SPR Auto Technologies Limited — Q1 FY27 earnings call

Thank you, Sanya. Hope you can hear me well.

Okay, thank you.

Good evening everyone.

Thank you for joining us for this Q1 FY27 earnings call. We hope you have had an opportunity to go through the financial results, the investor presentation and the press release which are published on the stock exchanges and the company website.

I'm really pleased to share that SPR Auto Technologies has commenced the financial year 2027 on a very strong note and delivered an encouraging performance during Q1 FY27 as a company delivered a 51% year-on-year growth in on a consolidated total income and a 27% year-on-year growth in on consolidated EBITDA.

The strong performance is particularly noteworthy given the challenging industry backdrop characterized by elevated commodity prices, supply chain disruptions, and broader macroeconomical uncertainties stemming from heightened geopolitical tensions.

Moreover, commodity cost adjustments normally have a time lag of a quarter for regularization customers, thereby presenting a temporary gap in the margins.

Even with the above impacts, the company has delivered a strong financial performance during the quarter.

Consolidated profit before tax grew by 7% year-on-year in Q1 FY27, while profit after tax increased by 9% year-on-year.

The growth is after reflecting the flow through impact from EBITDA primarily contributed by higher finance costs to fund the acquisition of the automotive interiors and lighting businesses.

These elevated finance costs are expected to be temporary and should normalize as the related debt is repaid.

Both the GST 2.0 reforms, we are seeing a phenomenal growth in both the two-wheeler and the passenger car markets. We expect this volume momentum to continue for the above segments and also for the commercial vehicle and tractor segment through the throughout the year.

Our strategy to invest in technology and capacity ahead of time has really helped us to cater to these increased demands.

This performance underscores the strength and resilience of our diversified business model. Our continued focus on operational excellence and the effectiveness of our strategic initiatives.

We remain focused on driving cost efficiencies, streamlining the supply chain, integrating the low cost automation and digitization programs across all our manufacturing operations and optimizing inventory and logistics planning.

These initiatives are aimed at strengthening the structural resilience across the business and form the foundation of our established and growing presence in the auto components industry.

We continue to build on our strong leadership in legacy products, while steadily scaling our power train agnostic businesses, which of course enhances the future readiness of our portfolio.

In the legacy business, we achieved a key milestone during the quarter with the successful completion of the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited.

This acquisition strengthens our piston manufacturing capacity and also enables us to meet the growing demand for all our products.

I am happy to state that we are continuing to win new programs for hybrid and flex fuel applications from all our customers in the legacy business.

The integration of the recently acquired automotive interiors and lighting businesses progressed very well during the quarter. These businesses continued to deliver a strong performance, reinforcing the strategic rationale for the acquisition.

We remain focused on aligning the operating processes, leveraging cross-selling opportunities, and unlocking cost and operational synergies across the group.

Post our acquisition, the auto interior business has also won some very important customer programs to fuel the future growth of this segment.

The electric motor and controller business has been continuously exceeding all the targets that we have set for the businesses at the beginning of this year.

Also, the high precision injection molded components business has also witnessed a very significant growth during the quarter.

We also continue to make a very steady progress on all our group-wide capacity expansion programs. These investments are designed to support customer programs, enhance capacity availability, and create a stronger platform for future growth across all our products.

All our businesses, including the legacy engine components business, the automotive interiors, lighting, the high precision injection molded components and the EV motors and controllers, continue to perform very well during the quarter. The power agnostic business now contribute over 35% of our consolidated total income, while nearly 60% of the overall business is positioned to remain relatively insulated from the impact of EV penetration.

This reflects the steady progress of our diversification strategy and the increasing strength of our group.

We can continue to strengthen our ESG credentials through focused investment in renewable energy and robust sustainability practices.

ESG remains a very strategic priority for the company, and we are pleased to report that we achieved a CDPB rating for climate and water disclosures. We obtained our TUE certified sustainability assurance. We secured certifications under ISO 14064, ISO 50,001, ISO 46,001, ISO 17,029, and ISO 27,001.

We were also recognized with the with an Ecovdis bronze medal, putting us in the top 35 percentile globally on sustainability achievements, done in Bradstreet's highest ESG rating of two in India, and a CII award for corporate sustainability, further reaffirming our commitment to responsible business practices and long-term sustainable value creation.

We have also continued our journey of winning.

Many awards from all our customers across the country.

We have also got our T-SAC certification done and are happy to state that from a cyber security angle, the company is well positioned to be able to counter any possibilities in the future.

Looking forward, we remain focused on disciplined execution, strategic investments, and sustained operational excellence.

Backed by a diversified product portfolio, long-standing technology partnerships with global industry leaders and deep customer relationships, SPR Auto Technologies Limited is now well positioned to drive its next phase of growth and create sustainable long-term value for all our stakeholders.

I thank you all for all your continued support, and I'm looking forward to taking your questions and request the moderator to open the floor for question and answers. Thank you once again.

Hi team, congratulations on the improvement in ankle and performance. So my first question is ankle has introduced next time.

Yes

Yeah.

Hmm

Yes.

Yes sir. Antiline Global has introduced several next gen interior technologies over the past few quarters, like lectrochromic sun visors, cockpit solutions integrated with human machine interface, emotional lighting, etc. So, to what extent does SPR India has access to these technologies today and how are they being localized for the Indian market? Do you see these differentiated capabilities becoming a key competitive advantage in winning new businesses with customers?

You know?

Yeah. Thank you, Radha. Uh, you know, we have an access to all the technologies that are globally available within the globally available and tested within the Antolin portfolio. We have, as you all know, that we have already signed a long-term TLA, you know, which is a, you know, complete licensing agreement. And we have all the solutions available. In fact, we are working on a number of programs with end customers for various HMI in India.

initiatives as well as, you know, the newer programs for headliners, the Imarsa technologies and others, which is all been tested with customers and we are looking forward to, you know, once they fructify then we'll be at the right position to come and inform all of you with regards to all the new businesses that we are working on. So, but we are happy to state that we are working on all the technologies. All the technologies are seamlessly available to us.

And we'll be probably amongst the front runners to, you know, introduce some of those technologies which have been time tested elsewhere in the globe in in with Indian customers and we are already working on it.

Alright sir, that's great to hear. Second question sir, Eton USA has shut down its engine walls plant in the last calendar year end. So are you witnessing a boost in exports due to this and apart from this, what are the other key growth drivers in the export segment for pistons?

Yeah, so Eaton is basically mostly in the engine valve segment. They don't, they don't, you know, operate on the piston side. But as far as the engine valve segment is concerned, we do have the growth and we are working on number of initiatives to be able to meet our customer programs. you know, and the mobility solutions of Eaton has been now sold to Dena, as you might have heard. And we have to yet to see as to what exactly is the strategy of Dena to grow the business here in India.

As far as India is concerned, I think we lead the stack with a fairly good market share across all customers and across all industry segments, and we are fairly well entrenched with most of our customers to be able to cater to their demands.

Understood sir. So last question is Taka Hata Global has a lot of products in non auto like office automation, measuring instruments, etcetera. So are we supplying these components from the Indian entity to our customers as well? And what can be the scale of non auto portion of the business in the next three to four years as compared to where it is today? And what are the delta in margins of non auto compared to auto?

we already supply to non-auto components we also make non-auto components in India. We already supply to medical industry, we supply to sports industry, we supply to music industry. but as you know the these segments do not have very high volumes, they are all low volume segments and you know, so that way you know, for example, the music industry we supply the complete keyboard for you know,

Uh, some of our customers like Yamaha and others, which is, uh, you know, the keyboards, etcetera, they're not sold in millions, you know, it is not like in automotive. So it will be on a lower side. We don't normally give the breakup of this segment, but it's a sizable segment for us and it's a good margin business for us. Thank you.

Yes

Thanks, Thanks a lot, Radha.

Yeah, we, uh, see, we are already, uh, you know, working with our customers on the cafe norms and based on the new cafe norms that have been released, uh, we are already, we've already submitted products which are under testing and validation with the customers. And, uh, you know, most of these, uh, products require a different kind of an approach with regards to, uh, you know, frictional reduction, uh, as well as reduction of, uh,

you know, exhaust gases and others for which a completely new technology has to be introduced in terms of coating and in terms of, you know, the piston ring manufacturing strategy. So all this has already been done. We have already invested ahead of time and the technology is all available within our, you know, manufacturing setup that we have in Ghaziabad and Bhagirathi. And our engineering teams are well, you know, have well progressed with the

development of these technologies. So we are, we are well entrenched with all our customers.

Yeah, to some extent, yes, because with all the technologies, the cost is also more, the realization is also more.

I would say that we are leading the game.

Well, if I've understood your question right, you are asking me how we are safeguarding with regards to newer M&As and, you know, doing it at the right deal price and all that, right?

Yeah. So we have a very, you know, very detailed working that we do with our M&A team. And the M&A team looks at multiple angles, not only the angle of, you know, multiple on EBIDA, but it's a it's a very detailed exercise that we do with regards to the overall strategy of investment. And, you know, we of course take all the future outlooks in place and we look at the current situation of the industry as well as look at the future outlook.

Look at the situation of how the industry is growing over the next 5 to 10 years time and then, you know, do a lot of forecasting to be able to take a decision regarding a M&A direction.

But it has been a sizable business because see this again as I said this is a segment which is growing for us and if I give one figure it will change tomorrow morning because it is a continuous growth that we are having both in terms of the compressor industry, the marine, the defense and the various other applications like snowmobiles and others. So at this stage to give any number percentage to this will not be correct because we expect this percentage to be it's a sizable.

business now. Over last four years I think we have grown almost at the rate of 15 to 20% in this particular segment. And you know, we have entered into various applications including long moving applications and others. And all this has really helped us to maintain our growth trajectory and also maintain you know, continuous growth which is you know, better than the in better than the market growth.

You know, we have always maintained that we want to outgrow the end markets.

Thanks, thanks a lot, Gokul.

You know, we we normally within the quarter we don't give the breakup. The first half you will get the breakup. But you have the breakup of the end of last year and you can see that more or less that kind of a trend is being maintained even today because we see an all-round you know, growth across the auto industry. Thanks to the GST 2.0. As a result, you know, we see that the end markets are really doing well.

And we are seeing a full growth in across all the segments that we operate in today.

we have significantly improved, we have significantly improved the interiors business also. And that has come with a lot of you know synergies playing out as well as we have streamlined a lot of things with regards to you know the fixed costs and we have taken a lot of actions with regards to improving the cost structure of the company which has really helped us to improve the margins. As of now I can say that we have

was the double digit figure and we are, we are in the early mid teens, I should say.

Hello.

Yeah, I will. Let me attempt to, you know, answer your question. You know, basically if you see, the industry was also carrying a good amount of stock. We go by the manufacturing that has been done, not by the sales, because sales normally carry a lot of stock coming from the previous year. So if you really see the manufacturing, the manufacturing growth has been in the region of around 12 to 14%. And our growth has been over 16%. We have actually outgrown the industry even even as we speak.

And within the mix if you see, the two wheelers and you know, the two wheelers have grown by almost 20%. The the passenger car has probably grown by around 11%. from a manufacturing angle, 19% and 11% to be exact from a manufacturing angle. And but the you know, commercial vehicles in the tractor industry have grown by somewhere around 7 to 8%. And the other industries have grown by something like 4, 5%, you know, including the compressor industry. So as a result, you

You'll see a mix of all this coming into the end product this thing, but overall considering considering that, you know, the exports got affected because of the war situation, you know, where there was a tremendous impact in the on the export side. And also, you know, because of this sudden rise in the two-wheeler and the passenger car industry, you know, the manufacturing had to be a little bit tweaked towards the OE industry.

As a result, you will see that the growth impact is fairly significant considering that we have grown at this percentage, which is better than the market percentage even after considering all these segments of the market. And I'm happy to state that we have actually satisfied all the segments of the market with regards to our supply.

See, exports are still quite affected especially in Europe and in in you know, America. So, both US, America and the Middle East markets including Egypt and others, Turkey, Egypt and others have been badly affected. And you know, they have not still picked up and it's it's quite slow, I would say. There are still a lot of ambiguities in the overall supply chain.

with regards to what will happen with regards to a very seamless you know supply chain situation that we had earlier. So, I personally think that it will take some more time for things to normalize.

commodity prices have started falling. you know, it it had gone to unprecedented levels. You know, we have had to face a very unprecedented increase in the commodity prices. But we have been able to manage it and we see this now slightly coming down. So hopefully it should all normalize within this next quarter.

I I think I spoke in the earlier question, a number of technologies on which we are working on including HMIS as well as you know, the immersor technologies, the technology with various kind of you know, pillar trims, back plate back plate pillar trims, the the floor consoles, etcetera. So a number of areas on which we are working on.

Thanks a lot, thanks a lot.

Yeah, go ahead Harji.

Mr. Harsh, you are there?

Geology. Good.

No, this, you know, as I said, this is the impact which has, which has happened because of commodity prices, and also the impact of our, you know, interest cost that we have paid. So, to a fair extent that has been covered up already in our, as you can see from our financial results, is certainly better than, you know, if you really discount the fact that we have had to pay the interest on our NCDs. If you really take that out,

You'll see that our performance has been really in line with our previous quarter's performances and we continue to maintain those performances and I don't see any reason why we will, you know, drop further.

I I mentioned.

That we have a battery factor in it.

But it has a time lag delay. You know, normally there is a delay of a quarter with most of the customers, you know, that's how the industry operates. And that's why what will happen is whatever is the commodity increase that we have had this year, based on the average commodity price, we get the price increase for the next quarter and that gets covered in the next quarter. So, we already have a back-to-back arrangement with all our customers.

And not only for this particular business, even for our plastics business as well as our you know, motors business and the interiors business.

Well, last year we grew by double.

And I am hoping that we continue that trend. I am pushing my team for that, but then we'll certainly continue to outgrow the markets.

So I already replied this to the earlier question. Yes, we have improved the margins and we have we have improved from the earlier 78% that they were operating on to almost the let's say the early teams.

Yeah.

Jaharjee, go ahead.

You know, normally what happens is volume need not necessarily because the mix changes in the industry. You know, even all our end customers, if you see our if even if you see our end customers, the overall post GST 2.0, what has happened is the mix has changed. They've gone in for more production of low end cars. I mean let me not put it as low end cars. It is basically smaller size car, smaller size vehicles because

the demand for that is more both in the rural and the urban segment. So automatically the price per the realization price per piece changes as we have those kind of products going in more. And you will find that the by value the realization could slightly vary because the mix changes drastically.

So what is important is to maintain the kind of margins that we want to maintain, which we have been able to do that.

That's what I explain, you know, the commodity prices. You know, you have a quarter delay in the commodity prices and you'll see that.

No, that's what I said. It's a combination of a multiple combination of you know, mix plus volumes. And also the fact that you know, the when when I say mix, it also means a mix of you know, our overall business within our portfolio. You know, the kind of mix that we have. So, you know, overall it shows that some of our areas of

You know, let's say aftermarket business and other things have, you know, normally in the first quarter, we always have a lag. In the first quarter, if you really compare the first quarter of last year, you'll always see that lag.

Yeah, we have we our team is working on the acquisition part and you know, there is a lot of you know, work going on there. And we'll come we'll inform the you know, all all of you guys at the right time. As far as fundraise is concerned, I think we are progressing as per target.

Thank you.

Dhyanandan, Narendraji Boliya.

No, I think you are again, you know, the overall mix impact has an impact while the gross margin could show, you know, show the improvement, but if you have compared it, you cannot compare it sequentially with quarter four of last year because mix was completely different. You know, so you will have to you will have to see it with the mix of Q1. The mix of the market also makes a big difference. So both the things come together. Of course, we have, you know, our normal wage increases that we have

You know, every year, which happens normally during the first quarter, first of April, and that has a small impact on the employee cost percentage that you see. But otherwise, we are well within the targets.

Normally in those internal figures we don't normally give Nandan ji, but the good part is that we have been able to retain the team. The team is doing a fantastic job. All of them are very motivated to work in the in in the kind of atmosphere that we are presenting to them and the team is doing a fantastic job.

Yeah, thanks a lot, Nandan ji. Thanks.

Can you come again? There was a small drop in your voice.

How about

India production nahi.

it varies yeah it varies you know product to product it varies. Some of the product they you know you know when the demand is very good in the end markets then those products goes within maybe less than a month's time. But if the products are you know depending on the kind of stock levels that they operated across various operators across the country it varies. So it varies from time to time but on an average you know you can you can see the kind of

volume growth that Suzuki is having and we are growing quite well with them. We have a fairly good market share.

even others, even others, everywhere it is the same story. See on an average, you know, the product when we supply, we of course do lot of things to supply them, you know, there are also requirements that we should supply just in time as the manufacturing takes place. But post their manufacturing how much time they will take to supply to the end market. Now that is a question that you have to probably ask the end customers, yeah.

So I think it's over 16%.

But it's

what happens is when the blending goes on a higher side, the product undergoes a change. Okay, you have to because of more water content and carbon content, you have to improve the kind of coatings that we have on the piston as well as on the rings. So, we have already tested all the products that is required by our customers right up to E85. Now, the strategy of what they want to introduce into the market will depend on various geopolitical situation sorry, the political situation.

situation in the country as well as the end customers market needs. So as far as we are concerned, we are ready with the products. Every product, you know, every segment of the product, whether it is for E20 or whether it is for E40 or whether E85, will undergo a change and the price is different because of the content change that happens. So with most of the customers, we have already signed off, the products are all tested for our product.

I don't know about what other products have an impact because of E20 or E40.

should get addressed quickly and hopefully, you know, the customers will start growing their business, you know. As far as we are concerned on the flex fuel side, we are completely ready.

That's what I said. I think I answered this question. I don't, I think it requires different kind of plating and we have enough capacity for that.

I think I answered the question.

Yes, I think I answered this question. It is a mix of, you know, both the, you know, the commodity, the product mix as well as the commodity impact. Both are there.

Hello, you know.

And we have normally a gap in our recovery with our customers, as far as I explained. I think I explained this in the earlier question.

Obviously, we are not going to lose our margins.

Net debt is around 550.

Our net debt is around 550. You can see it in the balance sheet that we have declared already.

As of June, yeah, as of this month, it will be even better.

Yeah, yeah.

Normally it has a, you know, you have a gap of, you know, quarter. So we are hoping that it will get, it will all get normalized in this quarter.

You know, it it is a mix of the end market that is happening in exports and also the you know, the issue of some of the people vacating capacities. As you heard in the previous question, you know, Eaton has closed down some of their plants for engine vans in the US. So, it's a mix of both, but you know, what we see as a as a possibility for us is that the end markets will recover because once the geopolitical situation improves, it will it will

certainly recover and the possibilities of markets opening up for us is always there and we are already working on it. So both the things seems to be quite positive for us looking forward. So I don't see any major issue. If you see even under a very tough

geopolitical situation the whole of last year, we delivered almost 2 to 3% better results in exports coming out of different segments of the market that we have been able to develop. Now that and that also was for partial of the year. So for this year, I hope that we'll get the full year advantage, full year benefit. At the same time, we are continuing to grow into newer segments and newer areas and with newer customers, which will really help us to grow the export business. So frankly, I see it as a very

very positive side for us.

We have had clear agreements with our with our technology partners. And we have always worked in with within those precedence of those agreements that we have in the previous years also. So whatever you see is always relative to the previous years and I'm seeing that I'm seeing that it is going to be positive going ahead so I don't see any issue there.

So it's purely a market mix situation there. And you know, the product mix also. So that always if you really compare you have to compare it with the first quarter of last year. Don't compare it on a sequential because always in in April we do have drop in the mold sales and others. So it always happens that way.

Yeah.

Yeah, it's purely a sales mix. I don't think there is a major issue on any drop in prices.

It was only because of a ramp up because of new you know investments that we have done in Coimbatore that we have been able to double the sales last last year. And that's only you know that was only for part of the year because we commissioned it sometime by end of December only. So this year we'll get the full benefit of the full you know capacity that we have created there. And we are really progressing very well in the very first quarter itself we have done quite well.

Thanks Viraji

Yafrid ji, please go ahead.

Ya Preet Ji, Please Go Ahead.

Frankly, there are, you know, over, you know, many, many actions due to which this starts happening. And, you know, it not only takes, you know, is not only related to actions on the shop floor, actions on improvements on operations, improvements on supply chain, improvements on, you know, some of the insourcing that we are planning. Lot of, lot of, lot of, lot of actions. So, it will, it will

It has a time period for that and over a period of time you will see the improvements happening.

Further.

See, capacity is something that we continue to keep on investing. As I said, you know, we we bought the Sunbeam lines, we got a fantastic capacity for for this term. So, this capacity is a dynamic number, we keep on changing. So, we we have to continue the investments and continue to ensure that we are able to meet our customer demands. So we are putting all the money at the right place and ensuring that we are able to meet the customer demands. Happy to state that in the first quarter we have met our customer demands.

And they have maintained a fairly good mix so that you are able to maintain a margin.

All all all.

Everywhere we are, we are putting in a lot of money. That's what I said in my speech that there are capacity expansion programs going on almost in every place.

Right from, you know, our plastics business to motors controllers to, you know, even our interiors business and also our legacy pistons business.

Yeah, yeah.

We you know, if you really see Antolin's business, Antolin's business has been quite, you know, they have a fairly good market share with all the other customers, all the customers. And you know, we have maintained those market shares and we are seeing how we can go further. And as far as we are concerned, we are we have opened up all the possibilities to invest and all our customers know that. Customers know us right from the beginning. You know, almost all the customers are similar. We have contacts.

with all the levels of the customers even you know at both for our legacy business as well as all our other businesses. So we have a fairly good confidence and customers have a good confidence on the SPR auto technologies that we'll continue to invest and make the right investment for them. So we don't give the exact figures but we are continuing to invest and you will see it at the end of the year you will see all the details.

Well, I hope we can. So we are pushing the teams and we'll continue to see how we can make further progress on our margins. We

you know, we have number of actions lined up and I think most of them are all of them are working, which is seen by the result and I don't see any reason why it should not further improve.

No, no, all the all the subsidiaries, all the subsidiaries have done well.

from the mind.

Yeah, yeah, they've everybody, everybody has got a good, good margin improvement. So I'm, I must say that all the, all the companies have done really well.

Yeah.

Yeah, Nikunji, please go ahead.

We don't normally give this breakup. We are looking at various things. You know, see, money is the money is completely fungible, you know. We already have money sitting in our balance sheet. So, we do have plans for, you know, further investments. We have plans for, you know, the repayment of debt. At the same time, we also have to continue to invest on all our businesses. So it's all it's a mix of everything. And the good part is,

As that it will be put to very good use and it will be put to the areas of growth. And we continue to look at excellent business opportunities ahead and we are quite confident of using the money less.

No, Nikunj ji, normally the acquisition, you know, has to stand on its own legs with regards to all the parameters that we have in our, you know, evolution. We completely, you know, ensure that it falls into the respective parameters that we check on. And only after it has, you know, we tick mark on all the issues related to technology, future growth, markets, and so many other possibilities.

is that we really fix it. It could be a 300 crore or it could be a 500 crore or a 1500 crore. So we can't, we can't really go by that. The good part is that the company now has a good appetite and it has a good means of managing a fairly good appetite in terms of, you know, managing their mandate. So we'll continue to do that till the time we know that for sure we are able to, you know, service it well.

And especially for all our stakeholders.

We have a very clear parameters on that, very, very clear parameters internally. And you can always work out the net debt to the equity that we have. So it's fairly very low.

Yeah, it could even be lower than that. You know, I don't think we'll live with that. It's very less.

It is present, it is only 0.2. So we don't see any reason why we have to go even up to one.

And we are not fishing from my side. Now balance sheet, yeah.

You mean investment in the legacy business?

just to answer this question, Nikunj ji, we are continuing to grow our our margins, you know, you can see that our, you know, at a consolidated level if we are able to maintain the high teams, I think it's excellent possibility and it gives us a lot of opportunity within within the group to do many things, both in terms of improving capacities as well as in terms of investing for the future in future M&A.

Thank you Nikunj.

Yeah, see, we put our, you know, electric motor and controller facility. We have, we are probably one of the very few who make both the motors and controllers together. We have a complete lines, we have a couple of lines for electric motors and controllers. Electric motors stand alone and controllers also. And as far as electric motors is concerned, we make traction motors, you know, we can make PMSM motors, non-PMSM motors, ferrite motors, as well as, you know, the synchronous ferrite motors as well as others.

For the two-wheeler industry, the car industry, that is the passenger car industry, and also the truck and the bus industry. And we already have products which are under various stages of validation with various customers. So it's, I would like to state that we have really grown very well in this and we have almost become a very sizable player today in the motor and controller supplier, as a motor and controller supplier across the industry.

So, uh, you know, we don't normally give the market share, obviously because this is changing by the day. We are getting new customers, it's changing by the day and it's really not right to give one number and then tomorrow say a different number. So it's we are as yet not giving any kind of those details because it's, uh, it's evolving and I am very happy to state that last year we doubled the turnover and we continue to grow very, very fast in this segment.

No, no, I'll tell you, Ravi ji. If I add one winding machine, capacity will increase by more than, you know, 15%. So I can't give the capacity number. It's a figure which will keep changing as we keep putting a little bit of investment here and there. So normally we are not giving that because then that restricts our, you know, growth targets. And neither do I want to tell the team that we are not going to invest and not, you know, for me it's important to get the business and meet those businesses and we

continue to grow.

So I would

this I think I have answered in my previous calls. We have a, you know, good technology partner. EMF is based out of EMFI International is based out of Singapore. We have a fairly good technology availability. We have also tie-ups with Lingbo for our controller and we are able to cater to all the requirements that is there for the Indian market as on date.

Yeah.

Ya Bhikshu Ji

Engine

No, phase four expansion in in Takata has already started and we are building up the new plant just adjacent to our existing plant. We have another five acre of land which is adjacent to that piece of land that we the the factory that we had where we have got three phases of expansion already done. Now we have gone in for the fourth phase of expansion in in Takata. And similarly in TGPL we already have the two plants in Noida and in the second plant we we have complete capacity available and that

is getting filled up as we speak.

Yes.

Yeah, I think this is really interesting.

As far as the new business in Takata is concerned, I think we are expecting it to start generating revenues by next year. Early next year and TGPL is already on the process.

Almost on a almost on a monthly basis we have got addition of new customers happening. So it's very difficult for me to give any particular names and miss out the others which would be, you know, impacting my business. So kindly believe in us that, you know, it's not that we are double the volume just by talking, it is double the volumes just by getting new customers, right? So we are growing the business and it's going very well.

Yeah, it's going quite well and we are looking at, you know, all this takes a lot of time with regards to approvals, getting the clearances, making the dies, tools, and then getting the customer approvals, end customer approvals. So all this takes time, but we are progressing quite well and, you know, already the synergies have started and the works have, you know, the teams have started collaborating quite well. And the overall, let me put it this way, the integration of the team,

Within the overall SPR management has been extremely good and that's what is showing in the results.

Thank you so much Gokul ji.

Please go ahead. Yeah, please go ahead.

Yeah, it's a very interesting question. You know, from my from my standpoint, at least from the standpoint of the management, I can tell you that we have four or five clear parameters based on which we say that it has been successful. I already say that it is successful because the integration of the teams have happened well, teams are teams are working together quite well. There's a good collaboration. There's a good amount of culture that is getting, you know, developed in across all the companies that we have done a good job.

and day. Almost all of them have, you know, we are trying to build in the same kind of culture in terms of how we work. And, you know, it's going to be more about people that I'm going to say because automatically then once we know that our people are all aligned, businesses start thriving. So we are quite confident of getting that that to happen. We we provide a very, very professional management and that really helps everybody to grow within within the umbrella of it.

SPR.

Thanks Ajay ji, Thanks.

I I know we have overshot the time. I know that some of the people have also not been able to complete all their questions. I'd really request all of you to reach out to our secretarial department so that we can answer back one on one. And please do not feel otherwise that we have not been able to take all the questions because time wise we were limited. We have already shot by overshot by almost 15 minutes but I'm very happy to see the amount of questions that we have had and the kind of questions that we have had which is really which really talks to the

about how deeply people are really analyzing the company and that gives us a lot of confidence that we have great stakeholders who are supporting the business to actually grow and we thank you once again for all that support that you are giving us and thank you for joining us today and for asking such valuable questions. We hope that all your queries will get answered even if some of them have not been answered so far you can reach out and we'll answer it back and

Thank you once again for the, you know, Secretarial Cell and the investor relationship partners at Ernst & Young to have given the full support. Thank you once again for everybody to have joined the call and thanks, thanks a lot.