Ladies and gentlemen, good day, and welcome to Q1 FY25 post-result conference call of Varroc Engineering, hosted by ICICI Securities. 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 has been recorded. I now hand the conference over to Mr. Basudeb. Thank you, and over to you, sir.
Thanks, Sumit. Good evening, all participants. Thanks to the management of Varroc Engineering for giving us the opportunity to host the call. We have with us the senior management, represented by Mr. Tarang Jain, Chairman and Managing Director, Mr. Arjun Jain, Whole-Time Director and CEO of International Business, Mr. Mahendra Kumar, Group Chief Financial Officer, and Mr. Bikash Dugar, Head of Investor Relations. So over to you, Tarang Jain, for initial comments.
Yes, Tarang Jain here. Thank you, team ICICI Securities, for hosting the call, and good evening to everyone for joining the call. The Indian economy continues to perform well, and the latest GDP growth for Q4 of FY 2024 was robust at 7.8% for the quarter. This result confirms that India is the world's fastest growing economy. The global economy continues to remain uncertain due to geopolitical issues in Europe and Asia and recession fears in the US. In Q1 FY 2025, strong domestic macro factors resulted in most of the automobile segments growing on a year-on-year basis, other than the commercial vehicle segment. The two-wheeler segment grew by 19.6%, three-wheelers grew by 9.4%, passenger vehicles grew by 5.8%, but the commercial vehicles degrew by 1.4%.
On a quarter-on-quarter basis, we saw a degrowth in almost all segments other than two-wheelers, primarily due to the cyclical nature of the industry. Two-wheelers grew by 6.1%, three-wheelers degrew by 1.4%, passenger vehicles degrew by 10.3%, and the commercial vehicles degrew by 13.4%. The overseas market, especially the US and the European market, also showed negative growth for two-wheelers. In the Asian region, the growth was largely driven by low-end segments, and the premium segment continues to struggle for growth in this region. During quarter 1 of FY 25, despite negative growth in overseas operations, which we explained in our previous calls, and some commodity price adjustments, the company registered a revenue of INR 18,989 million, with a 5.2% year-on-year growth.
The Indian business reported a growth of 11.3%. We remain confident that our business wins and EV volumes will be ramping up in the remaining part of this financial year. The profitability of the company was also impacted by the start-up costs related to two plants, two new plants in Maharashtra. Despite these challenges, our company could register a PBT of almost 3% during quarter one of FY 2025. As indicated earlier, we are working on various special initiatives to achieve cost reductions across several categories of cost, with special focus on fixed cost. We also mentioned earlier that we are increasing sourcing from renewable sources.
The first phase of this initiative is expected to result in 36.6 MW of power sourcing from solar power, starting from quarter two of this year, and is expected to give us an annual recurring saving of around INR 200 million. The board has also further approved phase two to source another 14 MW of power in this financial year. We are also implementing various initiatives in the overseas markets also to reduce input costs and fixed costs. All these initiatives are expected to gradually improve our margins starting from half two of this year. We also continue to remain prudent in our capital allocation and then exercise a tight control on working capital and CapEx.
This has resulted in a net debt reducing by further INR 668 million in quarter 1 of FY 25, and our net debt to equity has improved to 0.59. We remain committed to improving free cash flow generation and strengthening the balance sheet. In the past 2 years, we have seen our efforts resulting in a strong free cash flow generation and debt reduction, thereby strengthening our balance sheet. This improvement has resulted in an upgrade to the credit rating of the company by 1 notch to double A-minus for long term, and our short-term rating is at the top notch, which is A1+. Our endeavor remains to continue this journey of improvement in coming years also. In quarter 1 of FY 25, our lifetime new business wins was over INR 7,959 million.
The cumulative order wins are expected to result in annual peak revenue levels of around INR 1,416 million. Nearly 48% of our business wins in this quarter has come from the EV players. Our revenue from supplying to EV players in quarter one, FY 2025, was approximately 8% of our overall revenues. Looking ahead, while the global economic environment remains uncertain, we are confident in our ability to capitalize on opportunities. We'll continue to innovate by further strengthening our engineering capabilities, streamline operations through further cost reductions and working capital optimization. Our endeavor will remain to expand our presence through focused products to drive sustainable growth and deliver value to our shareholders. We also continue to focus more on export opportunities, growing our aftermarket business. We'll continue to build on our strengths, uphold our values, and create value for all stakeholders.
We have uploaded our investor presentation in the stock exchange as well as in the website. I will now ask MK, our Group CFO, to walk you through the presentation and give more insights on the financial performance for this quarter. Thank you.
Thank you, Tarang. Good evening, everyone. Let me reiterate some of these highlights. 11.3% was the India business growth during Q1. At the total consolidated level, it worked out to 5.2%, largely because of the challenges which we have in the overseas markets. We explained it in the previous calls also that H1 is going to be tough for us for the overseas market, but thereafter, we should see a gradual recovery over the next one to two years. Coming to the profitability, we reported 2.9% PBT in Q1, compared to 3.6% last year, and EBITDA was at 9.1%. Net debt continued the downward journey, so we reduced it by about INR 66 crores in Q1.
So we are now pretty close to INR 900 crore, with just about INR 916 crore kind of net debt level. As our chairman mentioned, the rating upgrade happened to AA-. In terms of lifetime business won also, close to INR 8 billion of new lifetime orders is what we could win in Q1. And interestingly, almost 50% or 48% of the business is EV related vehicles. And actually, the revenue from EV related business in Q1 added up to 7.8% of revenue. Coming to the cost reductions, as our chairman pointed out, the renewable energy is now going to yield results from Q2 onwards, which should actually give us INR 20 crore of benefit on a recurring basis, annually.
Further, we are also trying to invest in phase two, which will get us another 14 million MW through renewable sources. That should also give about INR 7-8 crores of recurring savings per annum once it is implemented. Going to the next slide, which is about the automotive production trends. I think some of these numbers were mentioned by our chairman already. So if you see the year-over-year growth, almost all the segments registered either single digit or double digit growth. Two-Wheeler grew by almost 20%. Commercial Vehicles alone had a negative growth. On a sequential quarter-over-quarter basis, Two-Wheeler grew by about 6%, and other segments had a negative growth. In the current quarter, on a sequential basis, EV Two-Wheelers actually registered a growth of close to 6%, 6.4%.
Coming to the consolidated financials, as mentioned earlier, there's a 5.2% growth in top line, 2.9% in terms of PBT. A couple of challenges, of course, which we briefly talked about earlier, contributed to this kind of challenges in Q1. One is the in terms of profitability, if you really see, the negative operating leverage in overseas operations had an impact, which we also indicated earlier. In addition to that, there were a couple of new plants also, which have just commissioned operations in Maharashtra, so there are initial startup costs which impacted us in Q1, but here again, we should see gradual improvement in the coming quarters.
So we are going to focus on the ramping up of new volumes on the new order wins, which we had in the recent times. So that should support revenue growth for the rest of the year. In addition to that, as our chairman also mentioned, we are focusing heavily on the cost reduction initiatives, particularly in fixed cost area. Coming to the balance sheet and ratios, as I mentioned earlier, the Net Debt is now close to INR 916 crores. So that strengthens the ratios further. The Net Debt to equity is below 0.6, now 0.59. And Net Debt to EBITDA is also just about 1.3, and Return on Capital Employed is at about 16.3%. The next slide, we have given the revenue breakdown.
I think the key point to be noted here is the relative increase in size of electrical and electronics, plus also the polymers business. In terms of geography also, the India business strengthened further. And in terms of segments, as usual, two- and three-wheelers add up to now 78% of the total now, and Bajaj business is now at 44.6% or close to 45%. In terms of the order win, close to INR 8 billion order win is what we are talking about, and this should result in an annual peak revenue of another INR 142 crore. This is on top of what we announced earlier. And nearly close to 50% of this is in EV-related volumes.
Another interesting point here is the four-wheeler share is close to 71% of this total business range, and the non-Bajaj part is almost like 82%. The next slide is about our continuing philosophy of improving the top line growth, coupled with margin improvements and ensuring that everything converts into free cash flow and prudently gets deployed. That philosophy continues for us. The subsequent slides are more for information. Let me stop here. We'll be glad to take your questions from here. 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 the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Jhawar from Investec. Please go ahead.
Yeah, hi. Thanks for the opportunity. My first question is that if you can call out what was the impact of a start-up cost in the two, for the two plants in Maharashtra?
Yeah. So, I mean, it's, it's a significant number. I don't want to give the exact number, but it should actually improve it in the coming quarters.
It's a significant number, and these are two plants which we started, you know, in our plastic molding business, you know, and also we're doing some fuel tanks in Bajaj Auto. These are the plants we've set up for Bajaj Auto within, in Bajaj Auto. And this is where I think these are the start-up costs, but, you know, going forward, we see that these losses in Q2 will be significantly reduced and, and then we start making, you know, margins, you know, from Q3 onwards.
Okay. Okay, fair enough. You know, as you explained the growth between India and overseas market, it would be great if you can give some perspective on profitability of India and overseas. A related question is that, you know, how should we think about margin expansion from here on? If you can break it down between, you know, some geographic mix changes, certain overheads that, you know, will get, you know, better absorbed over a period of time, cost saving initiative, mix change. How should we think about margin? And also, you know, the split of profitability between India and overseas market.
Yeah, Mahendra here. So to give you the overall picture, as far as the India business is concerned, I think the cost reductions are gradually falling in place. If you eliminate the impact of the government incentives in Q4, I think there was some improvement, some good, reasonable improvement in the gross margins already, in this quarter. So in India business, that story continues. And we are also focusing on all these other fixed cost reductions in the coming quarters, so that should strengthen the Indian profitability further. As far as the overseas thing is concerned, as we indicated earlier, the negative operating leverage is coming and hitting us, which is what we indicated in the previous quarters also. That will take, some time.
I think it should slowly improve, but for us to see any concrete improvement, I think it will take anywhere between 1 to 2 years. So what we are now heavily banking on is on the cost reductions, while we wait for the ramp-up to happen on the volumes. Our heavy focus is now on reducing cost, both in terms of the regular supply chain cost reductions, which we anyway do. On top of that, we are also working on some cost reduction programs with some Big Four consultants. So that will enable us to see some good cost reductions starting from H2. But again, for you to see the full year benefit, I think it will obviously start from next year.
Okay. Any number would you like to give? What should we think about margin and the split between India and overseas in the next-
I mean, margins should, I mean, I don't want to put a number to it, obviously, but margins should certainly improve from the current level in the outer quarters, that's as far as, as far as the India business is concerned. Overseas, it should more or less stay at this level. So on the whole, we should see improvement from the current levels.
Yeah.
Sure, sure. My final... Yeah.
And then, Aditya, I would add, I think in India, I think we would expect incremental operating leverage also coming from, you know, the ramp-ups of the different launches that we've had, right? So of course, I think, you know, different vehicles in the market that have launched, you know, we have content over there. But also, as EV volumes also continue to expand, I think all of that together would give us a fair amount of operating leverage also.
What we have already announced, Aditya, is on the renewable energy part, which is like INR 20 crore, so that itself is close to 0.3%, if you want to be sure about the numbers. But the other things are still in the pipeline. Maybe once we get clarity, we'll be able to share.
Okay. My final question is on order win. So if, if you see that, you know, EV is about 48% of lifetime order win, and, you know, Bajaj Auto share in lifetime order win is sub 20%. So it would be interesting if you could highlight that what are the, you know, breakthroughs that we have had in EV, orders in non-Bajaj, customers, and if you could highlight some products?
Yeah. So again, it's not necessarily just EV specific products, right? When we are declaring these order wins, we are bifurcating between what is going into an EV model versus what is going into an ICE model. Right. Like we've declared before, we have two EV powertrain customers beyond Bajaj, for whom development is ongoing. One is local, one is foreign. So those SOPs also, we would expect within this financial year. Outside of that, there is a fair amount of business wins that have taken place across lighting, across painted plastics, across full service supplied polymer parts into passenger car, right?
I mean, to give you a little bit of color, I think, I think that's basically the broad split of the order book.
Sure. I'll take it offline. Thank you. That's it for me. All the best.
Thank you.
Thank you.
Ladies and gentlemen, just a reminder, anyone who wishes to ask a question, may press star and one on the touchtone telephone now. The next question is on the line of Vishal from Swan Investment. Please go ahead.
Thank you for taking my question, sir. Sir, this question is regarding our gross margin. We have seen a slip of almost 190 basis points in gross margin. Can you explain, is there any component of startup cost sitting there as well, or, you know, what—basically, is it because of raw material escalation, or can you throw some light on that, please?
Yeah, sure. I think you are looking at it sequentially.
Yes.
What you need to do is, you need to adjust for the one-timer, like government incentive, which we had last quarter. So if you eliminate that from the revenue, actually it improved by 1%.
Okay, okay, okay. Sir, one more question regarding our overall growth. So, if we see, almost 55%-60% of our business comes from the two-wheeler, and except for two-wheeler, sequentially, all the segments have seen marginal decline or a double-digit decline. In case of CV, we have seen a double-digit decline. And for us, top line has de-grown by almost 4%. So is it fair to assume that there has been no content increase as far as, you know, growth is concerned for us in this top line, in this quarter?
No, I think, I think, again, you are seeing it sequentially and, last quarter was colored by the government incentives, which was a cumulative thing, which we took last quarter. So if you eliminate that from the base, it was more or less flat or maybe slightly about 1% increase sequentially. But that is again, driven by various factors. I think one of them is the low ramp-up in the EV segment also, which should now pick up momentum because of the same two incentive and the other uncertainties. The EV volumes of two-wheeler did not grow much, in the first quarter, so which should get corrected from now on.
Okay, okay. So, sir, in normal conventional vehicle volumes, we have, you know, guided that, in the incremental order book, our content increase is much higher. So, has the execution on the new order not begun to that extent where it will materially benefit our content? Is this understanding right?
No, I would say the execution, I think for a fairly large portion of our order book, and for the launches that were to be expected so far, the execution has taken place. But in terms of the ramp-up of the volume for that execution, and also sometimes the customer model also is a little bit delayed, that also, I would say that also potentially sets us back a little bit. But having said that, I think in terms of execution being on track, I would say execution is largely on track.
Okay. So, sir, going ahead, how do you see our content increase in coming quarters and for this year? And there is lot of noise going around that for four-wheeler segment, this year is going to be a challenging year. So how do you see going forward our top line growth for FY 25 first half and second half, perhaps, if you can throw some light on that?
So, okay, I think if we, as we are thinking through this content increase topic, I would break it up into two parts, right? I think one is with, let's say, the level of technology that is already executed on certain vehicles, driving incremental market share gain, right? So some of our launches really enable us to drive a level of market share gain, right? So that is one part of the story. And really, I think in two-wheeler, I would say that is a more applicable part of the story, because practically, the total content that we have talked about in the past, we have launched a product for almost, I mean, all of that content, we have a product on the road to address it.
When it comes to passenger car, for sure there is a level of content increase that is taking place, both further content increase that is taking place, both in lighting and also in terms of polymer parts. And I think those are launches that I think those are launches that we would expect to see, those are launches, especially in the full service polymer parts, that we would expect to see through the through the rest of the year.
Okay, okay. Sir, in terms of, you know, we have seen, there has been reduction in the debt levels, but our interest cost remained around INR 44 crores for the quarter. In fact, for last two years, there has been some notable decrease in the debt levels, but quarterly run rate of the interest cost have remained almost a similar levels of around INR 45, 50 odd crores. So when can we see, sir, first question is why is it so? Why is not a notable decrease in the interest cost? And when can we see, you know, some kind of substantial decrease in the interest cost from here on?
No, here again, I think we need to compare apples to apples. If you see Q4 number, Q4 interest cost, it also had a benefit of reclassification of leasing interest between interest line item and the other rental expense. So that way, if you really see in terms of the actual interest cost, there was a reduction of about INR 3 crore already between Q4 and Q1. So that way, I think the benefit has started flowing in. We should see this continuing and becoming even better as we continue to repay debt.
Okay. Sir, I was comparing, in fact, you know, from first three quarters of FY 2024, there was almost around INR 50 crores of interest cost, which has decreased to INR 45 crores last quarter in Q4, and now it is around INR 44 crores. So my question was, and in this period, there has been substantial decrease in the overall debt level. So, and that meaningful decrease in the interest cost hasn't come. So, that was my question I was coming from, that when can we see? So as you're saying that from quarter-on-quarter we will be seeing some material decrease in the interest cost, is the understanding right?
Correct. Correct. We should see it, and another point is, if you're really comparing it with one year ago, some of these lease interest also got added. Like what we mentioned, some of these new plants had leasing arrangements, plus we have an R&D center also which got into a leasing arrangement or renewed it. So those lease interests are also included in this line item. On top of that, there is a loan prepayment cost also which got included under this line item certain quarters. Here again, it's all bunched up under this line item called financing cost. So maybe some of this noise will get eliminated in the coming quarters because there are no more such adjustments which are likely to come in the near future.
As the debt keeps coming down, now, from now on, we should be able to see that kind of reduction.
Okay. Sir, my last question, if I can take one more. Sir, regarding our other expenses and the employee cost, is it the same, you know, a substantial portion of the startup costs sitting in these items, is the understanding right?
Yeah, you're, you're right. Plus, it also includes impacts of some of these power cost increases.
Correct.
Those kind of things. Yes.
Okay. So this has been elevated for last two quarters. So gradually we will, we should see some sort of decrease, as we go ahead in the upcoming quarters, as, you know, things will be absorbed for, from the point of view of the two plants, right?
Yeah. So yes and no. The reason is, yeah, some of the startup costs should come down going forward, but at the same time, as the scale goes up, it has both variable and fixed components. So some of the costs will also go up as the scale of operations goes up. And if you are comparing with the previous quarter, previous quarter also had this one-time write-off, which we took on, one of the EV customers.
Correct.
That is also part of this. So that way, the previous quarter number was pretty high. But the current quarter number also will go, I mean, will go up and down, depending upon the scale of operations going up, plus some of the startup costs getting reduced.
Okay. Thank you so much, sir, and all the best. Thank you.
Thank you. The next question is on the line of Vinay Jain from Karma Capital. Please go ahead.
Hello.
Hi, Vinay.
Yeah, hi. Thanks for the opportunity. Very heartening to see gradual improvement in the overseas business top line, although not that incremental, but a gradual, steady growth coming there, and the gross margins improving on a sequential basis. What is somewhat concerning to me is, if you look at the domestic electrical, electronics and lighting business, so that has grown in high single digit versus, again, our mix also was favorable, with almost 78% coming from two-wheeler, three-wheeler. So just wanted to understand, what am I missing over here? So versus an industry growth versus our mix also being higher, why is the revenue growth slightly on the softer side?
Yeah. So I would say 2 or 3 different reasons, right? I think one, if you look at the volume growth in the two-wheeler industry, it's largely come in IC engine scooters and sub-125 cc, 125 cc and below vehicles, where I would say naturally we have a, we have slightly lesser presence, right? I think where we have fundamentally far more presence is in the 150 cc and above, and also we have significant presence on EV. Right, so I think as those segments continue to ramp up and our launches in those segments ramp up, I think that is something that we correct. Further, I think in this is also the passenger car, passenger car lighting.
And passenger car for sure, I think it's been a little bit depressed in this quarter. So I would say that's really why in this quarter you see that impact. But on the flip side, right, I think our polymer business, given its pan-India presence and given significant volume presence, across all segments of vehicles-
... I think you've seen that business do very well.
Tarang, sir, in the opening remarks mentioned about price, commodity price adjustment, also impacting revenue to a certain extent. So, could you maybe dwell a little bit more on that aspect?
I think, yeah. So these are some of the normal adjustments or price changes which keep happening in this industry, as you know. So this is again, a transitory phase, so it should get corrected in the outer quarters.
There is nothing very special or significant or something, and I think we will see really a lot of improvements from Q2 onwards.
Understood, sir. Lastly, on coming to the PV segment again, if you see four-wheeler and others, on a year-on-year basis, the degrowth seems to be quite sharp. So, have we lost any business, or what is it pertaining to? Because if I see on a year-on-year basis, there is a drop of almost 19%, coming on from the four-wheeler and other business segment.
Yeah. So again, I think there are multiple topics at play. I think one, in our overseas market also, I think there was definitely a significant element of sales into four-wheeler. And then further, I would say, I think a lot of the growth that we've experienced year-over-year has really come more from two-wheeler.
Basically, the degrowth was largely more, I think, you know, in our foreign operations, not in the domestic operations when it comes to passenger cars.
Just to better my understanding, so for the overseas, IMES would be largely contributing to this four-wheeler segment, right?
No, no. IMES is a non-auto segment.
IMES also is a-
Overall, it's got, yeah.
Yeah. It would be in the four-wheeler and others.
Yeah. IMES and the electronic part of which we have in Romania.
Largely it is this IMES facility and also our electronics plant in Romania, where we have seen this kind of a degrowth.
Understood. Understood. Got it. Yeah, that answers my question. Okay. Thank you, sir.
Thank you. Ladies and gentlemen, just a reminder, anyone who wishes to ask a question may press star and one on the touchtone telephone now. The next question is from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead.
Yeah, thank you for the opportunity. Sir, my question is on the debt reduction side, as we have reducing debt from last two, three quarters. But if I see, it's not significant, we are doing in the range of 6%-7%. So can I get some visibility on that side, when we are going to reduce significant?
Sorry, I didn't get your question. What is that 6%-7%?
That's the reduction in interest cost.
Debt reduction that we have done.
Yeah, so interest cost, like, how I explained in the earlier part of this call, we should not compare this directly with the Q4 number, because Q4 number also includes a one-time adjustment between interest cost and the other rental cost on other items. So if you eliminate it, there actually was a INR 3 crore reduction between the two quarters. So as we continue to reduce debt in the coming quarters, this should actually give more improvement.
Yes. Sir, my question is on, basically focus on the debt reduction side, like how much we are expecting further reduction?
Yeah. So if you really see, you might have seen what we reduced in the last 3-4 quarters. So on the average, anywhere between INR 50 crore-INR 60 crore reduction per quarter has been the trend. So we should be able to continue this, except that in between, we may have to invest some amount in terms of buying some additional land for our future growth. But otherwise, this should be the norm going forward.
We are, I mean, we cannot expect significant, but it will be in this range only.
Yeah, I mean, obviously, it has to come from free cash flow only. So, that's the kind of free cash flow generation anyway, which is what's going to happen going forward.
Okay. Sir, another question on the PV content increase. If you can shed some light on the exact quantum, how much we have increased?
See, it's difficult to put, I mean, it's difficult to put, how do I say it? A number on it per se, right? Because the range can be extremely, extremely significant. Of course, I think with, I mean, offline, I think Bikash can definitely drive some more color for you. But I mean, practically, you could have lighting, which is at, I mean, you could have a full set for INR 15,000, you could have a full set for INR 50,000 also, right?
So in terms of the similarly, I think even on the polymer, right, based on the level of finish requirement, based on what is the touch and feel expectation, whether for interior plastic, sometimes even for exterior plastic, you can have a very wide range on that number.
Sir, just last-
Customer to customer requirement.
Okay. Thank you, sir. Sir, just last question on the customer side. Like, still, Bajaj is contributing 45% of the revenue. So when we are targeting, like, other player in the industry, that we can also, then, kind of, that, you know, 15% from each customer?
... So when can we expect that?
I'd say, firstly, there is no stated desire to be at, you know, 15% from each customer. I think, really the customer mix or even the segment mix is a derivative number based on what are the businesses that, what are the businesses we have won, right? So, you know, I wouldn't say there is a strategy or a desire to reduce the share of Bajaj per se in some way. Having said that, of course, today, today in two-wheeler, we address and we supply to every customer, we, we address and we supply to every customer in the market, every relevant customer in the market. So the touch points already exist.
And I think if you see the order book also, I think the order book is definitely skewed a little bit, the order book is skewed a little bit away from Bajaj. Further on, passenger car as well, right? Today, if we look at the range of customer we have on passenger car, it is quite comprehensive, right? We address, we address Mahindra, we address Tata, VW, Renault, Nissan, and then on, and then we have further commercial vehicle, MG Motors, then we have further commercial vehicle customers also, right? So.
So, I mean, as we move around, you will see that this, not that we do not value the business of Bajaj Auto, and that will keep growing, but yes, this percentage will probably keep coming down as we go forward. It's just that, okay, at present, I mean, it is at a higher percentage, but our efforts are on to win business from every single customer, you know. So, and that is also happening, and we've also won last year substantial business from other than Bajaj Auto. So those will all come into play in this year and the coming years.
Okay. Great. Great, sir. Thank you so much.
Thank you. Ladies and gentlemen, just a reminder, anyone who wishes to ask a question may press star and one on the touchtone telephone. The next question is from the line of Vishal from Svan Investment. Please go ahead.
Sir, thank you for taking my question again, sir. Can you, you know, I missed the point where you explained that four-wheeler segment, the business has seen some decline. So YOY, if you see four-wheeler and other segment, has seen some around, say, 18%-19% decline. So is it because of losing market share or, you know, some models which were being awarded to have, has not picked up? Or can you throw some light what happened there?
No. So, like how Arjun explained earlier, this four-wheeler segment includes the overseas business also, which witnessed significant degrowth, as we explained earlier. So it's a combination of both.
The significant decline happened actually in two of our plants abroad. One is IMES, and the other was in our Romania electronics plant, where we saw a substantial, you know, decline in the volumes because of the situation in Europe.
Okay. Okay. So can you throw some light, what, in terms of domestic business, has it grown YOY and Q1Q, or, you know, what is the status there for four-wheeler business?
Four-wheeler business overall has remained muted only. Not grown, not degrown in the India business.
Okay.
At present, at present. But that will, we'll see the growth happening in the coming quarters, that is, business will grow with all the business wins we have, you know, which we've had last year and year before last.
Okay. Okay. So just one request and suggestion from my side, and, you know, it will benefit everybody. If you can, you know, give a breakup of, you know, exports between four-wheeler and how the there has been trend qua on a quarterly basis in your presentation. If you can add that slide and some color on your export business as well, that will be really valuable add for us.
Okay. Okay, fine. Yeah, we'll do that. We'll do that.
Thank you so much, sir. Thank you, and all the best.
Thank you.
Thank you. That was the last question. I would now like to hand the conference over to the management for the closing remarks.
Thanks once again for all for joining the call and for your continued support to our company.
Thank you.
On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.