Ladies and gentlemen, good day, and welcome to Samvardhana Motherson International Limited Q4 and FY 2023 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 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. V.C. Sehgal, Chairman of the company. Thank you, and over to you, sir. Thank you. Good evening, ladies and gentlemen. Welcome to Motherson Financial Year 2023 annual results presentation. I'm glad to announce SAMIL board has approved the annual results, and are happy to report another strong quarterly performance. Key highlights of our performance are: we have delivered a strong performance with the highest ever quarterly, yearly gross revenues of INR 89,000 crore. We are getting good support from our customers in sharing the inflationary cost structure. Lowest debt and leverage ratio of 1.4 in the past six, seven quarters. SAMIL automotive business is of nearly $70 billion or INR 5.7 lakh crore. This is a reflection of our customer support and trust. Approximately 20% of this will be coming in from the EV side. Seven strategic acquisitions in the past 14 months, potentially adding 40 facilities, 8,000 employees, and approximately EUR 4.9 billion on gross and EUR 1.1 billion on a net basis to the top line of the company's post-closure. I now hand over to Vaaman. He will take you forward. Thank you. Thanks, Papa. Good evening to everyone. As you know, this has been the first full year of operations post our reorganization. We have achieved the following strategic objectives. We've simplified the group structure by bringing all of the auto components and allied businesses under one umbrella. This has created alignment of interests of all the stakeholders. We've also created strong platforms for future growth with well-diversified product portfolio, customers, and our countries. The company has reported yet another stellar performance, with the highest ever consolidated revenue of over INR 78,700 crores. This is a 23% year-on-year growth, and correspondingly, the absolute EBITDA is also the highest at INR 6,400 crores. Please note that the PAT has grown 3x against last year. For Q4, we have achieved another highest ever quarterly revenue of approximately INR 22,500 crores, representing an 11% quarter-on-quarter increase and a 30% growth on year-on-year basis. Correspondingly, the absolute EBITDA is INR 2,000 crores, with a 23% growth sequentially and 61% growth on a YOY basis. Please note that the PAT of INR 654 crores is up 5x of the same year, same quarter last year. The company has been able to deliver a strong performance against the backdrop of elevated cost structures, higher wage pressure, and the rising interest rate scenario. We would like to thank our customers for their trust and support as we continue to work with them in sharing of these inflationary cost structures. While majority of the discussions for FY 2023 have been concluded, the volatility and challenges in the business environment continue, and hence these conversations will be a recurring one for next year as well. For the first time, we have highlighted our automotive book business of nearly $70 billion. As a brief walkthrough, this tops up the SMRP BV book business of about $39.5 billion, with other automotive business divisions, which is Wiring Harness division, lighting, electronics, Elastomers, et cetera. Out of the $70 billion book business, 20% is geared towards pure EV platforms. This is a very exciting future for us. On the industry side, the LV production in FY 2023 clocked in at 83.5 million units, which stabilizes supply chain. While there has been recovery in the year, we are still more than 20% behind pre-COVID levels in developed markets, and just about coming back to normal level in emerging markets, including China and India. This could possibly imply that the downside risks in developed markets could be limited, and there still exists significant upside and potential with growth coming in the normalization of production schedules and the trends of electrification. Just to cater to the existing and future demands for our customers, especially in higher growth emerging economies like India, we are planning to set up seven new greenfields. Six of those will be in India, three for automotive and three for the non-automotive new businesses. In fact, you may want to note that our standalone business is already at the same size as MSWIL, which was demerged last year from SAMIL. Total India business, including subsidiaries, is over INR 15,000 crores in FY 2022 and has grown at over 25% for the year. With this growth CapEx and purchase of related land and buildings, the CapEx for the next year is likely to increase to about INR 3,000 crores ±10% as compared to INR 2,200 crores this year. We also continue to focus on deleveraging. Our net debt to EBITDA ratio has further decreased from 1.8x in December 2022 to 1.4x in March 2023. This creates enough balance sheet strength for us to embark on both organic and inorganic growth. As the supply chain further normalizes, reduction in elevated working capital will further aid deleveraging. During the year, we completed seven acquisitions that will add a combined gross revenue of approximately $4.9 billion on gross basis, and about $1.1 billion on net basis. The full growth potential of all will be unlocked in coming times. It is important to note that all these transactions are expected to be cash entry as accretive for the company. At the end, we would like to conclude that operational excellence, diversified business model, long-standing customer relationships, having a strong balance sheet and experienced management have combined together to make SAMIL a strong platform for future growth, we look forward to an exciting journey ahead with all of you. Thank you. Now we are open for question and answers. Moderator, please take over. Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a 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. The first question is from the line of Raghunandan N.L. from Nuvama Institutional Research. Please go ahead. Congratulations, sir, on stellar numbers, and thank you for sharing order book details for both the upcoming and ongoing programs and presentation. Sir, three questions. Firstly, as you mentioned in the opening remarks, global four-wheelers are seeing an improvement in supply situation, and they are notably lower from the peak levels, which were seen in 2018- 2019. How are you seeing the ramp up in the near term on the four-wheeler side in the developed markets? Secondly, energy costs have reduced. Considering the current natural gas prices, which continue to correct, would you expect further margin benefits in coming quarters? Lastly, on the order book details for both upcoming and ongoing programs, what would be the average duration in terms of number of years we should consider while looking at upcoming orders and ongoing orders? Thank you. Thanks. Kunal, would you take this thing, and Vaaman, you can add on? Sure. Raghunandan, I think on the four-wheeler side, as you rightly pointed out, as Vaaman was mentioning, it is still around about 20% below pre-COVID levels in the developed world. With whatever production schedules that we have, we continue to see a bit of a ramp up happening still. We're not seeing any decline et cetera, as yet. In fact, on an aggregate level for the year, we still expect that the industry is likely to grow. The growth pace is obviously going to get calibrated depending upon, you know, how the environment plays out. Overall, the downside risks of this is much less than the potential upside is the way we see it. On the energy price, while we have seen a sizable decline happen in this quarter, and, you know, ongoing as well, we anticipate at least up till now, that things are looking pretty static to where it was in the end of the previous quarter. It, however, remains at least three and a half times higher than pre-COVID levels. W e are not out of the woods, and obviously much of the geopolitical aspects will get played into it. The good part, however, is our conversations, I mean, with the efforts that the team has done to work with the customers, we've been able to share some of the elevated cost structures with the customers. And hence, that should aid well, even if there is some amount of increased cost going forward. Overall, we expect that, hopefully, the energy prices are not going to shoot up again going forward. On the duration of the order book side, the average duration is anywhere between five to six years, that's the time span over which we expect this INR 5.7 lakh crore order book to get delivered. Yes, not much to add over there. I think Kunal covered it, covered it well. I would just like to say, I think as a group, we've all come to a, you know, a way of thinking that these elevated cost structures are here to stay. Really comparing them to pre-COVID levels is not the right comparison anymore. We are living in a new normal. Sir, sorry to interrupt you. We believe that-- Sir, your audio is not coming clearly. Vaaman, your voice is breaking. It's coming... This is a different point. I think Vaaman was trying to mention that the cost structures that are there on an elevated level is potentially the new normal, and we have to work around our own business around this area. What has been hit effectively is the lower end of the market. The premium and SUVs continue to do well, and hence our product mix is also aiding our growth. M aybe that's the reason why we are not seeing as much of a downside risk as maybe some of the other players are. Absolutely. Also the order book being aligned towards the EV growth as well. I think that's really gonna help, like, you know, the new models that are coming up. Since we have a significant part of the new order book aligned to these EVs, we expect them to do well as well. You know, we should do better than what is the average expectation in the market. Thank you, sir. I'll get back to the queue. Wishing you all the best. Raghunandan N. L., do you have any follow-up question? No, thank you. That's all from my side. Raghunandan N. L., if you can, unmute your line from your side and go ahead with your question, please. I'm done with my questions. Thank you. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Pramod Amthe from InCred Capital. Please go ahead. Yeah, hi. Thanks for the opportunity. First question is with regard to the Vision Systems. If I had to look at your revenue momentum, it looks pretty impressive at 30% QOQ, versus your own presentation, talking about a muted growth in the regions which you cater. What is this driving 30% growth on QOQ? Is it more new orders or the content per vehicle has gone up? If you can give more color, it will be helpful, and the sustainability of this momentum. Rajesh, you're there? Yes, I am here, yes. Yes. Okay, Rajesh. Yeah, thanks for the question. Primarily, again, I think it comes down to the fact that, you know, we are working with the OEMs on premium models and SUVs, and that's a trend that we are playing on, and that's the segment which is still seeing good performance overall and growth. So bulk of that is coming from there. Also, as you would, you know, we know there is also a lot of contracts which have been renegotiated and all the discussions been going on for some time. That also is helping to then reflect in the, in the top line growth. The second question is with regard to the debt working capital and interest cost. Even though it's impressive to see the net debt coming down by almost more than 10%, the interest cost seems to be still elevated, and literally moved up by 80%. Is it more the cost going up itself is still a reflection? Is it a more sustainable interest cost on quarterly basis? That's one. Second is, you are planning to substantially reduce the working capital requirement. The reduction in net debt seen is part of that, and what extent of journey you have covered in working capital reduction as the supply chain improve, or you feel there's a more headroom available to cut the working capital? Go ahead, Kunal. I think, on the interest cost side, yes, things have obviously moved up on the interest rate side. As some of our fixed rate instruments are getting refinanced into the newer instruments, yes, the interest cost is going to move up. Having said so, this quarter, there has been Forex losses also that is embedded in the interest cost. Some of the corresponding gains have come on the, on the top line side. That's how it's been reported. From the perspective of debt, we do expect the deleveraging to continue on the organic side of the business. The working capital improvements are not out of the way completely. We are there, some parts of the business has been able to do, but I think there is still a long journey to go. As we go through this year, and as more normalization happens, through the year, I think we should be able to continuously I mean, reduce our working capital going forward. Sure. Thanks, and all the best. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Amyn Pirani from J.P. Morgan. Please go ahead. Yes, hi. One clarification and one question. Firstly, you mentioned that, you know, the cost pass-through discussions with the OEMs for FY 2023 are already done. Does it mean that the impact of that is already being seen in the P&L, or will you get these recoveries in the coming quarters? Vaaman, you take this, and then Kunal will follow. Sure. Yeah, for FY 2023, those ones have already been taken and been approved. Of course, because we are in a place where energy prices are moving around significantly, and there is no visibility of how these things will play out other than what actually happens, these will be negotiated as we go down this year. Whatever was there for last year is already there and already reflecting in the numbers. The discussion continues for how these, you know, pan out for the rest of this year, and these will be discussed at the end of the year. Great! That's helpful. Secondly, on the investment and deleveraging, you mentioned, you know, that next year's CapEx is going to be higher, plus you will also have payouts for some of the acquisitions which were already announced, you know, in the last few quarters, and, you know, which will be fully done in the next few quarters. In that context, how should we think about, you know, the deleveraging cycle continuing next year? Okay, I'll take that. Look, Amyn, I think you're going to view it from two different legs. On the organic side, the business will hopefully be doing better and better going ahead. And that implies that the profit generation, together with working capital reduction, should be able to aid spending, whatever that we have on the CapEx side, plus to also use some of the internal approvals for M&A. Then there is a whole host of M&As that we have anyway announced, for which the payouts will happen in the ensuing year. And there is a large pipeline of M&As as well. So with what we have announced so far, I think we should still be within the 2x net debt to EBITDA levels. That's the way at least we see with the announced transactions. Okay. Okay, that's helpful. I'll come back again. Thank you. Participants, you may press star and one to ask the question. The next question is from Binay Singh, from Morgan Stanley. Please go ahead. Hi, team. Thanks for the opportunity, and congrats on good numbers in a challenging environment. My question is on the order book slide. Binay, your voice is coming muffled. Can I request you to speak through the handset, please? I hope this is better. My question was on the order book slide. How do we tie this up? Like, could you share a little bit more about how this, like, this execution number, is it for the financial year I assume that you are talking about? Secondly, like earlier, we used to disclose order book of around EUR 18 billion or so in SMRP BV that was outstanding order book. That was for September. How has that number moved? I'm just trying to sort of connect the order book number that you were disclosing earlier with what is there on this slide. Okay. I think, first of all, this is not the order book number. This is the booked business. The booked business will combine both the orders which are not in production, which is what we call the order book, as well as the business which is in production. Hence, this is what is going to get executed from this financial year all the way over the next five to six financial years. If you look at the SMRP BV presentation, that would have the order book of both the ones which is the entity, I mean, the one which is the amount which is not under production, which is around about $21 odd billion, and the ones which are under production, which is around about $18 odd billion. That gives you a little bit of understanding of what the new orders versus existing orders is. No, no, that is clear. I'll check that out. Secondly, when we talk about next 5-7 year execution cycle and what will be sort of replacement orders versus new orders, just we got to see what exactly will be the incremental revenue from current rate. Any rough numbers on that? Back of the envelope calculation, we were to do your $70 billion over 5-6 years would anyway imply slightly more than $12 odd billion of revenue. Right? Right. Thank you. It's great team. I'll look into the SMRP BV presentation. Thanks. Thank you. Participants, you may press star and one to ask the question. Ladies and gentlemen, you may press star and one to ask the question. Next question is from Vira Bhardwaj, individual investor. Please go ahead. Hi, sir. Can you give me an idea about the CapEx investment that you have highlighted, of about INR 3,000 crore, if I'm not wrong. On what specific areas are gonna it is related to, and what will be the duration of this CapEx? Vaaman, you and Kunal, can you take this? Sure. As you mentioned, this CapEx is gonna go towards both automotive and non-automotive business. We're also expanding the facilities. We've talked about seven of them. Six of them will be in India, and three of those will be in the automotive side and three in the non-automotive side. As we go towards our 2025 targets and by diversification, these are the CapExes that are related to orders that we have, that we have won, that we have to execute for the customers' new launches and the new programs that we are getting. As you can tell from the past calls.