Ladies and gentlemen, good day and welcome to Tube Investments Q4 FY 2023 earnings conference call hosted by IIFL Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anupam Gupta from IIFL Securities. Thank you. Over to you, sir. Thanks, Hima. Welcome everyone to the Tube Investments of India 4Q FY 2023 conference call. From the management we have Mr. Vellayan Subbiah, Executive Vice Chairman; Mr. M. A. M. Arunachalam, Executive Chairman at TII; Mr. Mukesh Ahuja, Managing Director; Mr. Srinivasan, Director and Head Metal Form Products; Mr. K.K. Paul, Managing Director at TI Clean Mobility; Mr. Murali, Head Engineering Business; and Mr. A. N. Meyyappan, the Chief Financial Officer. I'll hand over to Mr. Vellayan for the opening remarks, post which we can have the Q&A. Over to you, sir. Thanks, Anupam. The board of directors met yesterday and approved the financial results for the quarter. The board has declared an interim dividend of INR 2 per share in February, and the same was paid to shareholders in March. There's a final dividend of INR 1.50 per share for the financial year 2020-2023. Good morning, everyone. We'll just take you through the standalone results for the quarter, and then I'll give you a quick consolidated summary at the end. The standalone revenue in Q4 was at INR 1,663 crores compared with INR 1,735 crores for the same period last year. For the year, it was at INR 7,236 crores compared to INR 6,359 crores for the same period last year. PBT for the quarter was INR 331 crores against INR 173 crores in the same period last year. PBT for the year is INR 928 crores compared with INR 628 crores for the same period last year. ROIC is at 54.5% for the year ended March 31, 2023 compared with 46.8% for the previous year. Free cash flow for the quarter was at INR 235 crores, and cumulative free cash flow for the year was at INR 608 crores, which is 91% of PAT. A quick summary, the engineering business revenue for the quarter was INR 1,444 crores compared with INR 1,030 crores in the corresponding quarter, and PBIT was INR 132 crores as against INR 103 crores. Revenue for the full year was INR 4,562, compared to INR 3,868. PBIT was INR 549 for the full year as against INR 376, which is a growth of 46%. TI Metal Forming had a revenue of INR 347 as against INR 336, and PBIT was INR 45 as against INR 39. Revenue for the full year was INR 1,424 compared with INR 1,240 in the same period last year. PBIT was INR 174 as against INR 136, which is a growth of 28%. For our Mobility, which is our cycles business, bicycle business, revenue was at INR 155 crores compared with INR 249, so that was our biggest drop. And our loss was INR 5 crores as against a profit of INR 13 crores. Our revenue for the full year was at INR 800 crores compared with INR 963 crores in the previous year. PBIP for the full year was INR 17 as against INR 55. Revenue for the quarter for other businesses was INR 191 compared to INR 194. PBIP for the quarter was INR 11 crores as against INR 4 crores in the corresponding quarter the previous year. Revenue full year for other businesses, INR 768 compared to INR 562, PBIP was INR 48 compared to INR 36. At a console level, consolidated revenue for the quarter was INR 3,778 as against INR 3,393. Consolidated profit was INR 403 as against INR 291. For the year, consolidated revenue was INR 14,965 as against INR 12,447. PBIP... PBT was at INR 1,593 as against INR 1,111. I think we've talked about the performance of our subsidiaries. You know, CG Power and Shanthi Gears being the two main subsidiaries that we've took. Commenting on the financial results, Mr. M. A. M. Arunachalam said engineering and Metal Form product businesses continued their good performance in the Q4 as well. The bicycle industry continues to suffer from contracting in demand. Our bicycle business works towards cost reduction and improving overall efficiency through 5S. Overall, the company has delivered excellent results in profits and profitability. Our subsidiaries, CG Power and Shanthi Gears, have registered a strong performance and delivered strong results across all segments. Let me stop with that. Anupam, I'll be happy to turn it over to the audience for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star 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. Our first question is from the line of Anika Mittal from Nvest Research. Please go ahead. Good evening, sir. My first question is, during the quarter for financial year 2023, I noticed a profit of INR 166 crores from the discontinued operation mentioned in the control financial statement. In the notes, it is stated that CG Power has received a liquidation order for one of its subsidiaries. Could you please provide more details on the reason behind the liquidation and which item this profit belongs to? I think the question is on the liquidation of the of CG Power subsidiaries. Yes, sir. I think that is specifically talking to Sedis or is it talking about the Belgian subsidiary? In the control state, we quickly notice that there's a profit of INR 166 crores for discontinued operations. I'll answer here. What happened was, with Middle East, yeah, we have a subsidiary in Middle East, CG Middle East FZE, where they had certain liabilities on their balance sheet. Since they were there in the balance sheet, once the subsidiary was liquidated, these amounts got written back into the balance sheet of CG Power and thereby got consolidated with the end. That's the reason for this profit. That's the profit of deconsolidation. Yeah. Means profit of deconsolidation. Yes. Yes. Yes. sir, is there any... Sorry. Sorry. Yeah, go ahead. Sir, what is the reason behind this deconsolidation? What? What is the reason behind this liquidation? No. As you know, and, ma'am, as you know, this CG Power has been kind of liquidating or kind of closing down all of its non-operational assets. Okay. The CG Power had a lot of non-operational subsidiaries overseas, which they've been closing down. Okay. Okay, sir. Thanks. My second question is, company with TICMPL and other multiple investors has planned to invest INR 6,000 crores in subsidiary TICMPL. What is the rationale behind this investment and how company going to utilize this amount? Okay. Is your question that multiples is invested in TICMPL? Yeah. Is that your question, ma'am? Yeah, yeah. In the TICMPL, that company. TICMPL is a company that is, it is a subsidiary that's basically making electric vehicles. Yeah. The money has been raised to basically develop and manufacture electric vehicles that we will sell. That is the reason why we raised the money. How company going to utilize this amount? Means for up to when it will utilize and in what way it will utilize? How will we utilize the amount? It'll go towards either product development or manufacturing, ma'am, of the electric vehicles. Okay. Sir, what is the strategy behind acquisition of Lotus Surgicals Private Limited? As we've spoken in TI-2, we are looking at kind of new lines of business to basically diversify into. We've talked, you know, in several previous calls as well, saying that the medical products and consumables business will be a space that we are getting into. Yeah. This is the completion of the acquisition in that area. Sir, what is the growth outlook for the next three years? Sorry to interrupt, Miss Anika Mittal. May we request that you return to the question queue. Okay. for follow-up questions, as there are several participants waiting their turn. Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all participants, you may press star and one to ask a question. Our next question is from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead. Hi, sir. A couple of questions from my side. One is on the existing business, both engineering and Metal Forming, we have seen flattish kind of revenue performance on Y-o-Y basis. Is there any negative impact of commodity cost deflation over here and underlying business growth is strong? Can you highlight any other factors which have led to this weaker revenue growth? You are right, Jinesh, right. Because of the raw material prices coming down in Q2 and Q3, which we have to pass on to our customers, whatever contract we have with our customers, because of that, it is coming down. Otherwise, on absolute volume basis, we are both engineering as well as Metal Forming are growing. Irrespective of, two-wheeler, there is a muted demand, irrespective of that, we are able to grow. Wouldn't it be still growing on volume basis on double-digit basis or an indication you can give of the actual growth, underlying growth? It will not be double digit, but it is a higher single digit, growth will be certainly there. Okay. Okay, got it. Second question pertains to the Mobility business. It seems we further had losses on the electric three-wheeler business sitting in EBIT of Mobility. Can you quantify the loss for the quarter and for the full year, for e-three-wheeler business? Yeah. I think maybe we should also change our nomenclature. Mobility business that we talk about in the income statement that I just talked about is the bicycle business. Okay. TIC M or TI Clean Mobility is a subsidiary, and that is the electric vehicle business. Again, Jinesh, and maybe then you can just clarify, are you which business are you asking about? I was looking at the standalone, currently the Mobility business in the standalone had losses. I believe until last quarter, the e-3-wheeler losses were sitting in the standalone side. Now the shift has happened of e-3-wheeler to subsidiary. No, the three-wheeler even last quarter, as soon as the subsidiary was created, which was what? March. March 22. March 2022. From March 2022 onwards, three-wheeler has always been in the subsidiary. What you see in Mobility is only the bicycle business. Maybe we'll also change the language in what we call them. We'll change it. Mobility and the loss you're seeing is for the bicycle business, Jinesh. That's a one-time loss. Maybe in the Q4 we have booked it because of some internal thing, which is a one-time. Okay. What will be that quantum of content, impact? Whatever loss we are able to see that maybe you can say that. It will be flat without this. Okay. Okay. Got it. Lastly, can you clarify on that TI Clean Mobility, what kind of dilution will this country's result in? The... This question has been asked. We've not disclosed. Part of the reason is that it will be a variable amount, right? You know, so we've not disclosed it from that perspective, because it does depend on the actual performance of the business itself. Okay. Any range of stake which you get diluted based on this? Jinesh, I think we'd rather not give a range. Okay. Okay, no worries. I'll come back to you for other questions. Thanks. Thank you. Thank you. Our next question is from the line of Nishit Jalan from Axis Capital. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. My questions are on the launches on the electric vehicle side. I just wanted to understand when are we planning to start the launches on the 3-wheeler tractors and truck, any updated timelines that you can share? What has led to the delays compared to your previous expectations? I think two things. The launch of the three-wheeler we have started now. You know, we've launched in the southern states of Karnataka, Kerala and other. Currently also the launch is going on. Product is being received very well. And we are in the process of ramping up the production for the three-wheeler actually. That's how the three-wheeler is. In response to the question of your delays, the question of your delays was because of the change in the standard dictated by the government in terms of the air standards for homologation. We had to re-homologate the product once more, you know, for the battery, the motor, the controller, so on and so forth. There were delays associated with that, which was, you know, statutory in nature, and we had to comply with that. Other than that, from our trial, et cetera, whatever improvements we had to do, we did it alone. Now we are launching them. That as far as three-wheeler is concerned. As far as the tractor vehicle is concerned, we are in the process of developing the product. The first lot of tooled up samples for trial will be done in June, July period. Post that, from those trials, whatever rectifications we have to do, we will do. Then have the homologation done and go to market somewhere to the end of the year. That's how the tractor scenario is looking like. As far as heavy-duty truck is concerned, we are in the process of now selling the truck. We are manufacturing the truck in our new manufacturing facility at Manesar. We've lined up customers, and we are in the process of selling quantum. We are carefully selecting the customer and then doing some trials and then, you know, getting into sales. The sales will happen this month, albeit slowly. You know, we as a customer and we get confident, we'll be scaling up the volumes in the subsequent months. The manufacturing facility to scale up these volumes is in place. We are getting the market organized in terms of this to be able to do that along with the financing, et cetera, so on and so forth. Okay. I hope I answered your question. Yes. Just 2 follow-ups. From your comments, I assume that, the truck product, heavy truck product has already been homologated and the process of selling and manufacturing has started now. Is that correct understanding? That's correct. We just got in the AIS 156 part two homologation done. Okay. Now, you know, we have the certificate with us, and we are waiting for that, although we are ready in manufacturing. Once we get the official certificate, which will be in a day or 2, then we will be in a position to increase the pace. Got it. That's good to hear, sir. Secondly, on the three-wheeler EV side, can you clarify if we will be getting same incentives for these products? Are we meeting all the requirements of FAME? We are meeting all the requirements of FAME. Till the 10th of June, subsidy is there. You know, you will be receiving the FAME subsidy. Actually, our Mobility etc. is actually totally geared 100%, you know. From the invoice, it is actually uploaded onto their portal, and from there it automatically goes just for the FAME subsidy. That's all in place. Till the 10th of June, subsidy is there for the three-wheeler. We continue to see that. Got it. Just one last final question is on the overall Capex. Just wanted to understand what is the total Capex for FY 2024 for the standalone business as well as for the EV subsidiaries or maybe any medical devices that may require any Capex that you have planned for this year? The total Capex is INR 800 crores. That will include kind of our existing business. Existing business as well as new initiatives. New initiatives. You have a separate Capex for TICMPL, which will be in the range of about INR 300 crores - INR 400 crores. INR 300 crores - INR 400 crore s. Yeah. INR 800 crore in the standalone and INR 300 crore-INR 400 crore in TICMPL. The standalone INR 800 will also include the investment that you will make into the subsidiaries as well, right? Yes. That's right. Things like medical and, Everything, yeah. Okay. Okay, thank you so much. Thank you. Thank you. Our next question is from the line of Saurabh Ghadge from ICICI Prudential AMC. Please go ahead. Good morning, sir. Thanks for the opportunity. Good morning. My first question is on the engineering business. Last quarter, we had talked about some muted demand from exports. From January 2023 onwards, how has been the trend in terms of exports there? As we discussed last time, I mean, Q4 was little bit slower. It is almost flattish. We are able to see a good uptick in demand from Q1. You will see numbers improving going forward in the Q1. Okay. In term, so my second question is on the Metal Forming business. Any traction we have started seeing in railways now? KRS, you take this. Yeah, Srinivasan here. Yeah, railways and they are in the process of making production scheduling plans, the coach factories. End of this quarter, we are likely to see the tenders getting released. We hope the demand to go up in the Q2. We'll be getting orders in the Q2. That is the, you know, outlook so far. In which subsegments you are mainly focusing on within railways? Correct. Yeah, we'll be focusing on the coach segment, passenger, you know, coaches. Okay. Anything on freight side? Do we plan to bring in any new products, or it would be only on the coaches side only? Majorly it will be on the coach side. On the freight side already we have our product lines. Railways are in the process of finalizing their, you know, dedicated freight corridor plans. Once those plans are out, then, you know, we'll be ready to take on that demand. Okay. Sir, my last question is about TI-2 and TI-3. Any further opportunities you have identified in there currently? No, I mean, there's nothing specific beyond what we've already talked about at this stage. We said, we continue the process of looking at opportunities, but there's nothing specific that I can comment on. In addition to that, as of now, we are in acquisition mode for medical subsidy loaders that we discussed, it is executed. CDMO also is going to, let's say, start the process in this quarter. Meantime, we are identifying new opportunities. Okay, thanks, sir. That's all. Thank you. Before we take the next question, a reminder to all participants that you may press star and one to ask a question. Our next question is from the line of Kaushik Mohan from Ashika Stock Broking. Please go ahead. Thanks for the opportunity and congratulations for the great set of numbers, sir. I just wanted to understand while reading your recent IPO DRHP to understand that long-term borrowing for an aggregate sum of exceeding INR 300 crores. Can you understand, why this borrowing is coming and what are these being used for? It is... Yeah, go ahead. It's an enabling resolution which we have got. We have not borrowed anything at this point in time. Our long-term debt is 0 at this point in time. That's the enabling resolution which we get every year. Sir. Got it. Got it, sir. Another clarity I need on, sir, on a normalized basis, this time your cash conversion cycle is being very strong. Can we assume this trend to be in the future? Yes, we focus on the cash generation, and we continue to deliver on that. That is great. Thanks for that. Thank you. Thank you. Our next question is from the line of Abhishek Poddar from HDFC Mutual Fund. Please go ahead. Hi, Abhishek. Mr. Abhishek, your line has been unmuted. You can go ahead with your question. Hi, good morning. Sorry, my line was muted. Hi, sir. Regarding this, TICMPL, I wanted to understand, how should we think about the economic interest that the company will retain in this, you know, EV Mobility business? Some understanding that what is today and how it will be shaping up, you know, in future. I think you all are ending up with the same question. Let us then think through how to communicate this, you know, so that you guys get the answer that you are looking for. We understand kind of what you're trying to or why you want it. Let us think about how we can kind of communicate it in a fashion that'll be useful. Understood, sir. Sir, also about this business, you know, currently it's a EBIT loss, any internal targets, you know, that you want to share that when it will be breaking even at, let's say, EBITDA level, at PBT level, you know, timelines, or some understanding in how many years it could take? I think it's very difficult to say at this stage. I mean, our current plans basically say that it'll take a minimum of two years, right? I think that's the best assumption we can take. All right. Should we assume that three-wheelers will be the first one to break even and followed by heavy duty and then, the tractors? I would say, you can't determine that, but it'll be something. It'll either be heavy duty or three-wheeler. Yeah. understood, sir. Okay. Thank you, sir. All the best. Thank you. Thank you. Our next question is from the line of Sundar S from Avendus. Please go ahead. Good morning, sir. Thanks for the opportunity. Sir, 2 questions. The first one- The line from Mr. Sundar has dropped. May I request the management, we move to the next question. Our next question is from the line of Mr. Manoj Bahety. Please go ahead. Hi, good morning, and thanks for giving opportunity to ask a question. This is more strategic in nature, especially on the strategy on the seeding new platform that is TI-2. What I wanted to understand was, are there any earmark figures from cash flow which you think that this is the amount of, or percentage-wise we are going to deploy over the next three, four, five years into this particular strategy? What are the kind of timelines you're looking at probably stopping this or probably seeing how your investments plan out and then taking the next level of call? That's a question which I have. If you look at it this year, you know, about 50% of the cash flow will go towards this, and 50% will go towards this thing, TI-1 cash flow expansion opportunity. I think that number can vary, you know, between kind of, you know. First off, the first thing is whatever TI-1 needs, right, they will get, right? That kind of helps us determine how much we can put towards TI-2. There are 2 things we will look at, right? Which is like, we don't. At least from TII's perspective, we don't see, I mean, we've always articulated this, right, saying that the maximum we will go up to is 2 years negative free cash flow. We continue to kind of reiterate that same comment. That's kind of core to our planning. This, this far we've been able to manage with pretty much no debt, but that is central to our planning as well. In terms of the product portfolio expansion or probably the lines of business which you are looking at, currently you have probably invested in, two, three single line of businesses. One is into Mobility, second is into, say, automotive industry. Are there any specific areas which you are specifically looking into, this particular strategy of seeding new businesses? Yes. See, it is basically, it's focused on. I think we've talked about this criterion a couple of times on previous calls, right? Which is, you know, to basically use, you know. Some of it is based on kind of where we see India's GDP growth coming from, you know, where India how India is gonna shift over the next, you know, 10 to 20 years. That is the first kind of, you know, gating factor. The second is we've talked about, you know, using India as the market to kind of learn the opportunity and then expanding, using that as a way to kind of start exporting to the rest of the world, but India being the first market for. There are several different filters, and we've talked about these filters in prior calls as well. None of those criteria are changing, I would say, from our perspective. We've continued to kind of use the same criteria and kind of, and the same approach to filter industries that we look at. Just last one, a small one. What is the kind of timeframe you are internally looking to give to a particular business in terms of its success or rather putting the plug on this business if it is not working for you? You have any sort of internal thought process on that maybe three year, four year you'll give to a business and then take a call? I think in between two and three years we have, like, what we would call a go, no-go check, right? That is basically seeing whether we continue or not, right? That doesn't necessarily mean that the business has to scale within that timeframe. It just means that, you know, the conditions with which we went in... Yeah. need to be maintained. We need to continue that we are convinced that business continues to be a good opportunity. That's basically how we're looking at it at this stage. Okay, thanks. That's all from my side. Thank you very much. Thank you. Our next question is from the line of Mr. Sundar S from Avendus Spark. Please go ahead. Good morning, sir. Am I audible? Yes, yes. Yes. Thank you. The first question is on the Standalone business. I just want to understand, have all the raw material impact been passed on or should we see some impact coming through for the next few quarters too? We have various contracts with the various customers. Maybe some part is already passed on and something will happen in the Q1 also. It is not that entirely is passed on. Perfect, sir. Thank you. The second one, Mr. Vellayan, can you throw some thoughts in terms of the venture into the CDMO because this is something that was not discussed earlier? What was the thought process there, and how should we look at this business from a three-year perspective? Basically we've been having discussions with Govind, who's basically kind of, you know, helped found the business with us, you know, I would say for over close to between 18 months now almost, I would say. The reason really is that we see CDMO as a huge growth opportunity for the country itself. As you know, globally, you know, a lot of it is being done in China and the large CDMO people in China, I would say are almost like 10 times the size of the largest player in India. With what's happening kind of geopolitically, a lot of that is beginning to shift now towards India and is, I would say, strongly in India's favor. Our belief is that, you know, over the next decade it is a good opportunity to kind of grow this business. Like I said, again, about the businesses. One second. Okay. We are really taking- One second. 25-30-year view. That is our thinking kind of going into this. Specifically towards our plans for the three years, Govind, do you want to jump in and kind of provide your perspective? Yeah. I think 3 years is a period that is too short on the manufacturing per se from the view of RE. Because we have to get the plant ready and file the product and get it inspected, and that is the timeframe by which I think all this would happen. I think we'll be able to promote the manufacturing business more with the customers, including emerging pharmas and innovative companies. By that time, I think the lab would have started delivering by year three is what I would say, over the three-year period. Right, sir. Thank you for that perspective. One last one on TICMPL. Should we assume that TI's investment into TICMPL would be limited to 7%-8% considered as a team? Yes, we've already said that. Okay. It wouldn't exceed beyond the 7%-8%. No. Perfect, sir. Last one is on the FAME subsidy, with several state governments indicating that they would want to pull out of the FAME subsidy. How do you look at this impacting the TICMPL business, specifically on three-wheeler side? In our other platforms, both on tractor and on heavy trucks, FAME is not there. Even on three-wheeler, we don't have any FAME in our business plan and assumptions beyond March 24th. You don't see that impacting the penetration of the category itself? Because I thought breakeven significantly widened once you remove the FAME subsidy. See, we believe that all of these categories, you know, have the ability to kind of break even, over time, right? Kind of would it accelerate? Absolutely. Would we support it if FAME was extended? Absolutely. You know, does it mean that we will not kind of, have, I mean, pursue the business if FAME was not there? No, we will continue to pursue the business. Fair enough, sir. One last one. Can you throw some light on the capacities that you currently have on the EV side, on three-wheeler, HCV, and tractor? Where are we looking to ramp it up with the cash flow that's coming? three-wheeler. Okay, go ahead, Paul. On three-wheeler, we see that we have a capacity of 90,000 three-wheeler annually. On the tractor side, the capacity is about 45,000 in the FAME One, and so is for the heavy-duty trucks. We covered up, in terms of capacity for a year and a half. Of course, that we'll see how things pan out. Heavy duty will not be. Yeah. Heavy duty won't be 25,000. I think we said we'll be 2,500. Heavy duty will be 2,500. 2,500, but on 3-shift basis. We just talked about 2 shifts. Yeah. But not 2,500. 2,500 on the heavy duty side, 2,500 or 3,000. Perfect, sir. Thanks for the clarification, and all the best. Thank you. Thank you. Our next question is from the line of Abhishek Ghosh from DSP. Please go ahead. Yeah, hi, sir. Thank you so much for the opportunity. A few questions. Sir, you know, on the standalone part of the business, you have a substantial contribution from a two-wheeler, which is kind of coming in. Any outlook on that industry? Any thoughts in terms of recovery on that and sustenance of the volume growth? Any thoughts on that, sir? Abhishek, maybe let's say like we know that we can't control the industry. What we can do is internal. When the industry is not growing, how can we focus on the other, let's say industry like CV is doing pretty well, PV is doing pretty well. There's a good of exports opportunities available, and government is spending huge money on the construction side of the story. How we can leverage that? We are working on that. At the same time, we have sufficient capacity. If even two-wheeler does well, we'll be able to participate that. There we are working on some new product development, because the introduction of EV and the light weighting, it is going to have some opportunities, so we are going to participate that also. It is fair to assume, sir, the standalone Capex that you've spoken about, 50% of that INR 800 crores, majority of that, you know, will kind of go into these segments which are seeing growth areas and not so much into two-wheelers. Is that the way to look at it? As of now, you can. Yeah. There's no more investment in the, in the two-wheeler side. We've got enough capacity. Okay, great. That's helpful. Sir, the other thing is, you know, to one of the OEMs whom you already provide some of the products, they have spoken about a large investment in Chennai. You think that can be beneficiary to you? I think last week they have announced that. You think that can be beneficial to you over the next 3-5 years? Any, any thoughts on that? Hopefully, yes. Like you know that maybe, TI participates all the OEMs, maybe we are fairly present. Any investments planned in the new, whether it's in south or west, we are surely going to participate that. Okay, great. Sir, just one question to Vellayan, sir in terms of, if you look at the, you know, new investments in last, you know, 12-18 months, you've got into medical devices, you also have spoken about electronics. Now CDMO, EV also, you know, it's kind of ramping up. Obviously, you've also spoken about many more areas. For now, is it fair to assume that over the next 12 months you would want to consolidate and bring all these incubating business to certain level and then need to look at investments into new or how should we look at it? Just your thoughts there. Yeah, I mean, obviously, kind of these businesses now are going into execution mode, and so that is definitely the intent, right? Like we said, with some of these, you can't time all of these perfectly. What we will do is continue to manage our cash flow with the criteria that we've specified to you today, right? You are right in the sense that with a lot of these businesses now, our focus is moving more to execution mode and being able to kind of get, you know, get performance on these things. I was more trying to understand on the, on your bandwidth. Cash flow, we have seen the way you have executed, but on your bandwidth, just from that perspective. That's the only thing we're trying to understand. Yeah. No, I think your statement is fair. You know, like I said, you know, the exploration side is something that will always be an ongoing exercise, right? Because it is part of kind of, you know, identifying things for the long term. A majority of my time is gonna be spent kind of now on kind of ensuring that the execution of the existing business happens more successfully. Great. Thank you so much. Wish you all the best. Thank you. Thank you. Our next question is from the line of Prithvi Raj from Unifi Capital. Please go ahead. Sir, I just have one question. Right now you are getting into many new businesses. Maybe of five years down the line, how do we see these revenues contributing to the overall group business? I mean, any rough sense on some percentage number? See, it's a bit tough to predict. I think we've always guided that TI-1. Our current belief is that TI-1 will grow at between 12% and 15% a year, right? Somewhere in that range. You know, TI-3 has always been, you know, it's been a bit, it's very difficult to predict, you know, what the revenue contribution would be, right? As you can see console, you know, now our other businesses are as large as TII or maybe even larger. It's a bit difficult because of the lumpy nature. You know, obviously, our broad view is that, you know, each of these businesses has the potential to be at least as large as TI is today, which is why we're getting into them, right? Whether they reach that potential within 5 years or, you know, 8 years, we need to see. That is the belief with which we're going into it, right, with each of these new businesses. Okay. 1 question on TI Clean Mobility. Is it possible for you to quantify the losses in this quarter and in this financial year? I mean, TI Clean. Losses for the quarter were about INR 28 crores. For the year? No, we don't, we can't predict for the year. For the previous- For the previous year. 2023 full year. INR 102 crores. Okay. Thank you. Thank you. Our next question is from the line of Dhruv Bhatia from Bank of India Investment Managers. Please go ahead. Hi. Good morning, sir. my, actually, my question is on Shanthi Gears. Though I understand that you don't like to answer on them, let me try my luck. I just, you know, generally on a quarterly basis, you do provide the order inflow and order book for Shanthi Gears. this time you haven't provided it. If it's possible to share that data. Ladies and gentlemen, please stay connected. The management line has dropped. We'll reconnect them quickly. The line for the management has reconnected. Mr. Dhruv Bhatia, you can go ahead with your question. Could you please repeat your question? Sure. Sir, actually my question was on Shanthi Gears. As I was saying that, you know, I do understand you don't like to answer questions on Shanthi Gears on this call, let me try my luck. Actually, you know, generally you provide the quarterly order inflow and order book for Shanthi Gears, this time around you haven't provided. Is it possible to share the order inflow and order book for Shanthi Gears? I would say again, yeah, because again, we don't wanna start this off, but again, the same kind of trend starts up. I would just suggest you can, you can write to kind of relevant TI investor relations if you want, and, you know, with your specific questions. If it's shareable data, then we can see. We have to disclose it in public domain to everybody, so we'll think about how to do that. Sure. Thank you so much. Thank you. Thank you. Our next question is on the line of Hardeep Doshi from Whitewave Partners. Please go ahead. Thank you for taking my question. My question is actually related to CDMO of business. You know, typically in like most of these diversifications or acquisitions that we've done, you know, it's been more towards, you know, auto or auto related or, you know, that there's actually hard manufacturing that's done. I just wanna understand from the CDMO perspective, what is the cube or TI's value addition out there? See, I mean, again, when you think from a multiple... I always think of it as kind of, you know, you take so many guys who have grown, right? I mean, like, you know, kind of one of our models is Danaher, right? And when I look at Danaher, what they really bring to the table is, you know, the approach to the business, what they call DBS, right? Or Danaher Business System. You know, we are trying to kind of define the same for ourselves in what we call TI Way, right? Actually what makes Danaher, I would kind of argue, as competitive as it is the fact that it can bring DBS to every business that it goes into, right? Similarly, the way we look at it in terms of new businesses, we see it as an opportunity to bring that kind of thinking to every business we go into. That specifically then kind of has implications for sales and marketing, for operations and for R&D. You know, our approach to sales and marketing and how we can help. Having access to kind of, you know, what I would a larger and more scalable global organization, obviously kind of helps you think very differently from how a startup would approach it, right? I think that that has inherent advantages. Those two things, right? Kind of, you know, the access to a global organization and, you know, using TI Way just like Danaher uses DBS, I think is the core to kind of how, what we can bring to it. You know, just continuing on that, you know, TI Way, have you like kind of, I mean, is there a detailed kind of guidelines like, you know, action plan or something that you like, you know, like formulated, and is it possible for us to like kind of access that or see that? No. It is something we use internally. It is kind of continuing to evolve, you know, as we continue to work with Shingijutsu and other lean consultants in that process. It's not something that we share in public domain, like Danaher shares DBS. Okay. Okay. Great. Thank you so much. Yeah, thank you. Thank you. A reminder to all participants, you may press star and one to ask a question. Our next question is from the line of Vimal Gohil from Alchemy Capital Management. Please go ahead. Yes, sir. Thank you for the opportunity. My questions on TI Clean Mobility have been answered. I just had a question on the standalone piece regarding the others segment. My belief is that we include our industry chain export business in this. The Y-o-Y slight decline that we see in these businesses, would largely be explained by that or is there any other segment which might have contributed to that? Thanks. Yeah. You rightly mentioned, actually, it's not just industrial chain exports. The entire industrial chain is part of the other segment. Their items, their assessment in terms of, decline in the exports is okay. I mean, it's correct. Could you provide some more detail around the other, you know, products that are included in the, in the other segment? I guess. What was the performance there? Some of the other businesses which were incubated in the other, which has now been consolidated, which is our TMT and certain other businesses, along with the industrial chain. Right. How are these businesses doing, excluding the industrial chain, the TMT, the others, other components? I guess, it's a commodity business at the moment, but we are kind of, we've reached a stage where we know how the business is performing, so we are still evaluating. As Mr. Vellayan said, we're looking at a three to five-year timeframe that we desire in terms of how we want to go ahead and do this business, sir. Yeah. We are in that stage where we'll probably. We have a dedicated business team which is handling it, so we will take an appropriate call on that. Yeah. As of now, there's no systemic concerns or whatever. The export business is expected to improve. When you said that the overall exports, that would include the industrial chain exports as well from. Yeah, yeah. I mean, Mukesh already alluded on that. I think he mentioned that we can see some uptick in Q1 and onwards. Understood, sir. Thank you so much, and all the very best. Thank you. Thank you. Thank you. Our next question is from the line of Mr. Anupam Gupta from IIFL Securities Limited. Please go ahead. Just continuing on the exports piece, sir. Firstly, what was the total export share for the standalone business in FY 23? It's about 17%. Okay. If you were to split it between engineering and industrial chains, what was the share, if you are sharing that? We generally report together, Anupam, as of now. Okay. At a TI level export numbers, and we continue to do that. Sure. Would you say that this, target to maybe double this in three years in terms of share, is that target still on or do you see any changes to that? Surely we want to double it, but maybe three years will be a little tougher, but we are working on that. Okay. Okay. Understand. Sir, the second question is you said the Capex for standalone Capex and investment for standalone is INR 800 crore for FY 2024. Is it right to assume that it includes the INR 285 crore for CDMO and INR 233 crore for Lotus in that, or is it separate? You can, yes, it is inclusive of that. Okay. The balance, approximately INR 250 crores which you'll do apart from these two is targeted towards what, sir, in terms of the standalone business? It is existing businesses. Maybe let's say what we do with engineering, Metal Forming will go towards those Capexes. Okay. Okay. Understand. The INR 300 crore-INR 400 crore Capex which you said for TI Clean Mobility, what is that directed towards any specific thing which you can highlight there? As Good. As Mr. Vellayan already mentioned, it is going towards the product development and building manufacturing, plants. It is going to go towards that. Okay. Okay. Understand. Just one last question, sir. Any update on the optic business which you had trials on for? Anupam, it is still going on. We have made a progress internally in terms of quality and all these things. In acquisition of customer, but we're still working, is in progress, and we'll share with you, once we are able to crack that. Okay, fine. That's all from my side, sir. Thank you. Thank you. Our next question is from the line of Rishit Jhaveri from Pi Square Investments. Please go ahead. Okay. Congratulations, sir, for the good set of numbers. I wanted to know your growth outlook for FY 2024 for the standalone segments. Generally, you know, maybe let's say we don't share forward-looking numbers, but we are confident to grow better than the industry growth. That's how maybe I can give you indication as well. Okay. Also to mention that the bicycle business had seen a demand pullout from the market. What's your take that, are you seeing any demand uptick in the next two quarters? Yes. As of now, I will say there is enough business, maybe demand is contracting. We are internally focused how to cut down cost and do it. Work whatever we are doing for existing business like export development, that work we have started to build capabilities, and we are hopeful to revive it. Okay, sir. Thank you so much, and all the best. Thank you. Thank you. Thank you. Our next question is from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead. Hi, sir. A couple of clarifications. There is other income which has gone up quite substantially in this quarter. Is there any one-off or this includes, dividends from some of the subsidiaries? Yeah. We have received dividend from CG Power. INR 133 crores is included in that. Okay. Okay. Got it. Secondly, when we look at the optic lens business, we're clearly focused on glass lenses. With the evolution of mobile manufacturing scenario in India, are we also looking at plastic lenses, given that opportunity also will be very large? as this. Yeah. Not at this stage, right? Okay. First, let's see if we can stabilize this business, then we can look it up. Got it. Got it. Lastly, with respect to the INR 1,200 crore fundraise through the private equity on the EV side, our investment requirement in the foreseeable future would be about INR 750 crore in the three businesses put together, right? No, no. Just to clarify, you're talking about TI's investment into it. Yeah. TI's investment into it, the incremental investment amount is only about INR 120 crores. sorry, I meant, The rest of the INR 750 crores has already gone into the business. Yeah. I'm sorry. What I meant was there are, the investment requirement of those businesses. In the past, you had indicated 250 crore per business on the EV side. The Capex requirement or the investment requirement of each of those businesses. In that context, I was just trying to understand, is there any change in plan? Are we accelerating our Capex in those businesses given the opportunity which is there, or 750 crore number for the three business still holds true? What we'd articulated was when we talked about the three-wheeler business, we said that we've got that business up and running for, around INR 300 crores, right? Right. Now you know, as you know, with both the truck and the tractor, we acquired companies, so there was an outlays towards that acquisition. The second outlays was manufacturing and development, right? Okay. We include manufacturing, kind of the full stack development team and the acquisition cost. Obviously, that combined is going to be more than INR 300 crores for each of the business to get them to market. Got it. That's clear. Thanks for all the help. Thank you. Thank you. Our next question is from the line of Mr. Anupam Gupta from IIFL Securities Limited. Please go ahead. Yeah. Thanks for the opportunity, sir. Just 1 last question I had. Margins obviously in this quarter benefited from the raw material pass-through which you did. Incrementally, let's say if you assume raw material largely to be a non, a non-event, what sort of margin expansion do you think can happen over the next three years in the core business? we'll continue to maintain the current margin, maybe let's say because we are closer to what we have given the guidance in the past. Yes. That's the answer to your question. Okay. Fine. Fine. I think we don't have any further questions. We can close the call. Vellayan, if you have any closing remarks, we can take that and then we can close the call. no, Anupam. I think that's good. you know, like I said, you know, the important thing for us is, you know, TI-1 continues to perform strongly, and so we think that that performance will continue in this financial year. Like you said, kind of, you know, it is gonna get important for us to now, especially on the... I mean, I think the first one out of the gates will be Clean Mobility. To start seeing some growth in that this financial year, which we believe we will start seeing. You know, that's our general kind of outlook. We, we continue to be quite optimistic about, you know, things going into this year. We look forward to catching up on the next call. Sure. Thanks a lot. Thanks a lot for the management for the time and all the participants as well who joined the call. Thank you. Thank you. Thank you. Thank you. On behalf of IIFL Securities Limited, that concludes this conference. Thank you for joining us. You may now disconnect our lines.