Thank you. Good evening, everyone, and thank you for joining us in the quarter four and the full-year '26 financial year earnings call of Samvardhana Motherson International Limited.

FY '26 has been the year of strong execution and steady progress. We delivered our highest ever quarterly and annual revenues alongside steady profitability and further strengthening of our balance sheet.

Our performance reflects the resilience of our diversified business model and disciplined execution across businesses. These results were achieved despite elevated commodity prices, especially copper, inflationary pressures, and ongoing geopolitical uncertainties.

Our continued focus on execution, cost discipline, and operational excellence helped us navigate these headwinds effectively. For the full year financial '26, we maintained CapEx discipline in line with the guidance, with investments largely directed towards future growth and new capabilities.

I am pleased with further improvement in our de-leverage position, which now stands at its lowest level. Even as we continue to invest in our growth, this provides us with flexibility to support future expansion.

Our booked business value of $96 billion remains strong and diversified, providing a good visibility for the coming years. We are making steady progress on our Vision 2030 roadmap.

With that, I conclude my opening remarks. For in-depth details on results, I hand over to Vaman and team for a walk-through in the business insights.

Thank you, and over to you, Vaman.

Thank you, Papa. FY '26 has been another defining year for Motherson.

We continue to demonstrate the strength of our diversified business model, the resilience of our operating structure, and our ability to consistently outperform underlying industry growth despite an increasingly volatile macroeconomic environment. I am pleased to share that we achieved our highest ever quarterly as well as annual revenues during the fourth quarter and the year.

These milestones are not only a reflection of the strong execution across our businesses, but also validate the strategic direction we have taken over the last several years: building a globally diversified, multitechnology, and increasingly nonautomotive platform through our 3CX10 strategy and DEMAL capabilities. Starting with the quarterly performance, Q4 FY '26 was our highest ever revenue quarter, with revenues growing 17% year-on-year.

Growth was broad-based across businesses and geographies, and was further supported by the successful integration and scale-up of Atsumitec. What is encouraging for us is that the growth was not dependent on any single customer, geography, platform, or technology, but came from the strength of our diversified portfolio.

EBITDA for the quarter grew by 42%. EBITDA margins improved by 200 basis points year-on-year in the fourth quarter.

Margin expansion was supported by improving profitability in our emerging businesses, particularly Lighting and Electronics, and also Aerospace. Over the years, we have consistently communicated that several of our newer businesses are initially in investment-heavy, but once scale is achieved, they begin to meaningfully contribute to our profitability.

FY '26 is another example of that strategy translating into results. Normalized PAT for Q4 FY '26 grew by 66%, driven primarily by scale-up in operations, operating leverage, and improving business mix.

As you're aware, the reported PAT includes exceptional adjustments pertaining to provisions made in respect of business transformative measures in Central and Western Europe, which amounted to ₹177 crores post-tax. These measures are aligned with our ongoing efforts to optimize our footprint, improve our competitiveness, and structurally strengthen operations in the region over the medium term.

For the full year, we crossed another major milestone, with annual revenues exceeding ₹1.25 lakh crore, growing by 11% year-on-year. Growth was driven by strong momentum in emerging businesses, complemented by resilient performance across our core automotive businesses as well.

FY '26 EBITDA grew by 11%, while margins remained resilient at 9.5% despite significant inflationary pressures in the commodities during the year. This demonstrates the effectiveness of our operational excellence initiatives, cost optimization programs, and improving efficiencies across plants, particularly within the modules and polymer business.

Normalized PAT for FY '26 grew by 17%, supported by improved operating performance and lower finance costs. The reported PAT for the year includes adjustments related to transformative measures in Europe amounting to ₹328 crores post-tax; the impact of the new labor code of approximately ₹25 crores post-tax; and accelerated amortization of certain intangible assets amounting to around ₹45 crores post-tax.

Importantly, these results were delivered in a reasonably supportive external environment. Passenger vehicle industry growth globally for FY '26 is estimated to be around 2%, primarily driven by emerging markets such as India and China.

We also expect planned European OEM launches in FY '27 to support passenger vehicle growth going forward. On the commercial vehicle side, the developed markets ended FY '26 positively, with an estimated annual growth of 5.4%.

We continue to remain constructive and bullish on the CV outlook for FY '27. However, the operating environment was far from easy.

Copper prices increased sharply by about 16% sequentially during fourth quarter and were nearly up 38% year-on-year. In addition, geopolitical tensions in the Middle East led to crude-linked inflationary pressures towards the end of the quarter.

Polymer prices in Germany also increased significantly following the escalation of the conflict, while global freight and container costs also moved up meaningfully. That said, Motherson's business model is designed to navigate such cycles.

We have long-term pass-through arrangements with our major customers for raw material price variations. While there may be a timing lag, 1 to 2 quarters before settlements are realized, these mechanisms provide structural protection over the medium term.

Similarly, our globally local manufacturing strategy continues to be one of our biggest strengths. We manufacture in or near the markets we serve, which substantially reduces dependency on long-distance supply chains.

As a result, disruptions arising from Red Sea shipping challenges and broader geopolitical tensions have had minimal impact on our operations. For customer-nominated components, we also maintain back-to-back supplier arrangements to mitigate cost escalation risks.

Coming to the businesses highlights for the year: Our automotive business division achieved an all-time high in revenues, supported by strong execution across divisions. Detailed divisional performance has been covered in the presentation, but what is particularly exciting is the accelerating contributions from businesses built using our DEMAL platform and capabilities.

Our consumer electronics business scaled up significantly during the year, with revenues increasing approximately 7.5x year-on-year. Q4 revenues further grew around 46% sequentially, supported by operationalization of the second facility in Q3 FY '26.

During Q4, we achieved production run rates in line with our targeted annual guidance of 14 to 16 million units. Importantly, the business achieved EBITDA profitability during FY '26, a major milestone in our scale-up journey.

The third facility remains on track for commissioning in the third quarter of FY '27, and will include additional upstream integration capabilities, which should support both growth and the margin enhancement. Similarly, our Aerospace business continued to demonstrate strong momentum.

Revenues grew 40% year-on-year, taking the top-line expansion to nearly 10x over the last three years. The order book increased by over 20% to USD 1.6 billion, providing strong long-term visibility.

We also expanded our product portfolio across multiple platforms, securing orders for metallic parts, subassemblies, and wire harness across business jets and rotary-wing aircraft programs. Aerospace remains an excellent example of how our core manufacturing, engineering, and system integration capabilities can be leveraged beyond automotive into high-value adjacencies.

On the inorganic growth front, we continue to deepen our relationships with global OEMs and strategic partners. FY '26 marked the full first year of Atsumitec integration, and we are pleased with the progress.

We also completed the acquisition of another Honda-san linked asset, further strengthening our strategic relationship with that customer group. The acquisition of Yutaka Giken will mark our third Honda-san related acquisition and remains on track for completion by the end of first half FY '27.

The proposed acquisition of Nexans' automotive harness business will also significantly enhance our passenger vehicle and commercial vehicle wiring harness capabilities globally, deepen relationships with large OEMs, and create meaningful cross-selling opportunities for the group. In logistics, our partnership with Hellmann represents another big strategic step, allowing us to evolve from 3PL to 4PL capabilities and provide increasingly integrated solutions to customers.

Before we move ahead, I would now like to invite Gandharv to take you through some of the key financial highlights and performance metrics for the quarter and the year. Over to you, Gandharv.

Thank you, Vaman. Another major highlight for the year was our all-time high booked business of USD 96 billion.

This gives us strong visibility for future growth. Around 22% of the booked business comes from EV programs, while non-automotive contributes around 3% and continues to grow strategically.

Importantly, the booked business remains highly diversified across passenger vehicles, commercial vehicles, off-highway, rolling stock, two-wheelers, and other segments. It is also diversified across geographies and business divisions, with a growing share of higher-margin businesses expected over time.

Emerging economies continue to increase their contribution within the order book. These geographies not only offer superior growth potential, but also provide efficient manufacturing ecosystem that can support exports to adjacent developed markets under our globally local strategy.

Another key enabler of our long-term growth continues to be sustained investment in CapEx. Fiscal '26 CapEx stood at ₹5,911 crores, representing 49% of yearly EBITDA.

Investments were directed towards growth projects, backward integration, and maintenance initiatives aimed at supporting future expansion and improving profitability. For FY '27, we expect CapEx of approximately ₹6,000 crores, plus-minus 10%.

Of this, 50% will be growth CapEx and 50% maintenance CapEx. Within growth CapEx, we will continue to allocate disproportionately higher investment towards emerging businesses, especially Consumer Electronics, where we see substantial upcoming opportunities.

Currently, 16 facilities are at various stages of development globally, with 13 scheduled to come on stream during fiscal '27. We also announced four new facilities post last update: two for wiring harness and two for logistics business.

Notably, all 16 facilities currently under development are located in emerging markets, reflecting our continued focus on these fast-growing manufacturing and consumption hubs. Despite continuous investment in growth, our leverage ratio improved further and reached an all-time low of 0.8x.

This remains well within our long-standing financial policy of maintaining leverage below 2.5x and our internal aspiration of staying below 1.5x. This reflects deep financial discipline embedded within the organization.

ROCE, return on capital employed, moderated slightly to 16.1% this year from 17.2% the previous year, largely reflecting record CapEx investments towards capacity creation and future growth platforms. As scale improves, synergies from acquisitions are realized, backward integration increases, and operational efficiencies continue to strengthen, we expect ROCE to progressively improve.

We remain committed to our Vision 2030 aspiration of achieving 40% ROCE across businesses over time. Our diversification strategy under 3CX10 also continues to strengthen risk management capabilities.

Diversification across customers, geographies, and components remains one of the biggest structural strengths of Motherson. Overall, FY '26 has been a very strong year for the company.

Gross revenues stood at USD 22.9 billion. As FY '26 marks the first year under Vision 2030, FY '25 revenues have been restated to USD 21.2 billion using a constant exchange rate of INR 84.55 per USD in line with the Vision 2030 reporting methodology to ensure better comparability across periods.

We continue to move steadily toward our Vision 2030 aspiration of reaching USD 108 billion in gross revenues, while simultaneously improving diversification, strengthening returns, and maintaining financial discipline. In line with this progress, the board has approved a final dividend of ₹0.25 per share, taking the total FY '26 dividend to ₹0.60 per share.

This translates into a payout ratio of 16.4%, an improvement of approximately 1% over fiscal '25, and reflects our commitment towards progressively moving closer to our Vision 2030 dividend payout aspiration of up to 40%. As we look ahead, we remain very positive about Motherson's growth prospects, supported by increasing content per vehicle, electrification, electronics integration, and supply chain localization trends.

Backed by our deep OEM relationships, diversified technology portfolio, global footprint, and our proven DEMAL capabilities, we will continue scaling both automotive and non-automotive businesses, while maintaining strong financial discipline and operational excellence. We are fully charged up and excited about the opportunities ahead as we continue building a stronger, more diversified, and future-ready Motherson.

Thank you, and we will now open the floor for questions.

Congratulations on strong numbers to the entire team, and thank you so much for sharing the segment-wise geography break-up along with the results. My first question was on integrated assemblies.

Can you talk a bit directionally about the outlook for FY '27? You have highlighted 2x new program launches in comparison to '26.

Would that mean that this segment can have a strong growth in double digits, high teens for next year?

Go ahead, Vaman.

Yeah. Look, I think this is a very important year for MSAS.

I think you've seen that Motherson has very strong capability in integrating large-sized acquisitions. Of course, you can see the hard work done by the entire MSAS team and how they were able to also, of course, leverage on Motherson ecosystem and our customer relationships, and our purchasing, and the entire ability to look into more opportunities of growth within the customer group.

Look, we're extremely pleased. I think Frederic and the team have done a fantastic job over there.

We have really looked at all the places where we had leakages in terms of small red units, converted those, worked closely with the customers in winning new programs, and also diversifying the base and bringing different product groups also in with meaningful discussions. Definitely we see growth to happen this year as well.

Of course, it all depends on how many cars the customers sell. That's not in our control.

I think in terms of program wins and where we're looking at in terms of diversification of the things that they're doing and the growth opportunities, we should definitely see meaningful growth come in MSAS. Of course, I can't guide you exactly on the numbers because, like I said, a lot depends on the customer sales that happens, since they are completely correlated to that, but we're extremely hopeful and positive that they will continue to grow from here.

Hi. Thank you for the opportunity.

I had three questions. I'll take them one by one.

The first question is on the cost increases that you highlighted. For example, overheads going up, energy costs, polymer prices going up, etc.

From the past, I recall that during the Russia-Ukraine crisis when the same thing had happened—gas prices, polymer prices, etc., shot up—there was a lag in getting the pass-throughs from the customers. If I recall right, while copper is contractually arranged in terms of the pass-through, overheads and costs such as polymers, etc., are negotiated.

Can you please help us understand what the situation is now? Is it contractual with respect to these overheads and polymer, or is it negotiated?

Yeah. It depends on customer to customer, and there is a mix of both because all customers follow their own styles.

Definitely, the partnership with the customers is only getting stronger with the volatility and everything that there is in the market, because they want meaningful a supplier partnerships. Then, no one's really looking to pull each other under the table just because of one macroeconomic event which benefits one over the other.

I think in times like this, the partnership and the relationships that we have with the customers really comes to the front. As we've done numerous acquisitions, turned around companies for them, entered new products.

They are also understanding that there's some things that are out of our control. Yes, in some customers there definitely is a lag; some customers follow the contracted approach.

There're always meaningful conversations to be had, and there is definitely a lag also that happens depending on the commodity. If you remember, even through the entire year, we were also putting a lot of reorganization kind of measures in and driving operational efficiencies, and also tried to reduce some of our red units.

We've also had a very strong order book win. A lot of those things are all playing off.

Some of the new units have also launched, which are now taking businesses, those fixed costs are being covered. It's a combination of all those things that you're seeing that the strong performance has led to.

Definitely, a lot is to do with close communication and relationship management with our customers.

Sure. Thank you.

A couple of other questions. One is when is the Nexans deal going to be completed, and when will we start booking revenues?

This is Pankaj here. We expect closure sometime in end of June, beginning of July.

That's the time when it should get consolidated,

with all the

regulatory approvals in place. Some of them are already in progress.

That's our expected timing.

Sure. Thanks.

The last one that I had was when we look world over, we are seeing that yields are going up across the board. Wanted to understand your debt: is it protected from short-term spike in yields, or should we account for higher interest costs going forward?

We have a combination of both fixed and floating is a diversified portfolio. To a certain extent, it's protected, and for the balance, it's a conscious call which we have exercised.

I think at the same time, the net debt to EBITDA in INR is probably at the lowest level that we have seen even though we've had the strongest CapEx outflow. I think we will continue to reduce this number going in the year.

Wherever it is unfavorable or moving in that direction with the cash flow generation that we're doing, we will have a significant opportunity to actually pay that out through our positive cash flow.

Positive cash flow. That's right.

Sure.

Thank you. That's all I had.

Good evening, sir, and congratulations on a very good performance. My question was on consumer electronics division.

I think the next plant will open in 3Q FY '27. Just wanted to understand what is the utilization level currently, and how the revenues will pace here?

Also, when I look at the top customers, consumer electronics customers are not reflected in that list. Have we included those customers also, or where are they?

Yeah. I'll take some of it, and Gandharv will probably support me on this.

Look, the third plant utilization is zero right now, because it's in startup phase, and then you will already do the testing prototypes and all of that, and that's when it will really come up, like I said. Once it comes up, actually it goes very fast.

Unlike automotive, which takes a couple of quarters to ramp up or a year also to reach the highest volumes, in the consumer electronics side, when the order starts, it really comes at full-fledged levels. The timing that we've given you, that's when it will come up, and the utilization will go significantly higher at that time.

Right now, it's the smaller units, GF1 and GF2, which we are using, which are almost practically fully used up in what we are doing. The meaningful kick will come as soon as the third plant is operational and takes on revenues, and then you will see those numbers as they come, because the order book for that only comes immediately before that the program kicks off.

That's when we get the full visibility. We think that it will be at very, very good levels, better than or as we budgeted for it, for what the construction that we have made.

Overall, extremely positive on that aspect, and I think that this will really contribute significantly. On the customer split, Gandharv, they're still are fixed in that "Others" segment?

That's right. This particular customer is included in "Others."

Just to support what Vaaman rightly mentioned, between GF1 and GF2, our annualized production guidance was around 14 to 16 million units, and which is what we have already achieved in the fourth quarter of the year gone by. From third quarter of the current fiscal, we should be able to see GF3 going into the streams, and from there, we should be able to take the growth level to the next level as far as this particular business is concerned.

Sure. Sir, this top 20 customers includes all divisions, or it includes only automotive?

All divisions.

Okay. There is no consumer electronics customer in top 20.

We are not also allowed to talk about few of those customers, and those names have not been included in the reporting.

Okay. Understood.

Secondly, just on the restructuring, can you give us an update what percentage of the restructuring is complete? Should we expect more benefits to come through going ahead, or are we already seeing most of the benefits?

Are you talking about the European one that we spoke about? Is that the one that you're talking about?

Yes. Yeah.

Look, I think a big chunk of it is done. Of course, you're seeing the situation that is happening in Europe and a lot of macroeconomic issues continue to plague the region where volumes growth are not as meaningful as we have expected in the past, but yet Motherson continues to grow through acquisitions and increase in let's say the value content that is going up.

Yes, I think we definitely do see more possibility for us to restructure operations, and I think we will also continue to acquire operations and resize them to make them perfect. As you can see, we have significant headroom for acquisitions.

All the acquisitions that we have done have integrated really well. You can see the performance of that.

That is what's leading to record top line for us and also the holding of the margins because we've brought this diversification in all the businesses in. I think the customers will continue to look at us for solutions, and at that time, more resizing will be required, because that is why those assets have come into problems, right?

From that sense, I think we're operating at a fairly strong base. We will further drive efficiencies in our business, but the more meaningful volume growth will definitely come from acquisitions that we envisage will come just like they have in the last few years, and when they come, they'll come in quite a bundled manner.

Okay. Finally, just one question on EVs: it's 22% of order book.

Can we also get an idea what percentage of revenues are EVs currently? Will most of the ramp-up in revenues now come from EVs given the scale of order book?

No, not at all. I think the revenue component is 11% around that.

Look, we are engine agnostic, right? In the sense that we are not really doing too much parts which is directly impacted.

We are able to support those variants that are both EV and non-EV. That's the majority of the business, even though we have done some strategic acquisitions to start looking at that, but majority of the business is still hugely agnostic to what the powertrain is.

The customers moving forward from only moving into an electric kind of a mindset have now shifted and said that they will move in all kind of powertrains. I'm generalizing, but they will offer all solutions.

They will also offer ICE, they will also offer electric, and they will also offer hybrids. Really to tell you what models get picked up, that's really dependent on the customer preference, how much the governments are supporting, what is being sold by the dealerships, but we are fully capable to supply the variants of our interiors, exteriors, wiring harness, plastic parts, mirrors.

All of these relatively can be picked up depending on what the customer pulls from us. That will only be determined when the volumes is actually picked up on by the customers.

We do not envisage a huge shift happening in a short period of time. Surely electric is growing in the portfolio, although it keeps moving up and down and has volatility, but we believe that the market will never be so that it'll only be electric or something like that.

It's horses for courses. Different markets will have ICE-dominated; different markets will move towards hybrids; different markets, for example, China, are already dominating electric.

There's no generalization to be had. It will all depend on how the market goes and what the government support is, and, again, what the customer's preferences are.

Thank you, sir, for all the detailed answers, and best wishes.

Thank you.

Yes, hi. Good evening, and thanks for the opportunity.

Just a few clarifications: In your break-up of emerging businesses, if I look at Lighting and Electronics, and I'm assuming that consumer electronics is part of that, despite the very sharp uptick in consumer electronics, the revenue growth in Lighting and Electronics is just about say 30%. Is it fair to say that the lighting business has had a fairly tepid year, or am I overestimating the impact of consumer electronics here?

I think Lighting and Electronics definitely had a very strong year, Amyn. I think, again, you're not seeing that meaningful rise because GF3 is still to come up.

As soon as GF3 comes up, you have to understand that GF1, GF2 are minute size compared to what we are building at GF3. GF3 is the largest facility that we will have in Motherson.

It's the size of 33 football fields that is going to come into commission. That I think you should really look at this number next year, and then you will see the real impact of the electronics business that comes on stream.

On top of that, I think we're doing numerous more initiatives. You've seen some releases also about Motherson Electronics where we're looking to do our own PCBAs, our SMT lines.

We are building a lot of strength on that. Even on the wiring harness side, a lot of focus is going into electronics with the new technology that is coming over there in the EVs and things like that.

I think, again, with the Nexans integration, a lot of stuff will more happen towards the electronics field. I think it's a wait and watch.

Please see what happens in a year or two. We're driving extremely strong in semiconductors, in consumer electronics, and all of these will become really meaningful in a couple of years to come.

Please just be patient and understand that in a very short period of time, we have already supplied to some of the world's biggest names and scaling quite fast. Although the automotive business continues to scale itself, this growth becomes a bit minute because you're comparing to what has already been in automotive for the last 50 years.

All of this has just come up in the last couple of years. Just be patient.

I think we'll be having a very different discussion next year.

Sure. Look forward to that.

Just for context, GF1 and GF2, you mentioned that in Q4 you're hitting the annualized run rate of 14, 16 million units. GF3 will be a multiple of this, or any broad indication are you giving right now that GF1 and GF2 is 14 to 16, GF3 will be 2 to

3x,

5x of this, something like that?

I can't give you, but, yes, it will be a multiple of it because that's how it's designed to be. It was for us to prove to the customers that we are capable, and now we're building the big plant to come in.

Wait for a couple of quarters to really see that number because, like I said, I think the most exceptional part of this business is that the order book only runs for that one year, right? Then next year you get the next order.

It's not like automotive where it's a gradual increase, then moves into high, then the thing starts to decline. It goes straight 0 to 100 because you have to produce as much as you can as soon as you win the order for the selling season, and then you move a little bit lower into spares and all that, and you already start working on the next program.

It's a very different sort of a industry, a difficult one, because we're obviously more used to the automotive side, but I think the team has done a wonderful job to adapt and challenge this new industry. The work you will see in a couple of quarters' time and see how the team has wonderfully adapted and taken on this challenge, and you'll see that reflecting in the numbers in a very sharp way.

I'm quite excited to report that to you in coming quarters.

Okay. Just on the Aerospace business, would it be fair to say that out of the ₹2,400 crore odd revenue, a large part of this would still be a business which is still being done in Europe, but your expansion is mainly India, there should be a large scope for expanding margins here as these revenues go up?

You always hit the nail on the head. Actually, we were looking at the order books, and the Indian order book is perhaps even larger than what we have in the European side.

The growth is coming in a tremendous fashion. I think you all saw on our investor day that we had the customers there and how they're looking at Motherson to partner and grow their order book share in India.

It's extremely exciting what's happening on the aerospace side. Not only are we looking at that, we're also looking meaningfully to penetrate the semiconductor business through the capabilities in aerospace because they are complementary, and that is also some seeds which we have started, although extremely small right now, but hopefully in coming years that will also scale up in a meaningful size.

We are extremely pleased with the growth that's come in the aerospace, and this is really the first step: more meaningful acquisitions, more global growth, and, of course, India being the center of growth in aviation with what's happening with the infrastructure development around it and the Indian consumers growing rapidly, preferring to take more and more airplane routes and more airports being built in India with an infrastructure. We believe it's going to be a lot many years of growth to come, and we are in great shape to take advantage of that growth.

Great. Thanks for answering the questions, and I'll come back in the queue.

Thank you.

Hi, team. Thanks for the opportunity.

Just starting with the consumer electronics: Earlier we had talked about ₹2,600 crore CapEx in that business. Where are we on that number, and in this CapEx guidance of next year, have we increased it, or is it just that is already included in this?

Thanks, Binay. You are right.

That was the guidance that we gave last year. For the current year, we are in the process of finalizing the numbers.

It should be broadly in the range what we guided in the last year, but allow us a quarter to come back to you with a firmed-up numbers.

Okay. Secondly, on the 16 million exit number that we talked about, that is unit number.

Any guidance on what is the revenue per unit?

Look, we can't guide on that yet. I think, again, let it become meaningful by GF3, and I think that's the time where we will start to talk more about the exact numbers once it's of meaningful size.

Right now, again, just GF1, GF2 are too small to be able to disclose those numbers in a meaningful way. Let GF3 come out, and you will see a much clearer picture, and that will have the meaningful impact for you as well.

Even then the Lighting and Electronics EBITDA that we see, currently the contribution of this business will be fairly small in that, right? That's a fair way to understand, right?

That's right. That's right.

That's right. That's right.

Then this moving to Aerospace, now we have two facilities coming up in the first quarter of FY '27, both in India. We had a very strong FY '26.

What kind of a growth do you see in the coming year?

Look, the order book for the aerospace is at record number for us. I think are we allowed to disclose the order book?

$1.6 billion?

I think, yes. Again, that is some number that we have already disclosed: $1.6 billion is the order book.

These two facilities will cater to that additional demand. I think it doesn't stop there.

I think this year, again, we are hungry for more growth and perhaps if we are able to secure some big orders and also look at some acquisitions, that number will continue to grow. These two plants are for the new capacity and the order book that we already have in hand, which is about $1.6 billion.

Over what period? Because the current revenue is $250 million or so in aerospace, $1.6 billion is over how many years?

Usually in aerospace, it's about 5 to 8 years around that, depending again how much the customer pulls. Usually we've seen that that gets front-ended because, like I said, I think the demand in India is extremely strong at the moment.

This will not stop there. I think we are aiming to grow even further from here and have bigger wins this year, and hopefully we'll come back to you in subsequent quarters to tell you how that order book is going.

It's consistently grown. It was at $1.2 billion, I think, the last time we reported it, $1.6 is a meaningful jump on that just in a few quarters.

As you can see, the exponential growth is happening now, and hopefully these numbers will only continue to go in that direction.

Thanks. Just last, going back to the auto business, we have this one comment on slide number two where we are saying that European OEM launches in FY '27 expected to support growth.

We know that seems like Europe is having a weak summer for auto production. These launches that you talk about, are they the usual course of business, or this year you have an exceptional number of new launches coming through, which can help you offset the industry weakness?

It's a very good point. I think, yes, one, our restructured footprint is going to help us, because we are definitely cleaner in these locations.

Definitely the new order wins, and they're coming with exciting new attributes in the car. All of them are content-heavy, value-increasing.

As you can see, a lot of the new EVs are coming with a lot of feature-rich content. A lot of the newer cars are coming with exciting new technologies, exciting new materials.

The way that we are going after these with the content-heavy kind of stuff, we definitely believe that these launches will help both meaningfully in top line and bottom line for us. Also, I think it's important for people to understand that the customers in Europe are not always the same.

Even the new customers in Europe are coming in from outside Europe, and they're producing in Europe. Our customers have realized that they thought they could get somewhere else from the normal source in XYZ country, but in Europe they are doing local manufacturing, and then that's where our opportunity is huge.

That's what is there. It's a huge mix of new customers, old customers, old models, new models.

Everything is happening at this time. We're already at the edge of our capacity, what should I say.

Great. Thanks, team.

Thanks for the detailed response.

Thank you, sir, for the opportunity again. In wiring harness division, there is an extremely strong margin expansion of 170 bps Q-o-Q, and this is despite the copper price increase and also some contraction in margin in Motherson Wiring India.

What is the driving factor for this margin expansion? Is it mainly operating leverage across the global entities like PKC, Stoneridge?

Yes, it's mainly because of the operational improvements. Since it's a global business, there were some entities in some parts of the world which had not performed well earlier, which have done better in this quarter.

You're right, there is an impact of copper, which is a lag, which we should be recovering in the coming quarters.

Thank you for that. And...

As we move forward, we see also that market's recovery in the North American side will also come in, which should also help us to become even much better.

Noted on that point. One clarification: input cost inflation like commodity, there is a automatic pass-through with some lag.

On energy, gas price, freight costs, there has been some increase in the recent months. Would these higher costs reflect in Q1?

Is there an automatic pass-through here with customers, or would that happen through negotiation?

On these costs in the quarter gone by, the impact was there only for a few weeks, which was not necessarily very significant. You are right, in the current quarter, most of industries have incurred these additional costs.

In our businesses, generally these are a matter of negotiations. We have very strong relationship with our OEM customers, and over the period, albeit with a lag, we should be able to recover most of these increases, the cost, from the customers.

Noted, sir. Just a last question: leverage position is very strong at 0.8x, and there was one comment where you indicated that debt will continue to reduce.

Given the uncertainty, wouldn't you be looking at more inorganic opportunities, or would there be debt reduction? How should we look at that?

At Motherson, we continue to evaluate inorganic opportunities. Whenever we come across any inorganic opportunity in line with our philosophy, generally at the behest of the customer, we certainly explore.

As Vaaman mentioned as a response to earlier question, we continue to generate healthy cash flows, and we will use these cash flows for supporting our organic growth in the form of CapEx, and wherever required and possible, we will also retire debt to ensure that we utilize these cash flows in meaningful manner.

Thanks, Gandharv. It's Gandharv's job to return the debt, and my job to spend more money.

Look, I think you all know our targets of 108. I think Gandharv and the team are doing a superb job to keep tight control on the finances and keep that operating leverage very much favorable.

We definitely have to keep headroom. If we want to go after that 108 target, whenever we are speaking to the customers, we know that there are a lot of issues still out there, a lot of suppliers that are still in trouble, and a lot of factors that are still very much creating chaos in the supply chains, and will require investment, will require CapEx, will require upgradation.

We are keeping headroom for that. I think that's something that's around the corner.

Of course, we will be disciplined, as we always have been. We will wait for the customer to approach us.

Our thinking is that that is around the corner, and that's why keeping this healthy headroom where our operations can continue to grow, as Gandharv already said, we're looking to spend considerable amount of CapEx this year as well to meaningfully grow our top line. We want to keep money for the acquisitions that will become a game changer for us for the terms of products and the customers and the product segments that we serve.

On top of that, the new businesses all are doing extremely well. The customer's confidence is growing on us, and we know that those acquisitions also around the corner, because once you solve a customer's problem and then they're happy with you and the trust goes up, you're the first person they think of when they have the next problem.

We're inundated by that. Honestly, our pipeline for possible acquisitions is probably also at quite a high in those terms, and we're patiently waiting.

All we have to do is continue to deliver to these high levels of quality that the customer expects, be extremely cost-conscious, and be high in their ratings, and the opportunity will present themselves. Customers are definitely calling us in, and as we talk, we're looking at opportunities.

Of course, we can't disclose. We will only do that once they are meaningful and all the things are sorted out with the customer.

As we speak, we're looking at meaningful opportunities to again change the trajectory of Motherson and get closer to our Vision 2030.

Thank you, sir, for sharing the thought process, and looking forward to the announcements. Thank you.

Good evening, sir. Firstly, congratulations on a great set of numbers.

Doing a CapEx of ₹2,600 cr in a consumer electronic business, that's probably larger than most of the EMS companies in India. The kind of growth that we've done, 7.5x this year YoY is also incredible.

It's like we found a new TAM to deploy our DEMAL capabilities. Going forward, this year also can we expect maybe, if not 7.5, at least a 5x growth YoY for the consumer electronics business?

Why not 7.5?

That would be great, sir. That would be great.

Look,

this is a very key point for Motherson. We have realized that electronics is core to a lot of the products, not only touching the automotive side, but of course as an independent segment as well, and that's why we are deploying more and more capital to it, building more competency, adding on to the team.

You've also heard about potential new joint ventures that we are forming, of course acquisition opportunities that are strategic, and inorganic growth. All of this will definitely lead to meaningful multiples of growth in the electronics division.

Now, of course, a lot depends on again our ability to execute and the customer's confidence in us, but we are completely committed to having a lot of growth in this division.

Secondly, sir, during the Q2 PPT, you had mentioned that our order book for the consumer electronic and aerospace business was close to $3 billion. Today you mentioned that our aerospace business is close to $1.6 billion order book.

Is it fair to assume that the rest of it is consumer electronics and to be executed in 6 to 12 months?

It's safe to assume that next time I have to be more careful with my words. Look, I think overall, and it's not just that one plant that we're looking at.

It's the complete electronics. Like we are buying a lot of our own PCBAs, and for our SMTs, and things like that as well, right?

All of that will meaningfully contribute in this coming year, because our own electronics company, which is going to be doing with a lot of SMT lines that we're setting up, that will contribute. We're going to bring a lot of that purchasing in-house.

That, along with the consumer electronics, along with our increasing focus on electronics in the other segments, that's something that we are targeting. Now it may come plus-minus 10% to that number, but, yeah, we're hopeful that it's on the positive side and continues to grow from here.

Sir,

broadly, this consumer electronics business JV, even though it's a JV, it will be consolidated, right? What margins are we looking at it, close to 20% margins for this business?

Look, I would want even more, but all I can say right now is let GF3 scale. I think it's definitely better than what our group is doing at the moment.

Of course, I cannot give you an exact because we don't guide on margins, but this should be helping to increase our ROCE because investments have been done and the returns will start to come. Like I said, give us some time.

I think we are very excited about the business. This is our first step into a business like this.

Will we ever hit the number that you're talking about goes to see how things pan out and how much we can build our strength internally. None of these businesses ever start out at those kind of margins.

You have to build up the capability to reach those kind of margins. Like I said, I think the first fundamental step has been made, and it will be in the positive direction.

Hitting EBITDA positive already at this stage is a wonderful sign. Where it reaches, I think we'll have to wait and see.

Like I said, we're more focused on the ROCE rather than just the EBITDA number, because that's what's more meaningful to us.

Sir, last question is so you mentioned that order books also we get orders when the facilities are live or something. The order book that we have right now, taking out the aerospace, to be expected to increase by Q3 FY '27 and would the entire execution come in FY '28 for the order book, given the order cycles are 6 months to 12 months, as you mentioned?

No, no. For consumer electronics, it's that much.

For the automotive, it's more 2 to 2 to 3 years depending on how we have won it, and that'll go on for the next 5 years. Aerospace is even longer than that.

It'll it'll come within again 2 years or a little bit less than that, but that'll go on for maybe 10 years, maybe even longer than that, because as you know the the airplane platforms last for sometimes 20 years, even even longer than that. The order books are generally around that around that level.

There's of course upgrades, changes, a lot of those things kind of happen. Now you see that the complete strength of Motherson, the demand, you have the fast-moving consumer electronics space where everything is already decided in 1 year: the new product, the order win, the order execution is all within 1 year; to more towards the medical devices, which is perhaps a little bit longer; towards more automotive, which is even longer; towards aerospace, which is the longest and goes all the way up to, order execution of of 10 years' time.

Again, the whole idea is to diversify the business, to be able to, reduce the dependency on any one industry, and be able to grow even times of high volatility. I think that's what's playing out.

As you can see, we're in severe macroeconomic turmoil, but the diversification in our in our business is what's helping us to grow. Sir,

broadly, I would say it's safe to say $1.4 billion of consumer electronics to be executed in FY '28? There's a new CEO that's come at Apple, quite a big change.

They may be our customers, and does that have any impact on our business? Sir,

that's your assumptions. Again, we're not here to talk about our customers or any customers out there.

I think that is, again, your assumption of what's going to happen. I think the best person to answer those questions is the customer that you're talking about.

We're here to answer questions about our business.

All right. So $1.4 billion for FY '28, consumer electronics.

With God's grace, we will do more than that. I hope so.

Again, all depends on what the customer pulls and what happens.

[unclear] one quarter to

go or something like that, no? If he thinks, that's all that we have

to

[laughter].

Let's see what happens.

Yeah. Okay.

Thank you, sir. Thank you.

Hello? Yeah.

I just wanted to understand that in terms of net revenue, what would you say your 2030 Vision would be?

Net revenue?

Yeah.

It's a gross revenues. It's a gross target because it's a vision for the entire group, and that's a $108 billion gross revenue target, not net.

That would imply a CAGR of 47% over the 4 years. Am I understanding that right?

Yes, and I think that is something that we have done over the last 50 years as well.

All right. Thank you.

This is the seventh 5-year plan, boss. [laughter]

We have very high ambition, right? The idea is to think big, to think out of the box, to get ourselves out of the comfort zone and to live our purpose, which we have defined for the company.

In fact, you might be holding on to that 108 and thinking that that's the only thing that's driving us. That's not.

For us, top line is vanity, bottom line is sanity, cash in the bank is reality. That's our dream, that's our ambition, but we will be opportunistic.

At the same time, we will be financially disciplined and we will only go after opportunities where the customer wants us to be. We are preparing ourselves for 108, and we will be ready for 108.

The opportunities have to present themselves.

All right. That helps.

Thanks for taking my question, and congrats on a great set of numbers. My first question is regarding a global OEMs, every customer, they have recently kind of given write-downs on their EV investments.

Also in recent quarters, they've mentioned of supplier compensations regarding that. Can

I tell you so? I've been saying that for the past 20 years, but you guys were not listening.

[laughter]

Right, right. No, no.

Absolutely. Just a deeper dive, they've also mentioned of supplier compensations in the current quarter that they've given, which has hit their margins.

Have we received some of that in this quarter as per some compensations on that side?

We don't know what you're talking about. I don't know which guy has given compensation.

They pass through for the investments and all that. We were never on that.

We were always on the right side of the thinking that everything is not going to become EV. We were agnostic to the engine right from the beginning.

Again, like my father is saying, we contractually are bound to a contract to supply something. Out of that contract, things happen, that's within the compensation, not because EV didn't really pan out.

That is the customer's prerogative on who they want to give to, who they want to make sure that they survive or not. That's up to them.

Motherson is a financially strong company. That's why we are winning business from our customers and have a deep relationship with them.

On our products, whatever our contracts was, that is what we have rightfully taken from our customers and given them what they expected from us: the product and the quality that they expected.

Great. Great.

Second question is on the emerging business. If you see the Precision Metal & Modules segment, that has seen a stellar growth of 2.7x.

If you could just talk a little bit about what is driving that and what is the outlook going forward for that segment?

Great question. I think that's another key area for us to grow.

I think machining is a core focus for us. You've also seen the growth happen meaningfully there because of Atsumitec acquisition will reflect over there.

Large part is the growth over there. I think, again, the team has done a wonderful job to integrate these acquisitions that we have said add meaningfully to the top line and bottom line, while maintaining all the other ratios and improving them for the rest of the group.

That's what you're seeing. The business itself is also growing.

We've done a couple more acquisitions in this also in the past like Rollon, etc., that we had announced. All of them are firing really well.

Machining continues to be an area that has growth, has meaningful contribution, and something that we are extremely focused on, because that does not even just span on the automotive side, but also on the aerospace, and potentially consumer electronics in the future when we win those kind of businesses as well. We're looking at machining and precision machining as real core focus moving forward for all our segments.

I think all of you have been advised a lot about what we are doing and how we are performing. Important for you all to understand that we are a fast-moving company onto where we want to be.

Thank you for your support, and thank you for your questions. Thank you very much, and have a great week and months ahead till the next time.

Take care. Bye.