Thank you, team Chorus. Good morning and a warm welcome to everyone present on the call.

Thank you very much for sparing your valuable time and showing keen interest on the our concall request. Along with me, I have Mr.

Manesh Madeka, Chairman and Managing Director of the company, and team SGA, our investor relations advisors. I hope you have all received our investor deck by now.

Those who have not, they may check it on the website of stock exchanges where we have already uploaded. We entered in fiscal '27 having delivered a quarter that tells couple of stories at once.

Production that ran below its full potential for part of the quarter, and demand environment underneath it that stayed firm, and in some market, it got strengthened. Allow me to take you through the both this story in a brief.

Coming to quarter one of current fiscal, that is FY27, we would like to inform that revenue from operations recorded, came in at ₹304 crore, which is up by 4.3% precisely compared to quarter one of fiscal '26. Though this looks short of our guided growth, our order book through the quarter was healthy, and the constraint what we faced was not demand, it was an execution.

A shortage of labor on the shop floor meant we could not convert that order book into output at the pace we wanted to. We have already informed the said factor in our last call also, and it's a general phenomena in the first quarter, or maybe in the month of, particularly in the month of April, May, and till mid of June.

We are glad to report that the situation improved from June onwards, June '26 onwards, and by the quarter start from quarter two, that is FY20 quarter two of FY27, our operations were back to running normally. I would like to inform or pleased to inform that in month July '26, we recorded highest revenue since inception of our operations.

In quarter one, revenue from auto components grew by 13.5%, 13.50, compared to quarter one of FY26, amounting to ₹163 crore, while revenue from bearing rings, it got declined by 6% for comparing with the quarter one of fiscal '26, amounting to ₹118 crore. The bearing rings softens was softness was concentrated in industrial business or in industrial segment, particularly in the domestic and European market.

A area where an area where we have flagged our broader industry-wide stagnancy in the past, and it reflects same labor-driven output constraint that affected the quarter too. Auto components, on the other hand, continue to gain share within our overall mix, and shift towards higher value-added process products is a trend we expect to continue over the coming quarters.

Looking at the geographical segmental geographical mix rather, within each segment, our bearing ring remains predominantly a domestic, with export accounting for about 27% of the segment, means 77 78% 72 73% of our bearing ring business is from the domestic ground. It was the domestic facing portion that saw the softness this quarter.

Here also, I would like to mention that is mainly in the segment of industrial segment and high volume bigger size of components. There, we face a bit softness over there.

Auto components, by contracts contrast, is now a predominantly export-oriented business, with exports accounting for close to 72% of that segment's revenue, say 28% in the domestic front. That is the part of our portfolio that delivered the strongest growth in this quarter.

It is meaningful validation of the strategic shift we have been making deliberately, building out a higher value, export-facing precision machine components business alongside our traditional rings traditional bearing rings franchise. What stand out most in export is a change in customer behavior.

Buyers who had been a bit cautious and holding back through in fiscal '26 with a, a wait-and-watch mode as tariff uncertainty and certain adverse market factors played out, are now placing orders again with confidence. That shift matters because it tells us that demand overseas is genuinely picking up, and that the relationship we have built with these customers, these multinationals, over the years remain intact and are now translating back to the order flow.

As we had flagged and informed previously also, we have not lost single customer through the tariff disruption or even the war impact in European markets in the last year or even previous to last year. What we are seeing now is those very relationships beginning to convert back into meaningful volumes and revenues.

Coming to margin side, as you must have seen that gross margins for the quarter has came compared to has came up compared to fiscal '26, or on a quarter of quarter one of fiscal '26, reflecting both a favorable shift in product mix as well as disciplined raw material management and scientific production measures, cost-control areas at our plant level. EBITDA for the quarter was ₹69 crore, I'm not considering other income, which is up by 12% on comparing with the quarter one of fiscal '26, with EBITDA margin at a percentage of 22.6, which is up by 100 basis points again with comparing with the Q1 of FY26.

Profit after tax grew by 22% year-on-year to ₹60 crore, with PAT margin at 19.8%, again up by 290 90 basis points year-on-year basis. I want to emphasize that these margin expansion came through even in a quarter where our production was constrained because of labor and certain other matters.

As volumes normalize and our order book converts fully into output, our margin trajectory should hold, and in fact, we expect it to strengthen further as value-added process products continue to grow as a share of our revenue mix. This is the third consecutive quarter of a year-on-year margin of a year-on-year margin expansion for us, and it reflects a structural improvement in our businesses.

On a capital allocation front, we followed through this quarter on a commitment what we made back in April '26. Would like to inform that our ₹180 crore buyback of 1 crore equity shares concluded during the quarter, with the promoter group choosing not to participate, so that the full benefit flowed directly to non-promoter shareholders.

As of today, we are fully debt-free and clear of all legacy CDR obligations. Moreover, we are carrying cash surpluses.

We see this buyback as the first of many steps in returning value to our esteemed shareholders in a business that today carries a far cleaner capital structure than it has at any point in its history. Looking ahead to the fiscal '27 for the remaining part, the trends we spoke about in May are playing out largely as we expected.

With the labor situation now fully normalized, we expect Q2 FY27 to reflect better strength of our order book without the execution constraint that held back this quarter's output. The US market is coming back, with customers reengaging after a prolonged period of caution.

Europe continues to fire on the back of our expanding automotive components presence there, and our domestic business, while soft this quarter in the industrial bearing ring segments, retains strong underlying momentum. In the bearing rings with an end-use of automotive application, the bearing rings what we are supplying with an end-use of automotive application, we have we have hold our positions and except one customer, other customers have increased their wallet share and continues to add incremental volumes and new components from our existing customer with a steady pace of existing program.

Both this thing taken together, we remain confident in the mid-teen revenue growth guidance what we have given for fiscal '27. This quarter's headline number does not fully reflect that trajectory for the reasons I have just walked through, but the fundamentals underneath it, a healthy order book, improving product mix, expanding margins, reengaging export customers, and a clean debt-free balance sheet gives us a confidence in the year ahead.

We are also continuing to build for the medium term. The new customer programs onboarded over the past year are progressing well, and we expect these to ramp up further as the year progresses.

Fiscal '26, we got a lesson, or rather it taught us that no business is immune to external disruption, but that a business built on strong fundamentals, deep customer relationship, and operational discipline can absorb the disruption and come out stronger. Q1 of FY27 has, in its own way, reinforced the same lesson from a different angle.

Even an internal operational constraint like a temporary labor shortage did not dent the underlying strength of our order book, our margins, our capabilities, and our customer relationships. We resolved it, and we moved on.

As I look ahead to the rest of fiscal '27, I see Rolex Rings as a company that is well-capitalized, well-positioned, and well-prepared for the next phase of growth. Our ambition remains unchanged: to be the most trusted precision forging partner for the world's leading bearing and automotive tier-one, tier-two, and OEMs too.

We are well on our way. With these words, I would like to pause on my comment.

Again, I would like to thank all the participant participants who have joined. I request team Chorus and team SGA that we can open the session for Q&A.

Sir. Thank you for taking my question, and congratulations on a healthy set of numbers.

Sir, first question just pertains to in terms of the numbers, the split which you normally give, the export bearing rings, export auto, domestic bearing rings. Just wanted that split for Q1 and YoY, Q1 FY26 as well.

Yeah. Jason,

kindly note down. Domestic bearing ring for the Q1 FY27, it is ₹86 crore.

Domestic auto components, rounding up to ₹45 crore. Export bearing rings, it's ₹32 crore.

Export auto components, ₹118 crore, with a scrap and export incentive of ₹23.2 crore. You need same for the Q1 of FY26, right?

That's right. Yes, sir.

Okay.

In domestic bearing ring, it was ₹86 crore in Q1 of sorry, it was ₹90 crore in Q1 of FY26. Domestic auto component, it was ₹53 crore.

Export bearing ring, it was ₹35 crore. Export auto component, it was ₹90 crore, and ₹21 crore of scrap and export incentives.

Okay.

Sure. Thank you so much for that, sir.

Sir, next question, just wanted to understand, is there any reason for the shortage of labor on the shop floor? Just wanted to know what was the exact reason behind this.

No, there is no specific reason because it's a general phenomena, and it's a hot summer in our region, and we do have good amount of out-state labor force also. It's a vacation period as well as wedding season, and it's an agriculture, what you say, crop season where these people used to visit their native, and they took more than 15, 20 days, 30 days, or something like that.

These are the quite common phenomena in our industries, or rather overall in this thing. Why we are facing temporarily because of that, these all are our semi-skilled workers and spent a good amount of time with the company, so that was the only reason.

Sure, sir. Sir, next question, we've been speaking about the slowdown in the bearings business.

You spoke about some slowdown in the industrial and the large-sized business. Just wanted to know, how do you see it going ahead?

Do you see the slowdown continuing, or do you see any improvement going ahead for this business? For the bearings, I'm talking about, in particular.

Yes, yes. As I told you, in the month of July, it has been improved, and, as I told you that because of certain this production floor constraint, we were not able to execute to some extent also.

The guidance what we are getting from our customers in the particular industrial segment for the next couple of quarters, it would be having a marginal growth. On the other side of the bearing rings, that is automotive bearing ring business, we are getting good amount of positive turnaround.

Okay. Sir.

Fair okay, got it. Sir, again, in terms of auto components, you've been doing very, very well.

That's commendable performance. Just wanted to know, what are the clients saying, let's say Allison or GETRAG, and what is the feedback from their side for increasing sourcing from Rolex?

How's the outlook for that?

See, as I told you, you named couple of our customers. One of our customer which was gone down by almost 35, 40% in the fiscal '26 compared to fiscal '25, that is again on the track, or rather recovered by almost more than 30%.

We are almost on the track of fiscal '25 numbers with that US customer, so that is definitely is covering back. For the other customer, where we got a new order for the new plants, incremental order for the existing programs also, and certain programs what we have started gradually in the last quarter of last fiscal, that is also being ramped up in this quarter and further in next three quarters.

Maybe one or two plant, again, in the third quarter, we are going to start the supply. We are getting quite positive and very much confident on these particularly customers, and we are getting good response and they are offering additional volumes, new programs, on.

That's good, sir.

Okay.

Okay. Sir, just in terms of the revenue mix in the presentation, there's that 8% other component, you have bearings and bearing rings, of course, auto components, and 8% often others.

Sir, what does that 8% pertain to?

That is my scrap revenue.

That's pure scrap revenue. Okay.

Which is that domestic part. Yes.

Sure. Sir, also in terms of you've been speaking about the tariffs, the duty drawback, some refunds going to come in from the US with the HS codes and everything.

Has something come in this quarter? What's the status of that?

Yes, it has already started and we successfully registered with the US customs for authority. Though it has not started in full swing, some marginal amount what we have received as a US custom duty refund, which has already accounted in this number.

The major chunk is yet to receive.

Okay. Just finally, sir, wanted to understand in terms of, of course you spoke about a lot of improvements, tariffs is behind us, macro, etc., also is improving.

Sir, any guidance for '27, '28 margins as well as revenue? You did speak about mid-teen, but I wanted '27 and '28 and margins as well.

Margins, when you speak about, core margins, not including other income.

As we have already mentioned that while telling numbers, operating numbers to you people, we are not considering this other income. The EBITDA margin what we have recorded is 21 and 21.5 in this particular quarter, June '26.

We expect, let me tell you conservatively, we expect that would be in the range of 21 to 22% in this fiscal FY27 conservatively. We will be having even a marginal growth, subject to our increasing our operations, then it will have a significant positive upward mark on our margins.

On the revenue part, as I have indicated that mid-teen we are a bit confident till now for the fiscal '27, and maybe more than mid-teen or coming to near to the 20% number for the fiscal '28.

Sure. Thank you so much for answering my questions.

Thank you, sir. Thank you.

Thank you, Jason.

Yeah. Hi, sir.

Good morning, sir. Congrats on a strong set of margins.

On the auto component export side, so, sir, our business wasn't declined for the past 2, 3 years because of Allison. Right now, will Allison reach 250 cr levels in FY27?

Because I think it fell down from 290, 300 in that range. How much recovery will happen?

Secondly, we had this Allison acquiring Dana, we expected that because we didn't supply to Dana before, but now we wanted to supply. Has that started?

See, on the first part of your question, you asked me about this revival of Allison. Let me tell you the numbers what you have told, till in these 4 months of business, if I'm going to annualize that thing, it has already crossed the number what you have mentioned.

Right? We are almost touching to the number what we had in fiscal '25.

Right? On their acquisition, as far as Dana business is concerned, we had a

very

senior-level meeting with the Dana management along with the Allison, and they are very much eager, or rather they are very much inclining to explore the potentials for the higher size or higher volume kind of product with Rolex. The development and all these things, it has gradually started, or rather initial discussions, initial dialogues have been initiated.

On the revenue front, or rather coming the same on the paper, it will take maybe from now, maybe 12 to 18 months minimum.

In FY27, can we touch 500 cr in auto component exports? Is that on the cards?

FY27, yeah, 500 crore even I had an auto component export in the March '26 only. It would be more than that.

I'm asking for only export of auto components, not bearing rings, without bearing rings. Only auto component exports in FY26 was 350 cr.

This Oh, you are talking only for the exports market, not overall auto component.

Auto components exports last year, '26, mein 350 cr. Will it

Yes.

Can it touch 500 cr in '27?

Not 500, but I'm a bit confident to cross 425, or in between 425 to 450.

Sir, you have already done close to 117 cr in this quarter. Even if I just annualize this, that only will take you above 450.

So

Yes,

4

450, I'm telling 450 as of now.

Got it. Sir, due to this labor impact, how much revenue was lost, and was this revenue lost or was it deferred?

No, no, no. It's a temporary hold or temporary, not even discontinue, but the lesser amount of production output is there.

It's nothing what we lost or what we this thing. It might be differ by month or something like that only.

There is no loss of business, and then we try to manage much of the things with the extra labor by managing the situation. Because of environmental front and all these things, even the output capacity of human being, it was bit less particularly in the month of April, May, which is very hot in our region.

Yes. Sir, on the domestic auto components business has fallen close to 13% year-on-year.

Why is this because Stellantis is going through a slowdown, and how is our business with Mahindra, and what is the outlook for this portion for this year and next year? See,

domestic auto component what it was there with me in the last year, it was somewhere about ₹52 crore, and here it is ₹45 crore in this Q1 of FY27. That is mainly because of the deferring of certain production plan of couple of OEM of automotive.

Stellantis, no, again, they started with these revenue, though it has not at that level what we had in last year, but gradually it is picking up and it will be on track what we had in '25 or even better than that.

Got it. Sir, since this year, I'm expecting that auto component exports will be a higher share, and the margins there are the highest, can the margins be closer to 22% for this year and going forward next year, they could increase by 50 bps or so?

Is that something that's possible?

Definitely, the second portion, 50 basis points up on the FY27 number would be there in FY28. As I indicated earlier also that I would like to be on a number in between 21 to 22% because there are certain abnormal factors also affecting which will, as you better know, because of this Hormuz and because of this Europe Iran-US this thing, the ocean freight and the availability of vessel, ocean freight to US, etc., has gone up more than two times or 2.5 to 3 times.

For the time being, it may impact to some extent also. That's why, conservatively, I would like to be there in between 21 to 22.

Got it. Sir, on the bearing rings export side, this quarter, business fell by close to 10%.

Is this the Timken continued weakness is affecting us, or is it something else?

Major factor is that.

When do we expect this to rebound and it start growing or staying flat because it has been falling for quite some time now?

What we are doing, or rather our strategy is to develop new customers and we don't want to depend on a particular group or a particular plant as far as this business is concerned. No doubt it was a huge business, and unfortunately, at the customer level, their business has also significantly reduced.

Our strategy is to develop new customers for the bearing ring segment, whether it is in auto or in industrial segment in overseas market particularly, because in domestic, major players are already there in my customer basket. We are trying to expand our base in US and Europe, particularly in Europe where we had a good strength on auto side.

There, we would like to develop further on the bearing ring business also. I don't want to be dependent on a one particular customer or group of customers, or like that.

Got it. Sir, just a last bookkeeping question.

For Q1 FY26, can you give us the scrap revenue, export incentive, and end-user mix?

For which period you have asked for?

For this quarter, this quarter.

I told you, it is ₹23 crore something.

No, I was asking the breakup of the scrap and export.

Scrap is somewhere about ₹20 crore, and export incentive is near to ₹3 crore. The split in terms of end application, 50-odd percentage is there towards passenger vehicle segment, 20-odd percentage is commercial vehicle and heavy-duty vehicles, then 14 to 16% it is there on the industrial segment, 7-odd percentage is there in EV and hybrid, and so on.

Sir. Got it.

Thank you and all the best.

Thank you.

Hello.

Yeah.

Am I audible, sir?

Yes.

Yes. Thank you so much, sir, for this opportunity.

Couple of questions. Firstly, sir, obviously, you mentioned conservatively because of the ocean freight and the geopolitical situation currently.

Going ahead, sir, with our export mix increasing and our product mix shifting more towards auto components, what sort of steady-state margins are you targeting internally going ahead? See,

first of all, I would like to tell you, whether it is auto component or a new bearing ring business, wherever the more value-added processes are there, even in the bearing ring business also, certain bearing rings for the EV hybrid vehicles or a new critical bearing rings, we have a same kind of or similar kind of margins. It's not the only auto components where we'll be having this margin.

Margin trajectory, as I indicated and replied in our earlier questions also, that considering all this inflationary trend in entire, or rather in fuel market, then this freight portion, and other things which having a cascading impact on our production cost structure, sometimes it is not feasible, possible, or a practical to approach customer for each and every price hike or something like that, because our contract price or our programs, our commitments, is generally not on the value-added part. It is always on the raw material and forex what it is fluctuation is passed through or to recover.

That's why, conservatively, I would like to be there in between 21 to 22, because the simple reason, in the month end of June or mid of June, the ocean freight has started shooting up. We have a good amount of export in US, and that ocean freight has significantly increased.

Even at this level by paying that much amount, the availability of container for a particular vessel is a bit difficult. That's why our standard towards margin is maybe near to 21 and so.

Okay. Fair enough, sir.

Sir, further, my next question is on what are our current utilization level?

We are at the same 65% 63 to 65% utilization, you can say.

What are we targeting by this year-end?

We target to touch somewhere about 72% 70 70%, 72%. Yes.

Sir. Sir, given our mid-teens growth, even if I assume 15% sort of growth, it'll be around 1,300 cr top line, what's that mix are you looking at, how much will be the contribution from the auto segment and from the bearing segment?

Could you provide some guidance on that?

Sorry, your voice was not proper. Can you come again?

Can you hear me now?

Yes.

If for a mid-teens growth, assuming 15% sort of growth if we do for this year, it'll be around 1,300 cr. Out of that, could you help me with how much will that mix be between from the auto segment and from the bearing segment?

For this particular fiscal, 65 to 70% would be from auto components.

Out of that, can you give me a percentage of how much would that be from exports?

Again, of that 70%, more than 75% it is from exports. Sir,

this mix, will this be the steady-state level or so what is the ideal steady-state mix that we target between these two segments? See,

my target, we don't have specific target that whatever the new order where my facility suits to product, I do have available capacity. If I'll be getting a good quantum of the order, program size of 5 to 7 years with a desired level of margin, I'll be happy to accept whether it is bearing ring or auto components, because my capacity, or rather the facilities, equipments, are very much fungible and we are able to produce auto components as well as rings, both.

What is the capex, sir, that we target for this year and for the next year?

In the range of ₹30 to ₹40 crore. On an annual basis.

No, no, on the annual basis. Year

on

year.

Okay. That is it, sir, from my side.

Thank you.

Hiren. Hiren bhai, one question on this labor shortage.

Given that this is a seasonal factor, happens every year, maybe this quarter it was a little worse than usual. Any permanent fixes that you are thinking of?

What can we do to mitigate the risk that this does not surprise us in future? See,

as I mentioned earlier, the labor force what we have, what we developed, or rather the age of the labor or service age with the company is quite at length, and we don't want to lose such skilled, or rather a team or labor which is very much acquainted with our this thing. We don't want to lose them, and we are trying to manage or to mitigate this situation by adding some temporary extra labor at a reasonable cost, or sometimes even on these part.

Let me tell you, this is a scenario for maybe 2, 2.5 months where we try to manage by working three shifts, by giving something extra or overtime, or maybe hiring a extra temporary labor. I don't want to lose my trained labor who are there with me for good amount of time.

Right.

Yeah.

Okay. This does not come at a cost, is what also I'm trying to understand.

In the sense that if you're paying extra, is there a margin impact and

For some time, but yeah, it is coming out with some additional cost, but what I'm looking on a long-term way, because the other people who went, or rather who will be coming back, that they are able to give me more quality output, and efficiency of them are quite better with compared to this temporary labor.

I see. Okay.

Thank you very much.

Yeah.

Thank you for the opportunity, sir, and congratulations for steady set of numbers. My first question is, sir, the company was facing vessel and container shortage on the export side, which was triggered by geopolitical conflict in Middle East.

Does that still persist or it has been resolved?

See, availability of container at proper cost is an issue. We, as we are committed to our customers, we are just trying to get the as many as containers at a reasonable.

As I told you earlier also that ocean freight is shooting up, and it is more than double or 2.5 times what generally it is. Still, we are able to trying to manage the availability of container.

Sometimes, availability of container in a particular vessel is an big issue as of now, because the what we got a remark or comment from shipping line that they are not getting vessel back to India because of certain other geopolitical reasons. I think it is

That means, sir, the issues still persist, you mean, sir, and that can spill over to Q2. Is that correct?

To some extent, yes.

Okay. Understood, sir.

My second question is, in the domestic bearing market, the automotive industry as a percentage of revenue has gone up and the industrial has gone down. What is the growth that we have seen in the automotive side and in the industrial side?

In terms of bearing rings, you're asking for?

Yes, sir. In terms of bearing.

See,

as I already told that particularly bearing rings in the industrial segment, we are getting some soften, or rather some stressed or reduced demand. In automotive application where the bearings are being used, there, we are getting good response, and few of our domestic customers are facing good amount of incremental numbers.

I don't foresee any downward or any kind on the contrary, it would be on a positive side, upward trend in the bearing ring segment too in automobile segment.

Sir. Understood.

Thank you so much, sir.

Thanks for opportunity, and congrats for a strong set of numbers, sir. Sir, my first question on the domestic auto component side, where we have seen a decline in this quarter, despite that very strong industry growth.

Just wanted to understand, is it because of the losing some business or is there any some production constraint?

None of these things are that losing the business or any production constraint, except that small portion of labor force, etc. Otherwise, there is no constraint, and it's not that what we lose the business.

It is the OEM of automotive who are changing their design or maybe their production has gone down to some extent in this first quarter. That's why it is bit on pressure.

We expect that couple of tier-one tier-two customers to whom we are supplying, in turn, they are supplying to their principals at overseas. That will gaining up.

In the second quarter onwards, we would be having a better numbers as far as domestic auto component is concerned.

Got it. Is this just wanted to know how is the current business update with the Timken?

Are we started to recover the some share of business from the Timken, or is still we are in the same page?

No. There is no much change as far as the business with the particular customer is concerned.

As I again indicated in I again telling you that, as indicated, that we are trying to get the new customer, get the new this thing, which will be giving better numbers or which will giving better conversion on bearing ring part for the domestic as well as overseas. We are also approaching, or rather the certain plants of our existing customer who are yet not on in my customer basket, that also we are exploring and the things are moving on.

We will be getting that response maybe down the line couple of quarters.

Thank you, sir. That's all from my side.

Thank you.

Hello, sir. Good set of numbers, steady set.

I had a question actually. The point was, I think it's mentioned, I'll refer to the fact that there's ocean freight and transportation cost due to this current environment.

I wanted to understand, is there a scope for us to move the exports to a ex-works model where logistics are borne maybe by the customers? I understand we have a presence and warehousing in the US, but is there a scope to restructure this to reduce this cost and protect the margins?

No, it is difficult to change the current program terms from say DAP or DDP to ex-works or something like that. What we will be doing, or rather what we are confident that in certain kind of abnormal situations, our customers are helping us.

In past, it was also there when this kind of significant price increase on ocean freight was there, which is more than three times, four times. At that point of time, our customers have turned out and they helped us and they reimbursed, or rather one customer has already changed the import delivery terms for the time being.

Same here also, we have already started approaching our customers, and they are also showing their positive indication that they will be consider our request as far as this ocean freight hike is concerned. I'm a bit confident to getting back certain reimbursement of these kind of high expenditure and what we've incurred in the first quarter or maybe June onwards, and to some extent, I'll be able to pass it in the coming quarters.

That kind of positive response we have already got it from our customers, where majority of one customer group where we are paying this ocean freight in US, which is a major chunk. Europe, it is still under control, but we have already initiated these dialogues with the customers also.

Got it. Got it, sir.

Sir, and second question was, our passenger exposure is great. I just wanted to understand the CV exposure.

I am assuming there must be a very good opportunity there also. As a percentage of the sales, that's almost little, it's not that high.

Is there scope, are we working there to get some bigger opportunities in the CV area?

Yes. See, as I mentioned earlier also, one of our customer has acquired a good amount of, or rather acquired a division of one particular global multinational of this commercial vehicle, heavy vehicle segment, where we are expecting good turnaround, because with that particular customer, we have a very good rapport, or rather business association for last 12 to 14 years.

Year on year, we are getting some kind of incremental. Definitely commercial vehicle and off-highway, heavy-duty vehicles is the segment where we are approaching with that customer as well as couple of new customer.

One customer is already almost on the verge of finalization in Europe, and another one with in US also we are talking with. Okay.

We expect that also some kind of growth. Yeah.

Okay.

Okay. Thank you.

Thank you for the opportunity. Sir, just wanted to understand on the industrial side that our end market has shrunk around 26% of revenue in '22 to 18% in '26.

Even as our PV has outgrown from 40 to 52%, and just wanted to understand, are we looking to increase more on the industrial side because, compared to auto, we are having the better margin over there? Similarly on the export side, what kind of opportunity we are getting on the industrial size side, as well as on the OEM side?

What's your focus toward going forward? Will be more on the OEM side, or will shifting toward on industrial side because of better margin?

See,

the loss or reduction in industrial segment of my overall business, it's mainly because of one customer group where at five or seven plants I'm supplying these kind of components, and there they got a huge reduction at their end and their cancellation of order, mainly in the Europe. That is the reason why this number has gone down.

We are in process, as I just replied in my earlier question also, that we are having dialogues with one of the very big auto customer in Europe for commercial vehicle and industrial segment products. As far as bearing rings is concerned, in domestic, one of our customers have specifically diversified their activities into industrial segment, and there we got a good inquiry and certain samples have already been submitted.

We are expecting turnaround over there also. Let me tell you, my concentration is to get the maximum, or rather incremental utilization of my capacity in terms of product range, in terms of segment and territory, volume of the business, overall revenue of the business, overall margin of the business.

On that base, I am very much concentrated. Definitely, we are concentrated on industrial products also, where the huge components are there.

We are also exploring certain untapped area. We have initiated certain kind of government registration and approvals for certain areas where we are yet not.

That is also another segment in industrial where we are approaching.

Great, sir. Understood.

Sir, just wanted to inquire about the raw material for the bearing, from where we are taking it?

They're from Indian steel plants.

Okay. Some of our competitor, they are quoting in that way that we are exporting steel from better countries, our quality of bearing is better than any other competitor.

We are getting higher price on the export front. Are we seeing any such kind of competition on the export front?

See,

competition is always there in all businesses. Here, my USP is my facility, my range of product, my precision level, the tooling department what we do have, the yield of the product, and the customer association.

Sir. Also, last question from my side, on any plan to enter into the aero and defense side going forward?

We have initiated certain steps, or rather certain registration, as I just indicated, for the defense era. Again, in aerospace, we explore, but there we got some kind of registration also, initial registration, initial approval certification also.

Coming to the revenue, it will take some good time. I am a bit hopeful for the defense, maybe down the line 12 months, we would be having something from defense.

There, we are working aggressively with some third party. Yes.

Great. Thank you so much, sir.

Hello. Am I audible?

Sir, I just have one question. I want to understand that, firstly, in the subsectors, where do you see the highest bearing demand growth coming from?

Secondly, is there a specific sort of shift in the types of products that they are demanding?

No, in the bearing ring, the segment is passenger vehicle, LCV where we are getting good demand or good incremental demand. The shifting, I am not getting your second part of your question.

I've recently noticed a lot of companies started talking about that in the bearing space overall, there is a demand shift towards large-sized bearings. Is there some sort of truth behind it?

The way it was expected, it has not there. It has not placed for.

Definitely, the big bearing manufacturers, global bearing manufacturers are moving slightly towards production of bigger size of bearings. That will not hamper or reduce the existing automobile or the smaller size of bearing where we are.

In this segment particularly, I am getting good amount of inquiry, and trial-and-run process are going with my existing customer having global presence. Okay.

What are the applications of these larger-sized bearing rings? Where is the highest demand for these coming from?

Those are mainly into industrial, into mechanical applications, windmills, and other critical equipments. Yes.

Are the margins on those rings higher than what the general auto industry caters to?

The margins on these kind of rings are better than the traditional bearing ring business, but because of having value-added and critical processes, and it is on the same line maybe on the auto components what we are able to generate.

Okay. That's it from my side.

Thank you.

Thank you.

Thank you for the opportunity. Sir, my question was more on the strategy side.

What we're expecting is, I think we'll be generating a lot of cash flow over the next 2 to 3 years. Since our utilization is still at 60% in this, we're going towards 72, and capex figures are around 30 to 40 crores only.

What is the strategy, how are we planning to use this cash? Is it some inorganic acquisitions or maybe in the defense, aerospace segment since we are planning to enter that?

Just wanted some clarity over there. See,

the first way what we are looking is to maybe certain distribution of profits to my shareholders, stakeholders, maybe as we have recently completed buyback of ₹180 crore. Apart from that, we may look for distributing dividend or maybe another round of buyback or something, that is what we might be looking for.

We are also looking for an inorganic growth, or maybe a kind of some association or some JV with the overseas player to be based in India, wherein the utilization of Rolex facilities will increase, and more value-added processes where the third party is having some kind of expertise and ready market available. That kind of association, that kind of JV what we are exploring, it is in a primary stage.

We have already appointed one global agency to explore this thing, and maybe down the line 6 to 9 months, we will be having something positive turnaround on that front. There also, we need to have an good amount of investment.

Our concentration, or rather our intention, to be based in India only as far as the production, or rather the value-added processes are concerned, because of all cost reduction, or rather the cost benefit as far as production process is concerned.

Just some follow-up on that. This JV or some tie-up that we're planning, would be in some different segment, or what are we missing in our processes as of now No, it's not a missing No, no.

It's not a missing. It's something more value-added on my existing product where the new party or the other party is already there and a ready market available with their OEMs where I'm not directly contact to those OEMs, because I'm not producing the components in a finished way or with those kind of value-added processes.

Now, the coming party or the new JV party is having certain expertise, certain experience, and good amount of facilities for having these kind of value-added process which will give me a benefit of a high precision level as well as the main thing is that readily available customer. As you know that, in our segment, even in certain other value-added processes with our products, it would be difficult to get a new customer or to start a business within 15 to 18 months' time, because of validation and all this audit activities.

Our concentration is to add more value-added processes where third party is having better expertise and ready market available. In certain part of overseas, you better know that because of their conversion cost and inflationary trend, they are not able to produce components or not able to manage the situation.

They are also inclined to going to in a country where the low-cost production is possible as their customers are readily available.

Right, sir. Just one last question on the defense side.

Could you elaborate more on the type of products that we're planning to explore?

It is very much primary, or rather it's quite well in advance that product segment where we are. We are closely working with one of the very senior consultant, and it has just recently started, maybe 1.5 months back.

Whatever the components which suits to our facility or what we are able to produce in our existing facility where these agencies are going to approve, on that basis, any round job product or a hot forging product, we want to concentrate.

All right, sir. Thank you.

Sir, thanks for taking my question again. Sir, in this quarter, we logged in a very strong growth in auto components, the export auto components, which is a 30% growth.

Sir, we did allude to a good number for this for whole annual year as well. Sir, just wanted to know what exactly are we doing differently here to log in such strong growth?

One thing you mentioned that the Allison revenue has seen a strong recovery, I'm sure that has played a part. What else are we doing to basically sustain this strong growth?

The new programs what we won in previous year, or rather in previous fiscal, it has started. The certain program which has started in last year, now it has ramped up further.

Existing customers have increased their volume in a significant way. That is the why the export business or export auto component has grown up.

Further, it will be, as I told that it is being ramped up further. Couple of new orders would be started in third quarter of this fiscal, further it would be added.

You're seeing good traction for this segment.

Yes. Definitely.

Sure.

Sure.

Sir, in terms of the 1.75 billion, we had placed a slide probably a year back or something for those orders coming in. Sir, any update on that, how is that flowed through, or have all the orders been recovered or some have been pushed back?

What's the status on that?

Except couple of orders from US, because of tariff and all these things, that entire project is on hold, or rather OEM has hold their this thing. Rest of the projects are coming back, not with the full traction, but it has already started with gradual improvement.

Others are in line. Even the new programs what we have won in fiscal '26, that has also been started.

Okay. Sir, in this refund duties, if anything comes through for the reduced tariff and etc., just a bookkeeping thing, will it be recorded in other income, or just give me some clarity on how it will be recorded, this refund, if any refund does come

in? You are talking for refund of export duty?

Yes,

yes, yes. Yes.

That would be added to revenue.

That will be added to revenue, not other income, you're saying?

No, no. It would be added to revenue.

It'll be added to revenue. Okay.

Yes.

Sir, just lastly one thing. Just you did speak about the JV, okay?

That JV, you're looking at to do in a allied area. It could be a different area as well, defense, aerospace.

It could be anything, but it's too premature or initial stages to talk about it right now. Is my understanding correct?

Very true. Yeah.

Okay. Sure.

That's all from my side. Thank you so much, sir.

On behalf of Rolex Rings management, I again thank you everyone for joining this concall. I hope we have been able to answer all your queries, questions, and concerns.

We look forward to such interactions in the future, and we hope to meet your expectations in the future too. In case you require any further details, you may contact us directly or to our investor advisors, SGA.

We will be delighted to revert. Once again, thank you very much to all of you.