Gabriel India Limited (505714) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Gabriel India Limited Q1 FY '27 Earnings Conference Call. 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 the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. Joining us from the management team today are Mr. Mahendra Goyal, Group CEO and Managing Director; Mr. Atul Jaggi, Managing Director, Ride Control and Senior Management team from Anand Group and Gabriel India Limited, along with SGA, the Investor Relations Adviser to the company. I now hand the conference over to Mr. Mahendra Goel, Group CEO and Managing Director, for the opening remarks. Thank you, and over to you, sir.

Good morning, everyone. Hope you can hear me clearly and loudly. As part of Gabriel's ongoing inorganic growth journey and commitment to building scale, technology, leadership and future-ready capabilities, we are pleased to share that the Board of Directors yesterday approved 2 strategic transactions. One is related to acquisition of 28.99% equity stake in HL Mando Anand India Private Limited from Asia Investment Private Limited for a total consideration of INR 2,231 crores. And we also acquired 30% minus 1 share equity in HL Klemove India for a total cash consideration of USD 98.44 million as part of a proposed joint venture with HL Klemove. These investments represent an important milestone in the Anand Group long-term automotive industry and enforce our commitment to creating a simpler, more integrated and future-ready enterprise. They built on successful execution of Project Rise, which is under listing approval from the stock exchange under which Gabriel acquired equity stakes in a few of the businesses, Dana Anand, Henkel Anand, and these are bringing the drivetrain products and, of course, adhesive structural and NVH solutions. We further diversified our product offering through the acquisition of 76.1% stake in Anand CY Myutec and the merger of Anchemco, India's high-performance automotive chemical and fluid business into the Gabriel. We are pleased to report that Project Rise has been completed successfully. As I said, we are just waiting for the approval from the stock exchange for the listing. The successful execution of the important strategic initiatives as a significant milestone in our journey, and it already contributed in acceleration in EPS. This will be a central objective of a strategic action undertaken by the Anand Group with a clear focus on enhancing value creation, strengthening our competitive position and driving sustainable long-term growth. The progress we have achieved to reinforce our confidence in the direction of our strategy on the opportunities that lie ahead. Building on this momentum, the Board has now approved Project Jupiter. Through this initiative, Gabriel India will acquire strategic minority stake in HL Anand -- Mando Anand Private Limited. And HL Klemove India Private Limited further strengthening its position as a group automotive component platform. We have also uploaded a detailed business update presentation, which is self-explanatory and has all the relevant details on both transaction under Project Jupiter. Before I hand over to Mr. Jaggi for the operational and financial update for the quarter, let me briefly outline these 2 strategic investments starting with HL Mando Anand India Limited. HL Mando Anand India Limited is a leading automotive components company in braking, steering system and part of suspension business for the passenger vehicles and investment will strengthen Gabriel's progress across key automotive component segments, definitely broadening our product portfolio and which is creating long-term value through operational technological and business synergies. To provide a sense of scale. This company has a turnover of around INR 5,886 crores, the largest company of the Anand Group. And profit after tax of INR 358 crores in the financial year '25-'26. The company had a net worth of INR 1,924 crores. Gabriel India will acquire 28.99% stake from Asia Investment Private Limited, a promoter of Gabriel India. The acquisition will be funded through a combination of equity and cash consideration. Another transaction Gabriel India will allot INR 1.44 crores equity share to Asia Investment at an issue price of INR 1,305.89 per share aggregating to INR 1,881 crores and balance INR 350 crores cash taking a total transaction consideration to INR 2,231 crores. Additional information on HL Mando Anand is available on Slide 13, 14, 15 of the business update presentation. The strategic rationale is clear to consider the group investment in HL Mando Anand under Gabriel's India aligning is highly quality business with listed automotive components platform and enabling both the companies and its public shareholders to participate directly in the future value creation. Another transaction was with respect to the HL Klemove, which is a new investment or a new joint venture, which is primarily in the business of ADAS. We have entered into a joint venture agreement with HL Klemove India, creating a significant opportunity for again Gabriel to participate in high-value technology segment, including advanced driving assistant system and automotive electronics. Importantly, this partnership provides access to the advanced capabilities and technology that would have taken considerably longer to build originally. HL Klemove India reported revenue of INR 1,000 crores plus and profit after tax of INR 123 crore in financial year 2026. As part of the transaction, Gabriel India will acquire 30% minus 1 equity share in HL Klemove India for a total consideration of INR 98.44 million. The investment will be completed in 2 tranches. We will be paying USD 73.83 million on or before 15th September 2026, balance USD 24.61 million within 18 months of signing the definitive agreements. The acquisition will be funded through a combination of internal accruals and debt. Further details are available on Slide 17, 18, 19 of the business update presentation. The objective of this investment and joint venture is to establish meaningful presence in India's fast-growing ADAS business through a strong partnership with HL Klemove. Together these strategic initiatives, positioning Gabriel India has Anand's primarily growth vehicle and business consolidation platform for the automotive component sector. We strengthen our portfolio, deepen our technology capabilities, expand our addressable market and enhance our ability to create sustainable long-term value for all stakeholders. The Project Jupiter, we are not simply adding new investment to our portfolio. We are taking the next step in Gabriel India's transformation, building a stronger, more technology driven and a future-ready enterprise, supported by world-class partnerships and positioned to capitalize on the evolving opportunities within the automotive industry. So thank you so much. And now I'll hand over to Mr. Atul Jaggi for operational and financial updates for the quarter. Yes, Jaggi.

Thank you, Mr. Goyal. Good morning, everyone, and a warm welcome to everybody who has joined the call. I hope all of you are doing well. So the manufacturing activity in the automotive industry remained very positive during the first quarter of FY '27 with production increasing across all major vehicle categories. 2-wheeler production expanded by 23% year-on-year during the quarter 1 FY '27, scooters was the strongest contributor, recording growth of 32%, while motorcycle production increased by 18%. In the passenger vehicle, the industry production rose by 17% year-on-year during the quarter. Utility vehicles continue to lead the segment with production increasing by 21%, reflecting the continued shift in customer preference towards SUVs and crossovers. Coming to the commercial vehicle production increased by 15% in the quarter 1 FY '27. LCVs delivered a very strong growth of 21% and HCV production was higher by 6%. At the same time, crude oil and commodity policy volatility, along with the other geopolitical developments in the West Asia remained important factors to monitor because of the potential impact on the input cost, vehicle ownership economics and customer sentiments. Coming to the quarter 1 FY '27 performance. Before taking you through the financial performance, I would like to deeply explain the reporting structure following the completion of the restructuring. The financial results for quarter 1 FY '27 reflect the expanded business portfolio of Gabriel India to facilitate a meaningful comparison. The corresponding quarter 1 FY '26 figures have also been presented after incorporating the financial performance of the businesses covered under the restructuring. Therefore, the year-on-year comparison discussed today are also on a like-to-like basis. Coming to the stand-alone performance, revenue from operations grew by 19% Y-o-Y to INR 1,274 crores in quarter 1 FY '27. The performance was supported by healthy demand across the core suspension business, continued growth in aftermarket and contribution from the Anchemco business adding -- added to the restructuring. Stand-alone EBITDA increased by 7% to INR 107 crores compared with INR 100 crores in quarter 1 FY '26. The EBITDA margin stood at 8.4% in quarter 1 FY '27. Moving to our consolidated performance. Revenue from operations stood at INR 1,426 crores in quarter 1 FY '27, a growth of 15.5% Y-o-Y. Consolidated EBITDA for the quarter stood at INR 124 crores, reflecting a growth of 2.3% Y-o-Y. The EBITDA margin stood at 8.7% in the first quarter. The share of profit before tax and equity accounted in invested companies, Dana Anand India Private Limited, Henkel Anand India Private Limited and SK Enmove Gabriel India Private Limited has increased by 10% Y-o-Y. This is from INR 39 crores in quarter 1 FY '26 to INR 43 crores in quarter 1 FY '27. The EBITDA stood at INR 133 crores, a growth of 6% year-on-year with margins trending at 9.3%. The consolidated performance reflects the contribution from our subsidiaries to deliver the company's share of earning from joint ventures and associates under the expanded business structure. We've also presented the FY '26 financial performance by incorporating the businesses covered under the restructuring in both the reported financials and the presentation. On that note, we come to the end of our opening remarks. I now request the moderator to begin the question-and-answer session. Thank you so much.

[Operator Instructions] The first question comes from the line of Mumuksh Mandlesha with Anand Rathi Institutional Equities.

Congrats on bringing the HL Mando into listed and attractive value shield and the one which was expected to come soon and also an acquisition in the high-growth area of ADAS technology areas. Sir, firstly, on the relationship, sir, you're building with particular large Korean entities like HL Group, which expanding the relationship for Gabriel in area of ADAS technology. Can you share more background story, what is driving such relationships? And how are you seeing the relationship with HL Group earlier with SK Innovation for the future growth opportunities for the Gabriel?

So I think our relationships with the HL Mando Group goes back to 1996. So it has been a journey of almost 30 years now and started with single product, started with brakes. And of course, from time to time, we have been adding -- expanding this relationship as the trust between the partners increasing, I mean we have added multiple products. We added braking -- started with braking, we added suspension, and we later added steering products actually. So happy to share that in 30 years' time, of course, we had many other businesses also within Anand Group, but this company has grown the most. I think this company has reached to almost INR 5,500 plus crores, very close to the INR 6,000 crores if you see the result of 2026. So of course, this 25 years, 30 years relationship has built a lot of confidence. They have seen us. We have seen their manufacturing capabilities and of course, what they are doing on the new technologies actually. So this is -- overall, on the HL Mando and of course, we are increasing our relationship with HL Mando again with HL Klemove, the same growth. And of course, as an overall expansion plan in Korea, HL Mando Group has been consistently working on the ADAS projects for the last 7, 8 years. They have brought a special focus on this business by creating a separate entity, which was part of the consolidated entity earlier in Korea. So that is one, of course, as you know, that most of the people, they want to do business in India, they look for partners as well. I think since we have a very strong relationship, and we also trusted many things, not only from the people point of view, but also from management capabilities, their strength in Korea, their succession plan. I think you are very, very confident that we can expand our relationship with the group. And therefore, I think based on our current relationship, we became also the very trusted partner for them in India. And so we joined hands together and happy to take this company up together now. I think -- so that is what all the story behind this.

Got it, sir. Secondly, just on the new HL Klemove JV acquisition on the ADAS area. If you can guide us how to look at the medium-term growth part for this entity with some background, if we can share what are the some new orders they are working. Some of the key customer mix. Which are the key customers they are working with? And any targets to share, obviously, last 2 years had seen 23% CAGR. If you can guide us how to look at the medium-term opportunity for this entity?

Okay. So I think it's very difficult to share the overall numbers. But yes, as we look at this business, and I would like to just answer maybe what is built up in the pricing also of this transaction. I think we have a great hope from this business. The business pipeline is very strong. The company has been working with the -- good thing is not only with Korean customers, this company has been working with Mahindra and with Tata Motors actually. So that is one of the important things. And just to share a small thing on this, that the Mahindra new vehicle, which they have launched in last 2-wheelers, this company has a business similarly with Tata Motors. I think the growth opportunities are enormous from this business. The product cost itself is very large, actually. The per vehicle cost becomes very, very large, which help us to take turnover very significantly high in very few years actually. So I think we have a very high expectation. And I see that in our journey of INR 50,000 crores in 2030, this company will make significant difference actually.

The next question comes from the line of Jay Kale with Elara Capital.

Congratulations team for the transactions. So my first question was on the 2 entities. Just wanted to check with you one of the things that the local OEMs are also struggling with in adopting these kind of technologies, the localization effort. So just wanted to check from your perspective in these entities, are we significantly high in terms of localization and hence cost competitiveness? How are we versus peers in India who are offering this? And are there any similar players who've already set up capacities over here? So just from cost competitiveness and peer set, wanted to test whether we have opportunity in other OEMs apart from Korean OEMs and Mahindra and Tata that you mentioned?

I think localization point of view, if we look at the first transaction, which is with respect to the HL Mando Anand. I think there is a fair level of localization has already reached. And from the business perspective, this company was depending on Korean customers. Very pleased to share that the dependence has significantly reduced now almost, I think, say, 40% of the business is coming from non-Korean companies with respect to HL Mando actually. So we have opened door with all the customers. We started with Hyundai, of course. When Kia came in, so we had a business with Kia. Now we have with Tata Motors. We have with Mahindra. We have with Maruti Suzuki as well actually. So I think HL Mando is well poised from that point of view. And when I look at the other transaction on the HL Klemove side, the localization will start. I think we are -- as the industry will move. I think there is a fair plan to further localize. And as I said already from the business perspective, other than Korean customers, we are there with Mahindra, we are there with Tata. I think that primarily the only 1 customer has left Maruti Suzuki, and of course, that is something as they appropriately adopt with ADAS technology also, we will have opportunities with them as well. I mean, so far, they have not reached to a level we are adopting a proper level of the ADAS. So I think those opportunity will emerge at the OEM will have the plans actually.

Understood. That's heartening to know. And secondly, I have to just look at FY '30 targets, of course, ambitious targets of INR 50,000 crores. That entails a lot of inorganic opportunity as well. And it is heartening to know that we've started with a decent size inorganic opportunity apart from the earlier 2 ones announced last year. Any targets or any direction that you can give that how should we see the mix in FY '30 from a segment perspective? Is it that incrementally passenger vehicles will be a larger component going ahead given the relationships with the Koreans? And is there any conscious effort to diversify further maybe into CVs and 2-wheelers also? Any direction you can give from that perspective? And also is non-auto anywhere in the scheme of things, any segment of the non-auto in your FY '30 targets?

Okay. So I think I look at it overall group perspective. So we are INR 50,000 crores and we will be targeting in 2030. That is what our plan is. And when we look at it, Gabriel becomes definitely the key entity for bringing these growth opportunities. So right now, we are focusing on automotive components group businesses. What we intend to bring to the Gabriel India, and yes, I'm not limiting ourselves to the passenger car. I think there's no such strategy that we will be only limiting to the passenger car. Our growth is around commercial vehicle. We have a lot of focus on the 2-wheeler side, actually, the business -- that is another segment which is growing. And we also intend to bring focus on the off-highway segment, that is also going to be our priority as one of the growth area. So these are some of the initiatives. On the EV side, yes, we have a separate vertical already, which is there in the name of Anevolve, which we started some time back. So that is still progressing actually. So we have reached to a matured level, but which is progressing actually basically. So in nutshell, I think we are not favorite to any segment, and we are not averse to any segment. But yes, we will stay with the automotive segment actually from a growth perspective.

The next question comes from the line of Viraj with SIMPL.

Just a couple of questions. First is, can you just call out the -- is there any restructuring or merger-related charges on FY '26 -- so on an annualized basis, what would that be? So that is one. Second is on the JV and the new businesses. Can you give some color in terms of what are the regulatory -- major regulatory events you expect playing out in '27 and next 2, 3 years? And do you see any major tailwinds for the business. So I think you talked HL Klemove. There's autonomous emergency braking standard which is going to be implemented. So any color you can give on that? And third is, again, on the JV. See, if you look at Henkel or Myutec ride, the year gone by, you've seen a very subdued growth vis-a-vis what the end industry has done. And similarly in terms of profitability you've seen a degrowth in the FY '26. So what has really happened there? And how do you see those 2 entities going forward?

Yes. One second, actually. So shall I answer restructuring cost question which you mentioned Viraj. So I think in the Project RISE earlier and now in the Project Jupiter, we have transparently declared all the advisers whom we have worked to ensure the high level of governance and their advisory fees have been incorporated in last year's profit and loss and whatever we will be paying for this year also be incorporated. So the number which you see for the profitability after considering those costs. At the overall level, we do not see that that cost has any significance with respect to our profitability. The later part of the question with respect to the 2 entities...

This one was the question on the regulatory events related to this transaction.

I think regulatory events is primarily is already approved by the Board of Directors. So that is done. And therefore, we replace both the transactions.

Sir sorry to interrupt what I meant from a regulatory is, say, you have CAFE norms and then you have industry standards in terms of autonomous emergency breaking, which might probably impact positively the HL Klemove, right? So similarly, do you see any other regulatory norms, which would positively or negatively affect our various businesses?

I think if you look at both the products are dealt with the safety. And you can see from the safety perspective, the regulatory changes, which may emerge in the future, it's definitely going to help both the products actually when you look at from the steering point of view or from a braking point of view, which is part of HL Mando. And if you look at the HL Klemove, which is primarily again to deal with ADAS products actually. And you can see what is happening now. The ADAS regulations are being effective. I think there are different level of ADAS technology. I see this is happening in commercial vehicle at a lower level. And of course, the things are moving in the passenger car as well. So looking from the future perspective, the regulatory will only help growing these businesses, whether it is braking or is it steering or it is ADAS, because all dealt with safety. So we see the positive impact in the future of all those changes as far as the business is concerned. And one more thing which is also very important to understand that as is to deal with braking and steering actually. So it's a very integrated solution, which we should be able to provide from the technology point of view, which I'm not sure that very easy that someone else will try to bring it to the customer actually. So I think it should all help in the growth of the business.

On the 2 JV, sir, you've seen not a great performance in '26 and profitability is also degrown?

I think the thing with respect to sunroof business, that is primarily -- I'm sure you must have heard that they were very some issues, the operating issue at one of the supplier of Hyundai Mobis and where the Hyundai was not able to produce the vehicles actually, almost our business was down because of the Hyundai was not able to produce the Creta, and that impacted the business, especially in the sunroof. So that is creating some impact in the current quarter actually. But I think as we look at from the customer perspective, they say that they should be able to recover the production which they lost in the first quarter.

I meant about Henkel and CY Myutec JVs for FY '26. You've seen a profit degrowth.

Henkel, again, I think it's an issue with respect to some of the commodity changes, which we started with the Middle East situation. So that has impacted -- and we account for these recoveries on the actual basis, I think these impacts will come in future in their profitability, actually.

The next question comes from the line of Amit Hiranandani with PhillipCapital.

Yes. Congratulations to the team for 2 strong acquisitions. Sir, just on the HL Klemove, I just wanted to understand how much is the content per vehicle and the localization plans you have on this thing?

Yes, the content per vehicle will always depend actually. But I think in my view, it can go. I think my estimate is maybe INR 20,000 to INR 60,000, INR 70,000 per vehicle, all will depend what kind of a level that our OEMs would like to target in their vehicle. But I think the content can go as high INR 60,000 and as low as maybe INR 20,000 or slightly less actually. So that is -- that is one part of information. And I think there are fair localization plan. So those details, we will continue to share with you but as we look at, we are entering into the joint venture as we examine the business plan, I think their fair localization plan in this direction as well.

Right. And sir, how much gross debt and cash we have as on 30 June? And how much amount are we planning to raise for HL Klemove?

Yes. We have about INR 250 crores of cash at the end of quarter 1 and so far, we have been funding our working capital and CapExes from the internal approvals, which we can avail the short-term facility, which should take care of the first tranche of transition, which we intend to discharge in -- by September. The total debt we will be putting up for the shareholders' approval is about INR 1,600 crores. However, on the short and midterm basis, we feel that we will be having a debt of INR 1,000 crores.

The next question comes from the line of Rakesh Jain with Axis AMC.

Congratulations, Mahendra and Jaggi Ji for another set of companies consolidating. So I have 2 questions. My first question is mainly on the HL Mando's revenue. If you can dissect what percentage of the revenue come from exports today? Because INR 5,500 crores, given their affiliation with 2 Korean OEMs, it seems that there's a sizable portion of export revenue, which is sitting. And how should one think about it? Because for HL Mando globally, we are about almost 10% to 12% of their global revenue. So we are fourth largest. Is that something one should keep in mind when looking at the revenue trajectory going forward in terms of the export opportunity because -- and how does the export opportunity size the group thinks about from this transaction? And second question I have on the ADAS journey. So we do see that the HL Group talking about software-defined vehicles, ADAS picking up. Do you think that we are on the inflection point where these OEMs are going to translate into the journey of ADAS and software-defined vehicles in India? And how do we transpire that across OEMs? From a capability point of view, if you can tell us how does our ADAS stands today.

Yes. So thanks. I think from the exports perspective, right now, we do maybe 7% to 8% of the current business size exports. And I can't guide you any number in future, but I would like to generally relate with the overall business outlook, what most of our partners are looking, including HL Mando, I think what generally the direction is that how the India become a manufacturing sector for supporting their businesses out of India, actually. So that is -- that is the theory, that is the objective, which will drive further exports as we move ahead in future years. So that is something which we are very confident that the exports opportunities will emerge with this direction of our partners, actually. That is one part. And second is with respect to ADAS. I think, as I mentioned that I think all new vehicles, you see this configuration is there on the software point of view of ADAS I think let's say it's a need, in my view, and it's an additional feature, which OEMs are building into their vehicle. So that is something which I would say that there will be overall focus from the OEM point of view and what we can bring to the table. I mentioned already that we will be the unit players, which are bringing braking, steering and ADAS together actually to the OEM. And one can understand that ADAS is to do everything with braking or the steering actually. So if you look at this concept, we become one of the unique supplier in India to provide an integrated solution to the OEMs actually. And as far as our capabilities are concerned, we have a huge number of people who are in India and who are also in Korea working in engineering centers, and those facilities are definitely helping us to grow the technology actually.

Sure. And just 1 follow-up. For the ADAS, the software piece of the business, does it come as a part of our integration or that fits with the global entity?

So it is -- so whatever is required for the vehicle software for the business, which we will be targeting in India. So that will -- services will be availed from engineering centers, and that become part of our business, but we are not participating in any business, which is outside of India actually.

The next question comes from the line of Aditya Khetan with SMIFS Institutional Equities.

Just a couple of questions. Sir, on to the stand-alone business, we have seen a decent dip of 80 to 100 basis points on margins. Could you quantify any sort of cost pressures we are seeing over there? Second, sir, on to the sunroof side, you mentioned that there was production loss from one of your customers Hyundai Creta. Any number, sir, if you can throw like -- so what was the revenue and EBITDA? How much loss we have taken in this quarter? And sir, what sort of volume numbers you are looking for FY '27 and update on the second phase of sunroof?

Okay. So I mean to the first question on the bison the stand-alone business. Yes, if you look at the details of the number, there has been in this quarter, there has been pressure on the material cost due to the commodity inflation that has happened. So it is a combination of impact that comes on a mathematical level, because even if the recovery is there, there is always a denominator impact that comes in. And secondly, there is -- sometimes there is also a little lag in the recovery. What we are spending in the month doesn't get recovered in the same month there. So -- the recoveries are sort of getting aligned with the customers. Some of them already settled, some of them in the discussion. But sometimes it can take some time to release the purchase orders, et cetera. And this is that only we take it as a part of. So, yes, whatever, there is a delay in the recovery, we are looking for the next quarters to make the recovery. That is on the margin part. Secondly, on the sunroof business, I think Mr. Goyal already mentioned, there was some challenges with one of the suppliers, leading to the lower production. The -- I think the overall numbers when we look at the quarter, there around, I think, somewhere around 15,000, 20,000 numbers that could have been produced more. The good thing is that the customer has started pulling those numbers. They are very confident of making up those gaps in this quarter and the next quarter. And I think -- so from the budget point of view, we are not looking at any shortfall coming in. It is a timing issue definitely for something which is completely beyond the control of whether the OEM or the suppliers, but we are not looking at any shortfall coming in.

Got it. Sir, on to the passenger vehicles, when we look -- so during the quarter, like we have grown by some 5.5% versus the passenger vehicle market growing by 15%. Clearly, we have underperformed over here. And our share also in the total top line mix has came down from 24% to 20%. Any change, sir, like are we focusing more on to the smaller cars like you mentioned in the presentation, like earlier, we were present into the SUV side. Has that mix gone down more towards smaller car, which is why the growth is slowing. Any thoughts on that sir.

So I think if you look at the smaller cars, the growth is significantly higher than the market growth, but the gap is primarily on account of the UVs there. Some of the models, I think that have performed really well. We are not there on those platforms and some of the -- the biggest customers overall wallet share has been coming down. So that is also impacting because we are very strong there. So it was a model mix issue, I think, for the quarter, which is leading to this change.

So will this improve sir going ahead? Like it's coming back to the normal range or like this will continue?

Again, see these things, they are purely dependent upon the model where we are present and how the model -- the new launches will perform. So obviously, given a choice, I would like all our models to do exceedingly well. Let us keep the fingers crossed. But yes, the model mix issue has sometimes been very supportive also and sometimes it can be a challenge. But yes, I think generally, it bridges out over a period of time.

The next question comes from the line of Radha with Motilal Oswal.

Congratulations team. Sir my first question is you mentioned that M&M and Tata type customers from HL Mando [indiscernible]. So I wanted to understand whether Mando is supplying shock absorbers to M&M and Tata as well? And if yes, then how will this be differentiated between the suspension business of Gabriel stand-alone versus the suspension business of HL Mando? And in terms of technology, do they have all the passive, active, plus semi-active suspension technology as well?

Can you be a little clear. I think either you're on a speaker or you are at a place where it is -- your voice is echoing. Yes. I think maybe you can speak a little slowly, and don't use the speaker, it will be helpful, please.