Talbros Automotive Components Limited (505160) Earnings Call Transcript & Summary

Ladies and gentlemen, good day and welcome to Talbros Automotive Components Limited Q1 FY '21 Earnings Conference Call. 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. These statements are not guarantees of future performance and involve risk 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. Anuj Talwar, Joint Managing Director of Talbros Automotive Components Limited. Thank you, and over to you, sir.

Thank you so much. Good afternoon, everyone. A very warm welcome to our quarter 1 FY '21 earnings call. I hope you all are staying safe and healthy. On the call today, I'm joined by Mr. Navin Juneja, Director on our Board of Talbros and our Group CFO. Also, we have with us SGA, our Investor Relations advisers from Mumbai. The results and the presentation are uploaded on the stock exchange and the company website. I hope everyone has had a chance to look at it. Let me begin with a few updates on the industry. India's automotive sector, which was already combating a prolonged slowdown, nationwide lockdown to prevent the spread of coronavirus made the entire industry standstill. COVID-19 led to supply chain disruptions and production halt, even after the lockdown was lifted. The month of April was completely vanished for automakers with 0 numbers of volumes sold. And like a fresh start, the whole industry had to deal with numerous challenges to resume the operations. The impact of this episode has put remarkable effect on the entire industry, and it has delayed the growth trajectory of the industry as a whole. As per data published by CM, the auto industry declined by 75% during the first quarter compared to the same period last year, a significant improvement in July '20 for passenger vehicles and 2-wheelers compared to previous months. The total production of passenger vehicles, 3-wheelers, 2-wheelers, in the month of July was 1.7 million units as against 2.4 million units last July, with a growth of negative 30%. So we are seeing that July is better than June, and August is slightly better than July as well. Although process of rebound is going to be slow, but it is not a company-specific event, and industry as a whole is backing to outpace the situation. Business activity in India is picking up momentum from July onwards, and also we're seeing green shoots in this month of August as well. Also, don't forget, the festive season is around the corner, which always is a positive our nation. As we move forward, signs of recovery are getting stronger. We at Talbros Group reported July revenue numbers close to pre COVID level. Also, I would like to say that because we've been a hedge company and also with focus on exports as well as successfully transitioned into BS-VI product line, we reported EBITDA-positive numbers for quarter 1. Even if you look at just the gasket and the forging business, which is a stand-alone business of our company, in June, we were able to report 90% and 96% revenues, respectively, compared to June of last year. We had announced in previous call about securing orders worth USD 31 million for domestic as well export markets over a period of 5 years. This is not annual, but this will come in tranches as the SOPs happen. Our focus towards growing our export market is showing results. Over the last few years, we have made a lot of efforts towards product development and testing with global auto majors. Our exports now cater to, U.S.A., U.K., Europe and Japan. Make in India is opening doors for companies like Talbros to bring together the business opportunity from foreign players. Also, this whole issue between India, China, U.S.A., will give India a huge opportunity in every space to export. These new orders are a huge validation of our technical capabilities and opens up doors for many large customers for us. There's a very interesting stat that we're going to share with you. Over the last 3 years, our export percentage as a business of the total revenue has grown from 18% in FY '18/'19 to 30% in quarter 1. This will not be 30% for the full year. But because the domestic OEM base will low, it is 30%, but should roughly be on the range of about 23% for this year. I'm pretty hopeful in the next year or so, we should be at 25%. Now I shall give you a brief of our company. Our business is broadly divided into a stand-alone business, which you see when you see the results in accounting standards. This is a gasket and a forging business is a stand-alone business and 3 joint ventures with global auto component leaders for gaskets for suspension, chassis and anti-vibration components and hoses. I've earlier told you and we showed you a positive EBITDA for quarter 1. The reason is our domestic sales is -- 37% is contributed by 2- and 3-wheelers, which were the first ones to move towards the company; 24% is in the passenger car segment; 20% is in the CV space; 13% is in the agri space. This depicts our diversified client base and wide product range. Let me give you some details on the segment-wise business. Gaskets and forgings. In our stand-alone business -- gasket business, we continue to hold a healthy market share domestically. Here, we are the market leader and will continue to dominate this market space. Focus is on OE export business, has helped us secure orders from established international brands on the gasket division. Along with the JV, we hold a near 50% market share in this segment in our country. Our strategy here is to help OEMs adapt to BS-VI technology. Here, I'd like to add that in the commercial vehicle space, once we moved from BS-IV to BS-VI, our value addition per engine for 1 large OEM in the country has gone up by 3x. Benefits of that you will only see once the CVs pick up, which I feel is going to happen sometime in quarter 3 of this year. We are focused towards increasing our utilization of post-coating lines and this will reduce our imports and result in cost savings. We have made strategic raw material sourcing agreement with Lydall Performance Materials from U.S.A. to bring saving in operational cost, a reduction in raw material inventory and working capital investments. We are confident to report improvement in savings going forward on our localization efforts. Heat Shields is gaining a lot of momentum. We've been talking about this for the last 2, 3 years. But now, finally, finally we are seeing domestic carmakers because we've moved to BS-VI and new CAFE norms for light-weighting and better emission, they are talking to us now. The 3 leading players in the country are talking to us today for this product line. By next call, I think we should give you some good news, that we made penetration into the domestic market, in addition to the $2 million we already supply internationally. The forging business has continued to perform well. We have had orders from both domestic and international markets. We are in discussion with various Indian and European Tier 1 customers for heavier forging products and I'm very optimistic of a good performance by the segment going ahead. This company is an outlier for our group, 50% of its revenue comes from exports. We are now simply moving to a heavy value machine components, which will improve our margin trajectory further. We have completed the installation of the 2,500-tonne press this year. With this, we are a one-stop shop for hot forging and machined components from 750 tonnes to 2,500 tonnes. Regarding our joint ventures, Magneti Marelli-Talbros, we have a 50-50 joint venture with Magneti Marelli Chassis Systems, a peer group company with a scope to design and develop the complete chassis for OEMs. Talbros Marugo -- before coming to Talbros Marugo, I'd like to also say, even in Marelli-Talbros today, we have exports worth about 25% going to leading European OEMs. Talbros Marugo, our smallest company is a joint venture with Marugo Rubber Industries, Japan, which caters to rubber components and hoses. What I'd like to also add out here is in these 2 JVs, scope is immense, opportunity is fantastic, and we are seeing a lot of big companies with big investments into India, who are relying on OEMs, such as Ford or General Motors, I want to give way. It gives a good well-leveraged company like Talbros today, the opportunity to capture more market share, both in the domestic and the international markets. Now I request Mr. Juneja to update you on the financial performance of the quarter.

Thank you, Anuj. Good afternoon, and a warm welcome to all the participants. Let me begin with our financial overview. In the Gasket division, including Nippon Leakless Talbros. For Q1 of FY '21 our stand-alone gasket sale was INR 32 crores as against INR 74 crores in Q1 of FY '20. Declining sales to OEM segment was about 58%. Aftermarket, about 64% have resulted in the decrease in overall sales of the division. The performance of the division has been adversely impacted due to slowdown at our major customers in this segment. Revenue of Nippon Leakless was INR 2 crores in Q1 FY '21 versus INR 12 crores in Q1 FY '20. As you are aware, there was 0 sales in the month of April and May this -- only in the month of June, we have some sales over there. This segment saw a combined EBITDA of about INR 0.5 crores during Q1 of FY '21. Now coming to the Forging division. The revenue of Q1 FY -- Q1 of FY '21 was at INR 19 crores against INR 37 crores in FY '21 (sic) [ FY '20 ]. There has been decline in the sales to OEMs by 62% as compared to Q1 of FY '20, which led to the fall in the revenue. Magneti Marelli-Talbros Chassis Systems. Our share of income in Q1 FY (sic) [ Q1 FY '21 ] stood at INR 3 crores versus INR 16 crores in Q1 of FY '20. The major reason was that this company is a major supplier to Maruti and a European car manufacturer in abroad. So Maruti was literally closed in the first quarter and so was the European customer, so there's a drop in revenue. Talbros Marugo Rubber Private Limited. our share of total income for Q1 of FY '21 stand at INR 1 crore versus INR 6 crores in Q1 of FY '20. Again, this is a major supplier. This -- its 70% of sales is to Maruti. So Maruti was absolutely closed in the first quarter. The reason for this low sale was same. Now coming to the consolidated financial performance of the company. Total income, including other income, stood at INR 51 crores in Q1 of FY '21 as against INR 109 crores in Q1 FY '20. EBITDA, including other income, stood at INR 1.8 crores in Q1 of FY '21 as against INR 12.3 crores in Q1 of FY '20. Continuous focus on cost optimization resulted in the positive EBITDA during these challenging times. PBT, before exceptional items and including share of profit from JV, stood at a negative of INR 9.2 crores in Q1 of FY '21. Way forward is going to be eventful. In the coming period, it is not only the top line which will require the concentration, the focus will be shifted on strategy planning and our health nature of business, coupled with new orders and sufficient capacity at plants, we are confident our team to help us to grow in the same. This is all from our side, and we -- I would now like to open the floor to questions-and-answers.

[Operator Instructions] The first question is from the line of [ Priyanka Singh from Atidhan Securities ].

Yes. I have 2 questions. So the first one will be, our portfolio is diversified from 100% gaskets to now a wide range of products. So any plans to add new products based on changing customer requirements due to BS-VI?

So with regards BS-VI, I think whatever portfolio we are having, we already converted into BS-VI. However, the company is always open to enter into new technological products as and when the opportunity arise, we will definitely go ahead with that. Heat Shields.

Yes. We are doing it, like, for example, in our gasket business, we did a very interesting product for BS-VI [Technical Difficulty] versus, say, the value content [Technical Difficulty] the previous years, and also Heat Shields, as I mentioned in the call earlier, is a product which basically manages the noise, the vibration and the heat in an engine with all the engine now becoming most powerful more towards petrol, we're already developing that products. We're talking to 3 OEMs in the country to develop that. So that will be a new segment altogether. But let's first the order come then we'll talk.

Okay. And in continuation with this, so how is this BS-VI shaping up for our existing product portfolio? And are we experiencing any loss of revenue in future due to this?

So we have successfully converted all our products to BS-VI. There's no issue at all.

The next question is from the line of [ Ayush Oberoi from Victor Delta Securities ].

Yes. So I have few -- a couple of questions. So first one is that, do we have any new orders in hand, except the $31 million you have mentioned?

What you're saying -- at the moment, this is -- this keeps changing. We are constantly working on getting new orders. This is an order book that we already shared with you. And at the moment, this is there. And we are already working with the other OEMs for futuristic orders as well.

I think by the end of next quarter, we'll give you some news for the fresh orders also.

Okay. So second one is that it is very great to see the positive EBITDA numbers in spite of the loss of revenue in April. So can you throw some light on what kind of cost-saving measures you have taken, and whether it is temporary or long-term in nature?

So it's a mix of that. Regarding -- first is regarding the reduction of salaries, salaries and expenses, saving on traveling, some localization and some is due to improved -- improving my productivity, et cetera, it's a mixture of all. Of course, it can't be permanent. Of course, it can't be -- I can't say it will be permanent, it will not be permanent, like salary, et cetera, it will be reversed in the month of -- by October-November. Other benefits like tackle business promotion, et cetera, which were curtailed, will continue for the full year. And this is what -- and the productivity increase, localization management is permanent by the way.

Okay. So the third one is that did we face any supply chain issues while we were resuming operations? And how did we manage on that? What is the situation currently in terms of labor availability and logistics?

We have -- I think we have -- I must say that there is no major supply chain issues for -- as regards to our operations. Initially, there were some hiccups in the labor availability in the month of May and June, but now it is no more there.

[Operator Instructions] The next question is from the line of [ Atul Kothari from Progwell Securities ].

Sir, what has been our capacity utilization in the month of July and August?

Yes. In the month -- it's -- business-wise I can tell you, in gaskets, it's around 85% to 90%, okay? In the forgings, same, 85% to 90%. In MMT it's around 70%. Marugo, 70%. Nippon Leakless, again 80%.

Okay. So sir, we can say, on an average, it is around 70%, right, overall?

Overall, no. It is around 80%, on an average. It's 70%, 80%, you can say, not 80%, 70%, 80%.

Okay, sir. And can -- and when can we expect to reach pre-COVID levels?

So already, if you seen the pre-COVID levels then, of course, you know that, that it was -- the market was down before the pre COVID level also. In the month of August -- July also and August, we have achieved pre COVID levels on stand-alone business there and we have already achieved pre COVID levels. In fact, we are achieving -- in the month of September, we will achieve that also.

Okay, sir. That's great to hear. Sir, can you give some update on the order which we have received worth USD 31 million? So what is the progress on that?

So as you are aware of the progress, we have received the order and we are in the process of developing the products. And as I mentioned that -- in the press release also all that supply will start -- there's a process, you get the order, you start developing the tools, photo will go and then the commercial supply will commence. As we've already mentioned that the commercial supply of these orders will start in -- at second quarter of next financial year, okay? It's already on line. It's already on line.

You will have some revenue this year also.

But that means last quarter.

We'll have some revenue this year as well last quarter. And then we'll start building up from -- as we've mentioned to you.

It's, however, large OEMs. So it's a long-term order. It is not onetime orders.

Okay. Okay, sir. And sir, I mean, sir, there has been -- there will be no delay due to COVID, right, for this order to progress?

No. No. No.

Okay, sir. And sir, if we see then the share of our exports of total revenue has been increasing over the past few years. Now in this post COVID world, what will be our strategy going forward?

Post-COVID world, I think let COVID end first. At the moment, we are focusing on gaining market share in the country. We have the technology. We're already seeing it that we are going ahead of our peers, and we will continue to maintain exports as well. You see, luckily for us, all the travel that we did the last 2, 3 years, has paid dividends today. Because of the fact today we can't travel right now, but the calls that we are getting, a lot of calls on -- the export teams are having calls on a regular basis with be it the U.S., U.K., Japan. So there is...

And what is working in that, when it's -- and nothing is stopped. They're not meeting physically, they are working on Zoom calls and MyTeam meetings.

Like, one of the customers in the U.S. successfully did a virtual audit of our plant for the new product development. So those things are happening as innovatively.

So sir, are there any chances of us capturing market share from countries, especially China?

I think so. Yes, we are very positive.

Of course, whatever the -- and so Indian OEMs, which are getting import from China, I think they -- eventually, it will come down. And even some customers in Europe and U.S., they are giving us business in forging, one customer has given us business, which is importing -- export customer. He is importing from China. He's given 50% share of that business to us. So hence proven, it will grow.

[Operator Instructions] The next question is from the line of Sunil Kothari from Unique Investments.

Sir, congratulation for very good cost management during this very tough time.

Thank you, Sunil ji.

Yes. Sir, my question is, during this last 3 months to 5 months, this challenging time, you must have given a thought and strategy to control -- how to control or reduce costs. So any permanent cost-cutting measures we must have taken or planned and where -- which area we have scope? If you can a little bit qualitatively convey something about possibility of reduction in cost?

So as soon as the COVID -- sorry, lockdown started. Of course, we started -- we were -- we came to know that it's going -- because the problem is not 1-month problem, it is a long-term problem. Then we started putting our head together on the Zoom calls, et cetera, by respective Presidents, and just asked them what we should do that it should not -- we should not lose good people, and we should not take any chance on our quality, we should improve productivity, what we can do? Then we arrived at 10 to 12 measures for each plant, depends every plant has a different scenario. It's not -- one is not common for all. Then we started working on let's preserve cash first, but on production, first, reduce inventory. If you see 30 -- everybody -- this has happened in every company, especially the old companies have a lot of PAT also, so this is near as a old company, we try to reduce our PAT. We identified people which were there pre PAT which were there but since this -- we had to tackle all that, we just made a list of those people, we asked them to go. Fourth, we -- of course, everybody take a hit on the take-home salary because it is -- it was predominant order if the company is not earning from where they will pay. And some welfare activities, we stopped that because -- and then some travel, business promotions, no CapExes, no foreign travel, et cetera, it was not possible also. And local travel is not possible also. We were not aware that it will take so much time. So all these measures company by company we took, and I'm proud to say that we achieved very good saving and next quarter, we will also see the same thing. And thus in some time you can see full year saving also. Localizations. We worked very hard on localizations. It has now start giving results. By December, we will localize near about INR 20 crores per annum of imported it will save my working capital, inventory, et cetera, et cetera. So these are the measures we have taken and we finished back pricing, and price increases because of the euro as well dollar has moved up, and we have lot of price increase with our customers, everything happened in this COVID time. Plus, we went into each and every product line. See what is the contribution of each product? If the product is having less contribution, let's work for operating material, increase productivity and do whatever, so my contribution increase. So these are the measures we have taken, sir.

Right. Great, sir. And sir, my second question is to understand a little bit for maybe near term, maybe another month or 3, we are on a day of 31 August today, so you must have received some schedule of the -- your customers for September or probably October also. So if you can talk a little bit about maybe tractor industry, 2-wheeler, little bit car and see how things seems maybe not because of demand, but maybe to fulfill this inventory, supply chain, all these things because there is a possibility of pent-up demand and there is a-- inventory is also very low at dealer level. So combining all these 3, 4 segments, any hint or a fill you can give?

Yes. Sir -- and I will start with 2-wheeler first. Two-wheeler is -- Bajaj was okay till -- I mean Hero is now quite buoyant this month, next month also. Last month, it was a buoyant. Honda has started picking up from last -- this month also. Honda was -- scooter was slow because they had a lot of inventory. But from others in September, we have got very good schedule from Honda also. So it's like -- in the agri, where John Deere is going crazy. And in fact I'd say -- and in agri, they are going crazy, but you know that after October when the -- this harvesting season over, the demand will come down. But they are quite buoyant looking at our capacity, they are picking up a lot. For the Volvo from this -- from September, their offtake will be double from what we see in July and August. This will give an indication of commercial vehicle because commercial vehicle you know that Maruti is a leader. He is starting -- he is now more or less close to COVID levels, he is working towards that. Everyone is aware of what he is doing. And this is primarily a customer base we have. But keeping in view the order book, actual performance for the month of July and August which August is closing today, we are aware what is happening. And the order book we have in hand for month of September, I'm quite confident and sure that my performance for this quarter will be better than performance -- Q2 performance of last year that I can say.

That's great. And sir, last question is regarding replacement market. If you can talk a little bit about how -- compared to last year, how it is improving month-on-month whichever recent?

It was down as compared to last year because of the local lockdowns we are facing in every state. Okay. Where it is sometimes Chennai closes, sometimes Bengal closes, sometimes Andhra closes, sometimes this closes. But now with our -- I think the phase 4 of lockdown opening scenario, government has said clearly, if there is a problem in some areas close that area, please don't close anything else. I think now with this, the performance going forward will be start -- upload and start recovering.

It's but obvious if people -- at least let's talk about CVs right now, people are delaying the purchase of CVs or -- then obviously, there'll be more replacement market, you'll need more spares in the this thing. So as Mr. Navin pointed out, those issues and hiccups are now clearing up, and it will pick up.

It'll pick up.

[Operator Instructions] The next question is from the line of Apurva Mehta from A M Investments.

Sir, congratulations on -- again, on at least having some positive EBITDA on this low turnover. Really, your hard work, as you know, given you fruits. Sir, only going through everything, I just wanted to know about where we stand in this Heat Shields and the Wire Harness Gasket? What is our current situation? What is the opportunity which we have been working for this Heat Shields for a long time? So can you throw some light on that?

Yes. Like we already told you that we've secured orders from international OEMs in this segment. Now we are working with 3 leading carmakers in the country today, who are going to use this technology. And in fact, our partners, some are supplying these carmakers in Japan. So it's all about localization and getting this product here. So all these new cars that you see on the road, these fancy cars you see on the road, they all require the Heat Shields. And we've been talking about it for a long time that this opportunity will come one day to our country also.

Apurvaji, within 1 month or so we will be closing 3 big orders for Heat Shields. It's under just final stage, very, very close final stage.

Okay. Okay. Is it domestic orders or basically the international orders?

It's orders as well calls if everything goes, it will be around INR 15 crores to INR 20 crores per annum going forward in the next couple of years.

So we added new product portfolio to our kitty. Regarding the gasket, you spoke about the integrative wire harness. Everything is in place.

We have starting supplies so quantities are now 2,500 to 3,000 per month. And we're hopeful by December it will go up to 5,000 to 7,000. And my imported machine will be in the sea -- they are in the sea. They will be arrived by October. So -- but we have got in-house capacity because dies and tools are with us, we can manufacture in other machines to the extent of 3,000 to 4,000 per month, there is no issue. By October end, we will have a capacity of 7,500 per month all that -- if machines, we have earmarked for this.

Okay. So what will be ballpark if we get all the other -- Heat Shields will be contributing next year, maybe what kind of revenues can Heat Shields get and this wire harnessing what kind of ballpark numbers we can get from this?

Sir, on the wire harness, if -- we are quite hopeful that next year, minimum INR 20 crores to INR 25 crores will be the offtake of that. For the Heat Shields, I'm telling you because the government process will start. So next year and -- because it will take -- once we receive the order and government will take, so next year, the local Heat Shields business will start from the second half of next year.

Okay. Okay. Okay. So any new orders? So we are talking for our new press, which is there of 2,500 tonnes of press. Any new orders which we are currently negotiating? Or we may get some sale volume for exports?

We are in the process of getting it. We are like having huge discussions and long discussions with our customer in U.S. on a day-to-day basis, and we are getting at least one order closed every month. We are expecting 1 or 2 big orders we close with them. On the forging front also, the European customer, we are close -- we have recently closed one large order. But that order is -- we are yet to receive. And of course, we -- the process is on.

Okay. The process is on. And even on the gasket side, we were talking about a lot of exports, where do we stand currently? Are we getting there also the -- any new inquiries coming in?

Yes.

Yes. Yes. Sir, this -- last year export is -- was INR 40 crores, approximately INR 30 crores -- INR 38 crores or something?

INR 38 crores.

INR 38 crores. This year, we are expecting a minimum growth of 25% in that in this COVID year.

And the largest will come next year. Because the validation is taking time. But next year, we will see a much larger jump in export. Next year is a, god willing, a breakthrough year for our company.

[Operator Instructions] The next question is from the line of [ Ankit Agarwal from Arc Capital ].

Yes. I have a couple of questions. Sir, what is the company's current debt level as of June 30?

As debt our term loan is around INR 29 crores, and the working capital is INR 104 crores.

Okay. And are we planning to raise any additional debt to meet our order requirement?

No. I think we have recently availed the debt of INR 4 crores in term loan to -- for our imported machines. I don't think so -- my net level will not go up at the end of this year.

Okay, fine. Okay. Sir, and in terms of our working capital, what is our working capital cycle in days?

Hello?

Hello? Yes, sir, I wanted to ask what is our working capital cycle in days?

So working capital cycle is dependent on business-to-business because I think in the COVID period, this cycle has no meaning. So I think let's wait for -- we have got 1 or 2 quarters [Technical Difficulty] okay?

Yes. And sir, so did we face any issues in terms of piling up of inventory during the last few months?

What you are -- can you repeat the question?

Yes, sir, did we face any issues in terms of piling up of inventory due to lockdown?

So lockdown the plants were closed. Outside we had inventory in hand also and not major -- because my vendors are localized vendor and imports (sic)[ Ports ] so that I was able to manage. There's no major issues we faced.

Okay. Fine. And sir, given the current environment, what is our CapEx plan for FY '21 and '22?

In the current environment, we are expecting a CapEx of around INR 7 crore in gaskets and some of -- out of which we have already incurred INR 3 crores on our imported machines. And for the forging, we have CapEx of INR 3 crores to INR 4 crores only for our forging business if the need arises. And regarding JVs, there is no major CapEx plan there.

Okay, sir. And any M&A opportunity if it arises, like enter into a new JV or acquisition?

We are working on one small transaction, and you will come to know when it matures.

See, we are going to do everything in our -- we are going to do everything possible to only increase our market share in the country and international. Whether it is for current technology partners, current JV partners or whatnot because we are very, very bullish about our company. We believe in our company. We don't have much debt -- debt-to-equity is very well controlled. And the next 3 years, I think, if this whole scenario of COVID goes away, we -- you'll see some good results from our company going forward.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for closing comments.

Thank you all for being on the call. And as a promoter group, we have increased our stake and have firm belief that we've built a solid ground for growth. I think the worst is pretty much over. I even see that CVs are bottoming out now. That's the last one to start. We have a good exposure in every segment will take us through. We are working extremely hard to validate our export orders and also to gain market share in the country. I really feel positive within the four. And I think the worst is over. Hopefully, we should get back to you in the next quarter with some better numbers and better results. We are very, very positive as a group. And thank you so much for your time, and that's all from our side.

Thank you.

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