Ladies and gentlemen, good day and welcome to the Minda Corporation Limited Q2 FY25 earnings conference call, hosted by Nirmal Bang Institutional Equities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Ladha from Nirmal Bang Equities. Thank you, and over to you, sir. Thank you, Joshua. Good evening. On behalf of Nirmal Bang Institutional Equities, I welcome you to the Q2 FY25 earnings call of Minda Corporation. From the management team, we have Mr. Aakash Minda, Executive Director, Mr. Vinod Raheja, Group CFO, Mr. Sameer Sharma, Senior VP and Group Head, Strategy and M&A, and Mr. Nitish Jain, Lead Investor Relations. I now hand over the conference to Mr. Aakash Minda, sir, for his opening remarks. Over to you, sir. Good afternoon. Thank you very much, Prateek. And I thank Nirmal Bang Institutional Equities for hosting this call. Good afternoon, everyone, and welcome to the Quarter 2 and H1 FY25 earnings conference call for Minda Corporation Limited. I hope you're all doing well. It is a pleasure to connect with you all today, and I look forward to presenting our performance for the quarter and offering insights into the recent developments. We will begin with an overview of the industry performance, followed by a detailed discussion of Minda Corporation's financial and operational results for the quarter. In Quarter 2 FY25, industry growth has been moderate, with the two-wheeler segment leading in demand. The passenger vehicle segment experienced a slight decline, reflecting softer market demand, while the utility vehicle category showed robust performance, underscoring strong consumer interest in the SUVs and multifunctional vehicles. The commercial vehicle segment faced challenges due to a high gate effect, prolonged monsoon delays, and adverse weather, all which constrained the market activity. Coming to the company performance highlights, I am very pleased to share that Minda Corporation continued its journey of balanced growth. The company achieved highest-ever quarterly revenue. The revenue from operations for the quarter was INR 1,290 crores, an 8% year-on-year increase and 8.2% quarter-on-quarter increase. The domestic OE business performed better than the industry, though it faced some headwinds due to subdued export demand from the European market, slowdown in Asian markets, and downturn in the commercial vehicle segment. In terms of profitability for the quarter, the company reported its highest-ever EBITDA in value terms at INR 147 crores, at an EBITDA margin of 11.4%. PBT stood at INR 96 crores, with a PBT percentage of 7.4%. Pat margin was INR 74 crores, with a PAT margin at 5.8%. Now, let me take you through the key developments during the first half of the financial year. In the Quarter 2, lifetime order wins surpassed INR 2,400 crores, with EV platforms yielding up over 25% of the order wins. In the first six months of financial year 2025, the company's order book exceeded INR 4,750 crores, reflecting our expanding product portfolio, premiumization, and rising demand for ITS and EV products across segments and geographies. To meet this growing demand, the company is coming up with four new facilities: two in die-casting, one in the instrument cluster division, and one in the wiring harness component division. In line with our strategic vision, Minda Corporation has also acquired the 24-acre land in Uttar Pradesh for future expansion. The company also signed a technical license agreement with Sanco Company from China to enhance its wiring harness product portfolio, in line with offering our complete system solutions in the EV segment. I will now take you through the presentation and cover the key highlights of the Quarter 2 and first half of the financial year 2025 performance. I request you all to now look at the presentation uploaded. From the page 2, we shared Spark Minda at a glance. In the financial year 2024, we're about a INR 4,650 crore company with INR 514 crores of EBITDA, 28 manufacturing plants, 17,000 people, five business verticals, customers spread across the world, focused on engineering products, 10 partnerships, and stable financial structure. Moving on to the next slide, which shows the Indian automotive industry performance. In the Quarter 2 FY25, the industry overall grew by 8.8%, with two-wheelers grew the highest of 12.5%, passenger vehicles were almost flat, three-wheelers grew by about 6%, commercial vehicles did grow by about 13.3%, and tractors were also almost flat but grew by about 3%. In the two-wheeler space, the premiumization trends remain in the focus, with premium two-wheeler segments in the demand. The expectations of good monsoon and festive season is likely to grow the demand further in the H2. Passenger vehicles showed a slight decline during the quarter due to softer demand in the segment. However, the utility vehicle category showed its overwhelming performance during the year. Commercial vehicle growth was lower due to various factors, including extended monsoons as well as the higher winds. The tractor segment showed some signs of recovery, with expectations of above-average monsoons is also likely to demand in the next half of the year. Moving on to the next slide, which is the key highlights and the key strategic developments. On the left side, which is the Quarter 2 developments for the financial year, the company delivered its highest-ever quarterly revenue, with an 8% year-on-year increase. EBITDA margin stood at 11.4%, increased by 38 basis points. Total lifetime order book won was INR 2,400 crores, with EV constituting to about 25% of the total order book. The company signed a technical license agreement with Sanco and filed eight new patents, taking the total patents to 285, showing our commitment toward innovation and investment into technology and R&D. For the first half of the year, the revenue grew by 9% despite macroeconomic challenges. We posted highest-ever margin of 11.2%, growth of 38 basis points. Total lifetime order book in the first half was about INR 4,750 crores, and we signed two strategic partnerships, and total patents in the first half were filed about 14. Going on to the next two slides, which shares about the technology license agreement signed with Sanco. This partnership is for the products related to the wiring harness segment and the backward integration of the connectors in the high voltage and the EV area. This partnership will deliver comprehensive and customized electrical distribution systems for the electric vehicle market, and there will be various new products which will bring into the portfolio of Minda Corporation, such as the connectors, charging gun assemblies, sockets, bus bars, cell contact systems for batteries, power distribution systems, and battery distribution units. We are further expanding in our brownfield facility in our component division to come up and offer these products to the Indian market and even exports. Moving on to the next slide shows the Quarter 2 financial numbers, which shows our operating revenue increased by 8% year-on-year. Gross margin increased to 37%, which is 38 basis points. EBITDA stood at INR 147 crores. EBITDA margin was about 11.4%. PBT was INR 96 crores at 7.4%, and PAT was INR 74 crores at 5.8%. Moving on to the next slide, which shows the year-on-year and quarter-on-quarter growth momentum on the financial highlights. On the top of the table shows the Quarter 2 numbers, and the bottom part shows the half-year numbers. If you look at, again, on quarter-on-quarter and year-on-year movement, on the quarter-on-quarter, we also moved from INR 1,192 crores to INR 1,292.90 crores. In the half-yearly, from INR 2,270 crores, we grew by 9% to INR 2,482 crores at EBITDA. To show our balanced growth, our EBITDA for the fifth straight quarter has moved from consistent 11% to 11.4% in this quarter, marking an 11% jump from quarter-on-quarter basis and a 12% jump from year-on-year basis from INR 131 crores EBITDA to INR 147 crores EBITDA. On a half-yearly basis, the EBITDA has grown from INR 246 crores to INR 278 crores, from a 10.8% margin to 11.2% margin, with a growth of 13%. PAT has grown from INR 59 crores from previous year to INR 74 crores, showing a growth of 26%, and at a half-yearly basis has grown from INR 104 crores to INR 139 crores, showing a growth of 33% on year-on-year basis. Moving on to the next slide, which is the business vertical performance for the Quarter 2 and first half. On the top left, it shows the mechatronics aftermarket and other businesses, which have grown from INR 575 crores to INR 639 crores on year-on-year basis, which is at 11% growth, and on the right side, on a year-on-year basis on the first half, it has grown by 12% from INR 1,088 crores to INR 1,213 crores. The major factors that led to growth were the strong demand in the domestic two-wheeler segment and premiumization of the existing products. However, it was challenged by subdued export demand and slowed on the RTR market. In the bottom part, which is the information and connected systems, the sales grew from INR 621 crores to INR 651 crores, marking only 5% growth. Major challenges were due to the commercial vehicle downturn, and on a half-yearly basis, we grew from INR 1,182 crores to INR 1,269 crores, marking a 7% growth. Moving on to the next slide, which is the revenue breakup for the year by product and by geography and markets. If you look at Quarter 2 2024 to Quarter 2 2025, wiring harness continues to be about 30%-35%, and this quarter is 32%. Lock set of vehicle access is about 23%. Die-casting division, which is DCD, stands for about 18%, as this segment is growing, as well as our instrument cluster business is also continuing to grow, which is now contributing to about 17%. Other new products, which are the EV products and other products such as the sensors, are also moving to about 10%. By geography, India's domestic market continues to be on the growth, which is contributing to about 88%. Pure exports to Europe and North America is about 8%, and South Asian market, which is the Indonesia and Vietnam, are about 5% of the revenue. By end market, two-wheeler and three-wheeler constitute to be about 46%-47%. Commercial vehicle is about 26%. Aftermarket is about 11%-12%, and passenger vehicle is about 15%. On the next slide of consolidated leverage position and the financial snapshot of the first half, the net worth has increased from INR 1,981 crores to INR 2,102 crores in six months. Long-term borrowing has reduced from INR 203 crores to INR 170 crores. On a short-term borrowing, it has increased by INR 20 crores, from 145 to 164. Our gross debt has come down by about INR 14 crores, making our total net debt to about INR 160 crores, and net debt to net worth is about 0.08x. Capital employed is INR 1,873 crores, and our ROC is about 21%, with our focus to increase this to about 25%. We now move to the last section on the ESG and transforming towards sustainable mobility. At Minda Corporation, we are focused on sustainable operations, care for people, ethical businesses, inclusive growth, and responsible value chain. Further details can be taken online from our company website. On the next slide, we continue to give back to the society by our various activities and initiatives, such as the World on Wheels for training people and students across villages for empowerment of PWD people and employing them at our facilities and plants, our prison programs, which are the most exclusive programs in India, and other activities as well. The last slide, which shows about awards and achievements, where our customers and industry bodies continue to award Minda Corporation on account of quality, technology, development, employment, and HR practices. Beyond this, there is a group company profile and presentation, which I believe, and I request that all of you can read and understand more, and if there are any questions, we'll be more than happy to answer. With this, I would now request to open the floor for questions. Thank you. Thank you so 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 Raghunandhan from Nuvama Research. Please go ahead. Thank you, sir, for the opportunity. Congratulations on a strong set of numbers. Firstly, on Sanco, now that you are working towards building a series of products, which you highlighted, number one is, how does it open new revenue opportunities for you? And number two is, in your efforts relating to localization, how can this help, and how can the percentage of localization increase? Hi Raghunandhan. Thank you for your question. So Sanco is a very well-known company in China. It's supplying to almost all the OEMs in China, whether they are German, Japanese, or Chinese, or even American OEMs. So this product category is in our short-term and long-term plan for doing backward integration and meeting our own competitiveness and building our company capabilities for connection systems. While the EV penetration is increasing, we are focusing on how we can continue to localize and backward integrate and build our competitive edge. There are various products that are part of this alliance as a first step in terms of the technical license agreement. As I mentioned before, there are the high-voltage connectors, then there are the EV charging guns and charging sockets, bus bars, battery cell contact connectors, and various other product lines. We are already working with various customers in two-wheeler, three-wheeler, commercial vehicle, passenger vehicles OEMs in India, where we've already received RFQs and almost towards business nomination as of date for increasing our competitiveness. So this is going to be as a system solution offering. And with the immediate EV penetration that is there in the current market, this can increase our business potential to more than INR 1,000 crores in the current products that are offered in the first phase. So this INR 1,000 crores is the potential revenues you are looking at, sir? No, this is the current immediately available total available market in the current products that are there as well as in the market that is available. Understood, sir. And given that Sanco has ties with German, Japanese, American OEMs, would that also, would you be able to leverage Sanco's relationship to win new businesses? Yes, of course. We already have received various RFQs from Sanco's customers in India. We are working with them in order to cater to these customers also. Sir, with the efforts on localization and also your revenues are seeing a decent scale improvement, plus your ongoing cost reduction efforts, you have already posted a wonderful margin this quarter. How are you in the journey towards the 12% margin target? Thanks for that question, Raghunandhan. See, as Minda Corporation, we are pivoting the organization to be a more stronger company and being more competitive in our vision to create long-term shareholder value creation. We are focusing on quality of revenue by focusing on sustained customers. We are focusing on quality of product mix with the new order book and new production technology that we are launching. We are focusing on quality of earnings, which are more economically value-accretive to Minda Corporation. So we are taking conscious calls on all of these parameters when we are approaching and winning any new business or customers going forward. In spite of building our core, we are able to deliver about 8% growth. We are not in the rates or sales growth rates. We are focusing on how we can be more competitive and build our core. And while building our core, we have been able to deliver 8%, which I am very confident that with the initiatives and investments that we are doing, we are going to grow this even beyond. Of course, in one or two segments, maybe in a quarter, for example, this year, this quarter, the commercial vehicles may not have supported us. But with the right customer mix, with the right product mix, we are building a more sustainable and long-term company. So in the line of our commitment that we have made in the past few quarters and years to grow to about 12%, in the last five quarters, we have sustainably and consistently delivered higher than 11% EBITDA margin while growing our top line as well, which is, again, in the commitment to build our core and being more competitive. Got it, sir. Thanks for that comprehensive answer. So sir, Minda, along with HCMF, is setting the new plant in Pune to be commissioned in FY 26 for sunroof closure systems. Can you talk about how the status, how that work is progressing? Any orders you can talk about? Yes. So as we've already explained before, we are under discussion with various customers. The customer models that are expected to launch soon, with our HCMF customers being in India, we are working with them aggressively. The facility that we have already started commissioning with our partners is underway. Also, with the other products that HCMF is offering, we are under advanced discussions with Indian OEMs to win those products and start SOP maybe two years for any upcoming models. Got it, sir. Sorry. Yeah. Yeah, I'll fall back to the queue. Thank you so much. The next question is from the line of Sridhar Kalani from Axis Securities Limited. Please go ahead. Thank you for the opportunity. Good evening, Akash sir. My first question is continuing with the previous query regarding sunroof and closure systems. So are we on track for the plant to be commissioned in Q1 FY26? Sorry, we can't hear you clearly. I'm asking, are we on track to commission the plant in Q1 FY 26 for sunroof and closure systems plant? Yes. So yes, we are in line with the quarter one. Of course, there could be maybe a month or two delay. But yes, we are in line in order to move forward and set up the facility. Hello. Thank you so much. The next question is from the line of Nihal Shah from Prudent Corporate Advisory Services. Yeah, please go ahead. Hello. Thank you for the opportunity and congratulations for the great set of numbers. So as you've alluded as well, that the four-wheeler passenger vehicle number has been a bit soft for this quarter. So how do we see ourselves positioned in such a difficult time for the auto industry as a whole? And how do we expect ourselves to grow in such an environment? And how much of the premiumization trend do you feel is behind us now? So thank you, Nihal, for this question. As I mentioned, yes, see, in the long run, the automotive industry in India particularly is expected to do very well. While there are a lot of macroeconomic factors which show that the industry is expected to do very well, all the customers which are the manufacturers are enhancing their capacities. And many of the Tier-1 component players or automotive system solutions like us are also expanding capacities. So we have been directed by our customers to invest in building the capability, competencies, and capacities which we are doing across segments and across products. Also, for the order wins that Minda Corporation has done, we are creating and setting up more facilities, as I already explained this all and before, in order to be able to do the order wins that are already happening. Yes, in a quarter-on-quarter basis, maybe in the midterm, one quarter or two quarters, one segment may not do as better as the other one. But in the midterm to long run, the automotive industry is expected to do well. Of course, with the export opportunities that are coming up from the Indian space, it's something that Minda Corporation is looking forward to harness. Our growth drivers, as we have already shared before, are going to be three or four. Number one is the product premiumizations across our product segments. So number one is the vehicle access systems, where we are offering new and new products, as well as the annual sales drive of our products are increasing. In this particular category, we have added new products in terms of the power tailgate, the cluster handles, the different latches coming in, and other some products which will be launching soon. In the second business domain, which is the electrical distribution system, for not only the wiring harness, but also other connectors, power distribution unit, battery distribution unit, and other products like Sanco that we are looking at already offering to the market as system solution offering. The third is the die-casting or the lightweighting, where it's more four-wheeler driven, and we've already won a lot of orders in terms of motor housings or battery casings and other such technologies, even for domestic export. Fourth is our driver information system, where we are offering a system solution product to not only standalone clusters, but cockpits, heads-up display, and other technologies coming up in the future with the value. And our newest vertical, which is the electronics, which offers products like shark fin antenna, telematics, intelligent transportation system, EV products as well. We're also adding new products to the line. So this is the first category of products. Second is the markets. So the additional new markets in terms of exports. Third is the customers. So deeper penetration to the existing and new customers that we have in India across segments. So these are the three, four areas on how Minda Corporation is expected to grow further in terms of the market. Of course, as I mentioned, we're taking our conscious call in terms of quality of our revenue, quality of our product mix, and quality of our earnings, putting all together to become more agile going forward. Okay. Thank you very much for the detailed answer. What is the level at which we expect our debt to stay, given the level of CapEx that we are expected to do in the next couple of years? So I will ask our CFO for this question. Well, we are net zero debt company. We consider the value of investment that we have. And over the period of next two to three years, we feel that we should be doing CapEx of about INR 300-INR 350 crores per annum. And given our internal accrual and cash flow generation, largely this should be funded through internal accruals only. Okay. Okay. Thank you very much. Thank you so much. The next question is from the line of Jay Kale from Elara Securities. Please go ahead. Yeah. Good evening, sir. And thanks for taking my question. And congrats on a good set-up as well. So my first question was regarding your product segment. I see your Lockset division contribution on a YoY basis has declined. And I understand that Luxus is mainly two-wheelers. And while segment-wise, we have commercial vehicles that have seen pressure. So just wanted to understand what could be happening in the Lockset division. Are you seeing some kind of slowdown in terms of adoption of the smart key solutions, or what exactly is the scenario over there? And in similar lines, we've seen a very strong growth in your DCD division. So if you can just throw some light on, are we gaining share over there? Are there any additional new products, new geographies, anything on that side? Yeah. Hi, Jay. So again, our SSD division continues to grow, but it is just that the other divisions are continuing to grow really fast. So that's the only thing. Of course, the smart key penetration continues to align with our forecast before, particularly in the two-wheeler area and now going into other segments. So we have, for the first time, launched new products in other vehicle segments, which you will see in the upcoming months with new vehicle launches. Due to confidentiality, I can't share. But we've been present in the two-wheeler and four-wheeler space. Now you will see in other segments also coming out of products coming out of Minda Corporation. So coming to the Die-Casting Division per se, that is the division which is growing fast because of the key value offering that is there, particularly in the EV segment and the four-wheeler space. So here, we are offering a good amount of export business to Europe and U.S. markets, both for IC as well as EV powertrain products, and further penetrating into the Indian four-wheeler market as well. So these are our initiatives that we are setting for the die-casting. And we are also coming up with two new facilities, one in west and one in north, forcing the demand and expanding into other segments within the aluminum casting space. Okay. Understood. And also on your export side, we have seen that being a drag on your revenue growth for the last few quarters. Now it seems to have stabilized in terms of contribution. So how do you see exports going forward? Have you seen the bottom over there, or there is still some more pressure going forward? So as far as exports are concerned, I think compared to last year until previous quarter, there was a year-on-year decline. But now I think we are flatish when it comes to these states. Of course, the order intake continues. However, we do not see a higher uptake in the next six months when it comes to the exports. Primarily, the Europe region due to the biggest macroeconomic factors. And now with the new election in the U.S., we have to really see on how this market pans out. But we have put our actions in place in order for dual shoring, near shoring when it comes to the opportunities in the American market. Okay. Understood. And also, just lastly, on the TLA with Sanco, of course, you had mentioned about connectors, but you'll be providing an entire high-voltage battery management system, electrical distribution systems, right, along with all the components. So when you do RFQ or you have an order from the OEMs, it will be directly to the OEMs and not necessarily as a tier-two supplier to the wiring harness players who will be taking your connectors. Is that understanding correct? Providing an entire high-voltage system to the OEMs? It is both ways. In most of the cases, it is a direct to OEMs. And in some cases, yes, it could be directly to or it could be to tier-ones also. And again, for the battery pack, I would just like to correct you. We do not need the battery pack. It is a cell contact system that goes to the battery, which, of course, will be a Tier-1 supply. But the connector system, the charging guns, the PDU, and the BDUs will directly go to the OEMs. Yeah. I meant to say battery wiring pack. Okay. But just trying to understand, wouldn't the larger wiring harness players would also want to make the connectors or localize the connectors themselves rather than buying them out? Or are you seeing a kind of request from larger wiring harness players to get them trying to source connectors from outside players like you? So it depends on the customer, right, where the direct source is and how we are able to incorporate these products into the customer's drawings. So yes, that's what we've been able to do. As I explained, we've already received various inquiries and advanced stages of closure of businesses while putting our products into the architecture of the vehicle. So that will depend on whether it will be from us or it could be others. But since having the localized opportunities in India, we have the early mover advantage, you can say, in order to offer the products to the customers in the design space. Understood. And does this accelerate your journey of? Sir, just please request you to join the queue for questions. Sure. I'll jump right in with you. Yeah. Thank you so much. The next question is from the line of Nandan Pradhan from Emkay Global. Please go ahead. Yeah. Hi. Hello. Yes. Yeah. So thank you for the opportunity and congrats on a good setup now. My first question is along the lines of the smart key that we had mentioned in the Q1 call that it was meant to start from this year, so this quarter. So I just wanted to understand the progress on that. Smart key orders continue to get deeper penetration and depending on the SOPs of the customers that are there. Of course, in quarter one, we had sales to the two-wheeler OEMs. And in quarter two, our sales to Japanese OEMs have also started. So yes, that is the SOP or the startup production has already happened within the quarter two. Okay. And so secondly, on the TLA with Sanco, since we are developing it locally, I just wanted to understand, would the materials be also sourced locally or would there be some level of import content in these products? So there's a localization roadmap always, right? And so we already have that aligned with our customers and partners on how we are going to have phase-wise localization. But to achieve the higher domestic value add, from day one, we will be achieving that as per the government requirements. Okay. All right. That's it from my end. Thank you so much, sir. All the best. Thank you. Thank you so much. The next question is from the line of Parag Thakkar from Fort Capital. Please go ahead. Yeah. Hi, sir. I'm audible? Yes, Parag. Yeah. Thanks a lot for the opportunity and congratulations for a very strong set of numbers. So basically, what we are observing is that, as you rightly said, that the macroeconomic environment is tough. And so the revenue growth is still below 10% at around 8%. But still, you managed to grow your EBITDA by around 12%. So do you feel that this trend will continue? Because as you rightly pointed out, that focusing on quality of growth, so EBITDA growth will outpace the revenue growth. That was my first question. The second question is, we have seen good numbers in October month from some of the two-wheeler companies and some of the OEMs in the four-wheeler also, like to be specific, M&M and all. So do you feel that, at least in the second half, the revenue growth will also accelerate better than what we have seen in Q2? And third thing, I'll just start with that. For example, many of your good customers, OEMs like M&M and all, are launching electric SUVs and all. So whether we'll be also part of their supply chain and whether that content per vehicle will also increase in those kind of models which are going to be launched by OEMs like M&M, to be specific? Yes. Perhaps I'll answer the last question first. Yes, we are part of the various products that are going into the battery electric vehicle of our customers. And yes, we continue to have a deeper penetration in line with our commitment to grow the four-wheeler products in our customers and our product range. So yes, you will see those products when that product launches. On your first and second question, when it comes to the revenue growth and the EBITDA growth, as I stated, we are in the midst of pivoting the group and the company towards making it a more competitive organization in line with our commitment to outpace the industry as well as grow in the line of the industry growth. So while the domestic revenue has grown ahead of the industry, however, some factors like the export and the commercial vehicle segments have pulled us back. Also, when it comes to our quality of revenue with sustained customers, it's very important. While we had won some orders in the previous years from large two-wheeler EV OEMs, but we have not seen light in those customers due to some reason, as the customers have not started production. So that is, I think, most important where we are pivoting. Second is the quality of the product mix, which is going to give us higher revenue in terms of the order book that we have done in the past. And we have been very, very conscious in terms of the customers and the products that we are choosing. And third is the earnings, which you mentioned. Quality of earnings is the focus for being economically more value-related. So in this quarter and in the last five quarters, with our commitment to consistency and sustainable EBITDA numbers, we've been growing our EBITDA value, absolute value, as well as percentage quarter on quarter for the last five quarters and more. So yes, we will and we are going to achieve towards 12%. But most important for us is consistency, which is what we are delivering. So in the process of building our core, I am very confident that achieving the double-digit sales growth number is just, for us, very easy. But in this overall scheme of being competitive, I think achieving an 8% at the moment is something that we are where we are. So very, very positive in terms of the future outlook and taking this organization towards a double-digit growth as well as the 11.5% EBITDA numbers. So last question. Congratulations for achieving 20% ROCE. And of course, the net debt is also very negligible. So definitely, you will be looking out for inorganic opportunities also. So to grow your business, one thing which, as a shareholder, as an investor, I would like to say is that whenever you do any inorganic acquisition or something, the ROCE metrics will be kept in focus, right? You will not compromise too much on ROCE, even if you are exploring inorganic opportunities, right? Because see, definitely, EBITDA growth is paramount, of course, and the PBT growth, of course. But ROCE, you are saying that you are aspiring for 25%, which makes us very happy as a shareholder. So while exploring inorganic opportunities, ROCE will be a metric which you will consider, right? Absolutely. Again, we have very strong financial prudence matrix internally approved by the Board of Directors on capital allocation. And any kind of inorganic or capital allocation cannot dilute our ROCE. So ROCE above 20% is our prime capital allocation financial rules. Excellent, sir. Thanks a lot. All the best. Thank you. Thank you so much. The next question is from the line of Shweta from Arihant Capital Markets. Please go ahead. Hello. Am I on the audible? Yes, yes, you are. Yeah. Good evening, sir. There's a couple of questions with regard to export revenue. So with export sales, like year on year, what additional measures the company is taking to boost the demand in Europe and the U.S., particularly in response to the subject demand for die-casting business? Yes, Shweta. We are taking various measures. Of course, I will not be able to share them due to our competitive advantage in that. But yes, we are always on creating new avenues and new opportunities on how we can grow our export market, whether for the existing older ones already or for the new businesses. Okay. So any specific growth targets for exports over the next 12 or 18 months? Ma'am, I can share with you that in the mid- to long-term, from current, about 7% our growth from the exports is expected to be, and our target target is to be about 10%-15%. And in that respect, we already have the order book in place, and we're continuously booking orders. I may not be able to comment in the next 12- 18 months as there are various macroeconomic factors that are going to be in place. Okay. And sir, could you please provide the breakdown of export revenue by product segment, if possible? Ms. Shweta, if I may request, you could get in touch with our IR team after this for a detailed breakdown, and we'll be happy to share whatever we can. Okay. Okay. Sure, sir. Thank you so much. T hank you. Thank you so much. The next question is from the line of Sridhar Kalani from Axis Securities Limited. Please go ahead. Thank you for the opportunity. Am I audible? Yes, Sridhar. Good evening. Yeah, good evening. So I have a question regarding the order book where you have mentioned that you have INR 4,750 crore of order book. If you could help us understand what is the end user segment mix for the same and annual peak revenue that we can generate from this order book? Yes. The annual peak revenue typically is divided by four or five. And the peak value basically starts coming in from the second year after start of production. And again, in the automotive, once you win the business, typically the start of production happens about 12- 18 months from where we win the business. So if you won the business in H1 for about INR 4,700 crores divided by four or five, you can say about INR 1,100 crores. That would start coming in from the 18- 24 months from now. And the peak value should come at two and a half years from here on. But out of this INR 1,100 crores, it also depends on how much is replacement business and how much is new business. So that also plays a factor. And typically, it's about 60-40. 60 is new business and 40 is replacement business. Understood. And also, what would be the end user segment mix in the order book, two-wheeler order book, percentage for four-wheeler and commercial vehicle? What would be the mix? So it is in line with our current revenues. So again, two-wheelers and three-wheelers continues to be, I think, about 40% of the total order book. Four-wheelers is somewhere about 20%. The rest is the commercial vehicles and off-road. Understood. Does the order book include any orders for the sunroof and closure systems? Yes. As I've explained before, we are setting up the facility there. So we are under advanced discussions with customers. Some of the product launches have been finalized, always been finalized with the customers. So as of this year, we will do that. Understood, sir. My second question was regarding the commercial vehicle business. So we mainly deal with MHCV segment or LCV segment, sir? We're talking to all the segments of commercial vehicles, which is LCV or medium and even high commercial vehicles. So for the details, of course, our IR team can give you. But yeah, we're talking to all the segments, all the commercial vehicles, one time, two times, thirty times, twenty times. Understood. My main reason to ask was, at the ground level, how are you seeing the trajectory of the commercial vehicle business going ahead since it has been subdued for quite some time over the past one year? How's the ground level purchase orders or anything you could share your trend view in the commercial vehicle space? I would request you to ask the questions to the commercial vehicle OEM manufacturers. They can tell you better. For our customers, I cannot comment, but for the industry outlook, definitely, with the new government coming in and the macroeconomic, the infrastructure expense and the other investments that the government is doing, I think definitely is going to improve. If you see, before a year, the axle load norms, as well as the 15% extra in terms of the weightage allowance that the government had done, which created extra capacities for the commercial vehicle segments. So as and when these policies, as well as the government changes and increasing the expenditure, I think you will start seeing commercial vehicles pick up more. Understood, sir. And my last question is a housekeeping question with regards to employees as a percentage to sales, which we have seen a decrease in this quarter. Have there been any appraisals mainly in accounting, or there has been some reduction in employees or any major steps that you have taken with regards to the employees? So I will ask our CFO to answer. But on the employee front, all I can share is that, as an organization, we value the employees the most. And we have taken various measures strategically to build our talent and capability and competency of people from within, from university to the highest. So we are taking various measures in order for optimization, better productivity, and talent growth from within the organization. Understood. Thank you. Thank you so much. The last question is from the line of Shailly Jain from Dolat Capital. Please go ahead. Hi, sir. Good evening. Thank you for the opportunity. Sir, where do we stand in terms of localization, and what are our targets for next coming one or two years? How are we localizing, and what steps are we taking on? Hi. Good evening, Shailly. That's a very broad question. But if you look at our RMC, it's about 63%. We are not importing too much, but there are some commodities and components like semiconductors, displays, and some connectors that we are currently importing from China, or if there are some direct materials from our customers. As for localization, we as an organization are investing in terms of building our capabilities as well as our supplier base in order to meet the localization or import challenges and creating competency within India. So we continue to invest some of the equipment as well as their technology capabilities for offering localized solutions to our customers as end products, which we are mainly currently importing and selling, or for our backward integration in terms of the child parts or the components that I explained to you, which open up new avenues for us as a business segment as well as our creating competitiveness for our customers in terms of the electronics or connectors and other sub-commodities. So I may not be able to give you a percentage or a number on the call at the moment, but we have created a small team in order to focus on reduction in or increasing in localization and reduction in import component costs. Got it. Thank you. Thank you, Shweta. Sorry, Shailly. Thank you so much. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you very much, and once again, good evening for joining this call. I would like to again share that Minda Corporation is on the trajectory to honor our commitments for consistent and sustainable growth on quarter on quarter and year on year basis. We are pivoting and building more competitive organization and investing further in our competency, capabilities, and capacities in our manufacturing as well as in our engineering footprint. Our focus is how we can invest and become a technology-led company in India with focus on best operational excellence. Our growth focus is on how we can outperform the market as well as become the leader when it comes to the financial parameters within the automotive segment. We continue to look for inorganic partnerships, and this is going to be driving force for us going forward. Thank you very much for joining us in the call, and we have any questions outside this. Thank you. On behalf of Nirmal Bang Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.