Gabriel India (NSE:GABRIEL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Gabriel India Limited Q2 FY 'twenty seven Earnings Conference Call. This conference call may contain forward looking statements about the company, which are based on beliefs, opinions and expectations of the company as of the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participants will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded.

0:47 I now hand the conference over to Mr. Mahindra Goyal, Group CEO and Managing Director, for opening remarks. Thank you, and over to you, sir. Good morning, everyone. I hope I'm audible. Good morning. A very well welcome to all of you, and thank you for joining the call today. And we'll take this opportunity to begin with an important strategic development for Gabriel India before we get into the operational review. As a strategic initiative, 10/06/2026, we signed a joint venture agreement with a company named Faurecia Automotive Seatings India Limited, part of the global automotive technology group to establish for Asia, Island Seating India Private Limited, which was subsequently incorporated on 10/19/2026.

1:49 This represent another important step in Gabriel India's transformation into a diversified technology led mobility solution enterprise. The joint venture will focus on developing, manufacturing, supplying seat frames, and complete seating systems for passenger vehicle, where the Gabriel India will be holding 50% less one share, and four via will be holding 50% plus one share. With this joint venture, we bring here four via global seating technology, product engineering, complete seat capabilities, and manufacturing expertise with group's strong relationship with Indian OEMs, extensive local operating footprint and deep understanding of the domestic automotive market.

2:40 Importantly, this partnership builds on the trust relationship between Forvi and Anand Group in in the emission control business that was going on before 2000. And with Forvia, I think they acquired a partnership on this business globally in sometime in two thousand nine, ten. So while the business of emission control has been before 2000, but partnership with four BI is almost 2009 2010 onwards actually. The venture is expected to benefit from access to four years wider seating product and engineering portfolio and to strengthen manufacturing supply chain and talent capabilities in India. The partnership is fully aligned with four years hitting ambition to reach approximately 10% market share in India over the next five years as its fast...

3:34 First growth milestone. For Gabriel India, entry into the passenger vehicle seating system is strategically important because it further burdens our our product offering into the powertrain existing category, strengthens our participation across the automotive value chain, provides a platform for long term technology led growth. The JV reaffirms our stand that Gabriel would be the principal growth engine of Allen Group's automotive business, so that continues. Moving to our consolidated performance revenue from operation for quarter two financial year twenty twenty seven stood at $160.08 crores, reflecting a year on a growth of 23%. For half year 'twenty seven, consolidated revenue stood at INR 3,034 crores, listing a growth of 19%.

4:26 Consolidated EBITDA for Q2 'twenty seven is stood at INR 141 crore, reflecting a growth of 12% with an EBITDA margin of 8.8%. And half year consolidated EBITDA stood at two sixty five growth of 9% year over year with an EBITDA margin of 8.7. Coming to our equity accounting investing companies, which includes Zena, Anand India Private Limited, Henkel Anand India Private Limited, SK SK and Gabriel India Private Limited, along with our new strategic investments in HL Mando, India Private Limited, and HL Clomo India Private Limited. Our share of profit before tax stood at 48 crore in q two financial two thousand seven, reflecting a year on a change of 39% over... For h one twenty seven, this stood at 91 crore, which grew almost 24% year on year.

5:22 Importantly, the contribution from HCL, Mando, Anand reflects only for a few days as the transaction took place on 09/11/2026. So results only including very, very few numbers in the current quarter. Those will start reflecting on the full quarter basis from the next year from the next quarter. Consolidation PBT before exceptional item for Q2 financial year twenty stood at INR 148 crores, reflecting a growth of 14 with a PBT margin of 9.2%. And half year, PBT for exceptional items stood at INR $2.81 crore, is seeing a growth of 10% year on year with a margin of 9.3%. Overall, our consolidated performance reflects the conclusion from now from operating subsidiaries, together with the share of earnings from our joint venture and associates under the expanded business structure.

6:18 So it means that now now onwards actually that our results are are stand alone Gabriel, of course, subsidiaries companies of Gabriel and also profit coming from associate companies, HL Anand, HL Mando, HL Clomo, those will start reflecting from the following quarters on a full quarter basis. But this quarter, we had results from Ankur, Dana Anand and other subsidiaries basically. With the strategic investment undertaken through Project Rise and Project Jupiter, we continue to strengthen our presence across a wider range of automotive component and the growth business. So those results will start to keep on moving now into our business.

7:04 I'm also pleased to announce that board of directors have declared an interim dividend of INR 2.15 per share, having the face value of INR 1 each. With this, I would now request to mister Jaggi to to update you on a standalone Gabriel and also the industry trend. And before mister Jaggi start, I take this opportunity to wish you all a happy Diwali. Thank you. Thank you, mister Guel. Good morning, everyone, and warm welcome to all the participants on the call. Coming to the automotive industry, manufacturing activity remained quite strong during the quarter two, FY twenty seven. This was supported by the GST led affordability, improving financing conditions, and resilient rural demand supported the festive season momentum.

7:57 Coming to the two wheeler segment, the production grew by 16.5% y o y in quarter two f y twenty seven, while overall production growth for h one f y twenty seven stood at 19.5%. Scooters continued to outperform the industry, recording strong growth of 31 during the first half of the FY twenty seven, while motorcycle production increased by 14%. Coming to passenger vehicles, industry production increased by 25% year on year in quarter two FY 'twenty seven, while growth for H1 FY 'twenty seven stood at 21%. Utility vehicles continue to lead the segment recording growth of 25% during h one FY twenty seven, reflecting sustained customer preferences for SUVs.

8:50 Commercial vehicle production registered a very strong growth of 34% year on year in the quarter two FY twenty seven, taking the overall growth for the first half of the year to 25%. During the first half, LCV production increased by 27%, while the M and HCV production grew by 21%. Three wheeler production also remained healthy, growing by 24% in quarter two and thirty 4.5% during the first half of the year supported by strong last mile mobility and cargo transportation demand. Overall, the industry performance reflects resilient domestic demand and improving customer sentiment. Although geopolitical uncertainties and volatility in crude oil and commodity prices remain important factors to monitor.

9:36 Coming to our q two FY twenty seven performance, as explained in the previous quarter, following the completion of restructuring, our financial results now reflect the expanded business portfolio Gabriel India. During September 26, we successfully completed the allotment of INR thousand crore of unsecured rated listed and redeemable non NCDs through private replacement carrying an annual coupon of 8.15% with annual for three years. This form part of our financing arrangements to support the company's strategic growth and expansion initiatives. Coming to the stand alone performance, revenue from operations stood at INR $13.99 crore in quarter two FY 'twenty seven, reflecting a Y o Y growth of 23%.

10:26 The performance was supported by demand across our core suspension business, aftermarket operations and contribution from the Enchemical business added to the restructuring called as the fluid business. For h y... H one, FY twenty seven, stand alone revenues stood at 2,673 crores, registering a year on year growth of 21%. Stand alone EBITDA... Adjusted EBITDA for quarter two stood at INR 115 crores, reflecting a y o y growth of 15% with an EBITDA margin of 8.2%. For h one, FY twenty seven, adjusted EBITDA stood at INR $2.22 crores, registering a growth of 13% y o y with an EBITDA margin of 8.3%. Stand alone PBT before exceptional items for quarter two stood at 89 crores representing Y o Y growth of 7% with PBT margin of 6.3%.

11:21 For h one FY twenty seven, PBT before exceptional items stood at $1.88 crores, registering a growth of 17% year on year with a margin of 7%. I also take this opportunity to wish everybody a very happy Diwali. And with this, I come to an end of my opening remarks. Now request the moderator to begin the question and answer session. Thank you. Over to you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Participants, please limit your questions to two per participant.

12:20 The first question is from the line of Jay Kale from Ilara Capital. Go ahead. Good morning. Thanks for taking my questions and greetings to the management. And also congratulations on your JV with for the addition of new product. Sir, my first question is in terms of your vision, $20.30 of 50,000 crores, you know, you seem to have multiple parts to reach there apart from organic and group consolidation, You know, like new JVs, buying out companies, expanding product portfolio, and existing group JVs as well. Which which of these according to you is likely to be a bigger opportunity in the next two to three years as per your discussions currently? And also, any threshold the management has for these actions in terms of, you know, what return profile, margin profile, technology client access you would want from your addition of new products? How should we think about these likely opportunities?

13:21 Okay. Thank you. So I've been considering our recent statement of 50,000 crore in 2030. The current initiative which we have taken, in the current year, where we have added a couple of new joint ventures. Of course, one is HL Clomo India and other very recently on the seating side with the Courvia Group. So I think these are the very, very important joint ventures with the journey of INR 30,000 INR 50,000 crore in 2030. It's very difficult to share the numbers. As I said, it's very, very important business aspects from these two businesses.

14:16 Simply that they are high value items. That is one. Generally, their product value could be, I would say, in the range of... For the passenger car, 30 to 50,000 per car set when it comes to the product value. So so that way, I think these business will have a good prospectus. And especially on ADAS side, as you will know that ADAS regulations are expanding in the industry with a passenger car, with a two wheeler, three wheeler and of course in the commercial vehicle. And I think that will give us more and more opportunity growing our market in this segment. And also the seating side, I think if you look at from the car perspective, it's very important that interior of the car is going to play a very key role in the growth and from the product contribution side. So the seating is one thing that is is primarily will add lot of value from the technological changes point of view within the interior setup in the car. So I think with these two joint ventures and of course the way the Indian market has grown in the current year, I mean for 2026, the growth which we have seen, It is taking us closer to our target of 2030.

15:40 Of course, we are not there yet and for which we have a good time and good preparation to to to visit or achieve our strategic objective. And from the technology point of view, I think we continue. As I said, that with our global players, so ADAS is is one of one of the global players, HL HL Group, Mando, which is dealing with the brakes and the steering system and having... Helping... Providing a integrated solution from the technology point of view, either product will come come from the different companies, but from the technology point of view, it helps to integrate the technology in the HR system.

16:25 And, of course, Forvia is one of the leading player in the technology when we talk about the seating. So as as usual, we continue to work with the global players who are who are their market leader in their field, and that is what that is what our reason to bring technology or focus technology in the future. Great. Thanks for this. Next question is regarding the Porvir Seating JV. You mentioned that the mechanisms portion is out of the JV and it will be supplied directly by Porvir. If you could just give a broad sense of what is the content per vehicle and how much of that is in the JV, and how much is, you know, not in the scope of the JV? Yeah. So I think when we when we talk from the customer perspective...

17:15 For the customer perspective, we are going to quote for the entire seating system, which will include the mechanism part also. So roughly, after I share any number, maybe mechanism will contribute around around, I would say, 20... 15 to 20% of the car seat overall. And... But as far as the joint venture is concerned, we are the single phase to the customer for the providing entire solution. And while in turn, we will be procuring mechanism from the four v as a 100% owned company in India, actually, basically. So as far as the business is there, we are 100% seating seating arrangement business.

18:01 So four via mechanism company will be the integrated supplier for the mechanism to the joint venture. Understood. Also, I've got a few quick questions on your JVs, on your subsidiaries. If you've seen the flat margins of some of these subsidiaries have been a little volatile, actually, if you see Henkel. If we just throw some light, is it got to do with some of the commodity pressures that we are seeing? Because while Dana performance has been good, Henkel has been a little subdued in fat margins. Any seasonality over there if we just slow the slow supply over there? So there's no seasonality. It's only... I think the business are globally impacted across India all because of the commodity changes.

18:50 And, of course, there is a, you know, the logistic increase. And, of course, everybody is running behind the demand and trying to meet the customer customer demand very regularly, actually. So that, of course, putting a lot of pressure on on the logistic cost as well. So it's not a seasonal kind of a thing. It is just a, you know, a situation where there is a gap between between the price recovery from the customer and the price cost which we are incurring right now. So that is the only thing. So which is true to every business. The only only difference between Dana, Dana has a lot of exports. So we continue to take advantage of the exchange benefit, which is offsetting even even the commodity impact, actually, basically.

19:43 So otherwise, the challenges for the businesses are same, whether it is Enkelo, Dana or Gabriel. But yes, there are certain disadvantage in certain businesses with respect to the exports that is benefiting and equating or offsetting the extra cost basically. Understood. Just one last from my side. I'm sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Amit Hiranandani from Philip Capital India Limited. Please go ahead. Just a following up from the previous participant on the seating business. Can you just explain basically more on the Seating business? Because the competitive scenario looks to be very tough.

20:31 And generally, each OEM have at least one core supplier in the Seating business. And secondly, also wanted to understand is the existing Porvir business in India, whether it will be part of this JV? And is there any kind of royalty or a technical piece involved here? Yeah. Thanks for your questions. So, again, as I said, it's a it's a market which is already... Players are there. And same way, I think this automotive industry market is growing as well. So so that is one part of the business aspect. Second part of the business aspect is that I don't want to say that somebody has having the technology or not in India, but we feel that the company like Forvia, the organization like Forvia, which is a global leader for many, many years in this industry, while they were not in India, but they have been global players for many, many years. I think we can differentiate in India with respect to the technology, which we should be able to take advantage with the risk competition, actually, basically. And I think when it comes to to the complete seating management, we should be able to take a good lead and also grab some market share in the growing market actually. So we are confident because of the current technology available and and the technology which company can provide in future.

22:01 So that's what our our confidence level of... Is still relevant in the business despite being so many players already in the market. Now as far as, I think, technology is concerned, again, there is a r and d center in India. So most of the technology will be coming from India only. And there is a there is a, of course, a royalty fee payment for that. That is not unusual. That is very much in line with in line with the business. And as far as the four v I is concerned, the four v entire business related to the seating will be part of the joint venture except the mechanism, actually. So mechanism will continue to be separate as an entity, but from the customer point of view, it is a integrated solution which will be provided including the mechanism.

22:55 So instead of buying... Having this part of the joint venture, mechanism will be bought from from the four... Are 100% company and will be supplied to customers in India. Otherwise, all business related to the seating is part of the joint venture, actually. Just one clarification here, sir. Are we going to set up a new plant for the JV? Oh, yes. We will have to set up the new plant for the joint ventures. I think we are we are already starting this. We we will be having plant in Chennai. And, of course, we have plant in in Pune as well.

23:42 Oh, okay. This is helpful, sir. Sir, second question to Adul, sir. Sir, we have noticed basically there is a market share loss in the passenger vehicle shop in the H1. And similarly, the growth in these commercial vehicles revenue is slightly lower than the industry growth. So can you please put some light here? Yeah. So I think this commercial vehicle, there is no degrowth. The growth purely on the CV side is exactly matching the industry growth because, obviously, with the more than 85% market share, that is bound to be in line with the with the market. The numbers that that you see, they they also improved the aftermarket and railway and I think other numbers are clubbed with the CV numbers. That is why you are seeing a change because last year, the... I think in this quarter, the aftermarket numbers are much higher, but because of lot of pressure from the OEM this time, the aftermarket number, the... You don't see a similar growth there. So on the CV side, the the numbers purely are matching exactly as per the market.

24:56 On the PV side, yes, you are right. I think the the lack of growth is primarily on account of the passenger car, the smaller cars because, you know, post the GST last year, the new norm, the small car growth has been much higher. And I think there, our... The models where we are present, unfortunately, have not done so well as compared to the models where I think we have not been there. So it is a... It is more of a mix issue there in the TV side, but, yes, we we are lagging behind on the TV side in this quarter. It's obviously market side. On the CV, there's there's nothing to worry about. And just last one question, sir, on the...

25:43 And can co is basically a better margin business and is still now a part of stand alone entity. But we have noticed a drop in the EBITDA margin since last three quarters consistently. So there's a... So two things here. Two things, Amit, two things. One, EnChemco is a very small part of the business. Obviously, when you look at the overall number, the contribution is is relatively smaller. Secondly, EnChemco also is not sort of immune to the changes there because their their raw material is different where it... I mean, say, urea as an example is a big big raw material consumption for them, and obviously, the prices there also have fluctuated. The recovery is happening. But as mister Gul mentioned that I think customer to customer, sometimes there's a delay. Unfortunately, in quarter two, while everybody expected that the prices may soften up and obviously the the number would look much better, but the numb... The prices in quarter two also has shot up. So if there was a lag in the recovery, it continues even in the quarter two also there. So...

26:54 Yeah. Otherwise, I think the fluid business is doing quite well on this. Yes, sir. Thank you, sir, and all the best. I'll come back in the queue. Yeah. Thank you. The next question comes from the line of Mumuch Mandlesha from Anandrati Institutional Equities. Happy Diwali and congressman on the healthy results and recent seating JV announcement. Sir, firstly, just want I'm reading like Polysha has won some order on the PV side. Just want to understand for this JV, do we have some anchor order supporting this JV? Yes. We we have this business. This JV is formed with the existing business, which are there already already won by the company, actually.

27:47 Possible to quantify, sir, how how big the order book would be there, sir? I think it's difficult, but I think we look at... It's a Volkswagen business, which will be coming along along with the joint venture. So so I think once the closing is done, we should be able to share the information rightly, basically. Got it, sir. And secondly, sir, on the TV ADAS regulation draft, which is announced, I just want to understand how much will be the potential for the ADAS market and for the, sir. See, that's what I was talking generally in our opening remarks. If you look at the ADAS technology, I think it's going to have increased enhancement from the existing regulation point of view, including the segments.

28:44 I think the draft regulation is talking about not only passenger car, but also commercial vehicle and two, three wheeler. So so it's a general way to answer that this market will grow. The the the DAS business will definitely continue to grow in India, and our business will take advantage of this for sure because while our products are coming from the different companies, but it's a technology integrated within Mando Group. As you know, that products are to deal with the steering and the brake. Both are part of... Mando is globally leader in these products. So I think that way we should be able to also have a integrated solutions. And, yes, based on the current regulations, we are doing the complete product mapping in all segment, whether it is commercial vehicle and passenger car and of course on the two wheeler and three wheeler side so that we can take more advantage in this revised notifications actually basically.

29:51 But in general, I think this market will continue to grow and we will continue to take advantage of it, actually. Got it, sir. Lastly, sir, on the Sunday Sorry to interrupt, sir. We may request that you return to the question queue for follow-up question. The next question comes from the line of Aditya Khitan from Smith Institutional Equities. Please go ahead. Thank you, sir, for the opportunity. So just a couple of questions. Sir, again, on to the ADAS market. Sir, when we look so before this so before this ramp also came out for ADAS, the market was already growing at 15%, 20%.

30:38 And, sir, like, how are we positioned in terms of growth, like, 20% growth and considering our clientele profile? Are we ready to tap and grow in line with the industry or because we have a limited set of clientele, we might grow slightly lower? And post this notification, like, implemented by 2032, the growth would actually mean, like, we hire off some... So 30, 40%. So how well are we so ready to tap this opportunity, sir? Just wanted to know. So it's difficult to share any numbers specifically, but as we generally covered in our opening statement also that we see high perspective from this business in our growth of 50,000 crores at the group level. So that is some of the things which can answer that what is our expectation from this business.

31:31 And I think that our penetration is increasing overall. It has gone very, very significantly up in last four, five years and which will continue to grow. I think we see this business definitely growing much more than what is the industry growing. You know, as as as I think the more and more penetration will help. And we are already there in this market. I think this company, the joint venture which we have while we have participated now, but that has been in business for last seven, eight years, especially in the adult business. So it's not a new start. It is a business which is already there. Company already growing, already manufacturing setups are there. So we we will take advantage of all these existing facilities which are there, the technology which is available and the market which is already growing.

32:27 I think as I mentioned even the size of the business product size is very very large as compared to the normal our products which we have in other car. So all put together, I mean VCI perspective from this business. Got it. Sir, my second question is on to the Sandro side. Sir, Sandro, we have witnessed like since last quarter, we had seen profitability has also ramped up that one off loss in volumes could have been recouped. So where are we standing today, sir, in terms of the volumes like Phase one, where it is operating Phase two? And are we set to look out for new clients because some models also were not working onto the Hyundai side for in our favor? Where are we standing right now, and what is the outlook for the next two years?

33:16 I think from the business perspective, if we look at... Nothing has changed for us as far the... Right now, the performance is going on except the market market situation. So we continue to supply for the for the comp... For the business, which we started this business two two to three years back. And, of course, there are certain models which did not pick up, especially the a y one. So that that did not pick up. But, yes, after that, we have added few of the new businesses, which is a... Which are continuing for v c four has already started. V c four I and v c four t. So that is already in the commercial production now.

34:03 And we started the supply. And, of course, we have another business which is already in hand AI four. So that will come up in next year. So I think the business is growing as of today. Yes, last quarter was slightly difficult because of there was a fire in one of the plant of Hyundai supplier, which derails the complete business for Hyundai on whichever sunroof is going on. So that is one to deal with Hyundai and Kia and of course we continue to wait for other businesses especially for other customers like Tata and Mahindra. And as soon as they materialize, we will think about the capacity expansion.

34:50 Basically, it could be depending on the customer. We will have this CapEx incurred on this basically or the capacity relocation may also happen basically. Sir, one last question. I'm sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Radha from Agarwal. Please go ahead. Hi, sir. Thank you for the opportunity. In the further seating business press release, it was highlighted that Gabriel will be acquiring the India seating business on a slump sale basis. So that business is currently doing a revenue run rate of $2.50 crores with margins of 10%.

35:37 So out of this, as the seating seat mechanism will be excluded, so how much revenue and margins will be integrated in the India business and from which quarter should we do that? So right now, the closing is going on. As I said, I think the exact number we'll be able to share once the closing is is done. I think they're targeting to complete the closing by December end. But I think as a business, the agreements are already in place. So whatever business is there other than the mechanism, all will be transferred to Gabriel India. And I think it will be transferred the way it is. The... If the margin is 10%, it will be transferred at 10%.

36:24 But we are not talking anything with respect to the mechanism. We are talking primarily with respect to the frame business and that will be transferred to Gabriel India. So that could be a business size of around INR 150 crore or so basically. Understood, sir. And secondly, could you give us some color on the new order wins in the H. L. Mando and Clemus businesses? And what kind of growth rates are you expecting for these two businesses separately for the next two years? Okay. So, actually, Mando is expanding its its activities, actually. So, definitely, they will be growing either market or better than market. I'm sure it's it's difficult to say how much better.

37:12 But, yes, as you know, the... Primarily, the company, of course, almost 6065% is related to the Hyundai India. So that is going on completely. We are expanding our our reach with Tata Motors. We are extremely doing good. And we started our entry with with Marquis Sujukhi also. We are already in with Mahindra and Mahindra. So as far as the company base is concerned for for the HL Mando, we are there with everyone now while the company started with the Hyundai Kia only, but now we are with everyone. So that is definitely will start reflecting in in a growth number. And of course, from the HL Chromo point of view, HL Chromo was already already present, as I said, that in the market. So we are already there with Hyundai.

38:08 We are already there with Tata Motors. We are already there with Mahindra and Mahindra. And of course, now we'll start expanding our penetration with other customer like Marquis, Sujukhi, especially, actually. So that will give us some entry. So I think in that shell, we should be doing definitely better than the market in both these businesses. Thank you. The next question comes from the line of Amit Hiranandani from Philip Capital India Limited. Please go ahead. Sir, just need CapEx outlook for the consolidated business for FY 'twenty seven and annual run rate one can expect for coming three years.

38:54 I think generally, the CapEx is again capacity driven and many, many things are there. But we feel that we should be able to at least continue spending on capacity and also many things to deal with the new plant and also I think with respect to the lot of improvement in the plant. So we expect that our CapEx should be always running between INR 1,000 crores to 1,500 crores on a consolidation basis. And sir, any concerns on the Sunroof businesses so far because the margins look to be very depressed in H1?

39:44 So I think I just shared it. Nothing has changed as such from the Sandhu business point of view. The situation has been better as compared to the last year. As I said that we have new business already in place. And so nothing has changed. And margins are impacting. I mean, you know that everybody is expecting in today's time because of the commodity change and, of course, the forex, they are not they are not favorable. And we continue to work with the customer and try to get recovery, but I don't see any any other impact on the business, actually. And just last one, Sandeep, sir, on the credit side, tell what time we have credit with us? And from FY '28, what models we will be supplying to Hyundai k? So I think as Creta seems to be phasing out next year to the... By by Hyundai, But we will continue to supply the EV model of of the Cretta.

40:46 So that will continue. And other than we continue to supply on a way I p... PS7IVC4IN t, and of course the new program which will also come up in future on AI four comes from the line of Nishant Jain from Anandrati. So my question over here is Sandeep. So can you update on the recent build on model, like how are expecting as it is our mix of both panoramic and half sensors? And Yeah. Also on the exposure of the... Exposed to other.

41:33 So beyond model, I think if we if we look at overall, it is just launched actually. So as far as the customer is concerned, customer is right now, of course, building their stock. So therefore, the current offtake will be high. But of course, once it is launched, generally the monthly rate reduced. But when we look at from the customer perspective, most of the businesses with respect to the Panoronic sunroof, which is around 75% to 80. So that will be supplied by us. And so they are talking from the customer perspective.

42:20 We understand they are talking almost 100,000 number of the car per annum, which will include around 60% for India and 40% for... Out of India, actually. Okay. And then a new update on the on new order wins and on your new model and also on the. So as I said that next year, we will have AI four, which will be coming for the production. So that will have a significant volume, and we are currently in the bidding position with other customers. Okay. And, sir, one more question. I'm sorry to interrupt. We may request that you return to the question queue for follow-up questions.

43:08 The next question comes from the line of Jay Kali from Ilara Capital. Please go ahead. Yeah. Thanks for taking my question. Just one question, if I see H and L Clemov financials, the ROE, ROCs currently are around sub 10%. How do you see this shaping up going forward with expansion of new customers and growth in this segment, where should we expect this to settle? I think generally generally, our businesses are are making good ROI, actually. So, obviously, it is the initial phase. As you said, that capital investments are in place. We have invested heavily in last last couple of years.

43:54 So so once we are able to utilize this capacity, I think, as again, it comes to the future number, which which is difficult to share, which I said that this company will will have a significant growth that will help us to improve the ROI as they utilize the capacity basically. Okay. Is it fair to assume it'll at least be at the current company average at a steady state basis? Sorry. I didn't get your question. Is it fair to assume that it will at least trend towards the company average on a steady state basis? As as I said, generally, these are these are... We we don't compromise on the ROI. It is a temporary phase because of the investment already done. Definitely, they will be on the company average side for sure.

44:43 Understood. Understood. Okay. Thanks. That's that's all from my side. Thank you. The next question comes from the line of Jayan from Bajaj Ords. Please go ahead. Hello, sir. Thank you for the opportunity. So most of my questions are answered. So a very quick question on the high school segment, specifically on the sunroof and electric toolers. So historically, we have held a high high market share in these. So given the evolving sub... Subsidiary landscapes and some competitive dynamics in the EV space, are we seeing any pressure on our realization or order books in this? On the toolbar space, no. I think the order book is quite strong. We continue to win more orders. Just to share with you, I think last month, we have started the supplies for the Bajaj setup model, which was missing in our portfolio or the Bajaj EV portfolio was missing. We have started the supplies there also.

45:45 We have a good business pipeline with most of the customers, and especially, I think a lot of them are getting into new models and ramp up phases. So I think we are we are quite well placed on the EV side. So on the two wheeler side. And on the sunroof side? On the sunroof, I think mister Gurl has already mentioned that in in addition to the old models, the beyond the start up production is just happening. Our last quarter was a challenge as I think everybody knows that because of the the unfortunate incidents in what we supply can have in the industry. But I think they... We we... Beyond the initial booking, initial feedback is quite good. Let us... We have to wait and watch. And as I think couple of times as well mentioned, next year, we are seeing...

46:41 We are we are looking for one more SOP. So I had shared earlier that there is a business pipeline with Hyundai and Kia, and, obviously, they'll come into the different phases of production in the next year also. Mhmm. Thank you, sir. That is a good news for me. Thank you so much. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to mister Mahindra Goyal for closing comments. Over to you, sir. Yeah. Okay. Thank you. Thanks, everyone, for participating. Hope we are able to provide answer to all of your questions. And in case, of course, if anything is there missing or any more clarification is required, please connect with our investor sale, and I'm sure that we should be able to take up your questions and provide all the clarification as as may be needed by by all of you. So so nothing is special to add. I think we are in the festive mode. The auto industry continue to to do very, very well, And we are all...

47:53 Today's time, having lot of pressure on the supply, so we continue to to do fulfill customer requirement. And on this festive note, again, take this opportunity to wish you Happy Diwali and maybe seeing you, some of you soon in the near future. Thank you so much. Thank you. On behalf of Gabriel India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.