Uno Minda Limited (UNOMINDA.BO) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Uno Minda Limited Q1 FY '26 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 the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sunil Bohra, Group Chief Financial Officer, for his opening remarks. Thank you, and over to you, sir.

Good afternoon, everyone, and a warm welcome to all the participants. On the earnings call today, I'm joined by my colleague, Ankur Modi. We have uploaded our financial results and investor presentation for Q1 FY '26 on the stock exchanges and our company's website. We hope everybody had an opportunity to go through the same. I would like to begin by giving some insights on the economy, followed by the current scenario in the auto industry and our financial and operational performance for the quarter. Post that, we will open the floor for Q&A. The global economy has shown remarkable resilience in 2025, though it faces increasing headwinds from trade tensions and geopolitical instability. The IMF projects global GDP growth at approximately 3% in 2025 and 3.1% in 2026, modestly higher than earlier forecast. However, growth remains below pre-pandemic averages and the risk of further trade escalation loom large. One of the main sources of disruption has been the sharp escalation in U.S. tariffs, especially on imports from China, Canada and Mexico. According to a CEPR analysis, these measures could reduce U.S. real wages by 1.4% by 2028 and shave about 1% of GDP. Similarly, Citi Research and Morgan Stanley warned that elevated U.S. tariffs are inducing structural distortions in the global economy and dragging on the long-term growth expectations. Major economies are now diverging in momentum. U.S. growth is weathering the storm but slowing with projected real GDP at around 1.5% in 2025, down from nearly 2.8% in 2024. Europe's growth is weak and fragmented, while China is decelerating to approximately 4% in 2025, constrained by both external and domestic structural factors. In contrast to global moderation, India's economic growth remains robust, standing out as the fastest-growing major economy. The IMF projects GDP growth at 6.4% in both 2025 and 2026, well ahead of global peers. The RBI also maintains a bullish outlook, projecting around 6.5% growth for FY '26, supported by strong domestic demand and prudent fiscal management. India's continued outperformance is anchored by several factors: a democratic dividend, rising urbanization and a concerted push on Make in India, infrastructure investment and digital transformation. These structural trends are reinforcing its macro resilience amid global uncertainty. Moving on to the automotive industry for the quarter ending June '25, the Indian automobile industry recorded a year-on-year volume growth of 2%, with total production reaching around 8 million units. The growth was largely supported by record export volume growth, while domestic consumption has declined year-on-year basis. Moving on to the PV industry. In Q1 FY '26, the total PV production volume registered a year-on-year growth of around 3%, reaching 1.24 million units. Within this, the utility vehicle segment stood out, underscoring continued strong consumer preference in this category. Contrary to the domestic market, exports grew by 13% to 2.04 lakhs. Looking ahead, segment remains cautiously optimistic. Gradual recovery is anticipated in the coming quarters, driven by the upcoming festive season and expected improvement in rural incomes following a favorable monsoon. Export momentum supported by international demand is also expected to play a vital role in the sector's performance moving forward. In Q1 FY '26, the 2-wheeler segment recorded a year-on-year margin growth of 1% with total production reaching approximately 5.9 million units. The bright spot was exports of 2-wheeler for the quarter reaching 1.1 million, growth of around 23%. The growing export for both PV and 2-wheeler reflects our competitiveness, quality and technological competence. The 3-wheeler segment recorded a robust growth of 10.4% in Q1, primarily driven by strong demand for passenger carriers. The EV segment continued its upward momentum in June '25 quarter with volumes sitting around 5 lakh units. Strong consumer adoption, supported by a wider range of models and improving access to charging infrastructure has been a key driver of this growth. Electric 2-wheeler registration during the quarter was estimated to be around 2.98 lakhs. The electric 3-wheeler reported record growth in registration of 27%, reaching 1.9 lakh units, while electric passenger vehicle quarter registrations were around 38,000. Looking ahead, the automotive industry looks as cautiously optimistic, key macroeconomic indicators such as anticipated above-normal monsoon, which are expected to bolster rural incomes and the cumulative 100 basis point cut in the repo rate over the past 6 months offer meaningful tailwinds. The India U.K. free FTA offers significant opportunities for the Indian automotive and auto component industry. While FPA also opens up India market for U.K. imports, however, we don't foresee significant competition as domestic manufacturing remains cost competitive. Moving on to financial and operational performance for the quarter, you can refer to Slide #7 and 8. Uno Minda delivered a strong financial performance in the first quarter FY '26, driven by broad-based growth across multiple product segments. Consolidated revenue from operations for the quarter stood at INR 4,489 crores. This includes certain incentive income amounting to around INR 69 crores pertaining to prior period. However, for the purpose of like-to-like comparison from corresponding quarter, we have excluded the same from revenues, EBITDA and PAT to derive normalized growth. Consequently, revenue from operations, excluding such prior period income was INR 4,420 crores, registering a robust 16% year-on-year growth compared to INR 3,818 crores in Q1 FY '25. This performance reflects healthy traction across core product lines such as switches, lighting, alloy wheels and seating systems, along with accelerating momentum in emerging segments, including sensors, ADAS, and controllers. Adjusting for the prior period income, normalized EBITDA stood at INR 474 crores, broadly in line with the revenue growth while maintaining stable EBITDA margins of around 10.7%. It is worth noting that these margins were achieved despite the impact of annual cost escalations and manpower cost increases, which are above industry averages during the quarter. Finance costs rose to INR 44 crores, primarily due to increased borrowing undertaken to fund ongoing CapEx and working capital requirements. Depreciation expenses also increased by INR 18 crores, reaching INR 159 crores, reflecting the commissioning and capitalization of new facilities over past years, including the 4-wheeler lighting plant at Khed City and the additional 2 million capacity expansion at the 2-wheeler alloy wheel facility in Supa. Share of profit from associates and joint ventures rose to INR 47 crores in Q1 compared to INR 37 crores in the corresponding quarter last year. This improvement was primarily driven by the strong performance of PV Uno Minda, and Densoten Uno Minda, while results from ROKI and TRMN remain steady. Profit after tax attributable to shareholders stood at INR 291 crores. On a normalized basis, PAT was INR 239 crores, reflecting a healthy year-on-year growth of 21% over INR 199 crores in Q1 FY '25. Coming to the business segment-wise performance to Slide #11. The Switching Systems business continued to deliver an outstanding performance in the quarter, contributing significantly to Uno Minda's overall revenue mix. The segment reported revenues of INR 1,111 crores during the quarter, marking 16% year-on-year growth and accounting for a substantial 25% of the company's consolidated revenue. The growth was fueled by multiple drivers. Export performance remained particularly strong in the 2-wheeler switch category. Export in this category reached a new quarterly run rate of INR 68 crores, reflecting our globally competitive and robust quality systems. We are pleased to report a new export order from a U.K.-based motorcycle manufacturer for supply to the Thailand plant, further validating our global capabilities. The relocation and expansion of our 4-wheeler switch operations under Mindarika from Manesar to Farrukhnagar is progressing as planned and is expected to be commissioned by Q3 FY '27. During the transition, we anticipate a temporary overlap of costs as we manage operations across 2 plants. Nonetheless, this move will enhance our operational efficiency and capacity over medium to long term. The Lighting Systems business continues to be a cornerstone of Uno Minda's growth trajectory, delivering another robust performance during the quarter. The segment reported revenues of INR 1,013 crores, contributing a substantial 23% to the company's consolidated revenues. This reflects a healthy 13% year-on-year growth compared to INR 894 crores in Q1 FY '25. The strong performance was primarily driven by ongoing transition to LED technology and increasing customer demand for advanced, aesthetically appealing lighting solutions, particularly in the front and rear light applications. Our European lighting operations continue to elevate their position as a technology leader and have recently secured an order from the next-generation dynamic logo projectors from a leading luxury automotive OEM. Looking ahead, the business remains sharply focused on expanding its portfolio of next-generation lighting services, which includes projector head lamps, dynamic logo projectors, ambient lighting and adaptive lighting systems. The Casting business delivered a robust performance in the quarter, generating revenues of INR 824 crores, which accounted for 19% of the group revenues. This included INR 431 crores from the 4-wheeler alloy wheel business, INR 243 crores from 2-wheeler alloy wheel and INR 149 crores from aluminum die casting. This growth was driven by commissioning of new capacities, including 30,000 wheels per month line at our 4-wheeler alloy wheel facility in Bawal and an additional 2 million wheels per annum capacity at our 2-wheeler alloy wheel park at Supa. Construction of our greenfield 4-wheeler alloy wheel facility at Kharkhoda is progressing well. The first phase of the capacity of 3,000 wheels per month is expected to be commissioned in Q2 of the current fiscal. Our Seating Systems business continued to contribute meaningfully, recording revenues of INR 320 crores in Q1 FY '26, which represents 7% of consolidated top line. The segment delivered a strong year of growth of 18%, primarily driven by diversification of customer base for 2-wheeler seats. Looking ahead, we expect the Seating division to maintain its growth momentum backed by exports to new customers, supply of aesthetic seats to more customers in domestic market and volume growth from newly added customer in 2-wheeler seat business. Acoustics segment reported revenues of INR 187 crores in the quarter, contributing a steady 4% to consolidated top line. The European automotive market continues to experience volatility with muted demand impacting the acoustics segment. The decline is attributable to both softening end market demand and shift in OEM preference from dual horns to single horn configurations, which has resulted in overall contracted revenues. We are actively pursuing multi-pronged strategy, including improving efficiency and productivity and driving cost optimization across manufacturing and sourcing in an effort to revive the profitability of our European acoustic business. Moving to the other product segment, which delivered a strong performance, generating INR 966 crores in revenue during the quarter, registering year-on-year growth of 30%, contributing 22% to the consolidated top line. Within this controllers contributed INR 167 crores, sensors and ADAS INR [ 215 ] crores; blow molding, INR 110 crores, Uno Minda FRIWO JV INR 78 crores and the alternate fuel business around INR 110 crores. The remaining revenue was driven by aftermarket trading, external sales from Uno Minda Satellite Engineering services in Europe and battery sales in the aftermarket channel. The controller business, primarily supplying wireless chargers and EV components for electric 2-wheelers and 3-wheelers continue to grow due to increased penetration of wireless chargers and driving EV 3-wheeler volumes. Notably, during the quarter, we commenced commercial sales of USB home charging solutions for electric 4-wheelers. These units are currently being supplied to dealerships to build market inventory ahead of the model launches. OEM deliveries are expected to commence in the next 3 to 4 months in line with the associated model launches. At present, EVSE production is managed under the controller division. Our sensors and ADAS business also performed exceptionally well, driven by increasing demand in localized networks. A key highlight during this quarter was the commissioning of our new camera module production line. We are proud to share that Uno Minda has become the first company in India to localize camera module production for RPAS and ADAS systems, components that were previously fully imported. Commercial supplies have begun, and we anticipate a ramp-up in volume in the coming quarters. Electric mobility remains a central pillar for our growth strategy. Our integrated e-office for electric 2-wheelers, including chargers, BMS, controllers, sensors continues to gain momentum. During the quarter, we completed the acquisition of the remaining 49.9% stake in UMESPL, our joint venture with Friwo’s.. Additionally, Uno Minda acquired the IPR, R&D team and technical knowhow related to EV drive technologies, including control hardware and software for Friwo's operations in Germany and Vietnam. This strengthens our in-house capability to scale and innovate across the electric drive value chain. We'd also like to inform you that the Board of Directors has granted in principle approval for the acquisition of remaining stake in our JV, Uno Minda Buehler Motor Private Limited. The acquisition will be executed in one or more phases subject to mutually agreed terms. The Board has authorized M&A committee to determine and approve the final purchase consideration and other terms of the transaction. Discussions with our joint venture partner, Buehler Motor are currently underway, and we expect to finalize the agreement over the next few months. While our direct dependence on rare earth magnets is limited, we have witnessed some indirect impact due to reduced volume from OEMs, specifically in the EV 2-wheeler segment. Nevertheless, we are mitigating this through alternate sourcing and close collaboration with our OEM partners. We are pleased to inform you that the construction work has commenced on our new greenfield facility for high-voltage EV powertrain components under our JV with Inovance Automotive. Phase 1 is expected to be commissioned by Q2 FY '27. However, to cater to volume demand, we may commence supplies [indiscernible] from our joint venture partner ahead of the plant's commission. As previously communicated, the JV with Inovance requires regulatory clearance. They have now formally applied for various approvals and are actively engaging with the regulatory authorities to address any queries and expedite the approval process. Moving to the aftermarket international revenue, I think you can refer to Slide #14. For the quarter ended June 25, our aftermarket business reported revenues of INR 329 crores, contributing approximately 7% of consolidated revenues. In addition to these direct aftermarket sales, several of our business verticals also have components to the spare part division of OEMs, which has seen notable growth in recent years. With OEMs increasingly focusing on strengthening their aftermarket presence, our SPD-linked sales have scaled up significantly. During the quarter, the SPD sales stood at INR 248 crores. The combined revenue from aftermarket and SPD channel amounted to INR 577 crores, reflecting the growing importance of these segments in our overall business mix. Our internal business contributed approximately 11% of total revenue during Q1 FY '26. While sales from certain geographies such as Europe witnessed some decline, this was effectively offset by robust growth in exports from India. The dip in the share of international business as a percentage of total revenue is largely attributable to the stronger growth momentum in the domestic market even as internal sales remains relatively stable. We'd like to clarify that the ongoing U.S. tariff situation has no material impact on our operations as export to U.S. constitute less than 2% of our total revenues. In fact, we have witnessed growing demand from -- demand in the U.S. for our 2-wheeler products, reinforcing our competitiveness growth in the global market. Moving to our debt levels. Our net debt as of June was at INR 2,228 crores compared to INR 2,091 crores as at March 31, '25. The net debt has increased on account of expansion CapEx as well as expenditure of INR 130 crores for land at Chhatrapati Sambhajinagar. While sustaining and growth CapEx has been largely financed from business cash flows, the capital expenditure primarily on land bank has resulted in incremental debt. Our net debt to equity as at 30th June stands healthy at 0.34. As you look ahead, Uno Minda is firmly positioned for sustained and long-term growth. Our strong fundamentals are backed by a well-diversified product portfolio, deep customer relationships and continued investments in emerging technologies, including electric mobility, ADAS, advanced electronics and automotive lighting. Our consistent track record of outperforming the industry, delivering 1.5x volume growth over market averages demonstrates the strength of our OEM partnerships, our innovation-led approach and our operational discipline. We remain focused on enhancing both our capacities and capabilities. Currently, we have approximately 13 ongoing expansion projects across multiple key product lines. Among these several are slated for commencing during the current financial year, including Phase 1 of the 4-wheeler alloy wheel plant at Kharkhoda, the lighting manufacturing facility in Indonesia, the die casting capacity at INR 504 crores. In addition, the ramp-up of recently commissioned projects, including the 4-wheeler lighting plant at Khed city and Gujarat, the expanded 2-wheeler module plant at Supa and four-wheeler module plant at Kharkhoda are expected to further support growth in FY '26. We enter the next phase of our growth journey with confidence, agility and a clear strategic vision. We remain committed to delivering long-term value to all our stakeholders and are optimistic about the opportunities that lie ahead. With this, I would now like to open the floor for your questions.

[Operator Instructions] The first question is from the line of Chandramouli Muthiah from Goldman Sachs.

My first question is just on the castings business, which is well levered to SUV growth in India. So after a very strong run of consistent SUV growth, I think June 2025 seems to be the first month where SUV growth sort of became flat after a period of almost 3 successive years of strong sort of high single-digit to mid-double-digit growth. Just want to understand near term over the next 2, 3 quarters, how you're thinking about castings growth? Is this having some impact on the pace at which alloy wheels and castings might grow in the near term?

Yes. Any other questions, Chandru.

Yes. So second one is just around disclosure in the annual report. I think you have disclosed that roughly 4% of revenues being spent on R&D. I think at a stand-alone level, it seems to be more like 1.7%. So I just want to understand the gap there. And lastly, I just wanted to request if you could repeat the split of other segmental revenues across controllers, sensors, ADAS and so on and also the split of the castings business between alloy wheels and other castings. We just want to get that upfront.

Okay. So thanks, Chandru. So starting from bottom split of Others, I think I did give both Others and Casting, so maybe you can take it offline. Disclosure in annual report, you mentioned stand-alone as 1.7%. I think this can also be taken offline. In terms of casting business, we remain very, very optimistic, Chandru. As you know that we have currently significant investments going on in both 2-wheeler alloy wheel business and also 4-wheeler alloy wheel business and both the expansions are obviously linked to some customer indent or POs in hand. As you know, we don't normally commit any CapEx unless we have a PO in hand. So from that perspective, we are quite optimistic. I think only challenge or the part which we are not able to comment on is that the application ratio. So while the application ratio has improved significantly over the past few years, currently, if you see it is a little more stabilizing at current levels of around 43%, 44%, which as we have been talking globally, it is more than 2x of this. So obviously, India will also have this run up, but it's very difficult to say when this run up, which quarter this will happen. So we have to be ready to catch that upside. That's number one. And number two, in the past, we have actually been doing small, small expansions like sequentially, one finished and other started. And there has been a consistent feedback that we could look at larger platform. So that's why if you see Kharkhoda, while we have eventually sort of blocked capacity multiple, first, we are doing only 60,000 and then gradually, it can be taken on in a multiple of 60,000, which again to do smaller 30,000 multiples. So from that perspective, we are quite optimistic on PV application ratio. While you mentioned SUV sales is maybe taking a low growth or whatever number you said about June '25. But this is, I think, just an aberration, we believe because application ratio only speak about what is not necessarily only SUV. It goes through the sedan or the compact cars or the luxury cars everywhere, right? So application ratio is not something which we keep closely track on. And it's not SUV necessarily have only alloy wheels. They also have steel wheels. So from that perspective, we need to keep track of application ratio, how it pans out and how we can impact the opportunity. And same in terms of 2-wheeler alloy wheel also, recently, in this last quarter, the application ratio has moved a little bit towards steel wheels, which as we hear from our customers, they do expect to move back to the alloy wheels in the coming quarters. So from that perspective, we are quite optimistic. And as we move forward and if we have to reach global levels of application ratio, I think there is a huge upside from where we are today.

The next question is from the line of Mukesh Saraf from Avendus Spark.

My first question is on the new plants that you're looking to set up for EV castings with INR 210 crores of investment there. So could you give some more sense would this focus on both 2-wheelers and 4-wheelers? And also what kind of order book we might have in hand and what kind of peak asset turns we can do on this kind of an investment on these castings?

Right. That's number one. Any other question, Mukesh, you have?

Secondly is on the acquisition of stake of Buehler, the JV that you have with Buehler. So now that we have done Friwo, we are also doing this. So I just want to understand the thought process there, both the JVs that we had focusing on 2-wheeler and 3-wheeler EV components we have acquired or we are looking to acquire the stake there of the JV partner. So just trying to understand the thought process there as to is there a change in approach from the management side based on what your OEM customers are now doing with respect to in-housing or outsourcing? So some more sense there would help. So these are 2 questions.

Again. So new plant for EV casting, as we said, this is primarily a backward integration for our upcoming EV plant in Sambhajinagar at Khed for EV 4-wheeler. And this casting, as you would have seen, they are very different castings than the normal castings, which we do for like engine cover or camshaft or cylinder head cover or lever. They are very simple thing. This is a very, very complex 2,500 tonne castings. So this plant is in first phase, directly sort of dedicated towards the EV 4-wheel casting. So if you see the big drivetrain under the hood, it comes under complete aluminum casing. So this is about that aluminum casing. Obviously, we do have flexibility to -- once we set up, flexibility to sort of see if we can get any other components, but that's the first phase. In terms of asset turn, since it's a high CapEx business, the asset turn definitely is going to be lower. It's actually less than 1 in terms of the expected asset turn. And acquisition of stake of Buehler and Friwo, I think there are 2 different things. So Friwo, what we have got is entire -- not only the stake but also the technology piece of it. So we've got all the hardware, software, all the people, entire setup in Germany and Vietnam. So from technology perspective, it's completely now on Uno Minda. There is no dependence on any third party. But with Buehler, this is a little different because our JV partner here was -- obviously, this business was wanting some capital and JV partner was having cash friends even in Germany, and they were very keen to run the partnership. But because of lack of capital, it was felt -- the Board said why not we sort of take over the company and then convert JV into a TLA. So unlike Friwo, where there is no TLA, technology will be fully ours, we will continue to have a TLA with Buehler. So otherwise, there is no change in approach as you have said, we are fully committed to all our partnerships.

Got it. Understood. Because the Buehler business, we haven't really seen a scale up there. I think it started about 3, 4 years back. We haven't seen much of a scale up. So that's why the question there. But understood.

You're right, Mukesh. That's -- we all know this was the challenge we have faced one of the exceptional case which we have come across in terms of our casting business, and we are trying to work on this.

[Operator Instructions] The next question is from the line of Aditya Jhawar from Investec.

Congrats on a good set of numbers. My first question is, clearly, it was a very good all round performance across businesses, and Harita has also started contributing well in growth in the last couple of quarters. So the first question is, if you can give some color in terms of what kind of business wins we are having in terms of customers, what kind of customers, 2-wheeler CVs and geographic split? And incrementally, how should we think about growth in Harita? That is question number one. Even the second question is, you answered partly the Friwo part. But Sunil, this is just about 4 years where we are taking over the -- from a joint venture, it is becoming a subsidiary, 100% subsidiary. So is there a change in thought process from Friwo side? Or is there a conflict of interest with other JVs like Inovance? And incrementally, what about the technology sharing that we would have got from Friwo? How should we think about it? You mentioned that you're procuring the current assets, but throw some light on that. And the final question is on our margins. While we have seen consistently our top line growth has been quite healthy in the last couple of years, but somehow we are not getting the full benefits of operating leverage. Now as a lot of the growth is expected to come from new ventures, like the other segment which has new products, how should we think about margin trajectory, keeping into mind the change in product mix and the benefits of operating leverage? That's it from my side.

Thanks, Aditya. So let me go one by one all those questions. So first is what kind of business wins in Seating. So as we have said in the previous quarters also in Seating, there has been a significant success in terms of getting the suspended seat business, both in India and also exports. And also, we have been able to get into one of the incumbent 2-wheeler OEM with a significant share of volume, and both of them have started playing part. And as we move forward, these are also still in the ramp-up phase. So we are very, very optimistic in terms of the seating business. Like we said, we will double this business in 5 years. We are almost there. And let's see if we can replicate that in another 5. So we are very, very aggressively working on this seating business. And in terms of Friwo, yes, you are right, there is a change in Friwo side because Friwo, if you go through their complete, what we call, the website and announcement, they're also entity, they have actually been exiting businesses in the last couple of years because of their own internal issues. It's run by 4 set of promoters, et cetera. So they have their own compulsions and they have been sort of exiting the businesses. And we saw opportunity there because here, it was not only the equity stake, but we got the entire technology part also. So in terms of the motor controller software, which is the key here in terms of all the technical know-how, in terms of all the people which -- and the entire setup, which is there in Germany and in Vietnam, we sort of took control of everything. So nothing is now left with Friwo. And yes, you are right, this has happened in 4 years, but we actually saw it more as an opportunity than anything else. Coming to margin, yes, you are right. And we have been consistent. I think last year also, we spoke about next 2 to 3 years is where we are in a super growth phase. We have like 13, 14 projects ongoing. And a lot of these costs nowadays actually, we can't capitalized, they are all charged off to revenue. And all these projects as and when they come into operations, they don't generate revenues or profitability. So even if we generate some revenue, it takes roughly a couple of years to turn to profitability and our target normally, as you know, third quarter of production to achieve the target returns. So there are initially a drag. And despite so much of investments are ongoing, we are able to maintain our margins or our guidance margin. But as we move forward, if you split this into 2, you see the business which are stable versus businesses which are either at the incumbency stage or in the ramp-up phase, you'll see that difference. So early ones are actually growing. But because of this, it's actually been pulling down. So in maybe short to medium term, maybe a couple of years, we do expect these things to stabilize and you will see some, hopefully, some margin expansion as well.

[Operator Instructions] The next question is from the line of Siddhartha Bera from Nomura.

Sir, a couple of questions. First on this camera model localization. So can you just throw some more color on this? How much are we actually investing? And in terms of ramp-up, will this be visible in the revenues because we probably are already importing this. So the benefit may be more from a margin perspective only. So some thoughts there, how much what are we doing there? Second, on the lighting segment. So like you have also talked about a lot of tailwinds in terms of premiumization and new orders. And we have opened a new plant also. So how should we think about the ramp-up here? How is the order book? Can we expect the growth of 13%, which we have done in the current quarter to accelerate further given these tailwinds? And if you have the 4-wheeler, 2-wheeler mix of lighting, that will also be helpful. And some clarification on this period incentive. What was this exactly? Why did we get it now that these are some of the questions there.

Thanks, Siddhartha. So going in the same sequence as you have asked some questions. So camera module localization, as you said, this has just started. This is an in-house camera development at our R&D center. And this is just the start-up. So as of now, it's both import also and local manufacturing also. And as I said, in the next couple of quarters, we'll see a complete ramp-up. Overall, you will not see a significant delta in terms of top line because it's basically localization. So imports will be substituted to your own manufacturing. But there will be less trading as we move forward. And moving to the next lighting segment, premiumization, new plant ramp-up, can we expect 13% growth, if I heard you said 13 or 30...

13. This quarter growth was, I think, 13%. So can we expect [indiscernible]?

Yes. So definitely, we are quite optimistic, and we are actually planning for a significant growth. But as you always know that the growth is dependent on the industry volumes. So if industry volumes and that to the module we supply, they definitely we will continue to grow. But to ask -- to straight to your question, 13% growth possible also. I'm sorry, I will dishearten you in commenting on the numbers per se, but I can assure you we will definitely outgrow the industry growth and continue to do so in this segment. In terms of 2-wheeler and 4-wheeler mix for the quarter, roughly our Indian -- so overall, the sales was around INR 1,013 crores for the quarter. And Ankur, do you have 2-wheeler and 4-wheeler sales?

Yes, we have. So domestic 4-wheeler market did somewhere around INR 450 crores of revenue, whereas domestic 2-wheeler did somewhere around INR 390 crores of revenue.

And in terms of incentives, Sidhartha, you know that wherever we are putting these expansions and [indiscernible] this base, I think [indiscernible] also, there are certain government incentives which are entitled to and which helps you sort of remain competitive initially because the incentives are also for a very limited period. So we have been able to get certain approvals within this quarter, which were sort of pending. And that's why that income of around [ INR 60 crores INR 69 crores ] has been booked during the quarter, which was relating to period prior to 31st of March. And we thought it's important to sort of highlight because it's not for the current quarter.

So this is part of the plant incentive and not the PLI. Is that the right way to look at it?

Yes, you're right.

Okay. Okay. And sir, lastly, on this project expansion, which you have put out in the PPT, I think there are some segments like wheeler motor and EV systems, which probably are for the prior period and not for this period. So just...

No, it was put up because earlier when we said if you see it phase to be spent over 5 years and 6 years. So only Phase 1 was commenced and we have still not invested full money like we have partly invested instead of INR 110 crores, the investment today is only INR 25 crores. And same for ES, I think INR 150 crores or something like that. So it is not fully done. Yes, Phase 1 is commenced.

Okay. Because sir, start of production also looks like it's FY '24, it is mentioned. So I thought it was probably something in the....

Yes, SOP is done, but the CapEx has not fully been spent.

Okay. Okay. Understood, sir. And lastly, sir, on this EV SC segment, how much was the contribution in the current quarter? And how do you see the ramp-up for this segment?

So as I said, as of, it's very, very small volume because it's primarily going into the dealerships and the setup there. The SOP is roughly around 3 to 4 months due, which is linked to the OE launch of vehicle. So maybe that time we are better placed to give you some numbers.

The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities.

Congrats on continuing the robust performance. Sir, first on the order book, sir, any update for the EV Powertrain Inovance JV and the Sunroof JV? And on the camera module, sir, do you see more opportunity outside the regulation part like there are also CV regulation coming with ADAS in truck and buses. So do you see that kind of opportunity also going ahead? This is the first question, sir. And second is on the -- we have seen a very strong growth in aftermarket this quarter. Any specific to call out, sir? And the third question is, sir, just on the Clarton Horn, it's a loss-making as on last year. Just want to understand over the medium term, what's the plan there for that business? And lastly, sir, CapEx guidance for the next year, sir?