Ladies and gentlemen, good day and welcome to Happy Forgings Limited Q4 FY 2025 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Garg, Managing Director of Happy Forgings Limited. Thank you, and over to you, sir. Good morning and a very warm welcome to all of you to Happy Forgings Limited quarter four and FY 2025 earnings call. With me, I have Mr. Pankaj Kumar Goyal, our CFO, and Strategic Growth Advisors, our Investor Relations Advisors. I trust everyone has had the chance to review our financial statements and investor presentations for quarter four and full year FY 2025, which we have filed with the exchanges. Let me start by outlining the key highlights for the full year. In FY 2025, we delivered stable growth in absolute revenue, EBITDA impact despite persistent challenges across key end-user sectors, and roughly a 4% impact on top-line growth due to declining steel prices. The year was marked by significant headwinds, including a double-digit decline in international CV, Farm Equipment and Off-highway segments, as well as domestic slowdown in MHCV segment. However, our entry into the new segment gave us these challenges, highlighting the strength and resilience of our business model. Our continued focus on diversification and higher value-add businesses enabled us to improve profitability and outperform broader market trends. On an adjusted basis, overall revenue grew by 4.7%, while gross profit, EBITDA and PAT rose by 9.1%, 7.4%, and 11.2%, respectively. We have consistently improved our margins over the years, and in FY 2025, we achieved our highest ever full-year profitability with a gross margin of 58%, EBITDA margin of 28.9%, and PAT margin of 18.6%. Realizations also continued to strengthen, reaching at INR 248 per kg, up from INR 243 per kg, despite declining raw material prices, which are to the tune of INR 7-INR 8 a kg on the finished weight, driven by an improved product and machining mix. This represents a 1.5x increase in realization since 2021. In FY 2025, our domestic business, representing approximately 82% of our revenues, recorded a healthy year-on-year growth of around 6%. Direct exports, which contributed around 18% of our revenues, remained flat on an adjusted basis due to high realizations on one export order in FY 2024, but declined marginally on a reported basis, reflecting the impact of a significant slowdown in the Commercial Vehicle segment across key international markets, particularly in Europe. As guided Passenger Vehicle and Industrial segments are progressing in line with Passenger Vehicle segment now contributes 4% of our sales and is well on track to reach 8%-10% over the next two years. The Industrial segment has shown remarkable growth, increasing its share from 2%-14% of sales from the past three years. During the year, we announced new orders exceeding INR 1,600 crores across these two segments to be executed over the next five to eight years. These orders have an annual peak revenue potential of INR 250 crores per annum, strengthening our Passenger Vehicles and Industrial business will together contribute more than 1/4 of our total revenues in the coming years. Mr. Pankaj will share more details on the balance sheet in his address, but I would like to highlight that our improved profitability and strong cash flow generation have positioned us well to lay a solid foundation for the future growth. We remain firmly committed to our strategic priorities and our CapEx plan to invest in capabilities to serve diversified end markets and pursuing value-accretive opportunities that strengthen our long-term growth trajectory. Talking about segmental performance, starting from Commercial Vehicles, in FY 2025, the Commercial Vehicle segment contributed 30% of our revenues. The industry faced challenges both domestic as well as internationally, driven by global macroeconomic headwinds and reduced production volumes by OEMs. In India, MHCV truck production declined by 4% year-on-year, with the two largest OEMs accounting for the majority of its drop. In international markets, all major OEMs in Europe and North America reported double-digit declines in CV deliveries. These factors also impacted our CV segment performance, which recorded a mid-single-digit revenue decline on a year-on-year basis. Looking ahead, India's MHCV industry is expected to return to growth, supported by new highway infrastructure projects and improved financing availability. OEM commentary reflects a mixed outlook, and the domestic players are optimistic about an improving trucking cycle and increasing replacement demand, particularly in the heavy segment, but also remain cautious about lingering global tariff-driven uncertainties. Europe's heavy truck market has been adversely affected, partly due to the U.S. tariff on EU exports, and is expected to recover only gradually. In the U.S. and broader North American markets, Class 8 truck demand continues to soften, influenced by elevated interest rates and inventory normalization. Most large OEMs and industry analysts now forecast a further high single-digit to mid-teens decline in global CV sales for calendar year 2025. Farm Equipment. In FY 2025, the Farm Equipment segment contributed 30% of our overall revenue, achieving a mid-single-digit growth rate. In the domestic segment, our revenue outpaced industry tractor production, which grew by 6% during FY 2025, as tractor production surpassed 1 million units once again in this financial year. However, the European and North American Farm Equipment markets are facing a significant downturn. Major OEMs in these regions reported mid-teens declines in unit sales for calendar year 2024. With the first quarter of 2025 continuing to show similar year-on-year declines, this slowdown impacted our sales as well, including direct exports as well as deemed and indirect exports. Despite these challenges, we delivered mid-single-digit growth in this segment for FY 2025. Domestic tractor segment remains healthy. India's farm sector began FY 2026 strongly, with tractor sales in April 2025 rising approximately 8% year-on-year, supported by a good harvest and a favorable monsoon forecast. Leading OEMs project high single-digit growth for FY 2026, driven by sustained rural income and planned irrigation and infrastructure investments. In contrast, the global Farm Equipment market outlook remains subdued. Major OEMs forecast a 5%-10% decline in the European market and a double-digit decline in the North American market in calendar year 2025. As highlighted Passenger Vehicle segment continued to make strong progress, contributing 4% of our total revenues in FY 2025, driven by the successful ramp-up of dedicated production lines for key PV orders. We expect domestic sales in this segment to accelerate further in FY 2026, supported by sustained momentum in the SUV segment. In FY 2025, SUV production significantly Passenger Vehicle production, a trend expected to continue with the rising share of utility vehicles and growing premiumization of the market. Our export sales in the PV segment are also set to contribute meaningfully in FY 2026, adding to the growth in this segment. To support this expansion, we have lined up capital expenditure of approximately INR 80 crores. Overall, we remain confident of scaling this segment to contribute 8%-10% of our total revenues over the next two years. The Off-highway Vehicle segment contributed 12% to our revenues in FY 2025 and remained broadly flat in terms of revenue growth. In terms of underlying industry segment, construction equipment sales in India grew at a slower pace of 4% in FY 2025 as compared to previous years. Internationally, the Off-highway segment witnessed double-digit decline. In developed markets, demand remained weak, and Europe's construction equipment sales declined sharply, led by significant drops in Germany and France, while North America also saw a double-digit decline in 2025 following earlier inventory buildup. Key challenges included elevated finance costs, continued tariff-related trade pressures, and cyclical slowdowns in government capital expenditure. In contrast, India's construction sector continued to show resilience, powered by ongoing infrastructure and real estate development. Several OEMs have reported strong domestic order flows, reinforcing the strength of the Indian market against global softness. Industrial segment contributed 14% to our FY 2025 revenue, up from 12% last year, representing a significant growth on a year-on-year basis, which is close to 30% if one has to adjust for the extra realization on one export order in 2024. We are seeing a good traction in the wind segment and some of our new clients added in this segment. Talking about our recently announced CapEx plan in the heavy component segment, our INR 650 crore CapEx plan is progressing well and remains on track. As disclosed previously, we are establishing a state-of-the-art forging facility focused on heavyweight components like large crankshafts, axles, gears, oil and gas valves, and other precision machine parts. This facility will be the first of its kind in Asia and the second largest globally. It will serve high-potential sectors like power generation, marine, mining, oil and gas, wind energy, aerospace, and defense. The investment will be phased over the next two to three years, primarily funded via internal accruals and partially through debt. Production is expected to commence in FY 2027. This strategic initiative will strengthen HFL's position in the global heavyweight component supply chain, enhance profitability, and broaden our export footprint. I am pleased to report that in line with our commitment to creating shareholder value, the Board of Directors has recommended a final dividend of INR 3 per equity share on the face value of INR 2. We remain optimistic about our long-term growth, supported by a robust price pass-through mechanism that helps us maintain stable margins and drive sustainable growth. Our business is built on a solid foundation of expertise in complex safety-critical components, heavy forgings, and high-precision machine parts. We will continue to harness these core strengths to scale our operations and broaden our presence across diverse industry sectors. Now, I would like to hand over the call to Mr. Pankaj Goyal, the CFO of our company. Thank you, sir. Hi everyone. Myself, Pankaj Goyal, CFO of the company. Good morning. I would like to walk you through the financial performance of the company. So firstly, I will start with the quarterly numbers. Revenue for Q4 FY 2025 stood at INR 350 crore, showing a growth of 2.5% despite a decline in steel prices. Our realization stood stable and in line with full-year average. Our EBITDA for Q4 FY 2025 was INR 102 crore, representing a growth of 5% on a YoY basis. Our EBITDA margin for Q4 stood at 29.1%. Profit after tax for Q4 was INR 68 crore, translating to a PAT margin of 19.2%. Now, I will come to the full-year numbers. As you may recall, the FY 2024 financials were previously favorably impacted by higher realization due to air freight cost recovery from one of our specific orders, which contributed approximately INR 13 crore to revenue, INR 9 crore to our EBITDA, and INR 7 crore to PAT during this period last year. To enable a fair year-on-year comparison, we have provided adjusted growth metrics, excluding these one-time impacts. Revenue for FY 2025 stood at INR 1,409 crore, reflecting a YoY growth of 4.7% for FY 2025 on an adjusted basis. Our EBITDA for FY 2025 stood at INR 407 crore, representing a growth of 7.4% on a YoY basis, adjusted basis. Our EBITDA margin for FY 2025 stood at 28.9%. For the FY 2025 year, PAT stood at INR 263 crore, and PAT margin was 8.6%. This is again on an adjusted basis for one-off income during that period. Our total finished goods volume for FY 2025 increased by 2.8% to the tune of 56,906 metric tons. Realization per kg stood at INR 248 per kg, reflecting a stable improvement of INR 5 per kg if adjusted for higher realization on one order in FY 2024. We remain well supported by a robust balance sheet, which positions us to seize growth opportunities and continue to deliver value to our shareholders. Our cash balance, plus short and long-term FDRs and some liquid investment in mutual funds, are worth around INR 356 crore. Our debt equity remains low at 0.1%, and coming to the net debt, the net debt to EBITDA, including liquid investment, is zero. Further, we generated INR 292 crore cash from operations after adjusting the working capital and taxes during the year. With improved profitability and high cash flow conversion rate, we remain confident that we will be able to maintain significant balance sheet strength going forward as well. That concludes our update. The floor is now open for questions. Thank you very much. Thank you very much, sir. We will now begin the question- and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have a first question from the line of Pankaj Tibrewal from Ikigai Asset Managers. Please go ahead. Yeah, thank you and good morning to all of you. You know, obviously, the performance of last year had a good part also on the margin side. But what I wanted to understand from a growth perspective, in the next two to three years, with all the initiatives which the management is taking, the company is taking, what could be the size and shape of the company we visualize could happen as you move ahead, which is next three years? I understand there is underlying slowness in some of the user industry, but all the Passenger Vehicle, Industrials, everything, what would be the size of the company we should keep in mind? Second, you have a very decent balance sheet now. Anything on the inorganic and the white spaces we want to fill in, that will be my second question. So two questions. One is on the outlook of next two to three years, how the shape and size of the company could be. And the second one is on the inorganic side, on the white spaces. Thank you. Good morning, Pankaj ji. So in terms of medium-term kind of guidance, so specifically for a short-term guidance, normally we don't provide. But in terms of a medium-term guidance, the company has been growing at a rate of, say, 15%, 18% organically so far. We maintain to keep this trajectory going forward as well because the new order flow and the new markets that we are developing and the new products in the existing markets will keep up this growth going forward as well. What we need to see is how the existing markets are catching up in the next two to three years because if you look at the Farm Equipment sector globally, they are almost at 14-year low kind of a registration now in Europe. Some of the large players like John Deere, AGCO, and some other players are seeing kind of a 35%, 40% kind of a slowdown growth. So we need to see how that is kind of planning. But I'm sure that things will be back on track. With the new positive roles that we have taken on the PASCA side, the new CapEx that we are building, and the new CapEx that we are building on the Industrial side, we are looking at this type of growth to continue. Whereas in terms of realization, even in the current year, despite a fall in raw material prices by INR 7-INR 8 per kg, realizations have moved up by INR 5. That means almost INR 12-INR 13 per kg realizations have moved up despite this fall in raw material prices. We feel that because of the quality businesses that we have picked up, the realizations will keep on improving year on year. Next four to five years, we should be looking at a realization between INR 275-INR 280 on a stable steel price basis. That's because the new businesses are picked at a higher gross margin, and the material content, the machining content is far superior than the material content. We are confident of growing at this rate, and we also expect that markets will improve going forward as well. In terms of inorganic, yes, we are almost at INR 380 crores of cash today in terms of our balance sheet. Our CFO is also very strong, and we are scouting for some inorganic opportunities. So far, we have not clicked, but we are kind of working on it. And we are to the tune of INR 50-INR 100 crore size of EBITDA, is what we are looking at, and majorly towards machining. I hope I'm able to answer. Yes. Thank you so much. And just one last bit on the scrap sales. Normally, I have observed from your annual reports that scrap sales is a decent portion of your overall business. Last couple of years, steel prices have been subdued. With now steel prices moving up, can this be also a contributor? And also some light on the other income. Is this other income sustainable as you move ahead? Can you give us some color on that, please? So yes, we generate a considerable amount of scrap sales. The scrap sale is because our machining content is very high, so we generate over 30,000 tons of scrap every year. Probably this will go up in the coming year. And so INR 4-INR 5 per kg impact on the scrap prices, which is nearly affecting 1% of our EBITDA, has gone in this year. And with improvement in scrap prices, surely we can see some upward trend. Because for us, it is not a pass-through in terms of our working, and it definitely affects us. Secondly, in terms of the other income, the other income for us today is a mix of Forex benefit, is a mix of the incentives that we receive on our revenues from the Punjab government. And also it's because of the FDRs that we have. Certainly on the other income, we will be seeing some impact, but not a major one. We'll be seeing some impact for sure on the other income, but not a major impact because we have stable cash flows, and most of the CapEx will be funded through our cash flows. If there is some inorganic CapEx which is taken within the year, then certainly yes, there will be an impact on the other income. Otherwise, 70%-75% of the other income will be maintained. That's good to hear that. And wish you all the best. I just hope growth comes back. We have all the hygiene in terms of capital efficiency, margins, balance sheet, cash flow. Once growth comes back, I think it will be much, much better. Thank you and wish you all the best. Thank you. Thank you. We you. We have our next question from the line of Mitul Shah from DAM Capital. Please go ahead. Thank you for the opportunity. Sir, first clarification on this scrap sales in terms of tonnage. If I hear you clearly, 30,000 tons is a scrap we are saying for the FY 2025, right? Yes, Mitul. So if I add that to the finished goods, which is about 57,000 tons, so that goes to nearly like 87,000 tons, 88,000 tons. So that means roughly when we take raw material and convert it to finished goods, its final outcome is roughly 67% type of, right? One third goes as a scrap, or if I assume 100 tons of raw material purchased, my final product would be like a 67 kg type. Yes, yes. That is more or less a ballpark ratio one should consider for future also. Yes, yes, sir. Okay. So now my first question is on last two months' experience in terms of after this U.S. tariff thing and particularly on the China-related restriction by this country. Are we getting any inquiries, new inquiries, or any view in terms of these global giants thinking of changing the sourcing from China to India or any such experience? So in some Industrial segments, we are seeing where the sourcing was happening from China. So we are seeing some trend over there, and the discussions are ongoing. We are waiting for the U.S. to announce its tariff for India. So clarity will come on that, and probably that will be a good trigger. But as far as large CV players or large Industrial, some of the players who are already established in India in terms of their sourcing offices, over there, the discussions have been the same because they were not sourcing much from China. But on the power generation side, on the portable genset side, on the wind side, definitely there has been some sourcing coming from China, which are in discussions. But not on the Commercial Vehicles or not on the Farm Equipment side. The second question is on Commercial Vehicle. We have reported roughly 6% decline in revenues. And if we adjust for this 3%-4% pricing, then it's roughly about volume decline could be 2% or 3%. Whereas you highlighted domestic CV production down by 4%. Can you give ballpark number for CV domestic and CV export decline? Just point this in RVG. There has been more decline on the export side. And even in the domestic CV production, when OEMs have reported 4% decline, in actual, this decline is more in terms of the component sourcing. This 4% decline is because the bus sales were more this year. But if you look at the total BOM consumption, total BOM consumption is around 15% lower than last year in terms of the component requirement. So for us, we have gained some market share in the domestic segment as well with our new businesses picking up. But if you look at the European CV side of it, we have seen a high 18%-20% kind of a dip in the pickup of orders from some of the players like Daimler, Volvo, and also from Iveco, where we supply through Dana as well as Meritor. So that side, we have seen a sharper decline. Or is there any angle of like a more complex machining has increased? That has also helped in terms of higher revenue. It is because of the new product introduction. We have introduced axle beam for which the pickup has started. Also, because of the new businesses we have picked in the domestic segment from large CV players. Lastly, on this 15%-18% growth guidance, do we see similar growth even for FY 2026 considering the current scenario? We do not provide specific growth guidance for the short term, but we maintain that we aim to register a 15% kind of organic CV revenue growth in medium term, medium to long term as we are going to different sectors. And at the same time, we expect recovery to happen in the existing sectors as well, which will contribute to the growth. Also, if there is any positive on the raw material prices, that will also add up to this growth. Our endeavor is to improve our business in the new sectors and to increase our share of business and also to add new products. And that is what the company is doing at the moment. Understood, sir. Thanks a lot, and sir, all the best. Thank you, sir. Thank you. We have our next question from the line of Sonal Gupta from HSBC Asset Management. Please go ahead. Hi, good morning, and thanks for taking my question. This time, I mean, could you give us what is the full year number for scrap and other operating income for the full year in terms of revenue? Yes, yes, yes, sir. So good morning, Sonal. Yeah, good morning, Ashish. Yes. So we have around INR 108 crores of income from scrap this year and INR 14 crores of incentive income this year. This is the revenue from operations. Right. It's part of the revenue from operations because, yes, it's generated because of the manufacturing activities. Sure. No, no, fair enough. I just wanted to, I mean, like the product mix revenue that we show is x of these two, right? Yes, yes, yes, yes. Yes. Okay. Yeah, that's what I—and sure. Just on the, I mean, like the export side, I mean, should we look at, I mean, would you be able to tell us how much is dollar versus euro denominated? It is majorly in euros for us. You can say 70%-75% is in euros. Okay. I mean, like given your, I mean, what sort of an impact do you see with the current U.S. tariffs? I mean, like in terms of for the coming year or whichever way, right? Like, I mean, in the near term. Currently, our overall direct exports and sales mix is around 18%-20% for FY 2025, and additional 10%-11% of sales is reported in the form of deemed exports or indirect exports, taking our total exposure to 30%. Our exposure to the U.S. market in direct and indirect exposure is around 5% of the total sales, where our supplies are either DAP or CIF values. So as of now, we don't see there is any negative impact of this on the existing business. But for the new businesses which are in discussion for the PVs, as well as for the Industrial businesses, definitely we need to see how the tariffs are shaping up. But if it is to the tune of 10%, then definitely it's not impacting anything. And we can certainly see because the capacities for these products are not available in the U.S. Plus, it cannot be created overnight, so we don't see any long-term impacts on this as well. Only for these new businesses that are in discussions, if the tariffs are 25%, that can impact the business. But if the tariffs are in the range of 8%-10%, it's not going to impact the business at all, even for the new discussions which are ongoing. So this is for the existing PASCA orders which are ramping up in FY 2026? For the existing order which is planned to ramp up, the impact is not going to be there because capacities are created by us only. So there are no capacities available in the U.S. for that. Whether it is 10% or more, it's not going to impact because the products have been tested from our facility, and accordingly, capacities are being created for that. Right. No, no, no. I was just trying to understand. So will it be a pass-through from your side, or will there be a negotiation with the customer? It's a pass-through, Sonal. So on a 10%, whatever discussions we had, there's no issues at all. Because if you look at the past workings, even the freight prices that we have picked were quite higher in comparison to what they are today. Also, the currency which you see. So 10% is kind of absorbed in so many other things. But if it is more than that, then also it's not in our review because the terms are CIF for that, and OEM will take the impact of that. But we are hoping that the tariffs will remain below 10%-12%. Got it. Got it. And just in terms of, could you update us on the capacities that we've added this year? Because I think we were adding some presses, and then we have some more additions coming in FY 2026. And what sort of ramp-up has happened on the new facilities? If you could just give us some updates on those. So in terms of our forging facilities, we are adding 4,000-ton new press lines which is coming up for this PASCA order. There is another Industrial line which is coming up for wind pinions and also for very heavy axle shafts for North America market, which is also coming in third quarter of this year, which will probably go in production in the fourth quarter, both the lines, including the ring mill which is coming in second quarter, which is going to be in production in third quarter of this. So these are the three equipments which are planned to come in this year. And the new investment of big hammer, which is for the Industrial units, will come in next year, probably by third quarter. Got it. And what did we add? Sorry, if I'm not wrong, 6,500-ton press this year? Yeah, yeah. The 6,300-ton line was added in last year, primarily to cater to PASCA productions, on which we are kind of ramping up for the PV orders. And also, some of the new developments are in place. And that's kind of that came last year, which is in production now. Got it. And earlier, we had some plans for machining capacity in Jammu, investments in Jammu. Any update there? So on the Jammu and the machining capacities over there, we invest. So far, only INR 50 lakhs have been spent by our company only for the approval processes. And also, we have not gone ahead with the land procurement because there were certain issues from the government on terms of the policies. So if there is a clearance in terms of policies, then we were thinking of going ahead. But because of the war situation, we are holding up for that decision at the moment. Got it. So sorry. So overall CapEx this year will be in what range? Sorry to interrupt, Ms. Sonal. Can we? Yeah, this is my last question. Ye ah. Just the CapEx number for the 26th. So it'll be close to INR 300 crores without the solar CapEx. If the solar CapEx kicks in this year, then it'll be close to INR 400 crores. We are in the process of buying land for solar. 35 acres is already acquired. Balance 60 acres is planned to be acquired in next two months. So we expect the solar CapEx to happen in this year. If the solar CapEx is in place, then around INR 400 crores is what we are planning in this year. Got it. Got it. Thanks a lot, Ashish. Thank you so much for that. Thank you, Sonal. Thank you. We have our next question from the line of Lakshminarayanan from Tunga Investments. Please go ahead. Thank you. Just looking at the last year, what are the things that have disappointed you, and what are the things that you think have been very successful for you? Can you just tell me through maybe segments or markets or clients? Yes, we were expecting last year's CVs to perform better. But as you can see, that post-election CV has not picked up the way we were expecting. And at the same time, the European slowdown in terms of double-digit in CV was not expected, which has also gone through, which we have seen. And also on the farm side, we have seen a sequential drop quarter on quarter in terms of the Farm Equipment manufacturing activity. If you look at the tractor productions for some of these large players in Europe as well as the U.S., we have seen a sequential dip, which has happened in the last year, starting from the first quarter, which is the Jan-Feb-March for them. We have seen dips in the last five quarters straight happening in terms of production, which was not kind of gone in the favor or which was not seen that probably can happen. Positive side, yes, the PV production in terms of SUV has kicked off really well. It's a high gross margin business, which has kind of overall helped us in the entire situation. And also, the new businesses which are coming from the PASCA side is kind of seeing. We were also able to get a large order win for the very large Industrial business, which is close to INR 150 crores per annum, where the realizations are quite higher. That shows that confidence in the current capability. So it was the large order win, which probably is positive for the company. Can you just look at your exports? Can you just give me a list of your exports in terms of the various segments here? Yeah, just a second. Hello. Go ahead, Mr. Yes, it is around 12% into CVs. And I can say around 5% into Industrials. Okay. So it is around 17%. Okay. And if I look at the Commercial Vehicle growth in India and also the Farm Equipment volume growth in India, their decline or the growth has been when I compare to your numbers, your numbers have been a little underwhelming. Is it because the clients you chose to work with, like perhaps AGCO didn't do well, or maybe a client who you work with in commercial, they didn't do well, or is it because a particular product became shifted to another competitor? Looks like there seems to be underperformance with respect to Farm Equipment domestic and Commercial Vehicle domestic. Is my observation right? And if so, what led to it? Just want to confirm you're saying that the Farm Equipment sales were not in line with the market? That is what your question is? No, no. For example, Farm Equipment sales in India appears to have grown, whereas our growth doesn't mirror the growth in revenue numbers, at least looks like it. I haven't worked out the exact numbers. If my observation is right, what led to it is my question. And it depends on the Commercial Vehicle also. If my observation is right, what led to that seemingly a decline or underperformance with respect to the market? No, we have on the Farm Equipment side, the business contributed 32% to our overall revenue, and there was a mid-single-digit growth in the sector, which is in line or better than the industry growth. However, we are not suppliers to Mahindra Tractors. We have just started our supplies in that domain as well, and Mahindra has seen a better growth in comparison to some of the other players, so our revenue growth in terms of Farm Equipment is, in fact, better than the industry. On the CV side, as we can see, because we have a large chunk in export as well, where we have seen a dip on the European business. On the CV side, we have seen a little subdued trend in terms of our revenues. But if you look at the numbers which are reported by the CV players, there has been a dip in CV production as well to the tune of 4%, which includes the bus sales. But if you look at their total input in terms of the BOM cost because of the multi-axle truck, this decline is to the tune of 15%-16% in the last year. So if you compare to that over there as well, we have performed better. And last question is, in terms of crankshaft revenue, what is the revenue from crankshaft for this year, and what was it last year? So in FY 2025, it is exceeding 50%, above 50%. I will just check for FY 2024 as well, just to say. And you're talking about? It is 47% last year. It was 47%, which is upwards of 50% now. And I assume that that has driven your bigger up? Yeah, that has driven the overall realization, which is now to the tune of INR 248 a kg, despite of falling RM prices. So there's a decline of almost INR 7-INR 8 in terms of RM prices on the finished product. So despite of that, it has improved from INR 243 to INR 248. So if you look at it on a stable raw material price basis, it has gone up by almost INR 12 a kg. Fantastic. Thank you so much, sir. Thank you. Thank you. We have our next question from the line of. Before we move on to the next question, I would like to remind all the participants, if you wish to ask a question, you may press star and one. The next question is from the line of. Vijay Pandey from Nuvama Wealth. Please go ahead. Hi, sir. Thank you for taking my question. Sir, I have just one question. Just wanted to get your overview about the defense and Farm Equipment sector, both the outlook both for the export as well as for the domestic market. When do you see the turnaround happening, and is it like second half of FY 2025, FY 2027, starting of FY 2027? What is your expectation for both domestic as well as export market? So domestic market on the Farm Equipment side has started showing some green shoots, some positive trend. But over there, different OEMs are reporting different numbers, Mahindra being very strong in terms of its growth, showing good growth. But in actual, the Vahan data shows a different trend. So we still have to see one or two more months of vehicle registrations, which will be a right way of looking at things. But on the domestic side, as Farm Equipment side, Farm Equipment sector has witnessed a slowdown for the past two years. We should be seeing a high single-digit kind of a growth. That is what we have been seeing, or we have been discussing with other OEMs also. On the export side, on the Farm Equipment side, there is certainly, in terms of guidance, what we have seen from some of the large players. We are seeing that it will be kind of a flattish, or the improvements we'll start seeing from third quarter of this financial year is what we are seeing. But it's kind of bottomed out, and in terms of stocks, it's kind of liquidated. So we should not be seeing any worsening happening from these levels. But there is definitely expectation in terms of improvement. It can trigger anytime soon. Okay. Okay. So do you expect kind of a mid-single-digit growth or low-single-digit growth for exports in second half? Could be better because it's actually at a very low level right now. So any positive trigger can improve the number. Then with the improvement, there could be a healthy pipeline also that can be we need to build because right now the stocks that they are carrying is as per the current production rate. So if there is any improvements at those levels, then the push in terms of requirement can come before that. But as of now, in terms of the guidance, we are seeing it's kind of flattish. Thank you. Thank you, sir. Thank you. Yes, thank you. That's very helpful. Thank you. We have a follow-up question from the line of Mitul Shah from DAM Capital. Please go ahead. Thanks for the follow-up opportunity. First question on, again, scrap related, as you highlighted, INR 4-INR 5 per kg increase in the scrap sales possible. Our scrap volume is roughly half of the finished product, so that implies around INR 2-INR 2.5 per kg improvement on the finished goods. That is nearly 100 basis at EBITDA level. Are we able to retain this entire 100 basis? Mitul, we have not said that INR 5 is what we are expecting in this year. We said that we lost INR 5 a kg in last financial year. That is not a pass-through, and because of which the impact on EBITDA is close to 1%. We said if there is any improvement that will happen on the steel price front, then definitely it will be positive. Okay. Understood. So second question on this Industrial side, are we doing anything related to defense in terms of any development phase products? And secondly, within this Industrial, if you can highlight top three segments within Industrial, non-auto, in terms of percentage contribution, approximately? Yeah, just a second. Let me just touch that again. Wind is one large sector in Industrials, which contributes almost 50% of the Industrial share, and then balance is split between oil and gas and power generation, Industrial gen sets. Any development on the defense side? Defense side, we are still quoted some tenders for the tank applications, which can be done through our facilities, and kind of working on it. But the large portion of it will probably start once our new facility is started, where we can do heavier component range. Last question on this new project of INR 650 crore, which will become operational end of next financial year. You earlier highlighted asset turnover possibly about 1.1x-1.3x type. But can you give more details in terms of what kind of products, segments, and margin profile of this? So large portion of this sales, approximately 50% of the revenues on this line, will come from higher horsepower engines, which are majorly consumed for data center requirements, mining, defense, and marine applications. So 50% of those business will be catered from this line. And balance will be split between oil and gas, defense, and aerospace, as we will be having the capability to forge heavier range of parts. And in terms of asset turns, it will depend on how much business we'll pick on machining and how much will be done as forged. If we are able to do more forging business, then the asset terms could be in the range of 1.2x-1.3x. But if it is a full purely machined business, then probably asset terms will be around 1x. And definitely on the machined business, as we picked up certain businesses, the realizations will be around INR 600 per kg plus. So it is expected to benefit the overall realization of the company. Margin would be much higher than what we are doing right now, right? Yes. Yes. Yes. Yes. And sir, lastly, Passenger Vehicle side, you highlighted 4% will go to 10% in next two years, right? Yes. So that means more than 100% growth type of nearly 100% CAGR possible. Is it like that? Yes. Thanks, sir. That's all from my side. Thank you. Thank you. As there are no further questions, I now hand the conference over to management for closing comments. Ashish, any closing comments from your end? Yes. So to conclude, we are confident that our investments in innovation, capacity, and customer partnerships will drive sustainable growth and value creation. With this, I would like to thank everyone for joining the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with SGA, our Investor Relations Advisor. Thank you once again. Thank you, sir. On behalf of Happy Forgings Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.