Fiem Industries Limited (FIEMIND) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q4 and FY'21 earnings conference call of Fiem Industries Limited, hosted by Monarch Networth Capital Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on date of this call. Such statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anubhav Rawat from Monarch Networth Capital Limited. Thank you, and over to you, sir.

Thank you, Malika. Good evening, everyone. On behalf of Monarch Networth Capital, I welcome you all to Q4 and FY'21 conference call of Fiem Industry. We will start the call with initial comments about the results and future outlook of the company. And then we will open the floor for question and answers. So without much delay, I'll now hand over the call to Mr. J.K. Jain, CMD of the company. Over to you, sir.

Thank you. Good afternoon to all. I welcome you all to the Q4 and full year FY'21 earnings call of your company. Last year has been a very challenging year for all of us personally and professionally. I would like to begin by wishing you and your families good health. Along with me on this call, I have Mr. Rahul Jain, Director; Mr. Rajesh Sharma, Director; Mr. O.P. Gupta, CFO; Mr. Arvind Chohan, Company Secretary; and other members of finance team. Let me start with the overview of the industry and believe update on our financials. The detailed financial results will be highlighted by our CFO, then we will start the session on questions and answers. During this COVID-19 pandemic, domestic 2-wheeler industries in FY'21 went through a tough time and overall domestic industry declined by 13.2% from 17.4 million units to 15.1 million. Within the 2-wheeler segment, scooter declined by 19.5%, motorcycle by 10.6% and moped by 3.07%. Reflecting the above gain, the production volume of our key customers, we grew Honda by 23.5%, TVS by 5.1%, Yamaha by 14.5%, and Suzuki by 24.9%. We were also significantly hit with the plant shutdown in Q1 FY'21. However, we have been able to recover from Q2 onward, reflected in the strong Q4 numbers, which I'm sure you would have seen in the results. For the full year, FY'21, our sales declined by 11.1%, which was marginally better than the overall trend of our OEM customers. In spite of this environment, we managed to grow our export and also some key customers like Yamaha during the year. Share of the automotive LED was 40% of our total automotive lighting in FY'21, this has remained stable this year due to the pandemic, but we expect this to increase to 60% over the next 2, 3 years. The other key areas of our focus is the EV market. We see a lot of opportunity in this segment. Over the one year, we have worked extensively in this space. As you are aware, government has announced several incentives and new policy framework, which would help EV to grow. We see a lot of potential as our products are key to all the EV [indiscernible]. We have been actively engaged with the leaders in this segment and are developing several products with them. We expect EV to be a significant driver of our growth over the next 2, 3 years. Going forward, I remain cautious in my approach for the current financial year as we watch how the pandemic plays out. However, I do see medium to long term, a very positive outlook for our industries. Now I hand over to our CFO, Mr. Gupta and the team to update the detailed numbers.

Thank you, sir. Good afternoon to everyone. I will present the Q4 numbers, after which, I will cover the full year. The company registered highest quarterly sales of INR 415 crores in Q4 of FY'21, against [indiscernible] INR 319 crores in corresponding quarter of '19, '20, representing an increase of 30% over same period of FY'20. The EBITDA was INR 53.53 crores, translating into an EBITDA margin of 12.85% as against an EBITDA of INR 37.17 crores. PAT of the company for Q4 of FY2021 was INR 25.49 crores as compared to INR 22.98 crores in Q4 of FY'19/'20. The increase in PAT is driven by higher sales in Q4, coupled with cost-cutting measures undertaken by the company. Now I will cover the performance for full financial year 2021. The company has been able to achieve net sales of INR 1,207 crores during the financial year 2021, as against the sale of INR 1,366 crores during the financial year '19, '20. We presented a decline of 11.6% on a yearly basis. The decline in sales is due to lockdown because of COVID-19 pandemic in quarter 1 of FY'21. The company has been able to earn an EBITDA of INR 130.60 crores, being 10.82% during FY2021 as against an EBITDA of INR 155.77 crores, being 11.4% during the FY'19/'20. The marginal fall in EBITDA was due to effect of lowdown because of COVID-19 in quarter 1 of FY'21. PAT of the company for FY2021 was INR 47.12 crores as against to INR 78.92 crores during FY'19/'20. The decline in PAT is because of low due to COVID-19 pandemic and resultant lower sale for the year. Moreover, the PAT of FY'19/'20 included a reversal of deferred tax expense of INR 14.52 crores on account of the company exercising the option of payment of lower income tax as amended provisions. If the effect of lower income tax is excluded from the PAT of FY'19/'20, then the net decline in the PAT year-on-year base will work out to INR 17.28 crores only. During FY2021, the company has made a CapEx investment of INR 18.55 crores. Further, we are net 0 debt company. I am pleased to inform you that the Board has recommended a final dividend of INR 16 per share for FY2021. With this, I end the financial brief, and now the floor is open for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Ashutosh Tiwari from Equirus Securities.

Congratulations on decent set of numbers. Firstly, on Yamaha, I think we have further seen improvement in revenue, probably contribute 15% of sales in Q4 FY'21. So is that more driven by the adoption -- faster adoption of the release by Yamaha? Or this also includes a significant amount coming from export -- deem export from our side?

Yes, of course, here, Rajesh Sharma. Major portion of sales is, of course, because of the LED headlamps, which is being applied for the domestic market as well as for the export to Japan as well as other countries.

Okay. So this can increase further from here -- and Yamaha is -- I mean the major can be lighting only or there's some others as well, this supply to Yamaha?

We supply all the lighting assemblies.

So is it lightning or you have rear view mirrors and all these also supplied to Yamaha?

Of course. These are all lightings. And there are mirrors, but those percentages are very less.

Okay. And as of now, you -- let's say, you had told last time that you are ramping up supplies to more models at Yamaha. So can you provide some update to how many models of global Yamaha we supply thus now? And how you can increase going ahead?

As of now, 5 projects are already in mass production for the export model and 2 products are there in India. Out of the one series model only, which is called MT 15 series, wherein we develop Class C and Class D models of headlamp, which are mainly be considered as a sole distribution of these headlamps worldwide. So any of the new projects which are coming into portfolio of Yamaha, they are implementing the same headlamp module by changing the configuration of lighting source and being applied for the new vehicle development.

Okay. So you're saying that as of now, it's supplying for 5 projects and 2 -- 5 in globally and 2 in India, right? Is that correct?

Right, right. And this is only of the module, which is being exporting as well as for domestic market. Other than that, there are 4 models, which are already in mass production for domestic market.

Okay. And can it increase further -- the number of model can increase further? Or we are already reached its potential?

We are further working on 4 projects as of now, will be produced -- will be introduced during next year and next to next year.

Okay. 4 new projects you are thinking?

Yes.

And this will -- okay. So the revenue contribution for Yamaha can increase further from here?

Sure.

And then secondly, I think even -- I don't read it clearly, what is it -- others which have increased a lot, like the 10% of sales is other in our sales in FY'20? Others has also increased if you look at revenue contribution on different OEMs. So is that driven by which particular OEM is doing better for us?

These all are club of all other OEMs because we have included a few of our tractor market like X-Force, Kubota. We are the exclusive supplier for that. So that is also comes under this others customers only.

Okay. Okay. Okay. And incrementally, I mean, in terms of the new development work that we probably are doing in the toolings and all, how do you see the share of LEDs in scooter and motorcycles separately? Is it that in motorcycles -- so far, we've seen more -- apart of Yamaha, we have seen more trend of these LEDs in the scooters. So are you seeing that in motorcycle segment in terms of your projects that are doing currently, the share gain of LED can increase in motorcycles as well?

Yes, definitely. Because if we talk about Yamaha, Yamaha, there are only 2 models where scooter is being introduced with LED. In other, all segments are of motorcycle only. Similarly, if we talk about Suzuki, Suzuki almost 3 of their models like Gixxer, that is a highly sales volume of domestic as well as for export are having LED headlamps of -- and scooter is only 1 model which is having LED from our suppliers. So all other customers are obviously going to [indiscernible] headlamps with the motorcycle as well as scooter.

Okay. So going ahead, the presentation, like you said, 2, 3 years, LED contribution sales can go towards 60%?

Yes. As Mr. Jain already talk about this, it will be of 60% or more or entering during next 2, 3 years.

And Mr. Jain also talked about, I mean, a good amount of work with this EV 2-wheeler OEMs. So can you name a few of the OEMs with which we are working currently in terms of...

As of now, we are under NDA, and we cannot disclose the name, but you will see very shortly in the next few months. Once they introduce the model, we will definitely -- we can say. But at the moment, we are stopped by NDA.

Okay. I got it. But you mentioned [indiscernible] Okinawa is already supply to.

Yes, it's old. Okinawa is an existing customer.

Okay. Any other OEM, let's say -- you also sublet it for NPL and all or that is not there as of now?

NPL supplied by us, not all components, but because some of the components we are buying from China, but there are a few products which we are supplying from our off the shelf portfolio.

And these EVs will have more of LED than halogen, right?

Of course. All the EVs customers to whom we are working as of now are with LED lamps only.

And lastly question, sir -- sorry?

The main reason with LED, basically in EV LED is the power because if they use the conventional lamp then the power will increase. So their mileage will effect. So it will be only LED only.

Okay. I got it. And what was utilization level of our plants on an average in Q4?

At the moment, we are working on 55%.

Utilization level. You're talking about Q4 or full year?

We are talking about Q4.

So then there won't be any CapEx for, say, next 2, 3 years, major CapEx?

No, no. See, this 65% is the holy year.

Full year. Okay. And Q4, how much it was?

Yes. Q4 was more than 75%.

Okay. So I think from this, these plants will probably go towards around, say, INR 2,000 crores plus kind of revenue?

Yes. We are estimating around between INR 1,700 crores.

Yes. Okay. And lastly, in this rearview mirror, sales, if I look at for the full year, there was -- there's a drop of only 2%. So have you gained more share in this business from some OEMs? Why drop was very low in this segment despite the 2-wheeler dropped this year?

This is because of increase in the other products, lighting products.

No, no. I'm talking rearview mirrors you look at in the PPT.

No. No. Basically, we have not lost the share.

No. No. I'm not talking about losing share. I'm -- actually...

I understood. I understood your point. The rearview mirror is converting from conventional to little bit of high-end model motorcycle. If you see, though, those are all not only stem type, it is all die casting type. So the cost is, of course, be high on that. And volumes are increasing by this way.

The next question is from the line of Anubhav Mukherjee from Prescient Capital.

Hello. Am I audible?

Yes.

Firstly, I want to congratulate the management on the very healthy dividend payout. It's one of the highest in the [indiscernible] industry. And over the years, the dividend payout has been consistently quite good. So really appreciate that. So moving on to the question. Sir, can you -- like, how has been the traction in Piaggio because Piaggio was added as a customer? So how is the traction there? And are we like exporting to their international model houses?

Yes. So if you -- first of all, thank you very much for the results appreciated by you. And as you know, we talk about SRS model, which is being recently introduced by Piaggio India, that is giving LED headlamp with the complete LED headlamp module. With respect to the rare kombi also is LED. And this is not only for the domestic market, we have already started exporting in last 4 months to Europe also.

So beyond that model, is there a possibility to like do you share in other models as well?

Yes. We are further working on 2 models to get business for domestic as well as for export market.

Okay. And how large can the Piaggio opportunity be? Like can it be meaningful like -- yes?

Piaggio volumes aren't much with respect to the other customer. So -- but of course, if we talk about the model mix with respect to the domestic and export, we can have a good strength of business with respect to the customer.

And sir, have you made any inroads into Hero? I think Hero was mentioned like or like hinted that we are trying to bring some -- enter into Hero like -- so how is -- is there any development there?

Yes. We are very closely working as of now with Hero to get some new business because of -- we are entering to a business where it is a reserve train where almost 3 or 4 players are there. But of course, we are #1 player in the auto business, especially for the 2-wheeler. And we hope we will get some business during coming months.

Okay. And sir, finally, will it be possible if you can share that are we working with Ola Electric?

We will -- as of now, we cannot disclose because it is again in the EV sector. So we have already signed some NDAs with all the EVs. We will -- definitely be disclosed that soon with all the OEMs.

Yes, it is for all customers basically.

The next question is from the line of Pritesh Chheda from Lucky Investment Managers.

So I have a couple of questions. So one, on your growth part, what you have delivered for quarter 4 and what you have delivered for FY'21. If you could just help us understand the bridge in terms of your growth vis-à-vis the industry growth and where we gain and what -- so let's say, you said Yamaha is now 15% of the revenue. So we could understand that is Yamaha your gain on as a percentage of the revenue. So if you would give that bridge would be very helpful for us to understand.

Basically, outlook for the current year is depend on the COVID-19 pandemic.

No. Sir, I'm asking for what happened in '19 and what happened in quarter 4 because even last year also, you have outperformed the industry volume. So we just wanted to understand which all the accounts in that all perform?

Overall, in quarter 4, every customer has contributed for the increase. And majorly, Yamaha account has grown exponentially.

Yes, not only Yamaha. I will just give you a little more brief because if you talk about the export market, export, either in Europe or in any of the Asian countries, their market is always going up during the month of July, August and September. And these all months [indiscernible] that they buy 3 months before because the transit time and all. So quarter 4 was the time when we exported much of materials to Yamaha as well as Suzuki also. And same month we started supplying to Harley Davidson also for Europe as well as for U.S. market as well as Thailand market. And some of the export to our Australia. So joined together, all this figure have given us this [indiscernible] to quarter 4.

And so as a percentage of revenue, these two accounts would have gained how much in your revenue mix versus last year?

Can you just...

Yes, Yamaha is now around 13% to 14%.

Versus?

11%.

And how about Suzuki?

8%.

Versus?

Versus 7.75%.

Okay. So it's basically Yamaha. Okay. Sir, on the other observation, Honda had a particularly tough year last year, vis-à-vis others. So how do you see this account in the upcoming couple of years because it had a product cycle challenges earlier and market challenges earlier than others. So if you could help us understand?

Yes, of course. Because of the COVID, new business development have already been postponed for all the customers. And Honda is one of them -- out of them because BS-VI is being introduced pre-COVID only. And those models are not being launched properly in the market and 2x the COVID has disturbed overall sales. So -- but we expect -- we are expecting very good market during coming months. Of course, first quarter is again below during this year also, but we are expecting much more better results during the coming months.

Okay. And just have slightly lower-term question. What should be the CM industry revenue growth target over the industry volume growth or the industry growth? Do you have any internal bench targets where we'll grow x times more or x percentage more than the industry, if you could help us understand that. And from halogen to LED, where 40% moves to 60%, is a percentage that top line growth over the next 3 years or next 2 years, whatever you're comfortable with?

It's basically, if you see our graph, apart from the COVID, we are seeing [indiscernible] 20% plus. So that is what we are always thinking in our thinking like that and things are very scaled. But this pandemic -- COVID pandemic we can't say how long it is going to be and how it is going to behave. But the trend is very, very promising, definitely promising.

And would you be able to retain or would you be able to retain or expand your market share considering the 2-wheeler space itself is going to be...

As we told earlier, we have been working very constantly with the EV industries. And the growth -- further growth will be towards the EV industries, and we are very much at [indiscernible]. And we are very much hopeful that it will be -- we will have a very good market share in future also...

Does the business for bike or business for vehicle also increased when you move from conventional to EV?

Yes. Definitely, as we -- it is almost 1.8 to 2x.

For the same product?

Yes.

Any reason why it is 1.8 to 2x for the same product?

Because of the LED because LED versus conventional, we are talking about.

If it is LED versus LED, is it the same?

No, depends on the model because if it is 100cc, 150cc, it will be a different thing than 200c it will be different. So all capacity depends on the customer choice. Basically, it depends on the OEMs basically because the more or higher vehicle will be there, then the -- it will be better. And you said it will be better.

Okay. And we are now operating our assets at about 75% utilization. You mentioned the kind of utilization each utilization possible. So these margins which are at accounting for [indiscernible] Q4. So what -- my question was, when we look at the margin of Q4 and exit Q3 at about 12%, or do you think incremental we are sustainable post the expansion or you have an observation otherwise?

No. Basically, as I told earlier, the many models, many projects are almost ready. But -- due to the COVID, the introduction has not taken place. So in future, when we're making products and it is about to launch by the customer. But due to the COVID, this is not being interviewed. So we hope that the trade is very good.

And lastly, what is the progress on your JV? The Aisan JV?

Yes. See, Aisan JV, last year, they did INR 100 crores turnover.

And profit?

Profit -- no, this year, full year loss is INR 1.5 crores. But in last quarter, the reported profit.

And what is the expected profit?

This year, it's around INR 165 crores.

Okay. But we had some INR 400 crores odd target in Aisan for -- where are we on that particular journey?

No. This is -- the peak revenue we estimated around INR 250 crores with the current investment. And the next phase will come then only this INR 400 crore or INR 500 crore whatever...

And what will be the margin on that INR 265 crores?

This is very company, so this is first year only. We are already informed there.

Due to the COVID, it could not perform.

No problem. And lastly, sir, what is the capital expenditure plan for '22 and '23?

We are planning INR 35 crores. But the customer demand, we are ready to do more.

This INR 35 crores also take care of the growth CapEx and what capacity addition?

No, no. Basically, it is [indiscernible] crores towards maintenance and INR 15 crores for the new line for the new project. It is not for [indiscernible] as we are not -- to that we are not there. We are at the performance that's almost 55%, except Q4.

So this INR 15 crores of new line what effect?

For new projects, we have to put the new assembly lines and other things.

Yes. So you mentioned was INR 35 crores as INR 15 crores of maintenance and INR 15 crores of new lines. So that INR 15 crores is basically growth CapEx. So that comes at what assets turn?

Our asset turn, basic total is 1 into 2 approximately.

So this INR 15 crores of new line will add about INR 30 crore of business, that's how it is?

INR 30 crores.

Okay. Okay. And incrementally, would you maintain the payouts that you have reported in the current [indiscernible] or what do we have...

It all depends on the situation. We try to maintain 20% to 25% of the cash profits.

[Operator Instructions] The next question is from the line of Priyadarshi Srivastava from Monarch Networth Capital.

Congratulations on good set of numbers in this challenging time, sir. So I just wanted to know what component of your raw material you are still importing from China and Korea. And what we are doing to localize that? And how is really possible to localize that?

These are all electronic components and localization of course, can be only possible to do the PCB assembly, which we are already doing. But semiconductors are all imported from other countries only.

But how much is the current component as percentage components coming from China and Korea?

It is around 10% of total import.

Okay. So this is, as of now, it will remain somewhere around that level?

Yes, yes, yes.

Sir, I also wanted to understand, as you have been very positive on the outlook and going ahead. So could we expect that margins to go higher than 15% or above in the coming quarters?

No. Basically, we don't -- during this COVID, what is going to be the [indiscernible]. Definitely, the more sales are there, the margins will be better.

[Operator Instructions] The next question is from the line of Ankita Gupta an individual investor.

So first of all, gathers I just wanted to know what's your growth guidance for the year 2022 and 2023? And where will the incremental growth come from?

As already Chairman informed, it all depends on EVs, we are working closely. So net growth driver will be the EVs, but it all depends on how the -- of course, we have concerned to test. So it is -- we are working with all the OEM customers to increase the share.

I think from our side, what we do is to keep a diversified product line with a number of customers, as you've seen sometimes in the past, one customer has come while the other is impacted. So our strategy has always been diversification of products and customers. So that's all we could do. But other than that, we have to see how pandemic plays out over the next quarter. But overall, I think medium-term outlook we can give, which is positive.

One more question, sir. The dividend payout has been treated. Can we expect this to continue over the next year?

Yes, it all depends. It is what we are saying that we will try to maintain 20% to 25% of the cash profits.

And just one last question. One of your peer mentioned that NTORQ is with them. Can you throw some light on which models we have lost and gained in -- for the year 2021?

Can you repeat this?

Yes, I'm talking about.

Yes. See, this NTORQ, we are supplying all components. Our tail land is 60%. And in winker, we are 100% -- current winker. Air, we set number plate, also, we are supplying it is -- our share is 60%. The reflection factor round were and rectangle, we have 60%. Mirror, we are 70%. So we are supplying old products in NTORQ reduced, this is around 10%.

[Operator Instructions] The next question is from the line of Sharma an individual investor.

Just wanted to take your thoughts on the headwinds on account of chip shortage across the supply chain. So both from your sourcing perspective and also, obviously, from an OEM perspective. What are you seeing out there?

See it is, of course, worldwide, there is a shortage, but how to manage is the most important because we are taking the forecast from our customers for not only one year, even though we have requested asking them for 2 years also. And we are placing our forecast and orders to our suppliers accordingly. And we are keeping almost 9 months orders -- confirmed orders to our supplier. And our inventory is being increased by 1 month or 2 months or some 3 months also. So somehow we are managing as of now very well. And we have, as such, not fails any shortage of semiconductors.

And your discussion with parts procurement guys at OEMs, what are they telling you? Do they see this bottleneck kind of moderating going into '22? Or what they are seeing?

This is how we have to -- everybody is aware of the shortage. So this is how we have to maintain our inventory level and keep the sourcing very strong because this phenomenon shortage of semiconductor is known to everybody.

Apart from this, like there are suppliers. Like we know there are 3 or 4 companies are having big sorties worldwide. But there are options available. Whenever we are coming for the new projects, we will be going through our new product launch range, wherein the shortage will not be phased during. So which, by say, we are managing our show very well.

Okay. And quickly, if I can slip one through. Going into pandemic, the Japanese big 3, I would say, most of the last 5 years or even a decade, the whole trend of centralized procurement was very, very visible. Then comes the pandemic, of course, and all of a sudden, we've got one more angle steal work, which is how to minimize focus in China. We can argue all day whether it makes sense or not. But so your -- when you look at the benefits that you've had in terms of incremental performance in the likes of Yamaha, is it more coming to you because of accelerated central procurement by Yamaha or you think at least part of it could be attributed to this China plus 1 strategy?

No. It is -- there is no impact of China. It is only the product. It is totally be dependent on the QCDDM of the supplier, right? And we started one product with Yamaha Japan, and that was well accepted, and we perform our quality level, cost level, management level to give them confidence. And based on that, only they started giving this business worldwide to us.

Okay. Anecdotally, are you having more discussions with the procurement guys in Japan, when you're doing the local counterpart here in India versus what you are seeing 3, 4 years ago or it's largely the same?

It is totally a mix because the R&D is maybe controlled from India as well as from Japan. But of course, purchasing is from domestic only because we are exporting through Yamaha. So all discussions with Yamaha India.

Okay. Got it. And again, just a very quick follow-up on that. Given discussions within India, are you still discussing within the same structure? Or are you seeing new strategic business units come up that are more focused on centralized procurement and your discussions are happening with them as well?

This is ongoing. Every customer is now centralizing. And of course, they are derisking and they are -- basically depend on the Indian market to have more and more exports from India.

[Operator Instructions] The next question is from the line of from Ashish [indiscernible], Lucky Investment Managers.

Sir, on the product launches side, how many products are launched in FY'21?

We have launched -- if you'll talk about the customer side, it is being 4 complete model is being launched by customers. Well as two for export also. So there are 6 product overall model season launch.

Four domestic and 2 exports. And what is the visibility on launches in FY'22?

Of course, it is ongoing. We will be thinking plus what we did in last year.

Okay. Sir, on a broader guidance as you have indicated like you could launch 50-odd products in the next 4 to 5 years, is that realistic number? And what kind of revenue can we sort of estimate from the broadly is already.

We had already disclosed, like we are expecting another INR 250 crores of business that to be coming out with the 30-plus projects, which are under the right now with the different customers.

Okay. And what could we expect to be the sales sort of mix for domestic versus exports in these is INR 250 crores kind of a number reallocated?

It is totally be dependent on the customers because every customer is thinking to have an increase of 20% on it year-on-year, but totally depend on the model mix, which is being accepted by the customer. So we hope one product will be, if not rent purity, another product will be. So overall volumes will be, of course, considered by customer also as well as from our side.

And moreover, you see when they launch the vehicle, then only we come to weather retails or they are going for export or it is for local. So initially, they don't disclose for it the same.

At a company level, how different are our margins between export side in the business? What are the margins for exposure business?

Margins are same because customer is same, they will not give a of money for export.

Okay. And what was the replacement in FY'21?

Can you repeat your question, please?

Yes, paste market sales will be have?

INR 79 crores.

And this number was how much that last year, FY'20?

Replacement -- it is flat, been flat at INR 79 crores last year as well as this year.

The next question is from the line of Priyadarshi Srivastava from Monarch Networth Capital.

Sir, just wanted to have an update on your entry on the 4-wheeler segment, sir?

Typically, as we told earlier, we are a purely 2-wheeler company. And we have some of the models we are doing for commercial vehicles and well as for tractors. But for coming into the 4 wheelers, we are trying we are trying, and we're hopeful that another 0 to 4 years' time, we should be able to start enter into the 4-wheeler segment, especially in the car segment.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you.

I believe that we have been able to reply all your queries antically, I would like to thank everyone for sparring your value over time and participating in the phone call. Please stay safe and healthy. Thank you very much thank you.

On behalf of Fiem Industries and Monarch Networth Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.