Thanks, Alrik. Good evening, everyone, and a warm welcome to all the participants.

On the earnings call today, I am joined by my colleague Ankur Modi. We have uploaded our financial results and investor presentation for Q1 FY '27 on the stock exchanges and our company's website.

We hope everybody had an opportunity to go through the same. I will begin with a brief overview of the macroeconomic environment, followed by the current trends in the automotive industry, and then our financial and operational performance for the quarter ended June 2026.

Post that, we will open the floor for Q&A. Talking about the global economy and current landscape, the global economy so far in 2026 has been navigating a complex and uneven landscape.

Global GDP is projected in the range of 2.5 to 3% range, resilient, but below historical averages, as the world contends with persistent geopolitical tensions, elevated trade and policy uncertainty, and energy price pressures that continue to fuel inflationary headwinds. Two powerful forces are shaping the global outlook, and they are pulling in opposite directions.

On one side, the conflict in the Middle East is acting as a negative supply shock, disrupting energy markets, elevating freight costs, and injecting significant uncertainty into global trade flows. On the other, the world is experiencing an extraordinary positive technology wave driven by the accelerating deployment of AI and the broader digital transformation of industries.

The net impact of these two forces varies significantly across countries depending on their energy dependence, geopolitical exposure, and position in the global technology value chain. Simultaneously, the restructuring of global supply chains driven by economic security concerns and geopolitical fragmentation is redrawing international trade patterns, creating both meaningful opportunities and challenges for businesses that are prepared to move with agility.

India in this context stands out. Having closed FY '26 with robust GDP growth of 7.7%, India enters the current fiscal year with strong foundational momentum.

The external environment has introduced some moderation, and GDP growth for the current year is projected in 6.5 to 6.9% range. Yet, even at this pace, India remains firmly among world's fastest-growing major economies, supported by resilient domestic consumption, a thriving services export sector, and sustained government capital expenditure that continues to catalyze private investment.

Looking further ahead, the trajectory becomes even more promising. Anticipated trade agreements with the US, UK, and EU are expected to significantly enhance trade flows, attract long-term private investment, and strengthen India's structural growth prospects in ways that extend well beyond any single fiscal year.

For Indian manufacturers with capabilities, the scale, and the technology credentials to compete globally, this is a moment of genuine and historic opportunity. Moving to automotive industry overview for the first quarter of FY '27: Indian automotive industry entered Q1 with powerful momentum, delivering one of its strongest quarterly performance in recent memory.

Total automotive production reached a record 96.9 lakh units, a growth of 22% year-on-year, reflecting healthy domestic demand, improving exports, and resilient consumption across both rural and urban markets. While elevated commodity prices and global supply chain disruptions created some input cost pressure, these headwinds have begun to moderate, with OEMs partially offsetting the impact through calibrated pricing actions.

Export performance was equally strong. Total vehicle export rose nearly to 20 lakh units during the quarter, with robust demand from Latin America, Europe, and Japan driving growth in two-wheelers and utility vehicles, demonstrating a broad-based recovery in global competitiveness of Indian automotive manufacturing.

During the quarter, 14.5 lakh passenger vehicles were produced, up 17% year-on-year. The electrification, premiumization, and SUVification of the Indian market continues unabated.

Each PV registration grew an impressive—electric passenger vehicle registration grew an impressive 54% year-on-year to 84,000 units, with EV penetration reaching 6.8%, a meaningful inflection supported by widening product portfolio and accelerating consumer acceptance. Two-wheelers posted production of 72.5 lakh units, up 23%, with scooters leading at 32% growth versus 18% for motorcycles.

Exports reached a record high of 15.5 lakh units, up 37%, driven by strong demand from Latin America, South Asia, and Africa. In a landmark milestone for the segment, E-2W registrations crossed 5 lakh units for the first time in a single quarter, a clear signal that mass EV adoption in two-wheelers has moved from aspiration to reality.

CVs produced 2.9 lakh units, up 15%, backed by continued replacement demand and strong activity in the mining and cement sectors. CV exports grew 43% to approximately 3.3 lakh units, the highest Q1 exports ever recorded for this segment.

Looking ahead, following this period of strong volume expansion, the market is expected to transition towards more stable technology-led growth driven by continued EV adoption, supply chain localization, and the premiumization of the vehicle mix. The sector's improving fundamentals, balanced demand environment, and accelerating technology transition position it well for sustained long-term growth.

For a company like Uno Minda with a powertrain-agnostic portfolio and growing systems capabilities, this environment presents an exceptionally compelling opportunity. Moving on to financial and operational performance for the quarter, you may refer to slide number 7 and 8.

We reported another strong quarter where we have continued to scale new highs—new heights, once again surpassing our previous peaks to achieve our highest ever quarterly revenue. Our consolidated revenue from operations for quarter 1 FY '27 stood at ₹5,557 crore, representing a robust 26% year-on-year growth, as against ₹4,420 crore, excluding prior period income of ₹69 crore in Q1 FY '26.

This growth was broad-based and high-quality, driven by value-added features and volume expansion across our core product offerings, including switches, lighting, alloy wheels, seating, and our rapidly scaling EV systems and alternate fuel divisions. On the profitability front, EBITDA, excluding exceptional income in the previous year, grew by 21% year-on-year to ₹572 crore, with EBITDA margins of 10.3%.

Three factors weighed on the margins this quarter: First, commodity and gas price inflation created input cost pressure that could only be partially recovered during the quarter through price adjustments. Second, even as the commodity price increases are systematically recovered over time, pass-throughs occur on an absolute cost basis without any markup, resulting in mathematical margin dilution.

In our case, the impact was approx 40 basis points due to this margin dilution. Third, minimum wage revisions across multiple manufacturing states increasing the employee costs.

Importantly, a large portion of these headwinds were offset by operational efficiencies and operating leverage. We remain confident in our annual EBITDA margin guidance of 11%, plus/minus 50 basis points, with a bias towards the higher end.

Depreciation increased by ₹17 crore to ₹177 crore, reflecting the capitalization of new facilities, including our two-wheel alloy wheel expansion at Supa, our new plant in Indonesia, and Phase 1 of our Kharkhoda four-wheel alloy wheel facility. Finance costs remained tightly controlled, rising only ₹2 crore to ₹46 crore, as majority of our expansion program continues to be funded through healthy internal accruals, a reflection of strong cash generation.

The share of profit from associates and JVs remained stable at ₹48 crore from ₹47 crore in the prior year. The profitability of some of these entities was impacted by commodity pricing pressure, which is expected to ease with recoveries in subsequent quarters.

PAT attributable to shareholders grew 24% to ₹296 crore, compared to normalized PAT of ₹239 crore in Q1 FY '26. Coming to business-wise segment performance, starting with switches, you can refer to slide number 11.

Our switching system vertical, the largest vertical in the Uno Minda portfolio, delivered another strong quarter. Revenue reached ₹1,335 crores, up 20% year-on-year, contributing 24% to consolidated group turnover.

Growth was driven across both our two-wheeler and four-wheeler switch business. In two-wheel switches, sustained domestic volume growth was complemented by consistent export upward growth trajectory, reflecting the global recognition of our quality and technology standards.

Our four-wheel switch business under Uno Minda Rinder continued to outperform the industry, growing 24% to ₹525 crore. The transition of our Manesar facility to expanded Farrukhnagar plant is progressing well, with completion expected in second half of the fiscal year.

The lighting system vertical reported revenues of ₹1,153 crore, up 14% year-on-year, contributing approximately 21% to consolidated revenues. The two-wheeler lighting portfolio anchored growth, supported by sustained market share gains and rising EV penetration, where Uno Minda remains a leading supplier to multiple electric two-wheeler OEMs.

Looking ahead, we expect meaningful market share gains over the next few years, supported by the significant new order of approximately ₹450 crore of annual peak value announced last quarter, equivalent to nearly 25% of the current two-wheeler lighting revenues. I am also pleased to share two new strategic wins this quarter.

First, we received a business nomination from a global OEM for domestic four-wheel lighting supply in India, a strategic entry into a new customer that opens up the door to incremental customer share and cross-selling opportunities. Second, interior ambient lighting is gaining commercial traction, with positive customer decisions that open an entirely new avenue of growth for our lighting portfolio.

In Indonesia, following commissioning of our new four-wheel lighting plant, we have already secured a second customer order, with SOP expected in Q2 FY '28, validating our international manufacturing strategy. The transition of our existing plant to new facility is expected to be completed by end of FY '27.

The consolidation of multiple two-wheel lighting facilities in North India to Kharkhoda is expected to start in H2 FY '27, bringing automation benefits, cost efficiencies, and capacity to win both domestic and export programs. Moving to casting business: The casting vertical was our fastest-growing vertical this quarter.

Revenue reached ₹1,090 crore, up 32% year-on-year, which also includes higher base raw material prices. The casting vertical contribute approximately 20% to consolidated revenues.

Three subsegments drove this performance: Passenger vehicle alloy wheel business revenue grew to ₹566 crore, supported by ramp-up of recently commissioned Phase 1 at Kharkhoda. We had seen some temporary moderation in alloy wheel penetration last few quarters.

However, we are seeing early signs of penetration inching up again. Our new 60k line at Kharkhoda expected to be fully ramped up from Q2 FY '27.

We also expect another 30k line at Kharkhoda to commission in second half of current fiscal, which will support the growth. Two-wheeler alloy wheel grew to ₹284 crore.

This business will receive significant boost with the commissioning of our Bawal plant, where four of the plant's six production lines are expected to go live in H2 FY '27, adding approximately 1 million units of annual capacity. This will also mark our entry into HPDC alloy wheel manufacturing.

Aluminum die casting delivered exceptional 66% growth to ₹248 crore, driven by capacity enhancement at both our Bawal and Hosur facilities. The structural growth drivers for this business—lightweighting, EV platform requirements, and domestic content mandates—remain firmly intact.

Near-term headwinds for this vertical seem to be receding, and is expected to return for another upturn. The structural growth drivers for alloy wheel remains intact, supported by industry volume expansion and expected gradual, but consistent, increase in alloy wheel penetration across vehicle segment.

Moving to seating business: The seating system vertical continued its strong upward trajectory. Revenue reached ₹408 crore, up 28% year-on-year, contributing approximately 7% to consolidated revenues.

The quarter's performance reflected strong growth across our customer base and, importantly, a significant acceleration in international revenues. Exports reached ₹72 crore this quarter, growing consistently quarter after quarter, and will continue to be a major growth driver, supported by the landmark export orders of approximately ₹390 crore of annual peak value from three new customers across Europe and North America communicated in last quarter.

During the quarter, we also announced entry into the four-wheel passenger vehicle seating system segment, one of the highest value product categories in the automotive supply chain. To support this new product line, the company's Board of Directors had approved the setting up of state-of-the-art greenfield manufacturing facility in Chhatrapati Sambhajinagar with a proposed investment of approximately ₹320 crores.

The facility is expected to commence operations by Q2 FY '28, and we have already secured business from an anchor customer. It is a strategic leap that substantially increases our per-vehicle value potential and deepens our footprint in a segment that is central to the premium vehicle experience.

Moving to the next segment: The newly constituted Green Mobility vertical achieved a robust 78% year-on-year revenue growth in Q1 FY '27, reaching ₹542 crore and contributing 10% to the company's total consolidated revenues. Within this segment, alternate fuels led the quarter with ₹184 crore, followed closely by Uno Minda EV Systems at ₹186 crore, reflecting strong adoption trends across the electric mobility ecosystems.

Uno Minda AutoWeb contribute ₹123 crore, while EV business in Controller Division contributed ₹37 crores. As new three-wheeler charger programs are now being executed through the EV System Division as against Controller Division, hence, it is prudent to look at aggregate revenues of Uno Minda EV Systems and EV business in controller for like-to-like comparison.

The said aggregate revenues increased to ₹218 crores, registering a growth of 24% as against ₹176 crore in corresponding quarter. This growth was driven by both vehicle segment, which is two-wheeler and three-wheeler.

The three-wheeler EV charger business was supported by new 3W three-wheeler charger programs. The increasing penetration of E-3W reaching more than 60% has been supporting this growth.

The two-wheeler EV business growth was contributed by multiple drivers: First, SOP of a new program for DC-DC converter, electric motors, as well as RCD cable through their share in revenues, though their share in revenues remain relatively smaller than EV charger, which has been our mainstay. EV charger contributed to growth through higher volumes and increased penetration with existing customers and higher share with newly added customer.

We have also commenced supplies of charger to a new incumbent OEM. The rising penetration of E-2W has been driving growth.

During the quarter, we had received PN3 approval for our proposed JV with Inovance. However, as was advised earlier, the joint venture will also require approval in their host country, China.

There have been recent regulatory changes in China, tightening the norms for such technology partnership. Inovance is reviewing the revised guidelines and seeking clarifications for next steps.

Moving to other segment: The reconfigured other product portfolio continues to reflect steady operational performance. The vertical reported revenues of ₹1,029 crore, registering a robust 21% year-on-year growth and contributing approximately 19% to company's consolidated top line.

Contribution during the quarter remained distributed across remaining core and aftermarket verticals within the portfolio. Sensors and ADAS generated ₹250 crore, followed by acoustics at ₹225 crores.

Blow molding products and the non-EV controller business accounted for ₹125 crore and ₹80 crore, respectively. The remaining revenues were driven by the aftermarket segment, including batteries, along with external sales from Uno Minda [Katolec?]

and European engineering services, providing additional stability to the portfolio. Construction of the sunroof manufacturing facility is progressing as planned, with commissioning expected by the end of FY '27.

Ahead of commissioning of our first plant, we are pleased to inform of having added a new OEM customer for panoramic sunroof with an ₹130 crores of annual peak order value. We have also secured order for electric roller shades for ₹40 crore.

Together with these orders, our total sunroof order book have crossed ₹500 crores. Moving to the aftermarket and international revenues, you can refer to slide number 13.

For the quarter ended June 2026, the aftermarket business reported revenues of ₹336 crores, contributing approximately 6% of consolidated revenues. In addition, sales to the OEM spare part division, which is considered as part of segment revenues, stood at ₹254 crore.

Combined, the aftermarket and SPD channels generated revenues of ₹590 crore, representing 11% of our consolidated revenues. International business contributed around 9% of total revenues during Q1 FY '27.

This performance was driven by improved export traction, particularly in the two-wheeler switching and seating segments. Exports from India stood at approximately ₹228 crore during the quarter, as against ₹141 in the corresponding quarter.

Looking ahead, we remain constructive on the outlook for the automotive industry and continue to expect healthy growth during the remainder of FY '27. At Uno Minda, our growth strategy remains unchanged.

We expect to continue our outperformance as compared with industry volumes through market share gains, increasing content per vehicle, rapid localization of advanced technologies, expansion into new product categories, and continued investments in capacity and R&D. We are also encouraged by the strong order pipeline across several emerging technology platforms, including EV powertrain systems, lighting, seating, sunroofs, infotainment, and advanced electronics.

These platforms provide excellent long-term visibility and reinforce our confidence in sustainable growth. With this, I would like to now open up the floor for questions.

Hi, good evening, and thank you for taking my questions. My first question is just around the seating segment, which is a white space for the company, new area of business.

Just want to understand if you could give us some details around the competitive landscape, which four-wheeler segments you look to participate in? Is it more SUVs, or are you looking at small cars as well, are you looking at CVs as well, and also some color around the market size and the opportunity size the way it looks from your vantage point?

The second question is just around, I think, your comments around focus on continuing to outperform the industry in terms of growth. I think the back half of the year, industry will possibly be up against a high base, but looks like there are about seven plants that you're onboarding in FY '27, some in the first half, some in the back half.

Just want to understand, in the back half of this year when the base is high, are there some additional products that launch or will you have some Inovance products also that start SOP, which will help the outperformance versus industry? I think you did mention that you still have to wait for the Chinese regulations to clear the Inovance technology licensing, is that going to hold up any Inovance product SOP in the back half, which was earlier expected?

Third question is just around the Green Mobility segment. Now it looks like the Green Mobility segment is almost half the size of your core segments in lighting and switches and alloy wheels.

Is it at a critical scale where you think it's getting closer to profitability of the corporate average? Just want to understand that.

If you could give us some color on capex for this year and next year now that we have renewed capex plans to drive the growth. I'll just pause there.

Thank you.

Thanks, Chandru. A lot of questions.

Let me start on the same sequence. Starting with seating: Details on competitive landscape, I think we all know that this business has been something we have been looking for past almost 4, 5 years since we formed this JV with Tachi-S.

The landscape remains very, very highly competitive. Currently, we have been able to get into one business nomination for starting with one model.

We are already talking of some second model and so on. In terms of vehicles and the categories, I will not be able to share much information as of now because these models are also the new models which will get launched.

We can't share any such information until the vehicle gets launched. In terms of opportunity size, yes, it is very big, and as we all know, the seating as a product has consistently been adding a lot of value.

It's going to almost ₹30,000, ₹40,000 kind of a kit value per car. The opportunity is growing by the day, and as I also mentioned, this will be one of the largest kit value product in the group, maybe even bigger than the alloy wheel segment in terms of kit value per car.

In terms of second half, there are, as you rightly mentioned, there are multiple plants which are coming on stream, some of which are like the Phase 2 of Kharkhoda or the two-wheeler alloy wheel. Somewhere it is a purely incremental business, which was non-existent.

Definitely, that will add a lot of what you call delta in terms of industry growth. There are some businesses which will support the growth, as I said.

For example, the alloy wheel four-wheeler plant, when it gets commissioned, it will support the increased demand or increased application, which, as I also mentioned, we are currently seeing that shift again in terms of increased application of alloy wheel versus steel wheel. The trend is now again moving favorably as we move forward, which is the indication we are getting from our customers.

There is a mix of both. There are certain businesses like say even the Minda Rinder, which is moving to Farrukhnagar from Manesar, it is going into a larger plant, there might not be an immediate delta in terms of just shifting to a bigger plant, but obviously, it will enable the growth as we move forward.

Similarly, there are other products as we mentioned sunroof and all, which will gradually come on stream as we move forward. In terms of IA, as of now, there is no hold-up.

Our plant construction goes on as scheduled, and even the supplies to our customers. The endeavor is that we have to ensure that the business goes uninterrupted.

That's where both the partners are completely aligned in terms of making sure that we continue to secure business and the customer supplies should remain unimpacted. As of now, there is no hold-up.

In fact, both our plants' work is going on. The first plant at Khed City, the work is going on as scheduled, and the plant which we have to construct on CSM, that is already on the drawing board, and you will be hitting the ground in next couple of months.

In terms of Green Mobility, yes, you are right, and that was the key reason why we have carved it out last year to show separately because there was a lot of businesses which are actually going as part of others. They were not getting that clear visibility as well.

That was the whole reason we have what to call combined and shared. There are certain businesses which are actually maybe doing better than the group profitability.

Certain businesses just started, obviously, they are lower than group profitability. As we have said, our endeavor always has been in the third full year of production, they should achieve our target profitability.

Businesses which are new, obviously, we won't expect to achieve the third-year profitability once you start. That obviously will be a journey we have to go through.

In terms of capex plan, remains same what we have shared in the last call of around ₹1,750 crores for the current fiscal year. For next year, obviously, we'll give in normally annual guidance.

If you see our total project capex, there is a slide on project total announced, which is almost ₹3,800 crores in pipeline, of which ₹1,400 is already spent till date. Going at the current pace, the delta of ₹2,400 crore obviously is going to get spent over next 18 to 24 months or so.

We are very, very comfortably placed in terms of the capex cycle as well.

Got it. That's helpful.

Thank you very much, and all the best.

Thanks, Chandru.

Congratulations, sir, on numbers, especially Q-o-Q revenue improvement despite the drop in the PV production Q-o-Q. First question: Within the Green Mobility business, based on the capacity and the order book, how do you see the ramp-up for electric two-wheeler and four-wheeler business?

Specifically if you can talk a bit more on the traction motor and e-drive, how do you see that ramp-up happening this year and next year? Apart from that, the other question I had was on margin, how do you see the recovery towards 11%, considering the price hikes from customers on commodity and wage inflation?

Given the minimum wage hike impact, by when do you expect customers to compensate? Would you be able to pass on 80-90% of impact to customers?

Lastly, one clarification: On depreciation, there is a Q-o-Q drop. There is this seasonality that always happens that Q1 is lower than Q4.

Can you explain why that is the case? Thank you.

Sure.

Thanks, Raghu. Thanks for the compliments.

In terms of Green Mobility, you asked how do we see the ramp-up of E-2W, four-wheeler business. As we [chuckles] don't comment on the sales because the volumes are not in our hand.

As the volume grows, we are gearing up to make sure that we are able to meet the supplies. The growth has been definitely more than at least we have expected internally when we have started the year in terms of our budgeting cycle, which is a very, very good position to be in.

Our teams are working to see that we meet all our customer demands and build capacities on a much faster pace and capture or capitalize on the opportunities markets is throwing up. In terms of traction motor, as I mentioned, as of now, it's a very small business.

It's already started. There are two OEMs whom we are supplying.

The volumes are not that meaningful, honestly. In terms of margin recovery, as I said, we always give the annual guidance, and Q1 tends to be lower.

This time, it has been impacted also because of the high commodity prices. As I mentioned, the commodity price, even assuming 100% is pass-through, that itself is dilutive by almost 40 basis points, right?

If these prices will remain, that impact is going to be there for rest of the year. Despite that, we are holding on to our margin guidance, and we have been able to take a lot of actions in terms of the automation or in terms of efficiencies, in terms of productivities, and we've been able to absorb large part of the wage increase as well.

For commodity also, as the cycle goes on, on a quarterly, half-yearly basis, the price anyway gets adjusted. In fact, we have a customer who has also given in one or two of the commodities even the monthly sort of price, which we have also mentioned in terms of our last call.

That's a very good thing. Customers has been also conscious of this fact, and we have also seen some of the customers already announced some sort of price hikes to absorb this kind of cost increases.

In terms of depreciation, quarter-on-quarter drop Q1 to Q4 largely happens because in our casting business, which is a capital-intensive business, there is a WDV method of depreciation. Once the new year starts, you start with a lower base.

That is one of the reason why your depreciation in Q1 normally is lower in that business from Q4 to Q1. I hope I have answered all of your questions, Raghu.

Yes, sir. Thank you very much.

Wishing all the best.

Thank you.

Yeah. Thank you, sir, for the opportunity, and congrats on the new order wins, in particular newer segments.

Firstly, just on the four-wheeler seating side which we have recently won order, this 3.2 billion capex, how much revenue potential the plant can generate? Secondly, on the seating side with this order and also export order, just you can indicate how the timelines will be there in terms of ramp-up of those orders.

Similarly, on the sunroof side also, with the 500 crore order, if you can help understand how one should look at the ramp-up in the FY '28, '29, '30 period? Finally, sir, on the JV side, this quarter was flat on Y-o-Y basis.

Is it largely driven by the commodity side? If you can help understand what happened in the Q1 JV numbers, yeah.

That's all from my side.

Thanks, Mumuksh, and thanks for the compliments. On four-wheeler seating business, the 3.2 billion capex can do revenue of more than 2x as we speak.

I'm sure as we move forward, once we do incremental capex further, the potential is normally more, but to answer your point, it is more than 2x at this stage. Export order in terms of how the timelines, the large part of the export orders, it's a two-year cycle.

You will see impact coming in from end of FY '28 and large part will come or fully come in '28, '29. Same will be in the sunroof business also.

The business will start from as I said end of FY '27, which is somewhere in March, April of FY '27, and you will have a ramp-up phase for that year and then realize full sales from '28, '29 onwards. In terms of JV profitability being flat, your point is right.

It is actually a commodity impact which we could not recover in the quarter. Obviously, once this price gets adjusted as for next quarter, we should be able to start bridging that gap from Q2 onwards.

Got it, sir. Thank you so much for the opportunity.

Thank you.

Yeah. Hi, sir.

Thanks for the opportunity, and congrats on the good set of numbers. Sir, first question is on this OE tie-up for the lighting segment for four-wheelers.

Some assessments on how big can this opportunity be maybe in a few years in terms of revenue potential, and do you need to invest further for catering to this OE? Second question is on the exports.

Exports, we have seen that has started growing well. If you can highlight what has been the numbers for last year or last Q1 or Q4 for the total exports, and in the medium term, where do you see the exports potential in terms of segments, where can we reach?

Lastly, sir, on the cost side now, given that you mentioned that a couple of customers have started giving monthly price hikes, does that mean that because last three consecutive quarters we have seen the gross margins going down, does that lead to some normalization in the gross margins at a faster pace? That would be all, sir.

Yeah. Thanks, Sid, and thanks for the compliments.

In terms of this light four-wheeler tie-up, is a new customer. Definitely is a global customer, and this is an entry, and we are working with them proactively in terms of seeing possibility if we can sort of build on that.

Good news is, as of now, it's an entry with decent volumes, decent order value. Opportunity can obviously be very big, even within India itself.

Then, if everything goes fine in future, maybe there will be possibility of exports, but we are not betting on that as of now, but locally itself there is a large opportunity. Do we need to invest on this?

For this current business what we have received, as of now we don't because the plant which we have set up in Khed, there might be the investment only to the extent of lines and tools, etc., but nothing in terms of large capex which might be required at this stage. Exports has been growing well, yes.

Thanks. What has been our Q4, etc.: Last Q4 our export physically from India was ₹141 crores, and this quarter it was ₹228 crore, almost 50, 60% increase in Q4 to Q1.

Where do we see exports moving forward? As you also highlighted, some of the new business which we have secured, seating specifically almost ₹400 crores of new business plus some new business in switches and lamps, definitely our endeavor is to grow significantly from where we are today.

Gross margin, as I also mentioned initially, is that while on one hand assuming that we recover full commodity price, the increase this quarter itself is diluting 0.4% of the gross margin. Some of the new business which we are adding, like on the electronic side, there the gross margin obviously is lower.

That also plays a part in terms of gross margin, but in terms of profitability, because there you have better asset turn, it does not impact much on the EBITDA side or the ROCE side. While we might see some small movement here and there for GRM, ideally that should offset at a EBITDA margin level.

Got it, sir. Thanks a lot.

Thanks, Siddharth.

Yeah. Hi, sir.

Thank you for the opportunity. Just on the China JV, the comment which you made, can you just elaborate on what is the current status?

Are we able to import the EXL today, is there restriction over there or there are no restrictions? In the future, how do you think this pan out?

In a worst case, because in some of the battery technologies Chinese government has restricted, if they do restrict, then what would be our strategy in kind of increasing our presence on the four-wheeler EV business?

Sure. Rishi, in terms of any restriction for EXL, as of now, there is no restriction, and we don't see possibility of any restriction on import of EXL as of now.

You shared in terms of somebody else facing technology challenge, etc., etc. Obviously, one can't rule it out, but as I said, we are currently in discussion with our partner, and they are also in discussion with the local stakeholders.

The whole endeavor is to ensure that whatever investment we have done, we are able to utilize that investment, and we are able to gradually localize the product as we have laid out original plan. Which they remain pretty confident that they should be able to find a solution to this problem.

As I said, they are just the early days. Hopefully in next quarter or so, we should have some better clarity.

In terms of capex for this in Aurangabad, Sambhajinagar, there is no change, right? That remains on track.

No. Yes.

Sir. Thank you for this.

As of now, we are going ahead with that. Yeah.

Because

there also, if you remember, there is also another product, which is DST, and that we said is in collaboration with one of the customer as well. That also sort of is going on as planned.

Understood, sir. Thank you.

Thank you for the opportunity. Sir, largely I wanted to understand on the casting side that improved from 18 to 20%.

With near term, any headwind that we are seeing? Traditionally, it's a lower-margin business, so that will again a more capital-intensive segment.

As casting is scaled further with the CSM alloy wheel plant, what is the going-forward margin we are expecting from this segment? Another on the employee cost side that has 15% year-on-year against 26% on the revenue growth side.

This is going to sustainable near term, or does a new capacity coming will be seeing the step-up hiring and that we should model in? Yeah.

Thanks, Jyoti. Let me answer one by one.

Casting, you said headwind, actually there is a tailwind in terms of application ratio we are expecting. Casting as a business in terms of alloy wheel, etc., should actually grow more than what the industry growth is because sheer application will increase that.

On top of it, we are looking at bigger size wheels, SUVification, etc., etc. In terms of margin also, they are not margin dilutive.

Actually, it's a better margin versus company average because of higher capital intensive nature and what has been our ROCE target. To achieve those ROCE targets, obviously, we need to make sure that the margins are there which can take us to those targets.

In terms of employee cost, whether that will increase with new capacity, maybe we have to look at it differently, Jyoti, I would encourage, because if you have new capacity, then you will have new sales also. New sales when you have, then obviously you will have new plants, you will have new people to run those plants.

Obviously, in terms of absolute numbers, the cost definitely will go up because if you are setting new plant, you will need people to run those plants. As a percentage of revenue, we don't expect it to sort of push it upwards.

Okay. Great, sir.

Sir, like you already explained on the export side as well, but currently it's 11% of revenue mix. What's the medium-term target that we are targeting for the export side?

Our target obviously has been to consistently take this percentage higher and higher. Good thing is that our domestic market is growing significantly, and if domestic market is growing like 20, 25, 30%, then we do expect export market to do at least that much to maintain the share in the pie, right?

Export has to outgrow the domestic growth, then only the percentage will increase. Our target absolutely is to double and triple the export in terms of absolute numbers, but in terms of percentage, it all also depends on how much domestic growth market sort of is giving us.

Okay. Thank you, sir.

Thank you.

Yeah. Good evening, and thank you for the opportunity.

A lot of my questions were answered, but just on the seating business, I think you also kind of alluded that you've been trying to get into the four-wheeler seating business now for the last, say, 3, 4 years after the acquisition of Harita. Just trying to understand, are we now at some inflection point here that we're setting up a plant just for this four-wheeler seating business?

How do we look at this business over the next 3 years? Is there something unique that you're offering now in terms of technology or safety or any of these aspects that you can comment on?

Yeah. Anything else, Mukesh?

Second question is just on some numbers that you usually provide. If you could break up the alloy wheels into two-wheelers, four-wheelers, as well as if you can give the West Coast revenue within Green Mobility, and the sensors revenue within others.

I think I gave that, but we can give it again, no problem.

Sure. I think I missed that.

I'm sorry.

No, no worries. In terms of seating business, Mukesh, yes, we are very, very optimistic on the seating business because while we know India market there have been multiple players and we have to fight against them to win business, but I'm sure you also appreciate one of the partner which we have for seating business is a globally renowned partner, Tachi-S, who's having 60 plants globally, and the kind of technology they have is state-of-the-art.

We do expect that once we are able to settle down in this business, we should be able to get into more and more customers, and that has been our philosophy in all the businesses you see, right? We just saw that sunroof business even before starting, we got second customer, same in some other businesses as well.

We are pretty positive on this seating business opportunity, in fact very excited that finally we could break into four-wheeler seating, and this actually can grow multifold as we move forward. Obviously, a lot of it we need to work on and we need to see that we provide not only better prices, but better features at better prices, and which we believe we are very well placed in terms of providing those competencies.

Right.

In terms of the alloy wheel two-wheeler, alloy wheel four-wheeler, you asked for some revenues: Alloy wheel four-wheeler revenue for the quarter is ₹566 crore, two-wheeler is ₹284 crore, and West Coast is ₹184 crore. You asked for sensors also.

Sensors and... Sensors, yeah.

As I said, sensors and controller is ₹250 crore.

Sensors and ADAS is ₹250 crore.

250. Got it.

Great. Thank you so much for this.

Thanks, Mukesh.

Yeah. I would like to thank everyone for joining the call.

I hope we have been able to respond to most of your queries adequately. For any further information, we request you to please do get in touch with us directly.

Thank you.