Ladies and gentlemen, good day, and welcome to the Q1 FY26 Earnings Conference Call of Happy Forgings Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee 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 this 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 from Happy Forgings Limited. Thank you, and over to you, sir. Thank you. Good morning, everyone, and thank you for joining us today for the Quarter One FY26 Earnings Call of Happy Forgings Limited. FY26 has started on a resilient note with positive growth and sustained margins despite ongoing industry headwinds. For the quarter ended June 30, 2025, we achieved a revenue of INR 350 crores, marking a year-on-year growth of 3.6% despite a raw material price correction of 3%, driven by our forays into new business segments and onboarding of new business, which helped counter the slowdown in some of our old businesses. Top-line growth of 3.6% was driven primarily by a 3.8% year-on-year increase in finished goods volume, with total volume for the quarter reaching 14,457 metric tons. Realizations remained strong at INR 245 per kg on a year-on-year basis, despite moderation in raw material prices supported by a higher share of value-addition components. Our gross profit margins remained healthy at 57.9%, while our EBITDA margins stood at 28.6%, both around peak levels. This performance comes at a time when the industry is facing pressures on both growth and margins. We remain confident of sustaining these margins going forward as well. Uncertainty in the export market continues. Influenced by a shift in tariff regimes, our direct exposure to the U.S. remains modest. However, there is a possibility of indirect impacts on the European market arising from recent tariff measures by the U.S. At present, our business pipeline has not been adversely affected. On the contrary, we are working towards securing new orders from customers in Europe. Although tariff-related headwinds could temper revenue growth trends across the broader industry, our endeavor will be to protect revenue growth by focusing on securing new business, maintaining our margins, which we are confident of sustaining going forward. These dynamics also reinforce the importance of a diversification strategy and focus on higher value-added products, which help cushion volatility. We continue to monitor developments closely and await greater clarity on the tariff situation. Now, talking about segmental performance, from a reported geographical market segments perspective, our domestic business grew by 7% year-on-year, while the export segment saw a decline due to continued weakness in commercial vehicle and off-highway and Farm Equipment segments, as well as tariff-related uncertainty. From end-user industry segments perspective, starting with commercial vehicle, this segment contributes 39% to the overall revenues for the quarter. The global commercial vehicle industry continues to operate in a challenging environment. Several large U.S. and European OEMs reported an 8%-10% decline in CV unit sales for the April to June quarter, marking seven to eight consecutive quarters of decline. In India, M&CV production was flat, while sales declined by 4% in Q1 FY26. The market outlook for U.S. and European CVs in calendar year 2025 remains negative, with sales expected to be lower by 8%-10%. Given the negative momentum, our sales in this segment were also impacted and declined by a mid-single-digit percentage year-on-year for the quarter. Moving to the farm equipment sector, which accounted for 32% of our revenue, India's rural market continues to show strength. Tractor sales grew by about 9% year-on-year for the June quarter, while production increased by 13%. The outlook for the rest of the year remains positive, with forecasted tractor volume of 4%-7% growth, supported by an above-average monsoon and improving rural sentiment. However, export markets in the U.S. and Europe remain under pressure, with high single-digit volume declines. Large OEMs in this sector have forecasted a 5%-15% decline for the calendar year 2025. As our direct exports in this sector are limited, we have managed to register better than overall revenue growth here on a year-on-year basis. Now, on the Off-Highway segment, which constitutes 10% of our top line, this segment also experienced softness both domestic as well as globally. In India, the sector saw a mid-single-digit decline during the quarter, largely due to the delay in activity in the end-user sector, such as roads, highways, mining, as well as regional disparities in project execution. Internationally, and more specifically in Europe and the U.S., the Off-Highway market declined by further 10%-12%. Unit sales in these geographies are expected to stay subdued during 2025. However, industry analysts anticipate a recovery beginning in 2026, with a revival in infrastructure spending likely to support medium-term growth. Coming to Industrials, which made 13% of our revenues in this quarter, on a year-on-year basis, this segment reported good growth, especially in the domestic subsegment, with growth led by strong demand from wind energy, power generation, and oil and gas sectors. We are confident that this momentum will continue, and we are looking to deepen our presence in these critical areas. Finally, let me touch upon the passenger vehicle segment, which contributed 6% of our overall revenues in Q1 FY26. This is a segment where we are seeing a strong traction, driven by a successful ramp-up of dedicated production lines for e-SUV platforms. Our PV business is scaling rapidly. We expect this segment to grow 8%-10% of our total revenues over the next two years, with domestic momentum and export contributions both acting as growth levers. To support this growth, we have committed a capital expenditure of INR 80 crores, which will go towards enhancing production capacities and strengthening our position in the evolving market. In summary, our diverse segment mix contributes to be a key strength, enabling us to weather volatility in global markets while capitalizing on domestic structural demand themes that are playing out strongly in India. We remain confident in our ability to sustain growth across our core verticals in the coming quarters. We also remain on track with our INR 650 crores CapEx plan to create a best-in-class forging infrastructure for heavyweight precision components. This facility will position us uniquely to serve complex and high-value-addition parts for oil and gas, marine, wind, and defense sectors. During the year, we expect additional commissioning for 10,000-ton press and 4,000-ton press, with annual capacity addition of approximately 20,000 metric tons per annum. With this, our total forging capacity will be close to 150,000 tons. This capacity expansion elevates our operational strength, accelerates our ability to meet rising demand, and cements our position for long-term growth and innovation. To conclude, looking ahead while macroeconomic and industry developments are beyond our control, we will stay focused on our endeavor of adding new businesses, maintaining efficiency and profitability, and preserving the strength of our balance sheet to build a strong foundation for the future. Our approach to capital allocation will remain judicious, always guided by our goal of creating long-term value. I will now request our CFO, Mr. Pankaj Kumar Goyal, to walk you through the financial highlights in a more detailed manner. Thank you. Good morning, everyone. Let me take you through the key financial metrics for Q1 FY26. Revenue from operations stood at INR 354 crores, up 3.6% on a year-on-year basis. EBITDA was INR 101 crores, translating to an EBITDA margin of 28.6%, up 3.6% on a year-on-year basis. Profit after tax stood at INR 66 crores, reflecting a PAT margin of 18.6% and up 3.2% on a year-on-year basis. Our volume for the quarter increased to 14,457 metric tons compared to 13,933 metric tons in the same quarter last year, making a 3.8% increase. Importantly, realization per kg held steady at INR 245 per kg, despite softer raw material prices, supporting our gross margin performance. The machining share of our revenue remains strong at 88%, with focus on value-addition and precision-engineered components gaining ground. This continues to be a key margin lever and a strategic priority going forward. During the quarter, HFL has concluded negotiations with some of its customers on payment terms and Inco terms, resulting in improved cash flows also. On the balance sheet front, we continue to maintain a healthy financial position with strong internal accruals and adequate liquidity of more than INR 350 crores to support ongoing investments. Our working capital cycle remains efficient, and we have not seen any major stress across receivables or inventory. That concludes our update. The floor is now open for questions. Thank you very much. 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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pratik Jain from Solidarity Investment Managers. Please go ahead. Hello. Am I audible? Yes, sir, you're audible. Yeah. Thank you. Yes, you're audible. Please go ahead. Thank you for the opportunity. So my first question, actually, is on if I see your capacity utilization, it's been around 57%-59% since the past few quarters, right? And if I look at your EBITDA margin, you are still able to hold on to your EBITDA margin despite a little lower capacity utilization. If you can explain what helps you to maintain the margin despite low capacity utilization, and is there any scope of improvement once you start increasing your utilization? Yes. Good morning, Pratik. Hey, hi. Good morning. Yes. So as I've understood you correctly, yes, the forging utilization right now is around 59%, and that's only in terms of tonnage. But in terms of numbers, if you see, the forging utilization is close to 74% in terms of numbers. So we have the possibility to increase this utilization by almost 18%-20%. As forging infrastructure takes a long time to build, and we have seen a slowdown in the market for the last four or five quarters, we expect once the momentum is there, definitely this utilization levels will improve because the same die runs will be bigger and longer, and we can easily cash on this opportunity. And definitely, some bit of fixed cost will get divided, and definitely, there is room for further improvement in terms of the EBITDA margin as well as the operational efficiencies will improve. But quantifying it will be very difficult. But in terms of machining, our utilization remains strong, and we are adding lines as is when required because we can ramp up on the machining within four-to-six months' time frame. Got it. Thank you. That's it from my end. Thank you. Our next question is from the line of Ronak Mehta from ICICI Securities. Please go ahead. Yeah. Yeah. Hi. Thanks for the opportunity. Hi, Ashish. Congratulations on a resilient performance despite challenging environment. My question is on the order book. So you used to highlight that you have about 600 crores of order book in the past couple of, so I think, in one of the quarters earlier. Can you update on that? What is the status? What is the order book right now? Also, if you can highlight what are the orders that are likely to come into execution this year, specifically on the CV and the farm side? That is my first question. Second is, also, if you can highlight what is the growth for the India CV business and what is the decline in the export CV? So the blended CV growth, I think, is about. There's a decline of about 4%. If you can just break that down into India growth versus domestic versus exports decline? Yeah. Thank you. Yes. Hi, Ronak. So your first question was with regards to the new order wins, what I've understood. Yes. In terms of our old order books, if you see the last three to four months passed by, HFL has won almost INR 250 crores business with one of the largest farm equipment OEMs in Europe, which is close to INR 50-60 crores per annum, and for which the work has already been started in terms of development. There is another farm equipment order, a large farm equipment business, which is in discussions and almost at finalization in Europe. This is because of the ongoing prolonged slowdown in global farm equipment sectors where HFL will be directly exporting for farm equipment products in the European market. Currently, we are doing through Tier 1 or Tier 2 right now. On the U.S. side as well, on the wind side as well, we have already won a business close to INR 300 crores, which comes out to around INR 60-70 crores per annum, which is for one of the wind lines which the company is installing, which is getting started by January this financial year, which is for the heavy sector for the wind shafts, which are in a range of 150-300 kg size range. Further, we have quoted several businesses for our high horsepower line, for which OEMs are waiting for us to speed up on our infrastructure. But we see a strong traction over there. Already, a very large order which we have signed is close to INR 180 crores per annum, which is on the industrial side and for the large requirement of data centers, which will be for full machined components, which is ongoing, for which the CapEx is already planned and which is ongoing. Besides this, we are anticipating wins coming up in the next three-to-four months, which is on the PV side for the European market, which we have quoted and negotiated for the last couple of months, and also for one of the CV clients who is setting up their complete transmission plant in India. So there is a strong business flow. There is a strong pipeline, and we expect a lot of businesses to get converted for the European market given the currency situation. Even for the U.S. market, we have expected ramp-up this year from November, December for one of the large PV order wins that we have achieved, which we have recently won in the last one and a half years, for which testing is ongoing, and despite the tariff situation, we expect things to normalize and ramp up in a normal manner. Even though we will see some reduction in schedules because of the ongoing slowdown in the domestic PV business, but we don't see any shift of business in that sector as well. At the same time, we have also quoted some of the new businesses. I think once the tariff situation is settled, I think we'll get a better clarity on that. Thank you. Yeah. Also on the breakdown of CV growth, CV revenue from India and exports? At the moment, the European CV business has kind of witnessed almost 8%-10% fall in the last quarter, and this year, if you are looking at most of the commentaries from the European OEMs, we are looking at around kind of a 10% fall in the CV production numbers in Europe, so if you look at our growth on the CV side, we have picked up some new businesses on the domestic side as far as crankshafts are concerned and for the CV players, and we expect this ramp-up to be very strong going forward as well, and this will continue. So it's because of the growth that we'll be seeing in the domestic CVs because of the new business picks that we have already done in the past one and a half, two years, which will be ramping up, which have already started ramping up and will continue to ramp up going forward as well. Is it fair to assume that even for this quarter, your domestic CV revenue growth was higher than the industry volume growth? We were almost at par, Ronak, for this quarter. Slightly better, I can say. All right. Okay. And just last one, on the heavy component CapEx side, so last time you indicated one order win of about 180 crores. Any update on more order wins? Because I believe the total revenue potential from that facility would be somewhere between 500-600 crores. And so any update on that? Ronak, we have quoted to almost all clients on the high horsepower category. In fact, the clients are waiting for us to be ready with the infrastructure because right now we are in a phase where it is coming up, and the CapEx will get finished by, say, second quarter or third quarter of next financial year. We are in the midst of discussing with all our customers. We remain very bullish on this sector. At the same time, we have one business of INR 60 crores per annum on this side, on the wind side on these lines, but at the same time, we are in a place where we have quoted, and a lot of customers are waiting for us to get close to the infrastructure. All right. Just last one. So what would be the utilization limit of the 14,000 tonnage press right now, given that your overall utilization is about 58%, 59%? And the front axle beam orders, is that ramping up well? Ronak, we are at around 46%-48% in terms of tonnage basis and in terms of our around 55% in terms of units because we do a lot of industrial production on these lines. So you look at it, we are close to 55% in terms of the units. In terms of tonnage, it is close to 45%. The front axle beam business is ramping up because of the ongoing slowdown in the domestic market. The units are a little less, but we expect to deliver close to 35,000 units in this year. All right. Thank you. Thank you so much. All the best. Thank you. Thank you. Our next question is from the line of Sahil Sanghvi from Monarch Networth Capital. Please go ahead. Yeah. Good morning. Thank you for the opportunity and well done on holding on to the numbers, the results. I have two questions. First, we were expected to start the orders for the precision machine components for power sector from 2Q FY26. So is that on track? And secondly, we were also looking to commission the 25-megawatt solar CPP Captive Power Plant. So any updates on that? Sahil, can you just repeat your first question? So there was a INR 145 crore order that we received for the precision machine components for power sector, roughly some INR 30 crore annually, expected to start in FY26. So just was looking to get some timeline or an update for that. Okay. This is for the industrial genset business, I think you're talking about. Yes. Yes. Which is for the North American market and for which the testing is almost over. The line is ready with us, and we are expected to start ramp-up in this quarter, and we expect the line full utilization to come from fourth quarter and around 50% utilization by third quarter on this line, but despite the ongoing tariff situation, the business is stable. We see good numbers because the business is kind of shifting from China. Sure. Sure. On the second question regards to the solar project, yes, the solar CapEx is ongoing, and we have already acquired 40 acres of land on this, already signed agreement for this. We expect the project to commence by the first quarter of next financial year. We are expecting closure by March, but to be on a safe side, we expect it by the first quarter of next financial year. Sure. Sure. Thank you so much, sir, and all the best. Thank you. Our next question is from the line of Aniket Mhatre from Motilal Oswal Securities. Please go ahead. Hi, sir. Thank you for the opportunity. Just a couple of questions. One was, could you help us understand your contribution from CV exports and farm exports to your revenues? CV exports is close to 50% of the total exports, which is close to 9%-10%. And farm direct exports are negligible, which is close to 1% right now. But we do a lot of indirect exports as well as deemed exports for farm equipment products, which goes as semi-machined. But direct exports are close to 1%, and this is one area where we have one new order, which is for farm equipment direct exports. Right. And sorry, the deemed exports, would you have a number in terms of the contribution in direct exports for farm? Yes, just a sec. Around 10%. Sure. And you did mention about the weak outlook for CV exports. Anything on the farm exports? What is the outlook for the industry, and how are you looking at the industry for this year and the next based on your audience? farm exports, as we are working a lot with two large clients. They have plants in Europe as well as the U.S. The orders that we have are from Europe right now, and we are working on several projects with them. The first order that we are executing is close to INR 50 crores per annum, but we have several projects in pipeline with the same customer. At the same time, we also have another large OEM from Europe where we are working on developing some projects. Already, the plant approval has taken place. Everything has gone well. We expect farm exports to be a good business. It is a little early to quantify on the business for next year, but definitely, the new businesses are coming up well from Europe for farm equipment sector. But is the industry picking up, or it continues to be weak? Industry continues to be weak. If you look at some of the large players, commentary from CNH or John Deere or AGCO, the industry continues to remain weak to the tune of 10%-15%. But these order winds are because of the current situation, as most of the OEMs are trying to cut on the cost. It's an opportunity from the Indian sector, plus currency is also playing a better role. Sure. And for the farm exports, the deemed exports, how have you delivered in terms of our growth or our performance in this quarter? Yes. It's flat. It's almost flat. Understood. Related to your industry decline, right? Yes. Yes. Yeah. So just one other question I had was on the CV domestic front. While you are indicating on order wins, and you also indicated the front axle beam is ramping up, but at the same time, you mentioned we have grown in line with the industry. So I mean, what are we missing here? I mean, we thought we should be outperforming the industry, right, because of the new orders. Any? Some of our customers, if you look at, because we are not major suppliers, we are large suppliers to one of the OEMs, and that particular OEM has kind of witnessed a sharp fall specifically in the month of June. The production levels were really low because of the AC cabin norms. Overall, if you see, particular OEM has gone down by almost 10%-12%. So despite of that, if you look at our growth, our numbers, it was kind of flattish. Plus, some of the new businesses have already started taking place in terms of the front axle beams, but we have yet to see a big quantum coming up from that business. Sure. So that should start ramping up from Q2, and that should help in our outlook for 2024. Yes. Yes. Got it. Thanks. That's it from my side. Thank you and all the best. Thank you. Our next question is from the line of Vijay Pandey from Nuvama. Please go ahead. Thank you, sir, for taking my question. I have a couple of questions. I wanted to check on what's the impact from the raw material pricing or steel inflation in terms of realization? It was close to INR 4-INR 5 a kg. Okay. Yes. So if you see in the percentage terms, it's close to 3-3.5%. Okay. So that would have not been the case. Our prices would have been around INR 250 per kg, INR 250-INR 255. Yes. So despite the fall in raw material prices, the realizations remain flat, which shows overall improvement in the realization despite falling steel price. Okay. Secondly, sir, can the North America order for the industrial business, do you have any chance for interaction? How the tariff situation will work? Who will be bearing those incremental tariffs? Will it be us? Will it be the OEM, or how is it going to be? And is there any risk of substitution from other players? Are we looking to potentially do a round around, do an export to another market and then export to the U.S.? Are we thinking on that line, or how is it? No. So our direct exposure to the U.S. currently is around 3-4%, where at the moment, we are not selling on the basis of DAP. So we are not in discussions for the tariffs at the moment for this business. For the new businesses where we have, we were expecting U.S. exports to be 10-12% by next year, as some of the new CapEx is done around the U.S. market, and order wins were already there. For those customers as well, our Incoterms are not DDP. But if the tariff settles at 25-26% for the automotive components, I think we are in a safe situation because if you look at the currency has played out well. The steel prices have gone down from the settlement which has happened in the last two years. We are not looking at sharing these tariffs at all for the businesses, as we work on a model basis where the model is completely signed off with the OEM. In terms, we will not be under the pressure to pass on any of the tariff increases. But if North America will see a slowdown on the PV side as well as on the industrial side, it can impact the numbers, but not the margins. Okay. We will not be bearing that tariff impact. Probably it will be more by the OEM. Yes. Okay. Okay. And just lastly, sir, one more question I had was on the how do you see the utilization moving forward? Should we the machining utilization, because it came at 77% for first quarter, should we expect it to return to around 84%-85%, which was seen previously, or will it be below 80%? Yes. There is just a capacity addition, which has recently happened for which we'll be ramping up very soon. So that is the reason it looks low. But as we ramp up on the new projects for which already we are just waiting for the green signal, these levels will again improve to 84%-85% levels because we have invested close to INR 110 crores in quarter one on the new line. That is the reason it looks slightly low. Okay, sir. Thank you. Yes. Thank you. Thank you. Our next question is from the line of Akash Vora from Dalal & Broacha. Please go ahead. Yeah. Thank you for the opportunity. Sir, firstly, I'd just like to complete one of the questions my earlier participant had asked you. So basically, I think we have reported a total exports of 16% this quarter, out of which you mentioned that around 9-10% is CV, 1% is direct exports for farm equipment. So the balance I can consider for industrial is it, right? That's correct to understand, right? Balance 5-6%? Yes. And then again, you had mentioned earlier that you all are starting to win quite a few orders on the farm equipment side, especially on exports, and those are direct exports to OEMs and not via the Tier two, Tier three players. So just wanted to ensure that we also have a lot of deemed exports, right? So it will not be the case now that our deemed exports will go down and our direct exports will increase, or this is fresh new business coming our way, right? No, no, no. No, no. These are all fresh new businesses. It has nothing to do with the old deemed exports. It's not a conversion. Wow. That's great to hear, sir. Now I'll come back to my question, sir. So two questions from my side. Firstly, sir, I just wanted to ensure that we have one new industrial program starting Q2 onwards and two new PV programs starting from Q3 and Q4 respectively. So I just wanted to ensure that those businesses are on track and not hampered by the current tariff uncertainties. So right now, as per the latest announcement, PV business stands at 25%. Sorry, the auto component business to U.S. stands at around 25%-26% tariff. And with that, the last discussion that we had with our customers is fully protected because we are the only company where the testings have been done in the last two years. So we don't see any threat of business on ramp up on those. Only thing is that we have to see how the volumes will look like next year in U.S. for these passenger vehicles, for these models. So otherwise, in terms of tariff or in terms of ramp up, we don't see any threat. Understood, and sir, I wanted to understand. I mean, overall, I was just looking at the industry numbers for the farm equipment on the domestic side have been pretty strong, almost double-digit, 10%-11% kind of a growth. Why are farm equipment domestic business being slower in terms of growth, like around 7%-8%? Any specific reason? It could be depending on customer to customer. It will vary by 1 or 2%, but we are more or less aligned. I don't think it depends on the production or some stock levels over there. More or less, it is kind of aligned only. Okay, and if I have to ask the overall outlook for farm equipment and CV on the domestic side for FY26, I mean, what kind of growth are you looking at on those two segments in domestic? On the domestic side, I think we'll be outpacing the growth on the CV side in the third and fourth quarter, depending on the ramp up of the new products that we have launched on the CV side, and should be expecting a good single digit kind of a growth, high single digit kind of a growth on the CV side. On the farm side, again, we should be looking at high single digit growth as we have started to ramp up, started to see some green shoots, and production levels are improving for each OEM, so it's a positive sign as of now. We have to see what happens in third quarter, but second quarter, we are seeing till Diwali a good production rate from the farm equipment sector. Understood, sir. That's helpful. I'll come back and look into it. Thank you. Our next question is from the line of Aditya from Old Bridge Mutual Fund. Please go ahead. Hi. Thank you for the opportunity, sir, and congratulations on the set of numbers. Sir, my question is on the farm equipment. Aditya, sorry to interrupt. Your voice is very low. The audio is very low. Can you? Hello. Is it okay now? Yes, sir. Yes, sir, now it's loud and clear. Please go ahead. Yeah. Yeah. So my question is on front axle beams. So you said you are expecting 35,000 units of front axle beams to be delivered this year. So what would be this number for last year, sir, in FY 2025? We'll just confirm you the number, Aditya. Any other question you have? Okay. Okay. On this part only, sir, so we have seen Happy Forgings making close to 280-290 thousand per ton kind of realization in crankshafts. So similarly, what kind of realizations are we expecting in this new part that we have developed and ramping up? Our average realization today stands at almost INR 250 per kg. But our crankshaft realization is much higher. Crankshaft being 55%-60% of our business, the realization is higher, but we also have a legacy business which is as forged. On the front axle beam business, the realizations will be in a range bound of INR 180-INR 220 per kg. 180 to 220. As the machining percent, yes, as the machining percent is not as high. So last year numbers will be in the range of 3,000-4,000 units for the electric front axle beams and some new launches that we have done. This is basically going to 34,000, 35, expecting to do 35,000 kind of units this year, right? Yes. Yes. All right. All right. Good to hear that, and second, so just a follow-up on that, so going forward, what are the kind of expectations? How much of the revenue can we expect from front axle beams coming from in the next year? There have close to INR 50 crore of revenue coming from front axle beam business. This year, probably in a range of INR 30-40 crore can ramp up to INR 50-60 crore next year. All right. All right. One last question on the PV part. So in PV, currently, we offer crankshafts and there are two, three more other products that we have. So are we developing new products to be delivered in PV? Do we see gaps in the market where we can deliver such products and have a better market share there? Yes. We have seen a lot. We were working with some of the North American clients. They are not willing to invest on their own facilities with regard to some of the suspension components. And going forward as well, once the tariff situation is clear, I think we'll get a lot of clarity. We have put in a lot of projects in terms of new developments in North America. And yes, these are again suspension components and new product range for us. And on the electric side as well, we did deliver front steering knuckles, which was the new product in the market. Unfortunately, the EV market in U.S. is seeing a significant fall, about 40% fall in that business, but it's still ramping up for us. Okay. Okay. Thank you. Thank you so much. Thank you. Our next question is from the line of Mitul Shah from DAM Capital. Please go ahead. Yes, sir. Thank you for the opportunity and congratulations on a relatively much better performance compared to other forging companies in this environment. Sir, first clarification, as you highlighted, roughly about 3-4% is the export revenue direct to USA. On that part, though it's small, what was the tariff impact during the quarter, whether we were able to pass on or for the time we have absorbed it in this, and what is the amount? Thanks, Mithul. For the business that we do for North America, for us, we have not kind of passed on because the non-DDP terms that we have set with the client is not duty paid. So it's like in certain cases, CIF or DAP. So we are protected over there. We have not passed on any tariff cost to the customer. So I'm still not getting clearly that that means we absorbed it for the time? No, no. It's paid by the customer, Mithul, because the Incoterms for these deliveries are not DDP. These are CIF in most of the cases. So it's not our liability. We are not absorbing anything. We are not absorbing anything. Okay. And second question is on your future growth plans. As in previous call, you highlighted that though U.S. is very small, but future potential on various auto as well as non-auto side, including oil and gas, all lies in the USA. So that is a very important market for us. So in case this situation doesn't normalize too much or though tariff may settle down at certain level, but if still issue persists to some extent, what could be our plan B on this side in terms of the export other than USA? So Mithul, as of now, it looks like it is around 25-26%. But if we compare with some of the other countries, probably it is 5-6% more than that, which will not impact exports to U.S., what I can see. Because the sourcing will happen and manufacturing for these products as of now is not much within U.S. So we don't see any major impacts coming on that side. Only on the PV side, certain capacities are available with North American OEMs, which they can go live once again. But certainly for our projects, as the testing has happened with us and no OEM has invested in the capacity, we expect the business to remain as it is. But for the newer projects, we still have to study how the market will react. Because right now, the discussions are ongoing, but every OEM is actually looking at clarity on it. But the industrial order wins that we already have in place are from Europe. And again, that is ramping up, for which already the CapEx is going on well. There is no change in any CapEx plans. What I'm asking is that because in our peer group, be it a leader or second, third, all these players are having sizable export to the 40%-45%, and within that, North America is nearly 60%-70%. So in both the cases, we are lacking, or I would say it's a growth opportunity or area of improvement or focus for us. So export is very key, and in that, North America becomes always a dominating geography for us, so. No, that is okay, Mithul. But so far, the products we have developed, we are not alternate to the U.S. manufacturers. We are either alternate to a Chinese manufacturer for our products, or they were doing it in-house. So the plan for them is not to manufacture it in-house, which they have already offloaded. And that is the reason the project which is going for the industrial engine side, the line is almost ready. The testing is kind of about to be over, which will be ramping up very soon. The business shifted from China. And not only it was also costing the forging conversion. So we remain strong on the North American business, given the current environment. It should not be 50-60% on auto components, but 20-25% on auto components is still digestible. I think it'll still be a win-win situation that we can grow business in North America. Okay. And last question on this new project of this new CapEx INR 650 crore for heavyweight forging components, primarily from non-auto side. So whatever is initial discussion, any order visibility, or based on the discussion with the industry, within all these sub-segments, such as defense or railway or aerospace, which segment you are finding is getting better traction or in a very first or two initial one or two years, which segment will be the larger pie of the revenue? We have already received orders from the wind sector, and these are very large components up to the weight range of 1.2 tons. And also on the first order that we have received for large engine families, which will be ultimately delivered, those engines will be delivered for data center application, which is a large order of almost INR 180 crores as a full machine order. I think these are the two large orders which we are starting on a priority for which machine lines are also getting established. And then there are subsequent orders coming for large crankshafts as well. 180 crore is annual, or it is an over lifetime order of one year? Annual. And 60 crores is also annual order. Lastly, anything on the defense side, any visibility or any prototyping we have submitted, anything? We have quoted certain projects, but yet to receive the green signal, but we have started participating in the tenders for some of the parts, sir, and we are hopeful that we will have a breakthrough very soon. So that means we have participated in tenders. That means we got initial approval right for the on the. Yes. Yes. All the initial approvals have been received, and we've started participating in the tenders. Okay. Okay, sir. Great. And all the best. Thanks a lot. Thank you, Mithul. Thank you. Ladies and gentlemen, we request you to restrict to two questions at a time, please. We'll take our next question from the line of Preet from InCred AMC. Please go ahead. Thank you for the opportunity, sir. I would like to ask about the revenue guidance. Last quarter, you mentioned that you are guiding for around 50% revenue growth this year. Now, considering all these headwinds which are happening in the sector, are you still positive on this guidance? And what would be your growth outlook for next three years? Can you just repeat your question in the beginning? Your voice was not very clear. Preet, can you use your handset mode, please? Yes. Last quarter, you guided up around 15% revenue growth for the full year. I would just like to ask, do you still maintain this kind of growth outlook? And also your growth outlook for next three years or five years down the line? Thank you. We expect last year, as the industry has witnessed a sharp fall, even this year, if you look at domestic as well as export markets, we have seen a sharp fall because of the CV market not performing well. Even the farm equipment sector, on top of last year's numbers, is down by almost 12%-15%, impacting our domestic as well as deemed export business as well as the direct export business. The way we have seen is that we have just compared our numbers. We have lost almost 8% business of last year in June quarter. The growth was around 3.5% in terms of numbers. If we exclude the steel price impact, it was close to 6%-6.5% growth for Q1. And so basically, the way we have seen is that almost 15% growth is there in the company just on account of new product developments that we have done. So the way we look at it is that we are generating 15%-18% kind of growth from the new businesses. It is just that the markets have to be stable or markets have to start performing well. If the markets are coming back to its normal levels, we will definitely start seeing a bigger growth. But in terms of the new product acquisition and new developments, we are very clear that the company is doing its best and is picking up better businesses in terms of realization and profitability, which will kind of help us once the market is back. We remain bullish on a medium-term basis on kind of 15%-18% kind of growth, which we have been doing in the last 10-12 years. Thank you, sir. That was helpful. One more question on CapEx upfront. What are you planning to do CapEx for this year and how much you have already done in the June quarter, till June quarter? So this year's plan is close to INR 300 crores, excluding the CapEx on the solar side. So it'll be close to INR 300 crores. In quarter one, we have done close to INR 120 crores in quarter one. Cumulatively, it's close to INR 300 crores, including advances for this year, excluding the solar CapEx. If the solar CapEx happens completely in this year, it'll be close to INR 60-INR 70 crores addition to that. Thank you, sir. I'll join back in the queue. Thank you. Next question is from the line of Saket Kapoor from Kapoor & Co. Please go ahead. Namaskar, sir. Mr. Kapoor? Thank you. Please go ahead. Yeah. You can hear me now, ma'am? Yes. Yes. Thank you, ma'am. Please go ahead. Namaskar, sir. And thank you for this opportunity. Sir, so I just joined late. So you just alluded to the fact of a 15% revenue growth for the current financial year or for the ensuing year also? If you could just repeat your statement. Talking about the medium-term outlook, not for this because we have already quarter one is already gone. It's a medium-term outlook. And if you see, if you look at it, industry dynamics plays a major role in this. We are still waiting for the tariffs to settle. But yes, for the new projects which are in place and for the new businesses that we are picking up, the new businesses are delivering new revenues to the tune of 15%-18%. It is just that the old businesses, all the industry has to perform. So if that performs well, I think we should be looking at higher kind of growth numbers in the years to next year or probably next to next year once the industry is back. So I'm kind of giving you a medium-term outlook. Sir, in your annual reports, your annual results, and your investor presentation, you alluded to 1,600 crore worth of new orders for the PV and the industrial segment. So you are alluding to this getting executed. I think so you mentioned about 250 crore of peak annual sales revenue. This is what you are alluding to will be at the high margin and will be helping us in achieving this 15% growth going ahead? See, our endeavor is to pick on new businesses. And as already explained, even in quarter one, the new businesses have delivered close to 16% kind of growth. It is just that the old businesses were down to the tune of 7-8%, which has kind of resulted in a lower growth number. So it is because of the industry trend. Because if you look at the current situation, the growth for the quarter one, excluding the steel price, is close to 6.5%, 6.5-7% for Q1 if we exclude the steel price. And so that is for the Q1. And that has come majorly from the new projects, majorly from the new businesses that are picked up. And industry, if we see, will come back, say, in next three to four quarters. I think the growth numbers will look a lot better. Thank you. We'll take that as the last question for today. I will now hand over to Mr. Ashish Garg for closing comments. Over to you, sir. To conclude our quarter one performance reflects a resilient business model, a well-calibrated growth strategy, and the collective strength of our teams in navigating a complex operating landscape. We are confident that the investments we are making today in capacity technology and customer engagement will lay a foundation for long-term sustainable value creation. Thank you for your continued support and confidence in Happy Forgings Limited. 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. On behalf of Happy Forgings Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.