Ladies and gentlemen, good day. Welcome to 360 ONE Capital Market Private Limited Q1 FY 2027 earnings conference call, hosted by ZF Commercial Vehicle. 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 zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Annamalai Jayaraj from ZF Commercial Vehicle Control Systems India Limited. Thank you. Over to you, sir. Okay. I am from 360 ONE. Anyhow, I'll introduce the management. Good afternoon. Thank you for joining us today. Welcome to ZF Commercial Vehicle Control Systems India Limited's call to brief you on their Q1 FY 2026/2027 earnings. Today, the first quarter earnings for FY 2026/2027 will be presented by the management team of ZF Commercial Vehicle Control Systems India Limited. Your hosts today from ZF Commercial Vehicle Control Systems India Limited are Mr. Paramjit Singh Chadha, Managing Director, Mr. Shankar Venkatachalam, Head of OE Sales, Mrs. Swathi Dutta, General Manager Finance, and Ms. C.V. Kavviya, Company Secretary. I'll now hand over to Mr. Paramjit Singh Chadha, who will provide you with further insight into the results. Over to you, sir. Thank you, Annamalai. Good afternoon to all of you. I warmly welcome you all to ZF Commercial Vehicle Control Systems India Limited first quarter results for financial year 2026/2027. Certain forward-looking statements that we will make today are based on management's good faith and expectations concerning future developments. As you know, the actual results may differ materially from these expectations as a result of many factors. A transcript and recorded audio of this call will be available on the website, www.zf.com, under the ZF CV India Investor Relations section. ZF Commercial Vehicle Control Systems India Limited's results for the quarter ending 30th June 2026 were published on July 24, 2026. They are available on the website www.zf.com under the ZF CV India Investor Relations section. We hope that you have already gone through this. I am happy to talk to you today as we give you an update about the business performance. First, we will discuss about industry and economic updates. I will begin with a brief overview of the macroeconomic and industry environment relevant to our business. The Indian economy continued to demonstrate resilience and strong growth momentum, with GDP expanding by 7.8% in Q4 FY 2025/2026, taking full year growth to 7.7%. The growth was supported by robust services sector performance, sustained investment activity, and improving consumption trends. Industrial activity also remained healthy, with output growing by 5.1% in May, following 4.9% growth in April, driven by strong manufacturing performance and continued expansion in the power and utilities sector. While mining activity moderated during the period, overall industrial growth remained broad-based and positive. Inflation increased to 4.4% in June, primarily due to higher food and energy prices. At the same time, moderating global energy prices continued to provide support to India's growth and inflation outlook, although geopolitical developments and evolving monsoon conditions remain areas to watch. From an industry perspective, the outlook remains encouraging. Strong domestic demand, continued investments in infrastructure and construction, growth in logistics and transportation activity, and rising replacement demand from aging fleets are expected to support commercial vehicle demand in the coming quarters. This is sourced from RBI Monetary Report. Second point, we will talk about Indian commercial vehicle industry. India's strong economic momentum was reflected in the commercial vehicle industry, with commercial vehicles more than six ton production growing by 8.4% in Q1 FY 2026/2027. Supported by healthy freight activity, robust infrastructure-led demand, and continued strength in core sectors. The industry outlook remains positive, underpinned by structural growth drivers such as continued expansion of logistics and e-commerce sectors. Sustained infrastructure investments and increased adoption of advanced and electric mobility solutions. Government initiatives focused on transportation modernization and public mobility are also expected to support long-term industry growth. On a segment-wide basis, the mix of buses, medium-duty trucks, and heavy-duty trucks remained broadly stable during the quarter. EV bus sales reached 1,417 numbers, reflecting the continued momentum in public transport electrification supported by ongoing deployment and healthy order pipeline. The trailer segment, however, witnessed a decline during the quarter, primarily due to slower mining activity, monsoon-related disruptions, and higher input costs, which weighed on market demand. Source: RBI Monetary Report and FADA report. Next, we will discuss about OE sales. During Q1 FY 2026/2027, our sales in the commercial vehicle more than six ton segment grew by 8.6%, marginally ahead of industry's 8.4% growth, reflecting our ability to capitalize on market opportunity and execute effectively in a dynamic operating environment. Growth during the quarter was partially impacted by certain headwinds, including a 9% decline in trailer market demand and a widespread shortage of blue-collar manpower across India during April and May, which affected production across the industry. Despite these headwinds, we are at par with the market, supported by improved realizations from new product introductions such as exhaust brake valve, ECAS variants, along with increased market penetration of our e-compressor solutions. Looking ahead, the industry outlook remains positive, supported by resilient demand fundamentals. While geopolitical developments, inflationary pressures, and commodity price volatility remain factors to monitor, strong freight movement, infrastructure activity, and replacement demand continue to provide a favorable backdrop for growth. In this environment, we remain focused on executing our strategic priorities and strengthening our market position. We continue to expand our presence in electronic stability control, ESC solutions, ahead of upcoming truck safety regulations. Having secured business nominations from three major OEMs and progressing discussions with other key customers, we are well-positioned to reinforce our leadership in advanced braking technology. The Vehicle Scrappage Policy is expected to support replacement demand by accelerating the transition to safer, more fuel-efficient, and technologically advanced commercial vehicles. In parallel, we are accelerating the introduction of new technologies, including upgraded compressor platforms, clutch servo with wheel sensors, ECAS, EVAs, and e-compressors for electric vehicle applications. We are also increasing the market penetration of our EV-focused solutions, particularly e-compressors and EVA systems, across independent bus manufacturers. Over the long term, we remain confident in growth prospects of commercial vehicle industry, supported by an evolving regulatory landscape, an expanding replacement cycle, and increasing adoption of electric and advanced vehicle technology. Talking about aftermarket. The aftermarket business delivered a strong performance in Q1 FY 2026/2027, with sale of INR 158.4 crore, representing a 15.6% year-on-year growth. We also achieved our highest ever monthly aftermarket sale in the month of June 2026, with revenue of INR 63.06 crore, underscoring the strength of our aftermarket franchise and customer reach. This performance was driven by improved fleet utilization, heavy replacement demand, and an increasing focus on preventive maintenance by fleet operators. Growth during the quarter was further supported by our strategic focus on aftermarket segment, complemented by enhancing manufacturing capabilities that improved product availability and supply reliability. We continue to strengthen our market position through the launch of new products, including disc brake rotors, TRW products, and clutch master cylinder. These initiatives under our SPARK, Spare Parts Automatic Reforms Kickoff program, contributed meaningfully to revenue growth and market share expansion. Looking ahead, continued investment in infrastructure across both the public and private sector are expected to support fleet utilization and sustain aftermarket demand. We remain focused on accelerating growth through new product penetration, expansion of our ASE network, and continued rollout of SPARK initiatives, including door control retrofit solution to further strengthen our market presence and customer reach. Talking about exports of goods. On the back of the headwinds created by U.S. tariffs, which resulted in muted growth in previous quarter, the industry is now showing signs of recovery. Although the U.S. market witnessed a decline on an annual basis, it is currently ramping up, and the outlook for the upcoming quarters remains positive for both the U.S. and European markets. Against the backdrop, the company reported export revenues of INR 271.4 crore in Q1 FY 2026/2027, registering a 9.7% year-on-year growth compared to the Q1 of FY 2025/2026. This growth was driven by improving market demand and higher volume of double diaphragm spring brake actuator, uni-stop disc, and cam brake chambers, as well as air compressor. In addition, the successful launch and ramp-up of new products, including the uni-stop disc brake chamber for North American customers, contributed significantly to the growth achieved during the quarter. Looking ahead with a positive outlook, particularly in the U.S. market, which is witnessing a strong ramp-up along with sustained demand in the European market. We anticipate a steady improvement in export demand. We remain focused on proactively navigating the evolving business environment through continued investment in new product launches, accelerated product ramp-ups, and increased penetration of key product lines, including compressors and actuators to drive future growth. Regarding export of services. Export of services recorded a strong growth of 12.5% in quarter one FY 2026/2027 compared to the same quarter last year, which was driven by sustained expansion in engineering activities delivered from India to our global centers. Regarding ESG and sustainability. Sustainability remains an integral part of our growth strategy. During the quarter, we continued to advance initiatives focused on environmental stewardship, resource conservation, and sustainable mobility. At our Lucknow plant, we commissioned 2,100 kl rainwater harvesting system, further strengthening our water conservation efforts and supporting our water positive agenda. At our Ambattur Plant, we completed the transition from LPG-based cooking systems to electrical induction level, reducing LPG consumption by approximately 16 ton annually and supporting our decarbonization objectives. ZF CVS also rolled out an electric vehicle EV policy for employees across locations, promoting sustainable mobility through employee awareness and engagement programs. Recognition and awards. Our continued focus on sustainability and operational excellence was recognized through prestigious industry accolades during the quarter. The ZF CVS Ambattur Plant received CII Gold Award, securing the highest ranking among more than 350 automotive sector participants with an outstanding score of 95%. This recognition followed a rigorous assessment conducted by a panel of CII environment health and safety experts. Strengthening our ESG credentials, the Ambattur Plant was also honored with Spotlight Award for Decarbonization and Climate Action, recognized its significant achievement in carbon reduction, sustainable operation, and environmental stewardship. These recognitions reaffirm our commitment to embedding sustainability into our operation while creating long-term value for all stakeholders. Updates on engineering and R&D. Our engineering and R&D teams continued to drive innovation and support business growth through the rapid development and launch of key products, including the next generation electronically controlled air suspension and Type 24/LE 24 high force spring brake actuator, enabling new business wins with leading OEMs. The team also strengthened our aftermarket portfolio through the launch of CV brake pads and hydraulic steering systems while introducing quick fitting for trailer segment, further expanding our product offering across key customer segments. To promote the adoption of advanced vehicle technology, we conducted multiple technology days events at the ZF Test Track and customer location, showcasing solutions such as electronic braking system, electronic stability control, advanced driver assistance systems, modular braking system platform, Electro-Pneumatic Handbrake, and electric door system. These engagements received encouraging customer interest and strengthen our technology leadership position. In preparation for upcoming safety regulations, ECE homologation testing commenced for multiple customers at ZF Proving Ground, further enhancing our testing and validation capability. The anechoic chamber testing laboratory at ZF Test Track received NABL accreditation, reinforcing our commitment to engineering excellence, quality, innovation. These initiatives reflect our continued focus on delivering advanced technology, accelerating innovation, and supporting the industry's transition to safer, smarter, and more efficient mobility solutions. Talking about manufacturing updates, we continue to strengthen our advanced manufacturing capability through our multidivisional Oragadam facility, serving both domestic and global customers. During the quarter, we successfully productionized new assembly lines for ASP cartridges and vacuum pumps, while scaling up production of e-compressor and brake signal transmitters to support growing customer demand. To enhance capacity and operational agility, we commissioned new assembly lines for brake actuators and valves across our manufacturing network. Strategic investment at Jamshedpur, Lucknow and Pantnagar further improved production flexibility, responsiveness to customer requirements, and delivery performance. Our operational excellence journey continued to gain momentum with the successful completion of the overall maturity assessment at Ambattur Plant, delivering encouraging results across multiple dimensions of manufacturing performance and operational maturity. In parallel, the continued deployment of ZF Production System, ZF PS, including key initiatives such as shop floor management and resource qualification, is strengthening operational discipline, enhancing KPI visibility, and driving sustainable productivity improvements across all site locations. These initiatives underscore our commitment to manufacturing excellence, operational efficiency, and continuous improvement, providing a strong foundation to support future growth and customer success. Talking about previous awards, I'm pleased to share that in Q1 FY 2026/2027, our team received three national awards and five regional awards across competitions organized by leading industry bodies such as CII, ACMA, and QCFI, in addition to several recognitions at the state level. These achievements reflect the dedication, innovation, and continuous improvement mindset of our teams, while reinforcing our commitment to operational excellence, quality, sustainability, and best-in-class manufacturing practices. Some other topics. During the quarter, there were important changes to the company's leadership team. We would like to place on record our sincere appreciation for Ms. Sweta Agarwal for her valuable contributions as Chief Financial Officer and wish her success in her future endeavors. To further strengthen our leadership and governance framework, the board approved the appointment of Mr. Rakesh Mishra as Chief Financial Officer effective September 1, 2026. With over three decades of experience across finance, governance, compliance, and business transformation, he brings significant expertise to support the company's next chapter growth. The board also appointed Ms. C.V. Kavviya as full-time Company Secretary and Compliance Officer effective July 25, 2026. Her extensive experience in corporate governance, secretarial matters, and regulatory compliance will further strengthen the company's governance and compliance framework. During this quarter, we also participated in Prawaas 5.0, India's premier public transport and mobility exhibition, where we showcased a wide range of advanced technologies focused on safety, connectivity, operational efficiency, and electrification. The event provided an excellent platform to engage with OEMs, fleet operators, and other key industry stakeholders. We received encouraging customer response across our technology portfolio, particularly for our range of door control systems, which received strong customer appreciation for their enhanced passenger safety and integrated fire detection capabilities, enabling faster evacuation. The strong interest reinforces the growing demand for intelligent safety solutions and validates our focus on technologies that improve passenger protection and operational efficiency. Talking about financial performance. Now we are moving to financial performance for the quarter. For your ready reference, the results were made public at 1:43 P.M. on July 24, 2026. I hope you have had a chance to go through them. We are happy to share that the quarter ending June 30, 2026, our total income stands at INR 1,101.8 crore with 5.7% growth compared to Q1 of the previous financial year. Our revenues from operations grew by 9.3%. Excluding foreign exchange gains or losses and one-time expenses, our income increased from INR 1,001.5 crore in Q1 FY 2025/2026 to INR 1,100.6 crore in Q1 FY 2026/2027. The company's profit before tax for Q1 2026/2027 stood at INR 140.1 crore, while profit after tax amounted to INR 104.5 crore with a de-growth of -14.7%. However, excluding the impact of foreign exchange gains or losses and one-time item, which was in the previous year, INR 43.7 crore, profit before tax stood at INR 140.8 crore in Q1 2026/2027, representing a strong 16.9% growth compared to Q1 of the previous financial year, excluding the foreign currency impact. The year-on-year difference is primarily attributable to absence of the significant FX gain, INR 39 crore, and higher one-time income, INR 4.7 crore, recorded in Q1 of the previous financial year. In contrast, Q1 of current financial year was affected by an FX loss of INR 1.98 crore and lower one-time income of INR 1.2 crore. We also discussed the challenges which we faced in quarter one of 2026/2027. During the quarter, we faced certain external headwinds, including volatility in Forex, key commodity, energy, and consumable prices driven by geopolitical developments, as well as an industry-wide shortage of blue-collar manpower during April and May, which impacted production costs across several manufacturing sectors. To mitigate these challenges, we intensified our focus on aftermarket business and implemented selective price increase effective July 2026. We continue to engage proactively with OEM customers on commodity and foreign exchange cost recovery measures, with a portion already realized and in balance under active discussions. Under our Perform 26 initiative, we remain focused on continuous improvement measures, CIS, productivity enhancement, value engineering, material cost optimization, and manufacturing efficiency improvement to help offset inflationary pressures and strengthen profitability. In closing, we remain confident in the long-term growth prospects of our business, driven by increasing adoption of advanced safety technology, strong aftermarket momentum, a positive export outlook, and a robust innovation pipeline. We are well-positioned to capitalize on opportunities ahead. We will continue to focus on innovation, operational excellence, customer centricity, and disciplined execution to create sustainable long-term value for our shareholders and stakeholders. I would like to thank all our stakeholders for their continued support. Thank you. We now welcome your questions. Thank you very much. We'll now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah. Thank you for the opportunity, and congrats on the ESC nominations. Sir, firstly on the ESC nomination, sir, you mentioned in the press release you have won orders across the 12 volt and 24 volt systems. Just want to understand now, will the ZF address across the CV segments, including LCV, which is more than 5 tonner segment as well? And just the LCV, the 12 volt system, will the content be slightly different than, say, 24 volt systems, sir? This is Shankar here. Taking your question, the ESC win is only across the pneumatic ESC domain, whatever we have shared today in the press. As part of the 12 volt segment, it's mostly the intermediate commercial vehicle segment, which is in the 12 volt region. That's the focus, which is mostly pneumatic ESC. To answer your question on the content per vehicle, it remains the same. Got it, sir. Sir, coming to second part, sir. Basically, just want to understand if you can update, particularly on the LCV side. We had earlier talked about LCV product portfolio, where we want to expand towards LCV, and we're targeting around INR 19 million revenues by 2030. Also just on the longer term, how do you see the eCATS regulation extending to more segments of CV? How ZF is particularly actively working a lot towards the software in the CV industry as the CV industry players are focusing a lot on the improving payload and the efficiency. Okay. Let me break this down question by question, perhaps. On the LCV segment, firstly, I think the first focus is on the advanced braking systems. As you might be aware, we are already in series supply on certain hydraulic ESC portfolio products for some of the key OE customers in India. Apart from this, we are also working on the booster and tandem master cylinder for some segments of the hydraulic braking portfolio and looking to grow that business further. We are working towards the expansion, as you mentioned, towards a bigger presence in the braking segment to start with. Coming to your second question on the eCATS. We are already present today with most of the key bus OEM partners, where we are working to position ourself as an eCATS supplier partner. Potentially, there is a legislation coming up in the future. There was talk about all the vehicles adopting the ultra-low entry buses. When that happens, we will be there with all the OEMs. Apart from the bus segment, we see this in few of the truck segments, primarily in the tractor-trailer domain, where we see the tractor-trailers having height adjustments to be able to adapt to different variations in the trailers. This is the one other potential that we see that getting adopted and possibly extending into the tractor and trailer segment on the truck side. What was your third question again? I missed the last. On the software part, a lot of CV players are focusing on the payload, et cetera, to drive efficiency. Just want to understand how ZF is working to take these opportunities. On the software part, we are basically into the telematics domain already, which provides a comprehensive way of evaluating how the performance of the vehicle is and in terms of the fleet operation management and tracking. Apart from that, we already are into the trailer EBS and the trailer pulse mechanism setting, which provide capability to do a load monitoring, load evaluation, as well. These are all capabilities and features that are already available. Looking ahead, there is also the work towards the software-defined vehicle, which we are at a conceptual stage as a company and trying to see how OEMs would be interested in partnering with us and taking that concept forward. Got it, sir. Thank you so much for the answer, sir. Thank you. Okay. Thank you. The next question is on the line of Mukesh Saraf from Avendus Spark. Please go ahead. Yes, sir, this is Mukesh Saraf. Thank you for the opportunity. My first question is on the ESC nomination itself. You mentioned that you already nominated for three OEMs. Would your market shares in this ESC be similar to the pneumatic braking system market shares we have, given that you're nominated? Is this going to be nomination platform wise, segment wise, or is it across the board you will be supplying? Thank you for the question, Mukesh. I would like to take that. To answer you, yes. As we have been nominated with most of the major OEMs, we would be retaining our majority position in the market, and we will continue to work with them on ABS plus ESC solutions, which we are offering across the Indian market. Right. In the previous call, you also mentioned that OEMs will typically want to work with the same vendor for the entire ADAS suite, so that will include AEBS also, for example. Now that you're working on ESC with these OEMs, in all probability, should we assume that AEBS will also be part of the supplies for you? I think during the last call, it was also mentioned that today the market has provided several options that are available, wherein the AEBS ADAS portfolio can be disconnected from the braking, and there are many service providers that offer this solution in the market. We are at this point of time in the AEBS plus ESC domain as a majority player, and with the ADAS, there are many other players in the market as well who offer the solution as a standalone. Right. AEBS is something that we'll have to still wait and see whether we can get in nominations there as well. Today, we have a few partners in the e-bus domain. We have already been nominated by a few of the key bus manufacturers, where we are working with them on the AEBS Sorry, the AEBS plus ESC, which is a complete suite of solutions that offer the complete set of features which we have as it is available in the European market. That's the full suite, and this is where we are looking to position this product and take it forward from there. Got it. Secondly, be starting manufacturing next year, third quarter, for the ESC. How would the levels of localization be for this product to begin with? We are working on a high level of localization with our local EMS partners, where we have possibilities to localize the ECU as well as some of the other products which we are using. Already, we are somewhere near 40%-50% localization. By the time SOP, we will be greater than 75%. Got it. This last question on exports, we do understand that last year we've seen some impact with the tariffs across U.S. Could you give some sense on the outlook this year? I think we have been talking about a lot of new orders that we are winning, especially in Europe. It would help to understand how exports can pan out for us this year, how's the order book looking like, new product introductions, all of that. In the current quarter, we are seeing a momentum that is gaining back after the last year's lull. This is primarily driven by some of the actuation products from North America as well as some of the air compressor portfolio products. These are the key growth drivers which are being produced out of our SEZ plant in Chennai. Right. We are looking that this outlook continues to remain positive in the coming months as well. Any guidance or any sense, like can we see continuous double-digit growth in our export revenues for this year? At this moment, we are not able to predict because there are a lot of geopolitical uncertainties around it. Sure Nobody in the world could put a finger on it, for sure. I would say it looks positive, for sure. Sure We would be definitely looking at a strong rebound happening in the market. Understood. Great. Thank you so much. I'll get back in the queue. Thank you. Thank you. The next question is from the line of Dishant Jain from Quasar Capital. Please go ahead. Yeah, hello. Thanks for the opportunity. Sir, first, a few data questions. Can you provide the domestic OEM growth for this quarter as well as the U.S. and Europe market growth, Y- on- Y? 8.6%. Yeah, I think the domestic year-on-year was 8.6% over last year. Okay. With the vehicle growth, approximately 8.5%. 8.5%, yeah. Okay. What about the U.S. and Europe markets? U.S. and Europe markets saw degrowth versus last year, approximately 10% degrowth. While overall, I think U.S. market was a bigger degrowth than the Europe market, so that was the bigger level growth. Our overall sales has been better. Okay, sir. Sir, can you just provide some commentary on how the domestic demand is currently behaving in the Indian market? Like your talks with the current OEM players and everybody, just about how the domestic demand is behaving in terms of production. Yeah. Typically, the July, August, September months are usually seen as the dull months due to the monsoon, wherein the heavy vehicle production and vehicle demand would come down. However, this time we are seeing a kind of a growth scenario situation, where we see the July month itself, we are seeing an average of 40,000-42,000 vehicle production, which is almost 10,000 higher than a typical July. Looking at August and September also seems to be at par levels. There seems to be a good growth by the OEMs, a good rebound in this quarter itself, potentially towards a growth sector that we will see in the further quarter as well. Sure. Sir, I didn't hear properly when MD sir said at the beginning of the call that this quarter was impacted by certain headwinds across the industry. What was the actual headwinds? If you can repeat, please. Yeah. Actually, you know that there was a shortage of aluminum also. It started from, in fact, previous quarter. Also, the shortage of gas and the prices increased. Aluminum has gone higher, close to INR 100 from around INR 260 per kg, and it has gone up to more than INR 360 per kg. It has started coming back in July, approximately we see that INR 25 is reduced, and it should taper down if the geopolitical situation starts improving. This is one major contribution in commodity side. Also there are some increases in the oil prices, consumable grease and other things. Anything related to chemical, including rubber, plastic, they have seen increase in this quarter and in fact from the previous quarter. Sure. Understood. So- Yeah. Just the last one, sir. What was the one-off in the base quarter? What was? What was the one-off- The expenses expenses in the base quarter? One-off expenses were INR 39 crore, was basically a forex gain, which we had due to the billing was done on the services at an x price of fx, but we got it at 1.08 x. Around 8% higher forex gain we booked in this last year first quarter. That is close to INR 39 crore. Plus there were some actuarial valuation, one-timers. That total amount was INR 43.7 crore. In this quarter, only close to INR 1.98 crore. That is basically fx loss. That is why this difference. Basically there is a delta of INR 40 crore on one-off basis in other expenses, if I am right. You are right. Absolutely right. Okay. Is that it? Yeah. Sir, thank you. That's all my questions. Thank you. Welcome. Thank you. The next question is from the line of [Darshan Jain] from Anand Rathi. Please go ahead. Hello. Thank you for the opportunity, sir. My question is related to services. How do we see the services growth for the full year? Yes. Currently, we have seen a 12.5% growth last quarter versus this quarter. I think we see that it should remain at this level, even in the coming months. Okay. We are also delivering services for digital solutions into data lake controls, operations and performance improvement, advanced products, and also related to some cyber security services from India. Okay. Sir, my second question would be related to results. Sir, employee cost has been inflated Yo Y. Any particular reason? Employee cost? Employee cost has been inflated Y o Y. Any particular reason? Yeah. One is that we are having the increment every year, which is to be booked in the quarter. Also in the export of the services, around INR 8.4 crore is recovery in the recovery that is shown as y cost, but if you go there, it is also shown under that recovery, which is close to INR 8.4 crore. Overall impact is not INR 17 crore. It is close to INR 9 crore. Okay, sir. Thank you. Thank you. The next question is from the line of Shubham Bhatra from Ambit. Please go ahead. Hi, sir. Thanks for taking my question. Sir, firstly on the gross margins. Over the last two quarters, Q4 last year and Q1, we have seen some pressure coming in. Could you highlight as to what kind of pass-throughs are we expecting from the OEMs and what is the timeline for the same? As Paramjit mentioned, the kind of pass-throughs, what we are seeing are related to inflation from RM commodities, as well as related to the West Asia crisis, which led to certain commodities like LPG, other products which are byproducts of the crude oil and petroleum-related outcome. As a result of these, those products are the ones where we are now jointly working with OEMs to see how to get. I would say we have already recovered one portion of it, but there are others where there are ongoing discussions with OEMs as they recalibrate their own internal activities and their books. This is also something that we will be securing over the next quarters. Typically, this happens over a half to quarter lag, but owing to this conflict, it has taken a little longer than usual. That's the impact that we see. Got it, sir. This recovery that has happened, some part of it, that has happened in Q2, correct? The current quarter. This is already reflected in Q1. There is no previous quarter. Yeah. Correct. Got it, sir. Secondly, sir, our other expenses on a quarter-over-quarter basis have bumped up by around 10%. Any one-offs you would like to call off? Other expenses when compared to Q4, there is an FX loss of INR 2 crore, there is an increase in certain CSR expenses, there is an increase in consultancy and IT costs, there is a directors' commission and rental expenses of service location. These are the four categories under which it comes under. The delta is approximately INR 12.4 crore. Got it. Apart from the above, overall, it remains, yeah. Thanks. Thank you. Welcome. Thank you. Due to time constraints, we take that as the last question of the day. I would now like to hand the conference over to the management for closing comments. Yeah. In closing comments, I would like to say thank you very much to all the team members in ZF and also all the stakeholders, investors, for supporting us during the challenging quarter as well. We have been able to sail through the volume expectation and other expectation from OEMs and aftermarket. Thanks very much to all. Thank you. On behalf of ZF Commercial Vehicle Control Systems India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you everyone. Thank you.