Good morning, ladies and gentlemen. Welcome to Sansera Engineering Limited Q1 FY23 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations 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 the operator by pressing star, then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. B. R. Preetham, Group CEO, Sansera Engineering Limited. Thank you, and over to you, sir.
Thank you. Good morning, everyone. Welcome, and thanks for joining this call. On this call, I'm joined by our CFO, Mr. Vikas Goel, and Mr. Praveen Chauhan, who has been now elevated to COO. So Praveen takes over as COO now, henceforth. So congratulations, Praveen. And SGA, our investor relations advisor. The results and the presentation are uploaded on the stock exchange and the company website. I hope everybody had a chance to look at it. I'm delighted to be here today to talk to you about our Q1 FY23 and the progress that we have made since our last earnings call. With a 35% year-on-year growth in our top line of INR 5,329 million, once again, Sansera has reported a healthy set of numbers. As the precision forged and machined components supplier, with comprehensive capabilities, we have created a unique value proposition for our customers.
As a result, we have been able to add new customers, and our existing customers are expanding their product baskets with us. I'm very delighted and proud to share that we have added Tata Motors and Force Motors to our client list. And this opens up many opportunities for us to participate in various programs across PVs as well as CVs, both in ICE and electric vehicle space. We've also been honored to be recognized by Toyota Industries for our unrelenting efforts towards delivery and awarded Best Target Achieved Supplier in Delivery for the year 2021. We have been able to repeat these performances, consistently getting awards from Toyota as well as other customers. Let me now give you a quick update on the industry before we talk about our operating performance.
The domestic auto industry has been doing better thanks to rising demand, consumer confidence in rural areas, easing semiconductor supply issues, and declining commodity prices. In general, commodity prices are easing, though alloy steel, which is applicable to our product, continues to increase till Q1 FY23 but expected to reduce marginally in Q2 FY23. On an overall year basis, we expect that further reductions should happen. As per the data published by SIAM during the period of April to June 2022, auto sales soared across the board. Recent auto sale figures reported by auto OEMs continue to show an uptrend, and it is anticipated that this trend will continue in the second quarter as we approach the festive season. In fact, our key customers have indicated a positive growth for this year
Exports are expected to be weak in the sense that we don't expect any big jump in our export numbers compared to the last year. This is primarily a result of the war, the commodity price increases, energy cost increases, still continued semiconductor challenges, and also a rising fear of inflation as well as recession. So we expect that our export performance could be flat this year. Coming to our performance, we registered a year-on-year growth of 35% to achieve total revenues of INR 5,329 million, with an EBITDA margin of 14+% . Our CFO, Vikas, will talk about this in detail a bit later. Our auto segment, which caters to global and domestic OEMs across two-wheelers, passenger vehicles, and commercial space, contributed to around 89% of our sales in Q1 FY23. Slowly and steadily, our product portfolio is shifting towards our long-term vision, which we have set forth.
In Q1 FY23, 89% of auto segment revenues included a 9% contribution from auto tech-agnostic and xEV products, vis-à-vis 4% in Q1 FY22 and 6% in FY22. In terms of current auto segment sales mix, motorcycles contributed to 36% of our top line. The segment has benefited on account of additional customers and higher share of business for Sansera. Scooters accounted for 14% of our top line, with a positive trend of increasing share of business of scooters in the overall two-wheeler market, especially the EV scooters. Passenger vehicles accounted for 27% of the top line. Commercial vehicle accounted for 11% of our top line. We expect the PV segment to benefit from PV upcycle as well as addition of new customers. Within the non-automotive segment, we manufacture for the aerospace, off-road, agriculture, and other segments, including engineering and capital goods.
This segment contributed to 11% of the sales in the quarter in our current sales mix. Aerospace and agriculture accounted for 3% of the top line. Off-road accounted for 4% of the top line, and the remaining 1% of the top line came from other segments. We expect to close about 30%-40% growth in revenues in the aerospace sector this year. In terms of our progress in electrification, our xEV portfolio of components is aligned to benefit from the growth in this industry. New business wins from xEVs have been on the rise, and as of July end, we have had orders from 10 customers across multiple components. In addition to this, we have recently received order confirmations for xEV components from two two-wheeler manufacturers, namely Ultraviolette and Hero Motors. This is in addition to the existing customers we have already added.
We also received the first nomination letter for a marquee North American-based EV manufacturer of passenger vehicles, for whom we were already developing a component for their truck segment but now received nomination for the passenger vehicle segment. On the CapEx front, our new aerospace and defense facility is expected to get ready by the end of second quarter, and the mass production of this facility is expected to start from FY 2024 because we need to go through a lot of validation and certification process in the last two quarters of this financial year. Coming to our order pipeline, as indicated or as published in our study as well as on our website, we took a hit on account of withdrawal of contract from a leading North American OEM. This contract was worth INR 3,000+ crore, which was awarded to us in the month of April.
Entailed development manufacturing and supply of connecting rod was due to start from July 2025. Based on recent review of the business plan, our customer decided to drop the entire project, consequent to which the contract awarded to us by the aforementioned OEM stands withdrawn. Since this contract was slated to start in July 2025, we have not made any investments either in resources or in money towards this project. The loss of this project has no impact on our growth plans, including for our plans of U.S. facility, which we would go ahead and make it. As on July 31st, 2022, our order book with annual peak revenues stood at INR 11.1 billion, with Auto ICE contributing to INR 5.3 billion, 48% of tech-agnostic adding to INR 3.4 billion, and 31% of non-auto accounting to INR 2.4 billion.
This order book also echoes our evolving product mix and customer base and is in line with our long-term vision. Going forward, our growth will come on both auto and non-auto sides. Indian auto ancillary producers are well-positioned and appreciated for their work in the area of component development, consistent quality, and clear cost price advantage. Besides, China Plus One strategy has also been helpful in acquiring more and more business. Now, as the vehicle cycle is getting into a newer set of engines, newer platforms that are going to come up in the next couple of years, a lot of OEMs are increasing their reliance on outsourcing. Sansera is well-equipped to capture these growth opportunities with a long history of operational excellence. Also, we see strong growth opportunities in new technologies, new materials, and we are committed to growing these areas while mitigating business risks.
We expect that technology-agnostic and non-auto components to grow by around 50% in FY23. With our new facility coming onstream, aerospace and defense would be a major contributor to this as well. I'm confident that investments we have been making on the aerospace and defense side will help us tremendously as this long-anticipated industry recovery arrives. We expect the revenue contribution of technology-agnostic and non-auto component segments would be around 22% in FY23, up from 17% in FY22. This segment is estimated to grow at a CAGR of 50% to reach 40% of the total revenue in the next three years to come. With this, now I'll hand over the presentation to our CFO, Vikas Goel, for the consolidated financial highlights. Vikas.
Thank you, Preetham. So talking about the Q1 performance for financial year 2023, as we mentioned earlier, the revenues stood at INR 5,329 million as against INR 3,951 million in the same quarter previous year, which is a 35% growth year-on-year. I'd like to highlight that this growth is largely on account of revival in the domestic market. We have also witnessed higher volumes, better sales mix in this quarter, alongside marginal price increases from some of the customers. On a sequential basis, we saw some improvements in the gross margins, primarily due to passing on of the commodity price increases. One of the key export customers during this quarter, EBITDA stood at INR 922 million as against INR 645 million for Q1 FY22. With a better capacity utilization, the company's EBITDA margin improved from 16.3% in Q1 FY22 to 17.3% in the Q1 of FY23.
Going to higher debt levels, the finance cost for the quarter increased to INR 137 million as compared to INR 116 million in the corresponding quarter in FY22. Though on a sequential basis, this is still improved from INR 147 million in Q4 of last year to INR 136 million this quarter. Profit after tax from INR 348 million in Q1 FY23 as against INR 189 million in Q1 FY22, which is a growth of 84% on a year-on-year basis. In terms of geographical sales mix for Q1 FY23, it stands as follows: India contributed 71%, sales to customers in Europe about 17%, and USA 9%. Other foreign countries contributed about 80% of our total revenues. Exports have been muted in this quarter, and we expect this trend to continue in the near term, owing to the reasons explained by Preetham during his address.
I would like to take a brief moment now to talk about the various cost optimization initiatives that we are working on. In terms of packaging materials optimization, a lot of renewable packaging is being adopted now to reduce our dependence on the one-time packaging sources and to reduce the impact on the environment as well as to keep costs in control. We are also looking at consolidating logistics from our various Bengaluru-based plants. And also, we intend to secure about 80% of our energy requirements at our Bengaluru facilities via renewable energy sources during the balance of FY23. These initiatives will not only help us in controlling costs but are more sustainable and environment-friendly. With this, we come to the end of our presentation for Q1, and we open the floor for questions and answers. Thank you.
Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone wishing to ask a question may please press star one on one of your touch-tone telephones. If you wish to remain yourself in the question queue, you may press star 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 Basudeb Banerjee from ICICI Securities. Please go ahead.
Hello. Thanks. Morning, sir, and congrats to Mr. Chauhan.
Sorry to interrupt, Mr. Banerjee. Sir, we are not able to hear you clearly.
Yeah. Am I audible?
Yes, sir.
Yeah. First of all, congrats to Mr. Chauhan for the question. Second, a few questions. One, sir, if I look at sequentially, two-wheeler market has grown almost by high single digit, whereas your sequential revenue is down 8%. If you can explain, sir?
Yeah. Basu, morning. Definitely, yeah, as I said that sequentially, two-wheeler revenues the question was that two-wheeler revenue has grown, but your overall revenue is down sequentially. Is that the question?
Yes. Yes, sir.
Yeah. Totally, see, two-wheeler revenue compared to quarter-on-quarter is, I think it's flat. It's not really grown. But then, see, this is helped by definitely, there is better numbers that have come in the domestic market for us. And the order wins that we have had from the last year where we had I had spoken about China Plus One where we had secured some business from one of our clients has now started maturing into full volumes. And also, a product mix change with a couple of our customers into their new engine has actually increased our share of business with them. So all these things have actually resulted in the better two-wheeler growth for us.
For sure, sir. I was just trying to understand what segment was the main spoilsport in taking the sequential revenue down and how one should look at it ahead.
Yeah. Basu, added to that, approximately about INR 17 crore worth of finished goods, we could not actually dispatch it, which was ready and cleared by our export customer due to a logistic disagreement or they had with the logistic provider who could not pick it up. So that also would have actually otherwise added to our revenue. The material was ready. In fact, we had to reverse it because the logistic provider did not pick it up. It was their designated logistic provider. Now that issue has been resolved. As explained in my call, the exports continue to be weak, and we don't expect though we are expecting only about 1% or flat growth in the exports from India. But our Sweden facility would see a degrowth this specific year.
Owing to, in the last call also, I had said that there is a share of business change between us and another supplier due to we are de-risking the business model. Wherever we are 100%, they have reduced it to 70%, given it to 30% to the other supplier, similarly wherever on the platform. So that transition is going to have an effect on this year. From next year onwards, the business would be on track and plus the slowdown in Europe. So with this, overall exports is a drag on us for this year and for this quarter as well. But we expect the domestic mix and our new product like the hybrid components, the production has started. We expect a couple of more EV two-wheeler manufacturer mass production, which we are developing and developed to start into the third and fourth quarter.
All these things, definitely, we will see a positive growth.
Broadly, the 20% revenue growth outlook from an overall revenue compounding perspective and this weakness in exports, do you see any changes to that perspective from this year?
See, I don't want to say whether we will do 20% or 18% or 15%, but definitely, we will have a double-digit growth. We are quite confident that all our new order wins as well as our increased share of business will make up for the export slowdown this year. If the export starts doing better towards the Q3 and Q4, we should really be talking about those high double-digit growth.
Second thing, sir, as you in the initial part of your comment said, alloy steel prices still elevated, and you are expecting that to come down from Q2 onwards. But if I see a gross margin which has improved almost 230 basis points sequentially, so bulk of the EBITDA margin improvement is led by gross margin. So how to interpret that, sir?
S o as I mentioned that we got some price increases from some of the customers. And also, from one of the major export customers, we were able to secure a price increase, though it was not part of the standard contract. But we were able to get that price increase. It was a correction in the gross margins for this quarter. And since sequentially, if you see, the volumes have slightly come down. So that's a give-and-take impact between the gross margin and the overall cost structure. So we were still able to improve our overall EBITDA margin by about 0.1% from Q4 to Q1.
Basu, added to that, as I said that our new order wins and lately we have been increasing our share of business into the new OEMs. And these also come with a better margin. So as these volumes start maturing, this will also show better margin growth onto the balance sheet.
Sure. So will it be right to have you?
Thank you very much, Mr. Banerjee. Sir, may we request that you return to the question queue? There are participants waiting for their turn.
Sure. Thanks.
Thank you. The next question is from the line of Nitin Arora from Axis Mutual Fund. Please go ahead.
Hi. Good morning. Thanks for taking my question. Preetham, you talked about the new order wins. One of the clients you mentioned is Tata Motors. If you can throw some light, what kind of an order is this? How scalable is this order? And also, one of the clients you mentioned about an EV player, largest EV player, what kind of a product traction we are seeing from him? How you look at that scale in the next one or two years from him, that would be helpful. That's my first question.
Yeah. Thank you, Nitin. Tata Motors and Force Motors, we have been having a lot of interaction with both these customers. We were able to secure this business very recently. And to be very initially, we need to also demonstrate, and this is for their passenger vehicle segment. And this is to begin with is for the connecting rods. And we are close to about 600,000 connecting rods once the mass production starts. And this would go up with the time depending on our performance. We are also delighted that we are engaging with them onto various other products as well. So the journey has just begun with them, and we are quite hopeful of that. And similarly, with Force Motors, now we have had an initial first order.
We are developing the component, and this is also very close to about 100,000 conrods to begin with for their programs. And slowly, we are expected to take a major share of business in their volumes as well. As far as the order that I mentioned about the nomination that we have received for the new component from a marquee name in the most marquee name in the EV vehicle industry from North America, we have already had an order from them for their Semi range of vehicles. But this is for the passenger vehicle segment. And we expect that we have been working with them.
We have engaged with them from last two, three years, as I have been explaining on the various of course, with every new client, it takes a bit of a time to get especially with the COVID times that we could not travel and this thing. But now we have been able to get this order. We also expect that there could be some more of them coming our way. We are engaged with them with many more projects on various levels of both technical and commercial, this thing. And in our opinion, that we should be able to hear some more good news from them in the coming days. As in when we get those information, with their consent, we would disclose them.
Preetham, just thanks for answering. Just on the client cancellation, one of the order.
Yeah. Yeah. Sorry. Sorry. Just, these are part of very complex forged emission components, part of seating assembly and door assembly as what we are now doing. But there are other components which, again, are part of drivetrain and chassis and suspension with which we are working on. Sorry. Go ahead.
So in both the domestic client and in the overseas client, it's the replacement of the existing vendor where the orders are coming from to you?
Yeah. I think it is because of the growth that customer is seeing, they are adding, I think, additional vendors to cater to the growth.
Okay. Got it. The second question is the order which got canceled by one of the players globally. Any feedback from them in terms of whether there was a change in program itself or they're coming with some upgradation in that program that's why it was canceled? Anything from their side?
It is a very initial information that we have received because of the compulsory mandate that we had that we had to disclose it. We had to immediately disclose that. We are engaged with them to get more information. But as we understand, owing to the current situation, this program has been canceled. Overall program has been canceled as this was also a new technology engine. We are yet to hear from them what would replace this because we are also quite curious. We are engaged with them different programs. In fact, there is another project which is the mass production starting from October this year, which goes to the European region specifically. So we are engaged with them on various other projects. So we are yet to hear whether this would take in any other shape.
Will it come back or in any other volume this project will come back? We are yet to hear. These are very initial. As in, I have some more information, I would definitely share them. But just to be in the interest of others also, they would know that this is a very I mean, while the order sometimes the projects gets canceled from customers, it's not very new. But this was quite early in the phase of development. But one thing that they made sure is that since people were getting ready for investments, I think there was an early announcement from their side to make sure that people don't go ahead and do things. While this is not very usual, but it is not uncommon also that customers for various reasons cancel a project, so.
Getting it. Getting it. Just lastly, you highlighted that the exports because I think Bajaj Auto would be relatively bigger for you. And when we look at their exports, their exports was down or rather whatnot increasing on an average in the last two-three months. Given that exports remain at that level only and you have reached to a revenue of INR 530 crore, which you did in Q2 FY22 with a 19.8% margin, directionally from here, if commodities start cooling off, which we are seeing a trend, do you think going back to those margins with increase in revenue given and I'm assuming I'm just taking that domestic might increase, exports might remain there. You think margins should start flowing back towards that 18%-19% with increase in top line?
If directionally, you can help us with that with exports remaining stagnant because I think in opening commentary itself, you said that you're assuming that no new growth the growth should come from the new platforms even in exports. So if that, you can help us with understand.
Yeah. Nitin, while I said that percentage growth may not be there, but we would still grow on the overall revenue because our domestic growth will also be there. So percentage might be fully flat. Yes, you're right that once the commodity starts cooling down and the new product mixes are going to come into the picture, we are quite hopeful with a better utilization on the two-wheeler capacities that we have had. We should start looking at margins improvement from the current level. So we are quite hopeful that those numbers would start becoming better.
Thank you, Preetham. I'll come back in a few. Thank you.
Thank you.
Thank you, Nitin.
The next question is from the line of Hitesh Arora from Unifi Capital. Please go ahead.
My question was answered actually by the first participant. Thanks.
Thank you. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead. Siddhartha, the line is in the talk mode. Please go ahead.
Yeah. Thanks for the opportunity. So my first question again is on this new component order for the PV segment from North American OEM. Any idea about when does this sort of order then get into the order book from the current stage and revenues start coming in? And just if you can highlight some of these components, what will be the value per component which we are looking at, both current and potentially?
Yes. Siddharth, as I said that some of them are for their existing models and some of the work that we are doing for the new upcoming upgrades or this thing. But one, the nomination that we have received is for a component which is for the current model. So I expect that once the validation is through in the year FY24, that is in the calendar year 2023 itself, the mass production should start. And there are a few others which are in the line which are also for the existing models. So we expect that our mass production for this customer for the passenger vehicle component should happen in FY24 towards the first or second quarter of FY24.
Got it, sir. And the value, sir, if you can highlight both for these components and the ones you are working on?
I would not be able to do that because of the contractual obligations that we have. But I'm pretty sure that the value proposition is good, and we expect that they will be one among the top 10 customers for us in the couple of years to come.
Got it. Sir, just one clarification also. When you in our PPT, you have shown that we have received orders from 10 EV customers, of which I see that in the PV, one name has got added. So will it be this customer only or somebody else you are indicating here?
Yes, this customer.
Okay. Okay. And the second question is on this EV products for the two-wheeler segment. Again, I think these names might not be reflecting in the list because the number of customers remain the same. So here also, what will be the products we are working on and when do you expect these production to start?
I give it to Praveen. Praveen, can you answer this?
So on Ultraviolette and Ather and Hero, where the business he says that it may not have been added. So two of the customers like Ultraviolette and Hero MotoCorp has not been added into this because this was post-July that the nomination letters came. In fact, Praveen would add more into the what kind of components that we have received and kit value that we have been working on with these. But again, with respect to Ather and Ultraviolette, I think we will get into the production quite soon because these are already products. These are not for any new models. These are for current existing models and upgrades of their design. So Praveen, you can take over.
So Siddhartha, the journey so far in the EV segment has been very exciting. And as we had been talking about that, as it is in one of the biggest two-wheeler supplier, we have exceeded the Bajaj Auto, biggest customer asked, kit value in a scooter. And in these customers like Ather and Ultraviolette also, we are either reaching close to the numbers of Bajaj Auto or exceeding those numbers. So the journey has been quite good. And as we had been talking about, that journey has just begun, and the content could be much more. We are seeing those contents being added regularly.
Got it. So last question is on the U.S. plans. So I think you highlighted that this order not coming through. U.S. plans have not changed. Any other big client you think can potentially also come here because it was quite a sizable order, and you were banking on a couple of them for the U.S. plans? Some clarity here.
Yes. As I said that this order of this North American client was definitely an icing on the cake, and it would really mean that the capacity that we were planning to put in U.S. was quite big because this was supposed to be entirely being manufactured in the U.S. While the blanks were manufactured by somebody else, we had to machine the blanks because this was out of the sintered route . But this would not alter any of our program on whether we are going to start a facility in U.S. It will definitely be there. The scale may be slightly slower I mean, lower because now any new order wins that we have had, we could do it partially in India, partially at our comfort and convenience as to what we want to do here.
Definitely, just to add that, we keep getting different orders while this is on the normal course of business. I would like to add that recently, we have been nominated for one more program of a U.S.-based client close to about 1.8 million conrods per annum. And this was the connecting rod which we have been working on from the last two years where we have participated in the design. Our samples have been tested at various stages of production. And this program is going to start from FY2023 towards the – sorry, FY2024, calendar year 2023 towards the second half of the calendar year. And quite a big order.
This would be this would also, over the time, we would look at while we will start the production from India as the capacities ramp up. We will try and add some capacities in our U.S. plans also for this. So added to this, there are other customers with whom we are actively engaged both in automotive as well as non-automotive space like the off-road customer that we have like the stationary biggest one of the biggest large stationary engine or engine manufacturers that based out of U.S. So these are definitely a very positive the thing we expect some orders to start flowing from them for that programs as well, global programs. So our U.S. plans stands. We are committed to that. Of course, the size and nature has definitely going to undergo changes as in when we keep getting the orders.
Got it, sir. Thanks a lot. I'll come back in a few.
Yeah. Thanks.
Thank you. Reminder to the participants, anyone wishing to ask a question, may please press star one. The next question is from the line of Jyoti Singh from Arihant Capital. Please go ahead.
Yeah. Thanks for the opportunity. My question is on the exports front. We are seeing weaknesses on the exports front, and we also have major chunks from the export side. So going forward, how much growth guidance we are expecting? And also on the Europe side, as we are seeing issue on the energy prices that got 5x, so how we are dealing on that front?
Exports, as I said, madam, this year, we will not have any growth. In fact, we will have a flat to 0 to probably a 1% or 2% growth depending on the next two quarters of the region's performance. While there are programs that are new programs that are started both in U.S. and in Europe for us, that is actually going to offset whatever is the degrowth that the market will have. So that is why we are maintaining a flat position on revenue compared to the last year on exports. Of course, as I said, that exports from India could be slightly better than last year. But I mean, our production out of Swedish plant will be lower than the last year. So that would actually get nullified. So in Europe, our manufacturing facility, definitely, there are challenges related to energy cost as everybody is facing.
But we have made plans to mitigate that. Our management in the thing is very aware of this in Sweden, and they have been taking all the necessary steps to make sure that we get the energy at the best possible prices. But very limited actions that we could take in terms of what we can do there. It's only better planning in terms of usage of the facilities. At the peak hours, we could probably avoid those things. Don't use it during the weekends. So those things are being done. Other than that, we do not have much of a control on the energy cost. While saying that, in India, we are progressing quite fast.
In fact, all the Karnataka facilities at the end of this year for the current capacities that we have put up, we will be about for the current demand, almost between 85% and 90% of our power will come from our long-term contracts from the renewables. We are also studying other opportunities for our Maharashtra and for our Haryana facilities to go furthermore increase on this thing. So overall, Sansera is committed to work on the green energy. So this is the roadmap that we have.
Thank you, sir. And sir, my second question on the margin front. So how will margin get impacted with change in sales mix toward domestic?
So if you look at margin, it's a function of three variables. One is the volume. Second is the mix. And third is the commodity prices. So these are all as we've seen, and I believe this will continue to happen. All the three have been changing in one direction or the other. So while we expect a positive operating leverage because of the volume growth in our domestic markets, and that should help. On the commodities front, we now expect this should stabilize, and that should also help. And we are also seeing a better product mix in the domestic as well as exports, which is actually helping us improve our margins or helping us register better margins going forward. So we believe that the three of these factors will actually help us to maintain or consolidate our margins at the current level and slightly improve.
We are not expecting any negative movement on our margins even though our exports are not going to register significant growth.
Yeah. Overall, we expect that it will be 17%+ whether we'll end up at 18 or 17.5 or 18.5. Largely depends on the next two quarters of our performance. But we will be definitely 17%+.
Okay. Thank you, sir.
Thank you. Ladies and gentlemen, that is the last question. I now have the conference over to the management for the closing comments.
Yeah. Thank you. So thank you, everyone, for joining us today on this earnings call. We appreciate your interest in Sansera. While the industry is going through a lot of challenges, so is Sansera. But we are constantly working on adapting to these changes and catering to all our customers' changing needs, changing mix. And we are very hopeful that with the current order book and the positioning that we have, we will register a positive growth, double-digit growth, and maintain a 17%+ EBITDA. And with this, we conclude this call today. And if you have any further queries, please contact SGA Investor Relations Advisors or us directly. We could clarify them. Thank you very much.
Thank you. Ladies and gentlemen, on behalf of Sansera Engineering Limited, that concludes this conference call. We thank you for joining us. You may now disconnect your lines. Thank you.