Q3 23/24

Feb 12, 2024

Summary

Q3 FY24 sales rose 10.32% YoY and PAT 25.86%, while EBITDA margin eased to 13.35%. A European full-LED headlamp order marks entry into passenger cars; management expects stronger FY25 growth and rising LED share.

Ladies and gentlemen, good day and welcome to Fiem Industries Limited Q3 FY 2024 earning conference call hosted by Monarch Networth Capital. 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 guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' line 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 Sanghavi from Monarch Networth Capital. Thank you, and over to you, sir. Yeah. Thank you, Manisha. Good evening, everyone. On behalf of Monarch Networth Capital, I welcome you all to the Q3 FY 2024 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 Managing Director of the company. Over to you, Jain, sir. Thank you. Good afternoon to everyone, and welcome to the Q3 FY 2024 earning call of the Fiem Industries. Joining me today on this 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. The Indian economy continues to maintain a strong growth trajectory. As per the Reserve Bank of India, the real GDP for FY 2024 is expected to increase by 7.3% on year-on-year basis. This growth rate surpasses previous forecasts by the International Monetary Fund, IMF, and the World Bank, which were set around 7% and 6.3% respectively. Despite global challenges, Indian economy has been able to grow at a strong pace, supported by the domestic demand, capital investment, and pickup in the private sector investment. Fiem Industries continues to deliver solid performance and has posted a 10.3% increase in the net sale to INR 483 crores in Q3 FY 2024. I am pleased to report a strong 26% jump in PAT on a year-on-year basis to INR 40 crores. There are more than 20 parties in the conference. For the Q3 of the current financial year, two-wheeler growth industries has registered a robust growth with the production volume of 5.5 million units. We are seeing revival in the rural demand and consumer spending and expect the strong demand to continue in Q4 of the current year. On the electric vehicle front, the government has recently announced a significant boost to the fund allotted to the FAME II subsidy. An additional INR 1,500 crore outlay has been given, which should help the EV industries. During the quarter, EV volume increased to 2.4 lakh units as compared to 1.8 lakhs in the previous quarter. This is a 34% increase as compared to the quarter 2. We are strongly positioned in the EV market and continue to outpace market trends. I am delighted to announce that your company has made a breakthrough in the four-wheeler passenger car segment. It has been selected as supplier for the full LED headlamps for a high-end European car. The company has received the purchase order along with the advances. Further, we have already commenced design and development of the same. We have also made significant progress with the passenger car OEMs in India, some of them in the final stages. This is the first big step towards our journey in the passenger car segment. Further, as you are aware that our board of directors have recommended a bonus share in the ratio of 1 into 1 to reward our esteemed shareholders. Your company is always committed to enhance the shareholder value. I now hand over to O.P. Gupta and the finance team to update on operational performances. Thank you, sir. Good afternoon to everyone. I am presenting numbers for third quarter ended December 2023. The company has registered a sales of INR 483.11 crores in Q3 FY 2024 in comparison to INR 437.9 crores in same quarter last year, which is a growth of 10.32%. The EBITDA for Q3 FY 2024 is INR 64.49 crores, translating into margin of 13.35%, as compared to an EBITDA of INR 59.63 crores, that is 13.62% in Q3 of previous financial year. PAT increased by 25.86% to INR 40.3 crores as compared to INR 32.02 crores in corresponding quarter of FY 2023. During the quarter, the company has made a CapEx of INR 20.61 crores. CapEx for nine-month period ended December 2023 is INR 71.76 crores. 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 touchtone phone. 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. Ladies and gentlemen, you may press star and one to ask a question. The first question is from the line of Ashim Modi from Equirus Securities. Please go ahead. Yeah. Hi. Congratulations, sir, for this new breakthrough in the four-wheeler segment that we have got. Sir, I would like you to talk more about this business and what was the technology spend which was required, and what sort of margins do we expect in this business? Also, what sort of a CapEx into capacity and technology do we expect in the four-wheeler business going ahead? Yeah. Thank you. I am Vineet Sahni this side, and thank you for your question. See, this is a full LED headlamp, which involves the latest technology. As we had shared in the past, we had started this journey by creating the infrastructure for four-wheeler, and we opened our Pune design office also. We had hired the necessary resources. This development is being done at Fiem Industries by our own team, and we are working out the numbers, but currently, we'll be using our existing capacities and no further CapEx is required for this particular business. Sure. Sure, sir. Given the fact that it's an export order, it will be quite incremental on the margin front. Any guidance or anything over there? Not at this moment because the product is at the design and development stage, so we will be updating appropriately in future. Is there any timelines on when this would start picking up? This will pick up in the quarter 4 and beyond. Starting quarter 4 next year. Next year. It will go from quarter 4 of next financial year and beyond, because the development lead time for such product is high. Sure. Are there any thoughts on any sort of technology licensing or any sort of JV we look to do, going forward in this space, or do we continue to expect it to do all the things in-house only? We will do all the things in-house and wherever external supports are required, we have outsourced agencies who would help us. But the responsibility is with Fiem Industries, and we will do the development ourselves. Sure, sir. Thanks. Sir, my next question is regarding the two-wheeler customer wise sales. We have seen a pickup on quarter-on-quarter in Yamaha versus Yamaha production numbers. So any new business that has picked up with Yamaha during the quarter? Rajesh will answer this question, please. Yes, there is additional one model which is being picked, which is XSR model. That model is being converted into Class B to Class D, wherein the product is being now started for domestic as well as export market both. That is the only one model which is being launched during this quarter. Yeah. Continuing on this question, sir, Yamaha, we have seen good ramp-up last year, and then it was flattish or a bit down this year. Could you give us more clarity on how do we see Yamaha business going forward, with what sort of model launch pipeline and what sort of a revenue growth do we see with Yamaha going forward? Yeah. We have been awarded four business for Yamaha, and we are looking at the sales figure with the volume which is being produced as well as export market. Sure. Any quantum on what sort of a growth, or how many models have been picked up and what new model launches are expected over next year? Next year, 2 models will be launched during next year. This is a complete Pardon, I think your voice is breaking. Yeah. Can you hear my voice? Yes, now I can. I think, Rajesh, your voice is breaking, but let me answer. I think specific data points we cannot disclose, but directionally, what Mr. Rajesh Sharma mentioned, there are several projects in the pipeline, and the business pipeline with Yamaha looks good. But specific volume number, we won't be able to give you. Sure, sir. Sure. I think the last question is regarding the order book. If you see in last one year, our outperformance, with respect to two-wheeler industry, has been a bit low. What percentage of our existing order book is currently from LEDs and what sort of a penetration growth could we see in the next one or two years, given the fact that they are at 25% sort of penetration numbers? Yeah. From the new orders for the current quarter, our LED share is 51%. This has increased from 46%, 47% that was there sequentially the previous quarter. The new order book that is there, most of the projects are on the LED side. We expect this number to bump up significantly as we move forward. We had always guided towards 60%, but we think this should move more towards 65%, 70%. Sure, sir. Sure. I will go ahead, thank you. Thank you very much. The next question is from the line of Dishant Jain from Quasar Capital Partners. Please go ahead. The participant got disconnected. The next question is from the line of Jatin Chawla, an individual investor. Please go ahead. Yeah, hi. Thanks for the opportunity. My first question is, when I look at Fiem's revenue growth over the last several years, 8, 10 years, there has always been a reasonable outperformance over the underlying two-wheeler industry. When I look at the last quarter, the two-wheeler industry grew 19% and Fiem has grown 10%. Even for the 9-month period, there is not much outperformance this year that Fiem has over the underlying two-wheeler industry. So what is causing this and when is this likely to change? Yeah. Couple of points there. I think if you look at, firstly, H1, the two-wheeler industry volumes have been pretty flat in H1. Now, if you look at the current quarter, you are absolutely right, the industry has grown 19%, but that is in volume terms. What we are reporting is more our value terms and hence a disconnect. I think structurally, we continue to, in fact, maintain our market share. If anything, we have sort of got several new orders from our existing customers. So there is no loss of market share. What has happened is that there have been a couple of models, so for example, with Honda, there has been a model which was launched for 100 cc Honda Shine. Shine 100. Shine 3. That model has done good volumes, and we are not there present in that. It is a low-cost entry model for Honda. I think because of these numbers, sometimes you get the impression that there is distortion of figures. Otherwise, we continue to have a market share and over the next several quarters, you will see that our product mix comes into play and we will continue to outperform. Got it. I think to the previous question, you answered that you expect the LED share to rise eventually to 65%-70%. That is as a percentage on the revenue side or on the volume side, total volumes, you expect that kind of share? Volume side. Revenue side. Revenue. This is on revenue. We report it on our revenue. Right. When you say new order share, revenue share is 51%, that is not too different from what your current revenue share is, right? Within lighting, if I look at your revenue share, even today, LED ratio is kind of 51%-52%. As a company, we are at 51% of all automotive lighting that we are doing. 51% is LED. This share at a company level will gradually shift towards 65%-70%, driven by the new pipeline that we have. Okay. But in the last quarter order book that you were saying, it is still at 51% only, right? We are talking order book and LED share are separate items. We are saying LED share for the company- Today for today stands at 51%, it was 47% last quarter. This will keep moving up towards 65%-70%. The driver of that is the new order book that we have, and that order book predominantly is mostly LED and which is why structurally we are moving for higher LED share. Got it. On the EV two-wheeler side, post the government being tighter on the FAME subsidies, we are seeing some of the smaller EV two-wheeler players are struggling with the volumes. How are you placed with some of the larger EV two-wheeler players and how do you see your EV share panning out over the next two, three years? I think we currently work with more than 35 EV players, which are either small, medium, big, the largest of them, the middle and even the lowest end. We are pretty much hedged in terms of who is able to gain market share. Obviously, the top player today is the likes of the Olas or TVSs, we work with all of them, and our share continues to grow. Got it. Thank you. Thank you very much. The next question is from the line of Dishant Jain from Quasar Capital Partners. Please go ahead. Yeah. Hello, audible enough? Yes, sir. Yeah. Sir, can you help me with the volume growth for Q3 or nine months? See, what we shared, we do not give the numbers in the volume, and you already have the growth in the revenue terms, the value terms. Okay. Sir, just wanted to get an update on the Sonipat plant. Are we facing any capacity constraint due to that plant with regard to our volumes right now? Just want to check on that plant. No. Actually, if you see what we submitted already, the information will be keep updated. The production was resumed within three days and whatever we are doing, it will be quite fast, the restoration of all the facilities. As far as the capacity constraint is concerned, this is not there. And sir, any update on the insurance claim which are yet to be received? Any update on that? This is under process. Okay. That's all my questions. Thank you. Thank you very much. The next question is from the line of Viraj Kacharia from Simples. Please go ahead. Yeah, thanks for the opportunity. Just couple of questions. If you look at the sales breakup which we shared in the presentation, the reason why the sales performance has been relatively weaker compared to the two-wheeler growth is, if you see the others products that has declined, and even the plastic product segment, we are seeing a flat growth. The lighting business continues to see a very healthy performance. If you can just give some perspective, what is causing a muted or a degrowth in ex-lighting product segments? If one has to understand the drivers of growth in these two segments in coming years, what would that be? I think you are referring the plastic parts and the rear view mirror parts, if I correctly understood. Plastic and then others. That's okay. You have to see that our main product line is always the lighting and other, the rear view mirror. Whatever is the requirement of the customer, what we are doing, the plastic parts and other, is always remain as per the customer requirement. But the main why this percentage is showing less growth because the growth has happened more into the lighting. This is the only reason. No. Sir, what I am asking is why the plastic product segment is. What is causing a flat growth in plastic product segment? Similarly, if I look at others, we have been trying to introduce new products for the last many years also. In other products also, what is causing the degrowth? Because that is the only reason why overall sales performance has been relatively, on a relative basis, lower than what the end market has grown. See, some of the growth that you are talking in plastic is also softening of the raw material costs, therefore it is not reflecting as a revenue growth. While we understand we need to focus on these products more, which is coming in our strategy, we will in future focus more. Our current focus is more on our prime product, which is lighting. Okay. Second question, sir, was, this is also Mr. Sawhney. First of all, congratulations to you and the team, and to Mr. J.K. Jain as well, on this milestone of breakthrough in PV. Just couple of questions here. One is, what will be the size of order indicatively? Second is, if one has to understand the top five KPIs for you or the major milestones, what would that be and where are we right now in that journey? See, at this moment, we are not able to disclose the right numbers and details. The important point today was to make an entry into four-wheeler and that too of the top-end product, which is a full LED headlamp. Now, what it does to us is, we create a right infrastructure to develop such complicated products for OEMs, not only for Europe, but also for Indian market. That makes us future ready as Fiem Industries into four-wheeler segment. With this, we are now armed to approach Indian OEMs as well, and this is in final stages, as intimated by Chairman. In future, we do see a good growth in this segment. However, I must tell you that the lead time for development of such product is high in four-wheeler. Therefore, we are not talking about any numbers at this moment. Okay. The question on, so in terms of major milestones for you, say either before you start putting in any major CapEx and also in terms of the breakthrough, say, in Europe. What we understand globally, the market is very concentrated between the top three, four players. They would have more than 70% share. For us who is kind of venturing into four-wheeler space for the first time, what has enabled us to gain share, especially in the export market in Europe? See, our strategy is to move step by step and in a strong manner. We do not want to commit errors, so we do not want to jump and get into very big OEMs and order. We need to first create the right infrastructure to support our customers and move step by step. As you talked of KPI, as I told you, the next step is to make entry into some of the OEMs in India, and we are actually very close to doing that. Then start in a small manner, and then gradually, once we prove ourselves, I am sure our customers will respect us by giving us bigger orders. Okay. Just two more questions if I may. One is on the employee cost. If you see, there has been a healthy jump in last two, three quarters on both on year-on-year basis. Is there any one-off in this or what is causing this? Second is on the Gogoro tie-up that you have. Any update you can give in terms of the scale of operation and how do you see it? First it is about this employee cost. If you see that it is a result of two things. One is that our four-wheeler team has increased, and resources are being there for design and development. That is one factor. One is the small impact that in the last there is a shutdown also for some days. That also impact because production is less. Next question was about the Gogoro, right? Yes. I think Sorry, sir? Yeah. About Gogoro have launched first model. That model is mainly be launched for the B2B. Now the coming year, they are planning to have a B2C. The volume we can foresee during next year. As of now, they have not yet started the mass production. They produce a very small quantity and are looking for the good business from B2B segment only as of now. Okay. Sir, I will come back. Thank you. Thank you. Thank you very much. The next question is from the line of Anubhav from Prescient Capital. Please go ahead. Am I audible? Yes, sir. Hi. If I look at the revenue from other OEMs, and I suppose the electric two-wheeler OEMs would be in this category, that saw a 7% year-on-year degrowth. While if you look at the numbers for Ola this quarter, they have seen a very healthy growth. What is causing this degrowth in the revenue from others? Is it from the other OEMs or how is it? Your observation is correct. These other OEMs are all other than those four which report separately. As far as the percentage is concerned, what is down or up, it is because this is so many customers are there, except these four, every small customer or even the other OEMs are in there. There is always a change in the business, so this is happening. Otherwise, there is no big reason of any difference. Just to support this, I think we can confirm there is no loss of business share. We supply as per the demand and the production of the OEM. If OEM production is less, then naturally the revenue will be less, but it is not at the cost of losing any business to competition. Get that. Apart from Ola, would you be able to share which are the other key top EV two-wheeler OEMs for you? Ola is top. TVS is there. Ola, Bounce, TVS. Bounce, TVS. Simple Energy. Yeah. I will update. Ola is number one, then TVS, Simple Energy, Ultraviolette, Ampere, Okinawa, Revolt. These are the major customers to whom we are working as of now. Get that. The TVS volumes would be categorized as for TVS, I suppose, not in the others category for the electric two-wheeler? Yes, within TVS. Okay. For Hero MotoCorp, apart from the Harley-Davidson model They have launched a couple of other models like, I think, there's a Zoom scooter which is coming with LED headlights, and Karizma also, they are launching or launching a model. Are we supplying to any of these new models? No, these two models, whatever you named, are not of our portfolio. The new launch will be during next month, which is having our Fiem products within this. Further on, during the next year, we will be expecting two new models wherein the complete presence of Fiem in there. Get that. Thanks. That's all from my side. Thank you very much. Yes. The next question is from the line of Varun Arora from B&K Securities. Please go ahead. Yeah. Hi. Thank you for the opportunity, sir. Sir, can you repeat your employee cost, your situation? I didn't get your point. The question was about some increase in the employee cost during the quarter. Yes, sir. What we expected. Yes, sir. Please. Yeah. The reason is, one is the new team is joining in the four-wheeler, and other is there is small impact of the shutdown also in the last second half of some days. Okay, sir. Sir, what is your outlook for next quarter as well as for FY 2025? What sort of growth you are seeing now? If you can enlighten us. I think overall, the two-wheeler industry as, I think, H2, we have always maintained is looking better and we continue to maintain that quarter four looks optimistic. Not just quarter four, as we look ahead for the next year, FY 2025, we see all roadblocks being removed, so to speak, from as far as the growth is concerned. I think the two-wheeler industry will grow well, and we should grow even better. Okay. Thank you, sir. Sir, by the way, on LED share, so you said 65%-70% you will achieve. By what timeline you are looking at this number? Since we are at now 51%, by what timeline you will be there, sir? Oh, 65%. Yeah. So, between two to three years is what this outlook is for. Okay. Sir. On Hero, coming back to the previous participant question, you said by next quarter, Hero will launch a couple of products like this, you said, no? Just for clarification, I need, sir. Next quarter will be one model, wherein- Okay Next year will be couple of models. Couple of models. Are you also there in the recently launched Xtreme 125R or Mavrick 440. So are you guys there? No, we are not in that. Okay. Thank you, sir. That's just for my question. Thank you. Thank you very much. The next question is from the line of Sahil Sanghavi from Monarch Networth Capital. Please go ahead. Yes, please go ahead. Hello. Good morning. Yes, sir. Yeah. First of all, congratulations to Jain sir and Vineet sir for the breakthrough in four-wheeler space. My question is, what is the contribution from the EV two-wheeler in the revenue in Q3? This EV is 5.6%. Okay. Can you just guide us with, I think there were a couple of new model launches that were expected to come in Q4 this year. I understand Hero there is one, and Yamaha there is I think two, three. Correct me if I am wrong. Any other launches expected in Q4? There is a launch. Piaggio will also launch in Q4. Piaggio new model is coming during Q4. That is all, right? Yeah. Okay. Thank you. Thank you very much. The next question is from the line of Jatin Chawla from RDL Investments. Please go ahead. Thanks for the opportunity again. This clarification, this order on the four-wheeler side that you said European customer, is it an export order or you are supplying domestically to a European OEM? It is an export order. Okay. You will be exporting. Normally we see LED headlamps or headlamps as such is not a product which kind of travels very easily. Yes. Surprising. Yes, it does, but we offer a value proposition to them and not in cost but in the times, the speed of development, and therefore we could get this order. In overall scheme of things, we were selected for this source. Got it. Second question is on TVS. Honda, you explained, that there was a particular model which is doing well and hence maybe compared to overall Honda volumes, you are not doing that well. Even on TVS, I look at the last five-year CAGR also, your revenue CAGR is 5%. TVS volume CAGR itself is 5%, and given the LED penetration, their overall revenue figure would have been much higher. It seems we have lost some share of business within TVS also at an overall level. What is causing that? No, we haven't lost any share. In fact, we have gained share. I don't know what figures you are talking about. Our TVS numbers, even if you look at in the current quarter, our sales have increased 27%. I don't know what figures you are quoting, but we continue to maintain our market share. Okay. No, I was looking at slightly longer term numbers, FY 2019 to FY 2024, and it seems there is almost only a 5% kind of figure in revenues over that period. I think your probably value volume is getting mixed. I think if we take like to like, we are very confident we would have not lost anything at all. But we can come back with a detailed data point for you. Sure. That would be useful. Last question. We see a lot of two-wheeler auto ancillary companies come, given that there is a big kind of one-time shift happening in the industry, where industry is moving from ICE to EV, are entering new components. Any plans from the Fiem side? Yes, we had already announced during our last to last quarter, because with Gogoro we have tie up to make a hub motor and motor controller. Coming forward, we will be in ECU also. This model-based production will start during first quarter of next year. We are just now installing the and we will be ready to explore the market with these two products as of now, motor controller and hub motor, during next year. Oh, okay. This is for Gogoro only right now, right? Or any other OEMs also be aboard other? Yeah. This will be initially with Gogoro, and further on, we will explore the new customers also. Okay. Thank you. Thank you very much. The next question is from the line of Viraj Kacharia from Simples. Please go ahead. Yeah, thank you for the opportunity. On Hero, what we understand, they are looking at upgrading the existing major brands they have in terms of the aesthetic part, and the current supplier seems to have challenges when it comes to LED capabilities. Are there any discussions around order wins for the major brands they have? Or the pipeline you talked about is largely for new model portfolio? Yeah. As of now, we are working for the new model. As and when we will get the opportunity for the existing models, wherein any problem is faced by customer, we are ready for accepting this because we have a capacity and capability available with us. Second question is on the PV announcement. Just trying to understand, which OEM would this then be in terms of supply? The reason, again, I am trying to ask is what you said in terms of the entry strategy, that we are not looking to compete directly with the MNCs head on. If you look at the market structure, there also you have most of the likes of VW, BMW and all. They are kind of supplying across the board, right, from mass market to all. Just trying to understand what segment and OEM which looking to cater initially. We are catering to a niche segment to start with, but with high technology product. At this moment, we are unable to disclose all details, but that is all part of our strategy, that like you are aware, a company has to prepare very well for addressing this kind of a market which demands high quality and high technology. This is part of our strategy and we are moving as per that. When you say niche segment, is it within the passenger vehicle segment or it is a different application segment altogether? Is it like a- Passenger vehicle. It is the passenger car. Is it more for fresh order or it is more for second source supplier to them? It is a fresh and it is a new development. We are doing complete designing and development. Okay. Just last question. I understand- We are not built to break. Understood. I understand this is the initial order we have and you are also talking to other OEMs in India. But in terms of, say, when are you looking, let us say, the milestone for investment in a facility, what would you be looking at in terms of the milestone before putting or committing to a large investment? See, normally the milestone for any new plant is one order which justifies a CapEx. We are very prudent in deciding on CapEx and a new plant. For example, any order which is for, let's say India, 50,000 to 100,000 vehicle set is the right quantity to set up a new plant. This is our journey and we will go step by step, and at appropriate time, we will inform about setting up new plant when we are ready for setting up this. Okay. I understand, this may be a more of a chicken and egg kind of a situation, but in your interactions, say, with the OEMs, especially in India, wouldn't this also be one of the major barriers in terms of getting the business because they may want a dedicated setup when it comes to four-wheeler, and right now we don't have any such infrastructure in place. In terms of our approach also, would we be open to setting up this CapEx even before we get any order or How are we approaching this whole thing? It is not prudent to set up a CapEx or a new plant without the order, because lighting is a highly capital-intensive unit. However, I want to tell you, we have entire facilities available with us to convince our customers. Our existing plants will get approved, and they are in the final stages of approval, because customers see our management and the experience in building up the product, which we have. So we will invest very judiciously, and we will be very prudent in our capital investment, as it is very important to do it at appropriate time. Okay. Just one more. In terms of investment also in P&L, you said that a lot of resources we have added, a lot of investment tech capabilities build-up we have done, even before we got the order. So in terms of investment, we have front-loaded a lot of that in the P&L already. If one has to understand in terms of, say, the annual investment in P&L we have been doing, what would that be roughly? It is just the manpower, technology cost that we are talking. We have not ordered any machine. It is like softwares and the skill that we have. Yeah, I understand. I am just talking on that perspective as well. Just indicatively, is it more like a INR 15 crore-INR 20 crore kind of investment in P&L? Sorry to interrupt you. It is too premature to give you any numbers. Sure. At appropriate time, when we have a right business plan in place, we will keep you informed. Okay, fine. Sure. Thank you and good luck. Thank you very much. The next question is from the line of Smit from Monarch Networth Capital. Please go ahead. Hi, sir. Congratulations on a decent set of numbers. My question is regarding wallet share in, say, headlamp, tail lamp, et cetera, with the OEMs that you have. This wallet share actually we share on the yearly basis, and I'm sharing this wallet share for the last financial year, FY 2022-2023. Okay. I start with TVS. For headlamps, we are having 68%, and for tail lamps it is 86%, winker 85%, RVM 62%, and DRL we are 100%, and license lamp is almost 100%, 95%. For Yamaha, headlamp is 83%, tail lamp is 63%, winker is 10%, and RVM is 82%. Position lamp, we are 50%. For Suzuki, headlamp is 71%, tail lamp is also 71%, and winker is 4%, RVM 100%. Reflectors is 100% and license lamp is also 100%. For HMSI, headlamp is 40%, tail lamp is 76%, and winker is 85%, RVM is 100%. For position lamp and reflector, it is 100%. These are for FY 2022-2023. Thank you, sir. One more question regarding some other products which we had mentioned in our annual report, that is the USB charger and GAP sensor with technical assistance arrangement that we have with Toyodenso. Sir, any light on that regarding some timeline or what stage of development the product is in, and when can we expect the products to contribute to revenue? This is we shared business with our existing technology partner that is Toyodenso. Maybe it is too early to talk about this. Maybe in next year, we will update you when anything happens. Okay. Thank you. Thank you very much. A reminder to all the participants, you may press star and one to ask a question. Thank you. The next question is from the line of Anubhav from Prescient Capital. Please go ahead. Sir, for the motor control unit product, can you provide some detail on what stage are we in terms of product development, and any details on when can it be launched? Hub motor and motor controller, we are already supplying SKD as of now to Gogoro, wherein our all equipments are on the way, transferred from Taiwan, which we will be expecting by mid of next month. One month is required just to have installation of this. By next year, first quarter, we will resume our production for complete domestic assemblies of hub motor and motor controller. Just to follow up, sir. Will it require investment in a team? Because motor control unit, my sense, is very software and electronic intensive. What kind of development effort will it require? SMT lines are already available with us, and the software and other circuit design, everything is being, as of now, provided by our partner, Gogoro. We will start the production with the facilities available with us, wherein the specific assembly line and the testing machines are under transit right now, which will be installed shortly, and by first quarter, we will start the production. Get that. Sir, what is the thought on this? Eventually, will it be localized, or what percentage of localization will there be for this product? We are working to localize by more than 75% of the product, wherein 25% will be the electronic component, which will of course be imported from outside only. Get that. Thanks. That's all from me. Thank you. Thank you very much. As there are no further questions, I would now like to hand the conference over to Mr. Sahil Sanghavi. I would like to thank the management first of all for very patiently and elaborately answering all the questions. On behalf of Monarch Networth Capital, I would also like to thank all the participants for joining the call. J.K. Jain sir, would you like to give any closing comments? Sure. 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 and good evening. On behalf of Monarch Networth Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.