Ladies and gentlemen, good morning and welcome to the Gabriel India Limited Q3 FY25 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 of the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will remain 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 the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Atul Jaggi, Managing Director of Gabriel India Limited. Please go ahead, sir. Yep, thank you so much. Good morning, everyone, and a very warm welcome to all the participants who are there on the call. With me today, we have Mr. Rishi, our CFO, SGA Advisor, our Strategic Growth Advisor, our IR Relations Advisor. We have uploaded our results and the presentation for the quarter ended 31st of December on the stock exchange and the company website. I hope each one of you had a chance to go through the same. I would like to begin by highlighting the Gabriel India's recent acquisition of assets from Motherson Marelli Auto Suspension Parts Private Limited, that is MMAS. So, an asset purchase agreement. So, MMAS is a Pune-based joint venture between Marelli Europe and Motherson International Limited, basically specializing in the design, production, and marketing of shock absorber, front struts, and the gas springs for cars and commercial vehicles. This acquisition helps us to improve our position in the suspension market, enhances our capabilities, and expands the product portfolio, which will help us drive our growth trajectory. With this move, we have also added an additional capacity of 3.2 million shock absorbers and 1 million gas spring units. A gas spring unit, gas springs will actually be a new product line for us. Additionally, we are also entering into a technology assistance agreement with Marelli Suspension Systems Italy to further help in the advanced suspension offerings for the future OEM requirements. Now, I'll provide a brief overview of the operations and key highlights of the automobile industry. The standalone operating revenue for quarter three grew 14% year-on-year, reaching INR 924 crores, driven primarily by higher volumes and improved sales in the two-wheeler and the passenger vehicle segments. EBITDA during this quarter stood at 8.6%. In Q3 FY25, Inalfa Gabriel Sunroof Systems reported revenue from operations of INR 92 crores, with PAT margins at 6.7%. The Sunroof business continues to experience, primarily by the rising volumes, the customer preference for the Sunroof product and the new vehicle launches. Our well-timed entry has helped us strategically, and we are now set to double the capacity by the calendar year 2025 to meet the growing customer demand. Coming to the industry highlights on the passenger vehicle, in this quarter, the last quarter, the sales volume grew by 6.6%, reaching 12.6 lakh units. The UV segment saw a very robust 16% YOY growth, primarily driven by strong demand and aggressive launches in the SUV segment. We also saw some improvement in the passenger car segment. The slowdown that we saw in the first half of the year in the PV segment has significantly improved post the festival season, and we see that trend continuing even in the remaining part of the year. On the CV side, the last quarter saw a muted growth of 2.2%, primarily due to the retail volumes declining YOY by 1.3%. This is primarily attributed to the delayed fund releases on the infrastructure projects from the government. Despite this, the OEMs seem optimistic on the improvement in the demand in this particular quarter. On the two-wheeler side, we saw year-on-year growth of 7%, supplied primarily by the scooters at 13% and followed by motorcycles at 4.5%. The three-wheeler demand, however, saw a muted growth. The trend in the two-wheeler continues to be strong, while we saw a month-on-month decline in the month of December, but this seems to be a temporary phenomenon. We remain optimistic about this moving forward in this quarter and the further quarters coming up. On the EV side, the EV industry is into the transition phase. While the penetration continues, the replacement of FAME with the PM E-DRIVE program has reduced the direct subsidies for vehicles for all two-wheeler volumes, while the volumes on an annualized basis have grown. But yes, we are seeing a month-on-month decline in the last couple of months. However, in the increasing PLI incentives for battery production, which will impact on the lower battery cost, will significantly sort of reduce the battery cost, and this will improve the EV affordability, and the demand hopefully would remain positive moving forward. So, on this note, I come to the end of my opening remarks. I now request the moderator to begin the question-answer session. Thank you. Ladies and gentlemen, 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 their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Once again, a reminder, ladies and gentlemen, if you wish to ask a question, please press star and one. The first question comes from the line of Jay Kale from Elara Capital. Please go ahead. Yeah, good morning and thanks for taking my question and congratulations on a good set of numbers. So, my first question is regarding your Marelli suspension acquisition. Just wanted to understand, you know, this entity is kind of a bit of a break even and a margin of flat loss as per the reported numbers. How are you seeing the turn around of this entity? What are the kind of synergies that you have with this entity? Where are the low-hanging fruits to improve profitability? And any timeline of when you could, you know, take this entity closer to your existing business margins? Yep, so thank you. Thank you so much. See, in terms of synergies, there are clear synergies on the product side. There's a very similar product line, very similar customer portfolio that is there. So, there are clear synergies. As I mentioned earlier, the gas spring, the gas dampers is a new line for us, which we sort of always wanted to enter into. So, this gives us a clear benefit there. In terms of the customer portfolio, the customer portfolio is quite good, with Tata, Maruti being and obviously Renault being the top three customers. And some exports also would help. So, I think building the synergies is not a big challenge, to be honest, with this. Yes, we also get access to the technologies that are available, and we also get access to better product range that is available there. So. Jay, on the margin profile, you're right in terms of what you noticed, but there are a lot of one-time adjustments which are required to look at the numbers on an ongoing basis. Second is obviously the operating leverage that will happen with the increased synergies. In terms of timelines that you asked, well, we have a plan, which at this point in time we are not able to share, but we have clearly curated a plan in terms of improving the margins and bringing it to the levels that Gabriel will be at. Okay, I understand. Just on the technology side, you know, what is the kind of technology that they, because you all have been in the suspension market for quite long and you're one of the leaders over there, but what is the kind of incremental technology that you could benefit from this acquisition? I understand you all are working on Semi-active and you all have made the Semi-active suspension from your R&D globally as well. But any new products that you all, any new global clients that you all can leverage from the Marelli relationship? As I mentioned, Renault is a running client, which is a global client that is there. In terms of technologies, I just mentioned earlier, gas spring, gas damper is one product where the technology is already available there. The product is running, and there are enough opportunities in the market to ramp up that, so that definitely helps. Again, within the shock absorber, you know, every company uses a different technology. So, there are always some pros and cons of every technology there. Some add-ons we see where we can utilize some of them on the, say, on the commercial vehicle side as an example. Jay, on this particular point, a couple of things to note. One is, as Atul rightly mentioned, the gas damper is a new product. A good scope there with increasing SUV population. The door balancer requirements are going up and up. That's one. Second is that the territory is largely India, and the exports that currently this entity was doing. So, in terms of synergistic benefits, Renault getting added helps. In terms of the technology piece, there are designs which are different and have different or similar capabilities, which adds to the product basket in terms of what we can offer and adjust, as Atul mentioned. On the CV side also, there are such opportunities. I understood. And you had mentioned historically that in the next two to three years, at least one or two more new products. I'm assuming that this acquisition is more of a consolidation, see more of a consolidation from your side and not necessarily one of the two new products that you all maybe plan to do it in the next one or two more years. So, I think that trajectory is expected in the next one or two years. I'm assuming that, if you can just clarify on that? Yeah, so see, M&A is not an event, right? It's a journey. So, we are on that journey. We are certainly not saying that we are pausing. This is one of them which came across, and we were able to conclude it. As we speak, there are other opportunities that we are evaluating, and we'll come back to the market at an opportune time. This is just one last question, if I may squeeze. On the sunroof margins, if you could throw some light on how have the if you can sort of manage standalone, I'm assuming that there is some dip on a Q2 basis, while Q2 was substantially higher. What should be a sustainable margin on sunroof? And if you could also, you know, consistently kind of disclose those numbers, that will be really helpful for us to track the sunroofs. So, with one subsidiary, Jay, I don't think it's a simple math, right? Consolidated minus standalone. There are other reasons why we have taken it out of the investor's presentation directly. So, I request you all to bear with that. As far as the numbers are concerned, it was a good quarter. The sales was as per the budgets that we had anticipated. We are also in the process of now going SOP for the AY program, which is the Kia platform. And with that, we are now anticipating to ramp up the production. We've already mentioned that we are looking at doubling the capacity, and the orders for that are already in place. And very soon, we will be in a position, maybe in two years' time, where we'll be almost exhausting that capacity as well. In terms of the pipeline, it's looking as per the plan that we had cast out, in fact, a little more aggressive than what we had planned for. Coming to the margin profile, you are very right. Last quarter was an abnormally high margin. This quarter, there has been some one-off cost to the extent of INR 22 million. But to answer your question on sustainable margin, it will depend upon the product mix and what plays out, how much TV is, how much BLD is, what is the proportion of that, which are the customers that we are going to add. As we all know, competition is also heating up on that. And with localizations, the prices ideally should go down, but we are clearly looking at a margin which is attractive to Gabriel in the range of 12%-14% is what we had mentioned always. That's the endeavor to keep it at that level going forward. Okay, thanks and all the best. I'll come back and make a few more questions. Thank you. Thank you. Thank you. The next question comes from the line of Amit Hiranandani from Phillip Capital. Please go ahead. Hi team, thanks for the opportunity. Sir, continuing on the ongoing acquisition which is going on, so by when we are going to have the technical agreement signed with them? And secondly, continuing with that, what is the penetration of Semi-active suspension in India, and where do you see it moving in the next five years? And presently, what is the penetration level for the same in the developed market, please? I think the first one, Amit, so the Technology Assistance Agreement and the technology license agreement are all sort of clearly agreed between both the parties. Once we have finished the conditions which are required customarily for closing a transaction, we should be able to enter into that and make it effective. So, and again, we've already specified the long stop date in our disclosure. So, that's the timeline that we are working with on the Semi-active. Yeah, see, on the Semi-active, while it is too early to sort of start giving a percentage to the penetration there, because this is one product which is, while I think a lot of discussions have happened in the past, but the EV that was launched, the BEV, one variant of that has come up with this particular suspension, the Semi-active suspension, which is sort of locally assembled here. Yes, there are a couple of models, the top-end models, where, as a CKD or a CBU, they have this suspension. So, this is just starting. In terms of where this will go, again, very difficult at this time to put a percentage to the penetration. But yes, because Mahindra has launched a variant with this, there are other customers also who have started discussion on this particular topic, and they are quite interested in this. Right. Sir, any idea what is the penetration level of Semi-active in the developed markets? We can come back to you. We will come back to you on this. Sure. And sir, can you please help us with the basic financials of Marelli Motherson? Like how much was the EBITDA margin and loss in FY24 and current capacity utilization of this entity? And also, do we need to incur any CapEx post-acquisition? Amit, past records we really cannot share given that we have an asset purchase. That is something that you will have to sort of enter yourself. Second question is with regards to the asset utilization. The entity has done 200 to 160 odd crores in the past. You can check that from the ROC filing. With that, broadly, the gas damper is fully utilized, and 60%-70% would be utilization for suspension. As we've always mentioned, these numbers are subject to bottleneck, and the capacity enhancement will depend upon what is the bottleneck. As regards CapEx, it will all depend upon what kind of program we are able to synergize and add to this entity or add to this asset. Typically in Gabriel, we have done an asset turnover of five. We don't see any reason why it should be anything lower than that. Right. Sir, but sir, are we on track to achieve the double the bid margin for the standalone even after the acquisition of this Motherson entity? We'll have to see. There will be some stress because of that for sure, but in terms of track, yes, we are pushing harder. Okay, sir, I'll come back and let you know. Thank you so much. Thank you, Amit. Thank you. The next question comes from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead. Yeah, thank you, sir, for the opportunity. Sir, my first question was onto the Sunroof business. I believe, sir, there is a drop in margins, and even the top line has reduced on quarter-on-quarter basis. I believe, sir, the volumes, so we were looking to ramp up the volumes. So, any particular reason like why the top line has dipped? Last quarter was the festive quarter, last last quarter. So, there is a very, very marginal number. So, from a revenue perspective, actually, it is poised to grow now that we are going to add the—we are going to start the SOP for the new program of Kia. And on the margin, we've already mentioned now that there was a one-off in this quarter. But on a sustainable level, we are looking at anywhere between 12%-14% of everything. Okay. And, sir, in terms of competition, so do you see in the longer run, so many players have now started to expand into the sunroof business? Is there any number which you can put? So, whether the growth could be slower or the ROCs could come down in the longer run into the sunroof business? It's difficult to say. The competition that you're mentioning is still to pan out and see what they are going to do. One of the competitions is going to be up north, where we are not there yet. We are in South and most likely in West. But to that extent, we are sort of competing with Webasto, which was already there in the space before it came to India. On the ROC, if you look at the steady-state margin, you can sort of assume that we will be able to retain the steady-state ROC as well. Okay. Sir, onto the recent acquisition, sir. So parts are ramping up the complete business. Sir, what is the peak expected top line and EBITDA from this business? Look, now we are not able to share those information. This is going to be, as it's an asset purchase, it's going to be a plant of Gabriel once we have completed the customary conditions. But you can look at the past numbers, and given that we have acquired the full business, some assumptions can be drawn. Got it. Sir, just one last question, sir. Onto the base business of our suspensions, is it possible to share the volume growth on YOY and on quarter-on-quarter business, and also the absolute value if we can share it? Absolute value, obviously, is there segment by segment in this presentation. On the volume, we do not share that information given the sensitivity of the price and realization for short-term growth. Okay. So, sir, at least at what utilization level we would be operating that plant as of now? Which plant? You don't know which plant it is, or? Sir, the base business plan of suspensions. We have eight plants. So, see, again, every segment has a different utilization. Every plant has a different utilization. So, it is very difficult to sort of put one number to that. But usually, 60%-70% is the number that we keep. Again, the logic being very different for every segment. Because, say, if you take a two-wheeler segment, the festive demands are so high that on a normal year level, we keep it at around 65%-70% so that we are able to service the customers well there. But mostly on the assemblies, we look at a two-shift kind of a demand working plan. Okay. Sir, just one last question, sir. Is there any scope for further increase in market share in the two-wheeler and the passenger vehicle segment? Yeah, definitely, yes. Okay. So, sir, in the next, you can say, so two to three years, any number, sir, so we are targeting? Yes. With some acquisitions, we are seeing some growth. There are some more businesses that are there in the pipeline. So, say, in the case of two-wheeler, the share of business has been continuously improving. We see that trend continuing. Again, putting up a number also becomes a little difficult because it also depends upon, because the penetration is very different with different customers. So, it also sometimes depends upon how that customer sort of performs in the market. But yes, there is a healthy business pipeline. And even at a customer to customer level also, we are seeing a share of business improvement in most of the two-wheeler customers where we are, and again, key customers like Maruti in the case of passenger car segment. Yeah. And Bajaj, as we had disclosed in the past, Bajaj was one of our endeavors in terms of increasing the, and with now two new programs, the Dominar and the Pulsar, we are sort of now there with them deeply entering. That will certainly help our share of business. And just to also share with you, like with Yamaha, recently we have won a new scooter business. That will again help us a little bit more on the Yamaha side. And so, similarly, again, this continues. So, there's a good healthy pipeline that is there. Got it, sir. I think I've already shared with you. Maruti, I think two launches are already planned this year. Got it, sir. Thank you, sir. That answers my question. Thank you. The next question comes from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah. Thank you, sir, for the opportunity. And congratulations on the good growth and the recent acquisition, sir. Sir, continuing on the suspension new order wins, you have also mentioned some tremendous order wins across the CNG, EV four-wheeler, and the electric three-wheeler. Can you talk about this opportunity, sir? With which customer you said? TVS Motor with the CNG and the electric four-wheeler, electric three-wheeler, which you mentioned in the presentation. Yeah, yeah. So, yes. So, these are all sort of, these are all confirmed businesses under development. So, I don't know exactly what information you're looking at. Mumuksh, can you elaborate for us? Yeah. I mean, just in terms of the size of the opportunity, if you can indicate what could be the opportunity size for this and when the business would start the SOP of this order, sir? Again, Mumuksh, you are aware that we are bound by the contract not to share the SOP and neither the volumes currently. But we can certainly share the orders with. Got it. Got it, sir. Sir, this quarter exports have seen a very good growth. Can you elaborate what has led to the growth and what was the outlook ahead for this? So, in this quarter, there are a couple of reasons for that. We saw a better growth in the aftermarket orders, and we also saw a much better pull from the Latin America market. So, these are the two primary reasons for that. Going ahead, sir, how do you see the growth pattern? We see reasonable numbers. Again, exact numbers will be very difficult to share. But yes, we see a good demand continue. So, Mumuksh, we have been always saying that our endeavor is to achieve a 10% export of the total revenue. There have been unfortunate situations like the Renault and then the Russia issue. But we are getting more and more entrenched with DAF in terms of improving their export and looking at some other opportunities as well. And now, with the asset purchase that we have done, some bit of export will happen from that acquisition as well. So, there are two or three sort of opportunities that we are exploring in addition to what comes with the MMAS. So, we are very hopeful of converting them into orders. Got it. And sir, M&A exports part would be in the PVN, sir, which customer would be totally, sir? It is Renault. Renault is one customer. And Stellantis is another customer. So, these are the two customers that are there. Got it, sir. Sir, on the sunroof, sir, for the recent additions with Syros and the Creta EV model, I mean, just can you indicate what kind of volumes could we see for these two models? And any update you want to share in terms of new order wins or any new orders in the RFQ stage which could be executed in the coming quarter, sir? Mumuksh, you're right. With Creta EV as well as with the Syros EV, there is uptick in the volumes which we are noticing now, and with that, we will go into the fourth quarter. In terms of order wins, we've spoken about BC4T and BC4I last time, the small export to Turkey as well. This quarter, there has been no new wins in terms of programs. The RFQ discussion, obviously, is confidential and cannot be shared at this. Sir, the new capacity will be ready by end of the calendar year, right, sir? That is right. A little before that. Before that. Okay. And sir, on this MMAS, you mentioned about the gas spring suspensions. I just want to understand what kind of a size of this opportunity market is there in India. Can you just elaborate on this product, sir? The market size for this particular product in India is quite large. To be honest, even globally also, there is a huge demand for this particular product. There are not too many players who are there in this product. In India, like SUSPA is one company which controls the maximum market share. I may not, but approximately it must be, say, maybe 90% plus there. The opportunity definitely is huge there. As Rishi mentioned, with more and more SUVs, the product also gets upgraded. The opportunity size also improves because, again, the cost varies between sort of segment to segment in this. In terms of we also see moving forward, we also see export opportunities with this product. Got it, sir. Sir, in the presentation, you have mentioned about the E-bikes, new traction there. Can you, I mean, update what's the new opportunity there, sir? So, as you are aware, we have been working on this product for quite some time. We have been able to basically, I think we are doing three things on that. One is on the product side, on the technology and the product side, where we have a dedicated team sort of who is working to develop more product range here. We have a couple of experts from this industry who we had hired. So, that part is being done. Second is on the customer side. We are, again, working with multiple customers to sort of explore opportunities. And now we are quite hopeful with some product range already available with us and some good customer connect. We are quite hopeful. Rather, when I speak, the team is already in Europe right now, again, working on the same with multiple customers. So, we are quite hopeful of something materializing very soon in this particular segment. Again, the segment sort of offers good opportunity both in terms of product, in terms of technology, in terms of the size of the market that is available. So, we are quite optimistic about it. Got it, sir. Lastly, to Rishi. If you can please join back the queue. Sure. Thank you. Thank you. The next question comes from the line of Bajaj from SIMPL. Please go ahead. Hi. Thanks for the opportunity. And congratulations on a good set of numbers in such a challenging environment. Three to four specific questions. First is on the acquisition which we announced. So, just to clarify, the tech transfer which we would be having with Maruti, that would primarily be for. The voice is muffled. We are not able to hear you at all. Am I audible now? Yeah, yeah, yeah. Much better. Yeah. Hi. The first question is the tech license agreement which we will be entering into with Maruti, that will primarily cover the existing product range, or it will also cover much more, say, other advanced set of products in suspension? We cover both current as well as advanced. Would that have a non-compete outside of India? There is a territory restriction, but include the current exports. Second question is in terms of the product which we will be adding to the portfolio in suspension, can you give some color in terms of the addressable opportunity it kind of adds to the existing suspension business? Currently small, Raj, and I'll let Rishi in here. But as of now, we are obviously not sharing what is the potential that we have internalized the numbers with. But the current opportunity in terms of the overall percentage to be really consolidated numbers is small. No. So, basically, where I was coming from is if I look at the product and look at penetration, say, outside of India, just to get a flavor, what kind of penetration these product categories we see in which markets? Just to get a flavor. Not giving you exact numbers or just an indication. Raj, these are primarily the shock absorber, correct, which are there. Yeah. In terms of penetration or in terms of opportunity, the sort of the entire world is open for us. I think we have been discussing about exports from Gabriel for quite some time. So, but I think the question is on the door balancer. So, you're talking of the gas spring? Yeah. I'm just trying to understand the product which we added to the portfolio, what kind of penetration we will? Sir, I'll give you the content per vehicle. There are two for the rear boot. There could be one for the front bonnet. That's the minimum that a vehicle can have. Okay. Just two more questions. One is, if you look at the said asset which we are purchasing, they have had issues in terms of ramp-up and quite a high rejection rate. Do you see any possibility of higher provisions related to warranty or any product liability risk which we would be facing once we take over? Even if it's an asset purchase, we are not taking over any liability No, for the period which has belonged to this entity. So, there's no liability. Okay. And last question is on the suspension. So, if you look at the contribution margins which we are earning right now, it's an environment where total prices are very minimal, and certain high-margin segments are relatively doing well for us, aftermarket too. Still, our contribution margins are still around 25%-ish compared to the past where it has even gone to 27%-28%. So, would it be right that what we are earning in the business, the kind of growth we are seeing overall in this region, would still remain in that 8.5%-9%, given that in the past, we have been slightly more aggressive in some ways. And that's how, on a portfolio basis, this is going to remain that. Raj, your voice was dropping, but if I have understood your question correctly, looking at my contribution margins, yes, obviously, the product mix plays a big role, and as you rightly said, we have been working on the mixes which are of a higher contribution. 75% is raw material cost, as you are aware, so that has to be factored into when we are looking at an increase in the EBITDA margins to a double digit. We are sort of short of 1.5% there at this point in time, so some part of that will have to come from contribution, and some part of that will have to come from operating leverage, and we've already spoken about the CORE-90 program, so under that, all aspects of cost as well as revenue and income are sort of taken into consideration. So, you can sort of assume a fair split between cost elements and the income elements. Okay. Thank you very much, and Rishi Luharuka and the team. Thank you, Raj. Thank you. The next question comes from the line of Chetan Gindodia from PGIM Mutual Fund. Please go ahead. Chetan, please unmute your line from your end and ask your question. Hello. Yes, Chetan, please go ahead. Yeah. Sir, firstly, congratulations on a great set of numbers. Firstly, sir, any new labels that you have added other than, say, Hyundai or Kia, which has been our base customers for the Sunroof business, or any other OEMs we are in discussion with? Yeah. We are in discussions with other customers other than Hyundai and Kia. Can't share the name, unfortunately, Chetan. Okay. Got it, sir. Sir, for the sunroof business, can you share any kind of revenue targets or any guidance you have for this business, especially given that we are doubling our capacity over here? And you said that you already have the customers for the expanded capacity as well. So, any guidance if you can share on that side? When we had gone live with this entity, we had mentioned that we are clearly looking at 800-1,000 crores in five years of time, and that will be our, that is, the continued endeavor. Okay. Great, sir. And sir, lastly, now that we have already done two sort of acquisitions, firstly with the Sunroof business and now with the new plant that we have acquired, so is there more to come on the inorganic side going ahead as well? Or is this more or less done for you now? Sorry. No, I think, as we mentioned earlier also, I think this is an ongoing journey. So, there's no full stop to it. As we speak, again, one or two discussions are going on. How they materialize, we'll see in the next sort of few course of time. But our focus remains there. Our efforts remain. Okay. Great, sir. Thank you and all the best. Thank you. The next question comes from the line of Abhishek Jain from AlfAccurate Advisors. Please go ahead. Thanks for the opportunity and congrats for this strong set of numbers, sir. Sir, in the base business, we have seen a very impressive growth in the two-wheeler side. That is 19% versus the muted growth in the industry. Is it because of the higher revenue from the electric two-wheeler side from the Ola and TVS? Sorry, Abhishek, your voice is not clear, so. Are you able to hear me? Abhishek, you need to take the mic a little away from your mouth. It's very muffled. Hello, sir? Yeah? Is it fine? Yeah, yeah, yeah. It's better, so. So, in the two-wheeler side, basically, we have seen a 19% growth Y on Y, and we outperform industry growth. So, is it because of higher revenue from EV side, from Ola and TVS? Again, it is not only from the EV side. It is also supported by the new launches that are there from TVS, better offtake from Bajaj and other customers. And obviously, the EV plays a role there. So, as you mentioned that you are winning new business from the TVS and plus Bajaj also won the new business from the Yamaha. And plus that, there will be significant growth on the EV side where you have a market share of around 87%. In this case, how do you see two-wheelers growth in FY 26 if industry growth would be around 5%-6%? Again, we'll not be able to share the sort of projected numbers that we have. Industry growth, as you rightly said, we are also expecting around 6%-7% industry growth in this. But the effort is to continue to be better than the industry. Okay. And in the four-wheeler side, basically, there is a 14% growth. Is it because of the higher revenue from the UV side where your market share is 29%? Yeah. You see, the growth in the UV market anyway has been much better in this quarter. The overall growth has been, I think, 16% in case of UV. So that impacts us also positively. How much is the difference in the content per vehicle in the four-wheeler UVs versus sedan? It's not a straight math here. And unfortunately, those numbers cannot be shared. But to give you some help on that, usually, you can look at the proportion of the car costs. Okay. And as you mentioned that you are going to double your capacity in the Sunroof, so how much current capacity and capacity utilization? We are currently at 180,000 sunroofs per year capacity. That's the one-line capacity that currently, with the new program, we will be exhausting that capacity. Hello? Yeah. Did you hear me? Yeah, yeah. Okay. And in the railway segment, what is your plan and what kind of revenue projections for the medium term, sir? Well, again, projections we don't share. It's a small part of our top line, but a very important part given that the segment we want to be present, as well as from a profitability perspective, it's a good margin product. And we have the entire product range. And railway, as you know, it also depends upon how many coaches are finally built. And it is a tender business. So, it is never a single source business in railways, so. Okay. And my last question on the Sunroof side, how much is the royalty payment you are doing at this point of time? Both the parties taken together, 5%. 5%. Both the parties, sir. Both parties. Okay. Thank you, sir. Thank you. The next question comes from the line of Jeetu Panjabi from EM Capital Advisors. Please go ahead. Yeah. Hi, Mr. Jaggi. Thanks for answering all the questions. Sir, just one big question, right? You've taken over the mantle a few months ago. You've kind of seen this acquisition happen. You're also kind of working through the Sunroof business. Can you articulate what's your vision for the business? Where do you want to take it over the next two, three, four, five years? How do you plan to spend energy? What will be the focus and the energy focus going into different segments? And is there anything different you intend to do from what Manoj was doing over the years? Jeetu brother has always good questions. So, I think even in the last call also, while it was my first day, the second day rather, this question was asked. So, as you know, I was away from Gabriel only for eight months there. So, even the last strategic plan, I was a part working with Mr. Kolhatkar there. I completely believe, I think, the four pillars that we have been talking about in terms of the domestic dominance, in terms of focus on exports, focus on M&A, and the technology. I think they remain intact. The vision is very, very clearly defined. What I intend to do and what the effort has been till now in this new role and which will continue, or rather, I'll say it will sort of try to bring more focus to that, is bringing focus to these things. So, I think we have been talking about exports. We all understand export is very important because it helps in the better mix. So, how can we speed up some acquisitions that we have been working on on the export side? How can we do more in terms of bridging any technology gap that is there? I think has been the focus and will continue to remain the focus. Okay, and anything different you intend to do from where you are on status quo as you think through your vision for the business? So, as I mentioned, I think two things. One, on the current four pillars that I said, more renewed focus, better resource allocation to expedite these things. Another area that definitely I would like to focus would be to also see that can we have better synergies and get into some different, even in the suspension side, also into different product range? Like we discussed sometime back on the e-bikes. It is a different segment, but it presents a good opportunity. I think at some stage, we spoke about some of the industrial products also. Can we bring more focus to that so that we have even a better mix both in terms of the customer, in terms of the market, and the segment profile? And yes, I think there will be more focus on how we can sort of get more product to M&A or to anything else. Okay. Thank you so much. Hope to meet you in person at some point. Thank you. Looking forward. Thank you. The next question comes from the line of Alisha Mahawla from Envision Capital. Please go ahead. Hi, sir. Good morning. Sir, just a couple of clarifications. Earlier, we had a target for revenue for sunroof for the current financial year of INR 400 crores. Will we be able to meet that aspiration? And also, you mentioned earlier in the call that there was a one-off of about INR 22 million. If you could just maybe clarify, what was this pertaining to? So, first question, yes, we will be able to meet our target for sure. Second question, these were one-time costs in terms of some price settlements with the customers. Sorry? Couldn't hear you very clearly. These were price settlements with the customer as well as some other costs which are non-recurring in nature. Understood. Okay. Sure. Sir, next question is margins on the standalone business. While you did spell out that there are a couple of steps that we can still take, and like it was asked earlier, the recent asset purchase that we have done, will this mean that the double-digit margin that we've been working towards since the last multiple quarters will now probably be slightly more back-ended? One is that in terms of the total top line, it's not very significant as compared to Gabriel. That's one. Even if we do a weighted average, it should not be impacting significantly. The idea here is not to find a reason to delay the pursuit. We are still on the target and will continue to do so. We still stand by FY 26 to hit double-digit margins in the standalone business? FY 26, we've said two years. So, yeah. Understood. And lastly, net working capital or working capital cycle has been entering higher. It used to be 20 sub-20 days. Now it's 26 days. What is leading to this change? And where is this number now expected to settle? So, 20 days was an aberration. I would safely assume it to be in the range of 21 to 22 days. You are very right that this quarter we have a little higher working capital. That's largely owing to the holiday season in China. So, some amount of inventory build-up was required to maintain supply chain on the imported inventory and some amount of increase in the finished goods. On a steady state, we would always expect it to be in the range of 20. 20 days? Yeah. Some part of that was planned. Yes, yes. Okay. And just one last question. The acquisition that we've done, you did mention that maybe at least they are operating at almost full capacity. So, are we looking at doing any incremental CapEx there? Is there anything that we would maybe want to spell out currently? I think what was mentioned was that in terms of the gas damper, they are working at almost the full capacity. In terms of the other shock absorbers and the struts, it's available there. Gas damper presents good opportunity. We will have to look into the bottlenecks and then see what kind of Capex is needed to enhance. But yes, the capacity enhancement would be needed in that particular segment, not on the other products. Sure. Shock absorber is at what capacity utilization? Should be around 60%. Maybe 55%-60% should be the number. Okay. Great. Yeah. Thank you. Thank you. The next question comes from the line of Jyoti Singh from Arihant Capital Markets. Please go ahead. Yeah. Thank you for the opportunity. Sir, I just wanted to clarify on the e-bike side as you keep mentioning that it's a very good demand. So, we are basically seeing for the Europe or any other region that we are targeting. And what kind of opportunity we are seeing and margin contribution on that side, if you can explain? The market that we are looking at is Europe. We are not looking at any other market as of now. We are looking at Europe as a market. Europe is the biggest e-bike market in the world, and so, that is the market that we are looking at, and this is where we are working with multiple customers right now. What kind of margin we are seeing, sir, from this segment? Again, margin profile at this point in time cannot be shared. At this point in time, the idea is to enter the market and then to scale it up. Thank you, sir. And sir, another question on the sunroof side. Earlier, you mentioned you are in active discussion with the Indian OEM like M&M and other players. So, it is in the pipeline or any active discussion on that side? Active discussions are going on with, I think, three OEMs, rather, I would say. But yes, as Rishi mentioned, there's no firm LOI as of now, but yes, technical discussions are going on. Okay. Thank you so much. Thank you. Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Jaggi for his closing comments. I take this opportunity to thank everyone joining the call. I hope we have been able to address all the queries. For any further information, please get in touch with us or SGA, our IR advisors. Thank you so much for joining the call again. Thank you. Thank you. Thank you. Ladies and gentlemen, the conference of Gabriel India Limited. Thank you for joining us. You may now disconnect your lines.