Eicher Motors Limited (505200) Earnings Call Transcript & Summary

Hi, all. Welcome to Eicher Motors Limited Post-Q4 FY '24 Results Conference Call. We have with us the senior management of Eicher Motors, represented by Mr. Siddhartha Lal, MD and CEO; Mr. Vinod Aggarwal, MD and CEO of VECV; Mr. B. Govindarajan, CEO of Royal Enfield; Mrs. Vidhya Srinivasan, CFO, Eicher Motors Limited. Thanks, again, to the management for giving us the opportunity to host the call. Without wasting any time, over to the senior management for their initial comments.

Thank you, Basudeb, and ICICI for hosting this for us. And hello, everyone, and welcome to the earnings call for Eicher Motors Limited for the quarter ended -- quarter and year ended March 31, 2024. So we've had an absolutely stellar year at Eicher Motors with consistent and solid growth through the year, and we've grown from strength to strength each quarter, and making -- marking new milestones in our business and financial performance. I'm going to begin with our update on Royal Enfield. Again, an absolutely fantastic year with -- where we've maintained our lead and our dominance in the premium motorcycle segment and have closed the year with [ 9,12,000 ] [indiscernible] approximately. So that's the best performance we've ever had in a year. Had some absolute category defining launches this year. We introduced the Himalayan on our new engine platform, the Sherpa 450. And we've seen absolutely tremendous response from consumers in India and around the world, and from critics and media and [indiscernible]. So -- and in sales as well. So on the product development and manufacturing and quality front, we've continued to push the boundaries and are now absolutely amongst the best in the world, which is evident from the fact that we've got the world's best cruiser and possibly the world's best adventure motorcycle also, based on all the inputs and all the awards we've got, which is the Super Meteor 650 and the new Himalayan. And of course, we also -- the Himalayan also won the Indian Motorcycle of the Year in 2024, which is the most important award because it involves the largest group and a very large group of motorcycle journalists who come up with this. It's a single award. And this is our fourth Indian Motorcycle of the Year in the last 6 years. So we've dominated that single award that's given to the best Motorcycle of the Year. We've also made great strides in our EV journey in the last [indiscernible], and we have a very solid, not only single product, but a range thought process. We have really built our development capabilities, our technology, our technical teams and now even our commercial teams are really being built up. And we're working on a very solid differentiated portfolio and lineup for EV, which will come in the right time in due time. Coming to VECV, our joint venture with Volvo for commercial vehicles, we've had our highest-ever sales for the Eicher truck and bus division for Volvo trucks for VE powertrains, where we sell engines to Volvo Group around the world. And in our components business and our power solutions business, these are all verticals of VE commercial vehicles. And on the EV front, at VECV, we have delivered over 230 electric buses so far, and 75 EV trucks, our Eicher Pro 2055. And -- so we are making strong progress on the EV front and deliveries and tracking how those vehicles are going, which is very good. We also showcased a new electric, small commercial vehicle at the Bharat Mobility Show earlier this year. So we are entering into the small commercial vehicle segment, which is the 2 to 3.5 tonnes. And the first vehicle in that VECV for Eicher will be an electric vehicle. So yes, global category is extremely new for VECV, and so is the EV first type of program. But this is a category where Eicher brand has a lot of salience, a lot of brand equity because of our strength in light and medium duty as well. So we're very hopeful that we'll make a big impact in this very large market of small commercial vehicles. We also made huge progress in our sustainability journey. We've -- our most ambitious social mission project, which is the Himalayan Hub, went live where we have -- in Theog in Himachal. So we have fellowships. We have hub for circularity for experimentation for, let's say, responsible travel. These are the kind of areas that we're looking at to develop over the years for sustainable travel and sustainability in the Himalayas. We also had another very important project called the Himalayan Knot, which is about strengthening indigenous heritage textiles in the Himalayas, and along with the Himalayan artisans and communities being closer to urban designers and urban markets and rider community. So that's gone on well. We also concluded the second edition of the great Himalayan exploration, in partnership with UNESCO. So -- which is the concept there is to document and conserve the intangible cultural heritage. In this case, we are doing it in the 8 states of the Eastern Himalayas, where we've documented this year, 45 different intangible cultural heritage elements for posterity, for future, for reference, for support. So it's a very exciting project. Well, now coming to the financials. We've had another record-breaking performance. So we have a lot of best evers coming up in revenue and EBITDA and PAT. So the consolidated financials for Eicher Motors Limited for fourth quarter and for the full year. We've had a highest-ever revenue for 8 quarters in a row now, and resulting in the highest-ever annual revenue in EML. So for Q4, revenue for EML stood at INR 4,256 crores, up 12% from last year. For the full year, EML revenue stood at INR 16,536 crores, up 14.5%. And if you take the INR 16,536 crores for EML consolidated, and then you add VECV, which is not part of the first figure, and VECV is INR 21,459 crores. So the combined revenue on both RE and VECV, so if you look at the group level, is nearly [ INR 38,000 crores ]. So that's $4 billion combined revenue last year. EBIT profits have grown year-on-year and sequentially, and we registered the highest-ever PAT and EBITDA for the quarter as well. The EBITDA is [ INR 829 crores ], up 21% for the quarter. And for the year, it's INR 4,327 crores, up 26%. So solid growth in EBITDA, both for the quarter and for the year. The EBITDA margin is at 26.5% for the quarter, that's 2 percentage points higher than last year and 26.2% for the full year, which is against 23.8%. So it's substantially higher than the previous year around. Our PAT is at INR 1,070 crores, up 18%. And for the year, we got ahead of INR 4,001 crores mark, up [indiscernible]. So solid numbers overall, as far as we're concerned, from EML. And now I hand over to Govind, the CEO of Royal Enfield to you give you a little bit more insight and detail on the Royal Enfield business performance.

Thank you, Siddhartha. Hello, everyone. Good afternoon. Thanks for joining on a Saturday. All of us at Royal Enfield are super proud of the several milestones we have achieved in the year '23, '24. Not only have we seen exceptional performance for Q4, we have also sustained strong growth momentum throughout the year in all quarters, despite a lot of actions, which you would have seen in the middleweight segment. During this quarter, we 2,27,925 motorcyles, which is up by 6.2% on Y-o-Y basis. For the financial year, as Siddhartha mentioned, we sold about 912,000 motorcycles, which is compared to last year, which was only about 8,34,700 motorcycles. This is our highest-ever volumes in the country in India. With this, we have surpassed our pre-COVID level and have maintained the robust growth momentum, with about 30% market share in more than 125cc category. And our motorcycle market share is almost about 7.2% on our overall mixes. In the international markets, we recorded a sale of 77,209 units. Despite weak macro backdrops, which you all know, our retail sales in the international markets remain on a steady growth track across the regions in this year FY '24. As a result, we have maintained our market share in the middleweight segment across the market outside India, too. During this year, we forayed into some new countries, like Turkey, which has a strong market relation for motorcycling. On manufacturing, just to add, we have produced 9.2 lakh motorcycle this year, which is, once again, highest production with high-quality [indiscernible]. Our plants are continuing to create new benchmark in efficiency, automation and manufacturing excellence. Our Oragadam plant at Chennai was awarded the future-ready factory by Frost & Sullivan. And we also received the excellence in operations and smart factory of the year in 2023. We achieved our highest-ever revenue for non-motorcycle business, given we are expanding service reach, robust growth in accessories and widening range of apparels and adding more and more SKUs in the accessories business. Throughout the year, we steadily elevated pure motorcycling experiences for our customers, with the introduction of programs such as Assured Buyback, REOWN and tours and rentals, which are already getting traction now. Consumer response to these programs has been very, very encouraging to us, and we will continue to enhance these initiatives. This year, we also introduced 2 connected motorcycle systems, with advanced telematics and navigation capabilities on motorcycles. The tripper dash on our all new Himalayan Sherpa platform of motorcycle, and the WINGMAN, the rider center connecting motorcycles in Super Meteor to start with. Motoverse this year posted the spirit of motorcycling in every sense of the world. Over 3 action packed days of music, motorcycling, art, culture, the 13th edition witnessed the participation of more than 15,000 attendees from across the globe. And during that time, we also unveiled the Shotgun 650 and announced the of Himalayan, which all have hit in the market very well. Under the sustainability initiative on the social mission, which Siddhartha mentioned about what we are doing at Himalayas and at green operation business level, I would like to share with you. We have achieved 0 liquid discharge in all our operations, right? All our plants and our warehouses are all net quarter positive, with an index of almost 3.23 in Oragadam and 2.02 in Vallam. We have been constantly working on improving the renewable energy usage. And during this year, further, we enhanced that, and we have another [indiscernible] of total consumption into the renewable energy. We were looking at constantly on reduction of carbon emissions. This year, we had to get target reduction by [ 30% ] compared to last year, and it has been completely on track. The product end of vehicle study, we wanted to do that to understand the recyclability, recoverability and reusability. And we started off with our Twins platform now we are doing for the rest of the products also. Happy to share with you that the reusability of the parts of our motorcycle are more than 98%. The recoverable is also equally the same. And we are working on completely usability and recoverability parts we used in the motorcycle. With the successful launches last year, we are well on our way to ride ahead on our strategic goals, with several more products, which are lined up. We are geared to continue this growth journey in India and across the globe. In conclusion, we had a very great year and have an even better one planned in the coming year. Now I'll hand it over to Vinod Aggarwal to take you through the VECV presentation. Over to you.

Thank you, Govind, and a very good afternoon to all of you. As Siddhartha mentioned, financial '24 has been a record year for us on all fronts. Let me begin with the financial performance for the quarter as well as for the year. We had -- overall quarter 4 sales were 25,732 units. And of course, for the full year, we had 85,560 units as against last full year of 79,623 units. So with a growth of 7.5% for the full year. If you look at the industry, industry had grown by 4%. So therefore, since we have done better than the industry, we have improved in market shares in all our -- in most of our segments. As far as the revenues are concerned, our revenues rose to INR 6,275 crores in quarter 4. And of course, for the full year, our revenues stand at now at now INR 21,868 crores over last year full year revenue of INR 18,952 crores with a full year growth of 15.4%. As far as EBITDA margin is concerned, we had an EBITDA margin of INR 486 crores for the quarter. And for the full year, we had EBITDA margins of INR 1,715 crores as against last year full EBITDA margins of INR 1,387 crores with the growth of 23.6%. And EBITDA margin for the quarter was 7.85% and 8% for full year as against 7.5% for financial year '23. Profit after tax, while INR 242 crores for quarter 4 and INR 823 crores for financial year '24, which is a growth of 42% from INR 579 crores in the previous year financial year '23. And we achieved highest-ever Q4 sales for Eicher heavy-duty trucks at 6,476 for Eicher brand and 500 plus for the Volvo brand. And for the full year, we have heavy-duty trucks sales of 23,660 as against last year of 20,675 units. So with a growth of 14.4% as against the industry growth of 4% in heavy-duty trucks. So with this 23,660 units, our market share in heavy-duty trucks has gone up to 9.2% for the full year. And of course, if you look at the quarter 4 market share, quarter 4 market share for heavy-duty trucks was close to 10%, so which indicates that we are well on our journey to become a bigger and bigger player in the heavy-duty truck market. As far as the light and medium-duty trucks are concerned, we sold 11,033 units in the quarter achieving again our highest-ever market share of 35.8% in the light and medium-duty trucks for quarter 4. For full year, we sold 38,712 light and medium-duty trucks as against last full year of 37,318 units, with a growth of 3.7%. As against this, the market has dropped by 5.9%. So based on that, our market share in light and medium-duty trucks also, it improved to 34.7%. And of course, in almost 4 months in the full year, we were the market leaders in light and medium-duty trucks, which is, again, a very good development. As far as the bus segment is concerned, we sold 6,090 units in quarter 4. And of course, these were our highest-ever sales in the buses. And for the full year, we have sold 17,620 units of buses as against 15,077 in the previous year, with a growth of 16% plus. And of course, we continue to do very well as far as the parts business is concerned, with the overall sale of INR 574 crores in quarter 4, with a growth of more than 24%. And of course, apart from that, our VE powertrain, which is our euro 6 engine where we export these engines to Volvo Group. That unit is also doing very well. We delivered 15,717 units in quarter 4, which again are the highest ever. And of course, we achieved quite a few awards last year. And of course, we also were ranked #1 in dealer satisfaction survey consistently for 3 years in a row. And we also won customer satisfaction awards for heavy-duty trucks is #1. And in light and medium-duty trucks also #1 in the customer satisfaction survey, which was conducted by GfK, which is, again, a very, very credible achievement. And we were also given a CV maker of the year recognition at 2023 Apollo Tyres CV Awards. And we were also -- we also won 6 other product-related awards, again, acknowledging our efficient range of trucks and buses. And of course, as we all know, over 5 years ago, VECV became the first CV manufacturer to offer connected telematics as a standard. Over these years, we have built on this connected ecosystem to deliver artificial intelligence and machine learning-based remote and predictive diagnostics to customers. They were delivering uptime to them. On the sustainability front, as you are aware, that we have also -- we are one of the strong players in the CNG fuel-based trucks. We are also -- we have also entered LNG fuel-based trucks in both Volvo brand as well as Eicher brand. We are working on H2ICE technology. We are working on hydrogen fuel cells. So therefore, we are working on all these future alternate fuel technologies. And all our existing digital vehicles, they comply with all the strict current BS-VI, OBD2 standards. And then, of course, we are committed to increase the use of renewable energy and energy efficiency at our plants and operations. We have also implemented water saving measures and are aiming to reduce water usage per vehicle reduced by 5% annually. I now hand over back to Siddhartha for any last remarks.

Yes. Thank you very much, Govind, and thank you very much, Vinod. It's been an absolutely fantastic year for EML, for VECV. And as we step into this year, which we're already in, we are really confident that we'll continue to grow. And we have a lot of interesting things planned ahead. Royal Enfield's performance and success last year was particularly special as we achieved all of that in the light of huge, let's say, push of new competition -- new wave of competition. And it's our dedication to the motorcycling and to premium motorcycling. It's our extreme focus. It's our -- of course, we believe our products are a step ahead. And we've always -- even though the product cycle is 4 to 5 years in terms of conceptualizing to being on the road, we've always been a step ahead of competition, even when new competitions come in. We've already anticipated or consumer demand more than competition and been ahead of the curve. And -- but then it's well beyond that. I think for us, as a lot of you know that it's the entire holistic consumer experience. That's what we are obsessed about at Royal Enfield. That's what we think about daily, more than competition, more than investors more than anything else we if consumers and we, ourselves, Govindarajan, myself, we're on the motorcycles, riding, understanding, future bikes, competition bikes, EV bikes we're -- and our whole team. We're absolutely obsessed and we're focused on that consumer experience and understanding them better on -- understanding their pains, understanding their joys, understanding what will motivate them because we do it ourselves. And that's the difference. It's a holistic really, really detailed thoughtful experience that we provide our consumers. And we continue to remain super focused on doing just that. So that's just an update from all 3 of us. Thank you very much for listening. And now we're open for some questions.

[Operator Instructions] So first question is from Gunjan Prithyani.

My first question is on the Royal Enfield side. If you can share a little bit more in terms of what are we seeing on the demand side? April was certainly quite a strong month, where there was an element of seasonality as well. But if you can share how should we think about the demand growth or outflow for fiscal '25? And also, just clubbing Himalayan along with that, that launch happened towards -- the ramp-up had to happen in quarter 4. So now do we have a sense of what's the steady run rate for Himalayan 450cc for the domestic market?

Gunjan, about the overall market, I'm sure you guys are following it more than us and getting the datas in different form. What we can say is the 2-wheeler market is poised for a growth, and especially the middleweight. We anticipate the middleweight growth will be in double digit. As we always say that we should be ahead of the curve, with all the new products which we launched last year and new products, which are going to come in this year, we feel that there is enough headroom for us to grow. In fact, the premiumization as a team is continuing in India. That's a good sign for all of us. The motorcycle industry, I think is slowly coming back to the pre-COVID level. We are seeing that month-on-month, which is slowly gaining momentum. It will actually help us with all our preparedness, which we have done over the period of time. As far as the Himalayan is concerned, we launched. And it has been a super hit for us and happy to share with you, it's beyond the expectation of the numbers, which we are talking about. You know, Gunjan, that we don't give exact numbers. But having said, we are currently clocking as good as 200-plus motorcycles a day. So that's there. But we are also preparing ourselves on the higher numbers because we see there is a good potential for us across the globe. As of now, only in few international markets we've opened. And we are slowly opening to the rest of the market. So we see that motorcycle also will give us a better growth in coming years.

So 200-plus motorcycle a day, and we are not yet seeing that in terms of dispatches. Is that a supply ramp-up, which is more gradual year?

As of now there is also a season in international market. So we have to do that with the interactional markets also. So we have -- currently, what we are doing is, depending upon the FIFO level, we are trying to match to the consumers of domestic market and also to the international markets. But we are working on increasing the supply situation, which you will see in time to come the improvements.

Okay. And just second question on the platform that sort of picture that you put in the presentation. There are a fair bit of white space that's clearly evident across platforms, right? And I know you will not talk about which product, which launch. But in terms of next, if you were to think about next 12, 18 months or 2 years, what are the key white spaces in the respective platforms that you think are priority areas to address across platforms? There is only one bike on 450cc. There's only 1 on the D platform. So a little bit color on how we should think about bridging of these white spaces over the next 2 years?

Quite a long answer to be given, Gunjan, but still I'll try to short slightly. We have currently 3 platforms. We have our super refined J platform. Then we have our 450cc platform, which is the Sherpa platform and the 650cc platform. We also had that 411 platform and in some of the products, we are continuing there. In all these platforms, as we always say, we are a focused company. We don't do too many things. But the platforms are grouped to bring out different motorcycle, which addresses the different set of segment of consumers, which we can give a differentiated experience. That's why on the J platform, you can see we have a Bullet, we have Classic, we have Hunter, we have Meteor. And all of them have their own space and the consumer sets and experiences are very different to the people. Similarly, on that 450cc platform. As of now, we have come out with the Himalayan. And we will come out very soon. You will see a fantastic motorcycle from the same platform. And on the 650cc platform, we have our Continental GT, Interceptor, Shotgun and the Super Meteor 650. All are very different motorcycle and which gives a differentiated experience. So to that extent, all the platform changes and the improvements which we have done. There is -- we have to give some space for that also to grow. 411cc platform we launched [indiscernible] wasn't there. But over the period of time, we created a category like that for all these platforms and the products which we are bringing in, we have to give that space to actually grow because consumers also have to get accepted to that. We know, that these are all outstanding products, which will grow in the market over a period of time. We constantly look at as Siddhartha was mentioning, we ride motorcycles. We are motorcyclists first. When we ride, when we see there is a possibility for us to give you a different kind of a motorcycle in the same platform, we always keep thinking about it, but that's all thought through at the platform development stage itself. We don't do afterthought discussions on all these things. So around the platform, as we presented to you people, we have a lot of new products, which are already lined up, which will start coming one by one.

Next, your question from Kapil Singh.

Kapil, please proceed or we can move to the next maybe.

Next, we have in the queue Jinesh Gandhi.

Can you hear me?

Yes, Jinesh.

Congrats on good set of numbers. Quickly, 2 questions on the RE business. So on the export side, we have started to see some bit of pickup on the wholesale volume side. Are you seeing similar trends on the retail? Are things looking up now vis-a-vis what it was 6 months back?

In the international market, Jinesh?

Yes. Yes.

No. You, all -- the last quarter also was just telling, we don't have the wholesale. Wholesale is only a transaction number for us. We always look at retail. And as the retails were better and last year, as I mentioned, the retail focus is what is there, there is -- happy to share that the retail has been very good in all the markets across the globe, also in Tier 2. And to that extent, you are seeing the wholesale also picking up slowly.

Okay. So we should expect this run rate to improve upon given recovery in the retails?

That's how the equation also works. But all of us have to be keeping only one thing in mind is the international market macro situation, it's a market-by-market situation. It's not across. So every market, depending upon the consumer sentiment, we will actually be looking at. As I always say, for wholesale, we can go on and do more numbers, but we are not that sort of a company. We look at retail, we actually look at it as a full brand rather than a push. So it's for a long term. What is required for the international market for us to be the leader over the period of time? All the key things which have to be in place is what is the focus. The team is actually doing it. We have our own subsidiary, wherever it were required. And we have our own CKD plants. Our teams are on the ground of actually picking up the consumer sentiments. We are looking at integration of the DMS. We are looking at the CRM package integration with the central team. So all those activities are happening constantly at international markets because we know for sure, there is a huge market potential for us and all our products are also fully accepted in the international market very well. So that's the positive feel which we have about international market.

Got it. And second question on RE margins, Royal Enfield margins. So clearly, we have seen a healthy evolution of margins, holding up upwards of 27%. From where we are today, what are the push and pulls, which we are seeing on margins over the next 12 to 18 months? What are the drivers you'd be looking from a margin perspective?

First of all, revenue growth itself is something that we are absolutely focused on. We're looking at absolute increases as far as EBITDA is concerned. We're not necessarily so focused on percentages, as you know. So growth, I think, in revenue will obviously flows in through to us in terms of the bottom line. We are also kind of increasing share and the international market coming back will also obviously have a bit of a flow-through as far as our profitability is concerned. And I think we are also seeing trade growth happening in the non-motorcycle side of the business, which is accretive to us. I think that is something that will also kind of flow-through. So I think commodity, we are kind of keeping our eye out on, at the moment, we're not seeing too much pressure coming in, but that's something that obviously we're watching out for and see how that impacts us.

Got it. And, Vidhya, just one clarification on VECV. We have seen some restatement of margins. And as a result, margins have declined in fourth quarter on Y-o-Y basis. But Q-o-Q basis, margins, again, have declined despite seasonally strong quarter. Any one-offs there?

Yes. Basically, last year in Q4, there were some fiscal incentives, which we had accrued based on the very old, which were pending in Madhya Pradesh [ permit ]. So due to that, there was one-off in last year Q4. So due to that, the margin looked lower than the last year Q4. Other than that, there is no other reason.

But even on Q-o-Q basis, it has declined. So despite 25% growth in volumes.

2Q basis is not a very big thing, but that's fine. That's not a -- it's one of reasons I think.

Kapil, you can try again. Okay. Seems some issue so we can go ahead with Raghu.

So a couple of questions. Firstly, on commercial vehicle side. So on electric, ELCV, ESCV, buses, if you can talk a little bit about the volume potential going ahead. How you see that entry into ESCV to become big for the company? And also that on the e-buses, given the announcements on payment security mechanism, would you become more aggressive in future?

Definitely, the e-vehicles are evolving now. Buses will be the one, I think, which will have good growth this year because government has this program Prime Minister e-sewa bus program, under which they are going to come out with more and more tenders. But of course, we will be very careful, not putting in the bids to pursue the volumes at any cost. So therefore, we will see that what makes sense for us. But of course, as far as the products are concerned, we are all ready with the 9-meter bus product, 12-meter bus product, and we are also going to introduce 13.5-meter intercity bus product. So products-wise, we are ready. But of course, we will be very careful until the government business of state transport undertaking because that business model still is very, very difficult business model where the entire payment is on per kilometer basis for next 12 years. So therefore, we have to see that if we do that business, it is done at the right prices. As far as the trucks are concerned, we were the first one to introduce electric truck in 5.5 tonne category. And last year, we have sold 75 electric trucks. And this year, of course, the traction is good. And we are also going to come out with more models in electric trucks. And the small commercial vehicle, which we had unveiled in Bharat Mobility Expo in February. And that product also we have now given on pilot basis to 10 customers last month, and that will be introduced on a commercial basis from January this year. So again, that's a very high potential. And this, of course, the electric model will be followed up by diesel and CNG in the next 6 months. So therefore, it's a -- electric technology is evolving. We are very much there in all the segments. But of course, we will be very, you can say, careful where we have to get in and where we don't have to get in.

Congrats on the market share gains you've been seeing. If you can talk a little bit about the demand outlook also how you are seeing the demand and how you see the prospects?

As far as the demand for commercial vehicle market is concerned, I think it has got a very good potential for growth. Fundamentally, because our economy is continuing to do well, and of course, we are expecting on the back of around some 6% to 8% growth last year, we are expecting that this year, also the economy should grow by 7% plus. So that is the first fundamental vision of growth. Second is the strong infrastructure program from government of India. And third is the pent-up replacement demand, which continues to be very strong because the new trucks, so new technology trucks, which has a lot of electronics and a lot of telematics and a lot of new features, which enhance the productivity and efficiency of the trucks, it makes a lot of business sense to replace the old fleet. So therefore, you will see more and more fleet looking for replacement. So therefore, the CV demand will also increase because of the replacement of the old trucks. So all 3 fundamental factors point towards that CV industry is going to have a good future. Even though there may be hiccups this month or that month, but overall, on a CAGR basis, we will see -- we are going to see a good growth.

Just a quick question to BGR, sir. Sir, if you can talk about Shotgun 650, what would be the current volume and potential? And is there a case for a 350cc Bobber?

New products, we all talk about it. When that comes near to the new product coming up, we will talk about that. Shotgun is, once again, a product which [indiscernible]. When we launched Super Meteor 650, at that time also we're thinking. It's a stunning motorcycle. It was launched in January. There's a huge response in the international market. It's a product which has just come. We have to nurture it. But what we are doing is we are also working along with all the custom builders and how that entire ecosystem can be integrated so that the product can be taken to the next level. So there's a lot of work which is happening. We see that product has a huge potential. It's a very [ planned ] motorcycle. And it has very different look and feel. Consumers are enjoying it. In fact, I'm at [indiscernible] and yesterday when I met a consumer who bought this, he was in love with this motorcycle and he said, "When I saw it, I thought I should have it immediately." So to that extent, there is a good response. So as I mentioned, it's just coming to the market, and we have to work on it a bit more, but we see there's a huge potential for that product also.