Greaves Cotton Limited (NSE:GREAVESCOT) Q3 FY23 Earnings Concall dated Feb. 09, 2023.
Corporate Participants:
Nagesh Basavanhalli — Executive Vice Chairman
Dalpat Jain — Group Chief Financial Officer
Arup Basu — Managing Director
Sanjay Behl — Chief Executive Officer and Executive Director
Analysts:
Ashutosh Tiwari — Equirus Securities — Analyst
Dhananjay Mishra — Sunidhi Securities — Analyst
Jiten Parmar — Aurum Capital — Analyst
Anand Venugopal — BMSPL Capital — Analyst
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Subrata Sarkar — Mount Intra Finance — Analyst
Aniket Mhatre — HDFC Securities — Analyst
Gaurav Gupta — Individual Investor — Analyst
Jyoti Singh — Arihant Capital Markets — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Greaves Cotton Limited Q3 FY ’23 Earnings Conference Call. From the management, with us Mr. Nagesh Basavanhalli, Executive Vice Chairman; Mr. Dalpat Jain, Group CFO; Dr. Arup Basu, Managing Director, Greaves Cotton; Mr. Sanjay Behl, CEO and Executive Director, GEMPL. [Operator Instructions]
I now hand the conference over to Mr. Nagesh Basavanhalli, MD and Group CEO of Greaves Cotton Ltd. Thank you, and over to you, sir.
Nagesh Basavanhalli — Executive Vice Chairman
Thank you. Good afternoon, everybody. Thank you for taking the time. Good evening. And welcome to the Q3 call. At the offset, as the industry and we as a company are transitioning from our metal base to — metal base engineering company to electric, electronics mechatronics type of a company, we are glad to announce that today we have signed a binding term sheet for the acquisition of Excel Controlinkage Private Limited. One of the key players in the areas of mechanical and electronic motion control systems.
The highlight of this acquisition is that it’s a very profitable business. It offers complimentary product portfolio, with several different customer and industry segments. It’s fits in with the overall Greaves strategy of transitioning to the mechatronic and electronic capabilities, is also helps us with our export and other opportunities for the future. While we get into the more details in the Q&A on this, we also would like to talk about other things that have happened in Q3. We just concluded the Auto Expo last month, where Greaves Electric Mobility showcased six new products, both in the two-wheeler and the three-wheeler
Greaves Cotton showcased the e-powertrain offering. All of these products and innovation led by our in-house design engineering teams bear testimony to our purposeful stride in terms of emerging as a stronger player in the last-mile mobility ecosystem with forward looking products and technologies. In this past quarter we also partner — Greaves Cotton also partnered with a UK based design firm Eta Green Power to bring an exclusive technology in the electric powertrain. We also in the last couple of months launched Har Gully Electric campaign for Ampere at the Auto Expo, which has received overwhelming response. We have also announced the launch of Primus product this quarter.
We’re optimistic about the sustained growth with some of these new developments. We also see that the recent budget has been very encouraging when it comes to Green growth as laid out in recent budget of 23. As India transitions towards the sustainable mobility, we continue to keep pushing a lot of new products and areas so the company is focused on both in GCL and GEM.
With that, let me hand it over to the CFO to discuss the Q3 financials. Happy to take the calls at the end. Thank you.
Dalpat Jain — Group Chief Financial Officer
Thank you, Nagesh. Good afternoon, everyone. I’m sure we would have got the financial results for quarter three of FY ’23. Just a few key highlights. If we look at the consolidated revenue of the group, we reported total revenue of INR514 crores which is 6% higher than the same quarter of previous year but lower than the sequential the Q2 and main reason being like we had — spoken about it in the previous quarter. In the electric mobility particularly for two wheelers with the new guidelines on AIS 156 was the battery.
The products were I made according to the new guidelines and by the time the production restarted, we had to recalibrate or basically — strategically halt the production during the quarter. So, that in fact impacted the primary revenue which will be made up as we go into subsequent quarters. So, if we look at the break up of consolidated revenue of INR514 crores INR365 crores came from standalone business and INR142 crores was the consolidated revenue of electric mobility.
The good news is, as I was mentioning, with the production restarting in January — in the month of January itself, company has done in the electric mobility the same revenue that we did in the entire quarter of Q3. Company dispatched more than 14,500 or close to 14,500 vehicles in the month of January itself. The secondary volume continue to remain strong in the quarter three and as we go forward overall, with the new launches that are planned, we expect strong momentum in our e-mobility volumes and revenue.
Overall at EBITDA level, if we look at the core business the margins continue to improve, the commodity cycle is helping with the overall prices coming down, the raw material cost for standalone business was lesser — less than 70% and EBITDA margins have moved back to double digit. We’re happy to report 10.7% EBITDA margin as standalone lever during the quarter.
In the electric mobility business, because of lower revenue and fixed cost, which are already built for the higher volume and business, we had a loss at PBT level. The expenses also included a onetime cost of INR8 crores for a particular share based payment done during the quarter. So overall, at electric mobility level, we had a normalized PBT of — negative PBT of INR28 crores at a consolidated level positive EBITDA of around INR10 crores on recurring basis and standalone EBITDA was INR39 crores, which is 10.7%.
Company’s balance sheet continues to remain strong, we are a total cash and cash equivalents of INR1,171 crores at the consolidated level. And with the binding term sheet that has got signed for acquisition of 100% stake in Excel Controlinkage in four tranches, we will be using some part of our internal accruals and free cash, positive thing is the target company’s highly profitable with normalized EBITDA margins for more than 28% and with a significant scope for growth in the push-pull cables segments where they operate.
With that, I will be happy to take questions. Maybe Aman, you can open up the floor for questions, please.
Questions and Answers:
Operator
Sure, sir. Thank you very much. [Operator Instructions] First question is from the line of Ashutosh Tiwari from Equirus Securities. Please go ahead.
Ashutosh Tiwari — Equirus Securities — Analyst
Yeah, hi. Firstly on this Excel Controlinkage acquisition, can throw more light in terms of where we — basically it gives us energy when needed, and which kind of customers we can target with this? Is it a very popular that we have seen in BPT, but where are the rates and all kind of business?
Nagesh Basavanhalli — Executive Vice Chairman
I will start and maybe Dr. Basu can add. So, clearly they are in the business of push-pull cables. They are in the area of levers, steering and transmission systems, electronic toggle, levers, pedals, right? They are in the higher margin segments, which include the — basically the commercial vehicles, construction equipment, marines, SPV, etc. probably 30% of their business comes from international, 70% is from domestic. Obviously, they are dealing with most of the auto majors in the country.
I’m talking about the — from a commercial vehicle standpoint, maybe with the exception of one MNC. So there is obviously B2B synergies, there is supply chain synergies, it’s incremental product because also looking forward, there’ll be a lot of work in the areas of sensors and the sensors, which will go into both traditional engines, as well as electric vehicles. So when you look at that it’s — the product portfolio is vast, industry segments that they operate is quite immense. And then the opportunity to have headroom is quite significant.
Ashutosh Tiwari — Equirus Securities — Analyst
And they make their own sensors, or how it is?
Arup Basu — Managing Director
Yeah, so this is a Arup Basu. So as Nagesh said, there is a common set of customers in terms of the segments that we both play in, in terms of auto, industrial, agri, marine and so on. The sensors are the electronic version of the motion control, you have push-pull cable, rods and electronic sensors. These are the three large types. And while the majority of their product portfolio is in the cable construct, there is work already underway to move to sensors.
And that’s another point of synergies, because sensors — this is one application of sensors in terms of motion control. It’s applied to a very large segment of applications including any prime mover requisite. Thank you.
Ashutosh Tiwari — Equirus Securities — Analyst
And if you look at a PBT, I mean, the company has grown very fast over the last three years, INR100 crores to INR167 crores. So why, I mean, why promoters bidding to sell? That’s one thing. And second, like, what drove this growth stronger over last three years, and how do you see the scale up of this?
Nagesh Basavanhalli — Executive Vice Chairman
Yeah. So, I’ll take the first couple of questions, Ashutosh. The promoters, obviously, it’s — it was part of their planned, except they’re been in the system for a while. There was a succession planning issue and they wanted a bigger, stronger group to come in and take over and the business. So it was part of their planned exit strategy. That’s the point number one. In terms of the growth, you’re right, if you look at the last three years CAGR, it’s roughly about 22%. And they have put in the investments, I believe back in capex investments back in 2219, which really puts them in good state that kind of gets them ready for the next couple of years, right.
They have deep relationships with OEMs. They get engaged very early on in the process. And this has been built this business has been built over decades and focus on that. And in terms of cost ownership, profitability, very strong focuses on that. So a lot of cultural alignment, sectoral diversification, geography diversification, right. And obviously, they have five small plants in and around the Nagpur area. And hence, that was the rationale behind it. And mainly growth has been from export segment as well as the overall recovery in the auto that we have seen and that has also led to the fast growth of their — and their products are mainly proprietary technology, so to that extent, once they have gone into the OEMs design overall, that continues to remain as the only product available as option they have.
Ashutosh Tiwari — Equirus Securities — Analyst
Okay. And secondly, on this EV side, while the primary sale is very strong in January, is it also reflecting the secondary sales that we’re seeing now that also is going on similar lines?
Dalpat Jain — Group Chief Financial Officer
Directionally, the secondary Sanjay, you want to take it off, Sanjay?
Sanjay Behl — Chief Executive Officer and Executive Director
Yeah. I will handle that. So thank you, I think there was a time it was very, very strong, obviously, at the numbers as Dalpat said, have been already crossed the entire quarter. If every sale is picking up the first fortnight of January, given the North’s vicious period, as you know, most parts of the country was a little lukewarm, but we’ve seen very good response in the last two weeks of January.
So currently we are trending at almost the highs of activity kind of highs in the last about three to four weeks. So last fortnight of January is very good, first fortnight of February, again, a little modest but picking up now. And we are very hopeful that our secondaries are going to be better than the last — significantly better than the last quarter. Yeah.
Ashutosh Tiwari — Equirus Securities — Analyst
And how this is going to transition fully after that, then how will that impact the cost in terms of cost, how much cost is required to pass in this whole year?
Sanjay Behl — Chief Executive Officer and Executive Director
So we’ve already absorbed the cost most of the costs have already been involved in a phase one. It ranges from player-to-player anywhere between INR2,500 to INR3,000, which is bad. But more importantly, the transition has happened successfully for all the products until. And whether it’s Magnus EX or Zeal EX or Zeal PA [Phonetic] the three products on the road today, all of them are fully compliant with arrears 156 and fully compliant on team norms. So they are all compliant and there is a marginal cost which has already been absorbed in the product.
Operator
Thank you, Mr. Tiwari, requested to join the queue for any follow-up. [Operator Instructions] Thank you. The next question is from the line of the Dhananjay Mishra from Sunidhi Securities. Please go ahead.
Dhananjay Mishra — Sunidhi Securities — Analyst
So just the extension of last question when we will be implementing the phase two of the battery standard, so again, our primary skill will be impacted or maybe an up drill?
Sanjay Behl — Chief Executive Officer and Executive Director
Just to add on to the last one, also part of the cost is also getting neutralized by the price increase that we have taken across our portfolio just you know, finish that. So I think that part is there. Coming to your AIS Phase two question, we are currently in a preparation mode already for our transition to Phase two. The cutoff is 31st of March. So we are getting ready for almost all the product lines that we have to transition seamlessly without any hiccup in primary and secondary sales that’s the current readiness that we are working towards. So we don’t anticipate any major disruption at this point of time.
Dhananjay Mishra — Sunidhi Securities — Analyst
Okay. So 10,000 monthly sales can be assumed for the subsequent month?
Sanjay Behl — Chief Executive Officer and Executive Director
Yeah. It’s hypothetical speculative thing, we won’t say that. But yes, in the current — this thing is that, we should have a seamless transition from AIS Phase one to Phase two.
Dhananjay Mishra — Sunidhi Securities — Analyst
And secondly, in terms of subsidy release, where we are placed — I mean, anything we are hearing from government when they’re going to release subsidy?
Sanjay Behl — Chief Executive Officer and Executive Director
So we’re working with the government. I think we have given all the requirements that the government authorities have asked from us and we are working actively with the government to get it released.
Dhananjay Mishra — Sunidhi Securities — Analyst
Okay. And lastly, this acquisition, this EV is — enterprise value of INR385 crores we have paid, that is for the 100%,right or it is for 60%?
Nagesh Basavanhalli — Executive Vice Chairman
So Dhananjay, that’s correct. So the 100% of the enterprise value will be kept at INR385 crores. That’s the maximum value, which we can determine this is the actual EBITDA of FY 2023. And they are on the path to cross INR50 crores of EBITDA. So that’s where the final value will come out. So 60%, we will pay, if the final value comes to be INR385 crores, then we will pay INR231 crores for the 60%, which is the Tranche one. And then Tranche two, Tranche three and Tranche four will get determined at the end of FY 2024, FY 2025 and FY 2026.
Dhananjay Mishra — Sunidhi Securities — Analyst
And when do you expect this Tranche one to be completed?
Nagesh Basavanhalli — Executive Vice Chairman
The Part one closing to get completed by April. That’s what [Technical Issues]
Dhananjay Mishra — Sunidhi Securities — Analyst
Hello, Hello.
Operator
Sir, we are unable to hear you. Can you hear us?
Dhananjay Mishra — Sunidhi Securities — Analyst
Hello. Can you hear me?
Sanjay Behl — Chief Executive Officer and Executive Director
We might have loss them Dhananjay, I think there is no voice coming from others.
Operator
Mr. Mishra, request you to stay connect, while we check line for the management. Participants please stay connected while we check the connection of the management, speaker. Ladies and gentlemen, thank you for patiently waiting. We have the management line reconnected. Mr. Mishra, may I request you please repeat the question?
Nagesh Basavanhalli — Executive Vice Chairman
So Dhananjay, I heard the question on the enterprise value. So basically, that’s INR crore for 100%. So 60%,it will be maximum of INR231 crore, depending on the final EBITDA determination of FY ’23. And the remaining — the closing expected is by April 2023 for the first part of the Tranche one payment. And the second Tranche of the Part one payment will get completed by August 2023.
[Technical Issues]
Operator
Ladies and gentlemen, thank you for patiently waiting. We have the management line reconnected. Mr. Mishra, may I request you to please repeat the question.
Nagesh Basavanhalli — Executive Vice Chairman
So Dhananjay, I heard the question on the enterprise value. So basically that the 385 for 100%. So 60% it will be maximum of 231 depending on the final EBITDA determination of FY 2023. And the remaining — the closing expected is by April 2023. For the first part of the Tranche one payment. And the second Tranche of the part one payment will get completed by August 2023.
Dhananjay Mishra — Sunidhi Securities — Analyst
So FY 2024, we will have full impact of this [Indecipherable], right?
Nagesh Basavanhalli — Executive Vice Chairman
That’s correct, obviously, that we are subject to obviously, the definitive documents on the — and other regulatory approvals by — in FY 2024, we should have the full consolidation effect of the 60% stake that we will have.
Dhananjay Mishra — Sunidhi Securities — Analyst
Okay. That’s all from my side. Thank you.
Nagesh Basavanhalli — Executive Vice Chairman
Thank you, Dhananjay.
Operator
Thank you. The next question is from the line of Jiten Parmar from Aurum Capital. Please go ahead.
Jiten Parmar — Aurum Capital — Analyst
Yeah, congratulations on what seems to be a good acquisition. My question is also on three-wheelers, what is the situation there?
Nagesh Basavanhalli — Executive Vice Chairman
So basically, in terms of the overall revenue and market part of the MLR plus Bestway,
Jiten Parmar — Aurum Capital — Analyst
Yes.
Nagesh Basavanhalli — Executive Vice Chairman
Sanjay, you want to add that.
Sanjay Behl — Chief Executive Officer and Executive Director
You want me to take it. That’s fine.
Nagesh Basavanhalli — Executive Vice Chairman
Yeah.
Sanjay Behl — Chief Executive Officer and Executive Director
Okay. So we’ve been steadily improving on three-wheeler both in L3 and L5 segments that we have. Last quarter, we have actually done the highest level ever L-5 volumes, and also continue to improve our position or sustain our position have a very good quarter two that we just registered. So almost the same number we repeated despite the market, some slowdown was there in every L3 quarter three. We were able to hold our to our volumes there and grow significantly in L5.
So that would be the broad contours there. We are increasing in number of active dealers. The financing partner is also improving every month. So overall if you look at all the enablers, whether it is in terms of products, getting more accepted in the market, thee number of dealers who are engaged with us the financing partners, overall, I think, the ecosystem is coming together. We will continue to see — very confident we’ll continue to see higher growth in the coming quarters in three-wheeler.
Jiten Parmar — Aurum Capital — Analyst
Okay. And my second question is, maybe you might have answered it. Regarding the volumes for EV, which were very low in I think November and December or rather for the whole quarter. Is it because of the AIS Phase one transition or what is the reason behind that?
Sanjay Behl — Chief Executive Officer and Executive Director
Yes. In fact, it’s a quarter that you had to see it from the right perspective. I would say because in terms of secondary sales the vahan registration, it was the highest ever quarter of Greaves, which is the reason. The primary billing was low on account of what I think was already mentioned in the context and also repeated by Dalpat, which is the switchover from AIS-156 Phase one, which happened on one of December. So we had to do a transition from a pre-AIS vehicles to the post-AIS vehicles. And hence, we had to do a lot of liquidation of the pre-AIS stock. So we have to work with that as one of the transition imperatives during the quarter for which the billing was lower.
But in terms of secondary sales, if you see the — it was one of the highest quarters and even in vahan registration, you would have seen we crossed 27,000 registrations, and in fact, the highest ever market share recorded by NPR [Phonetic] was in the month of November, which crossed 16% market share of electric vehicles, which is a reflection that the market acceptability of the brand product everything continued to be extremely high, only improved during the last quarter. It is only the transition related billing. That’s it.
Nagesh Basavanhalli — Executive Vice Chairman
And that also got again filled in the month of January. So January [Indecipherable] quarters volume complete.
Jiten Parmar — Aurum Capital — Analyst
That’s perfect. So I think there will be probably low inventory at the dealer fronts and all that. So maybe that —
Nagesh Basavanhalli — Executive Vice Chairman
That’s correct, Jiten.
Jiten Parmar — Aurum Capital — Analyst
Yes. Okay. Thank you so much. That’s all I have.
Nagesh Basavanhalli — Executive Vice Chairman
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Anand Venugopal from BMSPL Capital. Please, go ahead.
Anand Venugopal — BMSPL Capital — Analyst
Yes. Thanks for the opportunity. So my question is, there’s a lot of pessimism in the three-wheeler industry in India, and we realize it’s the essential part of transport system. Do you think the market is under estimating the power of next upcycle in three-wheeler industry? Can we see higher volumes in the next upcycle versus the previous upcycle?
Nagesh Basavanhalli — Executive Vice Chairman
Yes. I’ll take this and then maybe Sanjay can add. When you look at three -wheeler industry, right? Moving people and moving cargo, the passenger and cargo, all right? As a general rule [Indecipherable] vantage, because not only we supply engines to a series of automakers on one end, but from our lifecycle value extraction, we supply three -wheelers both L3 and L5, L3 at the lower end and L5. Sanjay already alluded kind of where we are, but if I take a step back, the industry size — basically L3 and L5 is more or less, when you look at the monthly sales and the trending annual sales, is more or less the same. Right? L3 has been growing significantly.
L5 which was significantly impacted during the — basically the three -wheeler traditional business, which was significantly impacted during the COVID era is recovering. Right? Totally, the industry size is about roughly 700,000 when you add both, right, L3 and L5. And we believe in terms of moving people, moving cargo and opportunity for a fuel agnostic way, wherein we are available in diesel engines, we are available in CNG engines on the Greaves side. We are available in L3; we are available in the three -wheeler L5 segment.
So we got that industry segment covered and we are seeing the positive trend of that industry moving back. It’s obviously not fully recovered to the pre-COVID era on the L5 area. But definitely it’s moving in the right direction. And I don’t think — I think long term, this will be a strong area, especially.
Operator
Anand, there’s an echo from your line. I request you to please use the handset.
Anand Venugopal — BMSPL Capital — Analyst
Hello?
Operator
Yes. Anand, there’s a lot of echo from your line. May I request you to use the handset and proceed with your question?
Anand Venugopal — BMSPL Capital — Analyst
Yeah, yeah. That’s all. That’s it.
Operator
Okay. Thank you. The next question is from the line of Rohit Bahirwani from Vijit Global Securities Private Limited. Please go ahead.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Thank you for giving me the opportunity. If you look at the subsidies, it was around INR116 cr as on 31st March, 2022. How much subsidies are achievable as on 31 December, 2022. And how are you looking at the subsidies in the future?
Nagesh Basavanhalli — Executive Vice Chairman
Yeah. So, Rohit, in terms of the absolute amount, the receivable subsidy has now gone above INR225 crores. So that’s the total receivables subsidy from the government, because last five years — sorry, five months, they have been asking for the details and processing that. In terms of the status and they already spoke about it with — to the agencies, all the details have been provided and companies working with government to get that release as soon as possible.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Okay, Okay. And my other question is with related to Auto EV Mart, company has two stores of Auto EV Mart in Bangalore and Trivandrum respectively? How much revenue contribution is there from Auto EV Mart? And company sells the products of different brands? So, do you booked the sales in your accounts? Or is it the incentives and commissions? Can you explain a bit on that?
Sanjay Behl — Chief Executive Officer and Executive Director
Yeah. So overall, in terms of the financial numbers of the sales that we do for the week is on principle to principle relationship. So basically, the entire sales get recorded. In terms of the contribution in the Greaves in standalone revenue and the consolidated revenue, it is less than 3% right now of the total vehicle sales.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Less than 3% of total consolidated revenue?
Sanjay Behl — Chief Executive Officer and Executive Director
That’s correct.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Okay, Okay. Thank you.
Sanjay Behl — Chief Executive Officer and Executive Director
Thanks.
Operator
Thank you. The next question is from the line of Subrata Sarkar from Mount Intra Finance. [Operator Instructions]
Subrata Sarkar — Mount Intra Finance — Analyst
Yes. Sir, I have a very basic question, since my understanding is a little bit limited. So like if I want to track the primary and secondary monthly sales for you company, in terms of electric EV, I’m talking about two wheeler and three wheeler, what is the basic source to check? And sir, just another requests like I have checked that like we are not disclosing the monthly data basically, like several others traditional auto companies or two wheeler printers. So is there any specific reason for that? So if you explain that a little bit.
Sanjay Behl — Chief Executive Officer and Executive Director
Yeah. So Subrata, two parts of the question one in terms of the secondary sale. So for secondary sale, there is a database with VAHAN, so VAHAN portal gives you data of the registered vehicle. Obviously, there are certain anomalies in the sense of time gap because from the time the vehicles are actually sold to the customer and till the time it is registered to that extent, the VAHAN database updation gets delayed. The second piece is there are couple of states which VAHAN database doesn’t
Operator
Ladies and gentlemen, it seems we have lost the line for the management once again. We request all participants to please remain connected while we’re reconnecting. Ladies and gentlemen, we have the management timely connected. Sir, over to you.
Sanjay Behl — Chief Executive Officer and Executive Director
Yeah. So subrata I was talking about VAHAN portal being the source for the secondary sales and subject to certain things, which are like couple of states are not covered. And the second registration may take a little time from the point when the actual secondary sales happen. So to that extent that VAHAN data can be readjusted and you can have a monthly or the live data about how many vehicles have got secondary — in the secondary market. About the primary data, we disclose that on a quarterly basis.
So that’s the information available in our investor presentations for every quarter. Talking about why monthly we don’t do that, because we believe in getting the volume data audited certified and then disclosing that. So, to that extent, their internal view from compliance is slightly different on disclosure of it in and do it on a quarterly basis and volumes are available in our industry presentations for — since the time companies started selling electric vehicles.
Subrata Sarkar — Mount Intra Finance — Analyst
Okay. Thank you, sir. Sir, another very basic question like with our existing capacity like existing plants, what is our optimal capacity like how much we can go in terms of both two wheeler and three wheeler. That’s all from my side.
Sanjay Behl — Chief Executive Officer and Executive Director
Yeah. So on two wheelers, as you know, we have our mega site at Ranipet, it’s a 35 acre plant. The entire brick-and-mortar can go up to one million unit capacity. Right now, the production capacity that we have installed is for 250,000 per annum in a single shift. With multiple shifts, the capacity can go up to 400,000 and 450,000 per annum. So that’s the installed capacity on two-wheelers. On three -wheelers, between both L3 and L5, the individual — so L3 had close to around 3,000 vehicles per month. And similarly, L5 also is around the same number in terms of installed capacity.
Subrata Sarkar — Mount Intra Finance — Analyst
Thanks, sir. Thanks. That’s all I had.
Nagesh Basavanhalli — Executive Vice Chairman
Thank you.
Operator
We have the next question from the line of Rohit Bahirwani from Vijit Global Securities Private Limited. Please go ahead.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Sir, I had one question with respect to the secondary sales for electric two-wheeler, if we look at Vahan portal. There are two data lines available, one for Ampere and another named Greaves Electric Mobility Private Limited. I understand the first one is for Ampere brand. What’s the other one for?
Nagesh Basavanhalli — Executive Vice Chairman
So both are the same ones, I think when the company registered, name got changed from Ampere Vehicles to Greaves Electric Mobility. So to that extent, the registration data when they are happening under two names, that’s the data what is getting reflected over there, but from a company point of view, both of them together is what we need to see as the total volumes, both are for Ampere branded vehicles only.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Okay. Okay. And with respect to battery, are you sourcing the batteries from Indian OEM? Or are you importing from outside?
Nagesh Basavanhalli — Executive Vice Chairman
Sanjay?
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
The lithium ion battery.
Sanjay Behl — Chief Executive Officer and Executive Director
Yes. All the batteries, assemblers are all Indian batteries. Cells of the batteries are imported, but all the batteries are assembled by Indian suppliers for us.
Rohit Bahirwani — Vijit Global Securities Private Limited — Analyst
Okay, sir. That’s it from my side. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Aniket Mhatre from HDFC Securities. Please go ahead.
Aniket Mhatre — HDFC Securities — Analyst
Hello. Hi. So we did understand why your sales went down in Q3, but what I fail to understand is why your secondary sales have declined in January. Could you please explain that?
Nagesh Basavanhalli — Executive Vice Chairman
Yes. Let me start, and then maybe, Sanjay, you would like to add.
Sanjay Behl — Chief Executive Officer and Executive Director
Yes. I just…
Nagesh Basavanhalli — Executive Vice Chairman
So while the primary sales were on hold, that’s where the inventory at the dealer level got reduced. So Sanjay, you wanted to say something? Sorry on that.
Sanjay Behl — Chief Executive Officer and Executive Director
Yes. No, no, no, absolutely. So it’s really — I think Dalpat said there, there is a Vahan registration number, which has a lag with secondary sales, because when you sell it to the customer, customer then either through a dealer or through some — directly goes to an RTO to register a vehicle. Registration, depending on the state can happen the same day or can be delayed by 45 days in some states. And all the registrations don’t get accounted for in Vahan portal. So the number that you’re seeing for January is a number of registrations, which happened in January, which would have some lag of December really getting impacted then.
But the real number to really look at January would be with some kind of an assumption on going forward. Now as I said, secondaries did pickup significantly over the December. So the secondary sale of the company is significantly ahead of December or January and for February first few, ahead of January. So there is a pick up there. You will see the registrations picking up with a bit of a lag. We already see the first nine days of February, if you look at one, our numbers are shot up in terms of registration.
Aniket Mhatre — HDFC Securities — Analyst
Sure. And one follow up follow up on the AIS Phase two that is coming up from April, what kind of price and fees do we anticipate for the industry post that
Nagesh Basavanhalli — Executive Vice Chairman
We’re currently working on that I think the price discovery is yet being worked upon. And I think the whole the level or the equilibrium will shift towards an upper because all the players across the industry will get impacted almost equally. And hence, we will see some shift in the price up. So from basic margin point of view, I don’t think there is going to be much change from March to April. And I think most of this price is in the region that it can be passed on to the consumer largely. So that’s what it will be. But the real price discovery, one will be able to actually share during the next quarter call, when that’s fully discovered.
Aniket Mhatre — HDFC Securities — Analyst
Sure, I understand that. But suffice to say that it’s likely to be higher than the Phase one, right?
Nagesh Basavanhalli — Executive Vice Chairman
Yes, it will be. There will be some impact because there are additional requirements that are required in terms of the sensors in the battery, the column [Phonetic] the potting of the battery needs to be done. Now there could be some engineering changes that may also be required, depending on how — what material are we using? So yes, there is going to be some impact. But it’s not an impact, which cannot be — partly, I think the industry will passed on to the customer and maybe some part can be absorbed. But mostly, I think it can be passed on.
Aniket Mhatre — HDFC Securities — Analyst
Understood. And just one final clarification. We confirm that we’ll be able to comply with the AIS Phase two standards, right — the time — because earlier, I think there were issues that the timing is too short. Would we be able to comply within the given timeframe?
Nagesh Basavanhalli — Executive Vice Chairman
Yes, in fact, we will — Ampere was the first electric vehicle to actually get a certification for AIS 156 Phase one well, in November, much before the deadline really happened. And even in Phase two we currently — with the visibility we have we are working for both component and vehicle level certification and our visibility suggests that — at least the visibility we have it is indicating that we will be well on time in terms of the switchover.
Aniket Mhatre — HDFC Securities — Analyst
Got it. Thank you. All the best.
Nagesh Basavanhalli — Executive Vice Chairman
Thank you.
Operator
Thank you. The next question is from the line of Gaurav Gupta as an Individual Investor, please go ahead.
Gaurav Gupta — Individual Investor — Analyst
Thank you for giving this opportunity. So I was just around…
Operator
Excuse me — you’re not clearly audible.
Gaurav Gupta — Individual Investor — Analyst
Is it audible now?
Operator
Yes.
Gaurav Gupta — Individual Investor — Analyst
Okay, thanks a lot. So, I think just a follow up question. One of the participants also asked, I’m missed out the response on that question. Like the other two-wheeler companies, which are listed or the traditional two-wheeler company to disclose the numbers that — what is the kind of numbers they have sold it out in the previous months. We are not putting up that number in the stock exchange filing, that is the first question from my side. And the second when we see our comparative analysis vis-a-vis the other players, whether it is a traditional one like the TVS motors or the one which are similar to us like the OLA or the Ather.
It seems that somewhere in the last couple of months post I think October or November, we are not up to that mark in terms of selling our product. So is it something from a technical point of view, product capability point of view, because of which our product has — are not that much hitting the market or it is something else that we as a investors are missing.
Nagesh Basavanhalli — Executive Vice Chairman
Yes. So, Gaurav, two things, one, in terms of December secondary sales, like Sanjay already mentioned, October and November were highest ever for Greaves Electric Mobility. And December due to AIS-156, company had calibrated its production too and then the new vehicles which had to be manufactured and sold. There was a process of entire ARAI certification, frame to certification which got completed before the regulatory date and once the homologation was completed, after that company restarted production and then the inventory started going back in the market, sales is happening.
Once the registration gets completed, the data started getting reflected back in the secondary. So if you see now the last two weeks, again, the momentum has gone back to the levels what it was in October, November. So that first part in terms of secondary sales numbers that you are seeing in the Vahan portal for December month and some part of January month.
Now, the first point in terms of disclosure, we gave quarterly volume data every quarter on the investor presentation on monthly, because secondary data is already available from the Vahan part. View from our compliance team is to give the audited volume data, which is what we give on a quarterly basis.
Gaurav Gupta — Individual Investor — Analyst
Thanks a lot. Just to follow-up, if you allow me to ask the question.
Nagesh Basavanhalli — Executive Vice Chairman
Sure.
Gaurav Gupta — Individual Investor — Analyst
If I see that on an overall basis, including the traditional two wheelers, as well as the startup right, overall the market is — it seems to be consolidated among overall eight players, right from all Ola, TVS, Ather, Hero Electric, — Okinawa, Bajaj and Hero Motors, right? And then for sure, out of these eight, what would be our strategy, would we like to be top three, in top five or under bottom of this in the maybe two years, three years down the line? Because as of now, I think we are somewhere around either in the fifth number or sixth number.
Nagesh Basavanhalli — Executive Vice Chairman
Yeah, let me start. I think if you look at it, right, the registrations and if you look at the year-to-date number like Sanjay was saying earlier, we have been roughly at about 13-plus percent year-to-date, right, from our market share. And we’ve been consistent and borrowing that December, January when the AIS Space one implementation, look at the trend over the last 24 months. And again, there was a dip when we were significantly involved in localization about 12 to 18 months ago and then now with AIS. So right, there are short-term blips, but overall, we’ve been in double-digit market share. Point number one.
Point number two is, we believe we were one of the early movers into this. We saw this opportunity ahead of a lot of people or most of the people, right. And Ampere product, especially the Magnus is very well established. We got supply chain, we got local manufacturing in place, and we got a great team in place, right. So when you look at it, we believe we are looking — and by the way, in general from unit economics, we have a profitable venture in general when if you look at even up to Q2, right. So when you look at all of these data points.
I think we are trying to optimize both market share growth and a viable growth. So basically, how do you drive the growth? How do you get up to new customers? We were operating in that sweet spot of that 80,000 to 1 lakh in the mid to the market, and that’s kind of where we believe our strength has been, and we will continue to play to our strategy and to our strongs. Hope that answers your question.
Sanjay Behl — Chief Executive Officer and Executive Director
Just to add on that — just on specifically — look, YTD December if you see, last year, we were not number five as you said. We were number three. We’ve had a 13.2 share with exiting with November at 16.3 as a number two plan. This is just a month before the changeover happened. And then the reasons of the switchover is all that we’ve shared already with you, which is December and January, and how the sale is now going to pick up as we go forward. So one is just wanted to correct, because you said, somewhere in the stuff of eight you will become — current and we were number two in November, number three YTD, so that is one small correction I just wanted to make.
The second point is we just unveiled the portfolio and that should be a very good, because your question was on strategy in two years. And in Auto Expo, when we unveiled our products I think that was a reflection of our strategy in action, where we actually improved the addressable market for our products from one and three to three in four, almost from a little above 30% to almost 75%, with all the new products, the three new products that we introduced, whether it was famous, where the bookings have already started now. We talked about two other products one the NXG for discerning millennials and one for the grid [Phonetic] worker last-mile mobility, which was NXU.
So with all products moving from over the next course of the two years that you talked about, and with already with one product, as Nagesh said, very successful, Magnus being number three in the industry, we stay very strong in terms of leadership position going forward.
Gaurav Gupta — Individual Investor — Analyst
Okay, fine. And very, very encouraging to hear about that as well. So that’s why just thought out to get an understanding as an investor that going forward in next two to three years. So I really appreciate that we were having somewhere around 14, 15, or near about double-digit market share till October, November, and you are currently on that, that we were either number two or three. And — but recently, but recently, only, we slipped to this fourth or fifth number or maybe sixth number, because of the competitiveness of the industry, like all are becoming very, very aggressive. TV is becoming very aggressive. And the same goes with the [Indecipherable].
So that’s why going forward is coming and analyzing this entire years, where do you see yourself in the top three in the top five or at the bottom, in the dashboard maybe. So as a strategy because like we had a strategy as a company, our competitors would be having the same kind of strategy as well to expand the market share to gain market share and so on and so fourth.
Sanjay Behl — Chief Executive Officer and Executive Director
So, clearly, we are looking for market leadership here, no strategy is going to be at the bottom of the pack clearly. The second point, I think, which is a very important point, I hope you picked up which Nagesh made was the profitable leadership and not just leadership at any cost. So that will be pivotal philosophy with which we will drive our electric mobility business.
We are going to go for profitable leadership. And clearly, we would be amongst the top players when it comes in about two to three years time in terms of profitable paths towards the leadership there. So there are a few other elements which I did not talk about given the time, but these brand identity also which again, the opening address, which Nagesh said, which is a change that you take from the earlier, you know, pre December era to now, Har Gully Electric. The whole new identity of the campaign.
The announcement that we made of launching a 50 brand experience stores over the course of next 12 months, increasing our overall brand stickiness, awareness, and then stickiness and preference, all this will actually build up apart from the new product and addressable market are positions towards a leadership and then on top of it if you’ve been monitoring and as you said, very closely watching our progress, our dealer strength, our quality, our after sales service, network strength has increased dramatically.
The start of the year it was about 220 odd active dealers, we are now touching close to 400. It’s almost double. And then this massive advantage that only we have amongst the pack of eight that you talked about, which is one Greaves, which brings in Greaves Retail, Greaves Finance, Greaves Care, and this extensive ecosystem that only we can talk about amongst the players that you see in the list today. So, I think all these things give us confidence that we — if we can bring all these together, we’re on the right path of profitable leadership.
Operator
Thank you, Mr. Gupta, could you join the queue for any follow-ups? [Operator Instructions] The next question is from the line of Jyoti Singh from Arihant Capital Markets. Please go ahead.
Jyoti Singh — Arihant Capital Markets — Analyst
Yes, thank you for the opportunity. Sir, my question is on the acquisition side as we have done — sorry.
Operator
Please use the handset.
Nagesh Basavanhalli — Executive Vice Chairman
Jyoti, please go ahead with your question. You did not complete. So, on the acquisition side, you were asking something?
Jyoti Singh — Arihant Capital Markets — Analyst
Yes. So, like they are doing 28% EBITDA margin and after we’ve done the acquisition, so what level we will be on the margin side?
Nagesh Basavanhalli — Executive Vice Chairman
Yes. So, if you look at Greaves standalone, we are at 10.7% in quarter three. And if you add hypothetically, let say, the current revenue run rate, they are at around INR40 crores or INR45 crores a quarter, if I add that revenue and I add the EBITDA margin, the consolidated margin for quarter three would have been 12.8%, 12.9%.
Jyoti Singh — Arihant Capital Markets — Analyst
Okay. And sir, going forward, what is the growth rate that we are targeting?
Nagesh Basavanhalli — Executive Vice Chairman
You are asking for Excel Controlinkage?
Jyoti Singh — Arihant Capital Markets — Analyst
No. Overall, as a company for Greaves.
Nagesh Basavanhalli — Executive Vice Chairman
So, Jyoti, as you know, we don’t give formal forward guidance. But having said that, I’m sure you’re monitoring the kind of numbers, what’s happening in the stand-alone business, and that’s quite predictable with the overall things in the three -wheeler improving. The price parity between CNG and diesel going more in favor of diesel, the volumes are expected to increase on the three -wheeler auto side. In non-auto side, with the profitability focus and profitability improving now, we are expecting better growth than what we have seen in the past. And raw material prices going down augers well for overall profitability of the company. The Excel Controlinkage, will add another INR200 crores, INR250 crores on top of the existing topline of the company.
Jyoti Singh — Arihant Capital Markets — Analyst
Okay. Thank you sir. How is the inquiry level we are seeing for the new launches that we have done in the Auto Expo?
Nagesh Basavanhalli — Executive Vice Chairman
Sanjay, on Primus, actually, we have started the booking there?
Sanjay Behl — Chief Executive Officer and Executive Director
Yes, it’s early days of booking there, so we’ve got excellent response in fact across the country. We have over thousands, I think, numbers already registered since we just started a few days back. And the number of leads I’m not talking, I’m talking about paid bookings there, which have already started happening. So yes, that product, we will see rollout as we committed in this quarter itself. And that — the early response and the bookings that we have to go by has got very encouraging initial feedback, yes.
Jyoti Singh — Arihant Capital Markets — Analyst
That’s great. Thank you sir.
Operator
Thank you. Next question is from the line of Ashutosh Tiwari from Equirus Securities. Please go ahead.
Ashutosh Tiwari — Equirus Securities — Analyst
[Indecipherable]
Operator
Ashutosh, you are not audible. Yes, can you please speak up, yes. Thank you.
Ashutosh Tiwari — Equirus Securities — Analyst
So, you have mentioned that we’ll be launching this Mechanical BS-VI Engine for three-wheelers. So, how would the cost come down with that, compared to the current engines that we have?
Dalpat Jain — Group Chief Financial Officer
Yeah. So, the G 435 our older version, which is now launched with BS-VI compliant norms and that, has been launched in the market. The price difference is almost 15%, between the Electric Version and the Mechanical Version. And in terms of margins, it’s almost 300 basis points higher for the company.
Ashutosh Tiwari — Equirus Securities — Analyst
Okay, okay. So, our customer accepting it like say, will there volume for this product will increase this year?
Dalpat Jain — Group Chief Financial Officer
Yes. Ashutosh, Initial response has been good. So, G 435 is a client who has taken out of the four or five major OEMs. We have couple of OEMs started with G 435 and they have seen market share growth on a relative basis overall. And initial response of G 435 has been good in the market. So, talk about PVPL. We talk about ATUL AUTO their market share has grown by G 435.
Ashutosh Tiwari — Equirus Securities — Analyst
Okay, okay. And secondly, a non-auto engine side, the volumes have been stapled or last few quarters. How do you see this segment doing now?
Dalpat Jain — Group Chief Financial Officer
Yeah. Arup, if you can just highlight in terms of possibility focus that we have there in non-auto?
Arup Basu — Managing Director
So in non-auto, we are really focusing on getting a better quality of EBITDA. And there are also impending regulatory changes. So this little bit of a gray field. And time will tell, how the demand pans out, because there’s a fair amount of clarity that users are wanting to understand for certain applications in terms of the regulations that are there.
The other dimension that is also going to affect the non-auto side is the, fuel choices, in terms of the blend portfolio of fuels that are going to be in demand going forward, our focus will remain on profitable growth. And we should see that improving.
Ashutosh Tiwari — Equirus Securities — Analyst
Sir, but which industry applications we are targeting more probably is in gross income. So I wanted to understand that.
Dalpat Jain — Group Chief Financial Officer
Ashutosh, mainly there are four segments in the non-auto. One is the Power Solutions, where we have Gensets and also the Industrial Engines which we are giving to some of the large customers. And that’s a segment where focus in the recent past has been on improving the margin. Still volume continued to be continued to be in a growth phase. The growth revenue is higher, but we are intentionally ensuring that margins improved in this particular segment.
The second segment, which is the non-auto small-engines in the Farm Equipment, and in Farm Equipment, as we mentioned earlier because of China import dependency which has now got replaced with the tie-up with the Indian manufacturers. In quarter three, you would have seen the volumes have started moving up compared to quarter two. And that’s one area where we are going to see the growth coming back.
So farm equipment used to be healthy volume close to around 10,000 to 15,000 a quarter minimum. So that’s one area where we see significant growth coming back with the Indian tie-ups and the subsidy part being — sorry, the government registration part being taken care of.
Ashutosh Tiwari — Equirus Securities — Analyst
And lastly, on the subsidy part, which is due from government. So we are now cleared in terms of all the regulatory things which are pending, like say we got all the approvals in place, right? It’s only that amount will come any time or there’s something remaining over there in terms of clearances?
Nagesh Basavanhalli — Executive Vice Chairman
Ashutosh, in terms of development, as we went into the new products, right, the Magnus and with the AIS-156 Phase one, the new Primus, which is also under certification. So we have got all the required certificates, including the FAME II permission and the compliance certificate from the government. So you would have seen our vehicles are allowed to claim subsidy and pass it on to the customer. So that part is clear from the government side. And as late as in the December, when we went with the AIS-156 complaint vehicle homologation, that again certification came from the government.
All the questions, details that they had asked, all of them have been submitted. They had appointed agencies, all the details have gone to them, including of the past. Now it’s a question about they taking the final decision and which is common for majority of the industry players and the various parameters what they are examining and then start releasing the money.
Ashutosh Tiwari — Equirus Securities — Analyst
So next two, three months that some amount should come to us?
Nagesh Basavanhalli — Executive Vice Chairman
Yes, we all are closely hoping and monitoring that because that’s a significant thing for the entire industry over there. So players like us who have been large enough in the size, we are able to sail through this time, but there are many small players who are dying and there is enough of responsibility on the government also to clear this particular part as soon as possible.
Ashutosh Tiwari — Equirus Securities — Analyst
Okay. Sure. Thank you.
Operator
Thank you. Ladies and gentlemen, that would be our last question for today. I now hand the conference over to Mr. Nagesh Basavanhalli, for closing comments. Thank you, and over to you.
Nagesh Basavanhalli — Executive Vice Chairman
Thank you all for attending, and thank you for the insightful questions. As always, management team is available. If you have any questions, you can reach out over the next several days. Thank you again for your time and attention. Have a great day.
Operator
[Operator Closing Remarks]