Ladies and gentlemen, good day, and welcome to First Quarter FY24 earnings conference call of Maruti Suzuki India Limited, as a reminder, all participant lines will be in a listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes, should you need assistance during the conference, please contact an operator. I now hand the conference over to Mr. Pranav Ambaprasad. Thank you, and over to you, sir. Thank you, Dorwin. Ladies and gentlemen, good afternoon once again. May I introduce you to the management team from Maruti Suzuki? Today, we have with us our CFO, Mr. Ajay Seth. From corporate, we have Executive Director, Corporate Planning and Government Office, Mr. Rahul Bharti, General Manager, Corporate Strategy and Investor Relations, Mr. Nikhil. From Finance, we have Executive Director, Mr. Pradeep Garg, and Vice President, Mr. Dinesh Gandhi. The con call will begin with a brief statement on the performance and outlook of our business by Mr. Seth, after which we'll be happy to receive a call. May I remind you of the safe harbor? We may be making some forward-looking statements that have to be understood in conjunction with uncertainty and the risks that the company faces. I also like to inform you that the call is being recorded, and the audio recording and the transcript will be available at our website. May please note that in case of any inadvertent error during this live audio call, the transcript will be provided with the corrected information. I would now like to invite our CFO, Mr. Seth. Over to you, sir. Thanks, Pranav. Welcome, ladies and gentlemen. I am pleased to report that Maruti Suzuki has demonstrated resilience and maintained a steady course in the first quarter of the fiscal 2023, 2024. Let me start with some of the recent business highlights. To strengthen our product portfolio in utility vehicle segment, the company launched a premium three-row utility vehicle Invicto. With the launch of this, the company debuted in the 20 lakh plus price segment. Coming to other business highlights, during the quarter, start of sales of two new SUVs, the Fronx and the Jimny, has positively contributed to the company's performance. Overwhelming response to these SUVs, coupled with the strong sales performance of other two SUVs, the Brezza and the Grand Vitara, the company posted a market share of about 20% in SUV segment during the quarter 1. Recently, the company further expanded its green car portfolio by offering CNG powertrain technology in Fronx. With this, Maruti Suzuki now offers 15 models with factory-fitted CNG technology. During the quarter, in the domestic market, the company sold a whopping 113,000 vehicles powered by CNG technology. This resulted in highest-ever CNG penetration of about 27%. In the export market, the company expanded its portfolio by starting the exports of Fronx to destinations in Latin America, Middle East, and Africa. Coming to the business environment during the quarter, the company continued to face the electronic component shortage, particularly in the models witnessing high demand. The company could not produce about 28,000 vehicles in quarter one of this financial year. Pending customer orders stood at about 355,000 vehicles at the end of the quarter, the company is making efforts to serve these orders fast. Limited visibility on availability of electronic components is a challenging challenge in planning our production. With the support of our suppliers and dealer partners and efforts of our supply chain, engineering, production, and sales teams, we managed to maintain healthy sales volume during the quarter. Going forward, we are hopeful on the improvement in supplies of electronic components. Today, Maruti Suzuki Board approved acquiring shares of SMG from SMC. With the growth of the Indian car market and export potential, Maruti Suzuki India Limited would need to increase its production capacity to about 4 million cars per annum by 2030-31, almost double from current levels. This would happen over several locations, some of which are known and some being studied. On the other hand, given the carbon neutrality requirement, several powertrain technologies like EVs, hybrids, CNG, ethanol, et cetera, will coexist for a reasonably long period of time. Managing the scale and complexity of production with multiple powertrains under different managements could pose several challenges. The board of directors considered this and decided that for the purpose of efficiency in production and supply chain, it is best to bring all production-related activities under MSIL. Accordingly, the board approved termination of the contract manufacturing agreement and exercising the option to acquire the share of Suzuki Motor Gujarat Private Limited from Suzuki Motor Corporation, subject to all legal and regulatory compliances, including minority shareholders' approval. The mode of acquisition, including consideration to be paid to SMC, shall be decided in a subsequent board meeting. In terms of actual production, logistics, sales, and the cost thereof, there will be no change, as the cars earlier supplied by SMG as a contract manufacturer will now continue to be supplied as before. Coming to highlight for this quarter, the company sold a total of 498,030 vehicles during the quarter, higher by 6.4% compared to the same period previous year. In the quarter, the sales in the domestic market stood at 434,812 units, up by 9.1% over that in quarter one of last year. Export sales were at 63,218 units, as compared to 69,437 units in quarter one of last year. During the quarter, the company registered highest ever quarterly net sales of INR 308,452 million, as against INR 252,863 million in quarter one of last year. The net profit for the quarter rose to INR 24,851 million, from INR 10,128 million in quarter one of this year, a growth of 145.4% over that of quarter one of last year. This was on account of large sales volumes, improved realization, cost reduction efforts, and a higher non-operating income. We are now ready to take your questions, feedback, and any other observations that you may have. 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 touchtone telephone. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kapil Singh from Nomura. Please go ahead. Yeah, good evening, sir. Just with this decision that we have announced for, you know, acquiring the SMG plant, can we talk about, have you thought what could be the timelines? Also you mentioned about mode of configuration. Will it be in the form of cash only, or we will, you know, there can be other options like share swap, et cetera, also, which may be evaluated? This part has not been deliberated so far. It, as we mentioned, both in the press release and in the CFO speech in the beginning, this will be deliberated in a subsequent board meeting. We wish to complete it within this financial year, within March 2024. Okay. Shall we, will there be any efficiency gains here as well, which will be there for the combined entity that you can envision? Broadly, broadly speaking, yes, because, you know, production planning, we have so many powertrains. We have the ICE engine base, we have the EV base, the hybrid. There would have been some challenges if we had if we had not integrated them together. At least now the decisions will be far more agile. We can quickly make changes in the production plan, location plan, et cetera. Of course, MD also mentioned in the press conference before this, some economies of scale also we are expecting. Okay. Second question is on cost. We have mentioned that there is some 80 basis one-off cost. If you could talk about that and what is the normalized level of cost? Also, you know, industry outlook that you are seeing right now, competitive intensity, discount levels and inventory levels. This 80 basis points is on account of the I think 1 time where we have made some payments to employees on for retention related payments. This, as I had earlier also mentioned, would not be repetitive in nature. They will not occur in the next quarters. That's the 80 basis points that we had mentioned in the note. If you see the employee cost is inflated in this quarter because of these payments and also the retirement benefits, which certainly come in the 1st quarter and not repeated in the subsequent quarter. That's 1 important one. The 2nd question that you asked about discounts. Discounts have been slightly up compared to last year. Last year, discounts were at INR 12,748 per vehicle, now it is at INR 16,214 per vehicle. Up from the quarter four of last year. Quarter four was INR 13,269. They're up to INR 16,214. I think with the semiconductor situation easing and with the mix becoming better, discounts should also progress, but you'll have to see how the markets behave in a given quarter, accordingly, discounts would have to be maneuvered. December, normally, the third quarter, normally, the discounts are higher because you have a year-end clearance of your cars, they will vary each quarter, as I mentioned. Sir, also the outlook and inventory level, if you could talk about that, demand outlook and inventory level? ...Demand outlook is fine at the moment. If you notice First Quarter, industry grew by between 6.5%-7%. Sorry, competitors. Industry minus Maruti grew by 6.5%-7%, while Maruti could grow over 12%. And since we have a good model lineup of recently launched, mostly SUVs, we expect that momentum to continue. The only issue is that in Second Quarter, the last year base is very high. While the absolute sales should continue, the growth figures might look less in Second Quarter because of a high base last year. Inventory would be at 125,000, network inventories are about 125,000. Yes, about four weeks. About 4 weeks. Thank you, sir. I wish you all the best. I'll come back in the queue. We have the next question from the line of Pramod Kumar from UBS. Please go ahead. Yeah, thanks a lot, sir. Before I go with the question, just a clarification. If my memory serves me right, when we did this arrangement, there was, there was this worry that the consideration for a buyback of the plant may be at a higher value, so you had assured that it will be at a book value. Just wanted to clarify that. Does, does it hold good even now, as in? The contract manufacturing agreement, the way it's drafted and the way it's approved by the minority shareholder, clearly lays down the principle of, that if it is submitted at any given point in time, the purchase would be at the net book value. It holds good. I think, the contract manufacturing agreement is very clear about it. There cannot be a deviation from the approval given by the minority shareholders. Absolutely. Oh, no, that's great to hear, sir. So the, the, then the question from my side on the business side is, even on the other expenditure side, we've seen some uptick. Just want to clarify, is it related to the, what we heard from other companies as well, related to IPL spends, and, and also you had a couple of launches? Is, is that, is it fair to assume that the recurring run rate may be a bit lower than where we are today? You think these are going to be the sustainable levels on special- I mentioned to you is that there are, there is some 80 basis point expenditure on account of employee costs, which is not recurring in nature. We had to account for these in the first quarter, as we had paid some retention bonuses, et cetera, to employees for long-term retention of employees. Other expenses, you know, it will depend on the period in which the launches takes place or the events take place, may vary a little bit. Marketing expenses, as we launch more models, will continue to be at this, this pace in the near future. This is an investment we are making in the long run, not in, not for a shorter period. They will remain to be a little stepped up. Sir, from your vantage point, how do you see the evolution of your model mix from where we are today? Because we've seen a pretty good improvement in both ASP and gross margins, gross profit per vehicle quarter on quarter. How do you see it going forward as the capacity, semiconductor situation eases? Also how-- if you can just help us understand, how do you see the major cost elements within your PNL, like commodity and some bit of any, any comments on Forex, that would be very helpful. Thank you. Volume mix, as semiconductor situation improves, should improve because we will be in a position to sell more of the SUVs and, you know, other cars, as their large number of them are also in the wait list. Hopefully, I think the realization should also improve as the mix improves in the next quarters. It, it has eased a bit, but, you know, we know exactly when we finish the second quarter in terms of where we are, but it seems to be better than where we were in the first quarter. That's the answer to the first question. Second, on the commodities, now I think we have kind of stabilized. We will wait to see how the steel behaves. We had some uptick in the first quarter, but hopefully it should correct moving forward. We are seeing more stability both in commodities and Forex, during the year, compared to the volatility that we used to see in the earlier years. While there may not be significant improvement, or cost improvement, but there is not going to be any more pain than we have seen in the past. Additionally, the cost reduction efforts that we put in, which used to be offset because of these commodity increases, may help us as we continue to stick to our targets of cost reduction as we normally have, during the year. Okay. before I fall back into queue, just a clarification, does it include even the EV facility, the EV assembly plant? What will be the status of the battery plant, sir? Because I guess there'll be some involvement of Toyota as well there. So if you can just help us understand, those aspects from the EV side. The EV part, EV manufacturing facility is part of SMG, and since SMG will be part of MSIL, if, I mean, everything goes through, EV will also come to MSIL. The battery is a global project of Suzuki. It has been located in India because the volumes in India for Suzuki are the maximum. That will be part of SMC, a 100% subsidiary called SRDI, Suzuki R&D Center India Private Limited. Thanks a lot, sir. I wish you guys all the best. Thank you. The next question is from the line of Raghunandhan NL, from Nuvama Institutional Equities. Please go ahead. Thank you, sir, for the opportunity. Just a clarification on SMG. As per the data available on MCA, the net worth was about, or the book value was about INR 12,700 crore for last three years. Broadly, that would be the latest book value for FY 2023? Yeah, so that is the book value as of March 2023, and we will have to, whenever this whole approval process is over, we will have to compute the book value at that point in time. We will have to wait till the whole process of approval is over and then compute the book value at that point in time. That should not significantly change from what you see in March 2023. Thank you so much, sir. Sir, on the raw material cost benefit, just continuing the previous question, precious metal cost per unit was around INR 25,000-30,000 for Maruti, and on precious metal side, there has been a very significant correction over the past few months. In addition, even costs like aluminum and all have come down. Shouldn't that lead to a more significant benefit in Second Quarter or Third Quarter for us? Commodities have seen a decline, as you are saying, both palladium, rhodium, which are the quantities that we significantly consume in our production, those have gone down. One has gone down by 18% and the other one has gone down by 20%. There is definitely a benefit of commodities, but on the contrary, steel has increased in this quarter. There has been an increase of steel prices compared to quarter four. The steel is almost half the commodity that we consume, and therefore, overall impact is not significant, as I said, because it has offset the reduction that we have got on the precious metals. Hopefully, now moving forward, we should see some softening on the steel as well, which will help the overall cost. Got it, sir. On the demand side, order book now stands at 355,000. A notable part of that will be SUVs. Considering improving supplies, what would be our capacity on the monthly SUV production side? Relating to that, if you can talk a bit about a volume potential for Fronx, can it do 12,000-15,000 per month, including exports? What would be the order book for Fronx? Thank you. I'll take your last question first. Fronx, currently, we are doing approximately 9,000, and exports have just started. Exports volume will add to it. Order book on Fronx, we, we have about 22,000 pending bookings from Fronx. On the overall volume, the capacity is fairly stable now. We will add 1 lakh in Manesar only next year, and semiconductor situation has almost eased, so we should see some stability in volumes. Got it, sir. If you can share the exports and SMC production number, I mean, SMG production number. That's all from my side. SMG was about 40% of total, about INR 2 lakh. Mm-hmm. Oh, you're talking about the export revenue? Yes, sir. In the quarter, it was about INR 3,750 crore, approximately. Thank you so much, sir. I'll come back in the queue. Thank you. We have the next question from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead. Hi, sir. A couple of questions from my side. First is, the effects impact in 1Q, would there be a material impact on account of vendor inputs, given JPY moment in fourth quarter? Not significant enough. I think for this, a small impact, but not significant. Okay, okay. Got it. Can you remind us with respect to JPY hedging, have you resumed, JPY USD hedging now? We have been continuously doing JPY USD hedging. We have, about 50% of our direct exposure covered, we continue to look at opportunities. Wherever we find that this is an opportunity, we do hedge. We also have to look at the forward premium at a given point in time so that we are not too much off the market. We have taken a collaborated call of hedging as and when we get the right opportunities. As I mentioned, we are almost 50% hedged for a year. Got it. Lastly, now with SMG being merged into or being now part of MSIL, can you also talk about what is SMG's CapEx plan going forward from where we are at 75,000 capacity? Are they doing any capacity addition or what will be the CapEx required in SMG? I think there, there, there, we have been answering that question every, every now and then whenever we do an expansion. At the moment, we've talked about 1 million expansion at third quarter, which where we've talked about the CapEx that we'll be incurring over the 3 phases of the project, because it'll be done over, in fact, 4 phases of the project. There'll be 4 parts which will be set up there. Subsequent to that, we'll be adding 1 more million capacity, but that is under discussion now in terms of location, in terms of where to do that. There's a cross-functional team which is studying that, and once all that's finalized, then we'll come out with what the plan is and what the CapEx, approximate CapEx would be on that. At the moment, we have clarity on the INR 1 million at third quarter, not the other INR 1 million, because that is under study at the moment. Sorry, sir, my question was, what will be, CapEx requirement at SMG for the Gujarat plant? I'm talking about, I'm talking about everything included. Okay, okay. 1, the INR 1 million additional, it will include the SNG, because SNG, in case, the current thing is approved, will become part of MSIL, so it will all come under 1 bucket. Got it. Got it. Sir, lastly, what was the royalty rate for the quarter? 3.8%. 3.8%. Great, sir. Thank you, and all the best. Thank you. The next question is from the line of Chandramouli Muthiah from Goldman Sachs. Please go ahead. Hi, good evening, and thank you for taking my questions. My first question is on the product launch side. We have had quite a lot of success in the recent past, 3 big launches. Between now and when the EV launches in 2025, could you talk about if there are more sort of SUV products in the pipeline, or are we looking to consolidate the recently launched 3 products? I thought you'll be very happy about the recent launches and look at the volumes of these. Future product plans, we don't comment about as a policy, but yes, you're right. For some time, we have to look at, maximizing the volumes from these current launches. Got it. Got it. That's helpful. My second question is on the Invicto launch, just related to the Hycross, and if, if we were to compare a similar situation on the Grand Vitara, I think on the Grand Vitara, on the top end variants, we had chosen to price a little higher than, than the Toyota Hyryder. On the Hycross, we, we've been able to put together a value offering, which is priced a little more competitively than the top-end sort of Hycross model. Just trying to understand what were the things that went into that decision, and how we were able to price more competitively than the Hycross, in spite of, you know, manufacturing still being outsourced to Toyota? See, pricing is a market, it's a competitive market, decision. It keeps varying. We keep calibrating ourselves with respect to the market and competition, and of course, consumer expectations. In the Grand Vitara, I think our market pricing is almost now, very competitive with or... I mean, it's almost very close to that of, Toyota. There is no disadvantage as such. As far as, as far as the hybrid variants are concerned, I think the volume will really go up if there are some, commensurate benefits on, on CO2 from the government also in terms of GST. Got it. Thank you very much, and all the best. Thank you. Thank you. The next question is from the line of Vinay from Morgan Stanley. Please go ahead. Hi, team. Thanks for the opportunity. Just one clarification. TDS will also not be under this entity, right? That will also remain independent, the Suzuki investments in that JV? Yes. Yes. TDS is a separate- Uh- TDS is a JV of Suzuki, Denso and Toshiba. Right. those investments are also directly under Suzuki Japan, right? Yeah, I mean, Suzuki has 50% equity in that. Right. Then secondly, actually, 2 questions. 1 is if you could give us the breakdown of the order book across some of your key models. Secondly, you know, like the, the small car slowdown is very pronounced, very visible in your numbers, and there's always this debate about whether this is a structural slowdown or this is cyclical slowdown. You have the most amount of customer insight and data. Anything you could share on, on that side as to how do you see that market and when do you see any sort of signs of that market recovering? Like in fact, even in your order books, where are the customers coming from? Are they your own customers, or they are new customers from other brands moving in? Any insight on that small car slowdown debate? Thanks. Okay. First question about pending orders. Brezza is about 48,000, Grand Vitara, 27,000, Jimny, 23,000, Fronx, 23,000, Invicto, 8,000, and Ertiga, 93,000. Your second question was on small cars. See, small cars are a very large segment. Last year, they were at 33% of industry. This First Quarter, 32%. Last year, against an overall market growth of 26%, hatches grew by 16%, which is positive growth. It is not as much as the rest of industry, but it is still quite significant. Even this First Quarter, the small car grew marginally. It, it is positive growth, but less than the other segments. We think it's a very important segment. Yes, it is temporarily challenged. The growth is not as much, but, we hope that in times to come, it will, it will also grow, and it's such a large segment that it cannot be ignored. In a way, do you see the share of small car in the overall mix continuing to reduce? Gradually, yes. For example, last year it was 33, this time it is 32, but it's still a, a major chunk. In terms of the strategy of you, then, is it fair to assume that when you think about 4 million capacity or the future model lineup of Maruti, you are also aligning the company more in terms of the growing segments, which is now higher ASP models, SUVs? See, as a market leader, we have to cover all segments and maximize our volumes. We will look at all segments, including the growth segments, obviously. To that extent, we will cover all segments. Thanks, team. I'll ask you this, if you have the first time buyer data, you know, which is always very insightful to look at how that trend is. Any insight on the first time buyer number? It's about 40%. It's actually coming down now in that sense. It used to be- Marginally, yes, from, from about 43, between 42 to 44. From that level, it has come to 40. Yes, slightly come down. Great. Thanks so much, Rahul. Thanks. Thank you. Thank you. The next question is from the line of Kumar Rakesh from BNP Paribas. Please go ahead. Hi, good evening. Thank you for taking my question. My first question was on the CapEx plans and the SNG. My understanding is that Suzuki was planning to invest in the SNG plant for EV manufacturing line. Now would that be happening through Maruti Suzuki, and what would be the annual maintenance CapEx of the plant? The manufacturing facility at SNG is proceeding, and we hope to launch the EV in the next financial year. As we have not directly gone into the CapEx of SNG, but as mentioned in the press conference, you know, we already have three plants there, and there is not much more land space available to accommodate more plants. Thanks, Rahul. My second question was on Invicto. It's a very interesting product from Maruti's portfolio perspective because it dramatically changes the profile of the models which we sell. It's more than 2x the price of most of the models which we have in the showroom, and it would be a pretty different experience handling this model for your channel as well. How the experience so far has been? The requirement on working capital would have stretched a lot. The kind of customers who would be coming and their expectation from the showroom would be very different. What has been the learning so far, and are there any tangible insights you are drawing that can help you premiumize the rest of your portfolio? Interesting question. We would also be very interested in knowing that consumer experience, feedback, learning. Maybe slightly too early to assess, yes, actually, we have a lot of wait list also. We'll keep studying as we go along. Yes, we find good acceptance of Maruti Suzuki brand in that consumer segment. Yeah, I, I agree, Rahul. It may be a little early, but would be really looking forward to hearing your thoughts, how that is helping us build more understanding of customers, because I understand in the rest of the portfolio of the market, we already have a very deep understanding of customers. Is the above 15 lakh and higher is where this could possibly help us, and how, what are the learnings we are drawing? Thank you. Nexa has helped us to a good extent. In fact, in hindsight, we are happy, we launched the Nexa. Apart from the product, the buying experience is also, it also complements the stature of the customers in that segment. So far positive. Let's go along the line and read more into it. Thanks, Rahul. Thank you. The next question is from the line of Pramod Amthe from Incred Capital. Please go ahead. Yeah, hi. Thanks for taking my question. This is with regard to a similar line. With regard to your Jimny, what is the customer profile now you have started delivering the vehicles? Is it first-time Maruti buyer, or these are like upgrades of the Ertiga Maruti guys who are coming in? One second, the age profile, what do you see? Considering the long wait, have you seen any cancellations for the same? Okay. The Jimny is, as we had defined, it has purity of function. It's a true off-roader. We had targeted at lifestyle kind of the lifestyle customer who likes that adventure lifestyle. We also knew that many urban drivers would take a liking to the Jimny because of its, you know, prowess and the proportions and the sheer appeal. Till now, the deliveries have not been much. But yes, we've got some positive response. We have about we have about 23,000 units of pending orders, and this also we'll keep studying. Incidentally, the Jimny is exported also. Even in export markets, there's a huge pull for it. Actually, it started with exports. Anything on the buyer profile, age, or are they are still Maruti, or you address any customer? Smaller sample size to comment as of now. I may also caution you that early adopters and the mainstream buyers can be different. The profile can be different. Interesting. Yeah. Second one is coming to SMC. If I look at the balance sheet, since you had already indicated at the time of agreement that it will be almost zero fat company, so it looks like everything is predominantly the capacity spent. Is it going to be, if I understand right, when you buy it back, it is whatever has been spent to set up the capacity, that is what broadly you'll be paying, because it's nothing in the results which is sitting here. Is that the fair understanding? It is very natural, Pramod, that the net book value, in a, in a concept of no profit, no loss, can be the nothing else but the value of the assets that have been procured and the minus the depreciation that has been incurred so far. That's how we can arrive at the net book value. There is no reserves in the books. Related to the same, the only challenge is in terms of timing it, in the sense you are embarking on a large CapEx now on your own, and you are also trying to buy out. Looking at the cash sitting on the books, it looks like you have both the options of buying out cash or, if required, stocks. Would it be advisable to go for the equity swap than the debt? Looking at your aggressive CapEx plan for next seven, eight years. Any thoughts on the same? As you said, that the board will consider the mode of acquisition, and that's not been decided yet. They will be meeting another round soon. Once that's decided, then we'll exactly know what is the mode. This will also go through the majority of the minority voting, or how does it? Yeah, it will go through all the regulatory approvals that are required, including the minority shareholders approval. Sure. Thanks a lot for this. Thank you. We have the next question from the line of Joseph George from IIFL. Please go ahead. Thank you for the opportunity. The first question that I had was, could you give us the retail sales number for the quarter and how it looks compared to Q of FY 2023? The retail sale was, approximately, INR 3.8 lakhs in the quarter. Okay, how was it year-on-year? Year on year was, it's a growth of about 8%. Got it. The second question was, you mentioned a dealer inventory of 125,000, sorry, an inventory of 125,000. Just to confirm, it's dealer inventory at the end of 1 Q? Yeah, that's right. It's dealer inventory. Yeah. Okay. The last question that I had was, you know, when I look at the order book, at the end of 4Q, you had mentioned that it's about 412,000. Now it's come down to 355,000. If I do the simple math, which is that whole sales in the quarter were about 422K, I get a net new order flow of about 365,000. Which is, is that number, you know, understated because of a lot of cancellations, or, is that a right about number in terms of new order flow for the quarter? Sorry, we didn't get your question. See, at the end of 4 Q, you had an order book of 412K. That's a number that you had given out on the 4 Q call. At the end of 1 Q, you mentioned that you have an order book of 355, which is a reduction of about 50,000-60,000. Right. The whole sales in the quarter was about 420K, I'm excluding Toyota supplies and excluding exports, which means that the new order flow in the quarter would have been about 360, 365. Is that the right number, or were there a lot of cancellations from the opening book because of which the number looks, you know, understated? Just keep in mind that the Jimny and the Fronx are new models, so their bookings would also go up. Of course, the network stock has also improved a bit. Earlier, it was too low, now we are at 4 weeks, approximately. Understood. Okay. Thank you. Thank you. That's all I have. Thank you. The next question is from the line of Jay Kale from Elara Capital. Please go ahead. Yeah, just one clarification on your CapEx side. You know, earlier, without SMG, you, you had guided around INR 7,000 crore CapEx. With SMG coming in your fold, how should we, one, think about your CapEx plans over the next couple of years? Is it right to assume that, you know, your earlier CapEx, you know, had increased at Maruti level, because, you know, your incremental CapEx was more happening in the, at the Maruti level and not at the SMG level, any which way. Your CapEx for the entire entity, including SMG, should not be too different than the INR 7,000 crore for the next 2-3 years? Let me simplify it for you. We have already said that the next 1 million capacity will be done at Kharkhoda, for which we have already announced the CapEx plan, right? It's in phase 1, and it will be done over 4 phases. That's clear. 1 million capacity anyway is now coming up in Kolkata. We've also said additional 1 million capacity, for which is under study. That 1 million capacity, where it will be done and what will be the CapEx, would be decided once we are clear on the plans for the additional 1 million capacity. Of course, if we get requisite approvals for acquiring the shares of SMG, and then it be becoming part of MSIL, then whatever is the future CapEx, that, of course, will be incurred by MSIL. Once we have clarity on the second 1 million, we'll let you know in terms of what the additional CapEx could be. At the moment, we have clarity on Kolkata for the first phase, which we have already announced the last time. Additional CapEx over the next five, six, seven years, that will be incurred, we will give you more clarity as and when we get the location identified and the amounts to be spent identified. Understood. Understood. Just 1 on the PLI, SMG had won the PLI, so that would get, naturally get transferred to Maruti. That specific entity would have 1 PLI, or how, how would that happen? Even, even in our earlier PLI application, we had mentioned that the production will be at SMG and the sale will be by MSIL. Kindly consider it as one application. That doesn't change. I mean, in fact, it gets even more, even simpler now. Understood. Understood. Fair point. Great. Thanks, and, all the best. Thank you. Ladies and gentlemen, that was our last question for today. With this, we conclude today's conference call. On behalf of Maruti Suzuki India Limited, we thank you for joining us, and you may now disconnect your lines.