Greaves Cotton Limited (501455) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Greaves Cotton's Q4 and FY '25 Earnings Conference Call. We have with us today Mr. Karan Thapar, Chairman of the Board, Greaves Cotton Limited; Ms. Akhila Balachandar, CFO, Greaves Cotton Limited; Mr. Parag Satpute, Managing Director and Group CEO, Greaves Cotton Limited; Mr. Narsimha Jayakumar, CEO, Greaves Retail; Mr. K. Vijaya Kumar, ED and CEO, Greaves Electric Mobility Limited; and [ Mr. Alvind Divanayagam ], Deputy CFO, GEML. We would like to begin the call with brief opening remarks from the management, following which we will have the forum open for an interactive question-and-answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier. Further, as you are aware, Greaves Electric Mobility Limited has filed a Draft Red Herring Prospectus with the capital markets regulator, SEBI, to raise funds through an IPO. All discussions in this call with regard to this entity may be read in conjunction with and be limited to the set DRHP. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Thapar.

Good afternoon, everyone. This is Akhila Balachandar, and it's a pleasure to have you all with us today. I'm joined by our Chairman, Mr. Karan Thapar, and I would like to invite him to share a few words.

Thank you, Akhila. Hello, everyone, and thanks for joining the call. Akhila is going to present the financial performance. But before she does that, I wanted to take a moment to welcome Parag Satpute sitting here with me on the table as our new Managing Director and Group CEO for Greaves Cotton. Parag will be responsible for overseeing the strategic direction and operations for Greaves Engineering, Greaves Retail, Greaves Technologies, and Excel Controlinkage with a clear focus on driving growth and delivering on our core purpose of empowering lives. Parag brings an impressive 29 years of leadership experience within the mobility and manufacturing sectors, and we value that expertise in Greaves. We are confident that his leadership will not only accelerate our growth trajectory, but also propel us towards achieving our strategic ambitions with a greater impact and speed. I am delighted to officially welcome Parag to lead us to our next phase of growth. I might just add that the Greaves Board had set itself a vision to achieve a INR 15,000 crore top line on a group basis by 2030 through a blend of organic and strategic acquisitions, and the managements of Greaves Cotton and Greaves Electric Mobility remain committed to the same. Over to you, Akhila. Sorry, over to you, Parag.

Thank you very much for the welcome, Mr. Thapar, and good afternoon to everyone on the call. I'm truly honored to join Greaves Cotton at this very pivotal juncture in its journey. I've long admired this organization due to its commitment in driving positive impact through sustainable engineering technologies and fuel-agnostic solutions. All of these initiatives deeply resonate with me. Let me give you a brief introduction of my professional background. Like Mr. Thapar said, I have more than 29 years across the mobility and manufacturing sector, and I have worked in India and in global markets. My most recent assignment was with Bridgestone Mobility Solutions, where I served as the President of the Fleet business, running business across North America and Europe. I have now relocated to India, and I'm really excited by this opportunity. Prior to this assignment, the one in Europe that I mentioned, I was Managing Director for Bridgestone in India, and I led a comprehensive business transformation for the whole organization. And before Bridgestone, for over 2 decades, I worked with Sandvik. I started out in India as a sales engineer. And over these 2 decades, I have worked in multiple assignments in India and abroad and was eventually the Managing Director for Sandvik in India. Now as I step into this role, I look forward to working with the leadership of Greaves Cotton, all the teams and the stakeholders to, like Mr. Thapar said, to accelerate the growth, to drive innovation, and to deliver on our customer-centric future-ready solutions. The company's legacy in empowering lives through sustainable and accessible solutions really resonates strongly with me. I look forward to advance the company's vision and to drive strategic business outcomes. Over to you, Akhila, to take us through the results.

Thank you, Chairman sir. And once again, welcome to Mr. Parag. Good afternoon, once again, and a warm welcome to all of you on this call. I'm pleased to share that Greaves Cotton has delivered a very strong financial and operational performance in Q4 and also across the full fiscal year financial year '25. This performance reflects the successful execution of our transformation strategy, diversification of our portfolio, and a disciplined approach to financial management. It also validates our continued focus on sustainable growth, operational excellence, and capital efficiency. Let me now take you through the key highlights. For Q4 FY '25, we reported consolidated revenues of INR 823 crores with Greaves Cotton stand-alone revenue rising by 19% on a year-on-year basis to INR 573 crores. Excel Controlinkage, our strategic acquisition, continued to perform exceptionally well, recording Q4 revenues of INR 75 crores, reflecting a 15% year-on-year growth. Our profitability profile improved. Standalone EBITDA for Greaves Cotton was INR 84 crores with margin at 14.7%. The combined Q4 EBITDA for Greaves Cotton and Excel is at INR 107 crores with margins at 16.4%, highlighting our improved cost structure and operating leverage. Moving to the full year financial year '25. Consolidated revenues reached INR 2,118 crores, backed by strong contributions across all our business verticals. Standalone revenues for Greaves Cotton grew by 12% year-on-year to INR 1,988 crores, while EBITDA increased to INR 260 crores. Excel contributed INR 268 crores to the full year revenues. The combined EBITDA of GCL and Excel stood at INR 338 crores with the margins at a healthy 15 percentage. Each of our core businesses made strong progress. Engineering and retail divisions continued their growth trajectory with revenues growing annually by 14% and 17%, respectively. The integration of Excel Controlinkage has strengthened our capabilities in motion control systems and components, enabling deeper penetration into key high-growth sectors. Our Electric Mobility division posted revenues of INR 659 crores for financial year FY 2025, driven by the launch of new models, improved channel efficiencies, and growing consumer demand. As you are aware, our Mobility division has filed the DRHP, and we await the regulatory approvals. FY '25 marked strong growth for Greaves Engineering and Excel, reinforcing our position as a diversified engineering group. Greaves Engineering, the non-automotive applications continue to dominate the growth. The company achieved strong growth in gensets and industrial engines while expanding into sustainable mobility with CNG and showcasing of hydrogen technology concept at the Bharat Mobility Global Expo in Jan 2025. In gensets, we improved our market share to around 4 percentage. Excel, our strategic investment in line with our diversification strategy, continued to deliver strong performance, ensuring that our investment is both revenue and margin accretive. Moving to Greaves Retail. We ended FY '25 on a positive note with significant growth in the second half. We are building a scalable tech-enabled business across 3 core verticals: auto, non-auto, and EV components with a focus on 3-wheeler CNG, energy solutions and EV aftermarket. Our nationwide network of 10,000-plus retailers and 21,500-plus mechanics ensure strong service delivery, while digital tools enhance the operational efficiency. Looking ahead, we aim to expand in high-potential categories and pursue strategic acquisitions, maintaining our asset-light, tech-driven growth model. From a financial health perspective, we are in a very strong position. We continue to operate with a near 0 debt balance sheet, supported by standalone cash reserves of INR 379 crores. Our return on capital employed for FY '25 stands at a healthy 19 percentage, underscoring our capital-efficient growth approach. We remain optimistic about the future while acknowledging external uncertainties. Our strong balance sheet, cash flows, and focused strategy equip us to seize opportunities and create long-term value for stakeholders. With this, I would now like to hand it over to my colleague, Mr. Vijaya Kumar, ED and CEO of Greaves Electric Mobility.

I'm sorry, sir, you are not audible.

Thanks, Akhila. Sorry, we were on mute. Very good afternoon, ladies and gentlemen, and thank you for joining us today. Let me begin with a brief update on Greaves Electric Mobility performance and some key developments from this past quarter and financial year before we open the floor for further questions. GEML has delivered a resilient and forward-moving performance in this quarter. The overall electric 2-wheeler industry, which saw a decline of 8% from Q3 FY '25 to Q4 FY '25, as per the VAHAN data, which is the government portal data, Greaves Electric Mobility delivered a strong performance. Our VAHAN registration grew by 15% quarter-on-quarter, resulting in an increase in our electric 2-wheeler market share from 3.4% to 4.3% in this quarter. This growth was led by the successful launch of the new Magnus Neo this quarter, a generational upgrade of the popular Magnus EX with enhanced styling, improved performance, and a safer LFP battery platform, Magnus Neo has resonated strongly with customers seeking value, safety, and reliability. In the L5 3-wheelers, we continue to gain traction across fuel-agnostic L5 solutions, reflecting the strength of our diversified product portfolio. We are building this future by leveraging our engineering DNA and rapid evolving product portfolio. In terms of annual update, our revenues in FY '25 grew by 7.4% year-on-year, driven by volume growth in the E 2-wheeler at 10% and L5 segment at 61% year-on-year. This is driven by a strong growth in fuel-agnostic segments. Also note, our market share increased from 1.2% in FY '24 to 3.7% in FY '24 in the L5 diesel segment. This year, we introduced 3 electric 2-wheelers, new 2-wheelers, Ampere Nexus, Magnus Neo, and Ampere Reo, each engineered to be safe, smart, stylish and affordable, catering to the diverse need of India's evolving EV consumers. In addition, I'm also happy to announce that Ampere Nexus has been awarded as the Electric Scooter of the Year by Bike India, a leading automotive publications. This quarter also saw a strategic milestone, our partnership with Indofast Energy to enable battery swapping for fleet operators and shared mobility platforms. The newly launched Ampere Magnus SW.S, the way we call it, which is swap-enabled, integrated with Indofast's swap infrastructure will help reduce downtime and enable faster turnaround for the last mile delivery vehicles. Continuing our commitment to affordability and access, this quarter, we launched the Ampere Reo 80 at INR 59,900, an electric scooter designed for mass market India, students, and senior citizens. This is a key step forward in realizing our vision of ‘Har Gully Electric'. We are among the very few players who are offering EV solutions across both 2-wheeler and 3-wheeler segments, alongside our diesel and CNG offerings in 3-wheeler, which helps us cater to a diverse customer base. We have also made meaningful strides in customer service support with 600-plus touch points, our own EV financing platform, evfin, and a growing digital infrastructure that supports both consumers and channel partners. As you are aware, we have filed a Draft Red Herring Prospectus, dated December 23, 2024, for a proposed initial public offering, which is subjected to receipt of regulatory approvals from the SEBI, market conditions, and other commercial considerations. We remain grateful to our 2 investors, Greaves Cotton Limited and Abdul Latif Jameel, whose continued support strengthens our foundation and future investments. We remain committed to investments in product innovations and in-house battery capabilities. With that, I now hand it back to the moderator to open the Q&A session. Happy to take your questions, please.

[Operator Instructions] The first question is from the line of Tushar from MK Ventures.

Congratulations to the management for a good set of numbers. My first question is to Mr. Parag. Sir, given your long-standing track record, coming – Hello, sir am I audible?

Yes, please proceed.

So, my first question is to Mr. Parag. Sir, given your own long-standing track record and also given Greaves' overall pedigree and lineage, as an outsider coming into the firm, where do you think the firm is in terms of the overall journey? And how comfortable you are taking on this target, which I think was set maybe a couple of quarters back by the Board, of a 6x increase in revenues over the next 6 years. So I just want to understand the qualitative aspects and how do you look at the firm as to the preparation and as to what other needs to be done to really achieve these outcomes?

Thank you, Tushar, for your question. Yes, like I said, I am really excited to join this company. I started my assignment just 2 weeks ago. But like you pointed out, the recent track record of the company has been really strong. And when I was considering this opportunity, I was really excited by the vision set out by the company and what I could see in the track record. As I've come in, I have started interacting with the management. I've started looking into the business plans. And while it is too early to give you a view now, I can confirm that I continue to be excited by this decision I've taken and the opportunity to work with the Greaves team.

Sure. Sir, my question from a business standpoint, so first and foremost, the engineering business, the fourth quarter growth is significantly higher Y-o-Y compared to the full year growth Y-o-Y for us. So should we take it that the fourth quarter is a more sustainable benchmark going forward, we should be able to deliver with this as a new base? Do you see a substantial traction in the engineering side of the business, also given that we have a lot of new initiatives that we have launched there?

Thanks, Tushar, for that question. As you know, Q4 is generally our best quarter. We always put our best foot forward in the last quarter of the entire financial year. And we have really done that in this year also. Point number 2, over the past 6, 8 quarters, we have been undertaking various initiatives, which have been in progress for some time, and some of those initiatives have materialized. And these are building blocks for our growth journey and also to the vision that we've set out, and which was your earlier question of going 6x by 2030. So yes, some of the building blocks are beginning to show the green shoots and the results. And hopefully, the endeavor of the management is to continue on this journey going forward also.

Thank you, ma'am. Also, on the EV side of business, just to bunch up a couple of questions, A, the volume growth looks substantially higher than the revenue growth for the past quarter and year for EVs. If you can just set that in context? And also, if you can comment on the profitability of the EV business? Are we already profitable ex of subsidies on a gross margin basis? And when do we aim to be breaking even in this business at an EBITDA level?

Vijaya?

Yes, Akhila, do you want to take that?

No, Vijaya, you can take that.

Yes, Tushar, thank you for your question. So one is from a revenue and the realization standpoint because where we started -- we had a non-subsidy scenario in the first 2 quarters. Later on, we got approval on the subsidy and then it got passed on. From that standpoint, if you see our revenue numbers, that benefit has got passed on to customer, and hence, it has an impact on the overall revenue realization. Going forward on the profitability part and any -- as you are aware, we are waiting regulatory clearances from SEBI on our DRHP. So I think I would constrain myself from giving any forward-looking statements as we have already mentioned it in our DRHP details.

Sure, sir. If I may quickly check one last question on the retail side. Last 2, 3 quarters and also in the Auto Expo, there's been a lot of initiatives, a lot of new product launches and a lot of announcements related to the retail part of the business. And given that it's a low or a negative working capital business, what is constraining us to, let's say, grow this business at 25%, 30% kind of CAGR given that the base is still relatively small? Can we expect that kind of a growth momentum in the next few quarters?

Yes, Tushar. So, like we've said over the past few quarters, we have been investing in this space, and this space has a lot of opportunities, and we are excited with it, and we continue to remain so. Yes, some amount of growth has not kicked in. If you see H1 last year was particularly impacted because of the heavy rains, the long-drawn elections, but we have bounced back in the second half of the year. We are continuing in our journey there. There are new product launches. There is work happening, and we expect to gain momentum in the coming quarters. I hope that answers your question.

The next question is from the line of Krisha Kansara from Molecule Ventures.

Hello.

Krisha, your audio is not clear. Please use your handset to continue.

Sir, my first question is slightly related to what previous participant asked. So, we saw a very impressive growth of 30% in our Greaves engine segment. So could you help us understand the drivers which drove this growth? Was it gensets? Or was it other complementary segments that we cater to? And if the growth came from gensets, can you please pinpoint what sectors, what end user industries are we seeing the major demand coming from? This is my first question.

Yes. Thanks, Krisha. Essentially, Greaves engines, if you recollect, we have been on a transformation journey for the last 3 to 4 years. We've tried to diversify our portfolio from a single engine, single application company to multiproduct, multi-application company, and we continue on this journey. As we are growing, the contribution of our non-auto applications, especially gensets has been a dominant piece of our growth, and this is what we will be driving going forward also. In gensets, our market share had been in the region of approximately 2.7% some time back. And we currently are below 4% or around 4%. While we are not a very big player now, and therefore, we are not very, very specific as to which segment we are targeting, we are trying to be very customer friendly, develop solutions which the customer is demanding and therefore, building a niche for ourselves. I think going forward for some more time, this is the strategy we will be adopting. Secondly, what we are working on is trying to also see if we can build solution-as-a-service around the gensets where our RFIDs are embedded in the gensets that we sell. We're able to monitor the performance of these gensets and do preventive maintenance and do post maintenance. So this is something we've been working on and some progress is made and the rest is work-in-progress.

So ma'am, would you be able to tell us that at what growth rate did our genset segment grow by in this quarter or in this year?

Yes. A dominant growth has come from the gensets. We've not really been sharing what is the specific growth in gensets. As I said, our market share has improved from approximately 2.7% last year or year before that to around 4% in this year. And that is the journey that we have covered over the last 6 to 8 quarters.

Right, right. Ma'am, my second question is regarding Excel Controlinkage. So in the previous con call, you had hinted that we are undertaking some kind of debottlenecking initiative in order to expand our capacity there. So it would be very helpful if you could give us some details on this as to what kind of amount have we spent to expand that capacity? And when will this expanded capacity come online? And also what currently is our utilization level? Something on this line, ma'am.

Sure. So Krisha, basically, we have outlaid almost a INR 100 crore CapEx plan when we invested in this company, right? And this was something that we were planning to undertake over a 3- to 4-year period. Over the last 2 years that we've invested in this company, we've undertaken multiple initiatives in debottlenecking our processes. So it's not just about one specific part or area. It's over the entire manufacturing processes, the assembling and the process improvements. We also continue in this journey, and we have some CapEx plans outlaid even for the forthcoming year.

Okay. But can you tell us the current utilization level at our Excel plant?

So we would be -- again, as I said, there are multiple parts to the entire plant. There are pieces which would be 60% or 70% utilized. There are pieces where our utilization would be 90% plus. And this is where we would focus on the debottlenecking initiatives. So this is an ongoing journey, but we would be approximately, at an overall level, more than 80% of plant utilization.

Right, right. And if you can tell us in percentage terms as to how much capacity are we adding? Let's say, you mentioned we are planning a CapEx over the next 1 year, so what kind of capacity addition can we see in this segment?

Okay. So when we invested in this company, the turnover of the company was approximately INR 187 crores, and we had set out an ambitious target of investing around INR 100 crores. The idea was we should be able to do 3x turnover with this kind of an investment. And obviously, that is what is currently work-in-progress.

Okay. Ma'am my next question is on…

Krisha, sorry to interrupt you. Could you please rejoin the queue for follow-ups, please? There are others who are waiting. We'll take the next question from the line of Darshil Jhaveri from Crown Capital.

So, I just wanted to know, like I think we have had an excellent Q4, so moving on, we said that Q4 is usually the best quarter. So what kind of seasonality we should see going forward? And we've had some launches. And what kind of launches are you planning for next year, sir?

So Darshil, as I said earlier, we have the best quarter in Q4. But otherwise, we are not really seeing that level of a seasonality or cyclicality, but the nature of the business, and we see the best quarter in Q4. Going forward, and again, I continue from what I said earlier, we have been undertaking multiple initiatives, both on the revenue side, on the optimization side, and the cost controls. So all these are work-in-progress and will, therefore, play out in the coming years. I hope that answers your question.

Fair enough, ma'am. And so just like we have a very really great vision of reaching INR 15,000 crores by FY '30, but just wanted to know in the near term, like how do we see the next 2 years panning out? Like is it like this would be the investment phase where we are just doing all our measures of cost control and getting all our ducks in a row and then there will be super growth? Or will it be a linear form of growth? Like just wanted to know about that. And how would that impact our margins?

Sure. So Darshil, again, I go back what we started this journey around 3 to 4 years ago, where we're trying to diversify our dependence on diesel products, right, on our auto applications. And today, we are fairly well diversified in terms of auto and non-auto applications, in terms of being fuel-agnostic in our product offerings. It is in line with this philosophy that we did a strategic investment in Excel, which is definitely fuel-agnostic, right, but in the same industry. This has added INR 268 crores to our top line in the current year and will grow further. Going forward, we will definitely grow both organically, and we are also looking for opportunistic investments in the adjacencies that we are strategically looking forward to. And the ambition that the Board has or the vision that the Board has of INR 15,000 crores by 2030 is an all-encompassing vision, which includes both organic growth as well as the strategic investments that we will definitely meet. And as you're very well aware, we are a completely debt-free company. We're sitting on INR 379 crores of cash. And therefore, we are well funded if we want to undertake inorganic and strategic investments.

Very, very fair, ma'am. And just like one bookkeeping question from my end. So we have some accumulated losses. So going forward, will we have a nil tax rate for some time? Or how would that go out?

Accumulated losses as in -- so Darshil, we have losses in the subsidiary company, Greaves Electric Mobility, and they will be able to take any tax benefits that will be available.

Okay. Fair. That's in the subsidiary.

At the Greaves Cotton entity level, let me clarify, we do not have any losses in the standalone books.

The next question is from the line of -- we'll take the next question from the line of Saket Kapoor from Kapoor Company.

Firstly, please correct me, sir, in your presentation, for the electric mobility part, have we not provided the P&L separately in the division part? Or where have we subsumed that number, sir? Hello?

If you go to the presentation, we have shared the e-mobility financials in the business division disclosures.

Which one, ma'am, which speaks of it?

Sorry, I don't have the exact page number because these do get changed.

Secondly, ma'am...

It is under the financial segment.

Come again?

In the financial disclosures, we have put it under the business division financials.

Okay. I'll just go through it because separately, when I was going through the division disclosure, I could find Greaves Engine, Greaves Retail, GCL, Excel, and GCL plus Excel. But for the e-mobility, GEM, that part of the slide, I could not make out where you have provided the disclosure for the same, in the same pattern. And secondly, taking into account the current subsidy setup, what have we factored in, in terms of the growth trajectory and the quarterly burn ratio for the Electric Mobility division? And secondly, ma'am, post this IPO, which we are envisaging, what would be the shareholding – I mean, who will be holding the majority of the stake in the existing company? Whether in consolidation, this line item would appear going ahead also? If you could just throw light on that?

Yes. I'll request Vijaya to take the first question, and maybe I'll then add to the second one.

Yes, Akhila, thanks. So Mr. Saket, the way we are looking at it is the electric 2-wheeler industry last year has grown by close to 20%, and it was at 1.3 million, and we expect that growth trajectory to continue. And Greaves Electric Mobility has been one of the, I would say, one of the founding members of electric mobility. We've been more than a decade, and we've been among the lead players of electric mobility solutions here. So we are looking forward to participate in that growth. We have strong brand presence in terms of 2-wheelers, in terms of Magnus and Reo, and we have launched Nexus. On the electric L5 segment, we have Eltra, which we had launched this year, has been received well, and it holds the largest kilometer on a single charge certificate across all the competitors we have. On top of it, on the 2-wheelers, we have a couple of states where we are at a much better market share, upward of 10%. There are states, large states like Tamil Nadu where we are at 15%. So, I'll not be able to exactly detail you out the numbers given our present status with the DRHP as we are waiting approvals from the government, but we have our own plans wherein we are working on improving our product quality, technology, and the reach across the country through our distribution and service network. Over to you, Akhila.

My question was more particular to the subsidy part of the story, the type of uncertainty that is there in the subsidy. I think some recent changes were also made a couple of days ago. So what are we factoring in going ahead in terms of the subsidy part of the story? And when will this burn ratio start falling? I mean to say higher -- we have posted higher turnover for the year, but so has been the losses.

Okay. So let me answer one by one. So the subsidy presently is at INR 2,500 per kilowatt hour on 2-wheeler, which is capped at INR 5,000 per vehicle. And on the L5 3-wheeler, it is at INR 5,000 per kilowatt hour capped at INR 25,000. So as far as the government policies and the documents, which has been released by the government, this is extended for the full financial year this year, given the budget and the utilization resultant to the sales. Going forward, there are no indications from the government. So we are working towards a subsidy-free environment where it is the value proposition of the product and the consumer connect which you build through your quality, reliability, and aftersales service where we will be able to compete. So we are looking forward to a non-subsidy scenario next year, this year, as I explained to you presently. Coming to the burn part of it, is again, I don't want to make a futuristic statement given our DRHP. But as an organization, as we belong to Greaves, we are very highly cost conscious. And our, I would say, path to profitability is something which is relatively much better. I don't want to have exact numbers on it. And the new products on that, which we have launched, which Nexus, Magnus, Neo, and Reo has been received very well. And they are all profitable at a stand-alone basis. We are building our volumes to meet up with our fixed and variable expenses.

Yes, ma'am.

Yes. On our shareholding post the IPO, I think we will need to wait for the final RHP and other such structures and the approvals concerned. So at this point in time, I would not like to comment on that any further.

The next question is from the line of [ Vineet Bansal ] from [ Pinacle Securities ].

The questions I wanted have been asked, but I have one question left. So you are sitting on a considerable amount of cash. So how do you plan to use that cash in the next couple of years? Do you plan to do any CapEx in the stand-alone business?

Yes. Thanks, Vineet. So over the last 2, 3 years, we have been consistently deploying around INR 80 crores to INR 100 crores of CapEx into the business. All these have gone in adding new production lines, working on automation, improving our efficiencies, debottlenecking, and we will continue on this journey. We will outlay approximately INR 100 crore CapEx even in the coming year for our internal growth purpose. I hope that answers the question.

As the current participant is not answering, we will move on to our next question, which is from the line of Sushant Agarwal, an Individual Investor.

Yes. Ma'am, I wanted to know what components of the electric powertrain are manufactured by the company? And what are the gross margins that can be expected going forward in your electric business considering the battery assembly line that is going to be set up?

Yes. Perhaps I can answer the question, Akhila. Thank you for your question. I think we are very excited about the electric powertrain business. And as Akhila, my colleague mentioned, we are looking at this vertical for significant growth. By electric powertrain, we specifically refer to both the motor and the motor controller. The motor, as you know, is a very critical prime mover, critical component for the entire e-powertrain. And we do these for both the L3 segment as well as for the L5 segment. These are all going to be manufactured. These are being manufactured at Aurangabad. And we have also secured a number of OE clients for…

I'm sorry, sir, you are inaudible right now.

Hello, am I audible?

Yes, you're audible, but we are unable to hear Narsimha.

Yes, sir.

Can you hear me now? This is Narsimha here.

Yes sir, you are audible?

Yes. We can hear you.

Are we done? I mean have you answered? Should we move ahead?

Hello.

Sir, have you answered your question? Should we move ahead with the question queue? Sir, can you repeat your last line? Actually, we couldn't hear you in the end.

Akhila, there seems to be some connectivity issue with Narsimha, I think.

Yes, ma'am, that is true.

Yes. So can I request you to please move ahead in the interest of time?

We'll take the next question from the line of Tushar from MK Ventures.

So the EV market share, we see substantial market share in 2 states, Tamil Nadu and Bihar. So what is constraining us to have a higher market share, let's say, in other states on a pan-India basis, versus a 15%, 16% in these 2 states, we are at about 4% pan-India.

You're right. So our market share in South India and Eastern India are relatively higher than what we are in the North and West. So that's what is our, what do you call it, action plan in terms of developing these markets. And this is one of the objects of our DRHP, where we are intending to send substantial amount of money in terms of our building brand and visibility in the larger cities outside Southern India. So there is an action plan on which we are working on in terms of building our brand and visibility, those states where we are less than 10% market share.

Got it. Sir, can you also highlight some of the qualitative initiatives, let's say, in the areas of maybe defense, aerospace. I see in one of the slides, we mentioned electric mobility -- Excel rather, we are doing some work for defense as well. Just if you can highlight any initiatives around these areas? And also on the hydrogen powertrain or hydrogen retrofitting engine that we are developing, if you can highlight more details around that?

Yes. Sure, Tushar. On the hydrogen, that was more a concept which we had launched in the Bharat Mobility and that we will be looking as an incubating project and also will work with other players in the market. So that is something work in progress, and I think we will have some more journey to cover before we can really come back and see commercial revenue in that space. Aerospace and defense, this is something that we have initiated. Excel does some work in both these areas, and that is a focus area for us in the next year to continue.

But that would be for just the Excel offerings? Or are we looking at developing new offerings on the engineering business for these verticals, ma'am?

On the engineering side, if you remember, some time back, we had got the approvals that are required, and we are now certified to start supplying as a Tier 2 supplier to the aerospace components. And therefore, some work has been done, but these are long-gestation projects and long-gestation contracts as and when we get. So this is something that we are going ahead with. But as of now, it's not something substantial for me to report back.

We'll take the next question from the line of Krisha Kansara from Molecule Ventures.

I had one follow-up question. So, given our target of, let's say, 5x revenue in next 5 or 6 years, that I understand that is organic growth as well as some strategic acquisitions inclusive of all this. My question is more on our existing business. Organically speaking, how can we look at next 2 years, let's say, for our main 3 businesses, which is the engine business, the retail business, and the Excel Controlinkage? What kind of growth can we expect organically from these 3 main divisions of our business?

So Krisha, first and foremost, I would not be able to share a forward guidance, say, for a 1 or 2-year period. What we have shared is the Board's ambition and vision of achieving INR 15,000 crores by 2030. If you take our last 4-5 years' journey where we've really moved out from being a single product company to now having multiple applications, auto, non-auto, being fuel-agnostic, we now have products catering to diesel engine, CNG, and we are doing work in the hydrogen space also. We also have products catering to the e-powertrain for the 3-wheelers in L3 and L5 segments. So the idea has been to diversify the product portfolio, the application portfolio, and also focus on the export markets. And this is really what has been propelling our growth over the last 6, 8 quarters. So this is what a lot of building blocks are in place. And I think we should start seeing better results over the next few quarters.

Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for closing comments.

Thank you all for attending this meeting, and wish you all a very good afternoon and a good evening. Thank you very much.

Thank you, ma'am. Ladies and gentlemen, on behalf of Greaves Cotton Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.