Ladies and gentlemen, good day, and welcome to the earnings conference call of Craftsman Automation 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. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Srinivasan Ravi, Chairman and Managing Director of Craftsman. Thank you, and over to you, Mr. Ravi. Good afternoon, everybody, and thank you very much for joining the earnings call. And today is a very important day because we have major events happening in Craftsman and its subsidiaries. So in the interest of time, I will just rush you through the financials, give an overview of the financial performance and what are the indicators which are to be considered in reading the financial statements. Then we will go to Q&A, and we'll spend more time on Q&A because of the two major acquisitions and also completion of the DR Axion acquisition, which has happened all in the one quarter or the beginning of this quarter, beginning of the new quarter. The H1 performance more or less has been, I would say, slightly lower than the last year, previous year, H1 performance, after taking into consideration two important parameters. Of course, the main Craftsman, there has been extraordinary expenditure which is related to two new plants which are coming in, have come up in Bhiwadi, which has started production at the end of August, and now it is operating at 28% capacity and it will reach around 50%-70% capacity in Q4. The second plant in Kothavadi, which is also a major milestone, is under trial production already. Both these plants have been incurring expenses, which have been gone to unallocated expenditure. So if you look at the EBITDA portion of the apple-to-apple comparison, if you look at it, I think there is a hardly 8-10% drop in the Craftsman H1 EBITDA levels. And the consolidated levels also are almost at a similar level, I would say, because DR Axion, there has been a small drop. So the three things which are now is we have taken over Fronberg, and we are operating it smoothly from the first of October as Craftsman Fronberg Guss Limited in Germany. And this is a big strategic deal for us because we are getting all global customers also for Craftsman's Kothavadi Foundry and machining at unit three. More of it later. Second thing is, Sunbeam was envisaged as first an asset deal and, and also only for three plants, and subsequently it moved into four plants, and, it again was an asset deal. But considering the complexity of the nature, we went in for, the, buyout of the entire company, and the CCI approval also came in, late, September, and we have, from the second week of October, we have acquired the company. So initially, the deal, whatever we have envisaged, I think there is some 400-odd crore, deal, which was there, which has become around 700 crore, but that is temporary because the land has not been sold in Gurgaon. Once the land is sold in Gurgaon, I think the money will come back into Sunbeam and indirectly, maybe also, I think some of the investments what we have made in Sunbeam, if the money can flow back, flow back to Craftsman. So, we have, because of these three major acquisitions and two major new greenfield projects, we've gone a little higher on the debt and maybe we'll close five twenty-six at around for a standalone debt of around INR 1,600 crore for Craftsman. That we have to also factor in the debt. Debt will become lesser when we sell the land of Sunbeam, is around 16 acres in Gurgaon. I mean, the subsidiaries will have also little debt, but not much, I think well within their capabilities. So with one more year of operations, we'll be back to between 1-1.5 times debt to EBITDA, which will be always our comfort zone. So with this, I will leave the Q&A, and we'll like to talk about the opportunities of this acquisition and how the business will grow and how the revenue will look forward in the next year. Because this, we don't give any revenue guidance, but I would like to say that it will be upward of INR 7,000 crore on the consolidated level in the next financial year, just to give because of the game change which has happened in the last few months. Thank you very much for this patiently hearing, and I will like to listen to the Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. We request all participants to ask a maximum of two questions at a time to allow all other participants to ask questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah. Thank you so much, sir, for the opportunity and happy festivals to the management. Sorry, I'm not able to hear you. Yeah. Sir, is it better, sir, now? Yes. Yeah. So happy festivals to the management, sir. And, firstly, sir, on the Sunbeam, can you guide more? How do you see the revenue and the margin trajectory over a medium-term perspective? What are the plans to turn around this unit, sir? Okay. The revenue, I think maybe it's not a public domain, maybe, but it may be available somewhere, but I think the revenue is around INR 1,200 crore, I would say, the top line. The EBITDA has been negative for almost three, four years, I would say, overall, in general. Now, there is three things which are changing now. One is the labor settlement. The settlement is around INR 160 crore, will be done by March totally. It is already agreed on, and the unions have signed up, and the first tranche of people are a small group has left. Another group is leaving by November, and the bulk will leave end of March. We'll continue to have the impact of higher salary and double operating expenditure of trying to shift the Gurgaon plant until March. I would rather only look at marginal EBITDA for Q4. Going forward, Q3, I don't expect any EBITDA because of the holidays and the full workforce being there. I think we'll be at least trying to stem that, whether it is minor positive or minor negative, it'll be nothing significant in Q3, but Q4 will be slightly positive on the EBITDA. Next year, overall, I think the revenue stream will be more or less the same, I would say, or a slight increase may be there from the 1,200 crore. We are targeting internally at high single digit EBITDA or at least a low double digit EBITDA, because still it'll be work in progress of shifting the Gurgaon plant to release the land and to sell the land. That selling of the land also will, I mean, moving the operations out, we'll be able to reduce the plant overheads, because we'll be reducing the number of plants, and we are shifting the Gurgaon plant to Bhiwadi, where Craftsman has already got land. It will be a small shifting only. I think that sense is that the Tapukara plant of Sunbeam is hardly a few minutes away, just a couple, less than three, four kilometers away, I think. That is it. So it will bring a lot of operational synergy between the two plants of Sunbeam. And the Craftsman plant in Bhiwadi is producing alloy wheel, which is complementary to the Sunbeam activity. So with this, I would say that the export potential for Sunbeam is quite high, and the new orders or RFQs have not been coming for a long time because of the finance situation. Now, with this, new management and the infusion of capital and the profitability picture, what we are trying to project, I think the customers will come back because of the track record of the capability of Sunbeam over a long period of time. And this will result in a significant growth in export business in the years to come. If you look at the profile of Sunbeam and the profile of Craftsman and the profile of DR Axion and the customer base, I will give the overall picture. Craftsman is predominantly only in the south and aluminum business, except for the Bhiwadi alloy wheel plant. The customers of Craftsman and Sunbeam are not at all overlapping. There's actually practically no overlap. That means we have acquired new customers with the Sunbeam, domestically as well as export. Okay. The second point is that DR Axion is predominantly in low pressure and gravity die casting, and Craftsman is predominantly in high pressure die casting and mostly in higher tonnage area. Whereas, Sunbeam is operating at a lower tonnage on high pressure die casting and to certain extent also on the gravity and low pressure. So this brings a lot of synergy of operations between the three aluminum divisions. So how to move it closer to each other on the technological front and try to extract the best out of each other is the work in progress, which will happen in one financial year. We have set up strong functional teams across all the three plants, and we are very confident about turning around Sunbeam, with the lot of help is also coming up from the customer side. They're encouraging us and with more inquiries and things like that. Yes, sir, I hope I have answered your question totally. Yes, sir. This was very comprehensive, sir. Just further on this, is it possible to share what kind of saving we would get from the employee cost reduction? And just little more on the exports opportunity for the Sunbeam, sir. I will give you only the top line number, the, it is, very close to around, how much is the INR 270, 280 crores? 280. You can understand on a INR 1,200 crore turnover of, an aluminum business, where aluminum is predominantly, I mean, it is contributing to 60% of the revenue, or, almost close to 60%, I would say. When you have a INR 280 crore, employee cost, and, similarly, when you look at DR Axion and compare Craftsman's aluminum segment, it is, much, much higher. It is, two things which are there. One thing is, of course, the, duplication of, people, which is there in across all the plants, because the Gurgaon plant was not shifted. In total, we are still carrying the people, it to be settled, number one. Number two is the footprint of five plants, which normally we would like to have, three plants, and three plants, in, three geographies. One geography in NCR region, which I said, Tapukara and Bhiwadi and Bawal, we, we'll say one region, and, one in Alwar and one in Ludhiana. So this will give better synergy in the operational cost management, may be different, but I would say the, developmental, team can, be leveraged between the two plants overall. Well, I, I will give you one example of how we leveraged the DR Axion knowledge, to also to get into the alloy wheel business. And we are the one of the few companies without, JV partner at Craftsman. We have done our technological partner. We have started the alloy wheel business, and we are able to. We decided in January, we applied for land in January, we got the land in February, and we started commercial production in August end. And today the plant is functioning, and in the Q4 this year itself, we will be generating revenue from the Bhiwadi plant of ₹100 crore. This has been also because of the lot of support from our Korean expatriates, who got long experience and in the gravity area. And similarly, the expertise, we'll be leveraging the DR Axion's expertise for Sunbeam also to improve the operations in low pressure and gravity. High pressure by itself, Sunbeam is quite reasonably strong on lower tonnage machines, but the tool room support will be required from Craftsman. We have got a much larger tool room and a larger developmental team for making dies and things like that. So with that, I think there will be more synergy. And the one thing is we can take up the entire bouquet of requests from the customer, whether it is the large tonnage, high pressure die casting or low tonnage, high pressure die casting. And what we are first thinking is to commonize the business development strategy. That will be very important to tap the new opportunities across the globe. In Europe, the aluminum manufacturing footprint is going down, and in U.S. also it is going down, and this is moving to other countries, including Mexico, and possibly we have got a good opportunity with this scale of business. I have always been saying that our aluminum competition outside the world are between $1.5 billion to $6-7 billion in revenue. At least we are looking towards INR 4,000 crore, which is $500 million next year, approximately. So still we are not up to the multinational scales, but at least we are offering that we are capable of growing to that level, and this is interesting many customers today. I think that is a synergy what we are bringing about. Got it, sir. This is very helpful, sir. Just lastly on the heavy industrial business and the wind sector and the pumps business, sir. Any new order wins or RFPs for this segment, sir? And just one more thing, what would be the order book for this segment as of now, sir? The Kothavadi facility at stage one, and the complementary machine shop at stage one, the machine shop at unit three at Craftsman, was put up for a general engineering market requirement, and mostly oriented towards or focused towards wind sector and some precision tool parts, I would say. That is already under trial production as of today. This means that the foundry phase two will be more focused on the, while we can do the engine blocks in phase one, we already got a couple of big breakthroughs and orders from two customers, and third and fourth are on the way now. The phase two of the Kothavadi foundry will be oriented towards the cylinder block unit for the stationary engines, for the backup power generators, which the demand is huge. This is the strategy going forward for the industrial engine division. The second part of your question, sorry, I missed it out. Can you please repeat? If possible, to share the order book as of now, sir, for this new segment, sir. New segment, the order book for next financial year will be around for the general castings, the mission tool castings, the cylinder castings, and we have other one or two small subsegments also. I think that order book is more than under close as of now. The developments are going on. Now, the second portion of the engine business, that order book is more than INR 100 crore as of now itself, but at the only point here is the developmental cycle is huge. That is the reason we are also soft starting this foundry business with quick wins from the industrial engineering product side, and while we wait for the development of the engine side, because engine development, each product development will cost, which the customer has to bear, is in millions of dollars. Their validation also is in the millions of dollars, and the time taken for development of the part and the validation takes anywhere between 18 to 24 months, so we will see the revenue flowing from FY 2027 onwards. These are very, very sticky customers, and one very good point is in the top 10 engine manufacturers who are contributing to the higher powered engines for power generation sets all over the world. Seven of them are either directly now with the customer and Craftsman or already a customer with Fronberg. I think this is a very key point, and the Kothavadi Foundry will always already started to get support from the Fronberg facility for development. Some inquiries have come for Craftsman because we have acquired Fronberg, and some inquiries have come for Fronberg because Craftsman has acquired Fronberg. That is, the Fronberg will be able to develop the parts fast, and the second, incremental volume of the same parts production will be done in India for the customer. The customer is also happy that there will be two sites for the production of these parts, going forward, which will also de-risk them. Plus, the requirements are booming there, and time to market is extremely important. All of them are sitting on order books for next two, three years. The order books are full. I think it's already in the public domain, that all these engine manufacturers are expanding their own manufacturing facility. Thank you so much. I'll come back to you, sir. Thank you. The next question is from the line of Mukesh Saraf from Avendus Spark. Please go ahead. Yes, sir, good evening, and thank you for the opportunity. So it's on the similar lines. Just if you could, I mean, you've given us a lot of information, but just trying to understand, for the Kothavadi facility and the Bhiwadi facility, what's the kind of CapEx we are doing in the phase one, sir? What have we done so far and anything that's pending for phase one? Phase one, some equipment, the key, one key equipment has to come, that is the from German equipment for the core shooter. I think that the Kothavadi, then okay, Kothavadi number is currently around the CapEx is already incurred for first half. Mm-hmm. It's around INR 80 crore. Okay, and we have some more that we'll do, sir, Kothavadi for phase one? CapEx for, no, last year we incurred some CapEx, last year. This year, CapEx is INR 80 crore. Last year we also incurred CapEx for Kothavadi. We started the project on October second, so I'll give you the total CapEx in a minute. Yeah. Yeah, just the total numbers. At Bhiwadi, I think we have completed around INR 150 crore CapEx as of now. INR 150 crores. Okay. That is without land. The land is, significant portion. It's 25 acres, so that will house, I think, that is one of the reasons also we are looking at, the Gurgaon facility shifting there. The land is a long lease item. I think that is around INR 130 crores. Okay, okay. So, Bhiwadi phase one, at, say, full utilization, what kind of revenues we can reach, maybe in a couple of years or so, maybe two, three years, at full utilization phase one? The revenue will have two parts to it. One is the casting part, and one is the machining part of that. Both put together, the top line will be around, see, we can produce around 30,000 tons. I think between INR 500-600 crore, the revenue will be there on the top line at, I would say at 70-80% utilization. With tweaking, I think we can go up to INR 600-700 crores. Because now, one important point is we are going to get castings from rest of the world, coming from South America, coming from Europe, for machining for Craftsman. Just because we put up the facility, the casting validation takes too much time, so we are starting with machining with these customers. The orders are coming for machining now, only for the simple reason is we have put up the Kothavadi facility, and we applied for approval, so they're confident that we will be able to make the castings from 2027, 2028 onwards. So I think we are- Mm. The revenue from the machining will come from 2026 onwards itself, totally. But the machining on revenue, absolute turnover-wise, may be lesser, but it will be value addition in that sense. Right. So this is for Kothavadi, is what you are mentioning. Kothavadi, INR 126 crore, because we had most of the land earlier. So far the investment has been INR 126 crore, and around INR 70-80 crore to go before we complete this phase one. Right. So the INR 500-600 crore revenue you said before, that's for the Bhiwadi plant, which are at 70%, 70-80%. No, I talked about Kothavadi only. Bhiwadi plant, it's very clear it is four million alloy wheel for two-wheeler. Right, and what kind of revenues are they can be? There's a seasonal demand there, and I have to be very careful when I comment that. Sure. Theoretical capacity of that plant will be around INR 400 crore. In all practicality, will be around between INR 300-INR 350, because of some months demand not being there. Right. Okay, understood. Understood. And right now, we have an order book of INR 100 crore at the Kothavadi. That is for the general engineering part. General, general engineering. For the engine blocks and other things are much higher. Sure, sure, sure. Understood. That's not going to see light of the day in 2026, so it will see only in 2027. On the revenue, it will contribute significant portion only in 2027. 2026 will be marginal revenue. That's why I didn't want to talk about that. Sure. Sure, sure. And just a second question is, when I look at your, the standalone business, when I look at your industrial and engineering business, the margins there have dropped significantly. I would assume a lot of it has to do with the storage solutions. But if you could kind of give us some update there, you know, the margins there are, it will now come down to negligible. There are, I think, three or four parameters. I think, from Q3 onwards, we'll see the margins looking up in the industrial engine sector. The, I mean, undercutting or the entry costs, everything is over. We have established ourselves very well in the storage racking business, so there's no more undercutting in the market in that sense for the new orders which we have taken in the past few months. So it will start yielding result by end of Q3 and full for Q4. That's for the stationary engine. Now, we opened the order book for the automated solutions at INR 80 crore level in April, because these are long gestation projects, and we had around INR 40 crore executed. This is the ASRS without the VLMs. VLMs are the V-Store. Now, we currently stand with the order book on the automated solution system for around INR 250 crore, and this is, it will have significant margins going forward. In the coming years, we'll see that the blend of the products will be more on the automated solutions or the vertical lift modules, which will contribute to the bulk of the revenue. Whereas this racking business will be supporting the automated storage solutions. We'll be a more highly engineered solution provider. We are already implementing for one of the largest corporates in India, in a plant in Tirunelveli, which is a INR 50 crore automated solution, storage solutions. It's under implementation, and we have secured for another, a steel major, a very large order of INR 50 crores for automated. Automated storage. Automated warehouse. So this is only the beginning, and we have broken through now. I think, the revenues and the profitability will be improving quarter on quarter, starting from Q3 itself. Right. Right. Understand, sir. Thank you so much. I'll get back in with you. I want to add on the industrial engineering portion. Industrial engineering portion has been a backbone to support both the powertrain as well as the aluminum division with special purpose machines, tools, dies, and all the other engineering work we do. And now that the engineering division, this also is helping our other divisions to grow on the non-storage engineering capabilities and the industrial engineering side. Right, sir. Right. Right. Thank you, sir. Thank you. The next question comes from the line of Jinesh Gandhi from Ambit Capital. Please go ahead. Hi, Ravi. Just clarification, you mentioned that order book for automated storage is INR 250 crores? Yes, correct. Of which 40 crore has been executed in first half? No, this is the INR 40 crore as of now. What I'm saying is, these are long gestation projects because the customer builds the building after the order is placed, because it is all high-rise buildings. These are built to the requirements, and we are also giving engineered solution. So once the order pipeline crosses the INR 300-400 crore, our revenue stream will be more focused towards, on quarter-on-quarter, the automated solutions. Because- Mm-hmm. The order to delivery takes around anywhere between 10 months- 15 months, depending on the customer site requirements. That is what I'm saying. Right. And what would be revenues of storage solution in Q2? H1, it is around INR 262 crore. 262. In this storage will be about 10%. Automated would be about 10-15%. Automated would have been only around 25- 25%, right? On the total. 32, 33. 33%, sorry, one third. One third, so- One third. Okay. Yeah. Got it. But there's been more of this, the orders have been taken more than a year back at entry prices. I mean, we are trying to prove ourselves in the market, so we had to be very, very cost competitive to convince the customer to place the order with us. So that has done reduction now, but all the new orders are coming at a fair value now. Fair point, fair point. On Sunbeam acquisitions, so this will be consolidated from third quarter itself, from October onwards or, will take longer time? October first week is not there. I think it is on ninth October. October is the date which we have started. Okay. It will be consolidated from that date, but anyway, Q3 will be a transition phase because no- Sure. Nobody produces much in December, but I think Q4, we'll get more than the pro rata INR 1,000 crore revenue. Analyst revenue is what we are looking at. Right. Right. And now since you've acquired the company and not the asset, will you be having a substantial carry forward losses, which will benefit our overall tax rate? How to think about that? See, there is some business losses, which is about INR 300 crore, and there are some unabsorbed depreciation, which is in the region of maybe INR 350-400 crore, something like this. I do not know the exact number. I think more than 400 crore, yeah, more than 400 crore, 440 crore. This 440 crore can be carried forward for a long time, but 380 has to be more or less if it can be only for this year, totally. So unless we have some other plan, we'll not be able to get the first portion of it. But we are also thinking about what are the strategy we can try to in the various aluminum business, what we have, what we can do on this. But anyway, there will be a tax saving of INR 100 crore on the unabsorbed depreciation going forward. Got it. Got it. And lastly, what will be the CapEx for FY 2025? Given that we've already invested roughly INR 467 crore in first half, what will be the full year CapEx guide? We are expecting to close at around INR 850 crore overall CapEx for Craftsman. Craftsman, right. Got it. Got it. Great. Thanks, and all the best. The CapEx will be very muted for next year. On this matter, I think I want to also bring it, Mr. Jinesh Gandhi. I want to add one particular point here is that we see that even today, we have the news that FDI is opening for multinationals. See, today we have companies who are willing to invest for capacity today, for revenue three years later. We'll have multinationals coming in, especially our Asian neighbor, which before even this summit, I think two or three prospects and projects have been cleared for FDI. I think there is, we should be open for multinational competition. So as Craftsman, we are now always thinking about multinational competition coming into India, whether how we can do better and we how we can grow our business. I think scale is extremely important going forward. Coming to a factor that India is going to go into a manufacturing GDP country as a whole and having the fact we don't have capacity, we'll order for the equipment, it comes in two years or three years' time, it doesn't gel well with any customer, multinational customer, because they have experienced different things with China. Got it. Got it. Great. Thanks, and all the best. I'll call back again. Thank you. The next question is from the line of Jay Shah from JS Family Office. Please go ahead. Hi, can you hear me? You are audible, sir. Please go ahead. Hi, congratulations to the management on moving forward with the acquisition. Sir, just one question what I wanted to ask you, actually, quite hinted it, in the previous answer, is that, you know, in some of the interactions with, peer companies in the casting and forging sectors, it is, you know, it comes to seem that India today doesn't have the capability, and that is why, or the capacity for, rightly speaking, and that is why some of these large engine sets guys are not coming to the country. So is it like, a chicken and an egg problem that, you know, the companies are waiting for someone like a Craftsman to put things up and then come, rather than, like you just said, that if you don't have the machinery right now, you know, people are not going to place orders? And apart from engines also, do you see that, you know, today, the way Craftsman is progressing, that can open up doors for other industries as well, for us to, you know, back clients in those sectors as well? We have a good examples, which are very, very positive examples, legacy-wise. We have at least the top two, three companies in India, top two at least, and maybe the third also, in the forging industry who are quite significant in the global market, especially the top two. The top one is far, far ahead, and they are attracting their Industrial Engineering business, they are already serving the forgings for the stationary engines across the world. So that is what is keeping them on a stable level. Overall, I cannot speak for any forging industry, but I would say that the vision was there to go ahead and put capacities ahead. But I would say the opposite has happened in the foundry business, where nobody put up the capacities which could be able to attract the attention of the for engine block casting for export, and that went away to China overall. So we put up a scale for machining of the blocks and heads. Even today, we don't have capability to make. We have capability, but we don't have the capacity or the infrastructure. We never set up a foundry because we are intent on machining. Machining-wise, we have the scale, but the foundries missed the export business on the block and head. But we have seen on the other carrier parts, we have partnered with the foundry. They were able to capture the market in North America now, after almost eight, ten years of working. I think scale is important, and also the orientation towards export and export quality is extremely important. Aluminum, if you look at our exports when compared to China, it will be hardly single-digit% when compared to the export of China. The entire aluminum industry, tier one industries, I mean, sorry, suppliers like Craftsman or Sunbeam, if you total it up, in the country, it will be less than 10% of the capacity in China for similar suppliers. This is a basic problem that they don't see the infrastructure, and then without the scale, we cannot invest for R&D, we cannot invest for development, we cannot have technological experimentation, which we need to do to improve our process and things like that. This is one reason. For example, alloy wheel, which we have put our plant in Bhiwadi, was getting imported from mostly from China in a big way until the requirement for BS and other things have come up within India. But we also have to note a point. We have Asian companies. I don't want to put names of the countries now, but they have also have set up plants in India that's supporting. They're supplying to the OEMs. This means, they have left their shores, and, they have come to our shores, and they have done well. But I think the opportunity is there that if we put up scale, we have, more, especially for North America, where there are no people to work there, and, they want to also de-risk, their, from China, so as a strategy itself. This means that, and they're looking at India as a fast-growing market. The growth in China is slowing, and, the capacities are enough already. This means for any product to be sold in India, or in the other Asian countries, they are now preparing to develop the products in India. But they're delaying their entire decision of investment of plant here or export out of here because of the lack of supplier capacities and capabilities. This is the real truth. Okay. Okay, thank you so much, sir, for your comprehensive answers. That's it from my side. All the best, sir. Thank you. Thank you. The next question is from the line of Joseph George from IIFL. Please go ahead. Hi. Thank you. Two questions. One is, the CapEx guidance of INR 850 crores that you gave, is that including all the new subsidiaries, or is it just on the standalone basis? The subsidiaries CapEx doesn't come into this number. If you look at the Bhiwadi, the land and the building, which is there, the foundry building, the machining shop, to complement the Kothavadi facility for the engineering parts as well as engine block. And the aluminum CapEx we have done in standalone Craftsman, all the and plus the maintenance CapEx. Maintenance CapEx itself is to the tune of around INR 200 crore. All that put together, because we've gone for two greenfield facilities. Sorry, sorry, I didn't get the answer. So, are you saying that this eight fifty includes what you are spending in standalone, including the new plants, of course, and, say, what is required in Sunbeam or- Sunbeam doesn't. It is a separate company. DR Axion is a separate company. Fronberg is a separate company. Okay. Those CapEx will not come into Craftsman. This 850. That 850, so this 850 doesn't include DR Axion and Sunbeam, right? No, no, no, no. We don't talk about the group CapEx now. Okay. Group CapEx will be about that, I think. No. Okay. And so the second question that I had is, in the context of the INR 250 crores of order book for automated storage solutions, you mentioned that it's not something that will be, you know, converted into revenues immediately, it is long gestation orders. What I wanted to check is, do you have price escalation clauses built in? Because in the past, it's happened that, you know, we've bid at a particular price, and then steel prices have gone up, and then margins have been impacted. So, do these long gestation contracts have price escalation clauses? See, we have two things. One is on the static tracking, which is all, quick order wins and quick deliveries, and will be consumed within a quarter or so. The long gestation periods on the automated storage solutions, the material content is very low, overall. That I have to... And the, there are bought outs. Bought outs price are fixed immediately, electrical, electronics, mechanical and things like that. And a lot of activity happens inside for the value addition. So the raw material content itself is very low. Raw material, which said- Commodity raw material content is low. So as a result, even if there is no price escalation, it won't make too much of a difference to you. That's right. Yes, we factor in something, but I think it will not make a significant difference. Yes. It will not. Yes. Thank you. Understood. Thank you. One thing is that we will need an INR 500 crore order book to have a consistent revenue, because of the long lead time item. This is something like a long pipeline. Once we fill it up, I think the consistency in the quarterly revenue on the automated storage solutions will improve. Understood. Thank you. That's all I have. Thank you. The next question is from the line of Khush Nahar from Electrum Portfolio Managers. Please go ahead. Hi, sir. Thank you for the opportunity. So my first question was, can you guide us on FY 2025 growth? How are we looking at FY 2025? FY 2025 will be in a similar line of H1 growth, that's all. I think, we are not looking, I'm talking about standalone, but on a consolidated basis, it will be significant because we'll have almost two quarters of Consolidation, right. Consolidation of these two subsidiaries, plus the Bhiwadi plant operation in Q4 will bring significant revenue. And so just one question on the EBITDA margins. So like you said, you know, you're targeting around INR 7,000 crore in FY 2026 as revenues, so that would mean what EBITDA? See, the EBITDA will be now in transition. Sunbeam EBITDA will be in transition. It will not be a quick turnaround. It'll take one more year, I would say. So that will bring down the overall EBITDA levels. And I think Craftsman will be able to sustain very high teens in the range of 18, 19, is what we look at. The EBITDA of our overseas subsidiary, the revenue is small. I don't want to comment too much on that because the revenue itself is around 250 crore. Then we'll be a single digit EBITDA, whether it's low single digit or high single digit, we have to see the operations going forward there totally, but it's EBITDA positive. That is clear. And then Sunbeam-wise, we are looking at between around 8%-10% EBITDA. That is what we are targeting internally, overall. So we look at a blended average, more or less, we will be around 17-18%, as the overall company goes. Okay, sir. Thank you. Thank you. The next question is from the line of Yash from Duro Capital. Please go ahead. Hi, good evening. Thank you for the opportunity. I just had a bookkeeping question. Can you just, please tell us the value added across the segments for H1 as well as this quarter? There is a little, and I would say that I don't mind giving it, really speaking, but I've seen that none of our peers give it, and that has been adverse to us on this matter, like, okay, this is the revenue, and this is the value add, and this is the raw material content, and how is it happening? And this is becoming more sensitive in the aluminum segment. So now we don't want to give, get into those numbers. There is a cost, which is there overall. I think that's better you know the aluminum content and things like that. You know the aluminum revenue, and aluminum across the segment will be having more or less the same cost. It is not beneficial as a strategy to give these details. I think so, now going forward. So, can you just tell us in a direction-wise how it's gone, if you cannot give us the exact numbers? On the powertrain, I think the product mix is more towards wet material because of the other, wherever we're buying engine blocks and doing. So that is done. We are also doing job work there, so we cannot really quantify that. In general, the value addition as a percentage has been in the powertrain has been in the range of around 60%, I would say. And it is, the aluminum also it is very close to around 40% because we are doing value-added products in the machining side, casting and machining, totally. And the industrial side, it's been lower because of the legacy orders from the storage solution business, which is less than 30%, I would say. Thank you. Thank you. That's all from my side. Thank you. Thank you. The next question comes from the line of Neel from ValueQuest. Please go ahead. Yeah. So, firstly, my question is around QIP that we did, about twelve hundred crores that we have raised. If I were to net off the sale of the land in Kothavadi, about seven to seven fifty odd crores we have already spent, and this about four hundred odd crores will still be left with. So, the question is, what are we planning to do with this amount in terms of looking at the M&A or debt reduction for that is something not one of the possibility or maybe- Sorry, I think it's not clear, please. The voice is fairly very feeble. If you don't mind, you can Yeah. Just, you can use the- Is it better now? Yeah, better now. Yes. Yeah, sorry. So my question was around the QIP that we did, so about twelve hundred odd crores that we have raised. If I were to net off the sale of the land from Kothavadi, about seven to eight hundred crores would be spent, and we'll be left with about four hundred odd crores. So, what are the plans around that? If we are planning to do M&A or, maybe spend to- No, no, we are not looking at any M&A because we have done our strategy very, very clearly. On aluminum, we didn't have a footprint in the north, now we have a footprint in the north. We have got, customers, like, Maruti, Vitesco, Bosch, we have, Wipro Infrastructure. I think a lot of exports are also happening to North America, and we are trying to grow that, and, if not for the Sunbeam, I think our footprint would have not, got into the North Indian region, India region, I would say. This is one thing. Second thing is, if not for Fronberg, I think, we would have missed the bus on the, large engine segment, which China is at least fifteen years ahead of us, as of today, totally. They started this foundry, investing for the foundry fifteen years ago. Today, they are the major supplier in the world. In fact, there was a comment saying that for the large engine production, the capacity of the Chinese foundries can serve the entire world, totally, and there's all the other foundries in Europe and U.S. can be redundant. So much capacity is there, and capability is also there because they have done major investments in technology upgradation from learning from customers and things like that, so we trying to do catch up. I think the Fronberg facility was important, and putting up the Kothavadi facility was important. For Kothavadi facility to make the castings in a proper way quickly, which will give confidence to customers, is what's important. There was some acquisition cost, which was there. I think the second thing is the other bidder for us was why the price went up from the initial, say, $5 million to $10 million. The simple reason is that the customer wanted to buy the foundry, so desperate they were. So we were bidded against the customer and the key, one of the key customers for Fronberg. Now, coming to DR Axion, we have completed the 100% acquisition. That is also done overall. And the aluminum portfolio by itself is complete. We don't need any acquisitions at all. Organically, we can first saturate the plants, bring the synergies, then grow in capacities. Even on the powertrain, having done this Fronberg deal and the Kothavadi facility, we don't need any acquisitions in the powertrain business. In the industrial engineering business, unless something comes up in a different way in the coming years, it may be small acquisitions, maybe in the region of INR 100 crore or INR 50 crore, which will bring some strategy, but no large acquisitions are planned, at all. Well, not planned means we are not going to do that, any large acquisitions in the next two years. Right. Got that. So the rest of the QIP money will mainly be allocated towards the CapEx plan that we have for the next two years, right? Yes. That is the history. In the history, we say that we raised INR 150 crore from private equity in 2010, 2012 put together, INR 150 crore in the IPO. Only INR 300 crore equity was raised apart from the original equity of the promoters, which was way back in 1986. Then apart from this, the INR 1,200 crore is one step up opportunity for making the company more safer and sustainable on the growth path, for the next decade, I would say. Got that. Got that. So next two years, what kind of debt level you will be comfortable at? See, we will be standalone debt. I think we are targeting around INR 1,600 crore for this year, and after the land sale happens, that will come down to INR 1,200. And in FY 2027, if you look at it, with the normal CapEx and normal maintenance CapEx, I think debt level will be to the tune of the EBITDA level of Craftsman standalone, I would say. Around that level, 1-1.3. That's what we look at it. Even at group level, I think 1.3-1.4 times EBITDA level will be the debt, and after that, it may come down to less than... We want to keep it between 1 and 1.5. We do something extraordinary, it can go to 1.5. This is something one-time, situation where we did a step change, but that is not going to be repeated. All right. Got that. Got that. And, last question is on, DR Axion. So this quarter, sales were kind of weak, for us in that particular subsidiary. Now, going forward, the expectation in the market is that over the next 6 to 12 months, EV sales are going to remain weak, especially for a player like Hyundai, who is not really gaining market share. ... So, are we expecting any kind of growth to happen in DR Axion entity, in standalone particularly this year? I, we feel that, some whatever export we have started in a small way, it will be for the full year next year, so that will help us to grow next year. This year, more or less, it will be flat, I would say. Okay. Got that. Thank you. Thank you and all the best. Thank you. We have a follow-up question from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah, thank you for the call, sir. Is there any impact of higher aluminum prices this quarter, sir, on the revenues and margins, sir? Is that, has the past two years happened, or has been any lag also there in the past two? Sorry, I'm not able to, we are not able to hear properly. Sir, can you hear me better, sir? Yes, now. Yes. Yeah. So I want to understand, sir, how is the impact of the aluminum prices, sir, for this quarter, on the revenue margins, sir? No, nothing. I think, overall, nothing. I think we have been ramping up capacity. When there's ramping up of capacity, normally there will be some expenses. For example, we, even for the Craftsman as a whole, we incurred all the other extraordinary expenditure for all the three acquisitions, that is DR, Sunbeam, and our subsidiary in Fronberg, and that is the tune of more than, I think around 10 odd crore, which has hit us in the first half. We have spent without capitalization for the expenses running on generator at Kothavadi and Bhiwadi, and putting people for trial production. Another 20 crore we have spent for the pre-operative expenditure, which has also gone as the expenses in the first half. These 30 crores has also, on a standalone, has impacted our EBITDA level, and with the higher depreciation, it is showing the EBIT level optically lower. This is a big problem which we have. I think I hope I have answered your question. Yeah. No, basically, I was specific on the because changing aluminum prices, raw material prices, is there any impact on this quarter margins, sir? Because there's a lag in the past too, sir. No, I don't think so. I think aluminum-wise, we are more or less same. As I mentioned that aluminum, when we are expanding sometimes, for example, there are some Kothavadi, sorry, Bhiwadi expenditure might have happened, I would say. That might have impacted some margins, I would say, not any aluminum prices. Okay. And sir, lastly, the standalone aluminum margins have come down this quarter to 11.8% versus 13.2% last quarter. Any reasons for the fall in this margins? See, we have to look at the, we add back the depreciation and look at the EBITDA level, more or less we are same there. I would say that sometimes... No, I think the EBITDA level is marginally lower, right, totally. It's around 15%, yes. That can be, well, the product mix, that can be little on the top line increasing because aluminum price. There is some Bhiwadi expenses which has happened, which has been not capitalized. So Bhiwadi expenditure is quite significant, I would say, because of the operations. So I would say that, 0.5%-1% margin coming down may be due to organic reasons, and the extraordinary things are 1-1.5% would have been with the Bhiwadi expenses. Okay, sir. Thank you so much for this. Thank you. Ladies and gentlemen, we have no further questions. I would now like to hand the conference over to Mr. Srinivasan Ravi for closing comments. Over to you, sir. Thank you very much for patiently listening through the entire conversation, and we're very happy that a lot of people have participated in this Q&A, and I was happy to answer all your questions because we are looking at a lot of shareholder support when we take this journey from being a medium-scale industry to an upper medium-scale industry or where we can attract global customers with the good scale of operations in each of the segments we perform. Thank you. Thank you. On behalf of Craftsman Automation Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.