Thanks, Shruti. On behalf of Anand Rathi Shares and Stock Brokers, I welcome you all to the Suprajit Engineering Q1 FY '27 results conference call.

I thank the management for taking time out for this call. From the management side, we have Mr.

Ajith Kumar Rai, the Founder and Chairman; Mr. N.S.

Mohan, MD and Group CEO; Mr. Akhilesh Rai, Director and Chief Strategy Officer; and Mr.

Medappa Gowda J., CFO and Company Secretary. I request Ajith sir and team to give an introductory review about the results, and then we can follow up with the Q&A session.

Over to you, sir.

Thank you, Mumuksh, and good morning to you all. Greetings from Suprajit.

Thank you for joining us for the Q1 call. As you all know, the Middle East conflict, the oil and commodity prices, trade restrictions, and shipping disruptions continue to be in play.

Global automotive and non-automotive business have been not growing. They also stayed muted.

India had a very good quarter in terms of the automotive numbers, with the sector growing at about 22%, and both passenger vehicle and two-wheeler segments had a solid double-digit growth. From our point of view, I think our team will talk briefly about how we performed, but on an operating level, I think we have had an exceptionally good quarter.

Consolidated revenue grew up by about 24%. EBITDA was up by nearly 57%.

We had highest ever quarterly operating revenue of 1,070 crores in this quarter. Standalone margins came under pressure, and Mohan will be walking through that as to what happened and how it's going to be a temporary phenomena for us.

Then we'll take on the questions after all our briefing is done from our team. I'll hand over to Medappa for a brief financial detail.

Medappa?

Yeah. Thank you, sir.

Good morning, everyone. The consolidated revenue for the quarter ended June 2026 was 1,070 crores, as against 863 crores for the corresponding previous year, recording a growth of 24%.

The consolidated operational EBITDA for the quarter ended June 2026 was 129 crores, as against 82 crores for the corresponding previous year, recording a growth of 57%. The standalone revenue for the quarter ended June 2026 was 470 crores, against 390 crores for the previous year, recording a growth of 20%.

The standalone operational EBITDA for the quarter ended June 2026 was 60 crores, against 61 crores for the corresponding previous year, recording a degrowth of 0.3%. The total debt level was 776 crores as on June 2026.

Surplus cash balance was 243 crores as on June 2026, invested in mutual funds and bonds. For further queries, if any, you can connect with me even after the call.

Thank you very much.

Mohan?

A very good morning. Thank you, Medappa, also.

Let's start with the Global Cables and Mechatronics, what we call it as GCM now, which used to be formerly called as SCD or Suprajit Controls Division. The revenue went up by 27%, almost 28%, and EBITDA moved very smartly from 5.8% to 12.6%.

This has been an outcome of the global restructuring that we have been explaining over the last few quarters. Thank you for all your patience, and we are finally seeing the results here.

GCM continues to work with our customers and also with some of the governments for a fair recovery of the tariffs, particularly in USA. We have certain VAT recoveries in China, Canada, and Germany, which was a part of the acquisitions that we have done there.

In terms of new business, we are ramping up new projects both in China and in India. The China, we have one of the largest OEMs that we are now working with, and we are going to launch the products with them, is a Chinese OEM.

Again, in India, we are launching quite a few lines and products for a large US OEM who is specifically looking to building a resilient supply chain, as they describe it. These are all driving good volumes at the GCM.

This quarter was very strong for new business wins also, and we have recorded business wins across India, Mexico, China, which, I think, is showing the customers' various preferences, particularly with the kind of global footprint that we have today. With this, I move to India.

Before I get into the specifics, let me just talk about something in general. First things first, I think we need to recognize that we have strong headwinds that has hit us not in terms of the market.

Market is doing good. The raw material prices are really gone quite high.

To compound with that, what we have had is an increase in employee cost. This happened, as in the NCR region, all those unrest happened, and elections happened.

Therefore, we had a lot of migration of labor going back to vote in their constituency. Therefore, these were the kind of headwinds we faced.

While we have mechanisms with our customers to tackle with the material cost increases, employee cost increase has been a different animal for us. For the first time in many years, we have approached the customers to pass this on too.

Quite a few customers understand this pain point, and some of them have already agreed to make amends. I am sure that we should be able to see reason in the industry and make good of it net of the productivity measures that we are going to take.

Having said that, let me start now with the specifics. Now I move to India Cable and Mechatronics, or ICM, which you used to call it as DCD earlier.

Revenues went up by almost 21%. This is broad-based.

If you look at it OEM, aftermarket, everything put together. EBITDA grew only by 4.2%, with the margins down from almost 15% to 13%.

This was primarily due to the cost pressures that I mentioned to you. In our opinion, this is very clearly a timing problem.

We haven't yet passed through all these raw material and wage increases to the customer, and the process will get completed in the coming quarter, and the margins will recover. Our braking products, we are moving very well, and on a small base, a relatively smaller base, but on a long journey, it always starts with a small step.

The CBS revenues went up by 110%. Brake shoes and brake pads went up by around 80%.

I think it's a good start in our braking area. Moving over to Phoenix Lighting and Electricals, or PLE, what we used to call as PLD earlier, our revenues went up by 5.4%, but EBITDAs went down by 45%.

Margins went down 2.8% to 6.7%, primarily due to delayed price increases and also in particularly the aftermarket business. New prices are now in effect, and we expect a recovery going forward in Q2, Q3.

Geopolitics in Middle East still remains soft. On a positive side, we have started ramping up deliveries to one of the largest retailers in US, who awarded significant additional business.

Overall, while we look at a damp results in Phoenix Lighting and Electricals, we look at that brightening going forward. With this, I'm going to hand it over to Akhilesh to take us through Sensors, Electronics, Displays and Technology Center.

Over to you, Akhilesh.

Yeah. Thank you, Mohan, and good morning, everyone.

From the Sensors and Electronics and Displays division had a very strong quarter. Revenue is up 48%, EBITDA up 100%, margins close to double-digit.

This is because of a lot of new projects that ramped up very well in the quarter and will be continuing to ramp up. A lot of strength is in the digital clusters and electronic throttle grip area, where that is driving the growth of the business.

We also have a very good pipeline of new wins, which is why we are now on a war footing, expanding capacity of our electronics division to to take cater to this increased demand and our pipeline. SED has also picked up a lot of good awards worth noting.

Firstly, from Mahindra Last Mile Mobility, we got an award for our extraordinary efforts in ramping up the throttle supplies that we had this year. This is all because of the rare earth curbs that were put on India, and we had developed a a rare earth-free throttle, they had to very quickly move to Suprajit, and that ramp up was extremely difficult this year, but we managed successfully, and we have now won further businesses with Mahindra.

Similarly, we also, on operations, continue to have excellence in operations as well, and that's shown with the ACMA Manufacturing Excellence Award, which SED won this year this quarter. Coming to STC, because SDS is now part of GCM, I won't be covering it.

It is already covered with Mohan under GCM. Coming to STC, it's, of course, is our R&D engine, continues to support a lot of projects, including the ABS and sunroof cable projects, which are now progressing towards progressing well.

STC and ICM have jointly picked picked up the Ather's Most Innovative Supplier Award, really showing the kind of capability that we're building as a true technology provider in India. The new STC building is on track now for completion in Q3, and we would look forward to hosting our investors there sometime.

General updates, I think we also have won a lot of good awards from Bajaj, JIPM TPM Excellence Award. TVS Motors gave us a Platinum Award for our TPM process as well, and those show that we continue to have great support from all our customers, whether it's ICE or EV.

With that, over to you, Chairman.

Thank you, Akhilesh. Just to sum up, I think the GCM restructuring is completed, and the numbers of the quarter clearly show that the restructuring has yielded the right results for us.

ICM and PLE margin pressure, as Mohan has explained, it's a timing issue and a price pass-through, and we expect that to be recovering well in this and the next quarter. Despite all these things, the guidance that we gave in our press release dated 25th May 2026 still holds for the year.

I don't think there is any concern on meeting the guidance that we have already set out. Thank you all for joining.

Now I hand over to Shruti at Chorus to start organizing the call and the questions. Thank you.

Yeah. Hi.

Am I audible?

Yes, you are, Viraj.

Yeah. Hi, sir.

Congratulations on a decent set of numbers in a very volatile environment. Just a couple of questions.

First is on the GCM. If you look at the console numbers also and the segmentals which you gave, the margin which we had this quarter, was there any one-off in terms of write-backs or any FX element in this?

In operational results, there is no.

GCM, whatever the operational number that we have set out, there isn't anything that is a one-off number in that. There may be small one-offs, but nothing that is material, no.

Because if you look at the console margin, or if you look at the console gross margin, contribution margin first, we've seen a very healthy expansion, given this is despite the pressure we have seen on the RM in the standalone of the India business. Also considering that the raw material environment has been very inflationary.

Despite that, we've seen a very healthy gross margin in the console. I was assuming that in the subsidiaries of the global business, we've seen a very healthy expansion in contribution margin.

I'm just trying to understand what is driving this?

I think one is, please understand, the restructuring has made our operations very tight, and it is much leaner now compared to what it was earlier. That is number one.

Number two, there is a top-line growth of whatever 20-plus percent. Now, automatically, when the operations are tight and lean and efficient, and the top line grows, it automatically drops into the gross margins, no?

Please also note, during the course of last year, we have initiated quite a few cost improvement projects within the group, globally. That also has had its effects.

There is nothing one-off in this, actually. It is an improvement in margins, yes.

Okay. This margin of 12%, 12.5% which we earned this quarter, this is what should broadly sustain?

We did mention about 10.5%. I think 10% to 10.5% to 12% is what we said in the beginning of the year.

At this moment, it is at about 12-plus percent. I would still stick to my guidance that we have given for GCM at whatever 10% to 12%.

Again, it depends upon the product mixes as we go forward, new projects are getting launched, we have to actually see how the margins are. But 10% to 12% at GCM, it is very much on the cards.

Right now, it is on the higher side a little bit, yeah.

Okay. Two words on the India business.

See, I understand there was a raw material impact and the wage inflation. Typically, do OEs, they do give the escalation from the wage impact, or do you see any continued impact of that in coming quarters?

Honestly, we are in discussion with the customers. I think the pass-through of materials is not an issue.

Pass-through of wage increases, which has been significant, particularly in the northern region, is pretty significant. I think customers understand our view.

Some of them have agreed to pay. Some of them are still dilly-dallying.

That's why I said it takes one or two quarters to convince this part of the increment. Having said that, we are also working on a lot of cost reduction within the organization.

My view is that by Q2, Q3, let's say, latest, we should be recovering most of that lost 100 basis points here and there on the wage.

Okay. That's all from my side.

Thank you.

Hello. Am I audible?

Yes.

Sir, congrats on a great set of numbers, and thanks for the opportunity. Sir, my first question is, will it be possible to share separately the revenue contribution and EBITDA margin for SCS in Q1?

No, we have very clearly said last year itself, end of the year, even when we acquired itself, that SCS will be separately disclosed for a year till March this year just to show how the progress we have done post-acquisition. That it will turn EBITDA positive.

Once that is done, we have said that we are going to combine that in Global Cables and Mechatronics. The reason is simple.

They all work in tandem with each other. Now the names of SCS, LDC, Wescon, they all vanish from the scene.

They are all acquisition entities, acquisition names. Today, GCM operates as a single entity as far as we are concerned.

There are entities within GCM which will disclose their numbers end of the year, which you'll get to see. It has got no meaning, actually, because the way we have restructured is such a way that Wescon entity has been shut down and merged with LDC.

SCS in Germany has been restructured. The warehouse of SCS has moved to old LDC.

There are so many things have happened. Separately disclosing has got no meaning anymore, which we have explained earlier concalls also.

It will be under GCM.

Got it, sir. Sir, the very strong revenue growth of eight 28% in GCM, can you share some perspective on what kind of growth you expect for the rest of the financial year in GCM, yeah?

Let me also clarify a little bit. I think the second tranche of SCS Canada and China happened in May.

We didn't have the revenue of April and May of the second tranche of SCS last year. Actually, optically, the number of 27% I must state that is not entirely right.

I think if you offset those two months' revenues, the growth is around 23% or so, actually, because the acquisition completed end of May last year. There's a slight variation is there.

Having said that, it's still a very good growth. What we are seeing from at least a month's number that we see as of July, it is still very strong.

August is a month where, of course, it's the same thing for last year also, is a month of holidays in Europe and most of the places, whether the revenue growth will be there or not compared to first quarter, I do not know. Still strong double-digit growth for this quarter also for GCM.

Sir. Sir, my last question is the other income for Q1 compared to Q1 last financial year, that has seen a sharp drop.

Can you explain the composition and yeah.

The compositions are there are multi. I think there are so many things, but I will summarize this way.

There are few elements in it. One is restatement of our, let's say, loans across our divisions.

It gets restated. We have, quarter-end creditors and debtors, which is in different different currencies.

That gets restated. There is also forward covers that we have made.

There are certain portion of the forward covers which does not go through the balance sheet. It comes into the, P&L.

There is also some other incomes that accrue. For example, last year, we had some subsidy came into Morocco, which is not there this year.

These four, five elements, if you see last year from the beginning of last year to end of the last year, the dollar rupee-dollar, rupee-euro, all was very positive in terms of change. That's why you saw a large number end of last year.

Since March now, it is more or less stable, so that fluctuation isn't there, there is no delta there. That's why that amount for the first quarter is much smaller.

Got that. Thanks for that clarification.

Sir, my final question before I get back in the queue. Sir, in the SED division, can you share some light on what is driving the growth and is it mainly driven by the digital cluster business, and what kind of new business wins are we getting in that?

Mohan, will you answer that question?

Sure. We need to break it down into three major product groups.

One, I would call it as display systems, that is instrument clusters. Second one, I would call it as actuators and sensors.

The third one, specifically, within sensor, it could be the throttle position sensor, or TPS, as we call it. On around the three counts, we are seeing growth.

We are seeing growth happening, and it is not just across one customer. We have got a couple of customers.

In fact, there is one problem, and it's a good problem to have. This month and next month is multiple launches.

I am facing about six launches in my plant with various customers. Therefore, is it a problem?

The answer is yes, but it's a good problem to have. Are we gaining traction on all these product groups?

The answer is yes, with multiple customers.

To add to what Mohan said, just as a matter of general information, I think July has been an exceptionally good month at electronics division clocking the highest sales, and I think the trend seems to be continuing at the moment.

Perfect. Thanks.

That's all from my side.

Sure.

Yeah. Hi.

Congratulations, sir, on a good set of numbers. I think some good delivery from last four to eight quarters what the efforts we have taken.

Looking at your presentation, the FAQs clearly highlight one thing that our product portfolio today do not cater the EV powertrain in a very significant way, while the market is moving in a direction at least in two- or three-wheelers and PVs where currently a large part of the growth is being driven over there. How is the management thinking in terms of catering to this journey of EV right now?

Organically, how are we placed, and if I missed out any of your products which are not there in presentation? How should we think about our participation in this growth phase of EV?

I'll ask Akhilesh to answer this. Akhilesh, on our EV journey and what we are doing and what are the products that's going in?

Sure. Of course, we are very much and very deeply involved with many EV customers.

I would say, EV has been a great great driver of our growth, especially at SED, but also in our ICM division. I understand your question is just around the drivetrain.

We don't specifically look at the drivetrain itself. We look at very agnostic products that will support EVs and non-EV programs.

Please understand that drivetrain makes a vehicle go forward, we also need to stop that vehicle. Our focus has been on the stopping side and looking at braking as a key technology going forward.

Because EVs, just like the drivetrain is changed, also the requirement of the braking is changing, and we are in the right place at the right time with a lot of good technologies in braking to support this change. I think that's why, for example, Ather has given an innovation award, and they gave us their key braking system products.

It is because of this kind of knowledge and technology that we're building. I think Ather, as is the well-renowned technology name in the EV industry in India.

Similarly, we supply to all the new-age EV brands for some of our products. It depends on whether it's clusters or actuators or braking products or even our core cable products.

We're still supplying to practically all the EV players in India.

Sure. Can you can you help us, how the content of braking or actuation products would have, or is it how different it is for EVs versus ICE in whatever customers we are catering to?

The content per vehicle, for the most part, is the same in terms of EV versus ICE. Because we're going from our core product of 100 rupee cable to a product of braking, which could be anything from 400 rupee CBS to 1,500 rupee, 2,000 rupee brake systems, or from speedometer cables to digital clusters, which can again span from 700, 800 rupees to 7,000 rupees depending on the cluster.

Each of our product lines are increasing by at least 3 to 4, 5x in terms of price that we sell to our customers. In terms of whether EV and ICE, there is no real difference.

These EV or ICE could pick any of these products going forward.

I think just to add on what Akhilesh has said, I think it's important to understand if between ICM and SED, both are significantly in the two-wheeler kind of space. If you add them together, the kind of growth we had is ahead of the automotive industry growth.

What I'm trying to say is that a couple of years ago, we have sort of said that some part of our cable portfolio may become or change over to something else. At the same time, we have said the content per vehicle will increase.

We still hold the same view. Whether it is ICE, whether it is EV, our overall content in the two-wheeler per vehicle, I think it's only increasing, as we see it now.

Great, great. That was helpful.

I'll fall back in the queue. Thank you.

Yeah. Thank you for the opportunity.

I just have a couple of questions. One is on the GCM business.

Is there an element of forex which would have come in with respect to enhancing your growth rates or if you could just provide what could be a constant currency kind of growth rate which we would have experienced in Q1?

As Gokul, we're not been announcing the constant currency rate for all these because there are so many multi-currencies involved. There would be some.

I would not deny that because in the last quarter, at least, there has not been a much change in the in no significant change in the rate, whereas I think during the course of last year, there has been an increase in dollar-rupee conversion significantly. I think now it has been around whatever 95, 96 has been more or less stable.

I think that would be the rate at which it has been used.

Right. Any tariff recoveries happened in this quarter?

Yeah. Please understand, tariff recovery is a double-edged sword.

If the customer has given the tariff relief to us, we'll have to give it back to them. If they have not given it, that is the only thing that we can recover.

As we have always said, most of it has been passed on in our last year's press releases. Most of what that has come back also needs to be going back.

There will be some delta, if you ask me. We're always like to hold on to something.

That is something it is difficult to quantify it here. That would not be very significant.

Okay. Just lastly on the domestic business, this year this quarter, we grew 20%, which is fantastic.

If you could just give us sort of a flavor with respect to the the broader breakup between the core traditional business in terms of the cables and how this is how newer products within this segment are actually helping driving the growth? I'm not talking specifically of the numbers, but just more qualitative comments that how the new products are really contributing in ensuring that the growth rate is now matching with the sector growth rates.

Yeah. I think in this, Gokul, I would say the other products, the non-cable or beyond cable products are basically some of these braking products like CBS and, some of those related products.

That is although that they have grown very good, very well, as Mohan has sort of mentioned in his commentary, but they're still a small, low base. Will that would have given it a, let's say, a couple of percentage of traction to ICM?

The answer is yes, but it is not beyond that. That's what I'm trying to say.

It's still a small base. Let's see how the whole year goes.

Maybe next year, we will segregate braking separately out or whenever the time is right. Then I think, we will also get to know more clearly that.

The base is still small. They're growing at a much higher rate, yes.

Okay. Great.

Thank you so much, and all the best.

Thank you.

Hello. Am I audible?

Yes.

Yeah. I'm just attending the call for the first time, and knowing about the company for the first time.

If you could just reiterate the guidance that you gave earlier, that would be great.

Okay. What we did was in May after finalizing the Q4 and the year-on-year, annual numbers, we have said that on a consolidated basis, we will grow in double digits, and that EBITDA margin range would be, these are all operational numbers we're talking, 12% to 13.5%.

We have said the Global Cable and Mechatronics will also have a double-digit growth, with the EBITDA margin operationally at between 10% to 12%. ICM, we have said around the last year's number, which is, I think, about 5 15%.

PLE, that is Phoenix Lighting and Electricals, we have again said yes, around last year, which is about 12%. SED, we have said again in line with the last year, which was touching 10%, basically, we're aiming to do the 10% again.

These are the guidance that we have given last year for the for the current year.

Okay. Understood.

Yes. Thank you so much.

Thank you.

Am I audible?

Yes.

Can you please talk a little louder? I think you're a little weak.

Sorry. Okay.

Can you tell me the revenue numbers for LED retrofitting business as in financial year '26? Is it

I can't hear you properly, sorry. I'm not able to get your question.

Is it better now? Not very good.

Is it better?

Okay. Go ahead with your question.

Let's see.

I wanted to ask what is the revenue number for LED retrofitting business as in financial year '26? Is this profitable on EBITDA and PAT level?

LED retrofit, I don't think we give any separate numbers for this. I don't think it is large enough to disclose.

Mohan, do you have any idea on what is the LED status on our retrofit? General comments, maybe?

No, I don't have specific information. I do know we track what we call it as beyond halogen, but specifically is it such a significant number that we can disclose?

The answer is no.

Yeah. We don't have that.

Okay. Is that segment profitable?

Do you have any idea about that?

It is profitable because the point is Yeah, go ahead, Mohan. You can comment on the retrofit generally maybe.

Yeah. That I can confirm, yes.

There is quite an amount of localization that we have done. There are some imports that happen, but there is quite an amount of localization that we have done.

Again, when you say LED, you have to understand that we are doing what we call it as a drop-in solution, a retrofit drop-in solution. Therefore, this almost looks like in the way it is handled more like a halogen, but it is an LED-operated lamp or a bulb.

That's how we are doing it. In terms of profitability, the answer is definitely yes.

All right. Thanks.

Thank you. That was all from my side.

Good morning, team, and congratulations for a good set of numbers and execution, Suprajit team. Almost a year back, Ajith sir, there was a time when you guys had given some of the order wins initially and said that, okay, you kind of wanted to show it one time.

Just when I look back in the last four quarters with the SED division, we've been in that 40, 45 crores of revenues kind of run rate. We've been kind of consolidated there.

Yes, there was a slight uptick in this quarter, and EBITDAs obviously have been in that 4-plus crores on a run rate basis. Just want to understand that earlier when these order wins were given, one thing that I want to understand is the execution and timeline of how that flows through because in this quarter, you mentioned that there's been certain wins from the US and the Chinese OE.

In that sense, will that kind of show up, and when you speak of order wins, what timelines are we currently talking about and the kind of quantum over the next 2, 3 years in terms of contribution to revenues?

This is for GCM you're talking?

Because order wins in US, China is mostly on GCM. You started talking about electronics division, I thought.

In effect, I'm talking about both because one thing I refer to is that a year back, you mentioned about order wins for SED. That plus the fact that I'm talking about the US and the Chinese OE as well.

Yeah. What's happening is that how we are growing so much when the global business is at 0% growth.

Even if you're adjusting for the two months of that small last year's between SCS China and Canada, we are growing at 22%, 24%. How is that possible when the global business is at 0%?

That is because of those orders that we have won a year ago or 18 months ago is now starting to come into production, number one. At the same time, some of the businesses that we have been producing also going out of business.

There are two things happening. One is some of the old contracts are going away, but the new contracts are so much more that the growth has been at that particular percentage, which we are expecting to continue.

It's a solid performance, and that also along with the restructuring and most competitive buying and new contracts are coming at current prices, that all has added to the margin improvement. That's why the margins are more than doubled from the last year same quarter time.

That is where the whole color is changing, actually. I don't know whether that's what you are expecting as an answer or whether I got your question right.

Yes. To add to that, when you speak about the order wins with the US and the Chinese OE, is there a possibility to kind of give a perspective that over the next 2, 3 years, what is the opportunity there in terms of any size or any numbers that you can share broadly?

I think in terms of the size of the business, I think we made a press release, I think, a month ago, particularly about three large contracts. I don't know whether you have seen it, but that was a very important announcement we have made, which I don't know whether I've got that number here.

That was very significant. I think three about three contracts we have talked about.

One is a largest EV cable contract, which is an annualized value of $5 million and a lifetime of about $37 million. Second one is a European luxury OEM, which is a $2 million a year, a lifetime of $12 million.

Another one is from a Japanese OEM, again, $1.2 million a year, lifetime of $6 million. They're all going for different plants of ours, for Matamoros, for China, et cetera, and for probably some of them also going to Morocco.

What I'm saying is that the order inflows are pretty strong. These are only three major ones we have talked about.

Subsequently, we have won additional new businesses. I think we are in a position where from last year, everybody fighting the tariff war, today, we are fighting for the order wins.

I think the scenario has changed, and I think we're being winning them pretty handsomely. In terms of how it will change the profile of margin, I think Let's understand this.

It is still a very competitive business globally. There is a consolidation happening, and I think the consolidation only leads to eventually the stronger players to probably eke out slightly better margin.

We have just completed a major restructuring, any change in guidance, we don't want to do now. Maybe end of the year, we have said 10% to 12%.

After seeing the actual outcome of this restructuring, if you find that the margin profile needs to be revisited, we'll probably only do end of the year.

Okay. Lastly, on the SED, as for the current run rate that we are heading, is that something that over the next couple of years, the in terms of the visibility that we all have, is there something that we can see a kind of major push-up there in terms of all the pipelines that you're have currently?

I'll let Akhilesh answer this. Akhilesh, you want to take it?

Sure. Firstly, when we made our disclosure before launching the electronic division, and we talked about the pipeline and the businesses that we had won for that business, it also included at the time who was one of the largest EV players, and a significant portion was their business, which, as that player didn't really continue with the volumes that they were at, 2 2 years, 3 years ago.

The loss of that volume was negative for the division, which we overcome by bringing a lot more businesses. Probably, whatever was in that disclosure, there are a lot more projects that came in, which more than overtook the volumes that we didn't get from this number one player at the time.

I think that is one point on electronic division. What's good is that right now, the electronic division, a lot of the business is not just driven by EVs, but also by ICE customers who are picking up a lot, especially in the south region, a lot of the OEMs here are doing pretty well.

We see this strong growth continuing in the next few quarters. We see, like we said in the release, that we are expanding our capacity on a war footing because we are flooded with orders and new launches.

I think, of course, a lot of these EV things, you never know when are they going to go up or down. At least in terms of the current market scenario, EVs are doing great.

Therefore, this SED should also do well along with the fact that ICE is also doing well. Our business is looking strong for at least the next 12 months.

We see a good traction to continue at these levels that we see this quarter.

Akhilesh, you can also talk about a little bit about some of the businesses we are working on on the connected side maybe.

I think, like Chairman said, of course, our tech center continues to work on a lot of projects. One of that is into telematics.

This quarter, actually, we won three three projects in telematics and connected clusters and TCUs. This is a great opportunity also for us to grow into the telematics side of the business.

That should launch in the coming year and then gives us a new platform to take to all our other OEMs as well. I think that's on telematics.

To add to what Akhilesh has said, we have now decided to move out of the current location temporarily. We already found a larger leased-out premises nearby.

I think in the next, I don't know, the timeline, maybe 6 months or so, we'll be completely relocating to that site and completely rebuilding the current plant by demolishing and coming out with a much larger facility for electronics. All that shows that we are very clear that the original plan at which we said that, okay, this place is okay for, let's say, 250 crores of business, but now we're seeing much higher traction.

What we're doing is we're relocating the plant, except a part of it, and then completely rebuilding it and coming out with a multi-story electronics division. I think that work should start soon.

Thank you for these responses. If I may, in the PLE, there were two comments, one comment made in the last quarter about one European competitor having trouble, and in the current quarter, you mentioned about the US largest retailer order revamping.

With this, we've been in that 90 crore run rate per quarter. Do we see we kind of breaking out of that zone in the coming quarters?

The volume globally is obviously reducing, right? It's in that old part.

The insolvency in Europe, it is still an ongoing. They're still operating.

Some customers are trying to support them and all that stuff. The whole thing is still not yet fully rolled out as to how it will pan out.

In the meantime, we are in discussion with multiple opportunities to do business. I think ultimately, this depends upon whether this particular player who is in insolvency, how he comes out of insolvency.

Does it shut down? Does it get taken over?

These are the kind of questions. We are in discussion with multiple customers, prospects.

I think in the next quarter or so, we'll start seeing much better clarity on those inquiries. I think there is a good opportunity for us, and I'm pretty sure that we will capitalize on it over the period of next 3 to 6 months' time.

This US business is ramping up nicely. I think this year, it will be a much larger business than last year.

Again, it will go into much larger business for the following year in the next year because last year, we did piloting. This year, talking about specific number of stores.

I think that number of stores will probably triple or go four times next year. I think that is going as per the plan.

In fact, I think we had a good dispatch of that in this July month, I think.

Truly appreciate the detailed responses, and good luck to the team.

Thank you.

Thank you for the opportunity, and congratulations for good set of numbers. Sir, before I ask the question, I have a request and a suggestion.

If you look at some of your peers, right, their disclosures on new order wins is reasonably well-organized in their quarterly update. If possible, you can think about it, and when I say new order wins, either addition of a product or addition of a model or a new customer or a new geography, etcetera, etcetera.

If you want, we can take it offline, but it's because this question keeps on coming every time, and it will save time on discussion also that you don't have to repeat a lot of things. It's a suggestion.

Yeah. Sir, the question is, sir, one, the India business or the standalone business where we have seen margin pressure, which you have explained, on annualized basis, can we assume that margins will be similar to last year, the once the pass-through, etcetera, happens?

I would say almost like similar. Let's say, plus/minus 50 basis points, probably.

It's difficult to say, Chirag, because ultimately, it depends upon what price you are able to strike with customers. Our feeling is that it probably not more than 100 basis point, if at all.

We don't expect that also, but I'm just saying probably as an extreme case.

No, fair point. Yeah.

That's why I was asking because The only problem is not about passing on the material cost increase, Chirag. I think the issue is about the wage increases.

That is where the real debate is going on. I don't think anybody is questioning our material cost increases.

I think on the labor cost increases, because we're still a fairly large labor-intensive operations. I think that part is what is being strongly debated.

Fair point. Sir, second question was, Akhilesh alluded to the different price points of different parts that we supply to customer.

If I have to ask it in a different way, what would be the median price per unit realization that we would have? Because we have product from 100 rupee going up to 7,000 rupees.

But

It is difficult to say, Chirag. I can't give you that number because it keeps changing.

It's a dynamic situation. Our product range is like that, giving a median price is like throwing a dart.

We don't know where it's going to hit.

Structurally, 3 years or 5 years out, can we expect a 25%, 50% increase in this median pricing, whatever if the number is to be? Is that the right direction we are in given that with the product

Again, yeah, yeah. Again, the point here is that a cable has got one range of price, right?

I've got a 6 rupee cable, I've got a 600 rupee cable. Now how do I give a median of that?

Then on top of that, we have got these other products coming, where the volumes are different than the cables. Cables are all high-volume ones.

The median value of our per piece on a consolidated basis is like absolutely, I think, it's a wasted exercise, if you ask me. I think the content for vehicle is a fair question, I think.

That's what I understand.

Fair point, sir. Content per vehicle is also a very good way of looking at it, but Yeah.

Can we say directionally

It doesn't matter what it is, yeah.

Directionally, we can see a 5% to 6% improvement per annum basis, by around 20%, 25% improvement over 3 to 5 years? Is that a fair assumption to

Improvement on what, sorry? Improvement of what?

Content per vehicle.

I can't answer that question without having done some homework. I just explained earlier, if you combine our SED and ICM, you can see the growth, right?

That growth is more than the industry growth. Now it is at the same time, there's been some of the cable are not there now compared to what it was, let's say, a year ago.

The content per vehicle, we will try to see how we can accommodate that and whether we can track something like that. Maybe it's a good idea to do it for us on internal basis, but whether we'll disclose, we'll decide on that.

I cannot give an answer to your question now.

No, fair point, sir. Maybe 6 months down the line, once you do your work internally, you may

There are a lot of new things. Even the braking products are coming up now.

Electronics division is ramping up fast. At the same time, the new baby is starting to grow.

We don't know the trajectory of all these products how it will be over 2 or 3 years' time. It depends.

Something may take off. It depends upon how the customer volumes are there.

There are so many variables, it's impossible to put a target there.

The last question, in the brake and braking system, you have mentioned TVS and HMSI as the customers.

That's for the CBS, I think. That is for CBS, yeah.

Oh, okay. That is only for CBS.

Is that if you can throw more light, is it that we have just made entry in one or two models, or how it is, and how should we look at it 2, 3 years out?

Mohan, can you do any clarity on the CBS situation now, where all we are?

Sure. Let us understand one thing.

Braking system or brakes is a safety-critical item. Therefore, any OEM, before they take a plunge, they do a lot of confirmation, product validation, design validation, et cetera.

Therefore, we are going through that process with multiple customers. With some of the customers, we have completed it.

Some, we are in the process. Second portion that I need to explain here is, unlike many other, I would say, players in the market, we are looking at a total technology stack here.

That means we are looking at the levers, we are looking at the cables, we are looking at the hoses, we are looking at the reservoir, we are looking at caliper, we are looking at rotor, brake pad, ABS. Therefore, we are looking at a complete technology stack in the braking system and CBS also as a part of that.

Therefore, what we are doing is making inroads with certain customer with certain proportions of it. Our general vision or guideline, what I would like to say is, a, we would like to own the complete system responsibility.

That's our direction, we take over the system responsibility. Second thing is, we would like to have a claim on the real estate, a specific real estate in a two-wheeler architecture.

Therefore, this is the way I would be looking at. Therefore, to answer your question, which part of your body is growing more, hands or legs or brain, if you're asking me, it'll be difficult.

I would say that there's an overall growth happening in the body and are maturing both as a technology and also as a player in the market.

Fair point. If you are able to do the transition, it could be a unicorn, and it could bring in a lot of profitability also to the company.

Hence, I was asking about where are we.

I agree with you, Chirag. Absolutely agree.

I think that is the idea. I think I've made this comment in our some previous calls also.

This is a long-term story, even longer than the electronics division story, in terms of how it will mature, which product will get launched first, which product will grow faster, which product will launch later. The idea, as Mohan said, is to give a complete braking solution.

I think that is our North Star statement.

Okay. Thank you very much, and all the best.

Thank you.

I think what is the time? We have 12:00.

We'll take two more questions from the audience here.

Yeah. Hi.

Am I audible?

Yes, you are, Ravi.

Yeah. Hi.

Congratulations, sir, on a good set of numbers. There's just one question.

Most of the other questions have been answered. Right.

I think we had discussed a little bit on actuation systems, right, from the LDC acquisition, and I think last quarter concall, we had mentioned that we have kind of done a refresh of the tech or the products that we are kind of building like that. If you could kind of throw some light, because that was one opportunity which kind of allowed us to, if I can use the word forward integrate from cables to kind of actually providing actuation systems, and the addressable market for that similarly is significantly larger than just a clean plain cable.

If you could throw some light on any order wins or anything that we are looking at on that aspect over the next couple of years?

Sure. Akhilesh, can you answer both on our product development status and maybe on the business side of it, please?

Yeah. On product development, I think the product has been developed now, and we are taking this to our customers in the US especially, and then next to Europe.

This will, of course, take some time to filter into actual business wins, this will not be something that will be an immediate pickup. What we're seeing is that in India also, there is a lot more talk about bringing these kind of actuation systems.

In the US, it is a standard on premium vehicles, but in India, it is barely there even in the top-end vehicles of most of the cars. Now I think a lot of customers are looking at it.

You have seen, I'm sure, in your analysis of these industries, a lot of new tie-ups in seating-related companies coming to India to bring their technologies. In those technologies, there are a lot of them are also talking about actuation for all these seating companies.

We are also in discussion with seating companies in India, but this is a mixture of both that the technology has to come to India plus we need to win that business. I would say it's still a little bit down the line before we can really win seating actuation businesses in other than what we already have.

I think that's an ongoing process. At the same time, I would say that with some of our key passenger vehicle customers, and I won't name one of them, but it's a leading EV OEM, they have looked at us for almost four, five different actuation-based projects, which are all on the very much in the R&D phase.

This may take again 2, 3 years before it even comes into the market. This is with very deep advanced engineering that we're working very closely on interesting actuation projects.

I think this is a matter of time to play out, but I think the signs are strong on actuation that we'll have a lot more business going forward.

As to what Akhilesh said, Ravi, is that the current businesses that we have in actuation continues. Some new projects we have launched in the two-wheelers in the last 2, 3 years, they're also continuing.

Now I think the Indian larger passenger vehicle side OEMs are seriously looking at some of these newer technologies on seating, and I think that's where we are fitting in. I think we have some very interesting conversation with at least a couple of them.

As Akhilesh said, we are in discussion. In terms of the product, I think we're working on, as he said, it's more or less finalized, at least two what I would call as the level of actuation based on the force.

I think they're all in the final approvals are in the process. I think they'll all be launched as a upgrade on the existing actuation products that we have.

I think it's a journey, but I think there is a very exciting new opportunities that we see.

Great. Great.

Good to know that. The other question is on the non-auto side, right?

Historically, I think a few years back before we acquired LDC, we used to kind of discuss non-auto side of the business. Over the last couple of years, I think the discussions have mostly veered towards auto.

Is there anything any update that you can share on what's happening on non-auto side of any products that we have developed or anything that we are working on, or anything that looked exciting?

I think non-automotive, the business in US, most part of that business is out of US. They have continued in the last 2 years, unfortunately, I would say, it has remained very muted, and hence our conversations have also been fairly muted.

In those days, what we are talking about is on opportunities in cable. What our business development guys are doing now is that we are pitching in some of our new products, particularly from the STC products, on the displays and on sensors, etcetera.

I think we already started supplying some of the sensors already in the last couple of years. I think there are quite a few new ones, including some of the displays, are being presented and discussed with these non-automotive customers.

The cable side of the business, honestly, is not growing. I think these new products is where we expect the traction to come over the next few quarters.

Okay. Great, sir.

All the best.

Thank you. We'll take one last question if it is there, madam.

Yes. Sir, just want to understand, you mentioned regarding the Chinese OEM.

Sorry? What OEM?

Chinese OEM.

Yes, okay.

What we have been hearing, Chinese guys making inroads in Europe and other places globally. For us, how it has grown, and what was your contribution to revenue?

How do we see from here on?

I think Chinese OEM business is done out of Lone Star in China, actually. How we pitched to this OEM was simple, that they have global ambition.

They're the largest EV maker today in the world, and they have global ambition. They are, I think, already in Hungary.

They're talking about Mexico. How we pitched it a year and a half ago was that we have footprint in these places where they want to go, and that we want to be their global supplier.

They have a local couple of suppliers, but they're purely local. They have no global footprint.

Eventually, after good rounds of discussion, they have said that, okay, let us try you out because if that's really needed, we'll be able to use your footprints globally. The starting point was China, okay?

We are still making most of it out of China to supply to our current product. In the process, I think we have won nearly 25 different cable projects with this customer.

I think five or six of them have been launched already, and the balance will be launched over the next 12 months or whatever time frame depending upon the development time. The growth is very clearly seen.

If you look at Lone Star, last 2 years, they have been a flat years for Lone Star. We are seeing something like a 20% growth at Lone Star.

I think that trend is likely to continue with the kind of business wins that we have. Eventually, the idea is to take that from there to try to offer to the same OEM out of Europe or for North American launches.

That is the overall plan.

Okay. That's it from my side.

I wish you all the best.

Okay. Thank you.

Thank you all. Thank you very much for your time and patience and continued interest in Suprajit.

I would also like to thank Mumuksh and Anand Rathi and Chorus Call to organize this call. All the best.

Thank you very much, Shruti. As far as we are concerned, from our side, there is no more brief from our side.

Thank you.

Thank you.