Bosch Limited (500530) Earnings Call Transcript & Summary

Like always, I will start with a brief on the macro economy policy followed by automotive market update and we'll walk you through our financials. Finally, I would like to end with the highlights of the quarter affecting our business and update on environmental, social and governance, which is ESG, and that is for us, sustainability at Bosch. India's mobility and other economic activity have picked up sharply, primarily led by the government's vaccination program. Most mobility indicators are back to pre-COVID levels. RBI in its recent October policy, maintained status quo on policy rates, clearly incentivizing growth and regained the growth forecast for FY '21/'22 at 9.5%, following the [indiscernible] in the fiscal 2021. While inflation has come off its recent highs and risk continues to remain given valuated commodity and crude prices, the government finally seems to be on track to achieve the physical [indiscernible] forecast and India's excellent account remains healthy with record ForEx results. With this background, let us look at the automotive market development in the last quarter. The results are compared with July, September in 2020. Overall automotive market production can be [indiscernible] with the automotive market numbers. Overall automotive market production in quarter declined by 3%, including 2-wheeler segment mainly due to the semiconductor prices, which continues to help the overall automotive industry. However, a gradual improvement in the global supply chain is anticipated as the capacity show some signs of recovery after a prolonged COVID-19 pandemic [indiscernible]. Going forward, elevated fuel prices, higher commodity prices continue to be a major concern, not just for the automotive industry, but across all industries. Heavy Commercial segment increased by 91% on account of a low base in the previous year and [indiscernible] to a healthy pickup in overall construction and mining activity, fleet replacement, better capacity utilization for the current year. The recovery is expected to continue in the coming months. By the way, we must remember, Heavy Commercial segment is still at a very low base, and it will take quite a few years for us to reach the [ 4,80,000 ] which was a peak in 2018, '19. Passenger Car segment increased by 4% as the momentum remains intact on the back of the easing of the lockdown and [indiscernible]. However, semiconductor crisis is still hampering the production for major OEMs, while the demand is good. Tractor segment increased by 16% on account of [ healthy ] reserve levels, sustained [ government ] support in times of procurement of food and grain expected pickup in commercial demand are likely to aid the tractor demand. You must remember tractor came through the peak of '18, '19 by 2021 already, the fastest to recover. LCV segment also increased by 8%, largely driven by the surge in e-commerce and transport of dairy and fresh [ produce ]. However, semiconductor issues remain the concern in the coming months for this segment, while the demand is good. 2-Wheeler segment decreased by 6%. The domestic demand was impacted by continued purchase referrals in anticipation of attractive festive schemes, price hikes owing to commodity cost inflation and all-time high fuel prices. While domestic demand recovery remains volatile, the steady tool exports from India continued to support industry volumes. Amongst the other market segments, 3-Wheeler segment increased by 30% plus, but please remember, on a very low base. And as corporate offices and educational institutions are expected to continue to open in due course. Let's look at how the company performed in July to September quarter compared to July to September 2020 amidst all these factors. Revenue from operations for July to September 2021 stood at INR 29,180 million, which is an increase of approximately 18% as compared to the corresponding period of the previous year due to gradual improvement in business improvement from the pandemic hit period of the previous quarter. Product sales of Mobility Business sector increased by 17%, whereas the business beyond mobility which is Consumer Goods and Building and Energy Technology increased by 36% mainly led by the Power Tools division. The domestic sales for this quarter witnessed an increase of 15%. Within BBM, the Powertrain Solutions do better than the market growth [indiscernible] Bosch business mobility without the 2-wheeler, primarily driven by the growth in tractors and Heavy Commercial Vehicles. Strong growth witnessed in the aftermarket business, driven by higher exports as well as OE spare sales. We had a slight degrowth in our [indiscernible] business, which is driven by the semiconductor prices and the impact on the premium 2-Wheeler segment. Next slide, please. The material cost has a percentage of total revenue from operations has increased from 59.4% in July, September 2020 to 62.8% in July, September '21. Approximately 50% of the total material cost consists of traded goods, which is largely procured by way of imports from Bosch [indiscernible] and other group companies. The pricing of these products is determined at the beginning of every calendar year considering the planned volumes for the year is used in the -- using the forecasted exchange rate, based on actual volumes imported and constrained actual landed cost. The prices of these products are adjusted always on an ongoing basis. In July, September 2021, [indiscernible] the correction in pricing due to transfer price adjustments has resulted in an impact of material costs to the extent of 2.6%. This is a onetime impact. Employee cost has decreased to INR 2,528 million in July, September '21, from INR 3,083 million in July, September 2020 due to transformation [ stock ] restructuring projects and other related measures. Depreciation has increased by 4%, 4.1% in July, September '21 against the previous quarter of July, September 2020 due to more additions in July, September '21 as compared to July, September 2020. In case of other expenses, which stood at INR 4,736 million in July, September 2021 as compared to INR 4,112 million in July, September 2020. Other expenses, as a percentage of revenue for July, September '21 was 16.3% as compared to 16.6% in July, September 2020. Absolute increase is mainly because of volume growth of 18% and higher spending of new businesses. And these new businesses are our project house mobility services and project house electrification. Next slide. With this, our operating profit stood at INR 2,747 million in July, September 2021 as compared to INR 2,084 million in July, September 2020, an increase of 32%. The other income has also increased from INR 1,015 million in July, September 2020 to INR 1,243 million in July, September 2021, mainly -- a major part of it is due to the increase in mark-to-market gain in marketable securities. Coming to PBT and PAT for the quarter ended September '21, the company posted a profit before tax of INR 3,975 million as compared to INR 3,086 million in July, September 2020. As a percentage of total revenue from operations profit before tax stood at 13.6% in the current quarter. Profit after tax for the quarter ended September 2021 stood at INR 3,719 million, which is 12.7% of the total revenue from operations. Operating loss in July, September 2020 was INR 648 million. You will remember the last 2 years, both '19, '20 and 2021, where company had spent approximately INR 750 crores each for the 3R program that I talked, which is behind us. 3R means reskilling, redevelopment and restructuring. Some other highlights I would like to share with you. We are very proud to be associated with Mahindra & Mahindra who is the strategic partner of Bosch for its supply of wide-based products and services from [ an array ] from Bosch India, solutions include diesel, gasoline, power [indiscernible] systems, active safety systems, thermal management systems, connected mobility solutions, what we call [indiscernible] indicated as AdrenoX Connect. The platform is excessed with a range of features jointly developed between Bosch and Mahindra and offers innovative, immersive and intuitive experience to the customers to enhance the user experience, convenience and safety in their recently launched flagship SUV program, XUV700, and you can see the photograph here. The government of India recently announced automotive PLI, latest in a series of emerging industry-focused PLI schemes. Now of course, all of you know that the government is taking the input from industry again and will release the finalized version. The PLI comes at the right time and is a much-needed impetus for the automotive industry, which faces several and severe challenges in 2019, including the pandemic of COVID-19, wave 1, wave 2, and of course, the worldwide ongoing semiconductor crisis. The focus on incentivizing advanced automotive technology, in short, AAT, complements will enable the industry to accelerate future technologies and mobility with the aim to bring India a star with global standards. Bosch India and Bosch Limited are fully committed to invest in bringing these [ future ] technologies in the mobility domain, especially in safety and electrification. Bosch will participate to maximize the PLI benefits, which will help in overcoming some of the disabilities linked to industrializing such technologies. Bosch Limited Board of Management, yesterday, has accorded an in-principle approval for the invest in Autozilla Solutions Private Limited. This is a startup from Hyderabad that operates on a B2B on e-commerce marketplace for buying and selling of the parts. This is a part of an initiative to establish an effective digital ecosystem around our [indiscernible] vehicle workshops. Bosch Limited is in discussion with Autozilla to invest around INR 133.5 million for a minority stake of 26%. The investments shall be subject to statutory approvals. The transaction will enable Bosch Limited Automotive Aftermarket division to strengthen the market pool through its extra loyalty program for independent workshops and also our numerous Bosch service outlets. Coming to ESG. I would like to talk about the sustainability aspect of Bosch India. In 2020, Bosch India achieved, and by the way, we are one of the few companies in India. Bosch India achieved carbon neutrality at its 37 locations across India. This was achieved via 4-point approach, namely energy efficiency, clean -- new clean power, green electricity as well as carbon offsetting. Bosch focused on energy efficiency and significantly reduced its energy consumption. A portfolio of measures such as use of LED lights, change to heat pumps automation of building technology came into the forefront. The installation of more than 27-megawatt in-house solar power plants has resulted in 35-megawatt hour of renewable power, which consumes 13% to 15% of our total energy requirements, further increasing the overall energy green content by 27% through group captive business model. The model will enhance the ecosystem by building a renewable energy resource and reducing further the carbon footprint. The energy that Bosch generates and the purchase of the energy units for manufacturing and administrative in this case, Scope 1 and Scope 2 of the greenhouse gas protocol or [ GHG ]. This has a big impact on the overall emission. Keeping 0 emission as a part of the manufacturing strategy, Bosch India implemented a new group captive business model. The model allows Bosch India as a joint venture partner with renewable energy developers to build solar energy plants totaling to 50 megawatts in the states of Karnataka and Maharashtra. With this, Bosch India will procure 50% of its energy requirements to renewable energy by 2021. The development will result in the reduction of 100,000 metric tons of harmful CO2 or [indiscernible] on backside emissions year-on-year. Since 2019, the purchase volume of green electricity had significantly increased from renewable sources. Bosch India intends to purchase electricity from existing plants in the coming years as well. Bosch has pledged to compensate for unavoidable carbon emissions from combustion processes like heating, diesel generators, to the carbon credits, international renewable energy certificates. Offsetting projects are monitored and executed around the world, such as afforestation, wind farm projects to gold standard certified carbon credits and Bosch India, such as an international renewable energy certificate from hydropower plant located at Himachal Pradesh. Coming to outlook. As Bosch India is nearing its centenary celebration in 2022, so hopefully, we'll be happy to know in the year 2022, Bosch India becomes 100 years young. We started our journey, by the way, in Kolkata in 1922. We are more than ready to transform into a futuristic enterprise in a digital ecosystem while remaining true to our core of manufacturing and operational excellence and, of course, Make in India. We'll be happy to know next year to be 69 years Make in India. The global supply chain volatilities will continue to disrupt the mobility recovery story. Bosch India will continue to observe these developments while we maintain a cautiously optimistic business outlook, with India surpassing the 1 billion inoculations of the public [indiscernible], we remain hopeful of the restoration of normalcy in the overall consumer demand, which will help us to surpass the pre-COVID business targets and go towards the peak that India achieved in automotive area, for example, in '18, '19, fiscal year '19. During these times as well, Bosch India has remained committed with investments to develop solutions designed in India, for India, by India. Our long-term strategy is to shape the marketing technologies to innovative products and solutions in the area of PACE, PACE stands for personalized, automated, connected and electrified. We are focused in bringing diverse Powertrain Solutions with [indiscernible] our 2-wheeler portfolio. Our project house mobility solutions have created a light curated marketplace, allowing digital efforts to be transacted in the total within the Indian geography. This is a significant milestone, enabling e-commerce [ or digital assets like API ]. You will hear all about this in our launch of our Bosch India celebrations in February just before our board meeting in February '22. Our Beyond mobility business continues to focus on emerging e-commerce platform that has witnessed an exponential growth in the post-pandemic world. We are hopeful that the trend will continue and our very strong business on power tools [indiscernible] solutions and our very strong growth in aftermarket will continue to outperform the market, riding on this new channel. I would like to thank you on behalf of Bosch India for your contribution and for patiently listening to our call and until we meet, of course, in the Bosch India centenary in 2022. So now, I would like to, along with [indiscernible] address your queries and thank you for your questions, please.

[Operator Instructions] The first question is from the line of Jinesh Gandhi from Motilal Oswal.

First is a clarification on the iron cost impact which you've talked about, about correction in the contracted pricing. Can you give some more details about that -- this 2.6%, is this not only due to correction of pricing with the parent or what it is, exactly?

Thank you for asking the question, Jinesh. I mentioned to you, this was just a transfer pricing, which we had a production done and this is a onetime. So we will see ourselves back to the earlier projected material cost on which we want to, over time, further improve. But I already mentioned this was a onetime impact.

Okay. Okay. And secondly, with respect to our consumable business, thanks for giving the more granularity of our businesses. So we have seen a fairly strong growth in the consumer goods business after a long time. So what products are covered in this consumable business and what is driving such strong growth?

So Jinesh, consumer goods, we have segregated because they have crossed more than 10% of our turnover. And this consumer goods represents the power tools business. And the power tools business, Bosch India, Bosch Limited has seen a very good growth for multiple reasons. We have improved our entire dealer network. We have gone into significant [ inquiry ] into e-commerce. We are the market leader in power tools. And of course, our Chennai factory has been rated for the last 3 out of the last 4 years, the best plant in India. We are even planning to shift our power tools in Chennai to our Bosch facility, which should further help for us to grow and further utilize. And we are looking into the future with quite confidence on this business from multiple terms.

Okay. And last question before I come back to [indiscernible] about the semiconductor [ date ]. So many of your customers are indicating improved chip ability from those of second quarter. Are you also expecting similar improvement where second half will be better than first half in FY '20 to be better than FY '22?

So Jinesh, I would only say that the supply on chip, all of us, especially us, we can give only a directional answer. First point is, this is a global practice. This is not an India practice. Second, the prices impact electronics and not just automotives. Third, I've already mentioned that it takes a long time for [indiscernible] and for expansion of capacity, it takes even 9 months to a year. Now having said all this, as the semiconductor suppliers to the Tier 1 and we are the Tier 1 OEMs, have these bottlenecks and with the increasing demand, I would say, we will see over time improvements, but we will not see a normalcy in the fiscal and when it's a normalcy to meet the demands of the customer. And it's not just Bosch, anyone and everyone overall, will not see this normalcy in FY '21 or '22. And my guess would be where we don't have the data, nobody has the data yet that even the first couple of quarters, we may have challenges to get back to normalcy. So this is not about Bosch. This is about the global crisis. This is not about India, and it's not about automotive. And the world will see improvements happening over quarters. But if you ask, Jinesh, on what sort of improvement, there are too many ifs and buts, and I think any of us can only give a directional feedback.

The next question is from the line of Sonal Gupta from [ L&T Mutual Fund ].

Sir, just going back to, again, I mean, like you explained one part is the traded goods, there is a onetime impact. But I mean, like -- if I look at your annual numbers, I see that almost 90% of the traded goods are from the Bosch parent or subsidiaries of the Bosch. So is it correct to assume then -- I mean, because like, in some places, where I'm coming from, is we're acting as a system supplier like in exhaust gas treatment, et cetera. So would it be correct to assume that, that is not really a very large portion of business for us because otherwise, I would have thought that the non-Bosch traded component should also be substantial.

So there are 2 parts to it because it's a very deep question. One part is the traded goods, which I've already mentioned that we take into trading and later we go for localization. And we also look into what is the optimal localization. And within that, we also look at what we can outsource and what we localize in-house. So the traded goods, I've already shared on that one point impact in terms of price. On the other part, we do have, as you rightly said, mainly Bosch-traded goods coming from different parts of the world, all at arm's length -- protecting the public listed company in a very clear process-oriented way. And finally, for non-Bosch parts, we have a very strong supplier development methodology where we look at strategic partners -- and over time, and DNOX is one such example.

Got it. Or would like -- I mean, like I guess DNOX is -- like the urea pumps, et cetera, is done by Bosch itself. So would that be a major portion in the EGT as part of value that you have? Or...

Yes, Sonal. You can't generalize these things. I said DNOX is [ one such ]. There are other parts of [indiscernible] we also do. I've always been saying that for decades, we've had -- we start with trading. We see what are the volumes. We look at the in-house manufacturing and CapEx. We look at our supply development and then we take a [ go ]. So it's a mixture of multiple products and it's -- and you import keeping in mind both pricing, localization and very important, quality also. And it's not just DNOX, DNOX is one part of the [ trade ].

Got it. And just my second question on basically -- I mean, we've seen -- I mean, despite the sort of restructuring and the reskilling and all the efforts that you've done as well as -- I mean, like the margins are clearly much lower than what we had in the past, while you referred to the fact that there will be localization and therefore, we should see improvement. But would it be sort of fair to assume that, I mean, this sort of margin is more reflective of the -- now the current product mix? And therefore, I mean, we will only see a gradual improvement from here?

So you've asked the question and given the answer. So it's very difficult to comment because it's both the leading question and the leading answer.

Sorry. Basically -- it's okay, let me rephrase. I mean, like -- so do we see a substantial scope for improvement with localization and also putting that in context of the PLI scheme itself, that -- will that accelerate your localization effort?

So 2, 3 things, Sonal. I'll keep it short and crisp. First is, you've seen that we have tight control over our expenses. You've seen that on our personnel costs earlier, which was around 14%, 15%, we're going to bring it -- we have got it down substantially, and we will retain our personnel cost, more importantly, productivity and more importantly, ensuring talent retention. And then on the material cost, I've told you that when you go to BS-VI, you -- not just for us, everyone's material content goes up. Finally, of course, our intention is to improve our EBIT, but we don't give guidance. We don't give future. The management is here to optimize everything. And we will do it, and we don't look at quarterly results, we will do it over quarters and over the years. So in summary, there's a very clear focused plan both for the core, the adjacencies and the new growth area, and we will balance these and our focus is towards EBIT. But more importantly, our focus is towards also customer acquisition for not only current business but also future business.

The next question is from the line of Priya Ranjan from [ HDFC Mutual Fund ].

So first on, I mean, just one clarification on, say, this 2.6% correction, I mean this correction in transfer pricing. Is it -- just trying to understand, is it linked to the volume offtake? Or is it linked to the commodity cost? Or how should we look at it?

I've already given an answer, Priya Ranjan, but [indiscernible] to answer this.

I mean, nothing more to add. I think if you look at it as we go forward towards localization, of course, our priority is to localize products where the value addition in India will be quite high, and that will improve our profitability. And then in the next phase, other products will also happen. So yes, as we mentioned in the last call, the ratio of manufactured products in India and traded, it is quite high. Traded portion is quite high. And hence, that has an impact both on the material cost and the EBIT. But as the localization improves, there is a positive impact on the profitability as...

Understood. And just trying to understand, because of the chip shortage, how much revenue you might have lost in first half or is anything we can quantify, I mean, directionally your numbers?

Look, the chip shortage has impacted every month, electronics, automotive, everywhere. So it's a very relative question from what percentage to what percent do we look? Because there's -- it's a critical question because you can't supply at 100%. So I can do an arithmetic and tell you based on 100% and what we supply, what is a turnover loss that it's very critical. So in summary, both on top line and bottom line, the entire market has got affected, even Bosch. And the chip supply prices has been affected and will continue. Nothing to do with Bosch in India or worldwide, but this is a worldwide crisis. So it's -- sorry Priya Ranjan, but it's a little theoretical, as the company has got it...

Understood. Understood. But I mean, just to understand, is it substantial if these prices would not have happened?

Priya Ranjan, of course, it's substantial worldwide. It's like, what is the impact if we didn't have COVID breakthrough. Of course India would have recovered faster. So answer is very clearly, yes, not for Bosch, not for automotive in India or worldwide, it has had a major impact in meeting demand where supply has got -- has ensured not being able to reach the pent-up demand for various product centers, [indiscernible].

Understood. And just one more question on, say, PLI scheme, you have highlighted about the PLI opportunity. And so, are you looking at both in, say, traditional parts or as well as, I think, the new electrical parts in the PLI scheme as an opportunity or you are more from conventional parts, which has not been manufactured in India so far?

Priya Ranjan, I think all of us will have to wait for the finalized PLI scheme, which contains the elements of the advanced automotive technology. I'm sure you would agree to that. However, based on the government has announced saying that they will be focusing on AAT, advanced automotive technology, we, at Bosch, believe that this is a positive move in the right direction by the government to incentivize the advanced technologies. And we at Bosch India as well as Bosch Limited, will actively likely participated in it.

Understood. Understood. And just on the power tool business, you -- I'm just -- I'm sorry if I'm not understood. I mean, do you -- is it -- you said that you want to increase it to Bosch facility as well in some parts of -- other parts of the plant -- So are we trying to bring more global capacity to India in terms of power tools? That's what you wanted to understand -- tell?

No. I said 3 things, Priya Ranjan. I said that the Power Tools division is doing very well, both from the sales, marketing and the products at the product level, at the accessory level, yes, and also the way we sell it, including e-commerce platform and our reach with our dealers. I also said that our Bosch Power Tools plant has been an excellent plant. There are 18 power tools plants worldwide, and this has been in the #1 position for 3 years and the fourth year, it is the #2 by a narrow margin. So I said it's an excellent, and excellent set of word level. The first thing I said is we are going to move in the near future into the new power tools plant, which is at Bosch location, so which gives us added scope and chance of further localization in the future. And the last thing I mentioned was that the power tools business is developing very well, and I have very strong hopes on a sustainable and continued improvement on our business, which is already doing pretty decently. That's for it.

Okay, understood. And sir, lastly, on this -- the Prime Mister's recent visit to the COP26 and their commitment of, say, I mean, billion tonne lower emission in terms of the carbon, et cetera. So what is the regulatory road map you see for the CAFE and other, I mean, the electrification, et cetera?

Priya Ranjan, this is a very broad question. I can only tell you 2, 3 points. Bosch is very committed worldwide, but also for India in relation to COP26 ideology. We have shared with you today our ESG program, where we were one of the few. I don't know the only or not, but companies in India, which have proactively become carbon neutral, and I explained it in detail. And second, that in India, while electrification will come, we will have to continue to look at the vision of this renewable energy increase. I think it's looking at 500 gigawatts in the future, up from [ 135 ] if I'm not wrong. And all these are very important questions, while he has given a commitment for [ 2070 ] if I'm not wrong, not [ 2050 ].

Yes, yes. Correct. But I think [indiscernible] he has also given a commitment of, say, 1 billion tonnes of reduction in, say, carbon. So my more -- my question was more from automotive industry point of view. Because automotive is also a significant part of this emission of this carbon. So do you see the CAFE norms, et cetera, is going to be more tightened going forward?

And I'll just keep it simple. We have always said that the government, that long-term reforms we should announce and leave. So whether the past CAFE norms, whether it's the [indiscernible], whether it's the BS-IV to BS-VI norms, we have always said when we catch up to the rest of the world, whatever long-term reforms we announced, we should announce and we should leave it. Then this brings high credibility to our country. Some good examples we are -- some examples, we can [indiscernible] competitive credit. So I think we should give somebody else a chance, and I would request Annamalai Jayaraj that we have the last question because we have the last 3 minutes left.

Next question is from the line of [ Ravi Purohit ] from Securities Investment Management.

Sir, could you kind of share a bit on our export strategy, I think you have mentioned in our annual report this time, and I think we had referred to it in a couple of con-calls earlier as well. So if you could kind of elaborate a little bit more on the export strategy and also in terms of -- we keep kind of reading about our [indiscernible] fuel cell technology, their tie-ups with a lot of commercial vehicle manufacturers in Europe to supply the fuel cells. So are there -- can Bosch India shareholders kind of look forward to some of those technologies being brought into India? Either in the PLI scheme or in some form or the other? So if you could just kind of share some sort of a peak into a future of what a shareholder in India can look forward to -- from Bosch India over the next 2, 3 years, given the kind of opportunities that are there through PLI scheme or through various other methods?

So Ravi, on the export this quarter, we did well, I would say, on a relatively lower base. But we are about INR 350 crores and this is an improvement by 66%. But I would not go into that. I would go into more saying, we have 2 approaches worldwide in Bosch, which is called local for local. And yet, we work very closely with our sister plants, our sister companies on wherever we need to chip in, either for a requirement or [ on a sustainable ] need. So we have that policy too. In summary, I would say we are doing well in our regional companies, which is Sri Lanka and Bangladesh, which that service out of Bosch Limited by the [indiscernible] and aftermarket, and we see that as a good chance. And finally, I would say along with that, of course, yes, for different countries like Germany, Czech Republic, Brazil, even China, [indiscernible] and South Korea. So in summary, I would say, while our highest exports are back to Germany, we will have a further focused approach from '22 on exports.

Okay. And the other part [ is in terms ] of what we could look forward to in terms of newer technologies like fuel cell and some of the other things that the parent has been there. But from an India shareholder point of view, something to look forward to.

Well, we do bring contemporary technology in India. And I already mentioned that we have focused on reviving our core, focusing on [indiscernible] and investing in the new growth areas. So that we will continue to do from our cash flow and profit stuff we generate. So -- and of course, we work very closely with out parent from all the divisions as well as the [indiscernible].

Okay. So just one last very small question on the order book. I think you had mentioned that INR 24,000 crores BS-VI orders, which had dropped to like INR 18,000-odd crores. Any update what that number looks like as of now? Is it the same? Has it gone up, gone down? Last question.

On BS-VI? Is your question, Ravi, on BS-VI?

Yes, yes, sir.

Yes, Ravi, you know that BS-VI, the first year after launch for various reasons, including COVID, didn't take off as much. But now it's on track and taking off and we have a higher content on the BS-VI and we are delivering and we see that -- this to continue. So Ravi, we have to now finish because we are out of time. And... [indiscernible] over to Mr. Annamalai Jayaraj [indiscernible] from us.

Yes. We thank all the participants. We thank Bosch management. Thanks, sir.

Thank you.

Ladies and gentlemen, on behalf of Batlivala & Karani Securities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.