Q1 21/22

Aug 10, 2021

Thank you. Good afternoon, ladies and gentlemen. Welcome to the call for the Q1 results somewhat concerning. In spite of having lost almost to 21 days of production under the unfortunate circumstances of COVID. I think Motherfend has delivered very strong results. If you look at it in the perspective that you lost almost a month, has almost gone without any introduction almost globally. And we still achieved 16.7 1,000 crores worth of our top line and our EBITDA and our debt listing has actually debt to EBITDA has actually come down to 1.1. Under those circumstances, the Board actually congratulated everyone and said Great job done. And we have to be very cautious and focused on the next quarter, the current quarter and the next quarter's earnings. I think All of you already know about the business and all that. So I would ask Raman, Pankaj and Kunal, Gova, all of you guys to also participate in answering any doubts if you have any. And thank you very much and stay safe. Handing over back to you. Thank you. So should we open for Q and A? Yes, please go ahead. Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. First question is from the line of Kapil Singh from Nomura. Please go ahead. Hi, sir. Good afternoon. Thanks for the opportunity. Sir, my question is related to the operational updates that we have given in the press release. So one broader question is whether when we look at the margins for the company, are there any structural factors in your view? These are all Operational challenges, in particular, we have shared that greenfield performance has improved. So if you could share some color over there as to where are we in terms of profitability for Greenfield, Because the profitability for Greenfields, I understand, has been lower than rest of the business. And Therefore, even if the performance improves there, the mix plant wise mix could be negative. So that's one area I wanted to understand. And similarly for PKC, we've also mentioned about certain operational challenges. So this pop up pass through. This takes place with how much lag? And higher logistics and product launch costs, if you can share some color on that as well? Okay, couple thanks for the question. 2, this is going to be answered in 3 parts by Vaman and then Gopa and then conference in terms of the release. Hi, Pavel. For the gain fuel plants, You know the exclusive condominium game streams, I think now we have stabilized quite a bit, so we become part of our normal operation. So to give you an idea, we talked about, of course, Keshe Kmet and Alabama in the past. These 2 have done well. They continue to improve the profitability levels and we are on a good path, quite satisfied with how the local management team It's continuing to build the capability over there and continue to show better performance. Out of these two points, I think Hungary was a lot mode affected with the customer, let's say, rearrangement of the program mixes and with some of it shutdown effect in all our plans. But these calls continue to hold ground strong and were able to beat with the market as well and could limit the impact. So there is customer feedback that they would like to catch up in the following quarters post this August break. Catch up on that last production the day that I. And we're quite optimistic that moving into Q3 and Q4. Like Pavel said, we have to be quite vigilant and the situation is quite dynamic. That we are hopeful that there will be a lot more stability in the following quarter. And we are not seeing any additional impact on just these two plants or something like that. It's been an overall effect in all the clients. That's for SMP and I'll hand over to Pankaj sir and Wazas for Topgapi KC. Thanks, Wavin, sir. Kapil, just to add, there is no structural change in the business model. And then the business model remains the same. As you have seen in the last quarter, the copper price reached the peak. And as Pankaj sir had explained in the previous call that the copper content in case of a commercial vehicle is much, much higher. While There is no general rule in terms of the customer pricing lag, but normally you have 6 months adjustment kind of a situation in the commercial vehicle segment. So if the copper price remains stable, I mean, that is the question. And then you will see a good part of it being recovered from this quarter onwards. Pankaj, first, you would like to go on? Yes. Generally, in Kadal, it's like 6 months average. So let's say from December to May, it will start flowing in from 1st July. That's how it works. Different customers, different models, but generally more or less 6 months averaging. And at current corporate price, about 80% recovery would be there. And then in coming quarters, 6 monthly impacts getting negative. And in this period, we also had You know, supply chain constraints, component shortages, which have been for varied reasons impacted by the special polymers from Texas. Hurricanes which have destroyed some of the facilities and the suppliers of components have not been able to come back. And from there, as well as we had 2 new orders. 1 was supposed to start a year ago, but due to pandemic, The launch got delayed and the 2nd launch was to happen this year. Both of them finally coincided and coupled with supply chain constraints had a very big impact on us. So which also took higher manpower costs and logistic costs, which are like one time, which should slowly get eliminated through this quarter. Thanks, sir. Secondly, I wanted to also know when we look at the performance for Q2 and Q3 onwards. Is the situation getting better? Or how would you like to guidance in terms of this whole issue that we are facing because some of the OEMs have come out and said that they are facing very large shortages as well in Q2. So do you see Q2 to be better or worse compared to Q1? And then Are we getting a sense that from Q3 onwards things will start getting better? Good question. Couple of your guess is as good as that. But there are 2 trends which are helping mother son. One, whatever shortages are there, they are it's generally seen that the carmakers are Pushing it towards the higher upper end models that they have because they have better realization with the same on the semiconductor or lasers or whatever shortages that they are. But having said that, we all have to be on our stores. And the product of Madhu san are very wide, so everyone has the same. But if you have more Questions on this and tell me, I'll direct you to whom the way you want. I mean, we are in August, so you will have some sense of how July August is looking like just directionally. Okay, which product? No, overall revenues. Then I have to tell you, I wouldn't be able to help you on that. But if you are looking for some more the same can be monitored. No, let me rephrase. I mean, what I'm saying is that We saw supply chain disruptions in June quarter. So is that A similar problem in the September quarter or it could be a are you seeing it to be a bigger problem in September quarter than the June quarter without mentioning our meeting and learning. August is mostly holiday in Europe. So the total base on the relief over there, if you can understand that. And that should allow us to also and all the carmakers to also make sure that there will be shortages, any inventory that to build up so that cars can be produced. I think the positive sign is that look demand is very much there. This is a solid way. And even if you look at the IHS forecast and anything that you're seeing, the same shutdown that it was saying that Q3 and Q4 should Eiza. So I think definitely the last quarter has been Q1 has been challenging. The Q2 continues to be a little bit because of the holiday session and everything that we have. And that's why I think they're saying that from September onwards things will get better. But it's a very dynamic situation. It's not something that we have visibility to and we will be the carmakers at this point. So we believe it's just waiting for this August month for the holidays to finish, September to start and investor will look at those things. But we are working in the meantime to feed with the market. Definitely you've seen the impact of that in Q1. I think again we are coming out of a global pandemic. So the Q1 as compared to last year, you can see we're already in a much, much better situation. I don't think people would have imagined that where we were sitting last year. So things we are optimistic, things are getting better and we will get a better grip of the situation when things open up in September. And then it's, I guess, as good as ours. Thank you, Aman. Very helpful. Thank you so much. Thank you. The next question is from the line of Nitin Arora from Access Mutual Fund. Please go ahead. Hi, sir. Thanks for taking my question. You touched base on the model part that lot of the OEMs wants the higher end models to be made in the scenario of chip shortages there. So just continuing with the couple's question and sorry for that. I mean just to understand one more thing on it. If I have read this correctly, more of the higher end luxury cars are getting made across the plants versus The lower end and given your cost would have not moved quarter on quarter, you cannot shut down the plant because It's a very dynamic situation. Costs cannot get cut on a quarter on quarter basis. Is it More of mix issue also, which has I mean, the cost would have been higher and the higher end getting made, lower end is not getting that much made. And the demand also is a little weak in the lower end versus the luxury. So, POS would have been hitting you more. Is that the right way to look at it and this mix issue should Well, there are too many moving parts in your question. Very difficult to hypothesize as to what your Zelle questionnaires. Okay. I'll put it this way, sir. Yes. Go ahead. Okay. I'll put it this way, sir, that if Higher end cars, higher luxury models of let's say any of your clients would have been made more because a lot of the OEMs are saying that because of the lower chip shortage, We are making the higher end models because the demand is very strong at those higher end models. And at the lower end models, the demand would have And I'm assuming your cost doesn't get apportioned according to the model which we are making. That must be at the plant level only, at the plant level cost. So I'm just trying to understand that one situation normalizes, when the chip shortage goes away So it depends upon the customer, but look, If you look at the basic difference between what is a smaller car and a bigger car, you can't say the smaller car demand is not there. The demand is there, but it's just that the customer allocates this more towards the higher end thing because it gets more realization with the same efforts. So it's just related to that. I'm not saying that the small card makers are going to go out of it. No, I think I'll just me some more color. I think you have to understand that we're not taking a static part, right? We are making instrument panels, door trends, wire harnesses, mirrors. So there's a lot of different products that are really going in and that's why we've always said that look we don't believe in just looking at the margin, we believe in looking at the roads because even some of the high premiumized vehicles. For us, perhaps they have moved. What are parts for that? So you may think that the margin looks lesser, but actually the return on capital is higher. So it's a very complex question that you're asking because of our diverse portfolio. If you look at our customer split, if you look at our geographies, we're extremely diversified. So whatever you're trying to ensure will not have a direct impact because of the advantage that we have of the diversification. And as you can see, that even though the volumes perhaps have come down substantially in the OEM side, our volumes have not come down as in the direct correlation of because of the diversification of products that we have. So generally, what we're trying to say does make sense, but it's not applicable in mother son Because of the high diversity in parts and customer portfolio and locations that we have, so we would need some really 3 d Cray Computers to Compute. Which model because you have to understand, we're supplying to pretty much all the models Okay. We have some part of the other going in. So it helps to take the pressure off when certain models are not doing well, Okay. And second, in terms of July August versus an average of last quarter, what's the visibility OEMs are giving In terms of production, I mean, if you can throw us some light in terms of in the situation. So for example, if Yes, the production visibility was OEM was giving 30 days. And I'm just putting a raw example, if you can help us in that way that Right now the production visibility is less than 10 days because of this chip shortage or it's closer to an average a month. So if you can throw some light on that, that will be really Thank you. Sorry to interrupt you, sir. Your voice is breaking. Sorry. Can you hear me now? Yes. This is since I break, sir. Can you please repeat the sentence? Can you hear me now? Is it without break now? Thank you. So I was going to say that there's no change in the way the customer is giving us the outlook. So they were giving us 30 days. They are still giving us 30 days. But there are that happened within those 30 days, which is dynamic of what we are seeing. So it's not that they've stopped giving us outlooks, But they are also saying, look, the chip situation is a bit dynamic. So what we are giving you for 30 days is changing as they're giving it. So We give 30 days, they give a week, they give daily. For us, we're also receiving every 2 hours for some of the exact specs that we need to make. So there's more uncertainty in what's changing, And that was difficult for us to plan around because you can imagine the workforces, etcetera, you need time to be able to be more flexible, be to the market, rearrange shifts. But if you get a change in the morning shift for the night shift, it's very difficult to go around and change all of that. So it's a dynamic situation. And again, it's not something that is usual. And what they're saying is that this should settle down as we move into the next quarter. Thank you, Vamil. Thank you so much for your answers. Thank you. The next question is from the line of Chirag Shah from EDELWEISS. Please go ahead. Yes. Thanks for the opportunity, sir. So my question is with respect to SMR and SMP, See, when I look at sequentially the revenue that SMR, SMP has done, it's far better than the volumes that your Our value addition content has gone up and it has helped us. Or is it driven by more bought out components for us? How should one look at it? Because your revenue profile and as well as your margin profile seems to be better than sequentially as compared to your customer. Raj, again, very tough question here, but I'm sure Bhavan has a good answer for that. But this is one particular fact which actually alludes to the fact that criminalization is happening. So that's what we have been saying. But anyway, I think, Vamil, you can take a hand also. Yes, sir. I mean, again, it depends that It's hard to give you an answer when you don't tell me which customer you're looking at, which product. And again, you have to understand that the customers in SMR and SMP are supplying to, There are different platforms. It doesn't the same platforms are not being supplied by SMR and SMB. It depends on that location, depends on how those things are doing. And SMR has a lot of more business, for example, in Korea, which S and P doesn't have. SMR has much more business in India, which Korea doesn't have which S and P doesn't have. So it's very difficult to look at SMR as compared to S and P because again the number of bought out parts Definitely the premiumization is definitely happening and that business has been with us also slightly longer than S and P. But difficult to compare SMR and SMP, but the SMR management team is Very, very the entire SMR, the backbone integration that we have, the entire wiring harness, plastic parts, actuator. These are all parts that we are doing ourselves. In S and P, there are still more bought out parts. So again, Difficult to compare the 2, but SMR has the team has definitely congratulated that they have navigated these turbulent times with a lot of control and being able to breathe much faster in the market. Yes. Thanks, Amit. The second question is on this bought out component. What are these components that you have that and there's a lot of equipment would be going in, in cockpit or something like that. But Why generally that bought out component share goes up when there is a higher premiumization in our revenue and vice versa? So, conceptually, So, because there are camera systems, for example, in we talk about mirrors, To give you a very simple example for you to understand, I'm seeing that low entry level cars are not having as many camera systems for actuators or power forward. They're more on the manual side. They don't have AC glass, which is the reflective glass, which is the bought out part. So it depends. As SMR is also going and going back to litigation, we started making some of our own glass, for example, in certain areas where it makes sense, some places we buy it. So we look at those examples of where it makes sense to do it. Some of them, they're IP For example, the AC glass is heavily IP protected. It's very difficult to break into that and you bought buy that part. But In S and P, there's that much more part because the parts are much bigger. So there are a lot more child parts. In SMR, the child parts are smaller and something that they were well integrated from the start. So again, very difficult to compare SMR to S and P, but SMR is quite vertically integrated and we do have a lot more control over the entire bought out parts at least on the lower side. As we go premium, of course, Like I said, EC glass and all this kind of other electronics, which we are not present in, they're all bought out parts in that sense. But even in SMP, can we presume that as you as premiumization happens, the bought out component tends to increase or in SMP, it is largely stable Because child parts would be common whether you make the high end version of a client or a, say, A3 versus A3. The radars, cameras, grills, so there's a lot of parts over there that as you go more premiumization of those parts. You are also being more bought out. Because if you look at it, these are more outside facing pressure parts, so the more electronics, etcetera. If you look at the premium vehicles, they have a lot more sensing technology than some of the other ones. But yes, the painted component, the child parts is plastic parts where they are mostly the same. The difference comes more in the electronics features. Yes, thank you. I'll come back from us. Thank you, I think. Thank you. Next question is from the line of Sonal Gupta from L&T Mutual Fund. Please go ahead. Hi, good afternoon and thanks for taking my question. Sir, just wanted to understand your statements around the PKC that you've mentioned in the presentation. And I think Pankaj sir has already talked about it. But could you give some more color? I mean, like primarily trying to understand this new product launch related costs. So I mean, like, Is this a regular feature for you or is this something really a one off? I mean, just trying to understand that Or are these in some newer facilities where these products are ramped up and therefore there is a higher cost per launch related cost? 4th actually, but I'd give Pankaj the chance to explain. I think Just understand that under these circumstances, we actually transported almost about 400 people from different parts of the world, majority coming from India to Serbia where this problem happened. It's a one off thing. But Pankaj, If you can explain it quickly, then I think everybody understands. Sure. Pazir mentioned that Sorry, can you hear me, sir? Yes, yes. Go ahead. Yes. All right. So as I mentioned earlier that we had got new orders. These are the OEMs and the products which we were not supplying earlier, those trucks. And One launch was to happen a year ago and the other one was to happen at this time. And somehow Due to COVID challenges, the launch got delayed and both launches happened at the same time. So we got into challenges mainly because there were supply chain constraints. There were components shortages during this period and which compounded the problem. And that's why we had these as a one off. These are not your question is, is it normal? No. These are not normal and they were not supposed to be normal because both the launches would about the year difference, 12 months difference. So one launch happens and then the next launch takes place. But this compounded the situation, and that's why we had these additional costs, which are run off. So okay. So like So supply chain constraints on the other hand, the supply chain constraints that are still continuing. And we do still see supply chain constraints happening. So it's not just linked to this launch. This launch has got compounded with that, But otherwise, supply chain constraints have also impacted our efficiency in other parts of the world as well. Exactly, Concurge, in fact, 1 year ago, we were breathing with the market. And since the launch got delayed, we actually had let the people go, which we have trained in that place because we have to be with the market. And then when suddenly the launch came back And then we have built real complication, but I think Pankaj and his team have done a phenomenal job, somehow try to keep the customer lines running. We've been everything, the delivery. So it's a one off thing for sure. But yes, These are things that we have to do because at the end of the day, you have to be on your toes. In these conditions, the last one and a half there and I think going forward another year, you're going to be on your toes. You have to be making sure that the customers trust in you is increasing. And we can clearly see that the customer is very, very happy. And also I think this particular Thing was actually a year of first time entry into a particular customer and a huge order. And it got delayed postponed by IRIA. So that's the thing that we face. But It's an opportunity. It's there. We will walk into a big customer in Europe, so worthwhile. Sure, sir. So just on that, like you mentioned that we had to, I mean, like, transfer some people from India and a lot of other places to Serbia to ramp up this order. And so this I mean like so basically we had some like you said and also because of the COVID last year you had to let go of some people. So is that the thing that there was a frictional sort of issue in terms of the manpower availability and that is what Related to the higher cost? No, call is it a frictional issue, I didn't understand that. But yes, we have to transport people from India to Europe. That involves costs. And people are coming from Brazil, from Mexico, everywhere to come and help out. That's the nature of Magna san. The one is in trouble, then all of the companies are going to go and help that company out. I think it's a great example of the ability to bring global resources into one place to solve. And even though it's painful a bit, but it shows the camera thing, which Martifan especially enjoys. Right. And the other part was on again around the copper price like for India, we see that it's roughly around maybe somewhere around 15% to 20% in a broad range, I mean, like the cost of copper versus the wiring harness content or overall. So would that be the sort of number for PQC or would it be even higher internal copper content? The copper content in trucks is usually higher than passenger cars because most of the wire thicknesses blinks, everything is more. So you to see the voltage drop and the whole business in the vibration sense. So it's generally more thicker cables in the short Okay, okay, sir. Great. Thanks so much for answering the question. No worries. Thank you. Our next question is from the line of Jinesh Gandhi from Motorola Wealth Financial Services. Please go ahead. Hi, sir. My first question, according to this one off cost which we indicated for PJC. So is it session or can you give a number or it's not very big? Pankaj, would you want to or but I would understand if you don't want to go ahead. Well, you see, we had I mean, it's as I mentioned, that it's a compounded issue. So it includes the expedited logistic costs, which include the cost of the human resources who are brought into support. So there is state charges, there are charges to bring them to that country because we needed experienced people to soothing things up and smooth launches. And also due to the supply chain constraints, so All these things got compounded. So it's really difficult to kind of break it down. And on the copper side, we had Approximately, a gap of about €9,500,000 of difference between the rise at which we would have bought copper and did the difference. So it's Overall, cost would have been in the range of apart from copper, all these things put together would be in the range of about $9,000,000 to $10,000,000 more. So that's how it is. Okay. Sorry, what was the number you said for Compa? Some of it we would have recovered, but not much as of now. So we do not factor in what we have not yet read about. Sure. What's the type of copy you said, about €6,000,000 I did not catch that number. I mentioned about €9,500,000 would be the impact of copper. Okay, understood. Second question pertains to again the PQC side. I mean from perspective, I mean we are seeing some movement towards hydrogen both on ice as well as fuel cell side. So how is PKC positioned in that technology and how would be the content difference between ice versus hydrogen ice and fuel cells? I just wanted to say that hydrogen is a future kind of a thing. The technology of hydrogen is to protect the fuel tank. The fuel tank people Have to make a very solid fuel tank, which can store the pressure of hydrogen and not get affected in case of the impact or something. It doesn't really change much of the needs of the wiring harness side and all that. So I don't understand the line of your question. What do you want to know from us about hydrogen? Yes. Does the buying hardware's content be very different in that vis a vis ICE? No, no, no. It could be similar, if not big difference or something. We're similar. Okay, understood. And last question The region has to be ignited, right? Our region has to be ignited. Right. And just the real technology change will be on the PureTech and the delivery of hydrogen from fuel tank into the engine. The engine I think, If I'm not wrong, it's similar to that as a financial year. Got it. Got it. And last question pertains to SMR PBB. In this quarter, we had about CapEx of €39,000,000 Is that a run rate which should sustain for Remaining 3 quarters and in turn overall CapEx should be €200,000,000 or could be higher than this? Our revenue guidance overall not So SMR PV, the same is still, I think, INR1800 crores to INR 2,000 crores crores. Correct me if I'm wrong, Yes, it remains the same actually, so not much difference. Okay, got it. Thanks. I've done this with my questions. Thank you. Okay. Thank you. Our next question is from the line of Nishant Vas from ICICI Securities. Please go ahead. Yes. Hi, sir. Thank you for the opportunity. My first question is on specifically in the sample subsidiaries, can see that the performance continues to be relatively better than the underlying market. So the focus point was more on the Marelli joint venture that you see. Obviously, the revenue ramp up seems to be than underlying market. A, what is driving that? 2nd, associated with the Marili joint venture, we recently mentioned about potential MoU with SMRT, we've been very merrily on the lighting system side. So can you shed some light because it seems that you're expanding the scope of your relationship, so thoughts around that please? Thanks. Yes. Just to answer the second one first, I think we are known for that. We have multiple joint ventures with the same partners. And of course, we believe in growing businesses together. So first, we started with lighting, then we got into exhaust systems, sorry, suspension systems with Mereli. And the business continues to grow and the lighting business is quite strong. So you will see more and more of that as we continue to build more and more partnerships with the same partner because I think that shows how good the business is. Now Coming to the first aspect of your question, I think you've been saying that from the start that heavy lifting of the investments, making sure they have the right technologies, getting on to the right platform. That all SEGA family is already done through our holding company, which we are merging now together with and making news on it. And that was the whole thesis that look, these companies are prime companies, they are profitable companies, they are going to grow market share and we will bring it to all our shareholders and continue to grow these businesses not just in India and have more opportunities side as well. So this is when we're playing on what we pretty much told you, why you are doing this merger with these businesses. And they continue to showcase that they are in that key group take off stage, which places them beautifully to be in the public sector entity. Thanks, Amol. Just a clarification because I think my focus point was more on the oversight of SMRP because Correct me if I'm wrong, there aren't many companies who have lighting and plastic parts together in terms of potential bidding with customers. So I just want to understand how you plan to take it forward in terms of will you be jointly bidding for programs in the future potentially what you're looking at customers or what timeframe you're thinking about this potential partnership to Factify, just some sense on that. So I think just one, let me just, the joint venture between Meredi and Madhav Sath. It is actually between SMP, not SMRT, really, on S&P and Merendi. And that is more to take care of the exterior parts, which are Today going to be a hallmark of electric vehicles that are coming. So that's It's the biggest advantage of this joint venture because we will be making a lot of parts which are going to signify that it's an electric vehicle. And in visual language, sound, etcetera, You need that kind of distinction. So I think we are grateful to Mireles. We think we have enough opportunity to market this with our customers globally. So we are very excited about that and we are sure Schools turned off some very good opportunities in the coming time. And sorry, Mohammad, you were saying? No. I just couldn't. I don't know what you're saying. I think We are very strong on the exterior side. And like I was saying, lighting is becoming more and more key component for branding, differentiation. And the newer vehicles as you're coming have a lot of front lit modules. So it makes a lot of sense because we're in the in that area and we really have to the existing joint venture partners for example, interiors and all other kind of tools. We can't. Not sure that as in new to do more and more parts for increased content per car. We will look to continue to increase Aeron's time and the opportunity. Fair enough. Thank you for the detailed response. And just my second question is on sorry again on PKC, but more on the growth structure as well as in terms of your order book structure. So Pankaj, can you just shed some light in terms of how you're looking at because many of your customers in the recent quarterly commentary have upgraded their growth for both Europe and North America. So how are you seeing the response from your customers on the same? And the associated question was also in Europe, many of your Key truck customers are either collaborating with each other or trying to make an aggressive pivot following the policy regulations towards electric. So, where are you seeing yourself in terms of from the early design stages on those programs and some color on that in terms of potentially your future order book for on the electric side, if you can check something on that. Thank you. That's all. So we do see a strong growth coming from our customers. That's how they all are seeing. And they have very strong order books. And as we have also mentioned in our report, in our announcement today that we do see that there have been some hiccups that they are facing because of supply chain constraints and some disruptions which have been caused due to shortage of materials including the chips and also materials which are caused by the hurricane in Texas and then some in Europe, impact of flooding in Germany, Belgium area. But demand is very strong. The order booking is very strong, and we are aligned with most of them. In terms of electrification of the trucks we are working with them. And we do support all the electrification requirements. So we are working in tandem with our customers on their projects Thank you. The next question is from the line of Kapil Singh from Nomura. Just One question on electrification. If you could talk about what are the new areas that we will be able to address on new products or in existing products, some major changes which will take place as electrification takes list. Across 2 wheelers, 4 wheelers as well as commercial vehicles, what are the areas we are targeting? And whether we are working with some of these startups, there are a lot of startups in the future space particularly. So are we working with some of them as well? And how is the wiring harness content and those compared Aisha. So I think there is huge amount of opportunity In the existing products itself that Motherfins has, because all of these products in some way or the other Fit in very well to the new demand. There is enough R and D, people, the amount of money that we spend on finding solutions, exactly what the customer needs. And the recognition is by far they can enhance and grow their market share as well. So it's a bit too early for us to introduce you to what are the new things that are happening out there. As and when they will happen, we will come back to you to tell you. But I can assure you The competence that Motherfins has developed over the past 20 odd years is related to the product design, the product tooling, the assembly of the product and then supplying to the customer. And then also globally, We're in 42 countries. So that becomes a very, very attractive way to go beyond I'm sorry, sir. We couldn't hear you, sir. Sorry, anybody else wants to add anything to this particular fact? Because we can't go specifically to the product, Raman. What did you say? Sure. I think largely we have been engine agnostic, but depending on what the customer wants us to do, I think we will look at that. We You already heard of 1 partnership as you pointed out. And we continue to make progress on those parts. We are not going to take any large beds in battery manufacturing or something like that. I think we will stick to our core and we will follow-up what the customer is telling us to do. And There's a lot of opportunity out there like Papa said, we're getting a lot of things on our table right now and we're evaluating it. So as these things happen, as you heard about the one for the exterior lighting. You will hear more of these things as we are able to put a business case around it and have a good plan to go after some of these new products. Okay. Thanks. And do you have any update on what percentage of revenues for the quarter were coming from BEVs and if there is any update on the any additional orders we have got on the EV. So definitely, we have picked up a lot of orders. But sorry, Kevin, we guide you in 6 months. But trust me, You are doing very well because you are generally seeing the carmakers coming out with existing models in electric vehicle versions. And that means, depending on the product, it needs to be tweaked a bit here and there. And that means more opportunity for mothers. So We are not in a position just now to tell you what the numbers are, but I can tell you it's a very healthy number. Okay, sir. We'll look forward to that at the end of next month. Thank you so much. Thank you. Thank you. Ladies and gentlemen, that would be our last question for today. I now hand the conference over to Mr. Vivek Chand Saigal for closing comments. Thank you. And over to you, sir. Thank you. I would just like to take 2 minutes to try and explain to you What are the challenges are not unservmountable. They are easily able to be taken over. But the thing is every day you have new challenges. These challenges have not come before to us. So our people are on their toes. They are looking at ways and means by which they should combat these challenges. And I think the turnover of the company and the gaining of market share that Motherfim has done is alluding to the fact that we are having great set of people. They are very, very innovative. We have figured out ways and needs. I mean, I was just trying to tell you that to find in the second way of time to send that kind of number of people out from India to a new country in Europe. And Pankaj, I think we actually had to hire aircraft and some people there. So I'm just saying it's new challenges that you've never faced before in your life. And how on behalf. You come out with solutions and all that. It's making us really Though we don't want these challenges, but when they come, we solve them very well. The other thing which is important is that Because of these particular things, our inventories are on the higher side. And that actually works in our favor double time because we have seen the products that we need are having a higher inventory in our factory. It also kind of helps us to hedge the raw material price increases and things like that. So we continue to do that while Our eyes are definitely on the deck to the EBITDA that we have. And the general work of the finance people and the management people is to bring those particular things down, if possible, to 0. And we are working towards that. And I would have had pleasure to tell you that there is a lot of pain in the system. At the moment, It's more been Tier 2, Tier 3, Tier 4. That also will be a challenge for the carmaker. And But it's also an opportunity for Morison because we can pick up these particular assets and stabilize them and help desk. So a lot of opportunity in the future and looking forward to your support. Thank you very much. And stay safe, stay healthy. Thank you very