Ladies and gentlemen, good morning, and welcome to the Q3 FY 2021 earnings conference call of Alicon Castalloy Limited. 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Mayank Vaswani from CDR India. Thank you, and over to you, sir. Thank you, Lizanne. Good day, everyone, and thank you for joining us on the Q3 and nine months of FY 2021 earnings conference call for Alicon Castalloy Limited. We have with us on the call today, Mr. Vimal Gupta, Group Chief Financial Officer, Mr. Shekhar Dravid, Chief Operating Officer, and Mr. Rajiv Gupta, Head of Domestic Business at Alicon Castalloy Limited. Mr. Vimal Gupta will cover the financial performance, following which Mr. Dravid will walk us through operating highlights for the quarter and developments in the EV space and the export markets. Mr. Rajiv Gupta will then provide insights on initiatives towards the domestic markets, following which we will have the forum open for a Q&A session. Before we begin, I would like to point out that some of the statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been included in the earnings presentation and our results documents that have been shared with all of you earlier. I would now like to hand over the floor to Mr. Vimal Gupta for his opening remarks. Over to you, sir. Good morning, everyone. Thank you for taking the time to join our call. I'm pleased to inform you that we have delivered a solid performance during the quarter on the back of the recovery in economic activity and improving trend across both domestic and export markets. On a consolidated basis, total revenue from operations was INR 269.54 crores in Q3 FY 2021 compared to INR 227.75 crores in Q3 FY 2020, growing by 18% on a year-on-year basis. On a sequential quarter basis, revenue was higher by 31%. We witnessed improved traction with several OEMs in the domestic market, which led to higher volumes. As a result, domestic revenue during Q3 FY 2021 grew by 33% year-on-year basis and 15% on quarter-on-quarter basis. Following resumption of movement of goods across international borders, export volumes have also reached up this quarter as we steadily recover towards pre-COVID levels. The revenue mix between domestic and global business stood at 79% and 21% this quarter, compared to 78% and 22% in quarter two. The revenue mix between the auto division and non-auto division stood at 89% and 11%. While all are well aware of the sustained recovery in auto volumes, we are pleased to share that even the non-auto vertical is demonstrating recovery. Coming to profitability, the EBITDA for the quarter under review was at INR 33.65 crores compared to INR 32.68 crore, improving by 3% on year-on-year basis. The EBITDA grew 26% on a sequential quarter basis. On a year-on-year basis, the EBITDA margins was at 12.5% from 14.3% in Q3 FY 2020. We are steadily rebuilding our margin profile after the impact of the pandemic and resultant lockdown. In Q2, we reported an EBITDA margin of 13%. This was slightly moderate this quarter to 12.5% due to the change in the sales mix. We have implemented cost control measures across business and are working towards bringing margins back towards the pre-COVID levels. Profit after tax for Q3 FY 2021 stood at INR 11.45 crores as against INR 8.44 crore in Q3 FY 2020, up by 36%. PAT margin stood at 4.2%. Finally, a quick word on recent developments. The Union Budget announced last week has many positive announcements and is very encouraging of manufacturing as one of the main pillars towards reviving the Indian economy. The streamlining of the Production Linked Incentive (PLI) scheme is favorable for manufacturers of the engineered components like us. The vehicle scrap policy which incentivize replacements should provide a flip in demand for the auto industry. In addition, measures towards enhancing liquidity in the system, building rail and road infrastructure, and increasing spends towards healthcare and farm sector significantly contribute to a more enabling environment for growth. The board in its meeting on December 2nd approved a proposal to raise funds up to INR 100 crores via equity. This is an enabling resolution allowing us to keep the option open to raise growth capital, which will provide the financial muscle to address our medium to long-term plan. We are carefully monitoring the environment and plans for our customers to identify appropriate times to implement our growth plans. Overall, we have reported a strong performance during the quarter. We are confident that with further unlocking in the domestic and export market and the improving macro environment, we will build on this momentum in the quarter ahead. On a note, I would like now to hand over to Mr. Shekhar Dravid. Thank you very much. Greetings to all. I trust all of you are well and staying safe. Following an unprecedented first half of the fiscal marked by the lockdown, production constraints, and the supply chain restrictions, the third quarter witnessed near normal operations. Several high-frequency indicators such as power demand, rail freight, GST collection, and toll collections have demonstrated a V-shaped recovery, pointing towards a fairly comprehensive return of economic activity. Within the auto sector, the domestic market demonstrated resilience in the third quarter, with almost all major OEMs reporting V-shaped recovery in volumes. What initially seemed to be a spike due to a combination of a pent-up demand, and the festival season sales has turned out to be a more comprehensive recovery predicted on a positive demand trend in rural and semi-urban markets, lower interest rates on the vehicle loans and the heightened consumer preference for personal mobility. This has been further aided by the inventory de-stocking across OEM dealer networks. Coming to the international business, most of our key export geographies in the U.S. and Europe reported healthy revival in demand, despite lockdown constraint in some part of Europe during the quarter, due to concerns surrounding the second wave. We saw sustained growth in volumes from our European subsidiary and supplied components and parts from this facility to many global clients during the quarter. Exports, including sales from European subsidiary, contributed to about 21% of our total revenue in quarter three, financial year 2021. In quarter three, financial year 2021, we have added 16 new parts from our export customers like MAHLE Behr and Tata AutoComp. Overall, in nine months for the year 2021, we added 33 new parts with eight export customers. Now a quick word on our new business. Our engagement with the global OEMs in the U.S. and European market for our EV products portfolio remains strong, and we are continuously building a healthy reference base. In the international markets, we are seeing significant measures being announced by various economies towards decarbonizing the road transport and boosting the usage of green energy vehicles, which includes electric vehicles. Accordingly, we are witnessing customers enhancing their focus on green energy models such as electric and hybrid vehicles. Closer home, the auto industry is seeing increased impetus towards adoption of a clean and green mobility too. NITI Aayog, the policy think tank of the Government of India, is targeting 70% of all commercial car sales and 30% of private car sales in India to be electric by 2030. We are also steadily seeing a slew of measures being undertaken by the government towards accelerating domestic EV adoption. There is a clear shift taking place towards electric vehicles across India, and Alicon remains a frontrunner to capitalize on this growing opportunity. Coming to our performance in this division for the quarter, total contribution of the electric vehicle segment stood at 3% in quarter three for the financial year 2021. During the quarter, we added eight new parts from the customer Dana TM4 from the U.S. Looking ahead, we are actively pursuing growth across our business segments in the key targeted markets in Europe, Middle East, and the U.S. In addition, there are significant untapped opportunities even in the market of China, South Korea, and South America, and we are increasingly growing our presence in these regions through our European subsidiary. We are also marking a steady and gradual progress in finalizing new business wins with existing and new customers in the export markets. With the COVID-19 vaccination gaining momentum across the globe, we expect that demand and the consumption trends will only strengthen in the months ahead. On this note, I would like to hand it over to Mr. Rajiv Gupta, who will cover the developments in the domestic market for the quarter. Thank you, Mr. Dravid. Good morning, everyone. Tata Motors vehicles and two-wheeler sales in India delivered healthy growth on month-on-month basis for the first three months as of December. Tractor volumes have surprised on the upside, with large OEMs reporting higher volumes. Volumes of commercial vehicles were not as strong as we may witness accelerated decision-making in that vertical, sparked by initial fate of the vehicles scrappage policy. The only damper is the continued firming up of fuel prices. Most OEMs are now operating at near normal utilization levels, and a barometer of the increased confidence in the industry is the rapid increase in the prices to pass on raw material inflation. Now, coming to our performance, the overall positive momentum in the domestic auto industry has had a favorable impact on the domestic volume offtake. Total contribution from our domestic segment stood at 79% in quarter three FY 2021. During the quarter, we have added 11 new parts in the domestic segment from three customers, Dana, Eaton, and Garrett. Of which Eaton and Garrett was of the IC segment and Dana was from EV. Overall, in nine months cumulative FY 2021, we've added 26 parts with 11 domestic customers. On the whole, we have reported an encouraging growth in the domestic auto segment during the quarter, led by improving demand on the count of pent-up sales, success push, and higher preference towards personal mobility. As we look ahead, the domestic operating environment is gradually stabilizing, and there are positive indicators that the demand will only strengthen from here on. We are seeing a good level of inquiries and bookings in the market and are hopeful for improving macros, which further support this momentum. Now I request Mr. Vimal Gupta to share his remarks. Thank you, Rajiv. Today I would like to introduce our Managing Director of the subsidiary company in Europe, Mr. Andreas Heim. He's also in the call. He also looks after our global business. Andreas. Thanks for joining the call today. Sorry to interrupt. Greetings from Austria. Excuse me, sir. We lost the initial audio from your line. Yeah. Sir, may you please repeat? Yes. Also, thanks for joining the call today and many greetings from Austria side. Thanks to Alicon team for the explanation. Many thanks for that. Thank you, Andreas. Now forum is open for question answer. Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone wishing to ask a question, please press star and one on your touchtone 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 on the line of Yash Trivedi, an individual investor. Please go ahead. Hi, sir. Congratulations on a good set of numbers. I hope all of you are well at Alicon. I just have two questions. Most of them are answered, the first one is the margin outlook going forward because our current quarter's margin was down on a year-on-year basis. In addition to that, only the impact of what kind of an expected impact of commodity inflation do you expect to be on the margin? The next one is how are we doing on the execution front for the orders which we have received in the last one and a half years? Thank you. Thank you. Thank you, Yash, for the question. First is that on the margin side, I just explained one is that yours about the commodity. Commodity mainly is the raw material of aluminum we are having. That is completely passed on to the customers. For that, there is no impact on the margins of Alicon. There we have a system of settlements with all customers. That is one side, maybe some small impacts of the other commodity, like the fuel or energy or some other things. That is also, we always keep on renegotiating our prices with the customers. That is an ongoing process that we have to follow. On the other side, for the quarterly margins, what you're talking about, there was a little bit impact has come up, because in the earlier call, we were explaining our cost reduction measures continuously we were having, and it is in continuation, and we are doing that. On the other side, like you know that in the lockdown period, there was a lot of migration happened of the people, those who were working in our operations on the shop floor. We have brought back all those people, but there is a change in the people, and this is a little bit tough working condition because it is a foundry. After joining the people, there was a lot of movement of the people were there. When new people join, then you know that when some skilled people were not there and new people, it takes time to learn. That learning cost we had in that time because due to that there is impact on our operating cost also. You see that in this quarter, we were expecting on the employee cost side that was little bit on the higher side. Now it is under control. Since, because in the last quarter, we have improved on that side, and now things have stabilized, and in the coming quarters, we can see the improvement in the margins, and we will be back on our earlier one and maybe that the previous call we were explaining that we will continue on our growth journey on that side. For orders side, I will ask Mr. Dravid to explain. Good morning, yes. Good morning. Update on the orders what we received, and which we are declared in last one and a half years. The order what we received from Danfoss and JLR, we are online. The sample submission has took place as per the requirement of the customer. Validation has been completed. We are on the schedule to work the ramp-up of it from the second half of this year. That is online right now. There is no issue on that. Whatever the orders recently we received, all the groundwork is under process, and we are quite confident to meet the timelines which have been discussed with the customer. Those will be in a ramp-up condition by 2022, 2023, as discussed in last meeting. Okay, sir. Thank you so much. All the best. Thank you. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star one. The next question is on the line of Raghunandhan NL from Emkay Global. Please go ahead. Thank you, sir, for the opportunity and for the detailed commentary and investor presentation. Congratulations on stellar numbers. Firstly, for Mr. Dravid and Mr. Andreas, EVs are witnessing strong acceptance in global markets, as you alluded to in your comments. Can you indicate opportunity for Alicon in terms of existing size of business and potential opportunity? Existing, you indicated 3%. If you can give some color on how things might pan out in future. Also, you had indicated complex products such as housing with thermal cooling. Directionally, if you can indicate whether margins would be higher than the existing business, that will be helpful. Thank you. Thanks, Raghunandhan. Regarding EV, basically, we are steadily moving towards, as we expressed in last meeting also. Right now, whatever the orders what we bagged it in this sector, that is specifically from Danfoss, then which is from Dana Group. You know the Ather scooters which is in India, that is started going up. If you recently they have put up their plant of a capacity of 200,000 vehicles to be manufactured in Hosur. They ramped up their production to around 33 cities now to be planted. Whatever the components what we are supplying, we are ramped up to around 2,000 numbers to be supplied to them every month. There is a definite growth, and that is contributed towards the 3% of our total sales in quarter three. We are anticipating the growth of around continued to be 3%-4% in this sector going down. Right now, we have developed more than 48 components and further 127 components we are working on, which will be coming near future. We will grow this, and that will be under development. We are looking at the strategy that by year 2025, 2026, we should end up with our EV penetration within our business plan to around 9%-10% of our total sales turnover we are planning it. Total right now, whatever the developments are going on, we are adding new components from Dana Corporation. Recently, we have got Garrett. They have come up with their e-mobility sector coming into. We have bagged an order for EV sector from Eaton. We are working on that. Recently in Indian OEM Mahindra, we have developed, in fact, the battery housing. This is for first Indian OEM, domestic, for Mahindra & Mahindra, and which will go in ramp-up by second half of this year. Also from Ashok, we have bagged an order. We have got a repeat order for some new developments from Danfoss, which was previously UQM, and we are working on those products. As I mentioned, that 48 products we already bagged it and under development, and further 127 components, we are in discussions with customer to convert it into a sales opportunity. Wonderful, sir. On expanding global business, if you can highlight efforts relating to strengthening the global marketing team and how having a Europe presence is helping in terms of gaining market share with global customers? Basically, you know that you are aware that Enkei Japan is our partners, and they are mentors in this business. They are helping us out to reach to a global customers. With their influence, we declared last time that we appointed a marketing representative named Scafari in Europe, and they will be representing Alicon in the European market. With their help, we could able to bag order from PSA cylinder head business for India, as well as now we are working with them to have a global business from PSA. They are on the board. The third one for the U.S. market, we appointed last year, again, our representative, that is TBS. TBS has inducted to penetrate the global business in U.S. and Europe in line with the global business strategy. They have a team size of eight people, eight key account managers with four sales support manpower they are having. We are seeing lot of new introductions and inquiries and RFQs are getting generated via TBS, and we are working on that. Definitely, this will enhance us to a sizable amount of global business. This is again in line with our global policy, expanding our global reach side. As you know already, Mr. Steve Knight as an individual representative, marketing representative for Alicon, he's working in U.K., and he's also very active. That is what at this moment, but with TBS team, we are trying to access North America, Mexico, and Germany also, as TBS has got good connectivity in these markets. Also, Korea, we are trying to build with the TBS team. We are expanding with these teams of our nature globally. We are trying to expand our global presence, and this is in line with our global business entry strategy. Thank you, sir. That's good to hear. Last quarter, that is in Q2 con call, you had indicated lifetime orders of INR 2,800 odd crores. Just wanted to get an update on this. Would that order book have increased given the new addition of orders which you indicated? About that, right now around INR 250 crore of new orders has been inducted in last quarter, to make it to around INR 3,000 crore on total lifetime orders, comprising to the average yearly business of around INR 600 crore. Last quarter, we could able to engage INR 250 crore for the lifetime business to INR 2,800 crore last time what we discussed in here. Thank you, sir. This is very helpful. For Vimal, sir. Sir, on nine-month basis, gross margin has improved. In Q3, gross margin is slightly lower, and you alluded to sales mix in your commentary. Can you please provide some details? One is that sales mix because there are some complicated parts because we have started. That is one part. The process is very. Now new part, whatever we are adding, that machine parts may be in the earlier process I'm explaining, because the changeover is happening from the casting parts to the completely or fully machined parts. That is the increase in the processes. Secondly, I have explained with the question from Yash, that explained about some impacts in the quarter due to this migration of the labors. That we brought back, and that has caused little bit in the quarter that has impacted on the margin side. The cost of the new people, and the process because their training cost, and their efficiencies, that we can't see immediately when they start working on the shop floor. That has impacted a little bit on the margin side. That is now in the quarter three is stabilized. We can see that the things are normal in the coming quarters. Got it, sir. Sir, working capital reduction has been a focus area and that BS4, BS6 changeover and all this COVID pandemic related issues had led to some increase in working capital in the beginning of the year. I just wanted to understand how has been the efforts on reduction of working capital. If you can give some qualitative color on that. This is quite right because you know that the impact when lockdown was there was a pressure on the cash flows. You know also that the kind of the quarter one has impacted on the cash flows of the company. I am happy to say that we don't see any increase on the debt side during nine months, at the end of the nine months. On the front of the reduction in the working capital, that is continuous. This process is going on and maybe when you see the final financials for the year of March 2021, there you will find that a sizable reduction on that side. The process is on because we are more focused on the receivable side and that how to reduce our working capital cycle. Thank you, sir. This is very helpful. I'll come back in the queue for more questions. Thank you. We'll move on to the next question. That is from the line of Vibha Batra from FairConnect. Please go ahead. Yes, thanks for taking my question. My question is on the equity raise that you proposed. Does one expect significant CapEx in the company? When you undertake any significant CapEx, what kind of return on capital employed do you target? Also, a request, if in your presentation, you could add, apart from the operating margins, a line on return on capital employed and return on equity, also, if possible, give outlook from this. On the equity raise side, that it is in process and the activities are going on because you know that when we go for the QIP, a lot of the compliance part is there. That is on. Maybe we are expecting in the month of March or February. It depends on the completion of the processes. That time we will take it all. Okay. So [crosstalk]. What is the purpose? Is it a significant CapEx that you plan to invest? Coming to that, Batra. Okay, got it. First, I just explain my cash flows for the current year. Generally, we see that maybe go in the history of Alicon. When CapExes are there, so maximum part comes through our internal accruals. It is a continuous requirement when we are talking about the new orders, and the growth plans are there. Continuous requirement of CapEx is there. To fund that, so this time there is a shortfall from one is the, on the part of the internal approval. In the coming year then, because a sudden jump in the volumes will happen in the coming year. For that, we have to put up the specific capacity for those customers, for those products. Majorly, part will go into the CapEx side of this equity. Okay. That is the plan. Okay. Return on capital employed, what is your target when you make these project plans? What is your targeted return on capital employed? With that, I think it is a forward-looking statement, at this moment, I cannot give these figures, we can see because all the activities, because what we are doing that is more focused on those sides only. What is your threshold level of return on cap when you make these plans in undergoing the CapEx? Obviously, there will be a threshold return on capital that the board would define. What is your threshold return on capital employed? That I'm saying that you will see the improvement on that side. There is a good improvement you will see in this. Sure. Okay. In the presentation, if you can include a row, say, a line, it will be really helpful. Okay, done. That I will. Thank you. Thank you, and all the best. Thank you. We will move on to the next question. That is from the line of Apurva Mehta from AM Investments. Please go ahead. Hi, sir. Congrats for great set of numbers. Just wanted to know the visibility for next year. What kind of visibility we have on the export front and on new build equipment if you can throw light on the domestic front. Looking at the present scenario domestically, within domestic right now, the government initiatives what has been generated, there are sparkles of moment in the market. Also, we are anticipating good numbers in coming quarters. For third quarter of next year, we have whatever the schedules and whatever the discussions going on with the customer right now, that shows there is in line with the V-shaped recovery. It will be too early because the market is so dynamic right now, and it is difficult to predict for the next quarter. We will keep, wait and watch, and we will keep our close watch on this. Regarding this, whatever we are talking of next year, we are anticipating a good growth, and we are making ourselves ready to handle that growth as it really comes in. That is what at present I can share for the market growth domestically. I will request my colleague, Andreas, to give some focus on the global business and the whole global scenario to answer your question. Andreas? Yes, I'm there. You got the question, what is for the next year? That is 2021, 2022. Looks to be for the global business. That is the question came. I answered for the domestic side, so you answer for the global business. Right. For the global business side, at the moment, there's lot of new potential customers. In coordination to get new business on board, especially in the EV market, on which we are seeing huge potentials for Alicon on the global side. We are going under discussion on these new techniques, like for motor housings, to implement steel parts to convert aluminum housings into lightweight parts and thin-wall castings. On such projects, we are working, for example, with Bosch in Germany and further customers. We are doing these trials with them continuously in order to bring new projects on the table. The same for battery housings with integrated cooling systems in order to optimize the thermal cooling. On such kind of new innovations we are working on the global business side in order to be prepared for our future and to get new business on board. Just to put you into perspective, in March 2019, we were at almost INR 1,200 crores. Is it possible to outpace that INR 1,200 crore of turnover next year? By what kind of visibility do you have? It will be too early to comment on. We have our internal plans. It is too early to comment on any precise figure to be discussed. We should wait. We have waited for one year. We should wait for one more quarter so that with this we can come with the concrete figures. Currently we have export of around 20%. When this needle will shift in the next year, when we can see this needle to shift towards more of around like 25% of the turnover coming from export? We anticipate next year because I have already explained, the market is dynamic. It will be around 2%-3% growth we are anticipating over this year or the next year. That is in line with our plans what we have made and what are the new customer addition, their ramp-up plan. All put together, we anticipate 2%-3% of growth this year. On the new order wins which we are getting, are they replacement orders or they are new parts which are fresh orders and new parts from the current customers? Only one component that is coolant collector from Daimler, which has been replaced by the new model of that, which has been a split-up model. All other orders what we got it are these are all the new components and is a new replacement to our additional business. It is new addition to our existing business. Oh, okay. That growth potential we can see is going forward because of these new orders which we are adding. Good. Mr. Mehta, are you done with the questions? Yeah. Thanks. Thank you. Next question is on the line of Yash Trivedi, an individual investor. Please go ahead. Hi sir. Thank you for the opportunity again. I just wanted to know what kind of an improvement in, say, the content per vehicle and the realizations do we see when we move from our conventional IC vehicles to electric vehicles. Thank you. Yes. Basically, if you see, we have discussed this in last meetings also. Going forward from IC technology to the EV technology, there is definitely the increase of contribution of aluminum is there. Basically, this is related to the parts as per the strategy what we are moving into, the technology agnostic parts. These are the parts irrespective of the technology, which are required for the vehicle with function to the chassis, suspension, body part of the vehicle. These things are what we are targeting is now. We are anticipating when we are converting it to IC, we will have from IC to EV, there will be around two-to-two-and-a-half-fold increase for vehicle of aluminum components, an opportunity for Alicon. Going forward EV also, there is an addition of a light weighting of a component because for the better performance of the battery and the more mileage with the one charging, the weight of the vehicle reduction is important for all OEMs. There is a lot of opportunities coming up that these components which were historically cast iron and steel which may get converted on this journey started to aluminum and aluminum-based alloys. We are anticipating that. Roughly in two-wheeler. Right now, our contribution aluminum is around 3.1 kg, which will enhance if the two-wheeler in EV comes, whenever it will come. It will be an average of 17 kg-18 kg per vehicle. We will get an opportunity per vehicle of aluminum castings. In four-wheeler also, we are seeing sometimes roughly around 30 kg-35 kgs in IC engine, which will enhance. Which will enhance to around 100 kgs per vehicle. Roughly, it is two-and-a-half-fold increase in the aluminum requirement we are anticipating, converting from IC engine to EV mobility technology. Okay, sir. Got it. Thank you. Thank you. The next question is on the line of Dhiral Shah from Phillip Capital. Please go ahead. Yeah, good morning, sir, and thanks for the opportunity. My question is pertaining to the order win which we have won in last maybe one to one and a half years. Till date, our order book is around INR 3,000 crore, if I'm not wrong, sir. Maybe if we divide this by five years, so every year we will be touching around INR 600 crore kind of a revenue run rate. Yeah. For executing this kind of an order, sir, what kind of CapEx we would be requiring to execute this INR 3,000 crore kind of a revenue in next five years? For this approximately we will require around INR 230 crore-INR 280 crore, in that range. INR 230 crore-INR 280 crore. Okay. Maybe for FY 2021 and FY 2022, sir, we have lined up around INR 145 crore kind of a CapEx, right? Yes, that we have planned, yeah. Okay, incremental we would be requiring more INR 140 crore. Yes. Roughly. Roughly. Okay. Sir, I believe all these new wins are of higher margin, right? This rendered margin, which is around 12%, these are on the same range, or this is much higher as compared to the current run rate, sir? At this moment, it is on the higher side. That much only I can say it. Once it goes into the ramp up, the real profitability will come into the picture. It will be too early to comment on the advance figures. Yes, whatever we predicted of that definitely we will reach a higher margin, which we are expecting from all these new components what we added. Sir, what is your current market share across 2W, 3W, commercial vehicle right now? As far as 2W is concerned, we are around 39% share of business right now. It will be very difficult for 4W to project it, but roughly it can be 6%-7% of the total market in 4W. Sir, 3W? Basically, coming to 3Ws, sir, in coming future, logos will be added like Toyota or PSA, new business from Renault. All this will increase our share of business. Okay. Sir, do we supply any parts to the tractor industry? Right now, we know that the overall tractor industry is growing substantially. Are we supplying any parts to them? Yes, we are supplying to three majors. We are supplying to CNH, we are supplying it to TAFE, we are supplying it to John Deere, and we are adding the growth of our business with these three customers as that sector is growing. Okay. Sir, apart from this, we were also in talks with Hitachi and Panasonic, right? ThaWt is for the electric battery and motors because Hitachi and these people will be, finally will be our suppliers of automotive motors as well as the battery to the major OEMs throughout the globe. We are proposing the aluminum casting, which is a base requirement of this to these future customers, the Hitachi and Panasonic. Okay. Sir, lastly, any CapEx required for the base business? This INR 280 crore would be for the incremental order win, but any CapEx required for the base business which is there right now? That is, these are, you see, in our business, whatever the capacity we have generated, those capacities are basically common for all the requirements. All this CapEx what we are talking of the new components which are coming into. Mainly the shift of a business if you see, we are more towards the providing a solution to the customer. We will be providing a customer a ready-to-use component with the value-added services like machining, painting, and some assembly into it. For that, a very specific set of very specific machines and very specific tool is required. This CapEx we are intent to go into that. As such, base, whatever we have got, already we are working on that. I think by Vimal Gupta's speech he has already given that we are all cost control. In fact, very specifically, the existing whatever the assets we have got, the sweating of that asset by introducing new technology, number of cavities per die increase into that, cycle time reduction, all these things we are working on to generate the base capacity from the present one to a higher level of it. Right now, we are working on this, whatever the CapEx requirement, it is for what the new business, a very specific requirement of the infra required and not for the base one. A very small part of it will go to for the balancing of the capacity, but a very small part of it will go for the base capacity increase. I think I answered your question. Yes. Sir, lastly, are we on track to achieve additional INR 330 crore kind of a revenue from the new business in FY 2022, which you have guided earlier? Yes. We are very much confident about it. In FY 2023 it would be INR 520 crore, right? FY? FY 2023, it would be INR 520 crore. Yes, roughly. Okay. The ramp-ups for all these orders will start between 2022 to 2024. Okay. Got it, sir. Thank you so much. All the best, sir. Thank you. Thank you. We will move on to the next question that is on the line of Raghunandhan NL from Emkay Global. Please go ahead. Hi, sir. Raghu here again. To Shekhar, sir. Sir, can you comment on how aluminum content per vehicle has been increasing due to premiumization? I mean to say, as the share of EVs increase in passenger vehicles and share of premium motorcycles increase in two-wheelers, how is that leading to higher content per vehicle? If you see when the technology disruption takes place or taking place right now from IC engine towards the e-mobility, there are two things coming into. One is that the light weighting of a vehicle is very important, as I already stressed, for the performance of a battery and the size of the battery requirement for a higher mileage with a given charging required. This calls for the light weighting of a vehicle is must. For that, traditionally, the parts for all the vehicles which were in the fabrication of steel or they are made of cast iron or a steel forging, it has become evident and mandatory for OEMs from the point of view of weight reduction to go for the low weight components or low weight of alloy. Right now, the substitute is available in aluminum. Hence if IC engine is not there, the other parts like the parts of chassis, parts of the body, structural parts which are required. As I explained, if you take a case of a two-wheeler, right now our contribution in a present IC two-wheeler is around 3 kg-4 kg, restricted to cylinder head with some outlets and inlets given around this case, which it increased once it goes for the chassis parts or the parts required for the suspension and parts required for the body. If it goes, minimum of 17 kg-18 kg requirement of aluminum castings in EV-based vehicle. That means there is almost a jump from 3 kg-4 kg in present technology, which will go to around 18 kg-20 kg per vehicle. That is an opportunity. Finally, Alicon is a casting manufacturer, irrespective of what sector it goes, until it is made of aluminum and that is the technology we have got. Based on this, we are providing a solution to the customers for converting their high weight components to low weight components, having all the infrastructure at our end, and we are working on that relentlessly with our customers to increase our share of aluminum into the per vehicle. Also, in four-wheeler, if you see, right now our contribution is increasing in the cylinder head business. Other than Renault, we have added Toyota in this last year. We added PSA into it. There are more developments from Renault is coming into. We have recently tapped on the defense of domestic customer OEM like Mahindra & Mahindra. All these will increase our share of business in IC engine itself for the aluminum content. If you convert this into EV also, I will just give you an example. The normal EV vehicle, normal IC vehicle, four-wheeler vehicle, weighs around 1,264 kgs, normal vehicle. If the same vehicle goes to hybrid or EV, there is an increase of around 254 kg of a weight because of the battery load and the motors which are getting added and the transmission which is getting added. It will become mandatory to reduce that weight of 254 kg, which increases the cost of the vehicle. Looking at this, what many components are came into and that is what our strategy that we explained. We have changed our gear into that, and we have shifted to the technology agnostic parts. The parts which will require irrespective of the technology disruption, whether it is IC engine, whether it is a EV, whether it is a hybrid, these parts will be required like suspension, chassis part, there will be body part, the frames of the vehicle, all these things will have from aluminum in future for light weighting of the vehicle. We are anticipating again around 38 kg through contribution in four-wheeler of aluminum at this moment, will increase to 100 kgs. I think all these parts for it, and this will be an additional opportunity by the way Alicon will be available for their future growth business. Thank you, sir, for the detailed explanation. My question was, within passenger vehicles, say when you are supplying to someone like a Toyota or generally to utility vehicles, the content per vehicle, for a UV, would it be higher than that of hatchback? Where I was coming from was that as the industry is shifting towards more and more utility vehicles, that itself should lead to higher content per vehicle. Would that understanding be right? Up to certain extent, yes. Got it, sir. Sir, the EV parts will be mostly machined parts? Yes. Our strategy, right now the EV part is the global business. Very few people in India right now making it, because even in India, people are thinking of importing it. They're not making the complete setup in India at this moment. For global business, Alicon has got a strategy to supply these components in fully machined condition, so that the risk, whatever is there as far as the quality of the part is concerned, that will be filtered at our level only, and only good parts will be sold to a global market. From that strategy, it will be fully machined components, and we are going with this at this moment also. Thank you, sir. Sir, non-auto business has done well. The share has increased to 11%. Last year, it was 8% for the full year FY 2020. Can you indicate which of the sub-segments are doing well? Tractors, you alluded to, is certainly doing well. Any other sub-segments which are doing well? Here, the orders and the customers you have, if you can elaborate on that will be helpful. Thank you so much. Other than agriculture, that is tractors, we've seen the growth in the energy sector. As you know that not many projects, domestic as well as global, electric projects are coming. Where this new technology, that is gas-filled technology has come into picture. We've seen the growth there with the existing components, and also the new business, what we are having, that also is coming in the energy sector at this moment. Also, we have seen the growth in the defense sector, where because of, if you see, Indian government has recently released the tender for the light weighting of the current tanks which are in operation. 128 tanks at this moment to be refurbished with an aluminum parts to do lowering the weight of these tanks. Each tank requires 32 wheels. Alicon is one of the only supplier for this to Indian defense, through low pressure die casting. Recently we have got a balanced order of around 900 wheels to be supplied, and got a tender of 3,890 wheels to be supplied in next three years. Each wheel weighs around 42 kg per wheel. We are seeing the growth there, and also new opportunities are emerging out. Recently, if you have seen the Tejas, which the plane which has been developed by HAL for a passenger, which has been converted to a fighter plane. For this, there are the new requirements that come from the defense for developing the landing gear. This activity is at the premature stage right now, but Alicon has got an opportunity to participate for this development, converting presently whatever is imported, it's a complete import substitute, so develop this part for the landing gear, and Alicon is working on that. These are the major two sectors we have seen very well increased. Also, you know that we have developed a cylinder head for BEML, for vehicle Tatra. Again, that goes to the defense. Right now, looking at the market situation and the environmental situation around all the borders of India, what do you call? Army and defense escalation is going on. For that, there is a new tender of 10,000 Tatra vehicles has been ordered to BEML. We have got an increased share of business for a cylinder head, which we are exclusively supplying it to BEML, and there is an increase in that business we have got it. All these three, four sectors have given us an increase in our non-auto sector business this quarter. Thank you, sir. Thank you so much, and all the best. To Vimal, sir. Sir, one basic question. Our gross block is roughly around INR 700 crore, and capacity is about 42,000 metric tons, which implies capacity cost per ton of somewhere around INR 160,000 per ton. Just wanted to understand at the current scenario, what would be approximately the capacity cost for setting up, say, 1,000 metric tons of castings and machining, if that is possible? Thank you. Little bit complicated question because there is a completely change in the processes that are going on. Earlier, [uncertain], whatever the last, we were doing the business mainly on the casting. Now, the processes we are changing, shifting to more on the machining side. Now when we are going for the complex parts, there is a requirement of some specific equipment that we have to do. Then there is a more value addition, not going for the, what we can say, the tonnage side. Tonnage and investment is little bit difficult to match what we are seeing, what we had in the past, and what we are planning in the future. The complete change is coming up in the business structure. Got it, sir. Thank you, sir. Thank you so much. That's all from my side. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for their closing comments. Thank you. I hope we have been able to address your questions. Should you need any further clarifications or would like to know more about the company, please feel free to contact our team or CDR India. Thank you once again for taking the time to join us on this call. Thank you very much. Thank you. Thank you. Ladies and gentlemen, on behalf of Alicon Castalloy Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.