what at steady state and because there is a little bit of delay right so 26:12 26 minutes, 12 seconds the capex comes first and it takes about 18 to 24 months to full ramp up and so on so it'll be three three and a half to four times that number uh from 26:21 26 minutes, 21 seconds standpoint of steady state revenue but and over over time as your capex assets depreciate you know it will tend closer 26:27 26 minutes, 27 seconds to the 1 is to 7 1 is to8 kind of range you want to add something yeah no that's right I think so we investing about 710 million in this new 26:35 26 minutes, 35 seconds green field and in terms of fat isue it would be inconsistent with the current F that we have it will take some time like 26:43 26 minutes, 43 seconds I've been mentioned so let's say over the next 18 to 24 months once the ramp up happens we should be close to the existing levels 26:52 26 minutes, 52 seconds sure got that also Lastly, uh what would be the current value of the total order book that we have? 27:01 27 minutes, 1 second Yeah, so order book uh we we we decided we'll publish it every 6 months. So we did one the previous Q2. The next one if 27:09 27 minutes, 9 seconds I can just ask you to ask me this question in about 2 and a half 3 months that would be great. Uh we will uh publish the audit book for the second 27:16 27 minutes, 16 seconds half of the year uh post the end of the financial year. So we'll do one uh every 6 months simply because it's not because we we don't want to do it. It's just 27:24 27 minutes, 24 seconds because they come in in these uh valleys and peaks. But uh I can assure you the last couple of months have been very very good. So we're very chuffed, very 27:32 27 minutes, 32 seconds happy about it. Um so and also by the way uh the order book has been so good that we can like I said in my uh opening 27:41 27 minutes, 41 seconds uh commentary 100% of FY28 revenues have already been order booked 27:48 27 minutes, 48 seconds have been booked meaning that gives us a very good visibility of a double digit keer so which means we're going to be growing in the next 3 years way faster 27:56 27 minutes, 56 seconds much much faster than we grew in the last 3 years from 23 to 25. 28:02 28 minutes, 2 seconds Sure. Got that. Thank you so much for for that. Domestic and export. Yeah. Yeah. Sorry. Yeah. Got that. 28:12 28 minutes, 12 seconds Thank you. The next question comes from N of Ravi Gupta with Incred. Please go ahead. 28:20 28 minutes, 20 seconds Yeah. Thanks. Am I audible? 28:22 28 minutes, 22 seconds Yes, we can hear you. Thanks for the opportunity. And uh I'm a little Yeah, now it is better. 28:32 28 minutes, 32 seconds Yes. 28:34 28 minutes, 34 seconds Yeah. So, uh thanks for the opportunity and uh congratulations for the uh y uh solid y growth. So, my question for the 28:41 28 minutes, 41 seconds precious metal uh inflated precious metal sizes given the elevated uh price of the precious metal. What technologies 28:48 28 minutes, 48 seconds or design approach are OEMs exploring to reduce overall after treatment system cost and how you are supporting customers through material 28:55 28 minutes, 55 seconds optimizations, alternative formulations or system redesigning to address this challenge? 29:03 29 minutes, 3 seconds Yeah, good question. Um, but this is an ongoing thing, right? I mean, um, we always are partners with OEMs to try 29:12 29 minutes, 12 seconds and, uh, optimize the use of precious metals because obviously precious metals, you know, there's a holding 29:19 29 minutes, 19 seconds cost. Um, and obviously there's no consumer benefit, right? consumers don't see the benefit of that other than the fact that it helps you know catalyze the 29:28 29 minutes, 28 seconds conversion of harmful gases into uh uh inert gases right so that that the function of the catalyst is that right 29:36 29 minutes, 36 seconds so obviously our help to our customers is is in multiple ways like you rightly said it it could be material grade choices it could also be I think uh 29:45 29 minutes, 45 seconds fundamentally the choice of how we design the mixer right so if the exhaust gases are able to mix better uh in a 29:54 29 minutes, 54 seconds most optimized way to have maximum exposure to catalyst then we can actually reduce the amount of platinum 30:00 30 minutes palladium roodium loading so as to still get the the benefit from a NOx and a particulate matter standpoint right so 30:08 30 minutes, 8 seconds it's it's really and again I commend our very strong parentage our global engineering folks uh based in the US 30:16 30 minutes, 16 seconds Europe as well as the strength of our applications engineering team here uh who form an excellent team work with all the OEMs around the world and also by 30:24 30 minutes, 24 seconds the way we also learn from other OEMs as to how they're doing it and and we also are able to kind of make suggestions and 30:30 30 minutes, 30 seconds advise OEMs on uh different ways to uh change the architecture in terms of packaging in terms of routing of the 30:38 30 minutes, 38 seconds gases in terms of precious metal loading also in terms of material grades right so all of the above is something that we've been doing for a long time and of 30:45 30 minutes, 45 seconds course this is our endeavor is to al always ensure that uh we help the OEMs reduce the amount of loading uh and still be able to meet the legislation throughout the life of the vehicle. 30:56 30 minutes, 56 seconds Got that. Uh second question is regard to the export one. So the EU India FTA progressing and how do you see this impacting your business specifically? Uh 31:05 31 minutes, 5 seconds do you expect benefit through lowc cost imported component or uh or it could increase the competitive intensity as 31:12 31 minutes, 12 seconds global peers uh gain similar similar access to India market? What is your view? 31:20 31 minutes, 20 seconds Yeah. So like I said um yes all of the above uh there are certain pro components like bearings which attract a much higher tariff like 8% and that 31:29 31 minutes, 29 seconds imagine 8% going down to zero now we're able to be way more competitive on on price right and the same thing for you 31:36 31 minutes, 36 seconds know ceilings uh ignition like spark plugs so all those become much more competitive from a let's say a single plant out of India can can be more 31:44 31 minutes, 44 seconds competitive and and by the way these products right bearings ceilings uh spark plugs are very small, right? Uh and they travel really well. So the 31:53 31 minutes, 53 seconds logistics cost is almost nothing. You put many of these inside a little box and you're able to ship them for no additional cost. So wherever you have 32:03 32 minutes, 3 seconds exports to Europe or the US in this case your question was about Europe in wherever there is an export to Europe involved with with small parts that 32:11 32 minutes, 11 seconds travel well you can be 100% sure that we will be more competitive uh than anything that is uh equivalent in in 32:19 32 minutes, 19 seconds size in terms of uh you know but with the labor cost that comes from a western European country for example. 32:28 32 minutes, 28 seconds Thanks. That's uh all the best. Thank you. Thank you. 32:36 32 minutes, 36 seconds Thank you. Next question comes from the line of Pavik with Dish. Please go ahead. Uh uh thank you for taking my question. 32:45 32 minutes, 45 seconds So my first question is on the capacity expansion side. As we mentioned that you have a strong order book visibility. uh 32:53 32 minutes, 53 seconds just want to know uh are we planning to do a major kick on the um like on the business side and especially what the 33:00 33 minutes current status of the capacity utilization second question I have is related to the margin side uh so 33:07 33 minutes, 7 seconds basically we have a two segments uh so what's the margin of clean air segment and the advanced static performance segment 33:18 33 minutes, 18 seconds you want to take that yeah sure so maybe I can cover the second question first. So as far as BU wise margins are concerned uh as an organization we decided that we would be 33:27 33 minutes, 27 seconds kind of sharing the margins at a console level. Uh even though there's a margin differential between the two but we'll be sharing the margins at a console level. Uh on the second part regarding 33:36 33 minutes, 36 seconds capex yes uh as we are we were operating at about 80% of the capacity and today with the volumes that we have we are at 33:44 33 minutes, 44 seconds about more than 90% of the capacity utilization. We would be kind of investing the capacity utilization because we're looking at a strong double digit kar for for the next three years. 33:53 33 minutes, 53 seconds So we would be investing in the capex and one of that is already that we have already kind of announced we will be putting up a new plant in karoda harana which will mainly take up the clean air and power train business. 34:05 34 minutes, 5 seconds Okay. Um as you say that you like there is the investment is going to be a life. 34:11 34 minutes, 11 seconds So when we can expect uh it be uh optimally like uh when the capacity is going to be live and how we can see the ramp up situation. 34:22 34 minutes, 22 seconds Yeah. So as far as this new plant is concerned like we would kind of start the I mean the investment within this quarter and we should see the ramp up in Q3 of FI27. 34:34 34 minutes, 34 seconds Okay. Okay. Okay. Thank you so much. Thanks Babika. 34:42 34 minutes, 42 seconds Thank you. The next question comes from the line of Vaj with SIMPL. Please go ahead. 34:49 34 minutes, 49 seconds Yeah. Hi. Uh thanks for the opportunity. 34:52 34 minutes, 52 seconds Uh just couple of questions. First is on the uh new suspension innovation we've talked about. Uh can you just from a 35:00 35 minutes technical point of view, can you just give some color? Why is it difficult for someone uh you know to offer similar solution you know in Indian context? 35:14 35 minutes, 14 seconds Yeah. But look we in India right Teneo India we have the advantage of having a 35:23 35 minutes, 23 seconds very strong R&D backbone right the parentage is very strong right. So we are already by the way we are leading in suspension globally not just in India. 35:32 35 minutes, 32 seconds In India we now have 52% of the market share which means one out of two passenger vehicles has a tentacle shock 35:40 35 minutes, 40 seconds absorber in it already as of today and we and we've gained in the last 6 8 months also but the global story is not that far 35:48 35 minutes, 48 seconds away. I mean we were also leading uh in in suspension technology globally right. 35:54 35 minutes, 54 seconds So the strength of our core R&D and you know coupled with the strength of our applications engineering team here in 36:01 36 minutes, 1 second India there are no companies in the world that are have this combination right we have the smartest engineers uh 36:08 36 minutes, 8 seconds and and again me coming from uh with a 30-year career across all regions I can assure you that this is one of the 36:16 36 minutes, 16 seconds finest engineers I've I've ever met. um specifically you know this DCX is patented right it's it's it's very 36:24 36 minutes, 24 seconds unique because uh it uses think of like a Pringles um you know uh chips potato chips stacked up right it's something 36:33 36 minutes, 33 seconds like that you have different discs different materials all stacked up and so um each of them selectively allows 36:41 36 minutes, 41 seconds for hydraulic flow uh in different conditions so whether it's a straight road and you're making a sudden turn or you're going through a une uneven 36:49 36 minutes, 49 seconds surface or slightly bumpy surface or a sudden jerk uh after hitting a speed breaker or hitting a pothole. The 36:57 36 minutes, 57 seconds advantage of this is that these discs are designed and each one operates a slightly different way. So, and this is pure mechanical ingenuity, right? And it 37:06 37 minutes, 6 seconds does it in a way that offers you optimal comfort across all vehicle conditions. 37:11 37 minutes, 11 seconds And this is you know again we developed it in conjunction with uh with the leading uh Indian OEM which I guess you 37:18 37 minutes, 18 seconds can Google and find out who that is but um this is very difficult to copy one is it's patented plus I think it's a lot of 37:26 37 minutes, 26 seconds you know 3 four years have gone to bring this into fruition it's not something that can be copied overnight. Um and so 37:34 37 minutes, 34 seconds I think that's the way I would answer it you know combination of the smartest engineers 3 four years of development globally and also in India with 37:42 37 minutes, 42 seconds excellent parentage and very very close applications engineering work with the with the leading Indian OEM um has resulted in this technology. 37:53 37 minutes, 53 seconds Okay. Uh second question is on suspension. Okay. uh see uh if you see the trend broadly is you know we seeing 38:02 38 minutes, 2 seconds a premierization in the Indian auto industry and uh just like other auto components you know one would logically 38:11 38 minutes, 11 seconds think that OE over a period of time transition to something like semi-active or active uh but here you are you know a 38:19 38 minutes, 19 seconds global leader offering this solution which is uh a relatively a cheaper uh cost effective I would say solution to a 38:26 38 minutes, 26 seconds semi-active So is that push more driven from the OE or you know that the transition is not playing out as you think it should have 38:36 38 minutes, 36 seconds in in terms of towards the semi-active active I mean any thoughts you can you know give you know the thinking behind 38:44 38 minutes, 44 seconds this solution and you know what has driven it. 38:49 38 minutes, 49 seconds Very very good question. Uh thanks for the question. uh see the OEMs look look at typical Indian OEMs right they cater 38:57 38 minutes, 57 seconds to the AB segments uh then they cater to C segments and and they're inching more and more towards more and more expensive vehicles right it's not far away where 39:05 39 minutes, 5 seconds you'll have an Indian OEM launching a 50 lakh rupee vehicle I think it it is just a matter of time right so our job right 39:13 39 minutes, 13 seconds as a supplier to OEMs as a technology company is to supply the entire range uh of uh segments ments for the OEM, right? 39:24 39 minutes, 24 seconds And what this DCX does, it sits nicely in the middle. In the middle, meaning the big middle, right? Uh because 90 39:32 39 minutes, 32 seconds over 90% of the uh shock absorbers across all passenger vehicles is is conventional. The old boring stuff, 39:38 39 minutes, 38 seconds let's call it that. This thing sits nicely in the middle and it covers a nice range of subsegments, right? So it's not in the like ultra premium 39:47 39 minutes, 47 seconds category. You would obviously go for the semi-active solution because you will have you will need to have sensors, actuators, electronics that also talk to 39:55 39 minutes, 55 seconds you know braking and steering and and and so on in case you want to have let's call it a multi-layered experience like you see in you know uh premium vehicles 40:03 40 minutes, 3 seconds ultra ultra premium vehicles. But this DCX technology is sort of like the middle ground where it straddles the 40:10 40 minutes, 10 seconds entire let's call it the low lowc cost affordable segment all the way up to the mid to let's say entry- level premium segment and this is what what is the 40:19 40 minutes, 19 seconds magic here because it's affordable at the same time in terms of a performance improvement um I would strongly suggest that you you 40:28 40 minutes, 28 seconds experience both a typical conventional shock absorber and this DCX technology and you will see a huge difference so for that huge difference the delta price 40:36 40 minutes, 36 seconds to be paid uh is very minimal like I said cost of a family dinner at a fivestar hotel but I think the the the 40:44 40 minutes, 44 seconds point I'm making is that our job is to cater to every single segment so when our Indian OEMs and also let's say Japanese Korean OEMs come up with more 40:51 40 minutes, 51 seconds and more premium vehicles obviously we'll push them more towards a semi-active uh or even fully active suspension at some point but this one is 40:58 40 minutes, 58 seconds is is excellent because it doesn't add any incremental cost at least the cost that we charge the price that recharge to the OEMs. Uh but overall in terms of 41:07 41 minutes, 7 seconds the improvement in performance, you can just Google VCX Davinci and you'll see there's t tens of media reports on how 41:14 41 minutes, 14 seconds how good it is, right? And again, don't take my word for it. Look at independent journalists. It's all over YouTube. In fact, they're doing free marketing for 41:22 41 minutes, 22 seconds us uh for for teno here. And u you know, you can just go and check and see what they have to say about this DCX technology. 41:32 41 minutes, 32 seconds Okay. So this basically would cover the 7XO both the platforms. 41:39 41 minutes, 39 seconds In fact, this thing is so good that we say it covers all the way from the A segments like the real small cars. Of course, it there's a certain board size. 41:46 41 minutes, 46 seconds So we don't want to go to like the real low-end ones. Maybe you could say B segment, C segment, D segment. So it covers all passenger cars, all SUVs, and 41:54 41 minutes, 54 seconds even commercial vehicles in terms of cabin dampers, axle dampers, and so on. 41:58 41 minutes, 58 seconds So we can actually make a case that this will go beyond the typical let's say 5 million a year um passenger vehicle 42:06 42 minutes, 6 seconds market and it will also go into light commercial vehicles and also some uh some u medium to heavy duty trucks. 42:13 42 minutes, 13 seconds Okay. Uh I have one question on the uh uh clean air division. Uh this is more 42:20 42 minutes, 20 seconds from an export point of view. uh see I understand that tariffs uh you know incrementally 42:27 42 minutes, 27 seconds uh you know post the FDA deals uh it's it's no longer a barrier it used to be uh but if I have to keep that aside and 42:36 42 minutes, 36 seconds just understand from a unit cost uh you know cost competitiveness point of say of teneo India versus you know other 42:44 42 minutes, 44 seconds emerging locations of teneo or with other Indian uh Indian competitors how would our cost position 42:55 42 minutes, 55 seconds We we believe uh at tenno at least okay your question was specific to clean air um we believe that our cost structure is 43:04 43 minutes, 4 seconds highly optimized um and that's because of you know look at the kind of margin improvement we've 43:11 43 minutes, 11 seconds made right um in the last 3 years so FI23 2425 400 basis points of ibida improvement which also again because 43:20 43 minutes, 20 seconds clean air is it's nearly 50 is 50% of our business. Um the margin improvement again that's come through very very 43:28 43 minutes, 28 seconds strong cost cutting right across all elements of the P&L over 200,000 two lakh ideas have gone through over the 43:36 43 minutes, 36 seconds last 3 years and created a model that allows us to be very very cost competitive and secondly because we have 43:44 43 minutes, 44 seconds this kind of a culture of co you know continuous improvement that thing doesn't stop by the way even now as I'm talking to you there are people in the plants that are constantly they have 43:52 43 minutes, 52 seconds challenger roles their job is to uh is is to keep taking cost out of the system right uh obviously and then labor cost 44:00 44 minutes advantage from an export perspective India is very very competitive also India is the best combination of a country that has lowc cost labor and 44:08 44 minutes, 8 seconds also educated labor remember that India scales really well we have the best access to you know highquality engineers operations people quality engineers etc 44:17 44 minutes, 17 seconds etc so that that combination of low labor cost plus talent is what makes India special and of course we are uh you know we're we're using that to our 44:25 44 minutes, 25 seconds advantage now versus other competitors in India or elsewhere I don't want to comment on what they're doing but all all I'm saying is that we are in the 44:34 44 minutes, 34 seconds best position to compete uh globally or compete in India very well and also to compete globally because look at what 44:42 44 minutes, 42 seconds has happened in the recent past in Q2 we announced that we u made a strategic we made strategic inroads into the hotend 44:50 44 minutes, 50 seconds with the gasoline particulate filter with the leading Japanese OEM M which we didn't have access to before. So that certainly opens us uh puts us in the 44:57 44 minutes, 57 seconds supplier panel of this this major major customer right. So that allows us to grow our clean air market share further in in India and of course overseas when 45:06 45 minutes, 6 seconds it comes to exporting you know uh components like end cones uh you know hydrophone parts um you know STR mixers 45:15 45 minutes, 15 seconds diesel particulate filters because of this new reduction of of tariffs between the US and India and also you know Europe and India our products become 45:24 45 minutes, 24 seconds more competitive. So the combination of you know uh a culture of continuous improvement uh heavy cost cutting this 45:31 45 minutes, 31 seconds is part of our culture right. Secondly the access to uh you know lowest cost labor but this and the smartest engineers and thirdly and of course the 45:40 45 minutes, 40 seconds the the uh the the overall cost competitiveness improves and because of the tariff reductions it it gets further 45:48 45 minutes, 48 seconds heightened I would say our competitiveness. Did I answer your question? Uh V. 45:53 45 minutes, 53 seconds Uh it's okay. I'll follow up. Maybe take it offline. Thank you very much. 46:01 46 minutes, 1 second Okay. Thanks. Thanks. 46:04 46 minutes, 4 seconds Thank you. Ladies and gentlemen, if you wish to ask a question to the management, he may press star and one. 46:12 46 minutes, 12 seconds The next question comes from the line of Nitpan from JM Financial. Please go ahead. 46:18 46 minutes, 18 seconds Yeah. Thanks for the opportunity and congratulation on great set of number. I have one specific question with regards to the cleaner uh segment performance in 46:27 46 minutes, 27 seconds this quarter. We have seen the art grew around 24.5% basis. However, the cleaner system grew only 5.5 4% despite uh the underlying 46:36 46 minutes, 36 seconds industry both passenger vehicle and the commercial vehicle showing a strong uh strong momentum. uh could you please elaborate some of the reasons why was uh 46:45 46 minutes, 45 seconds there under the performance uh from the clean air system? 46:51 46 minutes, 51 seconds Yeah sorry uh I I hope I understood the question the question was uh clean air growth versus art growth uh right uh Nathan. 46:59 46 minutes, 59 seconds Yeah. Yeah. Especially when the underlying industry for the clean air like commercial vehicle and the passenger vehicle uh so robust momentum post GST 2.0. 47:10 47 minutes, 10 seconds Yeah. Yeah. Okay. Okay. Uh yeah. So look uh be because uh you know our our clean 47:18 47 minutes, 18 seconds air light vehicle or let's call it passenger vehicle presence uh is not so much in the lower displacement engines and the GST impact from a positive 47:27 47 minutes, 27 seconds impact perspective has actually benefited more the the smaller displacement engines that go on A and B segment cars where we are not present uh 47:35 47 minutes, 35 seconds for the majority for with this you know leading Japanese OEM. Um and that's one of the reasons why we didn't get the benefit of that. But that's only for the 47:44 47 minutes, 44 seconds quarter, right? Because over time, if you look at CM or IHS, they're all predicting that this GST euphoria will die down after some time. So over the 47:53 47 minutes, 53 seconds with the over a full year period, uh that the euphoria won't last. It'll come back to normal level. So we we think that our uh growth will will uh in clean 48:02 48 minutes, 2 seconds air will will align itself to the market growth. Uh and also a second thing I want to mention is that because we we've got inroads we've made inroads into the 48:11 48 minutes, 11 seconds hotend uh at this leading Japanese OEM that changes the game completely right so over the next 18 to 24 months you will see that business also ramping up 48:18 48 minutes, 18 seconds and also more and more RFQS coming in from from that particular OEM uh and that will help us grow also with recent 48:26 48 minutes, 26 seconds strategic wins like we put in the Q3 press release uh strategic win at a at a you know European uh leading OEM truck 48:34 48 minutes, 34 seconds customer truck customer there also we have consolidated our position. So our market share is already pretty high, right? In commercial trucks, we're leading 57% share and all five at 68%. 48:44 48 minutes, 44 seconds But that has not stopped us. We're constantly growing and creeping up on market share. And on the passenger vehicle side, our market share has has 48:52 48 minutes, 52 seconds crept crept up and growing steadily. And plus the export, see that's the thing going back to the earlier question, our exports is really the order book is very 49:00 49 minutes very strong right now in clean air. So that's the other thing that's helping our growth. So both from a domestic market share capture getting into white 49:06 49 minutes, 6 seconds space enjoying the benefits of uh content per vehicle because of either cafe uh with the like a gasoline 49:13 49 minutes, 13 seconds particle filter or with tfi or with even let's say early versions of BS7 we are benefiting from from that so content per 49:21 49 minutes, 21 seconds vehicle exports growth and also whites space from a uh share of wallet capture. 49:28 49 minutes, 28 seconds Yeah. Okay. Okay. That's it from my side. Thank you. 49:36 49 minutes, 36 seconds Thank you participants. If you wish to ask a question, you may press star and one. The next question comes from the line of Virat Sangri with Ambit Capital. 49:47 49 minutes, 47 seconds Please go ahead. 49:50 49 minutes, 50 seconds Thank you for the opportunity sir. Uh I just have one uh question. uh in X of Clear Solutions business we've seen 49:57 49 minutes, 57 seconds almost 400 basis points a bit margin improvement on a Y basis uh could you highlight uh in specific reasons for 50:05 50 minutes, 5 seconds that and the headroom that you have further uh in X of clean for margin thank you 50:14 50 minutes, 14 seconds sorry Virj I couldn't hear you properly uh so your question was the 400 basis points improvement in EBIDA is that what it was was that was your question and an 50:23 50 minutes, 23 seconds explanation uh in X of your cleanest solutions business uh the margin improvement of 50:29 50 minutes, 29 seconds around 400 basis point on a Y by basis uh any uh color on that and uh what is the scope of further improvement over there? 50:39 50 minutes, 39 seconds No no no I think you misunderstood. I was talking about the overall uh business that is clean air, powertrain and the right technologies 50:48 50 minutes, 48 seconds over the last 3 years with FY23 to FY25 50:55 50 minutes, 55 seconds right so 3 years FY23 24 25 those three years our overall IBIDA including clean air including powertrain including right 51:04 51 minutes, 4 seconds technologies the IBIDA went up 400 basis points to the 18 plus% level Right. So what I'm 51:11 51 minutes, 11 seconds trying to say is that post the acquisition by Apollo the entire company not just India but globally has gone on 51:20 51 minutes, 20 seconds a ITA improvement spree focusing on factory level improvements just in India alone there were 200,000 ideas that went 51:29 51 minutes, 29 seconds and of course some got rejected some went in so that kind of new continuous improvement culture has become part of our DNA and that's still continues by 51:37 51 minutes, 37 seconds the way like I said every day there are people in challenges positions on continuous improvement who are constantly trying to work along the P&L 51:45 51 minutes, 45 seconds and again this means looking at raw material costs looking at conversion cost looking at fixed cost looking at commercial negotiations looking at 51:53 51 minutes, 53 seconds design changes you know value uh analysis value engineering the whole uh chain and this was never part of the old 52:01 52 minutes, 1 second old company culture prior to 2022 this is actually part of the of the new culture and this is this is why I'm saying that I'm very comfortable in our 52:09 52 minutes, 9 seconds competitive compiveness because as we get to become a higher margin company, we also have more freedom to play with selling price because we can be we can 52:18 52 minutes, 18 seconds compete aggressively on just with domestic business as well as export business uh very competitive competitively and still make our margins 52:26 52 minutes, 26 seconds because of that culture that we've developed. And again the advantage we have is our parentage right because ideas flow in from all over the world. 52:33 52 minutes, 33 seconds So we benefit from not just technology ideas but also from shop floor ideas. uh we have 180 manufacturing plants 52:40 52 minutes, 40 seconds globally of which u 12 are part of this particular the post IPO uh entity tenico 52:47 52 minutes, 47 seconds clean air and uh we are able to share ideas as well as we're able to give out ideas that help all the other plants so 52:55 52 minutes, 55 seconds that's why we're kind of I'm very comfortable in the fact that this allows us to stay competitive over time does that answer question so if it it's a 53:03 53 minutes, 3 seconds general answer that covers clean air and also uh uh advanced right technologies but uh you know that answer covers all the products uh under that umbrella. 53:13 53 minutes, 13 seconds Sure. Thanks for that. Uh secondly just could you point out uh the capeex till date in FI26 and uh range for FI27. 53:25 53 minutes, 25 seconds Yeah. So as far as uh FI26 is concerned uh like we have announced this new uh plant uh in Koda Aana with an investment 53:33 53 minutes, 33 seconds of 710 million INR. uh for fi 27 we are working on the kind of burgers and on the assumptions and we would soon be 53:41 53 minutes, 41 seconds sharing that uh guidance about the next year capex plans sir thank you 53:50 53 minutes, 50 seconds thank you we have a follow-up question it's on the line of Jim Sha with motil financial services please go ahead 54:00 54 minutes hi sir yeah uh thanks for taking my question again uh just one question uh largely on exports run. Uh a few days 54:07 54 minutes, 7 seconds ago we saw this uh Trump administration come revoking the climate regulations and vehicle emission standards. So uh 54:16 54 minutes, 16 seconds because you have some parentage in from the US as well uh couple of companies over there. Is there anything a major shift in US markets that you're seeing 54:24 54 minutes, 24 seconds which could lead to potential growth in the exports business for us? 54:29 54 minutes, 29 seconds Uh Jimmy, can you repeat the first part of your question? what what what emissions legislation change what were you talking about? 54:36 54 minutes, 36 seconds So so I think a few days ago uh the president had revoked the basis of US climate regulations which ended some 54:44 54 minutes, 44 seconds vehicle emission standards over there and there was an appealment on the EV tax benefits the tax credits which the companies used to get over there. Uh so 54:53 54 minutes, 53 seconds if there's anything that you've heard from your US uh companies or any clients from there which which has some incremental knowledge of what's 55:02 55 minutes, 2 seconds happening over there, how the OEMs are thinking about EV transition over there. 55:08 55 minutes, 8 seconds Yeah. So very good question. I'm glad you brought it up. Um see the US has been u 55:16 55 minutes, 16 seconds uh and and it's also got to do with EV storage. EVs always had subsidies and that's the reason they were selling and now if you take the subsidies away they 55:25 55 minutes, 25 seconds don't become very attractive anymore right or they become less attractive and you're seeing this trend in both the US and Europe where people are moving back 55:33 55 minutes, 33 seconds like they buy an EV and after 2 3 years then they realize that the selling the resale value drops dramatically because nobody wants to buy an electric vehicle 55:43 55 minutes, 43 seconds uh with just 40% uh you know state of charge right um and that's prompted a lot of buyers to move back to the ICE 55:52 55 minutes, 52 seconds world, right? Which means either using, you know, petrol or a diesel engine, possibly hybrid. So, the hybridization 55:59 55 minutes, 59 seconds has actually found more uh support there. And I think uh in China also they're starting to see I talked to my colleagues in Teno China, they're also 56:07 56 minutes, 7 seconds seeing a slight kind of move to more like a compromise situation where it's neither full ice nor full EV, but like a 56:14 56 minutes, 14 seconds hybridization like either a plug-in or just like a mild hybrid, right? This is great news for us, right? This is great 56:21 56 minutes, 21 seconds news for us because the whole point of Apollo's takeover of Tentacle 3 4 years ago was the contrarian strategy that EV 56:29 56 minutes, 29 seconds is not going to completely rule the world and destroy everybody. It's never going to happen because there are so many things that are uh that run counter 56:36 56 minutes, 36 seconds to uh EV success. Uh for example, China controls all the um the raw materials, 56:44 56 minutes, 44 seconds right? uh one country completely controlling that plus a lot of what happens if you know once you have to dispose of the lithium-ion battery what 56:53 56 minutes, 53 seconds happens there what do you do with much reduced state of charge if the uh you know after 2 years uh you know what what 57:01 57 minutes, 1 second is the resale value there's so many and also charging infrastructure right so there are so many different complications uh and especially that are 57:09 57 minutes, 9 seconds highlighted or heightened in in a country like India right so I think for us the announcement of Trump that he's going to move back to a more, you know, 57:17 57 minutes, 17 seconds uh, move to coal. I think recently just got an award or something two days ago for for for that. Uh, this just means good news for us. It means more exports 57:25 57 minutes, 25 seconds for us. Um, more growth for us. And again, we we're not going to shy away from constantly making sure that we work with the OEMs to keep making uh both 57:34 57 minutes, 34 seconds petrol and diesel engines very very uh efficient, right? Through through strong after treatment systems, etc. So we're 57:42 57 minutes, 42 seconds constantly innovating, working very closely with the OEMs on this. Does that answer your question, Jim? 57:49 57 minutes, 49 seconds Yes, but nothing currently from the from your from our guys in the US. Correct. 57:55 57 minutes, 55 seconds Yeah, because it's just the two or three days old. In fact, this just happened like a couple of days ago. But overall, I think if that's the direction, then 58:03 58 minutes, 3 seconds I'm just saying at just the based on the announcement, it it would mean good news for us. All right. All right. Thank you so much. 58:10 58 minutes, 10 seconds That's that's all for me. 58:15 58 minutes, 15 seconds Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to Mr. 58:22 58 minutes, 22 seconds Pali Singh, company security and compliance officer from Teneo Clean Air India Limited for closing comments. 58:29 58 minutes, 29 seconds Thank you Steve. Um ladies and gentlemen, on management's behalf, I would like to thank you for your continued interest in our in our 58:37 58 minutes, 37 seconds company. We appreciate your time and participation and look forward to speaking with you again in the next quarter. Thank you and have a good evening. 58:47 58 minutes, 47 seconds Thank you. On behalf of Teneo Clean Air India Limited, we thank you for joining today's call. This concludes the conference. You may now disconnect your lines. Thank you.