Ladies and gentlemen, good day and welcome to the Raymond Limited Q1 FY26 earnings conference call hosted by Antique Stock Broking. 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 and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev Zarbade from Antique Stock Broking. Thank you. Over to you, sir. Thank you on behalf of Antique Stock Broking and let's welcome in the Q1 2026 conference call of Raymond Limited. Today we have with us from Senior Management of Raymond Limited Mr. S.L. Pokharna, President Corporate Commercial. Mr. Amit Agarwal, Group CFO. Mr. Gautam Maini, MD of Engineering Group. Mr. Navin Sharma, CFO Engineering Business, Mr. Jatin Khanna, Head Corporate Development. And Mr. Sunny Desa, Head Investor Relations. Without taking further time, I would like to hand over the call to Mr. Gautam Maini. Over to you, Gautam. Thank you, Sanjeev. Good evening, everyone. Thank you for joining us today for our Q1 FY2026 results conference call. I hope everyone has had the opportunity to go through our financial results and investor presentation, which have been uploaded on the stock exchanges as well as on the company's website. Let me start by talking about the broader macroeconomic landscape that has influenced our performance and strategic decisions. India's economy maintained momentum in Q1 FY2026 with the GDP growth expected to hold at 6.5%. For FY2026, the manufacturing PMI averaged 56, indicating sustained strength in industrial output. The Indian auto market presented a complex picture in the first quarter of fiscal 2026, revealing a divergence between wholesale and retail performance, particularly in the PV passenger vehicle segment. At the wholesale level, PV dispatches saw a slight decline of 1.4% year over year, while PV retail sales grew by a modest 2.59% year over year. Despite liquidity constraints and monsoon-linked disruptions, commercial vehicle sales grew by about 1%, aided by early quarter deliveries but tempered by regulatory changes and soft infrastructure demand. The near-term outlook is cautiously optimistic as strong government capital expenditure is expected to buoy the CV sector. Potential supply chain disruptions and logistical hurdles from a heavy monsoon season remain key risks. Globally, the automotive environment remains cautious with subdued sentiment in both passenger and commercial segments. Further, rising tariffs in key export markets are introducing fresh complexities, especially for the Indian drivetrain and structural component exporters. The silver lining is the free trade agreement signed with the U.K., where we can leverage growth with our current as well as new customers. The aerospace sector continues to benefit from strong global demand as well as our localization push, increase in digitization, strategic wins, wins under the "Dominican India Initiative" as well as bilateral agreements. However, emerging protectionist trends in some export markets could present headwinds for subsystem and component suppliers in the coming quarters. Quick update on the restructuring in the Engineering business. Two new subsidiaries of Raymond Limited are created for a scheme of arrangements, one focused on aerospace and defense, the other on precision engineering, auto components, as well as engineering consumables, each of them charting its own path and a primary objective of value creation. I'm pleased to announce that we order on July 2025 and the scheme is effective from 1st of August 2025. As per the scheme, two companies are constituted, namely JK Maini Precision Technology Limited, in short JKM PTL, comprising of erstwhile JK Files and Engineering, which is the Ring Plus Aqua, and auto business of Maini Precision Products. The second company is JK Maini Global Aerospace Limited, in short JKM GAL, comprising of the erstwhile aero business of Maini Precision Products Limited. This milestone marks a transformative chapter enabled by the deep strategic partnership between the Raymond Group and the Maini Group. It reflects our collective commitment to operationally focused and market leadership leading to long-term value creation. Raymond Limited now includes two subsidiaries: JK Maini Global Aerospace Limited, JKM GAL, in Aerospace and Defense, and number two, JK Maini Precision Technology Limited, JKM PTL, in Precision Technology and Auto Components. Quick review on the consolidated quarterly performance, where Raymond Limited delivered a steady quarterly performance, reporting a total income of INR 555 crores and delivering an EBITDA of INR 87 crores and an EBITDA margin of 15.7% in the first quarter of fiscal 2026 versus a total income of INR 500 crores, delivering an EBITDA of INR 95 crores with an EBITDA margin of 18.9% in Q1 FY2025. This performance underscores our enhanced operational execution, business integration, synergies, and volume-led leverage. We look at the segmental business. Let's talk about the aerospace business. JK Maini Global Aerospace Limited, JKM GAL, at the segment level, aerospace and defense business reported a robust performance, reporting a revenue of INR 87 crores, which is 37% year-on-year growth, and an EBITDA of INR 21 crores with a 30% year-on-year growth and an EBITDA margin of 23.7% in Q1FY2026 versus a revenue of INR 64 crores with an EBITDA of INR 16 crores and an EBITDA margin percentage of 25.1% in Q1FY2025. The momentum in this business remains high and we are experiencing increased traction on RFQs and exploring exciting new partnership opportunities during this quarter. A significant highlight was our participation in the Paris Air Show in June 2025 where we had very meaningful meetings, and we are thrilled to announce the signing of a Memorandum of Understanding with Safran Aircraft Engines, expanding our existing partnership to manufacture machined assemblies. Concurrently, we also signed a long-term supply agreement with Pratt & Whitney for precision machined and assembled aerospace components. These strategic agreements underscore our growing footprint and long-term commitment within the critical aerospace sector. The global aviation ecosystem is undergoing unprecedented growth. Commercial aircraft backlog of over 16,000 units translates to between 12 and 15 years of production visibility. Over 70% of our aerospace revenue is derived from engine components, positioning us squarely in the value core of this long-term demand cycle. Our investments in capacity, automation, and methodology have enabled us to meet close tolerance machining requirements across a wide range of materials from forgings to castings. Our contracts span 5 - 10 years, aligning us with OEM ramp-ups to 2025 and beyond. The second company, Maini Precision, which is JK Maini Precision Technology Limited (JKM PTL), at this segment level Precision Technology and Auto Components, reported a revenue of INR 398 crores, which is a 12% year-on-year growth, with an EBITDA of INR 42 crores, which is an 8% year-on-year growth, and an EBITDA margin of 10.6% in Q1FY2026. This is versus a revenue of INR 355 crores with an EBITDA of INR 39 crores and an EBITDA margin of 11% in Q1FY2025. JKM GAL is seeing steady business momentum supported by China+1 sourcing tailwinds, integration synergies, and a strong international and domestic demand, particularly in EV/hybrid and motion control segments. Our tools and hardware business is further boosting sales through strategic expansion into new international geographies and industrial sectors. We successfully launched Three Files, our new domestic brand, reinforcing our leadership in India's file segment and growing our global presence. Let's talk about our debt and cash position. We continue to remain a debt-free business with a net cash surplus of INR 157 crores in June 2025. The total gross debt stands at INR 965 crores and we have cash and cash equivalents of INR 122 crores as of June 30th, 2025. A quick status on the operations and. The outlook looking forward. PTL is also uniquely positioned to benefit from the global penetration of EV/hybrid. The continued growth of premium origin is there. We have opportunities to secure new crude programs as customers actively diversify supply chain away from China, and we're currently seeing an increased traction in our RFQs. Our ongoing focus remains on improving margins through cost engineering and continuously adding value to our processes. Increasing price in key export markets are creating new challenges, particularly for Indian exposures of dry sand and structural components. Despite these complexities, we remain committed to creating sustained value for all our shareholders through this cycle and into the future. Thank you again for joining our call, and we would be very happy to take your questions. We may open the line now for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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 Sucrit. D. Patil from Eyesight Fintrade Private Limited. Please proceed. The first question is from the line of Pushpender Jindal. Please proceed. Hi, thanks for the update, and I congratulate you for good numbers. Just a question in terms of. The slide 8 that you've shown your manufacturing. 17 manufacturing locations, some of them seem to be in the U.S. and Europe. Can you please elaborate? You know, what are they and what kind of products they make? Okay, just to clarify, all 17 manufacturing locations are in India. What you're seeing in Europe is the 12 CPL warehouses, where we distribute products through warehouses globally. The manufacturing, just to reconfirm, is all in India. Hello? Hello? All right, thank you, sir. So. You intend to shift your tools and hardware business to the U.S. Do you see the headwinds in terms of the tariff and all those kind of things going on at the moment? Yeah, absolutely. I think if you see the situation with the U.S. dollars, by every hour you have new information. I think the number has gone to such a level that neither a vendor nor a customer or a retailer, eventually the final last mile customer, will have to bear the brunt. Therefore, I think it seems to be more like a negotiation tactic by the White House. Otherwise, why would they put the second increase effectively from the 27th of August? Before that, they are having the trade teams coming from the U.S. to negotiate with India. Second, as we all know, we read the same newspapers that the U.S. and Russia as well as, what should I say, Ukraine are also having an active dialogue in the next few days. It is all to do with creating a large pressure so that a ceasefire happens and a few other big things happen and then things settle down. We are not making any media creation. I think it is very simple. Maybe there is a couple of weeks here and there delay, but over time these things will settle down. Who knows. For example, look at Japan. A few weeks back they had agreed, but yesterday he put conditional duty. I think that is the situation we are in. We don't know what can happen next day, next morning, next afternoon. I think for us, EU region market, I would not say no to that. At the end of the day, we have a larger market between Latin America, South America, Europe, U.K., and Africa. Especially for the five business, it is a very attractive market where we sell actually our own branded products in the African market. We play that scheme fairly well in that market. The last question I have, I think that must be in everyone's mind, is how does our aerospace and industrial automotive kind of businesses get affected by this with Boeing, and hopefully the LEAP program doesn't get affected. Okay, I think that's a much easier one. If you look at, if you are having an aircraft which is a $100 million aircraft, the product which you supply the shops is $10,000, $15,000, $20,000. Even if there is, I think the guys will have the ability to subsume their duty when these things change, it will change across the board. The aircraft components and all are not going to be a major issue for these guys. It will settle down. What we supply primarily is to France. [crosstalk] Yeah. Our major markets are still Europe and also a lot of the markets where the US customers are already present in India. In those cases, we supply locally. Most of our contracts are all DAP. We will wait and watch, like Mr. To see what happens. So far, we are not really seeing any changes and we'll wait and watch. Thank you, sir. Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question. The next question is from the line of Rakesh Roy from Boring AMC. Hi sir, my first question regarding sir, you know, can you give me outlook for your aerospace and industry business for acoustist terraces going what's your outlook for both this. First of all in Europe really we don't, we know we don't have any issues because we've been supplying to different countries within Europe. We are going to continue to see our reasonable growth as we have seen in the past. There's no such tariff or anything to do with Europe. We see a steady growth and we'll continue to look at that. In terms of the U.S. market like I just covered, we'll have to wait and watch. As of now we've not seen any effect because these are supply chains that are developed over here. For instance, to get an approval from an engine manufacturer anywhere in the world on a civil aviation program like LEAP, you know it takes a long time, it takes a couple of years for us to have got those approvals. Secondly, a lot of our products even for the LEAP engine, even if it's for Boeing, it goes to France because we supply these in Europe. A major portion is in Europe and therefore we feel more secure with this business. We will look at a high teen growth basically in aerospace, you know and an early teens growth in our. I think for aerospace and anything for the industry. [crosstalk] Yeah. Sir, how much in terms of percentages can you calculate how much revenue comes from the U.S. market currently if we add both here? Our U.S. is a smaller percentage. It is about roughly, I would say, 10%. Top 10% we do in the U.S. In the U.S. Okay. Okay sir, you see assume the is to know if 20% tariff is at this. Okay Trump remove 25% 20% at. least since in that case who will. Be at this 25%? 50-50 or one year by client or how is. How is this. Look, I think it is very clear that we don't have an ability to bear this. We don't want to engage into a discussion half and half, and as I said at the beginning, the price quantum is so large it is not a question of any bearing. Ultimately, either the consumer wears it or the two governments find a solution for this tariff. It is not a question of neither the vendor would bear nor the middle customer who is an industrial customer is going to be at risk because the content is so large, nobody has the ability to absorb this. Your industrial and aerospace margin is on your basis is down due to the product miss. Can we assume this margin will improve from here onwards? 2 or 2, 3, 6. No, margins are up. I don't know. In terms of you look at it, tax, it is INR 42 crore and INR 21 crores for margin nearby. 150 down on year basis. As you mentioned, basically it's right number. Yeah. So. What happens is your product mix continuously changes. For instance, you make 3-400 products out of several hundred materials, and every quarter you could have the demand on different materials. A lot of it depends on product and which will even out in the long run. Therefore, margins will have very minor impact. In terms it will just be quarterly. How much we assume, sir, nearby 25. You don't use, sir. This is okay. Okay. Right, sir. Sorry, any new product is in the [audio distortion] this quarter? Same thing. Any new? Any plan to start any new product? Production in [audio distortion]. This is already passed by earlier. Yeah. Basically, in aerospace we are making almost one new part every day. That is how we are growing. That's why the product mix keeps changing, because every quarter you are introducing several new products, then you're ramping up those products, and that is how the business will grow. That is the reason why there will always be a product mix difference, because a variety of materials ranges from something like Inconel and titanium, which are really expensive and difficult materials to machine, right down to aluminum, because the variety is so large that it will always balance out because of the number of parts that we are making. Also, we are, you know, 75% traditionally on the engine side, which is that you are making more expensive and exotic materials that you're dealing with, and then depending on the parts, the product mix will change. Okay, nice. Okay. Thank you, sir. Thank you. Thank you. The next question is on the line of Kunal Ochiramani from Alpha Alternatives. Please proceed. I wanted to understand our long term vision. How are we trying to grow? Secondly, do we have any capabilities in different times? Are we into bid any contracts or develop any relationships? Thirdly, what are we planning to do with our. Factory in Nashik? Are we planning to develop [audio distortion]. Regarding Files, we are just planning to continue servicing the whole sites or crossing the lines with many. Obviously, long term vision is quite a big statement. To give you some key points, there is a lot of synergy that exists between all of the manufacturing. In the first stage, we've already tried to list all these synergies together, which are both on the market side as well as on the trading side. Those are being put together to see where we are, where we are growing in terms of synergies. In terms of basically, we are trying to see in the aerospace, we're trying to double in the next three to four years. We have a plan for that and we are going to, we're working on that plan. In terms of your second question of defense, we have had a lot of overseas exposure. We have been contributing in several programs that were ultimately sold to India as well. We have full capability for building on the Make in India story. So far, we have focused on exports. In terms of our technical competitiveness and the technical abilities that we have, we are into the nature India space in a very serious manner. Over a period of time, you will hear about our new SAS develop. It's definitely a part of our vision as we go along. In terms of our factory at Nashik, just to inform you, I mean it's a workhorse. We inaugurated a new plant there, which is in cinema, and we are now looking to grow those businesses because we have steady products there, which is the flex plate and the bearings, which are up to capacity, and we're going to increase some capacity there as well as we are going to horizontally deploy the knowledge from the Maini Precision Products side of the business unit and combine it with the strength of Synar. Therefore, we will also see more product introduction as we go along. In terms of the tools and consumable side of the business, seeing a lot of value addition that we will try to do to that business because, once again, of the synergy and the international exposure that we have in Europe and U.S. We will definitely utilize the best efforts to see that the long term vision grows to a much more value added proposition in terms of our entire product range in a much more synergized and global manner. Yeah, when you say synergies I just. Wanted to understand. Will that be in revenue increase, or can we expect some? Margin improvement and how are we planning. To increase our margin shift if in case by reducing what kind of costs. Secondly, the plant you are talking about, what could be a potential revenue here and if you could give us three to five year guidance of our company as well. On the revenue side, just to make you understand, you see, we make, we make parts for the same sectors. For instance, if you take engines, engines are supplied by the Ring Plus Aqua erstwhile Linkaqua, which you know has the flex plate and the range they go between the automatic transmissions and the engines as well as on the engine. Similarly, on the MPP side, the erstwhile MPP side, we are supplying into engine and we're supplying into transmissions. Now what we find is that we can cross sell to all the different customers because if you see the MPP side of the story, we built our story on capability, which is on a horizontal platform, which means that we made products for different parts of the engine, different parts of the transmission from different material, casting, forgings, aluminum die castings, etc., and therefore we were more a capability supplier, whereas on the ARPA side of the business, we were more of vertical suppliers. We went into ring, went into flex plate, went into bearings. The beauty is that we have the advantage of converting all of our horizons into vertical stories, which means that we can really expand size because of the knowledge customers already know us because now it's one common lay. Overnight we get one vendor code, which is JKM PTL, and all of the businesses of all of our content. I hope that answered your question on revenue. In terms of the bottom line itself, you know, obviously recorded. In terms of our bottom line, it is very clear that we have a lot of synergies because you know all of the companies ultimately buy steel, buy material, we use similar consumers, use similar tools. You have a lot of synergies in logistics, warehousing, we have an export model on all the companies. There is a lot of synergy available, resources together, and the details are being worked out as we speak. Yes sir. Thank you. Thank you. The next question is from the line of Balasubramanian from Arihant Capital. Good evening sir. Thank you so much for the opportunities. Sir, I just want to understand in EV/hybrid focus side around 15% of auto business is coming from hybrid focus. What's the pipeline for EV like I sleep info shop part call and how does we plan to compete with our competitors? Secondly, tool and hardware margins are 10,000 to 11,000 and what specific value added products like medical, jewelry, oils, dry upon and what is the timeline to achieve maintain margins? Okay, let me answer this in two parts. Talking about the EV/hybrid story, this is a very important story because, as you know, in Europe, and this is a story that we developed mostly in Europe as well as in India. You're all aware that over the last many years people were talking about EVs being a big success in Europe, and even countries had signed up to an agreement which said that in 2030 onwards you should stop, etc. All these countries got together and have postponed those dates because they believe that only EV is not possible in Europe. We read the market a few years ago to say that we must be in the hybrid business because that is the more logical business in Europe that will survive. We took the right call and we developed with one of the big primes, we developed several components for the hybrid engine. Luckily, it all worked out and we were able to ramp up these businesses very, very quickly over the last two years, in fact. We have reached a stage where we had this high percentage in hybrid due to this massive export order which covers several models across Europe. This is a great beginning and we will plan to horizontally deploy it. It all takes time, but it's a great positioning for us in terms of the local market. In India, we've concentrated on the three-wheeler transmission segment where we have a prime customer for the fully assembled transmissions of the EV mirrors which we supply. On both those fronts, we have a good market, hybrids and overseas and EVs in India. On the tools and hardware side, I can give you an example of how we are trying to increase our value of the products. For instance, we have a very high exposure to tools that we make on this side and we are looking at industrial segments now, especially aerospace segments which are high-value segments. We are doing our trials in our own factories, which is the synergy part of the story. We are coming out with how these tools can be sold at higher prices and how we can add more value and also then leverage our current position of testing to make sure that our tools meet the highest manufacturing standard. Over a period of time, this is not overnight, it takes time, but over a period of time we will develop higher value tools in that area. The same way in files, you know, delivery files and other files which have more value. We have started to develop with our own technologies today. It will take a little bit of time, and then we will develop further. That is a quick example of how we will look at value addition in detail. Okay, sir. On that material side, aerospace raw materials like imported, like where we are importing each other countries and what are the steps they have taken for localizations, how this very unlock colossal case and matching trucks. Right? Yeah. You're right now all fields are mainly in protein because of the full process. There is a strong push to try and localize these. I see a long idea time frame. You will see a lot of localization, which will further. I think this is a long-term positive. It takes time to get them approved. It will happen step by step. Okay, sir. On the export side, we have seen weaker exports demand, however, it's been offset by domestic growth in ring gears and flex plates. I just want to understand which geographies are underperforming and what is the outlook for H2. In the end, the markets in Europe and the U.S. have been more subdued than they were in the past. The volumes are changing. You know the schedules are given in advance, but they change every month. We saw some drop of volumes in the export market, which offset the domestic growth which was going as per plan. There is a small blip there. We are hoping that the volumes would come back. Auto is a cyclical business. We all know that some quarter or some few periods it will do very well. The demand will come down, then again it will pick up. I think we see very clearly. That is why we have created a unique mix between the domestic markets and export market so that you can continue to balance. It has always happened. We built the capacity in a ring gear from 3 million just before COVID to 11.5 million capacity. We have been far successful. If you see the business of Ring Plus, it has delivered, grown the revenue of more than double itself over the last four years, doubled the margin or so. Therefore, it is a business where you will have to go through the factors. Over time, if you have the right product with the right construction, you will succeed. That is why we focus on the auto component business. Now with a larger portfolio of putting together both the Maini Group side and the Ring Plus, we have a formidable portfolio which caters to all the top 15 global OEM in the auto sector. That is a great synergy to have. Got. Exactly. Thank you. Thank you. The next question is from the line of Sanjeev Zarbade from Antique Stock Broking. Please go ahead. Yeah, thanks for taking my question. Sir, if you could throw some light on where do you see the aerospace and auto component business maybe three, four years down the line. Basically, in terms of aerospace it will be double. You know the automotive business will grow in the, you know, low to mid teens depending on how the macroeconomic situations play out. The reason being very simple that we are into engine critical components. You see the journey of our aerospace has been we started with 50 SKUs, moved to 100, moved to 200 and reaching, what, 512, 550 SKUs. As you continue, you need to win the confidence of the customer. He keeps increasing you from a component, you go to what you call assembly, which is much more value added. I think this is a journey which we have started a few years back and slowly and steadily we are going to get the benefit of that. We had acquired land parcel in Andhra Pradesh. When do you expect to start work on capacity expansion in aerospace? If you look at it, this is an initiation which we have done and we will evaluate all the things because we have a plan. As I said, as Gautam mentioned very clearly, we have a plan to double our business in the aerospace. The auto components also going at a faster pace. I think we need space. The space continues to be a constraint. Therefore, we thought it appropriate to expand into Andhra. It is not happening today or tomorrow because any project in its own course of time, whether it is 18 months or 24 months, is something which we look at in terms of sharing the products out of there. Right sir. I have a couple of more questions. On the EBIT margin side in aerospace, we did that 12% in the first quarter. Our sustainable margins are much higher I guess. When do we expect to. Reach those kind of margins? Probably, you know, 25% kind of EBITDA margin. What is the timeline, what should we expect? You look at it when the scale comes, and as Gautam mentioned, we continue to develop every day a new product. There is a cost; obviously, that cost deficit to the business. We continue to grow that business. The second thing, as you know, these equipments which we had bought, because of the accounting reasons, also we had to do the fair value accounting. That also increased the depreciation, and that is why we have this. We are very confident as we scale up, our EBITDA margins continue to grow in the trends which we talked about, in around the 25%. The EBIT margin also continues to grow. Right sir. On the auto components side we've done EBITDA margins of 8%. Since we are into precision manufacturing, we expect a much higher margin since it's been the precision manufacturing business. When can we reach at least. A double digit kind of margins in the auto components. There is some legacy business that exists in, in other portfolios, you know because when you're in business for 40, 50 years there are legacy businesses that are being now reviewed. The new businesses are all coming in the double digit. It's only a question of time before it averages out, you know and, and as we keep growing the weighted average will tend towards the double digits. It's not very far away. In a couple of years it will be there. Okay, enter your return on capital employed. Have huge room for improvement. What are your thoughts on raising the ROCE or ROE profile of the business? Yeah, as I said, clearly what you said is right. I think we need to give you the numbers of an operational ROCE because what happens is if I look at the filter we have, as I mentioned, fair value accounting done for the acquisition of the Maini business and that has created a large intangible value, and because of that the asset deployed becomes larger. This is one of the reasons, if I take that off then your ROCEs in these businesses are much lower. Higher. Second, this is also very important to understand that in these businesses you are in a phenomenal faster growth phase. You need to put the CapEx before and then the revenue and the EBITDA follows in the next two to three years. Therefore, it will take a while in order to get to the level of ROCEs which we all are used to. You have seen that because these numbers were reported in the past Engineering business of Raymond Limited that had shown always a very good 20% plus ROCE. Because of the fair valuation and such things you are seeing a lower. I think very quickly we will see in the next two years or so when we stabilize the revenue in those businesses you would see again going back to the 20% plus on an operational basis. Okay, final question from my side. Has there been any increase in gross debt? Because I think we had around INR 600 crore odd debts in FY2025 and now I think as you mentioned have around INR 960 crore kind of number. Has there been any increase in? Yeah, you're right, you're right. What happened is first the debt was given from Raymond Limited to the engineering business, and now we have externally refinanced that debt. Therefore, the gross debt is higher to that extent, the cash is also higher, and therefore the means is different. Okay, sir, what would be the debt reduction targets for the subsidiaries? I think what is happening is, I would assume there is a small debt repayment schedule every year. We are in a growth phase and I would say that for the next three to four years a significant portion of the cash flow, except for the scheduled repayments, not mandatory scheduled repayments, are there. Other than that, I don't think so. We will have a very big debt reduction except for some of the other capital transactions if we plan to do. At some point of time. Our whole focus at Raymond here is deploy back the capital into the business and take a faster growth. Because if you plan to double your business of aerospace in the next three to four years, you need to invest rightfully, carefully, and grow the business. I think that is the last focus which we are carrying. Right sir? I think that's it from my side. Over to the model. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Ujjwal Lal, an individual investor, please. Thank you for the opportunity. My question is to Amit. While I congratulate the whole team for the demerger, there is still a complex holding structure where Raymond Limited owns 47% of JK Investo and they can even purchase, which owns 18% of Raymond Limited and 15% of Raymond Lifestyle Limited. Raymond effectively owns 9%, 9%, and 7% of these three companies. Is there any way in which we can unlock this value, which would be around INR 1,500 crore even at current prices? You know, considering this whole structure, and this is a historical legacy structure, to unlock that value there is a sort of a large tax incident which may arise, and therefore we are in a hesitation mode, and that is what is the advantage of going into that simplification of the structure. For us, what was more important is if you are creating pure play respective businesses which are debt-free at the net level. You have Raymond Limited, which has 66% equities in the two Engineering businesses. You have got the Lifestyle, which is completely independently listed, and you have got the Real Estate, which is completely independently listed. You have the operating businesses on the three companies. Very, very clear now, it's the whole structure above Raymond Limited, or the holdco structure, holding structure, there it is technically challenging from a tax point of view. Okay, and that's another question like I. Read like Raymond Limited bought 1.47% of Raymond Lifestyle. What was the rationale for this? I mean we have invested using our cash. Basically, if you see, the cash is there to support the businesses. We are very clear that whenever there is a need for investment to be made into any of the businesses, we can do that. Our primary focus is, at this point of time, there is a value. That is why we invested from Raymond Limited into Raymond Lifestyle Limited. Okay, that's another request. Maybe you can include a couple of pages of the performance of Raymond. You put any TV in the presentation. Given that it has been loss making and we also had to invest equity in the past, what are the future plans for this TV? Sure, we can include that. As we say, the garmenting industry has started to improve itself and I think we have seen a capacity utilization which was more in the 63%- 64% range has moved up to 80%- 85%. I think that we are seeing a little bit of a positivity around there. Industry has been in a severe challenge for the last few years. We look at it at the junction. They are managing their business on their own and with the JV partner, which we have, and we are not seeing right now any need for additional equity to be infused into that. Okay, thank you. I have been very happy with the actual performance on the engineering side. These are just nice few questions. Thank you all. Thank you. Thank you. The next question is from the lineup. Pushpender Jindal and individual investor, please. The other question that I had about the defense optionality. What kind of product do you make in defense? There is an import substitution that India is running. How do you see that business growing apart from the engineering, automotive, and aerospace business? Can you shed some light? How do we see that opportunity growing? We are looking, like I said a little bit earlier, in terms of our technology and our machining competence, there are a lot of options that have been there in defense so far. We have been focusing on exports and we've done some defense programs for the global OEMs. Now the Make in India opportunities are becoming larger. We are planning to see how to leverage all our relationships and our technologies to ensure that we can be a larger part of the overall Make in India program. We will start with the core components and move to assemblies and move to larger products in phases. What we did in the export world, we will slowly start to do in the domestic world. Currently, that export that you do under the defense is being included in the automotive and precision products, right? No, the defense, whatever we've done so far has been more related to aerospace. Those opportunities and optionality will arise in the aerospace business so far. We also have opportunities arising in other spaces of defense and therefore we will take them as they come. Okay, thanks. Thank you. Thank you. The next question is from the line of Thomas John, an individual investor. Please proceed. Yes, I joined. I just had one question. I don't know. This is the address. It's about the exports that we have. Do you think, do you see, do you think that there will be? Discussions. There could be exceptions and the Europe. Yes, we know that there is a large backlog with both the aircraft manufacturer. I think the Asian economies have been doing very well and they play large long term models. That is why we are very confident to say our aerospace business will double its price in the next three to four years. We did answer that question. There is 50% nobody has a responsibility to operate and in environment where by the hour the stance changes of the White House. Even if I plan something tomorrow I don't know then uncertainty I'm reading whether it is 50% or 500%. Therefore it is really and I think we don't want to say sharply react on any of these things. We stay focused and it is more negotiating tactics, nothing more than that. Thank you. Thank you. Thank you. Due to time constraint, that was the last question. I would now like to hand the conference over to the management. Over to you. Thank you. Thank you very much and really appreciate all of you taking time to attend and hear our call and interest in the company. Look forward to talking to you all in the next quarters. Thanks. Thank you. Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us. You may now disconnect your line.