Ladies and gentlemen, good day, and welcome to the Gabriel India Limited Q3 FY 2024 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Kolhatkar, Managing Director of Gabriel India Limited. Thank you, and over to you, sir. Thank you. Good morning, everybody, and a very warm welcome. Before I start, a very, very happy New Year to everybody. Happy 2024. Joining me today on the call is Rishi Luharuka, our CFO, Vijay Jain, our Company Secretary, and SGA, our Investor Relations advisors. We uploaded the results after our board meeting yesterday. I hope you had a chance to glance through them. I'll, of course, take you through the presentation as always. So what I'll do is, in fact, straightaway go into the presentation. So if you all are referring to the presentation, I will straight go to slide number five, where it shares the highlights of the quarter, Q3 that went by. So the revenue was INR 814 crore, so which was a good, reasonably good third quarter. As you all know, third quarter typically for the industry is cyclically low, Diwali being in that month and also the year-ending December month, so obviously, it's, I mean, always a little low. Despite that, we had a 14% year-on-year compared to the quarter, year-on-year growth. And this growth extended nine months to 11.1% increase in revenue, taking the total nine months to INR 2,484 crore. In Q3, what is more heartening was that our EBITDA margin stood at 8.8% compared to 7.2% in Q3 FY2023, which is, you know, clearly a significant improvement. And as we have been sharing for several calls, you know, we've been working on improving the margins, I mean, based on, you know, feedback from all of you as well. So this we have been able to do, so 8.8% EBITDA margin for Q3. As you can see in, again, on slide five, from Q4 FY 2023, it was 7.1, then to 8.6, then to 8.7, and now at 8.8. If you now move to the next slide, which is slide six, again, you know, the same figures in a different format. Now, I'll come to, you know, the industry dynamics. So in terms of passenger car, in Q3, there was the total industry sale of 11 lakhs and 1.1 million, again, which is high as compared to 10.86 in Q3 FY 2023. About 4.79 million passenger vehicles were sold in calendar, last calendar year, which is an increase of around 7.7%, with sales of 4.43 in 2023, 2022. I'm talking about the calendar year. And mainly, we have seen a wide adoption of sport utility vehicles and electric vehicles. However, electric vehicles penetration in passenger cars still remains very low at just about 2%-3%. But nevertheless, the numbers are increasing. In fact, you know, on a monthly basis, now we are seeing electric vehicle sales crossing 8,000 in terms of passenger cars. Passenger car grew in Q3 FY 2024, mainly due to robust economic growth, new launches, which happen typically during Diwali, and then, yes, in December, you know, there are a lot of year-end discounts offered by automakers. Out of the total PV sold, UVs accounted for 58%. So this, you know, we have been seeing this trend, for several quarters now, but now it's peaked at almost 58% of the total sale of PV is utility vehicles. So SUVs are really, you know, gathering a lot of momentum. This momentum will continue in 2024. Yes, while there is the election year, so the growth may not be as robust as what we have seen, you know, in the past two years, but it will still be a, you know, decent growth that we, we are all expecting in 2024 as well. Coming to commercial vehicles. Commercial vehicle production stood at 250,000, so we are well on track for 1 million commercial vehicles for the year. So the industry, I mean, saw a 3% increase year-on-year. This is definitely much lower than what we saw in the earlier years, I mean, where we had very significant growth in commercial vehicles. But, you know, now this is tapered down expectantly. So if you remember right, in the start of the year, we had predicted CV sales to be in, you know, just about double digits, so which is what we are seeing. And, this will definitely get affected, in the coming year owing to the elections. That, again, is, you know, based on a cyclical study that we have done over several past election cycles, where we see a little muted growth in commercial vehicles because the CapEx decisions, as far as government is concerned, take some time.... And however, I mean, having said that, I think we all know, the Indian economy, you know, trend and, the strong, foundation that it is on. So we have, I mean, we, we have nothing to worry, at all in terms of the longer term outlook. Coming to two-wheelers and three-wheelers, this has been, you know, encouraging that we have seen a notable recovery in two-wheeler segment, after the festive demand. The favorable, favorable momentum extended to Q3, with sales volumes reaching 55.88 lakh units, which is a year-on-year growth of 19%. The upstream is, attributed to various factors, including festive season, elevated rural sentiments. As you know, the sentiments were very depressed post-COVID, but they are slowly changing, thankfully. The wedding season, of course, also played a part in this, growth in, you know, the two-wheeler sales. In the electric vehicle segment, the sales fell by 34%. So this, of course, is much less than expected. I mean, when we had and we felt the EV sales pre the benefit is going away in June. So after that, obviously, we have seen a speed breaker in two-wheeler sales, electric two-wheeler sales. So we are seeing only a 34% growth. The same figure in the previous year used to be, you know, 400%, or in fact, 200%. So this is, you know, likely to get some fillip. We'll have to see as to what is the government stance on this. We all know also that the FAME II is going to end. The end date is actually March. So we'll have to see how this, you know, pans out in terms of the government policy. The total domestic sales reached 2.61 million units, reflecting substantial overall growth of 14%. Domestic demand is robust across variants, particularly electric mobility. I mean, coming back to the slides of the presentation, if we go to Slide seven, this is nine-month performance, where I'd only say that we did INR 2,084 crores for the nine months so far, with a EBITDA of 8.7% and PBT of 7.2%. Our balance sheet cash position of INR 214 crores. Our cash flow from operations to the tune of almost INR 100 crores compared to INR 21 crores inflow in nine months. And CapEx we incurred about INR 50 crores during the period. Slide eight is again the financials in a different format. We already discussed that, so I'll move to slide nine, which is the trends. So as you can see, I mean, the good part is ROC continues to be strong at almost 32%, and margins, you know, the improving trend is very, very clear. I'll then move to slide 11, which again, you know, tracks the year-on-year performance for the past almost decade. And you can see again the trend of EBITDA margin improving, the ROC at 32%. And moving to slide number 12, again, several ratios here, which again, I'll not spend time on. Coming to slide 13, which is a revenue mix slide, you can see that two-wheelers is now 61%, passenger car is 24%. Obviously, we are also seeing increased business in passenger car, and of course, in terms of both April business as well as the overall passenger car industry, which we just discussed. Channel mix remains largely the same, 86% being OE, 12% is aftermarket, and, you know, 2% is exports. So exports is a, you know, we'll come to that slide, of course. Coming to slide number... I'll move ahead a bit quickly. Slide number 16 is the Core 90 initiative, which we have been continually discussing with you, which has been, you know, the basis and the foundation on which we are trying to drive the margin improvement. Slide 17 shares our vision, which we have defined pre-COVID. That's why you'll see it still as Vision 2025. We did not want to change the date. We all know COVID took away two years, but, you know, we said we'll be among the top five shock absorbers in the world. As far as manufacturing is concerned, this is based on four cornerstones: exports, domestic dominance, M&A, and technology. So I'll spend a little time on each of these as to where we are. Exports, we did about INR 23 crores in the quarter, which, you know, is flat. But however, here, you know, we are working on a big order for as far as the passenger car is concerned, for exports. Not yet finalized. In addition, we also have, you know, some two-wheeler orders from two European customers, which we are working on. These are in final stages, so we are not yet able to share a firm LOI, but hopefully in the next quarter we should be able to share that, and we'll be able to convert that into a firm LOI as far as exports is concerned in two-wheelers. Coming to slide 20, which is the domestic dominance pillar. Here, I'll come to the individual you know segments. This is on slide 21, which is on screen, which you can refer to, which shows the performance on two-wheeler and three-wheeler. So here again, we have had 32% market share. We have also got some good new orders. We have won a previous new platform. We've also launched in the last quarter, the Aprilia RS 440, which is with an inverted front fork. So this is a mass production vehicle with inverted front fork by Gabriel. We also are working on a semi-active suspension with TVS. You know, we have had several trials overseas as well as in India. And we have also won a new EV platform, you know, from TVS. Here, again, in two wheelers, I'm glad to share that in Bajaj, we have one Platina business, which we were not there earlier, and we are also working on some other, you know, let's say, marquee brands of Bajaj for some possible new orders as well. Going to slide 22, which is the EV. You know, it continues to be strong. I mean, our, you know, business is quite strong on this front, and we have won new orders. As I said, about the TVS new EV platform, we already got that. We have won the Suzuki EV platform, which will be launched towards the end of the year, Suzuki two wheelers. The Ola motorcycle, of course, we are on that as well. So, you know, our EV penetration hopefully should continue and sustain at the good levels that we have seen so far. Coming to slide 23, which is passenger cars. So we have a 24% market share. Our market share with Maruti increases every quarter, and we also are happy to share that we have won the Swift platform as second source for Maruti. Just to share that I mean, Gabriel has never been on this platform, the Swift and Dzire platform, which is a very high volume platform for Maruti. But now finally, you know, we have been able to break through, as a second source, but nonetheless, we have a good opportunity, to, you know, increase our relationship with Maruti Suzuki. We also have won Tata Motors Curvv EV platform. That is the first EV platform that we'll be working on, Tata. We are also working with Tata Motors on another EV platform, but hopefully that, you know, we'll be able to confirm in the next quarter, because the discussions are yet in the, you know, final stage. We also have won the MQB 2.5, which is a new platform of Volkswagen. Currently, the vehicles that you see is MQB 2.0, I mean, the Kushaq, Slavia, Taigun and Tiguan. Taigun and. Yeah, I mean, these, these are, these are actually the MQB 2.0 platform. So we have also won the 2.5 platform. Slide 24 shows, you know, pictures of the SUVs. We just discussed that SUVs come to 38% of the market now. So here I'm happy to share that, you know, Gabriel is very well entrenched with all the SUVs. You can see, you know, right from, the Škoda Kushaq to Volkswagen Taigun, Toyota Hyryder, which shares a platform with Suzuki Grand Vitara, the Suzuki new Brezza, the Mahindra XUV, Mahindra Thar, Mahindra Bolero and Suzuki Jimny. And, of course, the, the, Citroën PSA C3 as well. Coming to slide number 25. This is on CVs, where, yes, we continue to have a dominant market share of almost 90%. So, you know, we are on all platforms that are, you know, being produced in India by Indian OEMs. And also, as far as the DAF, Netherlands is concerned, we are already working on axle dampers. We were only on the cabin dampers. So now that business has grown, based on the confidence and the delivery from us, because we are a zero PPM supplier. We won the award two years in a row. In fact, this year also, we should get the award. So based on that, they've extended us to the axle dampers, which is under development right now. Slide number 26 is the railways. As I always say, the volumes are small, but we have had a good, good growth, and based on, of course, recovery of, the railway production and, also, you know, our, I mean, our share of business is going up. I mean, we are mature stage. So our growth in this has been almost 40% compared to the quarter last year. Aftermarket continues to be strong. We did about INR 104 crore of sale in the aftermarket in Q3. So we'll continue the good work here. We have already, you know, launched several new projects, new products as well in this, and we'll continue to do so going forward. Coming to M&A, we all know, I mean, the Inalfa Roof Systems, we have tied up with them. We announced this on May 9, and I'm happy to share that in December, we delivered the first production sunroof to Hyundai. And in fact, in the month of January, we have started production at full scale level. So that's a record, really record, you know, record of getting the plant up to scale and up to speed. So we are supplying for the Hyundai's new Creta, which you have seen that got launched in the month of January. This is a, you know, I must say, a very satisfying ramp-up that we have done, thanks to the team, I mean, and great support from Inalfa. These are now, if you see, if you refer slide number 30, you can see the pictures. You know, we have shown the plant view. This is how the plant looks as of, you know, actually last week, and the internal view as well as of the assembly line and the polyurethane line. So we are producing here almost at the rate of, you know, 300-400 per day. This will only keep going up. Lastly, on the technology, you know, we have started the tech center in Belgium, in Genk. We have now moved to a larger premise, which also can develop as a workshop. So earlier it was only an office, now it's an office plus workshop, so we can do some trial and treatment as well. You know, now, in addition to the CO, I mean, who is Mr. Koen Reybrouck, an expert, we have also added one more person, expert in the suspension field, who has also worked with Formula One racing teams. He is also on board, and he operates out of Belgium. Coming to the tech center, while, you know, we had, if you refer slide number 34, we have seen the picture of the new, the new tech center in four-wheeler, as far as Chakan is concerned. We have also done a small facelift of our Hosur tech center, which we had inaugurated in December 13. So we decided that we should also, you know, do a refresh and renovation of the tech center. So that is complete now. So not only have we done a facelift in terms of aesthetics, we've also increased space inside and added some more, you know, validation equipment so that we can meet the market demands much faster. So that's about the two-wheeler tech center. And just if you go to slide number 36, we won the Bajaj Award, Platinum Rating Award, for two of our plants. Both Chakan and Nashik, both the supplying plants, won the Platinum Award, which is really... We are very proud of the same. At the CII convention in Hyderabad, we won the Manufacturing Champion Award, and also, I'm happy to share, the Sustainability Champion. So sustainability is, of course, very, very dear to us, as a company, as employees and as a group as well. We continue, you know, leading a lot of efforts in this particular aspect, and looking at every investment that we do, or every product that we make with the lens of sustainability. So I'm glad to share, we got our industry recognition for the sustainability. We already had an award from Royal Enfield for sustainability, so we'll continue our efforts to improve our journey on sustainability. Just to share, we have just released our ESG report, which will be on the website very shortly. We already finalized the report, and you'll see it on the website very shortly. So that's briefly about, you know, what has been went by, and a few other updates I shared with you. So I would now end my address here and keen to listen to your feedback and your suggestions. Now, thank you. Over to you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and one. The first question is from the line of Mukul Mangalesh from Anand Rathi. Please go ahead. Yeah, thank you so much for the opportunity, sir, and congratulations on the healthy margin performance, market share gains and the robust order wins, and also getting the sunroof plant ready in a short period of time. So my question is on, on the sunroof division. Can you provide more update in terms of new orders or RFQ wins, from the Korean and other OEMs? And also, the first model, which we are supplying, is seeing a robust demand in the market. So how do you see the revenue in the first year? And lastly, can you also update on the status of JV formation? Okay. Yeah. Thanks, Mukul, for having your appreciation. Coming to the sunroof, your question specifically in terms of orders for Koreans, so as I said, we are supplying for the Seltos, and we have already got the order for a new Kia platform, which we're working on. The SOP of that will be in 2035, early 2035. So that is, you know, what we have in hand right now. In addition, we have got RFQs from. You know, because this product, of course, we can get only when a new, completely new vehicle comes on to the planning stage as far as the OEM is concerned. So we have got, we're working on RFQs from two other OEMs right now in the advanced stages. So we'll have to wait for maybe a month more before we can confirm anything on that front. But a very good interest from all OEMs in terms of, you know, extending RFQs or showing their interest. Yeah, and in terms of your last question of, you know, what could be a likely order, and, you know, Mukul, that we do not share any guidance in terms of revenues, so I really can't do that. But happy to share that the sunroof plant has started producing at a, you know, as I said, currently at almost a level of, you know, 300-400 per day. ... Got it, sir. Very foundational to your question. Yes. Yes, Mr. Praveen, sir. Yeah, I mean, you know, It's moved from, you know, the Ministry of External Affairs to MHI, Heavy Industries. I mean, it has been cleared by both of them. Now it's gone to the next stage. So I think maybe, hopefully by next quarter, we'll get, not hopefully, quite surely by next quarter, we'll be able to share something positive on this. But however, as we have discussed, we have a PLA with Inalfa till the time the JV is formed. And I must say that we are getting, I mean, excellent support from Inalfa Korea and Inalfa Netherlands as well as this business is concerned. And in fact, this kind of SOP ramp up would not have happened without their very strong support. All the experts, you know, operating from Chennai plant, and now ASM has to share that, you know, most of the experts have left, and it is the Indian team, largely, that is now delivering this, you know, stable production department. Got it, sir. Second, also, Praveen, update on the new product line opportunities, which we are scanning and when we can see the next coming, sir? Yeah, I think we are actually working on a couple of them right now as we speak. As we have discussed, we have told in this call, in the coming financial year, our target is to announce at least one more. I mean, that we are working towards that target, but right now I can only share that we're actively working on two opportunities. Got it, sir. Sir, on the EV side, we've seen the E2 wheeler, E3 wheeler revenues growing at 40%-60% growth. Can you indicate how you're seeing the key customers like Ola, TVS and Ather planning to ramp up EV production in next 1-2 year perspective? And also, how are you seeing the getting orders from Bajaj for the EVs and the super premium motorcycle? What is the question, Bajaj? On the, how are you seeing the order getting for the Bajaj EV models and the super premium motorcycle models, sir? Okay. Yeah, so in terms of EV business, I think you know, all the OEMs have, especially the top ones, they've given a robust order book for us. TVS is ramping up, Bajaj is ramping up. So we don't supply to Bajaj EV, but Bajaj also has plans of ramping up. Ola has, I mean, not only ramping up, but we are also seeing that in terms of their you know, market share, and they continue to be number one. Ather also has given demand prediction. So we are seeing overall a good demand prediction. But yes, as I said, we'll of course have to see what happens after March, because you know, while we had done the same prediction earlier, but after June, this year, we saw things change. So if there is no change in terms of the benefits being extended by government, as far as FAME II, or if there's any FAME III, you know, we really don't know how it goes. We, we'll have to wait and watch. But the good part is the battery prices have come down, lithium prices have come down, so you're seeing... You've already seen some correction in recently, the passenger vehicles. I mean, yesterday, MG Motors dropped their price by INR 1 lakh, over INR 1 lakh. So, so we see that, you know, if it, if that continues, then, you know, even if the benefit goes, the demand for EVs will continue to be right. So that is, that's on the EV front. In terms of Bajaj, I mentioned, yes, they are planning to ramp up the EV, but we are not on Bajaj EV on the Chetak, I mean. As far as the motorcycle is concerned, we have got a Platina, and we are working with them on some premium models as well. Got it, sir. And just to this, sir, can you share the CapEx guidance for FY 24 and 25 for the standalone and the GV? That's all from my side. I'm not sure. The usual number of 120-odd crores is what we are planning this year, but we have still not formulated our budget. We'll be closing that in March. And so we see at this point in the two programs, so depending upon the LOIs, we will be investing, but as of now, INR 80 crores of investment have already gone into the EV. Sir, you mentioned INR 80 crore, right? Yeah, eighty. Okay. Okay, sir. Thank you so much for this. Thank you. Thank you. The next question is from Nihar Shah, from Enam Investments. Please go ahead. Hi, sir, thanks for the opportunity, and, great to see the margin and new orders coming through. Just had, you know, one clarification that I wanted on, you know, the expansion plan that you've mentioned. This, that, you know, slide talks about, the electrodynamic damper. Can you just, you know, throw some light on if this is a new product, or a new type of suspension that we're developing or if it's already been in production? And, you know, how do we see the future with this? Are you talking of the adjustable electronic hydraulic damper, right? That's what you are referring to? ... Yeah, so this is in, you've mentioned electrodynamic dampener on slide 14. So just wanted to check if that's the earlier, adjustable dampener, or is this something that's, you know, developed more by you two? No, no, it's, it's actually, this is the CapEx. This is not the product. Okay. You know, what you have listed in 14 is the CapEx for FY 2020. So it's a electrodynamic damper testing machine. Okay. Yeah. Understood. But since you raised the question on the electronic dampers, we are fine-tuning the final round of fine-tuning for the XUV, which is a demonstration product mainly from Mahindra. We had already done that and shown to the Mahindra tech team, including the CTO. The initial feedback was good, but now we are refining that in Europe. On the two-wheeler front, there has been, you know, I must say, surprisingly, very good interest in this product, and we had a joint tuning exercise with the TVS team in Belgium. You know, they actually came to Belgium to do the ride tuning themselves and check it out. Now we are also develop the same thing in India so that we can do more testing here in Hosur. So let's see how it goes. It's early days for two-wheelers, but I must say, we are, I mean, surprisingly and pleasantly quite happy with the traction it has seen in two-wheelers. Wow, that's great to hear. Also, you know, a couple of questions on the order wins that you mentioned. So one is on the Swift platform, right? I mean, that's a big volumetric platform. What is the typical share that a second source gets in this kind of products? Well, typically it's, you know, we operate on a 70/30, so the second source gets 30%. Understood. And, is anything changing from, you know, from Bajaj, Bajaj Auto side, you know, they believe in a, you know, large shares, business with them? Is something changing in terms of, you know, order wins on the Platina and other premium side that you're discussing with them? So I think, you know, the only thing, as you saw, you know, we got two awards, and we've been getting this Platina Excellence Awards for, you know, quite some time now. So as far as our quality is concerned, you know, we are quite well rated in Bajaj. So I think it's, you know, somewhere when you start delivering a, you know, good product consistently, obviously, it has to show some results, positive results, I mean. I think that's what we are seeing. Hopefully, you know, we should convert this opportunity. So Platina is a good start, and I'm sure we'll be able to do something more. Got that. And the last question from my side is, you know, recently we've had a couple of exchange filings regarding a lot of management reshuffle that's happened in Gabriel. Can you just talk about the transition that's happening and, you know, and how we are going about that and, any changes to the structure? So, yeah, I mean, these are actually regular changes that we do, not only at Gabriel, but even at group level, where it's career planning, you know, of individuals. So this is in fact, as you know, this is one of the strengths of ANAND Group. So we have got, like, you know, my sunroof plant head is, and the WCO is from ANAND Group company, because we wanted a resource, who, you know, who could come on board without affecting the Gabriel team. So we got it from ANAND Group as a career planning for his own sake. Similarly, Atul Jaggi, who was our Deputy Managing Director, he will be moving to Mahle Filters to head that business as MD, which is our, you know, JV with Mahle of Germany for air filters, oil filters, and fuel filters and also some more air intake manifold and some new EV products, which the JV has, the partner has. And we already, you know, and Puneet, who was heading the two-wheeler, also moved on to another smaller JV of Anand, which is with Haldex of Sweden for in the commercial vehicle space. So we already replaced that. So we had a, you know, fair bit of planning done. So we are happy that Anand Sontakke, who has headed both business development and sourcing in MAHLE Thermal Systems, and then he moved to MAHLE Filters as head of the PNL. And he had moved out of the group, and he's, you know, joined us back, a very, very seasoned professional, and proven track record. So he's joined us as the head of two-wheeler business. So these are, you know, changes, but happy to share that we are able to attract one of our good talent back into the group. So he'll take over the two-wheeler business. The rest remains the same. There is one more change, that Vijay, who was our head of quality, he superannuated. We had extended him by six months. So we had planned that, and we moved one of our resources called up named Abdul Wali, who was earlier in supplier quality and again, a very good performer. We have moved him into the place of Vijay, as you know, planning for as part of succession planning. Got you. Thanks for the answers, and, all the best. Thank you. Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from the line of Viraj Kacharia from SIMPL. Please go ahead. Thanks for the opportunity, and congratulations on good set of numbers in such a challenging environment. Couple of questions: firstly, if you can just give some perspective in terms of the share of Gabriel in the premium motorcycle or premium two-wheeler space, and similarly in the higher ticket space in PV. So, you know, based on the pipeline and the order wins we have currently, how our share would have changed? Okay. Yeah. Yeah, thanks. Thanks, Viraj. It was nice meeting you at the World Mobility Show. Yeah, sir. So yeah, we, we did discuss on the sidelines as well on several aspects. On this particular question on, you know, the pre, share and premium, we, we don't have it offhand right now, but we can revert back to you. But just to share that, in, in the premium segments, in terms of the passenger car, we just shared that picture of the SUVs that we are there, which is a high growth area. So we are there on, I mean, absolutely all the... They're not premium SUVs, but the higher end SUVs, which are sold in India. So right from the Suzuki Grand Vitara and the Toyota Hyryder, which is offered in the hybrid version, you know, the demand is very strong there. There's a huge waiting list. Mm-hmm. The Škoda Kushaq, the Volkswagen Taigun, the Mahindra XUV, Mahindra Thar, and the Suzuki Jimny. So these are all, I must say, they are on the, on the higher end of the SUVs. Mm-hmm. So, if you can refer to slide number 24, you can see that our share is 35% on the utility vehicles. Mm. And if we at premium utility vehicles, this in fact will be even better. But let me revert back to you on these points separately. Sure. Now, just on the initiatives in export and aftermarket, right? I mean, some time back, we shared the aspiration of more than 20-25% of revenue from these two segments put together. Exports, you know, we earlier talked about us engaging at advanced stage with respect to VW and other few other OEs for supply. Any update you can give in terms of, you know, export, if any of those have materialized? Yes. on the PV side? Yeah. Sorry, yeah. Yeah. So I can tell you that I've already shared that takes time, but you know both two key OEMs is that we have had one very important visit last week by one of the OEM who is a global purchase head for the entire OEM for the OEM for the entire globe as far as this commodity is concerned. We had his visit and it was a very very positive visit. And he's assured that we will look at opportunities globally. So it's a good first and good breakthrough. And the second OEM which we are discussing with they are visiting us in the next week or not next week on twenty-third to be precise. So the, again, the head of that committee globally, she's visiting. So that will also be an important thing, which will definitely, you know, pave a new way as far as our exports with these two large OE- global, globally large OEMs are concerned. So I can only share this right now. Both are on positive. We have been working on both of these, so, it's on the right track. Yes, it will take time. One of them will materialize faster, surely. I can say, I mean, we can get an order in the next, hopefully in the next three months. The other one may take a little more time, but yeah, positive developments on both, both the OEMs which we have been working with. Okay. So these are typically single model, single planned order, or, you know, when you're interacting at a global level, these are more spread across, you know, plants or models, you know, typically- For geography. Okay. Based on geography, in fact. Just two questions. You know, in the past, we talked about, pricing as a strategy to gain share back in PV. And last few calls, we've been talking about recovering the pricing piece. So in terms of the profitability in the PV, the thinking was to, bring it to a normalized level as what you're seeing in two wheelers and others. So in that journey, where would we be now? And incrementally, when we're getting these new orders or building for new pipeline, is that strategy still lying, by and large, there, or, you know, now we have more evolved in terms of the overall offering or solution, and that's where the position is? Viraj, Rishi, you, your question had the answer in itself. Two-prong strategy, broadly. One is, where we require a customer penetration, or a model penetration, there, the strategy of price may be required. Having said that, the Code Ninety program thereafter kicks in to ensure that the profitability is normalized. Happy to share that, YTD December has been very heartening in terms of, the profitability margins for passenger cars. Are we there where we want to be? The answer is yes, no. There is still some scope of improvement there, but we've seen a significant improvement in the margins of, passenger cars. Okay, just two last questions. One is on aftermarket- Viraj, may we request you to rejoin the queue as there are several participants? Yeah, sure. Thank you. Thank you. We move to the next question. The next question is from Shashank Kanodia, from ICICI Securities. Yeah, hi, good- ... Yeah, hi, sir, good morning, and thanks for the opportunity. Sir, just wanted to check on the sunroof part. In one of your comments, you mentioned that the ramp-up of these facilities, dependent upon the new model launches. Because I think the initial standing was that we have a, it's an import substitution product and ready market given by Kia and Hyundai. So if you could please clarify. Yeah, yeah. So, Shashank, you know, let me clarify that this is an import substitution, of course. Like this Creta, the new, the new Creta that has been launched, so it's an import substitution from them. In fact, we have some import stocks, which we'll get over, this month, and it'll be a complete switchover to, localized production by IGSS in Inalfa Gabriel. Similarly, Kia EV is the same. But in terms of, new models, I mean, obviously, when now-- when they develop a new model, it'll be from day one with the localized sunroof. Right. Right. So, sir, we would we still be qualifying to supply to existing Hyundai and Kia models, right? Let's say Kia and, We have been approved as a supplier by Kia completely. Right. Sir, since you mentioned that you already operated an ordering of roughly 400 units a day, by FY 2026, we should expect this plant to ramp up to its full capacity of 200,000-odd units? By 26? Or do you expect that to happen in 25 itself? Again, these are subject to volumes, OE, I mean, naturally, but this is, as I said, this is on a single source basis, so, you know, whatever the OE, OE makes will be with our sunroofs, the assurance that we have. But in terms of how their volumes as well as the end market is concerned, we can't take or guarantee. Based on the volume indications that we have, FY 2026 should be close to, close to our capacity. Right. And so at that peak levels, what kind of EBITDA margins you're supposed to make? Pardon? Sir, at that peak capacity of in FY 2026, what is the EBITDA margins and PAT margins that we intend to clock? Good. So double digit is what we are targeting with two lines and 80% capacity. Right. Thank you. And, sir, one thing on the two-wheeler front. So, the CV and the PV guys have largely agreed to some amount of demand slowdown. But two-wheeler space is picking up well. So, your assessment of the two-wheeler industry and, with all this, market share gains, can we supposed to go in double digit in FY 2025 in terms of revenues? Yeah. You mean revenue growth? Yes, sir. Well, again, as I said, we don't share, but, yeah, I mean, that's, that's the idea. We've always, over the past frequency, over the past several years, we've been trying to be, stay ahead of the market growth, which we have done. So, yeah, we, that's exactly the endeavor, for sure. Right. Sir, any aim for double-digit margins in terms of timeline, let's say two years, one year, anything you can quantify? Well, has been good between this year. So we certainly will go to, you know, high single percentage. So double digit would be one more year. Okay, so FY 26, Yeah, I won't specifically say a year, but yeah, that's the idea. Thanks, sir. Thank you so much, sir, and congratulations for good set of numbers. All the best. Thank you. Next question is from Arkapratim Pal from Sanjay Agarwal Broking. Please go ahead. Good morning, everyone. Am I audible? Yes, yes, you are. Okay. Thank you for giving me this opportunity. Based on your latest result, what is the corresponding volume growth rate? And additionally, how much does the price decrease or increase in that quarter? Sir, could you repeat your name? I couldn't get your name. My name is Arko, and I'm calling from Sanjay Aggarwal Broking. Arko? Mm-hmm. Okay, so your question is... Also, can you repeat your question please? Yeah, yeah, sure. Based on your latest result, what is your corresponding volume growth rate? And additionally, how much does the price decrease or increase in that quarter? So okay, essentially, a large part of the reduction in sales as compared to the second quarter is going to be decrease in volumes. There is a reduction in the commodity prices to the extent of INR 8 crores-INR 10 crores, which have also reduced the value of sales that you see for quarter three. Okay. One thing I want to ask, so that, what led to the increase in operating margins? Could you please elaborate on any potential changes in OPM that might be anticipated for this current quarter? So a lot of things here. We've been speaking about this in all the investor calls thus far. We have a Core 90 program. Largely, it takes care of all the heads of P&L and the working capital management. We have dedicated groups which work on that throughout the year in order to reduce the costs or improvement in margins. It includes customer price corrections. It includes reduction of wastages. It also includes a digitization and an automation journey for improvement in the operating efficiency. So these factors, we have been doing it for the last couple of years, and the results of which are now visible in a quarter where the volumes were lower, and yet we could maintain our EBITDA margins. ... Okay. My last question is, what is your expectation about the demand scenario of the current and coming quarter compared to last quarter? So typically, also the last quarter is fairly robust. You know, January, March, is, I would say it would be if you want a comparison, it would be more, more like Q2. Not as good as Q2, because Q2 has a festive season sale, but definitely somewhere in between Q3 and Q2. Okay. Okay, I understand. Thank you. You know the typical cycle that the industry follows. Mm-hmm. So we should, we, I don't see any issues with that. And going forward from next year as an industry, as I already mentioned, due to the election year, we won't see as good a growth as we saw in FY 2024. There certainly will continue to be good growth in terms of, you know, two-wheelers and passenger cars, but maybe CVs may see a little bit of a flattish growth. That's what they're expecting. Okay. Okay, I understand. Thank you, sir. Thank you for the information. Thank you. Before we take the next question, a request to participants to please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin the queue. The next question is from Viraj Kecharia from SIMPL. Please go ahead. Yeah, thanks for the opportunity again. On aftermarket piece, you know, so if you look at the presentation, I think a majority of the business is still driven by, shock absorber and, you know, related products. And so one has to understand the growth in terms of, say, product or distribution, both in India and abroad, you know. What will drive the growth in this business? So last few years, we had a very good execution and growth seen in the business, but if one has to look next three, five years, what will be the drivers of business? Because the vehicle park only continues to increase. While we have seen, you know, the sale growth in passenger cars and two-wheelers as far as OEM is concerned, but if you see, particularly in passenger cars, the second-hand car sale has been actually the highest ever. So if you add that, there has been a huge increase in overall, you know, purchase of cars, and when you buy second-hand cars, obviously there is scope for, you know, some more aftermarket parts getting into because people would want to refurbish the cars. And I don't think this will change. As long as the vehicle park goes on increasing, the aftermarket demand will continue to do- Hello? Hello? Hello. Participants, please stay connected. We seem to have lost the line for the management. Please stay connected while we reconnect the line for the management. Participants, thank you for patiently holding your lines. We have the line for the management reconnected. Over to you. Yeah. Thank you. Sorry, the call got dropped, it seems. So, Viraj, we are seeing on the aftermarket piece, you know, as long as the vehicle park goes on increasing, which is increasing both in terms of, you know, the new car sale and the second-hand sale. So we see the aftermarket demand continuing to continue to improve. No, so what I was asking you in terms of either in terms of, say, gaps in the portfolio or any other new product you would like to add, or even in terms of distribution, right, in India or, what piece of you, do you still see gaps or compared to where the potential would be? Yeah. just trying to understand in that sense. We are adding new products. In fact, in next year, we have already identified a couple of, couple of new products to be added to our kitty in terms of, you know, the aftermarket. So we are, you know, one, we do a scanning ourselves, and we are in touch with our dealer and distributor network as well as to what they would want, us to add. Because, you know, we, we also have to be, allow to, you know, their, their needs and requirements. So we keep doing that, and, we should be adding a couple of products next year to our aftermarket kitty. In terms of second question on the JV piece, you know, the understanding was that in addition to Creta, we would also be supplying. So there will be import substitution of the new Seltos as well. So initially, we will start with two models, and then, you know, further ramp it up in terms of the new variants. No, no, no. I think, this is not the understanding. We have clearly stated that we have got the, localization of the new Creta, which is what is currently on, in production. And the second we said was a new platform of, Kia, not the replacement of Seltos. ... So if you want us to look at just for of the Kia, Hyundai portfolio in India for now, what are the models they would be supplying? And if one also like think in terms of, say, import substitution of those over the next two to three years, what can come to us in terms of a JV? Yeah. So, you know, Creta is one, which is a major platform, and in fact, the Creta, the new Creta facelift also, which is, you know, which is planned maybe a couple of years down the line, even that is very likely to come our way, obviously. Kia, this new platform is there, and we're working on something new with Kia as well. There are some platforms which we are not there currently, but those are mainly, I would say, the previous type, the smaller sunroof. Sir, Viraj's question is—correct me, correcting your understanding, Inalfa currently does not supply to any OEM in India other than for Hyundai Creta program, and thus the import substitution in the JV was meant for Creta only. The rest of the programs are all that we will win in the JV itself. Okay, I understand. On margin, when you said double digit EBITDA margin, for the JV, so, you know, based on the order which you're seeing right now, the daily run rate, you know, already at a healthy utilization. So this margin is based on the assembly setup which we have, currently, right? And but as we kind of see an improvement in scale and increased localization, on a mature basis, what is the margin in this business? We don't give those guidances, Viraj, and so unfortunately, difficult to fathom. But, to tell you that because it's the localization of a line or a product that is already there with Inalfa in Korea, there is not a very steep improvement in margins because of operating efficiency coming along. So the volumes will also drive additional cost of CapEx and, overheads as well. Thank you. Before we take the next question, a reminder to participants to please limit your questions to two per participant. The next question is from Jyoti Singh, from Arihant Capital. Please go ahead. Jyoti Singh from Arihant Capital, you may go ahead with the question. There seems to be no response from the line of Jyoti Singh. We move to the next question. Next question is from the line of Priyaranjan from HDFC Asset Management. Please go ahead. Yeah, thank you, sir, Rishi. Just two question. One is on, what will be our share of, I mean, the EV share in our total revenue right now? And secondly, on the electric, suspension side, electronic suspension side, what will be the kind of, ASP increase if we go for a, the electronic suspension from the conventional one? What can be the, ASP increase you can invest in? And when do we expect that at least a couple of these models, I mean, in two-wheeler and in four-wheeler, we will start SOP? Hiya, Priyanjan, thanks. So, you know, I mean, as far as your EV, EV share in our business right now- EV. In terms of sales, is roughly... It's growing, but it's roughly about 5%, which is pretty similar to the market penetration that you are seeing, you know, in India. You know, it's 5%. I mean, like, just yesterday, the article I read was 5% penetration. So we are at pretty much the same level. That is what we are seeing. And your second question was on the semi-active suspension? Yeah. So there is a significant bump up in terms of price. The price is almost, it will go to almost, 3x. Whatever is the price today, it will be almost 3x, that price, for the semi-active suspension. Right? Now, your last question about when would be the likely SOP, for TVS, you know, it's, it's right now, even they have to get comfortable with the, the product and the concept, and yet, also the price will have to be absorbed, by the customer. So it... I don't think it will happen before, at least another two years, not before 2026. Okay. Okay. And when we talk about the new products, so one product which we have got, the sunroof, which is we have gone through the joint venture route. So the next two products, which I think you are actively looking at, so will it be like similar joint venture kind of arrangement, or it can be within the company as well, some product line which you can develop on your own? Yeah, it could be a mix of both. Yes, absolutely. You know, even if we do an acquisition, it might very likely be with majority. Thank you. Next question is from Alisha Mahawla from Envision. Please go ahead. Hi, sir. Good afternoon. Thank you for the opportunity. Two questions. First, in terms of margin guide, the aspiration is to move to double digits, say, over the next one to two years. Large part of costing from COVID-19 have already left the P&L, 100-150 basis point margin improvement for last year. Going forward, like you said, mix shifting to UV, where we're being slightly opportunistic, that should get negated by any incremental savings from COVID-19. So what incremental levers we have for another 100-150 basis point expansion to move to double digits? ... So, the way I see this panning out is that the cost reduction drive also has to continue in order to maintain the inflationary pressures and the salary increases that we are expecting in next years. That's one. Second is that there are still opportunities in terms of reducing the overhead by effective utilization of the operational efficiency. And in that journey, digitization should and will play a big role. The third piece is with regards to the raw material cost and its stabilization there, including commodity indexation. So that's an ongoing exercise. While that's an ongoing exercise, the endeavor here is also to start looking at more prongs in terms of make and buy, if that will help us improve on the improvement. Fourth is with regards to the geographical spread that we have. So if, given the endeavor that we have on exports and aftermarket, increase in the export piece, we should be also getting some additional benefit in terms of profitability from that. So that's broadly what I envisage, the journey to a double-digit. Understood. So, second question, if I just compare the second team next to two-wheeler, three-wheeler revenue on nine-month basis, it should decline by more than 25%. Is this all because of slowdown in the two-wheeler EV sales and penetration? I think you will have to repeat the question. Just take the speaker away little from your mouth. There's a lot of muffling noise. Is it better now? Am I audible? Yeah. Yeah. On nine months basis, the two-wheeler, three-wheeler revenue seems to be down by more than 25%. Is this largely because of slowdown on, the EV two-wheeler side? Or has the contribution of that, reduction in contribution of that led to this decline, and how else could one understand this? No, the cyclicity of the quarter is what is driving the volume down. I'm comparing nine months. So, yeah. YTD. The commodity reduction cycle impacts the overall pricing, but in terms of volume, we are higher than previous year. Okay. Okay. Okay, thanks. Thank you very much. Due to time constraints, we'll have to take that as the last question. I would now like to hand the conference back to Mr. Manoj Kolhatkar for closing comments. Thank you. Thank you for all, all your queries. And, you know, we, and as I said, hopefully, in the next quarter, we should be able to share, not hopefully, for sure, the numbers of the sunroof, in terms of the volume that we did, but, it's going, very well. And, also some additional news on, you know, the exports. If, as I said, those discussions fructify. But nonetheless, as we'll, we look forward to a very good year next year as well, and continue to put our efforts in improving the, improving and sustaining the margin, margin improvement that we have done. So thank you, and, look forward to the next call. Wish you all, again, a very Happy New Year. Thank you very much. On behalf of Gabriel India Limited, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.