Q4 24/25

Jun 2, 2025

Summary

FY25 net sales rose 19.39% and PAT 23.09%, with two-wheeler growth outpacing the market. Investment in R&D, electronics and four-wheelers supports future growth, while margins are expected to remain broadly stable.

Ladies and gentlemen, good day and welcome to Fiem Industries Limited Q4 FY 2025 earnings conference call co-chaired by Monarch Networth Capital Limited. 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 touch-tone phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Sahil Sanghvi. Thank you, and over to you, sir. Yeah. Thank you, Avirad. Good evening, everyone. On behalf of Monarch Networth Capital, I welcome you all to the Q4 and FY 2025 conference call of Fiem Industries Limited. We will start the call with the initial comments about the results and the future outlook of the company, and then we will open the floor for question and answers. Now I will hand over the call to Mr. J.K. Jain, Chairman and MD of the company. Over to you, Jain Sir. Thank you. Good afternoon and welcome to the Q4 FY 2025 earnings call of Fiem Industries. Joining me on today's call are Rahul Jain, Joint Managing Director; Rajesh Sharma, Joint Managing Director; Vineet Sahni, CEO and Director; Arvind Chauhan, Company Secretary; O.P. Gupta, CFO; and other members of the finance team. Our investor presentations and the results are now available on our website and the stock exchange. We trust you must have reviewed the same. I am pleased to share that the company has started a new innovation and R&D center at Gurgaon. This facility will include consolidation of mechanical, optical, and electronics along with CAE capability. In addition, we are also setting up a state-of-the-art EMC/EMI electronic validation laboratory, which will be the first of its kind in the Indian lighting industry. For integration approach and speedy development of the new product in electronics, we are setting up prototyping facilities, SMT, and assembly line. This corporate office includes the top management is also at the same location to support the integration and the consolidation process. I expect this strategic move will enhance our efficiency and our capability to serve our customers better. Now let me turn to the industry's performance. FY 2025 has put up India's two-wheeler market back into the high gear. The industry's volume for the year grew about 11%, but Fiem was able to outperform with 20% growth. On operational front, we have posted another record performance for the Q4 and the year-ending FY 2025. Our revenue has grown up strongly to INR 2,422 crores, and we have able to deliver all-time high, the PAT of INR 204 crores for this FY 2025. Our new product development pipeline remains very strong. Design centers in India, Italy, and Japan have shortened the development timeline, allowing us to roll out new projects faster. This quarter, Honda Activa e was launched, where Fiem is single source for rear combination lamp, front position lamp, license lamp, and mirrors. Yamaha rolled out new models, Tracer 700 and Nova Factor, fitted with Fiem headlights and position lights for the European and Brazilian market. The Royal Enfield Classic 350 facelift model, we started supplying full lighting solutions. For Hero MotoCorp, we have started supplying headlights for its new Xtreme 250R model. TVS iQube model, where we supply headlamp, tail lamp, and mirror, continues to take leadership positions in EV market. We also supplied full lighting solution to TVS for their new model, Apache RTR 160 4V. All these new model launches are LED-based, and these demonstrate our continual leadership in the market. Our four-wheeler push is also gathering speed. We are happy to inform the commencement of the production of our first product, LED license plate, to Mahindra & Mahindra. This product is now approved for all models. We have also received confirmation of development of three new projects for their highest selling model, Bolero, which includes development of the high mounted stop lamp. Our earlier order of the headlamp and tail lamp was executed flawlessly while we received appreciation from Mercedes, Germany. We have now received another order for the headlamp for their new development car projects. As we look ahead of FY 2026, the outlook remains bright, driven by the strong rural demand and a favorable monsoon expectation. Company's board has always believed in sharing its earnings with the shareholders. As the company continues to achieve new milestones and generate record profits, the board of directors have recommended highest ever dividend of 300%, which represents 39% payout. This records payout in line with our ethos of sharing values with the shareholders. With this, I hand over to Mr. O.P. Gupta and the finance team to update on operational performance. Thank you, sir. Good afternoon to everyone. I will present the Q4 FY 2025 number compared to corresponding quarter of last year, and also for full year ending March 2025. The company has registered quarterly sales of INR 633.8 crore in Q4 of FY 2025 as compared to INR 554.7 crore over same quarter last year, registering a growth of 14.26%. For the full year, we have achieved net sales of INR 2,404.96 crore as compared to INR 2,014.37 crore, representing a growth of 19.39%. As a percentage of total automotive lighting, the LED lighting stands at 59.3% in FY 2025 as compared to 52% during last year. The EBITDA in Q4 was INR 83.81 crore, translating into an EBITDA margin of 13.22% as compared to INR 75.46 crore over same quarter last year. EBITDA for full year FY 2025 stood at INR 320.73 crore as compared to INR 267.97 crore last year. This translates into an EBITDA margin of 13.34% for the full year FY 2025. The PAT of the company has also increased to INR 57.69 crore as compared to INR 47.19 crore in Q4 FY 2024, representing an increase of 22.25%. For the full year, PAT of the company stood at INR 204.14 crore as compared to INR 165.84 crore during FY 2024, which is higher by 23.09%. The company has made a PAT of INR 138.28 crore during the year. During the quarter, there has been an exceptional income of INR 3.75 crore. This is on account of favorable arbitration order relating to an old fire incident of 2018. With this, I end the financial brief, and now the floor is open for question and answers. 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 and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is set. The first question is from the line of Viraj from SiMPL. Please go ahead. Hello? Hello. Yes, please. Yes, Mr. Viraj. Yeah. Hi, sir. Thank you for the opportunity, and congratulations on good set of numbers in such a challenging environment. First is, can you just give a breakup of, I think they spent somewhere around INR 140 crore in CapEx in FY 2025. So can you give some breakup in terms of how much of the CapEx is towards capacity expansion, and also in terms of between two-wheeler and four-wheeler? I think towards your new R&D center, which commercialized. So can you just give a brief breakup of CapEx for 2025, and what are the CapEx plans for FY 2026 and 2027? That is the first question. Hi, Viraj, this is Arvind. First, this breakup of last financial year, INR 58 crore is which we incurred in the Rai plant, and balance is all other facilities, including the R&D equipments we have left. So this is the breakup actually. About this next year CapEx plan, I would request please. Yeah. The go forward CapEx for the next three years is approximately INR 200 crore, and that doesn't include the four-wheeler CapEx that might happen, which also is a significant figure. But outside of four-wheeler, our CapEx plan should be around INR 200 crore over three years. Okay, thank you. Second question is, if you see last one or 2 years, we have seen a very fast shift towards LED lighting versus convention. As you also said in the past, it carries more than 2.5 to 3x at least in terms of realization increase versus a convention. Also, if you look at our own communication earlier, was that if we were to see 100% LED penetration in our mix, then we would be able to cater to close to INR 2,800 crores, INR 2,900 crores kind of a revenue scale for the lighting business. Question is then, considering the benefit of higher realization and operating leverage, one would think that margins should have further expanded for us, operating margins, but that is not the case. Can you just give some color? Where are we seeing this highest spends? Is it more towards PV, R&D? Can you just give more color? Yeah. A couple of points there. First is that, for the LED, our EBITDA margins are broadly the same. They are not different as far as LED component is concerned. There is operating leverage that kicks in with higher revenues, for sure. You must appreciate that we are making a lot of investments. I think we talked about our EMC, EMI lab, we talked about electronic facilities. We are also talking about significant investments that we are making on the four-wheeler side in terms of management, in terms of other operating expenses. Taking all of that into account, our margins are still on a positive trajectory, but we do not expect this to be materially higher over the next couple of years, because we continue to make investments for growth. Can you just give some perspective what kind of investment and P&L we have been making, what kind of bench strength we have added either for PV or R&D? Because the benefits of this we will only see after 2, 3 years hence. Any perspective you can give, what kind of investment in P&L and bench strength we are adding? What we could do is we could talk about the four-wheeler business separately in terms of what we are doing there, but other than that, everything, like for example, we spoke about our new facility, what we are setting up at the new head office, the innovation center. All of it are fairly integrated with our overall plan. It's not going to be possible to pick one out and say, "This has resulted into this," but there is significant enhancement of capabilities that is happening because of the technology-intensive nature of the industry now. On the four-wheeler side, maybe Vineet can add in terms of what all we've done already. Yeah, hi. This is Vineet. On the four-wheeler, we have added resources for design, as our RFQ content is increasing. We'll be talking about it later. We need to serve our customer. We have added resources in our Pune design center also. We are adding resources in our Japan design center and our European design center also. As an organization, we are strengthening our technical strength, and that is to support our customer and future projects. Yeah. As of today, what is the team size for the PV? Just indicatively. Yeah, we will keep this confidential. We are growing, but I would not like to divulge numbers here. Okay. Just last question. On the wallet share, across the top four customers, can you just give that for FY 2025 and also for FY 2024? Yeah. Hi, Viraj, this is Arvind. Hi. See, now when we give this wallet share, we are working with the customers and there are so many SKUs as of now. What we are giving here about that, just overall total market share is around 33%. Specific about the product, it is not possible to give. This is the data which we can share as of now. No, I was talking about the top four product-wise, which you used to share earlier. No, no. That's what I'm saying. This customer pie chart you can see in the presentation, but not possible to share because there are so many SKUs and data fetching from the customers. As of now, this is not possible to share. Can do it for Sure. I'll come back. Thank you. Thank you for answering all the questions. Thank you. Thank you. The next question is from the line of CA Garvit Goyal from Nvest Analytics Advisory LLP. Please go ahead. Hello, Amarlu. Hello. Amarlu? Yes. Yes, please. Yes, Mr. Garvit. Go ahead with your question. Good evening. Congrats for a good set of numbers. My first question is, our exposure to two-wheeler EV segment and your client base including major OEMs like TVS, have you observed any signs of order moderation or slower inventory optics from EV customers in light of recent supply chain concerns such as China's export curb on rare earth magnets? If yes, can you quantify the impact in the terms of our overall sales percentage for the quarter? See, I'm Rajesh here. As of now, whatever communication about the rare earth metals, whatever is being highlighted from the Chinese government and Indian government, they impacted EV market is not much because as of now, the overall share is of 5% only. About LEDs and other products, electronic products, there is no impact as of now because other than China, all other countries are also into the same business. There is not much of impact because of these rare earth magnets. Is it like Fiem is not going to be impacted because our percentage sale is low, or the entire EV industry is managed, is what you're trying to say? As of now, entire EV market is struggling. It is only 5%-6% only. There is not much of impact is as of now shown in the market. Understood. Secondly, on the Ola, given that their current financial strain reported by the company, which is our customer also, could you elaborate on the quality of your trade receivables with them? Specifically, what portion of the receivable is attributable to Ola, and are there any concerns regarding overdue payment or credit risk provisioning for these receivables? Neither do we have any concerns, nor can we disclose such information which is confidential with clients, and we have no concerns. Got it. Sir, lastly, on our performance in FY 2025, which was obviously the best year for Fiem Industries as far as top line growth is concerned, with about 23%, which is a significant outperformance to our historical growth rates. Looking at the current scenario, while rural demand is expected to come bigger due to favorable monsoon, as you mentioned in opening remarks as well, what do you think about the urban demand for two-wheelers? Can we grow by 20% again for FY 2026 as well, or do you find it difficult to do that considering the higher base? I think we have demonstrated, even in a bad year, and you have seen the last five years, there have been many negative cycles. Even in the worst years, we have grown well, driven by our very diversified both product mix as well as customer mix, including our export customers. So we are not dependent on a product or a customer. So at an holistic level, we continue to guide for a 15%-20% growth even in worse, bad markets. Got it. What percentage of revenue do we expect four-wheelers to be in FY 2026? I continue to maintain that it is premature to find revenue and to talk about revenue. Please have patience. We are working systematically on our business plan, and very soon you will have a revenue, as we discussed. We have started getting revenue, but today it is quite insignificant. We will be growing, and then we will convert it into business plan and share with the investors. Got it. Thank you very much and all the best for the future. Thank you. Thank you. The next question is from the line of Karan from Keynote Capitals. Please go ahead. Thank you for the opportunity. I firstly wanted to understand if Hero is expected to scale meaningfully for you in the near to medium term. Is Fiem being onboarded across only a select models, or is there a broader supplier shift? If not, I want to understand what would drive the next leg of top line growth at 15%-20%, because you have pretty high wallet shares across other major OEMs. We are really be very late startup with the Hero. As of now, we have a four model wherein we have successfully launched our product. That too recently as highlighted in our CMD sir speech. Xtreme 250R is recently we launched, and it is doing good. This is again with the projector lamp, which is being continued in our portfolio that is being started from Yamaha. Further on, we are as of now having eight projects wherein front and rear lighting both are there, and we hope we'll have a substantial growth in our business in near future. Okay, understood. Secondly, what is the LED lighting contribution for full year FY 2025? This LED light for full year is 59.3%. Okay. Over the last few years, LED has grown significantly, and I am assuming Fiem has had a significant growth in realization also. I wanted to understand if there is further room for improvement in realizations now, because LED is at a significant contribution. On the realization, we explained our margin, I think in the previous sort of question as well. LED will continue to grow. As we said, it is close to 60%. It will keep growing for the next couple of years. But if you talk about at a margin level, we will be stable, similar kind of margins, what we are guiding to. Yes, LED as a realization is higher for sure as compared to normal halogen. Okay. Lastly, are there any updates on the Gogoro tie-up? No. Gogoro we updated last quarter as well. Gogoro is facing a lot of headwinds at the global level, and because of which their Indian sort of plans and venture is on hold. I think there is a new management there at the head office level. They are reviewing, they are figuring out their financials. As of now, this is on hold and we will update you as we get a more detailed update with the new management. Okay. Thank you. This was all from my side. Thank you. The next question is from the line of Prashant Kothari from Stock Market. Please go ahead. Hello. Good evening, everyone. Am I audible? Yes, please. If you can a little bit louder, that will be better. Yeah. I have a few questions. First, where do you envision the revenue mix in terms of two-wheelers versus four-wheelers, India versus exports, and lighting versus other segments by FY 2030? The way to answer this question is we are, as of now, predominantly two-wheeler company. We made some big strides in four-wheeler. It is our intent to grow it to a reasonable business out of the overall pie. If we don't make it a reasonable business by FY 2030, then obviously we wouldn't have entered it. Whether that number is 30%, 20%, 50%, I think that business plan is to be sort of rolled out over the next 12 to 18 months. It's too early to comment on that number, but it is suffice to say that it will be a reasonably important business for us as we look through for the next five years. As far as exports is concerned, exports is already a material business for us. We continue to work very closely with customers, and it comes in as indirect exports, so you may not see it on balance sheet. That also, we believe, will grow to a meaningful business. It's already a large business. It will continue to drive. Was there anything else that you asked? Lighting versus other segments. No. Lighting is our core business. So lighting will continue to be our core business. Others will always be ancillary. Okay. Two questions on that. First, is there any broader diversification strategy in place to reduce the two-wheeler dependency over the coming years? I think no better than what we've already done, which is four-wheeler. So to that extent, our core competency will remain to be lighting. But within that, a large segment, which we had not done, which is four-wheeler, we are pursuing it very aggressively. Okay. On the export part, can you share any roadmap to scale this? How significant it is going to grow over the next three to five years? No. On the export front, if we look at the way the two-wheeler market works, and I am talking specifically of two-wheeler, it is driven by the OEMs, like the Hondas, like the Suzukis of the world, locally, right? There are the Harleys of the world. It also depends on how they plan to pursue India opportunity, which is very big now in terms of how they are integrating with the thing. We are working closely with these OEMs who will work closely with their international partners, and that is how the system works. There is a lot of inquiries right now. Our product pipeline, if you look at what we are doing with the Yamahas of the world, is very robust. That one is something that is closely being worked on. I think you have Japan and Italy subsidiaries, right? They are also coordinating with Honda, et cetera, only for international revenue there. They have the design team there for Asia. Yeah. In Italy and Japan, we have a design team, and they are coordinating based on the input from the corporate office. They will be supporting directly to all the developments wherever and at customer end if it is being required. We have design engineers, so they are very closely working with the customer who are giving us support to give us quick responses and faster development. Okay. Last question. Given your strong cash generation and increasing scale, how is Fiem approaching the capital allocation beyond FY 2026? We feel very confident about future growth. We have laid out a CapEx plan, which we articulated 200 odd crores for our regular CapEx over the next three years, plus four-wheeler could absorb another 200 odd crores over the next three to four years. So that's a large CapEx program that we are undertaking based on what market opportunities we see. A lot of that cash will be utilized, and plus we want to be ready for any other opportunities that can come by. Okay. Thanks a lot. All the best. Thank you. The next question is from the line of Vijay Kumar Pandey from Nuvama Wealth. Please go ahead. Hi. Thank you for taking my questions, and congratulations for a great quarter. A couple of questions from my side. I wanted to check first on the What is the market share in terms of LED and halogen in the 2-wheeler segment? As I already informed, our LED share in our lighting is 59.3% precisely, and the rest is the conventional. Okay. The realization will be around 10% higher or how much? What is the difference between the realization? Realizations for LED is at least 2x. At least. This go beyond. At least 2x. I'm good. Okay. Secondly, sir, I just wanted to understand on your investment in the electronic segment. What is this particularly regarding? Is that any new product we are developing or will it continue to supplement our lighting segment? As you are aware, with the advent of LEDs in lighting, lot of electronics is coming. Even lighting is becoming intelligent. We are working on certain projects with intelligent lighting also, which increases electronic content. To support our customer, we are investing into EMC/EMI laboratory, which will be the state-of-the-art laboratory, and we'll be the first one in India to have it in lighting industry. We are also investing into prototyping facility, SMT line and assembly line for quick turnaround of development projects. Okay. There is a lot of work happening on electronic, and we are making electronic as our strength for future. Okay. There is a lot of background noise coming from somebody. If you could try and keep yourself on mute. We have some background noise coming. Okay. Thank you, sir. Just last question from my side. Sir, if you can give me a bit of idea about any new products, like the new motorcycles that are being launched or new scooters, in which of them we are partnering or where we are going to see the increased sales growth. That will be very helpful. There are more than 100 projects which are under pipeline right now, under development. This is all being developed under new technology, which is being required, based on CAN bus, software base, animation, and for that, we are equipped. Further on, we are investing EMI, EMC lab to do the faster validation and supply the products to the customer on time. Sir, I meant the new models that are coming in FY 2026, so next five or six months. Any particular idea which are the new models in which we are partnering with the OEMs and what kind of- Yeah. We cannot disclose unless and until these models will not be launched. Okay. These are customer confidential agreement between both the companies and those will be launched. Once which we launch, we will definitely disclose. Okay. Thank you. Thank you. The next question is from the line of Dharmesh Shah, an individual investor. Please go ahead. Hello. Am I audible? Yes, please. Sir, we are speaking, it is a CapEx of almost INR 140 crore and RMC PAT of INR 200 crore. This is quite significant for the company level. So what kind of revenue we can generate after investing of INR 140 crore of CapEx? You are asking about the previous year CapEx we did? Yes. The previous year's CapEx, means what kind of revenue generation you can create in next year? If you see our asset turnover, this is 2.5x coming. You can estimate. Yeah. Not that. I understand that part. My query is after INR 200 crores, we have received a PAT of almost INR 200 crores. Out of that, INR 140 crores has been, the CapEx we have deployed. Am I right? You are asking that in the last year, we incurred INR 138 crore CapEx. You are asking about the next year CapEx? If you can a little bit louder or you can clarify the question. No. Once again, I repeat it. We have received the PAT of INR 200 crores last year, and we have made a CapEx of INR 138 crores. So what kind- Yes. What kind of benefit we expect after making such a big investment in the next year? Yeah. Let's break this down. First of all, PAT and CapEx, we keep it separate. You are saying if you made a CapEx of INR 140 crore, what is the benefit we see? I think as been highlighted, our asset turnover is around between 2 to half. So obviously, we expect incremental revenues accruing around those levels and which will translate into a sort of PAT. But sometimes you cannot see it linearly over one year that you put INR 140 crores, what is the next year turnover increase and what is the PAT. These are all forward-looking stuff where we think through over a 3 to 5-year plan, and they give you results. But on an overall basis, our asset turnover is around 2.5, which is what it will result in over a longer-term period. Okay. Thanks a lot. Thank you. The next question is from the line of Khush Nahar from Electrum PMS. Please go ahead. Yeah. Sir, thank you for the opportunity. Two questions. First, if you can elaborate more on the four-wheeler side in terms of what new businesses have you won and the RFQs that are there. Second, on the new technology. I think the last annual report mentioned products like micro lens arrays and ambient lighting. Some sense on the new technological products, from where you are getting RFQs and which you are developing. Yes. See, we have now started, as you know, it was shared in CMD speech. We have now started production of one LED lamp, license plate lamp, which is approved for all models. That is step one. Step two also, we have shared our highest selling model of Mahindra Bolero. We have got three products for development. In this, the content has increased. The high mounted stop lamp content is much higher. It is around seven times higher than the first product. That will increase the content. We are now working on a RFQ of around INR 700 crores. We are getting very positive response from various customers. These RFQs, some will be converted, of course, into revenue. Therefore, we are planning a CapEx, as we shared, around INR 200 crores in next three to four years, because we might have to set up a plant for our customer once the RFQ matures. On the technology front, we had shared that we were working on touch sense capacitive technology. Due to our work, this work got converted into RFQ. We already received RFQ of this technology from our customer, and now this product is under technical study. For other two technologies, NDA has been signed between customer and us, and customer is initiating proof of concept, POC, along with us. If this goes forward, we will be the first company to develop these technologies for our country, India. It is moving on, and as you know, technology presentation is a step-by-step process. We are quite keenly attached with our customer in development of these technologies. All right, sir. Thank you for the detailed answer. Sir. Sorry. Hello? Thank you. The next question is from the line of Viraj from SiMPL. Please go ahead. Yeah. Just for clarification, you said, you have got RFQ pipeline of roughly around INR 300 million. That is for the PV business alone, right, sir? Yeah, that is correct. Somewhere earlier, you talked about capital allocation where other than the CapEx of INR 200 million for two-wheeler and maybe the CapEx of another INR 200 million for the PV. So, if you even kind of adjust this spend of INR 400 million over a three to four year period, our cash position would still be somewhat better than what we have right now. So the surplus cash, is there any thought process about deployment of this? Would we be looking for inorganic play in lighting? Any thoughts on this? Yeah. So as an organization, we have to be ready for any opportunity that emerges in the market. It is always prudent to have some cash available to capitalize on those opportunities. Therefore, we are ready. If the opportunity is good for us, even if it means inorganic, we will go ahead for that. Therefore, we are ready for such opportunities. But when you say inorganic, would that largely be restricted to lighting as a segment, or would we be even open to other product categories? We are open for any good opportunity for the organization. It could be lighting, it could be electronics also. Okay. And just last question, sir. We are making a good amount of investment, either be it in terms of P&L or CapEx in the electronics. Can you just give some more probably examples of how does this kind of add to our overall competitiveness, either in terms of backward integration or in terms of capability? All these investments we are doing is basically to strengthen our technology, to strengthen our organization and our collaboration with the customer. Because the kind of products that are coming in future, it is important that our organization is future-ready. Therefore, these investments are making this organization future ready to engage very deeply with customers for new technology orders. Understood. Thank you very much, and wish you good luck. Thank you. The next question is from the line of Jatin Chawla from RTL Investments. Please go ahead. Yeah. Hi, good evening, and congratulations on a very good set of results. Just wanted to check first on a remark that you made earlier that you would expect a 15% kind of growth even if two-wheeler industry volumes are flat. Is that the kind of outperformance over the market that you're expecting? If yes, then what are the key drivers of the same? No. We didn't say that we will grow at 15% at flat volumes. What we said was that we expect to grow at 15%-20% over the next three to five years on a consistent basis. We actually believe that two-wheeler is on a very good growth path as well. That's the general guidance on our revenue that we are making at 15%-20%. Got it. Thanks for clarifying. The LED share number that you gave is more on a revenue basis, and it is roughly at 59% this year. On a volume basis, broadly, would it be fair to say it is somewhere around 35%-40% if I work with 2-2.5x realization? Tough to estimate. It will be a guesswork. But at the industry level, the general understanding is that it is around 30%-35% penetration. Okay. Got it. This big pickup in LED penetration that we have seen this year from 52% to 59%, and that has been the main driver for the outperformance over the two-wheeler industry that we have seen this year for Fiem. How is the pipeline for future products looking? Is that also heavily tilted towards LED, and hence we should expect this sort of traction on the LED penetration to continue? I think it is 100% pipeline is LED. The new project pipeline is 100% LED. Oh, great. Last question from my side. We have seen Yamaha with a very strong growth this year, almost 25% growth after two years where their revenues were kind of flattish. Are we expecting this sort of traction to continue given the kind of model pipeline visibility that we have with them? We are very bullish to have a similar kind of market from Yamaha that too for domestic as well as export market both. Got it. Got it. Great. Thanks, Akash. Thank you. The next question is from the line of Saurabh from Multi-Act. Please go ahead. Yeah, thank you for the opportunity and congrats for the results. First question was on HMSI. Sequentially, we have grown by almost 20% versus if you look at the production growth, it was 4%, 5%. Is this outperformance led by new model wins or is it that we have gained some volume share from our competitors or has the mix of LED increased within HMSI? I think our volume share remains broadly the same. These are general specific model related movements over the quarter. But at the overall level, we are at the same volume share. Are we present even in the new models, the 2025 models that HMSI has been launching? Are we present with the similar volume share? Yes. As already highlighted in CMD sir's speech about Activa EV, this is being launched with a overall project of 71% share of business of lighting is with us and further on all the models, whatever is in under development are also with us with the same pace. Even in the normal Activa, that is the OBD2 compliant Activa that was launched, we would be present even in that Activa as well. Yes, we are into both the standard and deluxe model. Okay. A couple of quarters back, we had won orders for Jupiter 110 and now Jupiter 125 is being launched. Have we won even for those models? Yes, we are the single source for all deluxe model and wherein domestic model there are competitor, but of course, deluxe model is 100% being served by us only. Okay. Yeah. Thank you. Thank you. The next question is from the line of Khush Nahar from Electrum PMS. Please go ahead. Thank you for the opportunity again. Just one question, I think one of the large E2W customer was pending in terms of our customer. Any update on that? Have you onboarded them as a customer? We have, as of now, more than 40 EV customers on our board and we are very closely working all the customers whose server is in the top 10 EV companies. Right, sir. Thank you. Thank you. The next question is from the line of Vijay Kumar Pandey from Nuvama Wealth. Please go ahead. Thank you, sir. For a follow-up, just wanted to check on the RFQ of INR 700 crores, sir. What is our expectation and in how much time period will this be executed? What is the start of the sales operation for these RFQs? Different products have different timeline, but a bigger chunk of RFQ, the SOP is 2028 where we are working. That is a high value RFQ. There are other RFQs where SOP, some of them are coming in this year and some are coming in next year. It is staggered depending on the RFQ and the customer. Okay. And sir, how do you put how much will be in FY 2026 or FY 2027 just in terms of revenue opportunity? We are bullish about it, but as I have shared always, I think it is little early to talk about revenue. We are taking a step-by-step process and rest assured, when the revenue becomes significant, we will come back to you with proper business planning. But as you know, we are entering and there is a lead time to development. But we are moving in the right direction and we are bullish about our approach to four-wheeler. Sir, generally the lead time is around six months or Two to three years is normal development lead time in four-wheeler because lot of component get developed, validation happens. That's normal. Okay. Thank you. Thank you. Thank you. The next question is from the line of Viraj from SiMPL. Please go ahead. Yeah, just one small data point. In case of a two-wheeler, if we compare, say, an Activa ICE model or something similar in case of, say, TVS, an ICE model and compare it with an EV model, what will be the content change in terms of lighting if it is an all LED? Lighting for ICE and LED for EV is similar. There is no change. It is totally dependent Okay on what all functions are being added into the light. If I were to compare, say, an Activa ICE versus Activa EV where we are currently, what will be the content for lighting in ICE and similarly in EV model? See, in Activa EV model, we have a 71% of share of business in lighting. No, he's asking for- Actual content for vehicle. Yeah. EV will always have LED lighting. ICE can have LED also and halogen also. Right? Yeah. If your question is, what is the difference between halogen and LED, we can answer it. No, I was just trying to understand, say, an LED, an ICE Activa variant, what will be the content for us currently? And say if I have to stay in Activa EV model, what will be the content? Just absolute value. Rajesh is just telling you that. First of all, Activa have a two model. One is of standard model, which is having conventional lamp, and deluxe is having LED headlamp. The difference of that is one is to two, or one is to three. It is totally dependent on the functions. Then there is the EV as well. Then there is an EV. EV is of course, as Vineet has already- The same. It is the same, wherein EV 99.9% is 100% in LED lamps. The price will remain the same as the- ICE model. ICE LED model. Yeah. What will be the price or the per unit, vehicle per unit, realization per vehicle, say in an Activa LED model for us? I think, we can give you a range. It won't be fair to give a price. Yeah. You say ranges also. Minimum, it could range anywhere from 2x to 4x. It can go up further at a premium level, but minimum 2x for a LED. Sure. Thank you very much. Thank you. Ladies and gentlemen, before we take the next question, we would like to remind that you may press star and one to ask a question. The next question is from the line of Rohan Advani from Prat Capital. Please go ahead. Yeah. Sir, thanks for the opportunity and congratulations for a good quarter and a good FY 2025. Sir, again, on HMSI, I just wanted to clarify on Honda Activa. If you could help us understand that in the ICE Activa, the non-EV Activa, 110 and 125, are we present in both headlamp and tail lamp, and are we present in both halogen and LED models? Yes. We are present in both conventional and LED model and having our share of business similar, whatever we were having our wallet share earlier. Okay. Sir, I wanted to- There are two additional other supplier also in this model. Okay. But we have not lost our share or reduced our share at all? No. We have a same wallet share as we were delivering in past. Okay. Sir, against the Q4 base of HMSI, whatever is the growth in HMSI, Fiem's growth will match that or better that in the coming quarters. Would that be a fair understanding? Yes. We are thinking the same, and we are bullish about the overall numbers. Okay. Thank you, sir, and all the best. Okay. Thank you. The next question is from the line of Anay Mehta from Invest Analytical Advisory LLC. Hello, can you hear me? Yes. I think there is a background noise. If you can please Just a minute, sir. Sorry. Is it better now? Yes. Yeah. See, I just wanted to have a follow-up on the previous person question. See, I think he wanted to know what is the percentage of the value of product delivered by you, either as an LED or ICE vehicle, say, for Honda Activa model. Say, the cost is 40%, sorry, INR 40,000. What would be the percentage of LED components that you supply? I think that's what he wanted to know. We already answered to him. If you have any specific excellency, please ask. No. Okay, maybe you can treat this as my question. Assume that the cost of Honda Activa is say, INR 40,000, right? What will be the percentage component of Fiem delivered products in that Honda, on the LED side? In EV, the number of sets complete lighting is around INR 4,000. Okay. That will be around, if we talk about INR 40,000, it is a 10%. Okay. Got it. Okay. That is it from my side. Sir, one other question. I remember that we sometime, three, four quarters back, we were bullish on entering into that EV side of business into hub motors and stuff. I do not know, I did not track this information beyond that time. Are we still going ahead with that project or we have shelved that project? I think we just addressed that point. That was being done along with our tie-up with Gogoro. And we just mentioned that Gogoro globally is facing some headwinds, so that project is at this point of time on hold. Got it. Thanks for the clarity. That is it. Thanks. Thank you. The next question is from the line of Tawal Chawla from Fourth Capital. Please go ahead. Hello Hello. Yes, please go ahead. Yeah, please. Sir, a few clarifications. Sir, in the cash flow statement for yearly FY 2025, we see that ad hoc insurance payment received is INR 26 crores, while in the notes we have said that we have received INR 30 crores and INR 20 crores. Can you just bridge the gap or how it is different? No, I think our ad hoc, what we received during the year is INR 20 crores at one and then INR 30 crores. So total is INR 50 crores. Yeah, but FY 2025, it is showing INR 26 crores only in the cash flow statement. You please recheck. This is INR 50 crores, and you can come by some bookkeeping clarification, you can come back to us. Sure. And sir, another question that our other expenses have increased by around 13, 14 crores. Is it a normal trend that we should assume going forward or they are kind of one-off or that kind of expenditure in this quarter? These are development expenditures that the company is doing for future. Okay. That is the category. We spoke about it. We are investing in technology and development. These are the expense related to that. So this should be a normalized trend going forward? So see, it is the company's call. We have to prepare for future. Sometimes it will come, sometimes, depending on the need. So like now we have invested in electronics, maybe next year they are less. But if there is a big change in technology, we may have to invest again. So that is a decision the management takes from time to time. Sure, understood. That's all from my end. Thank you. Thank you. The next question is from the line of Anupam Mukherjee from Persian Capital. Please go ahead. Hello, am I audible? Yes. Please. I just had one question. Sir, a few quarters back, we had done some prototype development for European car OEMs, I think Mercedes or Volkswagen. Is there any follow-up or an update on that? Yes, that's a good question. Yes, the development was successful. Our final samples have gone to the customer. They have now been fitted in a De Tomaso car. The car has been showcased very recently. It was in the news, and we were very happy to see our headlamps in that car. The project has gone very successfully so far. Once the customer approves everything, then we will supply them the lamps that they require. Okay. Were we the only one in the prototype development or were other vendors also in consideration? Sorry, say again, what is that? For the prototype development, were we the only vendor considered or it is like others are also The product that I am talking of, De Tomaso, is not prototype. It is a full-fledged headlamp with tooling, with proper assembly lines. What we are developing for Mercedes is also tooled up samples, but for their prototype car, which is low volume. This is basically a stage for future developments because we are associated with a company like Mercedes, so we are developing products for them for their development cars, which are currently low volume, but it gives us access to their management and their development team, and therefore it results into more RFQs in future. Get that. The work we did for Volkswagen, that has potential for ramp-up? No, not for Volkswagen. I need to correct you. We have done for De Tomaso, which is a sports car, and we have done for Mercedes, not for Volkswagen. Okay, get it. For this other program, like OEM, is there a ramp-up potential now? The product that we are. It is a small product at the starting of production. As I shared, this is now approved in all models. First month, like now we have schedule starting from 20,000 a month, which will go up to 60,000 a month. This will go up gradually in step-by-step manners. Get that. Thanks. That is all from this end. Okay. Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Sahil Sanghvi for closing comments. Just wanted to thank the management, the whole team for patiently and very elaborately answering all the questions. And congratulations again for a very excellent performance. Also wanted to thank all the participants joining the call. James, would you have any closing comments? I would like to thank everyone for participation in today's conference call. I hope that we have adequately addressed all your queries. If you have any further question, please don't hesitate to contact us. Thank you and have a good evening. Thank you. On behalf of Monarch Networth Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.