Greaves Cotton Limited ($501455)

Ladies and gentlemen, good day, and welcome to the Q4 and FY '26 earnings conference call for Greaves Cotton Limited. From the management of the company, we have Mr. Parag Satpute, MD and Group CEO, Greaves Cotton Limited; Mr. Vikas Singh, MD, Greaves Electrical Mobility Limited; and Mr. Manish Poddar, CFO, Greaves Cotton Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Parag Satpute, MD and Group CEO, Greaves Cotton Limited. Thank you, and over to you, sir.

Thank you, Davin. Good evening, everyone, and thank you for joining us today on this earnings call. Before I start the formal proceedings for the call, I would like to welcome our new Group [indiscernible]. He's joining our leadership team, and he brings over 25 years of experience across financial leadership, strategy and corporate governance. As we enter this next phase of our growth, Manish's deep financial expertise and strategic perspective will be invaluable. Welcome, Manish.

Thank you, sir.

I will start today by giving you an overview of our performance and the execution on the strategy for Greaves Cotton Limited. I will then hand over to Mr. Vikash Singh, who will talk about the Greaves Electric business. This will be followed by Manish as the Group CFO, giving you a financial update, and then we will open the floor for questions. So let me get started. I am pleased to share that Greaves Cotton delivered another quarter of steady and all-round performance in Q4 FY '26. At a consolidated level, we recorded a year-on-year 22% revenue growth, along with improved profitability. This was driven by disciplined execution, strong demand across key segments and continued momentum in our strategic priorities. I'm also pleased to share that we recorded the highest annual revenue on a consolidated as well as stand-alone basis in the last 10-year period. GREAVES.NEXT, our strategy to build a trusted, innovative and future-ready engineering company, is progressing well. Our focus this quarter has been on consistent execution and translating this strategy into measurable outcomes. Through this, we have strengthened our core business and enhanced the operational capabilities, laying a strong foundation for future sustainable and profitable growth. As I have outlined earlier to this group, our strategy is anchored around 3 areas: Energy Solutions, Mobility Solutions and Industrial Solutions. Let me walk you through the performance of each of these. I'll start with Energy Solutions. The focus here is on strengthening our genset platforms and also expanding our aftermarket and service network so that we can deliver reliable and efficient energy solutions. The overall outlook for India's genset market remains strong. This is supported by infrastructure growth, industrial expansion and an increasing demand for reliable power. In this context, during Q4, our Energy Solutions business continued its growth trajectory, registering 18% growth. The aftermarket business grew by 23%, reflecting the success of the integrated service-led approach we had put in place just a few months ago. We also secured our single largest institutional order worth INR 35 crores. This covers end-to-end delivery, including supply, installation, commissioning and long-term maintenance. This clearly demonstrates our integrated solutions capabilities. For the full year FY '26, the Energy Solutions business delivered a 20% year-on-year growth with the aftermarket segment outpacing at 35%. Additionally, I'm happy to report the recent launch of a new product, a 650 kVA genset, which is based on an engine developed fully in-house by our R&D team. With this, we have further strengthened our portfolio and are able to address a wider range of customer requirements. Now moving on to our Mobility Solutions. This segment includes automotive engines, aftermarket retail, engineered components and associate services. Our strategy here is to build a diversified and a fuel-agnostic portfolio through the strong OEM partnerships. We will continue to invest in advanced powertrain technologies while expanding our aftermarket footprint and scaling the Excel Controlinkage products. Here, too, the auto industry had a good FY '26. It registered a 9% annual growth. This growth was supported by structural tailwinds such as GST 2.0, along with a stable monetary condition. While EV adoption is accelerating, we still see multi-fuel based technologies will coexist for an extended period. Against this backdrop, our automotive business delivered a 48% year-on-year growth in quarter 4. This was driven by strong domestic demand for 3-wheeler diesel engines and the continued momentum we have in exports of the Euro 5+ engines. In the aftermarket business, we sharpened our portfolio focus. The core business remained resilient. We accelerated the retailer engagement, onboarding approximately 350 retailers with a clear road map to scale this to 3,000 by FY '27. At the same time, we exited noncore and low-return segments such as 2-wheeler parts, construction equipment and some select battery and digital platform businesses. This was a deliberate step as part of our GREAVES.NEXT strategy, aimed at improving business quality and margins by focusing on areas where we have a very clear right to win. We remain positive on this business given its asset-light nature and strong margin profile. In our Engineered Components business, which is Excel, we have expanded our product range into the small commercial vehicle segment and also started adding new geographies and customers. This improves diversification and the growth visibility for the business. In addition, within Mobility Solutions, we are also advancing e-powertrain initiatives. I'm pleased to share that we have successfully supplied the first pilot batch of our rare-earth-free motors to one of our 3-wheeler L5 OEM customers and are in advanced discussions for securing a firm order for supply within the year. Overall, Mobility Solutions delivered a 16% year-on-year growth for FY '26. Finally, coming to Industrial Solutions. This segment includes special purpose engines for applications such as firefighting and marine. We continue to scale our presence by leveraging our core strengths in engineering, design and manufacturing across diverse applications. While the macro environment here remains mixed, demand for critical applications continued to be resilient. This segment delivered a revenue growth of 15% year-on-year for the quarter. We have also commenced execution of the defense order secured in the previous quarter and onboarded new OEM customers in the agriculture segment. So this was the performance of the 3 business segments that we are focusing on under GREAVES.NEXT. From a strategic standpoint, though, through our multiyear transformation strategy, we are aiming to position Greaves Cotton as a trusted, innovative and future-ready engineering company. Within this, one of the key priorities is expanding our international business. During this year, we've strengthened and realigned our international team, we deepened our Euro 5+ engine exports through partnerships such as Ligier and expanded our presence across Europe, the Middle East and other markets. As a result of all of these activities, international revenues increased from approximately 9% in FY '25 to 13% of the total in FY '26. During the second half of FY '26, we also made significant progress in strengthening our leadership team, ensuring that we have the right talent in place to drive this next phase of growth. We have continued to invest in capability development, especially in our operations. Some of the key initiatives I'd like to mention. We invested in a dual conveyor setup for our single cylinder engines, which will lead to capacity increase to meet the growing demand. We also deployed a robotic vision-based AI inspection system to enhance quality control, traceability and efficiency at our plant in Chhatrapati Sambhajinagar. We commissioned a conveyorized cable assembly line in Excel facilities in Nagpur. With all of these activities, we are also encouraged by continued customer recognition. We received a letter of appreciation from a global firefighting equipment manufacturer during this quarter. So to conclude, quarter 4 of this year was a quarter of strong execution and meaningful progress across our strategic priorities. As you can see, we delivered healthy growth, we strengthened our portfolio and expanded our global footprint, and we will continue to build future-ready capabilities. We remain confident in achieving growth over the medium term, which we are doing through building on our core strengths, expanding into newer segments and through disciplined capital allocation. With this, I will now hand over to Vikas to talk about the Greaves Electric business. Over to you, Vikas.

Thank you, Parag, and a very good evening, everyone. Thank you for joining us today. At Greaves Electric Mobility, we are logging in our strongest quarter yet in quarter 4. And over the course of time, we have built a focused and differentiated position in India's EV sector, spanning both the 2-wheeler and the 3-wheeler segment through our brands, Ampere, Ele and Greaves 3-wheelers. I'm pleased to share that full year '26 has been a period of good progress for us. As per VAHAN, we have delivered a volume growth of 51% year-on-year in full year '26. Our market share has expanded from 3.6% in full year '25 to 4.4% in full year '26, reflecting sustained market capture. We also achieved approximately 12% market share across 4 competitive states of Tamil Nadu, Orissa, Bihar and West Bengal, which collectively contribute to approximately 23% of the overall e2-wheeler market volumes in quarter 4 '26. We also increased our market share in the Eastern region to approximately 8% in full year '26, up from 5.7% in full year '25. On the product front, full year '26 saw a successful portfolio ramp-up. Magnus Grand was launched in quarter 3 '26 and received the Electric Scooter of the Year 2026 award, continuing Ampere's streak of 4 consecutive industry recognitions across the Primus sub-brand, Nexus, Magnus Grand, and the latest being Magnus G Max voted as the Family Scooter of the Year, affirming the strength and consistency of our product innovation pipeline. Together, we believe that these achievements reflect our conviction in building products that are truly built for Bharat and they can handle different terrain and weather conditions and are well geared to address the Indian consumers' requirements. We launched the Magnus G Max in quarter 4 '26 that enabled us in gaining traction and also announced the introduction of Magnus 6th generation, an upcoming addition to our portfolio designed with a clear aim to take on the ICE scooter segment. We have also been continuously building the Ampere brand. Ampere Nexus set an Asia book of records by conquering the 70 steep hairpin bends of Kolli Hills in Tamil Nadu, and our campaign on this account trended on X for a period in time, validating Ampere's growing brand salience. Our financials reflect our progress. Full year '26 revenue stood at INR 786 crores, up 19% year-on-year, showcasing that volume growth is translating into strong expansion. Our network expansion drove both scale and productivity. Active dealer account grew by 13% and showroom revamps combined resulted in a 30% improvement in per dealer productivity in full year '26. Complementing this, we achieved high aftersales experience service levels with a net sentiment score on social at 93%, one of the highest amongst the EV competition. Turning to our L5 3-wheeler business. L5 volumes grew 17% year-on-year in full year '26 and also once again a strong quarter 4 '26 performance, recording a 31% year-on-year growth. L5, e3-wheeler and 3-wheeler volumes growing by approximately 14% and 17%, respectively, exited the year with 2,300-plus units in quarter 4 '26. Our financing tie-ups continue to get stronger, the latest being Hinduja Leyland Finance, which further strengthens customer access in the L5 3-wheeler segment, providing a boost with a maximum of 95% on-road LTV funding, which further strengthens affordability in the segment, which is a very important enabler for our next phase of growth. We remain committed to deepening our market presence, expanding our product portfolio and building an electric mobility company that aims to deliver value for all our stakeholders. With this, I hand over to Manish. Thank you.

Thank you, Vikas. Good evening, all. As we move forward with the implementation of our strategic priorities, this quarter reflects continued progress that we made. I'm pleased to report the financial performance for Q4 and the full year of financial year '26. During the quarter, our consolidated revenues stood at INR 1,000 crores with an EBITDA of INR 68 crores and PBT before exceptional items at INR 44 crores. The consolidated revenues, as Parag mentioned, increased by 22% year-on-year, while EBITDA increased at 49% during the same period. For the financial year '26, the consolidated revenues for full year was INR 3,437 crores, reflecting an 18% growth year-on-year, driven by broad-based growth across businesses and consistent execution across segments. Our profitability mixes improved significantly during this period with EBITDA at INR 239 crores and PBT before exceptional items at INR 154 crores, growing at 76% and 118% year-on-year, respectively. Likewise, Q4 FY '26 stand-alone revenue stood at INR 698 crores with EBITDA at INR 87 crores and PBT before exceptional items also standing at INR 87 crores. Stand-alone revenue grew 22% year-on-year, while EBITDA increased 4% year-on-year. As an update, during this quarter, the management identified a potential impairment for the value of certain tangible and intangible assets under development. This relates to our investment in an ePowertrain technology, which has not scaled up or realized per our expectation due to the underlying changes in the project execution and customer demand. Resultantly, we have on a conservative basis made a provision of almost INR 16 crores during the quarter. For FY '26, our stand-alone revenue stood at INR 2,365 crores with an EBITDA of INR 320 crores with PBT before exceptional items at INR 312 crores, reflecting a 23% year-on-year growth with EBITDA supported by 40 basis point margin expansion supported by strong demand and cost optimization initiatives. Coming to GFL, Greaves Finance Limited, the total asset under management for the financing business stood at INR 521 crores as on March '26. Our balance sheet continues to remain strong with a healthy cash balance. Our planned investments are completely aligned with our strategic priorities, focusing on R&D and technological upgrade, capacity expansion and digital tools. To summarize, FY '26 has been a year of consistent growth, margin expansion and strengthening our financial position as we laid down the foundation of our next phase of growth under GREAVES.NEXT. During the quarter, we observed a rise in input cost, being highlighted by our peers too, owing to the commodity price increase. While this has created some near-term pressures on the margins, our focus remains on disciplined cost management and maintaining profitability. We remain committed to driving operational efficiency, maintaining working capital discipline and ensuring prudent capital allocation. With that, I hand over to Parag.

Thank you, Manish. So let me give you a brief concluding remark before we open up for the questions. So our forward path remains consistent. We are focused on execution, discipline, profitable growth and strong cash generation. Our priorities are also unchanged, scaling international business, building future-ready capabilities and ensuring disciplined return-led capital allocation. We remain confident in sustaining our growth momentum. At the same time, as Manish mentioned, we are watching the evolving macroeconomic environment and we'll act with agility to mitigate any potential headwinds. The performance for the year reinforces our confidence in the strategy and our execution capability. As we continue to advance GREAVES.NEXT, we will remain anchored to our core metrics and maintain transparent and consistent communication. Greaves Cotton today stands on a strong foundation with a diversified portfolio, a robust operating engine and a clear strategic road map for the future. We thank our investors for the continued trust and support, and we look forward to building on this momentum in the coming quarters. With that, we can now open the floor for questions.

[Operator Instructions] Our first question comes from the line of Nilesh Doshi from Prospero Tree.

Good set of numbers. Sir, my first question is regarding the presentation. On the Page #15, you mentioned that the EBITDA margin is around 13% to 15%. So are you saying -- are you indicating the EBITDA margin at the consol level or the stand-alone level, because we are already earning the EBITDA margin of 13.5% at the stand-alone level? So is it at the stand-alone level or consol level, sir?

Yes. Nilesh, this is Manish here. So these are primarily for the core businesses that we are handling because that's where -- so investee business, of course, have a different trajectory of growth and profitability, path to profitability. These are the existing core businesses that we have, which includes stand-alone and one more -- a couple of more smaller entities, Excel and Greaves Technologies.

So Greaves Electric Mobility is not a part of the core business?

Greaves Electric Mobility and Greaves Finance Limited are part of our investee businesses. There -- obviously, they are completely into different zone. So from a profitability to profitability and from a growth perspective, they are in a different league altogether. The GREAVES.NEXT primarily aspires on the core businesses. So therefore, if you refer to Slide # -- the Slide immediately after the EBITDA margin. So we have the 3 sections of Energy, Mobility and Industrial Solutions, which is forming part of the core businesses. And then you have the Greaves Electric Mobility and Greaves Finances, which is part of the investee businesses. So we are talking about the left section, which is the core business.

Okay. So we would like to generate around 13% to 15% from the core business, and these are our investment activities. Can we consider the -- suppose we even -- we consider the even investment activity, Greaves Electric Mobility, then how long the Greaves will financially support to that mobility business, because that business is incurring the losses? And I would like to -- from the sustainability point of view, I know that the many EV manufacturing are still incurring the losses and Greaves is comparatively the small player compared to the other listed or non-listed player. So what is the own fund still with the Greaves Electric Mobility to sustain that business?

Sure. So Nilesh, I'll start off and then let Vikas do the on the how does he sees the progressing on the Greaves Electric Mobility. FY '26 has shown significant improvement. If you see the stand-alone for Greaves Electric and the consol for Greaves Electric as well, from a minus 30% to a minus 20% EBITDA, so that's a strong growth. And as Vikas mentioned, there's a strong upside on the volumes as well. So there's a clear path to profitability there on. Of course, on a short-term basis, the investments have paid off from a long-term perspective. So therefore, we may have to continue for some more time at least on a short-term basis. But I would let Vikas respond on the profitability and the future aspects. Vikas?

Sure, Manish. I'll just call out a few numbers for you to give you a sense of where we are heading and also a sense of comfort. I unfortunately may not be able to get into too much detail given the disclosure obligations that DRHP filed with SEBI puts on us. First and foremost, we have market share growth. Market share growth means we are fundamentally getting stronger. We've grown from 3.6% to 4.4%. Secondly, we've had our highest ever top line growth. We've had our highest ever reduction in losses. Our loss per unit has progressively fallen by almost half from last year to this year. Again, I'm not at a position to share details with you. We have a very strong increase in footprint. As I mentioned in my update on GEML, besides the 4.4% growth that we're talking, we have an almost 12% growth across the 4 states of Tamil Nadu, Orissa and Bihar, and we also have 8% market share in the region of East. Our products are progressively meeting with recognition and we were voted the best electric scooter progressively. So there again, this is something which is an achievement to be proud of and reflective of market uptake. So broadly speaking, Nilesh-ji, if you were to look at just these few statistics that I've shared with you, we are very confident that we are on the right track, and we hope that we should not have to be looking at funds infusion from GCL in the near future. I hope that addresses your questions.

The last question is regarding the employment cost. Sir, at the consol level, we are spending around INR 45 crores to INR 46 crores on the employment. And at the consol level, it is INR 90 crores to INR 94 crores. It means the subsidiary -- at the subsidiary level, we are incurring as much as the stand-alone level, INR 45 crores to INR 48 crores. Is it not on a higher side because the business, which is the Excel and the Greaves Electric Mobility, they are spending INR 46 crores to INR 48 crores on the employment cost? Is it justifiable compared to the revenue generation?

So Nilesh, maybe I'll step in and maybe let Vikas do the -- so I think inherently, there is a different level of maturity curve of the 2 businesses. I think that's not a fair comparison. GCL, is, of course, as you [Audio Gap]. Therefore, it's a regular cash generator. And therefore, the employment are in line with whatever it needs. GEML -- the Greaves Electric Mobility and Greaves Finance logically are in much -- at a primitive stage with regard to -- from an evolutions perspective. So they have to invest ahead of the business. So therefore, to compare a mature business versus an immature business is a bit of a stretch. Vikas, maybe you want to answer that.

Yes, sure, Manish. And hopefully, we're not at a primitive stage. Nilesh-ji, ratio of manpower to top line was 15% last year, down to 10% this year. I think a single-digit ratio of manpower to top line it seems to be. So regardless of the challenges that are there with the sector and the growth, for a high-growth business, a single-digit ratio of manpower cost to top line is again a good place to be. So I don't think that should be an area of concern for any of us. Again, I hope that answers your query.

[Operator Instructions] Our next question comes from the line of Zaki Abbas Nasser from Nasser Investments.

Sir, congratulations on a phenomenal quarter, I would say. I think your adjusted EBITDA has crossed INR 100 crores for the first time. Two questions from my side, sir. One is on the core business. So do you see this growth trajectory going forward -- I mean, could we consider the Q4 as a new base for the next year in terms of core business? And please throw some light on Excel Controlinkage. And when would Greaves get 100% holding in that as you all had planned? My second question -- do you want to ask me -- or could you answer that first, sir?

This is Parag. Let me answer your first question and then you can ask the second one. So yes, we are also very happy with the progress in the core businesses during [Audio Gap]. So when our plans fall into reality, it makes all of us happy and confident. As you know, during the last couple of quarters, as part of GREAVES.NEXT strategy, I've said that our growth ambition in the midterm is between 16% to 18%. So we continue to hold that. So that was the answer to your first question. Excel also made good progress during this year. Like I again mentioned during my opening remarks, we entered into a new segment. And with the realignment of our international team and the investments we are making, we are starting to also open up opportunities for international business. And your final point there was about the holding. Yes, you're right, we have a predetermined path. The last 20% of the ownership of Excel is planned to be done during Q2, after which we will own 100% of the company.

And my second question would relate to your mobility business, sir. We have done decent numbers according to VAHAN data, I think 6,000, 7,000. I would like to ask at what number would the mobility business break even, sir? And we had mentioned about the DHRP. I think in May that expires, sir. So have we got an extension? Or how does that work? Because I think it's been a year and it automatically expires.

Yes. So I'll take both the questions. The DRHP has been -- all DRHPs which were expiring till 30th of September have been given an extension by SEBI till 30th of September. So our DRHP, which was expiring on 6th or 7th of May, therefore, gets extended till 30th of September. This is keeping in mind the volatile geopolitical situation. This allows us more time, therefore, to get into a favorable market scenario and then the investment committee and the IPO committee to take an appropriate call on timing for the IPO. As regards the breakeven level for GEML, unfortunately, given the constraints of the DRHP, I will not be in a position to make any forward forecast for you. All I can tell you is with a 50% rate of growth, market share growth, products which are being recognized, network footprint expansion, pockets of market leadership or close to market leadership, we should be in a strong position to get to profitability in the near future.

Fantastic, sir. Because -- but the path is there to separate the 2, right, sir? Because if we see our competition, I mean, to name others, although loss is being there, it's doing -- the capitalization is going up. Also, our core business competitor, Kirloskar Oil, is almost touching all-time high. So we are caught somewhere in between, sir. This needs to be addressed as soon as possible.

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

Sir, firstly, like for the stand-alone business, both like sequentially and year-on-year, there has been a drop in gross margin. So is this because of the inflation and the Middle East situation? Can you throw some light on that?

Yes, absolutely. So primarily, it's the Q4 numbers, which you have seen the RMC being on the higher side vis-a-vis Q3 and which is actually reflecting into FY '26 versus '25, where there's a marginal drop. As you know, there has been commodity cycle coming in since March, and that is impacting the profitability. I think that is where this path to [Technical Difficulty] there. Although -- I would also like to mention here that while on the commodity front, we are seeing some pressures, are specifically in aluminum, copper and platinum. However, there is a pass-through mechanism, which we have already activated in Q1. So therefore, we do see some recovery on account of price. Fortunately, the volumes have been supporting us. So therefore, that operating leverage should also continue to help us, B. And C, there have been some cost consciousness led decisions which are being taken up, so which is going to see -- which is going to impact positively on this side. I think that should make up for the -- in the coming quarter and all that. But of course, we stay cautious on how the commodity cycle evolves.

Got that. And sir, for the genset business for Energy Solutions, the 20% growth that we witnessed, can you throw some light on like is it like are we growing faster than the Indian vehicle industry? Are we gaining market share? And some qualitative color on what's driving that. Like that will be helpful.

Sure. I can give you an answer to that. So in the GREAVES.NEXT strategy, we have clearly identified energy solutions as a focus area for us. And then since that time, we have been taking very deliberate actions to increase our business here. And some of those are starting to yield results. I'll give you one example. We integrated our sales and service team and we increased the presence on the ground of our service technicians. We also launched a retail annual maintenance contract program, which we didn't have before. So we have seen during the last few months, our service business has been growing faster than the overall business. So that is one driver of growth. The other thing we also did is we realized that we have a strong right to win in the medium horsepower nodes in applications to do with residential and commercial. We had strong market shares in certain parts of the country, while other parts of the country were under leveraged. So we also increased our sales and distributor presence in those areas, which has resulted in an increase in business. I would say, overall, we are keeping pace with the industry growth and we expect to maintain that and further accelerate our own growth. Some of the new products which we launched this quarter, the 650 kVA, that will start to deliver also new business for us in the coming months.

And sir, as a follow up question, do you have plans to enter into new higher like loads like 1,000 kVAs or higher and like some of the data centers or new applications?

Indeed, that is part of our strategy, and that's why we are focusing on the energy solutions. We are in discussions and we are also working internally. So whenever there is something meaningful to share, I will come to this team -- to this group as well.

And sir, you in the presentation you like mentioned that shares of non-3-wheeler diesel engines is 63%. That is of the auto engine revenue which is like most [indiscernible] in that?

Yes, yes. So within the mobility, the auto engines business.

Okay. So can you again like give some more details on like which are the auto segments and in exports we are catering to which is contributing to this 63%...

I'm looking at the slide you are referring to, the Mobility Solutions. What we state there is we have the L5 3-wheeler auto segment in India, where we are a dominant player in the diesel variety. The overall industry is broken into 40% electric, 40% CNG and 20% diesel. Within that diesel segment, we have a 63% market share, and that actually has increased during this year. So that was on the domestic side. On the export side, this is a new business which we started during the year, which is supplying the Euro 5+ compliant engines to a micro car application. And there, we have a strategic partnership with one of the largest micro car manufacturer in Europe called Ligier. And that business scaled up during this year and is continuing to maintain that trajectory.

So one of the -- so just to add. I think the focus here is that the non-3-wheeler diesel engine is a significant portion of our Mobility Solution itself. So while the diesel engine growth trajectory may not be having that aggressive growth rates in future, there is enough portfolio for us, which is 63% of our Mobility Solution itself, which can grow beyond the diesel engine growth rates. I think that's where we wanted to focus upon as well.

Yes, that's why with -- you can share any -- it also seems to be growing very fast. Sir, on the...

Anubhav, sorry to interrupt, but we request you to please rejoin the queue if you have further questions. Our next question comes from the line of Khush Nahar from Electrum PMS. As there's no response from the current participant, we will move to the next questioner in the queue. Our next question comes from the line of Rajesh Gupta from Krishna Motors.

Sir, a very good number you have got in this quarter.

What is your question?

Sir, I want to know that there is a non-RTO market existing. My question is from (sic) [ for ]Vikas, that there is a non-RTO market is still existing in India in EV.

Yes. Scooter parts.

And the demand of EV scooter that was priced too lower than our counterparts with low speed and low-range scooters. For the Tier 3 cities, these are more popular than our scooters. Are we considering to enter in this segment also? We are having 400 more showroom. And if the low-cost scooter will be came and our margin will existingly increase in further.

It's a very good question. And I'll try and answer it as best as I can given the DRHP limitations. The low-speed scooter segment is a very big segment. It's a high priority segment. We already have a presence in this segment. We have a successful brand called REVO, which is being sold across the country, and we are seeing steady growth in volumes. On top of that, we also see a sharp demand from B2B in the low-speed segments. So we would be -- not we would be, we are looking at this segment very closely, and it would be a critical growth driver for us going forward. So I hope that answers your question.

Because these are getting at INR 30,000 per scooter. This is for a -- a big range of customer you can get.

Yes. I can just tell you that, that segment is being looked at and we are already present, and it's a critical part of our strategy. So we are aware of the [indiscernible] segment...

The next question comes from the line of Khush Nahar from Electrum PMS.

Sir, could you give us more financial details in terms of Excel Controlinkage performance for the full year, maybe the revenue, EBITDA and PAT figures?

This is Manish here. I think specifically, you'll get the individual P&Ls and the financials being uploaded on the website pretty soon. But however, if you see, this is one of the most profitable businesses that we have in Excel Controlinkages with growing profitability. And we have a -- what we can say is futurely -- in future as well, they have a very strong growth trajectory and consistent profitability improvement.

So to add one aspect, within Excel, we have a domestic business and an export business. So the domestic business has remained strong. It grew in double digits this year as well. The export business, like I also shared with the group in the last call, faced some headwinds due to geopolitical situation due to the war in Ukraine, and we have seen a reduction in the growth there. I mentioned in my opening remarks that we have now got a reconstituted and reinvested international team, and we see a lot of opportunity to grow the Excel business in Europe, and we are actively pursuing that path.

And as Parag mentioned earlier, the balance 20% will also be acquired in Q2, and therefore, the noncontrolling interest will also go away and the entire 100% profits will flow into the consolidated financials going forward.

All right, sir. And secondly, could you give us a breakup in terms of percentage revenue we are getting from the aftermarket business on a company level or a segment level?

I'm sorry, I'll not have the details individually. If I have some time, I'll just come back to you on that.

The next question comes from the line of Nirmam with Unique PMS.

Yes. So my question is on the retail and the industrial part of the business.

Sorry to interrupt, sir, but your line is not very clear.

Just one second. Hello?

Please go ahead, sir.

Yes. So my question is on the retail and the industrial part. So both of these businesses are growing in single digits. And in line with the strategy of growing the overall business by 16% to 18%, do you think that these businesses can also pick up the growth? And what is our strategy or how do we see these businesses evolving?

No, happy to answer that question. So in our strategy, we clearly stated that the retail business is a very resilient and strong cash generator for us, but we don't see that growing very fast. So we have aimed to grow at 6% to 8% in the retail business. On the other hand, the industrial business is a number of niche applications where we have a strong position. So there, you already saw during the quarter, we delivered a 15% year-on-year growth. And as we accelerate our product development in that space, we expect it to contribute to the overall growth of 16% to 18% that we have outlined for the core businesses.

Okay. And sir, my second question is on the CapEx piece. So we've outlined INR 500 crores to INR 700 crores of CapEx. Do you have any further details on where will we spend this amount? What products or what segments are we looking at?

So I'll repeat what I also said at the last meeting. So after the revamp of the strategy and launch of GREAVES.NEXT, we earmarked INR 500 crores to INR 700 crores of CapEx. This CapEx will be focused in 3 major areas. The first one is product development. We are getting into new application segments and we are also aiming for international businesses, where our product will be upgraded. So that is one category of investment we'll do. The second one is in capability enhancement, largely in our operations. And once again, as I said during my opening remarks, we have already started operationalizing that. During the last quarter, we invested in increased capacity and automation and AI-based quality check system in Chhatrapati Sambhajinagar, and we also invested in automation in Excel, which creates a very solid foundation for growth. So that's the second area. And the third area where we are going to put the CapEx is helping us to expand into international markets. And there, again, we have clearly identified the geographies where we want to grow, Middle East, Europe. At that time, we had also said that as the geopolitical situation develops in North America, that could also be an attractive market. So we have been working and operationalizing some of those plans during this quarter. So our plan remains consistent and we will deploy the CapEx in these 3 areas.

And...

Nirmam, sorry to interrupt. We request you to please rejoin the queue if you have any further questions, please.

To his earlier question, I think the retail is broadly 30% of the Mobility Solutions business. That should answer the question.

The aftermarket.

The aftermarket.

[Operator Instructions] Our next question comes from the line of Tushar Bohra with MKVentures. As we are not receiving a response from the current participant, we will move to the next question in the queue. Our next question is from the line of [ Devi Bharucha] with Sanghvi Family Office.

Sir, firstly congratulation on a good set of numbers. Sir, my first question is related to your defense order, which you said in last conference. Sir, what type of products that we are delivering to defense sector? Can you please share on that?

Sorry, I did not fully follow your question. Let me just repeat what I heard, and you can confirm. You were asking about the defense order that we received in the last quarter. You wanted some more details on that. Did I hear you correctly?

[Indiscernible] and product, yes.

Especially, the product. Okay. Good. So it is the engine which we are using to repower army trucks.

The next question is from the line of Saket Kapoor with Kapoor Company.

Yes, sir. I'll just put forward my questions and then you please revert. Sir, firstly, I think so we have given a road map of our growth for 5 years of some X number in top line. So taking that into consideration and the current business setup, what kind of growth in the key vertical engines -- or verticals of our engines, the core business, are we looking for the current financial year? And sir, what is the current update on the IPO of our electric mobility? I guess if you have replied it earlier, sir. I've joined late in the queue.

Okay. I'll answer the first question and then Vikas will repeat the answer on the IPO. So we have said that we would go 16% to 18% organic growth year-on-year in our core businesses. So we maintain that. Vikas, you want to answer to that?

On profitability, sir, anything you can comment? How will the profits be aligned in that...

Once again, we have said that we will maintain 13% to 15% EBITDA margins as we scale the business.

And to your question on the IPO, you would be aware that the DRHP time lines have been extended to 30th of September by SEBI given the highly volatile geopolitical situation. So we are watching the situation closely and the IPO committee will take a decision closer to time once we feel we are likely to get a proper valuation for the company.

Okay. Can I add one more question, sir? In the CapEx part, sir, you mentioned about INR 200 crores to INR 300 crores CapEx. Correct me there. I think so we have done only INR 30 crores -- INR 36 crores precisely in the purchase of property, plant and equipment. So when you mentioned this INR 200 crores number, what should we read into it?

I don't think we mentioned INR 200 crores. What we have said during the strategy, in the next 4 to 5 years, we are going to invest INR 500 crores to INR 700 crores.

And how will that split between the years, sir? We have done barely INR 30 crores, INR 35 crores this year.

Right. So as you can imagine, we did a full strategy reset just a few months ago, like 2 quarters ago. In that, we relooked at where we want to invest our CapEx and we have started working with those business cases. During this quarter, what we did was capability enhancement, capacity enhancement in our operations and already started working with the new product development. So you will see that as we go ahead.

So for this year, any number you can share, sir, what we should look forward in terms of CapEx?

I think we will stick to our INR 500 crores to INR 700 crores overall aim for the next 5 years.

And I think what is important is -- beyond immediate CapEx, what is important is that we leverage the existing capabilities with regard to having additional working hours or increased shifts and all that. So once I think we would -- that is an easier part rather than getting into the investment mode early on. So that's something that we need to leave -- then we, of course, we get into the CapEx. But the total number remains static.

Our next question comes from the line of Tushar Bohra with MKVentures.

Congratulations to management for a steady set of numbers. My first question is on the engineering business. If you can highlight qualitatively some of the new initiatives that we are taking in a bit more detail? And especially on maybe contract manufacturing possibilities where we are using our engineering capability to diversify away from the 3-wheeler automotive segment?

Tushar, good to hear from you. Thank you also for your compliments on the results. So yes, like you know, we are actively looking at partnerships with key customers. Our first step has been to with the OEMs that we already work with, such as Ligier, such as Piaggio, to improve our share of wallet with them. Other than that, we have got a dedicated team, which is seeking partnerships for contract manufacturing to leverage the strong engineering and manufacturing capabilities, which you witnessed during our family trip to the plant. So as and when there is meaningful progress, we will share with this group.

Great. Sir, the second question is on the EV side. I believe we started recently advertising on television for the Ampere brand. And also given that because of the high oil prices, there's been some momentum around EV as a space in the last maybe couple of months. So if you can highlight any tailwinds that you're seeing since the television ads went online sometime in Feb, early March. Any positive momentum, maybe any acceleration in market share gain? Or overall, any traction in the EV side that you're seeing because of the geopolitical issues?

Yes, we broke media for the first time in the month of March, and the response has been really very strong. Our volumes have touched new highs in quarter 4. And on top of that, March has been the strongest month ever. On the brand side, our followership on Meta, we are the second most highest followed brand on Meta. We have had 2 media campaigns, which have tracked #1 on Twitter X for almost 5 days. The social comments, sentiments that are coming in on the product are highly positive. We have a 94% positive social sentiment coming in on the customers. Dealer productivity numbers have gone up significantly. We have a 30% improvement in dealer productivity. Across towns and markets, we have seen share growth and we are extremely confident about the path ahead. So for now, I would just tell you that the media plan has been extremely successful. We would look at repeating the media investment once again reasonably soon.

And the market share gains continue into this current quarter, sir? You continue to see traction?

Yes, market share continues to grow, Tushar-ji.

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

This is Sonal Minhas. I hope I'm audible.

Sir, you are audible. Sir, you may proceed.

Sure. Sir, as you've given guidance for growth, EBITDA margins and CapEx, is there also a guidance for return on capital employed and some financial parameters on capital allocation, because I think that is where the previous management and the leadership basically has invested. From a shareholder perspective, the return on capital employed basically for the business has gone haywire. So is there a near term, 2, 3-year plan on where the business would be back to in terms of return on capital employed? And that's the first question, yes.

I think that's an extremely important question to address. I think overall, our -- if you see the net worth at INR 1,619 crores, a big portion of that is into the investee businesses, the Greaves Electric Mobility and Greaves Finance Limited. Obviously, they have a different growth trajectory. And we know that there will be -- some capital contribution should come up in some medium term -- short term, medium term and all that. So that is something which we need to take out from our calculations, A. B, there is another INR 500-plus crores of cash available at the group level, which is basically the -- watches for the future growth and all that. So that is something that we need to -- if you take these 2 pieces out primarily, almost, if my memory recollects me right, something like INR 900 crores goes out of the calculations. So if you see on the core business, there's something like INR 700 crores of capital employed being used and which gives us a healthy returns till date. You're right, maybe in another 2 to 3 years, these 2 pieces on the investee businesses and the cash will be appropriately deployed, and then the numbers come in. But basically, these are the -- from a long-term strategic decisions to grow the businesses to GREAVES.NEXT and to diversify.

Got it, sir. Sir, if I may ask because there has been a leadership overall over the last year. What are the broader parameters which are linked to your KPIs and the KPIs of the people who are at the CXO level? Are they linked to return on capital coming back? Are they linked to growth? If you could just broadly give me some guidelines. That will help us understand this as well.

Yes, very interesting question. As you have observed, we have really strengthened the leadership team within Greaves and we have built a very strong and capable team with very varied experiences relevant to the areas we want to grow in. And the Board and myself in selecting and onboarding these leaders, we have very clearly linked their performance to, of course, growth but also very disciplined capital allocation. And of course, in terms of the returns that they get, they are also linked very strongly to the business results.

Yes. It's a combination [Technical Difficulty]. So long-term incentive plans are there, which are in line with the GREAVES.NEXT strategy, A, and the capital market conditions, as Vikas already mentioned.

Our next question comes from the line of Khush Nahar from Electrum PMS.

So in the presentation, you have mentioned that in the mobility segment, non-3-wheeler is now around 63%, 66%. So do we see this going to 100%, like the 3-wheeler engine will [Technical Difficulty] 3, 4 years down the line? Or it will be a very small portion, say, 5%, 6%? So just wanted some idea on the -- yes.

Okay. No, thank you for noticing that. And yes, the good thing is we have now started developing business beyond the 3-wheeler auto, and that's why we wanted to share that. Having said that, the 3-wheeler auto diesel engine business is also very healthy and profitable for us. We have very strong OEM connections. So yes, the market will start [Technical Difficulty] in a meaningful contribution. And it's a healthy [Technical Difficulty]. We're focused on maintaining that through our OEM partnerships. All our new business development efforts, they are going to this non-3-wheeler diesel area and they're already starting to reposition here to have a cash generating engine, which is helping us fund the new growth activities across and helping us to diversify.

Our next question is from the line of Saket Kapoor from Kapoor Company.

Sir, for the electric mobility business, what are we outlining for the current financial year in terms of the top line and also in terms of reducing the cash losses for the sales? What is our road map for the current financial year?

[Indiscernible]?

Yes, sir. Yes, sir.

Okay. Vikas, you want to take that?

Can you all hear me?

Yes, Vikas, we can hear you.

Yes, yes. So I was just saying that unfortunately the DRHP prohibits us from making any forward-looking forecasts. So all I can tell you is that the past trajectory of growth, market share, top line, reduction in losses, brand, products should be a reflection of what the future looks like. I will really not be in a position to share any further details with you on this account. I hope you understand that.

Sir, we understand the prospect. But as a shareholder, this has been the red ink on the P&L for a sustainable period. We understand that this is a growth engine for us also. So as investors today, we need to understand of -- if you could just give some understanding of when and how can we turn even net positive or even out, just eroding the losses. What kind of time line have we set in, sir?

Saket, sorry to interrupt, but we are held back by the statutory compliances. And therefore, kindly appreciate our limitations to answer this question.

Ladies and gentlemen, due to time constraints, we will take that as the last question. I would now like to hand the conference over to Mr. Parag Satpute for closing comments. Over to you, sir.

Thank you. Thank you for all your questions and also for the positive reinforcements we received about our business result. We'd like to thank you for your continued engagement, trust and support. We remain focused on implementing our new strategy, GREAVES.NEXT, and we look forward to building on the momentum in the coming quarters. Thank you very much.

Thank you. On behalf of Greaves Cotton Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.