Menon Bearings Ltd — Call Transcript 2024

Nov 6, 2024

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6[th] November, 2024

To, To, The Manager - DCS The Manager - Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Bandra (East), Mumbai – 400 001 Mumbai- 400051 Scrip Code: 523828 Symbol: MENONBE

Subject: Disclosure of Information pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Outcome of Schedule of Analyst / Institutional Investor Meeting – Transcript of Earnings Call .

Dear Sir / Ma’am,

Pursuant to the relevant provisions of Regulation 30 (6) read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, we would like to inform you that the officials of the Company had an earnings conference call relating to the Un-Audited Standalone & Consolidated Financial Results of the Company for the quarter and half year ended 30[th] September, 2024 for the Investors/Analysts (Participants) which was held as per the details below.

Date & Time	Type of Interaction
25thOctober, 2024 at 4:00 p.m.	Earnings Conference Call

The Transcript of the earnings conference call is enclosed herewith and has been uploaded on the website of the Company i.e. www.menonbearings.in.

Kindly take the same on your record.

Thanking you,

Yours faithfully,

for Menon Bearings Limited

ARUN Digitally signed by ARUN RAMCHANDRA RAMCHANDRA ARADHYE Date: 2024.11.06 10:48:52 ARADHYE +05'30'

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Arun Aradhye Whole Time Director & CFO DIN : 03052587

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MENON BEARINGS LIMITED

Q2 & H1FY25

POST EARNINGS CONFERENCE CALL October 25, 2024 04:00 PM IST

Management Team

Mr. Arun Aradhye Whole-Time Director and Chief Financial Officer

Call Coordinator

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Strategy & Investor Relations Consulting

Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Presentation

Vinay Pandit:

Ladies and gentlemen, I welcome you all to the Q2 and H1 FY '25 Post Earnings Conference Call of Menon Bearings Limited. Today on the call from the management we have with us, Mr. Arun Aradhye, Whole-Time Director and CFO.

As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also, a reminder that this call is being recorded.

I would now request the management to detail us about the business and performance highlights for the quarter, and the growth plans and vision for the coming year, post which we will open the floor for Q&A.

Over to you, sir.

Arun Aradhye:

Okay. Good evening, everybody. And first of all, I wish you all a very, very Happy Diwali. So far as the performance is concerned for the quarter, which ended on 30th September, 2024 as compared to the corresponding quarter of the last year where the total income was ₹51.70 crores. It is now for this current year it is ₹60.35 crores that is up by almost 17%.

Similarly, EBITDA is up by 12%. PBT is up by 12%, and PAT is also up by almost 12.5%. So far as expansion is concerned, we already completed the expansion of Menon Bearing, that is Bearing division, which is already functional. Expansion at Alkop division, that is Menon Alkop Limited that is under progress and because of heavy rains, it was delayed to some extent and will be completed within couple of months from now. So, it will be operational by the end of December. So, rest of the things are okay.

There are a lot of opportunities, we look forward considering RFQ that have been received, most of the start of business will be in the next year that is '25-'26. The total quantum of such RFQs, which are under consideration and under preparation of samples and everything that is about ₹150 crores, which will be materialised during the period of next year. Some of them will be converted into actual business this year, but majority will be converted into actual. Our start-up business will be in the next year.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

As we see in Alkop division also, we are entering into EV segment, e- mobility by supply of component to one German company for their EV vehicles, electric vehicles. Similarly, we have already entered into airport applications also in Alkop division. At the same time, we are registering with railways that is under process and will be completed within a period of one month from now so far as Menon Brakes is concerned.

So this is about the company nature and about the performance of the company for this quarter. So I welcome you for any suggestions, and questions if any from you.

Question-and-Answer Session

Moderator: Sure Sir. All those who wish to ask a question may use the option of raise hand. In case you don't have that option, you can put your message in the chat box, and we'll invite you. We'll take the first question from Harshil Solanki. Harshil, you can go ahead. Harshil Solanki: Hi, good afternoon. Arun Aradhye : Hi, Harshil. Good evening. Harshil Solanki: Good evening. So I have few questions. Firstly, on the EV sector, so what is the product that we are supplying to Porshe, and what would be our wallet share with Eaton for this? And can this open up the premium car market for us? And that can be an another vertical for us diversifying from series. That is the first question. Arun Aradhye : That will not be another vertical, but within aluminium division, that is vertical that we'll be looking after that business. And the samples, we already received order for the samples, and that is under process. And that will be sent to, returned to the concerned company for testing and validation. Actually, the quantum of business has yet to be quantified, but it will be a substantial business that we are looking for.

Actually, the amount is not calculated as such, but it will be a good amount of volume that will be coming our way so far as EV is concerned for this project.

Harshil Solanki: So are we trying to reach out to other EV players as well showcasing our product, since we already have a customer onboard?

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

• Arun Aradhye : Yes. Yes. Well, Tata Motors is also under consideration. They have approached us. There was an audit conducted by Tata Motors that is Taco, Tata Auto Components.

• Harshil Solanki:

Okay.

• Arun Aradhye : Okay. So that is also under consideration.

• Harshil Solanki: Okay. And on similar lines, Bajaj Auto, we were trying to supply some components. So has that materially picked up? Because this can help us reduce the cyclicality by diversifying into other segments. So any progress on that?

• Arun Aradhye : I could not get to exactly, because your voice was cracking.

• Harshil Solanki: So, we were trying to design some components for Bajaj Auto as an import substitution.

• Arun Aradhye :

Yes.

• Harshil Solanki: So has that particularly because this will help us diversify from our CV heavy business, which has been there historically.

• Arun Aradhye : So far as Bajaj Auto is concerned that business will come to Menon Bearings, Bearing division, for bearing vertical, and the start of business is expected to be within a period of couple of months from now.

• Harshil Solanki: Okay. Got it. And on the numbers part, we have said that tractors have recovered very well this quarter, but still we have grown only by 4% quarter-on-quarter basis in the bearing division. So our CapEx also live. Tractors is also on stream. So what is restricting the growth in this segment for us?

• Arun Aradhye : You see, actually, if you see the total growth in the company as compared to the last quarter of the corresponding year, the total income is up by 17% and not 4%.

• Harshil Solanki: I'm referring to the bearings division specifically which has grown only by 4%, because tractor was slow last few quarters that I understand. But now that has picked up, still our growth is not that much. So what is the other challenges that are there?

Arun Aradhye : You're talking about bearing?

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Harshil Solanki: Yes, Menon Bearings, if you see quarter-on-quarter numbers.

Arun Aradhye : Our quarter-on-quarter basis, which is last year, the same quarter bearing business was ₹35,61,00,000. Now it is ₹41,47,00,000.

• Harshil Solanki: June, it was 39.5. September, it is 41. So it is a 4% jump.

• Arun Aradhye : So I'm comparing with the same quarter last year.

• Harshil Solanki: Okay. So directionally, are you seeing that this will increase going forward by say 15%, 20%?

• Arun Aradhye : Yes. What I am looking forward, my forward-looking statement as such that cannot be taken as it is. But what I feel that year-on-year growth for next year should be 18%.

• Harshil Solanki: Okay. On similar line, if you see Alkop also, it has largely been ₹16 crores, ₹15 crores number quarter-on-quarter.

• Arun Aradhye : The total overall growth on contracted basis, if it is 18%, growth in Alkop will be 20%.

• Harshil Solanki: That is not happening in the number if we say. Because Alkop, there has been no challenges as such bearings.

• Arun Aradhye : What I'm telling you that there are RFQ’s to the extent of ₹83 crores, and we already received closing cost for the same. It necessarily means that the business is confirmed. The only thing is that the start of business, they are preparing for their future models well in time. So after start of business will be in the next year. So in next year, you will see more than 20% growth in Alkop.

• Harshil Solanki: Okay. Understood. So in H2 also, we think that this would be the trajectory of ₹60 crores to ₹70 odd crore is that…?

• Arun Aradhye : Similarly, you see, so far as bearing is also concerned, there are adequate to the extent of ₹65 crores. Like, in Alkop, it is ₹83 crores. In bearing, it is ₹65 crores. So total put together, it is ₹150 crores of business is in pipeline. And that will be converted over a period of time say 1.5 years from now. Spread over 1.5 years.

Harshil Solanki: Okay. Got it. And last question would be some aluminium extrusion companies have faced some anti-duty dumping scrutiny from the U.S.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

So are we seeing any such scrutiny in the U.S. government? Because we also deal with aluminium products.

• Arun Aradhye : Yeah. Nothing special. We are not affected by that.

Harshil Solanki: Okay. Got it. Thank you so much.

Arun Aradhye : Thank you.

Moderator: We'll take the next question from Mumuksh Mandlesha from the chat box. Mumuksh, you can go ahead.

• Mumuksh Mandlesha: Yeah, hi. Thank you for the opportunity and Happy Diwali to all. When I see the channel wise segments, in the presentation, there's other segment, which estimates a good jump from 8% to 13% compared to last year in first half. Can you indicate what this segment indicates and what has driven the growth for this segment?

• Arun Aradhye : That is actually merchant export and industrial product so far as compressors, then generators, and steels are concerned. So there is a jump in that kind of business.

• Mumuksh Mandlesha: Okay. So there we are seeing a very good growth.

• Arun Aradhye : That is in industrial products.

• Mumuksh Mandlesha: Industrial segment, we are seeing a good jump.

• Arun Aradhye : Right.

• Mumuksh Mandlesha: And that should, going ahead also, the good momentum should…

• Arun Aradhye : It will continue like that in future as well.

• Mumuksh Mandlesha: And any orders there in those industrial segments? New orders?

• Arun Aradhye : Yes. It is continuing, and that will be growing more in case of aluminium vertical.

• Mumuksh Mandlesha: Got it. So even the exports have seen a positive growth in the first half. So are you seeing the underlying industry there recovering? And how do you see over the next two years in terms of exports growth?

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Arun Aradhye : So far as export growth is concerned, it will continue to be like that in future as well, because what we see for this quarter as well, the export orders are very good. So far as VAC is concerned as well as for African countries to Dubai. Though orders from Japan have reduced substantially, USA that's giving a good growth for us.

• Mumuksh Mandlesha: And that should be the continuing growth momentum even going ahead?

• Arun Aradhye :

Yes.

• Mumuksh Mandlesha: Got it. Yeah. In terms of the recovery in for the Bimetal segment, which you mentioned about the tractors seeing a recovery, do you also see the recovery for the CV segment in second half?

• Arun Aradhye : CV segment, there has been recovery, but it is comparatively little less as compared to the tractors. Tractors segment has now settled down. Though it is not increasing, but it has settled. It was very good in the last quarter, but it has reduced to some extent this quarter. This means current quarter, October to December. But it has settled somewhere now.

• Mumuksh Mandlesha: Got it. And CV has seen an improvement compared to Q2?

• Arun Aradhye : Yeah.

• Mumuksh Mandlesha: The braking segment has seen a very good jump in the first half. What is helping growth in that segment? And how do you see growth ahead?

• Arun Aradhye : Actually, the export is growing there. 50% is export and 50% is domestic. Our domestic as well as exports are increasing every time, and it will go up to almost what I feel that it should be reaching almost to ₹7 crores to ₹8 crores per year, year after. That is almost ₹60 lakhs, ₹70 lakhs of exports per month from brakes.

Mumuksh Mandlesha: From this? And that domestic should also be around.

• Arun Aradhye : That is increasing every month.

• Mumuksh Mandlesha: Okay. So in total, we can cross this year at least more than ₹10 crores? Arun Aradhye : Yes. It will be almost ₹8 crores to ₹9 crores for this year.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

• Mumuksh Mandlesha: Got it. And the main order from John Deere will ramp up from FY '26, right?

Arun Aradhye : That is so far as aluminium division is concerned, Alkop. It will jump up like anything in the next year.

• Mumuksh Mandlesha: And in terms of the aluminium prices had seen a jump in previous few quarters. Has that one, wasn't passed on to the customer?

• Arun Aradhye : Not really. There is a full decided formula that is for three months or six months. And in some cases, we can pass on the burden after the completion of that period. So we're able to pass on that burden to the customers after September. Now this is the time that we already taken up the matter with all the concerned customers would formalise there. That is after the completion of September. They will be giving us price rise after submission of all the details.

• Mumuksh Mandlesha: Got it. And any sense on, what could be the quantum of the impact we already had in the previous quarters?

• Arun Aradhye : 6% to 7%.

• Mumuksh Mandlesha: 6% to 7%. This is a hike, which is pending?

• Arun Aradhye : Yeah.

• Mumuksh Mandlesha: Got it. And with this hike also, do you seeing now the margins can move towards the 20% plus in the coming quarters?

• Arun Aradhye : Margins as it is, it is more than 20% now. It is almost 21%. And what I feel that next year, it will go up to 22%, and thereafter in '26-'27, it will lead to 23%.

Mumuksh Mandlesha: Got it. That's also from my side. Thank you for this opportunity. Arun Aradhye : Okay. Thank you. Moderator: Thank you. We'll take the next question from the line of Aniket. Aniket, you can go ahead.

Aniket: Thank you. So my first question is that any update on the international tractor sales business? And how is the pickup in the same, considering we have indicated the same in the presentation?

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST Arun Aradhye : Yes. There is a good amount of business so far as international tractors is concerned, where our most share of business, wallet share is almost 80%, 85% with international tractors. And in bearing we're 100%, in bush we're 80%, 85%. Aniket: Okay. So my second question is that, could you share the reason for delay in the capacity expansion, and by when do you see this getting over? Arun Aradhye: You see, as I already told you that expansion in bearing is already completed. It is functional now. In aluminium division, that is Alkop. The building was delayed due to heavy rains in Kolhapur. So it was delayed by two months, that it would be completed by the end of December and will be functional by January in the next quarter. Aniket: Okay. Got it. So my last question then, what incremental revenue will be able to generate post this expansion? Arun Aradhye: It is almost ₹75 crores of additional business is expected through expansion. Aniket: Okay. That's it from my side. Thank you so much. Moderator: Thank you. We'll take the next question from the line of Karan. Karan, go ahead please. Karan Sharma: Thank you. Good evening. I was just looking at your promoters share in the company. So the promoter has been selling recently. So I just wanted to know the reason, because considering the business is now reviving, please explain all this. Arun Aradhye: You see, that is minor. We're already having more than 70%. We were having more than 70% of the total shareholding. So out of that, about 1.73% only was sold during last quarter to see to unlock the opportunity. Karan Sharma: Okay. And since the Braking System is a new product, so, in how many years do you anticipate it to become a sizable aspect in terms of revenue? Arun Aradhye: It will be sizable in the next year because Railway business is expected to start next year.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Karan Sharma: Okay. So, how much share it could give by next year? Like, currently, it is around 4%. So how much can we expect?

Arun Aradhye:

It will go up to 10%.

Karan Sharma: Okay. And maybe next three to five years, how much it can reach like?

Arun Aradhye: By '26, '27, we expect that we should be reaching almost 22 to 25cr.

Karan Sharma: All right. Thank you. There was one more interesting thing that has caught my eye in the PPT is your entry into the EV segment. So, can you just share some more inputs on this business line, and what kind of opportunity you are looking into it? And what's the competitive scenario in this segment?

Arun Aradhye: EV segment means one of the component that is required by one of the German luxury cars through one of the companies in India. They already approached us. They are given their tooling. The samples are under preparation. Those will be sent for trial now. After testing and trial, once those are okay and through, we'll start that component, which the details of which cannot be explained just now. But there will be a good amount of business that we are looking for.

Similarly, in EV segment, along with that, Taco Motors has also, Taco has also approached us, that it is Tata Auto Components. So sales and components for them are also under preparation, under trial.

Karan Sharma: All right. So, how much time does it take for the trial to get complete just for info? Arun Aradhye: It takes almost seven, eight months to nine months. Karan Sharma: All right. So by the end of year, I guess we can expect? Arun Aradhye: Yes. Either we'll do that. Next year will be fantastic '25, '26. Karan Sharma: Okay. Sure. I'm looking forward to that. Arun Aradhye: Because in bearing division also, the Allison business of ₹24 crores that samples have been already approved, but they are be starting the business. Actually, the purchase orders will be released in the next year. So there will be good amount of business that is coming through

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST Allison as well as in aluminium division from John Deere sizable business is coming.

Karan Sharma: All right. Thank you very much. Moderator: Thank you. We'll take the next question from Harshil Solanki. Harshil, go ahead.

Harshil Solanki: Hi, thank you for the follow-up. I have just one question on the railways, please. Can you elaborate more on what, are we trying to supply directly to the railway or through branded manufacturers or some other intermediary? And how big it would be for us? Arun Aradhye: Harshil, your voice is echoing. Harshil Solanki: I'm trying to understand on the railway piece. Is it clear now? Arun Aradhye: Yes. Harshil Solanki: The railway piece, are we trying to supply directly to the railway or through any intermediary? Arun Aradhye: No, no. We're directly registering with the railway that is under process. Maybe it might take one odd month or couple of months, and it will be completed. And we will start directly supplying to railway. Railway brake blocks it is called. Harshil Solanki: Okay. And railways they will use this for their repairing and maintenance part, right? Arun Aradhye: Yes. Harshil Solanki: Okay. So can we expect the margins to be higher? Because that we are directly supplying to railways? [0:23:45]. Arun Aradhye: Obviously. Harshil Solanki: Okay. And who will be the competitor in this space if you can share? Arun Aradhye: I think that is Sundaram. Harshil Solanki: Okay. Perfect. Thank you. Arun Aradhye: Okay.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Moderator: I have a question in the chat from Mr. Bharat Gupta. One of the question I think was asked. I'll just repeat it. Can you check for the CapEx requirement for the German luxury car manufacturer, airport, railway business, and any estimate on the market size?

Arun Aradhye: No, no. The estimate on the market side cannot be defined just now. But at the same time, there is no additional CapEx required for that business because in the existing capacities, we can accommodate that which has been already under expansion. Moderator: His second question is any update with respect to contract manufacturing for Brakes India? Arun Aradhye: Contract manufacturing? Moderator: For brakes? Arun Aradhye: For brakes. We are already in contact with them. They've tested trial machine. That is dynamometer. That is called dynamometer where the testing and trials of brake lining is done. So all their machines are dynamometers are under tremendous test, and they have informed us that as soon as we get free, those are free. We will definitely go for trials of our brake lining, which has been already sent to them as per their requirement. And as soon as we get the result from them, we will start supplying. Moderator: His third question is, what is the current order book including RFQs across Alkop and Bi-Metal business? Arun Aradhye: Current order book position for the year is ₹250 crores. Moderator: This is including the RFQs? Arun Aradhye: No. RFQs are different. Moderator: Okay. Any visibility on the RFQs for FY '25 and '26? Arun Aradhye: '25-'26 that I already told you that it is amounting to ₹150 crores. Moderator: Over and above this ₹250 crore? Arun Aradhye: Yes, yes.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Moderator: Okay. The next question in the chat is from Shaurya Punyani His first question is given the good growth anticipation for Brake and Alkop, what is the consolidated revenue growth we're expecting over the next two, three years? Arun Aradhye: Yes. That is why I already explained you that, there will be CAGR of 18% for next three years. Moderator: And what would be the capacity in each division post expansion? Arun Aradhye: It is 4,86,00,000 pieces in bearing division, then 2,500 tons in aluminium division. And in brakes, it will be 2 lakh of brake linings per month. Moderator: We'll take the next question from Kevin. Kevin, you can go ahead. Kevin Shah: Hi. Thank you for the opportunity. The company has recently restructured by separating the Alkop division, right? How is the strategy going to be in Alkop versus the Bearing business? Arun Aradhye: Actually, what was happening the more emphasis were given or more thrust was given on the business of bearing division. Aluminium division being 25%, 30%, it was not given the attention that is required. So in order to have a complete focus on that business and to grow there, we have bifurcated that and demerged into separate, what do you want subsidiary so that separate Board is there, and it will be taken care of to see that what are their actual requirements and how to grow it further to the extent we require. In that order, we have bifurcated or demerged the same into Menon Alkop Limited.

Kevin Shah: Okay. And who will be eventually managing it? Arun Aradhye: The Board is the same. The focus is changed. Kevin Shah: Okay. All right. Thank you. That's it. Moderator: We'll take a follow-up question from Karan. Karan, you can go ahead. Karan Sharma: Thank you. So what is the broader strategy at company level, like for the growth, for the new products, in terms of business and the geographies that we're looking at?

Arun Aradhye: See, after China Plus One policy, like European and USA people are approaching us for newer businesses. They're looking at India as a

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

new source for their requirements. So many companies, as per the requirement with their counterpart in India are approaching us for their sourcing. After war of Russia and Ukraine, there is a problem of what we came to know that there is a scarcity of energy. Energy crisis are there, and people, there are lot of many problems they are facing, actually European countries. So that they are looking for sourcing from another countries, and India is a preferred source for them.

So we are also preferred source for many of their counterparts. So they are approaching us and considering that we are issued RFQ’s to the extent of ₹150 crores from so many companies and majority of them are for exports. ₹150 crores, you can say about more than ₹100 crores is for exports.

• Karan Sharma: All right. So, like, since, this Brakes business like specifically speak about the Braking business, it is a very competitive business. So, how will we maintaining our high margin strategy with this Brakes business?

• Arun Aradhye: As you said, that is highly competitive business. We know that. But we're giving more thrust on exports. So 50% of the existing business is export and that we are going to increase further so that we can match. Though we will not be able to match the margins that we're getting in bearing or aluminium. But to some extent, we are looking at it, how we can compensate it and see how close we get to the margins of what we are getting in bearing and aluminium division.

• Karan Sharma: Okay. So export is something that will help us in maintaining the high margins that we're targeting like 20% to 22%, right?

• Arun Aradhye:

Right.

• Karan Sharma: Okay. And also further, I just want to know that in our existing plant, we have some spare land, right? So how much it is, and so in our existing plant we have some spare land. So do we have some future growth expansion?

• Arun Aradhye: Out of the total 15 acres of land there, almost 6 acres of land is remaining now. So for next expansion in aluminium division, that will be required after three years that will be utilised in it.

• Karan Sharma: All right. And also our debt has marginally moved up in our H1 balance sheet. So what are the reasons for the same, and is it a temporary phenomenon or is it going to increase?

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Arun Aradhye:

Debtors, are you asking?

Karan Sharma:

No, no. Debt.

Arun Aradhye:

Debt?

Karan Sharma:

Yeah.

• Arun Aradhye:

You see at the same time, you can look at the cash and bank balances, which are ₹22 crores. So total debt that we got from Bajaj Finance. Their entire amount were disbursed by them, and we have kept it as a deposit in the bank. So if you look at the cash and bank balances, it is also on the higher side so that it is almost similar.

All right. So it's like utilisation for?

• Karan Sharma: All right. So it's like utilisation for? Arun Aradhye: It's like a debt free company, you can see.

Karan Sharma: All right. So, what's our plan again to induct the younger management team and at senior level, especially the next generation?

• Arun Aradhye: Next generation has already reported. Now they are under training. Both the children are under training. One is at aluminium division that is Alkop, and one is coming to Menon Bearings. So both the sons of promoters have already joined, and they are under training now.

Karan Sharma: Okay. Sure. Thanks.

• Moderator:

• Okay. Thank you. Anybody else who wishes to ask a question may use the option of raise hand. Alternatively, you may drop us a line on the chat, and we'll invite you. Since there are no further questions, would you like to give your closing comments so we can end the call?

Arun Aradhye: Well, thank you very much for all asking us so many questions, and I hope you are satisfied with the reply that I already given to you. And we hope that we'll be growing at a rate of 18% year-on-year for the next three years. That is our estimate, of course. We don't know what happens in future, but that is our estimate, and we will try and see that we reach those targets. Maybe we'll be reaching almost ₹350 crores in '26, '27 with higher margins as compared to the current margins.

And with that, I wish you all a very, very happy Diwali and a prosperous New Year. Thank you very much.

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Menon Bearings Ltd. (MENONBE) H1 & FY25 Post Earnings Conference Call October 25, 2024 04:00 PM IST

Vinay Pandit: Thank you. And thank you to all the participants for joining us on the call. Thank you to the management team for giving us their time. This brings us to the end of today's conference call. Thank you. Arun Aradhye: Thank you, Mr. Pandit, and thank you Team Kaptify. Vinay Pandit: Thank you.

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