Ladies and gentlemen, good day, and welcome to the Q1 FY 2023 results conference call of Samvardhana Motherson International Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vivek Chaand Sehgal. Thank you. Hand over to you, Mr. Sehgal.
Thank you very much. Good evening, ladies and gentlemen. The board approves the first quarter results. I'm very happy to explain to you that this is the highest ever sales in a quarter, including when in our earlier lifetime of Motherson Sumi Systems. I'm very, very pleased to tell you that the demand is very strong and robust. We are on our toes to keep up with the changing demands of the customer because of certain challenges on components and things like that. These challenges are basically multiple movement of currency and things like that and also logistics. There are some ports which are going on strike. People are a bit agitated because of the high inflation etc. in those countries.
Ladies and gentlemen, the line for Mr. Vivek Chaand Sehgal has got disconnected. Request you all to please stay online while we reconnect the line. Thank you. Ladies and gentlemen, thank you for patiently waiting. Over to you, sir.
Thanks. The good news is that the customers are very willing to support the cost pressure, only they are requesting for valid proofs, and that takes time as multiple moving parts and challenges. Future looks better and better as the world grapples to solve the challenges and demands for the higher value cars augurs even better for us. Thank you, and over to you for your questions. I have Pankaj Mital here. I have Kunal Malani here. I have Rajat Jain and Laksh Vaaman Sehgal to answer your questions for you today. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then one on their touchtone telephone. An operator will take your name and announce it during the question queue. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to the participants, anyone who wishes to ask a question may press star and one at this time. Reminder to the participants, anyone who wishes to ask a question may press star and one. The first question is from the line of Siddhartha Bera from Nomura. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. Sir, my first question is on this reporting structure. You have this time separately reported in a format. There is some clarification required. For example, in the consolidated reporting numbers, if you look at the revenues as per SEBI and as per PPT, while the revenues are similar, there is a difference at the EBITDA level. If you can just help us clarify that, why is that different both for the consolidated as well as standalone numbers?
Thank you. Kunal, can you take that, please?
Yeah. I'm assuming you're referring to slide 24.
Yes.
Right. The revenue is there. If you get to look at the SEBI reporting, you will find that in the segment accounts. The segments will look exactly the same as what you have in 2024. If you can highlight where the gap is in.
Okay. Basically when we just as per the SEBI reporting format, the EBITDA comes to about INR 1,077 crores. But as per this slide, it is INR 1,151 crores. Just trying to understand why is this a gap?
No. As per SEBI format, if you look at there is interest as a one. I mean, I don't know how you're treating the other income portion.
If you look at the segments again, you will see two line items which says interest income and other income.
Correct.
Those are the two lines that we are excluding from the computation of EBITDA to reach to INR 1,151 crores. You may have taken the whole other income out of it, because there are some portions of the income which is still more operating in nature but classified under other income. Hence that portion is still getting included in EBITDA. The specifically the interest income and what is really other income is what is getting excluded, which is in the segment accounts.
Okay. Got it. Basically that is not coming in the revenues while that is coming more at the EBITDA level.
That's it.
Okay.
Second, sir, I mean, is it possible to indicate the revenues, like you have been doing for the past levels also for the SMP, SMR and PKC?
Look, we highlighted this all the way back in January that we will be moving into this new format. You will get a little bit of flavor of what you're asking for in the SMRP BV results, which should be out pretty soon. And then in the last appendix of the presentation, you would also see the historical for each of the division. We wanted to move to this new format. In case there are any specific aspects that you want to discuss on the new format, we can do so.
Now the [CODM] as per, you know, the accounting side has already changed into this new format.
Okay. Okay. Understood. Okay, sir. Thanks. I'll come back with the team. Thanks.
Thank you. Participants, to ask a question, you may press star and one. The next question is from the line of Joseph George from IIFL. Please go ahead.
Thank you. I think I have one question. When SMRP reports its numbers, will the segmental be split into SMP and SMR or will it be vision systems and modules and polymer in line with the consolidated reporting?
Kunal, is that to you?
It will be Vision S ystems and Module and Polymer. As you would expect, the erstwhile SMP would largely be aligned to module polymer and the erstwhile SMR would largely be aligned to vision vertical. There will be some minor differences, but largely I would say it's aligned with those.
Understood. Thank you. That's all I had.
Thanks.
Thank you. Participants, to ask a question you may press star and one. The next question is from the line of Saurabh from Ambit Capital. Please go ahead.
Hello. Hi, sir. Good evening. Sir, just like you helped us understand the SMP and SMR breakup. Would it be possible for you to help us reconcile the revenues from various entities into division-wise? Basically, I just want to understand how have you know, compiled the data division-wise, which was erstwhile being reported as per the entity-wise. Just help us understand how is the revenue flowing now so that we can kind of align our estimates according to the division-wise going forward.
Simply put, what was erstwhile SMR is now part of vision systems. What was erstwhile SMP is part of Module and Polymer and what is erstwhile PKC is part of wiring harness. That's the simplest way to look at it. Obviously now you're getting a full picture view of what is wiring harness even beyond PKC, which in our earlier disclosures used to end up being in others. Hence, our, you know, acquisition that we had done of MSSL is also part of wiring harness. MSSL is part of wiring harness. Our wires business is part of wiring harness and so on and so forth. This provides a much more comprehensive view of the entire division and all its subcomponents that add up to it.
Which was not there earlier when it was just a legal structure, disclosures that were going on. Specifically on the Modules and Polymers besides SMP, our other international businesses, you know, whether in South Africa, Hungary, or our India businesses are also part of this. Same applies for vision side where, our India businesses are also now part of it. The other things you would imagine is now a smaller number to what was being disclosed earlier. Though, if you add the SAMIL portion, the numbers again start looking larger. That's the SAMIL inclusion that has happened, which then has a lighting business here, elastomer business, the metal side, aerospace technology and so on.
Got it. Keeping aside the entity division-wise break up, so when I was looking at the SAMIL standalone figures, so basically there has been some disconnect in the current representation as compared to the presentation shared in the fourth quarter FY 2022. Could you please highlight if there is any disconnect on this end?
The presentation given in FY 2022 was under the old format of SMR, SMP, PKC. It was not under the new division format. So far I'm not sure which one are you referring to?
Basically, what I'm saying is, excluding the SMR, SMP, PKC business, I'm talking about SAMIL standalone business. Basically in the fourth quarter FY 2022 figure, SAMIL standalone figure was INR 1,611, while currently in the first quarter we've reported it as INR 1,618. Sorry, INR 1,631. The difference over here. Similarly for EBITDA margin as well. Basically in the fourth quarter you had reported 18.2% as EBITDA for fourth quarter FY22, while currently it's showing as 14%. There are multiple disconnects. If you could help us understand how have been...
How have we, you know, transformed those figures into these figures so that will help us get some clarity on the accounting part at least.
The EBITDA one I can quickly tell you the 14.2% that you are referring to has a note where we have computed the margin keeping the exception of the 14%, we've kept the margins keeping the exception. If you remember in quarter four we had highlighted this INR 65 crore of rental income that for the nine-month period that we had received given the demerger was affected in that last quarter. That's how the 14 %is. The like to like comparison was between 14% and the current quarter. That's why we changed that 18% to 14% just to make sure that it was a like to like comparison. But the actual number will still remain 18% if you include the 65. Hope that clarifies the EBITDA piece.
Regarding the revenue part? Hello?
Yeah. If you see up till now in the earlier construct you would be seeing something called revenue from contracts with customers, which did not include some of the operating income, which is the line item which you would see called other operating revenue. Now, just to avoid that confusion and to take the entire operating income into account, we started disclosing the revenue from operations as the total revenue. That's the difference that you're seeing. Again, there is a note on this regarding the presentation as well.
Understood. Right. Sir, if I may continue asking questions, I have a few couple of questions as well regarding wiring harness business. You know, as addressed in the presentation, it says that we have developed some high voltage solution for electric vehicles. If it is possible for you, can you please elaborate more on the product, and when will we start commercial production for the same?
Pankaj, can you take this?
Yeah. These are the high voltage wiring harnesses required for electric vehicles and these are now already in SOP for one of the customers. For some they will be coming into SOP soon.
Okay. Sir, there was a, you know, some business question as in just want to get some clarity on the business part. As we know that, there has been increasing focus for weight reduction in an EV, in order to accommodate higher mileage, right? With increasing features, premiumization, electrification, we all know that, wiring harness content is expected to rise exponentially, right? In order to, you know, fit a higher wiring harness content into an EV where there is a requirement for lower weight, so how as an industry are we trying to solve this problem? Are we coming up with, you know, improved technology or, is it possible that, we might come with alternative solutions?
In this, Pankaj, you can answer that, but I would just like to add one thing that these are new technologies which are available with us in the commercial vehicle side. In the passenger vehicle side, Sumitomo San is also a great feature in this particular thing. We have multiple options, but Pankaj you could probably explain better.
Sure, sir. Also not just into the wiring harness, but what the car makers are looking at it is light weighting the whole vehicle because it's understood that when EVs come into play, there are more batteries, which are coming into the vehicle, which adds to the weight and also these much more thicker wires for charging connections. While, of course, adjusting more and more circuits into the vehicle, there have been more and more compacted cables and other electronic solutions which have emerged over a period of time, which we already support our customers with. Also our polymer division has done a lot of work to lightweight the products which we have been supplying. It's on the overall vehicle side, if you look at it, that's how the car makers approach.
Right. I got it. I have a few other questions as well, but I'll fall back in queue and come back.
Thank you.
Sure.
The next question is from the line of Chirag Shah from Edelweiss. Please go ahead.
Yes, sir. Thanks for the opportunity. It is one question I had. In the standalone business, if you look at it, there is a sharp jump in raw material cost. I think sequentially also there is a significant jump. Is it purely because of pass-through arrangement or this is a steady-state number from mix perspective? If you can help to understand, please.
Chirag, that's what I'm trying to say. There are so many moving parts that the customer needs to be satisfied, their auditors, costing people and all that. They need to be satisfied. The work for our companies is huge. That's why what we did is whatever factual numbers that are, we have given it to you. We have not made any provisions for the amounts that the customer have asked us to have agreed to. Till the money comes in, we will not accept that. Maybe in the coming quarter or the one, two, three months up ahead, we are going to be in a better position to recover all the costs. Pankaj, you can probably answer this question for all of us maybe.
Chirag, you are talking about higher material costs in consolidated level or standalone level?
Standalone. In standalone business. I presume it could be either because of the mix, is it stabilizing or lag because of the pass-through arrangement with the OEM, there would be some lag effect. I just wanted to understand what is the driver of this sequential sharp jump.
Maybe I'll give you a little flavor, Chirag. Number one, when you're looking at it from a historical perspective, specifically quarter four of last year, you should adjust the income levels for the one-offs that were there, the INR 65 crores that we spoke about, the rental income that came. Hence that's artificially depressing the raw material cost on total revenue if you have to look at it. Second, as you rightly said, there is a pass-through arrangement on the wires business, which has a lag effect. As the copper prices especially in the latter months came down, that lag effect will take into account only next quarter.
Okay. Secondly, sir, besides the broader question, especially from demand in Europe, any thoughts given the way the inflationary pressure and the various media articles that indicate at the end consumer level, there seems to be some pressure coming across because some of the other companies who are exporting to Europe are indicating some kind of discounting being undertaken at distributor level. Any communication you are getting from your end customer about potential slowdown for one or two quarter on volume side or the volume of it?
Chirag, as far as our information and our reports go, there's a marked improvement from April to June. June numbers are really phenomenal all over. The customer doesn't give you kind of a letter telling you what his demand is. He is actually working on the electronic this thing. So the kind of push that we are getting from the customer for demand is huge. I do not know how to answer that question for you, but our feeling is that the numbers are very robust. The demand is very strong. I do not know what the other companies are talking about. That's their problem. We are getting a very strong demand.
No, sir. This is helpful. You answered the question.
Chirag, if you want you can add to that.
Sorry?
Yep. Just one thing you may want to just assess is from the pipeline of production that we saw in the months of April to June, which highlight the strength of the demand. I'm presuming the OEMs won't be producing if the demand is not looking like. I understand the inflationary pressures, but as of now, with whatever insights from that we have from our OEMs, we are not seeing any decline on demand side.
This is helpful.
Yeah.
Thank you very much, and all the best.
Thank you.
Thanks. This is the highest ever we've done in a quarter.
Yeah.
I'm not saying it too, but as a number of
Yeah. Thank you very much.
Thank you.
Thank you.
Participants, to ask a question you may press star then one. The next question is from the line of Dhaval Doshi from Pinpoint Asset Management. Please go ahead.
Hello sir.
Hi.
Can you just provide us some insights about what is the kind of pass-through which is still pending? As you said, you're working with the customers and you've got certain approvals, but till the time we don't get that, we are not likely to book. Can you give some sense in terms of what that quantum could be, of material that amount could be? And, how do we see things going forward in terms of given copper prices have corrected. That once again will start reversing, right? Just wanted some sense about the overall quantum for this.
Yeah, I can understand that you would like to know some numbers over there, but that would be forward-looking statement, and we can't make that. Keeping ourselves under the guidance of what SEBI and all the big guys tell us to do. That's why we are being kind of management time accounting. If the money is in the bank, then we will take it into our books. But yes, we are discussing with all the customers, negotiating. They are of course offering certain numbers which we may not be happy with. There are certain numbers which we think they should give more, they should take cognizance of certain things in that area which are relevant to our need. Really very difficult to quantify it and give it to you.
I think by law, we are not allowed. Kunal, can you help me out on that?
Yeah. As you rightly said, sir, we can't give you a view on the exact numbers and we are being fairly conservative about it, is what I can tell you. As Mr. Sehgal was mentioning, we want to make sure all of this is in a well-documented written form, cash receipt, et cetera, before we can book any of these. Given our discussions that have been occurring, we are at least positively inclined towards this and hence we feel comfortable that we should see improvement going forward.
At least in terms of timing, can we expect this to happen in the current quarter?
Look, we can't predict really.
Yeah, we are trying our best. Just have a little bit of thought for our teams. The marketing guys, the finance guys, they are dealing with so many issues. Of course for them they would like to have the money into our banks as soon as possible so that they can book it. Please bear with us. We can't really make any statements on that.
Thanks. Thanks a lot, sir.
Thank you. The next question is from the line of Arvind Sharma from Citigroup. Please go ahead.
Hi, good evening sir, and thanks for taking my question. Just one question, on the segmented revenue for the standalone business, there's a big wiring harness segment. Could you elaborate, exactly what are the constituents of this segment, items behind INR 61 crores?
Kunal, I couldn't hear it very well. Could you take that question, please?
Yeah, sorry. Just maybe I'll paraphrase and correct me if I heard it wrong. You're asking what is the wiring harness in standalone?
Right, sir. The wiring harness, segmented revenue standalone, what are the constituents?
When we demerged the domestic wiring harness business, it still retained the export business, which is there in SAMIL as well as the wires business which is there in SAMIL.
All right. Is there any revenue which is inter-party transaction between SAMIL and Motherson Sumi Wiring business?
That is right. There would be wires that would be moving between SAMIL and MSWIL for which we had sought the shareholder approval as well, as you know.
Is it possible to share this quantum?
It's there as part of the earnings notice we gave earlier as it is in our monthly earnings.
Understood. Thank you.
Thanks.
Thank you. The next question is from the line of Hitesh from CLSA. Please go ahead.
Yeah, thanks for taking my question. Kunal, my question is on this, just wanted to clarify again because of the reporting. In wiring harness we have this export business out of India, the MSWIL 100% consolidation and PKC, right? You are netting it off, the wiring harness MSWIL stake from the net, you know, removing that from the JVP, right? That is how accounting is done, right? Am I right?
That is right. It will include also our businesses that we have in other parts of the world, which were all lying in others, as I mentioned earlier, which included our U.S. agricultural equipment business under MWSI, our Middle East business and so on. Hence those are getting reclassified from others to wiring harness as well.
Okay. In modules business, we have SMP plus the India polymer business, right?
Plus, there are other international business that I mentioned in other parts like Czech, Hungary, et cetera, which is at 100%. Other, it was lying in others which are again merged into Module and Polymers.
SAMIL would be largely others, right? That's how we will look at it.
That's right.
That's the breakup, right? Can you give us more clarity how should we look at the others, you know, the SAMIL piece of revenue, right? I mean, from a perspective of next two-three years, because this is like something which we don't have any clue. I mean, you'll keep on doing acquisitions and maybe growing the revenue, and this is becoming an important piece, right? Can you give some color on how should we look at this segment and how you're trying to scale it up?
Are you talking about other business?
Yeah, yeah.
Go ahead.
Go ahead, Kunal.
Okay. If you were looking at, you know, slide 22, 23, we've given a little bit of flavor of what others contain among the many divisions. We've given you a split of how this is across these divisions. Lighting is the largest division, constituting around more than 40% of the INR 1,600 crores that is there in others. It continues to have very strong order books. It's the largest LED player in India. It's also one of the few which has been able to cater to, you know, creating unique products both on the shock absorber as well as on the electronics and lighting piece for the EV segment in India.
The business continues to go from strength to strength and that's how you're seeing both the growth on the top line and the bottom line in the other segment, where lighting has a fair amount of share to contribute. Similarly on the precision and elastomer side, the elastomer has an inherent advantage in India and a fair amount of export potential that we are trying to tap into. We should see again a decent amount of expansion on that business going forward. Interestingly, even beyond automobile, we seem to be getting a good amount of traction on the non-automotive side as well. In aerospace, where we've announced we have closed or completed the acquisition of CIM Tools on April 6th.
When we had announced this transaction, the order book was INR 1,500 crores. Today the order book is around about INR 2,500 crores. That's a 70% increase in order book, and that is what we had anticipated. That is the purpose of this acquisition where by bringing Motherson in together with the same promoters, we should be able to position the business much more differently in front of the customers, and that's what we have achieved. Basically that's how you're seeing the order books sell out.
Finally, on the technology piece, which was an internal piece and, up till now where we are trying to now expand those revenues to non-group side, year- on- year we have seen a doubling of revenues occur. These are some of the key highlights at least for these divisions and our view remains that we should be able to see significant amounts of growth given there is a large amount of untapped potential in many of these divisions. Also from an acquisition perspective, you know, the technology of these would enable us to look at many opportunities in this space.
Okay. Thank you. Finally, on CapEx, can you give us the consolidated CapEx for this year? How should we look at debt number? I mean, this quarter it's gone up because of working capital, but will there be release of working capital in second half? Can you shed some color on that?
Definitely. I think, you know, our focus has always been to be debt free. Kunal, whatever we can share, please go ahead.
You would look at the current CapEx for the quarter is around about INR 350-odd crores, which is, you know, sizably lower than what we have typically expended. That's part of what we have done to make sure we are keeping our liquidities and keeping our business tight. The volumes were erratic and volatile, and hence we decided to conserve capital. Our guidance as we had given last time around was INR 2,500 ± 250.
We want to keep the guidance where it is given. At least we see that, you know, the next few quarters could be strong from a production perspective as some of the supply chain issues ease up. We're keeping the guidance where it is right now. Obviously we'll calibrate it as we saw in this quarter as well, depending upon how the actual volumes flow out. On the working capital side, you've seen the debt expand on account of increased safety stocks and increased inventory that we have to keep. Much depends on how the supply chain plays out.
Right now the demand is there, and customers have been asking us to keep these safety stocks in place just to make sure we are able to supply the material in time to the customers. Obviously as the supply chain situation recedes, we should see some amount of working capital decrease and hence decline in you know the related debt associated with it. Difficult to frankly predict when, where, how it will happen. Yeah, we are carrying additional working capital and hence additional working capital debt on that count, which at some point for sure has to normalize. When is unknown.
Great. Thank you. Thank you, Kunal.
Thank you.
Thank you. Participants, to ask a question you may press star and one. Reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The next question is from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead.
Oh, hi. I have a question regarding wiring harness business. Just a clarification, given that now we don't get PKC separate performance. The issues which PKC faced in last few quarters regarding meeting high expenses due to meeting customer timelines to launch projects, is that behind us? And 7.9% EBITDA margins for the quarter is without such expenses? If you can clarify on that.
Sure. I'll let Pankaj take the credit for that. I want to also inform you guys, as you have seen the annual report on the web, we have opened our manufacturing and quality control plant in Hamamatsu for Suzuki San. We are directly now supplying to Suzuki San in Japan. That has been covered in our annual report. Pankaj, go ahead and all credit to you. Yeah. The PKC improvements. Go ahead.
Yeah, Jinesh, all the ramp ups which we were doing, they have been smoothened out and we continue. As we had said that there were two customers whose ramp up had come together. One of the customers ramp up has been completed and the other customer's ramp up will continue as more and more models get added to it.
Okay. This quarter was hardly and there may be much impact in because of that.
See, this is a consolidated number, so when we look at the consolidation, it has got consolidation of all its the company's hundred percent businesses as well as all the joint ventures. If you look at it on an overall basis, two key macro things is of course there have been inflation for which we have had mixed successes so far, like Mr. Sehgal mentioned, that we can't book till we finally achieve our goal, which we believe should be the right thing to do as to how much. That's mitigation through recoveries from customers happened to some extent, but then this is a very important work in progress. There have been like for what we export from India you know this quarter the currencies like yen and euro depreciated.
China is still the Q1 was heavily impacted because of COVID as well as the commercial vehicle industry was weak. It was coming through recovery, but the Q1 became even further impacted. A few factors which are there for more or less, otherwise we continue working very, very hard all across because we know that there have been so many challenges to the whole industry with material supplies and other things that start to stop, volumes up and down, mix changing. Yet the most important thing for us is to satisfy our customer demand and continue to keep improving.
True. Just a clarification on what Mr. Sehgal talked about setting up plant in Japan. This is for CVs, adding harness to Suzuki. Is that motor plus four or for CVs as well?
These are the very light commercial vehicles which Suzuki San manufacture there. As you would remember, we have started exports to them because of supply chain issues which were happening. Then that was the time when the support was sought. We manufacture these harnesses in India and export them now directly to Suzuki San.
Got it. Thank you.
Two-wheeler sales. That's what we are doing.
Okay. Got it. Thanks.
Thank you. Participants, to ask a question.
Jinesh, just a point. We started with technology from Sumitomo San in Japan, brought it to India, then all over the world. Now it was great pleasure and honor that we could, with Sumitomo San knowledge, come into Japan and start supplying from there. It's a kind of a full circle there.
Thank you. Participants, to ask a question, you may press star then one. Next question is from the line of Ronak Sarda from Systematix. Please go ahead.
Yeah. Hi, I have a question on the reporting. Kunal, if I have to understand, now what would be the standalone wiring harness profitability, so that is difficult to derive the difference from the presentation, right? Because, the overall wiring harness revenue which you have shared, and if I remove the JV part of it, the elimination, that won't be the right way, right? Because, it would include multiple JVs which are beyond the wiring harness division. I'm referring to the slide 24.
Yeah. If you're referring to slide 24, that's on a consolidated basis. I thought you referred to something on standalone, you said. Standalone profitability is there in the slide 41.
Right. That's the revenue and EBIT which I have for the standalone business.
That's the revenue and EBITDA.
Sorry, where should I look for this number, revenue and EBITDA? Clause 41 as in.
In the segment reporting under standalone.
Oh, yeah, exactly. Okay. Yeah. Revenue EBITDA. Correct. Okay. Right. Let's say if I go back to the slide 24, breakup, when we remove the JVs consolidated with the equity method, this would include now the intercompany wiring plus multiple JVs which we would have in the Vision System and the China JVs in the SMR and SMP businesses.
That is right. That is right.
Some of the SAMIL businesses.
Yeah, absolutely.
Okay. When we say EBITDA is net of intercompany transaction, it is the pure profit of those entities.
That's it.
Okay. Sure. Okay. Yeah, that's it from my end. Thank you.
Thank you. Participants, to ask a question, you may press star and one. Reminder to the participants, anyone who wishes to ask a question, you press star and one. As there are no further questions from the participants, I now hand the conference over to Mr. Vivek Chaand Sehgal for closing comments.
Thank you. I think, if it helps, what we have done is we have booked all our expenses, all our decision is done. The number that will come right back from the customers for this period will actually go straight to the bottom line. That is why we feel that, the future is good, strong, and, the numbers are only gonna get better. We believe that, the demand is very robust. Our customers are time and again ensuring that we guys are, focusing on, what is important, and that is to be on our toes to supply to them what they need. These matters of price, negotiations and, getting all the instruments and all that, is a matter of time, which, we would rather make sure that it happens earlier than later.
With that, I think.
Ladies and gentlemen, the line from Mr. VC Sehgal has gone disconnected. Request you all to please stay online while we reconnect him. Thank you. Ladies and gentlemen, thank you for patiently waiting. Over to you, sir.
Yeah. Thank you very much. Actually, I was going to hand it back to you and, if no more questions then we are okay. Thanks a lot. Thank you very much, and please stay safe and healthy.
Thank you. Ladies and gentlemen, on behalf of Samvardhana Motherson International Ltd, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.