Pricol Limited (PRICOLLTD) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Q4 and FY '25 Conference Call of Pricol Limited hosted by Valorem Advisors. [Operator Instructions] Please note that this conference is being recorded. At this time, I would now like to hand the conference over to Ms. Nupur Jainkunia from Valorem Advisors. Thank you, and over to you, ma'am.

Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of Pricol Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the fourth quarter and the financial year 2025. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's conference call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Vikram Mohan, Managing Director; Mr. P.M. Ganesh, Chief Executive Officer and Executive Director; Mr. Siddharth Manoharan, Director of Strategy; and Mr. Priyadarsi Bastia, Chief Financial Officer of the company. Without any further delay, I request Mr. Vikram Mohan to start with his opening remarks, followed by financial and operational highlights of the company. Thank you, and over to you, sir.

Thank you, Valorem team, for organizing this call. Namaste, ladies and gentlemen, welcome to the Q4 financial year '25 financial performance and for the year-ending FY '25, the financial performance call for our investors. I will request the presentation has already been uploaded, and I do hope all of you have seen the presentation. I will request our Director, Strategy, Siddharth Manoharan, who's also in charge of Investor Relations, to take you through the financial overview, after which I will address the participants in this call. Over to you, Siddharth.

Thank you, and good evening to one and all. Before we go into our financial performance, we would like to inform you all that the financial numbers -- the consolidated financial numbers include the performance of our acquisition that we made for the months of February and March in the last quarter. So for the Q4 of FY '25 on a consolidated basis, our revenue from operations stood at INR 7,520.11 million with an EBITDA of about INR 883.0 million and the EBITDA margin percentage stood at 11.74%. Our PAT numbers stood at INR 349.48 million at a margin of about 4.65% and our earnings per share was at INR 2.87. On a full year basis for FY '25, the financial -- consolidated financial performance. Our revenue from operations stood at INR 26,209.12 million with an EBITDA of about INR 3,341.09 million at 12.75% EBITDA margin. PAT numbers stood at INR 1,670.30 million at 6.37% PAT margin. And our earnings per share on a full year basis is at INR 13.70. At a consolidated level, this quarter, our long-term borrowing is at INR 800 million. This is primarily due to the account of our acquisition of the plastics business from erstwhile Sundaram Auto Components Limited by Pricol Precision Products Private Limited as well as at a consolidated level, our return on capital employed is at 22.86% in FY '25 as against 23.18% in FY '24 with a marginal reduction again due to the account of our acquisition. In terms of our growth, on a quarter-to-quarter basis, our revenue from operations at a consolidated level clocked 32.81% and our EBITDA clocked 21.65% growth in Q4 FY '25. On a full year basis, FY '25 versus FY '24 comparison, our revenue from operations clocked a growth of 18.69% and our EBITDA clocked 19.91% growth in FY '25 compared to FY '24. And the rest of the information is available in our presentation for your review. With this, I'll hand over the call back to our Managing Director for his remarks. Thank you.

Thank you, Siddharth. I'd like to give our analysis of our performance for the quarter ended 31st March 2025, which is Q4. This quarter has not met our investors' expectations or even the management's expectations, and I'd like to state the reasons for the same. The dollar very sharply strengthened in this quarter, which has resulted in a significant forex impact. Nevertheless, this is only deferred earnings because we have an indexation for forex with all of our customers. So while this has been a forex impact in Q4 of FY '25, this will be recovered on a 6-month maximum trailing basis. And so it's not a loss of earnings. It is only deferred recognition of earnings. You would have also noticed that compared to the similar quarter in the prior financial year, there has been a significant increase in manpower costs. This is a calculated decision taken by the management. As you know, your company has always invested heavily in R&D, both product and process development to keep us ahead of our competitors in launching cutting-edge products. In our earlier calls, I had mentioned that we are launching some new ranges of products and new verticals of products to increase our content per vehicle and wallet share per vehicle, primarily in the 2-wheeler sector and then moving on to the 4-wheeler personal passenger vehicle segment. During this quarter, we have significantly increased our manpower in R&D to start development work of products for these new verticals and products and have also hired subject-matter expert consultants. And these costs is not a onetime cost, but will remain for the coming quarters. And in about 8 quarters, we will start seeing the results of all these investments in R&D and technology by way of revenue and in about 12 quarters, very steady-state revenue coming from these new programs, products and which is over and above our current range of products. There have been significant headwinds also in Q4, resulting in some loss of EBITDA. While we have performed better than the market in terms of volumes, the 2-wheeler sector, which accounts for 65% of the revenue of our company, has seen very muted numbers in Q4. This was because of the OBD-II regulation, which saw a huge transformation from April 1, 2025. We are already halfway into Q1 of FY '26, and we see a significant revival of the market in the 2-wheeler segment because of the regulatory change. So this is nothing to be concerned about. This is only on account of a technology change by the government -- imposed by the government that there was a production slowdown in Q4 of FY '25, which has again picked back up in quarter 1 FY '26. There have been some supply chain disruptions and productionization delays on account of this by our customers, which are normalizing and will completely come back to normal by Q2, and we are already seeing a lot of evening out in Q1 where we are currently. An area of concern, which is directly impacting our bottom line is our exports. With the new administration in the United States of America, which is our biggest export market coming in, in January 2025 and imposing significant tariffs, there was a lot of uncertainty among our export customers, and they had delayed the imports, thereby, we lost export revenue. Is this going to be solved overnight? We believe it is not going to get solved overnight because there is still clarity yet to emerge on this subject. And our bottom line on account of exports is significant, though our export numbers are low. But we firmly believe, after my personal discussion with other industry leaders in the automotive component industry, we are confident that by Q1 of the current year, FY '26, India will sign a trade agreement with the United States and resumption of exports will start from Q2 of FY '26. This will bring back our earnings to a normalized basis. With regard to Pricol Precision Products, the plastics business that we acquired from the TVS Group, which is now christened as Pricol Precision Products Private Limited. The EBITDA for February and March, which is the period after which we had acquired the company on February 1, has been a little lower than what the company used to earn in the prior period. This was because of all the onetime acquisition costs related to this acquisition being booked in those 2 months. As explained to me -- by me in the earlier calls, this is about a 7% to 7.5%, 7.2% EBITDA company when we acquired it. But post the acquisition, we are very confident of a high-single digit margin to be achieved before in the next couple of quarters because we have already started a lot of restructuring of operations and trimming the fat and realigning some of the operations. And we are very convinced that this was a good buy. We have visited all the customers of the company, and they have reposed confidence and also looking at increasing business to us. And because this was owned by the TVS Group, we were not able to access other 2-wheeler customers who are the primary revenue earners for Pricol. Now we have started engaging with all the other 2-wheeler makers, and we are confident of growing the company significantly, both in terms of top line and bottom line in the coming quarters once the realignment and restructuring is complete over the next few months. This is the broad highlights of some of our performance parameters and financial parameters in the quarter that's just gone by, which is January through March FY '25. Furthermore, it was a strategic decision which we had taken to divest the wiping business, which albeit a small portion of our overall turnover was contributing some bottom line, which we divested in the month of January. So we had some loss of EBITDA and top line on account of that on a stand-alone basis, which by introduction of new products and increase of share of business in our existing products and new product introduction in our stand-alone business, which will again get normalized from Q1 of the current year. With this, I'd like to hand over to the floor for the questions. We'd just like to set some ground rules for the questions. Since there are multiple participants and everyone has to be given an equal opportunity, we request all participants in the question queue to restrict themselves to 1 question, and if they have further questions to rejoin the question queue so that everyone has an opportunity to ask their question. Over to you, ladies and gentlemen.

[Operator Instructions] The first question is from the line of Vijay Pandey from Nuvama.

I wanted to check about the employee expenses. So can you give us a brief light on how many employees we have added? And what is your expectation over coming 2 years, 3 years? So is it expected to remain at the quarter 4 level of 13.5% as a percentage of sales? Or will it come down? How should we see it from here on?

Vijay, thank you for that question. See, I would not like to talk about it as a percentage of sales. As a percentage of sales, the number has been higher because our overall top line has been lower. From a rupee value, it will remain the same. And every July, we also go in for a salary increase, which will also kick in from July. But as the top line goes up as a percentage of sales, it will come down. We always used to maintain it at around 11.5% to 12% of sales. And we are pretty confident that with the current increasing sales in the quarter 1 itself, we will be able to normalize it. The additional employees that we have added primarily in the R&D, both for product and process will continue to remain in the system because it is going to take at least about 8 to 12 quarters for the product to get productionized. So once that revenue kicks in, then further the employee cost will further come down as a percentage of sales. I hope I've answered your question.

Okay. Just to confirm, so we expect around 11.5% to 12% over the next 2 years and then probably it will come down further after 2 years, right?

11.5% to 12% is on a normalized basis that what we have been delivering, and we will continue to deliver that. But based on revenue, that number could go up by 0.5% plus or minus variance. But a strategic decision has been taken to invest in additional employees in R&D, which will start yielding dividends about 8 quarters from now because they are developing new products and new ranges of products for the new verticals that we are launching.

The next question is from the line of Sandeep from Sundaram Alternates.

My first question is pertaining to margins. I think you highlighted 2 reasons. One is the raw material price inflation as well as the mix because we've been doing lesser exports compared to the earlier period, which has impacted the gross margins. If you could split broadly how much was the impact because of raw material cost inflation because that will be passed through in the subsequent quarters. But the mix probably till the time there's a bilateral treaty signed, it is likely to remain in the books. So if you could help us with that.

The exports also has not come to a 0, Sandeep, okay? The exports slowed down in quarter 4. We are seeing a resumption even in quarter 1 of exports because these are critical to production, and we are single source in many cases, okay? And also overnight, we are not a component company. We are a product company. Overnight, the products cannot be replaced with some other source in some other low-cost country because there is a typical 2-year lead time to develop these products. And luckily, we are also sailing on a boat where alternatively, these products can be obtained from China or from Vietnam on whom also tariffs have been imposed. So I don't see a risk on that. There could be a risk in the margins based on what the tariffs are going to be imposed. Our margins could come down a little bit, which I think we will have a lot more clarity on in about 3 months because a lot of the customers also want us to share if there is a tariff impact, share some of that tariff impact by reducing our prices, whereas we have stood very firm saying that we will not be able to reduce the prices because we know the other 2 low-cost destinations that they can take these products from are China and Vietnam, which are also facing similar tariffs. And they will not be overnight able to replace us also because there is a 2-year lead time to develop an alternative supplier because we are not a component supplier. So we are standing very firm on our pricing also and not giving any reduction in pricing. So I just think it's a matter of time before normalcy comes back. And I don't think even on the exports, the volumes or the erosion of margins will happen for the foreseeable future. This is our internal analysis because I requested our Head of International business to travel extensively to America and some of our customers in Europe to understand their outlook and things like that. I think it is only a temporary jolt of about 2 quarters and normality will return after that.

Got it. If you could also highlight what would be the near-term capital requirement in the acquired business of Sundaram, both in terms of CapEx required to augment capacity, align capacity which you already have on books? And typically, what net working capital...

I know that is a second question, Sandeep, but since you have asked the question, I will answer it. And if you have any further questions, request you to bring the question queue. We have planned over the next 4 quarters approximately between INR 225 crores to INR 250 crores of CapEx on in Pricol Precision Products. This is to enhance efficiency by replacing about 50 machines, add capacity in the tool room, add new machines, add automation, thereby also increasing our top line because today, it was very dependent on TVS only. We are now starting to see openings in our other 2-wheeler customers. So to enhance capacity, debottleneck, improve efficiency and modernize combination of everything, we are looking at around INR 250 crores of CapEx over the next 8 quarters in that company.

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

So my question was considering these new product developments that we are planning over the next 8 to 12 quarters, could you guide us because I think previously, we have spoken about 13% to 15% growth in Pricol. So considering these new products, what would be our revised guidance in Pricol and in Sundaram?

See, the 13% to 15% growth guidance continues to remain even without these new products. These are new products that we are looking at 24 to 36 months from now start of production because in our industry, especially in electronics and auto electricals, the lead time from starting to develop a product and starting to see revenues typically about 30 months. So this is -- we are already at FY '25, and this is going to be revenues in FY '28 and '29. So our revenue guidance for growth continues to remain the same, what we have promised before. I had given an EBITDA guidance of about 12.5% to 13% of normalized EBITDA, which, again, from Q2 or latest by Q3 outermost, we will get back to.

Similar for Sundaram, what kind of...

Pricol Precision Products will never have a 13% to 15% EBITDA because it is a component company. Typical margins for this range of products, the highest in the industry is about 11%. We are currently at around 7%, 7.2% when we acquired the company. Steadily, we will keep increasing it to high-single digits over a year and thereafter to a higher number as the top line increases and modernization takes place and we add more customers.

I actually meant from the revenue side also, considering that also for Sundaram.

Revenue will grow for that company also for at least 10%, but we are aiming for a slightly higher revenue growth than that.

I think previously, we had talked about, I think, doubling in 3 years, considering inorganic opportunities also for Sundaram. So that has changed or...

That has not changed. This is -- I'm only talking of organic growth. But if you are able to add more customers other than TVS where I see the visibility, we have already taken into account the capacity enhancement requirement CapEx for that. I'm not giving a firm guidance on that because it's still very early days because it's just 3 months into the acquisition. We are more confident about improving the bottom line in the last 3 months. And in the next 3 months, we will have a lot more visibility on increasing the top line also. But we are also looking at inorganic growth there, which will -- basically, we took it over at around INR 750 crores run rate when we took it over. We are pretty confident of growing it to about INR 1,500 crores top line in 3 years. That I stand committed to that commitment that we have made.

The next question is from the line of Vijay Pandey from Nuvama.

Just a couple of housekeeping questions. Can you just point out what was the one-off expense related to the acquisition? And secondly, what is our exposure to the U.S. market?

I will request the first half of the question to be answered by our CFO, Priyadarsi Bastia, and the second half of the question to be answered by Ganesh, our CEO. Over to you, Priya.

This onetime cost, what we have booked is the thrice capital increase, what we had to pay to MCA that has been booked in Q4.

And what was the amount?

And second question, related to exposure to U.S., out of the total revenue of export, nearly 70% comes from the U.S. market.

What was the amount of the acquisition cost, like onetime acquisition cost?

INR 1 crore.

INR I crore, okay.

No. I'd like to also reiterate here, Siddharth, you can -- can others mute their call, we're having a lot of background noise, please. Whoever is on thing because we can hear a lot of background noise. There are 3 aspects of our -- I'd like to give an answer further to what our senior executives have provided. There were costs of due diligence, legal, financial, et cetera, which is a onetime cost. Enhancement of limits and other things, there was a onetime cost. In terms of exports, there is about 7% of our revenue comes from exports, of which about 70% is U.S. linked. So 5% of our revenue comes from exports, but albeit at almost twice the margins of the OEM and domestic products. So OEM comparison, it's equivalent to about 10% of our total revenue. But in real numbers, it is on top line, it is about 5% is our U.S. exposure. I hope this answers your question a lot more clearer, Vijay.

Yes. And just one more thing. What was the impact from the FX in terms of total value?

It was about INR 3.5 crores.

[Operator Instructions] The next question is from the line of Hemaant Soni, an Individual Investor.

Just wanted to ask you one thing. We had earlier given a guidance of INR 3,600 crores of revenue by FY '26 and INR 400 crores through the organic route and INR 400 crores of revenue through the inorganic route. So altogether, INR 4,000 crores of revenue by FY '26, if I'm not wrong. So our FY '25 numbers around [indiscernible]. so this looks a little difficult to meet the guidance for FY '26.

No. In many calls earlier, Mr. Hemaant, I don't know if you have followed all our calls, I had always maintained that we see a visibility for INR 3,600 crores of revenue, both organic and inorganic put together for FY '26. And those numbers, we are still sticking to and very confident of meeting. It was not INR 3,600 crores organic plus INR 400 crores inorganic. I think that is a mistaken statement. It is definitely -- we've always had a guidance of INR 3,600 crores organically and inorganically by FY '26. And if there are some green shoots or some new things we see could go up to as high as INR 4,000 crores and a base guidance of INR 3,600 crores, and we stick to that guidance.

And the newly acquired entity will be contributing around INR 800 crores to the top line?

Yes, thereabouts.

The next question is from the line of Vipulkumar from Sumangal Investment.

Is there any one-off in other expenses?

There is no one-off or other expenses at this point in time other than the acquisition costs that we have booked and the deferred earning of the forex.

And can you quantify the impact of dollar movement in terms of what was the impact on our bottom line?

I just said that to the earlier gentlemen. It is INR 3.5 crores in Q4, which will be collected in a phased manner in Q1 and Q2 of the current financial year.

The next question is from the line of Saket, an Individual Investor.

Like you said, for the current year, the company which acquired Sundaram Group, the company brings roughly close to INR 800 crores of revenue, but the amount we acquired is for very little...

I am not very clear. Your voice is very garbled. Can you be a little clearer?

Now it's clear?

Yes, please.

My question was that you acquired the company from Sundaram Group for roughly around INR 200 crores, whatever the amount it was, and the company is doing a top line of roughly INR 800 crores, INR 900 crores. Like when we see the Sundaram Group, this being a very big group and the other companies that are listed, they are having very high valuation. So what was the reason of this company being at such a low valuation that we could acquire the company?

Yes. Thank you. That's a good question. It was strategically acquired at a much lower valuation than market value because in order to realize the full potential of this company, Pricol had to invest another INR 250 crores in modernization, in automation, in improving production efficiencies. So this was taken up by us for discussion and saying that we cannot acquire for a high value and further invest, it is going to have an impact on the return on capital employed, which is why we acquired a INR 750 crore turnover company for about INR 195 crores and another INR 250 crores is going to be invested to grow the company and bring it to a normalized EBITDA because the normalized EBITDA for the plastic component business is about 10% to 10.5%, whereas this company was only at around 7%. So this was the reason we were able to negotiate and get the price down because of the inefficiencies in the company, which needed a further capital infusion.

Okay. Like we have just consolidated 2 months of revenue and profits. So if you can give me some light on what was the actual last year's business revenue you have given what's the PAT level last year, we haven't taken into account, but what was it like last year?

It was about 7% EBITDA for the year.

EBITDA, I'm asking on the PAT level.

At the PAT level, I think it was about INR 30 crores. Correct me if I'm wrong, Priya, our CFO.

Yes, it was around INR 30 crores.

So like the INR 200 crores, you're talking about INR 200 crores, INR 250 crores we have to invest for the modernization. So what is the time line that we have putting this amount and by when we anticipate this EBITDA margin to reach this level?

I think I had answered all of these questions to the earlier persons on the call as to when this investment will happen and how long it will take for the EBITDA to normalize. But I will repeat it once more, and I'm requesting other participants to kindly listen in when I'm giving the updates. So this INR 250 crores will get invested over the next 8 quarters, which has already started. Investments have started in Q1 itself, and it is going to be broadly over the next 8 quarters. The high-single digit EBITDA we will achieve by the end of this financial year and then take it to a double-digit EBITDA in the next year when all investments are completed.

Okay. One final question, like this amount of investing for this part of the business. But again, our business, which we are into, and that is also like that requires a lot of investments and all. So will this amount of investment would have an impact on that part of the business because -- there also, we are doing a lot of R&D.

No, actually we are generating enough cash in our company, which will take care of our growth.

The next question is from the line of Sahil Rohit from Monarch Networth Capital.

My question is that in the recent investor interactions, you had mentioned that there was about some supply chain issue, particularly with some electronic components. So if you can share some more information on the same and how is that being tackled right now?

About 80% has been solved, and which is what is resulting in Q1, a great degree of normalization. And by Q2, we expect complete normalization.

What was that exactly? I mean, related to what?

We had some quality issues from our Tier 1 vendors. So we had to develop some alternate vendors and alternate vendors have already come in, got approved by our ultimate customer, and they have started supplying.

Sahil, does that answer your question?

Yes.

The next question is from the line of Vijay Pandey from Nuvama.

Our tax rate in the Q4 was a bit jumped up. Just wanted to check what is the expectation for the upcoming quarters -- upcoming year? And also, if you can tell us -- just one more thing was that I noticed that in cash flow, we have booked a loss of INR 4 crores from the -- from sale of wiping. But is this recorded in the P&L also? Or is it, like...

I will request our CFO to throw more light on this. Priya, over to you.

Vijay, to answer to your first question, the tax rates are similar throughout the year, 25.168%. We are at the lower tax regime. And it is going to be similar in the coming period as well. To answer to your second question, yes, the wiping division, as Managing Director told in the beginning remarks, we have divested that business and that loss which arise out of the divestment has been booked. That has been booked in P&L, then only it has gone to cash flow. Thank you.

The next question is from the line of Siddharth Chhabra from Minerva Asset Advisors.

I just wanted to ask the question regarding the instrument cluster regarding -- so for FY '25, what is the split between analog, digital, semi-digital and TFT? And is that market shift or trend shift, is it still going to happen as quick as we expect it to happen?

First, thank you, Siddharth, for that pertinent question. I will answer part of it, and I will request our CEO to answer the other half of it. First, it is no more called an instrument cluster. It is now called a driver information system, just on a lighter note because it has become very content rich. So it is we have 3 -- 4 categories: mechanical, electromechanical, hybrid and TFT. We are constantly seeing a shift moving up the value chain, right, exactly in line with our projections. Bulk of the market is going to be in the electromechanical and in the hybrid clusters. The premium segment is going to be in the TFT segment. The entry-level bikes that were in the pure mechanical segment will, over the next 2 years, fade out and move completely into the electromechanical segment. This is absolutely in line with our expectations and projections. I would like Ganesh, our CEO, to throw a little bit more light on this.

Thank you. The shift we clearly see from mechanical to electromechanical and then from electromechanical to what they call the LCD type of display. And the LCD type of display, which was earlier used in the premium motorcycle is moving into the TFT type of display. Overall, still about 40% to 50% is with mechanical stroke electromechanical as we speak and which was at a much higher number, more than 70% in 2020, it is already coming down. And the LCD type of instrument clusters, primarily the digital driver information system has been continuously increasing. Currently, it is about 50-50, and we expect mechanical, electromechanical to come down significantly in the next 2, 3 years, which will be taken over by the electronic instrument clusters or the driver information system.

So currently -- and for the TFT, is TFT somewhere around 4%, 5% of the 2-wheeler market right now or even less than that?

Correct. It is about 5% as we speak. But the trend is that this is going to move up. This trend is going to move up in the coming years.

And the rest is split equally between hybrid and both the types of mechanical, right?

Absolutely. Absolutely. Absolutely. No mechanical will keep going down.

No. But as of right now, currently, it would be split equally between hybrid...

No, no, there are 2 different kinds of mechanical, Siddharth. Okay. Let me talk once again. There is a pure mechanical low-value, low-margin cluster, which in the next 2 years will fade out completely. Just to give you an example, what is on a Hero Splendor bike, right? It's INR 300 to INR 400 product, which will vanish totally, right? Then we have something called an electromechanical, which is more high value, more rich in content. And then you have something called the hybrid. Now in a few years, there will be 0 mechanical, low-value, low-margin products altogether, we are anticipating. That will all move to the electromechanical. Electromechanical will move to a hybrid cluster. 85% of the market will be evenly split 50-50 between the electromechanical and the hybrid clusters and about 10% of the market will go to the TFT cluster. I hope that answers your question.

Correct. And do we see this kind of shift happen? Like you said mechanical will purely go away within a quick time span of, say, 1, 2 or 3 years, maybe.

Not 1. I never said 1. But in 2 to 3 years, 100% it will move out.

But TFT becoming a meaningful share of the pie, like maybe 20%, 25%. Do we see that...

No, 20%, 25% will not happen -- 25% will not happen in the immediate future. This 5% will go to 10% over the next 2 years. I'm just giving a forecast for the next 2 to 3 years is what we are talking about.

Okay. Sure. Yes, that helps. And my second question was regarding the ACFMS business, and we had mentioned that...

Can I request you to go back on to the question queue, Siddharth. I'd request everyone to restrict themselves to 1 question.

Sure.

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

Can you help me with the CapEx numbers in Pricol Limited that we're planning over the next 2, 3 years?

We are going to be at the end of our high CapEx. We have 2 plants that is happening this year, Pune and Manesar. So this year, correct me if I'm wrong, Priya, we are looking at around INR 200 crores to INR 225 crores of CapEx, after which we will go into a maintenance CapEx mode. Priya, can you just add to -- correct me if I'm right?

Yes, absolutely. This year will be -- we are at the last leg of that CapEx journey.

Right. And just to reconfirm, Sundaram entity will be having around INR 225 crores to INR 250 crores over the next 2 years?

Next 2 years, yes. This is stand-alone, I spoke about this, and that is separate. These are 2 different things altogether, yes.

The next question is from the line of Jatin Chawla from RTL Investments.

First question is on just a data point on the Pricol Precision for the 2 months, if you could just give the revenue, EBITDA and PAT? And secondly, on the -- for the full year, 2-wheeler revenues and what sort of outperformance we have seen over the underlying production volumes for the industry?

I would not like to comment on the first half because it was the first 2 months, and we had booked a lot of these acquisition costs, but the run rate is about -- it will take us to about INR 800 crores, INR 850 crores this year. So you can tidy up that.

No, my question was more to understand the underlying performance of the business rather than understand Pricol Precision performance.

Okay. Underlying performance, which Priya can comment about the February and March figures for this, we can -- Priya can talk about. But that between the consolidated and stand-alone, you can make out the difference, but I will request Priya to answer that part of the thing. Please, Priya.

We have booked around INR 114 crores of revenue with 5% of PAT.

PAT on EBITDA?

PAT.

PAT. Okay, good. And just on the 2-wheeler revenue and the outperformance of the industry?

Ganesh, I would request you to talk about that. How much are we outperforming the industry on 2-wheeler? Q4, as I earlier mentioned, we have only been marginally higher than the industry because of the technological change of OBD-II. But on a normalized basis, Ganesh, I want you to comment about.

For the full year basis, I will tell you, the 2-wheeler industry has grown by about 9%. Just give me a minute, I will -- yes, 9%, and we have grown by around 14%.

The next question is from the line of Pratik Dhelia, an Individual Investor.

Am I audible?

Yes, please.

Yes, you are audible.

Okay. I see my questions have been answered.

Thank you.

Ladies and gentlemen, that was the last question for today's conference call. I now hand the conference over to the management for closing comments.

On behalf of my entire management team, I would like to thank all of you for your interest and investment in our company. And we thank you for participating in today's investor call. And as mentioned by me, we have been below our expectations and our investors' expectations in Q4. And I have given out all the reasons as to why that happened. And we are very confident of coming back. Even with the first 45 days of this quarter, we see a huge resurgence, and we will continue to maintain this resurgence and have normalized results and good news in the coming quarters. Thank you very much for your participation and wishing everyone a good weekend.

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