Ladies and gentlemen, good day and welcome to Motherson Sumi Wiring India Limited Q2FY2026 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 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 the Chairman, Mr. V. C. Sehgal. Thank you, and over to you, sir. Thank you. Good evening, ladies and gentlemen. Thank you for joining the results conference call of MSWEL. I am pleased to announce that the board has approved the results of the second quarter of the fiscal year 2026. The company has delivered its best-ever quarterly performance with revenues of INR 2,762 crore, out of which the new greenfields contributed approximately INR 190 crore. EBITDA for the quarter stood at INR 280 crore, which is 12% growth on a year-on-year basis. MSWEL has delivered exceptional performance, significantly surpassing the industry benchmarks. This achievement reflects a robust volume of content mix, complemented by the premiumization of our strong presence across the majority of the new OEM models launched. I'm pleased to announce that most of our upcoming greenfields are currently in the ramp-up phase, aligned with the evolving customer requirements. With that, I conclude my remarks. Joining me today are Pankaj. Allemann, Gulshan, and Vaaman, who will be happy to address any questions that you may have. Thank you all very much and wish you a good group of. Thank you. Over to you. Thank you very much, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask questions may press star and one on the touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only hands while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and one to ask questions. The first question is from the line of Raghunandan N. L. from Nuvama Research. Please go ahead. Congratulations, team, on strong revenue performance outpacing industry and the sequential improvement in profitability margins. Sir, my first question. On the greenfields, utilization has reached 36%. It is an improvement compared to last two quarters. How do you see the utilization shaping up by Q4 FY 2026 or by H1FY 2027? Would you expect utilization to reach optimal levels of 70-80%, considering strong demand conditions and also launch of new products by customers? Thank you, Allermann. Yes. Raghunandan ji, the greenfield utilization is all dependent on how the volumes will take place from each of the customers. In case they are going to make the volumes which they have projected at the start of the business, then obviously this utilization will increase. In case it is delayed or something like that, then it will not be fully utilized. One of the greenfields obviously has ramped up to the volume, which is given. The other two are ramping up at this moment to the volumes. Hope I am able to answer your question. Thank you. Thank you, Raghunandan ji. On the greenfield side, one clarification. If I take the EBITDA margin for greenfield, it is currently in the negative territory because utilization is ramping up phase. At what level of utilization would it turn profitable? Allerag? I think it's a. We have to wait and watch because as soon as the utilization comes and the volumes ramp up and the utilization reaches to a level of around more than 70 or 80%, at that time you are getting utilized the plant completely for what you have set up there. Then you will get those results out of that. As I said, it all depends on how the volumes will take place, which is already in. On the ramping-up stage. We have to wait and watch in that particular area. Got it, sir. Thank you very much. On the cost side, I had a question. As indicated in the presentation, copper prices have increased 5% QOQ. Would this be the main reason why raw material cost to sale has increased sequentially, or whether the increase in share of EV QOQ has also led to higher R&D sales? We did not see. New greenfields, and their costs are also there without the sales. Anurag, can you clarify more? Gulshan, maybe you can. Looking at the margin with respect to the greenfield units, it would not be the right time to because it has been improving quarter on quarter. As far as copper prices are concerned, obviously it has been increased from the preceding quarter, and year-on-year also has an increase of 13%. Depending upon the copper content in our models, obviously there has been some increase in our cost, which is sitting out at. In both existing and the expansion in the greenfield units, it will take some time to absorb. Our other cost, as soon as the volumes will ramp up, obviously that cost will be absorbed as we progress further. Got it, sir. Thank you so much. I'll fall back to the queue. Thank you. A reminder to all the participants that you may please press star and one to ask questions at this time. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead. Yeah, thanks for the opportunity, sir. Again, congrats on a good set of numbers. Sir, my question is, again, on the greenfield part. If I look at the performance at the EBITDA losses for the last couple of quarters, it seems that as revenues have ramped up from INR 120 crore to INR 190 crore, the losses also seem to have gone up from INR 26 crore to INR 46 crore. Can you share some more color on the reason for that, and should we expect some more increase in the losses before we start seeing the benefits, or how should we sort of think about going ahead from here? Go ahead. With respect to the greenfield units, our losses have not increased. It has been improved because the volumes are in the process of ramping up. As far as the numbers are concerned, with respect to the previous quarter, there was a loss of INR 31 crore, and which you are saying that it had went up to INR 46 crore in the current quarter is just because of the fact that there were certain recoveries that were there in the previous quarters. If you just remove that in part, the losses were around INR 70 crore, so on the gross level numbers. The situation is improving quarter on quarter, if you just see, with respect to the greenfield expansion performance. Okay. Understood. Second question is, sir, on the product mix side. If we just see at the greenfield, we have been able to sustain that 12-12.5% margins for quite some time now. Like you said, I mean, the greenfield will ramp up with OEM volumes. Is there any sort of adverse mix impact on the longer-term margins? For example, our EV share has also gone up from 4% to 7% over the last couple of quarters. Given that the EV share will continue to inch up over, say, a couple of years, do you sort of see that the margin trends which you are reporting at greenfield, you can achieve that, or because of EVs, that may be difficult? Any color on the product mix, how the margins there are, if you can share some color, will be helpful. Thank you, Allermann, Pankaj. You see. Anyway, the company does not guide in terms of margins. The company, as a group, we have been focused on return on capital employed. I want to answer your question whether a particular segment or a particular customer or a particular region will have a very different profile. It is not so, so it all depends on projects. Project by project, the teams work, look for opportunities, and improve the efficiencies to get these margins. That is how the company works. There are many different types of models to which we supply, many different industries in which we supply, and what we see in our results is an amalgamation of all of them put together. The endeavor of the team has always been to continuously strive to keep up good performance while we enter new domains or we set up new plants, and also to continuously, of course, we have to invest ahead of time to be able to give a flawless launch to our customers and then keep improving. As time passes, the efficiencies and other benefits keep coming. Got it, sir. Thanks a lot. I'll come back in the queue. Thank you. You may please press star and one to ask questions at this time. We'll take the next question from the line of Raghunandan N. L. from Nuvama Research. Please go ahead. Thanks again, sir, for the opportunity. On the staff cost. They seem to have stabilized at INR 475-480 crores in Q1 and Q2. Are the employee additions relating to greenfield plants completed? Should we expect the staff cost to remain in a similar range going forward? Allerag, Gulshan? Yeah. Raghunandan ji, as the volumes will ramp up, there will be more requirement of the shop floor people, which will eventually happen as the volumes will grow. I think it has not completely, the total manpower has not come as of now. As the volumes are growing, we will be recruiting more. I'm talking about the shop floor people specifically. That goes hand in hand, as the volumes grow, the manpower number also grows accordingly. Efficiency will also improve during this period because the volumes ramp up, the numbers go high, then the plant also goes to the different level of productivity. Got it. Thanks, thanks, Raghunandan ji. The EV shift is leading to content increase. EV share has gone up 7% versus 5% last quarter. Led by the ramp-up of new plants, would the share of EVs further increase in coming quarters and possibly reach double digits by FY 2027? Also, sir, now that the EV-related volumes are going up, can you also talk of efforts on localization of supply chain, especially for the high-voltage harnesses? That's a great question. Pankaj? Can we? Raghunandan ji, basically, you are right that with the ramp-up of the greenfields, the total value of our contribution to the EV market will grow. As the market embraces more EV vehicles, it depends on that, the intensity of the embracement and the availability. However, the other vehicles are also growing in good numbers as we see today. The percentage increase is very difficult to predict. Yes, we do see that as we supply to the new launches which are coming in, and we'll also have both EVs, ICE, hybrids, all kinds of vehicles. It's a mix. Got it, sir. Thank you so much. And come back. Thank you. Thank you. Please press star and one to ask questions. The next question is from the line Jay Kale from Elara Capital. Please go ahead. Yeah. Thanks for taking my question. My first question is regarding your margins. I mean, you reported it is around 10.1% and adjusted for startup cost 12.7%. You did mention that as startup costs. As your plants ramp up to closer to 70-80%, you should see meaningful improvement in margins. Just given your product mix in your new plants, which is tilted, of course, also towards EVs, do you see these new plant margins at 70-80% utilization level reaching those 12.7-13%? Or is it fair to assume that given that EV mix is higher in the startup plants, it may be difficult for you to reach the current ICE margins once they fully ramp up, even if once they fully ramp up. Pankaj, Allerag? Sir, as we answered in the previous question. The margins, one is that the company does not guide on margins. It is guiding on return on capital employed. That has been our direction. Because the content and sometimes high-value parts may be embedded in some of the products, and that has been the reason that how we can enhance our overall efficiency. However, the overall result of the company includes multiple different products. And even in the greenfield sites, it is a mix. Even when we will look at what we supply to EV or what we supply to non-EV, we do not kind of see that there has to be a difference in terms of our return on capital employed or if you want to take it in terms of margins. We do not want to differentiate amongst them. As a team, our teams will strive to find opportunities, make improvements to create winning solutions for our customers so that it's a win-win and we provide good solutions to our customers for a very stable and good performance and robust performance. Sure. Just one more question. What would be your CAPEX guidance for this year and probably next year? For this year, the CAPEX would be around INR 210 crore. That is something we have budgeted. For the next year, we are in the, I mean, obviously, it depends on the customer requirements and how they will be panning out. We'll be able to finalize by the end of the year. I think we will have more clarity on that. Sure. Thanks and all the best. Thank you. You may press star and one to ask questions. The next question is from the line of Sonal Gupta from HSBC Mutual Fund. Please go ahead. Yeah. Hi, good evening and thanks for taking my question. Just a couple of clarifications. One is on these greenfield losses that we are giving, these are direct plant-related costs, right? There is no allocated cost going into these items, right? There's no corporate overhead or other allocated costs going here. These are the direct plant-related costs. Okay. Just the other thing, right, on the, I think Raghu had asked this question earlier, was on the copper and I mean, I understand there could be mix differences, etc., also. Is there, I mean, because of the raw material prices moving up, you're also appreciating over the last couple of quarters. Hello, can you hear me? Hello? Yes, sir. Hi. Yeah. I just wanted to get a sense, right, is there, what is the level of raw material price inflation that is helping on the top line? Could you give us some sense on that? I couldn't hear the question, but Pankaj and Allemann, if you did, then can you answer that? Yeah. If I understand your question, you're talking about the top line, right? How much it is impacting our top line, right? Yes. In terms of, right? There are two things to it. The first is we have a contractual commitment with our customers. Whenever the copper prices increase, we always get it compensated from the customer. If it gets down, always the benefit of that will be given to the customer. The first is that. This has always happened with a quarterly lag because the quarter resetting of the prices always happens in the beginning of the quarter. There is always a quarter lag, which is reflected in the performance. The second, as you asked, how it has been reflected in our top line. If you just see year-on-year, copper has gone up by 13%. Obviously, depending upon the copper content in our models, it reflected. Somewhere around a low digit number in a low digit, I mean, single digit at the lower side, which is impacting our top line for the current quarter. Not that significant, which really affected our, which really benefited our growth. Because the compensation will be reflected in the subsequent quarter. Subsequent quarter. Yeah. Right. Right. Yeah. So, basically, because the quarter was pointed out that copper is up 5% quarter- on- quarter, this compensation is yet to come, right? Next quarter is when we will. Yes. The quarter or six-monthly, so different contracts have different terms, but they have the terms to move on. That will be the quarter. Got it. Got it, sir. Great. Thank you so much. Thank you. A reminder to all the participants that you may please press star and one to ask questions at this time. I think. There's an issue with the line of Mr. Sehgal, or is he connected? Yes, that is correct. Sir, I'm trying to connect him. Give me a moment, please. Oh, otherwise, since there are no more questions, we thank all of you. As Mr. Sehgal said, wish you all a very happy Gurpurab and all the best. Thank you very much, sir. Ladies and gentlemen, thank you, members of the management. Ladies and gentlemen, on behalf of Motherson Sumi Wiring India Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.