Ladies and gentlemen, good day and welcome to Bosch Limited 2Q FY 2024-2025 post earnings conference call hosted by B&K Securities. We have with us today from Bosch management, Mr. Guruprasad Mudlapur, Managing Director and Chief Technology Officer, and Ms. Karin Gilges, Chief Financial Officer. At this point, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management presentation and opening remarks. Over to you, sir. Good evening everyone, and thank you for joining us today. I will begin with an overview of the global and macro economic landscape, followed by financial and business highlights. Globally, the expectations for economic recovery are fading, especially in Europe, where manufacturing is declining. Services growth is slow, and the GDP growth is very minimal, with Germany facing a very weak economy. Meanwhile, the U.S. economy is doing well, with strong job growth and 3.2% GDP growth. Input cost, including shipping, raw materials, and wages are constantly lower and stable. However, this trend is not expected to continue. Although, the global inflation has remained stable. India remains, seems to have imported part of the inflationary pulses, majorly contributed by food prices. India still remains one of the fastest world, fastest growing large economies. Growth is likely to pick up, driven by increasing consumer spending, especially in rural India, as inflation subsides and agricultural output improves after favorable conditions. Looking ahead, we anticipate 2025 to mirror 2024 growth trajectory in India. Next slide, after hitting an all-time high in FY 2024, the automotive industry saw a slight 1% decline in Q2 FY 2025, compared to Q2 FY 2024. This is due to the high base effect, coupled with election slowdowns and unfavorable climate conditions. The constructor segment struggles with high inventory levels, around 70 days in this quarter. Weak consumer demand has slowed the growth, despite moderate retail gains from discounts. Economic factors like slower retail credit and shifting ships and spending impacted entry-level models. The festive season is crucial for clearing excess inventory, though caution remains. Heavy commercial vehicle segment remained declined due to decline, due to high base effects, slowed infrastructure projects and decreased fleet utilization from heavy rates. Bus demand, however, remained strong, thanks to large orders from state transport and light commercial vehicles segment faced pressure, especially in lower tonnage categories from growing three wheeler competition. Two wheelers recorded strong rural demand and new launches drove growth, with electric two wheelers boosted by favorable policies and subsidies. Growth is expected to continue through the festive season. Three wheelers experienced robust demand, especially for electric models in passenger and cargo application, supported by long-term subsidies and rising last point urban connectivity. Tractors showed slight growth, due to favorable monsoons, strong domestic demand and higher minimum support price, and is expected to sustain this growth. In this slide, we illustrated the market's trajectory from the peaks of FY 2019, through the challenges posed by COVID, to the subsequent recovery. The automotive market ended FY 2024 on a positive note, reaching all-time highs in car and LCV segments, and maintained momentum in other segments. Looking ahead, the election year high base effect and historic trends suggest moderate growth for the automotive industry. The recent inventory buildup in the car segment remains a concern, but the underlying economic conditions are strong, and India's growth narrative remains positive. Next slide, please. Sector-wise sales performance quarter on quarter. The mobility business has seen growth, has grown by 67% in July-September 2024, as compared to July-September 2023, driven mainly due to power solutions business, which grew by 57%, mainly due to increase in sales to passenger car segment. Increase mainly coming from diesel models, increase in sales for genset applications with common rail systems, and increase in export sales for electronic control throttle body, inland pump and nozzle holders. The mobility aftermarket business, which grew by 88% on account of higher demand from lubricants and diesel systems. Two wheeler business grew by 134%, mainly due to higher sales of fuel injectors and exhaust sensors, driven by increased demand from prominent domestic motorcycle manufacturers. The consumer goods business grew by 101%, driven by high demand for grinders, drills, cutters, spares and accessories on account of market growth. The building technologies business grew by 201% on account of execution of high number of orders for installation of video service and communication systems. The mobility business has grown by 54% in April to September 2024, as compared to April to September 23, driven mainly due to power solutions business, which grew by 4%, mainly due to increase sales in passenger car segment, mainly fuel, air and ignition components, electronic throttle body and EGR components. The mobility aftermarket business grew by 84% on account of higher demand from diesel systems and rotating machines. Two wheeler business grew by 14%, mainly due to higher sales of fuel injectors on account of increase in market demand for popular sports and commuter motor bikes. The consumer goods segment business grew by 76%, driven by higher demand for riders, cutters, drills, spares and accessories on account of market growth. Building technologies business grew by 197% on account of execution of high number of orders for installation of video surveillance and communication systems. Next slide, please. Quarter on quarter, revenue from operations in July to September 24, stood at INR 43,943 million, which is a growth of 64% over July- September 2023. The growth is driven by mobility aftermarket business, power solutions business and consumer goods business, as seen in the previous slide. Likewise, revenue from operations in April- September 2024, stood at INR 87,110 million, which is a growth of 51% over April- September 2023. The growth is driven by mobility aftermarket business, power solutions business and consumer goods business. Quarter on quarter, EBITA in July- September 2024, was INR 5,605 million, which grew by 141% over the same quarter of previous year. EBITA, as a percentage of total revenue, improved from 11.9% in July- September 2023 to 12.8% in July- September 2024. The improvement in the EBITA margin is mainly attributable to growth in revenue and improvement in material cost. EBITDA in April-September 24, was INR 10,802 million, which grew by 126% over the same period of previous year. EBITDA, as a percentage of total revenue, improved from 11.6% in April-September 23 to 12.4% in April-September 2024. The improvement in the EBITDA margin is again on account of growth in revenue and improvement in material cost. The profit after tax, stood at 12.2% of revenue from operations, as compared to 24.2% over same quarter of previous year. Previous year had a one time exceptional item of profit on sale of project house mobility solutions, PJMS business of INR 7,850 million. Likewise, in the current quarter, that's July-September 2024, also has an exceptional item via sale of OES diagnostics business of INR 485 million. Likewise, profit after tax stood at 115% of revenue from operations, as compared to 17% over same period of previous year. The difference is on account of exceptional item that is profit on sale of PGMS business, which was there in the previous year. Next slide, please. Bosch Limited Power Solutions Division has played a major role in supporting a major OEM to applicate the Bosch engine management system for their first ever gasoline direct injection system engine. The Power Solutions Division also contributed towards advanced hardware, software and calibration solutions for the 12 liter gasoline engines. Bosch has launched two connected solutions called Vehicle Load Detection and Driver Analytics to the market, which will aid commercial vehicle owners to monitor the vehicle's usage and driving parameters more closely and enable optimal performance. At the fifth CII National Digitech Circle Competition 2024, Bosch's Jaipur plant won the gold medal for digitization in maintenance and energy management and silver for best case study of innovative business models for digitization in manufacturing and services. Coming to two-wheeler and power sports, it's a moment of immense pride to have supported the launch of the world's first CNG bike, featuring the Bosch engine management system. With this successful release, Bosch is well positioned to support two-wheeler industry for CNG as fuel technology. The Bosch engine management system EMS is bi-fuel solution and can operate either on CNG fuel mode or gasoline fuel mode. The system has the capability to switch between fuel modes on demand, smoothly on the go, with the precise control on performance. Bosch EMS is developed to meet the latest emission norms for Indian market for two wheelers, which is BS 6 OBD 2 Stage A. The solution offering is robust and package protected for OBD 2 Stage B. Bosch has also partnered with premium two wheeler brand, integrating our engine management systems and safety systems. The Bosch MSC technology will further open the market for advanced safety systems to the Indian market under the umbrella of Bosch MSC for all campaign. It's a moment of pride to be recipients of special jury commendation at the sixth edition of FICCI PKI Road Safety Awards and Hall 2024 for exceptional interventions in promoting road safety through the MSC for all initiative across the nation. The award presented by Shri Nitin Gadkari, Minister for Road Transport and Highways of India, acknowledges Bosch's significant contributions towards enhancing road safety nation wide. In the Mobility Aftermarket Division, we face some challenges in the Independent Aftermarket or IAM due to lower demand in diesel space category. On a positive note, several key business product lines have shown remarkable performance with diesel rotating machines, battery and wipers, all experiencing significant double digit growth in the Indian market. In addition to financial performance, I am proud to announce the inauguration of our 100th Bosch Service Two Wheeler Workshop. This milestone marks a significant step in expanding our service network, ensuring that we continue to provide top notch service solutions to our customers. Next slide, please. Beyond mobility power tools, our Global Power Tools Division has launched the Impact Screw Driver range or ISDR and Impact Drill System or IDS, enhancing tool back coverage to meet industrial demands. In measurement tools, we have introduced new line lasers and wall lasers for greater precision in construction and design. Our market campaigns are also gaining traction with Cordless Campaign 2.0, promoting the power of cordless tools under this local cordless power. May tools may high gun and hard work made easier campaign, showcasing how our innovations simplify tough tasks for professionals. The Building Technologies Division of Bosch Limited launched the Flexidome IP starlight 5000 AI camera, our first made in India product from the business unit Video Systems. This milestone enhances our domestic production capabilities and underscores our commitment to local manufacturing and innovation. Additionally, we are expanding our professional sound segment with new products under the Electro-Voice brand and Dynacord, enriching our audio solutions portfolio. Furthermore, Bosch Limited has received the FIST Award 2024 for the Safe and Secure Office Campus category, awarded by Fire and Security Association of India, highlighting our dedication to a safe and secure working environment. Next slide, please. With this updates, I continue my speech. Thank you all for listening patiently. Will now address your queries. Please feel free to ask your questions. Thank you sir. Will now begin the question and answer session. For participants who wish to ask a question, I request you to please raise your hands. Participant can also type in the questions into the chat box. Will now wait for a moment for the question queue to assemble. The first question is from Mister Jinesh Gandhi. Please unmute and ask your question, Jinesh. Jinesh, you are not audible. I am audible now? Yes yes, audible now. Yeah. Yeah. Hi, a couple of questions from my side. One is given that TREM finance as of now to be implemented from April 2026. Can you talk about how do we plan to localize components for TREM finance? Would it be in synch with what you've done in the past as volume runs up localize that or been this thing? So, thank you Jinesh for the question, we have quite well prepare to handle the assignment for TREM localization, and we can expect much higher level of localization for 2025 starting from the beginning itself. Nearly open for the scope movement or change in the days with movement. But assuming everything was in effect, we are on our side ready to make the demands in the industry. Got it, got it. And secondly, in this quarter, we have seen a good decline in share of credit goods. Is it because of the full benefit of localization is now reflecting in 2Q numbers, or it's also to do with lower contribution of CVs in this quarter, because of volume decline with CV industry? So, yeah, you take this question. Of course, it's a mix. It depends highly what product mix we have. This month, we had favorable product mix on the one side. But, of course, we are going ahead with the localization, and step by step, we see what we implement here in India. So, I would not say the black and white. It's a mix, and yes, we had there for a quite favorable mix. But, see also that we are going ahead with the localization. Okay, but wouldn't be fair to say that the ramp up of localization is now totally done, or there will be some more benefit coming as volumes go up as well? Yes, so, not only volumes going up, but of course, products coming in, new generations coming in. We have, for example, three years ago, we have implemented our injector line for the commercial vehicles. That we are on a good streak already for the components, but this is not finished up to now. So, actually, it is an ongoing process. We are looking all the time into our portfolio, where can we localize, what can we localize. So, it is not finished and done. It's an ongoing process. Got it. And last question from my side is on CapEx. So, first half CapEx was roughly about INR 100 crores. Any guidance for full year CapEx? Usually, we spend between INR 5 crores- INR 600 crores. So, just wanted to clarify what it will be for FY 2025. Yes, so, we have, we have also this year a decent amount, roughly INR 4,000 million. And it is a little bit lower compared to last year, because the auto body campus is now finished. And this is mainly plant and machinery. And traditionally, in the first half year, we are starting to implement machines. But, until we really go into the SOPs and that we are capitalizing this CapEx, it's then in the third and fourth quarter. Got it. Thanks. I will follow back in queue. Thanks, Jinesh. Next in the line will be Mister Atman. Please unmute and ask your question. Atman Shah, okay? Yes, locked out. Next in the line is Mister Pramod then. Please unmute and ask your question. Pramod, yeah. So, the first question is with regard to the tractor supplies. I wanted to know your preparedness as the industry on a high base, looking for a double digit growth in the second half. And also looking at if the pre buying comes through again, there can be a sustenance of double digit. How are you prepared to handle this on a high base? The double digit volumes one. Second, at the end of it, again, you have to transition to the TREM V. Is then the volatility of volumes? How will you be prepared to handle in the short term? Can the CVs be capacity be fungible to tractors? Or how does it actually play out? Yeah, so, if I understand your question right, you are hinting that there will be some pre buy effect before TREM V case. And are we prepared to handle those additional volumes? And post TREM V comes in, how are we equipped to handle those volumes? That's the question, right? Correct, correct. Okay, so, I mean, we are surely equipped very well to handle the pre-buy effects. We have, we always have discussions on topics like this together with our audience. And we anticipate, if they anticipate any pre-buy, which has happened in several locations in the past, like for example, BS 4 to BS 6 and other norm transitions. We work with them very closely and ensure that we are fully prepared and we are ready to support on any capacity increase that we need to cater to this demands. So, on pre-buy effects, we surely can handle it. On TREM V, I think I already answered it. We are well prepared to handle the transition and we look forward to that. The second question with regard to the car segment, there seems to be a policy favoritism for hybrids. Wanted to know, how does Bosch play a role in terms of content per vehicle when the existing ICE engines go for hybrid? What parts you really supply and how you handle the customer? Any case studies for India already happening? Or how are you seeing this business shaping up? Y es, so, we are in discussion with several OEMs on hybrids. While some are quite active and have a couple of models already in the market, and others are still in early trying phase. There is no confirmed policy support that we see other than one or two states are doing something independently. But, will have to wait and watch how this develops. But, we surely have capabilities to support the OEM. Sure, thanks and all the best. Thanks, Pramod. Next in the line will be Mister Gokul. You can unmute and ask your question. And anybody who has a question, please raise your hands. So, two questions. In the start of the year, you have sort of indicated that the growth would mirror the growth which we seen in FY 2024, giving Q1 being a more transient quarter because of the elections. Given that first half is gone, and there have been some changes in the underlying automotive market. What you want to just revisit your growth expectation for FY 2025? So, your question is, would be like to revisit growth estimates for 2025? Is that what you are saying? Or no? Yeah, I think, I think that is the question, sir. I think he has gone to mute. That is the question, sir. Okay, so, I mean, we our business planning cycle constantly looks at what's happening in the market. We take feedback, not just from the market, the inventory positions in the market, what our OEMs tell us, and what we need to plan for the year. Of course, we have complex internal tooling, which also helps us fine tune the possibilities under various scenarios in terms of what is the possible GDP growth rates, and how are different sectors performing. Based on that, what should we plan for in terms of our different segment level growth opportunities. So, this is a thing we constantly do. So, yes, we see today, the indicators are that 2025 is likely to mirror 2024 growth rates. There can be ups and downs, and we well prepared to handle that. And if there is a change, we evaluate this at very regular intervals within our business planning cycles, and we will adapt suitably. Thank you. Two more questions. So, one is, if you could please comment on the underlying CV industry, because first half has been fairly weak for both the major OEMs. What are you seeing on the trends and interactions with your customers on the outlook for the industry for second half and going forward? CV industry, we expected to remain muted or where things are right now. I think that's the current expectation also from. Okay, great. Lastly, just on exports front, while the external environment has been very muted and due to the geopolitical conditions, are you seeing things pick up over there? And what's the outlook for the near term of the next six to 12 months for the exports business? Okay, so, we don't look at exports on very short term basis. That's not planning our exports as well. We consider exports as a longer term opportunity, while there are some real short term gains based on some capacities or some changes in the market abroad. That's one way of looking at it, and we will surely cater to that as it comes. But for us, growing our export business is much more of a longer term opportunity over, let's say, the next five years. So, we are preparing ourselves to continue to increase in our export growth as we go forward. Okay, what would be the export growth in H1 versus last year's H1? We have this quarter, we have a slightly increase in the in the exports, but as who already mentioned, it hardly depends on the demands where we have in the international global network production network some demands. And so, overall, we see a growth of roughly 10% if we compare the previous year to this year. But again, for us, the long term perspective is much more interesting, and this was what we had early quarter. And yes, of course, we are all the time appreciate if we can support our international production work. Great, thank you so much, and all the best. Thanks, Gokul. Reminder to participants, if anybody has a question, please raise your hand. In the mean time, I will read out the questions from the chat box. First question is, we have indicated about good growth in the PV segment, despite underlying industry being weak. What will drive this growth? Yeah, I mean, the PV segment is connected to quite a lot, connected to what happens in our cities, disposable incomes, trend towards feminization, more affordability, GDP growth in general. So, and how well people are able to drive cities and for the penetration in our Tier 2 and Tier 3 terms. So, this would be the broad trends, and yeah, we track this trends, and we expect steady growth in our PV segment on our. Okay, sir, the next question is, we indicated safety systems for two wheelers. What to be the components on two wheeler systems? Are safety are in the listed entity? Hello, yeah, so, are yeah, I mean, we have our two wheeler division, which offers some components in to this market, while majority of the safety systems go from our sister company RBIC. But from the listed entity, our two wheeler division also caters to some center. Sense, okay, and some question from the chat box. So, whether any restructuring under practice or on the this thing for in the all the other listed companies in the Bosch table in India? Sorry, sorry, basically, the question is, see whether, see, we have lot of unlisted companies in the auto space in India. Whether any chance of restructuring or any whether? So, I think I have spoken about this in the past. We are constantly looking at our product portfolio, our business activities in the listed company, and also business activities outside the listed company in the Indian context. We are very open to look at and re arrange this things. These are discussions that are going on in the RBI and so with Indot. Yes, and when we have information to share, we will surely use that opportunity to share it with all. So, all I can say is that these discussions are ongoing in terms of multiple elements, and we will share it as. Yeah, reminder to the participants, anybody wants to ask a question, please raise your hand. I think that's all there. Yeah, there is no more questions. Are any closing comments you want to make, sir? So, say thank you to everybody to join the call and show. We are doing our best to ensure the excellent business performance under difficult, currently slightly difficult market conditions. And we hope to continue to keep this transition going, and you will hear more from us in the coming months. Thank you. Okay, thanks, sir. Thanks all the participants. We can now disconnect.