Ladies and gentlemen, good day. Welcome to Timken India Limited Q1 FY 2027 post-result earning conference call. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Annamalai Jayaraj from 360 ONE Capital Market Private Limited. Thank you, over to you, sir. Thanks, Amit. On behalf of 360 ONE Capital, welcome all to Timken India Limited only FY 2027 post-results conference call. From Timken management, we have with us today Mr. Sanjay Koul, Chairman and Managing Director, Mr. Sujit Kumar Pattanaik, Business Controller India, CFO, and Full-time Director. I will now hand over the call to Mr. Sanjay Koul for the opening remarks, to be followed by question and answer session. Over to you, sir. Thank you Mr. Annamalai. Thanks a lot. Hello to everybody, a very warm good afternoon, thank you for joining. I must say it is my privilege, Sujit is with me, our privilege of both of us from Timken India's side for this investor call to share with you a little bit more details on the first quarter, which ended 30th June 2026. Before I turn to the current quarter, let me briefly reflect on how we closed FY 2026. It was a strong finish year as we spoke in May a little bit as well. The fourth quarter always in India, traditionally for us, has been the best. FY 2026 was no exception. We closed the year with the highest standalone revenue of INR 314.7 crore. Robust Q4 was more than INR 1,000 crore. Against that backdrop, I am pleased to report that we have started the FY 2027 on a steady note, carrying forward the consistent and our broad-based performance which we have been doing, which defines Timken India. We have delivered high double-digit revenue growth this quarter, year-over-year, driven by resilient demand, especially in the core segments. Our execution both for export and domestic. As is typical to our business, bearing business being cyclical in nature, first quarter comes off from the last quarter, which is always very high. Against that backdrop, our revenue has been INR 929 crore, almost 15% growth for the same period last year. PBT for the quarter stood at INR 150 crore, it was at INR 130 crore in the same quarter last year. That gives us 15% top-line growth, 15% bottom-line growth, and you know the cost pressures we are at. PBT margin was at 16.2, broadly in line with 16.1 in Q1 2026. It is worth noting that the same quarter last year did not carry depreciation of our new capacity investment, which have since been capitalized. Adjusted for this higher depreciation, that is also in that. You can see there is a margin improvement because depreciation has grown. Other income for the quarter was INR 10 crore. Net profit after tax stood at INR 115 crore. EBITDA margin for the quarter was at 19.6. We also have the consolidated numbers because of the other entity. Consolidated revenues at INR 943 crore for the quarter ended 30th June. Consolidated profit at INR 156 crore. Consolidated net profit at INR 119 crore. I'm happy to share that during the quarter, we have secured the BIS certification for CRB and CRB rollers and TRB rollers, and we are on the journey to complete that process. That is obviously certifying our commitment to the quality and the standards for our domestic market. The scheme of amalgamation of the Timken GGB Technology Private Limited with Timken India Limited has been approved by the board earlier and is now with the NCLT, that is the Bangalore branch. This merger will help drive further synergies and efficiencies and reduce overall cost. Our new Bharuch plant continues to ramp up progressively, and investment towards rail expansion at Jamshedpur and plain bearings continues to be on track. With that, I will open the question and answer session. Happy to answer any questions. 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mukesh Saraf from Avendus Spark. Please go ahead. Yes, sir, good evening, and thank you for the opportunity. Firstly, just a bookkeeping question. If you could give the revenue breakup for this quarter, for this INR 929 crore. Thanks, Mukesh. For this quarter, FY 2027 first quarter, rail stood at INR 200 crore, that is 22% of the total INR 929. Mobile others was at INR 184 crore. Distribution was at INR 153.9, which is INR 154 almost. Process was INR 186. Exports was at almost INR 200 crore, slight export incentive of 1% of the total. Got it. Thank you. My question now is, I was just seeing that the parent has recently divested its belts business under its 80-20 philosophy has been kind of mentioning about relooking at the portfolio to improve profitability and kind of getting out of some low margin businesses. Just trying to understand how does this kind of reflect for the India business? Is there going to be some kind of a change in strategy here in India? You are obviously expanding into Bharuch, but is there something more strategic that India business is also going to be doing? Thanks for the question, Mukesh. Obviously, the Timken global, more than 50% of their revenues is in America. Right. In Americas, they have their portfolio, which is different to India. The markets are different. 80-20, at the end of the day, is largely a Pareto analysis of- Yeah -how and why you should serve. Obviously, endeavor for every company is to grow their margins. At the same time, I won't say exit. How do you serve some businesses which are not conducive to the overall business? 80-20 is that, who are your 80s, which are the performance enhancers? Who are your 20s, which are maybe a little bit of a drag down. Right Strategy is being used and it's very proven. 80-20 is a very proven science and has been effective in elevating many companies, and necessarily is to focus on improving sales, improving service levels. Say, for example, in our business, on time delivery levels, should it be 90% or should it be 100% for customer A versus customer B versus customer C? Right. That due diligence is happening globally and this is performance to elevate. That is the whole idea. The idea is to become better and better. I think it would help the India piece as well, because this is a performance enhancer, which means that how do you serve the customer? How do you bring in more speed to the customer? Then at the same time, how do you also decrease your cost? How do you consolidate? How do you do your MTF versus Make to Forecast versus made to order? How do you serve the customer out of inventory versus how do you serve the customer out of orders and things like that? Right How do you serve the small customer directly, or should you empower your distribution more, and how do you use digitization? All this is actually going to help the company, and it has a very good past record of enhancing the performance of companies. We are looking forward to this strategic direction, which globally, [Mr. Lucian] has started with Timken in Europe, America, and we can already feel the energy in that piece. We are looking forward to it, and we'll do what is best for Timken India Limited. The idea is obviously grow more in all the territories and for Timken India in India and the subcontinent. Sure. Thank you for that detailed answer. Second question is a little more specific to the Bharuch plant. I think last time around you had commented that around July, August some of the PPAP fixations will be done, and the commercial supplies will start from many other SKUs. Could you give us an update on the current utilization rates of the facility there, and how are we seeing that 27 kind of ramp up for the Bharuch facility? Yeah. With every passing week, we are producing more PPAP. We are doing the ramp up. Obviously, bearing plants are tool specific and customer specific, and you have to get the management approvals, some customer approvals. I am pleased to say that in my long span in the world of manufacturing, this is one of the fastest ramp up we are seeing, and pretty top quality product being produced out of a very top-notch plant. The revenues are growing with every passing week, and I'll ask Sujit to add more color to the whole thing so that you get a little bit more specific answer. Overall, the sense is very good. Yeah, that's right, sir. As chairman explained, the revenues are growing. Here the objective is how quickly we are ramping up in terms of the past deployment, putting vision and customer approvals. That's something which team is doing an extraordinary job over the last several quarters. It may not be linear because, of course, there will be a transitional time between- Right. -the way PPAP and pre-production versus its revenue. We are doing very good. As far as this quarter was concerned, the revenue was approximately in the range of INR 50 crore, and we are growing every quarter there. We are almost very close to breaking even. Sorry. Yeah. Okay. Just reconfirming that number, sir. INR 60 crore you mentioned? 50. Five, zero. Five, zero. Got it. We are very close. This would be what utilization levels? Yeah. Again, utilization at a plant level, we cannot put it across. As you know, probably that broadly we have three manufacturers, SRB and CRB. At a high level, as Sujit explained in the last meeting as well, we have seen a ramp-up of the demand on the spherical roller bearings. That utilization level in the last quarter would have been anywhere close to 40%-45%, and we expect that to ramp it up to 70%, which Tan told in the last meeting, in August, September timeframe. Yeah. The SRB line is slightly lower in terms of its utilization, and we expect to ramp it up towards the Q3 end and Q4. Got it. That was clear. Thanks so much. Yeah. I'll get back in the queue. Yeah, sorry. Yeah. Thank you. Yeah. Go ahead, next question. Thank you. The next question is on the line of Raghun andhan NL from Nuvama Research. Please go ahead. Good evening, sir. Thank you for the opportunity. Sir, firstly, on process and export segments, we have seen a growth of 28% and 21%. If you can talk about which are the categories which are helping the growth in the process segment and also on the export side, directionally, if you can talk about outlook, whether you see that strong growth continuing. Okay. On the process side, year-over-year it is, I think, almost 30% growth, largely coming from the metal customers, as we see a little bit of projects coming into. There are some companies which are exporting, making mills in India and exporting out of India, and we are being pretty successful in that. It is not necessarily only the MRO, it is the projects which is there. Also there is a nice RE factor in this. The wind is playing a good part. As you know that wind is growing in India, both in terms of export of the gearboxes out of India and then putting more windmills and wind farms in India. That is the story on process. Some of it is metal, but largely it is wind. On the intercompany, as you know that America market is resilient. It is showing nice signs, though Europe and other places South Africa is okay, Australia is flattish, ASEAN is down, China is down, but American market is up. We are supplying tapers to America. That is the intercompany push, which is almost 21% coming out of that. We see that this will continue, though obviously the geopolitics is playing its role and all that is happening on one side. I believe the new normal, like the post-COVID, this is the new normal, that geopolitics challenges, war will be there in bits and pieces, and at the same time, the life will go on. You know the big pipeline they are putting up in Oman, 300km-400 km, $300-plus billion, despite the war happening on the other side is happening, and similarly, the exports to America are looking up currently. I think Europe is down, but U.S. looks pretty okay. That is the story in the U.S. for the exports for us. Noted, sir. Just a clarification. On the exports to U.S., what would be the applicable tariff? Applicable tariff for U.S., I don't remember exactly. That I need to check. I think I don't remember, your China tariff is certainly far more on tapers as compared to India, and that regime has been there for many, many years. Exact tariff, I don't remember what was our landing in U.S. Once upon a time was 5.6%, 5.8%, then went up and then came down, went up. Exact, I don't remember. Got it, sir. As long as we are more competitive, that is good for us. On the railway side, I had a question that we have started the year with a single-digit growth around 3%. How do you see the outlook ahead in terms of the government procurement? Also, if you can indicate how the ramp-up in Jamshedpur plants can help the revenue, maybe by end of the fiscal and next fiscal. The government buy, especially on the railway side, is slow. The government buying for railway is certainly slow. That is a time issue. Year-on-year, there will be that slow, steady growth. While some of the projects get deferred at times because many times the funds of the central government get diverted, sometimes to infra, sometimes to defense, depending on the need of the government. Railway is little bit sluggish as we speak, but it is an issue of time, it will come back. That is A and B is that our rail investment as it comes to start producing commercially by this calendar year-end, we will immediately ramp it up because of the fact that rail also has a nice market in other parts of the world, which would benefit. By the time the Indian Railway would also have their own tenders, et cetera, out, which are delayed a little bit. Generally, they should have been out a couple of months back. They are a little bit delayed because the government is diverting funds maybe to defense and other places currently. Noted, sir. Thank you. Just one last question. Last quarter also, you had indicated about the cost pressures. You have been taking a price hike and passthroughs, and you would be working on cost savings also. This quarter, your gross margin has been maintained on a QOQ basis. If you can talk about the cost pressures and whether you see any more pressures going forward. The cost pressures are very much there. The steel industry is pushing hard to increase their prices. They have already put some January INR 1,500 or INR 1,600 per ton, then by April, another INR 3,500 per ton. In totality, that 15 plus 30, around INR 5,000 per ton is already into this, which obviously we are trying to get from all of our customers. Most of them have started paying. Steel will not go up if you see the capacity utilization of the steel. That is still not fully utilized. You know that better than me. Cost pressure from the gas is already now into the system, and bearing industry has an option to convert from LPG to natural gas. We have largely been able to implement all that across our supply chain and in our plants that are war footing while they were fighting Hormuz, we are fighting the conversion from LPG to natural gas. We have done it in all our plants at some record speed, which is normally unthinkable in other parts of the world. I would say that the cost, which is already into the system, is very much now part of the system. Further cost escalations depend on how the war will play out which, by the way, the Brent was less than $80 two days back, despite the war, because the then Mr. Trump said that, "I'm holding." Maybe that indicated something. Beyond this, whatever that has come, I don't see major. There might be a little bit, like the carbide market has gone up pretty significantly, grinding market slightly. The residual, like the cooling industry, all that has gone up a little bit. Beyond that, the only market which is a little bit currently volatile is the base oil, which goes into the grease. Other than that, I don't see any further escalation from today. Noted, sir. Thank you for that comprehensive answer. I'll come back to the queue. Thank you so much. Thank you. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchtone telephone. The next question is on the line of Harshit Patel from Equirus Securities. Please go ahead. Thank you very much for the opportunity. Sir, continuing from one of the earlier questions on the divestment of some part of the portfolio, namely belts. In the same earnings meet held by the parent during May 2026, they had also indicated the divestment of the automotive OE business. As I understand it, commercial vehicles and tractors are a very significant part of our business here in India. Any read-through for us on the indications made by the parent? That's my only question. Okay. On the belt, certainly Timken had taken over a great brand for our license, the belt. They started manufacturing in U.S. and then in Mexico, and then later on, they found that the belt is not really pretty much augmentative to our new idea of Techmotion. They got rid of it. The automotive in U.S., they have looked at the portfolio, they are looking at the 80/20, and we have capacities around the globe. That is on behalf of the parent. They have capacities around the globe, and then obviously they would like to use those capacities for their best portfolios. Those lines while they make the mass automotive, they can also make the limited industrial piece as well. Those lines at time can be moved around and serve the market where there is a better chance of making more money and things like that. As far as India is concerned, we are focused on what we do here. Mobile is almost a 20% market for us, which is tractors, which is heavy truck. As you know, we don't play the commercial vehicle market, I mean to say passenger cars. We don't do two-wheeler, three-wheelers, washing machine, which is essentially ball bearings. We don't do that, but we are focused on off-highway equipment. We are focused on backhoes, excavators. We are leaders in the rail application in freight, et cetera. We'll remain focused on that and look at what assets can be further utilized for growth in India, hopefully. Understood, Sir. Thank you very much. Thank you. The next question is from the line of Varun Jain from Dolat Capital. Please go ahead. Yeah. Hi, good evening, sir. Just a little follow-up on the previous question. While you talked about the cost, you said in Q4 that of the total cost inflation and grinding wheel, coolant, et cetera, you are taking 10% of the required price hike. As of now, by end of Q1, how much price hike have you taken of the total cost inflation? It is tough to tell you exactly percentage. Different customers, different behavior. One is the input cost, that also has a different pattern and behavior. Then the customers between off-highway to heavy truck to rail and other places, some are tender-based, some are where you have fixed contracts. We are able to pass on certain level of cost escalation, especially in the heavy truck market. There are, like railways, a fixed contract. As we get into the new contracts, that would start going in. In the public sector units, we have Annual Rate Contracts, or even in large cement plants, we have ARCs, that cannot be violated, fortunately and unfortunately. That would, as they come into new ARCs get made, we'll try to pass on to them. Heavy truck market, tractor, we are able to get largely our cost escalation into the pricing. Maybe just one. Yeah. Sujit. Yeah. Maybe just one additional point there, just to put the numbers into perspective. If you look at it, the gross margin for this quarter, we were at 39.9%. That is 100 basis points expanded year-over-year. Just to give it a context, the quarter four of the financial year is always going to be a favorable mix for us from a margin standpoint. You may be seeing a flattish margin from a gross margin perspective sequentially. Technically, the quarter one of the financial year are always unfavorable mix from a margin perspective. You have an unfavorable mix, plus the Chairman, whatever he has explained in terms of getting those price increases from heavy truck and off-highway customers has actually expanded the margin. That is why we have not eroded the margin. It was almost flat compared to sequential of last quarter, but 100 basis points expanded the same period of last year. Secondly, for Q1 FY 2027, what was the manufactured versus traded mix? Also, you spoke on the Bharuch product ramp-up. Can you tell us, other than the utilization terms, can you tell us product-wise which product made the most headway, like large SRB or CRB or small SRB? Like that, if you can give us some color. That we explained, I think, from an utilization perspective, as from the revenue perspective, as we speak, the SRBs are probably the higher compared to the cylindrical roller bearings at this stage for Bharuch. The manufactured versus traded mix for Q1? It is almost in the similar range, I would say. Though we don't disclose, but I think whatever numbers we gave in the earlier quarters, it's almost in the similar range of 75/25. Got it. For FY 2027, CapEx was 8%-10% of sales. That was the indicative range given. Any plan of exact CapEx, how much it will be, and where it will be allocated to which? Again, plant-wise breakup we generally do not give. I think directionally it will be very similar numbers what you have explained. Again, there are a lot of work is happening. As the Chairman explained, the rail plant is on track. The plain bearings, which is going on in our Bharuch factory, that's on track. We are almost on track to the overall CapEx numbers. There may be a timing difference here and there in terms of this financial year, this financial year spilling over something to the next financial year. From a project perspective, we are almost on track, and the CapEx will be in the similar range. Okay, sir. Okay. Got it. Thank you, and all the best. Thank you. Thanks a lot. As we had indicated, we'll be closing it at 4:30 P.M. today because of an urgent customer visit on the campus. Thanks a lot. If there are any further questions, we are always open on an email and things like that. Take care, and God bless you all. Thank you. Okay. Thank you, sir. On behalf of Timken India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.