Ladies and gentlemen, good day and welcome to the ASK Automotive Q2 and H1 FY25 Post-Conference Call hosted by Adfactors PR. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference call is being recorded. I now hand the conference over to Mr. Sanjeev Arora. Thank you, and over to you, sir. Siddharth. A very good evening to everyone, and welcome to the Q2 and H1 FY25 earnings call of ASK Automotive Limited. From the senior management, we have with us Mr. Kuldeep Singh Rathee, Chairman and Managing Director, Mr. Prashant Rathee,, Full-Time Director, Mr. Aman Rathee, Full-Time Director, Mr. Naresh Kumar, Chief Financial Officer, and Mr. Sanjeev Arora, Vice President, Financial Strategy and Investor Relations. Before we begin the earnings call, I would like to mention that some of the statements made during today's call may be forward-looking in nature, and hence, it may involve risks and uncertainties, including those related to the future financials and operating performance of the company. Please bear with us if there is a call drop during the course of the conference call. We would ensure the call is reconnected at the earliest. I would now like to hand over the call to Mr. Kuldeep Singh Rathee for his opening remarks. Thank you, and over to you, sir. Good evening, ladies and gentlemen. At the outset on this happy occasion, I and the whole ASK team would like to wish you all a very, very happy and prosperous Diwali. May this festival bring abundance of success, good health, wealth, joy, and happiness in your life. I'm elated to be with you today evening to update you on our business performance for the second quarter and half-year ended September 30th, 2024. I would like to begin by giving some insights on the industry update, followed by details of our business performance. As per SIAM report, the automobile sector, in terms of vehicle production across all segments, grew at around 9% in Q2 FY25 against the same period last year. Amongst all segments, two-wheeler segments stood out and witnessed a considerable growth of 12.5% in Q2 FY25 and 15.8% in H1 FY25 on year-on-year basis. The two-wheeler industry registered robust vehicle production volume of 6.3 million in Q2 FY25 against 5.6 million in the same period last year. The two-wheeler vehicle production in H1 financial year 2025 was at 12.2 million against 10.4 million in the same period last year. The strong momentum in the two-wheeler sector continued in Q2 FY25 with positive market sentiments for the upcoming festival season and pent-up demand from the rural and urban sector with the end of the good monsoon across India. I am now moving on to ASK business performance. I am delighted to share with you that we had a strong finish to the second quarter and first half of the year in both revenue and profitability. This is the fourth consecutive quarter of robust performance by us since the listing of the company last year. During quarter two financial year 2025, we delivered strong performance in business and recorded significant growth of 22% in revenue, 50% in EBITDA, and 63% in PAT on year-on-year basis. This is the highest-ever absolute revenue and EBITDA earned by us in any quarter in the past. We have also continued to outperform the two-wheeler industry vehicle production growth in Q2 financial year 2025. Further, I am glad that our EBITDA margins have crossed the 12% level. We have delivered EBITDA margins of 12.2% in Q2 FY 2025, which is 230 basis points higher than Q2 FY 2024 and 20 basis points higher than Q1 FY 2025. As a result of strong performance in Q2 FY 2025, our revenue has grown by 26%, EBITDA by 54%, and PAT by 63% in H1 FY 2025 on year-on-year basis. Our EBITDA margins stood at 12.1% in H1 financial year 2025, with an improvement of 220 basis points on year-on-year basis. These strong results reflect the result of our continued focus on expanding value-added businesses, improving utilization of production capacities, and bringing cost efficiencies. Our aim is to sustain this level of EBITDA margins and improve gradually in the subsequent quarters, depending upon the growth of the two-wheeler industry in H2 FY 2025. With strong performance on profitability, our earnings per share in first half FY 2025 has increased to INR 6.3 per share against INR 3.86 per share in the same period last year. Let me now go into further details of our performance on both revenue and margin sides. We have delivered robust performance in Q2 FY 2025 and recorded consolidated total income of INR 976 crores, which is 22% higher on year-on-year basis. As a result, the consolidated total income for H1 FY25 stood at ₹1,841 crores, posting 26% year-on-year growth. All the three product segments continue to perform well and deliver robust revenue growth in Q2 FY25. We have sustained a market leadership position in the Advanced Braking Systems business with 18% year-on-year growth. The Aluminium Lightweighting Precision Solutions, our largest business segment with 45% share of revenue, maintained the growth momentum and deliver 27% year-on-year growth, and Safety Control Cables also grew by a healthy 18% on year-on-year basis. We have recorded strong growth in our margins and profitability. Our Q2 financial year '25 EBITDA stood at ₹119 crore, recording 50% year-on-year growth, and H1 FY25 at ₹222 crore, posting 55% year-on-year growth. We have delivered PAT of ₹67 crore, with 63% year-on-year growth in Q2 FY25, and ₹124 crore in H1 FY25, with 63% growth on year-on-year basis. Now, let me talk briefly about the status of expansion plans of our production capacities. Firstly, our mega manufacturing facility at Karoli is expanding fast. The increased economies of scale and operational efficiencies are benefiting us in delivering better results. We have started to generate positive EBITDA margins from this plant now. Secondly, construction work for our upcoming new plant at Bengaluru, the third plant in South India, is progressing as per schedule and is expected to operationalize from Q4 FY25. Thirdly, commissioning of work of our upcoming solar power plant of 9.9 megawatts in Sirsa, Haryana for captive consumption is nearing completion. As we go forward, we are hopeful of maintaining the trend of outperforming the industry growth in the subsequent quarter of FY25. We anticipate the growth momentum in the two-wheeler sector to continue for the remaining part of the year, with prevailing positive market sentiment on the arrival of the upcoming festive season. At last, our endeavor and commitment is to always keep contributing towards the value creation for our stakeholders and investors. So, ladies and gentlemen, now I open the floor for questions and answers. Thank you very much, sir. 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 handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question is from the line of Kunal Ochiramani from Kitara Capital. Please go ahead. Hey, sir. Congratulations for record numbers. I just wanted to know when will the Alloy Wheels business start and how much revenue and margins do we expect from the business? Happy to share that Alloy Wheels, there is a very steady progress in the Alloy Wheel business, and our Bengaluru plant will get commissioned in the quarter four. You can expect, after due testing, the business to start in the next financial year. What is the capacity and how much revenue do we expect? We don't comment at the moment about the revenues. It will all depend on how the tests perform on the Indian roads. The capacity number of wheels? Capacity is not an issue because we are investing INR 200 crores, and the machines are the high-pressure die casting, which are the common machines. Okay. Thank you, sir. Thank you. Before we take our next question, we would like to remind participants that you may press star and one to ask a question. Our next question is from the line of Naveen Kumar Dubey from Narnolia Financial Advisors. Please go ahead. Yeah. First of all, congratulations, sir, on your strong set of numbers. It's time the industry is witnessing some kind of bleak scenario. My first question is related to the industry itself. How do you see the two-wheeler industry panning out going forward as we see that industry has already met, I think, the market peak of 2018? So how do you see the numbers going forward? Inventory. Equally. Equally. Okay. Two-wheelers. And the voice was not very clear, but what we understood you are asking about the performance of the two-wheeler industry. Well, as you rightly heard, the peak was 18, 19. The industry, even till last year, did not come up to that number. But this year, we are seeing a good growth in the two-wheeler industry. We are hopeful that it will touch or just cross that number. It will be very near to that number. Okay. So actually, I was referring by adding the electric vehicle numbers also, sir. If we add both, the industry has surpassed, I think. Yeah. Yeah. This year, if we add that, that's a very small number, electric vehicle number, but I think we'll be around that or we'll surpass a little bit too. Another question is, sir, we see the export is still a very small part of our revenue as of now. How do you see the traction in the export markets? Because export, basically, if we see Europe and the U.S., the news is not very good from that side. So how is the response on the export front, sir? Yes. You are right. The export front, the Europe business is seeing some problems in terms of demand. And one of our major customers is in the process of correcting their huge inventories in the pipeline. So we are growing, but it's a very, very nominal growth that we are up to. Though the Q2, we have performed much better than the Q1. And further, also, they are saying that now they'll start further. But yes, I will confess, Europe is still in demand. But the good part is next year, we have a substantial big order of more than 75 crore, which is additional to the existing business, and that's likely to start by the middle of January. So that will see us and give us a quantum jump in the next financial year. Okay. Well, that's great to hear the strong export front. Still, the industry is not doing good, and still, you are getting the orders there. Yeah. And one more thing related to that, P&L, we are seeing that numbers are not improving, I think, in the P&L front. So anything on there, sir? Any update on that side? The update is that the commercial vehicle sector, as you know, is not doing that well. The numbers have not been good there. But still, the good part is that our share of business is continuously increasing in Tatas and Eicher Volvo. And as I said just now, Europe is a little bit in a little bit flat in demand. So there also, a little bit, export demand got affected. But now, we have very good orders for this particular quarter. So we see the huge revival, good amount of revival in these two quarters, quarter three and quarter four. Okay. And the last question, sir, on the margin front. We are seeing the consistent margin improvement quarter on quarter that we are seeing. What is the cost-cutting initiative you are taking there? And any pressure from the commodity price increases in the recent time? No, no. The commodity prices, we have no issues because we are hedged back to back with the customers. So there, we are totally secure. And as regards to the margins improving, I have said many times that historically, our margins have been between 12%-13%. And I said that we'll be crossing 11.5 and inching towards 12 because our new Karoli plant has come into about 45%-50% capacity utilization. So because of that, there are huge economies of scale that we are deriving. Happy to share with all of you that the Karoli plant has been EBITDA positive. So that's getting reflected in the overall numbers. So we are very, very confident that for the full year also, we would be able to maintain this 12% EBITDA margin this year, and we'll try to further improve it next year. Okay. That's great to hear, sir. That's it from my side. And congratulations and all the best again, sir. Thank you very much. Thank you. Our next question is from the line of Ronak Mehta from JM Financial. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity and congratulations on a good set of numbers. So my first question is on the Karoli plant. Like you just highlighted, the capacity ramp-up is at about 50% right now. How do you see the ramp-up over the balance of the year and next year? Are there any new order wins that you would want to highlight which will help this plant to ramp up further? Yes. The ramp-up will definitely happen next year. This year, it will remain at about 50-55%, but next year, we expect it to go up to 70%. Okay. And any new order wins to highlight for them? It is such a huge plant, and because we have only constructed 60% of it, 40% is still left, so maybe we keep on investing, and if more and more orders come, there is potential to grow there. Okay. Fair point. And are we accruing any incentive? Have we started receiving the incentive on this plant, or that is yet to come? Incentives. We have qualified. We have got the eligibility certificate, but we'll start getting the accrual from quarter four. Okay. And that will be for the full year? What will be the incentive next year? This financial year, it will be only for quarter four, and from next financial year, it will be for the full year. No, sir. The quantum for the next year? Quantum will depend on the sales in the state. That cannot be identified at the moment, but I think even this part will substantially add to our EBITDA margins. Okay. Okay. Now, my second question is on the PV business. So you have highlighted in the presentation about orders from Mahindra & Mahindra and some of the PV OEMs. Can you highlight what are the products that you will be supplying to these OEMs? What will be the content, and what can be the potential revenue from these orders over the next couple of years? No. We are totally focusing on the PV through Tier 1 suppliers, as I said, because we are into the business of very light-weighting and critical components, so we are supplying those to the very esteemed customers in the Tier 1, and I'm very happy to share that in this H1, we have grown by 26% in the revenues in the PV also. Okay, sir. But what is the revenue potential, or what is the current revenue from the PV OEMs? See, sir, in our line, nothing is abrupt. We have to continuously make effort and gradually grow in these segments because there are other players also. So it's not a very easy road. Okay. Fair point. Thank you, sir. That's all from my side. Thank you. A reminder to the participants that you may press star and one to ask a question. Our next question is from the line of Basudeb Banerjee from CLSA. Please go ahead. Welcome. Am I audible? Yes. Yes, Basudeb. Yeah. A couple of things. So as you just said, the incentives will start coming from Q4 and fully next fiscal. So it will be on a quarterly basis next year, or it will be lumpy as such accounted for next year? It will be on monthly basis. It will be on monthly basis as per the sales in the Rajasthan state. Actually, Mr. Basudeb. Yeah. It's on my side. Actually, we have accumulated input credit. When first that input credit will be utilized, then it will start accruing to us. So it will be depending on the GST incentive, whether when we are going to sell, the GST incentive is going to kind of accrue. So we're going to account for it on a monthly basis. Surely. So largely in FY 26, it will be broadly across every quarter. Yes. Yes. Yes. Very correct. Even from Q4, we'll start affected. Very correct. Sure. Sure. Sure. And second thing, sir, if I recall, your export quantum, which was close to what, INR 140-INR 150 crore last year? Yes. Correct. It was INR 140.47 crore. Very correct. Yeah. So because of the slowdown, what you mentioned, this year, roughly, where do you see it ending? And is that INR 300 crore outlook for FY 26 for exports still intact? See, we will grow this year also in spite of very, very bad conditions. But next year, that one extra order of INR 75 crores will give additional push. So maybe we are in that range, almost INR 250 crores-INR 300 crores. Yes. Definitely, we are targeting, and we are making efforts to achieve that. That's neat. Last question, sir. Two-wheeler EVs giving precedence, Bajaj also ramping up. So you are almost garnering one-third of your revenue from Honda. So any clue on Honda's EV launch, any timeline, and what all critical components you will be supplying, anything on that, sir? Aman, you can answer. So hello, Basudev. So basically, in the EV segment, we have been serving the whole industry. And as you know, in EV, because of lightweighting, more and more aluminium content is there. So on the same lines, we are serving the industry. Honda has given us a tentative indication of next year of launching the EVs, but it will all depend on the industry growth. But we are fully geared up with all the products. So Amanji, any timeline? Next year means almost, or it was expected sometime this year only? So, Basudeb, no. It's next year only. And maybe we'll be sure of the quarter four. By quarter four, we'll be able to tell you. Thank you. Sure, sir. Thanks. Thank you. Our next question is from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead. Yeah. Thank you for the opportunity, and sir, congratulations on the good set of numbers. Thank you. Thank you. Thank you. On the export side. So is there any expectation for an increase in the coming year? Like you mentioned, that the 400 order will grow. So how we are expecting that kind of growth order we have? And also, because the situation is not that great on the Europe side, so how we are able to manage such kind of large orders and how we are managing overall on the export side? No, the exports, as I told you, this time it's a very tough call because the European market, they are collecting the inventories. But I have just said that we will cross last year's exports numbers. And we are confident on that. And about next year, as you said, these orders take two to three years of effort. And because first, you get the orders, then you make the samples, they are vetted. So it takes a lead time with that. But in that lead time, what has been approved, so we'll get INR 75 crores extra, new order from a new customer. So next year, that's what I said. Okay. Thank you, sir. And sir, what is your perspective on the recovery of the rural market for two-wheeler? A lot of positiveness on there. So what's your perspective? I am always a positive person because I feel the infrastructure spending in H1 has not been there because of the elections and other reasons, and I feel there will be a lot of spending because if you see the budget of 11 lakh crores, I think the government will be on a spending spree once they are free from this Maharashtra election, so the rural sector should pick up. That's my feeling. Thank you, sir. So just one last question on the aluminum lightweighting side. So a lot of contradictory view that is going on for the EV side. But we will grow more if the penetration is high in EV. So how is the demand scenario we are seeing, and what are the expectations basically for the aluminum lightweighting product? No, we see a very good scope if the EV starts going. EV is slow, as you know. To date, it has not picked up very much. But whatever it has picked up, we have still grown 26% in the H1, in the EV, in our sales. But that's all because of lightweighting. Okay. Thank you so much. Thank you. Our next question is from the line of Joseph George from IIFL. Please go ahead. Hi. Thank you. Congratulations on the quarter, and happy Diwali to all of you. Thank you, Joseph. Thank you. So I just had two questions. So one is, just a clarification, you talked about an export order with a value of about 75 crores. Just wanted to confirm, is that the annual value, and how many years of recurring revenues are we looking at? It's annual. Yes, it is an annual value. Annual value. Additional order is of annual value. Okay. And is it a recurring order for several years ahead, or is it like a one-time? It's a recurring order. So that's why we are saying that next year, we expect our revenues to be between INR 250 to INR 300 crores if all goes well. Understood, sir. The second question that I had was on the solar power. Could you quantify the savings that you expect? I guess the benefits are starting in FY 2026. Could you quantify the benefit that you accrue? I mean, that you expect to accrue because of the savings in terms of power savings, etc.? Yes, sir. We don't have any past experience on that, but the manufacturer says that we will recover the investment in five years. Okay, and how much have you invested just to refresh my memory? 45-INR 48 crores, something like that. Okay. Okay. Understood, sir. And the last question that I had was, we are setting up. We will worship the sun for that so that we get regular supply because it is our first experience. Sure, sir. And so the last question that I had was in relation to the alloy business because we are seeing one or two other players also setting up alloy wheels. So in that context, I just want to understand how big is the market for two-wheeler alloy wheels right now? And based on the orders, etc., that you have received, how confident do you feel with respect to scale-up? Because it's a segment that is attracting the attention of many players like you. Yes. I just said that the testing will take maybe six months. So this question will be more confidently answered in the next to next earnings call. Because till the time it gets tested, it gets approved, we can't say anything. But we are very confident because the person with whom we have tied up is already OEM for the last many, many years in Taiwan, and then he's supplying to the European market also. So we can't imagine anything wrong with the Indian roads, I think. We feel Indian roads are also very good. Sure, sir. And just last question related to alloy wheels, you mentioned that you're investing about 200 crore plant, right? Yeah. But that's not for alloy wheels. That is in general for the die-casting. It's an aluminum light weighting section. And as I say, that the machines are the same, so that can be used anywhere. Sure. Understood, sir. Thank you. That's all I have. Thank you. Participants, who wish to ask a question, may press star and one at the same. Next is a follow-up question from the line of Ronak Mehta from JM Financial. Please go ahead. Yeah. Thank you for the opportunity once again. Just one follow-up, sir. Any update on the JV with Aisin Group from when the supplies will start? What would be the potential? What is the potential of the JV? Whatever you can highlight. Ronak, the JV formation was done, and all the expected operations are expected in Q4 of FY 2025. We are all gearing up for that. It has a potential of about INR 100 crore to INR 150 crore over the next three to five years. Okay. INR 100-150 crores per annum over the next three to five years. Yes. Okay. Thank you. Thank you, sir. Yeah. Thank you. A reminder to the participants. You may press star one to ask a question. As there are no further questions for today, I would now hand the conference over to Mr. Kuldeep Singh Rathee from ASK Automotive for closing comments. Thank you, ladies and gentlemen. And on this good note of the performance of H1, I would like to reassure you all that we'll be working in the right earnest and put up all the hard work with sincerity so that we come up to the expectations of our dear investors and add value for our stakeholders. Thank you very much. And again, wishing you a very, very happy and prosperous Diwali to all of you. Thank you. Thank you.