Q1 24/25

Aug 14, 2024

Summary

Q1 FY25 revenue rose 21.86% YoY and PAT grew 35.02%, with EBITDA margin at 13.73%. Management expects sustained demand and is investing in capacity, R&D, and passenger-car opportunities.

Ladies and gentlemen, good day and welcome to Fiem Industries Limited Q1 FY 2025 earnings conference call hosted by Monarch Network Capital. 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. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the future guarantees, performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Sahil Sanghvi from Monarch Network Capital. Thank you and over to you, sir. Thank you, Lima. Good evening, everyone. On behalf of Monarch Network Capital, I welcome you all to the Q1 FY 2025 conference call of Fiem Industries. We will start the call with the initial comment about the results and the future outlook of the company, and then we will open the floor for question and answers. Now I hand over the call to Mr. J.K. Jain, Chairman and Managing Director of the company. Over to you, Jain, sir. Thank you. Good afternoon to everyone, and welcome to the Q1 FY 2025 earning call of the Fiem Industries. Joining me on today's call are Rahul Jain, Joint Managing Director, Rajesh Sharma, Joint Managing Director, Vineet Sahni, COO and Director, Arvind Chauhan, Company Secretary, O.P. Gupta, CFO, and other member of the finance team. The investor presentations and the results have been published on both the company website and the stock exchange. I do hope that all of you have reviewed the same. We have commenced FY 2025 with a very strong performance. Our revenue for first quarter are up by 22% on year-on-year basis. This growth has been driven by a strong performance across our OEM customers. The revenue growth has also complemented by a robust operating performance. The EBITDA margin stands at 13.7%, and the net profit has grown by 35%, reflecting our strong execution capabilities. The two-wheeler industries is experiencing a strong growth. The production volume have reached 5.9 million units in Q1 FY 2025, growing by 20%. This performance is reflective of the improved customer sentiment and higher rural demand. We have always maintained that two-wheeler industries is poised for strong growth and that this is paying out in the current year. July numbers for the two-wheeler industries also reflects this robust trend in our OEM volumes. We believe this growth will continue through the year and industry will achieve new heights. During the quarter, we opened a new R&D center in Japan and also expanded our design team. This will enable closer collaboration with our Japanese customers. We are confident that these steps will drive substantial business growth. Our new product pipeline remain exceptionally strong and robust. Notably, we have commenced supply to Royal Enfield's new Classic 350 CC model for its LED headlamp, tail lamp, indicators, and pilot lamp. We are also collaborating with TVS on the recent launch Apache RTR 310, a premium bike for Indian markets. This also being launched globally. The EV volume segment experienced moderate volume during this quarter. We anticipate the industries to get back to its growth momentum. We continue to be a dominant player in EV segment, serving more than 30 OEMs and are optimistic about the growth prospects in this segment. In the passenger car segment, we continue to make new strides. I am pleased to inform you that we successfully delivered the first project to Mercedes. We have also received the second order from them for a headlamp and a tail lamp for their new development project. This quarter also had a good inflow of RFQ from the significant passenger car customers. We are also working on these RFQs and will make all efforts to convert these into business opportunities. As part of the development, one of the important customer also audited our Tapukara plant and approved the same. This is the third successful audit and approval of the Fiem manufacturing facilities by the passenger car customers. As we look ahead for FY 2025 and beyond, we are very well positioned and remain optimistic about the future growth prospects. I now hand over to Mr. O.P. Gupta and the finance team to update on the operational performance. Thank you. Thank you, sir. Good afternoon to everyone. I would like to present the Q1 numbers for FY 2025 and comparative performance with the corresponding quarter of last financial year. Company has registered a sale of INR 573.61 crore in Q1 as compared to INR 470.71 crore, registering a growth of 21.86% on year-on-year basis. The share of LED lighting in total automotive lighting is 55%. The EBITDA in quarter is INR 78.77 crore, translating into an EBITDA margin of 13.73%, as compared to INR 61.65 crore over the same quarter, with EBITDA margin of 13.1%, reflecting an improvement of 64 basis points. During quarter one of FY 2025, the PAT of the company has increased to INR 49.2 crore as compared to INR 36.44 crore, representing an increase of 35.02%. During the quarter, the company has made a CapEx of INR 28.42 crore. 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Gagandeep from Invest Analytics Advisory. Please go ahead. Hello, am I audible? Yes, sir, you are audible. Yes, please. Good evening, sir. Congrats for a good set of numbers. My first question is on the Hub Motors side. Can you please provide an update on the segment of this company, including the recent developments in the demand environment for Gogoro vehicles? Yeah, Gogoro vehicles, after their first 5,000 numbers of volume, they are again working for their internal to reduce the overall prices of Gogoro motorcycle, and they will be launching further with the new generation 2 and its battery for B2B and B2C segment both. How do you see the segment of ours, like Hub Motors, going to shape up in FY 2025 and FY 2026, sir? It will be in FY 2025. Sorry? FY 2025 will start with the volume and it will grow further by FY 2026. Okay. Got it, sir. How much investment we have already made towards this segment? INR 35 crores approximately. INR 35 crores approximately. Can you put a number in terms of crore, like how much is going to contribute this year? It's too early to give the numbers because they are still testing in the market. A small number of vehicles are there right now. It will really depend on how the demand shapes up. Next two quarters, we'll be able to figure out how this product moves forward. Understood, sir. Sir, like you mentioned, two-wheeler industries is going good. Just if we go down the industry, what is the outlook for the electric vehicles, sir? Call recording has now ended. Electric vehicle, as we mentioned, the current quarter has been subdued, but there is no reason to expect that the long-term trajectory. The current penetration of electric vehicle is closer to 5%, under 5%. I think long term, this trend is definitely going upwards. The challenges that the industry is facing is some frequent changes in terms of government subsidies which have been progressively moving down. However, a sort of equilibrium will come and there is overall, over the next three to four years, the percentage will go up significantly. And sir, we reported a 21% growth this quarter, and the industry is also doing good. You are saying that for the rest of the year also, we are expecting a good demand outlook. Can we expect this kind of trend, year-on-year growth is going to be there in FY 2025 over FY 2024? We are saying the outlook remains strong. All segments are doing well. The rural demand is back, so there is no reason to think that this is a temporary growth. We think it will continue through the year. Understood, sir. Thank you very much, sir, and all the best for the future. Thank you very much. Thank you. The next question is from the line of CA Garvit Goel from Invest Analytics Advisory. Please go ahead. Hello. Hello. Please go ahead. Sir, my question is already answered. Thank you. The next question is from the line of Ashutosh Tiwari from Equirus Securities. Please go ahead. Yeah. Sir, congrats on very good numbers. Firstly, on this Classic 350 that you mentioned, were you supplying for earlier model as well, or it is a new order for this platform? Earlier model. This is a new order for us because earlier was conventional with the bulb type. Now this is the LED. All products are in LED, and it is being already started supplying to them. Only LED lamp. LED lamp. No, my question is that were we supplying that halogen lamp earlier also to them? Like for the early model? No, we were not supplying for earlier model. It is a completely, and this is fully with this Classic 350? 100% data. This should be a large revenue driver for us from RE side in that case, because this is largest we are selling volume model for them, right? Exactly. Right. Okay. This is one good news. Secondly, you talked about TVS model as well. What is for that model? TVS, this is Apache RTR 310 CC, which is a premium segment vehicle, which is launched here in India as well as they are expecting very good volume from global market too. I think we were supplying earlier also for this, or this was some other company? Apache all model, Apache 225, Apache 125, all models are being supplied by us only. This is a premium model, 310 cc, which is being also added into that portfolio. In a vehicle like Classic, because this is completely LED lights you mentioned, just a broad range, what could be content per vehicle? A broad range. Contents are always around INR 2,000 to INR 2,500, complete vehicle set, or up to INR 3,000. For LED? Yeah, for all lamps, headlamp, tail lamp, indicator and spoiler. Okay. This Classic is completely 100% sourcing from us only. Okay. Yes. On the passenger vehicle side, you mentioned, I missed that statement, you successfully delivered one lot to which country? Somebody mentioned. Hi, this is Vineet this side. For passenger car, we got an order for the development project of Mercedes. This was a front light van, which we delivered through Mercedes India to Germany. That was a successful execution of the project. Based on that experience, we have got now further orders, which we are executing now. These are for development vehicle, that is step-by-step progress that we are doing with Mercedes. Just to understand because, obviously, we know about domestic market and how our journey has been, but generally, like we develop a development model, is there a chance in that case of really when the model launched, we get an entry or there are some other prolonged process for getting the entry into eventually into their model? This is, as I said, step-by-step process, and it is a prolonged process to get entry into Mercedes, but the process is this only. We cannot skip the process or shorten the process. Based on their experience, we will get RFQs for their small lamp, which we will have to demonstrate, and then we will be introduced to their headquarters, which is another step, and then enter into the mainstream. This is the process which we are following. Okay. You mentioned two more, I think one more RFQ and one visit and approval has happened for the plant. These are domestic OEMs? Yeah, these are domestic OEMs. Three passenger car customers have already approved our plant, which is a significant progress. That means they are willing to source quality products from our Tapukara plant. Generally, the first entry will be in the interior lamp or even tail lamp you can get some entry into, like to begin with I mean. At this to begin with, we are moving with small lights, and also interior lights and certain technology products on which we are working with them. Then we have to move up the ladder to tail lamp and finally to headlamps. What do you mean by technology products, basically? We are working on four new technologies, which do not exist here at this moment. We want to be the first supplier to OEMs, and this is new technology in lighting that we are working alongside with some OEMs. Okay. I think obviously, I think these kind of new segment take time, so can we expect that maybe in next three years, something sizable can happen for us in passenger vehicles? You are absolutely right. That is the target we have set for ourselves. Normally it takes time. It has a higher gestation period. Our approach is, one approach is on higher technology products, other approach is on localization of imports, and third approach is on providing them cost-effective solutions wherever they are having issues. These are the three pillars on which we are working with our customers. And you think that we can make a breakthrough in this segment, without having new technology tie-up as well? Yes, we will have support of our partners, but without going into any joint venture or any of such things. We will get a technology support from international partners. Have you finalized someone, or we are probably looking for- Yeah. We are already working with them for more than six months. Okay. Can we name them or this cannot disclosed? No, we cannot. We are not able to name the partner and the technology now for confidential reasons, which you could understand. Yeah. No issue on that. I think we are making good efforts on this side and probably, I had not expected us to actually make a progress in four-wheeler. I know how competitive the market is. So that is really commendable efforts. Also, we opened this R&D center mentioned in Japan. So we already are engaged with customers like HMSI and Suzuki, and we supply to Honda as well. How this can help us further? You also work with Yamaha, obviously, was a big one. How does this help in further expansion of our enduring to global OEMs? Just give me some thoughts on that. Yeah. When we deal with customers like Honda and Yamaha, the development process starts very early. So a collaborative approach is a must, and the communication between Fiem and their engineering is extremely important. Okay. To get that opportunity of future technology products, which will be for global market, not only for India. It was very important to associate closely with these customers. Okay. Therefore, in that office, we also have Japanese people, design engineers, who will be collaborating with the counterpart in our customer. Okay. This has added strength to our design capabilities and will give confidence to our customers like Honda, Yamaha, Suzuki to many more. many more to develop new products for future. Okay. I think we are seeing some, like Yamaha revenue improved from the last quarter itself, Q4, and now we are seeing stabilization. Can we expect a further ramp-up in that in terms if you can highlight any new models being developed or maybe if you are going to plan to launch something, supply something new for your models in Yamaha side? Yamaha, as we also discussed last call, there are 10 different models wherein we are working, not only for domestic, for global models too. Next quarter and next to next quarter, we can see some three odd models will be launched and will be in the Indian market as well as ready for the export market too. You want to say in the second and third, fourth quarter? Yes. This will be like completely a new model win or maybe some of the replacement of the older model that you supply to? There will be both. Facelift also and a new model too. Especially on the export side, like three models you are saying to launch, can you highlight which are, like it is one or two for domestic, or how it is? How many export models are there in this? The overseas models. Yeah. All models because the line which is being developed for Yamaha are regulatory requirement is meeting for all the countries. Okay. It is all the models will be applicable for domestic as well as for export market. With this launch, will the content increase further or is it similar to what is supplying today? Yeah, it will ramp up. Of course, it will ramp up slowly and gradually will increase the overall contents also. Yamaha will again be on growth path for next year if these models get launched for coming quarters. We are hoping. Right, you are doing? We are hoping so. Okay. Lastly, on the cash. Sajid, how much cash you have right on the balance sheet? As on end of the quarter, this is INR 235 crore. Any thought process of utilizing this, if you can highlight how much CapEx you plan to do this year. Any thought process on this cash utilization going ahead? I think we have highlighted that there is a significant effort going on the four-wheeler side clearly, and there are certain other opportunities also that we are discussing in the queue. But at this point of time, it's not crystallized. But we do expect that this cash flow would help us when we take some of those big initiatives. But as of now, we don't have a concrete plan on that right now to share with you. CapEx for this year? Around INR 100 crore for this year. Overall, there is INR 250 odd crore that we expect over the next 2-3 years. Okay. This will be mainly towards capacity expansion only and development. Yeah. It is a combination, yes. Okay. That is all from side. Thank you. Thank you. Thank you very much. The next question is from the line of Darshan Shah from Multi-Act Equity Consultancy Private Limited. Please go ahead. Yeah, thank you for the opportunity, and congratulations for the good set of numbers. I had one question related to the Hero business that we have one. We were planning to launch around six models. Any update on that? Yes, two models are already in production right now. One is X440, which is collaborated with Harley-Davidson, wherein another two models will be launched in next two quarters. Further on, other projects which are under development right now will be coming by 2025. Okay. Yeah. Thank you. Thank you very much. The next question is from the line of Dishant Jain from Quasar Capital. Please go ahead. Hello, am I audible, sir? Yes, please. Hello? Yes, please go ahead. We can hear. Sir, I just have a single question on the Honda customer. So even including the order share with Honda or have you got into the new products of Honda? Can you just clarify on the customer side? Yeah. There are not many new projects which are coming out from Honda. But as of now, we cannot disclose because these products are not yet being launched. It is under development, and subsequent months you can see some launches in the market. Okay. Thank you. Thank you. Thank you. The next question is from the line of Nikhil from Simple. Please go ahead. Yeah. Hi, thanks for the opportunity. Most of the questions have been answered. Just a clarification, you said on the PV side, you already have a technology tie-up and you have been working with it. Am I right? I said that we have partners. We are projecting multiple technologies to our customer, and we are in the process of developing proof of concepts. Depending which technology moves ahead, then we will formalize the agreements. Currently, we have MOUs with them. Okay. These partners are currently not operating in India? Because what we understand, most of the lighting players already operating in India through their subsidiaries or through other tie-ups. These partners are not operating in India today. Okay. Secondly, on the Hero. This is a broader question. What I understand, there is the industry tailwind, where we are looking at the two-wheeler industry itself growing, and on top of it, the new models which we are getting from probably Hero or Yamaha, which are getting launched. Do you expect our growth to be ahead of the industry by at least 3, 4 percentage points? How do you see over the next 2, 3 years? Our product mix and our customer mix is what makes us superior, and that has always been our strength. If you look at the last 10 years also, when the industry has grown at X percentage, we have always outperformed. We continue to invest in new relationships, new product lines, be it Hero or like you highlighted, Yamaha, for both direct and indirect exports. Our mix allows us to outperform the industry. Even today, we continue to be confident that we will continue to outperform, driven by these factors. Okay, and lastly, we have a mix of products which would either be giving higher realization or will be giving higher volume. But at a company level, because we do not generally share the volumes, if I have to understand, the per unit realization, what it was in 2018 and what it is today, what would be the kind of inflation we have seen because of mix change or price increases or whatever. But if we were at a benchmark of 100, today, where we would be in terms of average realization? I think it is very difficult to answer a one all encompassing figure here. Any figure that we give you will be misleading. I think there is just so many nuances in terms of each product line within each customer, which product has sort of sold well as compared to premium, low-end. I think it is very difficult to give a specific number around this. But clearly, there is some amount of inflation that has been there over the last many years. Also, on one side there has been trend towards premiumization. At the same time, the low end also is rising as we see in the last couple of quarters. One figure will not be correct to sort of give here to your question. No, but overall, in our revenue mix, I do not know how we define premium for lighting for us, but if we have to understand, how would the premium mix would have moved for us? Just a percentage mix and not exact number, but roughly where we were five years back, where we are today. See from the conventional to LED. The major factor is of LED segment, wherein two to three times of the cost value will increase. That is the factor which can be calculated. But of course, premium models, it is totally dependent on what all configuration customer is looking for their product. There is only headlamp which is having high beam booking. There is a product which is having blinkers also, and DRL also, position lamp also. These all factors are being given the positive and negative impact on the product. Yeah, just on that LED part, I think even in FY 2020, our LED was under 40%. Today it is 55%. That itself is a huge bump up, right? LEDs anyway. I appreciate that factor. What I am trying to understand is that, see, if I look at our long-term gross margins, we have been in that range of 40%, even in 2018, and today also we are around 39%-40%. I think you have explained earlier also that LED, the net gain or the gross margins are similar. It is only realization is higher. As a result, margin should be higher. What I am trying to understand that one, on premium is increasing, LED is increasing. Our EBITDA margins are still in that 13, 14 level. Is it like our incrementally disproportionately high investment behind PV or new models, that is why the EBITDA expansion is not visible? That is where I am trying to understand that if PV mix, if the premium mix has increased, LED mix has increased, what is the kind of investments which we are doing that our EBITDA margin are still in the similar range? I think we have always maintained a higher realization doesn't translate into higher margin. Right. When we sell LED, it doesn't mean our EBITDA margin is more in our LED product versus others. Your correlation that if you are selling more premium products or LED share is increasing, the only advantage we get is on operating leverage, which as the company grows, obviously that is there. Other than that, at the product level, the margins are not different. Investments are not related to each other. Investments are not related to that. It is not like we are making separate investment for premium products versus others. Okay, fine. I will take this offline later. Thanks. Thank you very much. The next question is from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead. Yeah. Thank you for the opportunity. Sir, congratulations on the good set of numbers. I have three, four questions. First, what is the order size that we have for this year and our execution plan? Second, we are seeing increase in employee expenses. Is that because of the salary hike annually? Third, what are expectations for Q2 as most of the companies expecting on the lower side because of the high leaves? Another on the PLI benefit side, if we are getting anything on this Q2 for upcoming quarter. Thank you. So order book, I will just explain you about order book. For next two years, we have more than 100 products available in our portfolio, which is to be developed for the different of our customers, and it is being approximately INR 800 crores of pre-book. Your next question is about the employee cost. See, if you compare with the last financial year, it is in the same rather because sales has increased, it is in the range of 14% only. Whatever is the incremental impact you are seeing, this is because of the annual appreciation, the new hiring for all our initiatives. These are the only reasons. Okay. Sir, what are expectation for the Q2 growth and PLI benefits? We have already said that the outlook remains positive. The overall, both for Q2 and for the full year, we see a positive trend in the industry. The overall environment seems to be pretty good. But beyond that, it is very difficult to give out numbers. You will hear it more from the OEM directly. What was the last PLI? PLI benefit. We currently don't have any PLI benefit or scheme that we are awaiting. If there is any opportunity that comes by from government, we will examine it. At this point of time, we don't have any. What are the expectation on the raw material side? Expectations since you. What you are aiming to say? Can you elaborate? I mean, what is your view on the raw material side, sir? Raw material is going to stay stable in the current levels. There is no volatility at this moment seen. Our prices are always- We have a back-to-back arrangement with the customer, with a lag of around 3 to 6 months, depending on the arrangements. So that is compensated mostly by the customers. Thank you, sir. Thank you. The next question is from the line of Saurabh Chatre from an individual investor. Please go ahead. Hey. Hi, all. Am I audible? Yes, yes. Please go ahead. Yeah. First, congratulations for very good set of numbers. I had a couple of questions. One is regarding the EBITDA margin. Obviously, the EBITDA margin is currently on the higher side of our guidance. Do we see that for the rest of the year, we can maintain these kind of margins? We are very bullish. We hope that we will maintain that. Okay. That is good to hear. Thank you. Secondly, wanted to understand for four-wheeler, I mean for the products that we develop for four-wheeler segment and two-wheeler segment, is there any margin difference between the two or do we, within three years' time, will there be any margin difference? I know right now maybe the volumes are less, and we cannot comment. What is our working target? There will be margin or it will be the same facility? Margin would remain approximately at similar level for four-wheeler as the industry margins are same. However, our efforts will be to make it better. That will be our direction because most of the facilities do exist in the organization. But currently, for guidance purposes, the margins are similar to the current level. Okay, cool. Good. Thirdly, just one last small question. For CapEx, we had said around INR 100 crore and with the run rate of around INR 100 crore this year. If I heard the initial part of the call right, we have already spent INR 28 crore. So the rest of the guidance remains same for CapEx as well? Plus there will be some OPEX as well throughout the year. So what will be the total cost, I am trying to figure out. What will be total expenditure from our side or total spend? Yeah. The INR 100 crore takes into account our maintenance CapEx as well. Okay. Overall, as we said, over 2-3 year period, we said we will spend 250, 300. But this year it should be around INR 100 crore all included. Correct. Sorry, in that 250, are we saying we will be augmenting the capacity within our existing plants or are we targeting new plants? It will be a mix of augmentation. It could also be some portion for four-wheeler, some part of it. I think those are all things that are going to be crystallized. This includes the new factory for four-wheeler. Okay. Got it. It will be a new factory. Okay. Thank you very much and all the best. Thank you. Thank you. The next question is from the line of Shubh from Ratnatraya Capital. Please go ahead. Hello. Yes, please. Go ahead. What is the pattern on potential revenues from Hero? A follow-up to the same thing, will you be supplying for the new subsequent models, or will you also be supplying for the previous models that already exist for Hero? We are working as of now on the new models which will be coming out in next 2, 3 years. These are all new models and the premium models wherein we are working for the new projects and new products also. Understood. My next question is, usually LEDs have lower margin, but in your case, you are sort of making the same margins on LEDs and halogens. Do you think this will remain for the 3 years or 4 years period? Yeah. Our margin guidance remains the same, what we have mentioned. Already 55% of our portfolio is LED. Right. So to that extent it is impacting our margins, yes. Understood. The last question, what is the split of order book in terms of LEDs and halogens? All order book as of now is 100% for LED only. No conventional as of now from our customers. Understood. That's all. Thank you. Okay, thank you. Thank you very much. The next question is from the line of Karan Kokane from PGIM India AMC. Please go ahead. Yeah. Thanks for the opportunity. I'm audible? Can you hear me more? You can speak a little louder. Yes. Sir, I just had one question. I can see that we have almost 30% of our revenues coming from HMSI and another 25% coming from TVS. Both of these OEMs have been doing quite well in the domestic two-wheeler market, especially HMSI, whose supply chain challenges have now been resolved. Given the fact that two-wheelers is expected to outperform the automotive industry and within that HMSI and TVS are doing particularly well, what is your expectation of revenue growth for FY 2025? We are very bullish. We hope that this year it is going to be very good. But any range or any ballpark number or any multiplier of the industry that you can share? See, generally we give a guidance that what we feel in the current environment, not just in the current year, it should be at 15%-20%. Some years will be far more than that. Some years will be in this range. I think from a generic, that's the only guidance we provide. But this year it seems to look quite optimistic. Understood. Thanks for that. That was my question. Thank you very much. The next question is from the line of Sahil Sanghvi from Monarch Network Capital. Please go ahead, sir. Yeah. Hi, sir, and congratulations for the really good set of numbers. My first question was, do we have any kind of update on the insurance claim? I mean it has been more than one year. What is the status on that and when can we expect some developments? Sahil, regarding this insurance, we already informed. We filed the insurance claim and this is under process, so it will take some time. Second thing, our policy is on reinstatement basis. We are progressing very fast for all reinstatement of all assets and construction of building is at advanced stage. Maybe in another 2, 3 months it will be all over. Got it. Secondly, I mean, I wanted to just appreciate the pictures and all the descriptions you showed us and the technologies you're working on. The first 10 pages, I mean, report, that's really good. Can you tell us what is the development on those fronts? I mean, which stage are we? What is the opportunity over there? What are we trying to achieve on these technologies like microlens array lamps and capacitive touch, ambient lighting? Yeah. I would like to skip naming the technology on this forum. We are working on certain technologies. We had demonstrations at tech shows at our customers and they were very much appreciated by customers, and they have given us project to develop proof of concept of the technology, which are already in progress and at various stages. Some are ready and some are in the process. Based on that, we are going to get RFQs on this new technology product, which will then go into the development process. The idea here is to beat the curve of normal progression in four-wheeler, because if we enter through technology, then we will be very successful. That is our approach. Right, sir. Understood, sir. This is quite helpful. And sir, for, say, FY 2025 and 2026, what kind of confirmed orders do we have for four-wheeler? Will you be able to quantify that, four-wheeler lighting? Not at this moment. I think maybe in next conference or maybe after that, we will be able to give you some guidance. A lot of things are happening. We have good RFQs because now RFQ pipeline is full, which is the first step. And now we are making efforts to convert them into tangible opportunities. So we will be able to give you guidance in some few months. Fine, sir. Thank you. All the best, sir. Thank you. Thank you very much. The next question is from the line of Hitesh Goel from Ridhish Advisors. Please go ahead. Thanks, sir, for taking my question. Sir, my question is on these new technologies again. Are you getting. I thought Honda four-wheeler will actually be a natural customer on these technologies, right? Because we have such a good relationship. Are we supplying to Honda cars as well? Would that be our first customer on four-wheeler then? We are not supplying to Honda cars. At this moment, we are unable to disclose any name of the customer for obvious reasons. We also don't have permission from customers, and we are under NDA with them because it's a new technology. As it progresses, we will let you know. Okay. Sir, on this Daimler order, can you talk us about what is the size of the order and all? What can be the potential size of European order that is. Yeah. Revenue we will not be able to disclose at this moment, but these orders are for low volume development cars. We got the first project. We got the vendor code, and our entry into Mercedes. First order was executed successfully, which was their trial of PM. Based on our performance, we got the second order for a headlamp and a tail lamp, which is also for development cars and this we will be supplying in next 2 months. And sir, my last question, basically if you can give us some direction, I know it's too early days, but say, for example, today four-wheeler is 3% of total revenues. Depending on your safe assumptions at next 5 years, what can be four-wheeler as a percentage of your revenue? At this moment, for all guidance you take, it is even less than 1%. Our direction is to take it to a significant level in coming 5 years. Could be double digits, right? Significant would be. Yeah. Absolutely. Okay, sir. All the best. Thank you. Thank you. Thank you very much. A reminder to all the participants that you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question. As there are no further questions, I would now like to hand the conference over to Mr. Sahil Sanghvi for closing comments. Yeah. I just wanted to thank the management for patiently answering all the questions and on behalf of Monarch Network Capital, we thank all participants. Sir, would you like to give any closing comments? Yes, sir. 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. On behalf of Monarch Network Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.