Fiem Industries Ltd (NSE: FIEMIND) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
J.K. Jain — Chairman & Managing Director
O.P. Gupta — Chief Financial Officer
Vineet Sahni — Chief Executive Officer & Director
Analysts:
Sahil Sanghvi — Analyst
CA Garvit Goyal — Analyst
Jatin Chawla — Analyst
Ravi Purohit — Analyst
Hitesh Goel — Analyst
Khush Nahar — Analyst
Viraj — Analyst
Mohammed Patel — Analyst
Unidentified Participant
Akshat — Analyst
Prashant Kothari — Analyst
Mehul Panjwani — Analyst
Shubham Sehgal — Analyst
Ankur Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the FM Industries Limited Q3 FY ’25 Earnings Conference Call hosted by Monarch Networth Capital Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchstone phone. Please note, this conference call may contain forward-looking statements about the company, which are based on the belief, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr Sahil Sangwi from Monarch Networth Capital. Thank you, and over to you, sir.
Sahil Sanghvi — Analyst
Thank you,. Good evening, everyone. On behalf of Networth Capital, I welcome you all to the Q3 FY ’25 conference call of PM Industries Limited. We will start the call with the initial comment about the results and the future outlook of the company and then we’ll hand then we’ll open the floor for question-and-answers. Now I hand over the call to Mr JK Jain, Chairman and Managing Director of the company. Over to you, Jan sir.
J.K. Jain — Chairman & Managing Director
Thank you. Good afternoon, and welcome to the Q3 FY ’25 earnings call of Industries. Joining me on today’s call are Rahul Jain, Joint Managing Director; Rajesh Sharma, Joint Managing Director; Vineet, CEO and Director; Arvind Chohan, Company Secretary; OP Gupta, CFO and other members of the finance team. Our investor presentations and the results are now available on our website and the stock exchange. We stress that you must have reviewed the.
It gives me great pleasure to report that PM Industries has once again delivered an outstanding quarter exceeding industry’s benchmark and demonstrated the power of our strategic vision. Before going into our detailed results, let me briefly give an overview of the economy landscape. The Indian economy remains on an impressive growth path with GDP expected to rise by 6.7% in FY ’25.
Further, the Finance Minister’s historic move to give substantial relief of income tax to the middle class is likely to inject fresh momentum into the consumer demand, which will have direct positive impact on two-wheeler industries. Turning to the automobile sector, the two-wheeler industries has maintained its robust momentum, growing by more than 10% in the first-nine months of FY ’25. Rising ruler income, robust demand from the urban market and the new model launches have driven this growth, solidifying the two-wheeler industry’s position as a growth driver in India.
Yam has been able to outperform the industry’s achieving 22% sales growth in Q3 FY ’25. During the quarter, Yama and Royal posted a strong performance-driven by the new model launches. Yama launched FDR 150cc and FCG 250cc for Brazil and European market. In-line with the trend in automotive lighting industries, we are making significant investments for strengthening our electronic capabilities in the area of advanced design software, electronic laboratory for EMI and ESG testing and validation.
Further, we have also invested in the state-of-art electronic manufacturing facilities at our plants in North and South. In addition, we are also expanding our R&D and design capabilities at our subsidiaries FYT, Italy and PM Japan. We continue to make our sincere effort in growing four-wheeler business. Our first project of LED number plate for Mahindra and Mahindra has been approved for their three power, and other models.
Similarly, the second number plate is approved for the electric three-wheelers, and models. Our manufacturing facilities have now been approved by Mahindra and Mahindra and production is likely to commence from quarter FY ’26. Moreover, we have received another order for a new project FXUV 700 refresh model. Further, we are currently working on many more RFQs, which are likely to be converted into the confirm order in FY ’26. We continue to remain in focus on growing our in two-wheeler and four-wheeler segment through the new products and the new technology introduction.
With this, I hand over to Mr. Gupta and the finance team to update on operational performance.
O.P. Gupta — Chief Financial Officer
Thank you, sir. Good afternoon to everyone. I am presenting quarter three numbers for FY ’25 in comparison to the corresponding quarter of previous financial year. The company has registered a sales of INR590.1 crore in Q3 of Current financial year in comparison to INR483.11 crores in Q3 of FY ’24, which is an increase of 22.15%. The percentage of LED lighting within the total automotive lighting has increased to rupees to 61%. The EBITDA is higher at INR77.88 crore, translating into an EBITDA margin of 13.2% as compared to an EBITDA of INR64.48 crore, that is 13.35% in corresponding quarter of previous financial year. PAT has increased by 17.64% to INR47.41 crores as compared to INR40.30 crore in Q3 of FY ’24. During the quarter, the company has made a capex of INR36.94 crores, taking the total capex to INR108.78 crore for nine months of FY ’25. With this, I end the financial brief and now the floor is for question-and-answers
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and 1 the first question is from C a Goyal from Invest Analytics. Please go-ahead.
CA Garvit Goyal
Yes, yes, please hello, sir?
J.K. Jain
Yes, yes. If you can a little bit love that.
CA Garvit Goyal
Good evening and congrats on a decent set of numbers. Actually, I was reading in Business Standards a commentary from CEO Niranjan sir of Hero Moto that they are seeing a big rural sales jump-in next over the next four to eight quarters. So are we witnessing a sharp increase in or any such indication of increasing demand for our product-based on whatever conversation is happening with our end-customers? And thus, can we expect FY ’26 to be to be at a higher, higher-growth than our historical growth rate of 20% driven by the expected industry tailwinds as you also mentioned in your opening remarks, sir. So that is my first question.
J.K. Jain
Specifically, I don’t know which comment are you referring to, but we have maintained that the two-wheeler industry is on an upswing. FY ’25 is going to be very robust and we see no reason why the demand momentum should not continue into FY ’26 as well.
O.P. Gupta
Both rural and the urban markets are showing positive
CA Garvit Goyal
Understood. And first-half — in the first-nine months basically, we reported a significant growth. So are you confident enough to maintain that Y-on-Y growth in Q4 as well?
O.P. Gupta
Yes. And yes, growth momentum is on positive. We are seeing positive offshoots everywhere and we should continue.
CA Garvit Goyal
Understood, sir. And lastly, on the R&D initiatives and our four-wheeler initiative, what are the progress happening on that side? And are we — are we looking to increase our revenue in FY ’26 to the total revenue from the four-wheeler side? And what are the updates from the side as?
Vineet Sahni
Okay, there are many questions in there, but let’s just take the question on four-wheelers. So I’m — Vineet, I’ll answer your question on four-wheeler. See, as per our strategy, we are first finding entry points into four-wheelers. Revenue is not our immediate target. And you would have heard in Chairman’s speech, we already got presence in multiple models of, which is as per our strategic plan. And now our plan is to move-up the value chain and obtain orders for higher-value. And then next step would be to translate to other customers. So revenue will follow, but we are following our strategy of Group to go step-by-step in this field.
CA Garvit Goyal
And on Guguro front?
Vineet Sahni
Yeah. So Google is facing significant headwinds in the international market. I don’t know if you have picked-up those comments. They have a lot of challenges that we are facing at global markets which is why the India strategy yet remains unclear and which is why we are not seeing any significant uptick from where we updated since last quarter. It is right now on BOS.
CA Garvit Goyal
Until now, how much fun we have invested in that side?
O.P. Gupta
That is not a very big amount and we don’t have that figure in healthy. So that is we are just waiting for the go-growth response on global teams.
CA Garvit Goyal
Understood, sir. That’s it from my side, sir. All the best for the future. Thank you.
Operator
Thank you. The next question is from Jatin Chawla from RTL Investments. Please go-ahead.
Jatin Chawla
Yeah, hi, good afternoon, and thanks for the opportunity. And in the opening remarks, you spoke about some order for the UV 70 refresh. Is that also for the number plate or is that for some other lamp in the vehicle?
J.K. Jain
And no, it is not number plate. Number plate in any case will get commonized what we are developing and this is for another product, but still small lamp and — but it is for a new forthcoming model.
Jatin Chawla
Got it. Got it. On the quarterly results side, just wanted to check on two things. One, when I look at the growth for Honda, that growth is on a Y-o-Y basis 4%. I think Honda’s production numbers, the growth was much higher. So is that some share loss or is this because some models of Honda where we are present are not doing well and some others are doing well? That’s one. And secondly, on the replacement side also, I see there is a double-digit decline Y-o-Y during this quarter. So what is driving that?
O.P. Gupta
So on Honda business, you’re right, the growth is 4%-odd versus 6% to 7% which the Honda alone, that is primarily driven by a certain set of models there at Honda’s end, which are doing — which have taken uptick. There is no sort of change in our business model with them. Our business continues to be absolutely same. And Honda is already showing uptick in volumes as we speak now. The last quarter, there was also shutdown at Honda, which has impacted some volumes.
The planned shutdown from December 22 onwards. So that has also impacted their volumes.
Jatin Chawla
Got it. And on the replacement side,
O.P. Gupta
Yeah. As in the last quarter also, it is being explained that now all the lands is being converted from conventional to LED. So demand is of course be reducing. And further on, we have an agreement with all the customers whatever properties of woods and other things are available with us to be produced or customers belongs to them. So this will be impacting quarter-on-quarter, plus or minus both.
Jatin Chawla
So broadly, directionally, we should expect this business to kind of go down going-forward.
O.P. Gupta
So we are working for some other models wherein we are not in — with directly with the customers. Those things will definitely come in the replacement market that will give the boost to our replaceable market Phase-2.
Jatin Chawla
Understood. Understood. Thanks a lot.
Operator
Thank you. Next question is from Ravi Purohit from Securities Investment Management. Please go-ahead.
Ravi Purohit
Yeah, hi. Thanks for taking my question and congratulations on good set of numbers. A couple of things. Generally wanted to understand, you know, we’ve been speaking about various kind of ambient lighting and lighting per se themselves have also dramatically improved over the last few years on the newer vehicles. So if you could kind of just give us some flavor, let’s say, for example, five years back or 10 years back-in a typical SUV or a typical or hatchback, what would have been the cost of putting all the lightings in — within — inside of the car and head lamp and tail lamp and all those things.
And today, let’s say, when we are looking at newer models from newer companies like recently, has had showcased their electric vehicles. Hyunda is in-process of launching a few, has announced a few. So we see a lot of lights in these newer vehicles. So how does kind of the addressable market or you know, the lighting spend per vehicle on an average change between what it was three years back, five years back and what it is today and what it will be in the next five years.
O.P. Gupta
That’s a very, very broad question . I think we need to spend a lot of time on that, but to give you a broad sense, let’s say, 20 years back, a lamp of the minimum, like say, 800cc model used to cost around INR700, INR800 right now typical lamp of LED today would cost around INR8,000 crore to INR10,000. So that is a big change that has happened in the industry. The overall market, which was approximately INR2,600 crores now is around INR8,000 crores to INR10,000 crores market just for, you know exhedial lamps. But the interior lamps and MEL lighting is also getting added. So the overall market potential of lighting only in India is going to around INR10,000 to INR15,000 crore in future. So there’s a lot of work to be done. You are right and we at PM are working on all these technologies. We are also developing some proof-of-concept with some of the OEMs, which I can’t disclose now on several new technologies. So we are absolutely on what is happening in technology and lighting and we are working closely with certain OEMs to bring this technology in India.
Ravi Purohit
So if you could just give like a ballpark, let’s say, the Mahindra showcase of the two new what in your guess would be the spend — total spend of lighting in that model, right, if those models are selling at like 30 lakhs or 35 lakhs, would lighting be 50,000 both inside or outside both put together?
O.P. Gupta
This is out-of-the scope of my purview to give the answer because there are competitive products. I don’t think it is right for me to give the numbers on this subject, please. We are not supplying to them. It is the competition, so it won’t be correct on my part to give you any numbers, right?
Ravi Purohit
Okay. But first you second lighting, in addition to the existing lighting could increase our substantially going-forward. And we already have products and all the facilities able to service this upcoming demand in the next three to five years
O.P. Gupta
So there is a strategy which has. And as we said, we want to follow a robust strategy. It is a step-by-step manner. You cannot address whole market immediately. It will be incorrect. So we have a planned strategy, focused customer with whom we are working and gradually we will expand our base. Because we are increasing our spend, as you would have heard in Chairman’s speech on R&D, we are focusing a lot on electronics and these are the future things which will help us in growing our market-share in India,
Ravi Purohit
Right. And sir, second is on — we had this tie-up with and we were kind of getting tech transfer on the motors and all the other parts. Now what happens to that? What happens to the money that we’ve spent or what happens to the tech transfer that is coming in from there? Are we allowed to kind of use only for Gogro or can we kind of absorb technology and offer products to other OEMs also? So if you could just give an update on what is happening with the tie-up with Gogro, how much money has been spent and what does the future look like?
O.P. Gupta
So the — okay, so let me answer that first on the money part, the money is kind of insignificant is under INR10 crores. So it’s — it’s a very small number that also is reimbursable. So frankly, that is not the challenge. As you rightly pointed out, what we were hoping for was the technology transfer to happen fast and we could go to the market to other customers as well. That process is as of now at cause as we said, because of the global challenges. We expect that technology transfer to happen and that should happen in the next couple of quarters. It might get delayed. However, it is kind of clear that may not be pursuing the Indian market so heavily.
So we do not expect too much volumes out of that. But if the tech transfer happens, then that would help us attack this segment in a different manner, but that remains to be seen how it will be played out over the next two quarters. At this point of time, it is on.
Ravi Purohit
Okay. Okay. Okay. Great. Thanks a lot. I’ll get back-in the queue and all the best.
Operator
Thank you. Thank you. Next question is from Hitesh Goel from Riddhish Advisors. Please go-ahead.
Hitesh Goel
Thank you, sir and congratulations on very good set of results. My first question is on four-wheeler business. Can you give us some sense what is the kind of content per vehicle right now you are envisaging in the four-wheeler segment with especially Mahindra because we’ve got a lot of these models versus, say, content that you have on our TV just for us to get a sense of how 400 business will move.
O.P. Gupta
Yeah, thank you,. I’ve understood your question. See, as of now, as I said, this is a very small NAM. Our strategy is to make our presence in every model. And the best way to enter into every model is get into some land which is common, which we have done, right? So the content today is insignificant and therefore, we are not chasing revenue as of now. We are our presence in various models because that will open bigger markets for us in future. So that is the plan.
Hitesh Goel
So Vineet, any guidance you can give us say in five years time, what can be the revenue-share of four-wheeler or your vision, maybe your vision say, so today there is only 3%.
Vineet Sahni
Yeah. So as I had spoken in last conference also, we have not documented and we have not planned revenue as of now and I had requested for one more year to bring in our strategy paper because our presence is maturing and we are getting good response from our customers. Even the traction on new technology is good. Now it is difficult to quantify at this moment. We will do it at appropriate time and share with you definitely.
Hitesh Goel
Okay, great. And my second question is on zero motor cost. You had talked about six models that you are under — you’re working with zero for development. So any updates on that? When will we see a meaningful revenue from zero for?
Vineet Sahni
Yeah. We are just waiting for the products are ready for mass production. We are just waiting for the launches, which is being announced by customer and thereafter we can recard and we can declare in our subsequent quarters.
Hitesh Goel
But what can be the size of? I mean, in that sense, will it become, say, 10% of revenues in two years’ time any sense you can give us?
Vineet Sahni
Yes, this will be very difficult as of now because volumes are obviously decided by the customer. So sales — sales and others will definitely come out with once the customer will launch and customer will take care of their numbers. And these are right now new models. So it’s tough to say in terms of acceptance of these new models, how quickly they will scale-up. But over here, we are working for 10% more than 10%. Yeah, we are working on that.
Hitesh Goel
Okay. And my final question is on margins. Basically, we are seeing consistent increase in LED ratio, right, in the lighting business, and most of even in entry-level now customers are putting LED lights. So just wanted to get a sense on margins because gross margins haven’t moved much. If you look at — so gross margins will remain in the same is LED margins in LED gross margin will be back sorry, go-ahead.
J.K. Jain
We’ve kind of clarified this in the past as well that there is a gradual turn towards LED, which you can see is not significant. However, our margins, whether it’s LED or broadly in the same range.
Hitesh Goel
Okay, great, sir. Thank you very much and all the best.
O.P. Gupta
Thanks for the volumes and operating leverage, that has already increased.
Hitesh Goel
Yeah. Yeah, got it, sir. Got it. Thank you, sir and all the best. Good luck.
Operator
Thank you. The next question is from Khush Nahar from Electrum PMS. Please go-ahead.
Khush Nahar
Hi, sir. Thank you for the opportunity. So a couple of questions from my side. The first is, could you elaborate more on what led such strong growth of 21% in-quarter three because usually from other auto and players, we hear that quarter three is a usually a weaker quarter in terms of post-festive and some shutdowns happen. And consequently, the new order wins that we have won, how much is the LED portion?
And my second question is on the capex plan that we have over the next three years?
O.P. Gupta
Okay. So the Q3, you’re right, Q3 industry has grown well in volume terms, if you see, Q3 has been 8% growth for the industry. We have outperformed because of our overall mix. We’ve kind of highlighted that some of our customers, notably Yaha, Royal Enfield and several others did much better than these numbers. So all of this together helped us beat this industrial number and we have grown more than 20% at close to 22.2%. And as far as your other question, LED is concerned, yes, that has increased from 57% to 61% For the current quarter and we think that this number will keep inching upwards as new models are being introduced. New models, all of them are mostly LED and hence LED number will constantly increase. And your final question was on capex. Now we had guided for a INR125 crores to INR150 crore odd of capex. We’ve already spent INR108 crore for nine months already. Another INR25-odd crores would be sort of spent in Jan to March. So that — so we are broadly in that range for the current year. And for the next year, the number could be anywhere from INR75 crore to INR100 crore additionally.
Khush Nahar
So as of now also, we are not planning to spend in terms of a new four-wheel plant.
O.P. Gupta
No, this does not include any new greenfield four-wheeler plant. This includes the normal capex, which takes care of the current requirement of the four-wheeler.
Khush Nahar
So could you help me with the cash number then the cash on books as
O.P. Gupta
This is INR217 crores.
Khush Nahar
Okay, sir. Thank you.
Operator
Thank you. Next question is from Viraj from SIMPL. Please go-ahead.
Viraj
Yeah, hi, am I audible?
O.P. Gupta
Yeah,
Viraj
Sir, just couple of questions. First is, you know, if you look at the sales figure for the supplies to Royal NC, we — a quarter or two back, we talked about us bagging order for Class-8. So if you kind of adjust for that, you’ve probably not seen a full ramp-up of that for supplies to royal and feature. Would that be your right?
O.P. Gupta
Sorry,. Can you come again? What is your exist? Your voice is not clear. Just go a little distant from the mic please. Your muffled voice is coming.
Viraj
Yeah, am I audible now? Yeah, I was asking, if I look at the supplies to sales to Royal and fee you know, given that we have bagged an order from — for the classic and we are a sole supplier, one would think the ramp-up would be much faster in terms of supplies to royal and. So just trying to understand you know, what is driving why the ramp-up seems to be a little softer.
O.P. Gupta
Why would you say the Q3, Q-on-Q year-on-year increase for oil and field, we are almost like up 100% over last year. Yes.
Viraj
Okay, because if you map out the quarterly production numbers and unit realizations, usually one would see a typical sales addition of INR20-odd crores on a quarterly basis. So hence, I was just trying to understand
O.P. Gupta
If it’s more like INR30 crores for which is significantly higher number than last year.
Viraj
Okay. Second is in terms of VYAMA, you know, can you just give some more color what has driven the growth there? Is it more export-driven? Is it more domestic launches? And how should one understand the run-rate there?
O.P. Gupta
As already our Chairman has already announced, there are two models which has given us export volume that is for Brazil and Europe. And simultaneously, the domestic market is also growing, which is together with us.
Viraj
Okay. So in the past, we used to talk about us working on six to eight new model platforms for Yama, both globally and India. So how is the pipeline looking now?
O.P. Gupta
Yeah. As of now, we are at the same track. We are as of now also having eight new models, which are for domestic as well as for export market.
Viraj
Okay. Second question was on the PV. In the early conversation, you talked about us working on electronics further making investments and also working on. So can you elaborate a bit more what exactly we’re doing there? And added question is, you know, in the past few calls, we talked about us looking at or having tie-ups with different technologies. So is that largely for the Indian market or there is an opportunity for us to look from an export point-of-view also with those partners?
Vineet Sahni
So I will address this. Your first question is on electronics. Yes, electronic is required not only for four-wheeler, but also for two-wheeler because both the products in segments are going electronics. So PIM as a group is strengthening the electronic capability in-house. All-in design softwares, validation, setting up EMI, EMC and setting up a good manufacturing facility with the latest equipment. So that is a process which is not only going to help two-wheeler, but also four-wheelers as a business.
We are still working with our technology partners and all this development is focused on India market, right? So while we are absolutely open for exports, but our focus today is for India market.
Viraj
Yeah. Okay. Just one follow-up. You talked about electronics. Now if you look at for two-wheeler lighting also, I think we were one of the earliest players when it came to setting up the SMT lines and having that background integration. So when you say further in electronics, what is further background integration we are doing there, you know, either for two-wheeler and four-wheeler?
Vineet Sahni
See the whole outlook of electronic is changing. It is not only simple electronic, now electronic is coming with AutoSAR, can and lean arrangements, connectivity within the two-wheeler, with the ECU in lot of things are changing in electronics is not very simple. Software is getting embedded into hardwares. So software, firmware, hardware, everything is required in modern products. So this is something which needs to be upgraded by the organization and we are again taking early-mover advantage by taking some actions now.
Viraj
Okay. Okay. So in terms of capex, I think what you said is we are looking at spending close to INR100 odd crores this year, correct me. Now if I look at the cash balance as of September end, we were close to INR220 odd crores in the cash balance. Now even in the end-of-the December quarter, we are still around the same balance. So is it because of — I mean, is the working capital increase, is there any significant increase in working capital or how should one understand this?
Vineet Sahni
Correct. So is your question around the end-use of this?
Viraj
My question is, if I look at September cash balance, still around INR250 crore INR220 odd crores. And as of December, we’re still around similar range.
O.P. Gupta
Right. Yeah, your observation is correct. The cash balance is almost same. There is — there are two — basically two big reasons. One is the dividend payout that has happened in the same quarter and we are whatever is the additional capex we are doing, this is all from internal accruals. So the balance remains same.
Viraj
Okay. Thank you and good luck.
O.P. Gupta
Thank you.
Operator
Thank you. Next question is from Mohammed Patel from Care Portfolio Managers. Please go-ahead.
Mohammed Patel
Am I audible?
O.P. Gupta
Yes, yes.
Mohammed Patel
Yes, thank you for the opportunity and congratulations on a good set of numbers. Sir, my first question was basically like currently you are so your voice is not clear. Is it better now?
O.P. Gupta
There is lot of background noise there is lot of background noise.
Mohammed Patel
Hello, sir, is it better now?
O.P. Gupta
Yeah, okay,
Mohammed Patel
So I was asking that sir, currently we are servicing the PV market with the help of our current existing lines and plant and machinery. So going-forward, would we be liquid new assembly lines and plants for ramp-up of the PV products.
Vineet Sahni
Yes, therefore PV products, like any other product, new lines are required. Same lines cannot be used. So whatever products we are doing and will do will require investment in-line — assembly lines. So like what would be the estimated capex just estimate if you had to give?
O.P. Gupta
So the capex figure given to you just now includes investment of four-wheeler and two-wheeler board. There is only a marginal investment in four-wheeler as of now. Any significant investment will be informed to the investors.
Mohammed Patel
Okay, sir. Thank you. And last question was, sir, basically , I’m sorry if I’m repeating the question. So in — for, as you said we have only spent like INR10 crores for the investment. But have you put any like plan for the and is it remaining adile or how what have you done in terms of investment for Gogur?
O.P. Gupta
Okay. Yeah. Let me try and understand because it’s difficult to follow your — with some noise. But did you ask what is our investment in Goguro?
Mohammed Patel
Yes, sir. Like have you put up a plant or for the
O.P. Gupta
As I said, it is under INR10 crores, it’s in single-digits and that’s why it’s not a material figure and plus these are all investments which are returnable from Gogru. These are — these are part of agreement with them
Mohammed Patel
Okay, sir like — and we have not any invested in a major asset for them like currently?
O.P. Gupta
No, there’s nothing beyond this.
Mohammed Patel
Okay. Thank you so much.
Operator
Thank you. Next question is from Shubh from Capital.
Unidentified Participant
Hello.
O.P. Gupta
And yes, please go-ahead.
Unidentified Participant
Sir, you used to share wallet share data for different OEMs if that is available, can you share please?
O.P. Gupta
So we shared up to last year’s only last two, three years we share, but as of now, we don’t have that figure because that is lot of information we got from the OEM and OEM. So we don’t have the data for the current year. We’ll be able to perhaps put it together as part of the annual. Yes. It is — it is estimated number on quarter is difficult, but we try for the analytics.
Unidentified Participant
Understood. No problem. Also, is there any update on the fire money, the imbursement?
O.P. Gupta
But you are talking about the insurance okay, so that is already in the process. We have received 50 INR30 crores is already received in the month of September as that okay.
Unidentified Participant
Right, understood. And nothing and about that as of now, right?
O.P. Gupta
So that is I just inform this is in the process under final process of — nothing is required further. Further we have not reviewed anything.
Unidentified Participant
Okay, understood. Understood. Yeah, that’s all from my side.
Operator
Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. Next question is from Kushnar from Electron PMS. Please go-ahead Nahar, you may go-ahead with your question.
Khush Nahar
Hello. Yeah, I’m audible now.
O.P. Gupta
Yes,
Khush Nahar
Okay. Yeah. Thank you for the opportunity again. So I just wanted an update on the four-wheeler European OEM to whom we were supplying approval stages were going on over there. So any update on that?
Vineet Sahni
Yeah. It’s a good question. We have last week submitted our final samples to them. It has just reached them yesterday. And with our complete detailed report, all parts from our side are okay. So we have sent the final samples and that will go to customer next week and then the process will start. So this is moving as per the plan.
Khush Nahar
Okay. All right, sir. Thank you.
Operator
Thank you. Next question is from Saurabh from multi. Please go-ahead.
Akshat
Yeah, hi, thank you for the opportunity.I’m Akshat from Multi-act. So my question was mainly on Yamaha. So I wanted to understand and get a clarification as to this light that we are supplying. If you are supplying to Yamaha, India and whether they are exporting the light as it is or they are making the entire motorcycle and exporting it.
Vineet Sahni
No, we are sending the lights to Yamaha India and Yamaha India is sending these lights to outside countries and assemblies will be — of vehicle assemblies will be at MBK as well as in Brazil Yabah.
Akshat
And this is mainly for the YBR 150 model, right?
Vineet Sahni
These are the two models which is being explained you. This is of model is FZ 150, 150 and XTZ to 50C.
Akshat
All right. And my next question was mainly on hero. So we’ve been working on around six to eight model of heroes for a long-time. So just wanted to understand if you’ve got any idea of the launch pipeline of those models from hero and what could be our estimated SOP for those models.
Vineet Sahni
It is three models, upcoming models are being validated and QAV is being done by customer. Now just we are waiting for their launch and ramp-up plan and thereafter we will explain you and we will give you the overall details.
Akshat
All right. And sir, any other significant model wins in the Q3, which you would like to highlight because we’ve not highlighted in the opening remarks.
Vineet Sahni
So Q3 was of course the year ending model year. So it is be launch in the new year whenever you go for a January 2. So there are few models which is being launched by the new customers — by the other customers during this quarter. So we will explain you these all models during this call.
Akshat
Okay. Thank you.
Operator
Thank you. Next question is from Prashant Kothari from Stock Market REIT. Please go-ahead.
Prashant Kothari
Yeah. Good evening, everyone. Am I audible?
Vineet Sahni
Yes. Yeah.
Prashant Kothari
I wanted to ask about the Mercedes Pence project. What is the SOP for that?
Vineet Sahni
So as we had informed, we are doing the low-volume development project for Mercedes. So our first project is already — first two projects are already complete and delivered to Mercedes. Third project is on and that is also moving as per plan.
Prashant Kothari
Okay. And about the Gogoro project, have you initiated any discussion with the other EV OEMs to commercialize this?
Vineet Sahni
No, we just explained that we — there is the transfer of technology process spending and once that is completed, only then can we start that discussion with other areas
Prashant Kothari
Thank you.
Operator
Thank you. A reminder to participants that you may press star and one to ask questions. The next question is from Mehul Panjwani from 40 cents. Please go-ahead.
Mehul Panjwani
Hello, sir. Thank you for the opportunity. I am recently tracking your company. So I just want to understand, I got to know from earlier question that there was some fire for which we have got insurance. So when was the fire sir, which period of the year and was it in this financial year or
O.P. Gupta
Okay. So this fire happened on 13th of June 2023 and as I informed, one adopt payment has we already received INR30 crores in the month of September last year and rest of the things are under process.
Mehul Panjwani
Okay, sir. Thank you. And one more follow-up question, sir. So was there any operational impact during that period?
O.P. Gupta
No, no. We timely intimated to the store exchange also. This production was resumed within three days and all things are now original again stated
Mehul Panjwani
Okay, sir. Thank you so much.
Operator
Thank you. Ladies and gentlemen, to ask a question please press star and 1 participants who wish to ask questions may press star and one on the touchstone telephone. Next question is from Shubham Segal from Skill Ventures. Please go-ahead.
Shubham Sehgal
Am I audible?
O.P. Gupta
Yes yeah.
Shubham Sehgal
Thanks for the opportunity. So my question is about the new technologies. So if we see in our annual report, we had mentioned about four technologies, namely ambul lighting laser, capacitive touch and? And we also mentioned that we’ve been working with our technological part like technology partners and we’ve signed MOUs with them. So I just wanted to ask like how far are we with these technologies, like could we see them materializing in maybe one, two years going-forward. So like could you give some color about these? And like any specific technologies that we have got any proof-of-concept that we are working on?
Vineet Sahni
Yeah, sure. So as I said, this initiative of ours and new technology is quite well appreciated By our customers. And we did the technology show and we are quite deeply engaged with our customers. So currently with two customers, we are working on proof-of-concept. And one of the technology has got more traction and we will be shortly receiving a statement of requirement and RFQ from one of the customers and that is the result of all the hard work we have done in last 1.5 years on technology. And once we work on that RFQ, then we are likely to get that business. So this is a step-by-step process and we are quite engaged with the customer in bringing good results for PM Group.
Shubham Sehgal
Okay. And I’m assuming this would be a domestic customer that we are working with?
Vineet Sahni
See, we are working with Indian customers, that is our focus.
Shubham Sehgal
But so my question here is that why aren’t we targeting like international customers? Like don’t you think like the acceptance rate could be higher and we could get more orders there?
Vineet Sahni
No, it is not the. We — as we said, we are a conservative organization moving in robust planned step-by-step process. We don’t want to jump. First, we will establish ourselves in Indian market, we will establish a good-quality and then we will approach international market.
Shubham Sehgal
Okay, got it. That’s all from my side
Operator
Thank you. Next question is from CA Garvit Goyal from analytics. Please go-ahead.
CA Garvit Goyal
Hi, thanks for the follow-up. Just want to know like what is the anticipated margin profiles in the upcoming quarters? Like in June quarter, we’ll do around 14% and since then we are doing 13%. So is it the sustainable kind of margin guidance, we will guide for future as well or are we looking to further improve the margin?
O.P. Gupta
We don’t give quarter-by-quarter margin guidance. We’ve kind of said that we ideally like to work-in a brand of around 13% 13.5%, but we don’t give any other specific guidance, especially quarter-over-quarter. This is what our intent would be over the next couple of years.
CA Garvit Goyal
Thank you, sir. Thank you very much.
Operator
Thank you. To ask questions, please press star and one. Ladies and gentlemen, to ask questions, you may press star and one on a touchtone telephone. Next question is from Prashant Kothari from Stock Market Read. Please go-ahead.
Prashant Kothari
Hello, am I audible?
Vineet Sahni
Yeah.
Prashant Kothari
Yeah. Just a follow-up. With the recent fluctuations in the raw-material cost, particularly for plastic and electronic components. Are we handling — how are we handling the price pass-throughs with the OEM? And has there been any delays or pushback in passing on the cost increase.
O.P. Gupta
So there is a very defined process in terms of handling these escalations or changes that happens because we have to work very, very closely with the OEM on every component. Everything is transparent. So as we explained in the past also, there is a pass-through process, any changes is pass-through on a quarterly basis. So any impact on any changes will come through with discussions with OEM on a quarterly basis. It is also process which will have. So no impact on us on any of the — any changes that may happen in.
Prashant Kothari
Okay. Thanks so much.
Operator
Thank you. Next question is from Kushnahar from Electrum PMS. Please go-ahead.
Khush Nahar
Sir, thank you for the opportunity again. Sir, just one question. I had any kind of guidance that you would like to give in terms of revenue for the next three years?
O.P. Gupta
No, we don’t give any specific guidance. What we like to maintain is that we will be — we are very optimistic and we hope as the things are going well in the auto sector, so we hope well. Good improvement.
Khush Nahar
So any kind of range 15% to 20%, maybe one point industry is growing by X, what are we targeting
O.P. Gupta
I’m on the business. We’ve done — we’ve always done better than industry at 15% to 20% is something that we definitely would like to get to, definitely not less than that. But again, as we said, we don’t give a specific number,
Khush Nahar
But yeah, all right. And sir, when can we expect that right. So when can we expect four-wheeler to contribute significantly, say, around 10% of our top-line when is that possible in which year?
O.P. Gupta
Exactly. So as I said that we will be coming out with the crystalized numbers after our strategy in entry at OEM is done, which will take a year and we will definitely present our business plan because currently we are not focusing on revenue. We are focusing on entry and then we are going to focus on increasing our revenues. So we will be sharing that with you at appropriate time.
Khush Nahar
All right, sir. Thank you for all the answers. So thanks.
Operator
Thank you. Thank you. Next question is from Ankur Shah from Capital. Please go-ahead.
Ankur Shah
Hi, sir, congratulations on a great set of numbers. Sir, just one question on the margin. So like with the 22% top-line growth, we would have expected some operational leverage to materialize on the bottom-line. And yeah, sir. So is there some reinvestment which is taking up the extra margins? Because last call, I think you all called out that the factories are running at 80% capacity. So in any manufacturing setup, the last 20% is the most profitable.
So like why are the margins staying where they are
O.P. Gupta
Here is the synopsis of how we look at our business. And as we explained whether you know, from a product-wise, one of the driver has been LED also. As you see, this growth is coming from the transformation from conventional to LED, that is also one of the important driver of this growth. And whether it’s LED or conventional, the margins are broadly same at customer level.
So while I appreciate what you’re saying on operating leverage. However, you know, this is the broad number that we operate.
Ankur Shah
Yes. So is it that you know, if we reach a particular customer volume, is it that the customer will ask for repricing because that is the only thought which comes to my mind.
O.P. Gupta
Yes, we are in a super competitive environment where customer always wants a newer, right? It is never that the customer will not want the newer side.
Vineet Sahni
Lot depends on product mix also. One of the customer goes down, other customer goes up, so margin is complex and you cannot relate directly that if the sale has gone up, margins will go up. What product mix is there, that is very important. And I can give you example, Ola was doing, for example, 50,000 a month, which is now 25,000, so margins would change. So the product mix is important.
O.P. Gupta
And also if you look at Q-on-Q from Q2 to Q3, our sales are actually marginally lower only from Q2, but our margins are better. So it’s not just a function. You’re right in an environment where there is increasing scale, there should be more, but there are many other things that you will need to kind of break-out, including around product mix.
Ankur Shah
Yeah. No, no, really appreciate and I understand the competitive intensity. Thanks. Thanks for all this. Wishing you all the best.
O.P. Gupta
Thank you.
Operator
Thank you. That was the last question in queue. I would now like to hand the conference back to Mr Sanghvi for closing comments.
Sahil Sanghvi
Yeah. I just wanted to thank all the participants for joining the call and also thank you to the management for very elaborately answering all the questions. Sir, would you like to give any closing comments, please?
J.K. Jain
Yes, please. I would like to thank everyone for participation in today’s conference call. I hope that we have adequately addressed all your queries. If you have any further questions, please don’t hesitate to contact us. Thank you, and have a good evening. Thank you.
Sahil Sanghvi
Thank you.
Operator
Thank you very much. On behalf of Monarch Networth Capital, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.