Fiem Industries Ltd (NSE: FIEMIND) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
J. K. Jain — Chairman & Managing Director
Arvind K Chauhan — Company Secretary Compliance Officer
O P Gupta — Chief Financial Officer
Vineet Sahni — Chief Executive Officer & Director
Rajesh Sharma — Director
Sahil Sanghvi — Investor Relations
Analysts:
Unidentified Participant
Viraj — Analyst
Garvit Goyal — Analyst
Karan — Analyst
Prashant Kothari — Analyst
Vijay Kumar Pandey — Analyst
Khush Nahar — Analyst
Jatin Chawla — Analyst
Saurabh — Analyst
Dhaval Shah — Analyst
Presentation:
operator
Sa sa sat.
operator
Foreign.
operator
Ladies and gentlemen, good day and welcome to FYME Industries Limited Q4FY25 earnings conference call hosted by Monarch Net Worth 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 conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as of the date of this call.
These statements are not guarantee of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Sahil Sanghvi. Thank you. And over to you sir.
Sahil Sanghvi — Investor Relations
Thank you. Amarad. Good evening everyone. On behalf of Munark Network Capital, I welcome you all to the Q4 and FY25 conference call of VM Industries Limited. We will start the call with the initial comments about the results and the future outlook of the company. And then we’ll open the floor for question and answers. Now I’ll hand over the call to Mr. J.K. jain, chairman and MD of the company. Over to you Jain sir.
J. K. Jain — Chairman & Managing Director
Thank you. Good afternoon and welcome to the Q4FY25 earning call of PM Industries. Joining me on today’s call are Rahul Jain, Joint Managing Director Rajesh Sharma, Joint Managing Director Vinit San, CEO and Director Arvind Chauhan, 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 trust you must have reviewed the same. I am pleased to share that the company has started a new innovation and R and D center at Gurgaon. This facility will include consolidation of mechanical, optical and electronics along with CAE capabilities.
In addition we are also setting up a state of art EMCE EMI Electronic Validation Laboratory which will be the first of its kind in the Indian lighting industries for integration approach and speedy development of the new product in electronics. And we are setting up prototyping facilities, SMT and assembly line. This corporate office include the top management is also at the same location to support the integration and the consolidation process. I expect this strategic move will enhance our efficiency and our capability to serve our customers better. Now let me turn to the industry’s performance. FY25 has put up India’s two wheeler market back into the high gear.
The industry’s volume for the year grew about 11% but FIAM was able to outperform with 20% growth. On operational front we have posted another record performance for the Q4 and the year ending FY25. Our revenue have grown up strongly to rupees 24, 22 crores and we have able to deliver all time high PAT of 204 crores for this FY25. Our new product development pipeline remains very strong. Design center in India, Italy and Japan have shortened the development timeline allowing us to roll out new projects faster. This quarter Honda Activa EV was launched where FIAM is single source for rear combination lamp, front position lamp, license lamp and mirror Yama rollout.
New models Tracer 700 and Nova Factor fitted with FIAM headlights and position lights for the European and Brazilian market and the Royal Enfield Classic 350 facelift model. We started supplying full lighting solutions for Hero Motors. We have started supplying headlight for its new Extreme 250 model TVS IQ model where we supply headlamp, tail lamp and mirror. Continues to take leadership position in EV market. We also supplied full lighting solution to TVS for their new model Apache 4G. All these new models launched are LED based and these demonstrate our continual leadership in the market. Our four wheeler push is also gathering speed.
We are happy to inform the commencement of the production of our first product LED license plate to Mahindra in Mahindra. This product is now approved for all models. We have also received confirmation of development of three new projects for their highest selling model Bolero which includes development of the high mounted stop lamp. Our earlier order of the headlamp and tail lamp was executed flawlessly. While we received appreciation from Mercedes Germany, we have now received another order for the headlamp for their new development car projects. As we look ahead of FY26, the outlook remains bright driven by the strong ruler demand and a favorable monsoon expectation.
Company’s board has always believed in sharing its earning with the shareholders. As the company continues to achieve new milestones and generate record profits, the board of directors have recommended highest ever dividend of 300% which represent 39% payout. These records payout in line with our ethos of sharing values with the shareholders. With this I hand over to Mr. O.K. gupta and the finance team to update on operational performance.
O P Gupta — Chief Financial Officer
Thank you sir. Good afternoon to everyone. I will present the Q4FY25 number. Compared to corresponding quarter of last year and also for full year ending March 25, the company has registered quarterly sales of rupees 633.8 crore in Q4 of FY25 as compared to rupees 554.7 crore over same quarter last year registering a growth of 14.26% for the full year we have achieved Net Sales of Rupees 2404.96 crore as compared to Rupees 2014.37 crore representing a growth of 19.39% as a percentage of total automotive lighting, the LED lighting stands at 59.3% in FY25 as compared to 52% during last year.
The EBITDA in Q4 was rupees 83.81 crore translating into an EBITDA margin of 13.22% as compared to rupees 75.46 crore over same quarter last year. EBITDA for full year FY25 stood at rupees 320.73 crore as compared to rupees 267.97 crore last year. This translates into an EBITDA margin of 13.34% for the full year FY25. The pet of the company has also increased to rupees 57.69 crore in as compared to rupees 47.19 crore in Q4. FY24 representing an increase of 22.25% for the full year pat of the company stood at rupees 204.14 crore as compared to rupees 165.84 crore during FY24 which is higher by 23.4.
The company has made a capex of rupees 138.28 crore during the year. During the quarter there has been an exceptional income of rupees 3.75 crore. This is on account of favorable arbitration order relating to an old fire incident of 2018. With this I end the financial brief and now the floor is open for question and answers. Thank you.
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 Shar and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press shar and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assigns. The first question is from the line of Viraj from Simple. Please go ahead.
Viraj
Hello Hello. Thank you for the opportunity and congratulations on good set of numbers in such a challenging environment. First is can you just give a breakup of I think we did spend somewhere around 140 crores in capex in FY25. So can you give some breakup in terms of how much of the capex is towards capacity expansion and also in terms of between 2 Wheeler and 4 Wheeler and I think towards a new R D center which commercialized. So can you just give a brief, brief breakup of capex for 25 and what are the capex plans for FY26 and 27? That is the first question.
Arvind K Chauhan
Hi Viraj, this is Arvind. So first this breakup of last financial year 58 crore is which we incurred in the RAI plant and balances all other facilities including the R and D equipments we are left. So this is the breakup Actually about this next year capex plan I would request please. Yeah the go forward capex for the next three years is approximately 200 crores and that doesn’t include the four wheeler capex that might happen which also is a significant figure. But outside of four wheeler our capex plan should be around 200 crore over three years.
Viraj
Okay, thank you. So second question is see if you see in last one or two years we have seen a good amount of shift, a very fast shift towards LED lighting versus convention and you know as you also said in the past it carries more than 2 1/2 to 3x at least in terms of realization increase versus a conventional. And also if you look at our own communication earlier was that if we were to see a hundred percent LED penetration in our mix, you know then we would be able to cater to close to 2800 crores kind of a revenue scale for the lighting business.
So question is then you know considering the benefit of higher realization and operating leverage one would think that margins should have further expanded for us operating margins but that is not the case. So can you just give some color where are we seeing this higher spend? Is it more towards PV R and D? You know so can you just give more color?
Arvind K Chauhan
Yeah. So a couple of points there. First is that for the LED our EBITDA margins are broadly the same. They are not different as far as LED component is concerned the other but there is operating leverage that kicks in with higher revenues for sure. But also you must appreciate that we are making a lot of investments. I think we talked about our EMC EMI lab, we talked about electronic facilities. We are also talking about significant investments that we are making on the four wheeler side in terms of management in terms of other operating expenses. So taking all of that into account our margins are still on a positive trajectory but we do not Expect this to be materially higher over the next couple of years because we continue to make investment for growth.
Viraj
Can you just give some perspective what kind of investment in P and L we have been making, what kind of bench strength we have had either for PV or. Because the benefits of this we will only see after you know, two, three years hence. So any perspective we can give, you know what kind of investment in PNL and bench tech we are adding.
Arvind K Chauhan
So what we could do is we could talk about the four wheeler business separately in terms of what we are doing there. But other than that, everything. Like for example we spoke about our new facility, what we are setting up with the new head office, the innovation center, all of it are fairly integrated with our overall plan. So it’s not going to be possible to pick one out and say this has resulted into this. But there is significant enhancement of capabilities that is happening because of the technology intensive nature of the industry. Now on the four wheeler side, maybe Vinit can add in terms of what all we’ve done already.
Vineet Sahni
Yeah, hi, this is Vineet. See on the four wheeler we have added resources for design as our RFQ content is increasing. We’ll be talking about it later. So we need to serve our customer. So we have added resources in our Pune design center also we are adding resources in our Japan design center and European design center also. So as an organization we are strengthening our technical strength and that is to support our customer and future projects.
Viraj
As of today what will be team size for the pv? Just indicatively.
Vineet Sahni
Yeah we will keep this confidential. We are growing but I would not like to diverge numbers here.
Viraj
Okay this last question on the wallet share right across the top four customers. Can you just give that for FY25 and FY24?
Arvind K Chauhan
Yeah. Hi Viraj, this is Arvind. See now means when we give this wallet share we are working with the customers and there are so many SKUs as of now. So what we are giving here about the this overall total market share is around 33% and specific about the product it is not possible to give. So this is the data which we can share as well.
Viraj
I was talking about the tough product wise which we used to share earlier.
Arvind K Chauhan
No, no, that’s what I’m saying. This customer pie chart you can see in the presentation but not possible to share because there are so many SKUs and data fetching from the customers. So as of now this is not possible to share.
Viraj
Can do it? Sure. I’ll come back in queue. Thank you for answering all the questions.
Arvind K Chauhan
Thank You.
operator
Thank you. The next question is from the line of CA Garvit Goyal from Invest Analytics Advisory llp. Please go ahead.
Garvit Goyal
Hello, I’m audible. Hello, I’m audible.
Arvind K Chauhan
Yeah.
Garvit Goyal
Yes, yes please Mr. Garba, for a good set of numbers my first question is like are exposure to two wheeler EV segment and your client base including major OEMs like TVS. Have you observed any signs of order moderation or slower inventory optics from EV customers in light of recent supply chain concerns such as China’s export carbon, rare earth magnets and and if yes, can you quantify the impact in the terms of overall sales percentage for the quarter?
Rajesh Sharma
See I’m Rajesh here. So as of now whatever communication about the rear third minerals, whatever is being highlighted from the Chinese government and Indian government, the impacted EV market is not much because as of now the overall share is of 5% only. And about LEDs and other products, electronic products, there is no impact as of now because of other than China all other countries are also into the same business. So there is no much of impact because of these rare earth chemicals.
Garvit Goyal
So is it like are we CM is not going to be impacted because our percentage sale is low or the entire EV industry will manage this thing is what you’re trying to.
Rajesh Sharma
As of now entire EV market is struggling. It is only 5 to 6% only. So there is not much of impact is as of now soon in the market.
Garvit Goyal
And secondly on the ola, given that the current financial strain reported by the company and which is our customer also could you elaborate on the quality of your trade receivables with them specifically like what portion of the receivable is attributable to OLA and are there any concerns regarding overdue payment or credit credit risk provisioning for these receivables?
Rajesh Sharma
Neither do we have any concerns nor can we disclose such information which is confidential with clients and we have no concerns.
Garvit Goyal
Got it. And so lastly on our performance in ABY25 which was obviously the best year for PM industry as far as top line growth is concerned, we give about 20% which is a significant outperformance for historical growth rates. Now looking at the current scenario like while rural demand is expected to come bigger due to favorable monsoon as you mentioned in opening remarks as well, what do you think about the urban demand for two wheelers? Can we grow by 20% again for FY26 as well or do you find it difficult to do that considering the higher base?
Rajesh Sharma
I think we’ve demonstrated even in a bad year and you’ve Seen the last five years there have been many negative cycles. Even in the worst years we’ve grown well driven by our very diversified both product mix as well as customer mix including our export customers. So we are not dependent on a product or a customer. So at a holistic level we continue to guide for a 15, 20% growth even in worst bad markets.
Garvit Goyal
And what percentage of revenue do we expect four wheelers to be in FY26?
Vineet Sahni
So I continue to maintain that it is premature to find revenue and to talk about revenue. Please have patience. We are working on systematically on our business plan. Very soon you will have a revenue as we discussed. So we have started getting revenue but today it is quite insignificant. But we will be growing and then we will convert it into business plan and share with the investors.
Garvit Goyal
Got it? Thank you very much and all the best for the future. Thank you.
operator
Thank you. The next question is from the line of Karan from Keynote Capitals. Please go ahead.
Karan
Thank you for the question. I firstly wanted to understand if Hero is expected to scale meaningfully for you in the near to medium term. Like is team being onboarded across only. A select models or is there a broader supplier shift? And if not, I want to understand what would drive the next leg of top line growth of 15 to 20% because you have pretty high wallet shares. Across other major OEMs.
Arvind K Chauhan
See we are really very late startup with the Hero. So as of now we have a 4 model wherein we are successfully launched our product that too recently as highlighted in our CMD SIR speech. Extreme 250 is recently we launched and it is doing good. This is again with the projector lamp which is being continued in our portfolio that is being started from Yamaha. So further on we are as of now having eight projects wherein front and rear lighting both are there and we hope we’ll have a substantial growth in our business in near future.
Karan
Okay, understood. And secondly, what is the LED lighting contribution for foliar? FY20 size.
Arvind K Chauhan
So this LED light for foliar is 59.3%.
Karan
Okay. And so over the last few years.
Arvind K Chauhan
LED have gone significantly and I’m assuming the like CM has had a significant.
Karan
Growth in realization also. So. So I wanted to understand if there is further room for improvement in realizations now because LED is at a significant contribution.
Arvind K Chauhan
I think on the realization we explained our margin. I think in the previous sort of question as well. LED will continue to grow. As we said it’s close to 60%. It will keep growing for the next couple of years. But if you talk about At a margin level we’ll be stable. Similar kind of margins. What we are guiding to and yes, LED as a realization is higher for sure as compared to normal allergen.
Karan
Okay. And lastly are there any Updates on the GoPro type?
Arvind K Chauhan
No. So GoPro we updated last quarter as well. Go Grow is facing a lot of headwinds at the global level because of which their Indian sort of plans and venture is on hold. I think there is a new management there at the head office level. So they are reviewing, they are figuring out their financials. So as of now this is on hold and you know we will update you as we get a more detailed update with the new management.
Karan
Okay, thank you. This was also message.
operator
Thank you. The next question is from the line of Prashant Kothari from stock market. Please go ahead.
Prashant Kothari
Hello. Good evening everyone. Am I audible?
Arvind K Chauhan
Yes, yes please. If you can. A little bit louder. That will be better. Yeah.
Prashant Kothari
So I have a few questions first. Where do you envision the revenue mix in terms of two wheelers and versus four wheelers, India versus exports and lighting versus other segments by FY30?
Arvind K Chauhan
So you know the way to answer this question is we are as of now a two wheeler, predominantly two wheeler company. We made some, we made some big strides in four wheeler and it is our intent to grow it to a reasonable business out of the overall pie. If we don’t make it a reasonable business by FY30 then obviously we wouldn’t have entered it. So whether that number is 30%, 20%, 50%, I think that business plan is to be sort of rolled out over the next 12 to 18 months. So it’s too early to comment on that number.
But it is suffice to say that it will be a reasonably important business for us as we look through for the next five years. And as far as exports is concerned, Exports is already a material business for us. We continue to work very closely with customers and it comes in as indirect exports. So you may not see it on balance sheet. But that also we believe will grow to a meaningful business. It’s already a large business. It will continue to drive. Was there anything else that you asked?
Prashant Kothari
Lighting versus other segments?
Arvind K Chauhan
No. Lighting is our core business. So lighting will continue to be our core business. Others will always be ancillary.
Prashant Kothari
Okay, two questions on that. First, is there any broader diversification strategy in place to reduce the two wheeler dependency over the coming years?
Arvind K Chauhan
I think no better than what we’ve already done which is four wheeler. And so to that extent our core competency will remain to be lighting. But within that a large segment which we had not done, which is four wheeler, we are pursuing it very aggressively.
Prashant Kothari
Okay. And on the export part, can you share any roadmap to scale this how significant it is going to grow over the next three to five years?
Arvind K Chauhan
No. So on the export front, if we look at the way the wheeler market works, and I’m talking specifically, specifically of Two Wheeler, is that it is driven by the OEMs like the Hondas, like the Suzuki’s of the world locally. Right. And then there are the Harleys of the world. So it also depends on how they plan to pursue India opportunity which is very, very big now in terms of how they are integrating with the thing.
So we are working closely with these OEMs who will work closely with their international partner and that’s how the system works. And there is a lot of inquiries right now. Our product pipeline, if you look at what we are doing with the Yamaha’s of the world, is very, very robust. So that one is something that is closely being worked on.
So I think you have Japan and Italy subsidiaries. Right. So they are also coordinating with Honda etc. Only for international revenue. There are. So that’s. They have the design team there. Yeah, in Italy and Japan we have a design team and they are coordinating based on the input from the corporate office and they will be supporting directly to all the developments wherever and at customer end if it is being required. We have a design engineer. So they are very closely working with the customer who are giving us a support to give us quick responses and faster development.
Prashant Kothari
Okay, last question. Given your strong cash generation and increasing scale, how is VM approaching the capital allocation beyond FY26?
Arvind K Chauhan
So we, we had laid out our. I mean we feel very confident about future growth. So we have laid out your CapEx plan which we articulated odd crores for our regular CapEx over the next three years and plus four wheeler could absorb another 200 odd crores over next three to four years. So that’s a large CapEx program that we are undertaking based on what market opportunities we see. So a lot of that cash will be utilized and plus we want to be ready for any other opportunities that can come by.
Prashant Kothari
Okay, thanks a lot. All the best.
operator
Thank you. The next question is from the line of Vijay Kumar Pandey from Nuvama West. Please go ahead.
Vijay Kumar Pandey
Hi. Thank you for taking my questions and congratulations for a great quarter. A couple of questions from my side. I wanted to check first on the. What is like the market share in terms of LED and halogen in the two wheeler segments.
Arvind K Chauhan
As I already informed, our LED share in our lighting is 59.3% precisely. And the rest is the conventional.
Vijay Kumar Pandey
Okay. And realization will be around 10% higher. Or what is the difference between the realization?
Arvind K Chauhan
Realizations for LED is at least 2x at least at this go beyond at.
Vijay Kumar Pandey
Least two weeks and good. Okay. Secondly, just wanted to understand on your the investment in the electronic segment. So what is this particularly regarding? Is that like any new product we are developing or like will it continue to supplement the power lightning.
Arvind K Chauhan
So as you are aware with the advent of LEDs in lighting, lot of electronics is coming. Even lighting is becoming intelligent. We are working on certain projects with intelligent lighting also which increases electronic content. And to support our customer we are investing into Emcemi laboratory which will be the state of the art laboratory and we’ll be the first one in India to have it in lighting industry. We are also investing into prototyping facility, SMT line and assembly line for quick turnaround of development projects. So. So there’s lot of work happening on electronics and electronics is becoming. We are making electronic as our strength for future.
Vijay Kumar Pandey
Okay.
J. K. Jain
There is a lot of background noise coming from somebody. If you could try and keep yourself on mute wherever some background ask.
Vijay Kumar Pandey
Okay. Okay. Thank you sir. And just last question from my side. So if you can give me a bit of idea about any new products like any new. The new motorcycles that are being launched or new scooters in which of them we are partnering or where we have we are going to see the increased sales growth that will be very helpful.
Arvind K Chauhan
There are more than 100 projects which are under pipeline right now under development. This is. This is all being developed under new technology which is being required based on Canvase software based animation. And for that we are equipped and further on we are investing EMI EMC Lab to do the faster validation and supply the products to the customer on time.
Vijay Kumar Pandey
Sir, I meant the new models that are coming in FY26 over next five or six months. So any particular idea where like which of the new models in which we are partnering with the OEMs and what can the.
Arvind K Chauhan
We cannot disclose unless until these models will not be launched. So these are customer confidential agreement between both the companies and those will be launched. Once which we launch, we will definitely be disclosed.
Vijay Kumar Pandey
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Dharmesha, an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Arvind K Chauhan
Yes, yes please.
Unidentified Participant
So we are speaking. It’s in the capex of almost 140 crore PAT of 200 crore which is quite significant for the company level. So what kind of a revenue we can generate after investing of 140 crores of capex? You are asking about the previous year capex we did. Yes, yes the previous capex. What can be revenue generation you can create in next year the hour. If you see our asset Turnover this is 2.5x coming so you can estimate. Yeah, not that I understand that part but my point after 200 crores we have received the VAT of almost 200 crore and out of that 140 crores has been the capex we have deployed.
Am I right? You are asking that in the last year we incurred 138 crore capex. So you are asking about the next year capex if you can. Little bit louder or you can clarify the question. No, once again I repeat this. We have received the PAT of 200 crores last year and we have made a capex of 138 crores. So what kind? Yes, yes. What kind of benefit we expect after making such a big investment in the next year?
Arvind K Chauhan
Yeah, so, so let’s break this down. First of all pat and you know. Capex, we keep it separate. You’re saying if you made a capex of 140 crore what’s the benefit? We see I think highlighted our asset turnover is around between two to half. So obviously we expect incremental revenues accruing around those levels and which will translate into a sort of pad. But sometimes you cannot see it linearly over one year that you put 140 crores, what is the next year turnover increase and what is the pad? These are all forward looking stuff where we think through over the three to five year plan and they give you results. So but on an overall basis our asset turnover is around 2.5 which is what it will result in over a longer term period.
Unidentified Participant
Thanks a lot.
operator
Thank you. The next question is from the line of Kushnahar from Electrum pms. Please go ahead.
Khush Nahar
Yeah. Hi sir. Thank you for the opportunity. So two questions. First if you can elaborate more on the four builder side in terms of what new business businesses have we won and the RFQs that are there and second on the new technology. So I think the last annual report mentioned products like microlens arrays and ambient lighting. So some sense on the new technological products from where we are getting RFQs in which we are developing.
Arvind K Chauhan
Yes, see we have now started as you know it was shared in CMD speech. We have now started production of one LED lamp, license plate lamp which is approved for all models. That is step one. Step two also we have shared highest selling model of Maenza Bolero. We have got three products for development and in this the content has increased. The high mounted stop lamp content is much higher. It is around seven times higher than the first product. So that will increase the content. And we are now working on rfq of around 700 crores. So we are getting very positive response from various customers.
And these RFQs some will be converted of course into revenue and therefore we. Are planning a capex as we shared. Around 200 crores in next three to four years because we might have to set up a plant for our customer once the RFQ matures. On the technology front we had shared that we were working on touch sense capacitive technology and due to our work this work got converted into rfq.
We already received RFQ of this technology from our customer and now this product is under technical study for other two technologies. NDA has been signed between customer and us and customer is initiating proof of concept pocket along with us. So if this goes forward we will be the first company to develop these technologies for our country India.
So it is moving on. And as you know technology presentation is a step by step process. So we are quite keenly attached with our customer in development of these technologies.
Khush Nahar
Right sir, thank you for the detailed answer. Sorry. Hello.
operator
Thank you. The next question is from the line of Viraj from Simple. Please go ahead.
Viraj
Yeah, just a clarification. You said we’ve got RFQ pipeline of roughly around 700 crores. That’s for the PV business alone, right?
Arvind K Chauhan
Yeah, that is correct.
Viraj
And you know somewhere earlier you talked about capital allocation where other than the CapEx of 200 crores for two wheeler and maybe the CapEx of another 200 crores for the PV. So you know, if you even kind of adjust this spend of 400 crores over a 3 to 4 year period our cash position would still be somewhat better than what we have right now. So the surplus cash, is there any thought process about deployment of this? Would we be looking for an inorganic play in lighting? You know, Any thoughts on this?
Arvind K Chauhan
Yeah. So as an organization we have to be ready for any opportunity that emerges in the market. It is always prudent to have some cash available to capitalize on those opportunities and therefore we are ready. If the opportunity is good for us, even if it means inorganic, we will go ahead for that and therefore we are ready for such opportunities.
Viraj
But when you Say inorganic, Would that largely be restricted to lighting as a segment or would we be even open to other product categories?
Arvind K Chauhan
We are open for any good opportunity for the organization. It could be lighting, it could be electronics also.
Viraj
Okay, and just last question sir. You know we are making a good amount of investment either be it in terms of P and L or capex in the electronics. Can you just give some more probably examples of how does this kind of add to our overall competitiveness either in terms of backward integration or in terms of capability.
Arvind K Chauhan
So see all these investments we are doing is basically to strengthen our technology, to strengthen our organization and our collaboration with the customer. Because the kind of products that are coming in future, it is important that our organization is future ready and therefore these investments are making these organization future ready to engage very deeply with customers for new technology orders.
Viraj
Understood. Thank you very much and wish you good luck.
operator
Thank you. The next question is from the line of Chaitan Chawla from RTL Investments. Please go ahead.
Jatin Chawla
Good evening and congratulations on a very good set of results. Just wanted to check first on a remark that you made earlier that you would expect a 15% kind of growth even if two wheeler industry volumes are flat. So is that the kind of outperformance over the market that you’re expecting? And if yes, then what are the key drivers of the same?
Arvind K Chauhan
No, we didn’t say that we will grow at 15% at flat volumes. What we said was that expect to grow at 15 to 20% over the next three to five years on a consistent basis. And we actually believe that two wheeler is on a very good growth path as well. So that’s a general guidance on our revenue that we are making 15 to 20%.
Jatin Chawla
Got it, got it. Thanks for clarifying. The LD share number that you gave is more on a revenue basis and it’s roughly at 59% this year on a volume basis. Broadly, would it be fair to say it’s somewhere around 35, 40% if I work with like 2.2.5x realization?
Arvind K Chauhan
Tough to estimate. Tough to estimate. It will be a guesswork. But at industry level the general understanding is that it is around yet 30, 35% penetration.
Jatin Chawla
Got it, got it.
Arvind K Chauhan
And this big pickup in LED penetration that we have seen this year from like 52% to 59% and you know that’s been driver for the outperformance over the two wheeler industry that we have seen this year for fam. How is the pipeline for future products looking? Is that also like heavily tilted towards LED and hence we should Expect this sort of traction on the LED penetration to continue. I think it’s 100% pipeline is led. The new project pipeline is 100%.
Jatin Chawla
Oh great, great. Last question from my side. We’ve seen Yamaha with a very strong growth this year, almost 25% growth after two years where their revenues were kind of flattish. So should we, are we expecting this sort of traction to continue? Given the kind of model pipeline visibility that we have with them, we are.
Arvind K Chauhan
Very bullish to have a similar kind of market from Yamaha that is for domestic as well as export market both.
Jatin Chawla
Got it, Got it. Great, thanks Akan.
operator
Thank you. The next question is from the line of Saurav from Multi Act. Please go ahead.
Saurabh
Yeah, thank you for the opportunity and congrats for the results. The first question was on HMSI, like sequentially we have grown by almost 20% versus if we look at the production growth it was 4,5%. So is this outperformance led by, you know, new model wins or is it that we have gained some wallet share. From our competitors or has the mix. Of LED increased within hmsi? I think this is this. Our wallet share remains broadly the same. So these are general, you know, specific model related movements over the quarter. But at overall level we are at the same moment. So are we present even in the new models, the 2025 models that HMSI has been launching, are we present with the similar wallet share?
Arvind K Chauhan
Yes, as Already highlighted in CMG sir, speech about Activa EV, this is being launched with a overall project of 71.71percent share of business in that of lighting is with us. And further on, all the models, whatever is in under development are also with us with the same piece.
Saurabh
So even in the normal Activa, that is the OBD2 compliant Active that was launched. So we would be present even in that Active as well, right?
Arvind K Chauhan
Yes, we are into both standard and active deluxe model.
Saurabh
Okay.
Arvind K Chauhan
And a couple of quarters back we had you know, one orders for Jupiter.
Saurabh
110 and now Jupiter 125 is being launched. So have we won even for those models?
Arvind K Chauhan
Yes, we are the single source for all deluxe model. And we’re in domestic domestic model there are competitor but of course the deluxe model is 100 being survivors.
Saurabh
Okay, yeah, thank you.
operator
Thank you. The next question is from the line of Kushnahar from Electrum pms. Please go ahead.
Khush Nahar
Thank you for the opportunity again. So just one question. I think one of the large E2 Wheeler customer was spending in terms of our customer.
Arvind K Chauhan
So any update on that?
Khush Nahar
Have you onboarded them as a customer.
Arvind K Chauhan
We have as of now more than 40 EV customers on our board. And we are very closely working all the model, all the customers who are whosoever is in the top 10 EV companies.
Khush Nahar
Right sir. Thank you.
operator
Thank you. The next question is from the line of Vijay Kumar Pandey from Nirvama Wealth. Please go ahead.
Vijay Kumar Pandey
Thank you sir. For a follow up just wanted to check on the RFQ of 700 crores. So what is our expectation and how much time period will this be executed and what is the like the start of the sales operation for these RFQs.
Vineet Sahni
So different products have different timeline but a bigger chunk of RFQ. The SOP is 2028 where we are working. That’s high value RFQ. And there are other RFQs where SOP is coming. Some of them are coming in this year and some are coming in next year. So it is staggered depending on the RFQ and the customer.
Vijay Kumar Pandey
Okay. And it’s a idea like how much will be in FY26 or FY27 just in terms of revenue opportunity.
Arvind K Chauhan
So we are bullish about it.
Vineet Sahni
But as I have shared always I think it is little early to talk about revenue. We are taking a step by step process and rest assured when the revenue becomes significant we will come back to you with proper business planning. But as you know we are entering and there is a lead time to developments so. But we are moving in the right direction and we are bullish about our approach to four wheeler.
Vijay Kumar Pandey
Generally the lead time is around six months, two to three years.
Vineet Sahni
Two to three years is normal development lead time in four wheeler because lot of components get developed, validation happen. That’s normal.
Vijay Kumar Pandey
Oh okay. Okay. Thank you.
Arvind K Chauhan
Thank you.
operator
Thank you. The next question is from the line of Viraj from Simple. Please go ahead.
Viraj
Yeah, just one small data point. In case of a two wheeler, you know if you compare say an Activa ICE model or something similar in case of say TV is an ICE model and compare it with an EV model what will be the content change in two wheeler for lighting? If it’s an all LED.
Arvind K Chauhan
Lighting for ICE and LED for EV is similar, there is no change. It is totally dependent on what functions, what all functions are being added into the light.
Viraj
So if I were to compare sailing and active IDs versus active ID where we are currently, what will be the content you know for lighting in ice and similarly in EV model? See in Activa EV model we have a 71% of your business in lighting. He’s asking for. Content for vehicle I. Will, yeah, I’ll see. Ev. EV will always have LED lighting. Eyes can have LED also and halogen also. Right?
Unidentified Participant
Yeah.
Vineet Sahni
So if your question is what is the difference between halogen and led? You can answer it.
Unidentified Participant
No, I was just trying to understand say an LED and ICE active or variant what would be the content for us currently and say if I have to stay in active or EV model, what will be the content? It is absolute value.
Vineet Sahni
Rajesh is just telling you that first.
Arvind K Chauhan
Of all Activa, I have a two model. One is of standard model which is having conventional lamp and deluxe is having LED headlamp. In difference of that is one is to two or one is to three. It is totally be depend on the functions.
Unidentified Speaker
And then there is the.
Arvind K Chauhan
Then there is the ev. So EV is of course as Vineet has already. It is the same wherein EV90, 99.9 is 100 LED lamps.
Arvind K Chauhan
And the price will and price is the same as.
Unidentified Speaker
As the model ICE LED model.
Arvind K Chauhan
Yeah.
Unidentified Participant
So what will be the price or the per unit vehicle? Per unit. Well, realization for vehicle say in an active LED model.
Unidentified Speaker
So I think you know we can give you a range. It won’t be fair to give a price.
Unidentified Participant
Yeah, minimum.
Unidentified Speaker
It could range anywhere from 2x to 4x and it keep can go up further from a at a premium level. But minimum 2x for a LED.
Unidentified Participant
Sure. Thank you very much.
operator
Thank you. Ladies and gentlemen, before we take the next question, we would like to remind that you may press char n1 to ask a question. The next question is from the line of Rohan advance from Pratt Capital. Please go ahead.
Unidentified Participant
Yeah.
Arvind K Chauhan
Sir, thanks for the opportunity and congratulations for a good quarter and a good FY25. Sir, again on HMSI I just wanted to clarify on Honda Activa, if you could help us understand that in the ICE activa, the non EV Activa 110 and 125, are we present in both headlamp and tail lamp and are we present in both halogen and LED models?
Arvind K Chauhan
Yes, we are present in both conventional LED model and having our share of business similar. Whatever we were having, our wallets are earlier.
Arvind K Chauhan
Okay.
Arvind K Chauhan
There are two additional other supplier also in this model.
Arvind K Chauhan
Okay. Okay. But we have not lost our share or reduced our share at all.
Arvind K Chauhan
No, we have a same wallet share as we were delivering in past.
Arvind K Chauhan
Okay.
Unidentified Participant
Okay.
Arvind K Chauhan
So sir, against the Q4 base of HMSI, whatever is the growth in HMSI, CM’s growth will match that or better that in the coming quarters.
Unidentified Participant
Would that be a fair understanding?
Arvind K Chauhan
Yes, we are thinking the same and we are bullish about the overall numbers.
Arvind K Chauhan
Okay. Thank you, sir. And all the best.
operator
Okay, thank you. The next question is from the line of anime from Invest Analyticals Advisory llc.
J. K. Jain
Hello. Can you hear me? Yes.
Arvind K Chauhan
I think there is a backward noise.
J. K. Jain
Just a minute, sir. Sorry. Is it better now?
Arvind K Chauhan
Yes. Yes.
J. K. Jain
Yeah. See I just wanted to have a follow up on the previous person question. See, I think he wanted to know what is the percentage of the value of product delivered by you either as an LED or a IC vehicle. Say for Honda. Right. Activa model, say the cost is 40%. Sorry, 40,000. What would be the percentage of LED components that you supply? I think that’s what he wanted to know.
Arvind K Chauhan
We already answered to him. If you have any specific explanation, please ask.
J. K. Jain
No, no. I. Okay. Maybe you can read this as my question. Assume that the cost of Honda activa is a 40,000 rupees INR. Right. What would be the percentage component of VM delivered products in that Honda? On the Delhi d side?
Arvind K Chauhan
In EV, the number of sets, complete lighting is around 4000 rupees.
J. K. Jain
Okay. Okay. Okay.
Arvind K Chauhan
So that would be around. If we talk about 40,000 it is a 10%.
J. K. Jain
Okay. Okay. Got it. Got it. Okay. That’s. That’s it. That’s it. From my side. And sir, one other question. See we remember. I remember that we sometimes 3, 4/4 back we were bullish on entering into that EV side of business into Hub Motors and stuff. I don’t know. I didn’t track this information beyond that time. So are we still going ahead with that project or we have shelved that project?
Unidentified Speaker
I think we just addressed that point that was being done along with our tie up with Go Grow. And we just mentioned that Gogro globally is facing some headwinds. So that project is at this point of time on hold.
J. K. Jain
Got it. Got it. Thanks for the clarity. That’s it. Thanks.
operator
Thank you. The next question is from the line of Thawal Shah from Ford Capital. Please go ahead.
Unidentified Participant
Hello. Hello.
Arvind K Chauhan
Yes, please. Yeah, please.
Unidentified Participant
Clarification. Sir, in the cash flow statement for any yearly FY25 we see that ad hoc insurance payment received is 26 crores. While in the notes we have said that we have received 30 crores and 20 crores. So can you just bridge the gap? How it is different? No, no.
Arvind K Chauhan
I think this our ad hoc. What we received during the year is 20 crore at 1 and then 30 crore. So total is 50 crore.
Unidentified Participant
Yeah. But FY25 it is showing 26 crore only in the cash flow statement.
Arvind K Chauhan
You please recheck this is 50 crore and you can come if some bookkeeping clarification, you can come back to us.
Unidentified Participant
Sure. And sir, another question that our other expenses have increased by say around 1314 crores. So is it a normal run rate we should go assume going forward or there are kind of one of our that kind of expenditure in this quarter.
Vineet Sahni
So these are development expenditures that the company is doing for future.
Unidentified Participant
Okay.
Vineet Sahni
That is the category. So we spoke about it. We are investing in technology and development. So these are the expense related to that.
Unidentified Participant
So this should be a normalized going forward.
Vineet Sahni
So see it is the company’s call. We have to prepare for future. So sometimes it will come sometime depending on the need. So like now we have invested in electronics. Maybe next year they are less. But if there is a big change in technology, we may have to invest again. So that is a decision the management takes from time to time.
Unidentified Participant
Sure, understood. That’s all from my end. Thank you.
operator
Thank you. The next question is from the line of Anupa Mukherjee from Persian Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Arvind K Chauhan
Yes, yes please.
Unidentified Participant
I just had one question sir, few quarters back we had done some prototype development for European car OEMs. I think Mercedes or Volkswagen. So is there any follow up or an update on that?
Vineet Sahni
Yes, that’s a good question. Yes, the development was successful. Our samples, final samples have gone to the customer. They have now been fitted in D Temazzo car. The car has been showcased very recently. It was in the news and we were very happy to see our headlamps in that car. So the project has gone very successfully so far and once the customer approves everything then we will supply them the lamps that they require.
Unidentified Participant
Okay. And were we the only one or in the like prototype development or were other vendors also in consideration?
Vineet Sahni
Sorry, say again?
Unidentified Participant
What is the sorry for the prototype development? Were we the only like vendor considered or like it’s like.
Arvind K Chauhan
This.
Vineet Sahni
The the product that I am talking of D to Maso is not prototype.
Unidentified Speaker
It is a full fledged headlamp with.
Vineet Sahni
Tooling, with proper assembly line. What we are developing for Mercedes is also tooled up samples but for their prototype car which is low volume. So this is basically a stage for future developments because we are associated with a company like Mercedes so we are developing products for them for their development cars which are currently low volume. But it gives us access to their management and their development team. Therefore it, you know it results into more RFQs in future.
Unidentified Participant
Get that? So the like work we did for Volkswagen that that has like potential for like ramp up?
Vineet Sahni
No, not for Volkswagen. I need to correct you. We have done for D To Mazzo, which is a sports car and we have done for Mercedes, not for Volkswagen.
Unidentified Participant
Okay, so for this like other like oem, is there a like ramp up potential now?
Vineet Sahni
So the product that we are, you know, it’s a small product at the starting of production, but as I shared, this is now approved in all models. So first month like now we have schedule starting from 20,000amonth, which will go up to 60,000amonth. So this will go up gradually in.
Unidentified Speaker
Step by step manner.
Unidentified Participant
Thanks. That’s all from this.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Sahil Sanghvi for closing comments.
J. K. Jain
Yeah, just wanted to thank the management.
Arvind K Chauhan
The whole team for patiently and very elaborately answering, answering all the questions. And congratulations again for a very excellent performance. Also want to thank all the participants joining the call. Jain sir, would you have any closing comments? Yeah.
J. K. Jain
I would like to thank everyone for participation in today’s conference call. I hope that we have adequately addressed all your theories. If you have any further question, please don’t hesitate to contact us. Thank you and have a good evening.
operator
Thank you. On behalf of Monarch Net Worth Capital Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.