Sir, first question is regarding this new facility in Maharashtra for the 4-wheeler EV components. Just trying to understand, it's a sizable capex that we are earmarking here and the fact that our Khed facility also, we have a decent capex, which the plant has not started. So just trying to understand, do we have visibility on the kind of order book that you can mention because the capex now for your 4-wheeler EV componen ts will be like INR 1,200 crores, including 3 facilities. So what gives us confidence to set up a second plant while the first one is still under construction? Wouldn't we want to rather stagger it and kind of use the first facility and then get to this one? So just trying to understand the thought process there.

Anything else, Mukesh?

Yes, the second question is like you had kind of alluded to, we have I mean if I include the 2 facilities that you have started in 4Q, then it's pr obably 9 plants that will be starting in FY '27. And the capex for that you have earmarked for these 9 plants is probably INR 1,800 crores. So it's a significant amount of capex that is coming on stream in this year. So just trying to look at how do you look at the execution for this? Obviously, it's be phase-wise, but what kind of growth can we assume across these plants in the next couple of years in terms of the ramping up of this INR1,800 crores of capex? Yes. So these 2 questions from my side, if you could give some sense.

Thanks, Mukesh, and very, very valid questions, both of them. So starting with, first, as I said, the second plant we are putting, we have got very good visibility on the new business for both EDU and the DST. We have been working with our customers. At this point, difficult for me to give a number for revenues. But be rest assured, there is a sort of a strategic partnership, specifically with the customer for the DST and also for the EDU. And both these plants, which we are constructing in Khed and also we will be now starting work in CSN, the capacity is almost there, right? So there was a request from a customer, in fact, a push that need to be closer to the customer and also could not have been done at the existing plant at Khed because of this plant has already been like earmarked for the existing businesses. So there was obviously a little less scope in terms of putting the DST line, etcetera. So considering all the strategic aspects, it was thought prudent that we put a second plant. Though, yes, you are right, there will be challenges which we have to seize because the same team will be responsible for commissioning of both the plants. But good thing is that one plant is getting commissioned in this year and another will be after 1 year. So they will be able to put their efforts very effectively. So in fact, once we commission the first plant, the experience also will carry on towards the second plant. So that was what gives us confidence, Mukesh. In terms of your second point, which is multiple plants coming in the stream. So you know that all these plants, what we have currently, they are across businesses, across different products, starting with wheels, lighting, switches, sunroof, airbags, EV products . So the way we are structured, we have separate business teams for every business. So if you look from a business perspective, obviously, there is a clear focus, direction towards executing and commissioning of those products. And there's no overlap in terms of same team being responsible for multiple plants. So that's what gives us confidence that there are separate teams, separate businesses who are responsible for execution and commissioning of those plants. And that is why we are very comfortable in terms of the execution, commissioning, operations, etcetera, etcetera. Now coming to a point on what kind of growth we're expect in the next 2 years. So we all know, Mukesh, some of these plants are building more capacity like the 4 -wheeler switch at Manesar going to Farrukhnagar. Today, we are constrained. Obviously, when we move that plant to a new location, we will not be constrained because of capacity. Same way the lighting 3 plants getting merged into Kharkhoda into single plant for 2-wheeler lighting, again, creating more space, right? So from that perspective, whatever is the growth market is giving us, we should be able to do it. Second, what I have just shared with you some of the business wins, which are more strategic like in the 2-wheeler, I shared a sizable business of almost INR 450 crores worth of revenues, which we will get and SOP in the next fiscal year. So all these things to deliver, we will need those capacities. And in terms of growth, as I said, this also is like increasing our share of business also because they are unserved models today. So all in all, these are a mix of business where we will see not only the growth in line with the market, which we have to anyway build capacities, but also in some businesses, we will be able to create or generate better SOPs. And third, there are some new businesses, obviously, which are starting the clean slate like the EV powertrain business or a sunroof business. So for the m, I think we have already shared with you what our kind of revenues we expect to generate.

Thank you, sir, for answering those questions. The participant has left the queue. We will move on to the next question from the line of Aditya Jhawar from Investec. Please go ahead.

Congrats on good set of numbers. A few things. Number one, that when you look at from a margin perspective, in Q4, typically, we have this debit note credit note for the entire year that get adjusted. If you ca n help us understand what kind of quantum was that? And commodity inflation, if at all, we saw an impact, how much of that it is and a little bit of a lag that typically we get. So is that, that Q1 would have bigger dent? First question is on margin, what ever information that you can share. The second question is on the green mobility. So if you can give a broad breakup that what could be the breakup of EV revenue? And does it also -- of course, it includes CNG, but does it also include hybrid and under which entities ballpark, it is getting booked? The third question is casting saw a good growth of about 18%. So what was the proportion of aluminum pass-through that we saw in this quarter? Yes, that's about it.

So thanks, Aditya, for the compli ments, and I'll go in the same sequence the questions which you asked. First is in terms of margin for Q4. And as we all know, that certain debit credit as you rightly mentioned, happened in Q4. And that's what is also reflecting in our numbers of Q4, which is 11.3% margin. Quantum of that is difficult to share, Aditya, because it's different for different businesses. Plus in Q3 to Q4, there not has been much jump because of whatever lag impact in Q4, you get Q3 prices. And Q3, you get Q2 prices. So from t hat perspective, there is nothing which was exceptional. Yes, there has been certain price settlement because of which there were certain incomes being accounted for in terms of customer price settlement in the quarter. In terms of commodity inflation, ye s, that as everybody knows, it has started hitting after the geopolitical issue, which has happened. So first thing first, what happens is when you see for the quarter from Jan, Feb, March and when you do for March, obviously, you had certain inventories being carried forward at the prices, which obviously were the previous war or the impact because of the commodity price, what had happened. So that also helped cushion impact to some extent in the March. But to your point, yes, there will be expected to be an impact in the coming quarters, which are expected to be sizable. But we are currently in the process of discussing with our customers that our customers have been very supportive. When we have this lag impact for a quarter or a half year, that is primarily in the normalized scenario, right? What we are currently sitting is not normalized, actually an abnormal scenario. So we have been discussing with our customers, how do we cut our price adjustment cycle? Can we cut half year to monthly, if possible, quarter to monthly ? So some of the customers have been positive with some of the customer discussions have been happening, and we still have like 1, 1.5 month for this quarter. And we are hopeful that the large part of our customers may broadly agree with the price correction or the pass-through to be on a shorter frame basis until the things get normalized. So our teams are on the job . And I'm pretty confident that we should be able to largely sort of address this impact of commodity prices, which, as you rightly mentioned, definitely is going to be exceptionally high in the quarter. And not only commodity prices, we also know that some of the labor price increases like in Haryana, the prices have been increased by almost 35%, followed by some of the other states like Gujarat. So all these impacts also are very sizable. And we are discussing with our customers, not only commodity prices, even some of these significant labor price increases, which are not normal. Normally, you expect labor price to be 5%, 7%, 8%, 10% kind of a thing. But 35%, obviously, is not something which can be absorbed easily. So all these things currently, our teams are on the job in terms of working with the customers, and to mitigate because they not only hurt us, they also hurt the Tier 2s, right, our suppliers in turn. So it has to be back to back, and that's what currently you are discussing with almost all our customers. Moving to green mobility revenue. I think I've shared all the numbers, in which entity it has been booked, ma ybe offline again, numbers can be shared with you, Aditya, if you don't mind. And in terms of casting, the growth is 18%. The impact of aluminum pass -through was roughly around 4% to 5% for the quarter.

Congratulations, sir, on strong numbers, and thank you for the detailed opening remarks. Sir, within electric 4-wheeler, considering the quantum of capex, which is being incurred, generally, would the gross turnover be 2x of the capex? Would that be a right number? That's my first question. Second, you indicated about the alloy wheel, how the penetration trends are recently. Can you approximately indicate for the 2-wheeler and 4-wheeler industry, how much would be the alloy wheel penetration currently? And lastly, on the labor cost increase, approximately what could be the impact in terms of the cost increase? That's all from my side.

Yes. Thanks, Raghu, for the compliments. In terms of 4-wheeler EV, you asked capex multiple for revenue. As we are just starting, so initially, we do expect the factor to be higher. But as we move forward, this will be lower because there will be a gradual localization of the components because initially, when you start, nobody would like to take 100% risk and start completely localized, right? So you go in a piecemeal way. But in a medium to long term, we do expect the multiple of revenue to be actually more than 2x what you have just shared. In terms of penetration trends, the 2-wheeler alloy wheel penetration is somewhere around 70% and 4-wheeler EV alloy wheel penetration is somewhere around 40%. In terms of impact of labor cost, obviously, it is very, very sizable. And as of now, some of the states are stil l in the process of announcing their floor wages, which as per the new Labor Code, they have to announce. So the impact is obviously quite significant. It's almost like a couple of hundred crores for what we call Haryana and Gujarat. But still, there are some more which we expect to come on. So again, as I said, we are working to see how we sort of mitigate the impact of this labor cost and the commodity price increase.

The next question is from the line of Siddhartha Bera from Nomura.

Congrats on good order wins in the quarter. Sir, to start off with again on this margin part, I mean, in quarter 4 also, we did see some gross margin compression. Would it be possible to highlight what -- and I understand you had this bought out t rading part also, which started. So will it be possible to share how much was the drag because of this trading business and the lower pass-through of maybe aluminum in the LMT segment? And should we expect some normalization there in the coming quarters? And second is, I mean, we do have a lot of plants and sizable plants starting in the coming year. Now with many cost challenges, do you think there can be probably if there are any start -up costs and all, do you think there can be some pressure in the nea r-term margins as these plants stabilize? And lastly, on the exports part, we do have seen a lot of export orders also across switches, lights and seating. So how do you see this export picking up for us from pure India exports? I don't know, I mean 10% might include other entities also. So pure India exports, what percentage is it now? And where do you see that maybe, say, a couple of years down the line, yes?

Yes. So thanks , Siddhartha. And definitely, order wins, I would give credit to our teams for relentlessly working on new technologies, getting more business. So it's a great job done by the entire team, and definitely gives good visibility for all these capex growth engi nes, what currently we are working on. In terms of margin, yes, you are right. There is a gross margin compression of almost 1%. But because of trading business, I won't say much because it's very, very small. The trading business for this new what we spoke of, t he EV business, is just like INR 40-odd crores, INR 40 crores, INR 45 crores. So obviously, we don't expect that to be having any significant or a meaningful impact in terms of the RM cost. This is primarily because of some of the new businesses, which might be at the lower margins or some of the commodity price impact as well. In terms of the sizable plants coming in current year, yes, you are right. And this is what keeping the entire organization on toes and excited as well. There are challenges in costs, you are right. There will be start-up costs. We all acknowledge that. And I think we have shared this also that the margin guidance, what we are giving of 11% plus minus 50 basis points, that also includes the expected for the known start-up costs as of now. So we do expect to absorb all this in our current profitability. In terms of exports, how do we see pure export from India? So currently, our exports for last year was roughly around INR 600 crores. The actual physical exports from India, and I'm excluding the operations or the last assembly lines, whatever we have in the overseas plants, the ASEAN or the other regions. So this INR 600 crores, coupled with all the significant new business wins what we have shared, definitely in next few years, we do expect this to cross INR 1,500 crores mark based on what we know now. So that's where we are in physical exports from India to that. So I hope I've addressed all your questions.

Yes. Sir, if you can share the breakup of revenues also for the 4-wheeler and 2-wheeler segment in switch and light, that will be awesome.

Yes. I think I did share during the opening comments. But maybe this data, again, we can give you offline, if you don't mind.

The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equity.

Congrats on a large new order wins this quarter. Sir, just first on the 4-wheeler Inovance new order. Of this 1.85 lakh capacity, how much would be already booked, sir? And I just want to understand with this INR 400 Crore Khed plant and this INR 550 crores, what kind of revenue potential this plant can make sir, both the plant together?

And secondly, sir, on the infotainment side, there's also a major order there, one, sir. I just wanted to check whether this was a part of stand -alone business. And also, there was some 2 -wheeler orders. So if you can help us understand over next 3 to 5 years, how this infotainment business can change, sir?

Thanks, Mumuksh. Thanks for the compliments. In terms of the 4-wheeler Inovance, this capacity, what we have shared is the eventual capacity after the complete plant constructions. So obviously, initially, we don't expect to have full capacity in place. It will be a gradual sort of capital being invested based on the businesses we secure. So as of now, I would not be to share if the entire 1.85 lakh capacity, how much is currently booked or not booked because a s I said, this is currently in terms of a strategic partnership with our customers. And as of now, I would not like to comment on volumes because we know that volumes can potentially be different than what we see today. But in terms of your question on how much revenue it can generate, INR 400 crores plus, INR550 crores. In fact, I would also add another INR300 crores, which we are doing capex for the casting in CSN, which is also like the back end for this EV business, right? So it's not only INR400 crores, INR550 crores, plus it's also another INR300 crores casting plant, which will be serving primarily the EDU and the DST business. So in all, it is almost INR1,200- odd crores of capex. So with this capex, we do expect the revenues to be north of 2x, as I said, more than INR2,500 crores at least. And potentially, it can go even more than like INR 3,000- odd crores at the peak. In terms of infotainment, the new business which we have secured, which is expected annual revenues based on the customer guidance of volume is roughly around INR 600-odd crores as I shared. This will be not part of standalone consol. This is going to be part of our joint venture with Denso, in the Denso JV, which is not part of our consolidated revenues. It's part of group revenue. So you will see the share of profit loss as part of the joint venture, it will show there, but not part of revenues. And in terms of 2-wheeler light business, which I shared of almost INR400 crores, INR450 crores, this will be part of the stand-alone Uno Minda financials.

So sir, on Denso, infotainment part, just can you indicate how you see next 3, 5 years from current INR800-odd crores?

This business, as I said, will anyway get SOP in '28, 2029, which is a 3-year forward, right? But what it does is once we sort of have this business already in our pocket, I'm sure our teams will work together to see how we can onboard more customers, but I'm sure every customer would like to see the actual SOP also. S o while we do expect new businesses being secured, I would not like to be able to give you an exact time frame as to what will be the new business and the time frame. So as of now, this additional INR 600 crores will be in FY 28, '29 as I shared, plus obviously something which we will keep on working on with other customers because this is the product we have developed locally. And I'm sure we will be able to convince some of the other customers as well to get some business in our pocket. But as of now, no commitments on that.

Got it. So I mean from INR 800-odd crores, this could be plus INR600 crores. This could be more than INR1,500 crores by FY30 with the ramp-up of the orders.

Absolutely.

Got it. Just lastly, sir, on the margin side, despite the near-term challenges, do you see the 11% margin guidance for the full year, sir?

Yes. That's what I said, Mumuksh, plus minus 50 basis points, give us that benefit.

The next question is from the line of Nishit Jalan from Axis Capital.

Most of my questions have been answered, just a couple of small points. One, you are doing well versus industry in most of the segments. So just wanted to understand where are we in terms of market share across our main segments, which is switches, lighting and alloy wheels, in particular, right? And what will be our capacity in 4-wheeler and 2 -wheeler alloy wheels after expansion? Will it be 10 million in 2 -wheeler? What will be this on the 4 -wheeler side? These are the 2 questions that I had.

Thanks, Nishit. So market share across segments, as you would have seen, we have gained our market share across all the business, be it switch, 2-wheeler, 4-wheeler, lighting, alloy wheels. I think across the board, we have seen market share gains. We can share with you offline in terms of exact numbers. In terms of capacity for 4-wheeler alloy wheel and 2-wheeler alloy wheel. For 2-wheeler alloy wheel, it is going to be roughly around 9.5 million alloy wheel for the year. And for 4-wheelers, it's something around 7 million-odd wheels based on all the projects which have been announced.

Just one follow-up, sorry. You did talk about the pass-through of RM in certain cases, you have 3-month, 6-month contracts. So just wanted to understand, is this 3 months, 6 months dependent on commodities? Or is it dependent on segment as in 4-wheeler 6 months or 2-wheeler 3 months? And second question would be, you are growing much faster than the industry. So are you going deeper with a similar set of customers because you are very strong with few customers in 4 - wheeler and 2-wheeler? Or have you been able to get into some of the other customers also on 4-wheeler, 2 -wheeler, where we have not been historically very strong and our share of business is on the lower side. So any color on that in terms of which OEMs you are getting stronger or which OEMs we are still weak? Some color on that would be helpful?

Yes. So Nishit, in terms of pass-through of RM, 3 months, 6 months, it is not commodity-wise. It is customer to customers because every customer have their own policies. In fact, 1 or 2 customers have annually. That's what I said that we are working with the customers to see that these are not the normal situations. These are all abnormal market situations. They are not normal market price movements. There are abnormal price movements. So how in this time of sudden spikes because if the commodity prices, for example, goes up by 30% or 40%, nobody has a margin of that kind of a number to even absorb those costs. So our customers are really nice. I think we have been getting a very positive reception from our customers in terms of the years in terms of the impact and how do we find a solution in a win-win way so that it does not pinch not only us. But also our Tier 2 and Tier 3 because you know the automotive supply chain is very, very closely knitted and nobody has those kind of margins to absorb the inflationary pressures, which we have seen immediately after the geopolitical issues. In terms of going deeper with the customers, yes, we are going deeper with our customers and also a new customer, as I shared, some of the specifically the new-age EV customers we have onboarded. And we have got great insight, some of the new products which we have not been servicing them, we have got there. I would not like to name the customers. That's not been our policy. But yes, there is a mix of both going deeper as well and onboarding new customers as well.

Ladies and gentlemen, due to time constraint, we'll take the last question for today from the line of Neel Shah from Purnartha Investment Advisors.

I would just like you to shed some light on the INR 2,500 crore s fundraising that you have announced?

So Neel, if that's the only question, I'm assuming, this is only an enabling resolution we take every year. Even last year, we have done it. And this is a mix of all the instruments. It is not necessarily equity. It also covers NCDs and some other borrowings. This is primarily to get in principle approval from our shareholders. But if there is any specific fundraise plan, we will definitely have a separate communication to you. But as of now, there is no plan, and this is more of an enabling resolution. And if you see every year for the past few years, we have been taking this resolution.

As that was the last question for today, I now hand the conference over to the management for closing comments. Thank you, and over to you, sir.

Yes. Thank you. 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, members of the management. On behalf of Uno Minda Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you. u)lt•JI MINDA l ---o;:u vlN G TH E N E W-