Ladies and gentlemen, good day and welcome to SJS Enterprises Limited Q2 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jayakale from Elara Capital. Thank you, and over to you, sir. Thank you and good morning everyone and season's greetings to all. On behalf of Elara Capital, I welcome you to the Q2 FY27 earnings conference call of SJS Enterprises Limited. From the management team, we have with us today Mr. K.A. Joseph, promoter and managing director, Mr. Sanjay Thapar, Group CEO and Executive Director, Mr. Mahendra Naredi, Group CFO, and Ms. Devanshi Dhruva, Head Investor Relations. I would now hand over the call to Ms. Devanshi Dhruva for her opening remarks. Over to you. Thank you, dear, and good morning, ladies and gentlemen. We appreciate you joining us on today's conference call. We will begin the call with opening remarks from Mr. K.A. Joseph. our Managing Director, followed by a business and industry overview from Mr. Sanjay Thapar, our Group CEO and Executive Director. After that, Mr. Mahendra Naredi, our Group CFO, will walk us through the financial performance for the quarter. We will then open the floor for questions. Please note that the duration of this call is expected to be around 60 minutes. With the first 20 minutes reserved for our prepared comments. Should there be enough time for all questions, please feel free to reach out to us via email and we will respond to your inquiries at the earliest. Thank you once again for your time today, and with that, I will now hand it over to Mr. Joseph for his opening remarks. Over to you, Joseph, sir. Yeah, thank you, Devanshi, and good morning everyone. I trust you all had an opportunity to review our investor presentation and the financial results for the 2nd quarter and the first half of FY27. India's automotive industry grew production volumes by 17.8% in Q2 FY27, led by passenger vehicles at 24.9%. And 2-wheelers at 16.5%. Premiumization and the growing adoption of advanced features continue to expand our content per vehicle opportunity. In Q2 FY27, SJS witnessed a steady growth of 21.7% YoY in automotive driven by premium products. Higher content per vehicle and deeper OEM relationships. Consolidated revenue rose to— rose by 16.9% YoY. to ₹2,827.3 million, led by robust growth in passenger vehicle and exports. H1 FY27 revenue grew by 20.4% to ₹5,437.3 million. of 20.6%, highest since our IPO. H1 FY27 reported PAT of ₹1,327.5 million. Higher exports, favorable product mix, and operational efficiency remain central to sustaining profitability as we scale. On the capacity expansion front, our new SJS Decoplast chrome plating facility in Pune commenced operations in August of 2026. And the Bangalore plant expansion is also complete, with commercial production starting in Q3 of FY27. Further, the consolidation of Walter Packs 3 Ranjangau facilities into a single integrated larger plant will drive operational efficiencies and support future growth. With a net cash of ₹3,318.7 million at the end of September 2026, we have the flexibility to fund CapEx, strategic initiatives, and potential acquisitions. Going forward, we remain focused on innovation, premium products, and international expansion. Our design and R&D strengths, customer relationships, with new program pipeline positions SJS well for profitable growth. Now I hand over to Sanjay for the business and industry highlights. Over to you, Sanjay. Sanjay. Sanjay sir. Yeah, thank you, Joe, and good morning everyone. We concluded the first half of FY27 with steady progress on both financial performance and strategic priorities. Our focus on premiumization, deeper customer relationships, and investments in technology and capacity continue to create new business opportunities. Increasing our content per vehicle and widening our presence across automotive and consumer applications. Let me take you through the key updates for the quarter and half year. In, in Q2 '27, consolidated revenue grew 16.9% year on year to 282 282.73 crores, driven by passenger vehicles and a rising contribution from exports. Our automotive business grew 21.7% against industry production growth of 17.8%. Our ability to supply multiple aesthetic products across customer platforms continues to drive growth ahead in top industry volumes. Uncertain macros, prolonged geopolitical conflicts, and a planned rationalization of low-margin SKUs with a Walter Pack India consumer OEM softened the consumer segment performance, partly offsetting strong growth in the automotive and export segments. Further, 2-wheeler growth was led by scooters. 30.1% year-on-year growth for Q2 over motorcycles, which was 9.8% year-on-year growth, and which is the core SJS segment that we focus on. A gap that has widened significantly this year. SJS Automotive business grew 21.7% against a 13.2% industry growth for passenger vehicles and motorcycles combined. Indicating an outperformance by SJS and continued share gains even as scooters, where SJS has limited presence, outpaced motorcycles. EBITDA rose 23.1% year-on-year to ₹896.4 million with a margin of 31%, supported by better product mix higher exports, and operating efficiency. Despite moderate revenue growth, EBITDA has continued to— its steady upward trajectory, reflecting the strength of a margin profile and disciplined execution. PAT grew 34.8% to ₹583.3 million with a margin of 20.6%. On the capacity front, new chrome plating facility at SJS Decoplast in Pune commenced operations on August 26th, adding 2x capacity. And flexibility for new customer programs and emerging opportunities. Our Bengaluru facility expansion is complete with a 20% capacity addition and commercial production likely to start in Q3. SJS Display Electronics Private Limited is setting up an automotive displays facility in Pune which will become operational in Q2 of FY28. We have also acquired the balance 9.9% equity stake in Walter Pack India, making it a wholly owned subsidiary of SJS Enterprises with full ownership. Walter Pack is consolidating 3 Ranjangao plants into one large facility for efficiency and growth, and it is expected to commence operations by May 2027. We will continue to align these additions and customer programs and maintain discipline through commissioning and ramp-up. Innovation remains at the heart of our product development as aesthetic products increasingly combine visual appeal with technology. Our collaboration with BOE Veritronics is building our capabilities in optical cover glass, glass coatings, and automotive electronic display systems, addressing the growing demand for digital displays in passenger vehicles. Combined with illuminated logos and a growing suite of advanced aesthetic products, these offerings significantly increase our content per vehicle and strengthen our standing with the OEMs as a capable innovation-led partner for the new vehicle launches. During the quarter, we won several new businesses from TVS, Mahindra and Mahindra, Hero Motocorp, Stellantis, Maruti Suzuki, Bajaj Auto, Royal Enfield, Whirlpool, Godrej, amongst others. SJS Decoplast added Tata Motors as a chrome plating customer, further increasing our cross-selling opportunities across the SJS portfolio. We also added Harman and Tadmi, which is Toyota Middle East, as our new customers and secured export orders from global OEMs like Stellantis, Whirlpool in North America, and Tadmi, Toyota Middle East. Exports grew 23.1% year on year to ₹282.5 million. We are strengthening our presence in ASEAN, Europe, North America, and expanding into Turkey, Brazil, Argentina, Colombia, South Korea, and Germany. Our engagements with several large global OEMs are progressing well, and we see promising opportunities ahead. We remain confident of achieving a 14 to 15% export revenue share by FY28. During the period, we received several awards for financial management, customer engagement, and sustainability, and we continue to invest in employee development and manufacturing excellence. On sustainability, we began sourcing 2 megawatts of wind power from DB Renewz Private Limited. We also joined the UN Global Compact reinforcing our commitment to its 10 principles. and the UN Sustainable Development Goals. Through our CSR initiatives in sports, healthcare, education, and women's empowerment, we supported 25 individuals with artificial knee replacements. Through Karnataka Marwadi Youth Foundation and partnered with Shikshana Foundation on foundational literacy and numeracy programs across 50 government schools in Kanakpura, benefiting about 3,800 students. SJS believes in women empowerment, be it within the company or outside. Women now represent 17% of SJS workforce, up from 12% in FY22. Reflecting our continued commitment in building a more diverse and inclusive organization, extending this commitment to community, we partnered with Varsha Seva Trust to launch a women empowerment project at Agarha Panchayat, Bangalore, training 200 women in tailoring and beautician skills to help them build sustainable livelihoods. Looking ahead on the business front, we remain focused on premiumization, exports, and deeper customer relationships with disciplined execution, financial flexibility, and visibility from new programs, we are confident of delivering profitable growth and long-term value for all shareholders. With that, I hand over to Mahendra Naredi, a group CFO. To take you through the financial performance. Over to you, Mahendra. Thank you, Sanjay sir, and good morning everyone. Q2 FY27 has been another milestone quarter for SJS with record quarterly revenue and profitability. Let me take you through the— our financial performance and key operating metrics. Starting with revenue, our revenue grew by 16.9% year on year to ₹2,827.3 million, our highest ever quarterly revenue. An important milestone was achieved in September when our monthly revenue crossed ₹1,000 million for the first time in our history. Growth was primarily driven by passenger vehicle and exports. Moving to profitability, gross profit grew by 17.9% to ₹1,597.3 million, with gross margin improving to 56.4%. Despite higher raw material, crude price, and startup costs. EBITDA grew by 23.1% to ₹896.4 million, with margins improving by 144 bps. to 31%, both record quarterly performance. The improvement was driven by higher exports, a favorable product mix, operational efficiencies, and our conscious decision to exit low margin product at WPI. PAT grew by 34.8% to ₹583.3 million with a margin of 20.6%, the highest normalized quarterly PAT margin since listing. Overall profitability is growing significantly faster than revenue, reflecting healthy operating leverages. Coming to H1 FY27 performance, revenue grew by 20.4% to ₹5,437.3 million, while EBITDA grew by 28.9% to ₹1,696 million. With a margin of 30.5%. The reported PAT stood at ₹1,327.5 million, including a one-time gain of ₹241.7 million from the sale of our old Bangalore facility. Excluding this gain, underlying PAT grew by 39.4% to ₹1,085.8 million. Moving to cash flows and capital expenditure. Cash generation continues to be strong with H1 cash flow from operation at ₹1,070.5 million and free cash flow at ₹1,077.3 million. Our total CapEx plan for FY26 to FY28 is ₹2,700 to ₹2,850 million, covering our chrome plating and painting plant SJS Bangalore capacity expansion, our display and cover glass plant maintenance CapEx, and WPI plant consolidation. We have incurred ₹1,300 ₹10.6 million so far, including ₹822 million in FY26 and ₹488.6 million in H1 FY27. Our chrome plating and Bangalore project are now largely complete, and the remaining CapEx will be funded entirely through internal accruals. During the quarter, we also acquired the remaining 9.9% stake in Walter Pack India for ₹199.22 million, making WPI a wholly owned subsidiary of SJS. Despite these investments and acquisitions, we ended September with net cash of ₹3,318.7 million compared with ₹2,437 million at the end of March '26. Coming to return ratios, ROC improved to 41.5% compared with 35.5% in FY26, while ROE improved to 22.8% compared with 20%. This improvement reflects better profitability, higher utilization of existing capacities, tight working capital management, and a debt-free balance sheet. Importantly, we are delivering the ROE while maintaining substantial net cash equivalent to approximately 1/3 of shareholders' equity. Our financial strength is also reflected in ICRA AA- rating with a positive outlook. Finally, on our business mix and export, In Q2, passenger vehicle contributed 43.3% of revenue, 2-wheeler 38.9%, and consumer and others contributed 17.8%. New generation products contributed 24% of total revenue. Exports grew by 23.1% to ₹282.5 million during Q2, contributing 10% of revenue. H1 export growth was even stronger at 45.8%. We remain on track to achieve our target of 14-15% export contribution. To sum up, SJS continues to deliver healthy growth, record margins, and improving return ratios. We are generating strong cash flows, maintaining a robust net cash position, and funding our growth investments entirely through internal accruals. With most of our planned capacity investment now in place, we are well positioned to sustain our growth momentum and create long-term shareholder value. With that, I hand over to Sanjay sir to take you through the business outlook and opportunity ahead. Over to you, sir. Thank you. Thank you, Mahendra. Moving on to outlook, as we enter H2 FY27, we remain confident of delivering profitable growth ahead of the automotive industry. Supported by a differentiated business model, diversified product portfolio, and long-standing OEM relationships. Our priorities remain unchanged: increasing content per vehicle, building mega accounts, and converting new programs into revenue. While maintaining operational efficiency and financial discipline. Innovation remains key to us, central to our strategy. We continue to develop advanced solutions including optical cover glass, automotive displays, illuminated logos, and inboard electronics. Exports remains a key priority, and we are targeting 14 to 15% of consolidated revenue from exports by FY28, driven by deeper engagement with global customers. New program wins and entry into new markets. SJS is expanding capacity with new and consolidated facilities at Pune and Bangalore, mostly coming online in calendar year '27. Positioning the company to meet rising demand and support future growth. Our strong balance sheet, cash generation enable us to fund these investments while evaluating acquisitions that add complementary products, technologies, or customers. In a volatile environment marked by elevated commodity prices, subdued sentiment, pricing pressure across the industry has intensified. To some extent and dampened consumer sentiment, resulting in dropping sales for consumer OEMs. In addition, the growth divergence between scooters and motorcycles within the 2-wheeler industry continues to widen, and our portfolio is predominantly weighted towards motorcycles with relatively limited exposure to scooters. In light of the global macroeconomic environment, we have recalibrated our FY27 revenue growth outlook to 1.2 to 1.5x of the growth of the passenger vehicle and motorcycle industry. From 1.5 to 2x earlier. At the same time, we continue focus on driving cost efficiencies, and an improving product mix gives us the confidence to raise our EBITDA margin guidance to 29 to 30% from 27 to 28% earlier. This moderation reflects a deliberate strategic recalibration rather than a retreat. By consciously stepping back from select low-margin opportunities, we are positioning the business for stronger and more profitable growth ahead. Before concluding, I wish you and your families a very happy and prosperous Diwali. With that said, I come to an end of my quarterly updates. Thank you, and we are now open to answer questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Chandramouli from Goldman Sachs. Please proceed. 48 hours, it looks like a lot of sentiment seems to be changing around what might happen to crude oil prices and what might happen to metal costs. So in that context, if, if there is a wave of correction in some of these input costs and crude oil prices correct, there could be some secondary benefit on you think could be some of the upside optionality to this recalibrated outlook for the back half? Hi, good morning and thank you for taking my questions. My first question is just a little bit of additional clarity on the growth outlook. So over the past pricing as well as volume growth in the underlying industries that you serve. So just in the context of that, maybe this is premature, maybe it's not, but just wanted to understand what Uh, Mr. Chandramouli, thank you for that question. Um, let me put that in proper perspective. So at SJS, we are committed to allocate manufacturing resources to the most profitable businesses that we see for ourselves. As you are aware, in the last 2 quarters we were almost operating at maximum capacity. So the strategy for us was that what can we use our manufacturing resources to generate the best-in-class revenues and improve our already strong track record in terms of profitability. And we've done that, and that shows in the numbers. So our, uh, EBITDA has grown to a record Uh, 30, uh, percent, uh, and essentially what we see with commodity prices easing— hopefully, uh, let's hope that crude comes down and all the other commodities come down. That should improve buying sentiment. So, so the segment that we address, the 4-wheelers, the 2-wheelers, the consumer businesses— so the consumer especially is driven largely by sentiment. Because, uh, and this is something that we think will benefit from this, uh, macroeconomic, uh, future becoming a little more clearer. So we expect that growth will come back, but essentially within SJS, we now have capacities in place to again restart or turbocharge our exports or, uh, and also our domestic business, and that should lead to higher growth. So we see that over the next few quarters, revenue should come back on trajectory. So from what we said was allocation of resources to profitable products to increase our EBITDA, we will now be driving growth along with that. Thanks to this tailwind of improved sentiment. So I, I think it will be positive not only for us, for the overall economy, and that is a very positive That's a positive for the entire, entire economy per se. Got it. Thank you, that's helpful. Second question is just around Tata and Stellantis. I think in recent quarters you've been winning more business from Tata Motors, and Stellantis is one of the key customers which you think you can export more towards. And over the past few weeks, um, there have been announcements from both those entities around expanding the scope of their partnership and potentially sharing more vehicle platforms. So as a supplier to Tata locally and Stellantis globally, just want to understand what you're seeing in potential opportunity size from that expanded scope in partnership between these 2 key customers? Uh, we have extremely strong relationship with both. So Stellantis, the business continues to grow. We've won new export orders from Stellantis for a new category of products, which is decals. Uh, they have a lot of vehicles in the US, and we are making steady inroads into grabbing more and more share. Uh, with Tata, of course, we've been traditionally very, very strong for all the products that we have. Uh, we were, as I said, to the point of repeating, uh, a little low on capacity, which has now come on track. So we have a brand new plant for SJS Decoplast. We have increased capacity at SJS Bangalore. We are consolidating and increasing capacity at Walter Pack. So we see these opportunities, great opportunities to scale up the business very rapidly. So essentially the theme that we have is that customer, uh, support is critical. We need to be sure that we are able to deliver to customer expectation. If we take an order. So we have been circumspect that let us build capacity first before we target new customers. With now the capacity piece being done across all our plants we are absolutely back in business and we see a very strong trajectory for revenue growth coming from not only this partnership but for all other customers as well. Got it, that's helpful. And last question is just around margin, um, and, and just related question on DNA. So could you just clarify in a little more detail which are some of the lower margin products that you, you look to do less of going forward and, and what sort of products you're trying to vacate that capacity for? And also just related to that, we've had I think 4 successive quarters of depreciation reducing. So just want to understand what's driving that and where that line item should settle out going forward. So I'll, I'll answer the question on product margins and I'll ask Mahendra to talk to you about depreciation. So product margins, we have pruned in the last 2 quarters, we already have pruned the business, uh, and in fact, in one case, we returned a large consumer business because we found that it was not giving us the margin that we wanted to. We won a successor business which was a very high margin business. Unfortunately, the war in West Asia dampened that requirement so that export business was impacted, which I think now should come back with improving sentiment. So our product portfolio has been sanitized and we are a high profit, uh, product mix across all the businesses that we do. So, so all the pruning that had to happen has already happened, uh, and that is the result where you see our margins to be extremely strong, and they will become stronger when we increase, uh, let's say, benefit from the softening raw material prices. Mahendra, could you take that question on Depreciation, please. Yeah, the depreciation for the quarter, we had 108.9 million, which is lower than the last quarter, uh, when we acquired the Voltrapak there was some intangible was recorded, and after the period of 3 years, this impact is now nullifying. This is starting from the quarter 2 of FY27. So approximately 10 million is impacted there. So because of that, the depreciation amount has come down, uh, and we have capitalized this SJS Deco Plus, the Pune facility and the Bangalore facility in this quarter. The full impact will be going to start from the quarter 3, so that will going to start, uh, in next quarter and, uh, we will have an increased depreciation starting from quarter 3. Got it. That's helpful. Thank you very much and all the best. Thank you. Thank you. In order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to 2 questions per participant. For more questions, please rejoin the queue. The next question is from the line of Ajay Frederick from Sundaram Mutual Fund. Please proceed. Hi sir, thanks for the opportunity. So first question is on exports. So, uh, what are the, uh, low-hanging fruits or the visibility or even the type of businesses we are closer to winning in the next, let's say, 1 year to 18 months time frame. Um, that's one. And secondly is, uh, will acquisition be a route for enhancing our exports, uh, let's say to acquire a particular customer, etc., etc.? So it's a export-related question plus acquisition, anything on, uh, works, anything being discussed, uh, more on those lines. Again, in low-hanging fruit and exports really are, uh, you know, we've cross-selling of products to the existing customers. So Stellantis was a very major customer we acquired. As I mentioned earlier, we won business for decals with Stellantis. The opportunity set is even larger, but typically what these companies do is test you on a program and then once they see that yes, development is on time, they open doors to more products. So cross-selling to export customers more product from our portfolio is one low-hanging fruit. The other one is chrome plating. So there was a lot of pent-up demand, and that is the reason why we expanded, uh, this— set up this new plant for chrome plating. We see a lot of mega inquiries for chrome plating. At the moment, we are in the negotiation phase. As you can understand, the, the startup time for these such businesses is very, very short. So in some cases, uh, customer has shifted tooling for us, from us, uh, to us from some other suppliers. So this is a resourcing business which can start very, very quickly. So we are looking at all these opportunities, and we are very excited about the Toyota opportunity in the Middle East because there's a lot of chrome-plated plastic parts that they buy. Uh, large value, and that is something that can be done very quickly with this new plant that we have. So these are these low-hanging fruits that we are already addressing. Uh, overall, in terms of inorganic acquisitions, uh, whether that is going to drive exports It depends on the company that we acquire. So, so as I said earlier, uh, our rationale or lens to look at an inorganic opportunity really is that can we bring, add value That means scale that business up very rapidly as we did SJS Decoplast, uh, 4x in 5 years. So that is the sort of growth that we could potentially bring. So Is that potential new target something that we could do on similar lines is one question to ask. The other is, can we leverage our capability of being a large supplier and using a buying leverage to improve profitability in that company. So exports is not really the lens. What we are looking at is that does it— if there's an opportunity to acquire a company overseas that opens doors to large global OEMs for the rest of our business, that certainly is an opportunity. But specifically, uh, to acquire a company that does large amount of exports Uh, it depends on what target do we zero in. So, so we don't go thinking in terms of what markets. We are looking at the overall business, that if we can scale up the business add profitability and get it at the right place. Those are these questions that we ask ourselves, or give access to new markets. So those are the key lenses through which we look at an acquisition opportunity, not necessarily exports. Wonderful. That answers my questions. Thank you and all the best. Thank you. The next question is from the line of Pritesh Chheda from Lucky. Please go ahead. Sir, uh, just a couple of questions. One, if you look at the non-auto, it has not grown in H1 as well as in Q2. So if you could give some comments on the non-auto, what's happening and what is your outlook there? Because the, uh, PPTs actually give the outlook on autos and give an outlook on export, but it, you know, misses 20% of the business. So if you could tell me what's the outlook there. Yeah, so the outlook is very strong. The reason that I said of what I talked earlier in my conversation, uh, there were some low margin products that constituted a very large customer, in fact, a very, very sizable business that we chose to give away 2 quarters ago. So that we said in the last earning call also. So that we replaced with a high-margin consumer business. That consumer business, unfortunately for us, is— was focused largely on the Middle East. Where there is a, uh, current turmoil going on in terms of the macroeconomic challenges that you have. So that will come back. Uh, so non-auto continues to be an important part of our portfolio. And we hope to scale it up very well. But since we let go of a low margin business, that is the reason why you see that impact that our EBITDA margins for Q2 are 31%. Uh, that is largely because of product rationalization done. There is a new business that we acquired, so our strategy was perfectly in place. Unfortunately, that volume did not materialize because of this conflict in West Asia. So we are, uh, that is a short-term hiccup. We are quite confident that this will pick up in the coming quarters. Okay. And, uh, sir, on the chrome plating capacity, uh, what is the, uh, you know, revenue pool size now that you add via that capacity? Basically, what kind of peak revenue, incremental peak revenue? is possible from that capacity and thus utilize scale-up utilization of that capacity. So chrome plating grows very strongly for us. We've added the 2x in terms of capacity, so potentially we could go to about ₹500 crores from this, uh, with this new capacity addition. Uh, we finished last year about ₹240 crores, uh, so we will almost double capacity, and our target really is to get there sooner than later. So if you look at the past track record we've grown it at 3.5x in the last 5 years, and we hope to do the next doubling of capacity in the next 3 to 4 years. So faster the better. But we see a very strong order pipeline for that business, so we are very optimistic and positive in terms of our outlook for that. growth of that business. And the last question is SJS Display. Uh, if you could tell us the— now the, uh, the CapEx which will be committed in Phase 1 and Phase 2 and the asset turnover. Mahendra, would you like to respond to that? Yeah, Mr. Lucky, uh, for SJS Display, we have guided that we will going to incur ₹65 crore, uh, out of which ₹25 crore for the local bonding facility. And ₹40 crore is going to be for the glass facility. Uh, now coming on the asset turn, uh, since local bonding is like assembly which have a generally higher Asset turn ratio, uh, we expecting between 4 to 5 times, and in the glass we expecting between 2 to 3 times. So if you say on average somewhere 3.5 times. Okay. Thanks. Thank you. Thank you. The next question is from the line of Rakesh Jain from Axis AMC. Please go ahead. Yeah, hi team. Firstly, appreciate the transparency on the consumer business outlook. Thank you for that. So just a follow-up on the display business. So now the key picks which we have put in, that's quite a sizable number for us to interpret on what could be the future aspiration would be. Uh, 2 things. One, if you can help us understand, because we incrementally see a lot of global MNCs either repurposing their display business capacity, either imports, through imports, or assembly in India now. Uh, the vehicle solutions business for them, uh, you know. So in light of that, how do you see this ecosystem evolving, uh, in that? And within that, uh, you know, what, what would be our competitive edge, uh, when an OEM, you know, looks at the consideration set when you have an MNC and a domestic player? Of course, we have BYD, Valetronics. So in light of that, if you can shed some color, you know, on a qualitative basis, how should, how should one think about our customer set? Yeah, so, so 2-3 things here. So typically, uh, the opportunity is all about conversion of analog or digital clusters to be fully configurable displays. So all the, uh, 2-wheeler and the 4-wheeler companies which make instrument clusters are transitioning to this. Now, to make a display, typically what you need is, uh, LOCA bonding of the backlight unit the TFT screen and the cover glass. So our TLA scope with the BOE Valetronics is to localize the display to locally bond the display, localize the backlight unit, and also make the cover glass. Now, our claim to fame for being a winner in this business is our 40 years expertise in printing. So the cover glass typically is a printed part, uh, which has— which is glass which is printed on the border. It has some specialty coatings either through a lamination or through coatings, and which we have a great deal of experience and expertise in. So we think that for cover glass, we should be, uh, potentially the number one player, if not, uh, amongst the top 2-3 companies which will do cover glass in India. And remember, all vehicles in India will have displays in some form or the other, some form of the other, uh, small, big, large, and we are well positioned to do that. So that, that's one part of the answer. The second is that customers like to nearshore, uh, let's say these are aesthetic parts and they would like the supply chain to be close. Given the experiences in the past on global disruptions of the supply chain, you can't build a vehicle or you can't put a display if the vehicle is standing on the yard. So you need to be very, very clear that yes, uh, my supplier is next door. So I think reassuring for OEMs is a critical part, and for the, the government policy really in terms of increasing the local content and incentivizing the OEMs to invest in localization of these parts is the tailwind that drives the business. So for us strategically, it was very important to choose the right partner, and I think in BOE we have the right partner, which is a global leader in this business, uh, operating out of China. So Reed competitive pricing. So I think with the combination of our capability in India and our customer connect, our proven track record in terms of innovating and developing new technology products and offering them to the customers. So there's a very strong customer trust that we enjoy, plus a strong partner, uh, all should lead to a very, very successful business. And that's what we are laying the foundations for. Got it, got it. And, uh, the scope of opportunity, the initial phase is passenger vehicles, just reiterating that. Yeah, yeah, the passenger vehicles is the, the mother of these displays because in terms of technology, in terms of capability, these are the most complex displays and one passenger vehicle could have 1 display, 2 displays, 3 displays. So that increases the TAM exponentially. And as I mentioned earlier, there's rear seat entertainment which is coming. So very soon, uh, I imagine you will see in cars, uh, rear seat entertainment. And when one vehicle is launched with that, you would have an explosion of demand. So So displays is the way to go, and I think we are absolutely on the track to achieve success in this business. Thank you. ओके ओके गॉड इट सर थैंक यू सो मच ऑल द बेस्ट थैंक यू The next question is from the line of Pradyumna Choudhury from Bowhead Investment. Please proceed. Yeah, hi sir, uh, congrats on a consistent set of results. Uh, my first question is, uh, what was the utilization at standalone SJS level? Uh, because you've— in your PPT you've given the utilization at इन दी अदर तू बिजनेसेस, सो आई जस्ट वांटेड टू नो व्हाट दी यूटिलाइजेशन एट एसजीएस स्टैंडलोन वाज एंड व्हाय आर वी ओनली गोइंग फॉर एडिशन अ 20 परसेंट कैपेसिटी Given that we again stumble upon bottlenecks, could you repeat the last— could you repeat the last part of the question? Uh, why are we going for a 20% addition at SJS standalone? Given that again we'll, uh, be reaching bottlenecks in maybe 1 to 2 years' time, right? So, so let me answer the last part of your question first. So we already have a very large piece of land at Bangalore. Uh, this was easy. Uh, so what we did was we just built a roof on top of the a top on the top of a roof that we had. So it was low-cost investment where we could gain, uh, Joe, how much square feet of capacity have we added? Close to about 40,000 square feet, right? Yes, 40,000. Yeah, so almost 40,000 square feet of land could be built on an— on the top of an existing building. So that was the reason why we increased that capacity. And if you recall, uh, we had won a very large Hero MotoCorp business. Uh, we started with few models, more models are on the way, so there is a requirement for growth of our, at our existing company, plus a very large export opportunity for our consumer businesses also. Uh, in terms of overlays, etc., that we do at the parent SJS plants. So it was low-hanging fruit where we could very quickly add capacity, which we have done. That is the reason why we invested in 20% capacity expansion. Uh, the other part of your question was how much was the capacity earlier. So if I am right, it was close to about 85%. Uh, am I right? Uh, no, uh, we were utilizing 70 to 75%, and now we have added 20% more. So let's say current utilization is somewhere 60% of the plant. Uh, in our business, we always keep idle capacity because there is an up or scaling up on a festival season. So we are operating Right now around 60%, and we can go up to, let's say, 80-85%. So the reason is that the printing business is a batch mode operation, so you need to have flexibility because the SKUs are so large that you cannot have a higher capacity utilization. I think if we do about 80%, uh, it would be exceedingly good, but you need to keep that for batch mode operation. So therefore there is some capacity additional that's required. So that's the reason why we build this capacity. So, uh, are we planning in the coming months to announce even more capacities at SJS standalone level, uh, a new investment? No, no, for the moment, for the moment we have sorted. I don't think we need more capacity for the next 2 years. But if the need be, we have enough land at Bangalore to start building a new factory and doubling capacity. So that is not the point at the moment. We have a lot of expansion that we've done, and there's also fungibility of the equipment that we have. So, so the Walter Pack plant also does partly printing. Uh, we are expanding capacity there. So I think we are good for the next, uh, 2 or 2 to 3 years in terms of capacity. And this is— and the second question was, uh, maybe 1.5x outperformance on the industry. Is that right? Let me repeat that again because I think that is the, the question that most people have. So we like to be transparent, and what we commit, we would like to deliver that and more. So that is the reason why we highlighted that because of this, especially the consumer business, uh, the export of some consumer businesses which we had won, some very large businesses got impacted because of the war in West Asia. This war would, uh, we hope would come to an end and things would normalize and demand would pick up. Uh, that could take a couple of quarters. That is the reason why we have guided that, okay, even though the demand may be muted because of external factors our growth story continues to be extremely strong. As you mentioned time and again, uh, like the current, uh, slide compared to our, uh, levels, uh, this slowdown, uh, in terms of our growth compared to industry growth is mainly to do with, uh, the capacity constraints that we were facing. And so once this is sorted and once new orders start flowing through, we should again go back, probably go back to earlier levels of So let me put some numbers in place. So if you look at the 4-wheeler market and the motorcycle market, because that is the dominant market we operate in, in Q2 this market grew by 13.2%, our sales grew by 21.7%. So we are actually at 1.7x of the market growth. So we are outperforming the market. Even if I talk of the H1, so if I talk of motorcycle and passenger vehicles, the market grew by 15.3% in the 6 months of this year. We've grown at 26.6%, so that is again in that range of 1.7%, 1.7 times or 1.6 times of growth of the industry. So we are continuing to outperform. I would like to stress that fact. Only since we did not have capacity, what I said was that we rationalized that I rather use capacity for high, uh, margin products, and we did not chase products with lower margins because we wanted to maximize high growth with high profit. And that is what we've done very successfully. So my PAT margin for this quarter is 31%, which is a record. So, so we have I think as management navigated this, uh, challenging environment where commodity prices are going up exceedingly well, and this positions up us very, very strongly. That when this new capacities are in place, our growth will be back on that number that we mentioned earlier. So high growth. So think of us as a very high growth high-profit company. Uh, this detour that we took largely was, was capacity creation. Now that capacity is in position, you can, uh, you will see SJS growing very, very strongly. In terms of revenues as well. And so my last question was on— sorry to interrupt you, Mr. Chaudhary, but can you please rejoin the queue? Thank you. The next question is from the line of Nandan Pradhan from MK Global. Please go ahead. Uh, hello, sir. Good afternoon and congratulations on a great set of results, I think, especially in such a volatile environment. This is one small question from my side. So on the standalone front, uh, we had a very sharp growth last year because we obviously won new businesses from Hero. Now coming into 2Q, I think it is entirely in the base. I mean, that, and then as you mentioned, the divergence between scooters and motorcycles— would these be the key reasons for slower growth in the standalone operations? We were at about 9— 8.7% in 2Q. So if you could just share some color since we've maintained margins. But revenue has not grown as much also. No, no, largely that is true. As I said, building capacity is critical, especially in the printed, uh, printing business. Because of the nature of the business that you have to have multiple operations before you finally can send a product out. So it was just that rationalization. Now that everything is in place, we expect expect this to grow. And the reason why we've added capacity is we see a very robust outlook in terms of order book across all our customers. So we continue to grow. So I largely— it is that capacity piece. Now that capacity is in place, we can challenge large businesses. And in the short term, of course, we focused on profitability, but now property— the product mix being rationalized and being optimized Uh, we look forward to accelerated growth. So your inference is correct, uh, you should see very high growth in the— over the next maybe a quarter or 2 quarters it would take. As I said, some of our export business, which is also done through, uh, SJS standalone, uh, also would see a Philip Understood, sir. And so just a small clarification, if I may. The pruning of low-margin products was done particularly in the WPI operations, right, and not in the standalone business? No, but the overall sentiment for exports for consumers, uh, you're right. I was talking of one large business that we gave away where margins were low. Uh, was in Walter Pack. That is right. And we won the successor business, which is much better profitability in terms of profitability. That should come back over the next 1 or 2 quarters. We hope the market situation should improve. Uh, in the standalone overall consumer segment, you know, uh, the West Asia war didn't even— didn't only impact West Asia. So there were a lot of, uh, challenges and issues in North America as well, where demand for consumers was subdued. So that was a global phenomenon. So SJS standalone does a lot of consumer businesses which got impacted as a result of this. So we expect over the next 1 or 2 quarters this to normalize. So just for abundant caution, we said that, okay, next 1 or 2 quarters, uh, the growth could be lower than what we originally have been traditionally forecasting, 1.5 to 2x growth. So it was just transparent communication to the investor community. But let me underscore the fact that the net amount of EBITDA and PAT, uh, that was, uh, that the company was to deliver uh, basis the original forecast, we will still reach that number, uh, despite all that. So, so as an organization, we've navigated this challenge very well and used this time to rationalize our products. And we will be delivering the numbers that we did, uh, forecast at the beginning of the year, uh, very, very strongly. So, so we see no challenge at all in terms of meeting our commitments in terms of EBITDA and PAT. Understood. So thank you so much for that and all the very best. Thank you. Thank you. The next question is from the line of Nitin Agarwal from JM Financial. Please proceed. industry, and we have reduced the guidance from 1.5x to 2x, 1.2 to 1.5x. So wanted your sense that, uh, since you've already removed consumer durables from the outlook, uh, why have we, why have we reduced the guidance of outperformance since we've, uh, outgrown the industry by 1.7x as you highlighted? And related to that, uh, we are missing out on the scooter segment which as a category is increasing So contribution on 41%, now expected to go to 45% as per the OEMs. So what are we doing, uh, in order to capture the business from that category? Thank you. Thanks for the opportunity and congratulations on a great set of numbers. I just wanted to understand your outlook of outperforming the industry. You made 2 changes. Initially used to mention the underlying industry, now we mentioned underlying PV plus motorcycle Yeah, good question. So it is not that we don't do scooters, uh, the relative weight on scooters is lower because the content in a scooter is lower than in a motorcycle. So obviously we have traditionally focused on motorcycles, but given the strong growth in the 2-wheeler market, especially for scooters, we have a strategy in place So the, the chrome business and capacity that we have created, we will use that to target. So a lot of these scooters use logos, use badges, use garnishes, use Uh, so we already do very large business with one customer only. Our scooter business is not as broad-based. Now that we have capacities in place and we have the relationship already So we are already in discussions to attack the scooter market also in a very meaningful manner, uh, and that is what we intend to do. So, uh, I think we are this last 1 or 2 quarters of building capacity, uh, you will see in the coming year, uh, translating that into much higher revenue gains. than the market, and we should be back to our normal trajectory that we forecast. But I think what is underappreciated at the moment, or maybe not so clear, which I want to reiterate You know, in terms of— by rationalizing this product mix, we've made your company stronger. Uh, we are more profitable. Uh, this is a 31%, uh, EBITDA performance for this quarter and for the half year also, we are at 30.5%. This I think is industry leading, and we are a far, far stronger company Uh, now with the capacity in place, uh, we will drive that advantage even more. So to put that in perspective, I'm only repeating what I said earlier. That we are going to deliver the— in absolute terms, the rupee content of EBITDA and PAT will be absolutely where it was when we started the year. So, so we are very conscious of what we commit and we endeavor to deliver what we have said. So, so that I think should play out as committed to the market. So I am quite confident of that. Uh, just to follow up on that, so the product rationalization that we have done, so have we done that in the automotive segment also along with the consumer durable, or is that the consumer durable segment alone? No, no, all, all segments. So it was plant-wise look at saying that we have, uh, finite resources, we have infinite opportunities. What do we change? So we said let's allocate resources to the most profitable business, and that is the result of that. I would say I would compliment my team on great execution. So we've delivered exactly what we wanted to deliver. So I'm extremely proud of my team. Okay, okay, thanks. That, that makes sense. That's it from my side. Thank you. The next question is from the line of Hitesh Goyal from Origin Capital. Please go ahead. Yeah, thanks for taking my question. First, uh, congratulations. Uh, very few companies have actually reported YOY margin expansion. So congrats to management. My question is actually related to DecoPlus. So if I look at, you know, Q-on-Q revenue, there is not much growth because the new facility has come up in August only. So how should we see this ramp-up in the first year itself for DecoPlus? Because you've added Tata Motors as well, you've added Toyota Middle East also. So do we see a decent revenue ramp-up from 3rd quarter onwards now? Yeah, some businesses will start from the 3rd quarter, uh, and, uh, of course, you know, the key, the key factor behind success of SJS is that we are very, very focused on the customer. So any new business that I take, I do not take without building capability and capacity in-house. So the new businesses, it's not that, you know, we, we won businesses and then we said that, okay, now we'll start figuring out how to build capacity. So that is not how we do things. We first have the capacity. We are very confident that the customer values us as a very capable supplier, trustworthy supplier. So once the capacity is in place, so we have started approaching the customers now, and this Tadmi business that I'm telling you, uh, is just a result of that. So within a week of our confirming to the customer that, okay, our plant is ready, they said, here, we will ship some tools to you, start supplying to us. So that is the trust that we enjoy with our customers. So building that capacity or filling that capacity is not so challenging. So we are very optimistic that we will accelerate revenues from that company now that we have capacities in place. And the second half, just to clarify, second half is generally seasonally better for Exotec, right? Because I mean the automotive OEMs Second half is better than first half. Right, largely it is true of the entire industry, not just Deco Plus. Yeah. Yeah, okay, great. Thank you very much. Thank you. Thank you. आज तो नहीं, कल मेरी ट्रेन का टुकड़े क्लियर होता तो कल ही है मेरा। मैं से कल ही होता है। सर माय क्वेश्चन है अराउंड डी गाइडेंस विच यू हैव सेड फॉर 1.2 तू 1.5 एक्स तो Is it anything on the client side we are facing or some, uh, Slow down in the ramp-up for their models, which we are expecting that should be doing good for us. The next question is from the line of Pooja Seth from YES Securities. Please go ahead. Hello. Miss Seth, please continue with your question. No, no, as I've explained earlier in the call that this was primarily on account of a large export-driven business for consumers. at one of our companies, uh, plus our focus on motorcycles rather than 2-wheelers so that, uh, For abundant caution, we guided the market that what we have mentioned earlier, that we'll— our top line will grow 1.5 to 2x of the industry growth rate. We thought that it is important to clarify that we are a motorcycle-focused company, even though we have capability to do 2-wheeler business. Our focus was on motorcycles. So if you look at motorcycles, I will repeat what I said earlier in the call. If I count industry growth as 4-wheeler plus motorcycle for Q2, this segment, the industry grew at 13.2%, whereas we, SJS, grew sales by 21.7%. So this is far higher than the industry growth rate. We outperformed. Similarly, for, uh, the half year, the industry, uh, 4-wheeler plus motorcycle grew at 15.3%. We grew at 26.6%. So there is no question we outperformed the market by a wide, wide margin. In terms of my overall revenue, as I have repeatedly said in this call, it was on account of a single customer for exports where we gave away that business, and the overall revenue for the company therefore looks a little lower. But our outperformance for the automotive market is exceedingly strong. So it is almost 1.7, uh, 1.7, 1.8 times the industry growth rate. So it continues to be exceedingly strong, and we will continue doing that. Okay, okay. Thank you. Thank you. Thank you. The next question is from the line of Nalin Shah from NVS Brokerage. Please go ahead. Hello. Hello, yes, yes, congratulations on the set of numbers, sir. Uh, my first question is, with the chrome plating plant expansion at Pune, which is completed in August 2026, and Bangalore's capacity, which is expected to be completed by Q3 FY27, and Walter Pack facility consolidated by May '27, and the new display electronic plant in Pune by September 2027. What benefit— the benefits are expected to materialize in '28 with the full impact in '29. Given that, what is the top line that the management envisions for the next 2 to 3 years, like in '29, '30, '31, as these capacities scale up? My second question is Given the recent decline in crude oil prices and the easing geopolitical tensions, how does the management expect the company to benefit from these favorable developments in the upcoming quarters? Thank you. So let me answer the second question first. So despite crude oil prices and despite the currency challenges, we have delivered very strong margins. As I said earlier, we— for the first 6 months of the year, we are at a 30.5% EBITDA margin. Last quarter was 31%. We've improved this from last year, so there's a quarter-quarter improvement in profitability. That's because of the playbook that we set for ourselves, that we need to allocate resources to high profit products, uh, that was the focus. So we've rationalized that, we've built capacity, and we are back to normal. So if the crude prices and other inflationary pressures go down, of course this will aid what we do, but we are quite happy with the 31% EBITDA performance. Uh, we are okay with this. The next lever would be press the accelerator on growth, which you will see thanks to the capacity that we have in place. So that's the second part of your question. Could it be the first question that you asked? Uh, with all these capacity expansions that we have planned, which are going— yeah, what, what would the top line do we see, right? That was the question. Yes, sir. Yes, sir. Okay, so the top line could increase quite dramatically because these, all these 3 products are at a very different price point. You know, in terms of what I've guided earlier is that we expect the display market to be close to a 5,000 to 7,000 crore market by 2030-2031. And SJS, uh, we've set ourselves an initial target that we should be at least 10% of this business. So maybe a 500 or 700 crore revenue. coming out of displays by 2031 is something that we have set an internal target for ourselves. This is completely new on top of whatever we do currently. Our other businesses are more— we know these businesses exceedingly well, and that business growth rate is what I've guided to, that whatever the industry grows 1.5 to 2 times the industry growth is what you should expect by 2031. Okay, sir. Thank you so much. Thank you. Thank you, ladies and gentlemen. Due to time constraints, that was the last question for today. I now hand the conference over to Miss Devanshi Dhruva for closing comments. Over to you, ma'am. Thank you, Huda. I would like to thank everyone for joining on the call. I hope we have been able to respond to all your questions adequately. For any further information, we request you to get in touch with us on email. Stay safe, stay healthy. Wish you and your families a very happy and prosperous Diwali, and thank you once again for joining with us. Have a good weekend. Thank you, everyone. Thank you very much. On behalf of Elara Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.