I am from 361. Anyhow, I'll introduce the management.

Good afternoon. Thank you for joining us today, and welcome to ZF Commercial Vehicle Control Systems India Limited's call to brief you on their Q1 FY 2026-27 earnings.

Today, the first quarter earnings for FY 2026-27 will be presented by the management team of ZF Commercial Vehicle Control Systems India Limited. Your hosts today from ZF Commercial Vehicle Control Systems India Limited are Mr.

Paramjit Singh Chadha, Managing Director, Mr. Shankar Venkatachalam, Head of OE Sales, Mrs.

Swathi Datta, General Manager Finance, and Ms. Sivikavya, Company Secretary.

I will now hand over to Mr. Paramjit Singh Chadha, who will provide with further insights into the results.

Over to you, sir.

Thank you, Annamalai. Good afternoon to all of you.

I warmly welcome you all to ZF Commercial Vehicle Control Systems India Limited first quarter results for financial year 2026-27. Certain forward-looking statements that we will make today are based on management's good faith and expectations concerning future developments.

As the actual results may differ materially from these expectations as a result of many factors. A transcript and recorded audio of this call will be available on the website, ZF, www.zf.com, under the ZF CV India Investor Relationship section.

ZF Commercial Vehicle Control Systems India Limited's results for the quarter ending 30th June, 2026 were published on July 24, 2026. They are available on the website www.zf.com under the ZF CV India Investor Relations section.

We hope that you have already gone through this. I am happy to talk to you today as we give you an update about the business performance.

First, we will discuss about industry and economic updates. I will begin with a brief overview of the macroeconomic and industry environment relevant to our business.

The Indian economy continued to demonstrate resilience and strong growth momentum with GDP expanding by 7.8% in Q4 FY '25-26, taking full-year growth to 7.7%. The growth was supported by robust services sector performance, sustained investment activity, and improving consumption trends.

Industrial activity also remained healthy with output growing by 5.1% in May following 4.9% growth in April, driven by strong manufacturing performance and continued expansion in the power and utilities sector. While mining activity moderated during the period, overall industrial growth remained broad-based and positive.

Inflation increased to 4.4% in June primarily due to higher food and energy prices. At the same time, moderating global energy prices continue to provide support to India's growth and inflation outlook, although geopolitical developments and evolving monsoon conditions remain areas to watch.

From an industry perspective, the outlook remains encouraging. Strong domestic demand, continued investments in infrastructure and construction, growth in logistics and transportation activity, and rising replacement demand from aging fleets are expected to support commercial vehicle demand in the coming quarters.

This is sourced from RBI monetary report. Second point, we will talk about Indian commercial vehicle industry.

India's strong economic momentum was reflected in the commercial vehicle industry with commercial vehicle more than 6-ton production growing by 8.4% in Q1 FY '26-27, supported by healthy freight activity, robust infrastructure-led demand, and continued strength in core sectors. The industry outlook remains positive, underpinned by structural growth drivers such as continued expansion of logistics and e-commerce sectors, sustained infrastructure investments, and increasing adoption of advanced and electric mobility solutions.

Government initiatives focused on transportation modernization and public mobility are also expected to support long-term industry growth. On a segment-wise basis, the mix of buses, medium-duty trucks, and heavy-duty trucks remained broadly stable during the quarter.

EV bus sales reached 1,417 numbers, reflecting the continued momentum in public transport electrification supported by ongoing deployment and healthy order pipeline. The trailer segment, however, witnessed a decline during the quarter primarily due to slower mining activity, monsoon-related disruptions, and higher input costs, which weighed on market demand.

Source: RBI Monetary Report and FADA report. Next, we will discuss about OE sales.

During Q1 FY '26-27, our sales in the commercial vehicle more than 6-ton segment grew by 8.6%, marginally ahead of industry's 8.4% growth, reflecting our ability to capitalize on market opportunities and execute effectively in a dynamic operating environment. Growth during the quarter was partially impacted by certain headwinds, including a 9% decline in trailer market demand and a widespread shortage of blue-collar manpower across India during April and May, which affected production across the industry.

Despite these headwinds, we are at par with the market, supported by improved realizations from new product introductions such as exhaust brake valve, ECAS variants, along with increased market penetration of our e-compressor solutions. Looking ahead, the industry outlook remains positive, supported by resilient demand fundamentals, while geopolitical developments, inflationary pressures, and commodity price volatility remain factors to monitor.

Strong freight movement, infrastructure activities, and replacement demand continue to provide a favorable backdrop for growth. In this environment, we remain focused on executing our strategic priorities and strengthening our market position.

We continue to expand our presence in electronic stability control, ESC, solutions ahead of upcoming truck safety regulations. Having secured business nominations from three major OEMs and progressing discussions with other key customers, we are well positioned to reinforce our leadership in advanced braking technologies.

The Vehicle Scrapping Policy is expected to support replacement demand by accelerating the transition to safer, more fuel-efficient, and technologically advanced commercial vehicles. In parallel, we are accelerating the introduction of new technologies, including upgraded compressor platforms, track servo with rear sensors, ECAS, EBS, and e-compressors for electric vehicle applications.

We are also increasing the market penetration of our EV-focused solutions, particularly e-compressors and EBS systems across independent bus manufacturers. Over the long term, we remain confident in growth prospects of commercial vehicle industry, supported by an evolving regulatory landscape, an expanding replacement cycle, and increasing adoption of electric and advanced vehicle technology.

Talking about aftermarket, the aftermarket business delivered a strong performance in Q1 FY '26-27 with sales of ₹158.4 crore, representing a 15.6% year-on-year growth. We also achieved our highest-ever monthly aftermarket sales in the month of June '26 with revenue of ₹63.06 crore, underscoring the strength of our aftermarket franchise and customer reach.

This performance was driven by improved fleet utilization, healthy replacement demand, and an increasing focus on preventive maintenance by fleet operators. Growth during the quarter was further supported by our strategic focus on aftermarket segment, complemented by enhancing manufacturing capability that improved product availability and supply reliability.

We continued to strengthen our market position through the launch of new products, including disc brake rotors, TRW products, and clutch master cylinders. These initiatives under our SPARK, Spare Parts Automatic Reforms Kick-off, program contributed meaningfully to revenue growth and market share expansion.

Looking ahead, continued investment in infrastructure across both the public and private sector are expected to support fleet utilization and sustain aftermarket demand. We remain focused on accelerating growth through new product penetration, expansion of our ASC network, and continued roll-out of SPARK initiatives, including door control retrofit solution to further strengthen our market presence and customer reach.

Talking about exports of goods, on the back of the headwinds created by US tariffs, which resulted in muted growth in previous quarters, the industry is now showing signs of recovery. Although the US market witnessed a decline on an annual basis, it is currently dampening, and the outlook for the upcoming quarters remain positive for both the US and European markets.

Against the backdrop, the company reported export revenues of ₹271.4 crore in Q1 FY 2026-27, registering a 9.7% year-on-year growth compared to the Q1 of FY '25-26. This growth was driven by improving market demand and higher volume of double diaphragm spring brake actuator, UNISTOP disc, and cram cam brake chambers, as well as air compressor.

In addition, the successful launch and ramp-up of new products, including the UNISTOP disc brake chamber for North American customer, contributed significantly to the growth achieved during the quarter. Looking ahead with a positive outlook, particularly in the US market, which is witnessing a strong ramp-up, along with sustained demand in the European market, we anticipate a steady improvement in export demand.

We remain focused on proactively navigating the evolving business environment through continued investment in new product launches, accelerated product ramp-ups, and increased penetration of key product lines, including compressors and actuators to drive future growth. Regarding export of services, export of services recorded a strong growth of 12.5% in quarter one FY 2027 compared to the same quarter last year, which was driven by sustained expansion in engineering activities delivered from India to our global centers.

Regarding ESG and sustainability, sustainability remains an integral part of our growth strategy, and during the quarter, we continued to advance initiatives focused on environment, stewardship, resource conservation, and sustainable mobility. At our Lucknow plant, we commissioned 2,100 kl rainwater harvesting system, further strengthening our water conservation efforts and supporting our water-positive agenda.

At our Ambattur plant, we completed the transition from LPG-based cooking systems to electrical induction method, reducing LPG consumption by approximately 16 ton annually and supporting our decarbonization objectives. ZF CVS also rolled out an electric vehicle EV policy for employees across locations, promoting sustainable mobility through employee awareness and engagement programs.

Recognition and awards: our continued focus on sustainability and operational excellence was recognized through prestigious industry accolades during the quarter. The CVS Ambattur plant received CII Gold Award, securing the highest ranking among more than 350 automotive sector participants with an outstanding score of 95%.

This recognition followed a rigorous assessment conducted by a panel of CII environment, health, and safety experts. Further strengthening our ESG credentials, the Ambattur plant was also honored with Spotlight Award for decarbonization and climate action, recognized its significant achievement in carbon reduction, sustainable operations, and environmental stewardship.

These recognitions reaffirm our commitment to embedding sustainability into our operations while creating long-term value for all stakeholders. Updates on engineering and R&D: our engineering and R&D teams continued to drive innovation and support business growth through the rapid development and launch of key products, including the next-generation electronically controlled air suspension and type 24/24 high force spring brake actuator, enabling new business wins with leading OEMs.

The team also strengthened our aftermarket portfolio through the launch of CV brake pads and hydraulic steering systems while introducing quick-fitting for trailer segment, further expanding our product offering across key customer segments. To promote the adoption of advanced vehicle technology, we conducted multiple Technology Days events at the ZF test track and customer locations, showcasing solutions such as electronic braking system, electronic stability control, advanced driver assistance systems, modular brake stability program, electropneumatic handbrake, and electric door system.

These engagements received encouraging customer interest and strengthened our technology leadership position. In preparation for upcoming safety regulation, ESC homologation testing commenced for multiple customers at ZF proving ground, further enhancing our testing and validation capability.

The hemi-anechoic chamber testing laboratory at ZF test track received NABL accreditation, reinforcing our commitment to engineering excellence, quality, and innovation. These initiatives reflect our continued focus on delivering advanced technology, accelerating innovation, and supporting the industry's transition to safer, smarter, and more efficient mobility solutions.

Talking about manufacturing updates, we continue to strengthen our advanced manufacturing capability through our multi-divisional Oragadam facility serving both domestic and global customers. During the quarter, we successfully productionized new assembly lines for AS-Tronic cartridges and vacuum pumps while scaling up production of e-compressors and brake signal transmitters to support growing customer demand.

To enhance capacity and operational agility, we commissioned new assembly lines for brake actuators and valves across our manufacturing network. Strategic investments at Jamshedpur, Lucknow, and Pantnagar further improved production flexibility, responsiveness to customer requirements, and delivery performance.

Our operational excellence journey continues to gain momentum with the successful completion of the ORAN maturity assessment at Ambattur plant, delivering encouraging results across multiple dimensions of manufacturing performance and operational maturity. In parallel, the continued deployment of ZF Commercial System, ZF PS, including key initiatives such as shop-floor management and resource qualification, is strengthening operational discipline, enhancing KPI visibility, and driving sustainable productivity improvements across all set locations.

These initiatives underscore our commitment to manufacturing excellence, operational efficiency, and continuous improvement, providing a strong foundation to support future growth and customer success. Talking about various awards, I am pleased to share that in Q1 FY 2026-27, our teams received three national awards and five regional awards across competitions organized by leading industry bodies such as CII, ACMA, and QCFI.

In addition to this, several recognitions at the state level. These achievements reflect the dedication, innovation, and continuous improvement mindset of our teams while reinforcing our commitment to operational excellence, quality, sustainability, and best-in-class manufacturing practices.

Some other topics: during the quarter, there were important changes to the company leadership team. We would like to place on record our sincere appreciation for Ms.

Sweta Agarwal for her valuable contributions as Chief Financial Officer and wish her success in her future endeavors. To further strengthen our leadership and governance framework, the board approved the appointment of Mr.

Rakesh Mishra as Chief Financial Officer effective September 1st, 2026. With over three decades of experience across finance, governance, compliance, and business transformation, he brings significant expertise to support the company's next chapter of growth.

Board also appointed Ms. Sivikavya as Whole-Time Company Secretary and Compliance Officer effective 25th July 2026.

Her extensive experience in corporate governance, secretarial matters, and regulatory compliance will further strengthen the company governance and compliance framework. During the quarter, we also participated in Prawaas 5.0, India's premier public transport and mobility exhibition, where we showcased a wide range of advanced technologies focused on safety, connectivity, operational efficiency, and electrification.

The event provided an excellent platform to engage with OEMs, fleet operators, and other key industry stakeholders. We received encouraging customer response across our technology portfolio, particularly for our range of door control systems, which received strong customer appreciation for their enhanced passenger safety and integrated fire detection capability enabling faster evacuation.

The strong interest reinforces the growing demand for intelligent safety solutions and validates our focus on technologies that improve passenger protection and operational efficiency. Talking about financial performance, now we are moving to financial performance for the quarter.

For your ready reference, the results were made public at 1:43 p.m. on 24th July 2026.

I hope you have had a chance to go through them. We are happy to share that the quarter ending June 30th, 2026, our total income stands at ₹1,101.8 crore with 5.7% growth compared to Q1 of previous financial year.

However, our revenues from operations grew by 9.3%. Excluding foreign exchange gains/losses and one-time expenses, our income increased from ₹1,001.5 crore in Q1 FY 2025-26 to ₹1,100.6 crores in Q1 FY 2026-27.

The company's profit before tax for Q1 '26-27 stood at ₹140.1 crores, while profit after tax amounted to ₹104.5 crores with a degrowth of minus 14.7%. However, if excluding the impact of foreign exchange gains/losses and one-time item, which was in the previous year ₹43.7 crores, profit before tax stood at ₹140.8 crore in Q1 '26-27, representing a strong 16.9% growth compared to the Q1 of previous financial year, excluding the foreign currency impact.

The year-on-year difference is primarily attributable to absence of the significant FX gain ₹39 crores and higher one-time income ₹4.7 crore recorded in Q1 of the previous financial year. In contrast, Q1 of current financial year was affected by an FX loss of ₹1.98 crore and lower one-time income of ₹1.2 crores.

We also discuss the challenges which we faced in quarter one of '26-27. During the quarter, we faced certain external headwinds, including volatility in forex, key commodity, energy, and consumable prices driven by geopolitical developments, as well as an industry-wide shortage of blue-collar manpower during April and May, which impacted production costs across several manufacturing sectors.

To mitigate these challenges, we intensified our focus on aftermarket business and implemented selective price increases effective July 2026. We continue to engage proactively with OEM customers on commodity and foreign exchange cost recovery measures with a portion already realized and the balance under active discussions.

Under our PERFORM 26 initiative, we remain focused on continuous improvement measures, CIF, productivity enhancement, value engineering, material cost optimization, and manufacturing efficiency improvement to help offset inflationary pressures and strengthen profitability. In closing, we remain confident in the long-term growth prospects of our business, driven by increasing adoption of advanced safety technology, strong aftermarket momentum, a positive export outlook, and a robust innovation pipeline.

We are well positioned to capitalize on opportunities ahead. We will continue to focus on innovation, operational excellence, customer centricity, and disciplined execution to create sustainable long-term value for our shareholders and stakeholders.

I would like to thank all our stakeholders for their continued support. Thank you.

We now welcome your questions.

Thank you for the opportunity, and congrats on the ESC nominations. Sir, just on the firstly on the ESC nomination, sir, you mentioned in the press release you've won orders across the 12-volt and 24-volt systems.

Just want to understand now will the ZF address the across the CV segments including LCV, which is more than 5-tonner segment as well? Just the LCV the 12-volt system, will the content be slightly differ than say 24-volt system, sir?

This is Shankar here taking your question. The ESC win is only across the pneumatic ESC domain, whatever we have shared today in the press.

As part of the 12-volt segment, it's mostly the intermediate commercial vehicle segment, which is in the 12-volt region. That's the focus, which is mostly pneumatic ESC.

To answer your question on the content per vehicle, it remains the same.

Got it, sir. Sir, coming to second part, basically just want to understand if an update particularly on the LCV side.

We had earlier talked about LCV product portfolio where we want to expand towards LCV and were targeting around €90 million revenues by 2030. Also just on the longer term, how do you see the ECAS regulation extending to more segments of CV?

How ZF is particularly actively working a lot towards the software in the CV industry as the CV industry players are focusing a lot on the improving payload and the efficiency?

Okay. Let me break this down question by question, perhaps.

On the LCV segment, firstly, I think the first focus is on the advanced braking systems. As you might be aware, we are already in series supply on certain hydraulic ESC portfolio products for some of the key OE customers in India.

Apart from this, we are also working on the booster and tandem master cylinder for some segments of the hydraulic braking portfolio and looking to grow that business further. We are working towards the expansion, as you mentioned, towards a bigger presence in the braking segment, to start with.

Coming to your second question on the ECAS, we are already present today with most of the key bus OEM partners, where we are working to position ourselves as an ECAS supplier partner. Potentially, there is a legislation coming up in the future.

There was talk about all the vehicles adopting the ultra-low-entry buses. When that happens, we will be there with all the OEMs.

Apart from the bus segment, we see this in few of the truck segments, primarily in the tractor-trailer domain, where we see the tractor-trailers having height adjustments to be able to adapt to different variations in the trailers. This is the one other potential that we see that getting adopted and possibly extending into the tractor and trailer segment on the truck side.

What was your third question again? I missed the last

On the software part. A lot of CV players are focusing on the payload, etc., to drive efficiency.

Just want to understand how ZF is working to take this opportunity, sir.

On the software part, we are basically into the telematics domain already, which provides a comprehensive way of evaluating how the performance of the vehicle is and in terms of the fleet operation management and tracking. Apart from that, we already are into the trailer EBS and the trailer pulse mechanism settings, which provide capability to do a load monitoring, load evaluation as well.

These are all capabilities and features that are already available. Looking ahead, then there is also the work towards the software-defined vehicle, which we are at a conceptual stage as a company and trying to see how OEMs would be interested in partnering with us and taking that concept forward.

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

Thank you.

Yes, sir. This is Mukesh Saraf.

Thank you for the opportunity. My first question is on the ESC nomination itself.

You've mentioned that you'll be part you're already nominated for three OEMs. Would your market shares in this ESC be similar to the pneumatic braking system market shares we have, given that you're nominated?

Or is this going to be nomination platform-wise, segment-wise, or is it across the board you will be supplying?

Thank you for the question, Mukesh. I would like to take that.

To answer you, yes, as we have been nominated with most of the major OEMs, we would be retaining our majority position in the market, and we will continue to work with them on ABS plus ESC solutions, which we are offering across the Indian market.

Right. In the previous call, you had also mentioned that OEMs will typically want to work with the same vendor for the entire ADAS suite, so that will include AEBS also, for example.

Now that you're working on ESC with these OEMs, in all probability, should we assume that AEBS will also be a part of the supplies for you?

I think during the last call it was also mentioned that today the market has provided several options that are available wherein the AEBS ADAS portfolio can be disconnected from the braking, and there are many service providers that offer this solution in the market. We are at this point of time in the ABS plus ESC domain as a majority player.

With the ADAS, there are many other players in the market as well who offer the solution as a stand-alone.

Right. AEBS is something that we'll have to still wait and see how, whether we can get in nominations there as well.

Today, we have a few partners in the e-bus domain. We have already been nominated by a few of the key bus manufacturers, where we are working with them on the ABS, the EBS plus ESC with the complete suite of solutions that offer the complete set of features which we have as it is available in the European market.

That's the full suite. This is where we are looking to position this product and take it forward from there.

Got it. Secondly, we starting manufacturing next year third quarter for the ESC.

How would the levels of localization be for this product to begin with?

We are working on a high level of localization with our local EMS partners, where we have possibilities to localize the ECU as well as some of the other products which we are using. Already, we are somewhere near 40% to 50% localization.

By the time SOP, we will be greater than 75%. Perfect.

Got it. Just last question on exports.

We do understand that last year we've seen some impact with the tariffs in across US. Could you give some sense on the outlook this year?

Because I think we've been talking about a lot of new orders that we're winning, especially in Europe. It would help to understand how exports can pan out for us this year, how's the order book looking like, new product introductions, all of that.

During the current quarter, we are seeing a momentum that is gaining back after the last year lull, and this is primarily driven by some of the actuation products from North America, as well as some of the air compressor portfolio products. These are the key growth drivers which are being produced out of our SEZ plant in Chennai.

We are looking that this outlook continues to remain positive in the coming months as well.

Any guidance or any sense can we see continuous double-digit growth in our export revenues for this year?

At this moment, we are not able to predict because there are a lot of geopolitical uncertainties around it. I'm

sure

nobody in the world could put a finger on it for sure, but I would say it looks positive, for sure.

In the sense that

we would be definitely looking at a strong rebound happening in the market.

Understood. Great.

Thank you so much. I'll get back in the queue.

Thank you.

Hello. Thanks for the opportunity.

Sir, first, a two-data question. Can you provide the domestic OEM growth for this quarter, as well as the US and Europe market growth Y-on-Y?

8.6. I think the domestic year-on-year was 8.6% over last year.

Okay.

Commercial vehicle growth approximately 8.5%, 8.5%, yeah.

Okay. What about the US and Europe markets?

US and Europe markets saw degrowth versus last year, approximately 10% degrowth, while overall we I think Europe I think US market was a bigger degrowth than the Europe market. That was the bigger level growth, but our overall sales has been better.

Sir, can you just provide some commentary on how the domestic demand is currently behaving in the Indian market, your talks with the current OEM players and everybody, just about how the domestic demand is behaving in terms of production?

Yeah. Typically, the July, August, September months are usually seen as the dull months due to the monsoon, wherein the heavy vehicle production and vehicle demand would come down.

However, this time, we are seeing a kind of a growth scenario situation, where we see the July month itself we are seeing an average of 40 to 42k vehicle production, which is almost 10,000 higher than typical July. Looking at August and September also seems to be at par levels.

There seems to be a good growth by the OEMs, a good rebound in this quarter itself, potentially towards a growth sector that we will see in the quarter as well.

Sure. Sir, I didn't hear properly when MD sir said at the beginning of the call that this quarter was impacted by certain headwinds across the industry.

What was the actual headwinds if you can repeat, please?

Yeah. Actually, that there was a shortage of aluminum also.

It started from in fact previous quarter also, and also the shortage of gas and the prices increased. Aluminum has gone higher, close to ₹100 from around 260 per kg, and it has gone up to more than 360 per kg.

It has started coming back in July. Approximately we see that ₹25 is reduced, and it should taper down if the geopolitical situation starts improving.

This is one major contribution in commodity side, and also there are some increases in the oil prices, consumable grease, and other things. Anything related to chemical, including rubber, plastic, they have seen increase in in this quarter and in fact from in the previous quarter.

Sure. Understood.

Yeah. Just the last one, sir.

What was the one-off in the base quarter?

What was?

What was the one-off

expense

in the base quarter?

One-off expenses were ₹39 crore was basically a forex gain, which we had due to some the billing was done of the services at a X price of FX, but we got it at 1.08X. Around 8% higher forex gain we booked in this last year first quarter.

That is close to ₹39 crore, plus there was some actuarial valuation one-timers, so that total amount was ₹43.7 crore. Which in this quarter is only close to ₹1.98 crore, that is basically FX loss.

That is why you see this difference.

Basically, there's a delta of ₹40 crore on Y-on-Y basically in other expenses, if I'm right?

You are right. Absolutely right.

Okay. It's 40

Yeah.

Sir, thank you. That was my question.

Thank you.

Welcome.

Hello. Thank you for the opportunity, sir.

My question is regarding services. How do we see the services growth for the full year?

Yeah. Currently, we have seen around 12.5% growth last quarter versus this quarter.

I think we see that it should remain at this level even in the coming months.

Because

we are also doing engineering services for digital solutions, integrated brake controls, applications and performance improvement, advanced products, and also related to some cybersecurity engineering services for India.

Okay. Sir, my second question would be regarding the results.

Sir, employee cost has been inflated Y-o-Y. Any particular reason?

Employee cost?

Employee cost has been inflated Y-o-Y, any particular reason?

One is that we are having the increment every year, which is to be booked under the quarter. Also in the export of the services, around ₹8.4 crore is recovering to the recovery that is shown as employee cost increase, but if you go there, it is also shown under the recovery.

It is also ₹8.4 crore. Overall impact is not ₹17 crore, it is close to ₹3 crore.

Sir. Thank you.

Hi, sir. Thanks for taking my question.

Sir, firstly on the gross margins, over the last two quarters, Q4 last year and Q1, we have seen some pressure coming in. Could you highlight as to what kind of pass-throughs are we expecting from the OEMs and what is the timeline for the same?

As Paramjit mentioned, the kind of pass-throughs what we are seeing are related to inflation from RM commodities, as well as related to the West Asia crisis, which led to certain commodities like LPG, other products which are byproducts of the crude oil and petroleum-related outcome. As a result of these, those products are the ones where we are now jointly working with OEMs to see how to get.

I would say we have already recovered one portion of it, but there are others where there are ongoing discussions with OEMs as they recalibrate their own internal activities and their books. This is also something that we will be securing over the next quarters.

Typically, this happens over a one or two-quarter lag, but owing to this conflict, it has taken little longer than usual. That's the impact that we see.

Got it, sir. This recovery that has happened, some part of it, that has happened in Q2, correct?

The current quarter.

It is already reflected in It is already reflected in Q1.

That is in in the previous quarter.

That is in the Correct. Got it, sir.

Secondly, sir, our other expenses on a Q-o-Q basis have bumped up by around 10%. Any one-offs you would like to call out?

Other expenses, when compared to Q4, there is a FX loss of ₹2 crore, and then there is an increase in certain CSR expenses, and then there is an increase in consultancy and IT cost, and then there is a directors' commission and rental expenses of service location. These are the four categories under which it comes under.

The delta is approximately ₹12.4 crore.

Got it.

Apart from the above, the overall it remains.

Thanks. Thank you.

Welcome.

Hello? In closing comments, I would like to say thank you very much to all the team members in ZF and also all the stakeholders, investors for supporting us during this challenging quarter as well.

We have been able to sail through the volume expectation and other expectations from OEMs and aftermarket. Thanks very much to all.

Thank you.

Thank you. Thank you.