Thank you very much. We will now begin the question and answer session. The first question is from the line of Chandramouli Muthiah from Goldman Sachs. Please go ahead.

Hi, good evening and thank you for taking my questions. My first question is just on the castings business, which is well levered to SUV growth in India. So, after a very strong run of consistent SUV growth, I think June 2025 seems to be the first month where SUV growth sort of became flat after a period of almost 3 successive years of strong sort of high single-digit to mid-double- digit growth. I just wanted to understand, near term, over the next 2-3 quarters, how are you thinking about castings growth? Is this having some impact on the pace at which alloy wheels and castings might grow in the near term?

Any other questions?

Yes. So, second one is just around disclosure in the annual report. I think you have disclosed that roughly 4% of revenue is being spent on R&D. But I think at the standalone level, it seems to be more like 1.7%. So, I just wanted to understand the gap there. And lastly, just wanted to request if you could repeat the split of other segmental revenues across controllers, sensors, ADAS, and so on. And also the split of the castings business between alloy wheels and other castings.

Okay. Good evening again. So, starting from bottom, split of others. I think I did give both others and castings. So, maybe you can take it offline. Disclosure in annual report, as you mentioned, standalone is 1.7%. I think this can also be taken offline. In terms of casting business, we remain very, very optimistic, Chandru, as you know, that we have currently significant investments going on in both two-wheeler alloy wheel business and also four-wheeler alloy wheel business. And both the expansions are obviously linked to some customer intents or POs in hand. As you know, we don't normally commit any CAPEX unless we have a PO in hand. So, from that perspective, we are quite optimistic. I think only challenge or the part which we are not able to comment on is that the application ratio. So, while the application ratio has improved significantly over the past few years, currently if you see, it is a little more stabilizing at the current levels of around 43%-44%, which as we have been talking globally, it is more than 2x of this. So, obviously, India will also have this run-up. But it's very difficult to say when this run-up, which quarter this will happen. So, we have to be ready to catch that upside. That's number one. And number two, in the past, we have actually been doing small, small expansions, like sequentially, one finished and the other started. And there has been a consistent feedback that we should look at larger platforms. So, that's why, if you see Kharkhoda, while we have eventually sort of dropped capacity multi folds, first phase we had only 60k and then gradually it can be taken on in a multiple of 60k, which are there to do smaller 30k multiples. So, from that perspective, we are quite optimistic on the application ratio. While you mentioned SUV sales is maybe taking a low growth or whatever number you said, you said about June 25. But this is, I think, just an aberration, we believe because application ratio, when you speak about it, is not necessarily only SUV. It goes through the Sedan or the compact cars or the luxury cars everywhere. So, application ratio is not something which we keep closely track of. And it's not actually necessarily have only alloy wheels. They also have steel wheels. So, from that perspective, we need to keep track of application ratio, how it pans out and how we can catch the opportunity. And same in terms of 2-wheeler alloy wheels also, recently in this last quarter, the application ratio has moved a little bit towards steel wheels, which as we hear from our customers, they do expect to move back to the alloy wheels in the coming quarters. So, from that perspective, we are quite optimistic. And as we move forward, and if we have to reach global levels of application ratio, I think there is a huge upside from where we are today.

All right. That's helpful. Thank you very much and all the best.

Thank you.

Yes, sir. Thank you and good evening. My first question is on the new plant that you are looking to set up for EV castings with Rs. 210 crores of investment there. So, could you give some more sense? Would this focus on both two-wheelers and four-wheelers? And also, what kind of order book we might have in hand and what kind of peak asset turns we can do on this kind of an investment on these castings?

Right. That's number one. Any other questions, Mukesh?

Secondly, it's on the acquisition of stake of Buehler, the JV that you have with Buehler. So, now that we have done FRIWO, we are also doing this. So, I just wanted to understand the thought process there. Both the JVs that we had focusing on two-wheeler and three-wheeler EV components, we have acquired or we are looking to acquire the stake there of the JV partner. So, just trying to understand the thought process there as to, is there a change in approach from the management side based on what your OEM customers are now doing with respect to in-housing or outsourcing? So, some more sense there would help.

Right.

So, these are the two questions.

Great, great. So, good evening, Mukesh again. So, new plant for EV casting, as we said, this is primarily a backward integration for our upcoming EV plant in Sambhajinagar at Khed for EV four-wheeler. And this casting, as you would have seen, they are very different castings than the normal castings which we do for like engine cover, or pillion rider cover, or lever. They are very simple things. This is a very, very complex 2,500 ton casting. So, this plant is in first phase directly sort of dedicated towards the EV four-wheel casting. So, if you see the big drivetrain under the hood, it comes with a complete aluminum casing. So, this is about the aluminum casing. Obviously, we do have flexibility to, once we set up, flexibility to sort of see if we can get any other components, but that's the first phase. And in terms of asset turn, since it's a high CAPEX business, the asset turn definitely is going to be lower. It's actually less than one in terms of the expected asset turn. And acquisition of stake of Buehler and FRIWO, I think they are two different things. So, FRIWO, what we have got is entire, not only the stake, but also the technology piece of it. So, we've got all the hardware, software, all the people, entire setup in Germany and Vietnam. So, from technology perspective, it's completely now on Uno Minda. There is no dependence on any third party. But Buehler, this is a little different because our JV partner here was obviously, this business was wanting some capital. And JV partner was having cash crunch even in Germany. And they were very keen to run the partnership. But because of lack of capital, the board said, why not we sort of take over the company and then convert JV into a TLA. So, unlike FRIWO, where there is no TLA, technology is fully ours. Here we will continue to have a TLA with Buehler. So, otherwise, there is no change in approach. As you have said, we are fully committed to all our partnerships.

Got it. Understood. Because the Buehler business, we haven't really seen a scale up there. I think it started about 3, 4 years back. We haven't seen much of a scale up. So, that's why the question there, but understood.

You are right, Mukesh. We all know this was the challenge we have faced. One of the exceptional cases which we have come across in terms of getting a big business, and we are trying to work on this.

Thank you, sir. Thanks for that. I will get back to the queue.

Thanks, Mukesh.

Thank you, sir. The next question is from the line of Aditya Jhawar from Investec. Please go ahead.

Hi, thanks for the opportunity. And congrats on a good set of numbers. So, the first question is, clearly, it was a very good all-round performance across businesses. And Harita has also started contributing well in growth in the last couple of quarters. So, the first question is, if you can give some color in terms of what kind of business wins we are having in terms of customers, what kind of customers two-wheeler, CVs and geographic split, and incrementally, how should we think about growth in Harita? That is question number one. The second question is, you answered partly the FRIWO part. But, Sunil, this is just about 4 years where we are taking over the company. From a joint venture, it is becoming a subsidiary, a 100% subsidiary. So, is there a change in thought process from FRIWO side? Or is there a conflict of interest with other JVs like Inovance? And incrementally, what about the technology sharing that we would have got from FRIWO? How should we think about it? You mentioned that you are procuring the current assets, but throw some light on that. And the final question is on our margins. While we have seen consistently our topline growth has been quite healthy in the last couple of years, but somehow we are not getting the full benefits of operating leverage. Now, as a lot of the growth is expected to come from new ventures, like the other segment which has new products, how should we think about margin trajectory? Keeping into mind the change in product mix and the benefits of operating leverage. That's it from my side.

Thanks, Aditya. So, let me go one by one on all the questions. So, first is what kind of business is in Seating? So, as we have said in the previous quarters also, in Seating, there has been a significant success in terms of getting the suspended seat business both in India and also exports. And also, we have been able to get into one of the incumbent two-wheeler OEM with a significant share of volume. And both of them have started playing part. And as we move forward, these are also still in the ramp-up phase. So, we are very, very optimistic in terms of the seating business. Like we said, we will double this business in five years. We are almost there. And let's see if we can replicate that in another five. So, we are very, very aggressively working on this seating business. And in terms of FRIWO, yes, you are right. There is a change in FRIWO side because FRIWO, if you go through their complete, what you call, website and announcement, they are also listed entity. They have actually been exiting businesses in last couple of years because of their own internal issues. It's run by a poor set of promoters, etc. So, they have their own compulsions and they have been sort of exiting the businesses. And we saw opportunity there because here it was not only the equity stake, but we got the entire technology part also. So, in terms of the motor controller software, which is the key here, in terms of all the technical know-how, in terms of all the people and the entire setup, which is there in Germany and in Vietnam, we sort of took control of everything. So, nothing is now left with FRIWO. And yes, you are right. This has happened in 4 years, but we actually saw it more as an opportunity than anything else. Coming to margin, yes, you are right. And we have been persistent. I think last year also we spoke about next 2 to 3 years is where we are in a super growth phase. We have like 13, 14 projects ongoing. And a lot of these costs, nowadays, actually, if not capitalized, they are all charged up to revenue. And all these projects, as and when they come into operations, they don't generate revenues or profitability. So, even if they generate some revenue, it takes roughly a couple of years to turn to profitability. And our target normally, as we know, is third full year of production to achieve the target milestones. So, they are initially a drag. And despite so much of investments ongoing, we are able to maintain our margins or our guidance margin. But as you move forward, if you split this into two, you see the businesses which are stable versus businesses which are either at the incumbency stage or in the ramp up phase, you'll see that difference. So, the earnings are actually growing. But because of this, it's actually been pulling down. So, in maybe short to medium term, maybe a couple of years, we do expect these things to stabilize. And you will see some, hopefully, the margin expansion as well.

Yes, that's quite helpful. Thank you. All the best.

Thanks, Aditya.

Thank you, sir. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead.

Yes. Hi, sir. Thanks for the opportunity. Sir, a couple of questions, first on this camera module localization. So, can you just throw some more color in this? How much are we actually investing? And in terms of ramp up, will this be visible in the revenue? Because we probably are already importing this. So, the benefits may be more from a margin perspective only. So, some thoughts there. How much? What are we doing there? Second, on the lighting segment. So, like you have also talked about a lot of tailwinds in terms of premiumization and new orders. And we have opened a new plant also. So, how should we think about the ramp up here? How is the order book? Can we expect the growth of 13% which we have done in the current quarter to accelerate further given these tailwinds? And if you have the four-wheeler, two-wheeler mix of lighting, that will also be helpful. And sir clarification on this trial period incentive. What was this exactly? Why did we get it now? These are some of the questions there.

Yes. Thanks, Siddhartha. So, going in the same sequence as you have asked some questions. So, camera module localization, as we said, which we just started. This is an in-house camera development at our R&D center. And this is just the start-up. So, as of now, it's both import also and local manufacturing also. And as I said, in the next couple of quarters, we will see a complete ramp up. Overall, you will not see a significant delta in terms of topline because it's basically localization. So, imports will be substituted to your own manufacturing. But there will be a less trading as we move forward. And moving to the next, which is lighting segment, new plant, ramp up. Can we expect 13% growth if I have? You said 13 or 30?

13 sir. So, this quarter growth was, I think, 13%. So, can we expect acceleration there?

Yes. So, definitely, we are quite optimistic and we are actually planning for a significant growth. But as you always know that the growth is dependent on the industry volumes. So, if industry volumes and that too the model we supply, if they grow definitely, we will continue to grow. But to ask to straight to your question, 13% growth possible or not, I am sorry. I will dishearten you in commenting on the numbers per se. But I can assure you, we will definitely outgrow the industry growth and continue to do so in this segment. In terms of two-wheeler and four-wheeler mix for the quarter, roughly, our Indian, so, overall, the sales was around Rs. 1,013 crores for the quarter. And Ankur, do you have two-wheeler and four-wheeler split?

Yes, sir, we have. So, domestic four-wheeler market did somewhere around Rs. 450 crores of revenue, whereas domestic two-wheeler did somewhere around Rs. 390 crores of revenue.

And in terms of incentives, Siddhartha, you know that wherever we are putting these expansions based on these ideas and so on. So, there are certain government incentives which were entitled to and which helps you sort of remain competitive initially because the incentives are also for a very limited period. So, we have been able to get certain approvals within this quarter which were sort of pending. And that's why that income of around Rs. 68-69 crores has been booked during the quarter, which was relating to period prior to 31st of March. And we thought it's important to sort of highlight because it's not for the current quarter.

So, this is part of the plant incentive and not the PLI. Is that the right way to look at it?

Yes, you are right.

Okay. And, sir, lastly, on this project expansion which you have put out in the PPT, I think there are some segments like Buehler motor and EV systems which probably are for the prior periods and not for this period.

No, it was put up because earlier when we said, if you see, it says to be spent over 5 years and 6 years. So, earlier only Phase-1 was commenced, and we have still not invested full money. Like UMBM, instead of 110 crores, the investment today is only Rs. 20-25 crores. And same for EV system we were looking at 150 or something like that. So, it is not fully done. Yes, Phase-1 is commenced.

Okay. Because, sir, start of production also looks like it's FY'24, it is mentioned. So, I thought it was probably something in the past.

Yes, SOP is done, but the CAPEX has not fully been spent.

Okay. Understood, sir. And lastly, sir, on this EVSE segment, how much was the contribution in the current quarter and how do you see the ramp-up for this segment?

So, as I said, as of now, it's very, very small volume because it's primarily going into the dealerships and the setup there. The SOP is roughly around 3-4 months due, which is linked to the OE launch of vehicle. So, maybe that time is a better place to give you some numbers.

Understood, sir. Okay. Thanks a lot, sir. I will contact you again.

Thanks, Siddhartha.

Thank you, sir. The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead.

Yes. Thank you, sir, for the opportunity and congrats on continuing the robust performance. So, first on the order books, sir, any update for the EV PowerTrain Inovance JV and the sunroof JV? And on the camera module, sir, do you see more opportunity outside the regulation part? Like, there are also CV regulations coming with ADAS in truck and buses. So, do you see that kind of opportunity also going ahead? This is the first question, sir. And the second is on the, we've seen a very strong growth in aftermarket this quarter. Any specific to call out, sir? And the third question is, sir, just on the Clarton Horn, sir, it's a loss making as on last year. Just wanted to understand over the medium term, what's the plan there for that business? And lastly, sir, CAPEX guidance for the next year, sir?

Thank you, Mumuksh. I think a lot of questions. Let me try and go one by one. I hope I don't miss anything. So, first question was the order book for the Inovance JV, EV products and sunroof. So, as you know, we have said in the last call also that we don't start a project unless we have an order in hand. So, for EV, we do have a PO in hand. We can't comment on the value because value again is linked to the quantum and the number of vehicles being made by the customer. And sunroof also, I said last time that we have started with one order and we already got the second model order, which is the same carryover model to another vehicle. In terms of camera module and localization and ADAS etc., yes, the camera module, what we are manufacturing is actually part of ADAS business, which is currently going into the reverse parking systems, etc. And the same camera shall be used for the sound view, 360-degree view, etc., etc. Aftermarket is strong growth. Yes, we have been aggressively working on our aftermarket strategy in terms of branding. You know, a couple of years back, we have initiated a complete branding initiative and exercise across various regions and onboarded experts in terms of branding. That has started reaching some sort of positive impact. Clarton Horn, the medium-term plan, definitely, as I said, our first objective is how do we consistently bring down the costs and make the business viable at the volumes currently we are today. So, at peak, if you remember, Clarton Horn used to do 21-22 million horns, whereas today we are at somewhere around 15-16 million horns. So, there is a significant drop in volumes there and we are trying to re-engineer the business so that it does not lose money at its current volumes. CAPEX guidance, as we said in the last call, which is roughly around 350 crores to 400 crores of sustaining CAPEX and around 1,300 crores of growth CAPEX. Ankur, I hope my numbers are right.

Yes. This is correct.

Got it, sir. Just one more, sir. On the airbags, sir, because now recently Maruti has launched a lot of models with the airbags. I just want to understand how do you see the growth there, sir?

How is the growth? Which growth? Airbag growth?

The airbag business, sir. Recently, Maruti has come up with a lot of updates on the airbags for most of the models.

No, so airbag is a business which has, I think, already taken up a significant jump in the last few quarters. If you remember two years back, there was likely to be a mandatory six airbags which was later withdrawn and it was linked to the Bharat NCAP ratings. And today, as we speak, the majority of the models do have four airbags. So from that perspective, the airbag business has actually seen a significant growth in the past few quarters and we have also put in a new plant, if you remember, in Neemrana. So that also is doing pretty well.

Got it. I mean, any broader numbers, sir? What kind of growth will be there, sir, in the airbags, sir?

You are looking for revenues of airbag business?

Yes, revenues.

Maybe that we can take it offline if you don't mind.

Sure, sir. And if we can take the last question, sir, on the sensors, I am sorry, on the rare earth parts, sir. Any impact on the sensor business because of that, sir?

Yes, that's what I said in my commentary that while we do not have any sort of rare earth magnets in a big way, it's only sensor business where we use some of these magnets. And so far, we have been able to manage our business through sourcing of these magnets from various parts of the world. And we have ensured that our customer lines are not impacted.

Got it, sir. Thank you so much for the opportunity.

Thank you.

Thank you, sir. The next question is from the line of Basudeb Banerjee from CLSA. Please go ahead.

Thanks, sir. A couple of questions. Just to reiterate the last question, you said Rs. 350 to Rs. 400 crore of maintenance CAPEX and growth CAPEX amount, I couldn't hear properly, sir.

Yes, around 1350. Yes, you are right.

So, combined, it should be Rs. 1600- Rs. 1700 crore for FY'26.

That's right.

And second thing, if you can slightly explain on that incentive part which you said this incentive is for fiscal '25 or accounted for March quarter which came into the P&L this quarter. So, this Rs. 69 crore is for the whole FY'25 and would be sort of recurring in …

Let me clarify. I didn't say for FY'25. I said it is for the period prior to 31st March '25 which is not only one year. It's actually longer period. So, what happens, Basudebji, is that whatever state incentives you are eligible for putting a plant, normally you get a final eligibility certificate which ensures or confirms that now the incentives will get disbursed. So, for one of the business, this was long pending. And we have finally got in this quarter and that's how this income has been recognized in the current quarter which does not relate to the current quarter and that's why we highlighted it.

And because so many new projects are also coming and many states give local incentives, so any such incentive on a recurring basis for next few years or this is complete one-off and nothing like that will recur back?

No, no. There are new projects which are coming. So, every new project will have some incentive. It's only that lumpiness comes in case there is a delay. And as I said, these incentives is what something which makes you competitive. Otherwise, at today's cost, it's very difficult to compete with a plant which is a depleted plant. And you know how competitive environment we work in. So, we do factor these incentives when we approve these projects or capex etc.

And like any specific aspect other than say seasonality for staff cost where sequentially revenue is flattish and staff cost up because of salary hike quarter, like your margin which was hovering around 11.5 and marching towards 12, that came back to sub 11% if I remove this incentive as you highlighted. So, anything other than that staff cost seasonality aspect you would like to mention that commodity pressure or competitive pressure, pricing pressure or other expenses?

Nothing which is out of normal. So, that's why we always say that our business is not a linear business. There is a seasonality involved and also seasonality involved in the way the business is being done. So, if you see last many years, 8-10 years history, you'll find Q4 margins tend to be on higher side and Q1 tend to be on lower side. The reason being in Q3 and Q4 you normally get closer with your customers on various price escalations, discussions, settlements, etc. So, comparing Q4 to Q1 is not something we would encourage because Q4 will have some of that factors playing a role which does not play in Q1. So, that's why it is important to see Q1 to Q1 and Q4 to Q4 and Q2 to Q2.

Sure and last quick question like many new foreign EV makers are now planning to set up or expand capacity in India. So, how are you placed to supply components to them because within EV other than Tata Mahindra, most of them are foreign makers, maybe the likes of MG, etc. So, how are you placed to take demand from those OEMs?

So, difficult to comment Basudeb, right now in terms of how the new players will work on in terms of their models because initially whoever sets up a base in the country who already has operations globally tend to sort of bring their existing capability and start with that because on a small volume it is not possible even for them to localize everything and these things take time to localize and sort of create some meaningful base. In terms of new suppliers like you took some names, definitely we are in touch with those customers but little premature to talk because even from their side, the plant is yet to come up which is still maybe like 2-3 years away.

Sure sir, thanks, all the best.

Thank you.

Thank you sir. The next question is from the line of Abhishek Kumar Jain from Alfaccurate. Please go ahead.

Thanks for opportunity sir. Sir, as EV penetration is increasing in passenger vehicle, how much benefit do you see in terms of the content per vehicle? If you can explain it to difference in the content per vehicle in Grand Vitara versus e-Vitara?

Abhishek, I can't talk about model to model in Grand Vitara and e-Vitara. We don't talk about customers and their models. What I can share is that if you see our presentation for last quarter, we have given separate fit value for separate segments. You see A segment, B segment, C segment, D segment. What is our potential fit value? If we have to supply all our products and these are primarily products which are agnostic to EV. On top of it, the EV fit value, what plant we are setting up in Khed, that itself will be around 1 lakh plus kind of a number per vehicle.

And in other product segments, we have seen a very strong growth. So how is the outlook for the growth in the controller, sensor and EVSE? And what is your plan for the E-Axle?

So E-Axle, Abhishekji, I just spoke about which is the new plant which we are setting up in Khed for which the SOP is expected to be middle of next fiscal year. And in terms of controllers and sensor, we have been working very, very intensively. You see, a lot of our new products are in controllers and I already shared some of the information. In case you have any questions on that, you can please ask. In terms of sensors, we are consistently being increasing our application based on also the quantity or the quality or even the type of sensors which we have been working on. So sensor business, it was maybe a Rs. 100 crore business. Only sensor and controller was Rs. 100 crore business sort of what you call 5 years back. Today itself, it's more than Rs. 250 to Rs. 275 crore business for a quarter. So from Rs. 100 crore run rate, it is already a Rs. 1,000 crore run rate.

Thank you, sir. That's all from my end.

Thank you.

Thank you, sir. As there are no further questions from the participants, I now hand the conference over to Sunil sir for closing comments.

Thanks, Palak. So at the end, I would like to thank everyone for joining the 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, sir. On behalf of Uno Minda Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.