Q4 23/24

May 23, 2024

Summary

FY24 sales rose 9.83% to INR 2,014.37 crore and PAT increased 18.77% to INR 165.84 crore. FY25 organic growth guidance is 12%-15%, with investment and new passenger-car, hub-motor and lighting opportunities supporting longer-term expansion.

Ladies and gentlemen, good day, and welcome to Fiem Industries Limited Q4 FY24 earnings conference call hosted by Monarch Networth Capital. This conference call may contain certain forward-looking statements about the company, which are based on belief, opinion, and expectation of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sahil Sanghvi from Monarch Networth Capital. Thank you, and over to you, sir. Yeah. Good evening, everyone. On behalf of Monarch Networth Capital, I welcome you all to the Q4 and FY24 conference call of Fiem Industries Limited. 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. Without much delay, I now hand over the call to Mr. J.K. Jain, Chairman and MD of the company. Over to you, Jain sir. Thank you. Good afternoon to everyone, and welcome to the Q4 FY24 earnings call of Fiem Industries. Joining me today on the 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. The investor presentations and the results have been published on both the company website and the stock exchange. I trust that all of you must have reviewed the same. Fiem Industries has reached a big milestone, posting its highest ever sales by exceeding INR 2,000 crores and attaining a net profit of INR 156 crores in the financial year FY24. Your company has delivered an outstanding performance showcasing robust results for both the last quarter and the entire year. The two-wheeler industry is growing strongly, with the production volume reaching 21.5 million units in FY24. This increase is due to the improved consumer sentiment and higher rural demand. April numbers for the two-wheeler industries also reflect the robust trend in the OEM volumes. We believe this growth will continue in the coming years, reaching new heights. For the full year FY24, our valued customers have also done well, with Honda, TVS, Suzuki, and Yamaha all achieving double-digit growth this year. Their confidence in future growth is demonstrated by the plans of many OEMs to set up new plants to meet the growing demand of the market. We also see good growth in export, with Hero MotoCorp and Harley-Davidson developing new models specifically for the international market, backed by the success of the X440 locally. Additionally, TVS's acquisition of the U.K.-based Norton has led to the collaborative efforts in developing new products for the Norton brand. We thus believe that overall demand outlook continues to be strong. In order to position ourselves for this demand, we are also preparing for a major capital expenditure program. We expect to spend INR 250-300 crores over the next 3 years to drive our future growth. In the last quarter, I announced that your company had made a breakthrough in the four-wheeler passenger car segment in the European market. I am delighted to share that we have also received orders from the reputed OEMs in the Indian passenger car segment, also. We continue to make significant strides in our journey, marking this as a major milestone as we expand into the passenger car market in future. Further, I am pleased to inform that our board of directors have recommended a dividend of INR 20 per share on the enhanced share capital post to 1 is to 1 bonus share. I now hand over to Mr. O.P. Gupta and the finance team to update the operational performance. Thank you. Thank you, sir. Good afternoon to everyone. First, I will present Q4 numbers, after which I will cover the full year FY24. The company has registered quarterly sales of INR 554.7 crores in Q4 of FY24 as compared to INR 432.84 crores over the same quarter last year, registering a growth of 28.1%. The EBITDA in Quarter 4 was INR 75.46 crores, translating into an EBITDA margin of 13.6% as compared to INR 60.21 crores over the same quarter last year with EBITDA margin of 13.91%. The PAT of the company has also increased to INR 47.1 crores as compared to INR 38.05 crores in Q4 of FY23, representing an increase of 24.02%. Now, I will briefly cover the numbers for full financial year 2023-2024. During FY24, the company has achieved net sales of INR 2,014.37 crore as compared to INR 1,834.04 crore in FY23, representing a growth of 9.83%. As a percentage of total automobile lighting, the LED lighting stand at 52% in comparison to 49% during last year. EBITDA stand at INR 267.97 crore as compared to INR 247.85 crore during FY23. PAT of the company stood at INR 165.84 crore as compared to INR 139.63 crore during FY23, which is higher by 18.77%. During the year, the company has made a Capex of INR 85.86 crore. With this, I end the financial brief. 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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of CA Garvit Goyal from Invest Analyst Advisors LLP. Please go ahead. Hi. Am I audible? Yes, you are. Please go ahead. Good evening, sir, and congrats for a good set of numbers. I have three questions. One is, our company has consistently delivered bottom line growth year after year, and while this is commendable, I am concerned about our top line growth. Despite having the market clients, we are only achieving a lower double-digit top line growth. Although maybe outperforming the industry, I believe a company of our caliber under efficient management should adopt a more aggressive approach to increase the market share and diversify further. Can you please elaborate on why we are not pursuing more aggressive strategies for the top line growth or what can be the steps that we are planning to take to improve our growth trajectory further? That is my question. Thank you for that. I think as you rightly said, we have outperformed the industry over the last many years. Looking ahead, if you notice, we have actually made a lot of investments over the last 12 months and a lot of investments are now envisaged as we just announced a large Capex program. So in line with what you are saying, we have already thought through that there are several new areas that we want to work in. The four-wheeler segment is obviously something that could be a very big growth driver for us. The other segments including hub motors and others are also being talked about. So I think your point is already noted. The management has already been working over the last 12 to 18 months towards several new initiatives and you will see the output over the next couple of years. The investment for that is being made as we speak. Sir, you mentioned about the Capex. What is the area that this INR 250-300 crore Capex will go into? It will go across. One is obviously enhancing our existing capacity for the current segment where there is certain capacity requirement in South India. There is also going to be Capex for the new projects which we announced on four-wheeler. There will also be Capex around the hub motor unit. All of that combined, we envisage INR 250 crore to INR 300 crore Capex to happen. Sir, I am also concerned about the apparent delays that are happening in Fiem and the Gogoro project for manufacturing the hub and the motor controller. Could you please explain why there has been no meaningful contribution to our top line so far? Additionally, please also provide some details on the capital expenditure incurred on this project to the date and specify when we can realistically expect to see some revenue generation from this area. Okay. About this Gogoro, what they did is because initially they planned for market B2B. That was the one bottleneck because the prices of first model which is being launched was little bit on higher side. The acceptability from the market was very poor. Now company is already working to launch new vehicle which will be competitive with the prices, which is equal to the part of the vehicle which is being already in the market, and company will be soon giving that overall information to launch this kind of vehicle which will be at par of customer. At the same time we will be doing the indigenization for this hub motor and motor controller because once it will be indigenized, the PLI and other scheme can be managed by Gogoro. Another three months time we will be in position to give you the exact figure and the overall volume. Basically, we were not able to give more because the production of Gogoro was not there. Not there. They have produced so far only 5,000 numbers. Basically, it is driven by the OEMs. Do you see any kind of revenue coming into FY 2025 from this area? We are expecting. It is totally dependent on the customer as well as plan from Gogoro. Okay. Lastly, on the innovation side, could you also provide an update on the development timelines and the current state of that USB charger and the gap sensor which are being developed with technical assistance from Toyodenso? Further, what are the new innovations in the products in terms of new product development that we are doing right now at our R&D centers? Toyodenso, it is not the new product. It is being developed and already in the market. It is under supply since last five years, wherein we are working for some new projects also, which will be still under discussion with customers. What are the new products that we are doing at our R&D centers, apart from these things? Yeah. We will be working for so many projects, especially for the lighting areas only. One is the major thing which we are planning right now to establish our EMI/EMC lab, which is necessary to have testing and validation in-house. Laser. Laser headlamps. Yeah. Yeah. I will just add on. We are working on three main technologies. One is a laser technology, which is a technology of the future, and that will go both in two-wheelers and four-wheelers. We propose to be the first in the industry to launch that. We are working very closely with the customer. Secondly, we are also working on a night vision, which is the need for A segment, B segment, and D segment cars. So we are working on that technology along with customer. Third, we are also working on the ambient lighting technology, which is mood lighting, which is specific to four-wheeler. That is also new technology that we are working on. Apart from that, we are also working on certain technology which we cannot disclose at this moment. Understood, sir. Sir, what is the guidance for FY 2025 in terms of top line? It is difficult to give a number on this, but we will grow organically in this. Around 12%-15% is what we anticipate in the coming year. However, if some targets come across our way, we will capitalize on that. But at this moment, we anticipate 12%-15%. Understood, sir. That is it from my side, sir. All the best for the future. Thank you. Thank you. Next question is from the line of Gagandeep from Invest Analyst Advisors LLP. Please go ahead. Mr. Gagandeep, your line is unmuted. Please proceed. Sir, my question is already answered. Thank you. Okay. Next question is from the line of Viraj from Simple. Please go ahead. Yeah, hi. Thanks for the opportunity. Congratulations on good set of numbers. Just couple of questions. First is on the PV part. This new order which we talk about, if you can just give some core perspective in terms of is it an existing order or it is a new product development which we backed for, and what will be the size of the order, and when do we expect it to commission? One of the orders that we received for headlamps for European auto is a totally new development. We are designing it in FIEM. The development is on. The design has already been approved by the customer. Prototype is under approval, and this development time will take another six months for the tooling to be developed. Then we will start the supply, let's say in around end of this financial year, we should be starting the supply. The expected revenue will depend on the offtake from the customer. Sir, on the Indian OE order, any update you can give in terms of size of opportunity? When do we expect it to start? Yes. We received order from three of the Indian customers already. One of the product is under development, and we believe that we should be able to rationalize it fast. In next three months, we will start in a small way for the one small lamp. Other RFQs we have started receiving and working on that. This order is for the headlamp piece or is it more on the tail lamp or any color you can give? That is one. When you say two, three years, how much we are allocating for the four-wheeler piece? This order is for small lamps at this moment, but LED new technology lamp. This, we are doing it from our current plant only. We are not investing specially for this business because we have capacity. This design is complete and approved by customer. The product is under tooling at this moment. Okay. On the CapEx piece, when we say two to three years CapEx on next two to three years, earlier communication was when you look at our existing capacity, which is largely for two-wheelers, we have sufficient capacity to cater to, say, around close to INR 2,500 to INR 3,000 crore scale if the market shifts to LED. Hence, the CapEx expectation for next two, three years at least was very muted. When we say this INR 250, INR 300 crore even for PV, we are not going majorly in a brownfield or not in a greenfield way. So what are the major components of this CapEx coming? If you see currently our CapEx is already INR 86 crore. If you see organically, if you were to put next two, three years numbers, you will already be at INR 200 odd crore. Additionally, we built in some more CapEx for expansion at our Hosur plant and also for four-wheeler that, as I said, is a TBD number, which will be crystallized over the next six, nine months. So that's the broad CapEx range we are giving. Okay. In terms of the existing two-wheeler business, if you look at our production, if you compare the production numbers of, say, HMSI or Yamaha for last, say, three quarters, our sales performance has been underperforming compared to the production growth we are seeing in builds to customers. What explains the underperformance? I think what you should do is, ideally look at more a yearly and a three-year trend. We have Yeah, I am looking at last three quarters, so almost a year is what I am looking at. Yeah. Actually, except for the first two quarters, last two quarters we have done better than their volume. What happens, and we explained this last quarter also, sometimes one product for a particular customer, stock may be not there. If you look at overall volumes and overall our growth, and if you look at on a yearly basis, you will not find much of a difference there. Can you give the volume share which you used to give earlier in terms of headline team names for the top four customers? Sorry, Viraj, that volume share actually we try to work out, but these information we take from the customers as well as from internal sources. This time we are not able to do that. Okay. Just two more questions. On the gross margin part, and again on the realization as well. If you look at this particular quarter, we have seen a sharp moderation in our gross margin. What is it driven by? On realization, as you see globally, there is a change in technology, in LED itself, which has driven a drop in realizations across the board. For us also, are we seeing any similar trend playing out? You are specifically questioning the gross margin or you are talking about the EBITDA margin overall? No, my question, one is on the gross margin, sir. If I look at this particular quarter, Q4, we have seen a moderation in gross margin, almost 200 basis points year-on-year. What is it driven by? If we see the raw material is same, even the other costs is the same. Only some increase in the manpower cost, this is the main difference. Otherwise, there is no big difference. I think I would suggest Yeah. Rather than quarter, because what happens, there is always a lag in the customer compensation of the raw material costs. It is always better to see annualized working of gross margin. If you see that, the gross margin has not changed. Okay. Just one more question. On the realization part, if you can just give some perspective. Are we seeing any moderation in realization, especially in the LED part? No, I think it is just the same. It continues because we have back to back compensation from customers, and it continues with the same trend. Yeah. Okay, got it. On the replacement business, if I look at this business, for last 2, 3 years, we have seen a very healthy growth. Given where the market is shifting towards LED, usually the replacement cycle is much longer than what one would think. So what explains the growth in replacement business for us? See, our replacement business is going on same requirement from whatever the products we are selling earlier. The only difference is that the lighting requirement is no more because of the LED. It is steady. So even during the current year, we registered a good growth in the replacement market. It is INR 151 crores. As the vehicles become old, the old technology product requirement goes up. Therefore, when we supply that, you see the growth in the business. So it always happens like that. As the time passes, the lamps get replaced, the bulb technology, not the LED technology. Therefore, you see the growth in our replacement business. Okay. Any update on the insurance for the fire claim? This is we already informed. We already submitted our claim, and this is under process. Okay. I will come back in queue. Thank you. Yeah. Thank you. Thank you. Next question is from the line of Jatin Chawla from RTL Investments. Please proceed. Yeah, hi. Thanks for the opportunity. Just checking on the India PV side. Did you say you received orders from three customers, or was that RFQ? We have orders total from three customers, and we have RFQ from another three customers. We will, in short time, be working with six customers in OEM, including exports. Got it. On the CapEx side, I do not know why you guys are calling this as a large CapEx, because it seems you are already spending INR 80-85 crores every year. This INR 250-300 crores is the same run rate. It does not seem there is any big pickup in CapEx or you are not seeing growth revenues to invest going forward. Just some understanding on that. Our maintenance CapEx is more like INR 40-45 crores. We are just seeing that over and above maintenance, there is some requirement, as we mentioned, there is requirement at Hosur plant. There could be requirement of a four-wheeler thing at some point in future. Given that this question has been asked of us several times, of a guidance, we are giving a number that we think is likely to happen. Got it. So this INR 250, INR 300 crores, what sort of asset turnover one can expect? What sort of incremental revenue could come from this? I think the- Two, two- Six to seven. It's the- Almost three times. Three times is what we expect. Understood. This hub motor Capex that you are mentioning, will this be for beyond Gogoro, or this is largely only to service Gogoro needs? This is as of now is for Gogoro. Further on, once this overall facilities will be ready for industrialization, we will work together with Gogoro to cater this motor, hub motor and motor controller to other OEMs also. Got it. In this quarter, we have seen some pickup on Yamaha revenues as well. Last few quarters the run rate was more around INR 70 crores. We have seen this go up to more than INR 80 crores. Any new models that have come in or this is just seasonality where the March quarter was strong? Yeah, there are two models which is being launched during last year. This one is of Aerox 160 and other model is for export. So those models have given us positive growth and sales figure overall. Going forward, I think there were another five, six models which are going to come. Should we expect that this run rate will continue to go up? Yeah, of course. We are very much hopeful for this and we are working on that area. Got it. Just one last question. Hero, I think you spoke about the fact that on the Harley side, there is quite a bit of traction. But beyond the Harley and in terms of some of the more mass market models for Hero, are we seeing any kind of orders coming for those as well? Yeah, there will be a few models which are already being developed and might be next quarter these models will be launched, and thereafter we can give you the right picture which model is being launched and what all kind of product is being developed by us. But there are six, seven reds which are under pipeline under Hero model, mass models, as well as Hero Harley also. Got it. Thank you. I will go back to the queue. Thank you. Next question is from the line of Omkar Arora from Iraja Capital. Please proceed. Hi, sir. Congratulations on a good set of numbers. I have a couple of questions regarding the long-term view of the company. If we see the sales growth for the company over long term, last 8 to 10 years, we have grown at a CAGR of almost 11%. I understand that we have four major revenue streams moving forward, which are the two-wheeler business where we are already catering, where we provide lights and mirrors, LED lights within the two-wheeler segment, new revenue segment where we plan to cater to the four-wheeler segment and new products under our JV with Gogoro. My question is, what kind of growth do we expect in the next 3 to 5 years in each of these revenue streams? Let us look at organic business. Organic business is going to be driven across by the four-wheeler industry growth. We have highlighted that we have a leadership position there. We have a leadership position in the EV segment. We also have indirect exports. To that extent, in the core two-wheeler segment, we feel optimistic that the growth is coming back. You mentioned last 10 years, out of that last 5, 6 years have been very tough for the two-wheeler industry. Right. The core organic growth should be stronger. We expect that, given that the two-wheeler industry will do well, we should do even better. We should definitely do 12%-15% of organic growth. Over and above that, there are several areas which we have highlighted, which we are looking at, including the hub motor business, including the four-wheeler business and other opportunities that may arise. I think we are preparing ourselves for those opportunities. If you look at sum of parts between organic and other, we do expect our growth to be much better than what you have seen in the past. We have set ourselves some ambitious targets on that, but some of them are binary and will depend on some of these outcomes, especially on the four-wheeler and hub motor. You may have to be patient for a few quarters before they kick in. Is there any kind of numbers that you can throw on the four-wheeler segment in particular? What kind of numbers do you expect to do in the next one year, two year, and long term, five years or so? Not at this moment. As you are aware, the incubation period for four-wheeler is little longer. We are already getting inroads into the customer. That is step one. I think by end of this financial year, we will be ready with our proper business plan, and will be sharing the numbers accordingly. What kind of margins do you expect in this segment, the four-wheeler? Four-wheeler segment has similar margins as two wheelers. However, the value goes up because the price range is higher. You take more on the absolute value and the margins remain similar. Okay. But don't you think you'll face stiff competition in this segment as compared to the segment where you are leaders already? That will kind of shrink your margins here. But we are preparing accordingly. Okay. I have one last question. Can you also provide some details around the total capacity and the current CapEx utilization and the growth in the coming years? Can it be met by the current capacity or do we see more capacity coming up in next few years apart from this financial year as well? If you can throw a timeline of capacity that you must have prepared. About the current capacity levels, we are around 80%. As you know, in our business, we have a good time for development and during the main time of design and development, so we build the capacity. So capacity building is not a big issue for us. Okay, sure. Thank you so much, sir. Have a nice day. Thank you. Next question is from the line of Varun Arora from B&K Securities. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Sir, just some clarifications I want. Previously participant, one asked, the growth you said 12%-15%. So that's the revenue growth you are expecting for the FY 2025? That's, yes, organic revenue growth, yeah. Organic revenue growth. Okay, sir. Yeah. Just another thing, on the PV Indian OEMs. So you won an order, and you said one project is under development out of the three customers. Is this the right understanding, sir? Sorry, could you repeat your question? Basically, there are three customers you got, the orders from the Indian OEMs, right, sir? Yeah. One project is under development, which will come out in next three months. Yes. So three customers. One is export to India at this moment and three additional is RFQ phase. Okay, and all projects are under development now? I mean, so after three months- The orders that we have, they are under development and one product of Indian customer in short lead time, I think we should enter into SOP in next three to four months. Okay, sir. Sir, if I may ask you, how big the order is which you have got? This is a small order at this moment, around INR 10 crores annually, approximately, for a full calendar year. But it is more of a beginning to start with the customer. You will start the execution in FY 2025 only. I mean, the INR 10 crores you are executing for FY 2025. In the current year we will start the SOP. Yes. Okay. Can we say the next year in FY 2026, this will grow by the double or triple? I mean just give me some guidance around that one for FY 2026. Next year this will grow. There are adjacent products for which we are now receiving RFQs because we are developing this product. This product will get us more products also with the same customer. Okay, sir. The last clarification I want on the Hero product pipeline. You said there are three products right now under the pipeline. There are seven products as of now under development. Okay. Out of which three are on tooling side and another three is from designing side. So, total we have six projects as of now. Okay. Further on RF, we are working on the RFQs also. Okay, sir. That will be all from us sir. Thank you, sir. Thank you for the opportunity. Thank you. Next question is from the line of Jyoti Singh from Arihant Capital Markets. Please go ahead. Ms. Jyoti, your line is unmuted. Please go ahead. Yeah, sorry. Thank you for the opportunity. Sir, I just wanted to understand that the new product that we are working on, that is called ambient mood lighting. If you can, able to explain how big is this opportunity and we already having a competition in this segment, and along with that, a few of the auto ancillary that is already working on it. So how big the opportunity that we have and what are the target in that? Thank you for this question and let me tell you, there is no very well organized broad, organization today in the country who is serving this market because this is a growing market with a big potential. The ambient lighting, or we call mood lighting in the cars. Especially all the new EVs have this feature. We are exploring this market in a very focused manner. We are getting very good response from the customer. Currently we are working on three RFQs on this because we already could manage to get RFQ from the customer, and we hope to finalize at least one of them in this financial year. Having done that, it will lead to more such businesses. We see a high potential in this business. Okay. Thank you, sir. The scope can go up to in let's say 3-5 years up to INR 500-INR 1,000 crores. I mean, that is the kind of opportunity it has. Okay. And sir, another question on the premiumization side. Now there are a number of vehicles that is upcoming time more in the premium segment. How we are seeing the increased content per vehicle, if you can explain on that side. The trend is, Jyoti, electronics is increasing in all vehicles. The content of electronics is going up exponentially in all the segments, and both hardware and software. Related to this, cybersecurity content is also going up because data security is becoming more and more important. And lighting as such is having lot of electronics into this. We expect the content to go up in future for all the lighting products. So currently, sir, we have done any price hike? Pardon me. Say again, sorry. Currently, we have done any price hike in this quarter, or we are planning in the upcoming quarter? Price rise? Yes. You are asking about the price hike? Yes. No. Pricing gets settled at the time of development, and once the product is designed, there is no change. It is only the raw material change, which is passed through, and we get compensated by the customer for that. Most of it. Not all, but most of the customers. Okay. Thank you so much, sir. Thank you. Thank you. Next question is from the line of Rahul Pichha from MultiAct PMS. Please proceed. Yeah. Hi, this is Akshat here. First of all, congratulations on very good set of numbers. I had two questions. My first question is on the capacity utilization side in our organic business. If you could just spell out what is the capacity utilization on an average across plants. How do we look at brownfield expansion, given there would be constraints which you said in the southern part of the country. That is number one. I will follow up with second question afterwards. About the current capacity utilization, this is around 80% in the last quarter. Your next question is about the capacity enhancement in the south units. We are doing that. Yes. We are investing over there. Okay. With all these PV orders and RFQs in hand as of now, we have got already three PV orders which are in tooling and development stage, and three for RFQs. While we understand that it will be like a starter for FY 2025, from FY 2026 onwards, what kind of a contribution do we expect from these PV orders to our overall revenue? Do we think that this could be like a 10% of revenue from FY 2026 onwards? I think it is too early to estimate this. I think I had just shared couple of minutes ago. By the end of this year, we will try to crystallize our plan for future. Too early to estimate as of now on the forthcoming revenue. Right. Right. Okay. That is all from my side. Thank you. Thank you. Next question is from the line of Divyanshu Sachdeva, an individual investor. Please go ahead. Hello. Yes. Sir, am I audible? Yes, you are audible. Please proceed. Sir, I just had very basic question. Is it possible for you to give some guidance or maybe some outlook on the two-wheeler industry going forward, maybe for the next year? We believe that if you look at the last five years, you will see that we are still below the peak that was in FY 2019. There is no reason why two-wheeler industry should not grow and surpass that very soon. As we mentioned, the April numbers of the industry look quite robust. So, double digit growth is something that we definitely expect, going forward, not just for the current quarter or two, but for the next couple of years. We see all the inroads for the two-wheeler industry to do well. Okay. Is it possible for you to share some margin range in your mirrors business, maybe any basic range for that? Sorry. Margin specifically for mirror business? Yes. Is it possible for you to give some range in that segment? No. The margin across the products are same, because we are supplying to same customers. Okay. Sure. Thank you. Thank you. Next follow-up question is from the line of CA Garvit Goyal from Invest Analyst Advisors LLP. Please go ahead. Hi. Thanks for the opportunity again. Just one question on the margin. Do we see any kind of improvement in margin in FY 2025? So, we are already on 13-plus percent, and we definitely will try to level our best, do best for the improvement of the margin. Okay, sir. Thank you. Thank you. Next follow-up question is from the line of Viraj from Simple. Please proceed. Yeah. Hi. Thanks for the opportunity. Just two, three questions. One is on the PV part again. You talked about three confirmed orders, and then you have three RFQs, and then there's the export order, which we announced last time. So internally, what milestones you'll be looking at before putting in or committing to a greenfield Capex? Committing to a greenfield project? CapEx. CapEx. At this moment, for this financial year, we do not see any greenfield investment for passenger vehicles. Honestly, I don't see next year also, because going forward, we will be targeting one big order, which we anticipate in next financial year, which will lead us to set up a plant. But today, for next two years, we will not be investing in greenfield projects for passenger vehicles. The existing orders which we have got, would largely be niches or in terms of opportunity scale, they will be like sub INR 50 crore or sub INR 25 crore kind of opportunity scale? Currently, they are niche orders, and this will be produced in our existing facilities only. Okay, got it. Second question was on the two-wheeler piece. If we look at the other customers where in the past I have talked about EV players are the major contribution there. If you look at some of our top customers like say, Ola and few others, they have seen a very healthy ramp-up in volume and that is continuing. But when I look at our others customer revenue base, it is largely been flat. What explains the divergence? See, you are talking of the customer-wise, business share, which share is the representation, right? Yes, sir. See, we already shared this, our top five customers, it is already there. Rest all, somebody is increasing, somebody is decreasing, but because our turnover is almost 10% growth. Because of that percentage that remains same in the range of 11%. Okay, because that- And if you see the total EV industry volumes from 2023 to 2024, the numbers are from 7 lakh odd to 9.5 lakh EV. You are aware that because of various changes to FAME subsidy and all, there have been some challenges to a few customers. For us, we have still grown this pie significantly. What Arvind highlighted, as a percentage, it may still look the same 11%, but as an absolute number, we have gained here. Yes. Okay, just two more. When you talked about six or seven projects for Hero, are all these new products or even for some of the existing brands, we will be looking to supply them? No, these are all new products. Okay. And last was on the Yamaha piece. Recently they came out with the press release that they are moving some of the global models, platforms from ASEAN to India. For us, how should we understand the opportunity? Would we be the sole supplier or any color you can give there? Recently you have heard this Aerox 160, which is being launched not only for India, and we will be soon starting from here to Indonesia also. All models, whatever is being contemplated right now from OEMs are to be made for Indian market as well as for global market also. No, my question was about existing product brands, the production being moved from ASEAN to India. In that sense, I was just trying to understand would we be a beneficiary or? Yes. We will be doing and this is already been working like that already. Whatever products as of now is being made here is being exported to ASEAN countries too. Okay. Thank you. Thank you. Next question is from the line of Ravi Purohit from Securities Investment Management Private Limited. Please go ahead. Hi. Most of my questions have been answered. Just one broad question at the company level. I think we have discussed a lot of initiatives over the last six months on the call. Be it our initiative with Gogoro, new business coming in from passenger vehicles, new RFQs for Hero, Harley. I think we have also mentioned today during the call that we are looking at 12%-15% growth organically. So if you put all of these together, what kind of number is the company aspiring to do in terms of revenue over the next two to four years? Will it be a difficult task for us to hit INR 4,000 crore revenue in three years, four years' time? We are looking to it. Yeah. There are many opportunities we have seen. We kind of highlighted them. What are these opportunities? How are we working around them? But we do not want to give you a specific guidance number, but organically plus inorganic, there seems to be a large potential. Okay. Thank you. Thank you. Before we move to the next question, a reminder to the participants, anyone who wishes to ask a question, press star and one. Next question is from the line of Nikhil from Simple. Please go ahead. Yeah. Hi. Hello. Am I audible? Yes, you are audible. Yeah. Just one question, sir. As you said, the total EV volumes are 7 lakh-9 lakh. If you have to understand the total size of the lighting which the EV volumes would be corresponding to, what would be the total size? Would it be approximately INR 100 crores or would it be still lower than INR 100 crores? The total size of lighting which the EV volumes would be corresponding to. I think the better way of looking at it is EV is right now 5% of the total industry at this point of time as well in terms of overall number. I think taking one benchmark number will not be correct, whether the per EV content is INR 2,000 or INR 3,000 or INR 4,000, because different EVs will be priced differently, especially as this number moves from 5% to a higher number. So if you want to take a benchmark, you can take INR 2,000, INR 3,000 per vehicle. But that may not be the right way of looking at it, because in future, you may have more premium EVs coming or less premium coming. Correct. I just wanted to understand what is the approximate size of lighting which EV is corresponding to today. I am not trying to any extrapolation for future. Anyway, second question, based on the pipeline and RFQs you are finding in Hero, over the next three, four years, do you see Hero can be one of our top five customers? Or would you say the pipeline does not give such a confidence? We are very much bullish about this, and we will be working together with Hero, not only seven projects, but further projects are also in the pipeline. We hope that in our overall customer range, Hero will be also on the top. Okay, fine. Thanks a lot, sir. Thank you. Next question is from the line of Rohan Advad from Pratt Capital. Please go ahead. Yeah. Thanks for the opportunity. Sir, I just wanted a clarification. When you say 12%-15% organic growth, what do you mean by organic? Is it just a two-wheeler business? Yeah, it just means our basic current two-wheeler business and not the new business which may come significantly, whether it is Gogoro or whether it is the PV business which we are attending. Got it. Sir, and in one of your comments, you said that the ambient lighting opportunity could be a INR 500 crore-INR 1,000 crore opportunity in a few years. Can you elaborate on what that opportunity is and what are you doing as a company to address that? Yeah, sure. See, each of the new cars which are coming in, they have this ambient lighting or what we call mood lighting. Mood lighting has an electronic component also. There is a driver which is used to light up the interiors of the car. And this lighting goes not only on the four doors, but it also goes on the central console and the dashboard. And this overall package ranges from ₹3,500 to ₹8,000 to ₹10,000. It is good content in per car. So we are working aggressively with our customers to gain this opportunity. Okay. Do you have any disadvantage versus the incumbent or is it a new opportunity where you and the competitor would be equally competent to address? We do not have disadvantage. Rather, I would say we have advantage of the new technology that we are trying to introduce in ambient lighting, and that will be liked and promoted by our customers. We feel we are at an advantageous position in this business. Got it, sir. Thanks for taking my question, and all the best for the next few quarters. Thank you. We have our next follow-up question from the line of Jatin Chawla from RTL Investments. Please go ahead. Yeah, thanks for the opportunity. Just a quick follow-up. For this ambient lighting, is this a technology tie-up that we have done or the technology has been developed internally by the company? We have developed internally and wherever required, we are taking support of one of our German agencies. Wherever required, we are taking its support. But it is developed internally by Fiem Group. Okay, got it. Thank you. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Next question is from the line of Manoj Shaw from Keva. Please go ahead. Hi, sir. Thanks for the chance. Just two quick questions. One was for the 12, 15% growth. What is the underlying two-wheeler OEM growth that we are assuming? 8% to 10%. Right. Is that the OEM visibility that we have, they are asking us to prepare for so much? Yeah. I mean, that is obviously the changes, but this is the current outlook. We do expect this kind of a growth to come through over the next couple of years. Got it. Sir, earlier we used to talk, and please correct me if I am wrong, that the automotive LED mix will improve and we have a higher margin there. Can you just talk a bit about that, how the LED mix will improve and our margins will increase there? See, you are right. This LED percentage of total automotive lighting is increasing as for last year it was 52% in comparison to the FY 2023 where it was 49%. Right. How much- Yeah, about the increasing trend here. In two, three years it is going to touch 75%. How much higher gross margins is it, sir? See, gross margins are same because it is going to the same customers. But the point is that it will be higher realization. Right. How much higher realization, sir? I think we have spoken about it. Sorry if you think this is a repeat. No, I think you are but with 2x or 3x we are comparing with the conventional versus LED as a realization, not the higher margin you are referring. Revenue. Revenue. Okay. Got it. Thank you so much. Thank you. Thank you. Participant, to ask a question, you may press star and one. As there are no further questions, I would now like to hand the conference over to Mr. Sahil Sanghvi from Monarch Networth Capital for the closing comments. Yes. Just want to thank the management of Fiem Industries for very elaborately and patiently answering all the questions. Also on behalf of Monarch Networth, we thank all the participants for joining the call. Jain sir, would you like to give any closing comments please? Yes. Please. 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 questions, please don't hesitate to contact us. Thank you and have a good day. Thank you. On behalf of Monarch Networth Capital that concludes this conference. Thank you all for joining us and you may disconnect.