Precision Camshafts Limited (PRECAM) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the earnings call of Precision Camshafts Limited to discuss financial and operational performance of the company for Q3 FY '25. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Yatin Shah, Whole-Time Director Business Development of Precision Camshafts Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, ladies and gentlemen. I'd like to thank you all for being a part of this Precision Camshafts Q3 FY '25 Earnings Conference Call. In case of any detailed questions related to finance, please email us your questions at [email protected], and we shall provide you answers in a reasonable time. We have submitted the investors presentation for the quarter 3 to stock exchanges on the 24th of February, and the same is available on our website. Investors are requested to refer to the same. Precision Camshafts Limited has reported a stand-alone revenue of INR 143 crores in the last quarter and a net profit of INR 5.3 crores for this quarter, down from a net profit of INR 13 crores in the previous quarter. This decline in profitability is primarily attributed to the decrease in sales and other income, coupled with slightly higher operating costs during the period under review. However, our 2 new manufacturing plants in Solapur are nearing completion and will house the new assembled camshaft facilities as well as the new EV production lines. We are happy to share that the company has started serial production of assembled camshafts for 1 Indian OEM and will start second program with larger volumes in the coming year. Also, important to note that PCL has not lost any business or any share of business from any customer during this time as well. Our subsidiary MEMCO has reported breakeven margin during the quarter under review. MEMCO's total income for the quarter was INR 10.7 crores with a net profit of INR 0.05 crores. This decrease is mainly attributed to a decrease in sales due to the industry slowdown. We faced challenges with our e-mobility subsidiary, EMOSS, in the Netherlands. The revenue dip is largely due to the severe economic slowdown in Europe along with the pullback on subsidies due to the ongoing conflicts. This has disrupted automobile production and trading of critical resources, and this geopolitical instability has caused a shortage of auto parts and increased volatility in vehicle prices as well. EMOSS earned a total revenue of INR 12.7 crores in the current quarter compared to INR 17 crores in the previous quarter. MFT Germany has managed to stabilize its operation despite this challenging market condition. For the current quarter, MFT recorded a total sales of INR 28.5 crores, and the company continues to prioritize on diversification of its product portfolio with non-engine components. Turning to the EV business in India. We are deploying electrified vehicles across logistics, e-commerce and waste management sectors. Commercial vehicles have started -- commercial sales have started since August 2024. However, the ramp-up of volumes has been slower than anticipated in India due to various reasons. In addition to the small commercial vehicles, PCL is actively working on a few customer-driven projects for heavy vehicle electrification, which will be disclosed at a suitable time in the future. Times are extremely challenging in Europe, which has not only affected the local subsidiaries in Europe, but also export sales from PCL and MEMCO to some extent. However, PCL continues to navigate both opportunities and challenges with resilience. We are committed to delivering value and driving growth across our diverse portfolio. Coming to the financial performance, starting with the stand-alone business, total income for Q3 decreased by 21% quarter-on-quarter to INR 143 crores. EBITDA margin was 10.9%, and PAT was 3.7%. Quantity of cast camshafts sold decreased by 13%, and quantity of machine camshafts sold decreased by 13% as well. Coming to the consolidated numbers. The consolidated income decreased by 18% quarter-on-quarter to INR 195 crores. This was largely driven by a decrease in sales at MFT and EMOSS. Profit before tax was minus INR 4.5 crores and profit after tax was minus INR 6 crores for this quarter. And EBITDA margin on a consolidated basis was 10.83%, and PAT was minus 3%. Coming to the revenues of our subsidiary companies. Revenue of MEMCO was INR 10.7 crores. Revenue of MFT was INR 28.5 crores, and revenue of EMOSS was INR 12.7 crores in the previous quarter. With this, I would now like to open the floor for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Gautam Rajesh from Leo Capital.

My question was regarding the EV business. What is the status for the EV business in India and Europe? And what would be your outlook for both in India and Europe over the next 12, 15 months for this EV business?

Look, I think the [ EU ] business is struggling a lot, not just us, but across the board, across the industry. There are severe headwinds in Europe, mainly due to a sudden decline in demand as well as a lot of subsidies that were there from various countries that have been pulled back due to the ongoing conflicts in Europe, including higher interest rates and so on. So there is a slowdown. Good thing here is that we have not lost any customers. The customers are still partnered with EMOSS for a variety of new projects. It's just that time lines have been deferred and deferred significantly. There's not 2, 3 months, but probably a year. And at this point of time, the best guess of recovery would be towards early part of next year. Until such time, I think...

CY '26, sir?

Yes. So until then, I don't think we see much recovery there in terms of revenue or profitability because of the conditions there. And there are several other companies in our line of work that have gone belly up in the last 6 to 8 months. That indicates the kind of market conditions there are. But we are still staying afloat with the customer orders and some of the consistent revenue that we have. But we should not expect too much of an upswing from here at least for the next 9 to 12 months. That's on the EU side. In India, I think Tata ACE electrification projects have been picking up. We have some good customers. We are in discussions with a variety of customers who are in the solid waste management, biomedical waste management as well as e-commerce and logistics. But again, this is a complicated business of doing retrofitment in India, as I have mentioned in the past, where there is state-wise regulation, there is a lot of complication when it comes to actually doing the conversion of older vehicles and so on. But while we have the certifications and everything in place, it is a more time-consuming process to convince customers that this is the right thing to do for their fleets and so on. But we are seeing a slow uptake and slow demand picking up over the next few quarters, let's say. I think the most interesting part of what we are doing right now is the heavy vehicle electrification, which is another bigger...

Yes, special [indiscernible]

Yes. So we have already a few customers who are leading -- who are driving these projects for us. So there is clearly demand there. Customers are paying for the initial vehicles as well. But this is an ongoing project right now, and it would not be correct for me to disclose too much more before it is done. And we expect that in the next 2 to 3 -- 2 quarters or so, we should have the first few vehicles on Indian roads. So this is -- this will be a significant milestone for us. But we will -- I will disclose more details as we go down this road.

Yes, sir, for the LCV segment, people are very like taking time getting convinced by the product. So do you see any form of pick up anytime soon in the next, let's say, 12 to 15 months? What would be your...

Yes, there are a lot of customers that we are engaged with. So as I said that whether it is e-commerce, logistics or waste management, these are the 3 big sectors, let's put it like that. The market is very, very fragmented. There are a lot of driver owners who are using these vehicles, and then there are the larger fleets. At this point of time, our focus is on the fleet owners simply because it is easier to manage those type of customers, easier to have charging infrastructure, service infrastructure and so on. And so we see -- we definitely see that there will be more demand coming up in the next 2 to 3 quarters. I just can't put a number to it today.

The next question is from the line of [ Rajkumar Damani from 369 Advisory Services ].

So continuing on this previous question, I understand you do not want to give the numbers for the quarter or the forward order book, can we know how many cities or areas we have already done this ties-ups or infrastructure tie-ups that you were talking about?

Of course. So we are -- we have already started supplying vehicles in 7 to 8 cities across India. So whether that is Calcutta, Delhi, Hyderabad, Solapur, Pune, Mumbai, et cetera. So there are a variety of cities that we are -- we have delivered vehicles. And for a variety of different applications, whether like I said, waste management, logistics, e-commerce and so on. And we are continuing to build on this. And just as I said, there are -- these contracts for the -- especially for government operations are run by private fleet owners, and they are the ones who require the convincing and require the electrification. They are the ones who would electrify their fleets and not the government body directly. So we are in touch with several such fleet owners across about 20 cities -- 20 to 30 cities across India. And so we are in the process of converting these. A lot of it depends on where this contractor is in terms of the timing of the contract, the number of years left in the contract with the government and so on. So it's a balancing game that we have to play, but I think we are engaged with the right companies across India, actually.

Okay. So you will be developing the infrastructure there? Or it would be only the retrofitting at their place or the...

It will be only the retrofitment. We provide charges with the vehicle itself, so you don't need to create charging infrastructure. You just -- we provide a charger with every single vehicle that plugs into a regular 15 amp socket. And the service infrastructure, we have partnered with a company which has locations across India. They are trained to do EV servicing. And so basically, they will be the on-ground partner for service and repairs.

Okay. And one more thing on the new capacity, which we wanted to understand is, there's 2 new capacity that we are talking about. How much is the order book that we already have? Because as you told the sales numbers have already reduced this quarter due to the slowdown in the auto industry. So how do you see this capacity being forward order book -- with forward order book basically?

Yes. So this is for the camshaft side, right? So what -- obviously, the industry across the board has slowed down, including India. So the effect of that is obviously in the numbers that we present. What we are doing is we are adding capacity for new projects that have been awarded to PCL, which has SOPs or start of production in either late 2025 or 2026. The good thing about these projects, 2 to 3 different projects, these are all running engines with the Indian OEMs or international OEMs, which are substitution to the existing supplier. So it's a running product. It's a running engine for which we are coming in as a replacement source for camshafts. Mainly in India, it's an import substitution. So it's a very good opportune time for us to add the capacity and get this new business without really having the risk of knowing whether this engine or car platform will work or not because it's a running part.

Okay. So when you told in the last quarter that the capacity is around 70,000 to 80,000 per month, so this capacity will be fully utilized you are saying?

Yes, in the next 1.5 year or so because the capacity is not created yet. The plants are ready. The physical plants are ready. The capacities, in terms of the machines and so on, is being created over the next 8 to 10 months, and then the productionization will start.

And can you give a time line on how this capacity is going to build up let's say, in next 2 quarters and 4 quarters when...

No. The capacity will be built up in the next 3 to 4 quarters, like I said, 8 to 10 months roughly. And then it will be the serial supplies from after that.

Okay. And one more suggestion. If we can have a segmental breakup of the revenue in terms of the machining and basically, in the camshaft business also and probably the retrofitting business in the top -- in basically in the report -- the quarterly results, so it might give us a proper picture of how things are going on basically.

Sir, we already provide a breakup of machining and casting camshafts in our investor presentation, which is available on the website. The only thing that we don't include right now is the retrofit business, but we will start. I think we will start doing that in the next few quarters once the volumes are there to provide that.

The next question is from the line of Vipul Shah from Sumangal Investments.

Yes. So my question is regarding drop in volume of machine and casting camshafts. They've dropped substantially, 13%. We have not seen that type of growth in overall passenger vehicle sales. So what's the reasons? Have we lost any orders, market share?

Vipul ji, as I mentioned in my opening speech, we have not lost any orders or lost any share of business or market share with any customer across the world. But if you look at the individual geographies that we supply to and the individual OEMs that we are supplying to, this is a clearly derived demand that we supply on. So because there has been a significant reduction in volumes, especially in Europe, that has had an impact. Of course, in India also, while we are a major source to almost all OEMs, a flattish sales or a slightly reduced sales in the quarter ending December because typically, most OEMs don't want to carry stocks forward and so on. This is the reason why there has been a reduction in sales. And it is not because we have lost any business or lost any market share.

So can we come to the conclusion that the major drop is due to European business, means can you quantify the drop in percentage terms in Europe?

I don't have those numbers with me, but I can have our team share it with you. But if you ask me in general, the Indian market has been flattish. Europe has significantly reduced. Brazil and Mexico have also slowed down significantly, and U.S. is more or less flat, and Korea and Uzbekistan are more or less flat. So if you look at the overall picture, Brazil, Mexico and Europe, reduction has been the main contributor for the reduction in sales.

So what is our domestic versus international split, Mr. Karan?

50-50, give or take right now.

So the domestic 51% is flat, right?

Flattish, yes.

And regarding our performance of the 3 subsidiaries, Mr. Karan, they are not scaling up either in revenue or profitability. Don't you think that it is time to have some hard look and take some hard decisions regarding this? Or you are still hopeful that over the long term, they will create value? What is your view?

Sir, I think, of course, we have a hard and rational look -- unemotional look at such investments and such subsidiaries. But as you can imagine, in the current time that we are, especially in Europe, now is not the time to look at any sort of disinvestment, if that is what you are pointing towards because this is a market where companies are going bankrupt left, right and center. Today, it is, I think, we're in a fortunate position that we have an order book for customers at MFT and EMOSS, which is sustaining the business. Of course, it is not where we want it to be. We would have preferred that a lot of the contracts that are -- that have been awarded would have been scaled up, would have continued as planned and so on. But our focus right now is to make sure that the organizations are self-sufficient, that they are not leaning on to PCL for any kind of financial support, which they are. They are -- we are scaling down the operations to fit the current order book or the business perspective that we have. But of course, we will look at -- we look at this critically. It's not...

So over the last few -- means for quite some time, we are having healthy profitability at PCL stand-alone level and which is being eaten away by all the subsidiaries...

Yes.

So I think this is really worrisome and Board should look at this.

Right, sir. We are looking at it. I think if we look at profitability, especially at EMOSS over the last 2, 3 years, it was profitable on a stand-alone basis, but the current conditions in Europe have basically caused this situation. It is -- a lot of these factors are beyond our control sometimes in terms of what the customers want to do, what government subsidies want to do, what kind of grants will be available and so on. And everybody is facing it. So if you look at the general status of all the companies in Germany, in Netherlands and France and so on in Western Europe, it's a very difficult position.

And lastly, regarding our new plant which is coming up, it is mainly for assembled shaft, right, sir?

Yes, mainly for machining of assembled camshafts, yes.

So what type of value addition we get in assembled shafts as compared to normal casting?

Similar value addition. I think the only difference here is that instead of casting the camshaft in a foundry, we will be assembling that camshaft using cam logs on a tube. So it's a very different process, different technology. And of course, because the materials are significantly more costlier, the selling price is higher, and the value addition which is required to do that machining is also a little bit higher. So...

It will have a higher EBITDA margin?

Yes, slightly.

And what will be the capacity of assembled camshaft?

Right now, we are looking at somewhere between 50,000 to 70,000 [ hours ] per month.

It's a totally new product for us, right, sir?

It's a totally new product. But the good thing is it's a customer which is known to us for many, many years. It's an engine that is running right now. So it's not a new engine, which is to be tried and tested in the market. But it's an import substitution part that we are stepping in as a supplier.

So it doesn't carry any risk for us, right, sir?

Minimal risk, yes.

The next question is from the line of Shagun Jain, who is an individual investor.

Karan, I understand from the responses in terms of the performance as to what has happened. I have a few questions. One is the import substitution thing is what you talked about, are we planning to do more such projects? I mean, because they are running engines across and there will be cost optimization globally, right? So is there something which you are looking at to bring in more such projects back into India?

Shagun, this is a specific import substitution project for the Indian market. So it's an Indian OEM that was importing parts from a variety of different companies and countries for which we are the local substitute. Of course, there is a benefit to both parties here. There are similar such other projects in India that we are exploring. But at this point of time, the Indian market, if you look at it, we have a 70-plus percent market share and we are looking at expanding this even further by looking at such opportunities.

Okay. So essentially, volumes have fallen down by 14%, 15%, right? So this means that there is a slowdown, which is going to come into the commercial vehicle segment market, right? And then which will be visible in the numbers in the next quarter is what I believe, because you supply and then the vehicles get made and then it gets delivered, right?

We don't supply to commercial vehicles, right? We are the passenger...

Passenger vehicles, sorry.

Yes.

Okay. So that slowdown is visibly based on the numbers which you have got. Now what I wanted to know is, is there some sort of uptick, which is coming in where we can see the resurgence in the PV sales probably in Q1 of this year or Q2 of this year?

Not really. I mean, if you look at the current last couple of months, it has been a similar run rate as the previous quarter. So not a significant uptick. But if you look at some of the emission norms have been postponed, so that helps in carrying forward some of the businesses for longer than expected. There are certain -- there will be certain upticks that is expected towards the middle of this year or towards the second half of this year. But at this point of time, we don't see any significant uptick.

From a running business, I understand, but from the new projects, can we see addition in terms of some delta in terms of...

Absolutely. So whether it is machine camshaft, whether it is assembled camshafts or whether it is as cash camshafts, we have a lot of projects in the pipeline that will -- but all of those will get into production towards the later part of this year or the middle of next year. So you will not see an immediate effect of those. Although a lot of investment is happening on those projects right now, you will not see an immediate revenue coming out of those in this next 2 to 3 quarters.

So we can look at something in FY '27 as a significant uptick in terms of revenue with the new projects coming in, right? That is what we're looking at?

Yes.

Okay. Now on the EV mobility business in India, how has your numbers been compared to 1 quarter earlier? have you seen a delta increase in numbers in terms of delivery of vehicles? I know you don't want to give the numbers, but if you could tell us the trajectory at least.

Not really. See, most -- like I said in my previous response, a lot of these decisions are taken by the end customer, depending on where they are in the contractual positions with their end customers, right? So for example, we are not dealing with the direct -- I'll give you 2 examples. For example, Amazon is the end customer, but there is a contractor, a fleet operator in between who is running that contract for Amazon. Or there is, for example, Mumbai Municipal Corporation, for whom there is a contractor running in between. It all depends on where these contractors are in the terms of their contracts, how many years they have left, how many vehicles they have, what is the aging of those vehicles and so on for us to introduce electrification as a concept because it comes at some cost -- electrification of every vehicle comes at some cost. And there needs to be enough time for the contractor to recover those costs and not just recover those costs, but also save money at the end of the day -- save significant money at the end of the day. So wherever we have had those opportunities, for example, with Pune Municipal Corporation, or PCMC, in that area, there is a large contractor who we are tied up with and we have started the deliveries. We have a biomedical waste collection company in the southern part of India and the eastern part of India, whom we have started working with and we've started eliminating the retrofit vehicles, but timing and a lot of these other things come into effect. So it is not kind of -- it can -- tomorrow, there could be a demand for, let's say, 100 vehicles. The next month, there could be none because you have to fulfill these 100 vehicles and so on. So it's a little bit of a difficult thing to predict and kind of present numbers. But at least, we are -- the good thing is we are engaging with more and more customers as we go, right? If we said that we are relying on 2 or 3 customers and limiting our scope to that and saying that we hope that we get 500 or 1,000 vehicles out of them, then that would be a little bit incorrect to do. Instead, we are widening our approach and looking at more contractors, more networks to basically say, even if it means 10, 20, 30 vehicles per customer, we can all add that up to a significant number. And we are in touch with all of those, but this conversion process takes time. It's not -- it's unlike the camshaft business or even, let's say, EMOSS Netherlands business where we are supplying directly to an OEM. OEM is building and selling. Here it's more of a B2C kind of a relationship where we have to convince the end customer to do the electrification, which, like I said, there is an upfront cost to it and then some kind of ROI that they have to generate out of it.

Understood. Understood. So I mean what I want to understand is, are we seeing a significant upside over the next 2 years compared to what we have done in the last 12 months is what we want to know.

Most definitely, most definitely. Look, so I think we have been working for 2 years on this project, spent a lot of resources on getting this off the ground. We just started commercial sales in August, September of last year. So it has actually -- if you look at it, it's only been 5 months that we are commercially selling these vehicles. Before that, we spent a lot of time in trialing -- trials and testing and so on with customers. So it has only been 5 months. So it's very -- so if you say, will you have higher sales in 1 year from now, 2 years from now, for sure, we will. But I can't quantify it.

No, I understand. So what is -- we have been talking that you will finally try to become an OEM at some point of time. So how is -- what is the journey there? Where are we on that?

That is ongoing. But I think the more interesting project that we are working on right now is the heavy vehicle electrification. That is significantly more interesting project as of now because there is tremendous customer demand for it. There are at least 3 to 4 customers who are willing to adopt this kind of technology, put it on bigger trucks. And I'm talking about a significantly different kind of product, significantly different profitability and so on because instead of a 10- to 15-kilowatt hour battery pack, we are talking about a 300-kilowatt hour battery pack on a truck like this. Very niche applications, again. Not a lot of OEMs are in this space. So for us, this is very interesting because it is kind of a replication of what we are doing in Europe, but for the Indian market. And most Important here is that from -- so we are already in the process of building these vehicles. It's not that it's still in the -- on the drawing board. And as we go down this journey from the very first or second vehicle itself, we are localizing a lot of the content, which is what makes it price competitive.

The next question is from the line of Ketan [indiscernible], who's an individual investor.

So I got 2 questions. First is on the camshaft business, what is the percentage market share we have in India in the passenger vehicle segment?

It's about 70%. It can be plus or minus a little bit.

Okay. And the other question is, it's more of a critical question, if you don't mind. We spent a good amount of time in developing the solution for electrifying the commercial vehicles, the smaller commercial vehicles or the medium commercial vehicles that we would try to call it. We are on the way to kind of ramp up, but we are still not there, like the journey has not started, if I can say so. And then we are now shifting gears and going -- moving into a heavy vehicle kind of a thing. So from a strategic point of view, don't you think that we should focus one thing kind of then develop that, have that ramp up, get a steady state and then kind of move on, on the other project?

So I think very valid question. Thanks for that question. What we have done very strategically is we spent 2 years on developing this light commercial vehicle platform. So much so that we have 99% localized it, got it to a price which is very, very competitive for the end customer, where they have ROIs of this electrification in less than 2 years in some cases and so on, right? We have figured out the complete supply chain, the manufacturing and so on, the service angles and so on. Here, now, we only have to replicate volume. So if there is a customer who requires vehicles to be retrofitted, we just need to go in there and do the actual physical work to retrofit. I think that is scalable once because we have everything in place, whether it's the supply chain, the ARAI certification, the RTO certification, et cetera. If we only keep doing this and ignore what the customer is actually asking us, so when we are going to these customers for light commercial vehicle electrification, these are the same customers who are coming back to us saying that, yes, we will continue to do this, but there is -- we have a bigger need and a better ROI on the heavier vehicles. It is something that is natural for us to do because it's been done many thousand times in EMOSS Netherlands anyway. Our job right now is to take that same technology, take those same concepts, but localize the supply chain and make sure we have a competitive product. So it's not like we are diverting attention from one project to the other, but it is -- one has already become streamlined, we have to start on the second one as well.

Okay. Okay. I appreciate the response. I mean my question was only because like the wait for the revenues to start flowing in from these interesting and new projects is kind of just becoming, what you say, longer and longer. So that was perspective. So when do you think we could start generating substantial revenue? I'm not asking for quantifying how much revenue, but it is kind of a time line or a horizon where we can see either the smaller vehicles as well as the bigger vehicles would start generating revenue. I'm not looking for any peak...

Yes. So we have already started generating revenue on the smaller vehicles, right? Since -- like I said, since September, we have started generating revenues. It is -- let's put it like this. I will give you a rough estimate. So the conversion cost is, let's say, INR 5 lakh to INR 7 lakh. And our revenues are already in the crores of rupees for the small vehicle electrification pipeline that we have. So it's not like we are doing 5 or 10 vehicles anymore. So we are doing higher numbers, but it's still not enough for us to kind of have a significant order book where we are fully booked for the year or something like this. So it is -- there is a revenue stream there, not as much as we hope there was, but there is a revenue stream. On the heavy vehicle side, also, there are customers who are actually basically leading some of these projects for us. And we are actually planning to start revenues of this project in calendar year '26 itself. So it's not a very long development time for this.

Okay. And last question, as of now, how many places are we doing the retrofitting? Or it's only the one single location.

We do it in Solapur and in Pune right now. But we supply to a variety of cities.

Right. But any additions planned in this -- the next financial year to kind of increase those to more places, more locations?

As the customer demands it, I think this is a fairly simpler task for us to do. For example, we have some -- if we have a demand in Delhi for a large number of vehicles, we will identify local partners to help us do the electrification there. We don't need to necessarily set up plants and it's not a very long lead time kind of thing. It's -- even a local partner to do this mechanical and electrical conversion would suffice the job.

The next follow-up question is from the line of Vipul Shah from Sumangal Investments.

Mr. Karan, so technology for this retrofitting of heavy truck, it is -- it comes from EMOSS, right, sir?

Yes.

So -- but entire supply chain is imported components right now?

No, no, no. We are right from vehicle 1, we will go for deep localization. It might not be 100% on the first vehicle, but we are localizing right from day 1. Of course, the difference is that while the technology comes from EMOSS Netherlands, the vehicles that we are retrofitting or converting are Indian, right? So whether it is a BharatBenz or an Eicher or Tata Motors or Ashok Leyland, these are Indian vehicles. So our architecture and our platforms have to change accordingly. So while the, let's say, the base template is there in place, there will be some changes as per the Indian vehicles.

But the economics will remain same? That return on investment will be 2 to 3 years, right?

Yes.

And lastly, this retrofitting of small commercial vehicle, right now, that business is reported under which -- it is PCL stand alone?

Under PCL, yes, stand alone. Yes.

[Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to Mr. Karan Yatin Shah for closing comments.

Thank you so much. I hope we've been able to answer most of your queries during this conference call. And we look forward to your participation in the next quarter, and thank you again for joining this con call.

Thank you. On behalf of Precision Camshafts Limited, that concludes this conference. Thank you for joining us.

Thank you.

You may now disconnect your lines.