Ladies and gentlemen, good day, and welcome to the Q3 FY 2024 results conference call of Ramkrishna Forgings Limited, hosted by Emkay Global Financial Services. 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 zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jaimin Desai from Emkay Global Financial Services. Thank you, and over to you, sir. Yeah. Thank you. Good evening, everyone. On behalf of Emkay Global, I would like to welcome you all to this earnings call of Ramkrishna Forgings Limited. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Naresh Jalan, Managing Director, Mr. Lalit Kumar Khetan, Whole-Time Director and Chief Financial Officer, Mr. Chaitanya Jalan, Whole-Time Director, and Mr. Rajesh Mundhra, Company Secretary and Vice President, Finance. I shall now hand over the call to Mr. Lalit Kumar Khetan for the opening remarks. Over to you, sir. Thank you, Jaimin. Good evening, and welcome to everyone present on the call. I wish you all a very happy New Year from the entire team of Ramkrishna Forgings. I hope you all have got an opportunity to go through our financial results and investor presentation, which have been uploaded on the stock exchange as well as on the company website. I am pleased to report that our company has a strong Q3 and nine-month FY 2024. And someone is speaking. Everyone has to go on mute, please. The commercial vehicle segment, a crucial pillar of the national economy, is undergoing a significant transformation. This is fueled by technology megatrends such as alternative fuels, electrification, and industry modernization. Factors such as the surge in online retailing, government policies, logistics services, and expanded network of improved highways, industrial growth, all these contribute to the steady growth of this segment. We at Ramkrishna Forgings are flexible, and we consider ourselves an organization that thrives on challenges. We take advantage of opportunities that come our way, such as expanding our business, improving productivity, and making sure our customers are satisfied. We have become an important part of the global market and the world economy, even if it is right now. The good news is that things are getting better with time, and we are committed to gaining more customers and getting ready for business growth when the market conditions are improving. We are also increasing our capacity to support this growth, and as a company, we are prepared for the future. Over the past months, we have achieved significant milestones that have further solidified our position in the industry and propelled us towards the greater success. First and foremost, we successfully raised INR 1,000 crore through the QIP, and which received an overwhelming response from the prominent domestic and foreign institutional investors. The fundraising marks a significant step in our company's growth, allowing us to reduce debt and advance manufacturing initiatives. The support from the investors reflects their confidence in us, reinforcing our commitment to sustainable growth. During this quarter, we successfully secured approval from NCLT Delhi for the acquisition of ACIL Limited. This strategy more consolidates our support in the industry, promising a collective alignment of capabilities and resources, further enhancing our manufacturing strength. Furthermore, our aim is to create a sustainable future green energy initiative to achieve this, we took a step towards carbon neutrality by investing in renewable energy. We partnered with Prozeal Green Energy to install a 7.82 MW solar rooftop power project. We believe in the power of clean energy to drive positive change, and through initiatives like these, we can create a more sustainable future for generations to come. In line with the industry, we have seen an increase in demand as well for our products and services, which has led to significant growth in our revenue and profit. In Q3 FY 2024, we recorded a revenue of INR 902.94 crore on the standalone basis, which represents a year-on-year growth of 20%, while for nine months FY 2023, we recorded revenue of INR 2,603 crore, and for this nine months, it is standalone INR 2,603 crore, which again represents 20% year-on-year growth on the nine-month number also. EBITDA margin for Q3 FY 2024 stands at 22.98%, as compared to 22.1% in Q3 FY 2023. The EBITDA margin expanded almost by 90 basis points, and overall, EBITDA margin for nine months FY 2024 stands at 22.80%, against 22.2% in nine months FY 2023. The total expansion was almost 60 basis points in nine-month period. We are confident of sustaining the margin of across 23%+ in the coming quarters. Our net profit after tax is INR 82.34 for Q3 FY 2024, against INR 57.64 in Q3 FY 2023, which is a year-on-year growth of 43%. Our net profit after tax is INR 238.84 for nine months FY 2024, compared to INR 168.84 for nine months FY 2023, which is again a year-on-year growth of 41%. The strong performance is a reflection of diligence and commitment of our team, as well as the continued support of our customers and stakeholders. We remain committed to innovation, operational excellence, and customer satisfaction. ... We will continue to invest in advanced technology, enhance our manufacturing capabilities, and strengthen our relationship across the industry. With the foundation we have built and the achievements we have accomplished, I am confident we will continue to excel and thrive in this dynamic and competitive market. Thank you for your continued support and for joining us today. We will now take questions from the audience. Thanks. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question, may please press star and one on your 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 Raghunandan NL, from Nuvama Institutional Equities. Please go ahead. Congratulations, sir, on stellar results and successful completion of QIP. Sir, my first question was on the domestic revenue. There is a growth of 32%, and underlying domestic M&HCV production has grown by 9%. The, you know, beat versus the underlying industry, what has led to this? Is it execution of new orders in auto, and which segments in non-auto has done well? Good evening, Raghu. I think, in terms of the overall domestic business growth, our railway has grown. If you see the presentation, railway has grown. Our revenue in Railways have, in this quarter, been much better than earlier years, earlier quarters, and also off highway, domestically has done extremely well. And in Automotive segment, we have gained market share, as well as we have gained new businesses and new components within the content. So all together, it has led to, the growth in the domestic sector. Got it, sir. In the presentation, when you are explaining about the non-auto segment, there is one portion, others, which has also seen a big growth. Within others, what are included, sir? Steel, cement. And other steel, cement, then your this coal washery segment, all these industrial products basically are in others. Got it, sir. And, sir, going forward, will there be any temporary issues for dispatches, or will there be an increase in logistics cost due to the Red Sea issues? And also relating to that, and this logistics cost would be a pass-through for you, and how much would be the like? No, I think, right now, Raghu, we are still working on it. In logistic cost, most of the cost related to our Europe dispatches have been impacted. For U.S. dispatches, we are not been much impacted. We are still speaking to the customers. In terms of our agreement with the customer, we don't have any pass-through system of increase or decrease in cost. But while, during the first phase of COVID, there was a considerable increase in cost, our customers cooperated and have shared the cost. We are similarly working with the customers to share the increase, and I think, we will have a positive outcome, but it will may take a month or so before we have any answer. Got it, sir. In terms of FY 2024 and 2025, Lalit, sir, can you give some guidance on the investments and CapEx? I think, in the whole presentation, we have already guided for a considerable increase in our portfolio. We have announced setting up of 6,000-ton press, FY 2025, and which will be operational by December 2024. So- Got it. Basically, overall budget in terms of CapEx is yet to be released, but it will be in line with what we are doing in this current year, current financial year, of close to INR 400 crore-INR 450 crore in the coming year also. Got it. That will take care of investment, should be in the INR 400-450 crore region for the FY 2025. Got it, sir. Got it. We are not speaking anything related to standalone now. At a consolidated level, we will be spending close to INR 400-INR 450 crores in terms of our CapEx. Got it. And sir, my last question on new acquisitions, Multitech, JMT, can you provide some detail on current revenue profitability? And also, any order wins here, which provides better visibility for future? I think in Multitech Auto, we have already provided in our presentation. We have got full quarter of revenue of INR 92 crore, almost from Multitech Auto. And already it has been a 200 basis points EBITDA jump since we acquired. I think previously, MAPL, Multitech Auto had an EBITDA of around 15%.... And And we have already had a much EBITDA efficiency and almost 16% of EBITDA, and we are able to improve the capacity from current 24,000 tons- 70,000 tons by the financial year end of FY 2025. And we are looking at almost INR 600 crore-INR 650 crore revenue from Multitech Auto in the coming year. I've got it, sir. This is very helpful. Around 18% EBITDA, we are aspiring to achieve 18% EBITDA from our, casting business. Got it, sir. Regarding JMT Auto also, we have given a complete line. I think this quarter we will have no revenues from our JMT Auto. First quarter onwards, we have given a guideline by when we are starting the forging and other things in JMT Auto post refurbishment, and we aim to have INR 400-INR 500 crore revenue from JMT Auto by FY 2026. ACIL acquisition has been completed in the month of January this year, and I think it currently has a revenue of close to around INR 4.5-INR 5 crore on a monthly run rate, and it's INR 15 crore per quarter. I think customers are intact as well as the plant is up and running, so we are going in for extensive refurbishment on that plant. We are hoping that next year, in FY 2025, we should do good revenue with good EBITDA from the ACIL. I think we will be able to better explain AC, ACIL revenue in the on call we have post the full year results. Got it, sir. Extremely helpful, sir. Thank you so much. I'll come back in the queue. Thank you. We move on to the next question. That is on the line of Mumuksh Mandlesha from Anand Rathi. Please go ahead. Yeah, thank you, sir, for the opportunity and a good set of results, sir. Sir, in Q3, the export growth has slowed down to 4% YoY. What has led to the slow growth, and how do you see the outlook ahead? YoY growth. Sir, YoY, we have grown in exports by 4 and 4.1%. Here, basically, quarter-over-quarter there is a difference. But YoY, I think we have grown by 4.1% in exports. Yeah. So compared to previous quarter, growth has come down. Just want to understand, what- That is a phenomenon every year. I think third quarter, because of the Christmas holidays and other things, the inventories at most of our exports in Europe and U.S., there are less of consumption, and we are back on track in this quarter onwards. So basically, if you see every year, fourth quarter and the first two quarters of financial year do extremely well, and pretty sure there is a decrease quarter-over-quarter basis. Right. Right. Got it, sir. Sir, on this new press of 8,000-ton and also some small presses, just want to understand the capacity is indicating increase of around 30,000 metric ton. So can you indicate what kind of small presses are there, sir? No, basically, we are installing 4,000-ton press and two small presses in warm and hot forging. So 8,000 press itself will give us close to around 32,000 tons of forging. Okay. What kind of revenue potential on this capacity would be there? If you see, given the average realization also of INR 2 lakh, 40,000 tons at 80% utilization also can give us close to INR 600 crore revenue. Got it, sir. Thank you so much for the opportunity. Thank you. The next question is from the line of Vishal from Swan Investments. Please go ahead. Thank you for taking my question, sir, and congratulations on great set of numbers. Sir, I have one question regarding what is the outlook we are seeing in terms of both domestic market as well as exports in the near term as well as for FY 2025 period? I think, the environment is challenging, but as in terms of customer and content gain, at RKFL, we are doing extremely well, and we continue to thrive on our potential and new order wins, and converting these order wins into new supplies. I think the guidance which we started with the, in the first quarter of financial year, FY 2024, I think we are well on track to achieve our numbers or, surpass those numbers. Okay. On the volume terms, we'll be able to surpass these numbers, for in FY 2025? I think right now we are, we are at FY 2024. We are still to complete FY 2024. Once we complete FY 2024, then only we give guidance for FY 2025. But we don't see any downtick in terms of our utilization or overall sentiments in the market. We see that market is going to remain strong and progress, and we will continue to excel on the capacities which we are implementing. Okay, great, sir. Sir, my second question is regarding thanks for sharing, you know, inputs on JMT Auto. Sir, wanted to have some inputs on what would be the margin trajectory and what is our aim to take this margin in next one or two years for JMT Auto? ... JMT Auto, I think, in this year, we cannot predict the margin, because the capacity is still going to get started, and, we hope to achieve only INR 150-INR 200 crores of revenue from that. But, by FY 2026, when we are starting getting INR 400+ revenue from that, we are looking at almost 25% margin from that. Great, sir. Okay. That's all from my side, sir. Thank you, and all the best. Thank you. The next question is on the line of Mitul Shah from Dam Capital. Please go ahead. Sir, congratulations on strong performance, and thank you for opportunity. So my first question is on this outperformance, follow-up to previous question of Raghu. Despite production slowdown in M&HCV, more than 20% outperformance we achieved. So do you think that this type of outperformance will continue, and any specific, this quarter-wise, one-time impact in this quarter, or is sustainable 20%-21% outperformance possible for next 2-3 quarters? Thank you, Raghu. Thank you, Mitul, for this question. I think at RKFL, we are in for a long run, and we continue to outperform the market. I think, we are looking at a long-term sustained growth rather than one-time growth. Whatever our figures are or whatever growth we have, we, you are seeing it will be a steady and stable and sustainable growth. This healthy double-digit continue even if industry may go some, undergo some slowdown in FY 2025? As far as we are concerned, we don't see any slowdown in our end. Okay. My question is on this, 25,000 tons Warm Forging, Cold Forging. So how the ramp up can we expect? It will be like a full ramp up by second half 2025, or it will be relatively slow, in 2026 we'll see full capacity utilization, because we already have some pre-orders for this specific capacity, right? We already have a full order on this. But in terms of sample making and sample dispatch and sample approval, you will see full utilization of this entire capacity from fourth quarter of financial year FY 2025-2026. But you will see considerable utilization starting third quarter, and fourth quarter should show you almost 90%+ utilization. So lastly, on this ring rolling, in our presentation, we have given almost 150% utilization for this 24,000 installed capacity. So up to what extent this utilization can further increase, or this is the optimum? And, despite every time it's coming 130%, 140% type of utilization, we are not increasing any capacity here. So any specific, reason behind it? To increase any capacity in terms of, we are almost at peak market share, and as well as we are able to utilize, get premium from the customer on this parts. But we are working on a lot of VA/VE activity in terms of reengineering the entire line. Very soon, with the kind of automation or other things we are doing in this line, our capacity in this line will go up to 30,000 tons, which will basically bring down the utilization of 148% - 110% or 115%. But we are not in any way increasing the capacity or adding any further equipments for Ring Rolling. We would spending any large capacity building up capacity for it. Sir, just follow up that with 30,000 capacity, what could be the maximum output possible, or what can be the 150% type of utilization is possible in case of huge demand? No, I think the utilization level, 148 what we are seeing, will come down to 110 or 115. But overall, I don't think we- 35. We will be able to go anything above 30,000 +. 35,000 maximum? Maximum 35,000 tons is what, right now, what we are achieving. That is only what we will be achieving. Thanks, sir, and all the best. Thank you. The next question is on the line of Jaimin Desai from Emkay Global Financial Services. Please go ahead. Yeah. Hi, sir. So you alluded to, tough external environment. Can you please give some more color around this? Where exactly is the softness that you're seeing? I understand that we have very growth, strong growth drivers for our own business because of order wins, et cetera. But just, with relation to the environment, where exactly is the softness that you're seeing? No, we are not seeing any softness due to our business. So in the external environment, I think this war and this disruption due to the Red Sea and all other things are an ongoing affair right now. Since last one and a half years, we are bearing the brunt of it, first Ukraine war and then now this Red Sea disruption. But I think in terms of softness, we don't see any softness. While market may not grow, but we don't see any softness in that. With the kind of order wins we have had and the pipeline which we have right now for new order wins to come in next couple of quarters, we don't foresee any slowdown in terms of our uptake or our growth plan getting hit by any external environment as such. ... Okay, so just, so even in the case of, let's say, North America Class 8 truck market, you do not expect any growth challenges in next year or maybe beyond that for the market? I've seen slowdown since last one year, but in terms of my balance sheet or my dispatches or my customers, we have not seen any effect in terms of our calls for our new dispatches. So we will not be able to exactly per se say what is happening in the classic market. But overall, we see no slowdown in terms of demand. I think the market is pretty stable and we are doing extremely well with the kind of new contracts and new orders we have in our pipeline. Understood, sir. Very encouraging. Thank you. Thank you. The next question is in the line of Chirag Shah from White Pine. Please go ahead. Yeah, thank you for the opportunity and congratulations for the good numbers, sir. So, first question is, just a simplification if you can help us. So from, say, current revenue that we have, and I'm just annualizing the nine-month numbers. If I had to take a two-year view, what is exactly the capacity or revenue capability that we have on standalone as well as at consolidated level? Either in terms of revenue or in terms of the tonnage, however you would like to highlight. If you can first help us understand standalone, because there are too many projects which are coming. Some are coming in standalone, some are coming in consolidated. So if you can help us, broadly, it will be helpful, sir. Chirag, I think it is very difficult for me to put any number to what future guidance is. We'll be more upfront post the full year results. But we can very confidently tell you we are looking at 15%-20% volume growth in that. In our overall balance sheet, overall business is concerned, we are looking at 15%-20% volume growth. Would it be right to assume that this 15%-20% volume growth would be more driven by subsidiaries, given the ramp-up that you are looking at over there, given JMT, ACIL, everything over there? No, I think every balance sheet has its own potential to grow, and they all are 100% subsidiaries of RKFL. Yeah. Overall, at a consolidated level, 15%-20% volume growth, which standalone RKFL will also deliver and in terms of other balance sheets also will deliver. So overall, at a consolidated level also, we are looking at almost 15%-20% growth in the current phase. That's the guidance we started with in April 2024, FY 2024, and we still maintain that guidance. And I think any revision in terms of guidance upwards or we'll be able to come up with more certain answer post the full year results. Yeah. And, sir, if possible, at the end of the year, just a capacity ramp-up, in terms of production capacity ramp-up, if you can indicate, it would be helpful. Because your capacity seems to be growing at a reasonable fast pace, so you are ready for a 50% kind of a growth over the next two years once this program, the CapEx program are done over the next 12 months, bare minimum. So that's why I've seen what is on the capacity ramp-up. If you can explain later on, it will also be fine, at the end of the year. Chirag, if you go by the presentation, each and every company's potential and the revenue potential and by when we expect things to happen, I think, company-wise, we have very clearly mentioned in the presentation. However, we take your suggestion, and I think we will, we will try to more be certain with, what, there is to be aware. Yeah. And, sir, second question was on JMT. So you from, say, INR 200-odd crores this year, when I say this year, next year, at INR 25-600 crores revenue indication that you had, it implies that there are approvals in place. The capability, once you are, once you put the CapEx in JMT, it's more about delivery rather than getting customer approvals. Is this the right way to look at it? I think, Chirag, we have already another three months to go. I think first, from mid-April, I think, FY 2025, we will start production in phased manner in JMT. And that's the reason we have indicated INR 100-200 crores of revenue this year. And potential of this plant is to reach to, anything between INR 500-600 crores revenue. Okay, fair. More, more about potential. Fair point. This is really helpful. Really helpful. Yeah. Yeah. Thank you. Thank you very much, sir, and all the best. Thank you. The next question is from the line of Abhishek Jain from Arihant Capital. Please go ahead. Thanks for the opportunity. Sir, my question is regarding that railway business. What kind of the revenue you are projecting in FY 2026 or FY 2027 from this business? And what would be the EBITDA margin from this business? Which railway business actually is there? Couple of, you want to know about any particular business or you hear the whole- Railway Wheels. Railway Wheels, I think, is still early for us to tell you. I think the plant is going to, if you see the presentation, only by FY 2026, then the plant is going to get commissioned and start. So I think- Okay. It's too early for us to tell you what is the potential revenue and EBITDA from that plant right now. What is your target ROCE for that business, sir? ROCE, we are looking at 4.5-5. Okay. It's our Initial year. In initial year, right? Okay. Okay. Okay. And, my next question is related with this carbon emission norm that is going to implement in U.K. and other European countries from 2024. Hello? That is only for steel sector, sir. For forging, another thing, which is 2027. Okay, so there won't be any impact of this in 2024- 2024 - -related with the sourcing of raw materials or anything else? Nothing as it is related to only steel and for forging and other things, it is 2027, January, and we are getting prepared for it. Okay, sir. Thank you. Thank you so much. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Jaimin Desai from Emkay Global Financial Services. Please go ahead. Yeah. So, can you throw some color on the growth opportunities in non-auto side, for example, in Railways, apart from the Wheel project and in areas like oil and gas? I think in, Railways, we are looking at almost, doubling our revenues in next, two years. From where we are right now, every year, we will be almost doubling our revenue from Railways. And I think we, railway with the kind of modernization which is happening in India, I think sky is the limit, and, it is up to us how much we can encash, this opportunity in delivering the right parts to the railways and finding the right opportunities within the, this modernization. So we are working very diligently with the Railways, and we are trying to encash these opportunities. Right now, putting a number specific in terms of growth, it is very incorrect, but I can only tell you that the way things are shaping up and the way the demand is shaping up, doubling our sales to railways is a very small thing which we are talking about. I think opportunities are much more in terms of how we are able to deliver and encash the opportunity. Understood. And in Oil and Gas? Oil and Gas also, it is steady business for us. I think right now, we don't see any exponential growth in Oil and Gas, but it is a steady business wherein we have been able to continue our steady operations. With JMT coming in, with the businesses, with what JMT was doing in Oil and Gas, I think that place wherein we are going to grow very fast, and that is going to be an additional revenue in Oil and Gas from North American customer, which JMT earlier was doing close to. That was an INR 100+ crore business, which JMT was doing. I think we are getting that customer back very soon, and that Oil and Gas business from JMT will be a big business which will be consolidated in the balance sheet of RKL. Okay. From a margin and return ratio point of view, non-auto segment would be comparable to autos? I think non-auto is obviously a better margin game, and as our non-auto businesses continue to improve and in terms of percentage to our sales, our profitability should grow. Understood, sir. Thank you. Thank you. The next question is from the line of Vidrum Mehta from ASK Investment Managers. Please go ahead. Yeah, thank you for the opportunity. Sir, post the, you know, QIP money, what will be our current gross and net debt? As of today, it becomes INR 593 crore is the net debt, and by March, it will be less than INR 500 crore. Okay. Okay. So secondly, of the 20% growth, you know, in growth on the standalone business, which we clocked for Q3, could you help us in terms of, you know, understanding, the bifurcation with respect to pure volume-driven growth, or from new products or from, you know, market share gains from the existing customers, like, you know, can you bifurcate that 20%? It is very difficult to say what, market share came from what customer or whom, but in terms of new components, I think almost, growth for 5%-6% has come from new businesses, which we have won in domestic industry in terms of our content. And, exports, I think you see year-on-year, 4.1% we have grown in terms of exports, and that also largely driven by new customers wherein our supply has started in this quarter. And in this quarter, you will see further gains coming in with this place. And I think overall, in terms of market share gain, it is very difficult to tell from whom we have gained market share, but we are continuously working with customers to get into new product lines and, new contents, and both in domestic and in export. In domestic industry, things turn around very fast, because of our local presence as well as our foothold into and the relationship which we enjoy with the customers. ... Right. So, you know, would it be, you know, safe to assume that roughly 5%-6% is the new business growth, which we achieve on an annualized basis? And, you know, new order gains also helps us in terms of, you know, booking the revenue, apart from the organic M&HCV growth, you know, which the industry clocks. No, I think the industry growth, I think, is very difficult to say how we grow against the industry growth. But in terms of existing components, we have been able to gain market share. New component, which I said 6%, is absolutely a new, like for M&HCV, we started, we have started manufacturing suspension components. So these are the sectors which we are entering new in terms of sourcing. So these are, this is the 6% which we are bringing. So obviously, with existing components, we have been able to increase our portfolio with the customer. Also, the new content which we have been able to create in terms of sourcing, that is helping us in terms of our overall gain, in terms of the overall, if you see 33, 30+% growth, that is the reason we have got. Okay. So secondly, on the domestic M&HCV front, like, you know, we keep on hearing that, you know, after two or three years of a good M&HCV growth, you know, in the domestic business, expectation is that for 25, so probably we could see a flattish to mid-single digit growth for M&HCV. But, you know, in terms of average tonnage, it is going to go up. So, you know, number of M&HCV sold, you know, could be, flattish, but in terms of tonnage-wise, the carrying capacity could be higher. Given that situation, would our tonnage be better, in terms of, you know, growth for 2025? I think that- So should we look at absolute M&HCV number, or should we look at tonnages for reflecting the growth? I think the best way to look at it is the tonnage growth, and I have been always saying that number of with the way right now the freight is moving around in India, and with the kind of, vehicles which are being built, multi-axle and high tonnage vehicles will be sold more and low tonnage. So unit numbers will not define anymore. The growth is going to be determined with the- Sorry, sir, we can't hear your voice. Hello? Hello. Yeah, yeah. Yes, yes, it's better. I think with the overall, what we feel that overall tonnage growth is going to be the way forward to look at the growth in the M&HCV industry. If the tonnage grows, we will continue to grow because the number of requirement or number of axles will increase with the high tonnage vehicle. Okay. Okay. And, so lastly, on the restructuring part, where, you know, we are doing some, we are going to acquire a land of, you know, Mal Metalliks Private Limited, which is a step-down subsidiary. And we intend to commence a trailer axle assembly over there, which will help us in terms of, you know, getting some operational efficiency. Could you throw some color on that, on the qualitative as well as on the quantitative front? How much benefit could we get out of that? No, I think- And, uh- These are all 100% subsidiaries, and we are going for large-scale restructuring. I think in February you will hear much more in terms of restructuring. We will not be maintaining so many subsidiaries like ACIL, JMT, Multitech, Mal Metalliks. So this is only the first phase of consolidation which is happening. But the overall consolidation in terms of ACIL getting merged in RKFL or JMT getting merged in other subsidiaries, we will only be carrying two companies, 100% subsidiary of RKFL, which is going to be the casting business, and the rest, all the businesses are going to get merged in RKFL very soon. So this is first part of restructuring, which we have done. I think overall restructuring you will be doing by end of February, in which only we should have 100% subsidiary of RKFL, that is, the casting division. Okay. So, can you share the, you know, breakup in terms of revenue from the subsidiaries for this quarter? Like, you know, standalone, we already know and consolidated we have the number. The subsidiary-wise revenue, if you could share. I think, Multitech Auto is close to around- 90. INR 92 crores. Okay. We have LLC around INR 20 crore, RKFL LLC, around INR 29 crore. Okay. ... INR 60 crore. INR 40 crores. What happens, that RKFL LLC, being the goods being supplied from RKFL India, so lot of it gets eliminated. So overall number, get eliminated by INR 25 crore-INR 30 crore in entire consolidation. That's why the number is, whatever you add up, it will come at INR 1,087 crore, but actually it will be INR 1,057 crore. Okay. At the consolidation level, LLC numbers basically are getting knocked off because of indirect. So basically, 1,050, you are seeing around INR 29 crore getting knocked off, which remains as inventory in LLC. Okay. Thank you, sir. Thank you very much. ... Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, we request you to limit your questions to one per participant only. The next question is from Mitul Shah from Dam Capital. Please go ahead. Sir, thank you for the follow-up opportunity. Sir, my question is on, as we almost completed all the three acquisitions, and majority of the payment is done, so what would be the investment amount for this FY 2024? And at the same time, on CapEx also, we have done majority of CapEx, also capacity expansion in this year. So what would be CapEx for this year and next year? Would be purely maintenance CapEx or anything meaningful apart from that? Still, I think overall, I think CapEx this year should be approximately around INR 450-460 crores in FY 2024. And in FY 2025 also, if you see our presentation, we are setting up a capacity for 8,000-ton press. Also, we will require maintenance CapEx both in ACIL and in JMT on an ongoing basis, and the casting capacity, which we afresh augmenting. So overall, we are looking at similar CapEx from free cash flow of around INR 400 crores in next year also. Just clarifying this- Mitul, I think we will be able to give you some exact numbers once I think on the full year results, once we finalize our entire budget in terms of overall cash flow, what we are having and what is the CapEx spend out of that free cash flow. Just for clarification, this INR 450-INR 460 crore this year is a big investment, right? No, no, no. So the INR 450 crore is on the only CapEx investment. This year is separate because you can understand INR 200 crore already we paid for Multitech, INR 125 for JMT, and there is an investment in the railway project to the extent of 70-75. So INR 400 crore already in terms of investment without ACIL, I think we have done this year, and another INR 450 crore in terms of CapEx. So altogether it is INR 850 crore this year. From next year, it will become INR 400-INR 450 for the CapEx and investment together. Okay, sir. Thanks a lot. Thank you. The next question is from the line of Sagar Sahu from Jefferies. Please go ahead. Thank you for this opportunity. Just wanted more information on what is happening on the electric vehicles front. I understand that you are looking to develop some electric vehicle specific components, like e-axle, and you had also invested in an electric vehicle component startup. So any more information that you can give us on that front? So I think, we are doing almost 3%-3.5% of our revenue from EV, which we are supplying to overseas customers, but basically they are undercarriage components. And developing our own motor controller and e-axle with transmission, this is R&D, which is ongoing. I think motor and controller company we have acquired, that is TSUYO, which is a startup company, and we are already, working on in terms of our own transmission and e-axle. I think in next 3-6 months time, I think, you will hear more about it in terms of... Right now, it's all on trial stage, vehicle trial stage. So we don't have a concrete answer in terms of the size we can achieve, in terms of market cap, market size we can achieve in this. Once we have the trials and other things through from the vehicle, then we will be able to give you more color into it. But our aim is in next 2-3 years to develop the entire motor controller e-axle, along with the transmission and as a kit supply to the 3-wheeler and 4-wheeler market. Understood. Thank you so much. Thank you. The next question is in the line of Darshika Khemka from AV Fincorp. Please go ahead. Hello, thank you for the opportunity. So, sir, as far as I understand, our margin expansion in FY 2022 and 2023 was a combination of two factors, one being the operational, you know, things that the company has done and also the tailwinds from the industry. Would you be able to bifurcate and sort of give us breakdown that, how much has come from tailwinds and how much from company-related efforts, and how much of that basically would be sustainable? What I want to understand is that once this industry tailwind goes away, would our margins fall? I think, in terms of margin, I cannot give you anything related to what is tailwind and what is... But if you see constantly for 16 quarters, we have been maintaining a margin of 22% and above, and I think very slowly but steadily we are working towards our goal of 25% margin. And that's the way we are developing our own components or, utilization of our plants are being worked out accordingly. I don't see any headwinds to our, margin trajectory, while we do not say what is a tailwind which can happen to it, but I can very safely say that we aspire to be a 25% + EBITDA margin making company, while we will be able to safely maintain the current margin trajectory going forward. I had one more question. What was the CapEx that we incurred for the Warm Forging expansion? So, Warm Forging, we have already done the capacity of 10,000 tons. Right now, what we are putting up a small capacity around 3,000 tons on the Warm Forging. And, the capacity has already been completed. I think we are going to commence the line very shortly. Okay, can you help me with the CapEx number on that? I don't have right now the specific number on that line, so- Oh. We can't clarify that also. Sure. That's absolutely. Thank you so much. Thank you. The next question is from the line of Rakesh from Bhana Equity Advisors LLP. Please go ahead. Yeah, thank you for the opportunity, sir. Can you know our current order book? We don't have any order book. We work to schedules, and I think, we from our export customers, we get six months forward schedule, and from domestic customer we get two months forward schedule. We work to schedules only, and we do not have a particular order book. We have only order book related to our railways, which is close to around INR 250 crore right now from railways. Other than that, we do not have any firm order, firm order book as of five years. We work to only schedules we receive from customers. Okay, thank you so much, sir. Thank you. Ladies and gentlemen, that is the last question. I now hand the conference over to Mr. Rajesh Mundhra for his closing comments. Thank you. I take this opportunity to thank everyone for joining the call. I hope we have been able to answer and address all your queries. For any further information, kindly get in touch with us or our investor relationship advisors. Thank you very much. Thank you, members of the management team. Ladies and gentlemen, on behalf of Emkay Global Financial Services, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.