Ask Automotive Ltd (NSE: ASKAUTOLTD) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Snighter Albuquerque — Analyst
Kuldip Singh Rathee — Chairman and Managing Director
Unidentified Speaker
Analysts:
Sanjeev Agrawal — Analyst
Joseph George — Analyst
Hitesh Thakurani — Analyst
Ronak Mehta — Analyst
Basudeb Banerjee — Analyst
Kuber Chauhan — Analyst
Naveen Dubey — Analyst
Pradyumna Choudhary — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to ASK Automotive’s Q3 FY ’25 Post Conference Call hosted by Adfactors PR. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Snighter. Thank you, and over to you, sir.
Snighter Albuquerque — Analyst
Thanks, Sejal. A very good evening to everyone, and welcome to the Q3 and Nine-Month FY ’25 earnings call of ASK Automotive Limited.
From the senior management, we have with us Mr. Kuldip Singh Rathee, Chairman and Managing Director; Mr. Prashant Rathee, Whole-Time Director; Mr. Aman Rathee, Whole-Time Director; and Mr. Naresh Kumar, Chief Financial Officer.
Before we begin the earnings call, I would like to mention that some of the statements made during today’s call may be forward-looking in nature and hence may involve risks and uncertainties, including those related to the future financials and operating performance of the company. Please bear with us if there is a call dropped during the course of the conference call, we would ensure the call is reconnected at the earliest.
I would now like to hand over the call to Mr. Kuldip Singh Rathee for his opening remarks. Thank you, and over to you, sir.
Kuldip Singh Rathee — Chairman and Managing Director
Thank you. Good evening, ladies and gentlemen. It gives me an immense pleasure to welcome you all for our quarter three and nine-month financial year ’25 earnings conference call.
Before I proceed, I hope you all have had the chance to go through the detailed presentation submitted to the exchanges and uploaded on our website. I am elated to be with you today evening to update you on our business performance for the 3rd-quarter and nine months ended December 31 December, 2024.
I would like to begin by giving some insights on the industry update, followed by details of our business performance. As per CM report, the automobile sector in terms of vehicle production across all segments grew at around 6.4% in Q3 FY ’25 against the same-period last year. Amongst all segments, two-wheeler posted production growth of 8% in Q3 FY ’25 and 13.1% in nine months FY ’25 on Y-o-Y basis.
The two-wheeler industry registered robust vehicle production volume of 5.9 million in Q3 FY ’25 against 5.5 billion in the same period last year. The two-wheeler production in nine months FY ’25 was at 18 billion against 15.9 million in the same period last year. India’s stable policy ecosystem in 2024. Building on the foundation of previous years has significantly supported the automotive industry’s growth. As 2025 begins with the optimism generated by the Bharat Mobility Global Expo, this positive momentum is expected to further accelerate the sector’s progress in the coming years.
I’m now moving on to ASK business performance. I’m delighted to share with you that we had a strong finish to the 3rd-quarter and nine months of the year in both revenue and profitability. This is the fifth consecutive quarter of robust performance by us since listing of the company last year. During Q3 FY ’25, we delivered strong performance in business and recorded significant growth of 21% in revenue, 41% in EBITDA and 32% impact on year-on-year basis. We have also continued to outperform the two-wheeler industry vehicle production growth in Q3 FY ’25.
Further, I’m glad that we have delivered highest-ever EBITDA margin of 12.5% in Q3 FY ’25, which is 180 basis-points higher than Q3 FY ’24. As a result of strong performance in Q3 FY ’25, our revenue has grown by 24%, EBITDA by 50% and PAT by 51% in nine months FY ’25 on year-on-year basis. Our EBITDA margin stood at 12.2% in nine months FY ’25 with an improvement of 205 basis-points on year-on-year basis.
These strong results reflect the result of our continued focus on expanding value-added businesses, improving utilization of production capacities and bringing cost efficiencies. Our aim is to sustain this level of EBITDA margins and improve gradually in the subsequent quarters depending upon the growth of the two-wheeler industry. With strong profit performance on profitability, our earnings per share in nine months FY ’25 has increased to INR9.64 per share against INR6.39 per share in the same-period last year.
Let me now go into further details of our performance on both revenue and margin side. We have delivered robust performance in Q3 FY ’25 and recorded consolidated total income of INR919 crores, which is 21% higher on year-on-year basis. As a result, the consolidated total income for nine months financial year ’25 stood at INR2,760 crores, posting a 25% year-on-year growth. All the three product segments continued to perform well and delivered robust revenue growth in-quarter three financial year ’25.
We have sustained market leadership position in the advanced systems business with 14% year-on-year growth. The aluminum light-weighting precision solutions, our largest business segment with 43% share of revenue led the growth momentum and delivered 25% year-on-year growth. And safety control cables also grew by 10% on year-on-year basis. We have recorded strong growth in our margins and profitability.
Our quarter three FY ’25 EBITDA stood at INR115 crores, recording 41% year-on-year growth and nine months FY ’25 at INR337 crores, posting 50% year-on-year growth. We have delivered PAT of INR66 crore with 32% Y-o-Y growth in-quarter three of financial year ’25 and INR190 crores in nine months financial year ’25 with 51% growth on year-on-year base. If we exclude one-time deferred tax gain of INR7.15 crore in-quarter three of financial year ’24, adjusted year-on-year PAT growth is 54% and in Q3 FY ’25 and 60% in nine months FY ’25.
I’m glad to inform you that in nine months of FY ’25, we have achieved an EBITDA of INR337 crores versus last full-year EBITDA of INR311 crores in FY ’24. Similarly, in nine months of FY ’25, we have achieved PAT of INR190 crores against the last full-year PAT of INR174 crore in FY ’24.
Now let me talk briefly about status of expansion plans of our production capacities. Firstly, our mega manufacturing facility at Karoli is expanding fast. The increased economies of scale and operational efficiencies are benefiting us in delivering better results. Secondly, our 18th manufacturing facility at Bengaluru, that’s our third plant in Southern India, in Bangalore has commercialized on 14 January 2025. Thirdly, solar power plant of 9.9 megawatt in Sirsa, Haryana for captive consumption started trial production on 27 January 2025 and will start supply of power soon.
Further, out-of-the UDN budget allocation of INR11 lakh INR10,000 crores for FY ’25 for infrastructure, about major portion is still unspent. Regarding the remaining portion of the budget allocation, we expect the government to spend in Q4 in a big way. Thus the money shall percolate to the lowest level, including rural areas. This shall give a further boost to the sale of two-wheelers in the country.
As we go-forward, we are hopeful of maintaining trend of outperforming industry growth in the subsequent quarter of FY ’25. We anticipate the growth momentum in two-wheeler sector to continue for the remaining part of the year with prevailing positive market sentiment. Lastly, we are confident that we would continue to deliver strong performance in coming quarters and generate value for our stakeholders.
With this, I’ll open the floor for question-and-answers. Thank you very much.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Sanjeev Agrawal [Phonetic] from Avighna Investments. Please go-ahead.
Sanjeev Agrawal
Good evening, everyone. Am I audible? Please confirm?
Operator
Yes, sir.
Sanjeev Agrawal
Sir, first of all, thank you for this opportunity. And I would also congratulate the team for achieving such a high EBITDA margin, which is definitely a one triggering factor for us as investors. Sir, I would like to know if you can help us with the EBITDA margins on the three to four product lines that we are having in our organization is advanced baking systems vis-a-vis aluminium lightween, which are the two main and other jee as well.
Kuldip Singh Rathee
Well, Sanjeev, our EBITDA margins in all the three verticals are very close to each other. They are similar. So the good part is as you said that we could achieve the highest EBITDA margins by better capacity utilizations and because the — in last two years, we invested very heavily and we invested INR475 crores in the Karoly plant till-date and we are continuously investing up to INR200 crores in the third plant — 18th manufacturing facility in Bangalore.
Sanjeev Agrawal
Sir. Thank you. Sir, the second question would be since that can you explain us a percentage between the EV versus non-EV that we are selling right now?
Kuldip Singh Rathee
See, our percentage is similar because we are supplying to 80% of the OEMs in the EV sector. So the EV is total — of our EV percentage at the moment is only 5% of the total vehicle production in two-wheelers and we — our outsource share of business is effect.
Sanjeev Agrawal
Thank you, sir. That’s all from timely.
Operator
Thank you. The next question is from the line of Joseph George from IIFL Securities. Please go-ahead.
Joseph George
Thank you for the opportunity and congratulations on good numbers. Just two questions. One is the JV with ISIN Group, you mentioned that you’re going to launch it in — I mean, in terms of the product launches that’s going to happen in April 2025. Want to understand how should we think about the scale of operations in year-one in terms of maybe revenues or profitability?
Kuldip Singh Rathee
Well, Mr. Joseph, there was a very good response. We launched — we had an exhibition in the Bharat Mobility Expo and there was an extremely positive response from the dealers all over the country. We are in the process of appointing dealers all over the country and we hope to launch the operations in Q1 as we had always told before.
Joseph George
Okay, any sense on how big the scale of operations would be in year-one?
Kuldip Singh Rathee
No, I think year-one is always a start. And as we progress in the quarters, maybe we’ll give you some feedback after the H1.
Joseph George
Sure, sir, no problem. The second point I want to touch upon was the subsidy that is expected for the Rajasthan plant. And I think earlier you had mentioned that it will start flowing in from the end of FY ’25. Is that the status even now and nothing has slowed in 3Q?
Kuldip Singh Rathee
No, no, no, it has flowed in and we could achieve all the conditions and we got the — we have applied for the and as the entire time has started from the Q3, you know.
Joseph George
So some — I mean some of that subsidy has already started accruing in Q3 itself.
Kuldip Singh Rathee
Yes, it is about INR6.75 crores a subsidy from the Karoly plant in the Q3.
Joseph George
Understood.
Kuldip Singh Rathee
And now onwards. Now onwards, similar figure of around INR7 crores will continue in the forthcoming quarters also.
Joseph George
Understood, sir. Thank you.
Operator
Thank you. The next question is from the line of Hitesh from HDFC Securities Institutional Equities. Please go-ahead.
Hitesh Thakurani
Yeah. Hi, sir. My question is, how do you see the two-wheeler demand shaping up over the coming months? And is there any concern of higher inventory-led to production cuts by two-wheeler players because the export market pickup for two-wheelers is also gradual. So how do you see the production schedules of our two-wheeler customers shaping up?
Kuldip Singh Rathee
No, I see — I feel that the coming quarters Q4 is very much sorted and I’m an optimist on the two-wheelers very much. And I feel as I mentioned in my presentation that once this infrastructure spending is done, lot of money is going to flow down the line and which is — they are the real customers of two-wheelers and I feel positive even on the next FY.
Hitesh Thakurani
No, sir. And one more question on what is the — how do you compare the difference in the content per vehicle of the ICE two-wheeler and the electric two-wheeler for our components?
Kuldip Singh Rathee
The EV component because we are into very critical lightweighting and thermal management products, the EV — in EV, the component is higher, you know, it’s 30% to 50% higher in the EV. So if we — since we are agnostic, ice agnostic and EV agnostic. So once EV actually picks up, then I think our revenues will further growth.
Hitesh Thakurani
Sure, sir. Thank you.
Operator
Thank you. The next question is from the line of Ronak Mehta from JM Financial. Please go-ahead.
Ronak Mehta
Hi, sir. Thank you for the opportunity, and congratulations on good set of numbers. So I have couple of questions. First is on the Karoli plant. Can you help us with the utilization level of the plant and how do you plan to ramp it up further over the coming quarters?
Kuldip Singh Rathee
See, the good part is, Ronak, that we have invested — we are pleased we keep on investing and we, as you know the present status is INR470 crores. So the utilization percentage is similar, about 45% to between 45% and 50%. But now the capacities are further ahead and we expect that the coming years growth shall be very much taken care of from there as well as the plant — new plant in the South in Bengaluru, which is our 18th plant.
Ronak Mehta
Okay. So is it fair to assume that the asset turn for the plant on the — even on the new investment will be about 2×2 2x to 2.5 times?
Kuldip Singh Rathee
It’s not 2.5x. We operate in 2x always we operate in 2x and we definitely intend to achieve that. And with our lead manufacturing, we always aim for that.
Ronak Mehta
All right. The second question is on the new Bengaluru plant. So have you started supplying alloy wheels? Can you just indicate who all are the customers or how do you plan to ramp it up of any new order wins with respect to alloy wheels?
Kuldip Singh Rathee
So the commercial production has started. Some items of the existing product lines, which we had — were already supplying, they have started billing, but the new product lines are getting the QAV done. You remember in also it had taken some time, 1/4 at least we had taken. So that QAV is going on. We expect that all QAV to finish by March in this quarter, next two months. And from the next financial year, it should come on a good stream level.
Ronak Mehta
Okay. And any new order wins on the alloy wheels business because you indicated last-time that you were in negotiation with customers and customers were doing trial run. So any update on that?
Kuldip Singh Rathee
I definitely said because it’s a safety item, the testing go on quite long. We are into the business of safety and we have enough patience and that takes little time. But — and we hope that some news should come by end of Q1 or sometimes in Q2.
Ronak Mehta
All right. Okay. Okay. Thank you so much. Yes.
Operator
Thank you. The next question is from the line of Basudeb Banerjee from CLSA. Please go-ahead.
Basudeb Banerjee
[Technical Issues]
Operator
Sorry to interrupt Mr. Basudeb. I would request you to please use your handset.
Basudeb Banerjee
Yeah, am I audible?
Operator
Yes, sir. Please continue.
Basudeb Banerjee
Yeah, couple of questions. One, Honda announced making their new EVs. So what kind of in the that we’re getting from all the for coming months — coming quarters as such?
Kuldip Singh Rathee
Mr. Basu, their plans are not very aggressive and the whole year plan for next year, they have taken only around 18,000 — around 18,000. That’s yearly plan.
Unidentified Speaker
One more model is also coming.
Kuldip Singh Rathee
One more model is also coming, they’ll launch it in, I think around Q2.
Basudeb Banerjee
So you mean 1,500 per month from these two models, that’s what they are aiming at?
Kuldip Singh Rathee
The first model. First model. Second model will give the different projections, you know that when they give it, we’ll let you know.
Basudeb Banerjee
Sure. Sure. And the second, sir now as overall European situation is not that great and your export outlook also corrected. So any new major orders or some progress you are making in this expanding there from scratch, you have scope for expanding your exports outlook. If you recall, yeah, we are aiming at INR300 crores exports revenue for FY ’27 to these challenging times definitely are acting as a hurdle for one should look at it.
Kuldip Singh Rathee
And you are right, Mr. Basu, the things are not very rosy in the European sector. And on this particularly in-spite of such good results, you know, we would like to tell the investors that our exports may not grow this particular year because the customers — very prominent customers, they are first consuming the vast inventories in the pipeline, you know. However, and not to be getting totally disappointed, our Q4 is trying to be getting better than the Q3 and Q2 in exports. So maybe once they correct the inventories and better orders start. Second thing is we had also mentioned for the next year that we have got an export order of INR100 crores for Ford motor but through active then — but that is under testing. We have already given the centers and once the approvals come, and then that will start hopefully in the beginning of the next financial year.
Basudeb Banerjee
So right, Manit, so in our press release regarding aftermarket plans with the tie-up with where it was mentioned. So any specific strategy, timeline, revenue potential you were aiming at?
Kuldip Singh Rathee
Yeah. So as I just told Mr. Basu that there was a very huge response in our exhibition in the Expo in January and we’ll be — we are in the process of making further dealers all over the country and we’ll be launching in the Q1 as was initially decided. And I hope the only thing we are trying to do is we are trying to breakeven in the first year. And if we do that, I think that should be a good achievement.
Basudeb Banerjee
Last thing, sir, if I missed out basically for a South Indian two-wheeler OEM trials were running for your new alloy wheel. So how is it completely done and commercial production has started or still the results are yet to be there?
Kuldip Singh Rathee
Mr. Basu, since it is a safety item, the trials go on in various and they take — they are time-consuming. So I think we hope to receive the results by Q1 end or maybe early Q2 and then only the supplies will start.
Basudeb Banerjee
And as you said in one question in the call earlier that you have already commenced production who can sir.
Kuldip Singh Rathee
That’s a — that plant is the complete ALPS plant. So it is not confined to alloy wheel. It is — we can make anything and for any customer there. So the machines are like that and there is a fungible line and we can — we are making various other products as a start, you know. And then we are — because we have gone to the South, now we are getting some new orders also from various customers in the South because we have reached — initially we had exhausted our complete capacities in South, but now the customers have reposed confidence that we have come near to them.
Operator
Ladies and gentlemen, we have lost the connection of the current participant. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question.
The next question is from the line of Kuber Chauhan from Anand Rathi. Please go-ahead.
Kuber Chauhan
Yeah. Thank you for taking my question, and congratulations on good set of numbers. Most of my questions have been answered, but I wanted to know about your mix of how much the contribution was from EV and how much was it from IC for this particular quarter?
Kuldip Singh Rathee
Pricing we have not yet launched as I just. ICE okay. So the ICE contribution is 76% in our business and the EV contribution is about 5%.
Kuber Chauhan
And have we seen the trend moving on this — or we saw dip in this particular quarter?
Kuldip Singh Rathee
No way it’s moving as per the plans as per the production of the people, yes, one of the largest manufacturers, you know his production levels went little down, otherwise we were expecting even better performance in the EV, you know.
Kuber Chauhan
Okay. Thank you.
Operator
Thank you. The next question is from the line of Naveen Kumar Dubey from Narnolia Financial Services Limited. Please go-ahead.
Naveen Dubey
Thank you for the opportunity and congratulations on a very strong set of numbers, sir. I have couple of questions. First one is related to your aluminum lighting product segment. So I want to understand what kind of potential market size this segment could have?
Kuldip Singh Rathee
See, we have always said Mr. Naveen that the continuous focus in the motor vehicles industry whether it is passenger car, whether it is two-wheelers, that’s on light-weighting. So I think the best material for lightweighting is aluminum. So we call it our sunrise sector and we see huge potential in the sunrise sector domestically as well as in exports. And second thing is the more-and-more electronics coming in all the vehicles. So in electronics, aluminum being the very good conductor and there is a very — it’s the best material for thermal dissipation and there also it fits very well. So I’m doing these because of these two qualities, we see very huge growth in this. And as you must be noticing that in nine months, we have grown 25% in this sector?
Naveen Dubey
Yeah. Yes, sir. Sir, related to same, I think earlier it was more of an import substitute product. So any figure or any data-related to that as what could be that import percentage that aluminum product is imported in India. Any ballpark figure?
Kuldip Singh Rathee
No, no, aluminum is not getting imported. In fact, so many manufacturers for the last 30 years who are manufacturing here in nearby into our plants and they are approved by the OEMs like Maruti, Suzuki, Hero and Honda and we have to buy from them. So this is never — yes, they do import the scrap. So that data we don’t — neither we have or we — we feel the need to have.
Naveen Dubey
Okay, okay, sir. A couple of questions related to — sir, any customer addition in the recent past in the last one, two months, is there any new customer getting added in your portfolio?
Kuldip Singh Rathee
One customer added for export, but the — that’s — we got the orders, but the supplies as per schedule have to start in the Q3 of next financial year.
Naveen Dubey
Okay, Q3 of next financial year. Okay. Because we had kind of INR75 crores of order book for exports. I think earlier we had some.
Kuldip Singh Rathee
Yes. We still — we are still maintaining that we have that, that is already there. So that we are not.
Naveen Dubey
Okay, okay. Thank you, sir. If I have more question, I will come back to the queue. Thank you.
Kuldip Singh Rathee
Sure. Sure.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Pradyumna Choudhary from JM Financial Family Office. Please go-ahead.
Pradyumna Choudhary
You’re sir. Hi, sir. Congratulations on a good set of numbers. My first question was on the aluminum lightweighting solutions vertical. So I just wanted to get a better sense of what the growth triggers are. One would be related to the light weighting happening on the EV side, but are we witnessing a more-and-more aluminum being used even on the IC vehicles? Like if you can just explain the growth triggers here?
Kuldip Singh Rathee
Yes, even in the new vehicles, they are trying to make it lighter, so the more-and-more aluminum is certainly.
Unidentified Speaker
And also the use of electronics is also increasing. So a lot of ECUs are all using aluminum as the preferred metal.
Pradyumna Choudhary
And so like just from a indicator is just for a better understanding, would it be possible for you to quantify how much aluminum content has increased in new IC vehicles versus older vehicles? And how much would be the increase in case of EVs.
Kuldip Singh Rathee
This will be…
Unidentified Speaker
Content is very — this is very at the moment. And plus what we do is we keep on adding new products with our existing customers. So we are increasing our content and that’s our continuous endeavor to increase our business even with our existing customers.
Pradyumna Choudhary
Okay. Okay. And who are we taking away the market-share from? When we are adding new products?
Kuldip Singh Rathee
No, we don’t inquire from the customer. Customer is in some requirement then we do supply. That’s what we do.
Pradyumna Choudhary
Okay, okay. And so on the aluminum lightweighting side, we can — your sense is over the next two, three years, we can continue growing that 25% 30% kind of number.
Kuldip Singh Rathee
We have a good growth. That’s why that’s how as I said, that last 30 years, we have outgrown the industry and we have grown in mid-teens. That’s a record of not one day, but 30 years, you know. And this year — now this year also, luckily we are doing that. So, I always say that we will keep on growing in mid-teens.
Pradyumna Choudhary
All right. All right. And lastly, if you can just quantify the revenue from non-two-wheeler segments like passenger vehicle and commerce. Like what’s the percentage of revenue? I know it would be very small. Just wanted to get some sense from passenger vehicles and function.
Kuldip Singh Rathee
So it’s actually very small. And we just do 4% of the export which is in that two-wheeler is not there and maybe 3% miscellaneous 7% and 7%.
Pradyumna Choudhary
Okay. Okay. Thank you and all the best.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question a reminder to all the participants that you may press star and 1 to ask a question. Ladies and gentlemen, you may press star and one to ask a question. The next follow-up question is from the line of Pradyumna Choudhary from JM Financial Family Office. Please go-ahead.
Pradyumna Choudhary
Thank you. Thank you. So just another question, sir. So apart from aluminum lightweight, for the other two verticals, advanced braking system and safety control cables, we expect to grow in-line largely with industry or even there, there are additional growth triggers?
Kuldip Singh Rathee
So it breaks, we have always said that we are number-one in the country with a maturity share of business for the last 20 years. So we have to grow by almost in the line of the industry, except sometimes aftermarket grows in double-digits. So that’s in our hands. But otherwise we grow with the growth of the industry. And regarding the other verticals, they said other two verticals, there is definitely a very good scope.
Pradyumna Choudhary
Okay. Okay. Thank you.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants that you may press star and one to ask a question. The next follow-up question is from the line of Naveen Kumar Dubey from Narnolia Financial Services Limited. Please go-ahead.
Naveen Dubey
Yes. Sir, what could be the capex for future, maybe next two, three, four years, if you can help with that?
Kuldip Singh Rathee
No, Mr, Naveen, now the capex that we have made, as I said, we have invested INR600 crores and this will see us through for the next 18 months. However, whenever a new opportunity comes, we don’t feel stingy on not putting the excess capex. Whenever we see the opportunity, we grab and we don’t find doing more capex because whatever cash, strong cash we are generating, we always put it back-in the — our new expansion and that’s how we keep on growing.
Naveen Dubey
Okay. So maybe some INR150 crores INR200 crores of capex.
Kuldip Singh Rathee
I can’t say the new opportunities keep on coming. So we don’t shy away from investing. But only thing is we are very, very judicious in investing. And I’m happy to share that last year we closed at a debt-equity of 0.42 and in-spite of such heavy investment, we’ll be most likely closing at a debt-equity of 0.38. And next year — further next year, our target is 0.3%.
Naveen Dubey
That’s great. So give me one more.
Kuldip Singh Rathee
We are very cautious in spending, but when the need and the opportunity arises, we just don’t hesitate. We immediately spend it.
Naveen Dubey
Okay. Okay, okay. Sir, one more question related to the Bangalore plant, which is just started. I think what kind of cost increases can we see over the next two, 3/4 because it will be in the initial phase?
Kuldip Singh Rathee
No, well, we have plans to breakeven in the Q4 of next year, I think that will be pretty fast if we are able to manage that. And we are confident that we should do that.
Naveen Dubey
Sure. That’s it from my side, sir. Thank you. Thank you so much, sir.
Operator
Thank you.
Kuldip Singh Rathee
Thank you and all so much.
Operator
Ladies and gentlemen, we will take this as the last question. I would now like to hand the conference over to Mr. Kuldeep Singh Rathee from ASK Automotive Limited for closing comments.
Kuldip Singh Rathee
Thank you very much, everyone. It has been a pleasure talking to you and let me assure you that we remain optimist. We remain confident that we’ll be performing and adding value to our stakeholders. Thank you very much for your patience and see you and talk to you after — in the next quarter. Thank you.
Operator
On behalf of ASK Automotive Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.