Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Rangwala, CEO of the company. Thank you, and over to you, sir. Hi, welcome to all of you, for Harsha Engineers Quarter One FY 2025 Earnings Call. As per our normal practice, our CFO, Mr. Maulik Jasani, will take you through the numbers in greater detail. However, I presume that you would have had a chance to look at that same. First and foremost, I'm happy to report that quarter one FY 2025 performance is very much in line with our expectations. Except for continued softness at Romania level, which I will talk about at greater length bit later. As you would have seen, although the top line growth in quarter one FY 2025 appears to be slightly muted as compared to quarter one FY 2024, the profitability growth is quite in line with our expectations. As compared to quarter four, FY 2024, top line is slightly lower on account of solar business due to project nature of the business, and usually quarter one is lean as compared to quarter four. First, if we talk about India engineering business, we have sustained well on almost all fronts. However, more noticeable is the strong growth achieved in the bronze bushing segment, which has achieved sales of about INR 20 crore, largely on account of business coming from our key existing customers who are manufacturing windmill gearboxes and supplying this to Indian as well as overseas markets. I would say that this does not necessarily mean a significant revival of wind segment in the overseas market, but more attributable to increased allocation to bushings as compared to bearings by these customer, and higher share of allocation to Harsha by this customer. As I'm hopeful of bush segment contributing at least INR 80 crores in sales on annual basis to FY 2025. If I talk about you know, outsourcing of cage business and progress related to that, again, this is in line with our expectations. We are continuing to see traction there. While I'm not able to reveal more details, I'm happy to share that the progress in outsourcing project from Europe is quite satisfactory. Further, if we talk of overall India demand position, while there were some indicators of softening in growth, as much as our order book is concerned, we do not see any major impact as yet. At the same time, as indicated earlier, we have started receiving orders from key customers who have set up their new plants in India, more in line with China Plus One status. Further, the business from Japan-based customers continues to grow, though it's little slower than expected, and we are expecting that it will growth will catch up in next two quarters. Thus, we are achieving sales of around INR 18 crore with Japan-based customers in quarter one. And similarly, sales of stamping at around INR 14 crore in quarter one, also quite satisfactory. However, this sale, the sale of large-sized bearing cages, was a little bit soft in quarter one, and largely on account of overall continued softness and demand from windmill segment, as well as the industrial demand, softening in Europe. Coming to Romania, as indicated in the last call, we have adopted a new strategy of aggressively increasing the share of cages as compared to semi-finished, business or a casting business from Romania. We have already received some encouraging new orders for cages, from one of our key customer in Europe, and there are ongoing discussions for additional opportunities with various customers, which is ongoing. The impact of these development on our number is more likely to be felt in quarter three, financial year 2025. However, directionally, we are satisfied with our progress and hopeful of reporting improved results coming in coming quarters, starting from quarter four FY 2025. Further, as predicted and indicated in our previous call, China has continued to perform quite well, with overall demand conditions reasonably positive. Thus, we are confident that FY 2025 in China will contribute positively to our bottom line. So if we combine, you know, annual contribution of our overseas subsidiaries in FY 2025, it should be marginally negative, as per our current estimates. I'm happy to confirm overall, the growth guidance for FY 2025 remains same as per last call. That is, top line growth in range of, you know, about 10%+, as compared to FY 2024, and a bottom line growth expected to be much higher. I sincerely thank you all for continued trust and confidence, and I wish all of you a very good evening. Over to you, Maulik. Yeah. Thank you, Vishal, for the business overview. Hello, everyone, and good afternoon. As we discussed and we have published the numbers for the quarter ended June 2024, our engineering business, at consolidated level, has done the top line of INR 327 crore, against the INR 321 crore, the top line in the previous quarter, in the previous quarter, and against the INR 331 crore in the same quarter last year. We have achieved the consolidated EBITDA for engineering business of INR 62.4 crore in this quarter one FY 2025, against INR 60.6 crore in the last quarter, of the last year, and INR 48.8 crore in the, quarter one of FY 2024. On the back of the strong growth in the bushing business, positive contribution from domestic and Chinese customers, continuing focus on cost and raw material price reductions, along with the better product mix, we have seen the overall improved EBITDA margin at both the consolidated and standalone level. While in our solar business, as we discussed, we have achieved the revenue of INR 16.6 crore, and EBITDA positively of INR 0.71 crore in first quarter. We see that solar business is also having still a good order level, due to focused cost control and favorable Gujarat Renewable Energy Policy from Gujarat government. Overall working capital cycle remains at 153 days, on account of increasing pricing as well as the, inventory in pipeline, against the 141 days in last quarter. We incurred the overall CapEx of INR 42 crore in the first quarter, FY 2025. With this brief on the financial numbers, I hand it over to the operator to take over the Q&A questions from the participants. Thank you. 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 Jason Soans from IDBI Capital. Please go ahead. Yeah, sir, thanks for taking my question, and congratulations on a good set of numbers. So my first question pertains to, I mean, you know, your gross margins have basically driven the EBITDA as well. So just wanted to know, of course, you alluded to certain reasons like increased contribution from bushings. Just wanted some more color on, s o basically it's like a, your gross margin last quarter, Q4, on an average in FY 2024 was around 44%. I'm just talking about a consolidated level basis, which has increased to 51% in 1Q. So it's a considerable jump. So just wanted to know, what are the exact reasons for this thing? Yeah, hi, Jason. Yes, sir. As we discussed, and as Vishal has also pointed out, few reasons over there. One is, the last quarter, if you see consolidated along with solar numbers, then, solar number has been quite low compared to the last quarter because of the cyclical business. That is the first reason. Another reason on the engineering business front, it has been improved because of the lower price reductions into the metal prices, which has not been passed through to the customer yet, and hence we have some benefit in this quarter, which will be passed through as per the pass-through cycle mechanism, as you are aware. And top on to that, product mix, as we discussed, that bushing sales has grown significantly, plus also the sales of the Japanese customers and other customers has grown. Those all put together has improved into the margin percentage. On top of that, the better result from the subsidiaries, especially China, which is positive in both bottom line as well as gross margin percentage here. Sure. Thanks, sir. And just wanted to know, sir, I mean, this level of gross margin, is it sustainable? I mean, you said that the material prices have not been passed on, so it will be passed on. So what do you think is a normal steady-state gross margin, for Harsha going on from here? See, yeah, material pass through is always an ongoing scenario from a sales perspective. So usually 48-50 is our standard range. Yeah, I agree. That's right. Around 50, that should be more sustainable. Yes, sure. Sure, sir. And, so just wanted to know in terms of bearing demand, how are you looking at it from a broader India perspective? Of course, demand is good, you know, India story looking good. Just, some color on bearing demand and localization CapEx of the big three, you know, big three bearing manufacturers are there. They have strong CapEx plans, well-known. Just wanted some more color on the localization and how are you looking at going from a two to three- year perspective? Yeah, that, you know, bearing demand has been fairly strong in India, and primarily driven by what you just mentioned, you know, apart from overall market growth in India. T he fact that our customers are deploying this China Plus One or the India manufacturing strategy, we are continuing to see some growth related to that. And, you know, still a lot of it yet to come through as our customers are setting up facilities. And so, we have some positive indications and higher demand coming in, in next one to two years is what, you know, indication we have from our customer on account of those, facilities coming online. Okay. Okay. Sure, sir. And sir, you did mention that, you know, bronze bushings revenue in this quarter was INR 120 crores, and you're looking at an aim of INR 80 crores for the whole year, so that is good. I just wanted to know, in terms of your regular engineering business, it's having, you know, engineering business as an EBITDA margin of 21%, roughly. So bronze, does bronze bushing give you a better margin compared to that margin? Jason, actually, you know, as a matter of policy, we don't want to go into segmental margins, but just marginally better, but let's work with a blended margin of 20%-21% as a sustainable long-term EBITDA in my engineering India business. Okay. Sure, sir. And sir, just some color on this, you know, some mention that it doesn't mean that the revival of wind market, but there is some increased allocation to Harsha by, you know, your customers. So just some more color, how exactly it is working? Last time you had mentioned that, you know, the bushings are going as a, you know, in the wind, wind gearbox, already pre-installed or something like that. So how is that panning out? Yeah. So, what we actually mean by that is that, you know, our customers, they are increasing the share of bushings. So two ways the share of bushings is increasing: One, by the way they are making more gearboxes which are incorporating bushings. So that's the share increase of bushings. As well as, some customers are actually giving bigger chunk of their bushing business share to Harsha instead of our imported, you know, source. So combination of those two, we are growing within that segment. Okay. Okay, okay. And sure, sir, and, just final question from my side. Just wanted to know, I mean, on a subsidiary level, you have mentioned that your, loss has significantly reduced. It's come to around INR 25 million right now, the loss. So, so just wanted to know, I mean, for the whole year, how are you looking at it? If any number you want to share, or what are the steps you are taking for, you know, rectifying, or reducing the losses in, Romania and China? China, of course, you said, but just wanted to know what are the steps you are taking to do that. And Jason, there have been continuous steps, including the interaction with the customers, cost reductions, improving product mix. So there are multiple steps at a time we are taking for both the subsidiaries, and management is very much focused on ensuring the turnaround of both the subsidiaries, where China is already leading the path. As Vishal has already mentioned in his opening remarks, that for the year, we see that both the subsidiaries put together will give a marginal range-bound positive or negative number on a break-even for the year. That is the target we see based on the current scenario. Sure. Sure. Thank you for taking my question, sir. Thank you so much. Thank you. Thanks, Jason. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Hi. Thank you for taking my question, and, congratulations for decent set of numbers. First question, in your opening remark, you highlighted, about, you know, started receiving orders from, the client setting up, in India, and, this is, amid China Plus One. So wanted to understand, are we building in any revenue, from these customers in our guidance? That is one. What are these customers and what kind of, you know, products? Is it, bushings or large cages? If you could give more color, on this aspect, yeah. So we have, you know, already projected some revenue from that, based on in our projection, and, you know, that's how what we have shared. And it is starting to come into our revenue already. Now, I can't reveal exact product, but it has been, you know, a very large portfolio variety, depending on customer, they are making very different varieties. And it has been almost across the board, product portfolio, which they are targeting to build in India, and we are seeing some demand for that, and we are getting ready in terms of capacity, to match their expectations, as well as doing development where needed. But no, overall, that's... Yeah, so see, one customer whom we all know has already started their production, and yes, we are a major beneficiary. The second customer we are talking about is likely to start around October, November, and we are in advanced stage of discussions for most of the requirements. So as predicted, I think, yes, we are the lion's share in all those incremental businesses. That's all I can say. So any number we are factoring in for FY 2025, if possible for you to share? Overall, when I talk about, it is included in the overall growth, [crosstalk], we already captured that, the Right. Second, on the grow. Higher share of growth, but our consolidated level growth of around 10% captures this very well. Okay. Second, on the bronze bushings, you highlighted, eighty crore for this year. Some more color with respect to how is the CapEx going, and, then what is the target for next year now, since the things have started coming? And is this eighty crore coming from a single customer? That is my question. Yeah, this INR 80 crore revenue is coming from more than one customer. And you know, we don't have exact indication for next year, so little too early for that. However, we have worked with customers to build capacity, prepare for next year, so this is an ongoing conversation. We are very positive for growth next year, but at this point, I don't have a number. It's bound to grow, but how much, I think as we move ahead, we will be able to share. And sir, CapEx progress on bronze bushing? Yeah. So, so this is ongoing. We have continued to invest. We had invested for, you know, current year, with current revenue, we have already invested last year. And, we are building that, third facility and, some CapExes to support this bushing growth is ongoing and planned and, in pipeline for next year. More precise numbers are, you know, under evaluation, under discussion, with customers. So the progress has been on the CapEx very well. We will likely start that facility, the third site, in fourth quarter, FY 2025. Where phase I includes the investment for incremental bushing capacity. Right. Lastly on, y ou mentioned that the large cages have witnessed some softness from windmill side and industrial side. Is it in India or in Europe? And second thing, at one end, we are seeing that the bushing sales is picking up, which again serves the wind sector. At other end, we are talking about large bearing cages witnessing some softness from the wind sector. So if you could, you know, highlight what is decreasing between these two. Yeah. So, overall, the softness in so large cages are primarily focusing on the industrial. Wind is one of the submarket within that. And, overall, we are seeing a global industrial softening, specifically driven by Europe. So that, that's one of the direct reason, you know, why we see that soft. Now, as I mentioned earlier on the, you know, bushing side, that it's not really the market or a demand, but the conversion which we were anticipating from to gearbox using bushings or earlier not using bushing to converting to using bushing, is what is driving the growth. And a little bit of, you know, with our customers. So, that's why you see a little bit different situation or two different directions there. I think it's a fairly overall wind market is still soft across. So just to add to what Vishal said, you see, while our customers, they manufacture gearboxes, our order book is good, we don't know exactly where they supply. So our assumption is that, yeah, they would be supplying to Indian wind market as well, some portion. India is growing, so there's a mix of reasons, but yes, as Vishal explained, that does not mean that European wind market is back to normal. No. Clearly, no. Understood, sir. Thank you very much for taking my questions. All the best. Thank you. Thank you. The next question is from the line of Harshit Patel from Equirus Securities. Please go ahead. Thank you very much for the opportunity, and, congratulations for a good set of numbers. Can you give a broad geographical split of the exports that we do from India? And where do you see the most pressure on sales going ahead? And I'm asking this because, the large global players in their recent quarterly earnings calls, they have mentioned that they see the most pressure in China, followed by Europe and U.S.A. Is the situation the same or a little bit different for us? If you could give your thoughts on that. So I think I would probably say that it's very similar for us. You know, China is a little bit of a challenging market, and even though there is, you know, across the board from our customer, the pressure of more challenges are visible. However, at this point in time, China, relative to what we were doing last year, is doing better. So we are seeing at least short-term, a good demand, but that doesn't, you know, guarantee that is sustainable and all that. So that risk remains. After China, I think currently we are seeing a clear sign of softening in European markets, and that remains a challenge for us. So I mean, I think and how it, you know, impacts us in Romania, we have talked about, there is some impact of that in India as well. And overall in India, the industrial portfolio has some impact because of that. We remain positive for Asia, India, and U.S., North America. Americas looks fairly decent. So that's how we are right now looking at it. I don't have, you know, specific numbers for this. Sure. About India, you know, standard on India, about 45% is exports, 55% is domestic. Within that 45%, how large would be Europe and China? That's what I wanted to know. Europe is significant. I would say Europe will be more than 50% of 45%. Understood. Yeah, u nderstood. And also, would there be any material difference in the margins that we from exports to Europe versus, let's say, China, U.S.A. or any other part of the world? Not, that's blended, yeah. Keep blended as a guideline. Yeah. Understood. Thanks. Changes by product in some cases, but, well, it doesn't vary by region. Understood. Thank you very much for taking my questions, and all the best for the future. Thank you. Thank you. The next question is from the line of Aayush Rathi from Aditya Birla Money. Please go ahead. Hello, am I audible? Yes, sir, you're audible. Yeah. Thanks for taking my question. Most of my questions have already been answered, but, so you mentioned in the opening remarks and on the last call as well, that, we are on track to meet our target of 10%-15% of the top line, on the top line front. Is it right? Are we still on track for 10%, at least more than 10% on the top line front? Yes. As Vishal said, yes. Correct. On the, yes, we are. On the annualized base, n ot quarter-over-quarter. Yes. And we also mentioned that 25% on the bottom line front. Is that also are we on track on that as well? Not exact percentage, but we've seen much higher growth on bottom line, obviously. As you can see, the Q1 profitability also is better. So I mean, you do your math, but that's all we can say. All right. So this is for FY 2025. And And if you could share anything on FY 2026, are we anticipating a similar kind of growth, is it fair to assume that or? There are two to three factors. It all depends on a few variables, which as on today, we can't predict. Yes, our long-term strategic guidance remains at a 10%-15% top line growth on a compounded annual growth rate basis, and maintaining and slightly improving on the margins. But I would say, A, as soon as our greenfield comes in production, B, our strategy at Romania level actually gets implemented, and, C, certain further improvement in visibility on our key other drivers. I think we will be able to be more specific, say, hopefully by end of Q2 or closer to maybe end of Q3. But you can broadly take a similar 10%-15% overall guidance. Of course, not necessarily then taking the base of 2024, 2025, profit margins would be also in sync, rather than an extraordinarily strong growth over 2025. You get my point? All right. All right, got it. So just roughly doing numbers on FY 2025 basis, FY doing 12%-12.5% growth. So what kind of net margins are we looking at? If you could broadly give me a range, something. Are we going back to our FY 2023 levels of 12%-12.5% on net margin levels? Is that the target? No actually, if you look at—that is, what I suggest is, if you want to do a specific one-to-one call with Maulik and you can do it. But very broadly, if you can see, our net margin on a consolidated basis is because of the subsidiaries and other thing is currently around roughly about 10%-11%. It can improve. Definitely, it should improve. Our earlier estimates are on a higher side. Let us see how it goes. We definitely look forward to improving it. Understand, sir. Sure, sir. The problem is today, it's dragged down by foreign subsidiaries. The moment they are normal, things will improve quite a bit. All right. I get it, sir. Okay, sir, thanks a lot, and all the best for the future. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Shirom Kapur from PL Capital. Please go ahead. Hi, thanks for the opportunity, and congrats on a good set of numbers. I just had a few questions. Starting with, you know, you mentioned that 20%, 21% is a sustainable EBITDA margin in the India engineering business. Though if we see in, you know, last two quarters, we've got about 24%. So, is that, were there any one-offs or so that led to this higher margin and, you know, why is it not sustainable going forward? I tell you, we always work with a set of variable factors. So as you know, we work with a passthrough scenario. Then there are fluctuating commodity prices, correct? So what happens in a particular quarter, if my raw material prices have come down a bit but my selling prices have not adjusted, that quarter looks a little better. So you know what, as a management, our sustainable... Again, we are talking of reported margins versus operating margins. So at the operating margin level, we feel that a long-term sustainable and at India level is 20%-21%. And I think that, yes, we in, in one quarter or two quarters, we have done little better. Maybe in another quarter I may go down a little bit. So it's always better to see on a long-term average basis rather than, you know, extrapolate on a given quarter. That is what our philosophy is. Understood. So when you say operating margin, you mean excluding other income in this scenario, right? 20%-21%, excluding other income. Which is beyond our control, exactly. Excluding not 100% other income other than ERF, and importantly, what Sanjay is referring here is the sustainable operating margin. Including all operating income. Yes, all operating. All operating income. Including, yes. Okay, no, that's clear. Thank you. The next, my next, question is on, you know, your exports from India. So this quarter we saw a minus, 5%, degrowth, sort of, in this quarter. Is this, as you mentioned, largely because of the European demand coming down? Or are we also seeing, you know, which are the other regions that are kind of seeing some degrowth, and those are the regions where there is some growth, and if you could give us some numbers on that as well? Yeah. So effectively, you rightly mentioned, one of the reason of degrowth is the Europe slowdown, and also because of the higher boosting sales and, as well as domestic demand on the cage front, too, which has resulted into the higher India, India proportion in this quarter compared to our previous quarter in the total value. Just to add to what Maulik Bhai said, you see, our problem is that we work as per customer's requirements. So many times, in a given quarter, if their order book doesn't want me to push a little more, it doesn't mean that this is a permanent feature. But I would say broadly, this 55%-45% is the percentage which can be maintained. India is growing more, is one strong factor, but yes, a little softening of Europe, but don't read much into it. Okay. Thanks. Thanks for that. And the last, last question I had is on other expenses. You know, in Q1 FY 2025, if we see it, there's a fairly decent jump in your other expenses to about INR 74 crores versus, you know, INR 70 crores from the last few quarters. And even as a percentage of your top line, the other expenses has increased. So was there, were there any, you know, one-off higher expenses or any, or is this going to be a sustainable rate going forward? Not significantly one-off. It is a regular business expenditure higher, and also because of the recovery of China business, some more expenses over there because of the top line increase over that side. But we don't observe any major significant one-off in the other expenses. Okay, great. Thank you. That's all from my end, and all the best in the future. Thank you. The next question is from the line of Mayank Bhandari from Asian Markets Securities. Please go ahead. Yeah, thanks for the opportunity. So my first question is on the capacity utilization number in China and Romania, both, for the quarter. Yeah, we don't publish effective capacity quarter-over-quarter, but in this quarter, the China capacity utilization has gone up because of the higher demand and higher production happened over there, and which is more than around 55% range. I can just give you. I don't have a ready numbers. Romania remains lower overall, because of the Europe slowdown and even the top line reduced. It would be less than 50% in Romania. Sir, for the whole group, capacity utilization number? Again, we don't make it as a group, but yeah, India, India will be 65%, 70% around. I can give you that number. Because there is, there is a different, we already discussed this in few calls. There is a different parameters on the capacity and different sizes and different materials. But yeah, India average 60%-70% is the range, under the range, yeah. Okay. And on the bushing part, I think you had mentioned last call that INR 200 crore is the potential capacity in terms of revenue. So this INR 200 crore will be derived for this FY 2025, or how do you expect that? Yeah, so, no, FY 2025 by INR 200 crore will not happen. We think that will happen, but it may take another two to three years. I don't have an accurate prediction, but that's the business volume we are trying to target, work with, and eventually reach. That's the idea. And further, we are working to grow this as well from a potential point of view, but too early to give you a number for next year or year beyond that. Yeah, but that's the target over next two to three years. You're right. Okay, next two to three years. Sir, one more thing. I mean, we've been seeing that more major bearing players are increasingly resorting to outsource, increase outsourcing, and you know, the players are doing CapEx in India, bearing players. However, our growth guidance of 10% growth this year is a bit conservative. I mean, are we also seeing, just, I mean, just a clarification, are we also seeing increased cages manufacturing, in-house manufacturing by the customer globally as well as in India? Is it like the outsourcing thing or the incremental outsourcing has slowed down? Just clarification from us. So, phase I, you know, we don't see any increase in insourcing by our customers. We only see a single trend: increasing outsourcing. So even in this difficult market, our customers are working with us to outsource more and more cages. So that is a very constant trend, irrespective of what's going on, you know, in the market. Now, your point about 10% growth, you know, we are talking about 10% global growth. If you look at our revenue on a standalone basis, almost 50% is going globally. On the consolidated basis, about 65%-70% of our revenue is coming from outside India and addressing the global demand. So if you, if you look at market growth globally, and if I, if you look at very long term, on the bearing side, is more like, 6%-7% globally. So, and currently, this market, we are seeing a very, tough market and a degrowth, possibly in, in significant degrowth in Europe and other, pockets. So combination, I don't know what would be the global growth of, bearing and bearing cages, but my guess is it would be, less than 5% or maybe less than 4%. So again, that, that kind of number, we are trying to deliver the 10% growth globally, and that's how I think you should look at it. So India will obviously grow more aggressively, that's very logical. But the problem is, it is offset by very, very slow or even a little, flat or even negative growth at Romania level and very marginal growth in China. That is how it is. Sir, lastly, I mean, if we look at the commentary from the electric vehicle side and globally, there is talk about the slowdown across the globe or increased competitive intensity. So, I mean, just your thoughts on what's happening on the EV side of the business globally? Yeah. So, see, primarily we don't see, you know, very specific input on the EV. You know, most of our products, a lot of our products are sometimes dual use. However, what we are hearing from our customer and customer's customer is that long-term EV direction remains intact. As an example, one of our customer has targeted, shared a target that, you know, the EV adoption or a new EV would be about 30%- 35%, for 30%-40% share of vehicles sold in 2030. So, the overall, that EV growth will continue to happen. Maybe there is a short-term slowdown on that. However, we are not, there might be a minor impact or plus and minus, which we are not clearly able to see. But overall, I mean, our customers are very, you know, bullish overall about it. They are participating in EV adoption and at the same time, you know, getting ready for whatever changes are happening in the market. And we are also, same way, getting ready by, you know, offering more plastic cages, as an example, which support the weight reduction, working on some clean cages and so on and so forth. So that's how it is working so far. Thank you. The next question is from the line of Karan Gupta from InvestSavvy PMS. Please go ahead. Yeah, hi, good evening. Sorry, good? Yes, sir. Yeah, so, my question pertaining to the normal situation, we're not talking about it. Yeah, your voice is breaking. Sir, may I request you to please use your handset? Yes, using the same. Right now it's audible? Yes, sir. Please go ahead. It's clear? Yeah, yeah. So my question is more related to the normal geographic situation. Not talking about the right now current situation, what's happening in Europe. You're saying the degrowth in Europe and maybe in China, PMI indexes are, for manufacturing, are going down, right, month-over-month. But in the normal situation, what it takes to gain the market share in the global market, as you stated in your PPT, 6%-7% of market share there globally, right? So, and India, you have more than 50%, 60% of market share. So now you are expanding global market, it is- Hear, yeah. Hello? [crosstalk] Did you get the question? Little bit sense of the question you get anything? Yeah, yeah. So, Karan, if I understand your question, even at the cost of on certain assumptions, that what you are saying is about my global market share and how I'm going to gain it in a normal situation. Is that your question? [crosstalk] Let me talk a little bit, maybe at the cost of repetition for some of our participants. So one, this 6% itself is a little misnomer in the sense that when you look at the whole pie, but if you look at the relevant pie, then in India, I think our market share is much higher, at least 80%, 70%, 80%, 90%. Globally, if you exclude the unorganized sector and if you exclude the insourced sector segment, where some of, some of the bearing companies are themselves still manufacturing cages, then I would hazard a guess that my market share is much higher than the 6%. So for that relevant market, I would say my wallet share across the world in the top players, SKF, Schaeffler, Timken, would be anywhere between 10%-20%. Some of... In some pockets it is higher, some pockets it is lower. Again, as we have mentioned in your presentation, the growth is obviously continued focus on outsourcing, the conversion of these customers from insourcing to outsourcing. Then specific pockets of opportunities, like in a normal situation, large size bearing cages being one, one area where, you know, our wallet share today is very low. Even within my large existing customers, it is low, so I can go up from maybe 2%-3% now to about 10% over the next few years. Then Japan-based customers, where again, my wallet share is very low, but I have already penetrated, so I can significantly grow on the back of them. And then obviously bronze bushing, stamping, China Plus One. These are the factors wherein a normal situation, I'm fairly confident of doing a 15% average top line CAGR, rather than 8%-10%, and then all these pains that we are currently facing. Okay. So, globally, how the market is competitive in terms of, your bearing cages segment? So locally, what are the competition and challenges you're facing there in normal situation? Yeah, yeah. So in cages, we have three major competitors on the outsourcing front globally. One company is a Japanese company called NKC, who is number one actually, in terms of their standing in this business as well as their wallet share. We come at number two, and taking the same analogy, if I am 6% on the total pie, then NKC is about 11%-12%. And then the third player is a German player called MPT in Germany. The difference, the MPT is much smaller. They may have a 2%-3% market share. Then there's a long tail, unorganized sector, so many other marginal small players whom we don't reckon as competition, because we are mainly focused only on the large, organized, 6, 7 global players of the world, who are my key customers across the world in 60, 70 countries or across many locations. So that way, the advantage which I believe I have, is that I am, I'm sorry, you are not audible. Something is wrong with your line, my friend. Yes, sir, I would request you to please join the queue. Your voice is audible. You can hear me, then let me complete, assuming that that would be- Yes, yes, yes. [crosstalk] You can, you can, go on, sir. Yeah. So this is the competition scenario. India, there is only one small player whom really they don't have the product mix, that bronze, I mean, brass, steel and plastic. I'm the only one having all the three, and therefore, I believe with being in India, large capacities in India, I think we are better placed to face the competition. Okay, thank you. Thank you, sir, for cooperating. Okay. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants that you may press star and one to ask a question. The next follow-up question is from the line of Jason from IDBI Capital. Please go ahead. Yeah, so thanks for taking my question again. So just wanted to just have a slight clarification. So you said, when you said 55% of your sales is domestic and, 45% is exports, you meant on the standalone level, right? Standalone, standalone. Standalone. So 45% exports, out of that 50% is Europe. So that makes it around 22.5% for Europe on a standalone level, right? Yeah. Yeah. Right? Right. Yeah. Yeah. Sure. Sure, sir. Sure. And, sir, just one more question I had, I mean, you know, in terms of when you look at your segmental margins for engineering only on a standalone level, they were around 21.7% for FY 2024. Now, in Q1 FY 2025, you have made 24.7% which is, of course, a good improvement. Now, of course, now you have the elections out of the way and, you know. So do you see increased traction for next year, FY 2025? Of course, CapEx is on a good momentum also. So do you see benefits of operating leverage, more enhanced capacity utilization coming from here, you know, to, d o you see there are more margin levels, without going far into 25%, 26%, from this 21.7% level? Yeah, Jason, I think we already answered the margin questions in one of the other, another question. Where we already said that our blended margin, you should assume 20%-21%, and there has always been a plus or minuses in quarter-over-quarter due to price pass-through mechanism, as well as the procurement mechanism and inventory level. And according to me, on this margin, as we are informing one of our previous call, w e are committed to improve this margin in next two to three years, by 100 basis points to 200 basis points at a consolidated level. And not only in India engineering level, at a consolidated level, we are committed to improve around 100-200 basis. So while, Jason, we are agnostic in a way to elections, actually we were always agnostic to elections. Having said that, if your implication is that, yes, now there will be a more aggressive CapEx, et cetera, et cetera. I think we're very focused on the bearing segment, and I think it's fairly stable. Let's put it like that. Sure, sir. Thank you. Thank you. Once again, more questions. Thank you. The next question is from the line of Shirom Kapur from PL Capital. Please go ahead. Hi, sir, thanks for the follow-up. My question is on your stamped components business, where you mentioned you had INR 14 crore of sales in Q1. Could you give some, you know, outlook on where, you know, what your long-term target is, not only for FY 2025, but, you know, FY 2026, 2027, where, how you see the sales growing here, and what will be the main drivers? Yeah. So on that product line, you know, we are targeting multiple segments, including, you know, household equipment, or appliances rather, and HVAC market, electrical market and automotive as well. So- Railways. Yeah, correct, and the railway market also. So combination of all that, we see a good growth potential there. I don't have a specific guidance for year, next year or otherwise, but from a philosophical and directional point of view, we think that, definitely what, this unit or this subsection, which is, you know, doing a revenue of INR 40 crore-INR 50 crore, could grow towards INR 200 crore easily in a midway, midterm future, is what we see. But we are still working on it, and again, I don't have a very specific guidance on this. Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to Mr. Vishal Rangwala for closing comments. All right. Thank you, everyone for participating in this call, and, you know, we hope you got all the inputs or clarifications needed. Thank you and good evening. Thank you very much. Have a good evening and all. Yeah, thank you. Thanks, everyone.