Lumax Industries Limited (517206) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '22 Earnings Conference Call of Lumax Industries Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. The statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Deepak Jain, Chairman and Managing Director, Lumax Industries Limited. Thank you and over to you, sir.

Thank you very much. Good afternoon, ladies and gentlemen. I hope everyone is keeping good health. A very warm welcome to the Q2 FY '22 earnings call of Lumax Industries Limited. Along with me on this call, I have Mr. Anmol Jain, the Joint Managing Director; from the finance team, Mr. Sanjay Mehta; Mr. Shruti Kant; and Mr. Ankit Thakral; Priyanka Sharma, our Head Corporate Communications, along with SGA, our Investor Relations Advisors. The results and investor presentation are uploaded on the stock exchange and company website and I hope that everybody has had a chance to look at it. The industry has shown signs of recovery from June onwards. Q2 has witnessed a strong demand. However, some of our key customers are facing production cuts due to the semiconductor chip shortages. We are closely monitoring delivery schedules with our OEM customers. At Lumax, although we are directly insulated from the semiconductor shortage, however, the industry supply chain challenges are also impacting us. I would now like to give you a brief overview of our business at Lumax Industries. The company is engaged in production and delivery of automotive lighting solutions to all segments of mobility. We are also the preferred supplier to OEMs in India and continue to be the market leaders. At Lumax, our strength is customer engagement from design phase, working collaboratively with the customer offering the best technology solutions. Lighting is not only a critical safety component, but also improves the vehicles visual appeal. Lumax with its partner of 37 years old, Stanley Electric of Japan and its team of design engineers work consistently to provide new advanced technologies and design engaging with OEMs at the initial design stage of vehicles. Our new electronics facility at Bawal is in the final phase of completion and the plant will be becoming operational in the current quarter. Also, the capacity expansion in Gujarat is expected to commence operations by the fourth quarter of the current financial year. The company has received LOI for the first maker layout for HVAC panel from one of the OEMs and the SOP is expected in FY '24. The company has also added 2 new customers in its portfolio, namely Matter Motors on EV platform, where SOP is FY '23 and PSA where the SOP is in FY '24. The company has made following new launches during this quarter. In the passenger vehicle segment, the Gurkha of Force Motors where we actually do headlamps and high mount stop lamps. In the commercial vehicle segment, Swaraj PF04, and Ashok Leyland Ecomet. And on the 2, 3-wheeler platform of Piaggio of SR Motard and NUOVO. The Pantnagar plant of the company won the first position in the Supplier Quality Circle award organized by Tata Motors and Platinum award in the National Kaizen Competition under the innovative category organized by CII. And the Bengaluru plant of the company has won the Gold Award in QCC competition organized by the QCFI Karnataka Chapter. The concept of capacity planning and inventory management has taken a dynamic shift post COVID-19 because of the high levels of volatility. We're expecting our order book to improve at solid pace with our new product launches by the OEMs. Now, I would like to hand over the line to Mr. Sanjay Mehta, Group CFO, to update you on the financial performance of the company.

Good afternoon, everyone. Let me brief on the operational and the financial performance for the Q2 and H1 of financial year '22. Operational highlights, the share of LED lighting stands at 34% to total revenue and of conventional lighting stands at [ 66% ] for H1 FY '22. With respect to product mix for H1 FY '22 as a percentage of total revenue, 64% revenue is from the Front Lighting fondling, 26% from rear lighting, and 10% from others. With respect to segment mix for the FY '22 as a percentage of revenue 64% from passenger vehicles, 29% from 2-wheelers, and 7% from commercial vehicles. With respect to financial performance at consolidated level, the revenue stood at INR 453 crores for Q2 as against INR 397 crores for Q2 FY '21, up by 14% as against industry's degrowth of 3%. On half yearly basis, the revenue stood at INR 767 crores for H1 this year as against INR 475 crores for H1 last year. Excluding mould sales, the revenue for Q2 is INR 438 crores as compared to INR 376 crore in Q2 last year. On half year basis, same stood at INR 470 crores as compared to INR 450 crores in H1 FY '21. The company reported consolidated EBITDA of INR41 crores in Q2 FY '22, which is same as was in Q2 FY '21. The EBITDA margin for Q2 is down by 130 basis points from Q2 last year primarily on account of a steep increase in raw material prices, the compensation of which is under discussion with customers. Profit after tax and share of associate is INR 15 crores in Q2 versus INR 7.2 crores in Q2 last year. On a half yearly basis, the same stood at INR 5 crores as compared to a loss of INR 24 crores in H1 FY '21. The CapEx incurred during the half year was INR 14 crores. For the full year, the same will be around INR 170 crores on account of capitalization of new electronic facility and Sanand plant expansion. This is from all from my side. We will now open the call for questions.

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

Firstly, on this PSA order, this is for, I mean, a passenger vehicle model in India or overseas?

This is for a passenger vehicle model.

In India or overseas?

This is basically for the overseas model. You're basically going to be doing a little bit, but they'll be manufacturing it in India.

Okay, okay, this will be EV basically?

Yes.

And you mean to say supply will start in FY '24?

That's correct.

And what could be the size of this order, let's say at peak potential?

Well, I mean, currently, they are talking about a volume of about 18,000 annually.

18,000 annually volume okay, sure. Secondly, on this, revenue from others in the presentation, I think that has seen quite a good ramp-up versus last year and then Q4 also was very high. So which customers are contributing higher to this revenue?

So others -- in others, where TVS is almost around INR 14 crores.

Sorry sir?

TVS is INR 14 crores. We have put others at INR 104 crores, If I distribute that, it includes the TVS of INR 14 crores around; and LAT of around INR 26 crores; JD of INR 10 crores; MG Motors is INR 3 crores; Toyota is INR 5 crores; and Nissan INR 5 crores, remaining others is INR 41 crores. The bifurcation of INR 104 crores in the others.

Which one you said is the INR 26 crores?

Pardon?

INR 26 crores...

INR 26 crores is Lumax Auto Tech.

Auto Tech, okay.

Yes, yes.

This is maybe aftermarket, right?

Yes.

Okay and in the recent model launch like the XUV700, we have any presence in M&M?

On XUV700?

Yes.

So we are basically present not on the lighting solutions.

Lighting you are not there. And lastly, in terms of the RM pass-through based on bit of gross margin pressure that we're seeing. So will the pass-through happen in Q3, Q4, how should we look at it with gross margin going ahead?

So absolutely, there is a lag of about 1 to 2 quarters. So that basically should come in, in terms of the raw material. And I mean, say, we have basically already taken in terms of almost close to around about 2% or so where we have actually requested for the customer price increases.

2% -- okay, the price increase. Okay, but is there any further increase in RM prices in Q3 versus Q2?

The RM prices still continue -- and there are a few RM prices still continue to escalate and I think that we will again be taking compensations with Q3, Q4. We are still seeing a very inflatory trend in the RM prices.

Okay. And lastly, on CapEx side, what would be final number for this year and plan for next year?

The CapEx is expected around INR 170 crores, largely of that Sanand expansion project and the electronics, [ PCB decision ].

They come out this year?

This year, yes. It is capitalized in this year.

Next year, sir?

Next year is around INR 100 crores to INR 150 crores, but that all depends on how the industry grows.

The next question is from the line of Sanjay Shah from KSA Securities.

Wish you all a happy new year here too. My question was more regarding the broad-based industry outlook. What you feel? How do you see the passenger vehicle and 2-wheeler panning ahead? When do you see this chip issues get resolved? We would like to have your view on that, sir?

Thank you, Sanjay and happy new year to you as well. I just wanted to basically say that I think we continue to be challenged by semiconductor shortages as a supply chain globally. As far as our estimate is concerned, I think the next few quarters would actually have that kind of challenge, but that is the new normal. I think our customers will adjust their production schedule. Some of our main customers have seen the ease of basically semiconductors already coming in, and their ramp-up has started in the month of October, even November, primarily because of a particular region, COVID cases being eased out and they are basically -- semiconductor supply starting better from that region. So there is a capacity issue accentuated by COVID issues. If I were to give you an outlook, I mean, so the industry, I think the 2-wheeler will continue to have a muted demand. We are seeing that in one of the major customers of ours and also I'm talking about mostly this financial year as such and also the passenger car would also have a muted demand, but that would be not because of demand, but that primarily is because of the supply chain disruptions. So we see that [ I mean to say ] the next 2 quarters also would actually have certain demand issues and supplies chain constraints.

Got it sir. My second question was regarding -- can you get us some understanding about the future prospects of this new generation what we call it AFS and ADB prospects. What do you see that -- what change comes in and what opportunity lies to us on that side?

So I think in terms of the lighting technology, I mean, say the lighting technology continues to basically evolve. I think from the LEDs, which is already having a good acceptability in the market, there are, specifically on the 4-wheeler segment where the 4-wheeler if you see, SUVs are taking a lot more attraction and traction than the lower segment vehicles and on the SUVs, I think these new technology of lighting, be it AFS, be it ABD, be it protector systems, that basically will play an important role. We already are in discussions with most of our customers. As you know, lighting is a long lead time and advanced lead time item. So specifically on pass cars, which we are talking about 2 to 3 year sense, you will see all these technologies coming in. Challenge would be that it will be a mix of import as well as then localized technologies. The electronics facility what we have put in, which is basically for the localization SMT that would help us in also further localizing these technologies.

The next question is from the line of Hasmukh Gala from Finvest Advisors.

Yes, congratulations for good set of numbers. Sir, these new technologies which you talked about, does Stanley have them?

Yes, absolutely, Hasmukh, Stanley has that and we are also in discussions with them for basically adapting these technologies for the Indian affordability price. So Stanley is definitely a player on that. We've also mentioned that we have opened a new office in Czech with basically a team, which is basically again Lumax Industries invested in the Czech design office capabilities and this is primarily also to substantiate engineering localized development of Lumax for these new technologies which are coming in.

Okay, sir. Sir, the current year, we said that our CapEx will be about INR 170 crores. Can you give a breakup as to how much you will be spending on the electronic facility?

Electronic facility is around INR 80 crores to INR 85 crores and that of other Sanand facility and [indiscernible] CapEx. I'm talking about the capitalization.

Yes, capitalization and next year, we will have about INR 100 crores to INR 150 crores.

Yes, depending on the industry cycle and all.

I think we have been very prudent in terms of our capacity investments. So fundamentally, in terms of the investments, which we had to do in the expansion primarily on Sanand as well as in the electronics, that's already been done. What you'll see is now the capitalization. I think in terms of cash flow, I think we probably would be more attuned to a lesser capacity expansion given basically the variability. So we don't see looking into the order book and the capacities we have to have any very strong expansions on that. We want to first optimize our current capacity utilization.

Right, also looking to the current scenario and the supply chain issues faced by most of our OEMs, do you think that in H2, we can more or less replicate what we have done in H1 or slightly better? Do you think that possibility is there in terms of at least top line?

I think you have to understand that Q1 was actually COVID 2.0 impacted. So if you look at H1 per se, I'm definitely sure that H2 will be much better than H1. That is for sure. I think there will be a high double-digit growth, if I just compare it with H1. And I think we also would expect that there should be some ease because supply chain disruptions do also play on efficiencies and other cost pressures. I think that will lease out because we are seeing a better supply chain kind of adjustment given the current shortages.

Okay. So in terms of our EBITDA margin without other income, do you think if we can have double-digit of about, say, 10%? Or will it be below that level?

No, I think if you see historically, I mean, say, we have had 7%, then we have had 8.1%. Now we are basically at about 9%. I think we would basically endeavor to basically be at this similar level, which basically you have seen in Q2 as such.

Okay. Around 9% as of now. Even for full year also, we can sustain that level?

We would like to sustain that, yes.

Yes and sir, last question from my side, how much is the gross debt because we had about INR 425 crores as on 30th of September. So have you fully drawn everything you wanted for the CapEx or there will be some more borrowing will be there?

So we have taken INR 80 crores for the expansion projects as a long-term loan and if I add the working capital of around INR 300 crores, the total debt is around INR 388 crores or INR 390 crores as on 30th September.

And there are some leased assets also.

Pardon?

Leased assets. Assets taken on lease. I was adding that also.

No, no. I'm talking about the debt which we have taken from the bank or the financial institution, which come as a debt in my book. That is the normal entry of that asset on lease et cetera.

Yes. So then INR 380 crores, by end of the year, do you think it will be similar or will it be more than that?

I think we'll be able to maintain at this level or rather improve it.

The next question is from the line of Bhaskar Chaudhry from Entrust.

Mr. Jain, just one question, when do you anticipate that you'll hit the earlier peak revenue, which is about INR 1,800 crores, INR 1,850 crores. Do you anticipate hitting it again in FY '23 or do you think it will shift to FY '24?

So let me understand the question. You're saying that when do we anticipate the peak revenue which we did in 2018/'19, when and which fiscal year we would hit that? Is that the question?

Yes, yes, that's the question.

Yes. So I think -- I mean, say, again, it's a tough question because, I mean say given the visibility and different, different kind of disruptions, but we do -- would like to hit it basically in the next financial year. I think if you look at our just 1 quarter performance multiply by 4x, I mean, so if you see that basically would give you closer to the peak revenue, which we hit in '18/'19. Of course, there is, I mean, say, quarter-on-quarter disruptions. I think next year should be a much more robust year closer taking us -- inching closer towards the '18/'19 revenues.

Okay. And in terms of the composition of LED lighting vis-a-vis conventional. So obviously, the events of the last couple of years have kind of impacted that journey, but when do you see -- you know earlier, a few years ago, I recall that there were talks about you moving to that 60% number. So internally and in your long range planning or when you have discussions at the Board level when do you see that number actually kind of converging to 45%, 60%?

So I think, obviously, we had been doing at a 60%, 40% level. Today, it's about 35%, 65% level. I think our outlook remains that we want a 50%, 50%. I think I've mentioned in the previous calls that the new developments what we are doing, it is some element in lighting, both on tail and head is basically LEDs. We expect that next 2 years, I mean, say, we should basically hit that 50%, 50% level. Also, you have to see that very closely that in the market, the bottom of the pyramid and the 2-wheeler sales have actually gone -- impacted in terms of demand and I think the customer may basically look at introducing new technologies to entice more customers, lighting being one of them, is basically coming in. So I think we are pretty hopeful that irrespective of how the market demands change, the LED attrition and LED adoption will continue to increase.

Okay. Understood. And one last question is, when do you see operating leverage start to play out because the earlier participant also asked you that question, but in terms of margins, when do you actually see double-digit margins in the business and [ investing ]. So again, from your long range planning, how are you viewing the margin target say for the next 3, 4 years, if I would ask, short-term, there is obviously uncertainty, but on a long-term basis, how do you view that journey?

This is Anmol Jain. So I'll take that on the margin front. I think if you look at the margin currently even in quarter 2, probably, we are operating at a double-digit had it not been for the raw material price correction because we're still awaiting certain price amendments from our OEMs, which would come in the subsequent quarters. So if I look at Q2 stand-alone, clearly, we're still operating at a double-digit margin. Going forward, I think the next, let's say, in H2, we should definitely fare much better compared to H1 purely because of the volume traction as well as certain raw material price gains, which we anticipate to get from the customers. And going into the next year, I would say that definitely we should be expanding our margins further when the top line growth also expands. And given, let's say, more 2 to 3-year horizon, I think I have always maintained that our endeavor is to inch closer to a teenage EBITDA, like a teen -- 13% EBITDA also, but it would entail at least a few years unless until we get there, but I think clearly, the road map is clear and I hope that going forward, quarters and years ahead, we only kind of follow that same path in line with our 3 to 4-year goals.

[Operator Instructions] The next question is from the line of [ Ronak Jain from Jain Capital ].

A couple of questions from my end. One, LOIs received in HVAC as mentioned in the press release, the SOP is expected in FY '24. Are we expecting any other delivery in HVAC prior to that period?

Your line was not clear. Could you just repeat the last sentence? I understood that HVAC panel, then what did you say on the last point? What was the question?

So are we expecting any other delivery on the HVAC prior to that period?

On HVAC panels, no.

Okay. Secondly, what is the value of new launches made during the quarter?

The value of new launches?

Yes.

I think I don't have that figure with me right now. I'll send it out to you.

The next question is from the line of [ Raj Joshi from E-Securities ].

Yes, sir. Can you provide some guidance on the H2 numbers in terms of top line and margin, considering the prevailing semiconductor scenario?

For the full year?

Yes, sir, for the H2 sir.

So if I were to look at quarter 2 stand-alone, the company did a INR 450-odd crore revenue and I do expect that quarter 3, quarter 4, hopefully, we should have a similar trend continuing. Obviously, Q1 was a much lower number because of COVID 2.0. So I mean, if I were to give you a sense, I would expect at least close to around another INR 850 crores to INR 900 crores revenue for H2 assuming that the similar trend continues in terms of the production ramp-up because as Deepak had mentioned earlier, the semiconductors, most OEMs have started ramping up in Q2 onwards because of the semiconductor shortage, they seem to have their supply chain now covered.

Okay. So sir, my next question is, what are our expansion plans in near future? And what is our long-term lights and other product diversification ratio?

So I think the company has taken during the corona period I mean substantial investments. So the investments have been primarily in the expansion of the Sanand facility, which is in Gujarat, and also on the expansion of the electronic facility. On the near term, we don't see any further expansions because the company is quite poised and has basically made the technology as well as Capex, OpEx investments. Now we're looking for basically a good pull from the customers so that we're able to utilize it. In terms of diversification, I mean say, although the company is primarily to lighting, we have basically secured orders for basically HVAC panels with Stanley also manufacturers globally and that we've already secured an order, which will start basically -- the SOP in FY '24.

Mr. Joshi, does this answer your question?

Yes, yes.

The next question is from the line of Hasmukh Gala from Finvest Advisors.

Sir, can you just tell us what is happening in SL Lumax.

In SL?

In SL Lumax.

Yes, sure. I can give you -- I'll tell...

SL Lumax financials for Q2 was -- the sales was around INR 511 crores with EBITDA margin of 5.2%. And if I accumulate the H1 performance, it is around INR 973 crores of the sales with EBITDA margin of 3.7%.

Okay, and how much is 3 point how much sir?

EBITDA is 3.7%.

3.7% EBITDA okay. So sir, the best point of view, how do you think Hyundai and Kia both put together will shape up because I think that Hyundai has been taking a lot of initiatives going by the ads and the articles which come in the auto magazines regarding some setting up some sort of a customer-friendly interface and things like that. So how do you the see the future for SL?

I think see SL is basically our Korean partner and catering to Hyundai and Kia. If I were to merge Hyundai and Kia volume and see how they have performed. I mean, so they have definitely been one of the second largest beneficiary in terms of market share gain over the last 2 years, the largest probably being Tata. And I think we continue to enjoy a very, very solid and strong partnership with Hyundai/Kia as we are the dedicated source to them for lighting, for trim parts or even shifters and mirrors. So that's why, I mean, so you see there is a strong performance. However, as I have always mentioned that SL Lumax is a global account with SL for these 2 products. So there is always basically a standardized profitability given basically the growth. So we are very bullish about it and the company has also invested for basically Kia Motors on that expansion.

Okay. That's right. So now looking to the customer-wise breakup which you have given, the Maruti Suzuki has gone on record to say that also SUV segment has been overshooting as compared to the lower cars, the small cars et cetera, they don't want to vacate that space. So as the other OEMs are getting more towards the SUV et cetera, how do you see our customer composition changing over the next 2 years like in this particular quarter, Tata Motors has done so well. So what is your feeling about it?

I think it's a very good question. I think if I just look at it, we are very fortunate that in our Top 5 customers, apart from Maruti Suzuki and the 2-wheeler players, #4 and #5 are Mahindra & Mahindra and Tata Motors and both players are basically the largest SUV manufacturers. I'm not taking basically Hyundai and Kia because Hyundai and Kia we cater to basically through SL Lumax. So if I look at from a very clear-cut market strategy and market share consolidation, we have basically Maruti, we have Hyundai, we have Kia, we have inroads with Mahindra and we have inroads with Tata, which are basically the current Top 5 players in basically the country. Now obviously, someone's gain would be someone's loss. Today, it looks as if the SUV is extremely bullish and you are right, that Maruti Suzuki has made some statements in the media. We continue to engage with all our customers diligently. Maruti, still we believe will continue to be our #1 customer just because of the scale of Maruti is almost 2x or 3x than what basically the other 2, 3, 4 players are, but the strength shifting, we are monitoring primarily I think it will drive the technology change, which is the lighting because SUVs do demand a higher technology or higher value-add on lighting. As you saw when basically, the AB segment started to move towards C segment. That means the entry cars basically of Alto, which we were also 100%, started to move to C segment, you saw that lighting also value went up. We are also very hopeful the lighting value will keep on going up when basically you talk about the SUV. Case in point, I just want to also elaborate, MG Motors. Now MG Motors is a new basically entity for Lumax as a new customer. I think we are very, very bullish. I think that also has, in the next 3 years, a potential for Lumax to become its Top 5 customers.

Correct. Okay. For new lighting technology which you talk about, how much time it will take to see and start manufacturing lighting which might be present in the SUV and some high-end vehicles. How much time it will take?

So Hasmukh, irrespective of whatever type of technology, lighting basically takes at least 2 to 3 years in terms of a development cycle and so we would have some visibility on basically say FY '24 sitting currently that what are the product launches coming in. Now there could be, let us say, a 6 months plus/minus delay some customers have had. We have seen that in recent past, especially more so in the corona times when basically customers have delayed their launches, maybe because of chip shortages, maybe because of demand outlook, all that, but I think as a lighting product, it is an early advanced program. It takes 2 to 3 years. So we have a good visibility what kind of product technologies will be coming and entering into the market.

Okay. So in view of this, do you think any major shift in the competitive position of the different players who are there like ourselves, Minda and other?

We continue to -- will be taking the market leadership position. We will continue to do that in the next 3 years or so and that's what basically our outlook is. Again, I would like to repeat that a lot of the competitions are more specific towards one market segment. There are very few who basically cater across all market segments. The new growth opportunities, apart from the pass cars, 2-wheelers, what we already are currently playing with and have basically the customer connect is on the farm equipment segment, where basically a lot of new lighting technologies has come in. We see that in that segment also Lumax will basically in the next 3 years become a clear winner as market leader on that particular segment. So I think this is where we continue to play out and of course, we do get advantage of Stanley being there as a partner, which basically gives us and provides us the technology.

Correct. Sir, one question for Mr. Mehta. Last time, you had said that in current year, our effective tax rate will be around 35%. So do you still hold on to that for FY '22.

[indiscernible] the effective tax was 28.5% and I think it is around 28% to 30% for the year-end also.

Including deferred tax liability?

Yes.

The next question is from the line of [ Nidhi from Emkay Advisors ].

I just want to understand that with respect to [Technical Difficulty] plans, could you throw some texture on how much advantage we will be able to derive on our margins and how long will it take us to reap these benefits with respect to margins?

You're talking about the investment plans, ma'am?

The backward integration plan.

The backward integration plan. Yes, so I think as Anmol had said that I think our endeavor is to basically go into the double-digit area and further basically solidify in the next 3 years or so. I think as and when basically more and more localization, adoption of LEDs will start coming in, you will see that basically gains happening. Also, we see that the supply disruptions are easing out and hopefully, we would be able to then scale up our revenues faster with new product launches. So we are definitely bullish about basically having a better margin improvement given that the supply chain disruptions ease up.

This really helps. Also, are you facing any difficulty in marketing our LED products in this overall price rise scenario for vehicles?

Well, LEDs, as I said, lighting is a long lead time item. It takes for a 2-wheeler, almost about 6 to 8 months, even a year sometimes on 2-wheeler. On 4-wheeler, it takes almost close to 2 to 3 years. So I think we are seeing that there is a healthy adoption of the LEDs. Our outlook of basically a 50:50 revenue remains intact in the LED vis-a-vis conventional and since we are an OEM play, lighting technology largely also depends on what basically as a vehicle architecture, the OEMs want to give out. So I think that way, there is I think no change in our outlook on the LED adoption.

Okay, great. Can I ask one more question. So you mentioned about your organic LEDs in the plan for 2025 onwards. Can you give some more details on that particular product, please?

I think there are various types of LEDs. Again, Stanley is one of the partners is one of the very unique players who also manufactures its own LEDs. So irrespective of what kind of OLEDs or I mean, say, the regular conventional LEDs or any of the new technologies on projectors come in, we are pretty adept on actually having those all technologies coming in. The company keeps on consistently doing technology roadshows with basically our key customers to show that these are the technologies available. And as I said, that the OEMs, a lot of the lighting interventions what they want to introduce to the market is also dependent on the customer technology road map. So I think that way, as and when the technology adoption happens, we have invested in the electronics plant. So that would actually cater to the back-end on new LED technologies as well.

[Operator Instructions] The next question is from the line of Jinesh Gandhi from Motilal Oswal.

My question pertains to the PLI scheme. So is there any play as for lightings in that for you or it doesn't get covered on the PLI?

So PLI scheme has been notified on 10th November. If you see, there were almost about 300 requests. So as far as we understand right now that the lighting is not part of basically the PLI. Primarily what I understand is that the government sees it's a localized product already and they are basically looking at the advanced technologies. So as of now, we don't see PLI for lighting. However, obviously, from the other schemes like MSEPS and other electronic [ figures ] we are seeing some advantage -- incentive advantage will be coming into the company.

[Operator Instructions] The next question is from the line of Hasmukh Gala from Finvest Advisors.

Yes. Sir, I didn't get the breakup of INR 104 crore properly. If you don't mind, can you repeat it?

Yes, so Mr. Mehta will basically give you. Just more or less, this is for Q2, the INR 104 crore. I think LAT is basically INR 26 crores. TVS is about INR 14 crores. John Deere is INR 10 crores. MGM is -- MG Motors is INR 3 crores, Toyota is INR 5 crores, Nissan is INR 5 crores and in that others are INR 41 crores, giving a total of INR 104 crores.

As this was the last question for today, I would now like to hand the conference over to Mr. Deepak Jain for closing comments.

Well, I would like to thank everyone for joining on the call. I'd also like to say that we remain confident on the growing prospects of India and the automobile and the auto component industry. I hope we have been able to respond to your queries adequately. For any further information, kindly request you to get in touch with SGA, our Investor Relations advisors. Please stay safe and healthy. Thank you very much.

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