Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Kross Ltd (NSE: KROSS) Q4 2026 Earnings Call dated May. 13, 2026
Analysts:
Mihir Vora — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Cross Limited 4Q FY26 earnings conference call hosted by Equity Securities Private 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. Shoulding assistance during the conference call, please signal an operator by pressing start then zero on a touchdown phone. Please note that this conference is being recorded. I now hand conference over to Mr.
Nir Vora from Aquarius. Thank you and over to you Mr. Me.
Mihir Vora — Analyst
Yeah. Thank you. Welcome everyone to the Q4FY26 post results conference call of Cross with the from the management team we have with us Mr. Sudha chairman and managing director Mr. Sumit Rai, whole time director and Mr.
Operator
Kunal
Mihir Vora — Analyst
Rai, whole time director and CFO.
Operator
So
Mihir Vora — Analyst
Without taking much of your time, I will hand over the call to Kunal. Now over to you Kunal.
Operator
Hi good afternoon everybody. Thank you for joining us on the earnings call for Cross Limited for the fourth quarter and full year ended March 2026. Alongside I have with me is Mr. Sumit Rai, full time Director, other Senior team members and also our Investor relation advisors that is Captify Consulting. I’m pleased to report that the company concluded FY26 for on a strong note, building on the momentum gained in the second half of the year supported by a favorable macroeconomic environment, the GST rationalization benefits and a robust recovery in the commercial vehicle segment.
In spite of a slow H1 in FY26, we were able to register a top line growth of 8.5% in FY26. H2 of FY26 revenue marking was a 49.2 increase over our H1 FY26 sale, reflecting strong momentum in the latter half of the year. On a quarterly basis, Q3 FY26 sales registered a 18.1% year on year growth compared to Q3 of FY25 and similarly for quarter four of FY26 our sales grew 22% in comparison to Q4 of FY25. These figures highlight consistent acceleration in the revenue growth across both halves and quarters.
Although the demand has been good, it’s overall been a challenging quarter for with the Middle east conflict resulting in the shortage of LPG and a substantial increase in commodity prices and consumables. However, our business has not been much impacted by the war and the tariff uncertainties in the US. With this I hand over the call to Mr. Sumit Rai to brief you on the segmental performances and the future outlook of the company.
Mihir Vora — Analyst
Thanks Kunal.
Operator
The auto component sector, particularly the tractor, commercial vehicle and the trailer segments have witnessed a strong recovery in H2 of FY26 and this is continuing in quarter one of FY27 for the M&HCV segment. Both E OEMs, that is Tata Motors and Ashok Leyland have reported strong volume growth in quarter four and this is continuing in April of 2026. We expect this momentum to sustain throughout FY27 given their healthy order books and the projections which they have given us. The trailer segment has also increased in size dramatically.
The volumes have gone up considerably in quarter four and we have successfully launched and validated our shipping jack product which has contributed to our sale in quarter four and will strengthen our position in the trailers ecosystem and will also contribute in FY27. The tractor and Agri segment. This segment has had a healthy double digit growth this previous year April 2026 tractor industry data remains encouraging. We remain on track to increase the contribution of the tractor segment to approximately 15% of total revenue over the next two years.
When it comes to exports. This has contributed to 4% of our revenue of FY26 and we are confident of increasing our exports contribution in the next two years given that we have secured orders from European Tier 1 customers. We have made some strategic investments and we have made some strategic investments in capacity expansions and new initiatives and these are progressing well and poised to support in our future growth. Firstly, Tipping JAKS has been launched in Q4 of FY26 and the initial feedback is very encouraging.
We are targeting 300 units by the end of quarter one and subsequently 500 units in quarter two and in quarter three. The axle beam extrusion plant has also been commissioned and production trials are progressing. We will be selling these axles in this month which is May of 2026. The seamless tube facility construction is almost complete. Foundation work for all the installations is almost ready and this project is on track as far as forging capabilities. We have significantly expanded our forging capabilities by commissioning a number of multiple high tonnage presses which has increased our production capacity efficiency and this is giving us the higher growth.
We are also installing a high pressure mold line. This will be operational by September of 2026 and this will double our existing capacity in casting which will help in supporting the trailer axle sales. We will also be shortly commissioning a new robotic forging facility specifically for rear axle shafts. This is a material gathering process and we will be ready to supply these axles by September 2026 to our customers looking towards the future, the healthy order books and the upward trend in trailer volume, sustained tractor demand and benefits from our capacity expansion, the company is well poised for a healthy growth in FY27.
With this, I’d like to hand over the call to Kunal to provide detailed financial performance of Q4 of FY26. I’ll just take you through our key financial performance for the quarter which has passed by and also for the full year for Q4, the revenue stands at 225.4 crore reflecting a growth of 22% year on year basis. EBITDA is at 33.6 crores representing a year on year growth of 25%. The EBITDA margin for last quarter is at 14.9% up 41 basis points year on year and 168 quarter on quarter PAT is at 22.4 crores reflecting a year on year growth of 31% whereas the packed margins almost were at 10% which is 69 basis points year on year.
In terms of our sales and segment mix for quarter, four axles and the suspension business contributed to 45% whereas the rest of the component business was at 55%. For the entire year our revenue stood at 673.2 crores reflecting a growth of 8.5%. EBITDA was at 87.9% representing a growth of 8.2% and EBITDA margin stood at 13.1%. PAT was at 55.2 crores with a PAT margin of 8.2% up 46 basis points year on year. If we look into the sales and segment mix for the entire year, the trailer axles and suspension business was at 43% whereas the rest of the component business is at 57%.
An important update regarding our ITO proceeds is that the company has now utilized 100% of the proceeds and they have all been deployed. We thank everybody for their continued support and for joining this call. We can now open the floor for further queries. Thank you.
Mihir Vora — Analyst
Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question
Questions and Answers:
Operator
May press star N1 on the Touchstone. If you wish to remove yourself from the question queue you make a star into. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assemble. We have first question from the line of Mr. Mirvora from Curious securities. Please go ahead.
Mihir Vora
Yeah, so. So my question was basically on the tractor segment wherein we are currently at 9% of revenues
Operator
But we have a target of around 15% in the next one or two years with tractor segment growth expected to be at a single digit kind of a growth level. So why are we so positive? Like what drives the target of around 15%? Is it new customer addition, new products? Some light on that. Thanks, Nir. So there has been, there are two updates on the tractor segment we saw last the last year the tractor segment has grown substantially. We basically plan to increase it to 15% by two means, I.e. 1, by new customer addition and also by getting into new products.
We are working with three large OEMs in the tractor submentago which we’ve been working for the last 15, 20 years. We have now started with the third OEM. The developments of those components have been completed, they’ve been successful and we will be starting our revenues with them from quarter one onwards. And also with the existing two customers we have diversified. We are diversifying our product base even further into coatings and also shaft components and even Kafkan parts. So that is how we plan to.
It’s not going to be done in one year, but I think by the end of two years we should have a better contribution coming in from the agri segment.
Mihir Vora
Okay, okay. And so my second question is on the exports front. So with our new extruded line coming into the picture, so from when can we see some traction into the trailer axles export as well or trailer axle component export something on that.
Operator
See, we haven’t really explored this market. We do plan on exporting these extruded axle beams or the axles made from these extruded axle beams, but we have not really started exploring that side of the business. I think once this line is completely operational in terms of, we have, we are producing upward of 5,000 axle beams a month. We will be looking into export requirements because that will involve significant developments because it’s not exactly the same product which gets sold outside. So to make those investments in tool and die, we’d first like to completely operationalize the existing plant with the existing tooling and then invest in new tools.
Mihir Vora
Okay sir, and just a follow up on that. So in terms of extruded lines which we have now, so here will the tonnage the like we were into the 13 to 15, 10 kind of excels. So will that also increase or that tonnage continues to remain same?
Operator
No, no, the, the tonnage will be the same. It is more efficient. It is more efficient in terms of the weight of the axle beam. That means a lower weight axle beam is able to Take a higher tonnage capacity. So we will be. We have different axles. So different axle beams, they will be used for the same tonnage. I mean,
Mihir Vora
Okay.
Operator
By the end customer, the tonnage does not change.
Mihir Vora
Okay, okay, I get that.
Operator
Highest tonnage axle we have is the 18 ton axle. And
Mihir Vora
Sure. Okay. I’ll get back into the.
Operator
Thank you. We have next question from the line of Uncle Podar from Sawan Investment. Please go ahead.
Mihir Vora
Hi, team. Congrats on good set of numbers and also on commissioning of your extrusion plant as well as the tipping jacks facility.
Operator
My first question is, can you tell me the volumes for the axles for the quarter? We’ve done roughly above 10,500 trailer axles. But what has really picked up in the quarter four of the FY26 has been on air suspension and mechanical suspension. We’ve done upward of 3,500 suspensions for the entire quarter.
Mihir Vora
Okay, understood. And second is, sir, the tipping jacks has been commissioned. But have we seen any revenue coming in in Q4 or are we expecting revenues from FY27?
Operator
Yes, we have started seeing revenues. But, Ankur, what’s happening is that there is a validation process with. When it comes to the tipping jacks, right. We have sold Approximately. In quarter four, we’ve already sold around 75, 80 tips. Okay. And in quarter one, we would be doing approximately 150 to 200. We’ve already sold 300 numbers for this quarter. So right now that the validation we have done, we’ve got, you know, we’ve got encouraging feedback from the fabricators where we have installed this.
So revenue have started coming in. It’s very less, but it will pick up when we reach to 3, 400 kicks a month.
Mihir Vora
Okay,
Operator
Understood.
Mihir Vora
So the 80, 75, 80 units that we have sold in this quarter, I’m assuming that revenue is also part of your trailer. Part
Operator
Of the trailer business.
Mihir Vora
Understood. All right. And one question is on our seamless tube facility, can you give us a timeline on when we’re expecting to complete the like? When do we see completion of the facility?
Operator
See the facilities for the seamless? The construction work is completed and we have just returned back from China after coming and inspecting all the equipment. So the first set of equipment is the piercer that should be dispatched from China by end of May. The other set of equipment, that is the furnace. That is the rotary heat furnace, which is being sourced from Westman, that is already undergoing installation. So as far as you know, by when will the seamless cube get completed? It will get completed around the Q4 of this year as as power plan.
Mihir Vora
Okay, understood. I’ll join by the queue. Thank you.
Operator
Thank you. Reminder to all the participants that you must start and when to ask a question. Reminder to all the participants that you may be starving to ask the question we have next question from the line of Subam Batra from Ambit amc. Please go ahead.
Mihir Vora
Hi team. Congratulations on a strong set of numbers.
Operator
Sorry
Mihir Vora
Shubham, we can hear you.
Operator
Can you, can you speak a little louder? Yeah, yeah. So congratulations on a strong set of numbers. Couple of questions. First, on the CapEx for the year we have done around 100 crores of capex. Broadly. If you could explain how much of this has gone to the seamless facility already and what is our capex expectation for the next year? And second is, could you give me a bookkeeping question? Could you give me the breakup of revenue between the axle and the suspension business for the year? Okay. The axle and suspension mixes approximately at 70, 30.
That is the outer contribute around 70%. I mean that is not specifically for the quarter. It’s not that the realization values have drastically changed. But for quarter four we will get back to you on the exact mix because we’ve done more of air suspension for the
Mihir Vora
Whole year.
Operator
For quarter four it’s been at around 60% of axles and 40% of 60% for suspensions and 40% for and for the capex. We’ll also tell you what we have planned for the month of FY27. FY27 would be more on the capex for the seamless tube unit. Otherwise the rest of the infrastructure in terms of capacity expansion on forgings and machining has mostly been completed. There will be obviously a maintenance capex that the company would be spending for our machining line and the new casting line. But if you look into the spend for the seamless tube is going to be approximately 100 crores for FY27 and for the other business it’s going to be around 20 to 25 crores.
Fair to say we have spent around 60 crores this year on the same machine, Right? Absolutely.
Mihir Vora
Yeah,
Operator
Got it, got it. Secondly, one more question. If I could squeeze it in. So we had a capacity of 5,000 axles a month. Right. And now we have expanded that to 7,500 axles. With the new. How you plan on ramping up the utilization in these plants? Are we expanding distribution? Are we bringing in new fabricators who we are selling the product to? How is the acceptance of the product acceptance of the product is good, very honestly. Yeah, sorry. The acceptance of the product is good, very honestly. At the moment we are struggling to meet the demand which is being given to us.
Struggling to ramp up to meet our peak capacity. But this is a temporary hiccup. I mean once we have the extruded plants in the operational, we plan to significantly ramp up our capacity and we have the distribution across the country in place to do that. I mean we have sales teams in every state and we have tie ups with all the major trailer manufacturers across the country. I can
Mihir Vora
Thank you.
Operator
Reminder to all the participants that you press star and when to ask a question. Reminder to all the participants that you that you press star and when to ask a question. We have next question from the line of Ajish from Quantum Solutions. Please go ahead.
Mihir Vora
Thank you for the opportunity as the company has undertaken multiple backward integration initiatives. So could you help us understand how this initiative are expected to impact margins, cost saving and overall profitability in the upcoming years. And also what kind of revenue growth should we expect for next two to three years?
Operator
The margins on backward integrations. Let’s take the latest one which we have planned out is pharmacy industry. Okay. So our requirement of seamless tubes currently is being on the import route right now. And when we have our own facilities there will be an improved margin because our rupee to dollar, you know, there’s been a lot of erosion. It is not in line with the steel price increase. But since the rupee has gone down, it just goes to show that our margins will be better. That is one thing.
And your second question was on
Mihir Vora
Revenue growth for next year? Yeah.
Operator
So revenue growth, you know, if we, we have already put forward what our plans are for this year. Okay. We have already put plans for a steep increase for this year. Now revenue growth from the seamless unit will start in FY28. It will not be in FY27. That is this year. By the end of this year we will have the plant commissioned and revenue growth will take place from FY28 after, you know, doing whatever in house consumptions and requirements. And then we will start making cubes for the market, for the market sizes.
So it is not going to be in this financial year that the seamless cube will contribute towards revenue growth. As far as the revenue growth for this year, we have already taken up big project of enhancing our turnover for this year.
Mihir Vora
Please quantify the number
Operator
One minute. It all depends on how the business continues to be doing. You know, you can see our previous quarter three, quarter four results in quarter four, we’ve been able to increase our revenue by around 22%. That is what we would be looking at for this financial year as well. So it’s obviously subject to the demand being consistent as we’ve seen in the last six months. And if that continues, it’s being 45 days into this quarter, things have been robust. If that continues, we should be looking at that growth project.
Mihir Vora
And we have done around 15% margin this quarter. So it is to assume that this 15% is sustainable. And going forward from this 15% we will increase our margin to further with our seamless tube plant as it’s got operational. Right?
Operator
Yeah. The seamless tube plant being operational as we mentioned will take a little time. Even when it starts, there will be some time till the margins and all start getting better. But between 14, 14 to 15% margin is what we are looking at for the further quarters as well. Quarter one, we have to see in the sense that there has been a lot of consumable and commodity price hikes. We as manufacturers working with OEMs haven’t got this settlement yet. It’s retrospective. But it takes approximately one quarter for these things to take place.
So a quarter one or two here or there, but between 14 to 15% margin is what we’re looking at. Okay, sir.
Mihir Vora
Thank you, sir. Thank you.
Operator
We have next question from the line of Nishant Verma from Nuama Wealth ECG Research. Sir, please go ahead.
Mihir Vora
Thank you. Sir. This is Nishant Sharma from Noama Research. First of all, congratulations on a great set of numbers. Just want to understand in terms of margin profile across the two
Operator
Segments that you have and also what kind of a margin that you expect from tractor as you increase the
Mihir Vora
Share of revenue from tractor segment as well as exports.
Operator
So is there a material difference
Mihir Vora
In margin for these two segments as well?
Operator
So basically if we look into margins, one of the product ranges that we have for the exports, that is where the margins are the best. If you look into all our product lines then as basically our axles and suspension business and the tipping jack business followed by the component business. So increasing revenue in terms of or contribution towards the tractor segment is not going to expand any margins. In fact, the tractor segment out of all of these segments are you could say the most competitive when it comes to prices.
So as I said, you know, towards margin expansion we have done a lot of backward integration already. Now we are setting up another casting line which will be on by September, October to help our supply chain in terms of break drums and hubs for Axles, but the extrusion line for the trailers, when we reach to a decent utilization, that will expand our margin and then more of extreme. And in a year’s time, the seamless tube,
Mihir Vora
So extrusion line will also be coming from September onwards.
Operator
So extrusion we have already done all the trials. Right now, in fact, the machining trials for the extruded beam is going on. We should be started. We should start selling these axles by the end of this month or by June.
Mihir Vora
Okay. And going forward, like, because I’ve just started looking at this company, while we have seen
Operator
That FY24 and FY25, there was more of a flattish kind of revenue. And then we saw a 9% jump this year, which is, I believe, largely driven by the industry factors. And now that we are also expanding capacities, is it fair to assume the kind of 22% growth that we are indicating that Q4,
Mihir Vora
We have seen a 22% kind of a growth that’s quite sustainable.
Operator
That is what we are planning. That is what we are planning. The two years which have been a flat trend is because the industry has been flat and rather de grown. In fact, in terms of more tonnage in the CV segment, volumes overall have gone down. But for the last six months, we’ve seen both tonnage and demand going up. And if that continues so with the new product launches that we have and the continued order book, we should be in a space to grow at that space.
Mihir Vora
And lastly, on the CV side, while you sounded pretty confident in terms of
Operator
Demand momentum continuing, however, on the ground, many are believing that this rising fuel prices would impact the OPEX cost for CV operators there. That’s where the demand may also see some impact on the CV side. So what kind of a comfort
Mihir Vora
That you guys are getting from OEM side with respect to their offtake from your side?
Operator
So if you look into the volumes which are being produced right now, they’re upward of 12,000, 10,000 trucks by the two largest TV manufacturers. So, you know, there’s been literally no slowdown from their side yet. Fine, it could be probably not at 14, 15,000 level to what probably February or March was, but if you compare it to the quarter one of the previous year, there is a substantial increase in volumes. This fuel increase might be a temporary hiccup which might be there, but as far as the demand is there, it’s still there.
Quarter one, it’s been there. Quarter two, in general, the cycle is not a very, very strong quarter for commercial vehicles due to monsoons. But we’ve seen a far better quarter one in this year as compared to the last year.
Mihir Vora
Just stretching a bit on this question. On a yearly basis, if you, if you, if you have to see your projections which OEMs give, will it be a 8 to 10% kind of a growth that these guys are giving you? Yeah,
Operator
Much better than 8 to
Mihir Vora
10%.
Operator
Well, even OEM after a very long time have had two good quarters. Right. So it’s not that I feel they also want to, you know, work with it, but We’ve discussed with OEMs regarding their plans for FY27 and they will surely see a high single digit growth is what they are targeting in volume across all of their segments. You know, the higher tonnage and also their other kipper vehicles 10 everything put together, they’re seeing a high single digit growth. So second half of the year for CV as it is a very strong H2.
But this year we’re seeing a far better quarter one at least than what quarter one was for last year.
Mihir Vora
Sure sir, I’ll fall back in queue. I
Operator
Have more questions. Thank you.
Mihir Vora
Thank
Operator
You. We have next question from the line of Akash from NV Alpapan. Please go ahead.
Mihir Vora
Yeah, hi sir, in our previous call I think we had alluded that with the new tech exploded axles coming in
Operator
Gain market share. So in relation to that, just wanted to understand what are the on ground first level response that we are getting from and fabricators and all that. We have sold it to certain fabricators right now but the line has not fully been productionized for us to. Sort of replace the existing model with this new one. So it’s a little too early for me to give you this feedback right now, but maybe next quarter we’ll have a feedback to give you.
Mihir Vora
Understood, that’s it for me,
Operator
Thank you. We have next question from the line of Sidar Jain from Tower Ventures. Please go ahead. Mr. Siddharth, your line is unmuted. Please ask me the question. We do not have any response from the. From the line of Mr. Siddharthan. We take the next question from the line of Subam Batra from mbtmc. Please go ahead.
Mihir Vora
Hi, could one also speak on what kind of commodity pressure are you all expecting to come in?
Operator
In Q1 particularly and also for the whole year if you could broadly speak on it. So Shubham, when we are working with OEMs and large tier one companies, we as manufacturers get compensated by them. Now there are a couple of increases. The first one being on commodity. I mean it’s too early because the settlement hasn’t taken place. But stocks are in place for I think between three to five rupees per kilogram in terms of steel price increase. And this will be but effect from the month of April itself.
We don’t see this going back to quarter four. Apart from that there has been, we have given our requests to OEMs for an increase in conversion due to price hike in tooling different types of oil and also due to shortage of LPG gas prices have also shot up. So when you work with OEMs or large tier ones, you have to place these papers with them. And then whenever there is an industry settlement, again as I mentioned in the last call as well we are covered for it, we get it retrospective. But the settlement is at least delayed by one quarter.
And for our other businesses, for like our trailer axle or suspension business, we have already increased our prices to the market which is being followed by other manufacturers as well. Got it, got it. So would it be fair to assume that the trailer axle and suspension business we have kind of passed out major part of the increase but the OEM Q4 price hike, the commodity run up that we saw, we not get a pass through for that. Since you said that the price hike deal also will be effective from April.
Right. So we should see a margin pressure in Q1. Again this. Yes, that is what we feel from the dialogue with the OEMs and the mills is what is currently being discussed. Because you know, these shortages mostly have come in from the latter half of March actually, you know, which is the end of quarter four. So we don’t, we feel that it’s not really going to come in from quarter four. It’s going to happen more. A settlement will happen with quarter one onwards. And in our axle and suspension business we have there is no scope of, you know, getting anything retrospective.
So this is something which has to be implemented from day one so that we have already passed on the price hike to the fabricators. How much of a price hike have we taken? It depends on approximately 5% till the time there is settlement. And we know if the settlement is further then we will increase it further or subsequently reduce it. But I think the impact is we get compensated by it. Right. So our quarter does not have a very, very large impact. Fact we do manage that much. Okay, thank you. And it happens almost every quarter or if not quarter once in every six months.
This trend obviously happens
Mihir Vora
In
Operator
The last year. Also the industry has seen some reduction in commodity prices. So these things keep happening. It’s just that it’s a little larger for this one. Got it, got it. Thank you.
Mihir Vora
Thank you.
Operator
We have next question from the line of
Mihir Vora
From Equation Securities.
Operator
Please go ahead.
Mihir Vora
Yeah, so sir, just a follow up on this part in terms of the RN cost moment and all. So basically currently, are we also facing any supply chain issues or. The supply chain issues are sorted and our production is sort of seamless right now?
Operator
Well, Mer, it’s not seamless but also it’s not been a very big hindrance in the sense that if you look into steel, steel availability is there with the mills. But you know, as far as what stocks they maintain and everything, that that is not as how it used to be earlier. You know, if for example, you want to roll a thousand tonnes for a specific grade and size, what they are following is approximately 50, 60% of that. Only apart from that gas, we feel that it has improved during the shortage when it was there, we had to change our furnaces.
So we’ve done that so that there’s not hard dependence only on lpg. It’s on other resources as well. So let’s see, we have to wait and watch as to what happens a little later on. I just want to add on this. You know, you could just see what happened with lpg. We are very dependent on LPG and furnace soils and the ldos to fire our furnaces because that’s a big part of our heat treatment is a very big part. But nevertheless we were able to, you know, increase our turnover year on year, quarter on quarter.
We could not have done it without if there was hindrance which was, you know, disturbing our supply chain. So of course there is a matter of a little bit of margin. But nevertheless we were able to weather this storm of LPG with our resources.
Mihir Vora
Okay, okay. And does the 5% price hike into the trailer accent segment suffice or you need to take some more to cover the rm?
Operator
If I have to ask you and you give me it is so easy, you know, these are market conditions. There is a competitor, you know, and we can’t go over the competitor. We are number two player so we can’t price our product more than the number one player. There are certain things which are market driven and final pricing of these type of products are market driven. So if we have our way, we would love to increase it further but things have to be have to be sold. Also
Mihir Vora
We have to take
Operator
A balance at how much the competitor has increased is increased by 4%. Okay, we can maximum go to 5%,
Mihir Vora
Right?
Operator
We can’t go beyond that.
Mihir Vora
Yeah, yeah. Sir, just one more thing is more of a broader view question
Operator
Here that see now across we are hearing the rail freight corridor being built up across states and you know, it is picking up now. So when we talk to this, you know, fleet operators or the fabricators who you know, make these trailers and all sort of stuff. So what is an overall view in the market right
Mihir Vora
Now that how will the rail freight corridor impact the CV industry? Will it impact the trailers more or some view on that sense?
Operator
See I’ll tell you forget the real we railroad carrier or no, this freight freight carrier, you, you look at it, there is the train which goes from Jamshedpur to Chennai every day. Okay? Yep. How much of a consignment are we booking on that train? You know, we, we. It’s zero because the cost of transportation by the receipt of transportation is 3 rupees a kg. And when we have to do the dispatch by train it cost us over 18 rupees. That is six times the receipted cost. The rest goes into brokerages.
So I’ll give you also we don’t fear about the freight corridor because it’s going to be run by the railways. And in countries like say India, most of the goods. You look at how the bus industries has been growing, why the trains are also running. They have started so many trains. But why is it that Tata Motors and Ashok Leyland year on year are increasing their buck range? Ashok Leyland has increased their bus production by 22% for this financial year. It’s not that the trains have stopped running.
The freight corridor is important to transport goods from port to certain destinations and certain commodities like maybe stone, oil, gas, all those commodities, but not really goods which are manufactured from. Say components, parts, even food stock. It’s not going to be used for that. And just one minute there’s Sumit would like to add on something on the freight corridor. Yeah. So basically it’s very honestly difficult to say right now how much of an impact it will have. But the thing is that transportation by trailers there is a wide range of material that is transported via trailers from coals which are mined to coal which is mined to iron ore to steel, to cars, to bikes, to FMCG goods, to road building materials.
So the freight corridor is going to, if it takes up, it will take up a portion of a portion of the trailer industry. So it’s not like it’s going to be taking up a wide chunk out of the entire trailer industry. Maybe it will impact more on the rigid body vehicles, which transport smaller. I mean, which transport smaller goods, you know, but as far as the trailers go, it’s. It’s going to take up, you know, a smaller percentage.
Mihir Vora
That’s
Operator
What we feel right now, at least.
Mihir Vora
Okay. Okay. As there are no further questions from the participants, I now hand the conference over to management for closing comments.
Operator
Hi. We thank everybody for joining and participating in the call. We are excited about the opportunities ahead. We remain committed to delivering sustainable and profitable growth. And for any further queries, please reach out to our IR team, that is to Captify Consulting. Thank you once again,
Mihir Vora
Ladies and gentlemen, on behalf of Equeria Securities Priorit. That concludes this conference. Thank you for joining us. And humans, thank