Ladies and gentlemen, good day, and welcome to Harsha Engineers International Limited Q1 FY 2027 analyst and investor earnings conference call. 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 touchtone phone. 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, Mr. Rangwala. Thank you. Dear friends, welcome to all for our quarter one FY 2027 post-result update call. As per the normal practice, our CFO, Mr. Maulik Jasani will take you at length through our key numbers. However, I am assuming that most of you would have had a chance to go through the same. At the outset, I am happy to inform that our quarter one FY 2027 performance has remained highly satisfactory in line with management plan and expectation, except for some minor aberrations, which I will talk about shortly. As you would have seen on a consolidated basis, we have posted a 25% growth in quarter one on year-over-year basis. This growth is largely due to a consistent strong top-line growth on around 21% posted by our India engineering business, which comprises of company, HEIL, and our wholly owned subsidiary company, Harsha Advantek. It is also noteworthy to mention that in spite of historically established fact that our last quarter performance is generally the strongest. In quarter one, our India engineering business, we have posted a strong 6% growth even on quarter-over-quarter basis. At the same time, you would have seen that while there is an EBITDA and PAT growth in our India engineering business in quarter one on YoY basis, there is some de-growth in margin on quarter-over-quarter basis. This is attributable to three specific factors. Firstly, in quarter one of this year, our average raw material costs have gone up by around 68%. As you are aware, we follow a pass-through mechanism in most of our customers. However, there will be a lag of one or two quarters that we should be able to pass through this cost increase in the subsequent quarter. Another factor which has impacted the margin of India engineering business is a foreign exchange loss of around INR 4 crore, which is due to certain technical accounting reasons. To offset as per Indian Accounting Standards provisions, foreign currency fluctuations relating to FX cash flow hedges are part of other comprehensive income till they are realized and settled. The FX losses of around INR 4 crore is due to this accounting effect of realization of cash flow hedges lost in the current quarter. However, going forward, we do not expect the same to have a material adverse impact on the P&L. Third specific reason is also an increase in our indirect material costs, like oil, chemical, packing material, due to inflationary pressure. You are aware of the war breakout during first quarter, and you all saw that. This has increased our cost in quarter one by approximately INR 3 crore. However, the most significant impact is raw material costs increase pending pass-through, as explained above, which will be normalized going forward. Talking about our specific growth components, I am happy to state that our primary product, which is cages, we are continuing to see good demand traction and offtake both in India and outside India. In India, this is driven by a good demand for cages from our customer whose offtake has increased matching with their own growth plans. This includes demand for facilities recently set up by our MNC customers in India. Over and above this, we are also seeing a good traction from other major Indian bearing players. We believe this reflects a continued strong growth in the Indian domestic market, aided by good industrial demand as well as demand from automobile sector. A part of this also is attributable to increased global demand witnessed by our key bearing customers. We are also seeing a strong traction in exports from India. Our exports from India in quarter one FY 2027 stood at INR 139 crores. We have reported almost 22% growth on YoY basis and 11% growth on quarter-over-quarter basis. We are also seeing a good growth in Europe, U.S. and all other key markets backed by continued increase in industrial demand in these geographies. Talking of our key growth drivers, first and foremost, sales of bushing in quarter one stood at around INR 34 crores, reflecting almost 35% growth year-over-year basis. We have a strong visibility on this order at hand and good average pipeline. So fairly confident of achieving a targeted sales growth of bushing around 30% this year against last year's INR 127 crores. Equally encouraging is the stamping sales, which stood at around INR 19 crore in quarter one. So it is showing a year-over-year basis, about 31% growth. We have quite a few products which are either developed or under development, specifically in the category of white goods, things like compressor components and so on, as well as railway seal inserts and other automotive stamping products, both which we have been developing over the past 18 months, which gives us confidence that we should achieve about 30% growth this year as well in the stamping against sales of INR 60 crores we achieved last year, FY 2026. We are also witnessing a strong demand of late in the segment of large size bearings. Though quarter one sales appears to be lower at around INR 10 crores. We believe that order books on hand and pipeline in this segment, basis of this, we should achieve a good 50% growth in spite of first quarter numbers in current financial year. Over last year, we did about INR 49 crores. Talking of Japanese customers, our quarter one FY 2027 sales stood at around INR 21 crores, showing about 25% year-over-year growth. However, on a full year basis, we expect only a modest 10% growth in sales of INR 72 crores in this segment. Given the fact that entire process of development and conversion is quite slow, but it is reassuringly positive in context. Talking of our foreign subsidiary, Harsha Advantek, although quarter one sales at around INR 30 crores appears to show only a modest growth of 7% on QoQ basis. We have good visibility of sales which progressively coming through every quarter and our annual sales target in Advantek could be in the region of about INR 140 crore plus this year against INR 43 crore achieved last year in FY 2026. As the scale of operations go up, we expect Advantek to be breakeven by the end of current financial year, FY 2027. It has reported a loss of about INR 4 crore in first quarter FY 2027. As you might be aware, we have already announced the CapEx plan in Advantek for the second phase of expansion, which is for basically expanding the capabilities in bushings as well as stampings and large size bearings. Turning to our foreign subsidiaries. First, talking about Harsha China, things are looking quite stable and satisfactory. We believe that Harsha China should report an overall growth of around 10% in current financial as against sales of about INR 120 crore achieved in FY 2026, with the EBITDA margin in the range of about 12%-14% and a decent PAT range of around 6%. We have already commenced the implementation of a greenfield expansion project in China after securing required debt funding at a very attractive rate. This expansion is focused on creating capabilities for our key cages as we expand the product portfolio as well as markets in China. This project should be commissioned by quarter three of next financial year, and we should see a full impact from FY 2029 onwards. Lastly, talking about our aberration, which I hinted earlier, Harsha Romania continues to be negative territory. This has reported a slight growth in top line. However, quarter one FY 2027, there was a one-time foreign exchange loss of around EUR 2 crore because of the adverse currency movement between the local currency RON and EUR. Still the operating loss is continuing, but we are putting stronger focus in improving the product mix by pushing more premium and to get better margin and also reducing the cost. We have also made a strategic change in the top management by bringing in a CEO for our Germany subsidiary. While our endeavor will be to try and see that Harsha Romania achieves breakeven in two, three years, there will be some losses in the current financial year. However, the combined loss between the two foreign subsidiaries should reduce to much lower single digits if not become fully positive. I will end my presentation with a reaffirmation that we are confident of continuing to grow strongly in the range of high teens and also achieving a consolidated sales growth of low to medium teens and we expect the bottom line to grow more strongly because of the combined impact of all the positive factors we have mentioned. I would like to thank you for your continued confidence and support in Harsha. I think I'll ask Maulik to take us through his presentation and the numbers before we take some questions. Thank you, Mr. Vishal. Hello, everyone, and good afternoon. For the quarter ended June 2026, our engineering business at consolidated level has achieved a top line of INR 421 crore against INR 382 crore in the immediate previous quarter and INR 349 crore in the same quarter last year. We have achieved consolidated EBITDA for engineering business of INR 69.8 crore in the current quarter against INR 77 crore in the immediately previous quarter and INR 65.3 crore in the last year same quarter. We have witnessed a good demand across all revenue segments while EBITDA margin having impact on account of the material base pass-through as well as exchange rate impact as discussed. In solar business, we have achieved revenues of INR 36.3 crore and positive EBITDA of INR 2.82 crore for the current quarter. Overall working capital cycle at consolidated level is around 115 days against 130 days in the previous quarter. The company has incurred a CapEx of INR 37 crore in quarter one at consolidated level. For the quarter one, FY 2027, our revenue from bushing was around INR 34 crore, stamping INR 19 crore, LSB INR 10 crore, and Japanese customers INR 21 crore as already discussed. With this brief on the financial numbers, I request operator to take the Q&A from the participants one by one. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask the question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Varun Jain from Dolat Capital. Please go ahead. Good evening, sir. Congratulations on a very strong growth numbers. Just on this, sir, I wanted to understand how this growth came, like which segments performed so well. Did you see a broad-based demand recovery in Europe or was it India? How did such great numbers come? Yeah. It was more broad-based as I mentioned earlier. We see industrial demand overall strengthening and as well as European demand also recovering. So combination of both those and actually the growth we are seeing across. It is very encouraging in that sense. Okay, sir. For FY 2027, what kind of overall growth rate do we see? Will 20% be possible with this momentum? I think 20% is a very tough stretch. We definitely expect mid to high teen numbers in India and then low teens for FY 2027 overall is our general expectation. Okay, sir. Year-on-year gross margins have fallen by 150 basis points. So this RM increase is happening in which material? Is it in steel, brass, polyamide, or is it mostly overheads? The raw materials for specifically last quarter, it happened across materials we use brass, copper, zinc, steel, as well as polymer. We are seeing that impact visible across all the materials. But last year, the major focus was on the higher metal prices on the brass front, which is combination of copper and zinc. But this year starting, we have witnessed that across the board, maybe part of the impact of the global conditions and scenarios. But it should be coming through as this year. Got it. Sir, on the foreign front, we grew well this quarter also. But still, the EBITDA margins for the foreign business fell from 1.5% - 0.3% year-on-year, even though we grew revenues 20%. Why is the operating leverage not coming, and are we able to move from casting to cage, especially in Romania? We are working to do that, increasing more additional cage revenue. At the same time, there was a big impact of raw material prices continuing to increase and actually negating some of the improving situation on the revenue side. As Deepan mentioned, we should see there is an impact in Romania on the exchange rate fluctuations between the Romanian local currency RON versus the borrowing material euro. It is more of an accounting impact considering that majority operation in Romania is also fed by you. Okay, sir. Thank you. I will come back in with you. Thanks, sir. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Amit Anwani from PL Capital. Please go ahead. Hi, sir. Thank you, and congratulations for the good set of numbers. First question, sir, again, a follow-up on Romania. You said probably collectively the two subsidiaries will have lower losses. What kind of loss we are building in for Romania? That is one. Second, you said there was a forex impact also this quarter. Even keeping aside the forex, how was the performance there in terms of volumes? Are we able to move with our objective from moving from semi-finished to the large cages? Are we really on track to improve that subsidiary or it remains still the status quo? On the overall operation, if we ignore the forex, I think we did not significantly improve. We did have a little bit of improvement. Again, I mentioned in the earlier answer, we also saw an adverse effect of increasing copper prices, and that had some impact on the result. On moving towards more cages, we are working towards it. Right now, we don't have a significant number to show for it. However, we are seeing a pipeline in Romania improving towards cages. That's what it is. We have said that the lower single digit, maybe 2, 3, 4 crores, combined losses could be there as against INR 10 crores we did last year. Okay. Is it like China will improve further and Romania will deteriorate further? Or what's the- Both ways. Both will improve. Yeah. That means Romania's losses run rate will reduce. China is continuously profitable. Let us see. We have to wait for a couple of quarters. If things improve much better, we may say that they will turn into positive a bit early. Wait for one, maybe two quarters, then we should be able to give you a much better picture. Yeah. Now, sir, on the other businesses like bushings, stamp components, you talked about 30%+ growth. Is it the wallet share, new customer, and will this momentum is something which should continue? You have done a CapEx in the past on bushings and stamp components also. Just wanted to have a color whether this is something which will continue at this rate, and is it a wallet share increase, new business? Yeah, that's what I Yeah. On the bushing side, it's a conversion which is supporting the growth. We are not sure how long this will continue, but we expect at least a couple of years for this conversion effect to continue. Part of it always will be wallet share as well. On the stamping side, we are adding a lot of new products which increases, which is one of the reasons we are seeing growth there. We have a very strong pipeline of new products coming in or have started but will be matured over the next one year also. Right. Lastly, on the large cages, revenue was about INR 10 crores and kind of flattish still, we are talking about 30% growth. I recollect we have been focusing to have a very strong growth from the large cages in the past as well. Just wanted to understand, is it a particular customer or there has been delays in off-take? What is the reason for Q1 coming so low and still you're confident of 30%? What is happening in the large cages business? Also, in the large size, Q1 was aberration, partially driven by the large size capacity at our new facility are still struggling. Still struggling to ramp up and respond to the demand. We see that demand is there, and that's why the optimism in spite of tough numbers for first quarter, that we are fairly confident of even 30%+ in that quarter. There's a good visibility. We have a nice order book pipeline that we can see. That's why. In the large cages. Yeah, of course. And sir, in the large cages, I understand it's a value-add business also, and we are at probably not a very high base. Is it that we're trying to add more customers in the large cages or trying to leverage as we probably were trying in Romania also earlier, with the same customer? So, what exactly can drive your large cage business in the coming quarters? It is primarily we are trying to grab a bigger wallet share there as we do have a very low wallet share when it comes to larger size cages with our customer. We are trying to grab more of that. That is what in principle is happening, and I think that is the driver and makes us feel confident that we can really achieve that. Understood, sir. Thanks for the knowledge. Thanks. Thank you very much. Next question is from the line of Vaibhav Shah from Equirus Securities. Please go ahead. Sir, congratulations on a good set of numbers. I have only one question. Could you, sir, update on how ongoing brownfield CapEx in China and recently announced HEIL phase 2 CapEx is progressing, and what will be our CapEx guidance for FY 2027 and FY 2028? On the China front, our phase 2 CapEx, we already mentioned in our presentation, it is on the track, and we expect it to go live in the next year, Q3 around. That's where we are on the track, and building construction has already been commenced and it's ongoing. While on our Bhayla plant expansion, in the current season, we have just hold the building construction, but we expect it to start in this month. That is also on the track. We expect our third building construction also to be completed by end of this year or maybe the last quarter of this year. We will also start. We already started procuring the incremental machineries orders for the new building sites also. Civil construction is on hold because of heavy rains. Because Ahmedabad, Gujarat, we get very heavy rains where it's difficult to do construction. But I think now things are normalizing, should start very soon. Sure, sir. Thanks. What is your guidance CapEx guidance for FY 2027 and FY 2028? We will keep on adding the further guidelines. As of now, our focus is to complete these two major expansions. But we at least expect in the range of INR 50 crores-INR 80 crores as a year-over-year CapEx. But we will give a better guideline in the coming quarter. Yeah. Thank you, sir. Thank you for answering. I will get back in the queue. Yeah. Thank you, Vaibhav. Thank you. Next question is from the line of Manish Goyal from Thinqwise Wealth Managers. Please go ahead. Yeah. Thank you so much, sir. Congratulations on very good set of numbers, sir. On the guidance for India engineering, where we are referring to high teens growth. Just would like to know how much would be driven by volume growth and price increase? And the related question as to what kind of price increase we have taken or we will take due to this commodity increase. That was the first question. Second question, within India engineering business, if we were to exclude the bushings, stamping, and large cages and Japanese-based customer, so the conventional cages business, can it still grow double digit? Or probably the numbers, what I calculate, it shows that it is probably 6%-7% growth only. So if you can also give that perspective. Sir, there was a lot of echo in the call, so I could not get the Japanese-based customer revenue for the current quarter and the comparative quarter, if you can clarify on that as well. I will come back on a couple of more questions. Thank you, sir. Yeah. Sir, first is, maybe from last meeting, the Japanese customer in the current quarter was INR 21 crore, against the last year same quarter, INR 16.5 crore. Okay. On your question about the raw material pass-through and the impact of that raw material on our top line, usually, as we know, we have a pass-through with around four months delay. Here I will say, as we discussed in the call, the last year major pass-through happened in the March while steel was range-bound. Some impact there. As we have mentioned in our commentary, this quarter raw material price increased, so maybe around 40%-50% would be the impact on the sales growth of that. Okay? Okay. That is basically 3%-4%, roughly, we can expect price increase. The guidance of hiking growth is factoring this price increase as well. That is what I wanted to clarify. It accounts for it in a little bit way, but we are actually trying to focus on our volume growth. Volume growth. Yeah. We are not trying to predict the value impact. There could be some impact of that, as you rightly mentioned before. Okay. On the cages growth, sir, probably the traditional business, what we have, how should we look at the growth for that piece of the business? We see that cage growth in India will continue to sustain on variety of factors. Those factors include our natural growth of Indian economy as well as outsourcing opportunities we are getting for supply from India to other countries and so on. Plus, I talked about our customers are already setting up plants to export outside India. All those factors combined, we are expecting good growth of cage business in India as well. I think it should match the growth of the bearing industry in India. Plus whatever extra we take on the outsourcing. But at least 10% in India, and there abouts or even more actually. Okay. And sir, what is the CapEx plan for FY 2027 entire year, sir? Current year, FY 2027, we already announced in the last investor call. Our major expansion is coming into the Bhayla, and also in China Phase 2. Put together, we expect both the major expansion and our regular CapEx would be in the range of around INR 180 crores -INR 200 crores. Two years. In over one and a half years. One and a half to two years. Sorry. Sorry. INR 180 crores -INR 200 crores over two years? This year and next year. So maybe around 70, INR 50 -INR 80 this year, remaining next year. Sure, sir. In the annual report, we have mentioned about basically that we continue to strengthen capabilities in areas such as wind energy, gearbox, specialized railway applications, aerospace and electric mobility solutions. Maybe if you can a bit elaborate and provide us perspective, what are we referring to on this? Second point also within annual report that we see very strong long-term growth by stronger strategic collaborations and carefully evaluating inorganic growth opportunities. Maybe if you can just provide us perspective as to in what context we are seeing this. Let me start with your first point about wind, rail, and aerospace. Aerospace. Yeah. And gearbox, of course. Yeah. Within wind, we are approaching it with a multiple perspective. One, we are present in bushing and we are working to I think there is a lot of typing noise. Is it possible to kind of mute that? Sorry. Sir, I think there is a lot of echo from your side. Very difficult to hear you, sir. Yeah. Looks like some challenges at our end today. I will mute myself. Sure. Thank you. Appreciate that. Right. I was talking about on the wind side, we are working on bushing and actually next step of bushing. Within bushing, we are trying to move to a different set of technology and working closely with our customers on variety of upgrades to that. Also, on the cage side, we are getting ready to cater to that segment and whatever it pertains in terms of size capability, in terms of geometrical dimensional capability, we are working towards that. That's what is happening in wind. Similarly, on the rail side, we are working with our primarily either bearing companies or directly to other companies where we are supplying stamping components for the rail industry. In addition to the cages, where also we are working to develop more products which can cater to the railway market. Those are the things going on in wind and rail. Similarly, in aerospace defense, we are doing a lot of stamping components which cater to that industry. We are working with tier 1, tier 2 defense companies in India for those product developments. They are in a very developmental stage where we are taking those and that's a portfolio. Once they start, they could bring in a different set of revenue. Jumping to the inorganic topic you had requested, or what you had looked at in our annual report. Basically, we are looking at any opportunity which comes our way, which can really enhance our capability while remaining in that specific space of precision engineering. We are looking at those as an opportunity if something comes across. That's not really a mandate. That's not something we are saying that we will go towards that. If right opportunity comes by, we may evaluate and look at it, and that's what we are trying to say. Sure. One more thing was mentioned about EV related products. I think on mobility, we are trying to service that through stamping? Through a little bit of stamping, but also a whole lot through bearing cages, working with our customers on improving the performance of bearing, whatever can be contributed to cages in terms of clean product, dirt-free product or high performance product, and so on. Thank you so much, sir. Thanks a lot. Okay. Thank you. Next question is from the line of Uttam Purohit from VVD Asset Managers. Please go ahead. Yeah. Thank you for your hosting and congratulations for the great set of numbers. My question is on the Advantek side. If you could just share what kind of EBITDA margins Advantek did this quarter and what kind of, because we are planning to close Advantek on that positive, what would be the EBITDA figure for the full year for Advantek? Logically, Advantek will return lower EBITDA than our blended EBITDA from India business in this year, considering it is in the ramp-up phase. But we expect it to match our India EBITDA margin from next year onwards. Currently, the last quarter, obviously because of the major impact we already discussed on the material cost and other, it has a 9% EBITDA. Great. If I look at our standalone engineering business, it did quite well even after all the pressures from metals and everything. If you could just share, I think it did a margin of around 24%. Looking at the price hikes we are going to do, can we look at a better margin going forward? Also I think that 24 is a little high number, and we have shared over past also that because of the lead cycle, some quarters it may appear to be higher and some quarter it may appear to be too low. That's what is going on. In general, we expect the margin in the range of 20%-22%. Yeah. As a normal, sustainable margin. Yeah, normal, sustainable margin. Great. Thank you. That's all my time. Thank you, Uttam. Thank you. Next question is from the line of Varun Jain from Dolat Capital. Please go ahead. Yes. Sir, coming to the solar EPC business. Sir, why is there so much volatility? Year-on-year, the businesses are 120%, but quarter-on-quarter, it is down 65%. So INR 36 crore. What is the FY 2027 outlook of revenue and margins? What is the nature of this business quarter-on-quarter? Yeah. Solar is a very project-based business with the fourth quarter. Usually, it is linked to the financial benefit and so on. So depreciation benefit. We tend to see a very high fourth quarter and usually post that first quarter is lower. Having said that, we did have a pretty decent first quarter relative to last year. On the revenue side, again, we are looking at odd INR 200 crore revenue in this segment. Depending on opportunity develops, it can change a little bit. The margin sustenance on similar about, I believe- 7%-8% EBITDA. EBITDA, yeah. That is the general idea with the solar EPC. It is again, an EPC business. What we do there is primarily build solar installation or solar projects. As I mentioned, it is a very project-driven business. We do not manufacture anything. We design and install those solar plants. Got it, sir. Sir, on the China bit, China plant was earlier stated to start by FY 2028, right? Now if we are planning Q3 FY 2028, then the revenue will really flow in from FY 2029. FY 2028 also, China growth will be very low, right? What was the China revenue and EBITDA, and Romania revenue and EBITDA for this quarter? I think we continue to remain given the consolidated number for subsidiary as of now. We have already given the total profit for that. Okay. Sir, on the CapEx part, was it earlier FY 2028 and now it was delayed? FY 2028 quarter three. Sir, sorry, you are losing your audio. Can you repeat the answer once again? Yeah. Sorry. Our intention, as we mentioned, commissioning of FY 2028 is about operationalizing of our new building. Revenue starting from that period. Okay. On the Japan-based customer, I think this quarter we have seen high growth from 16% to close to 21%. Why are we guiding just 10% for FY 2027? Do we see a downtick in the upcoming quarters and why so? Question of downtick. If you see last year from Japan-based customers we did about INR 72 crores. We believe that the same run rate can continue. It will go up to in the range of about INR 80 crores or thereabout. There is no down. Japan, they are very slow. I mean, lot of projects are under discussion, but we really don't want to because all other three fronts are growing very aggressively. Japan is a laggard in terms of growth, but it is still a growth, and it will continue to be positive. Okay, sir. Got it. And sir for Harsha, can you give us some sense of what is the pecking order in terms of your customers like SKF, Schaeffler, The Timken, NBC? Who are the largest? Who are lower? And what is the customer concentration like top five, top 10? This is only for the India standalone business, of course. India standalone. Okay. I think for us, all these names you mentioned are our top customers. They have a significant share of business with mainly The Timken, Schaeffler, SKF, NBC, ZF Friedrichshafen, Flender. These are our major customers, including, I think I forgot to mention the compressor components customer, Highly and few others. Again, we are supplying to this customer from India since you asked about India, to multiple of their facilities. Even though you can say that my top 10 customers remain almost 80% of our revenue. Spread over more than 80 plants. Spread over more than 80 plants worldwide. Varun, actually in India, I would say not being very modest, we have almost 80%-90% volume share with almost all major customers. Yes, sir. I know. I have kind of visited a couple of plants, and they told me that close to 95%-97% was actually from Harsha's cages. That is very good. Just to kind of double-click on this. The top customer will be like 15%-20% of revenue for you, and will that be The Timken? That is range bound, depend on their growth and their seasonality. More or less, you can say my top four customers keep changing their rank. Okay, got it. Just last question, sir. I think MD sir mentioned that you are working on something which you call the next step of technology in the bushings. Bushings we thought for when we have worked through the next step of technology from bearings. Then what is next to bushings? More precise and more accurate for the next generation of gearbox. As we have explained, the bushings are getting replaced or maybe used for the different size of the gearboxes. They keep on improvising, including the methods and accuracy both. Okay, sir. Okay, thank you, and all the best. Thank you. Thank you. Next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Yeah. Namaskar Vishal ji. Thank you for this opportunity. Sir, I was late to join the call, so if you could just reiterate for the sake of the repetition also, what is our path for profitability for the Romanian unit, first of all? And second point was, we did EBITDA margin closer to 16% for the first quarter. So, with the capacity augmentation and the improvement in volume that we envisage, what should the likelihood in the bank EBITDA we should be for the year as a whole? If any number, you can share. Saket ji, we have already given in our investor presentation, the net loss of China and Romania put together as INR 3 crore, and that is what we have disclosed. We have not disclosed individual numbers for Romania and China so far. And on the EBITDA margin, as we have explained in commentary also, current margin has some impact from the material pass-through. If we expect that metal price will be settled down or remain stable, then we expect even the EBITDA margin to be improved and to match the last year EBITDA margin percentage, which was 18.7. The last point, sir, can you please elaborate your point? Okay. EBITDA is about 18% that we expected, against 15% that we have reported. Yeah. Provided the metal price will be stabilized. Okay. And sir, for the Romanian unit and the Chinese part turning profitable or breakeven, the path which we are going to glide, how long will it take? I think so, lot of course correction was in the process for, especially for the Romanian unit, which you elaborated, I think so, one year ago also. So where are we, sir, firstly, in the restructuring of the Romanian part and in the product part also? There were some very strong set of changes you were envisaging earlier. So correct me there. Where are we there and the path, especially how will this unit start checking and add to the top line and bottom line, or especially the bottom line? Saket ji, Romania will gradually our target is to diminish their losses. As Vishal Rangwala explained in his speech, we have already now revamped the top team. We have put a new CEO. There is a strategy to increase the sale of cages from around 20%-25% to maybe 30%-35%. Still the problem is fixed overheads are high, and unless the key customer who is buying semi-finished casting reaches the previous level, breakeven becomes difficult. That is my challenge in Romania. China is continuously profitable. China, for the last few quarters, we have seen a steady growth. So profitability will range from 12% to 14% EBITDA, even maybe more. So what we have guided is that the combined loss at the end of the year, assuming that Romania will gradually taper, it could be maybe in the range of maybe INR 2 crore-INR 3 crore. Let us see. As we progress, as we see the new team becoming more effective, maybe we can guide you for a better number. But at this point in time, let us take it as this year, minor loss. Hopefully next year, some profit. Okay. And a point on the CapEx that we are doing brownfield one, and especially for Advantek. Sir, how is the order pipeline looking and how are you going to ramp up the facility going ahead? So some more color if you could share, sir. Saket ji, in our ongoing businesses, we are building up the capacity and we are confident to win the new customers' orders. On the bushings and everything, we just responded in the last speaker, that we are working on the next level of advanced bushings also, and that's why we are building up the capacity. Last but not least, on the stamping front, we are exploring the new products which meet our precision requirements. Right, sir. Sir, when we read our invite for the call, we also have Mr. Sanjay Majmudar as a strategic advisor. If you could explain to us exactly what is the role as a strategic advisor in the business aspect, or what has been entrusted to him. Just a basic understanding if that would be okay? Sanjay is a practicing-chartered accountant, and he has supported and continue to support Harsha in all major strategic decisions, including he was part of all the greenfield expansion as well as brownfield expansion. He participates and supports the management and other team members on the various strategic decisions. Okay. He would also be the one who would be guiding you people when it comes to shareholder value creation also. That has been lacking also for a very long time. We hope this should be the time, I think so, the inflection point for the company going ahead. I hope Mr. Sanjay would also throw some light on what steps he would be taking or advising the senior management here, sir, for value creation for us also. That was one small point, sir. Just thought of sharing it, sir. I have been involved with Harsha for last 30 years, and will continue to do so going forward. I am always there. Okay. Okay, sir. All the best to the team, sir. Thank you. Thank you very much. Next question is from the line of Jason Soans from IDBI Capital. Please go ahead. Yeah, sir. Thank you so much for taking my question. Sir, just wanted to know, in terms of the West Asia prices and everything. If I just look at your India standalone margin for only engineering, that was 24.4% in FY 2026. Now, you did mention a band of 22%-24%, which is probably lower from the last year. So probably you're assuming that the RM prices, et cetera, it's volatile. Is that the reason probably you have lowered the margin? Just some clarification on that. We continue to spend on our ramp-up cost and- Sorry to interrupt you. There's a slight echo. Jason, can you mute your line from your side, please? Thanks, Jason, for your query. Thank you. Sir, please go ahead. Yeah. Thank you. We expect the margin point to remain similar, but there is a metal price increase, which will reduce the percentage. We expect that absolute value increase will continue, but definitely percentage will reduce because the material pass-through will enhance the sales price recovery, as we have discussed in one of the previous questions from one of the participants. That's why we have given that little lower guideline. At the same time, additionally, we will also continue to spend on our Bhayla site expansion and the ramp-up cost. These two factors will impact that. Sure. Thanks, sir. So, 22%-24% stays the guidance for the India engineering business. Sure. My next question, sir, this pertains to one more thing I just wanted to ask you in terms of West Asia prices also. I mean, of course, it is still not over, but it's kind of again, a very hanging kind of situation. Do you see RM prices getting normalized going ahead? What is the outlook on that? No idea. As of now, no idea. We expect it to be settled down shortly. Sure. And sir, again, for revenue growth, just wanted your expectations for the Romanian and Chinese subsidiaries. What kind of revenue growth are you expecting for FY 2027? I think Vishal has already answered. For the subsidiaries, we are expecting double digits and low teen. Double digits around low teen. No, sorry, sir. Romania, China together will be less than 10%. Harsha, India will be more than 15%. So on an average, between 12%-15%. Okay. Sure. And sir, just finally wanted to ask you, what is the— I mean of course, Bhayla CapEx is being done, and then the China CapEx also will come on stream in Q3 FY 2028. Sir, just what is the visibility for the demand from both these entities? You spoke in the last call that you need to have a local entity in China for manufacturing. That is very helpful. Just wanted to know what is the visibility of demand for the Bhayla CapEx and the China CapEx separately, if you could mention, throw some color on it? Yeah. We feel fairly confident on all our investment done in Bhayla. We are seeing traction on all the product lines we are working on in Bhayla. Specifically, if we talk about large size cages or stamping components as well as bushing. We see a good visibility and demand coming up for our customer for those products. That is why we are continuing to invest since we announced last quarter second phase of expansion in Bhayla. On China, again, there is good expectation and traction by being local. China being a very good market or very large market for bearings, and we see an opportunity for our quality of cages to get traction. We have a good outlook on both those fronts. China, Bhayla we started much earlier, so we are expecting that to ramp up in next couple of years. China will take at least till towards second, third quarter FY 2028 to start production and ramp up in 2029 onwards. Sure. Just a final clarification, sir. For Bhayla you said that the revenue target is INR 140 crores for 2027. Is that right? Yes. Yeah. Okay. Thank you so much for answering my questions. Thank you. Thank you. A reminder to all the participants, you may press star and one to ask a question. Next question is from the line of Resham Jain from VVD Asset Managers. Please go ahead. Yeah. Hi, good evening. First of all, congratulations on good set of numbers. I have two specific questions. One is on Bhayla ramp-up. Given that you have also launched your phase 2 CapEx before ramping up phase 1. I assume that it is lagged by some demand potential. From a ramp-up perspective, how do you see ramp-up for phase 1 and phase 2? Yeah. I think you mentioned that we started phase 2 because some of the products in phase 2 are little different, even though they are stamping. But phase 2 is also in terms of we are seeing what we invested will get filled up in next one year or less than one year, and then we need to anyway expand further. That's what it is catering to. I don't have a specific number vis-a-vis phase 1 and phase 2. But in past we have shared that Bhayla, we are expecting that it should give revenue by third year, roughly about INR 300 crores -INR 400 crores. That's what we are targeting coming out of Bhayla combined phase 1, phase 2. Okay. Understood. The other related question is, given that most of the incremental growth is either coming from India and specifically Bhayla, where you have higher value-added products, and China, which is more down field, and Romania, where your loss to profit is going to happen. Is it fair to assume that your EBITDA growth will be much higher than revenue? And also your PAT will be much higher than EBITDA because the Advantek is a lower tax entity. Is this a fair assumption? PAT growth higher than EBITDA growth higher than revenue for next two, three years. I think you are right. At least for this year it will be very remarkable because quarter-over-quarter Advantek losses will dramatically reduce. Hopefully, if Romania also starts turning around, it can definitely be higher. But let's confine ourselves to this year. Okay. Understood, sir. Thank you so much, and all the best. Thank you, Resham Jain. Thank you very much. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Vishal Rangwala for closing comments. Great. After a long call, thank you very much everyone for attending this call, and I hope you have a very good evening. We are always available for any clarifications. Thank you. Thank you. Thank you. Thank you very much. On behalf of Harsha Engineers International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.