Ladies and gentlemen, good day and welcome to Motherson Sumi Wiring Limited Q3 FY 2025 earnings conference call hosted by. 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 the star, then zero on your touch-tone phone. Please note that this conference is recorded. I now hand the conference over to Mr. Vivek Chaand Sehgal for his opening comments. Thank you. Good evening, ladies and gentlemen. Thank you for joining the result conference call of MSWIL. I am pleased to announce that the board has approved the results for quarter three of financial year 2025. This year is turning out to be a very exciting one for the Indian automotive industry, with the OEMs launching a slew of new models across EV and ICE platforms. With feature-rich content, this has augured well for us, with the company outpacing the industry by approximately 6%, attributed to the favorable product portfolio of increased content with platform mix. The Indian PV industry grew by about 3% year-on-year, with registering a degrowth of -8% on a sequential basis. Similarly, two-wheeler industry demonstrated 8% growth year-on-year, with a degrowth of 5% sequentially. While CV industry, specifically for heavy-duty and medium-duty trucks, remained weak on a yearly basis, growth of about 4% on a sequential basis. In this context, the company has delivered revenues of INR 2,300 crores for quarter three, in which the new greenfields contributed approximately INR 80 crores EBITDA. Remained stable for the quarter, ending excluding greenfields at INR 278 crores, representing a 6.1% growth on a year-on-year basis. This shows an improved profitability of the business excluding the greenfields. The three greenfields are progressing in different stages, fully ramping up, while Navagam and Kharkhoda are set to be on stream H2 2026. These are new facilities and will cumulatively drive an annual revenue boost of approximately INR 2,100 crores, marking approximately 25% growth over financial year 2024 revenues on a baseline. The team has done well to secure businesses with marquee OEMs like Maruti Suzuki, Mahindra, and Tata Motors across EV and ICE platforms, exclusively for new ones. I would like to reiterate that these are not just replacements or mid-cycle updates, but absolutely new ones. MSWIL remains the preferred supplier for the new age vehicles by OEMs. The team has worked hard in developing these solutions for the customers, along with a robust localization plan. Since new facilities are in different stages of completion, certain costs have been expensed upfront. There is a negative net greenfield startup cost impact of about INR 40 crores on EBITDA and INR 32 crores on PAT, which is expected to be negative. Net greenfield startup costs are expected to stabilize as production comes on stream with the new plants. We continue to have conversations with our customers for some of the pain sharing on some of the costs associated with expansions. Our CapEx value for the year remains at approximately INR 200 crores. We have expensed about INR 133 crores in nine months. MSWIL continues to be a debt-free company. With this, I would like to conclude my remarks. I have Laksh Vaaman Sehgal, Pankaj, Anurag, and Mahender with me to answer any questions that you might have. Thank you, and over to you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw 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 Jinesh Gandhi from Ambit Capital. Please go ahead. Yeah, hi sir. A couple of questions from my side. One is you talked about INR 40 crore impact at EBITDA level from the greenfield. Just to clarify, this is for third quarter and on quarterly basis or for the full year? Mahender, can you answer that question, please? Yeah, sure. So this INR 40 crore EBITDA impact is for the third quarter from the three new greenfields that we mentioned. Okay. And what would be revenue contribution from these three greenfields? You mentioned EBITDA of INR 80 crore. What would be revenue contribution from these three plants? Yeah. So as of now, where the ramp-up has already started, the revenue is, given the revenue is about INR 80 Cr. And I mean, a number of these plants are still in the ramp-up phase, and we have given the SOP schedule when the commercial production would start. So wherever there is a revenue, the revenue is about INR 80 Cr, but the cost is there for the other plants as well, where the revenue is yet to come. Got it. Got it. And the third question pertains to we have seen some of the new age competitors, new age OEMs talking about the advanced technologies, including cables instead of wires on the wiring harness side. Any views we have on those technologies on that? I mean, yesterday we went to a new age OEM had showcased that product. Any views on that? Jinesh, can you please repeat your question? So yesterday, one of the new-age two-wheeler OEM had showcased advanced wiring harness where it was based on cables which are much smaller in length and lighter in weight versus a normal electric wiring harness which would have weighed about 4 kg. This was about 800 g. Any views on such emerging technologies? I'm sure they are also working on it, but any sense on how does it influence our business? You're talking about the new age cars which are being launched in India, or this is about something? The new age, primarily EV two-wheelers. Ola yesterday showcased their motorcycles in that they showcased these cables instead of wiring harnesses. You're talking about the two-wheelers. So these are like these three plants which we explained are about the new age cars which are coming in. So we have given an entire schedule about these launches. They are from Maruti Suzuki, Mahindra and Mahindra, and Tata Motors in particular. Okay. Got it. I'll fall back into a formal question. Yes. Also, Dinesh, I think new things cannot be experimented in all that. They try and showcase all the new technologies, but this is product liability and all that is huge in this business. So it's not a telephone that they are doing. This is a car. Car or two-wheelers, these are human life dependent. So there's always a lot of research which has gone into this, but I think as Pankaj said, we'll come back if there is an issue. And if it is, we are also in the same boat here. Thank you. you. Thanks and all the best. Thank you. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead. Yeah. Thanks for the opportunity, sir. Sir, my first question is on the growth. We have seen revenue growth which has been much higher than the industry volume growth in the past. That gap seems to have come down quite a lot in the last couple of quarters. So is this more reflective of the current content increases being lesser than in the past? And is there any changes in market share also in the industry, or are we largely seeing similar market share? Normally, we don't guide on market share. We think market shares for pre-installs. But look, this is a rapid-changing scenario, and it's really very difficult to come out with some credible numbers and all that because it's changing very fast. Pankaj, you want to add something more on that? Yeah. And basically, it's also the model mixes which happen. And as you would see from our presentation, the new plants which we are launching, as per the customer volumes, these are all new age vehicles. They should contribute significantly to the revenue up around INR 2,000 crores plus, INR 2,100 crores annually. Also, Hyundai and Kia group, those are taken care of by the joint venture company. So if you look at it from the India perspective, MSWIL has been very well entrenched, and we're grateful to our customers for partnership in the new vehicles which are being launched in the market. Got it, sir. Will it be possible to share the EV segment high-voltage wiring harness contribution in the current quarter's revenues or probably in the last nine months? See, generally, the revenue coming from EV vehicles have been in between 3%-4% approximately. I mean, ballpark. Understood, and these three greenfields which are starting now, what will be the peak revenue potential from these plants going ahead? Yeah. It's about INR 2,100 crores as per the forecasts which are given by the customers. If they increase further, then it could be more. Okay. And it will be a mix of both high and low-voltage wiring harness? Yes. Okay. So this ramp-up, so startup costs, we should expect should start normalizing from quarter four onwards, or do you think the startup costs may continue for some more time before this ramp-up plays out? See, there is a presentation on which we have given when our SOPs are happening, so startup costs will start to advance in May. Some launches are happening now, and in Gujarat, it will be in Q1 of 2026, and some launches are happening. SOPs are happening in Q2 of 2026, so around that period, Q2 2026, Q2, Q3, that's the time when it should get normalized completely over a period of time. Got it, sir. Sir, you have said for the third quarter, it is INR 40 crores. Will it be available for the last nine months? Because in the first and second quarters also, we had some startup costs. So for the nine months, would you have the impact in EBITDA? It's also given in the presentation, Mr. Mahender Chhabra. Yeah, so for the nine months, it's about 95 crore. 95 crore. Got it, sir. Thanks a lot. I'll come back in a bit. The next question is from the line of Gunjan Prithyani from Bank of America. Please go ahead. Taking my questions. I just had a follow-up on the three new plants that you mentioned. Now, these are all in newer locations, right? Pune, Gujarat, all these locations are new. I just wanted to get a sense that when you are expanding into these new geographies, is the profitability or margin going to be very similar to what our core business has had in the past? The reason I ask is because it's a labor-intensive industry, and there may be labor laws which are different, expenses which are different on discount. So just want to get a color on whether the profitability remains the same when you get into newer locations. Pankaj and Mahender can take this. Yeah. Ma'am, for us, we have been in Pune for a very long time. So initially, there have been brownfield expansions and greenfield expansions in Pune. So Pune has been since 1997 or something, we have been there. So it's an old time. In Gujarat also, we have been there in Sanand. So this is an expansion in a new land because the volumes are growing, so we are setting up more facilities. Similarly, if you look at Kharkhoda, it is not very far from within the NCR region where we have been there since the beginning, since the foundation of the company. And when we go to new regions also, we take care because every time we have been expanding, the company has more than 30 manufacturing sites today. It has expanded very well. And having a concept of a mother plant which supports any new plant which comes in with people getting trained and people being treated respectfully in every geography where we are. So MSWIL operates its plants in every region of the country, wherever the carmakers are there, whether it be in Chennai or Bangalore or Gujarat, Pune, NCR region, everywhere. So with its good practices and humane practices, it has been operating the plants efficiently in all the regions. Okay. I understand that, and the other thing that you mentioned that we are in conversations with the OEMs to share the pain on the startup cost, is that a practice which is usual? I would expect that these contracts are only when the revenues start to accrue, so is there something that we can expect that these cost hits could come down before the plant ramp-up happens? I'm not quite sure of the comment that you made initially. Ma'am, there are certain costs which get incurred during the development period. There are certain changes which happen during the development period. So that's why that comment is there. So there are things which get discussed with the customers, and they get shared. Okay. All right. Got it. Thank you so much. The next question is from the line of Raghunandan from Nuvama Research. Please go ahead. Thank you, sir, for the opportunity, and also, thank you for sharing the details of the upcoming plants and customers. Very helpful. Sir, two questions. Firstly, on the high-voltage wiring harness, with the new plants coming in, that should also indicate a higher focus on localization, and if you can talk a little bit about how the efforts have been in terms of reducing the import content, increasing localization, and would there be any targets you would like to share going forward? Thank you. Pankaj, over to you. There are localizations which have happened in terms of the cables for high-voltage harnesses, and as far as the connectors are concerned, some of them have also been localized already. Still, there are a few which are imported, and as we see newer models coming in, especially coming from global carmakers, there may be still some more import contents as they have been designed outside, but they all have a direction that over a period of time, they would want to localize or as they launch more models, they would like to localize. Thank you, sir. And imports, the currency movement of late is the Rupees depreciating continuously. On the USD-INR movement, would we have arrangements with customers to pass on the impact? Yes, sir. Got it, sir. We have almost every customer, so. Pankaj, am I right? Yes, sir. Yes, sir. Thank you, sir. Thank you so much. The next question is from the line of Avesh Pansari from Chanakya Capital Services. Please go ahead. Yeah. Thank you for the opportunity. Just would it be possible to give the break-up of revenue as per vehicle categories like commercial, passenger, and two-wheelers? Mahender, have you given that in the? Yes, sir. We provide this data once in a year on annual basis. And this was in the last annual report. You can go through that. Passenger vehicle is approximately 59% approximately, and two-wheeler is 10% to 12%, and then commercial vehicle is also 10% to 12%. So breakup is given on the annual report. You can refer back, please. It's the same for this quarter also, or are there any changes? No. There is once in a year only. Okay. Thank you. Mr. Avish, does that answer your question? Yeah. Yeah. It's fine. Thank you. Thank you. The next question is from the line of Jinesh Gandhi from Ambit Capital. Please go ahead. Yeah. Hi, sir. For these three plants, what would be the total CapEx listed for these three plants, and what kind of manpower addition would be happening for these three plants? So in terms of Capex, depending on the size, it's about 40 to 60 CR that we spend on one plant, and this doesn't include land and building, which we take on lease from SAMIL. Okay. So that probably should be roughly about INR 150 to INR 180 crores for the three plants put together. Got it. And total manpower addition would be what, roughly about 15,000 to 16,000 people or lesser than that between the three plants? I think these plants are, as the volumes are given and for the product we are making, these are sort of little large plants. So between 2,000 to 2,500 manpower will be involved in these three plants individually, each of them. Okay. Got it. Okay. Thank you. Thank you. Participants who wish to ask a question may press star and one at this time. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. The next question is from the line of Shirish from Nippon India Mutual Funds. Please go ahead. Thank you. I understand the correlation between copper prices. And so if I look at the industry growth and add it up with the copper prices, somehow your growth seems much lower than the number which I was looking at. So can you explain why really is there a difference? Because Y-Y copper prices are up 12%, plus industry volume growth also was not too bad. So our growth in that context looks a little low. If you can elaborate on that, please. Look, your calculations are based on what? On your calculations or it's some kind of a standard or something? Just looking at the copper prices, there was a fair bit of inflation. Just want to understand if, how are you looking at market shares? Are the market shares stable, or was there a difference between the production and the wholesale numbers that we are looking at for the industry? I think we've already said that our growth is higher than that of the market. But we can't just answer on speculation that it looks lower. It looks higher. It's very difficult for us to quantify what you're saying on what basis you're comparing. But Pankaj. Copper price inflation was 12%, and the industry growth would have been close to. So if I draw a parallel from that, 59% comes from PV, 12% from M&HCV. On that basis, the industry would have grown at least a double-digit kind of a number close to a low double-digit. So based on that. Yes, sir. Yeah, so I'm just trying to understand. Industry growth, if you will see, is about 3%, sir. Okay. Okay. Understood. Sure. Thank you. Thanks. Thank you. A reminder to all participants that you may press star and one to ask a question. Participants who wish to ask a question to the management may press star and one. As there are no further questions from the participants, I now hand the conference over to Mr. VC Sehgal for his closing comments. Yeah. I think the board congratulated the team. I think they've done a phenomenal job, including the marketing people and all that. Three new plants in three new geographies. Even though we are present there, it's still a huge mammoth task, but the company has done that. The prospects look phenomenal even in the coming months and all that. We'll keep you informed. And thank you very much and wish you all a very good week ahead. Thank you. Ladies and gentlemen, that concludes the conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.