Ladies and gentlemen, good morning, and welcome to the Sansera Engineering Limited Q1 FY25 earnings conference call, hosted by Nirmal Bang Equities Private Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' 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 touchtone phone. Please note that this conference is being recorded. I'll hand the conference over to Mr. Varun Baxi from Nirmal Bang Securities. Thank you, and over to you, sir. Thank you, Neha. Good morning. On behalf of Nirmal Bang Equities Private Limited, I welcome you all to the Q1 FY25 results call of Sansera Engineering. We have with us the management team, represented by Mr. Preetham, Executive Director and CEO, Mr. Vikas Goel, CFO, and Mr. Praveen Chauhan, Head of Corporate Strategies. We also have with us the SGA team. I now hand over the call to management team for their opening remarks. Over to you, sir. Thank you, Varun. Thank you for hosting this call, and good morning and welcome, everyone, and thanks for joining this call. On this call, I'm joined by our CFO, Mr. Vikas Goel, and our Head of Corporate Strategy, Mr. Praveen Chauhan, along with our investor relations advisor, the SGA team. The results and the presentations were uploaded on the stock exchange and the company websites, and I hope everybody has had a chance to look at them. It gives me pleasure to update you that the fiscal year has gotten off to a reasonably good, strong start, in line with our expectations. During Q1 FY25, we have reported revenues of INR 7,439 million and an EBITDA of INR 1,275 million with sustained margins. Our domestic and international businesses have continued to grow at a healthy double digits. On our domestic side, we saw a healthy upsurge in demand, especially on a two-wheeler side. In terms of our international business, the growth has been fueled by multiple levers, including client additions, wallet share expansion, and some of the orders moving to commercial production. If we take a closer look at the domestic markets, notable growth in two-wheeler segment has been driven by thriving rural economy and its positive monsoon effects. On the PV side, HEVs continue to do well. However, demand for small cars is on the lower side. The industry is also seeing heightened levels of inventory. As I touch upon our performance across sectors during this quarter, I think it is important to appreciate that in all the sectors that we serve, Sansera's precision engineering prowess is a common thread that ties all our offerings together and helps us to stay ahead in the industry. With this backdrop, we are met with success in our emerging sectors, namely non-auto, tech-agnostic, and XEV. Together, these segments have expanded by 34% on a year-on-year basis during this quarter. We have registered a top line of INR 712 million in auto tech-agnostic products with a year-on-year growth of 68%. Our XEV business grew by 29% on a year-on-year basis to INR 421 million, despite the fact that one of key customers, we have, reduced our, in the two-wheeler segment, we have reduced considerable business. As a general phenomenon, PV OEMs today are facing a lot of pressure on the cost side, and as a result, we are very optimistic about, of our export potential on this segment. Non-auto side, which is another part of our emerging new age business, grew by 16% as compared to Q1 FY 2024. All non-auto subsegments, with the exception of agri, saw strong double-digit growth. The aerospace and defense segment delivered a top line of INR 256 million, with a 25-28% year-on-year growth, despite some delays in our orders from a key customer. To broaden our clientele in this space, we have added customers like Saab and Triumph Group. We are looking at about 40-50% CAGR growth in this sector for the next 2-3 years. For the off-road segment, where our end market is North America, we have locked revenues of INR 302 million during this quarter. We are working very closely with our customers to increase wallet share in this segment. Agriculture sales during the quarter stood at INR 161 million. Among our other non-auto comp, contributors, we are seeing a lot of traction in industrial, sorry, non-auto customers, we are seeing a lot of traction in industrial and marine engines as well. We expect this to become a meaningful contributor to our non-auto category in the years to come. In the auto ICE segment, we grew our revenues by 7.2% during the quarter, primarily on account of solid growth on the two-wheeler side. We are seeing an increase in content per vehicle on this side, as we are participating in key programs for premium motorcycles across our customers. Also, we are continuously working on adding new components and increasing the wallet share in this space. In terms of order book, it stood at INR 16.9 billion as of June 2024, out of which 63% of orders are from international business and the rest, 37%, are domestic orders. In order to cater to this order book, we need to add capacities over the long run. Our current facilities are working between 65%-70% utilization across our plants, and in our industry, peak utilization can reach to up to around 80% in the best case scenario, as we run all three shifts and around 300 days a year. This effectively warrants further investment in growth to support our order book and expansion plans in the long term. We are looking at a CapEx of approximately INR 450 million during this FY 2025, INR 4,500 million during FY 2025. This is towards brownfield expansion projects for which we are looking at our existing facilities. 40%-45% of our CapEx is expected to go towards tech-agnostic and non-automotive segments. The new 4,000-ton press, which is, which is being commissioned, and which will be fully commissioned by end of H1, will have a major step forward in, expanding our product portfolio in higher capacity engines, as well as aiding light weighting and aluminum components. In the future, we are also seeing an opportunity for chassis and suspension components on the aluminum side. To further strengthen our offering in the aerospace field, the board has also given clearance to add a special process facility to our existing machining facility. We expect to add this capacity by, mid of FY 2026, and subsequently fully utilized by FY 2027. Lastly, in terms of our new CapEx, we have recently signed a MoU with the government of Karnataka to acquire 55 acres of land. Over the years, we will be looking at Greenfield expansion in the area of our current expertise in this piece of land. We will take board approvals for these CapEx plans, and we'll update you appropriately. Now, I hand over the call to our CFO, Mr. Vikas Goel. Thank you, Preetham. Good morning, everyone. Let me give you a glimpse of the consolidated financial performance during the first quarter of FY 25. Our revenue from operations grew by 13% to INR 7,439 million in this quarter. This growth came from both domestic and international business, as explained by Preetham just, just now. We delivered our highest ever quarterly revenues on the domestic side in this quarter. We saw the gross margin expansion by approximately two percentage points, largely due to shift in the product mix, a favorable product mix. During this quarter, the gross margin grew from 39.9% in Q1 of FY 24 to 41.8% in the Q1 of FY 25. We had an annual salary hikes, which kick in every year in the first quarter of the year. As a result, we see an increase in the employee expenses on both year-on-year and quarter-on-quarter basis. Other expenses are semi-variable in nature and tend to increase to the extent of sales increase. Further, during the quarter, we faced some issues on the logistics side, leading to higher spend on the international freight cost. We had touched upon this during our previous call as well, and it's now actually playing out. The EBITDA for the quarter stood at INR 1,275 million versus INR 1,144 million in the same period of the last year. EBITDA margins were stable at 17% levels. With a continuous CapEx and capacity building, the depreciation and amortization swelled up to INR 400 million for the quarter. We maintained PAT margin levels and closed the quarter with INR 501 million PAT. With that, we would like to conclude this, our presentation, and open the floor for question and answers. 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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Siddhartha Bera from Nomura. Please go ahead. Yeah. Hi, sir. Good morning, thanks for the opportunity. Sir, my first question is, if I just look at the continuous order book increase, which we have been seeing, probably compared to the last year, we did about 8-close to 8.5 billion rupees order. And this time in the first quarter, the increases have been probably slightly more--slightly softer than what we had for the entire year. So how do we think in terms of the scale-up, if we, if depending upon how your discussions are playing out, do you believe, at an annual level, we will still be sort of having some of those numbers we have seen in the past? Or has there been any change given the global slowdown, if you can share some thoughts there? Thank you, Siddhartha. We have a very strong order book and a strong visibility into a lot of projects that we are working on. You know, ours is not a quarter-to-quarter kind of order book acquisition. We work on long-term projects, both on customer addition as well as increasing the product portfolios. And we are very, very confident that across all our segments, including aerospace, defense, our Swedish subsidiary, and also our international business, we definitely would like to you know, achieve a number which will be higher than the previous year's addition into the mix. There is a lot of visibility. We are working on a lot of projects. Of course, the timing of each of this varies, because the customers take this in their own project timing. But, I am very clear, and we are quite confident that we will achieve numbers which are high, which will be higher, if not equal to the previous year's order booking. Great to hear that, sir. Sir, second question is, if I look at now the revenue side, earlier last quarter, we had said that, we probably will still look to grow at least 20% this year on the revenue side. Do we still sort of assume that holds even after first quarter, or you believe there is some change to that? See, as of now, I do not want to jump into any, immediate conclusion. While, our... If you look at our growth, while year-on-year, we have posted on a consolidated basis, a growth of about 13%, but on a standalone basis, Sansera has grown by almost seventeen point eight percent, almost 17% on our, product sales. We have had a, degrowth of about 20% in our Swedish subsidiary, and, very flattish kind of performance from our, Fitwel, our other domestic, they grew by about around 2%. But if you really look at Sansera as a standalone, we have grown by almost, 17% in our, you know, product sales category. While, I would be cautious to say that, you know, international business, is looking, in the second half of this year, especially, the international, business looks to be slightly, worrisome. But overall basis, because of our increased, productionization of all our new developments, which have, started, you know, giving us commercial revenue and also strong growth in, two-wheeler sector, which is where, where we have a, significantly higher participation, I would still, do not want to jump into any change in numbers, but I am- we are quite cautious, and we have, we keep ourselves, you know, cautiously optimistic on this year's performance. Got it, sir. Thanks a lot. I will come back in next week. Thank you, Siddhartha. Thank you. The next question is from the line of Divyansh Gupta from Latent Advisors PMS. Please go ahead. Yeah, hi. I just have one question with regard to MMRFIC. So is there a manufacturing, or what's the value addition from Sansera side? Is it more to connect MMRFIC with, let's say, other customers, or are we also going to get into the manufacturing of these semiconductor parts? See, as far as their core competency is concerned, as we have previously told, they are into pure play electronics and software. They are into manufacturing and designing and manufacturing of radars, millimeter wave radars. So as far as Sansera is concerned, we definitely would want to add value to their current capabilities. So while the radar has got all the electronic elements, radars also would have mechanical elements, like you know, a seeker radar would have antennas, the whole chassis, the gimbals. All these things are part of our manufacturing process. So at an appropriate time when this gets into full mass production, and MMRFIC now with the backing of Sansera are looking at full radar integration, which would involve mechanical elements as well. So our interest and our contribution would be in this space. But along with this, you know, going forward, we think that, with our expertise, we will be able to give our customers full offering on both electronics and mechanical elements together. But we, this is more strategic for Sansera because, apart from what support that, we give them in terms of, manufacturing expertise, we also bring in a lot of, management bandwidth and, financial size so that they can participate in bigger projects and, you know, acquire such projects. So after our participation in, or our investment into MMRFIC, they're being able to set up a world-class-... Clean room facility with a lot of manufacturing capabilities added into PCB manufacturing, very high-end clean room, where they have actually, they're being able to attract a lot of interest, including defense and space sectors. We have been working on very, very interesting projects. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Neel Shah from ValueQuest Investment Advisors. Please go ahead. Yeah. So I had probably 2 questions. 1 was on the profitability front. So we have this medium-term target of reaching 20% in kind of margins. So if you just look at the historical numbers, we have not done that kind of margins earlier. So 2-3 years down the line, if you look at the key segments that you're indicating that they'll grow fast, 1 is agnostic, auto agnostic, where I think the margins are broadly similar range. Second would be aerospace. Now, aerospace, again, 2-3 years down the line, should not be more than 8-10% of the book. So what are these levers that you're expecting where, which would help us in terms of margin? Secondly, on the aluminum forging side, so, any indication you can give in terms of scale and profitability we can have in this particular business, and, why are some of your competitors in the forging space are not willing to enter this, aluminum forging segment yet? So, yeah, your thoughts on this will be helpful there. Yeah, Neel, I will take this call first, and then maybe our CFO, Vikas, can add into the thing. So of course, we clearly understand that while we have set ourselves targets on working towards 20% margin expansion, we very clearly understand that these are not going to come very easy. We need to have a clear-cut strategy. As an organization, we have had clear-cut strategy in terms of product expansion, in terms of segment expansion, in terms of a lot of productivity improvement programs, through which we will work towards achieving this target. But as of now, if you really look at what are the key levers which are going to drive us, apart from what you said, that focus on non-automotive segments, which includes higher value addition sectors like, you know, industrial segment and bigger engines, aerospace, and off-road vehicles, where our participation is increasing. But you should also note the point that our international business, where our margin profiles are higher compared to our domestic, our order books consists of significantly higher international business share. So as we keep moving more and more towards almost 63% of our order books are expected to come from our international business. Added to this, last year and this year, we have said that our subsidiary, because of the reorganization of our business, in, with our key customer, Volvo, in, Sweden, we have, we are, going through a lean patch there. So we have worked, and we have acquired very, two key business wins for our Swedish subsidiary, which will enable us to go back to 12%-13% EBITDA, starting from next financial year. So we have had, two very, clear-cut order wins on two engine programs, one of which is going to immediately start from, week 36 of this, calendar year. And the second one is going to, start towards the third quarter of this fifth. Both these programs, also, some element of aid is also going to come from our customer so that we can hasten up. This is due to a fact that one of their existing suppliers have gone out of business, so they wanted us to immediately take up and start delivering these components as we were the second source for this. So with these... And of course, our aluminum forging business, which was on a learning curve, a lot of improvements on optimization of processes, which includes productivity improvements, yield improvements, reduction of reductions, all this has happened. And we will continue to work towards achieving our optimum margins in this. So these are key factors. Added to that, would be, Vikas will add points to what I think. I think, Preetham, you covered almost all key factors. One is the continuously improving product mix in favor of more profitable segments, whether it's in non-automotive exports or the other exports. Second is the improvement of profitability profile of Sweden, which you already covered, and also the growth in two-wheeler sector, which is we are now facing, and we expect this growth along with the increased premiumization in the two-wheeler sector, which comes at a relatively better margin. These factors- ... aided with the operating leverage on better capacity utilization on various product lines will actually help us to achieve or get closer to the 20% goal of operating margin. Of course, there are other elements or other initiatives in terms of improving cost and efficiency, which are work in progress, and we are seeing good progress on each of those. Okay, understood. And also your thoughts on the aluminum forging side, the scale profitability that we can achieve over the next two to three years, and why is, you know, competition in domestic markets still not entering this segment? Your thoughts on this. I'm not sure I can answer on behalf of any others why they are not entering into this field. But as a sector, I don't think this is that much easy and straightforward that anybody with, you know, capital investment can get into this. There's a lot of technology and not only standalone technology, but a fully integrated technology, like, you know, your surface treatment is very, very important. Surface preparation is very important because most of these components, apart from functional criticality, is also aesthetically very important. So, it also calls for a lot of capital infusion. So, given the fact that the space itself is started to evolve and you know, taking up a reasonable quantity, so I don't think you know, the time probably is you know, appropriate for a lot of people to enter it. But over the time, I'm sure that you will see you know, many players looking at this thing, because on the long run, light weighting is going to be very, very important and key element in any technology of powertrain that is going to be adopted. So we feel that across all the powertrain adoption, one common factor that would be there will be light weighting. So that is the reason that we are focused significantly. In fact, we have started achieving, this year, we will be doing almost close to 1.5 million aluminum parts. So which is, which is a, which is a quite a, a good progress, given the fact that, this has been only about 2.5-3 years of, everything. As far as margins are concerned, we have clearly, in the past also, we have stated that, this is in line with our other domestic products, on a designed margin criteria. But of course, because we are on a learning curve, we have still headroom left to achieve these numbers. Okay, understood. Thank you. Thank you, and all the best. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address the questions from all the participants, please limit your questions to two per participant. Thank you. The next question is from the line of Bharat Sheth, from Quest Investment Advisors. Please go ahead. Hi. Congratulations, Preetham and Vikas, on the good state of mind. Sorry to interrupt you, sir. I request you to use the handset, please. Hello. Now is it clear? Yes, sir. Good morning, Preetham and Vikas, and congratulations on good set of numbers. Hello? Yes, thank you. Thank you, sir. If you can give some color on this, our MMRFIC radar business from, say, this year to next year, and then year following, what kind of a growth path that we are seeing? And if you know, you can give some broader picture on the number side also, and how will be the EBITDA margin. So how do we really did expect this business to play out for us, if you can give little more color? Yes, sir. Sir, we are working, rather MMRFIC are working on multiple channels. As we have said, that it is both for defense and surveillance and also in space. So apart from automotive, radar application that we are seeing a lot of interest, the first and foremost business is on a defense seeker radar program, which they have been working on from last 4-5 years, where they have made significant progress. All their modules have been; we understand that they have been certified now, and they are now looking at full integration and field testing. There is a lot of upside to this, because currently the end users seems to be importing all the things from outside India. And today, given the situation that the world is facing, a lot of demand for these are these are inside. So definitely the customer also putting a lot of pressure on full integration and field testing of this, because it involves a lot of government agencies, it takes its own course and time. But upon full implementation, when this radar gets integrated, because this this is the only company as of now who have been certified, whether whoever would be the integration partner, MMRFIC is set to benefit from the entire indigenization program. So that is on part of Seeker Radar, which is going into defense program. But apart from this, they are working with other agencies to work with a lot of surveillance radar, which also include a possibility to develop and demonstrate, you know, radars which can work for foliage in the foliage to detect any you know intrusions and kind of stuff. Also, we are working on some space programs as well. So we are looking at a very, very strong product portfolio development in the next coming years, which would also get translated into significantly higher revenue. I do not want to put any numbers as of now, because these are quite high potential, but might have some timeline constraints in putting up a number. But generally speaking, the average, the EBITDA numbers on this business would be upwards of 50%. Okay. A second question on so what is the potential, if you can give, other than giving any number for the next three years, I mean, the third year? I think that you know, at the current level, I'm not in position of the numbers that I can tell you. But over the course of time, probably we will come out with appropriate set of numbers that we can give it. Because as you are aware that while we have invested and the thing there is still the entire operations and guidance has to be given by MMRFIC board. So we will come out with an appropriate time, we will come out and give you the numbers then. Great. Second question is on this, if I'm not mistaken, in your opening remark, you said that in two-wheeler, we reduced to supply to one of the customer. So is that correct? And if we, it is just, just if you can give a little more color on it. No, because one of our customers, whom we were supplying, some quantities- Mm-hmm. EV customer, I'm talking about an EV customer, and due to various factors, which includes commercial also, we could not participate in the newer program because of the commercial issues that we could not agree upon. So due to this factor, compared to last year, first quarter to this quarter, there has been a significant reduction in the revenue coming out of that customer. But despite that fact, our HEV component business has grown by almost 30% year-on-year. This is aided by our productionization of components to our North American global leading EV customer, which we see that there is a good traction going forward. With the global cost pressures that are there now, opportunity for engaging on a global level with the different EV platforms and customers are very, very, you know, that potential has increased significantly. Okay. Thank you. Thanks a lot, and all the best. Thank you. The next question is from the line of Vidur Mehta from ASK Investment Managers. Please go ahead. Yeah, thank you, sir, for the opportunity. So my question is again on the revenue grow, growth. So our auto ICE segment grew 7% on YOY. I understand one of our customer, you know, reduced, the business, but that was on the EV front, right? So why our auto ICE just grew 7% as against, you know, two-wheeler industry, which reported, you know, around, more than 14, 15% growth in this quarter? So, there are various elements to this growth, as we see. One, of course, yes, the two-wheeler segment, we also registered a fairly good growth in terms of revenue year-on-year, about 19% growth we registered on two-wheeler sector. But then, there are other slices in terms of passenger vehicle and commercial vehicle segment. So we registered a degrowth in our three-wheel business, about 20%. So that is also included in this auto ICE combined growth of 7%. Secondly, one of our customers during Q1 of FY 2024, we had actually supplied a higher share of business due to some challenges that they were facing from other suppliers. Now, this year, those supplies were normal, so that is also reflecting as a flat or slightly negative and thus not capturing the growth. We also had, as Sriram was mentioning, some softness in the European side of passenger vehicles. Now, all this is clubbed as a auto ICE. So what 7% growth we are seeing is a combined result of all these pluses and minuses or flats. ... Okay. Secondly is on the number of LOIs or purchase order. So that has come down from 408 to 346 on a YOY basis, but largely the order book remains, you know, stable at INR 1,700 crores. So is it fair to assume that the new orders which we have won are of higher ticket size or bigger ticket size? And can you throw some light in which segments or geographies we are receiving this bigger ticket size order? The number of LOIs, I mean, you can't read too much into it because there are probably this is because we have shifted the—at the beginning of the year, we have shifted the, the, into mass production. So you know, it's just a number that the LOI numbers to the peak revenue. What I want to tell you is that, you know, the order book addition into the future also looks quite strong. As I've said that during the second quarter, which probably at a later date when we do the quarter, second quarter announcement, we have added business, a good amount of business into our Swedish subsidiary, into this new program, which I said that which would also help them to, you know, bridge the numbers and this one. And we have also started looking at good order inflows into our aerospace and defense sector, where not only from aerospace and defense, but there is some new interesting segments that have emerged, where we have been able to start getting orders and interest. Which is very, very close to what we do in our aerospace and defense. Of course, these are ultra-high precision component machining into semiconductor machine manufacturing space. We have been able to acquire some good amount of orders into this space as well. So because it is now part of this Q2 order book build-up, you will come to see. But we are quite confident, confident that across all the segments, including auto ICE, where a lot of interest is now coming back into auto ICE, which, of course, as you are aware, that our connecting rod and auto ICE business is a very well-established and very optimum, optimized business, where we tend to get both higher margin. So that is also showing a lot of promise because a lot of customers in Western world who have put up a, who have put, you know, a freeze on auto ICE development, engine, ICE engine development, have actually started working on all these platforms, and we have been able to get good amount of interest. Overall, we think that this year we will end up very strong order book growth like what we have been demonstrating over the last couple of years. So lastly, just on the order book front. So our EV share of order book has come down from 19% to 17%, on a yearly basis, YOY basis. So we keep on hearing there is some slowdown in the adoption of EV, you know, globally. And is that the reason why order book is not moving, specifically EV order book? You know, is there, you know, some of your customers have postponed their EV launches, by a year or two, and that is what is reflecting on our, in our order book? Your sense on the overall EV order book or adoption of EV globally. No, I, I would say that, yes, there has been, some concerns on, the rate of adoption of, EV and the expansion of EV into the, in the Western market, both in Europe as well as in, U.S., there have been, there have been, we can see slowdown in the, in the sales as well as in the overall when, companies had announced that their, focus is largely on EV and no ICE, focus, but that has definitely shifted now. They are working, on equally there have been focus, shifted towards ICE as well, which is, which is in a way, also good for us. But what you see is mostly because as we keep working with our existing and new customers to acquire more inroads into our EV components, but because we are we get a bigger pie from our ICE, that shift is what we are talking about. It is, as of now, we don't see any slowdown in the order inflows, but of course, the quantum or the quantities have, you know, probably would slow down a bit. But order book, I don't think there is any concern as of now. Okay. Okay, sir, thank you. Thank you very much. Thank you. Thank you. The next question is from the line of Deep Shah from YES Securities Limited. Please go ahead. Yeah, hi, sir. Thanks a lot for the opportunity. So the first question is on your opening remarks, where you are mentioning that you are looking at setting up a special machining facility with an SOP somewhere between here by 22. So if you can share why- Sorry, I can't hear you. Can you be a bit more clear and louder, please? Sir, can you hear me now? ... Yes. Yeah. So the question on your opening remarks, where you had said you are going to set up a special machining facility for aerospace segment, and so we expected by 26. So basically, what I want to know is what does it change for us in terms of the growth and the profitability and what we do today? And second question related to that is what is the CapEx for that line, basically? That is the first question. Yeah, my opening remarks was that the board has approved for us setting up of a special process facility for aerospace, where we have a machining facility now. What I meant was that, we are dependent on outside vendors for doing all the special process like anodizing, shot peening, NDT testing, primer and painting, conversion coating, chrome and zinc nickel. All these are the processes which we get it done outside for the aerospace business. While for automotive, a lot of them, what is required is available in-house. For aerospace, because the quantum and the scale was lower, we had not put up any dedicated facility which requires a Nadcap approval as well. Now that we see a lot of potential new order inflows and higher value-added parts, so we have decided in order to, you know, accelerate this growth, what is required is apart from the capability of engineering, which Sansera has demonstrated, we should have some in-house capability of special process which will aid acquisition of higher value-added business, because people are tentative if you do not have this in-house. So we are setting up this. This would mean that in over 12-15 months, this facility will come up adjacent to our existing machining facility, and this would have an overall investment of about INR 30 crore. Okay. Okay. Okay. And the second question is on the Swedish operation. So basically, you had highlighted that the margins can be reached to about 11%-12%, FY 2026. Where are we in that journey as of today? So, last call you had said, FY 2025 margin probably would be flat this as compared to FY 2024. So if you can update on the 1Q performance. Yeah, my colleague, Praveen, will take that call. Yeah. Praveen? Yeah. So on the Swedish operation... Am I audible? Yes. So on the Swedish operation, we have been able to acquire certain businesses as we have been talking for the last few quarters. This is big connecting rods, in fact, bigger connecting rods. Incidentally, these were being produced on a manual line. Now, we are in the process of automating that. That's one area of improvement that is going to happen. So once we automate the line, the human resource requirement would be much lesser, and therefore it will be much more profitable. That's one part of it. Second is what Preetham spoke about, a new business acquisition, where their customers' alternate supplier had been into a tough time, and had stopped supply, or are in the process of stopping supply. So this business is coming out to be on a very good pricing and good profitable business. So we expect both these put together when these come on stream and, the lines become automated, which is closer towards the end of this year, the business will become, much more profitable, and the real effect of that will come in the next year. So the top line as well as bottom line, both will be positively impacted. Okay. So basically, if I read it correctly, you are saying, by end of FY 2025, the margin profile should be, touching double digits versus, let's say, about 6%, which we did last year. Yeah. It could be tending towards that, but the real impact will come only either in the last quarter of this year or maybe the early quarter, the first quarter of next year. Deep, by end of this financial year, we will have all the elements in place to deliver that higher margin. We may not be able to report a higher margin in this year, possibly. Understood. Understood. Thank you. That's it from my end. Thank you. The next question is from the line of Aashish Upganlawar from InvesQ PMS. Please go ahead. Yes, thank you. So I'm a bit new to your company, so just trying to understand, I mean, I think 70-odd% of your business comes from domestic market. So, we have had a very good time in the last 2, 3 years where the domestic auto industry has done well, and I think some plateauing is happening now. So in case there is a, there's a slowdown and, basically growth doesn't come in the domestic markets, how does your business perform over the next, in such a period? Any comments would be helpful to understand. Of course. Thank you. We would definitely not be fully insulated by what happens in the industry. Industry, we, we are in the industry, we are integrated with our industry, and if there would be a slowdown, like everyone else, we will also get impacted. But what works for us is, about 32%-33% of our revenue comes from our international business. Also, sector-wise, we have tried to diversify from automotive to other sectors, which includes non-automotive. So as far as... And we have also added a lot of new customers, new programs. Product expansion, all these things, we are quite confident that, as we have stated earlier, whatever would be the industry growth, you can add that, overall we would grow by about 8%-10% higher than the industry growth. So this is where we are working towards, you know, insulating ourselves from, of course, the inevitable slowdowns in certain sectors, certain geographies, which will have an impact on the business, but we are trying to be minimizing that negative impact onto our business. Okay. So what I could understand is even if assuming that there is no growth, zero growth on the industry side, still we will be able to ensure about 8%-10% growth, on a rough basis? Yes, that is what, that is what we say. And the international business plus the other components of, rather, non-autos and domestics, figures would help to understand, basically, what kind of growth are we expecting, just to make up the picture clear on the consolidated basis for us. Generally, because our non-automotive business is on a lower base- Right. The growth rate, non-automotive and XEV business and the tech-agnostic business is much faster. So, if you really look at the next 2-3 years, we are looking at a CAGR growth in this in this by about 40%-50%. So depending upon each of the sectors, it could be slightly different, but then overall, what we see is non-automotive, tech-agnostic and XEV business, we hope to grow by about 40%-50% on a year-on-year basis. Yes. Internationally, you're saying that it's difficult to take a call given the scenario overall as to what the growth rates would be looking at? If you see, for us, the revenue growth from revenue growth from our international business in the first quarter has been almost about 28% on Sansera standalone. So we have actually grown faster than domestic, even in this year, in Sansera standalone. Because of our Swedish subsidiary's degrowth in the first quarter, there has been some muted this thing. Otherwise, international revenue, because we have added customers, we have added the thing, despite the fact that there could be a slight slowdown in the second half of the year on a general market industry, but because our new additions of businesses, we are still confident of delivering a strong growth on this segment as well. Sure. Sir, if I could, basically on the margins, you are saying that still there is potential to improve that. You said that it will take some hard work on that, but you would probably expect margin improvement, right? I mean, on a consolidated basis overall. Yes. What you expected earlier part of the call? Yeah. There are structural elements, and there are special efforts also, as you also mentioned. So it's a combination of both of these things which will help us to achieve higher margins. Any conservative numbers on where we, they would trend maybe in the next one or two years? So it's a path. I may not be able to give you specific numbers at this point in time. Right. Okay, thank you so much. Thank you. Thank you. The next question is from the line of Basudev Banerjee from ICICI Securities Limited. Please go ahead. Thanks. Just a couple of questions. One, as you used to highlight earlier, so what's the internal target of Aerospace revenue in FY 25 as of now? And what is the target of export business, ex of Swedish business, in INR for FY 25? Thanks. Basudev, sorry. Can you repeat this? I missed out this question. Sorry. What is the internal target of Aerospace revenue INR crore FY 2025, and similarly for export business, ex of Swedish business this year? Aerospace revenue target for FY 25, is that correct? Yes. The second part of the question? Is ex-Swedish business exports, like, exports out of India? Yeah. Basudev, as I said, that our exports out of India grew by almost 27-28% this quarter. We did well on both on HCV as well as on tech-agnostic in this segment. For this year, for Aerospace, we are looking at between 30%-35% growth as it stands today. While initially, the expectation was that we would grow between 40%-50%, but because still we see that one of our customers are still not out of the woods fully, so there has been some pushouts of the schedules. So we are a bit cautious in saying what we will achieve, while we are working a lot on improving our defense revenues also. As it stands today, yeah, I think that, we should safely assume that we should do between 30% and 35% growth for aerospace this year. What was the base of fiscal 2024, absolute? 135? No, base of fiscal FY24 for aerospace is- 110. 110. 110, so 30-35% over there. And similarly, what was the base of exports from India? Exports from India, one second, I'll just give you the... Exports from India last year, for the full year was, just a minute. Just, 25.25%. Yeah, around 25%. Yes. No, no, sir, I, I meant INR crore FY 2024. About INR 665 crore. Oh, that does not include Swedish subsidiary? No, no, no, it does not include Swedish subsidiary. This here, this is only from exports from India. Product sales, I'm talking about product sales. Yeah. Yeah, because, you know, revenue includes other things, but this is purely on product sales. Twenty-seven percent of our—twenty-seven and a half percent, of our, revenue from product sales comes from exports from India, which stood at about INR 665 crore. Sure. And asking, sir, any progress in terms of technical partnership or JV or tie-up with any global player to get access to newer markets, newer products, newer customers, et cetera? We are, you know, we are always looking at and working on these elements. As of now, there is nothing to declare, but definitely we are looking at various opportunities that are available, especially in aerospace segment, for this kind of opportunity. So company is actively keeping ourselves active in this space, but there is nothing that I can talk about as of now. Okay, sir. Thank you. The next question is from the line of Himanshu Singh from IDBI Capital. Please go ahead. Sure. Thank you so much. So, we said that our growth in the EV segment was around 30%. This was the high growth segment which we, we were expecting for, like, going ahead. So what kind of growth we can assume for FY 2025 and 2026, given we have lost six big customer in the segment? So will this still be a very high-growing segment, or like, because we have grown at 30% compared to 52% in FY 2024, so the growth has come down. Yeah. Any comments on that? No, this, this was, you know, towards the, towards the third quarter itself, we expect that, one of the OEMs, we, we have, come out of two-wheeler EV OEM business, largely, not fully, but then largely. We have also started commercial production of, our, you know, into our North America and, where we expect that, there is a strong, growth prospect, commercialization has happened. But having said that, as you are also aware, that there have been some headwinds in the EV sectors. Every, every customer is finding it difficult to, you know, deliver, growth in numbers. But as far as we are concerned, we are looking at almost INR 100 crore of revenue to come out of this customer in this financial year, which would aid our growth into this segment. So, and also, going forward, we are also working with them and other customers to add more components and also add few more customers into this segment. So the focus has been, while the industry, we have been talking about there could be a slowdown on adoption, but we want to keep working towards improving our participation in this. So our focus has been on working on ATV and tech-agnostic components, which goes into ATV as well. Okay, sir, thank you so much. So, on the non-auto side, off-road segment, so how is the growth expected this year? So we have seen some moderation in growth in the first quarter. So, what is the kind of growth we can expect for the full year? Praveen, you want to take it? Praveen? Sorry, sir. Himanshu, can you repeat your question, please? Sure, sir. So I'm talking about the off-road segment. We have seen some moderation in the growth profile. We have grown around 15% this quarter. However, the full year growth last year was almost 60, 67%. So what is the kind of growth we can expect for full year in this segment? So, Himanshu, we had a major upscale in terms of our new components addition, new products addition last year. This year, mostly it will be execution or normal consolidation of that. There will be moderate growth. There are other programs which are currently in discussion with this customer, which will probably play out in the coming years. This year, you may consider this will be a normal growth, not a substantial growth that we witnessed during last financial year. Okay. Around 14%-15% is what we can expect? 15, yeah, it may be in that range. Okay, sure. Thank you so much, sir. That's it from my side. Thank you. Ladies and gentlemen, we'll take this as the last question. I now hand the conference over to Mr. Varun Baxi for closing comments. Thank you, Neha. On behalf of Nirmal Bang Equities, I thank everyone for attending this call. I also thank management of Sansera Engineering for giving us the opportunity to host the call. Thank you so much, sir. Thank you, everyone. Thank you, everyone. With this, we conclude the call, and, if you have any further queries, please contact SGA or Investor Relations advisor, or directly you can reach out to us and, we will do our best to answer your query. Thank you again for all of you to be, having participated and having patience to listen to us. Thank you very much. Thank you. Thank you. Thank you. On behalf of Nirmal Bang Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.