Fiem Industries Limited (FIEMIND) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Fiem Industries Limited Q3 FY '24 Earnings Conference Call hosted by Monarch Networth Capital. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk 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. Sahil Sanghvi from Monarch Networth Capital. Thank you, and over to you, sir.

Yes. Thank you, Manisha. Good evening, everyone. On behalf of Monarch Networth Capital, I welcome you all to the Q3 FY '24 Conference Call of Fiem Industries Limited. We will start the call with a initial comment about the results and the future outlook of the company, and then we'll open the floor for question and answers. So without much delay, now I hand over the call to Mr. J. K. Jain, Chairman and Managing Director of the company. Over to you, Jain sir.

Thank you. Good afternoon to everyone, and welcome to the Q3 FY '24 Earnings Call of the Fiem Industries. Joining me today on this call are Rahul Jain, Joint Managing Director; Rajesh Sharma, Joint Managing Director; Vineet Sahni, CEO and Director; Arvind Chauhan, Company Secretary, O. P. Gupta, CFO; and other members of the finance team. The investor presentations and the results have been published on both the company website and the stock exchange. I trust that all of you must have reviewed the same. The Indian economy continues to maintain a strong growth trajectory as per the Reserve Bank of India. The real GDP for FY '24 is expected to increase by 7.3% on year-on-year basis. This growth rate surpasses previous forecast by the International Monetary Fund, IMF, and the World Bank, which were set around 7% and 6.3%, respectively. Despite global challenges, Indian economy has been able to grow at a strong pace, supported by the domestic demand, capital investment and pickup in the private sector investment. Fiem Industries continues to deliver solid performance and has posted a 10.3% increase in the net sales to INR 483 crores in Q3 FY '24. I'm pleased to report a strong 26% jump in PAT on a year-on-year basis to INR 40 crores. For the Q3 of the current financial year, 2-wheeler growth industry has registered a robust growth with a production volume of 5.5 million units. We are seeing revival in the rural demand and consumer spending and expect the strong demand to continue in Q4 of the current year. On the electric vehicle front, the government has recently announced a significant boost to the fund allotted to the FAME-II subsidy, an additional INR 1,500 crores outlay has been given, which should help the EV industries. During the quarter, EV volume increased to 2.4 lakhs unit as compared to 1.8 lakhs in the previous quarter. This is a 34% increase as compared to the quarter 2. We are strongly positioned in the EV market and continue to outpace market trends. I'm delighted to announce that your company has made a breakthrough in the 4-wheeler passenger car segment. It has been selected a supplier for the full LED headlamp for a high-end European car. The company has received the purchase order along with the advances. Further, we have already commenced designs and development of the same. We have also made significant progress with passenger car OEMs in India, some of them in the final stages. This is the first big step towards our journey in the passenger car segment. Further, as you are aware that our Board has -- Board of Directors have refunded a bonus share in the ratio of 1:1 to reward our esteemed shareholders. Your company is always committed to announce the shareholders' value. I now hand over to Mr. O. P. Gupta and the finance team to update on operational performances.

Thank you, sir. Good afternoon to everyone. I'm presenting numbers for third quarter ended December '23. The company has registered a sales INR 483.11 crores in Q3 FY '24 in comparison to INR 437.9 crores in same quarter last year, which is a growth of 10.32%. The EBITDA for Q3 FY '24 is INR 64.49 crores, translating into margin of 13.35% as compared to an EBITDA of INR 59.63 crores that is 13.62% in Q3 of previous financial year. PAT increased by 25.86% to INR 40.3 crores as compared to INR 32.02 crores in corresponding quarter of FY '23. During the quarter, the company has made a CapEx of INR 20.61 crores. CapEx for 9-month period ended December '23 is INR 71.76 crores. 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 Aashin Modi from Equirus Securities.

Congratulations, sir, for this new breakthrough in the 4-wheeler segment that we have got. So sir, I would like you to talk more about this business and what was the technology spend, which was required. And what sort of margins do we expect in this business? And also, I mean, how -- what sort of CapEx into capacity and technology do we expect in the 4-wheeler business going ahead?

Yes. Thank you. I'm Vineet Sahni, this side, and thank you for your question. See, this is a full LED headlamp, which involves the latest technology. And as we had shared in the past, we have started this journey by creating the infrastructure for 4-wheeler and we opened our Pune design office also. So we had hired the necessary resources. So this development is being done at Fiem Industries by our own team and we are working out the numbers, but currently we'll be using our existing capacities and no further CapEx is required for this particular business.

Sure, sir. And given the fact that it's an export order, it will be quite incremental on the margin front. Any guidance with anything over there?

Not at this moment because the product is at the design and development stage. So we will be updating appropriately in future.

And sir, any time lines on when this would start picking up?

So this will pick up the -- in the quarter 4 and beyond.

Starting quarter 4...

Next year. Yes, it will go from quarter 4 of next financial year and beyond because the development lead time for such product is high.

Sure. And sir, any thoughts on any sort of technology licensing or any sort of JV we look to do going forward in this space? Or do we continue to expect it to do all the things in-house only?

So we will do all the things in-house. And wherever external supports are required we have outsource agencies who would help us. But the responsibility is with Fiem Industries, and we will do the development ourselves.

Sure, sir. And sir, my next question is regarding the customer, 2-wheeler customer and sales. So we've seen a pickup on quarter-on-quarter in Yamaha versus Yamaha production numbers. So any new business that has picked up in this Yamaha during the quarter?

Rajesh will answer this question, please?

Yes, there is additional, 1 model which is being picked, which is ZXR model. That model is being converted into Class B to Class D, wherein the product is being now started for domestic as well as export market both. So that is only 1 model which is being launched during this quarter.

Can you do one other question, sir. So Yamaha, we've seen good ramp-up last year, and then it was little flattish or a bit down this year. So could you give us more clarity on how do we see Yamaha business going forward, with what sort of model launch pipeline? And what sort of revenue growth do you we see with Yamaha going forward?

Yes. We have been awarded 4 businesses business for Yamaha and we are looking for a sales figure with the volume which is being [ produced in India ] as well as export market.

Any quantum on what sort of growth delta -- how many models have been picked up and what sort of Fiem -- new model launches are expected over next year?

Next year will be -- 2 models will be launched during next year. This is a complete [Technical Difficulty].

Pardon. I think your voice is breaking.

Yes. Can you hear my voice?

Yes. Now, I can.

I think, Rajesh, your voice is breaking. But let me answer. I think specific data point, we cannot disclose. But directionally, what Rajesh --Mr. Rajesh Sharma mentioned, there are several projects in the pipeline and the business pipeline with Yamaha looks robust, but specific volume number we won't be able to give you.

Sure, sir. Sure. And sir, last question is regarding the order book. So if you see last 1 year, our outperformance with respect to 2-wheeler industry has been a bit low. So what percentage of our existing order book is currently from LED and what sort of penetration growth could we see in the next 1 or 2 years, given the fact that they are [indiscernible] penetration numbers.

Yes. So on the new orders our -- for the current quarter, our LED share is 51%. This has increased from 46%, 47% that was there sequentially in the previous quarter. The new order book that is there, most of the projects are on the LED side. So we expect this number to bump up significantly as we move forward. We had always guided towards 60%, but we think that should move more towards 65%, 70%.

The next question is from the line of Dishant Jain from Quasar Capital Partners. The participant got disconnected. The next question is from the line of Jatin Chawla an individual investor.

Sir, my first question is, when I look at Fiem's revenue growth over the last several years, 8, 10 years there has always been a reasonable outperformance over the underlying 2-wheeler industry. Now when I look at the last quarter, the 2-wheeler industry grew 19% and the Fiem has grown 10%. And even for the 9-month period, there is not much outperformance this year that Fiem has over the underlying 2-wheeler industry. So what is causing this? And when is this kind of likely to change?

Yes. So couple of points there. I think if you look at, first the H1, the 2-wheeler industry volumes have been pretty flat in H1. Now if you look at the current quarter, you're absolutely right. The industry has grown 19%, but that is in volume terms. What we are reporting is more our value terms. And hence, a disconnect. I think structurally, we continue to, in fact, maintain our market share, if anything, we have sort of got several new orders from our existing customers. So there is no loss of market share. What has happened is that there have been a couple of models. So for example, with Honda, there has been a model, which was launched for 100cc Honda Rise -- Shine.

Shine. Shine 3.

Shine 3. Now that model has done good volumes, and we are not there -- present in that. It is a low end -- low-cost entry model for Honda. So I think some of these -- because of these numbers, sometimes you get the impression that there is distortion of figures. But otherwise, we continue to have the market share. And over the next several quarters, you will see that our product mix comes into play, and we will continue to outperform.

Got it. Got it. And I think to the previous question, you answered that you expect the LED share to rise eventually to 65% to 70%. That is as a percentage on the revenue side or on the volume side, total volumes you expect that kind of share.

Volume side.

Revenue side.

Revenue. Revenue. This on revenue. We reported on our revenue.

Right. So when you say new order share, revenue share is 51%. That is not too different from what your current revenue share is, right? Within lighting, if I look at your revenue share, even today, LED ratio is kind of 51%, 52%.

So as a company, we are at 51%. Of all automotive lighting that we are doing, 51% is LED. This share at the company level will gradually shift towards 65% to 70% driven by the new pipeline that we have.

Okay. But in the last quarter order book that you were saying, it is still at 51% only, right?

So we are talking order book and LED share as a separate item. We are saying LED share for the company, today, stands at 51% was 47% last quarter. This will keep moving up towards 65% to 70%. Now the driver of that is the new order book that we have. And that order book predominantly is mostly LED and which is why structurally, we are moving for higher LED share.

Got it. Got it. And on the EV 2-wheeler side, post kind of government being tighter on the FAME subsidies. We have seen some of the smaller EV 2-wheeler players are struggling with the volumes. So how are you kind of placed with some of the larger EV 2-wheeler players? And how do you see your EV share panning out over the next 2, 3 years?

We currently work with more than 35 EV players, which are either small, medium, big, the largest of them, the middle and even the lowest end. So we are pretty much hedged in terms of who is able to gain market share are. Obviously, the top player today is the likes of the Ola, the TVS, we work with all of them, and our share continues to grow.

The next question is from the line of Dishant Jain from Quasar Capital Partners.

Yes. Am I audible enough?

Yes, sir.

Yes. Sir, can you help me with the volume growth for Q3 or 9 months?

See, what we shared our -- this is -- well, we don't give the numbers in the volume, and you already have the growth in the revenue terms -- the value terms.

Okay. And sir, just wanted to get an update on the Sonepat power plant. Like are we facing any capacity constraints due to that power plant, which is affecting our volumes right now? Sir, wanted to check on that plant.

No. Actually, if you see what we submitted already the information we keep updated. The production was resumed within 3 days. And whatever we are doing is -- it will be quite fast the restoration of all the facilities. As far as the capacity constraint is concerned, this is not there.

Okay. And sir, any update on the insurance claim which are yet to be received, any update on that?

This is under process.

The next question is from the line of Viraj Kacharia from SiMPL.

Just couple of questions. Now if you look at the sales breakup which we shared in the presentation, the reason why the sales performance has been relatively weaker compared to the 2-wheeler growth is, if you see the other products that hasn't declined. And even the plastic product segment, has seen a flat growth. So the lighting business continues to see a very healthy performance. So if you can just give some perspective what is causing a muted or a degrowth in ex of lighting product segments? And if one has to understand the drivers of growth in these 2 segments in coming years, what would that be?

So I think you are referring the plastic parts and the rearview mirror parts, if I correctly understood.

Plastic and others.

That's okay. So you have to see that our main product line is always the lighting. And other the rearview mirror. So whatever is the requirement of the customer, what we are doing, the plastic parts and others is always remain as per the customer requirement. But the main -- why this percentage is showing less growth because, the growth has happened more into the lighting. So this is the only reason.

No. Sir, what I'm asking is why the product -- plastic product segment is -- what is causing a flat growth in plastic product segment? And similarly, if I look at others, right, we've been trying to introduce new products for the last -- many years also. In other products also, what is causing the degrowth because that is the only reason the overall sales performance has been relatively -- on a relative basis lower than what the end market has grown.

See some of the growth that you are talking in plastic is also softening of the raw material costs. Therefore, it is not reflecting as a revenue growth. While we understand we need to focus on these products more, which is coming in our strategy, we will, in future, focus more. Our current focus is more on our prime product, which is lighting.

Okay. Second question, sir, was if you can, this is for Mr. Sahni. So first of all, congratulations to you and the team and to Mr. Jain as well on this milestone of breakthrough in PV. Just a couple of questions here, one is what will be the size of order indicatively. And second is, if one has to understand the top 5 KPIs for you, are the major milestones, what would that be? And where are we right now in that journey?

So see, at this moment, we are not able to disclose the right numbers and details. So the important point today was to make an entry into 4-wheeler and that too of the top end product, which is a full LED headlamp. What it matters -- now what it does to us is, we create a right infrastructure to develop such complicated products for OEMs not only for Europe, but also for Indian market. That makes us future ready as Fiem Industries into 4-wheeler segment. And with this, we are now armed to approach Indian OEMs as well, and this is in final stages as intimated by Chairman. And in future, we do see a good growth in this segment. However, I must tell you that the lead time for development of such product is high in 4-wheeler. So therefore, we are not talking about any numbers at this moment.

Okay. And the question on -- so in terms of major milestones for you, say, either way before you start putting in any major CapEx or -- and also in terms of the breakthrough, say in Europe, what do you understand globally the market is very concentrated between the top 3, 4 players, they would have more than 70%, 75% share. So for us who is kind of venturing into 4-wheeler space for the first time, what have enabled us to gain share, especially in the export market in Europe.

See, our strategy is to move step-by-step and in a strong manner. We don't want to commit errors. So we don't want to jump and get into very big OEMs and order. We need to first create right infrastructure to support our customers and move step by step. So as you talked of KPI, as I told you, the next step is to make entry into some of the OEMs in India. And we are actually at very close to doing that. And then start in a small manner. And then gradually once we prove ourselves, I'm sure our customers will respect us by giving us bigger orders.

Okay. Just 2 more questions, if I may. One is on the employee cost. If you see there's been a healthy jump in last 2, 3 quarters, and put on a year-on-year basis. So any one-off in this or what is causing this? And second is on the Gogoro tie-up that you have. Any update you can give in terms of the scale of operation and how do we see it?

So this, first is about this employee cost. If you see that it is a result of 2 things. One is that our 4-wheeler team has increased, and we are -- resources are being prepared for design and development. That is one factor. One is the small impact that in the past, there is a shutdown also for some days. So that also impacted because production is less. The next question was about the Gogoro, right?

Yes.

So I think commercial production is already there.

Sorry, sir.

Rajesh, can.

Yes. Yes. So about Gogoro. Like Gogoro have launched first model, that model is mainly being launched for the B2B. Now the coming year we are planning to have a B2C, the volume we can foresee during next year. So as of now, they have not yet started the mass production. They produce a very small quantity and are looking for the good business from B2B segment only as of now.

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

Am I audible?

Yes, sir.

Sir, if I look at the revenue from other OEMs, and I suppose the electric 2-wheeler OEMs would be in this category. That saw a 7% year-on-year degrowth, while like if you look at the numbers for Ola this quarter, they have seen a very healthy growth. So what is causing this degrowth in the revenue from others? Is it like from the other OEMs or how is it?

Okay. So this -- your observation is correct. This other OEMs are all other than those 4, which we report separately. And as far as the percentage is concerned, what is down or up, it is because this is so many customers are there, every big and -- except this 4, every small customer or even the other OEMs are in there. So there is always a change in the business. So this is happening. Otherwise, there is no big reason of any difference.

So just to support this, I think we can confirm there is no loss of business share we supply as per the demand and the production of the OEMs. So if OEM production is less, then naturally the revenue will be less. But it is not at the cost of losing any business to competition.

Yes, sir. So apart from Ola, would you be able to share like which are the like other key EV -- top EV 2-wheeler OEMs for you?

Ola is...

Ola is top actually, and no, other. So TVS is there.

Ola, Bounce, TVS, [indiscernible] Energy...

I will update -- Ola is #1, brand TVS, Simple Energy, Ultraviolette, Ampere, Okinawa, Revolt, these are the major customers to whom we are working as of now.

Get that. And the TVS volumes would be categorized as for TVS, I suppose, not in the others category for the electric 2-wheeler?

Yes, yes, yes. Within TVS.

Okay. And Hero MotoCorp, like, apart from the Harley-Davidson model we have launched a couple of other models, like, I think there's a Zoom scooter, which is coming with LED headlights. And Karizma, also they are launching -- launched or launching a model. So are we supplying to any of these new models?

No, these 2 models whatever you named are not of our portfolio. We are -- the new launch will be during next month, which is having our Fiem products within this. And further on, during the next year, we will be expecting 2 new models, wherein, the complete presence of Fiem is there.

The next question is from the line of Varun Arora from B&K Securities.

Sir, can you repeat your employee cost your situation? I didn't get your point.

So the question was about some increase in the employee cost during the quarter so what we expect is.

Yes, sir. Yes, sir. Please.

So the reason is, one is the new team joining in the 4-wheeler. And other is, there is small impact of the shutdown also in the last second half happened for some days.

Okay, sir. Okay, sir. Sir, what is your outlook for next quarter as well as for FY '25? What sort of growth you are seeing now, if you can enlighten us.

I think overall, the 2-wheeler industry, as I think H2, we've always maintained is looking better, and we continue to maintain that quarter 4 looks optimistic. And on this quarter 4, as we look ahead for the next year, FY '25, we see all roadblocks being removed, so to speak, from as far as the growth is concerned. And I think the 2-wheeler industry will grow well and we should grow even better.

Sir, by the way, on LED share, so you said 65% to 70% you'll achieve. So by what time line you're looking at this number since you are at now 51%. So by what time you will be there, sir.

Yes. So between 2 to 3 years is what this outlook is for.

Okay. Okay, sir. And sir, on Hero coming back to the previous participant's question, sir, you said by next quarter, Hero will launch a couple of products like this, you said, right. This is just for clarification, I need, sir?

Next quarter will be 1 model wherein, next year will be a couple of models.

Couple of models. Sir, and are you also there in the recently launched Xtreme 125R or Mavrick 440. So are you guys there?

No, we are not into that.

The next question is from the line of Sahil Sanghvi from Monarch Networth Capital.

Am I audible?

Yes, sir.

Yes. First of all, congratulations to Jain sir, and Vineet sir, for the breakthrough in 4-wheeler space. My question is, what was the contribution from the EV 2-wheeler in revenue in 3Q?

So this EV is 5.6%.

Okay. Okay. And can you just guide us with -- I think there were a couple of new model launches that were expected to come in Q4 this year. I understand Hero, there is one and Yamaha there is, I think 2, 3. Correct me if I'm wrong, any other launches expected in Q4?

That is -- Piaggio will also launch in -- during Q4. Piaggio's new model is coming during Q4.

That's all, right?

Yes. That's it.

The next question is from the line of Jatin Chawla from RTL Investments.

Just clarification, this orders on the 4-wheeler side that you said European customer. Is it an export order or you are supplying domestically to a European OEM?

It's an export order.

Okay. You'll be exporting. Normally, we see LED headlamps is not a -- or headlamps as far is not a product which kind of travels very easily.

Yes. Yes, it does, but we offer a value proposition to them and not in cost but in the times -- the speed of development. And therefore, we could get this order. So then in overall scheme of things, we were selected for this source.

Got it. Got it. Second question is on TVS. So Honda you explained, right, that there was a particular model which is doing well, and hence, maybe compared to overall Honda volumes, you are not doing that well. Even on TVS, when I look at the last 5-year CAGR also, your revenue figure is 5%. Now TVS volume CAGR itself is 5% and given the LED penetration, their overall revenue CAGR would have been much higher. So it seems we have lost some share of business within TVS also at an overall level. What is kind of causing that?

No, no. We haven't lost any share. In fact, we have gained share. So I don't know what figures you are talking about. TVS numbers, even if you look at in the current quarter, as our sales have increased 27%. So I don't know what figures you're quoting, but we continue to maintain our market share.

Okay, I was looking at slightly longer-term numbers, FY '19 to FY '24. And it seems there is almost only like a 5% kind of CAGR in revenues over that period.

I think your probably value-volume is getting mixed. I think if we take like-to-like, we are very confident, we would have not lost anything at all. But we can come back with a detailed data points for you.

Sure, sure. That will be useful. Last question. So we see a lot of 2-wheeler auto ancillary companies, come given that there is a big kind of onetime shift happening in the industry where industry is moving from ICE to EV are entering new components. Any plans on the FAME side?

Rajesh?

Yes. We had already announced during our last to last quarter because with Gogoro we have a tie-up to make a hub motor and motor controller. And coming forward, we will be in ECU also. So this model -- this production will start during first quarter of next year. We are just now installing the machineries and we will be ready to explore the market with these 2 products as of now, motor controller and hub motor during next year.

Okay. And this is for Gogoro only right now, right? Or any other OEMs also we have?

Yes, this will be initially with Gogoro. And further on, we will explore the new customers also.

The next question is from the line of Viraj Kacharia from SiMPL.

On Hero, so what we understand, we are looking at upgrading the existing major brands they have in terms of the aesthetic part and the current supplier seems to have challenges when it comes to LED capabilities. So are there any discussions around order wins for the existing major brands they have? Or the pipeline you talked about is largely for new module portfolio?

Yes. As of now, we are working for the new model. As and when we will get the opportunity for the existing models, wherein, any problem is faced by customer, we are ready for accepting this because we have a capacity and capability that it will be done.

Okay. Second question is on the [ PV ] announcement. So just trying to understand which OE would this will be in other supply? The reason, again, I'm trying to ask you is what you said in terms of the entry strategy that we're not looking to compete directly with the MNCs head on. And if you look at the market structure, there also, you have most of the likes of [ VW, VMD ] and all. So they are kind of supplying across the board, right, from mass market to all. So just trying to understand what segment and -- which we have indicated initially.

So we are catering to a niche segment to start with, but with high technology product. And at this moment, we are unable to disclose all deals. But that is all part of our strategy. But like you are aware, company has to prepare very well for addressing this kind of a market, which demands high quality and high technology. So this is part of our strategy, and we are moving after that.

Sir when you say niche segment, is it within the passenger vehicle segment or it's a different application segment, altogether? And is it like a...

It is a passenger vehicle. It is a passenger car.

And is it most of fresh order or it's -- we are more of a second source supplier to them?

It's a fresh and it's a new development. We are doing complete design and development.

Okay. Just last question. So I understand...

It is not built-to-print.

Understood. So I understand there is the initial order we have and you're also talking to other OEMs in India. But in terms of, say, one has to look into, say, the milestone for investment in a facility, what would you be looking at in terms of the milestone before putting or committing to a large investment?

See, normally, the milestone for any new plant is one order, which justifies our CapEx. So we are very prudent in deciding on CapEx and a new plant. So for example, any order, which is for, let's say, India, 50,000 to 100,000 vehicles set is the right quantity to set up a new plant. So this is our journey and we will go step by step. And at appropriate time, we will inform about setting up new plant when we are ready for such big orders.

Okay. So I understand this may be more of a chicken and egg kind of a situation. But in your interactions, say, with the OEs, especially in India, wouldn't this be also be one of the major barriers in terms of getting the business because they may want a dedicated setup when it comes to 4-wheeler. And right now, we don't have any such infrastructure in place. So in terms of our approach also, would we be open to setting up this CapEx, even before we get any order? Or -- I mean, how are we kind of approaching this whole...

It is not prudent to set up a CapEx or a new plant without the order because lighting is a highly capital intensive unit. However, I want to tell you, we have entire facilities available with us to convince our customers. Our existing plants will get approved, and they are in the final stages of approval because customer sees our management and the experience in building up the product, which we have. So we will invest very judiciously, and we'll be very prudent in our capital investment as it is very important to do it at appropriate time.

Okay. Because -- sir, just one more. In terms of investment also in P&L, right, you said that a lot of resources, we have added, a lot of investment in tech capabilities built up, we have done even before we got the order. So in terms of investment, we have kind of front-loaded a lot of that in the P&L already. One has to understand, say, the annual investment in P&L, we have been doing. What would that be roughly?

It is just the manpower, technology cost that we are talking. We have not ordered any machines like software and the skill that we have...

I'm just talking on that perspective as well. Just indicatively is it more like a INR 15 crores, INR 20 crores kind of investment in P&L?

It is too -- sorry to interrupt you. It is too premature to give you any number. As appropriate and if we have a right business plan in place, we will keep you informed.

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

Congratulations on a decent set of numbers. Sir, my question is regarding wallet share in, say, headlamp, taillamp, et cetera, with the OEM that you have.

So this wallet share actually, we share on the yearly basis. And I'm sharing this wallet share on the -- for the last financial year FY '22-'23. So for -- like I'll start with TVS. For headlamp, we are having 68% and for taillamp it is 86%; winker, 85%; RVM 62%; and DRL we are 100%; and license lamp is almost 100%, 95%. For Yamaha, headlamp is 83%; taillamp is 63%; winker is 10%; and RVM is 82%; position lamp, we are 50%. For Suzuki headlamp is 71%; taillamp is also 71%; and winker is 4%; RVM 100%; reflector is 100% and license lamp is also 100%; for HMSI, headlamp is 40%; taillamp is 76%; and winker is 85%; RVM is 100%; for position lamp and reflecter it is 100%. These are for FY 2022-'23.

And one more question regarding some other products, which we have mentioned in our annual report. That is the USB charger GAPS sensor with technical assistance arrangement that we have with TOYODENSO. Sir, any light on that regarding some time lines or what stage of development the product is in and when can we expect the product to contribute to revenue?

So this is -- we shared -- this is with our existing technology partner that is TOYODENSO. So maybe it is too early to talk about this. Maybe in next year, we will update you when anything happens.

[Operator Instructions] The next question is from the line of Anubhav from Prescient Capital.

Sir, for the motor control unit product, can you provide some detail on what stage are we in terms of product development and any, like, details on like when can it be launched over here.

Hub motor and motor controller, we are already supplying SKD as of now to Gogoro, wherein our all equipments are on the way, transferred from Taiwan, which we will be expecting by mid of next month, and 1 month is required just to have installation of this. So by next year, first quarter, we will resume our production for complete domestic assemblies of hub motor and motor controller.

Just a follow-up, so like will it require like investment in a team because motor control unit is -- my sense is very software and electronic intensive. So like what kind of development effort will it require?

See we have already available -- SMT lines are already available with us. And the software and other structure design, everything is being, as of now provided by our partner Gogoro. So we will start the production with the facilities available with us wherein, the specific assembly line and the testing machines are under transit right now, which will be installed shortly. And by first quarter, we will start the production.

Sir, what is the, like, thought on this? Like, will it -- eventually will it be like localized or what percentage of utilization will there be for this product?

So we are expecting -- we are working to localize by more than 75% of the product, wherein 25% will be the electronic component, which will, of course, be imported from outside only. .

As there are no further questions, I would now like to hand the conference over to Mr. Sahil Sanghvi.

I would like to thank the management, first of all, for very patiently and elaborately answering all the questions. On behalf of Monarch Networth, I would also like to thank all the participants for joining the call. Jain sir, would you like to give any closing comments?

Sure. I would like to thank everyone for participation in today's conference call. I hope that we have adequately addressed all your queries. If you have any further questions, please don't hesitate to contact us. Thank you, and have a good day, and good evening.

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