Ladies and gentlemen, good day and welcome to Gabriel India Limited Q2 FY25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations the company has 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 conference call, please signal an operator by pressing the star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishi Luharuka, CFO, Gabriel India Limited. Thank you, and over to you, sir. Good morning, and a very warm welcome to everyone present on the call. Joining me today, we have Atul Jaggi, our Managing Director, Nilesh Jain, our Company Secretary, and our IR Advisors, SGA. Let me begin with introducing our newly appointed Managing Director, Mr. Atul Jaggi. Mr. Jaggi holds a Bachelor's Degree in Mechanical Engineering from Thapar Institute of Engineering and Technology, a postgraduate Diploma in Business Administration from IMT Ghaziabad, and a Master's in Quality Management from BITS Pilani. Additionally, Mr. Jaggi is a Certified Six Sigma Black Belt and has completed prestigious leadership programs, including the VLFM program, the Advanced Management Program from MIT Sloan, and the Oxford Strategic Leadership Program from the University of Oxford. With 25 years of rich and diverse experience, Mr. Jaggi has led key areas like maintenance, supplier development, corporate quality, and manufacturing excellence. Over the years, he has played a pivotal role in numerous initiatives within both Gabriel India and Anand Group, like Quality Circle, VSME. Under his leadership, Gabriel India's two-wheeler BU and CV BU divisions have grown significantly over the last few years. These businesses have earned numerous accolades at national and global platforms while building a strong business pipeline and implementing robust manufacturing and quality systems. Before handing over the call to Mr. Atul Jaggi to discuss financial performance and industry highlights, I would like to extend my heartfelt thanks to Mr. Manoj Kolhatkar, whose outstanding leadership as MD has been instrumental in shaping Gabriel India's future and journey to its current standing. On behalf of the Board of Directors and the entire organization, I express my deep gratitude for his dedication and wish him all the very best in his future endeavors. With this, let me invite Mr. Atul Jaggi to discuss the performance highlights for the quarter and for the half-year ended September 30th. Good morning, everyone present on the call. Thanks, Rishi, for the warm introduction. So I would like to walk you through the Q2 FY25 business performance along with the industry highlights. We have uploaded our results and investor presentations for the quarter ended 30th of September 2024 on the stock exchange and company website. Hope each one of you had a chance to go through the same. I'm also pleased to announce that the Board of Directors has declared an interim dividend of INR 1.75 per share, having face value of INR 1 each. I'll now give a brief overview of the company's operations and take you along the presentation. So we had another strong quarter, Q2. Our operating revenue for the previous quarter increased by 6.9% year-on-year, reaching INR 924 crores. This growth is mainly attributed towards improvement in the two-wheeler and the EV two-wheeler sales. EBITDA margins for Q2 FY25 remained stable at 8.7% as compared to Q2 FY24. PAT showed at INR 53 crores, showcasing a 12.2% YOY growth. Let me give you some highlights on the industry dynamics, starting with the passenger vehicles. In Q2 FY25, passenger vehicle sales volume reached 12.5 lakh units, marking a slight decline of 0.6% YOY. This indicates softer demand in the segment. However, in the UV category, the utility vehicle category, it continues to perform well, achieving a 12.3% growth during the same period, driven by the customer preference for SUVs and multifunctional vehicles. This contrast reflects the mixed demand pattern within the overall passenger vehicle sector, influenced by the environmental, economic, and market-specific factors. With the sales figures for the first half of fiscal year slightly below expectation, the outlook for the second half remains optimistic, particularly with the upcoming festive season. However, despite the expected uptick, the short-term outlook for automobile retail is cautiously optimistic. Coming to the commercial vehicle side, in Q2 FY25, the commercial vehicle sector saw YOY growth of 9.2%, while exports in the CV sector exhibited strong growth of 16%, but the overall domestic demand remained weak, resulting in an 11% decline. The overall dip in the demand was largely attributed to extended monsoon delays and unfavorable climatic conditions, which disrupted the market activity. Additionally, reduced spending on infrastructure projects significantly impacted the growth in this particular sector. Looking ahead, the CV segment expects improved performance in the coming months, driven by new product launches and anticipated sales growth in the rural markets. Better agriculture conditions following a good monsoon season are expected to boost the demand in this particular area. Now, on the two-wheeler and three-wheeler segment, we saw an impressive growth of 13.1% YOY, with scooters leading the way at 16.7%, followed by the motorcycles and mopeds, which grew by 11.3% and 17.9%, respectively. The three-wheeler segment also showed a positive trend, reaching 2.9 lakh units in sales, representing a 4.7% YOY increase. This robust growth in two and three-wheelers underscores rising demand for affordable and fuel-efficient transportation, especially in the rural and the semi-urban areas. The strong performance in this segment contrasts with the challenges faced by the passenger vehicle market, showcasing a clear shift in the consumer preference. On the EV side, now, at a global level, we are looking at around 85 million electric vehicles on the road, and India is already clocking 500,000 EVs in the same timeframe this year, primarily driven by the various government initiatives. The ongoing growth, driven by robust consumer demand and increasing preference for the two-wheelers, especially again in the rural area, suggests that the industry is heading for a record-breaking year. If this continues, FY25 could see a two-wheeler industry setting a new benchmark in India's automotive sector. So I would also like to reiterate that as we navigate the evolving automotive landscape, our company remains committed to innovation and adaptability. We take pride in being a market leader across the two-wheeler, three-wheeler, EV, and the other key segments. Our active expansion of the product range reflects our dedication to meet diverse customer needs. As the industry continues to advance, we expect our performance to grow in alignment. With a robust focus on research, innovation, and quality, we aim to deliver solutions that not only meet but exceed the expectations, driving a sustainable growth. Our commitment to excellence reinforces our position as a trusted partner, empowering our customers to thrive in the dynamic auto sector. On that note, I come to the end of my opening remarks. I now request the moderator to begin the Q&A session. 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 their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj from SiMPL. Please go ahead. Yeah, hi. Can I hear you? Viraj, you're muffled. Just one sec. Can you hear my audio now? Yeah, better. Yeah, hi. Thanks for the opportunity. And congratulations on your new. I wish you many success in the future. Just a couple of questions on the business. One is on the overall strategy. So what we understand, you've been with Gabriel for a very long period of time. You know the company quite well. But broadly in terms of strategy and portfolio, and including new product initiatives, is there any rethink or is there any change in strategy you're looking at? And just to add to it, what would be your top five priorities you're looking at in terms of the business? So that is the first question. Okay. Yeah, Viraj, thanks for all the good wishes. See, as you rightly mentioned, I have been with Gabriel for now more than 24 years. So as far as the overall strategy is concerned, I was involved even in the last strategy cycle that we had built for the next three to five years. So I don't see a dramatic sort of shift in the overall strategy that we have built. But yes, in certain areas, definitely some renewed focus and sort of a little bit of extra push will definitely be there. Like just to name a few, say, the export segment is one area where we would like to sort of expedite and push certain initiatives to meet our aspiration and our target on the export. This is one area, and which will obviously impact the overall growth of the organization. Second area is on the margin improvement. So this is another area where I would like to sort of continue the push and maybe sort of rejuvenate and strengthen the CORE 90 program that we have been successfully running, maybe with a little bit of tweak as I get more into the nitty-gritty. Another area of focus is technology because, again, it will clearly reflect the pace of growth that we are looking at. So these two will go hand in hand together. The fourth area is where I think we have been talking about it for quite some time. We were successful with the Inalpha sort of expansion of the product portfolio, and I would like to definitely continue the push on the margin side. To see what can be done at a much faster pace. So I think these are primarily the areas where I would like, and I think most of them have been a part of the strategy. But yes, in certain areas, more focus, more resources is something that I'm looking at at this stage. So I'd like to be able to spend more time, I think, in our future interactions, one-on-one meetings. So I think I'll be able to share more. Sure. Just a few questions on the subsidiary business. So is there now any, I think, post the decision by the government, we were looking at revisiting the terms in terms of royalty, tech license fee? And so any update you can give? Has there been any arrangement which has been entered into now within Inalpha? And similarly, will this continue to remain a wholly owned subsidiary, or in the future, we may look to kind of, if there's any opportunity comes, we may look to kind of convert this into a JV structure? Viraj, thanks for that question. Our approach to this remains similar than what we had spoken last time. See, this is a strategic partnership, and the idea here is to be a part of the growth market, and both in Inalpha and Gabriel, along with Anand, we stand committed to making more headway. We have the tailwind with us with regards to being first few players in the country, and with our deep relationship with Hyundai, we certainly are working towards our plans. Now, coming to your PN3 application aspect, yes, we have had several rounds of conversations and discussions along within Inalpha. We are evaluating various propositions with which we can probably re-approach the government in terms of a fresh approval, but the contours of that are still in the making, so we will be able to share it once we have revised our application. Coming to your subsidiary part, till I think we receive the P&C approval, it will continue to remain Gabriel's 100% subsidiary. But again, whether we are subsidiary, whether we are holding, whether we are majority, those are aspects that are to be taken into consideration with the governing rules and regulations of the country. Having said that, the endeavor is to ensure that the business is properly and adequately funded, and all the growth plans that we have are being catered to. That's the approach as of now. We will come back with more details as and when we develop on this topic. Okay. Just two questions on this subsidiary. If you see the realizations in Q2 of this quarter versus Q1 or even Q4, there has been a very material increase in unit realizations for the subsidiary, and similarly, the gross margin has also moved up, so what explains the realization and the margin jump? Interestingly, we had the SU2i, which is the Creta platform, which we have begun the operations with. In the last quarter, we have started supplying the PX7I, which is the Alcazar platform. And largely owing to that increased volume, we've been able to demonstrate some amount of operating leverage. Also, some benefits have flown in because of a little better localization of this product as compared to the Creta platform. But I would not breathe too much into the growth as of now. With some more time, knowing the pressures of the market, we will see how the margins pan out. So because the same platform, Creta, also has other model variants, right? So when you talked about Alcazar, and then you have Venue and other. So since you are a sole supplier for Creta, and I'm assuming you have Alcazar, does that kind of naturally translate into an opportunity to cater to for the other model variants as well? Interestingly, Viraj, in the sunroof business, no two platforms have the same sunroof, even if the chassis remains the same. So for example, the PX7I Alcazar is a much bigger sunroof as compared to the Creta. Venue is a smaller sunroof. And as far as supplier synergy is concerned, that can be achieved. But other than that, these programs are absolutely brand new from its inception of design itself. Okay. Just last question, and I'll come back in queue. See, we talked about secondary or second line at a CapEx of INR 40-50 crore. And the current and the new lines, I'm assuming they will be fungible. So given Creta, given the volumes it is doing, we will be maybe at the year end, we will be doing around 1.2-1.3 lakh units. And even with the Kia model, which we're expecting, the peak utilization would still be probably a year away for the first line. So when we are looking at adding the second line, when the lead time also is quite less, maybe less than a year, so how are you looking in terms of product or customer mix? And what is driving the decision on the second line? All right. A couple of data inputs. One is that Alcazar volume needs to be taken into consideration. One. Second is that Creta, the volumes are growing bigger in terms of the sunroof penetration. What we began with and now what we supply, there is already an uptick there. Third is that we already have a program here, which we have won, which will start in mid of next year. That obviously would need capacity given the volumes that we have. We've also won one small volume platform, which is interestingly one of the first export programs that we have. Now, our assessment is that by mid of next year, we will be completely out of capacity. And for us to develop the line and the model on that line for the businesses that we have in the pipeline in terms of discussion, we would need the second line. We have planned a small capacity enhancement on the existing line to meet the current capacity itself, and when the second line is there, we are in a safe assumption on the volumes is that we will be able to utilize that line also by end of 2026 completely. Okay. I'll come back in queue. Thank you. Thank you. The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah. Thank you so much. Happy first year to the management, and congratulations and all the best to what you serve for the new role, and good to see the continuing solid revenues and margin for the sunroof business, sir, so firstly, on the last previous question on the sunroof side, sir, so you expect next year by itself, the second phase also to get fully utilized led by this upcoming Kia model. That's right, sir? 2026, Mumuksh. This is where you're going. Yeah. 2026. Okay. Calendar year 2026 is the same. The installation will happen in 2025, and the utilization will start in 2025, but full utilization will be by 2026. Okay. This is calendar year, right? Right, sir? Yes. Got it, sir. And sir, also just on any new further additions in terms of order wins, sir, in the sunroof side, we were in advanced talks with the Citroën, Skoda, Volkswagen, and even the Hyundai modern new model. Just any update on the traction on this, sir? Yeah. So as I mentioned to Viraj as well, Mumuksh, we have got one order, which is the first export order out of this entity. It's a small volume program, but there is also an EV platform that is supposed to be built in, which we are hoping to get. And probably in the next quarter, we'll be able to share that as well. So now, but that customer also, this is all Hyundai and Kia only. Okay. And also, sir, even the Creta EV also would get added, right, sir? That's right. Okay, sir. So secondly, on any update on the new expansions in terms of M&A and the partnership model, how are you seeing the opportunity there, sir? And in the recent interviews, even Mahindra, sir, had talked about new opportunities in these areas. So how do you see that flowing to be built, sir? Mumuksh, our approach towards the partnership piece remains where it is. We are looking at inorganic forays in order to achieve our vision. And as we had updated the previous quarter, we are in active conversations on those as well. We will be able to update when those fructify. Got it, sir. Also, coming to on the sunroof side, sir, in terms of financial numbers, this quarter, in sunroof numbers, Q1 to Q2, employee costs saw about 30% jump, which led to a margin decline on the sunroof numbers. So any one-off there, sir, or how do you see the run rate for the employee costs here? For the sunroof business, Mumuksh? This was standalone, sir. Standalone. Okay. Yeah. So there was, it was not a one-off. There has been some revisions in the wages of the operating engineers, which we have. Also, because of the cyclicality of the business and the seasonality of the business, we've added some workforce, which has resulted into a mismatch between the revenue and the cost. So that's what probably is the reason why you're seeing the manpower cost a little higher than the previous quarter. Got it, sir. So last quarter, you mentioned about the two-wheeler side, we lost sub-market share due to Bajaj Auto not picking up. But now, how do you see going ahead, how their volumes are shaping up? Do you see the traction for the export volumes, sir? So specifically to Bajaj, we are seeing better export volumes coming back to us in this particular starting October, which is the third quarter. So we will have to see how they continue, but at least the projections are much better than the second quarter, what we saw in the second quarter. Sir, generally, we see that last first half has been broadly in line with the underlying industry in terms of growth for the standalone business. So just want to understand more, how do you see the content per vehicle increase happening? How is the areas like inverted front forks, FSD doing well, sir? So yes, definitely, I think the more we will continue to get into the products like the inverted front forks or the monoshocks or the gas canisters or the FSDs, the content per vehicle would continue to improve there. So there are certain programs in the pipeline where I think we are moving away from the conventional front forks to a bigger front fork. So definitely, the content per vehicle is expected to be better. But yes, as you know, this is a growing market. While multiple developments are going on, multiple discussions are going on with the customers, but obviously, over a period of time, we will see a good substantial number on the road with these kind of sort of front forks and these kind of products. Okay. Was there any element of deflation in this quarter due to steel prices coming down, sir? Any pass-through of that happening, sir? What was the impact on the RMC on the commodities? What are you asking? Yeah. So basically, I mean, if steel prices have come down, so is there any prospect of that happening to the OEM side? Yeah. So it's a back-to-back arrangement that we have. 95%-98% is the pass-through that we have. And to that extent, roughly around 0.1%-0.2% is the impact of the commodities going down. Got it, sir. So just lastly, this quarter, we saw a very good pickup in the export side for the suspension business. What has led to that pickup? And just lastly, on the tax rate for the console and the sunroof business, sir? Expected higher? On the exports, with both the Latin America business that we have with GDC and DAF in Europe, we saw much better numbers as compared to the first for a healthy second quarter in terms of the exports. So what you asked me for. Yeah. Tax rate, sir? Tax rate. So 25% for Gabriel and 15% for Mumuksh. Got it, sir. Thank you so much for this opportunity. Thank you. Thank you very much. The next question is from the line of Amit Hiranandani from SMIFS Limited. Please go ahead. First of all, congratulations to the MD sir for the new role at Gabriel India. Best wishes. Thank you very much. Sir, as the new managing director, can you throw some numbers on the next five years, specifically where you aim to take the consolidated top line margins and prospects for the new client additions, and specifically on the roadmap for the new product introduction, please? Amit, in terms of the, anyway, thanks for the good wishes. So in terms of the numbers, at this stage, I will not be in a position to share any sort of forward-looking numbers. But as I mentioned, I think the key focus areas where definitely I would like to focus more and to see how we can sort of speed up and do better is definitely on the overall growth, where special focus would be there on exports, both on the OE as well as the aftermarket side. And also our continuous focus on sort of improving the profitability bottom line. And again, technology is going to be an important enabler. So I think these are the focus areas, as I mentioned earlier. But one, it is sort of too early to get into the numbers. I just, I think, it's the third day today in office there. But again, I can only assure you of focus on these particular areas at this moment of time. Sure. Sir, are we on track to achieve a double-digit EBITDA margin for the standalone business by FY26? Subject to obviously commodity or other aspects, the endeavor continues. Okay. Sir, any updates on, what I understand, the FSD technology wins because we are supplying to XUV700, but any other new wins here? So no firm sort of LOI as of now, Amit. But there are a couple of discussions going on on the POCs, the proof of concepts with customers. So hopefully, I think in the coming few months, I see a possibility of converting that into an LOI. But in hand, as of now, nothing beyond that. Sure. Sure. On the sunroof side, sir, presently, can you just clarify which all models we are currently supplying the sunroof and what all new models are in the pipeline? Creta and Alcazar is what we supply currently, Amit, and there is an unnamed model called AY from Kia that the SOP is going to happen too. Okay. And sir, regarding the royalty side, so Gabriel pays about 5% to Inalpha and 2% of the sunroof's revenue as a management fee to Anand Group. I mean, is this understanding correct? 5% is paid by Inalpha Gabriel to both Inalpha and Gabriel standalone. Okay. So it's in total 5% you pay? That is right. Okay. Understood. So on the sunroof unit side, how many units were produced in H1? We do not share volumes and realizations for sunroofs, unfortunately, Amit. No problem. So lastly, are we receiving any income tax benefits on the sunroof business given the very low effective tax rate in Q1 and Q2? So this is a 15% entity, and that is how it will remain. So this will continue for the coming years as well? Yes. Yes. Perfect. Thank you. Great. Great. All the best, sir. Thank you so much. Thank you very much. Thank you. The next question is from the line of Jyoti Singh from Aryan Capital Markets Limited. Please go ahead. Hello. Sorry to interrupt. The current participant has been disconnected. We will move on to the next participant. It's from the line of Abhishek Jain from Alf Accurate Advisors. Please go ahead. Thanks for the opportunity. Sir, my first question on the sunroof side. So basically, we have seen a very impressive performance on the margin side in the last two quarters. So what is the reason of such a strong margin performance despite the royalty of around 5%? And this margin will be sustainable in the coming quarter? Abhishek, we are not able to hear you. Your voice is too muffled. You will have to be a little away from the speaker and again, ask the question, please. Are you able to hear me now? A little better, yes. Mr. Abhishek, sir, could you please use your handset? Okay. Hello? Yes, Abhishek. We can hear you. So, sir, my question on the sunroof margin, we have seen very impressive performance in the last two quarters, and margin has gone up to around 18% now. So is this margin sustainable on the sunroof side? Abhishek, it's an evolving business. It's too early for us to comment on sustainability of this margin. Having said that, because of the competition also coming in and also the composition of sunroof between Panoramic and T&S, these margins will sort of see some changes for sure. So that's what I had mentioned to Viraj as well. We should not look too much into this quarter in terms of margins. Our endeavor would remain to be in the range of 12%-14%. 12%-14%. And how much is the import content in subsidized business, sir? In the sunroof, you mean? Yes, sir. Currently, we have 60% broadly the import content. So, is this margin performance in the last two quarters the result of any fall in the raw material prices or something? No. Sunroof, there is no commodity in that. Okay, and sir, how much is the current rate of the production of the sunroof? We are currently doing close to 10-12 thousand of sunroofs per month. What is your target for FY26 to FY20? Target for? FY26, sir, on a monthly basis? We don't give forward-looking guidance for volumes. We've shared in the past that we are looking at INR 400-odd crores this year, and our target would be to achieve INR 800- INR 1,000 crores in the next five years. Next five years? Hello? Yes. Next five years. Okay. And sir, in this first half, how much is the revenue approaching from the EV business? Broadly, our EV business is 2%-3% of our total top line. 2%-3%. And my last question on that, what is the reason of the underperforming in the four-wheeler segment despite that new volume started from the new Swift? On the four-wheeler side, I think there are a couple of factors. One, the overall industry, I think in the last quarter, has not done so well. Now within that, it is a model mix issue. A couple of our models have done relatively better numbers than the models where we are not present. It is a mixed issue. I think that has impacted the EV side, actually. You are targeting the higher revenue from the new Swift business around incremental revenue of the INR 100 crores in this year. What happened there, sir? You're talking of the Swift? Yes, sir. Swift, I think, as would have shared earlier, I think Swift is a platform where we are working on. But I think we are a little away right now from the SOP. So it has not got into the production. We are right now in the development stage of that model. Okay. Thanks. That's all for my side. Thank you. The next question is from the line of Jyoti Singh from Arihant Capital Markets. Please go ahead. Thank you for the opportunity. My line got dropped. Sir, I just wanted to understand on the FCB side, if you can update on the Maruti and Tata Motors regarding that adoption? Did you mention FCB? Yes, sir. FSD. Sorry. FSD. Okay. Yes. Yeah. So I think I mentioned this earlier on the FSD in terms of the vehicle on road and in production, the XUV700 for Mahindra is going on. There are a couple of other customer platforms where we are working on the proof of concept right now. I would not be able to sort of name the platforms because the discussions are going on. We don't have a firm LOI on this. But we are looking forward to converting maybe one of them or both of them into a firm LOI. So once that happens, we will be able to share more information on that. Okay. Sir, with the LOI from Siemens for E-Loco, what are Gabriel's next steps in the expansion beyond Indian Railways? Do you foresee significant growth in this segment in the near term? That is a good question. So yes, there are opportunities outside the country in terms of railways. We are trying to map that at this point in time. We don't have a number which we have cast out in terms of potential outside the country. But once we have a development, we would share it. Okay. Sure. And sir, earlier participants also asked on the sunroof side. But my question on the localization process for the sunroof business, for the Kia program, and what will its impact on margin be like going forward? I think localization should be looked at from a supply chain disruption point of view rather than looking at improvement in margins because at the end of the day, these do get transferred to the customer in terms of price reduction. Currently, we are looking at a 60% localization. There are critical components which are being imported, which we have to be very sensitive about in terms of localizing it. Having said that, we have a plan. So the idea broadly would be to sort of bring it down to 40-odd%, is what Mr. Kolhatkar had also shared. We are working on that plan for the subsequent platforms. But given the entity has just begun and there are only two programs, we want to also understand the product and the nuances of it before we start doing localization. Okay, sir. And sir, can you share a timeline for the plan, INR 400 million for the phase two expansion? What kind of capacity increases are you expecting? Okay, so we already have one line, ballpark 150,000-180,000 sunroofs. We are planning for another line, which is going to have a similar capacity, and thereafter, it will depend upon the model, whether it is a panoramic or a TVS, as to what we will look for further expansion. Okay. Sir, just last two questions. One on the 2W side, when we are expecting better growth in that segment, and on the demand scenario side, how we are seeing further for the rural and urban both, if you can give some highlights. Yeah. So on the TV side, as far as the domestic market is concerned, I think you have said that we have practically more than 90% market share. So obviously, with that kind of a market share, we continue to perform exactly in sync with the market. And the first half in the commercial vehicle side was not so great, okay, while we are expecting a better H2. So I think the focus for us on the TV side is primarily looking at the export market. And this is where we are concentrating, and we would like to sort of expand the portfolio beyond what we are doing, what we started doing a couple of years back with DAF. So I think this is the focus area as far as the TV is concerned. So because in terms of share of business, there is now very little that we can do beyond what we already have. And within that also, wherever the opportunities are there to get into some products or the sub-products where we are not there, we are already working with customers. So in terms of new programs, the Mahindra UPP is one platform that is there, and then a couple of Tata Motors platforms where we are working on. Okay. Thank you so much, sir. Thank you. The next question is from the line of Aditya from Skill Ventures. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. Sir, I have been tracking your company since 2017. And if I look at your past commentary, we have always mentioned that we aspire to do double-digit margins in our standalone business. So there have been periods where the commodity cycle was not in our favor, while there have been periods where it has been in favor as witnessed in the last year. We had also implemented our CORE 90 initiative where we had undertaken a lot of cost initiatives. But sir, in spite of various initiatives and the market cycle also in our favor, we have been unable to achieve those double-digit margins. So if you could just help us understand, does the standalone business have the capability to do double-digit margins? If yes, so what would lead to the same, and in what time frame do we aspire to achieve the same? Sir, I understand your perspective, and that's a similar perspective which was shared when we had also talked about our margin expansion initiative. We've clearly demonstrated that from a 7.1%, we moved down to now the 8.5%-9% trajectory. There is an improvement there for sure. Now, if you look at this journey, it's going to be incremental, and this journey is going to obviously expect a certain amount of non-issues like commodity for sure. Having said that, the endeavor of moving to double-digit continues for us. The CORE 90 is not an event but a journey, and we are aggressively pursuing it. Now that we're coming on board, we will also be re-energizing it with more value and width. We continue to be committed to moving to the double-digit margin for the standalone business by 2026. Understood. So this is not an aspiration, but we have a clear roadmap to achieve the double-digit margins. Yes, we've spoken at length on what the CORE 90 program is. It includes every single facet of the income statement as well as the balance sheet. And there is a team. There are a set of teams which drive these costs as well as income aspects. And there is a clear-cut roadmap, action plan, and a review mechanism which is already in place, which is driven at the topmost level by the MD and myself. So just to add to it, I think I see two positives in the recent few quarters as compared to the previous timeline that you mentioned. I think one is I think we have been able to be more stable in terms of our performance. I would say that. And secondly, there is a clear shift, like Rishi mentioned, from 7.1-7.2 range to now between 8.5-9. So definitely, I think this means that whatever we have been doing, whatever this initiative we had looked at, I think it is helping us to move in the right direction. From time to time, we keep tweaking it to bring new energy to it, to bring new aspects to it, because as you look at things differently, you come across various opportunities. And this, supported with more focus on exports, this supported with more focus on the product mix, I'm sure would help us to achieve that number. But we are completely committed towards that number, and I'm very hopeful that we will be able to deliver it within the time frame that Rishi mentioned. And I'd say, just to add to what Shakil mentioned, the sustenance of improvement in the margin is also very critical. So it's always good to put in some actions, see it sustained, then move into another set of actions. And that's how you're seeing the margins line up. Understood, sir. Thanks for the detailed reply. And sir, we were looking to introduce one more new product by the end of this year. So what is the status of the SOP? We are in advanced discussions on that. Unfortunately, we won't be able to share much detail, but we are hopeful of closing this in. Understood. Sir, the royalty income, which the standalone business receives from a subsidiary, so is it accounted in our revenue, or is it part of our other income? Other income. Other income. Hello? Yeah. Other income. Okay, sir. Thank you, sir, for answering my questions. Thank you. The next question is from the line of Viraj from SiMPL. Please go ahead. Yeah. Hi. Two questions. Hello. Viraj, again, your voice is muffled. A little away from the speaker, please. Yeah. So just two questions. One is on the standalone business. We are a supplier to Thar. So even for the Thar ROXX, have you won the business for that? No. We are not there on the ROXX platform, Viraj. Okay. And second is on the sunroof business. You talked about us looking to cater to an export opportunity. So the arrangement with Inalpha, does that kind of give us a way to eventually also tap into some of the home markets or other markets? Or how is the arrangement when it comes to outside India market play? Great question there, Viraj. So see, at the end of the day, as I have been mentioning always, it's a partnership. And the idea here is to serve the customer because the customer is expecting a supply in a geography where Inalpha does not have a manufacturing presence, or the customer from the sourcing office is in a different country. These options are available for us to jointly discuss and agree. And that's what has happened in this particular case. It's a small volume, but needless to say, it's a good start. But if you look at globally, for Inalpha also, they have a very healthy presence in China and other European setups. So in terms of opportunity or addressable set for us, when it comes to exports for sunroofs, is that something one can see not immediately, but if I have to look at, say, next four, five years down the line, is that something can be material for the MD? No. It will be largely India bound. Okay. Understood. Sure. Thank you very much. Good luck. Thanks. Thanks, Viraj. Thank you. Participants who wish to ask a question to the management may press star and one. Ladies and gentlemen, if you wish to ask a question, you may press star and one at this time. The next question is from the line of Puneet Zaveri, an individual investor. Please go ahead. Oh, hi. Thanks for the opportunity. Just one question on the sunroof side. So your phase one line had about 1.5 lakh capacity. I just wanted to understand for the industry, because we are an under-penetrated market in terms of domestic volume and domestic production. Could you just talk to us about what is the current capacity for the industry? How many are currently imported within India? So just to get a sense of how much is this current capacity of 1.5 lakh in terms of the industry? And once you are looking to add another 1.5 lakh, how would that be in terms of the total either import or the total production within the country or the use of sunroof within the country? Just wanted to understand on that, sir. So it's a little difficult mathematics given that what is produced by the competition on this line is a little discrete information. But ballpark, if we take a INR 4.2 million kind of a production base, sunroof would be anywhere between INR 900,000-1.2 million. And currently, our fair estimate with Skoda, Tata, Maruti, and Mahindra, close to 50% is imported, and 50% would be domestic. Going forward, depending upon the volume and the mix, I would safely assume with new competition coming in, it would become 80% local supplies and 20% import. But do you see that over the next because we have seen SUVification of the industry over the last two years? And based on the plans that companies like Mahindra and Tata have put out, the SUV content and the SUV launches will be much more in the next five to six years in that they've given plans till 2030. So do you see this number of about 900K-1.2 million going up dramatically over the next five to six years? And if any kind of range you could provide, do you see that roughly about 40%-45% of the vehicles will have sunroofs over the next five to six years, which presents a very good opportunity for someone like Gabriel? I'll try and give you a perspective here. If we assume INR 6.5 million by 2030 and 50% of that coming through SUV, my rough estimate of penetration would be in the range of 50%-60%. And in case of other hatchback and UVs and other things, we can roughly take 25%. Yeah. Understood. Thanks so much. Thanks so much for the opportunity and wish you the best. Thanks. Thanks. Thank you. A reminder to all participants that you may press star and one to ask a question. The next question is from the line of Jayesh Gandhi from Harshad Gandhi Securities. Please go ahead. Sir, just a clarification. Our sunroof business is accounted as subsidiary, and 5% of the royalty is shared between Inalpha and Gabriel. And out of that Gabriel account, that part has other income. Is that understanding correct? That's true. Yes. Okay. Okay. That's all from my side, sir. Good luck for the future. Thanks. Thanks. Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Atul Jaggi for the closing comments. So thanks a lot. So I take this opportunity to thank everyone for joining on the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with us or Strategic Growth Advisors, our Investor Relations advisor. Thank you so much. Thank you very much. On behalf of Gabriel India, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.