Samvardhana Motherson International Ltd Q3 FY2024-25 Earnings Conference Call

Ladies and gentlemen good day and welcome to Q3 fi25 results conference call hosted by Samana Madan International 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 this conference call please signal an operator by pressing star then zero on Your TT phone please note that this conference is being recorded and now hand the conference over to Mr VC Sagal thank you and over to you Mr seagel thank you good evening ladies and

gentlemen thank you for joining the result conference call of samel I am pleased to announce that the board has approved the results of the quarter 3 of financial year 2025 some of the key highlights are our Diversified and resilient business model Continues to deliver steady performance in a challenging business environment we are getting continued support from our customers in navigating through these short to medium-term challenges I am pleased to announce that our leverage ratio has improved to 0.9 this will be the lowest level in the last 10 years highlighting our robust balance sheet which will

support future growth opportunities our first PL for the consumer electronic Business has operationalized during the quarter we are expecting a sharp ramp up during the ensuing quarters which will further strengthen our non Automotive play we continue to invest in opportunities that could support our future growth albeat with careful consideration I would like to now hand over to W and the team to provide a walkth through and business highlights and insights for the quarter over to you w thank you papa good evening ladies and Gentlemen s reported robust quarterly revenues of 27666 crores reflecting an 8%

year on-year growth iida stood at 2776 crores of 133% and Pat reached 879 crores marking a solid 20% increase or normal size level and 62% on reported basis on the revenue side the business continues to grow at a faster rate than the market the Auto industry degw by 1.2% on a year-year basis and excluding China it degw by neg 4.8% against this s registered a 7.5% growth on profitability we have delivered a robust performance with 10% deida margin driven by our focus on operational in cost control measures suit continues to demonstrate resilience and stability underscoring

the strength of our well Diversified business model this stady performance is particularly notable given the weak production environment the industry remains in a transitional phase AS Global oems Continue to navigate the shift to clean mobility and evolving consumer demand Trends this is further exacerbated with shifting geopolitical landscape and trade Dynamics the shift of production to E and hybrid platforms continues at varying growth rates across different regions which we have shown on slide seven while premium oems are recalibrating their strategies to introduce new models across platforms and segments the mass Market Manufacturers are expanding their offerings

with a SLE of new launches across multiple powert trins I would like to iterate that Sam is a Powertrain neutral company with more than 95% of our product portfolio being engine agnostic just to give a sense on the business environment interest rates stayed mostly steady Commodities like copper experienced price volatility and energy pric in Europe are on a worrying upward Trend there are indications of supply chain stabilization and as Logistics cost decrease supported by Port decongestion on key trade routes this development should help us to release working capital by the end of the year you

can see more on this on Slide Five we've had many inquiries about TR trade tariffs and roll backs and we would like to provide you with an update while different countries are working through the trade agreements the implications in The Global Auto industry are yet to be fully understood Mel has a globally local strategy with our manufacturing plants in close vicinity to our customers all material flows like Commodities are typically passed through and so they are customer nominated Parts any change in tar from these parts would have a pass through effect for the remaining procurement

we work actively to localize and hence the implications if any for mson will be very limited Further as tariffs is an industrywide issue these will ultimately be repriced by the customers in the medium term for a global player like us you would be better played to optimize our production in more favorable jurisdictions and thereby provide a faster and unique solution to the customers however it's early days and we continue to evaluate how the trade Dynamic shapes up in the future and we'll work with our customers to find mutually beneficial Solutions Moving back to the results

during the quarter we have operationalized two green fields not notably one in the Consumer Electronics that my father spoke about before and one in Precision metals and modules further an additional six are expected to come on stream in the uing couple of quarters more on this in slide 14 maal has achieved a new Milestone and new in the non Automotive plane with the start of production consumer electronics Plant while the first batch of deliveries went out in November we have significantly ramped up seral production in January and this will start reflecting in the emerging businesses

from next quarter onwards the division has also made significant inroad overseas with the start of construction of its first Green Field outside of India this will serve as a Nearshore production based to European oems and open doors for new opportunities in and Around the region we have further extended our collaboration with Hondas San with the acquisition of atsumi tech a glal metal and machine specialist having a footprint in nine countries and a revenue of $412 million us and a healthy margin profile of about 8% basis FY 2024 numbers the interesting piece of this asset is

that all core high value capabilities such as heat treatment uh carbu rizing pressure uh Precision machining are all in-house available With atch we get access to manufacturing footprint in new countries like Vietnam and Indonesia for the increasing our exposure to emerging markets and related growth opportunities atex capabilities are complimentary to our capability set the country reside in India and Mexico and hence we now have a the global potential to Pivot and serve more customers across Industries as you start to unlock some of these Synergies on the balance sheet side effective net debt for the quarter

is approximately 10,500 crores versus 11,500 crores in September 2024 this is this the Never the net leverage ratio is now under one at 0.9 times you can see more on this on slide 11 we continue on our da leveraging trajectory with a much stronger balance sheet geared to go after large opportunities during the quarter we also fully utilize the qip proceeds to pay down debt the full Impact of Interest cost reduction should be visible from Q4 onwards to breed with the changing market dynamics we have further recalibrated our capex estimates for F525 we are now

estimating to have a reduced spend of about 4,500 crores plusus 5% versus the earlier guidance that we gave you of 5,000 crores plusus 5% the cap ex spend for growth primarily in Emerging Markets remains intact on a full year basis you can see more on this in slide 13 finally I would Like to report that the Consolidated grow based on the 9month fb25 numbers has improved to 18% from 17.3 as reported in the last quarter as we move towards the end of the year the teams are working relentlessly on core operations and working to deliver

some working capital by the year end we should further enable improvements in our calculations thus in a weak production environment we have been able to deliver A steady and resilient performance we are engaged with our customers for sharing some of the pressures related to changing business Dynamics while the environment is what it is volatility also creates opportunities for Mother Sun to thrive it gives us the opportunity to address issues in the supply chain and pain points of our customers and be a sustainable solution provider across our Industries the MMA pipeline is running hot with deals

in Various stages across automotive and non-automotive businesses with this I conclude my remarks and I have pank mosa Raj Jen and Kunal Milani on the call and we'll be happy to take your questions that you may have thank you and over to you operator thank you very much we will now begin with the question and answer session anyone who wishes to ask a question may press tar and one on their touchone telephone if you wish to remove yourself from the question CU you may Press T and two participants are requested to use handsets while asking

a question ladies and gentlemen we will wait for a moment while the question CU assembles participants you may press start and one to ask a question the first question is from the line of AD ja from investtech please go ahead hi yeah thanks for the opportunity and congratulation on good numbers you know resilient numbers and tough environment uh my first question is on our emerging Business uh it would be great if we can give a breakup of Revenue of the emerging business as we had given in q1 presentation Kunal you want to take that yep

uh ad we give that uh in every yearly basis so you will see that next quarter uh okay and you know Kunal if on the consumer business how should we you know expect a ramp up uh over the next you know one to two years any broad numbers you can share with uh not numbers as if again and Again said it's a it's a fairly confidential piece but needless to say I think the ramp up is extremely significant uh it will be a uh I don't know BJ Khalifa kind of a ride up that's good

that's good to know and any update on the you know JV investment so our JB partner was supposed to inas equity with 10% stake and scaling up to 49% uh any update on that Canal K I can take that I think U they've just received the approval for The uh Equity investment and they are just in the final stages of getting their internal approval uh uh approvals for the same and hopefully by next quarter we'll be able to give you more more color on that but seems like they've got all the the um you know

um all the approvals to be able to go and make the equity investment perfect perfect my final question is on a wiring harders business you know pretty impressive margin Expansion despite you know weak uh Revenue print so if you can help us understand that what drove this expansion and and should we expect this margin as more of sustainable uh going ahead P you take this I basically we have been working through all the regions to optimize and to improve and the focus is main on human resources as you know Mother Sun does well with its

human resources and its capital so we have been improving on That plus while markets have been chopping and markets have been down and some the reasons we did get uh we mentioned about two years ago that we had received additional orders which has started to K in and therefore we could balance the portfolio and keep our facilities optimized so uh that's the main reason as to how we could continue on this path uh really we can't predict how the markets continue to uh behave as we are quite well Diversified in Different markets as you know

the commercial vehicle markets been uh at a low number in Europe we do believe that in the coming quarters in the coming year uh they are inching upwards hopefully us markets have been quite stable and uh China is still a little bit lower and still surviving on exports also from China okay sorry I just to summarize I mean you mentioned that there was a Favorable product mix uh as well as Geographic mix along with cost saving is that right pank yeah basically uh it's been that the teams have been looking hard since uh you know

everything went up early after Co and it's a human resource dependent business they have been improving our facilities improving our uh productivities and efficiencies and uh that's how and we have also Insourced medal products so which also supports the customers so we do share the benefits with the customers also stce and those benefits are there reflected in us as well perfect perfect that's that's it from my side all the best thank you very much participants plus tar want to ask a question next question is from L of K singhh from namora please go ahead good

evening sir uh Congratulations for a resilient performance my question is on emerging businesses um see U you know we started this consumer electronics plan but uh emerging business Revenue has seen a bit of a dip uh in December quarter um also the margins are holding pretty steady uh usually when you start the new plants you know sometimes there is a impact coming on account of that also so if you could help us understand seasonality of revenues and or also if uh if there Could be some impact on margins uh for the start off with itself

we are making good margins in the Consumer Electronics Division and by when do you expect to hit Optimal Performance in that division um Canal will you take this please yeah sure so cap I think look on the Emerging Market side you're right that there has been a slight decline on the revenue front uh when you look at it from a quarteron quarter basis as you can see most of our Emerging Markets on The automotive side uh is sorry most of our Emerging Market businesses are in the Indian Automotive side uh and that piece of the

puzzle has shown a a decline in both commercial vehicles particularly in commercial vehicles and businesses associated with it like uh you know heavy equipment machinery Etc I think that part of the business has been on a decline in India and that's how that impact is visible having said so areas like Aerospace continues to grow Areas like our it business continues to grow uh and Consumer Electronic becomes the cherry on the top in some way uh it's coming however for only a month uh in this threeyear period so as we look forward I think uh the

ramp up is going to be steep so you should be able to see that Emerging Markets portfolio as a whole will continue to be showing the the maximum growth among the portfolio set that we have on top of it atsumi Tech is also going to get added to this Portfolio uh that's a sizable piece uh where our corresponding uh assets are again residing in India and Mexico and then the idea is to synergize between India Mexico and the nine facilities that atsumi Tech has uh and thereby grow both not only Automotive business but their capability

sets are equally good for the non-automotive part and the aim will be to use that capability set and grow both the auto and non-auto motive part so uh I can only say look out for The Emerging Market segment as we move to the in swing quarters yeah no thanks for that answer I also wanted some color on consumer electronics division uh how much time does it take before it hits optimal profitability profile U for the first PL it's been two months of production uh I I think uh where things stand uh things look reasonably more

stable uh than frankly what we anticipated uh so I Think things are looking good much depends now on the customer also and how quickly he or she wants to you know ramp up production uh we are ready our new facility uh the second facility will also come up by quarter 2 uh of next year and then the larger one will come in uh in beginning of FY 27 s so putting all of it together um that's said I think the ramp up is going to be steep obviously subject to to customers support coming around the

Way sure sir and uh one question I had on your interest cost if you could give some color here you know it's been still on the a bit on the higher side are there any onetime elements here and how do you think about on a normalized run rate uh at current level of debt uh yes so uh I think when you look at debt some of the pieces which are over and above the debt piece which resides in the interest cost is one is Forex losses uh this time on account of uh the Volatility seen

in variety of different currencies uh there is round about I think 35 or 40 crores of of Forex losses that reside into the interest cost bucket uh secondly you aware that in September we had done uh cumulative convertible debentures uh the approval for that while I don't think the company needs to ultimately pay for it but from an accounting perspective we are approving that at 14% return uh and that is adding Another 30 odd grows um into the uh interest cost bucket the third element is uh some of the uh debt that we had to

pay down uh using the QP proceeds that only happened in in November so you're seeing around about 1 and a half months of impact on some of those reductions uh and hence uh you will be able to see the full quarter impact in quarter 4 so I anticipate quarter 4 uh numbers to Trend downwards by somewhere between 50 to 75 crores from here on uh The Forex piece is a little bit unknown uh that is dependent now on how the the currency plays out uh but mind you most of the Forex losses are also uh

accounting entry because we do have corresponding uh Hedges so there are mtms and and translation gains and losses which negate it uh so overall our asset liability is is relatively matched up uh but then yes from an accounting perspective we do need to recognize Mark To Market pieces thank you sir wishing you all the best uh I'll come back in the queue thank you next question is from L of gjan prani from Bank of America please go ahead yeah hi thanks for taking my questions um just following up on emerging uh businesses could you also

give some color on the Aerospace piece because uh you know uh there there was a pretty healthy order book that you all Had flagged earlier on that and you also flag in this presentation about you know the being becoming a tier one supplier for the commercial aircraft so if you can give some color on the where the revenue for this business stack up how should we think about the growth uh on the Aerospace side R yeah look uh you know we have um two facilities that are coming up and that they should be coming up

in the first quarter of 26 uh sort of a timeline so I Think again we have a large order book there um I think the in the next quarter we can we can also discuss more on the order book over there but that's see uh very good gains and U definitely lot of the expansion is coming up with the two facilities that are that are coming up specifically for the Aerospace expansion uh like I said we'll be able to give you some more on the a book on the next uh sure I'm just trying to

get the revenue um you know sort of some color Because I think this was pretty small piece if I look at f24 right it was somewhere around I think 3 350 crores um just trying to get some sense with the acquisition and this execution how big can this be can this be like you know three four times of where the f24 revenues were you mean in with the acquisition itself or with the with the growth we have definitely very high targets for where we wanted to grow um definitely a 10x is What we are targeting

in the next few years so we want to do much better than much better than that but also you have to understand that a lot also depends on how the customers pull because in in in this business there are only two major customers rest are obviously um um also there but there two very large ones uh and you know what's all is happening with some of these customers with the supply chain uh um issues so what we believe again in the long-term prospects These customers will ramp up and I think we will see more of

that coming this year uh that's why I was saying if you beat the patient I think at the end of next quarter we'll really be able to tell you how all of that is picking up we are quite optimistic and and it seems like the worst is behind us so we should be ready for some um high levels of growth in this business okay got it sorry if I just might add gin you're you're talking only 350 which Are only part of AD industry adaia Industries itself is 120 130 million euro uh business uh so

if you add that I think on a clocking basis uh the business should be able to see a very significant growth as we release the numbers in in quarter four okay got it um the second question I had was on the Japan uh piece congratulations again looked like a pretty uh good Acquisition uh if you can um you know share two things one uh when do we expect the payout and consolidation of this business on the timelines and secondly where would the Japan after this uh you know this uh this acquisition concludes where would Japan

Stack Up in terms of percentage contribution to our revenues because I think that's been a wide space for us um if you can share how big Japan exposure will become with this Acquisition go ahead K so uh gjan I think with atsumi tech um and yacho businesses I think together uh it's not only with Japan mind you these are all Global businesses to begin with uh from a capability set perspective we have tapped into Hondas and obviously in a in a fairly big way and we have very happy with the support that we are receiving

from them uh atsumi Tech itself should get closed in in March is what we anticipate right now uh so by Won't see much of the revenues kicking in in quarter 4 but uh quarter one onward you should start seeing pretty much the full of atsumi tech coming in uh I think the interesting piece is as some of these uh elements come together uh there are multiple areas where we can Leverage the Japanese presence uh not only in cross- selling to other Japanese oems uh but also supporting Hondas San in many of their other product lines

across the Globe uh at the same time each of these businesses carries a fair amount of R&D engineering capabilities uh the objective would be to not only utilize that uh in Japan and their existing ones but to take them Global as well uh and not only in their product portfolio some of their capability sets can actually be used across the board for example is's a great amount of automation that is embedded in many of their facilities uh frankly we can learn a lot from that and Start building that out in in some of our other

facilities as well uh that's been also the thought behind the joint venture that we created with Matsu uh which is on Industrial Automation uh and hence the idea is to start leveraging the base of Japan the engineering and Manufacturing capability is there to not only do it for Japan and Japan Japanese customers but then to leverage this across Ross the globe and then cross sell to other customers other Product lines and so on okay got it this is pretty useful just the last question from my side on the SAS uh the integrated assembly um segment

um you know the margin of course there has improved a lot but you also talk about uh you know how you're able to uh find avenues for growth from other you know other segments as well if you can you know sort of talk about how that business is growing is it more to do with the ins foring that we had spoken About when the acquisition was done or is it you know some other cross-selling opportunities that you're seeing so some some color on that yeah if you let me I can I can take that um

look the idea with integrated assembly was to really push on to become a tier point5 so um you know as we are priting ourselves to be a engineering manufacturing and assembly specialist I think um what we're also seeing is the customers are wanting more and more of The supply base to do the entire um you know assembly of the of the of the car and the logistics operations so this fits in really well with that I think uh you know we are targeting more and more businesses to move up the value chain not just the

um cockpits business which we are doing we want to do more and more modules and I think we're getting good traction so um still early days but I think we're in the we're in the right direction all the things that Quran also Spoke about that you know more focus on Industrial Automation um you know our our businesses that we are growing in the logistic side a close close connect with the customers and and their wish to really uh push more of the assembly businesses over to their suppliers I think this fits in really well so

uh again this is an exciting area of growth I think we are targeting to do a lot more than what it was originally doing and build capability there and uh Hopefully there should be some you know good news of us being able to to do that in the next upcoming quarters and winning businesses which will really be able to you know bring this uh division to its full color okay got it thank you so much thank you next question is from line of am Pani from JP Morgan please go ahead yes hi uh thanks for

the opportunity uh my first question is on the uh announcement that you've made uh For becoming a tier one supplier for commercial aircrafts uh can you um specify what components or parts you'll be making for this I think we'll have to come back I don't think we allowed to give you the exact components um on that but uh I mean as you as you know um you know we we are focusing a lot on the on the on the structure side and and being able to to do more and more those kind of Parts um

so so look it's all part of the strategy Once we entered this segment to increase the C base and ability of our products that we able to to do you also seeing that two new facilities are coming up in the coming up in the airospace uh segment which will again uh together with ADI Industries increases our product portfolio with complete capability on the Machining side uh and that's something that we continue to to grow with the customers and and have success with That so now that's actually this tier one with uh you know this company

is actually quite a big thing so yeah we'll wait for you know more details on you can share um uh secondly I mean you will you will hear more about it in the next uh few days look forward to it look forward to it uh on the Consumer Electronics please just a clarification so you've already started ramping up one plant uh I see in your presentation two more plants coming Up uh next year uh so is this for the same product line and the same partner or are we something else if you can just help

us understand on that um K maybe I can start and you can you can add on look uh I mean the the the plant that we are setting up is a very large Plant it's in uh it's in Chennai um so the first plant is was always the the prototyping plant where we were doing you know much smaller volumes uh and kind of showing that we Are capable to do it and uh you know um build the competence from there so that when the large Plant comes along and the the large volumes that we able

to execute out of that plant uh we're able to to do that at a at a size and scale which is demonstrated already so uh that's the that's the idea I think you know we have been fa successful it doing it at the smaller setup smaller setup is still quite large for us uh but compared to the new plan that we are setting up It's it's very small uh so so everything is kind of relative I think uh it's moving at an exceptional pace and I think the teams have done a wonderful job to be

able to deal with this new technology and it is only going to be supplemental or or you know growth in things that we're already doing in a smaller way in a much much larger way when the big plant is all set up uh uh next year and this uh lastly on the atum tech Acquisition which again you know seems to be a you know decently profitable business with good revenues um historically you've been you know almost exclusively uh power train agnostic uh I think you started doing Acquisitions and with this one you know where you

are getting into uh you know things which are related to you know more engine kind of components so should we assume that going forward you are you know relatively more open to doing this is is There a slight change in thought process you know given there is so much uncertainty regarding I how how should we think about this I think uh this particular point is uh your point of view uh how you think about I think the change is not going to be as that dramatic as what people are feeling that from one day to

another the change will happen uh so we I think uh the objective is basically to take over these high capability companies and then Over a period of 5 years 10 years you are then uh actually uh using that as a base of engineering and technology and capabilities and then coming out how you're going to solve what our company's objectives are so it's not from one day to another if you I mean unless you're thinking it's that uh then of course we would be in trouble but we know for a fact that it will not be

from one day to another we have a period of 10 years 15 years to use that particular technology And then uh a give that competence on a geographical uh spread to new customers because at the moment they only tied up to one customer and give it to the other customers and also in the process uh um uh come up with the future uh Technologies where we want to be which should be in um uh the emerging businesses and all that so there's a lot which is uh uh the basis which we are taking these particular

companies over and if I might add uh look our strategy Remains exactly the same same this is a customer Le piece if not we decided to go to power train the customer had requested much like every other asset that we look at uh and it's a collaboration with them to find solution for them as well as to find solutions for ourselves in terms of our product lines and our capability is getting an answer it's the me matching of the two that results finally in in the acquisition understood thank you thank You for this I'll come

back in thank you next question is from Ganesh Gandhi from Ed Capital please go ahead yeah hi sir couple of questions from my side one is uh when we talked about Consumer Electronic kex off P to 2,000 CR it was for all the three phases put together right yes the 2,600 crores is for all the three phases put together got it and any sense on how Much we would have invested in the first placeas uh it's happening over a period of time um I don't know the exact numbers to be frank uh we can come

back to you uh it's round about I'm taking a broad guess it should be somewhere in the 700 800 CR levels got it okay and uh second with respect to you you you have shared the revenues from Acquisitions post third quarter by 24 uh any sense on what would the contribution from those Acquisition um uh sorry I don't have that number with right now number we can we can get back to you separately sure sure I'll pick that option thanks thanks and all the best thank you next question is from the line of panage from

fluent assets please go ahead uh thanks for taking my question am I uh am I audible hello yes yes go Ahead uh sir as I understand uh uh the T related things which is which is being spoken about in the news these days uh has has is expected to impact the automobile industry especially from especially the European Mexican and Canadian these countries so just wanted to understand what is our exposure to these countries and as you mentioned in your introductory message that most of the things will be pass passed on uh I mean The raw

material and other things so would would these uh tar if um uh if they they go through from us side have any impact on our Top Line and bottom line I think the Top Line will increase but um you know there will be that lack period so that could be 2 months that could be 3 months but I don't think it's going to be a show stopper or something like that but the Top Line would definitely go up because the taxes have gone up and the car makers are Definitely going to increase the price okay

sure and second thing so regarding this consumer electronics what as I understand is this the same EMS space which we are talking about or is it something different from that and secondly if this is the same EMS space whether it is low margin high value or high margin low value segment very difficult to Define high value low value it's all relative in nature just I don't know what reference You have um from our perspective uh we are doing Electronics manufacturing if if that helps you uh but I don't know how to define what is low

value high value so would would the margins from this segment be same as our 9 to 10% margin or will it be higher than that uh we expected to be margin active okay okay sir thank you thank you thank you next question is from line of ragunan NL from noama research please go Ahead uh congratulations sir for strong results uh sir firstly uh you highlighted about container prices which has come down by 15% between Q3 to Jan uh this is certainly indicate positive on working capital but freight cost is generally 2% of our sale would

this also be benefit be partly retained or fully passed on to the customer no this will have a portion that we will retain uh there is some portion which is a pass through there's Some portion which is which is retained but I think the bigger impact uh more than the cost front is actually on the working capital side because once you have an ability to predict uh when the material is going to reach the shores uh uh that is what gives you the Comfort on keeping lower levels of inventory and having a lower uh let's

say boq Etc so uh so that is where I think we anticipate a lot more uh liquidation of of uh inventory as we move to quarter 4 And even Beyond uh than for that uh sir Standalone business profitability is lower uh would this be partly because of front ending of certain cost for upcoming capacities any oneoff impact that you can highlight uh look I think uh a couple of things happened on the Standalone side uh you are aware that uh Euro depreciated against INR uh and hence obviously export revenues got hit uh on Top of

it uh European markets have generally been been underperforming and hence in general the the volume trajectory has been lower so the operating leverage didn't play out and then the commercial vehicle Market which is again housed in Standalone as well uh was underperforming in India including you know the highway equipment uh and the heavy equipment side uh and that had a dent again on on the uh the overall revenues and hence the lower operating Leverage uh so we would not be doing any uh uh capacities building uh for increase in supplies uh to mother buing because

they have lot of kex uh capacity additions happening over the next three quarters uh we are adding capacity on the mother uh I mean you're referring to the viring portion of our business I'm assuming are you referring to Ms will are you talking about the wiring harness or the wiring business yeah uh so at our Standalone With the capacity needs to be increased to supply to motherson buing business yes new facilities are are getting done for mscw there's one new facility that is that is coming up as well understood sir uh one clarify a on

consumer electronics you alluded to that there is an approval for the JV partner to take an equity stake what would be the range of Stak sir would it be uh 40 to 49% which was announced earlier up up to 49 contractually it is 10 to 49 uh so we'll wait to hear from the JB partner what they are comfortable with understood sir um on the capex guidance uh which was reduced uh 500 CR and this reduction is in global businesses uh to which segments would it relate to uh it's actually related to a variety of

of segments uh essentially uh when you're seeing uh both either lower production levels as well as delays in Sops uh we planning to recalibrate our Capex to meet those you know revised expectations of customers so so that's how the recalibration has been done some of it is getting postponed to a point when they'll be starting the Sops some capacity additions have been delayed out till there is better Clarity on how the volume trajectory is playing out and region wise it would mainly be in Europe uh to a large extent I would say and America has

got some got it sir uh thank you very much I'll get back to the que thank you participants star and want to ask a question next question is from line of lakmi Nar from Tonga Investments please go ahead yeah thank you uh just if I look at your wiring harness business um uh how much what has been the India growth uh because I think last year around 36% of of our wiring harness business comes From India so I just want to understand how that business what is the composition of the business in the last N9

months the India business and how it has actually uh grown are you talking about msv or I'm talking about uh the uh the revenue growth last nine months uh uh in your wiring harness business what is the India part of the business grow the wiring harness business is uh uh one is only for India that's Ms will wiring H Business is also International which is in Sam uh which one are you wanting to know about uh okay there is an there's a j with this Quin chin right so that is part of uh this entity

correct so I I don't think we have exactly what the numbers of India is right now again we can come back to you got it got it and and the what um there has been increased uh biger margins in the wiring Farmers business um what is The um you know margin band you like to operate with that we don't give guidance on margins but we believe in those uh I think uh so really can't guide you on that and thir this this particular buying Farmers business do you also have anything which is made in India

and exported outside and how much is that wow uh so there are multiple products that Do get might be able to answer that question there we do we do export from India to some markets but uh as you would have seen uh the moment a market is maturing we have been setting up the plants in those regions so we used to export in asan we now have a plant in Thailand we manufacture there and support the asan markets we have plants in m east from where we are supporting our various customers and uh we are

also exporting Uh from India so uh the plants have been expanding and to early we had set up the plant in Mexico and then of course with Acquisitions more and more plants got added in so mostly we have been trying to be closer and being in the same region where the customers are or where we could do better Logistics but we keep many options for the customers as customers like us because they have the multitude of options to work with us got uh also in your annual report you Had mentioned that there is a mov

towards 5 voltage uh uh wiring hard in the especially East uh just want to understand how that has actually picked up in the last 9 month sales either in terms of either in terms of sales or in terms of order book um is there any uh is it uh me you're getting a mix of high voltage wiring harness as well as a regular one can you just give some th throw some light on there so uh as Mr SE earlier mentioned That for India market there is another company called msvl which supports the customers in

India both on the high voltage as well as low voltage harnesses both for Ev cars or ice cars hybrid cars all kinds of cars as far as Sam business is concerned we also support our customers globally in whichever kind of vehicles they're making so all the commercial vehicles which are coming up with the electric vehicles we are supporting our Customers both on the low voltage as well as high voltage site in different reg as you would know that the penetration of the electric trucks has been not so much at the moment but we do support

them so we are working together with them and uh we Supply to them uh also the products which we making and as they EMB backk on the journey in the future with different Power Trains also different uh uh configurations we are all working Together with them to support them asked about our other joint venture which is with kin it also supports its customers which is Hyundai and Kia both under low voltage as well as on the high voltage side and and what is the revenue that entity makes the clining joint venture that's included as part

of this Revenue which you actually p in your presentation right sorry did you say potential joint Venture no the current joint venture which been which you have forai that is part of the 20 years old it's 20 years old by the way what what do you want to you want to know the numbers of that no my question is that is that is part of the I mean the wiring harness business which you report in this entity that includes the revenues from that joint venture also correct that's true and and what is that uh uh

Revenue Uh we will talk about this on an annual basis so you will hear about this as we release our annual results okay thank you thank you thank you very much participants Z press star and one to ask a question ladies and gentlemen you may press tar in one to ask a question next question is from Land of cou Singh from namora please go ahead yeah yes uh thanks sir for the opportunity again uh just one question I Had on the vision systems business um we mentioned some effect of unfavorable platform and Geographic mix could

you elaborate a bit on this and are you seeing um we are at the peak of this effect or this this could increase a bit in 2025 Raj uh are there on the line yes yes I there so uh yeah look I think we we all know the industry is going through a bit of a flux on on the new platforms and uh new model introductions I think customers are trying uh to figure out what's the right time to make new launches uh so you would see you know different oems having uh uh different plans

on how they want to have this new model intruction strategy so we seeing a bit of this uh you know uh delay somewhere and some launches are maybe not at the volumes that were expected uh but this this should settle down I mean uh we we do also see somewhere where the ramps up has started And we also expect that in a few quarters the ramp up should get stronger uh in in some customers and some geographies so it's an evolving developing situation I think we have to go through this we working very closely L

with our customers to support in these changes and I gu you know we we are going through uh this uh with them together for the next few quarters and then it Ro start to look much better and can you talk a little bit About increase Traction in China as well in this division what really is yeah we have we have good presence uh uh in China with most of the em I mean there are some oems who uh who are doing uh by themselves uh but then there are other EMS who are open uh to

uh get into new technologies and uh uh you know buy high quality and high technology uh components so we are engaged with those sets of customers and they are also doing very well so we are Having good growth uh with those customers with with the volumes growing uh in China so yes to some extent we do see uh the Slowdown that we are facing in ramp ups and uh a new model introduction in Europe and us is uh offset partially with the higher volumes we see in China so that is that is obviously with our

diverse portfolio helping us to uh keep uh very similar levels uh in in the current quarters and and going Forward um thanks sir and when you say adverse Geographic mix you basically what I'm trying to understand is it that China mix would be a little bit adverse on profitability compared to the Europe and US markets well I think each each OEM would be different uh it would be very hard to say you know uh so as you can imagine you know the every model every every platform comes with different uh margins different challenges and we

keep Improving uh with all of those platforms as we go along so we work with the customers we work internally so yeah it's always it's always a mix and yes as we are going through this very uh volatile situation um you do see some impact and it can be favorable it can be unfavorable and it keep changing uh but on the whole U we we look uh you know very strong in in terms of order book and also the new Mones that are coming Up so as I said in in next few quarters it should

all start to settle and start to look better thanks sir and look forward to that thank you so much thank you next question is from L of panage from affluent assets please go ahead thanks for giving me an opportunity again uh sir just wanted to understand the impact of this you uh Russia Ukraine war on our business I Mean to ask you whether the war had impacted our business because uh there is C there is noise that now things will be settled on and this war would be put to an end so going forward will

this development help our business uh w Canal can you take that yeah uh look from our side we didn't have any facilities in the in the in the Ukraine or any of the affected areas so from our side we were relatively insulated the customers have Fairly moved all their production from affected units to other European locations so uh actually we have not really seen too much impact on our business um kard can correct me if I'm missing something but from my side not really much of an impact my question was my question was whether the

since uh after the start of this war the uh economy of Europe went to doldrums so did it have any any impact on our Business and if it revives what would be the uh what would be the developments for us oh look I think uh you know two things one we have a very Diversified business model so um you know not anyone country is able to really affect mother Sun's business thanks to the diversification that we've been able to pull off with the with the with the businesses um you've seen that they've also made a

pivot towards um other Growth areas in in different Industries and also you know sometimes when these periods of turmoil are there you know we have the opportunities of growth so you know back in 2020 uh you know we were probably one third smaller than where we are today so all these throw up opportunities for us to to to grow so we don't really um agree that you know it's it's all a bad scenario there have been really opportunities for M to grow and get Closer to the customer and look at new business opportunities in this

um you know periods of volatility and uncertainty and if I might add uh you know we do have we did have facilities in Russia which obviously cannot produce if uh you know the sanctions Etc are taken out it enables us to get back into that market as one two uh as an immediate hit uh obviously the whole energy crisis in Europe was a function of the Ukraine Russia issue uh Presumedly if that gets resolved at least some of the cost pressures on the energy may ease out as we move forward and me these are at

least two immediate impacts that may be positive for us uh as it moves besides obviously as R was saying with turmoil there is always opportunities uh so and also I think Europe is not in door d they're in a bit of trouble that's for sure but Europe is still very strong and everything is uh you know It's it's in the side they take it yeah that's all right it's part of life thank so if you can help me with any guidance for f26 Top Line growth guidance uh I think uh uh I'll just give you

one political that you know we have a clear Target of uh till the end of this financial year that's March 25 uh the new this thing will come in the new fiveyear plan that we will have And uh that's what we can tell you about 26 but yes growth all over we're sure they're going to be growing okay sir thank you thanks thanks a lot you're welcome thank you a reminder to all the participants you may press stn1 to ask a question next question is from the line of Rishi from cor Securities please go ahead

yeah uh thank you for the opportunity just one clarification on the results uh uh in our Consolidated Numbers other operating Revenue has seen a sharp jump uh can you just give us some color on what what has resulted in such a sharp jump yeah uh so part of it is uh there's income obviously coming on account of uh the parking of funds that we had done before paying off debt so one and a half months those funds were invested in variety of uh different instruments some of that interest income is is residing in there uh

uh that is one chunk of it Uh um I think that will be the largest chunk of of what those will be it is a part of other operating revenues is it oh sorry you're talking about other operating Revenue other operating Revenue will will have a host of of uh of different things in it uh you know there will be places like scrap sales that may have happened uh to have caused it uh so there'll be there'll be a whole host of different different things Residing in there because sequentially there was a jump of 250

per so just wanted to understand is there something which you could highlight R do you have any follow no no thank you thank you very much ladies and gentlemen and now hand the conference over to Mr VC cycle for closing comment um uh thank you very much I'm sorry I had to catch a flight so I had to go uh Get on to the telephone call but um um I think the board was very pleased that in uh such circumstances it has uh uh the company has uh uh come up to the expectations much much

uh to the good surprise of uh the board uh um and I think uh all the teams have done a phenomenal job uh in this particular uh indor and uh we are hopeful that uh the opportunities are uh there so just watch the space is what I can say the future is really bright Thank you and wish you all a good weekend thank you very much sir on behalf of s Samana Madan International limited that concludes this conference thank you for joining us and you may now disconnect to lines thank you