Questions across 52 calls

Chandramouli Muthiah

Goldman Sachs

Ashok Leyland Limited

Ashok Leyland Limited CC-Jun24.pdf · 2024-07-26

My first question is related to some of the product pipeline commentary that was given by Mr. Hinduja. Just trying to understand, I think this year, I mean last year this time, you mentioned that you are working on a 0-to-2-ton LCV launch. And I think last quarter you also had mentioned that back half of this year, the company expects to launch more LCV products. So just keeping those two comments in mind, just trying to understand how the LCV product launch pipeline looks and then potentially when you think you can en ter the 0-to-2-ton category in LCVs.

My second question is just around the age of the fleet of CVs in the market. We have had a lot of news flow over the past five years around potential scrappage policy implementation. During Covid, pace of replacement demand slowed a little bit. So just trying to understand roughly where you see the current age of the fleet versus long -term averages and how you think about replacement demand in the CV industry going forward.

Ashok Leyland Limited CC-Mar24.pdf · 2024-05-24

Firstly, best wishes both Gopal and Balaji on your new roles. My first question is just on the outlook and the comments Mr. Hinduja had given on FY25. So, I think previously over the past, 3 to 4 election cycles before COVID , we have seen a pickup in M &HCV demand in the year following elections. And then last year also I think you had given us a little bit of color on the sort of outlook you have for the M&HCV and the LCV segments. So, just wanted to dig a little deeper on that to see how you're thinking about both M &HCV and LCV growth opportunity ahead in FY25?

Got it. That's helpful. My second question is just specifically how the mix of vehicles has moved within the M&HC V segment over the past 3 to 4 years. I think pre COV ID the 40 ton plus vehicles were sub 5% of our M&HCV volumes and at this point we're closer to sort of 30% of our M&HCV volumes coming from that 40 ton plus segment. So, just wanted to understand going forward how you see this migration ? Are your key customers continuing to prefer replacing those 25 to 35 ton vehicles with 40 ton plus and any fundamental factors behind this decision making. Just trying to understand how the mix might move going forward?

Ashok Leyland Limited CC-Sep23.pdf · 2023-11-10

My first question is just on the pricing comments that you al luded to earlier in the call 1.5% to 2% per quarter sort of price benefit that we've seen in the recent past. Just trying to understand, this quarter, I think starting October, one of our competitors had taken or announced up to a 3% price hike. So just trying to see if we see opportunity to sort of follow. And just in terms of net price realization, net of whatever discounting activity has been happening in the recent past, what the price retention could be there?

Got it. That's help ful. Just related to the pricing topic, I had a follow -up. I think the past 6 successive quarters; we have seen Q -o-Q improvement in realization per vehicle. But this quarter, you've seen a slight decline. So just trying to understand what the factors ther e could be? Is it to do with product mix? Or are we passing on some of the commodity benefits that we've been realizing back to customers? Just trying to understand the rationale behind the realization per vehicle...

KPIT Technologies Limited

KPIT Technologies Limited CC-Jun24.pdf · 2024-07-24

Hi, good evening and thank you for taking my questions and congratulations on the completion of the JV with ZF in QORIX. My first question is just around the JV. I think you mentioned that most regulatory approvals are now through ZF has also contributed their share of investment. So just trying to understand where we are in the process of building some of the middleware offerings? And are we working with any clients as we speak? And also approximately when we think we will launch some of these offerings to some of our critical clients? Is there any sort of interest that the key clients have exhibited here? Any color around that would be super useful.

Got it. That's useful. My second question is specific to how you've been performing in Asia. I think when we look at the disclosures by the various Japanese OEMs, it seems that companies like Toyota and Honda have committed to 30% plus electric vehicle R&D growth over the next couple of years annualized. So, just trying to understand some of this performance in Asia is it largely ramp-up of existing work with Honda or could you give us more color on if you're working with a broader range of OEMs across the region beyond some of the Chinese efforts that you mentioned?

KPIT Technologies Limited CC-Dec23.pdf · 2024-01-30

My first question is on the Asian carmakers contract that you've announced as part of our $189 million TCV engagements this quarter. So congratulations on that. Just want to understand, is it an existing client? Is it a new client? Is there any additional colour you're able to provide here around, whether it's middleware related work, SD -related work? Any additional colo ur on this business win, that'll be very helpful.

Got it. That's helpful. My second question is just on the recent comments that we've seen from automakers globally. So firstly, I think Tesla has mentioned that it expects a slightly slower growth here for its own EVs. But in China, I think EV growth conti nues at very good pace. In Europe, in the luxury car space, EV growth seems to be relatively strong and R&D budgets in EV space also seem to be continuing if we were to judge from commentary from a lot of your peers on the visibility that they have on their contracts. So just trying to understand what is the disconnect between maybe the US EV players and the rest of the world? And also EV spending budgets on the R&D side versus what the volume growth outlook seems to be over the near term?

KPIT Technologies Limited CC-Sep23.pdf · 2023-10-31

My first question is on the Honda contract that was won earlier this year. It appears that there has been some amount of ramp up from the QoQ growth numbers on that contract. I think Honda has been presenting to investors on the sidelines of the Tokyo Mot or Show, and the Honda senior leadership did call out KPIT and CSK partners. And I think from his public comments, it appears that he is talking about closer to 3,000 employees to be engaged with KPIT. So, I just wanted to understand if you see any updates and an upside to your relationship with Honda. As I understand, I think earlier this year, KPIT had mentioned that the medium-term scope of that contract could be 2,000 employees. So, I just wanted to understand your thoughts on speci fically how the Honda contract might ramp up for KPIT over the medium term.

Just one more clarification on the Honda ramp -up. As I understand, I think that there were a few employees that were working from KPIT for the Honda business even before this SPV contract was signed. So, is there any rough estimate as to at this point at the end of 2Q what percentage of KPIT employees is being deployed on Honda related projects?

Tata Technologies Limited

Tata Technologies Limited CC-Jun24.pdf · 2024-07-18

My first question is just on the utilization rates. It's pretty healthy, 86.5%. And you mentioned that you're redeploying employees more efficiently in the firm. Just trying to understand how you're thinking about hiring outlook for FY'25. And in the past few years, what has been sort of the maximum utilization rate that you've been able to achieve. So just trying to understand, so the interplay between hiring and utilization in our sort of efficiency and margin journey going forward?

That's helpful. My second question is just as you look at how you're building your business for the next few years. If you were to split your key areas of activity into aerospace, education, industrial, automotive. Just trying to understand where you see the maximum opportunity and potential for the company to capitalize on growth, like if you were to sort of divide the business into these 4 buckets, just trying to understand what your rank order of opportunity set would be amongst these key buckets?

TVS Motor Company Limited

TVS Motor Company Limited CC-Mar24.pdf · 2024-05-08

My first question is on the PLI scheme comments that you had made in the prepared remarks. So it appears that across the industry, there's been between 3% to 4% price hikes after the FAME II subsidies have been reduced. And now that you are eligible for PL I scheme subsidies potentially 13% to 15% subsidies going forward. And there's more iQube products on the way in terms of leveraging the EV platforms? Just trying to understand what sort of time frames you have in mind for a potential positive EBITDA or EBITDA breakeven in the electric 2 -wheeler business, just keeping these factors in mind?

Got it. That's helpful. My second question is just on the comments you made on more options to be available to customers on the iQube. So just I think in the past 2 to 2.5 years, we have spoken about rough run rate of potential one new launch or one new pr oduct refresh on the 2 -wheeler side per quarter. Is that the sort of run rate we have in mind for FY '24? And if you could just give us some colour on what to expect for customers from TVS in FY '25 on both the ICE premium as well as the electric 2-wheelers pipeline?

TVS Motor Company Limited CC-Dec23.pdf · 2024-01-24

I'm just trying to understand the product mix. That's my first question. So if I compare versus last year's fiscal, if you just look at scooters, ICE scooters and mopeds, I think we are about 60% of the volumes were from that category and iQube was about 4 %. Versus YTD this year first nine months, it appears that iQube has improved to 6% of the mix, but the IC E scooters and mopeds portfolio has come down by about 500 basis points. So just trying to understand, were there any sort of product discontinuations in the ICE scooter and moped portfolio, Scooty Pep and the domestic market will go in the export market? Just trying to understand that a little better.

Got it. That's helpful. Second question is specific to the Raider. I think the product continues to do very well. It seems to be a lot of full demand in the market. It appears that you have been able to take some price hikes on the Raider. So just trying to understand, I think that sports 125 category seems to have more product launches from peers. There seems to be some price cuts also from some of your peers. So what's giving you the confidence to take these price actions on the Raider? And also just related to that, have you been able to take price hikes in January across the portfolio?

Bajaj Auto Limited

Bajaj Auto Limited CC-Mar24.pdf · 2024-04-18

Hi, good evening and thank you for taking my question. My first question is on the commodity costs. You had given us some clarity in the prepared remarks on the way commodity costs move in the previous quarter. I think with some of the geopolitica l tensions for the past 3 weeks, we have seen increases in certain metal prices. So, I just want to understand how you're observing that? And if there's any forward commentary you would like to share on the metal cost side?

Got it. That's helpful. And second question is a follow -up on the comments you made on PLI product certification. I think a couple of your ele ctric 2-wheelers are now certified. So, going forward, as the PLI incentives start to get paid out to you, is that an environment in which you would be profitable on the electric 2-wheeler business? I just want to understand the profitability of the electric 2-wheeler business, including PLI. I think a couple of quarters back, you had mentioned that including PLI incentives, the electric 3-wheeler business could be almost as profitable as corporate margin. So, I just want to understand, including PLI incentives, how the electric 2-wheeler business might play.

Hero MotoCorp Limited

Hero MotoCorp Limited CC-Dec23.pdf · 2024-02-10

Hi, good morning and thank you for taking my questions. My first question is on the pricing environment. We seem to be heading into a slightly more benign commodity price environment, but I think Hero has been very proactive and taking opportunities to raise price, maybe a little more than peers in the industry over the past couple of quarters. So, just trying to understand, have we sort of covered for most of the commodity inflation we faced over the past couple of years in terms of passing on price hikes or is there a little more to go? And also, just related to that, have we been able to take any price hike so far in January and February? Thank you.

Got it. That's helpful. My second question is on the electric motorcycle plan that we recently shared in Jaipur at the Hero World event. It appears that we are going to start , maybe with performance motorcycles then premium and then slowly go on to Mid over time. So, just trying to understand the thinking behind that , given that you have historically been pretty strong at the entry level and with electric motorcycles, we seem to be looking to start with performance and premium?

Hero MotoCorp Limited CC-Sep23.pdf · 2023-11-02

Hi, good morning and thank you for taking my questions. My first question is on the electric two-wheeler business. Looks like in the month of October, we have now sort of reached into close to 2 ,000 units a month sort of run rate there. Just trying to understand going forward where do you see the further inflection points in terms of your electric two-wheeler business build out and any color th ere in terms of number of cities for the current product as well as any color on supply chain commentary as well , as you sort of try to scal e that up would be very helpful.

Got it that is helpful. My second question is just on how we are mana ging the margin in the business. It appears that the industry is in a slightly more favorable raw material environment, but Hero has been able to take more price hikes than maybe competition has been able to take and it appears that some of those benefits are being reinvested into the business , which is potentially why the margin is slightly more flattish versus maybe some of the p eers over the past few quart ers. Just trying to understand thought process aro und the various gives and takes, and also your thought process on further price hikes potentially going forward.