Greaves Cotton Limited (GREAVESCOT) Q4 FY22 Earnings Concall Transcript

Greaves Cotton Limited (NSE: GREAVESCOT) Q4 2022 Earnings Concall dated May. 13, 2022

Corporate Participants:

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Dalpat Jain — Group Chief Financial Officer

Analysts:

Ashutosh Tiwari — Equirus Securities — Analyst

Gaurav Chopra — Union Asset Management — Analyst

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Amyn Pirani — J.P. Morgan — Analyst

Bharat Jain — Ventura Investments — Analyst

Chirag Shah — Edelweiss — Analyst

Jyoti Singh — Arihant Capital Markets Limited — Analyst

Sonal Gupta — L&T Mutual Fund — Analyst

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Unidentified Participant — — Analyst

Aditya Joshi — Alchemy Capital Management Private Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good morning and welcome to Greaves Cotton Limited Q4 FY ’22 Earnings Conference Call. From the management we have with us Mr. Nagesh Basavanhalli, Group CEO and MD; and Mr. Dalpat Jain, Group CFO. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Nagesh Basavanhalli, Group CEO and MD of Greaves Cotton Limited. Thank you, and over to you, sir.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Thank you. Good morning, everybody. I hope you’re all staying well and staying safe. I welcome you all to Greaves Cotton’s Q4 earnings conference call.

Let me begin by giving an overview of the business and our CFO, Mr. Dalpat Jain will take you through the financials of the quarter. FY 2022 has been a pivotal year for us for many reasons. In no particular order, it’s been a turnaround in our EV segment, where the team has done a remarkable story in terms of building the EV line of business and building back to one of the top players in the EV industry. This is a clear outcome of our product diversification strategy. In addition to that, I would like to reiterate that the non-auto engine segment and the retail segments have also bounced back and reaching pre-COVID levels.

Other noteworthy mentions during the year include the addition of a new manufacturing plant and an experience center for Ampere at Ranipet in Tamil Nadu, the inauguration of our multi-brand EV retail platform, which was Auto EV Mart in Bengaluru, which sells a lot of brands in Clean Mobility. These initiatives have consolidated our position in the EV segment from an ecosystem standpoint where we offer vehicles, spares, service, financing for the entire EV ecosystem. We are also pleased to announce that the performance of our auto segment has continued to reach the quarterly benchmark and CFO will get into some of the details on the numbers. The non-auto and the retail business, like I said before, are returning to pre-COVID levels and we believe that will contribute to our top line growth going forward.

During the quarter, we’ve also incorporated a wholly-owned subsidiary in Delaware, U.S. under Greaves Technologies, Inc. i.e., GTL as it’s called or Greaves Technologies Limited. GTL is a dynamic innovation technology-oriented global engineering services company with offices both now in India and in the U.S. and MNC customers doing engineering services. We also did acquisition or we completed an acquisition in the E 3-wheeler space under the ELE brand name, E-L-E, for the e-rickshaws where Greaves Electric Mobility now owns 100% of that brand and 26% stake in another electric 3-wheeler company called MLR Auto to expand our last mile ecosystem. This will get us into newer geographies and of course tap into newer demographics over a period of time.

We continue to work to build a comprehensive ecosystem focusing on several areas, including clean mobility, be it engines, be it vehicles, electric vehicles, etc., retail expansion through multi-brand retail as well as our Greaves Retail, finance availability through our Greaves Finance and the development of our core engines business as well over a bit of time.

Let me now hand it over to the CFO to talk about the financial performance. Thank you.

Dalpat Jain — Group Chief Financial Officer

Thank you. Nagesh. Good morning, everyone. Happy to talk about the financial numbers that company reported in quarter four of financial year 2022. After at least six quarters of COVID-impacted business environment, in quarter four, company reported the highest ever revenue of INR621 crores and within the three main business segments that we have, Engine, Retail and E-Mobility, we have seen significant growth in E-Mobility with revenue growing 3.5 times compared to last year’s quarter four, and the share of E-Mobility in the Group revenue has now grown to 38%. Our consolidated EBITDA was at INR41 crores and if you look at the revenue growth both year-on-year as well as sequential quarter, on a year-on-year basis, it grew by 19% and sequentially, it reported a growth of 28%. If I talk about full financial year, company had a 14% growth in consolidated revenue and reported INR1,710 crores.

If you look at balance sheet, with the cash flow management which company has been focusing on, and also the focus on working capital, company’s liquidity position has improved. The standalone net cash position is INR416 crores as on 31st of March. At consolidated level, including the external debt that our subsidiaries have taken, the consolidated net cash position was INR205 crores. Company’s focus on R&D and on increasing the operational efficiencies continued. The initiatives which were taken to consolidate plants at one location, the business restructuring focusing on individual businesses, helped company save INR45 crores — close to INR45 crores compared to pre-COVID annual fixed overhead and that augurs well as we go into normalized business environment, we expect margin to improve from where we have closed Q4 of FY ’22.

The company has also strengthened its management team and with the appointment of some of the leadership position. We will continue to focus on each of the business segments that Nagesh spoke about.

With that, we’ll be happy to open the session for interactive question and answer. Over to you, Lisa.

Questions and Answers:

Operator

[Operator Instructions] The first question is from the line of Ashutosh Tiwari from Equirus Securities. Please go ahead.

Ashutosh Tiwari — Equirus Securities — Analyst

Yeah, hi, sir. Congrats on good set of numbers. Firstly on this 2-wheeler realizations, I think I see that there is a significant increase versus third quarter as well. Is it like around INR95,000 per vehicle 2-wheeler realizations in the quarter?

Dalpat Jain — Group Chief Financial Officer

So Ashutosh, let me take this question. If you look at the share of high-speed portfolio in our E-Mobility, that has now grown to 73% and also share of 3-wheelers in the overall volume has increased. So as a combination, the per vehicle realization, you are right, is now close to INR95,000, which is a combination of both 2-wheelers and 3-wheelers. If I look at standalone 2-wheelers, it is close to INR80,000.

Ashutosh Tiwari — Equirus Securities — Analyst

How much did you say for standalone 2-wheelers?

Dalpat Jain — Group Chief Financial Officer

INR80,000, close to INR80,000.

Ashutosh Tiwari — Equirus Securities — Analyst

INR80,000 will not work out to — because I think this quarter we have seen a fall in 3-wheeler volumes quarter-on-quarter.

Dalpat Jain — Group Chief Financial Officer

That’s correct. That was because of the festive season versus — the peak was in the festive season of the third quarter and then in the fourth quarter, it has grown.

Ashutosh Tiwari — Equirus Securities — Analyst

What’s the realization in 3-wheelers, particularly e-rickshaws?

Dalpat Jain — Group Chief Financial Officer

Typically e-rickshaw will be anywhere between INR1,10,000 to INR1,25,000 depending on the model that we have.

Ashutosh Tiwari — Equirus Securities — Analyst

Okay, then also I think INR80,000 will not give this number of INR240 crores.

Dalpat Jain — Group Chief Financial Officer

So INR240 crores is both combination of 2-wheelers and-3 wheelers.

Ashutosh Tiwari — Equirus Securities — Analyst

Yes, yes. So if you — if I assume INR1.2 lakh as well on 3-wheeler, that’ll probably give INR33 crores, so almost INR207 crores from 2-wheelers on 22,000 volume. I guess realizations should, at this pace, coming out to be around INR91,000, INR92,000.

Dalpat Jain — Group Chief Financial Officer

No. So Ashutosh, to be exact, it is around INR86,500 per vehicle realization and then there is a sale of spares, which is also part of it.

Ashutosh Tiwari — Equirus Securities — Analyst

Okay. Okay. Is that also growing well, spare sales?

Dalpat Jain — Group Chief Financial Officer

That’s growing now, though the numbers are not very significant in the overall 2-wheeler revenue, but as the time period is increasing, the spare sales is also increasing in the overall portfolio.

Ashutosh Tiwari — Equirus Securities — Analyst

And I think 73% share of high-speed was for the full year, but in fourth quarter, whether it is significantly higher?

Dalpat Jain — Group Chief Financial Officer

In the fourth quarter, the same share was around close to 80%.

Ashutosh Tiwari — Equirus Securities — Analyst

Okay. And one more thing, if I look at this balance — consol balance sheet, there is other financial assets of INR154 crores. Is it related to subsidies which are due from government?

Dalpat Jain — Group Chief Financial Officer

That’s correct. So INR154 crores includes close to INR110 crores of subsidy and that is part of it.

Ashutosh Tiwari — Equirus Securities — Analyst

And generally, how much time it takes for government to give subsidies, like say, payments?

Dalpat Jain — Group Chief Financial Officer

Normal cycle, it’s between 90 to 120 days, but there were certain — and this all goes through a technical — through a portal. In the quarter four, there were certain technical hitches where government was also upgrading the portal, so number of days were more as at the 31st of March. But in a normal cycle, between 90 to 120 days is the green subsidy collection cycle.

Ashutosh Tiwari — Equirus Securities — Analyst

This should come down basically in the Q1, basically.

Dalpat Jain — Group Chief Financial Officer

That’s correct.

Ashutosh Tiwari — Equirus Securities — Analyst

And lastly, in terms of supply chain, especially battery sourcing, is there any issues right now or the cost has gone up, any color on that?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

I think I can take that. Ashutosh, good morning. Thanks for the question. Supply chain, like for the entire industry, right, remains a challenge. Our supply chain team fully aided by the Greaves Cotton supply chain expertise has been working with our suppliers who are localized plus the source itself outside the country, for example, you asked a specific question on battery cells, right, and to look at one quarter ahead, two quarters ahead. So that’s kind of how we are trying to manage it, the situation. But clearly, supply chain is something that we continue to monitor very, very closely and it’s monitored on a daily basis.

Ashutosh Tiwari — Equirus Securities — Analyst

But because of that, there will not be any margin issue like whatever margin we delivered in this quarter, it should improve subsequently, in the next year.

Dalpat Jain — Group Chief Financial Officer

Ashutosh, now there are two parts to it. One, in the short-term or in between, because of, you know right now there are lot of uncertainties considering the overall geopolitical situation, so there may be disruption in the short term considering the lag in recovery of the pricing. But if you see from a full-year perspective, the overall gross margin should improve for E-Mobility business.

Ashutosh Tiwari — Equirus Securities — Analyst

Okay, got it. Thanks, I’ll join back the queue.

Operator

Thank you. The next question is from the line of Gaurav Chopra from Union Asset Management. Please go ahead.

Gaurav Chopra — Union Asset Management — Analyst

Congratulations on a good set of numbers, sir, and thanks for taking my question. I just had two questions. First thing, this government PLI scheme, which was announced, our name was not there. Could you sort of highlight why we are not there?

Dalpat Jain — Group Chief Financial Officer

So Gaurav, there are two parts of the PLI scheme, one which was at the OEM level where there were two criteria. Either the Group revenue should be more than INR10,000 crore or you should be — have start-up in the last financial year. And that’s where Ampere did not qualify because as a Group on the revenue criteria also the qualification criteria was a higher number. And from a start-up perspective, it was — the company has already been started many years back and because earning revenue from the E-Mobility. The second part was on the component front and there, there is a technical discussion which is happening with the authorities on qualification criteria. So that’s where the current status is on the PLI scheme.

Gaurav Chopra — Union Asset Management — Analyst

Got it. Certainly, sir, from the perspective of this [Technical Issues] sort of reading about it, of course, we haven’t had any incidents so far. Just wanted to understand where do you procure our battery cells or do you have the BMS in-house. Really wanted to get some sense on quality control from your side. That was the last question from my side.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah. So I think our technology team, starting with our CTO, right, we have a global CTO, obviously, safety is of paramount importance and validation and focusing of the vehicle from the entire level, from the cell quality all the way to battery pack design to, like, you’re saying BMS, right, are all things that the engineering teams are working on, point number one. Point number two, keep in mind, we have been very fortunate. We have more than 130,000-plus customers, working with them over several years — in fact Ampere is the 13-year-old consortium [Phonetic], so and understanding the duty cycles, right, at different temperatures. So our engineering teams are taking this very, very seriously and all the rigor of validation and safety and protocols are being looked at. Thank you.

Gaurav Chopra — Union Asset Management — Analyst

So is it — is the BMS being sort of taken care of in the — by Ampere in-house — by the in-house team or it is outsourced?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

It’s a combination. We have capability in-house plus we work with strategic supplier partners who give us that BMS side. So we do both.

Gaurav Chopra — Union Asset Management — Analyst

Got it, got it, thanks.

Operator

Thank you. The next question is from the line of Dhananjay Mishra from Sunidhi Securities and Finance Limited. Please go ahead.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Just a follow-up on that question. So have you seen any impact on your…

Operator

Sorry to interrupt, Mr. Mishra, we are not able to hear you clearly.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Yeah, can you hear me right now?

Operator

Sir, your voice is breaking up. Can you use the handset mode while speaking, and not the speaker phone?

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Yeah, hello?

Operator

Yes, sir, please go ahead.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Yeah, so just wanted to check after these fire incidents happened, so have we seen any impact on –in bookings enquiries off late in last two months in our case also?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

So in general, demand has held up, I mean, as evidenced by our 35,000-plus sales in the last quarter, right? Point number one. Point number two, yes, there have been customer questions, customer education, customer discussion. So we are working with our sales partners, our dealer partners and a comprehensive training awareness education, right, is in process. But no, we are not seeing any significant changes.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Ad you said this INR110 crores subsidy is outstanding from government. So how much subsidy you have received in FY ’22 full year?

Dalpat Jain — Group Chief Financial Officer

So Dhananjay, in the FY ’22, the total subsidy that we have received in cash was close to INR60 crores. As you know, the high-speed share started increasing from the October onwards and subsidy is eligible on the high-speed vehicles. So out of the total INR170 crores or INR180 crores, close to INR60 crores was collected during the year.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

And lastly, where are we in terms of a stake sale in MPL in terms of raising funds?

Dalpat Jain — Group Chief Financial Officer

Sorry. Your last question was not clear.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

So stake sale in MPL. Anything is going to happen, any development on that side?

Dalpat Jain — Group Chief Financial Officer

Right now, process is on and as we had spoken in the last year — sorry, last quarter’s con call, we expect the process to get completed by Q2 of this financial year. So the progress is being made accordingly.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

And the only other thing I’ll add is, there is strong interest and that interest continues. And I think the — let the process play that out, we will announce as and when we are ready.

Dhananjay Mishra — Sunidhi Securities and Finance Limited — Analyst

Okay, that’s all.

Operator

Thank you. The next question is from the line of Amyn Pirani from J.P. Morgan. Please go ahead.

Amyn Pirani — J.P. Morgan — Analyst

Yes, hi, thanks for the opportunity and congratulations on achieving the profitability on the EV business. My first question was on the EV gross margin. So can you help us understand the improvement in profitability that you have seen, how much is operating level-driven and how much is gross margin-driven and hence, what is the kind of outlook, given what we’re seeing in the global side on commodities as well as on supplies on the cells side?

Dalpat Jain — Group Chief Financial Officer

So Amyn, around 5% out of the EBITDA margin improvement is driven by the operating efficiency improvement. As we had said earlier also, we had built the scale for much higher revenue and as the revenues have grown, 5% has come from the operating efficiencies, close to 3.3% or 3.5% is from the gross margin improvement.

Amyn Pirani — J.P. Morgan — Analyst

Okay. Okay. And I don’t know if you can share this number, I mean, gross margins right now would be, what, like in the range of 20% higher? If you can give an indication?

Dalpat Jain — Group Chief Financial Officer

It’s between early to mid-20s, in that range.

Amyn Pirani — J.P. Morgan — Analyst

Okay.

Dalpat Jain — Group Chief Financial Officer

And actually, those numbers, we have in our consolidated minus standalone financials.

Amyn Pirani — J.P. Morgan — Analyst

Okay. Okay, thank you. Second question was on the cost inflation on the non-raw material side because the commodity inflation is, I think, well understood. But I think we are seeing inflation across the board on employee at least in the economy. I don’t know if you’re seeing that in your company, as well as other expenses, there has been worries around power cuts and power cost going up. So can you give us some indication as to how things are looking for you and how you’re managing that inflation going forward?

Dalpat Jain — Group Chief Financial Officer

So on the first part, which is related to manpower, Greaves has adequate or the comp — overall compensation mechanism where according to performance and other criteria, the annual increments are given. And those are in line with the industry. As you know in the manufacturing industry, the overall increase is typically lesser than what you are seeing in the software. Maybe your question is more from the IT and other industries’ point of view. The second piece on the other expenses, overall, the weight in the total P&L, if you look at from other expenses point of view, it is less than 6% or 7%. So to that extent, we are not seeing — going to see a significant impact. The main [Indecipherable] for us is now how the RMC behaves and that is where the focus of the entire management is.

Amyn Pirani — J.P. Morgan — Analyst

Great. Thank you. I’ll come back in the queue.

Operator

Thank you. The next question is from the line of Bharat Jain from Ventura Investments. Please go ahead.

Bharat Jain — Ventura Investments — Analyst

Hello, good morning.

Dalpat Jain — Group Chief Financial Officer

Good morning, Bharat.

Bharat Jain — Ventura Investments — Analyst

Yeah, hi. I just wanted to understand that there have been recent incidents with products of other companies. So do we have any such complaints on our product line and what are the steps taken to ensure that we get good product on — for a customer?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

I thought we answered this question earlier. Basically, like we said, we’re looking at everything from our battery cell, BMS, our testing validation process, we have in our Gen-2 of our products. So it’s all of those steps that I repeated earlier. Right? I think we’re taking all of those steps, right? And obviously Ampere is a company that’s been around 13 years. They’re into Gen-2 of our products and working with our customer base of greater than 1 lakh customers, right? So we continue to keep working on all the customer needs.

Bharat Jain — Ventura Investments — Analyst

Great, sir. And also there has been recent movements on the — like CXO level. So any headlines on that if you can share.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, in fact, I’m glad you asked that. We have brought in significant leadership capability, both at the GCL level, Dr. Arup Basu has joined us who was running a former listed company before. He has joined us to lead the GCL side of the house. And on the GEM side too, we have brought in a dedicated leadership, right, at the CEO [Phonetic] level. So you will see us strengthening the portfolio, you will see us focusing on talent, building capacity. In fact, we have already announced that we have gone up to the 250,000 mark, the 20,000-plus per month in Ranipet, higher than the 10,000 per month that was last year. Right? We will continue to invest in products and we’ll continue to keep focusing on some of those.

Bharat Jain — Ventura Investments — Analyst

Thanks, Mr. Nagesh. All the best.

Operator

Thank you. The next question is from the line of Chirag Shah from Edelweiss. Please go ahead.

Chirag Shah — Edelweiss — Analyst

Yeah. Thanks for the opportunity, sir. Just three basic question. Given that your volumes on the EV side is scaling up now. How are you thinking of…

Operator

Sorry to interrupt, Mr. Shah. We are not able to hear you clearly.

Chirag Shah — Edelweiss — Analyst

Hello, am I audible now?

Operator

Yes, sir. Please go ahead.

Chirag Shah — Edelweiss — Analyst

Yeah. Sir, my question was on EV 2-wheeler capacity. Given that we are now ramping up the volumes, how are you looking at your capacity, one? And secondly, between insourcing and outsourcing, how are you thinking about — what ramp up or you would like to have more insourcing versus outsourcing?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Okay. Good questions. So, couple of things, one is on the capacity, we have ramped up to about 250,000 units. So as we said when we built Ranipet we had built the brick-and-mortar that could go up to 1 million units, right, over two shifts. Today, we are comfortably able to deliver 250,000 units, which we believe should hold us in good stead in the near term. Our — as we foresee the demand coming up, we will add more capacity in a very short time. We have demonstrated that. We went from 10,000 to 20,000 a month, we are already there. Right? So you can expect us to go to the next increment of 250,000 to 500,000 in a very short order and anticipating the demand as and when it’s needed. Right? Because the brick-and-mortar is there — now, point number one.

Point number two, in terms of insourcing versus outsourcing. So we clearly worked with — we have gone through a deep localization drive and we have localized suppliers here. Now one of the things is we have strategic suppliers for our partners and as the volume increases, just like we do in Greaves Cotton on the engine side, we will look at it on a business case perspective, make versus buy, certain components that make sense and to bring it in-house. But it would be a purely commercial discussion and based on what it makes. So for example, paint shop or frame assemblies, right, some of that, I anticipate over a period of time, we are going to bring it in-house. So things like that we will do it based on commercial prudence. And as the volumes pick up, you will see some of that. But we will continue to keep working with our strategic partners.

Chirag Shah — Edelweiss — Analyst

So what we be the critical volume level that will make you to have more of insourcing of paint shop and assembly lines? It is 500,000 unit a right number or it could be a higher number?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

So, like I said, I think we can very quickly go up to 1 million units, as the demand comes back. Right? The brick-and-mortar is ready on Plant 1 and right now, like I said, we have gone up to 250,000 and they’re running in one shift. Right? And as and when we need to, we will increase the capacity by adding incremental conveyor lines. So I think that in-house capacity from a manufacturing, I’m not too concerned about. Like I mentioned earlier, I think our global supply chains and the challenges that we have in chips, the challenges that we have in cells, right, globally, I think is the challenge that we’re all facing as an industry. So to us, we need to manage that very, very closely and as and when that situation improves, we will add capacity based on demand as needed. That won’t be a constrain.

Chirag Shah — Edelweiss — Analyst

Yeah, thank you very much. Sir, question was on the engine side. On the non-automotive engines, if you can add some color for how should we look at the growth from hereon.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah. The non-auto engine business did about — if I look at it, right, the non-auto products did about totally 12,000-plus in terms of volumes, right — units and I think it’s in the deck. When I look at it, I think the non-auto business post-COVID is coming back because of the onset of construction, infrastructure, farm equipment. So some of the engine usage, we expect it to grow. Obviously, in our non-auto small engines, our genset engines, we are seeing good traction post-COVID and we expect that to continue. The challenge again, same thing here with the supply chain and the commodity price rise. There has been obviously our RMC challenge that is something that the team is monitoring both by taking internal efficiency measures as well as price increases. That’s how [Indecipherable].

Dalpat Jain — Group Chief Financial Officer

Yeah. And if I’d just add number for this, in the quarter four, the non-auto share in the consolidated revenue was close to 30%. And that share we expect to remain or grow from here on as we go forward.

Chirag Shah — Edelweiss — Analyst

So sir, can non-auto stabilize at a much higher level from current 30% number, like 40%, 45%, can it become — can it go to those levels, given the near-term tailwind on the demand side?

Dalpat Jain — Group Chief Financial Officer

See, one part is on the share side where we have E-mobility also growing quarter after quarter in overall revenue. So share may not be a right indicator. But from growth perspective, we definitely expect non-auto business to grow in a healthy — at a healthy rate.

Chirag Shah — Edelweiss — Analyst

Okay, thank you very much. I’ll come back in the queue.

Operator

Thank you. The next question is from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead.

Jyoti Singh — Arihant Capital Markets Limited — Analyst

Yeah. Hello, sir. Good morning. Sir, if you can throw some light on Ampere and rest of the sales for the current year and how much we are expecting going forward on FY ’23, ’24? Thank you.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

So the total — I’ll start with the Greaves electric mobility. Greaves electric mobility roughly did about 25,000 [Phonetic] vehicles in ’22. This was against 10,000 vehicles in ’21. So that was roughly about 150% — I’m talking about numbers, 150% growth year-over-year. When you talk about Ampere, Ampere is a 2-wheeler brand. Ampere sold more than 22,000 vehicles in ’22 and versus 8,000 vehicles, roughly 170% increase. So when you aggregate these, what I’m giving you is the Q4 numbers. When you look at full year, Ampere sold roughly 52,000 vehicles versus ’22 the year before. EV or our 3-wheelers sold 10,400 versus 4,000 and total GEM sold about 62,000 vehicles versus 27,000. So all in all, I think it’s a significant growth aided by good acceptance of our products, the Magnus Ex that was launched on the 2-wheeler and our EV products. And I think that complements us because ELE is at the bottom of the pyramid, giving lives and livelihoods both to the B2C and the B2B customers, right, and B2C, I mean, in terms of the people carrying capability as well as the cargo carrying capability. And then when you look at Ampere, it’s both the B2C customer, the weaker customer as well as the institutional customer.

Jyoti Singh — Arihant Capital Markets Limited — Analyst

Okay. Thank you, sir.

Operator

Thank you. The next question is from the line of Ashutosh Tiwari from Equirus Securities. Please go ahead.

Ashutosh Tiwari — Equirus Securities — Analyst

Yeah, hi. So on this diesel 3-wheeler volumes, it was around 15,000 last quarter, how do you see it ramping up in subsequent quarters and months? Are you seeing improvement versus Q4 now?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yes, I think we are definitely seeing. With the advent of schools and colleges that have been opened, offices being opened, the last mile connectivity, especially the shared mobility is coming back. And as we all know, this industry was very badly hit, almost 70-plus percent down, right, during the COVID era. So we do, definitely see when you look at Q4 versus Q3 numbers and when we are growing, I mean, clearly, we can see the numbers. Right? Auto engines did about 15,000 — 15,000-plus units. Right? And so we see the trend line especially month-on-month, the industry size, when I look at diesel plus CNG was roughly about 600,000 pre-COVID had gone down to 200,000 in the COVID era. We see that creeping back up to 400,000-plus. So I think we definitely see signs and CNG is coming back. And I think our OEMs — depending on the success of our OEMs, we anticipate that auto engine business should continue that recovery.

Ashutosh Tiwari — Equirus Securities — Analyst

Okay. Can we go towards that 25,000 run rate number to say or maybe 24,000 to 23,000 number over next, say, one or two quarters? Is it possible?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

I don’t want to to give you future guidance, the reason being, this is, as you know, purely OEM-driven. But what we — working with the OEMs, we are realizing just there is optimism. Month after month, we are seeing the difference. The order book that you’re are saying 30 days, 60 days, there is optimism. And — so we have capacity, we can build it. Now the question is, can the demand come back to that level? I think it’s a question of time, but what we’re also seeing is obviously the mix is changing. Diesel is coming back, but CNG is coming back stronger. Right? And over a period of time, we see electric also in this business going up, which should help our MLR business as CNG and electric come up.

Ashutosh Tiwari — Equirus Securities — Analyst

So what is your CNG in our volumes as of now like last year?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Sorry, come again.

Ashutosh Tiwari — Equirus Securities — Analyst

What is share of CNG in our volumes?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Dalpat, do you want to take that.

Dalpat Jain — Group Chief Financial Officer

Yeah. So it was close to 20% Ashutosh in Q4.

Ashutosh Tiwari — Equirus Securities — Analyst

Q4 20%. Okay. And the non-auto engines, while we did very well last year, this year we have seen almost 10% decline. So how are we seeing this business and what are reasons behind this decline in this current financial — last financial year?

Dalpat Jain — Group Chief Financial Officer

So Ashutosh in the FY22 the 2 segments which contributes the volume for non-auto engine. So there are 3 parts overall non-auto business. One is the light equipment, which goes for farm equipment business, and then the power gensets which have highly value and that’s where the overall revenue once every even it contributes to higher revenue and then there are small engines, which gets used for purposes in the industrial basis and also in the small locations. There, we saw a little bit of we can say weaker market situation. But in the overall broader scheme of things, we expect these volumes to come back and that should not be a problem. There is no fundamental shift, it is only a timing gap which we saw between last year and this year. Last year, the lockdown being over a longer period. The growth was mainly in the third and fourth quarter. This year, the volumes were also in second, third and fourth quarter. So overall, on a full year basis. If you look at it, yes, there is a 10% reduction, but we don’t expect it to remain at that level on a permanent basis, the volumes should go back towards where it has been in the pre-COVID period.

Ashutosh Tiwari — Equirus Securities — Analyst

You mean to say this is maybe small engine used in industrials where the demand is particularly weak.

Dalpat Jain — Group Chief Financial Officer

Exactly. So these are basically small engines used for the purpose of marine, for the purpose of some of the industrial purposes and that’s where we saw the quarterly spread being different than what it was in FY21, considering the overall COVID situation. On a long-term basis, we don’t see a permanent reset in the volumes.

Ashutosh Tiwari — Equirus Securities — Analyst

And agri-related products supply, are we seeing some pickup over last 2, 3 months, because this is again a market which is not doing well. So is there improvement over last 2, 3 months in that?

Dalpat Jain — Group Chief Financial Officer

So here the main issue was — So there are 2 parts, one is related to overall industry and there, the pickup is going to be more driven by the cycle. The second piece which was specific to Greaves was the product that was earlier being imported from China and we have now localized it. The new product is being registered with various government authorities. As you know, farm equipments have subsidy element and the product needs to be registered with the various state governments. So many of the state governments. It has got the permission and registrations, some are still pending. And that is where that part is a temporary or a short-term factor.

Ashutosh Tiwari — Equirus Securities — Analyst

Lastly, on this electric 2 wheeler is, Magnus ES now our largest selling product?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yes, that’s correct — on the 2-wheeler front.

Ashutosh Tiwari — Equirus Securities — Analyst

Okay. So people are preferring that long range rather than the lower range, so compared to Magnus Suzuki, ES basically doing better with [indecipherable]. If you are able to pay that higher premium for that range.q

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, ES is doing well, but keep in mind though as part of our strategy, we were very clear. We operate at the lower end as well as we operate in what we call the city speed. It’s our hypothesis that it’s in the speed that lot of customers prefer and of course with the [indecipherable] subsidy and the petrol prices went up, right, the unit economics are very favorable. Hence, there is a lot [indecipherable].

Ashutosh Tiwari — Equirus Securities — Analyst

Okay. Thank you.

Operator

Thank you. The next question is from the line of Sonal Gupta from L&T Mutual Fund. Please go ahead.

Sonal Gupta — L&T Mutual Fund — Analyst

Yeah, hi, good morning and thanks for taking my question. Just continuing on the non — the light equipment. I mean is that largely power tiller or is there some other equipment?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

These are mainly pump sets and power tillers.

Sonal Gupta — L&T Mutual Fund — Analyst

And just in terms of on the EV side — could you sort of indicate what sort of price increases you’ve been able to put through in terms of given the commodity cost pressures. And I mean we understand battery prices etc and all these things are going up.

Dalpat Jain — Group Chief Financial Officer

So Nagesh, would you take the pricing part. Sonal, before that, if you look at the realization increase and when we were talking about in the earlier question, the per unit realization on a full year basis has gone up from INR60,000 to close to INR81,000 and for the quarter 4 towards INR86,000, that’s a combination of increasing share from us slow speed 2 cities speed and high-speed and with the increase of our higher end model Magnus EX. Within that, at the price increase part, it has been corresponding to the inflation that we saw though there has been time lag maybe of a month or 2 months but the team has been able to get the price increase corresponding to what we saw as the inflation in the commodity price increases. Maybe Nagesh, you want to add more on.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, I can just add to that. So overall I think when Dalpat said, we have been very conscious that this segment with our price value proposition, we continue to look at the market and we have taken price increases appropriately. Yes, we have taken price increases because of commodity prices have gone up, but when you also look at our history, and that’s one of the things I’ll leave you with, our average ASP has gone from the traditional 30-plus thousand rupees a couple of years ago where we were traditionally playing to now the CFO was saying about 86,000, 87000 rupees. And so I think we continuously believed in understanding the consumer, adding the value that the customer cares for or customer wants and taking price appropriately, right. In fact, on a like-to-like basis, our model is slightly more expensive than probably the top 2, 3 competitors in that space, I’m talking about like-for-like model like city speed to city speed.

Sonal Gupta — L&T Mutual Fund — Analyst

Got it, got it, sir. So basically, to understand, I mean you have been able to pass on the increased supply chain costs. I mean, primarily on battery and some of these sites to the consumer.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yes, yes.

Sonal Gupta — L&T Mutual Fund — Analyst

And just in terms of, I mean like a broader question, in terms of what would be your key objective in terms of next year for FY23 growth on the EV side, I mean what are the key milestones you’re looking to achieve here?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

So, clearly like we have said that obviously we’ve taken up the capacity to do 50,000 units. We have the Magnus EX that’s doing well and we continue to keep investing on new products at appropriate time, we’ll talk about it. So investing in plant capacity, investing in the people, investing in products, new products and technology, right and leading market share or leading scale because this is a scale-driven business and also working on customer centricity, right. I think those would be the priorities for this year and clearly right now, we are in an investment phase. This is a growing business. We do see that traction coming in and we will continue to focus on that both in 2-wheeler and [indecipherable] side.

Sonal Gupta — L&T Mutual Fund — Analyst

Right. And just last question, I mean like on the E 3-wheelers. I mean what portion would now be still lead acid?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

E 3-wheeler on lower end, E-rickshaw, it’s super [indecipherable], right, it’s also moving towards lithium on as we move towards the L5 category. So the L3 category, which is the E-rickshaw category is still not lead acid, but I expect over a period of time that is beginning to move and we’re already seeing early signs of lithium. Keep in mind, that’s a very price sensitive segment because like I said, it’s lives and livelihoods, people did that [indecipherable] and so we have to be very sensitive, what the customer wants in that segment. And on the L5 segment, which is a typical auto, which is an electric auto, there, I see it moving very heavily towards lithium.

Sonal Gupta — L&T Mutual Fund — Analyst

Got it. No. So I was just because your presentation shows 10% share of lead acid. So I’m just trying to understand like —

Dalpat Jain — Group Chief Financial Officer

That’s only 2 wheeler side.

Sonal Gupta — L&T Mutual Fund — Analyst

Okay. Thank you.

Operator

Thank you. The next question is from the line of Akshay Kothari from Envision Capital Services Private Limited. Please go ahead.

Sonal Gupta — L&T Mutual Fund — Analyst

Yeah, thanks for taking my question. Sir, I wanted to understand, like in the e-mobility space, where are we seeing traction from geography-wise in Tier 1 cities or Tier 2 cities. Could you give a sense of that?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Sure. The good part is Ampere which traditionally started out with South India based a couple of years ago, right, 30 months ago, we are now very equally distributed. I think when you look at our North and West and South. It’s almost equally distributed right and East is coming up very rapidly. point number one. So our customers are coming from all the regions. Customers are definitely coming in from both Tier 1 and Tier 2. And so I think I anticipate that from big towns, obviously the towns like Bangalore, Bombay, Pune obviously are obvious choices, Chandigarh, but we also see the second tier towns coming up quite strongly. So in our case, we are seeing actually traction happening on both sides and our dealer network growing, we are capturing some of that.

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Okay. Okay, thanks a lot. Yeah. Thank you. The next question is from the line of Yashwant, a retail investor. Please go ahead.

Unidentified Participant — — Analyst

Yeah, hi, good morning, Nagesh and Dalpat. So I have a couple of questions, one is with respect to the models that we are planning for the coming future. So that is first question, and the second question is with respect to after sales income, so name it like the salaries or otherwise spares. So how much as a percentage, do we see on an overall revenue?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

So i’ll answer the first question and maybe Dalpat, you can take the second question. So in terms of the overall — Dalpat, you want to take the second question after after-sales as a percentage of revenue.

Dalpat Jain — Group Chief Financial Officer

Sure. So Yashwant, as you know, in the, if you look at our overall volumes, they have been growing in last couple of years and most of the vehicles are in the initial period. So right now the income towards spares and services is in early single digit as a percentage of the overall revenue, but as we look at the future, and if you go by the trends, what has been in the industry, maybe in electric mobility, we will not see those kind of percentages considering the moving parts are lesser but still we expect in our business plan that number to be close in early double-digit. Nagesh, on the new model.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, on the new model, like I said before, I think on the 2-wheelers side, we’re working on actually 2 new products, but we are not ready to announce it yet, at the right time, and as we get closer, we’ll talk about it. So rest assured, I think we’ve introduced several new products, the Magnus EX was the last months last year and we continue to keep working on that as and when we’re ready, we’ll talk about that. On the electric 3-wheeler. I think we are working on the L5 and as and when we are ready to launch that, we will talk about that. So clearly, product development focus will continue. And as we get closer to the launch, then we’ll talk more about it.

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Okay. Are we targeting any specific numbers that we would want to do each year going forward. I mean the number of models with respect to new models.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

No, it’s not categorized by that. I think we would rather focus on the customer, what the customer needs and focus on kind of growing our volumes and our market share, that’s kind of what will drive that. So we will continue to — you’re going to continue to see this.

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Just a follow-up question on the new models also, are we considering bikes segment as such in near future?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

I think it’s a little premature to talk about that. Like I said when it comes to product strategy. I would rather talk about it as we get closer, not for anything else, but the team is working on a myriad of product strategy related stuff and from a competitive advantage, we would like to get talked about it as we get closer.

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Thanks, Nagesh.

Operator

Thank you. The next question is from the line of Chirag Shah from Edelweiss. Please go ahead.

Chirag Shah — Edelweiss — Analyst

Yeah, sir. Thanks for the opportunity again, just a follow-up on the profitability of the subsidiary. The improvement that we have seen in the quarter. Yeah, can be attributable to the ramp up in business. Right. That is the current the EV 2-wheeler volumes, is that right understanding. So around INR12 crore of EBITDA that we have generated versus same time last year largely flattish. So the question is, sir, as you ramp up this revenue this INR242 crores of subsidiary revenue, how should we look at this operating leverage benefit?

Dalpat Jain — Group Chief Financial Officer

So Chirag, I’ll start and maybe Nagesh can talk on a broader part, but companies focus as we have spoken in several of the last few quarters calls also, profitability and Greaves has been talking about it that we don’t want to burn too much of money, but at the same time, our focus will remain on also continuing the market leadership and being in the top 4 or 5. So in the short to mid-term, the focus will not be only on improving the margins or increasing the profitability, it will also be to reinvest those profit and build the brand, reinvest on the marketing activities and some of the fundamental things that we are working on. So from margin point of view, yes, this quarter we have seen close to INR11 crore in the E-mobility business as you saw from our financial results, the EBITDA, and that was a result of operating efficiency and also the gross margin improvement, but going forward, company will also do investment in the marketing activities.

Chirag Shah — Edelweiss — Analyst

Okay. So directionally the operating leverage that we generally look at, we have still not hit the sweet spot to focus on operating leverage. That is the right way to look at it? The reinvestments will be reasonably high.

Dalpat Jain — Group Chief Financial Officer

That’s the [indecipherable] from a fixed expenses point of view is there and that is kicking in and we’re going to continue building on that, but on the expenses, which are going to drive the revenue that is where we will continue to invest, that’s an area where we have to do a lot more as we go forward.

Chirag Shah — Edelweiss — Analyst

And sir, what are the areas that you’re looking to, if you can just broadly indicate?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yes, I can take that. So clearly one area would be the manufacturing capacity and which we continue to, like I said, we’re going to do 50,000. Other one is the localization working with our suppliers and bringing better new products, right, so product technology will be the second, Third, and probably most important will be the talent, right. We continue to keep adding talent both from India and global and building a strong team of professionals who have not only got us here, but also will take us to the next level. So we will continue to invest on all of this and keep investing in the [indecipherable] mobility business.

Operator

Thank you. The next question is from the line of Aditya Joshi from Alchemy Capital Management. Private Limited. Please go ahead.

Aditya Joshi — Alchemy Capital Management Private Limited — Analyst

Good morning. Thanks a lot for your time and congrats on a good set of numbers. My question is with respect to the dealer network, where it is right now and where do we expect this by the end of year in E-mobility 2 wheeler?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, I can take that. At a overall level, we are over 600 and let me explain that, that includes the 2-wheeler network, right, under the brand name of Ampere, which Ampere Exclusive plus the EV network which is [indecipherable] plus Greaves retail network [indecipherable] and we’ll continue to keep adding that, every month we are continuing to add — the good part is we are getting a lot of interest from dealer partners across the country. Point number one. And so that will continue and we will add, we are very cognizant of 2 things. We e want to make sure, a dealer partners are viable are successful. Hence, we will add as and when the demand in that particular city exceeds, right, point number one. Point number 2 in some cases what we’re doing is we’re taking existing dealers whom we are very grateful because they’ve been with us from day one, but they may not have the bandwidth to grow to the next level, so they along with a local partner, right, have to be expanded there. So we are using various strategies especially on 2-wheeler side to grow it, either through the exclusive Ampere network or through the [indecipherable] retail network. So that’s one thing and MLR through the 3 wheeler network is just beginning to ramp up from almost nothing, we have grown into 50-plus now and it will continue to. So you will see us ramp up on 2-wheeler Ampere, E-rickshaw Ele and on the 3-wheeler MLR product. On all the 3, you will see the network growing across. Last but not the least, we are a firm believer especially in 2-wheeler that not all the business happens just buying old brick and mortar stores. It’s a digital show. Meaning, our experience is showing that the customer is almost doing 50%, 60% plus of the work online before and doing the research. So how do we also have access to the online and what we call the digital, the physical towards the digital stores, right, is I think also the focus kind of everybody. We believe this business will need a combination of both to make[indecipherable]

Aditya Joshi — Alchemy Capital Management Private Limited — Analyst

Got it, sir. And sir, second question with respect to your recently announced tie up with Bounce Infinity, sir, can you please explain this tie up in retail and financial discipline.

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, at a high level I can cover in the interest of time, so we have been very clear from day one that in some of these faster moving technology areas, whether it was fast-charging or battery swapping, especially in the case of battery swapping where it could be asset heavy that we would go with partners, right. So our — we’ve been working with a series of partners both of those companies that you talked about right. And our products, as you know, we were one of the few people who got a removable battery in the first place from our innovation standpoint, now battery swapping is a logical next step and we are obviously willing to offer that to customers who want that, right, so you will see us more and more working with partners like that in certain areas where we may not want to take on the investment assets, right, from an asset standpoint, right. So I think you will continue to see that. So for us, it’s strategically of making sure that our B2B or B2C customer, if that’s what they want, we’ll deliver it through our partners.

Aditya Joshi — Alchemy Capital Management Private Limited — Analyst

Got it, sir. So then the capital will be invested by Bounce and not us, right?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah, individual. Yes. Our model is, it could be a combination. But let us see how it develops. Yes. A lot of, lot of discussions underway. But yes, our principle is in some of these areas, we would not be capital heavy, let’s put it that way.

Aditya Joshi — Alchemy Capital Management Private Limited — Analyst

Okay. And this would be for both 2 wheelers and [indecipherable].

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yeah. Yeah, ultimately for both, yeah, it will probably start with — from 2-wheelers first.

Aditya Joshi — Alchemy Capital Management Private Limited — Analyst

Okay, sir. Thank you so much for your time and all the best.

Operator

Thank you. The next question is from the line of Bipin Seth [Phonetic] from [indecipherable] Capital. Please go ahead.

Unidentified Participant — — Analyst

Hi, good morning. I hope I’m audible.

Operator

Yes, sir.

Unidentified Participant — — Analyst

Okay. So just a quick check on the electric mobility business we’ve done in the quarter ended March ’22, as per the segment numbers, INR237 crores of revenues, right?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

That’s correct.

Unidentified Participant — — Analyst

And some — so what kind of, I know this is across various products, various lines at more than one location, but still a rough ballpark of what kind of capacity utilization does this or load on the lines, does this correspond to, are we at 50%, 60%, 80%, 100%, where are we?

Dalpat Jain — Group Chief Financial Officer

So, Bipin, this is made up of main product segments, 2 wheelers and 3 wheelers [indecipherable], right. In the 2-wheelers, demand is higher than supply, right, so that is where the capacity utilization, and that’s where the company has been ramping up from 10,000 to now close to 20,000 a month that what Nagesh was talking about. So there and when I’m talking about capacity utilization, it is not only the element of what manufacturing capacity we have, it is also linked with all the supply chain partners.

Unidentified Participant — — Analyst

Yes. The vendor capacity —

Dalpat Jain — Group Chief Financial Officer

Exactly — able to take it. So there, I would say that we are at the maximum level of capacity from a supply side point of view. There, the issue is more with the demand. Similarly in Ele also, the supply is at a higher end in terms of the overall utilization.

Unidentified Participant — — Analyst

Right. So, this corresponds to an annual run rate. Now I know I shouldn’t be doing this. But just theoretically this corresponds to an annual run rate of about INR1,000 crores of revenue, right. And earlier in the call, somebody mentioned that the simplest way to look at the EV business is to just look at consol minus standalone and when I do consol minus standalone on your balance sheet numbers, okay, the net block, which I would assign to the EV business is just about INR40 crores, INR45 crores. I think it’s about INR40 crores, if I just take the difference of the 2 net block numbers. So you mean to tell me you can run a INR1,000 crore EV business with a INR40 crore net block in the EV business?

Dalpat Jain — Group Chief Financial Officer

Yeah. So there are 2 parts there. One, as you know, this was an inorganic acquisition in 2018, and close to INR200 crores were paid, which as you know in consolidation gets eliminated. And as part of that, there was a lot of R&D and machinery technology, et cetera, which had come as part of that.

Unidentified Participant — — Analyst

Yes. So lot of IPR which was capitalized on the balance sheet, which doesn’t figure in net block, but I’m just looking at it from a manufacturing perspective,

Dalpat Jain — Group Chief Financial Officer

No, there’s a second part also. The second part is related to Ranipet plant, which was, as you know, the Greaves had that and Greaves had sold it to GNPL. So when you’re doing consol minus standalone, this transition also gets eliminated into inter-company. So close to INR100 crores would be the right number. If you look at —

Unidentified Participant — — Analyst

Still a 10x gross block to revenue, so after all, how much of value add can you achieve by being that intensive?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Well, that is where there is lot of new investment as we were talking in the earlier call, right, which is going to go into expansion of capacities, bringing some of the strategic part in-house and that’s where the investment is being planned as we go forward. So that investment piece for the E Mobility will continue,

Unidentified Participant — — Analyst

I understand. Now, that makes sense. Thank you, sir.

Dalpat Jain — Group Chief Financial Officer

Thank you. Bipin. Lisan [Phonetic], we can close the call with this, maybe we can hand over to Nagesh for closing remarks.

Operator

Sure sir. Mr. Basavanhalli, can you give your closing remarks?

Nagesh Basavanhalli — Managing Director and Group Chief Executive Officer

Yes, thank you. Thank you all for your continued interest and we’d like to thank each one of you. And in case you have additional queries, you can always reach out teams. Thank you so much. Have a great day.

Dalpat Jain — Group Chief Financial Officer

Thank you.

Operator

[Operator Closing Remarks]