Rolex Rings Limited — Call Transcript 2024

May 23, 2024

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ROLEX RINGS LIMITED

[CIN: L28910GJ2003PLC041991]

Regd. Office:- BEHIND GLOWTECH STEEL PRIVATE LIMITED, GONDAL ROAD, KOTHARIA, RAJKOT Phone: (281 )6699577/6699677 Email: compliance@rolexrings.com website. www.rolexrings.com

Ref. RolexRings/Reg30/AnalystMeeting/May2024/1

May 23, 2024

To, To Corporate Relationship Department, National Stock Exchange of India Limited BSE Limited, Exchange Plaza, C-1, Block G Phiroze JeeJeebhoy Towers, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra (E), Mumbai – 400 051 Script Code: 543325 Script Symbol: ROLEXRINGS

Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, we wish to inform you that the company participated in Investor/Analyst Call as given below:

Date	Type of Meeting/Event	Location
May 21, 2024	Investor/Analyst Call scheduled by Equirus Securities with the management of the company to discuss the company’s results for 4QFY24	Zoom Meeting (Virtual)

No Unpublished Price Sensitive Information (UPSI) was shared/discussed in the meeting with the investors/analysts.

However, as a matter of better compliance & investors’ services, the Transcripts of the said Analyst Call is attached herewith, for reference & record please.

Please take the same on your records

Thanking You,

Yours faithfully For Rolex Rings Limited

Digitally signed by Hardik Dhimantbhai Gandhi DN: c=IN, o=Personal, title=6599, Hardik Dhimantbhai pseudonym=6897d79ff14f4c508dfe7a2e6c24c7d3, 2.5.4.20=f155c1b6346787019f871ccb7fda97ca51d3fc281178705de 076db344bae7e58, postalCode=360002, st=Gujarat, Gandhi serialNumber=800c5cd4d119aed4c97338989ca872c94ea94957bf4b8d1bd8210965bab36468, cn=Hardik Dhimantbhai Gandhi Date: 2024.05.23 18:07:12 +05'30'

_____

Hardik Dhimantbhai Gandhi Company Secretary and Compliance Officer {Membership No. A39931]

Rolex Rings 4QFY24 Earnings Call Transcript

Aashin: Good afternoon, everyone. On behalf of Equity Securities, I welcome you all to the Q4, FY 24 post earnings conference call of Rolex Rings.

From the management side, we have Mr. Manish Madeka, Chairman and Managing Director, Mr. Mihir Madeka, full time director, and Mr. Hiren Doshi Chief Financial Officer So without further ado, I now hand over the floor to Hiren Sir for his opening remarks post, which we will have a question and answer session, Over to you Hiren Sir.

Hiren Doshi: Thank you Aashin, very good afternoon to all of you. Thank you very much for joining our earnings call for the Q4, as well as for the year ended March 24th. We would like to take you through certain financial numbers. Would like to inform that in Q4, FY 2024, that is Jan to March 24th, the company has recorded net revenue from operations that includes component

It's, and, export incentives and scrap sales, which was 316 crores. The same number in last quarter Previous quarter that is December 2023, It was 273 crores. Here in this number, the company had a growth of almost 13.6%. Same way the the corresponding year, the same quarter in previous year it was almost 300 crores. The company is having a growth of somewhere about 5.6% on this numbers for the Q4 of FY 24. In terms of EBITDA margin, would like to tell you that March 24th, Q4 company has recorded almost 76 crore rupees as an EBITDA, which is 23.8% of, margin, which was 20.6% in the previous quarter that is December 20th three quarter and the same it was in the previous corresponding year, 65 crores, which is somewhere about 21.6% of EBITDA.

In terms of, PBT company has recorded 63 crore rupees for the quarter Fy20 March 24th, which was 50 crores in, previous quarter that is December 23rd and previous corresponding year the same quarter the company had, recorded PBT of 57 crores. Here, I would like to tell you that company has has a quite positive word, turn or a positive curve in terms of overall, revenue from operations, in terms of EBITDA margin, as well as in terms of, PBT margin in, looking to the Pat number company has recorded, company has declared 24 crore of Pat, which was in previous quarter December 23 , 37 crore and the previous year the same corresponding quarter, it was 46 crore.

Here, would like to inform to the participants that for the March 24th, the, lower number of Pat that is because of company has provided specifically one extraordinary item, which is a right of recompense, which is to be payable to the, lenders of the company as company has went to the restructuring of their debt in 2013, with the help of CDR cell and the lenders have revisited restructured the entire debt of the company. Post repayment of entire debt company has repaid all the, short term as well as long term capital debt to the bankers. Now, the lenders are entitled to, have, right of recompense because the company has, assigned this task to, certain third-party agencies, which is, also working as of now And the bankers are lenders are also working on the same. The best estimate available as on date with the company and with after duly, consulting with the particular consultant company has provided rupees 32 crore as a claim of right of recompense, which is payable to the bank. So that is why the pet, which is, factually it is 50, nine odd crores.

But because of this 32 crore impact, it has reduced to 24 crore. In terms of, revenue bifurcation, the bearing ring segment and auto components almost going on the same line what we had earlier auto component business is 46% of our overall revenue operations, and bearing ring is 54% in terms of exports and domestic. Again, the having the same range of company is having same kind of growth and pattern in both the, segment of the business that is export, domestic, export is somewhere about 56% and domestic is touching to 44 percent. Would like to, inform the participants as well as to stakeholders that the company has seen, particularly in the last quarter, bit turnaround, bit, rebound in certain domestic pockets, particularly in auto component business. And the same, company has experienced from the European markets where the new customers are coming for further inquiries as well as the demand or the lifting of the customers who have recently started, the business has grown up and it is gradually picking up. The company is also expecting the same growth, gradual incremental growth in the coming quarters from the European market as well as from the domestic markets. As

far as US market is concerned, company is having almost, straight, curve as far as the US market is concerned. But the company is in dialog with certain couple of US customers in terms of bearing ring as well as auto components, particularly auto components in hybrid vehicle segment and EV segments. Right of recompense, As I have already mentioned, that company has estimated this thing on the best estimates available as on that, that is 32 crore rupees, which is included in the financials as an exceptional item.

In terms of, revenue mix, the, major chunk as it is there, contributed by passenger vehicle, which is 40% almost. The industrial segment is somewhere about 20 to 21 percent. Commercial vehicle, heavy commercial vehicle, off highway vehicles, railways all put together Company is gradually increasing their stack, which is somewhere about 29 percentage of particularly last fiscal.

And again, most importantly, the EV and hybrid segment where the products of the companies are very well accepted, and particularly, in this quarter, the hybrid vehicle, OEM has already started lifting certain components from the company. While talking for the overall total revenue from the operations, the company has recorded 1221 crore as revenue of from operations, along with 15 crore rupees of other income, which consists of interest income then forex restatement and so on.

The same number, If we buy forget into domestic, it is somewhere about six, 586 crore and export is 636 crore vis a vis FY 23. It was 1179 crore, where the export is 652 crore and domestic is 527 crores. Same number previous fiscal It's, almost a thousand, ten crores. Then prior to that, it was 616 crores. Particularly in FY 21, the company is having growth, no doubt the growth in this particular fiscal compared to FY 23 is marginal, which is somewhere about four odd percentage. But, as you people are very much aware that the top line or the revenue of the business is based on the fluctuation of the commodity pricing compared to previous year, the commodity pricing, that is, alloy steel bars. What company is mainly using is having a dip, or rather the, downward of almost 6 to 7 percent in terms of quantum. That is why the company is having a growth of somewhere about 8 to 9 percentage as far as overall sales is concerned. So, in numbers, in, revenue numbers, it might be 4%, but one-term growth, it is somewhere about 8%. Same way in EBITDA, would like to tell you that for the last almost three years, company is having the same kind of curve, which is ranging 23 percent of EBITDA in last fiscal. That is, FY 24 company is having an EBITDA of 22.44 percentage, which may be, say, half a percent lower compared to the previous years. Here, I would like to tell that because of certain uncontrollable parameters like ocean freight, earlier it was on higher side, then again, the Red sea factor, etc. it has happened and that is mainly affected to Europe and US market. European business has again picked up in the last quarter, wherein we are supposed to, sail our containers with the high cost freight, and that has impacted a bit. But a company is expecting the same to be regularized maybe in, this quarter, again, it started coming down and the company will be having the same kind of EBITDA, what it was there in the previous fiscal also.

Unknown Speaker: It will continue, then we will come to.

Hiren Doshi: Yes, and if, if we are going to have any kind of abnormal adverse impact over there or an incremental ocean freight, definitely we can explore the same with our customers and past they have also shared the same, additional or incremental ocean freight because of certain, geopolitical reasons. In terms of profit before tax, as I was mentioning that particularly in FY 24 March 24th quarter, we have recognized we have provided 32 crore rupees for this ROA matter. That's why my Pbdt, Pat has gone down to 156 crores in terms of pbdt, it was, it is 242 crores, which was in FY 23, almost 243 crores. Operating cash flow company is having sound operating cash flow. In terms of business, the company has generated almost 221 crore rupees of operating cash flow. out of that cash flow company has incurred somewhere about 55 crore rupees in CapEx, CapEx, mainly into the solar completion and certain equipments for the advanced value-added processes.

As already informed that company is net negative debt company has, good amount of surplus of funds and company has parked their funds into short term investments, wherein the company is getting a good, rate of return as far as the normal debt market and security market is concerned, company is

100%, paid off its entire debt, Only the matter which is pending, as far as that is concerned that is right of recompense. We expect the same to be completed in this fiscal because it has initiated with the banker’s, return on equity, in March 23rd, it was 27%. Again, it has gone down to 17%. The major reason, the main reason is to, considering the 32 crore rupees of provision of extraordinary item. These are the detail numbers, what we have, communicated what we have already disclosed over the stock exchange. In terms of profit, in terms of operating numbers, as well as my balance sheet numbers. So without going into individual numbers in detail, I would like to open the session for Q&A, the Company and management would be happy to answer your concerns.

Aashin: Thank you, sir, for those opening remarks. We'll open the floor for question and answer session. Anyone who wants to ask a question can use the Raise your Hand option. Once you are done asking your question, please use the lower your hand option. We'll wait for a couple of minutes for the question queue to assemble. The first question is from Jason, Please unmute your line and ask your question.

Jason: Hello.

Hiren Doshi: Yes, Mr. Jason.

Jason: Yes, yes sir. Am I audible?

Hiren Doshi: Yes.

Jason: Okay, sir. So my first question is just wanted to understand, you know, in terms of the auto components and bearings, both just wanted to understand that are we introducing certain new products for the EV or hybrid segments, and if so, for these new products, how much will realizations increase and how much margin profile will be for these new products?

Hiren Doshi: See for the hybrid and EV vehicles, We are capable to produce mainly the certain transmission parts, Few cases, parts and wheel hub parts wherein various or a critical operations are to be taken out, So definitely where the value added processes or the critical operations are there, the margins would be better compared to my traditional bearing ring, or a traditional auto component business company is getting good response what they have initially supplied to the, overseas customer, who in turn supply to OEM and the successfully trial on run on the road, definitely there in this kind of business company is getting couple of percentage better margin compared to, my other low value added or a typical, product businesses.

Jason: It's the margins, a couple of percentages higher. Higher than our existing money.

Hiren Doshi: Yes

Jason: sure, sure, sure. And sir, you know, in terms of, when you look at the numbers, annual numbers, a certain back of when I do the back of envelope calculations, you know, we see that bearing rings this year. Overall, I'm talking about revenue growth has been around 8% and auto components has roughly been flat actually for the year. So, I just wanted to know going ahead 25-26 would you I mean, if any guidance you would want to give for both of these segments.

Hiren Doshi: Sir, first of all, the numbers, what you might have compared with the fiscal 23 versus fiscal 24.

Jason: That’s right, sir.

Hiren Doshi: As I was mentioning that in the these number, the commodity pricing is a vital factor. So if you compare the absolute number only, that may not give you the correct picture. There is definitely growth in the bearing, auto component business, also that is from overseas and even in domestic market. Let me tell you, a couple of domestic market customers who were very less in the last fiscal, maybe they have started their business somewhere in December 22nd or something like that. And for that, from there to six months, it is very, small quantum what they have lifted. But in this current fiscal, current fiscal, that is FY 20 for the reporting fiscal there, they have completely come up with the very increased demand and company has supplied. So there is growth in the auto component business, also in domestic as well as auto, overseas, particularly in last quarter, as I was mentioning that we are seeing some kind of turnaround, some kind of, you know, reverse turn in European segments. And they are one of the our main customer for auto components, they have significantly increased their volume.

Jason: Okay. Okay. Sir so any guidance? I mean, you generally do, for 25 or 26. Would you want to give any guidance for this for both the segments? I mean.

Hiren Doshi: For the overall business, for the overall, this thing, what management is envisaging is what, we can say, a meeting growth kind of thing that is somewhere about 14 to 16% over the numbers of fiscal 24.

Jason: Sure Sir, And, so, just want to know, you know, in terms of client traction, how are you seeing us? Europe remains key markets for us. And earlier in the year, you did mention that, you know, Europe was weak, right? Europe was seeing a slowdown. And so how do you see the situation right now? And just wanted to if you could speak something about the client traction and also, you know, I mean, I understand 56% is exports for us and 44% is domestic. So just if you could break it up into US, Europe and India, that your sales contribution.

Hiren Doshi: See, you know, our customers, they are basically global, multinationals. They have presence in, us as well as in European market Both. They have different plants at the different countries.

So once if we start with one customer, say, for example, in US, definitely we would be, rather we will be opening our doors for the other, plants at Europe for the same customer, So we are getting inquiries from there also But it is not pre-decided. Let me tell you, though, the European market was like, weak for the last, one and a half year or something like that. But, let me tell you, in this one and a half year, the maximum new customers, what we have developed, what we got an inquiry that is from the European territory only. So, there we have turn around. And now those, business, those lifting have already started at the same time in US, though, we were main majority, selling our auto component business over there in us, we have developed couple of bearing ring customers also mainly into industrial bearing and so on. So, there is, you know, it's not a fixed kind of trend or a traction in a particular territory, We were not having much of the growth in domestic market as far as the, auto component business is concerned. But for the last one year or last, almost 15 months, we have developed a couple of new customers in domestic for auto components, which they have started almost contributing to 3 to 5% of my monthly revenue.

Jason: Sure, sir and so in terms of percentage, how much would be the how much would this be? US, Europe and domestic, in terms of revenue?

Hiren Doshi: In terms of revenue, as I was telling that, 46% that is there from, domestic, right.

And, out of that 56 or if I'll just take that 56 number as an 100%, then there, 75% is from the US and 25% is from the European market. And we expect that the European number would be increasing down the line 15 to 18 months.

Jason: Okay Sir, that's very heartening to know that Europe is seeing a turnaround, and you would be beneficiaries of this. I just wanted to know utilization levels for our plant. What would what is that currently?

Hiren Doshi: Currently we are, I can say a couple of percentage of utilization, It is increasing. But again, we are in the range of 63 to 66 percent of my overall capacity.

Aashin: could you please come back in the queue as there are others waiting for the turn?

Jason: Sure, sir.

Aashin: We have our next question from Abhishek, please unmute yourself and ask your question.

Abhishek: Hi sir, Am I audible?

Hiren Doshi: Yeah Abhishek.

Abhishek: Thanks for the opportunity. Sir, just a couple of things in terms of, Europe you spoke about is about 25% of the exports. What was the peak number, sir?

Hiren Doshi: It was, say of experts, It is, it was maybe before two years back, it was 33, 35% of my total exports.

Abhishek : Okay, So that number has come down by a good 15, 20, 20, 25% over the last year?

Hiren Doshi: More than that You can say, yes.

Abhishek: And you think with recovery coming back because the way it has happened, sir, you have won new clients, but the older clients have obviously, you know, lowered their business. So, in next couple of years, you believe whatever earlier number in Europe that you are doing, you will be able to grow on that based on the new wins that you have seen in last couple of years?

Hiren Doshi: Yes, definitely. Because the new customer, you know, the volume of the new customer and the number of plants, what they have proposed and already they have nominated the same. Definitely We'll be having, you know, almost back to that number. What we had one for one and a half, two years back and no doubt. Yeah, definitely my existing customers with whom I am dealing business for, say, more than a decade or something, it has gone down.

But again, we expect that to now pick up in the coming quarters to some extent, not to fully, the contribution from the new customer will definitely help me or take me to the back. What we had from the European market share.

Abhishek: Okay, that's very helpful, sir. Sir, if you can also just broadly indicate what are the new wins that we have seen in the last 6 to 12 months.

Hiren Doshi: So new wind in terms of what?

Abhishek: In terms of new, have we got new orders or, in terms of bearing or auto components

So many of the major clients, how should we look at it, because that is something which will drive growth for you, so that is something you are trying to understand.

Hiren Doshi: Recently, from my European customer, just maybe almost a month back, only we got a couple of, nomination, couple of, program awarded and, no doubt that will be executed, Operated down the line 12 months, 12 to 14 months or effectively in the next fiscal. But that is again from, as I told you, from the European customer, prior to that, we were, rather we have been awarded various programs from the other customers who have just deferred their program because of, weak situation at overseas. Now they have started lifting or rather, the volume what they have started initially was on the lower side. Again, that volume has picked up and we and gradually it is ramping up.

Abhishek: Okay, sir One last question is, Sir one last question is that, you know, in terms of we are also seeing a lot of the domestic bearing manufacturer companies are adding a lot of capacity, some of them are likely to commission in next 6 to 8 months. So how should one look at orders coming in from there? Any indications, new product, Any indication there will be helpful Sir, Thanks.

Hiren Doshi: So, as you rightly said, that domestic customers are into expansion mode, and they are setting up new facilities with these paintings. See, all the main domestic players, as far as bearing manufacturers are concerned, they are into our, customer portfolio. But we are able to supply a particular range of the product in terms of bearing ring in a in my addressable segment, I am the preferred supplier for all these, you know, Indian leading bearing manufacturers. Bedding manufacturers are there. So definitely in my addressable segment in the product range, what I am able to capable to produce, I'll be getting the maximum share from my existing customers who are there, or rather who are expanding this thing. So, and we already develop few components, few new kind of bearing rings for the domestic customers, which may take again 6 to 8 months from now to, you know, operationalize.

Abhishek: Okay, so, that is very helpful, I have a few more questions, I’ll come back in the queue.

Aashin: Thank you so much. Yeah, we have a next question from Nikhil. Please unmute your line and ask your question.

Nikhil: Yeah, am I audible?

Hiren Doshi: Yes, you are audible.

Nikhil: Yeah, yeah. Thanks, Thanks for taking the question. Yeah Hiren Sir, Just wanted to understand, within your export mix, can you help us understand, what is the breakdown between, say, auto and, bearing rings and maybe similar breakup for domestic revenues?

Hiren Doshi: See, if you say for the last fiscal, my overall Export was somewhere about 640 crores. And in these 640 crores you can say 60% business is from the auto components and 40% from the bearing ring business. While coming to the domestic market, we had a total of somewhere about 50 crore rupees of bearing ring business, wherein almost 65% business is from the domestic and remaining from the export market. I'm sorry, Auto component market.

Nikhil: Okay. Got it, and then within exports, maybe if you can just give us some color that where are you seeing growth coming from. Is it more from auto components and bearing ring. And how does this mix maybe move going forward?

Hiren: Sir, we have, you know, growth, it's not a fixed trajectory that in this particular year we have, growth of, say, 15, 20% for both the segment or something like that. It depends on the territory and the new customer, what kind of product, how much time it will take to validate to develop this thing. But, let me tell you, in domestic market, in the last one, one and a half year, we have developed two auto components, customer, which are already contributing somewhere about 5 to 6 percentage of my overall revenue in terms of bearing ring also, we have developed, one new customer in domestic market as well as my existing customers have added certain products. Same story as far as overseas market is concerned, we have developed many or rather you can say 3 to 4 new customers in European market for majority of them are for auto component of business. Yes,And even in the US market, we are, We have been. As I was mentioning, we have been nominated for the certain project, having mixture of, this one auto component and bearing link both.

Unknown: This is so out of those three for customers in American market, few are going. Few projects are going to be start within this year by this year end, and the others will be by next year.

Unknown: We have already been nominated.

Unknown: Yeah.

Unknown: Got it, what simple process is going on? Very little.

Nikhil: Okay. Thank you And just lastly, one housekeeping question. I think if I look at the depreciation number, that has jumped up from, say broadly six, seven odd crores in 3Q2 12 odd Kurds. So, just if you could just, help us understand that number and how should we think about depreciation going forward? What is the CapEx number for, FY 24, if you could help us with that?

Hiren Doshi: That depreciation amount has increased mainly because of the CapEx of, or rather the capitalization of my solar plant of 11.5MW, which was capitalized in the month of Jan 24. So that that has been added. Apart from that, we have redesigned or we have reworked the residual life of the equipments as well as the depreciation rate. So, it has, bit, increased my depreciation in this particular year. Again, it would be the same kind of number in the next year because the 11.5MW solar, it was just, capitalized in Gen 24, So in the next year it would be a full year cap. Depreciation would be.

Nikhil: Got it. And CapEx, budget for FY 24? For 25 sir

Hiren Doshi: For five 25- 25, we, we are looking for, equipments as well as maybe for certain other, power conventional, equipments, also power conservation. They're both put together, we have plan to invest somewhere about, 45 to 60 crore rupees.

Nikhil: Got it. Thank you.

Aashin: We have a next question from Jason., Please unmute your line and ask your question.

Jason: Thanks for taking my question again, thank you, Sir just wanted my question was on the right of recompense charges, Now, I understand that the crown, Now you're asking. I mean, basically, you applied for a waiver for these charges, which will give you more freedom from the lenders and various capital management. I just wanted to know, sir, this is this a one-time charge or is it going to be a recurring?

Hiren Doshi: No, this is one time only, as I was mentioning, that we have paid off all the entire debt to all the lenders. Now, this is the ROR matter, which is only to be, resolved and paid it off. Once we pay off this claim, then company would become completely free with the all the assets what has been, mortgage or hypothecated to the bank, everything will be released. And the company would not be having any kind of finance costs unless and until we, may go for some kind of, borrowings. Otherwise, it is a one-time only.

Jason: It's a one-time cost And sir, once, If this is done, then, sir, what are the advantages of this? I mean, what if you could just elaborate on what are the advantages as of now?

Hiren Doshi: As of now, I'm supposed to have banking with my current lenders also, later on, I may approach other bankers for getting better services. For getting services, maybe at, some relaxed rate or at a competitive rate and we will be getting some kind of technical, technological benefit compared to my existing lenders and with the new lenders because of my me, almost 60% is overseas, business is concerned. Apart from that, these lenders have put certain covenants for my, restructuring the capital for, distribution of profits and all these withdrawals will move it off.

Jason: Okay. Okay, Sure sir, that’s good. And so, my next question just wanted to understand, you know, so overall at a global level, we are seeing increased Chinese competition in different sectors. But, and of course, the Chinese are peaked in terms of manufacturing as well. So, sir just wanted to know when you look at your clients, are you seeing an increased intensity of competition from the Chinese? Of course, the China Plus one, which benefits Indian players like you. So just wanted some color on how you are viewing Chinese competition has the competition intensity increased how you're seeing this thing in the market?

Hiren Doshi: Yeah, I would like to request Mr. Mihir.

Mihir: Yeah, See, we are not at all worried about China. Okay, Because, like, come see the, the biggest benefit, is our, geopolitical stability in our country where so all our customers and all overseas companies like American companies or a European company, they are not at all now comfortable with China, they are more comfortable with India and the pricing and everything.

We are at par with them now. And if you see the logistic, okay, so China is on the other direction, whereas Europe and America are in the totally different direction. So, their logistic cost is higher than us, so definitely we are not at all worried with China.

Unknown: And there was one news, I don't know whether it is true or not, but it was in America that

Mihir: Biden is putting a new, increasing the duty in China.

Jason: Okay. Okay, Sure, sure.

Mihir: Okay, so we are not sure, but we got that. And in fact, we are growing in American market also as well.

It's like European market, we are growing in American.

Unknown: There are many projects which we are discussing with our customer. They are these are the running. Their project means existing project usually they do not switch over to any other supplier. One of the very big project okay that at present it is going, It is they are buying through China now they are switching over to us.

Jason: Okay Sir

Mihir: verbally they have nominated us, now we are waiting for the paper email.

Jason: Okay, okay. So, we are seeing good traction and there is a clear, you know, mandate from the developed economies to shift away from China, So that augurs well for us.

Mihir: We have to increase our efficiency. We have a lot of projects in pipeline And but, we have to increase our efficiency. And one of the big advantages in our company is that we are moving very fastly with this, green energy. Now, everybody is looking at that aspect, also ESG and sustainability. And we are very much ahead in that process, the ESG, where we started from 2003.

But now European and American customers are insisting to get more and more renewable energy and, biogas. Recently, we have installed one plant from where we get gas for cooking from the waste of the kitchen. Kitchen waste.

Jason: Okay, okay. So, sir, you are focusing

Mihir: here in current quarter. These are our new 11.5MW solar plant has already started. So we will be getting the revenue from solar also.

Jason: Okay. And sir so even going ahead you will be looking at more renewable energy investments.

Hiren Doshi: Yes, yes definitely. Because you know nowadays European customers, they are insisting for more carbon emission, and they have given us certain targets. So, and we always believe to just, you know, overcome those targets as early as possible and it will be benefited for overseas as well as domestic business.

Jason: Sure Sir, and sir just lastly wanted to ask you, sir, last quarter you had said that there was some issue, a client specific issue wherein the revenue dipped because he had taken more you know, he has he taken more shipment in Q2, and you were seeing some weakness on the industrial side of things. Sir, now with elections taking place, and of course, we are yet to see how the mandate shapes up. But, sir, just wanted to know how is the industrial side looking for you in terms of demand, how have those issues kind of smoothened out? And are you seeing a good smooth trajectory ahead?

Hiren Doshi: Yes, as it was told earlier, also, it was a very kind of, you know, fees or a scenario, now particularly that customer in last quarter that is March 24th. Again, it went back to the same level or generally what monthly average they had. And we are getting even for this current year that is say from Jan, this 1st April and May 24th, we are getting the same kind of, level or it has already been, smoothly, rather at the back to the level.

Jason: Sure, Sure sir, Sure. Okay, That's all from my side. Thank you.

Aashin: You have a next question from Nikhil. Nikhil Please unmute your line and ask your question.

Nikhil: Yeah, Thanks for the, for taking my follow up question. So just I think you spoke about the opportunities on the US side. Can you just maybe highlight some incremental order wins that you're seeing in us? Either on bearing rings or automotives, component side? And also, would it be possible to maybe give us some sense on, say the order book or something like that? Because, I mean, just to understand us how how the revenue scale up can happen over the next maybe 2 to 3 years.

Hiren Doshi: See, as we mentioned. Rather, we, Mr. Mihir also informed that we have been nominated 2 or 3 projects in us as well as in European market. And now the process related to that has been

initiated. So it will take almost, what you say, 9 to 15 months to get the final SOP started and, the overall project, what we have been nominated, their value is in the in the range of 225 to 300 crores, but it will ramp up gradually to a year in, couple of years, spans from the date of, you know, SOP. So, whatever the new customer, we got an order or award, it would be effectively started in fiscal 26 with an volume of, you can say, 30% of their peak volume, something like that. Apart from that, the, new business, what we have already started in last 4 to 6 months, which is at a small, which is ramping in the coming quarters, definitely that will come to current fiscal as well as in next fiscal, in next fiscal they are almost at the peak level of their, order book, So we will be getting, you know, these kind of, programs where in the first year it is somewhere about 25, 30% of their overall, program. Then in next year, it may go up to 75% And later on in the third year, broadly, what I can indicate for this thing, not for the fiscal 25, but for the fiscal 26 or so company is having definitely, 18 to 20% growth on Y-o-Y numbers. Looking to the current parameters, looking to the current situation and the current estimated planning given by our customers.

Nikhil: Okay. All right., Thank you.

Aashin: Yeah, we have a next question from Abir, please unmute your line and ask your question, Yeah

So, the participant dropped off, so that was the last question for the day. I hand over the floor to Hiren Sir for any closing remarks.

Hiren Doshi: Thank you very much for all the participants to spend their valuable time for the intakes for the quarter ended March 24th, as well as the fiscal 24. On behalf of the management, I would like to acknowledge the support from our all the stakeholders, even our bankers, lenders and the suppliers of, the company, above all the customers of the, esteemed customers of our company. Once again, thank you very much. Also, to, arrange this earning call, Thank you very much.

Aashin: Thank you, on behalf of Equirus Securities, we conclude the call. Thank you.