We have the first question from the line of Chandramouli Muthiah from Goldman Sachs.

I have 3 questions. First one is just on the alloy wheels business this quarter. I think into 3Q, the expectation was that entry-level products would be a slightly higher mix, and therefore, that might potentially impact alloy wheels, which might not be so apparent in entry-level cars. So just clarification on what drove the outperformance on alloy wheels? Was there a particular model and so on and so forth? And if you could also help us understand specific to alloy wheels, how much of the growth Y- o-Y was to do with aluminum-related price hikes that you were able to pass on? So that's the first one. The second question is just around commodities. If you could give us a little bit of clarity around what is the current level of inflation that you're experiencing? And how much of that you're able to pass on? And when do you potentially expect settlements with the OEMs on the last 6 weeks to 7 weeks of hyper commodity inflation that we've seen? And the third question is just a little more broader question around production versus growth. Historically, Uno Minda has been able to grow 2x, if not more than that in terms of top line versus what underlying production growth has been in the industry. This quarter, it looks like industry production growth has been in the mid- to high teens and Uno Minda's revenue growth has been closer to 20%. So is that, again, coming back to mix, which has been slightly more inferior this quarter? And how do you see that ratio going forward? So those are my 3 questions. I'll just pause back?

Yes. Thanks, Chandru, and thanks for all your questions. So starting with the first question, in the third quarter, entry level, you said might impact particular model, what is driving, etcetera, etcetera. So you are right. In terms of the alloy wheel application, right, alloy wheel versus steel wheel, the last quarter has been a little soft. It was lower by maybe a couple of percentage points because, as you rightly mentioned, the entry-level cars, obviously, the sales were higher. And that also is one can see from all the model-wise volume data, which has been already launched -- announced by SIAM. So that definitely had some impact. But as we have been able to get a little more businesses -- I'm sorry, I will not be able to share model-wise, but we have been able to get some business and for which we have commissioned this Kharkhoda plant as well. So some volumes have started from there as well. So that definitely has helped. In terms of the commodity prices, the roughly impact is around 6% to 7% for aluminum commodity price, which has obviously increased, so which will have some impact, maybe around 5%, 6% in terms of overall revenues for casting domain. In terms of the current level of inflation, I think I just shared you and you said how much we are able to pass on. So Chandru, as you know, that all the commodities, we have this clause of passing on to our customers. The price escalation or de-escalation, but that all happens with some time lag. So somewhere it is quarterly, somewhere it is half yearly, somewhere it is annual. But over a full year period, everything is passed through. So like in this quarter, whatever are the average prices, they will be applicable maybe for next quarter and wherever it's half yearly, it will go like that. In terms of production versus growth, historically 2x, yes, you are right, historical 2x, and we have always been guiding about long term at around over 1.4-1.5x. And we have also been saying that which should be seen on an annual basis. While quarter-to-quarter is important, we have to see on annual basis, plus -- to your point, while the mid to high teen is the volume growth. If we see pure OE revenues, what we have is almost around 22% growth of the overall 20 because as you have seen, the export growth and the aftermarket growth is not that high. They are actually around 7% to 10%, which is pulling the average down. Otherwise, if you see the OE revenues, they are almost around 22%.

We have the next question from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities.

Firstly, I mean, on the upcoming segments where the 4-wheeler EV powertrain new plant will start and also sunroof in FY '28. If you can just update more how are the order book shaping there? Any sense how big this business can be there in medium term? And also, sir, you mentioned recently about the new rare earth thing and also in the ADAS side, camera order wins also something on the future that can be a notable businesswise?

Yes. Mumuksh, so in terms of upcoming segment, 4-wheeler and sunroof, as we have said, that we already have an anchor customer for both these businesses. And normally, what happens is you start the business with an anchor customer. And then once the operations start, then you gradually try and get more business from other customers, and that's exactly what we have seen in some of the businesses which we have started in past and that's the way we have created multiple business. So once we have this sunroof and the EV business start of production, I'm sure that will give more confidence to our customers while we have been approaching all our customers in order to gain and build that order book, but it's a normal, what you call, process where we obviously have to sell our technologies, convince our customers, build that confidence. And finally, once they see the operations, that helps us getting the RFQ and so on. So both these businesses, as you rightly mentioned, they are on track as of now. In terms of the rare earth magnets, so what has happened is once that constraint sort of came, a lot of magnets, what we have tried to do is we have tried to localize. We tried to substitute the rare earth magnets with injection molding magnets and customers have been very, very supportive in terms of building alternate and testing and doing validation for those alternates. And we have been successful that some of those have actually gone into production. So to some extent, we have been able to de-risk the supply chain for rare earth magnets, which primarily gets consummated into our sensor business. And camera model, as you rightly mentioned, we have recently commissioned this camera manufacturing, we already have had an anchor customer. And as I was sharing, while we had anchor customer, now we have already secured business for another model now. So that's how gradually you build that confidence once you start, then gradually we try and get into more and more models and customers.

Got it, sir. So broadly, if I just to understand, broadly, all these new businesses can be something like a 4%, 5% of the revenue over the medium term, sir?

Difficult to say Mumuksh, yes, some of them maybe some of them because overall pie is also increasing, right? It is not that the pie is static. So pie is also growing. And in the growing pie to gain that kind of share, obviously, the businesses have to fight against each other to get that kind of share.

Got it sir. And sir, on the EV 2-wheeler has also been doing well. Just on there also, anything more on the product side where we are gaining more share because EV 2-wheeler per se is growing at 15%, 20% run rate, but are you seeing any more product getting traction?

Yes. So gradually, we have been adding more and more products in this Mumuksh. So you know that we have been working very closely with some of our customers on some of the products like motors and motor controllers and trying to sell that as a system. So we have been seeing some traction there. Hopefully, within this next couple of quarters, we should be able to maybe share further development because we are working, we have given our samples for testing. The customers are doing trials, etcetera. And once they are successful, hopefully, we will be able to convert that into some businesses. So we have been consistently building our product offering as well.

Got it, sir. Finally, sir, one last question. On the other expenses have increased sequentially by around 10% and also it's higher 29% Y-o-Y. Just can you help us anything to one-off call this, sir?

No, you are right, Mumuksh. So in terms of other expenses, there have been certain expenses which have been higher quarter-on-quarter because of some power and fuel expenses, which have been higher than you normally have your maintenance, early maintenance happens during the quarter. So that has impacted around INR 10-odd crores. Power and fuel was around higher by around INR 13-odd crores. Then because of volumes, your freights and other overheads were higher by around INR 11 crores, INR 12 crores. And there have been small, small pockets where there has been higher costs.

Got it. So part of that would get say, reversed in Q4, right, sir?

Yes. Obviously, some spares and all that which have been related to annual maintenance should don't expect the same levels in the next quarter.

We have the next question from the line of Siddhartha Bera from Nomura Wealth.

Sir, first question is on the exports opportunity. If you can just highlight exports out of India with what percentage for us? And given these trade deals which have got concluded, if you can just highlight any discussions we are having with global OEMs to sort of push exports aggressively? And how -- I think exports, I think, is a bigger part for our switch and seating business. So perspective for these businesses, how big is exports now? And any color you have in terms of the order book, how big can this be, say, maybe in a few years? That will be the first question. And second is, again, on these businesses, you talked about favorable customer mix. I mean, does it mean that one small customer has become big or exactly what -- how to interpret this favorable mix? Or is it in terms of profitability? And lastly, if you can talk about the capex plan given this new capex, which has got announced. So how do we look at the capex for this year and next year?

Yes. So, Siddharth, I'll go your questions one by one. So first was on exports. Yes, we have been talking to a lot of our customers, but this development has happened only in last 1 week. So our teams obviously will be now more aggressive in terms of pushing with all these global customers. Definitely, there's an opportunity to gain more. And if you see question was how much of exports is part of our revenues. If you see our group revenues overall, the 9-month physical exports have been in the range of INR 500 crores, INR 600 crores physically from India plus the overseas sales. Like last quarter, we said our total revenue, which is export from India plus the assembly what we do in overseas operations is almost like 10% of our total revenues. So this has improved marginally from previous quarter, which was around 9%. So export as an overall pie, we have been very, very aggressive. There have been discussions going on with some of our customers. But you know that because of these tariffs and all that in last couple of quarters, obviously, things have not been moving at the pace what we would -- one would like to be. But we do hope that once this clarity has happened now, the discussions will restart now. And in next 1 quarter or 2 quarters, we should be able to see some more traction going on with our customers. So export physically from India, we are very, very optimistic that this will definitely continue to see growth in absolute terms every quarter as we move forward. But new business, once we get it, it is not that it comes into production immediately in the same quarter or same year. Any new business you get that product has to be developed and to see in the top line, it takes at least 1 year to 2 years. So we have to be maybe a little patient to see a significant impact in terms of the overall global revenues and exports. In terms of favorable customer mix, what does this mean? Basically, you appreciate that we are working with almost all the customers in the country. So if any customer where maybe a little bit share of business is higher or if it does better, then it has a better impact on your numbers. So with some of the customers where we had got a little better market share, they have done better. So obviously, it has a good impact on your numbers. It's not about some small players getting into big, it's about some stable large players because that can only create some meaningful impact. Otherwise, small players may not create any meaningful impact on your overall top line. In terms of capex plan, yes, the capex which has been announced today, I'm sure this has been long in the works because everybody has been sort of pushing us that we have and only one line of LPDC wheels for last 3 years now in Gujarat, and we have not been expanding because of various reasons. Finally, we have got some traction. Hopefully, we should see some more business coming in route. And we are putting this plant, hopefully, in the next couple of years should be up and running. And by that time, we do expect more traction because we have already aligned to prove ourselves in terms of operation of LPDC wheels in Gujarat. So that also has built some confidence into our customers. In terms of how do you look at capex plan for this year and next year, maybe we'll be able to give you better color as we always do in our May con-call because we just started our budgeting exercise, and hopefully, we should be over by next 5 weeks to 6 weeks. So maybe in the annual results call, that's what we normally do, we'll be able to share a better visibility on the next year's capex.

We have the next question from the line of Mukesh Saraf from Avendus Spark.

My first question is on the 4-wheeler alloy wheels, the new plant that you've announced. I think in the past, you have mentioned that you're not expanding beyond the 25,000 a month on LPDC because it wasn't as remunerative to expand for many reasons. And now that you're expanding, I think you'll go up to maybe closer to 1 lakh a month on LPDC. So is it like a breakthrough that you've had now with, say, the non-Japanese customers? And also, where would this plant be set up? Would it be a new location, say, in the South, for example?

Yes. Any other question, Mukesh, you had?

Yes. So, the second question is in general, on the capacity utilization. So while we have seen lighting, we have commissioned a new plant in Pune and switches, you have another one coming. I think in some other categories like seats, for example, you've been growing now double digits for the last 3 quarters, 4 quarters? And safe sensors and controllers have been growing quite well and it's probably 1/3 of your other segment now. So just trying to understand your capacities and the utilization levels for some of these other segments? These are the 2 questions.

Mukesh, so I'll go one by one. So, you are right that 4-wheeler alloy wheel, as I also said that for the last 3 years, we have not been investing in that LPDC and we have been trying to prove ourselves and try to get some traction with the customers. Yes, there is some positive traction with our customers in terms of pricing. And also, we have got better discussions going on in terms of a little bit of exports as well because that is also gradually on to LPDC side. And we are also targeting some of the players who might be currently importing the wheels into the country and the discussions have so far been encouraging and motivating. So it was like whether you wait for all the customers to get business and then start construction or you take a call and try and get more and more business. So I think at the end of the day, the Board decided and Board took a call to go ahead with this project and see how best we can capture the market in the next 2 years by the time this plant come into production. That's in terms of the alloy wheel.

Plant sir, and this will the plant be in the South or?

Yes, the plant, the location is mostly going to be likely in the western part of the...

Okay, Western part. Yes, sure.

And in terms of capacity utilization, it varies range business to business. Some businesses, capacity utilization is at around maybe 80%, some businesses are already at 90%. So it's a broad range of 75% to 95%, I would say, in terms of capacity utilization as of now.

Okay. Okay. Will we see some capex on seats or on the sensors, controllers, electronic side of it, given the growth is strong there, and we haven't really done much, say, in the last year or 2 years in terms of capacity.

Yes. So Mukesh, the endeavour always is how do we try and deliver more revenue from the existing facilities through debottlenecking, through incremental capex, through sustaining capex. And once we reach a level where no further growth is possible is that's when you sort of take a call, this is good enough for maybe a year or 2. It's a high time that you have to start thinking of a new plant. That's where we try and commit. Otherwise, we don't want to build capacities and let it lie idle for some time. So that's how we try and optimize our capex.

We have the next question from the line of Aditya Jhawar from Investec.

My first question is the growth in LMT was quite strong at about 26%. Clearly, I think you mentioned that the 2 new plants got commissioned. But it would be great if you can quantify the impact of aluminum price increase that we saw in this quarter. That is number one. Number second is that if you can quantify the PLI benefit. So as we talk to OEMs, a lot of the OEMs are taking the bulk of PLI benefit. So what kind of PLI benefit we have accrued in this quarter and for 9 months? That was my second question. Yes.

Yes. Aditya, so in terms of growth in LMT, as I shared, the impact and aluminum price is around 6% to 7% aluminum prices for the quarter. So obviously, that will be the impact in terms of the revenues as well. And in terms of the PLI benefit, we have not accrued anything in quarter or 9 months.

Okay. Okay. Fair enough. If I can just squeeze one question.

Yes, sure.

Now just a little bit of a broader question. Now when you look at our kit value across different subsegment of 2-wheelers and 4-wheelers, we have done exceptionally well by adding more products. But it would be great if you can give some color that, for example, if you look at our SUV, compact SUV, we supply kit about 125,000. In SUVs, it's about 240,000. So in terms of our existing relationship with OEMs. So, there would be customers which have a higher share of business and some customers with a lower share of business. So if you can give some indication that maybe at about 60% market share customers, we have a high share of business and the remaining 40%, the scope of growth is relatively high. Some broad sense specifically in 4-wheelers, if you can give?

Yes, Aditya. So in terms of Kit value, definitely, we have been trying to gain more and more. But you are also right that in some of the products with some of our customers, our market share is better related to others. So our first goal always is in the business we are in, we need to have at least 30% share of business. That's where the target is. There are businesses where we are less than 30%, and we have been incrementally growing over the last few years and trying to capture more and more. Also, there are pockets in terms of customers where there is opportunity to grow more, where we have relatively maybe a little less share of business, say, for example, some of the customers who might be importing as of now or have their own ecosystem of manufacturing. So there, our share of business is a little less. And also, there are customers who might be actually having a CKD so there also, there is an opportunity to sort of gain a little bit more market share. But to answer to your point, yes, there are pockets where our opportunities to grow market share where we are actually lower.

If you look at our relationship with OEMs, we have a very good relationship with other than Korean OEMs and Korean OEMs market share and some other OEMs would be less than 30%. So is it fair to assume that OEMs where market share of those OEMs is 70%, our share of business would be high, about 30% to 40%. And the remaining 30% OEM, our share of business will be lower, something broad bifurcation in whatever way you can give?

Largely, largely, yes. Because you look, in the 30% we spoke about, there are a lot of these premium manufacturers as well, right, German OEMs, etcetera. There also, if you see, they are largely importing very less localization is there. That also has been growing. So the presence there is also very limited. So there also, we are trying to discuss trying to gain an entry somewhere. So there are pockets like that where we can try and get some more business and improve our share of business overall.

Okay. That's insightful. Final question again, on the 4-wheeler alloy wheel business. Like if you can give broad sense that what could be the asset turn and how different the margin profile would be as compared to company average, especially when we are considering LPDC?

Yes. So asset turn definitely in casting is low. The asset turn in this DPR, what we have prepared is obviously going to be around 1.2 to 1.3. And as you move forward, it improves a little bit with debottlenecking, etcetera, etcetera. So obviously, to get to a hurdle rate of our returns, the margin has to be higher, and that's where the margins here are obviously better than the company average margins to make sure that you get your target ROCE.

We have the next question from the line of Rahul Kumar from Nuvama Wealth.

I have one question on the lighting segment. So how much would be the LED penetration in 4- wheeler and 2-wheeler lighting? And how do you see the scope for further increase in content per vehicle?

Sorry, so Rahul, in terms of LED penetration for overall 2-wheeler and 4-wheeler, obviously, 2- wheeler is higher, almost at around 60%-odd and 4-wheeler is lower at around 30%-odd. There is no formal obviously, data. So you can maybe assume a range plus/minus a little bit. But directionally, the opportunity for LED penetration in PV is more, and that's where you see that it is gaining speed with a lot of LED lamps, etcetera. In the PV for the tail lamps, you see the long tail lamps. So that's a new trend. They are all LED lamps. So the market is actually catching a lot. And what has seen is that in terms of pass cars, you will see that at least there is a LED penetration in terms of the headlamp. You have a DRL almost in all the cars that’s LED. So it has been consistently growing. But maybe a little more insight, we'll try and give you when we have in our next call.

Thanks, Swapnali. I would like to thank everyone for joining this call. I hope we have been able to respond to most of your queries adequately. For any further information, we request you to please do get in touch with us directly. Thank you.

Thank you very much. On behalf of Uno Minda Limited, that concludes this conference. Thank you for joining with us today, and you may now disconnect your lines. Thank you very much.