Ladies and gentlemen, thank you for your patience. The conference of Craftsman Automation Limited will begin shortly. Please stay connected and do not disconnect. Ladies and gentlemen, thank you for your patience. The conference of Craftsman Automation Limited will begin shortly. Please stay connected and do not disconnect. Thank you. Ladies and gentlemen, good day, and welcome to the earnings conference call hosted by 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 opening remarks are concluded. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Srinivasan Ravi, Chairman and Managing Director of Craftsman Automation Limited. Thank you, and over to you, Mr. Ravi. Thank you. Good afternoon, everybody. Thanks for joining the earnings call. The presentation has been updated in the exchanges, so I hope you had time to go through that. We are ready for the Q&A. Please, what is the queue? I think we can start the Q&A. Thank you. Ladies and gentlemen, 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 remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, you may note that some of the statements which may be made by the management team during this earnings conference call may contain certain forward-looking information, which are not guarantees of future performance and are subject to a number of risks and uncertainties. We encourage you to refer to the disclaimer in the investor presentation of the company. Further, the management will not be addressing any customer specific queries owing to confidential obligations. We kindly request that you avoid mentioning any customer names in your questions. Ladies and gentlemen, we further request all participants to ask maximum of two questions at a time to allow the other participants to ask their questions. We take the first question from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah, thank you, sir, for the opportunity. So on the aluminum side, aluminum standalone margins this quarter, there's a dip sequentially Q on Q. I just want to understand, what could be the reasons for the decline? Is it some aluminum higher cost impact? And also, sir, how do you see the aluminum standalone margins over a period of time? For the annual basis, I think the aluminum will be moderating at higher level. Q3, I think, there's a startup of a new plant in Shoolagiri. We have incurred operational losses in the first quarter to prove out all the parts totally. So as a consolidated, I mean, as a standalone, that has affected the standalone because it's quite also a significant plant. So we have started production now, and I think production will ramp up by Q2 to a reasonable level. I think it will be improving from Q4 onwards continuously. So I don't see any big change in the aluminum business margins going forward. Optically, yes, the commodity prices have been quite violent in the upward surge, and it is quite significant in aluminum, and it has continued to remain that way. So our margin will be on the gross margin of value addition, I would say. So optically, our margin may come down, but it will be quite intact as far as the margin is concerned. The second point will be that for the secondary aluminum, there is some volatility on the imports because of the sudden surge of the dollar or the rupee depreciation, I would say. All this has played out, but we have a pass-through with the customer. Some are immediate, some are taking a month or two, so there isn't an effect in the long term. But in the short term, yes, there has been minor corrections there. Yes. Thank you. ... Got it, sir. Sorry. So on the, another side, how we are seeing the utilization levels for the 5.8 million capacity? And also want to check, have the margins, moved to a normal range of, something like high single digit margin or still the, still ramping up in terms of margins? So we have not even touched 50% of the installed capacity, I would say, because of the high variety of parts which are under is all subject to BS approval also, and the model developments and also customer validation. So the second thing is, because of the steep ramp up and also additional new plant, we are not in the double-digit margin yet, or even high single-digit. We are lower than that. But when our client becomes optimal, I think by Q3 we should be reaching that level. Q3 of next year, I mean. Sir, next year, Q3, we should also get a good 60%, 70%+ utilization levels for the plant, right, sir? Yes, correct. Got it, sir. So on the- Mumuksh, I am sorry to interrupt you. Could you please join back the queue for follow-up questions? Thank you. Thank you. We take the next question from the line of Mukesh Saraf from Avendus Spark. Please go ahead. Yes, sir, good evening, and thank you for the opportunity. Firstly, on the Powertrain segment, could you kind of give us some sense on the fact that commercial vehicle segments are looking better now? The outlook seems positive and so does tractors. So how do we see this segment fare for us? We've seen numbers around this INR 454, now quarterly number. How can this kind of ramp up for that? In the last mostly couple of years, commercial vehicle was quite muted, and even tractor was muted. Now, tractor is doing very well in this financial year, and commercial vehicle is showing some signs, green shoots of some marginal growth. The more interesting portion will come in the coming years when commercial vehicle moves to the higher engine capacities and gearbox capacities, which we expect. The norm globally is of heavy duty, means higher horsepower, 400+ horsepower, plus also on- Right. 2,800 Newton meter. But we are seeing a little of seeding in the market by some of the OEMs in India, and the results have been quite positive for the... They're only battling with the delta cost, whether the productivity and fuel efficiency are offsetting the initial investment. So this will move, just like any other product, most of the for the higher capability, which is more attractive for the fleet owners. This will happen. That will be the more interesting. So absolute numbers growing, will be growing at single digit, yes. At the same time, the growth in tonnage also will be a single digit. But I think the- Right. - ability to turn around the fleet and the per vehicle cost, I think, is set to go up as we move forward. Right. Right. So, we should, we should kind of hence see that benefit for us going through? Yes, and, the silver lining as far as Craftsman is concerned is, this means new product development, and at least we can really do the costing from scratch at the current CapEx. The CapEx is also very high, related to any infrastructure and also import of machinery because of the exchange rates. Mm. And we have the new labor code, which is coming in very soon. That also will, we need more automation. Craftsman has been preparing very well for the last three years on manpower productivity by, investment into automation and better equipment, or I would say, more productive equipment in line with, the international, level of operations. So the, international competitors. So that, in that sense, I think, new products call for also high reliability from the suppliers and high capability from the suppliers also. Right. So that will help us to product, price the product right. And the end product of the OEM, which goes to the market, the product is so highly priced because of the technologies is packed in and also the cultural nature. The it will not impact them, but I think I'm not saying there's a price reset, but I think reasonable pricing- Right. back to the legacy prices. Got it. Got it. And, secondly, if you could give some- The tractor sector? The tractor sector? The tractor sector- Yeah, yeah, of course. We are benefiting not only from the volume growth, but I think the horsepower, average horsepower is- Yes. -increased. Yeah. Right. Yeah. Understood, sir. And on Sunbeam, if you could kind of just take us through, I mean, where are we in that journey towards double-digit margins now that we've been running it now for a few quarters? So, you know, do you kind of see that, you know, it's going to happen in the next two quarters, three quarters? How do you see that? Three headlines. One is, the heavy weightlifting of Sunbeam is over. That we crossed the- Mm. most critical point of 50%, and now it is a journey which will continue to improve. So we will be seeing margins from Q2 of next year improving. At, we'll end the year for a 10% sort of EBITDA level from the current year of around 7% totally. So the exit run rate will be much higher. That is, the Q4 will be higher than the 10%, is what we see. And we have not still taken any new business, which we will be starting in the coming quarters. You know, even on the two-wheeler side, there are premium vehicles coming up. There is a shift towards outsourcing of machining activity, which the OEMs are doing in-house. And we are strategically placed in many geographic locations for the business. So, yeah, for Sunbeam, especially, we are also having a plant in Gujarat, Ludhiana, and, we can, supply to Uttarakhand, and then we plant at-- Yes, and also in the south, we are not invested for Sunbeam, but it's possible, to look at similar parts and maybe also invest in the future. But I would say that those set of family parts, Craftsman is doing, as well as Sunbeam is doing for two-wheeler. Sunbeam has also got, increased, potential for the exports going forward. While we wait for the total restructuring of, Sunbeam to happen thoroughly, we have more or less integrated the three teams on the workings side of it. We have participated in the EuroBLECH exhibition just two weeks ago in Nuremberg, where all these key aluminum exhibition for aluminum suppliers and all three teams participated together. We have exhibited the products together. We see a good response. The traction of being an at least, getting to a medium-sized aluminum company in the coming two years as a group will help Sunbeam to leverage it. Okay, got it. Got it. Understood. Great, sir. Thank you so much. I'll get back with you. Thank you. We take the next question from the line of Abhishek Jain from Alf Accurate Advisors Private Limited. Please go ahead. Thanks for opportunity, and congrats for a strong set of numbers, sir. Sir, in Industrial & Engineering segment, we have seen a very sharp jump in EBIT margin. So just wanted to understand, is it sustainable, and are we looking some improvement on the business and on the top line and the margin, both sides, sir? Yes, it is sustainable, and the operating leverage, which we are now started to generate, we will see margin expansion in the next financial year. And the demand for these products is increasing in India, and we are the second largest player in the country as far as the Static Racking, and we are one among the two largest Indian players, I would say, on the Automated Storage, and both are gaining traction. The second important point is, since the market is also growing and there's been consolidation of the supplier base, it is a very clear segregation which has happened from the top five players and the other players. They have become regional players. And also, on the top, five players, I think the number one and number two, where we are number two, and, among the other three, there is also clear gaps which is there, just like in the passenger vehicle segment. This means the larger projects execution mostly lies on three of the suppliers. So that way, I think there's no need to undercut each other on this matter, and we feel that we have made enough traction and also proved the product in the market. So we need not also go on a cost-cutting, the sales price-cutting strategy to win orders. The optimum utilization of the plant will come in the next 2-3 quarters, where we will be able to see margin expansion due to better operating leverage and also better purchasing power from the steel. Okay, sir. Got it. Sir, my next question on the operating margin side. From last two quarters, we have seen that operating margin is hovering between around 15-15.3%. So just wanted to understand what would be the margin lever in quarter four and in FY 2027. As you said, that this quarter margin also impacted because of that addition of the new plants, and that impacted to some extent, the aluminum margin. So if we take the FY 2027 number, what kind of the margin expansion we can build in our model? The model of percentage of revenue as the margin, I think, doesn't hold good for many reasons. For example, aluminum exports from China has been dropped by 8%, so aluminum prices have jumped by around 16%, from $2,800 to around $3,050, something like this. So on the highest levels in April 2022, which was the last peak. So when the top line only increases with the same value addition, not margin, but value addition, absolute value, artificially, it looks like the margin reduces. So we have to look at it in relation with the commodity prices. So I would kindly request you to look at the gross margin and the margin versus the EBITDA margins or EBIT margins versus the gross margins. That will be the right figure, because aluminum, again, further increases, artificially, it look like our margins have come down. But in the third quarter, if I see that top line number of this aluminum business, that was quarter-on-quarter flat. Despite that, we have seen around 200 basis points margin contraction. So if you can throw some light over there, that what were the six key reasons for that 200 basis points of margin contraction on EBIT level, and how these numbers will start to improve? See, the revenue, what you see on the aluminum is some of the increased aluminum prices. So you can say that, the top line has been flat. It may be reduced for us as far as our contribution goes totally, because it may be attributed the top line being flat or growing or being stable, maybe because of the increased aluminum prices. So, you cannot just come and look at the top line and look at it. I said only one time event about this, new plant at Shoolagiri for the alloy wheel, which has impacted our margins. Yes, that is will be there for a quarter or two, then it will go away, just like we had in the past about, when we started the Bhiwadi plant, if you remember. But otherwise, the top line are not strictly comparable between even Q2 and Q3, because aluminum prices are different. Thank you for that. That's all from my side. Thank you. Thank you. We take the next question from the line of Nikhil Rao from ithought PMS. Please go ahead. Yeah, thanks for the opportunity. So I have a question on the order book for stationary engines. Can you provide the split for the INR 100 million between prime power source and backup power source? So our customers do not tell us whether it's for prime power or backup power. So we have and these are fungible. At least the product what we make is fungible. We manufacture everything under one roof. So the second point is the order book, I think it is, we are inching towards an annual level of around $60 million now, and that also for FY 2029. And now the balance $30-$40 million also will get tied up in the next year or so. So we will be on track with the $100 million revenue for FY 2029, FY 2030. FY 2029, possibly, if the testing and acceleration. The demand for the products is quite high, and the customer support on the product, on the order books as well as on the product development is quite significantly high. We will be touching a peak requirement in the market by 2030. All the OEMs are geared up towards that. So we are in time for this to catch this upward curve. Okay. And, from this Fronberg acquisition, do you see any demand coming in beyond the data centers, like from other industries? And also, what kind of steady state margins are you expecting from this business? See, energy per se has been growing not significantly in the past, but this, data centers or AI has driven the energy to be suddenly spike, I would say. But even after spike is over and even at larger base, we still see energy will, demands will be keep growing and backup requirements will keep growing. So, but it will not be as high as this, what is happening. So once we are into this elite league of this supply of these critical parts, I think, there, there is many, a lot of validation required to onboard a supplier. We are through with the first phase. Second phase is on now. So we will be starting to supply in a year, a year and a half, the first invoicing will start. So that is the most important point in a milestone, so that we will continue to leverage this relationship with our customers for future products. India, per se, is also well poised for this, taking advantage of this technological growth, because there's not much of capacity in Europe nor in North America. Since KraussMaffei also owns a foundry for these large engines, KraussMaffei foundry, which is near it is in Hamburg, which is near Nuremberg. We have an insight into what our capacities are available in Europe also, totally, and what is really happening to those capacities. So the we are working hand in hand with the customer just to see we align with their future requirements on volume. Okay. And one more question: What are the current debt levels of the company for short and long term? Given that OEMs finished 2025 with, like, near optimal inventory days, has that been, like, a bullwhip effect on your working capital needs because of the recent surge in demand because of the GAC reduction? No, in the powertrain, I think there is no increased requirement of working capital per se. In aluminum, I think the delta price of the price increase will have that marginal 10% or 15% increase in the working capital requirement. So the question is net debt to... I would rather look at debt to EBITDA. Debt to EBITDA on a consolidated level, we are at 2.5 times. Okay. On a nine-month figure, which is annualized. Okay, thanks. That's all from my side. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Ajox Frederick from Sundaram Mutual Fund. Please go ahead. Hi, sir, thanks for the opportunity. Sir, in aluminum, are there products where we can benefit out of this aluminum price increase? Meaning, it is not on per tonnage basis and on more product level pricing. We never have ever quoted for per tonnage basis at all. Okay. Aluminum is a calculated material cost, and that is it, and that is anybody can calculate it, not only the customer. So it is a very clear engineered number, which nobody can dispute on the weight of the part, nor on the cost of the material. Cost of the material, of course, there can be some dispute on ± 3% on market prices. That is it. So beyond that, whatever is the gross, then value addition, what we do on the casting side and the post casting process can be painting, can be some heat treatment, and also can be the machining side. So we are an engineering company where we do a lot of machining per se, as Craftsman standalone, but Sunbeam and DR Axion are more on the casting side. Sunbeam on the exports, yes, it is a fully finished product. So we never have ever quoted for per ton basis on matter. It is always component to component. This component, this price. Okay. So, I mean, despite quoting at those levels, you're saying the spread is what we compute as value add. So always when prices increase, there will be an optical reduction in margins, so that will always happen, right? Yes, correct. See, suppose a tailor is getting INR 1,000 for stitching- Yeah, yeah. and garment is 2,000, the margin is on, say, he has got- Understood. -margin. Mm. So the material cost goes up, it is a pass-through, so it only optically increase the top line. Revenue. Yeah, got it. So, sir, secondly, on this, Euro FTA, can there be better opportunities than earlier announced charged in Kothavadi from Europe? No, I think the Kothavadi project is based on a very special product, where there's a unique, once-in-a-lifetime sort of an, requirement coming up for the OEMs or manufacturers products, which are hardly less than 10 companies all over the world. Mm. So this is driving that. They are going to lose their customer base if they don't ramp up on that matter. So everybody is in a race to create capacities. Nobody is worried about this FTA, per se. Okay. I think I mentioned in the previous earnings call, the engine or the generator, as a generator, costs anywhere between, sorry, $1 million to, say, $1.5 million per generator. Whereas our product may be around $20,000-$30,000, depending on the configuration and size of the engine, things like that. So we are not any significant game changer as far as their bill of material of the cost goes in. So it more is driven by the capability of the supplier, in this case, Craftsman, and also the reliability of quality is extremely important for the customer to take a decision. This was normally made in-house, so the trust to give the orders outside to a supplier itself is a big, big step for these OEMs. Mm. If you ask for the other, not the bottom of the pyramid, at least the middle of the pyramid products, where we are, somewhat present a little, but on the top of the pyramid products, this is not the criteria. FTA is not the criteria. Okay. But middle of the pyramid products, there is some, earlier it was, we need to be 30% cheaper than what they develop in Europe. Now, Europe costs have gone up, and now they're feeling the pinch. Now they're looking at 20%, we should be cheaper than Europe to get the order. We don't really engage on those sort of businesses. But with this FTA coming in, I think the gap will be further reduced, totally. Mm. The trust on India's supplier base has to improve because of infrastructure for shipping, logistics, reliability of quality and delivery. Once it improves, we can come at, even at, 10% leverage we have on the pricing, is we have lesser pricing than the European counterparts, we can easily win the order. Mm. Okay. But on aluminum, the other things are happening now. I'm switching over to aluminum, sorry about that. But I would say that I want to clarify, aluminum, there is a lot of distress in the aluminum supplier community, vendor base, especially in the auto ancillary, both in North America as well as in Europe. They all invested heavily for Europe, and many of them are getting insolvent or they don't have the ability to invest further. So when the swing back is happening to hybrid and ICE in a bigger way, these companies are not able to adopt at all. And the products have to be outsourced to other regions. So we are still competing with our Asian partners and other regions also. I think between, we are not really competing now with the European supplier base or the American supplier base on the products what we manufacture. Okay. Very clear, sir. Thanks. Thanks for that. Thank you. We take the next question from the line of Mumuksh Mandlesha, Instutional Equities. Please go ahead. Mumuksh, please unmute your line and proceed with your question. Yeah, sorry. Thanks for the opportunity, Naveen. So on the CapEx side, what are the CapEx for the nine months, and what is expected for the full year, sir? Can you, sir, again, indicate the debt level, what is the debt, gross and net currently, sir? I think this can be taken offline on this subject. So it'll be reading of a lot of numbers for various subsidiaries also. We have to, as I mentioned, consolidated net debt to EBITDA, you know the EBITDA levels, it is 2.55 as of now. And today, the return of capital employed is, pre-tax, around 16% totally. ROE is around 12% annualized. So we look at it now, there is a big upsurge in orders as we speak also. So we are looking at standalone CapEx for Craftsman around close to INR 1,000 crore this year, because we have added quite significant revenue. If you recall, our IPO value were, when the turnover was around, say, INR 1,300 crore-INR 1,400 crore range, and now this year alone, we added, we are adding around INR 1,000 crore to the top line, overall. And we are seeing that, this growth is going to continue in the coming quarters, also in the coming years... So we are increasing CapEx at that level. So I would not like to comment on closing date or, this, but I think, we have seen the, higher level of net to debt of EBITDA at 2.55. This will keep improving. Got it, sir. And so finally, sir, on this recently, Sunbeam have sold its aluminum piston business to Shriram Pistons. Just want to understand, I mean, what kind of business was that, sir? It was generating around INR 30 crore revenue, approximately, with 2 customers there, both the two-wheeler side in the NCR region, totally, you know, these customers. Historically, I think earlier it was a slightly higher number, but the cars have migrated and moved, and during the Sunbeam's troubled period, they've not developed the new products. So it doesn't make any materially change to have this INR 30 crore revenue with the variety of products, and we are not a key market player also, Sunbeam there. So we are simplifying the business model of Sunbeam to its core competencies overall and other strategies. In fact, not only that particular business, a number of customers also we have are on the exit mode. We have given 3 months, 6 months notice for that. These customers, I think they're numbering around 10, contribute to 5% of our revenue. So this means that we'll become more and more efficient as we move on. Now, as we speak, I think 97% or 95% of the revenue is coming from 4, 5 customer groups, I would say, in total. So we want to focus on that, stabilize that, and then add more customers, which are sizable value. Here, after adding a customer on value, I think at threshold level, I think the initial orders itself, we are looking at $10 million. We're going all the way to $30 million. Even for a smaller company like Sunbeam, because of the new costs of, I would say, labor, the infrastructure, the CapEx, I mean, the equipment cost has gone more. And the demands from the customer also are quite high because of the new requirement of quality and things like that. Also, as we speak, the increased requirements for all sort of tax and other compliances, software, all these things are also going up. So we cannot really handle retail business. This is why we are rationalizing Sunbeam's business. Got it, sir. Thank you so much for the opportunity. Thank you. We take the next question from the line of Vignesh SBK, from Ksema Wealth. Please go ahead. Hi there, I'm in order here? Yes, please. Yeah. Thank you. I just want to know, how do we see the revenues across the segments, growing in the next couple of years? Do we see, like, industrial engineering, like, ramping up? What's the view on? Yeah, Industrial & Engineering, I think, high single digit or low double digit will be there. On Powertrain also, we see the similar number. On Aluminum Products will be in the high teens. Okay, good. And, how do you see, like, from ICE to electric vehicle shift and the benefiting or the usage of aluminum products more towards the EV? Is that happening or? Can you repeat the question or rephrase it? The demand, the demand for the aluminum products, is it increasing as we slowly move to the EV side because of lightweighting and things like that? I will answer that on two different ways. We'll first I will answer it for ICE, which is applicable, and then we'll talk about hybrid ICE and then the EV. All the three segments will benefit from lightweighting very clearly, because it means lesser carbon footprint, lesser cost of the vehicle and engine size, and a better even the passenger car segment, you might have noticed slowly but surely that now 1.5 liter is becoming predominant, even though the 1.5 liter of the current passenger cars are pumping out more power than the 2 liters of the gasoline earlier. So now earlier, the 1.5 liter power was being used for 1.2 liter also. The engines have become more powerful and more smaller. So even in spite of all that, I think the engine capacity is growing in India from 1.2 to 1.5 liter. So this means that the other amenities or other features which the customers want, they will need some sort of engine power or a hybrid to supplement the activity. So all this, all the CAFE norms will drive them, drive the OEMs to have lesser emissions in total to help meet the CAFE norms. So for that, lightweighting is the best way. And yes, on EV, it'll become more predominant because the more lighter the vehicle, the same battery will give a higher range, or we can reduce the size of the battery to give the same range. That means the cost of the battery in relation, decrease in cost of the battery in relation with the increased content of aluminum, it is quite significantly advantageous for the OEM to move towards aluminum. On the ICE and hybrid, the challenges are slightly different. They, they have to bring out the new designs, which the Western world has already adopted in the last 10 years, and only then the aluminum content will increase. But as OEMs build new plants, it, it is only then possible for them to make this big change. Always they say platform, when we, we have to develop a new platform, because existing platform will not meet the safety norms or will not meet the new requirements which have come up. So when they invest for a new platform, which is much more than the powertrain investment, they build in features which can take in more aluminum, I would say. So that is the time aluminum content will dramatically increase. We have got a long way to go for the increase of aluminum content in the passenger vehicle when compared to the Western world. So it is happening, but it's not happening at the pace what we want to happen. Okay. Thank you, sir. Thanks for the great explanation, sir. Thank you. That's it all. Thank you. We take the next question from the line of Abhishek Jain from Alf Accurate Advisors Private Limited. Please go ahead. Sir, my next question is on debt side. So what's your plan to reduce your debt? As you were earlier indicated that you will sell one of your land and you will start to reduce debt in FY 2027. We just wanted to understand how much debt reduction will happen in FY 2027 onwards, and what is your target for the medium term? See, we already store any debt below, debt to EBITDA below 2 is comfortable, and we like to stabilize at 1.5 when we have gone through this big growth cycle. So as we speak, it is 2.5, in spite of the land not getting sold. Land has become very, very hot property, I would say, in that region. And while we waiting for the best price, we are engaged with multinational companies who are in the business of selling this land. Various advertisements have come in, offers have come in, so we are evaluating those offers for the best possible price. We are carrying around INR 300 crore worth value in the books, which was at the last year when we had done the evaluation. So we are seeing the best we can do for our shareholders. So that will surely reduce the debt. But we are not in such a hurry that we have to sell the land at a lower price to reduce the debt. So you mentioned that your debt to EBITDA reduction to be around 1.5 from the 2.5 now. So how much time it will take? Sir, I think, I need to be very honest. If we grow at 5%, it will take only 2 years to get to debt to EBITDA 1x, 1 is to 1, and another 2 years, we grow at 5%, the debt will be gone, totally. There will be no new customers. So we are balancing the tact on the matter. So at a steady state, at a lower growth, at around 8%-10%, I think we can have a debt to EBITDA between—anywhere between 1-1.5x, totally. So there will be—Today, we have grown the business from INR 1,500 crore to INR 7,000 crore. The very fact that India and our Asian neighbor, we have not kept pace, all our customers are disappointed that we don't have the capacity nor the infrastructure to handle those big orders, totally. So for that, I think, without building bridges, I think the infrastructure will not grow in the country, nor we invest for... We cannot have the multinational customers to place single orders of $50 million, $100 million with us, unless we have the capability to deliver that. So with a smaller base, yes, it looks like as if, the CapEx is high, but I think, we are looking at, even in the aluminum space, competitors who are having $8 billion only in the aluminum revenue. And all the top 10 aluminum players are between $3 billion-$8 billion. And you know that, the stated fact is we are less than $500 million in Aluminum revenue. So unless you scale up capacity, we cannot even bid for the orders. On one side, we want to broad-base the customer, we want to export, we want to be one among the players who are capable of going to the next 10, 15-year cycle of this sort of, not only growth phase, I would say, sustainability. So I think we are doing CapEx to sustain the company for with, with getting new orders and with new technologies. Got it, sir. So in the powertrain business, you are also adding capacity. So just wanted to understand when it will be completed and how much incremental revenue will be generated, on the capacity? I hope we'll continue to invest for the powertrains for the first next 5 to 10 years. And this was a stated fact that we bet on ICE rather than on EV, and now we see that it is paying off. So there is a lot of consolidation happening within India as well as rest of the world in the number of supplier base, because again of the technological change and the new demands on the emission norms, I would say. So we are becoming getting more inquiries as we speak. So as long as the demand keeps going, we'll continue to expand and invest in capacities. What would be the near-term capacity addition in the Powertrain business? How much that would be? I think 10% capacities, 5%-10% is what we are looking at in the next 12 months, starting from even this January. Yes. Okay. Thank you, sir. That's all for now. Thank you. We take the next question from the line of Nikhil Rao from ithought PMS. Please go ahead. Yeah, thanks for the opportunity. So DR Axion aluminum margins are at 20%, I think, currently. So just wanted to know if this is the peak or in the coming years and how can we achieve this goal? See, we are putting up one more plant for DR Axion. We have done the disclosures in the stock exchange. You may be aware that we have received some orders, and it's quite significant, this plant, investments and capacities as we move on. So as we move on, when the new plant comes into operation, two quarters, we'll have a hit on the margins because there will be preoperative cost, which is there, and suboptimal utilization of the plant. But as we move forward again, it will normalize, and when that plant comes in at full operating capacity in the coming 3-4 years... We will see that margin expansion will happen because the older projects may come down. Again, margin expansion, I put a caveat here, or I put a disclaimer here, which is a very strong disclaimer. Our margins are related to only gross margins. Compare—on percentage of the gross margins or after the material cost is removed from the top line. So otherwise, it is not an apples to apples. Today, aluminum is at around INR 230, INR 240, or INR 280 on the special alloys. No, no, sorry, on special alloys, it is more than INR 280. Tomorrow, it may be INR 500. So you calculate margins on that, it will be wrong. So I would rather say it will come on operating leverage and how well we control our costs and how well we are controlling our, I mean, the product mix and our strategies going forward. Okay. Thank you, sir. That's all from my side. Thank you. We take the next question from the line of Himanshu Singh from Baroda BNP Paribas Mutual Fund. Please go ahead. Hi, sir. Thank you for the opportunity. Sir, so just wanted to understand what is our exposure, by segment. Can you give any rough figure like CV, passenger vehicle, two-wheelers? Only on the powertrain you're talking about as a whole, as a company? I think where you're talking about as a whole, as a company. Just a minute, we will. Mr. Vimal is opening the slide, and Mr. Nasir also is giving me some inputs. Just a minute, I will take the exact slide. As a consolidated revenue per se, with across all the subsidiaries also, passenger vehicle contributes to 34% revenue, two-wheeler is 24%, commercial vehicle is 12%, storage is 9%, and balance is, tractor is around 4%, and all other products, I mean, off highway is around 5%, other powertrain is 4%. So it is quite, quite a long tail. Okay. Okay. Sure, sir. And sir, next question is on the standalone aluminum power performance. So we have seen the revenues also coming down and margins on the EBIT level falling sharply, almost like 500 basis point. Any particular reason, how should we see this going ahead? See, there are OEMs who shut shop for their annual maintenance and post the, festive season inventory correction. The product mix would have been changed. Maybe our revenue would have been flat because of aluminum prices or because of new products we brought into line, which are suboptimal, and the existing product lines will not be utilized properly in December, because customers will not inward material, in the last two weeks of the month, because the year of manufacture and a lot of other things which are there. We also have increased our capacities, quite significantly, and we carried those costs in December, which suppose, in December, it was, not fully, not fully utilized, not the exact word, but it is, below optimum level for December usage. So this will continue. As we ramp up, it will not be a stable level. There will be fluctuations from one quarter to one, one quarter, depending on festive season, depending on how well the customer performs, how that particular product segment, is contributing. So we will have that, but as an annual basis, I don't see any big change. Okay. Okay, sir. Thank you so much. Thank you. Thank you. Ladies and gentlemen, as there are no further questions from the participant, I now hand the conference over to Mr. Srinivasan Ravi for his closing comments. Thank you very much for joining, and what I wish to tell our shareholders and investors, I would say thank you for staying, staying with us during this large change, what we have done, brought about the company from a standalone to with the subsidiaries and things like that. We have more interesting things to do in the to make the company more strategically aligned, in line with the global requirements. So we are working on that, and thank you for your support. Thank you. On behalf of Craftsman Automation Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.