Pricol Limited (NSE: PRICOLLTD) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Nupur Jainkunia — Moderator
Vikram Mohan — Managing Director
Priyadarsi Bastia — Chief Financial Officer
P. M. Ganesh — Chief Executive Officer
Analysts:
Khush Nahar — Analyst
Aman Agrawal — Analyst
Unidentified Participant
Dhiraj Kaswan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q3 and Nine-Month FY ’25 Conference Call of Pricol Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
At this time, I would like to hand the conference over to Ms. Jainkunia from Valerm Advisors. Thank you, and over to you, ma’am.
Nupur Jainkunia — Moderator
Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Nupur Kunia from Advisors. We represent the Investor Relations of Pricol Limited. On behalf of the company, I would like to thank you all for participating in the company’s earnings call for the 3rd-quarter and nine months ended for financial year 2025. Before we begin, let me mention a short cautionary statement.
Some of the statements made in today’s con-call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by information currently available to management. Audiences are cautioned not to place an undue reliance on these forward-looking statements in making any investment decisions. The purpose of today’s earnings call is to educate and bring awareness about the company’s fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We have with us Mr Vikram Mohan, Managing Director; Mr PM Ganesh, Chief Executive Officer and Executive Director; and Mr, Chief Financial Officer of the company.
Vikram Mohan — Managing Director
Without any further delay, I request Mr Vikram Mohan to start with his opening remarks followed by financial and operational highlights of the company. Thank you, and over to you, sir. Thank you. Thank you, ma’am. Good evening, everyone, and a warm welcome to our Q3 FY ’25 earnings call. The presentation has already been uploaded and I hope all of you have had a chance to see the same before this call. As all of you are aware, the automotive industry is seasonal and the quarter three is always the weakest quarter in the financial year. In-spite of having a weak quarter in the automotive industry, your company has performed reasonably well under the conditions.
Our revenue for the quarter three is INR6,159 million with an EBITDA of million with an EBITDA margin of 12.67%, PAT of $414 million with a PAT margin of 6.73% with a basic EPS of INR3.40 rupees. At a consolidated level, our long-term borrowings continue to stand as nil. Over, we will move straight to the question-and-answer session. May I request participants in the interest of democracy to restrict yourself to one question and once you receive the answer for the same, to go back to the question queue so that everyone in the call has a chance to ask questions. Thank you.
Questions and Answers:
Operator
Thank you. Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. And if you wish to withdraw yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles first question is from the line of Kush Nahar from Electrom PMS. Please go-ahead.
Khush Nahar
Am I audible?
Operator
Your voice is little low. Please use your handset.
Khush Nahar
Is it better now?
Operator
Yeah. Please go-ahead with your question, sir.
Khush Nahar
Hi, sir. Yeah. Thank you for the opportunity. So my first question was…
Vikram Mohan
Can you be a little louder, please? Your voice is stable.
Khush Nahar
Yeah. So my first question was regarding the demand. So like we see this quarter, we have grown 11%, which has been considerably on the lower side in the past eight, 10 quarters. So what kind of growth are we seeing going ahead? And on — from FY ’26 since after the consolidation, we are well-above our target of INR3,600 of revenue that we have envisaged. So what type of growth we see FY ’26 onwards also on a consolidated level?
Vikram Mohan
This quarter demand was a little muted in the entire industry. And in addition, we had some supply-chain issues, which resulted in lower sales. We are expecting to grow at around between 13% and 15% based on our product mix, new product introduction and market demand.
Khush Nahar
Okay, sir. Thank you.
Operator
Thank you. Next question is from the line of Aman Agarwal from Capital. Please go-ahead.
Aman Agrawal
Sir, thank you for the opportunity. My question was on the acquisition. So like if you can briefly talk about the strategy for this acquisition and like once the deal is complete, what will be our strategy and plan for next three to five years? Like since TVS is the largest customer, so like diversifying from that as well as focus on growth from that segment as well as margin improvement. So like if you can talk a bit on that soon.
Vikram Mohan
Aman, I’ll break that up into three parts, the answer for the same. The rationale for the acquisition, I’ve always maintained over the last two years that we are looking at an acquisition where in a commodity space and plastics is something that we understand very well in Precol and we are masters in plastics. And we want to acquire a company with a higher — with a low TTM or time-to-market as we say in our industry because in our current products, from the LOI for the business to the start of production is anywhere from 30 to 36 months, we wanted to acquire a business with a 12 to 14 month TTM and we came across this asset, which was well-run belonging to the TBS Group with good value systems, good-quality and good engineering.
The revenue from the TBS Group is about 50% at this point in time. The plan is to significantly grow this business and move from a component supplier to an FSS business. The total business that is expected to be done by this company this year is about INR800 crores with an EBITDA of about INR70 crores and we have acquired the business at an adjusted EBITDA multiple of 3.5 times, 3.5 times EBITDA multiple, which is value-accretive to our shareholders. The growth plan, as I mentioned, is to move from more components to more engineered products, which is to be a FSS plastic supplier. The — this company already has some world-class customers as its customers and I personally met all of these six customers and they are willing to grow the business and expand the business. And probably in a quarter from now, once we take-over management and start the planning process, I will be in a better position to comment about a three to five-year outlook. But our plan is to double the business to about or somewhere in the region of INR1,700 crores over the next three years. Both organically and inorganically?
Aman Agrawal
Okay. Understood, sir. That was really helpful. Just a follow-up on that. So like how much would be the domestic revenue and how much would be exports and like incrementally would we focus more on domestic or exports and like since we have no,
Vikram Mohan
There is no — there is no export revenue in the company. It is entirely domestic. Once we take control and one or two quarters down the line, we will explore what are the possibilities for export revenue. But exports in a plastic commodity is the chances are much lower than us unless we get into an FSS mode.
Aman Agrawal
Right. And sir, can we sell it to our existing customers like we have a good lineup of two-wheelers.
Vikram Mohan
That was the logic because being a TVS company, they were restricted from selling to other two-wheeler makers and other OEMs with Precol coming on-board, we will now pitch this business to all our other OEMs where we are working.
Aman Agrawal
Okay. Understood, sir. I’ll get back-in the.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. Next question is from the line of Vipul Kumar Anukh Chansha from Sumangal Investments. Please proceed.
Unidentified Participant
Hi, thanks for the opportunity. So sir, can you comment on this recent two tie-ups CGI studio and TYW. So what will be — how they will be beneficial to us and so if you can briefly explain
Vikram Mohan
It all tie-ups, Mr Shah. CGI studio and have been working for a long-time and TYW and also have been working for one year. This is more on technology and graphics and animation for our new projects. This is not a joint-venture. This is only to enhance our technology in our products. And this is not new relationships, these are old relationships.
Unidentified Participant
Okay. So we just paid the royalty or something like that.
Vikram Mohan
It’s a case-to-case basis, development costs are paid and there is some transfer of technology.
Unidentified Participant
Okay, sir, I’ll rejoin the queue. Thank you.
Operator
Thank you. Next question is from the line of Diraj Kaswal from Arara Investments. Please go-ahead
Dhiraj Kaswan
Hello and hello?
Operator
Your voice is not clearly audible, sir. Please use your handset.
Dhiraj Kaswan
Hello?
Operator
Yes, sir. Please proceed.
Dhiraj Kaswan
Yes. Okay. First of all, congratulations on the acquisition. And next, I would want to know that 50% of the revenue of comes from TVS and other revenue comes from the other where they supply. So how confident are you that you won’t lose those customers as the company has left the umbrella of TBS and it’s joining precall now.
Vikram Mohan
I have personally visited all the other six customers that contribute to the bulk of the business. We are very happy with the company and its products and strengthening the business and growing?
Dhiraj Kaswan
Okay. Thank you. And another follow-up was that you said that you assume the company is going to grow at 13% to 15%, that is your estimate and you want that to increase Sundaram, you want to double the revenue in the next three years. So around 26% 27%,
Vikram Mohan
13% to 15% is the growth rate for with new product launches and market growth and product mix. Sundaram Auto Components Limited, which will henceforth be referred to as precall precision products with effect from 1st February. We want to take the business to about INR1,600 crores to INR1,700 crores over the three years through organic and inorganic means.
Dhiraj Kaswan
Okay. So that 13% to 15% growth estimate is including Sundaram or is it just for the
Vikram Mohan
Excluding, is it for the business as it stands today for Limited? Christian Products, which is how Auto is going to be called, we are looking at doubling the business over a three-year period to about INR1,600 crores to INR1,700 crores, which is far higher than a 13% to 15% growth rate.
Dhiraj Kaswan
So and the revenue of Sundaram will start flowing from which date?
Vikram Mohan
Tomorrow is the date of closure. So all goes well from 1st of February, we it becomes a subsidiary of.
Dhiraj Kaswan
Okay, that’s great. Thank you so much.
Operator
Thank you. Next question is from the line of Aman Agarwal from Carnalian Capital. Please proceed.
Aman Agrawal
Sir, thank you for the follow-up opportunity. So my question was on the ACFMS business, like that business, how are we seeing the demand in domestic as well as exports market? And we were facing some issues in the exports market over the last one, two years in this business, right, some slowdown and all. So how is that behaving now? And like are we seeing some green shoots in that segment and any outlook on that.
Vikram Mohan
Exports have actually become even more headwinds we have faced in exports and that is a cause of concern for us. We have seen offtake. We have not lost business or share of business, but the volume of business has come down because the production of the OEMs have come down in our markets, but that will be offset from the next, let’s say, about eight to 12 months or so with our disc brake business starting to pick-up volumes.
Aman Agrawal
Sorry, sir, discrete business will start in what period sir for us?
Vikram Mohan
Pardon me?
Aman Agrawal
When will the revenue start from the disc displace business or it?
Vikram Mohan
Disc brake revenue has already started. We have started supplies, but the ramping-up is happening, but in about eight to 12 months, we will start reaching mature large volumes.
Dhiraj Kaswan
Understood, sir. Sir, one final question from my side. So if I see this quarter’s employee cost, it has increased despite the lower revenues in this quarter compared to last quarter. So like is there some one-off or like this is the recurring run-rate and like any reason for this increase in employee cost for this quarter?
Vikram Mohan
As a percentage of — as a percentage of revenue, it is the employee cost. It is not a absolute number because the revenue has come down. Typically always this happens in every like in-quarter three of every year, this is something that you will see.
Aman Agrawal
Great, sir. And why is that like any reason for this quarterly phenomenon?
Vikram Mohan
No, because quarter three of every quarter three, there are — the revenue is always lower in the industry. Automotive industry is always — Q3 is post-Diwali there will be a drop-in all customer shutdown and the revenue is lower and that’s the standard practice in the industry for decades.
Aman Agrawal
Understood, sir. And sir, like any update on the Honda order, like
Vikram Mohan
Can you please come back onto the queue, Mr Agarwal, because I think already you’ve asked a few questions. Let’s give the chance to other people to ask questions.
Aman Agrawal
Sure. Thank you.
Operator
Thank you. Thank you. Next question is from the line of Desai from Emkay Global. Please go-ahead.
Unidentified Participant
Good evening, sir. Congratulations on the acquisition and thanks for taking my question. So firstly, just a clarification, the 13% to 15% growth number that you mentioned that would be more near-term, so Q4 or maybe next year as well.
Vikram Mohan
So we are expecting this growth rate over the next couple of quarters, 13% to 15% growth rate — steady growth rate we are planning to maintain over the next couple of quarters.
Unidentified Participant
Got it. That’s helpful. Secondly, on Motor Component margins, you guided for about INR70 crores of EBITDA on a top-line of about INR800 crores, implying about high single-digit sort of margins, whereas we have placed quite a bit above that. How do you see margins progressing in this entity over the next couple of years and what would be the drivers for that?
Vikram Mohan
Yeah. We are hoping over the next couple of quarters to increase the margin by about 200 basis-points, which is why we have bought it at a lower EBITDA multiple for it to be value-accretive?
Unidentified Participant
Understood. And this would be largely via efficiency improvements or any other seasons?
Vikram Mohan
Primarily during efficiency improvements, productivity improvements and upgradation of certain because the company in the last two years ever since they kind of started looking at divesting non-core businesses, not much of attention has gone into this business.
Unidentified Participant
Okay. Understood. Just final question, if I may squeeze in. Any other thought process on more M&A activity have you see that?
Vikram Mohan
I just mentioned earlier, we are looking at growing our plastics business, both organically and inorganically. And in? Recall at this point of time, we don’t have anything in the office.
Unidentified Participant
Understood. Thank you so much.
Operator
Thank you. Thank you. Next question is from the line of Kush Nahar from Electrom PMS. Please go-ahead.
Khush Nahar
Hi, sir. Thank you for the opportunity again. So first question was, sir, how much debt would be there on the books after the consolidation?
Vikram Mohan
And I will request my CFO, what would be the consolidated debt post closure of the Sundaram transaction on the consolidated balance sheet.
Priyadarsi Bastia
On a consolidated basis, as we stand today, there is zero-debt. After the closure of Solaram deal, we will hardly have INR80 crores of debt consolidated, including Sugaram, including Sungaram, sir, we’ll have INR18 crores of debt.
Khush Nahar
Okay. Okay. And sir, second bookkeeping question just was that our other expenses have been increasing maybe 3%, 4% for a couple of quarters, two quarters. And on 3rd-quarter, it’s around 6% de-grown. So is there any particular reason or is this the operational efficiencies that is kicking-in?
Vikram Mohan
Operational efficiencies and one-off, we use consultants to do certain technology agreements and also for this deal, we have engaged for due-diligence and everything we have engaged people. These are the costs.
Khush Nahar
I’m saying it has reduced by 6% in this quarter. So that’s because of the operating leverage only?
Priyadarsi Bastia
Yeah, yeah. See, you got it correctly. In Q3, it has come down. Q2 it was a little higher. Q3 because there are couple of operational efficiency which has come in and some cost-reduction initiatives which we have started because of that the cost has come down. So we can assume that 6.8% broad of revenue as a percentage should be maintained going ahead instead of 8%.
Khush Nahar
Yeah. Okay. Thank you.
Operator
Thank you. Next question is from the line of Suraj, retail investor. Please go-ahead.
Unidentified Participant
Yes, sir. Just one thing that I wanted to understand. Who are the biggest competitors that you’re facing in the industry? Is it the auto OEMs or is it the auto ancillary manufacturers? And secondly, what is the competitive advantage that you have as compared to your competitors? Is it in terms of the network effect or technological effect? So these are two things that I wanted to understand.
Vikram Mohan
We still hold the largest market-share for two-wheelers and off-road vehicles and commercial vehicles in the driver information system, which is our principal line-of-business. It’s a — it’s a combination of quality, cost, delivery, service and technology, which is why we have the lion’s share of the market. Our competitive landscape is companies like continental companies like companies like Visteon and companies like Minda, these are our four principal competitors. In-spite of which we are maintaining a very healthy 40-plus market-share in two-wheelers and 80-plus percent market-share in commercial vehicles and off-road vehicles, it’s only because of our continuous investment in technology, even today, out of our 1,000 employees in total white dollar, 480 employees are in just an R&D and technology.
Unidentified Participant
Okay. Thank you so much, sir.
Vikram Mohan
Thank you.
Operator
Thank you. Next question is from the line of Richa from Equity Masters. Please go-ahead.
Unidentified Participant
Sir, thank you for the opportunity. My question is related to what share of revenue is coming from the electric vehicle segment? And also if you could just give some commentary on what’s happening on the BMS licensing agreement and the plan to manufacture in-house?
Vikram Mohan
I’ll request our CEO, Mr Ganesh, to answer both those questions. On the BMS and on the electric vehicle, what percentage of sales of our total sales?.
P. M. Ganesh
Hi, good evening, Richard. See, the EV contribution has been continuously increasing on the driver information system space. We are a major supplier to all the traditional OEMs like Hero Motor, Motor and also the judge. So our pie on EV has been continuously increasing. But of course, some degree of maturity will be reached after 12 months because all these OEMs are evolving in terms of the volume. But the pie of EV is continuously increasing is number-one. Second thing is on the battery management,
Unidentified Participant
Sorry to interrupt, will it be like below 10% or higher than that?
P. M. Ganesh
Currently, it is below 10% because if you see the total pie of the EV compared to the total two-wheeler manufacturing is still quite low and it is evolving. Okay. Okay. We are very careful in the penetration into the startup EVs primarily because of lot of fluctuation is happening currently in the volume. So secondly, our battery management system is under development and it is under testing with few of our key OEMs. Maybe H2 of this year, we will start some business on the BMS. And next year would be a full-year of the battery management system sales..
Unidentified Participant
Sir, any kind of quantitative guidance on what kind of opportunity we are looking at here?
P. M. Ganesh
It would be a little difficult for us to talk about the numbers and value, but what we can tell you is that it is currently under testing with our key OEMs.
Vikram Mohan
Unless it is tested and passed, we will — and we will not be able to indicate any volumes.
Unidentified Participant
Understood. Thank you so much.
Operator
Thank you. You. Next question is from the line of Siddharth Chabra from Minarva Asset Advisors. Please go-ahead.
Unidentified Participant
Hi, can you give me the asset turns and the working capital as a percentage of sales for Auto components.
Vikram Mohan
One minute, please. I’ll hand it over to our CFO.
Priyadarsi Bastia
Can you please repeat the question? Asset terms of or Sularam?
Unidentified Participant
No, asset terms of Sundaram and the working capital as a percentage of sales for Sundaram, what’s the number there?
Priyadarsi Bastia
So working capital, they work with 20 days of working capital, gentlemen. And asset turns, it is very asset-light entity because all the investments were very old investments. So asset terms are pretty high there.
Unidentified Participant
Can you give me a number? Is it possible?
Priyadarsi Bastia
Assets are pretty old. That’s not the —
Vikram Mohan
I don’t think he has already made-for that right now on the call. I can send in — if you can send in an email to our Secretarial Department, our CFO will be able to answer.
Unidentified Participant
Okay. Yeah, I’ll do that. Now secondly, can you tell me regarding the TFT clusters within two-wheeler market. Can you give me an idea about how do you see the ramp-up in penetration there and what the current penetration would be and how do you see the ramp-up, let’s say, next three to five years probably?
Vikram Mohan
TFT cluster again is an evolving technology in the two-wheeler. Today, 5% to 7% of our revenue is coming from TFT clusters. And as more EV is going up, TFT is something is going to become a major feature in all these vehicles. Not only on the EV, in the recent times, even IC engine has started adopting the TFT primarily because of the flexibility, whatever it offers in terms of many features that can be added in quick time. So we foresee that it is going to have good growth in the next two years of — if you remember five years back, many of the mechanical clusters got converted into LCD and then today the same thing is happening, moving migration happening from LCD to TFT,
Unidentified Participant
Okay. And by penetration, I meant in the overall industry, like you gave me the revenue figure, that’s great. That will be also helpful. But in terms of the industry, in terms of two-wheeler, how many units would be having the TFT? And also you said except EV also there is adoption coming. So in — within that, where-is it coming, scooters, bikes, where are you seeing this penetration increasing?
Priyadarsi Bastia
We are seeing TFT adaptation both in the scooter and motorcycle, both. Okay. It is not because of it is a scooter, EV or IC or motorcycle. TFT is a convenience for people to have more features like the onboard navigation or connectivity, Bluetooth, Wi-Fi, screen mirroring, many of the features if you have seen, already has launched that in the market with multiple two-wheeler customers. Okay. Now if you ask me two-wheeler TFT in specific, we are quite proud to say that nearly 80% of the TFT business of whatever is there in the two-wheeler is with.
Unidentified Participant
Okay. So 80% of TFT two-wheeler industries with.
Vikram Mohan
TFT, 75% to 80% market-share is maintained by.
Unidentified Participant
Okay. That’s great. I’ll rejoin the queue, but just before I go, can you give me average price of the TFT?
Vikram Mohan
I think already a lot of questions has gone. I think there are a lot of more people waiting in the queue, please.
Unidentified Participant
Okay, right. I’ll rejoin. That’s fine. Thank you.
Operator
Thank you. Next question is from the line of Praveen Yadav, an Individual Investor. Please go-ahead.
Unidentified Participant
Thank you for the good numbers and opportunity to ask.
Operator
MR. Praveen, may we please request you to use your handset?
Unidentified Participant
Yeah. Sir, can I — can you hear me now?
Operator
Yes, please go-ahead.
Unidentified Participant
Yeah. Sir, I have two questions. The first is about the product mix. Basically what is the volume and revenue product mix in terms of two-wheeler, passenger vehicle, commercial and off-road vehicles? And my second question is about how we are progressing on e-cockpit commercialization. Are we needed to get any order from any customer in the near-future?
Vikram Mohan
To give you a rough product mix in terms of vertical, this is little rough. 65% of our revenue comes from the two stroke three-wheeler if you see on the automotive side 65% to 70% of the total India vehicle production comes from the two-wheeler. So this is one. And follows the same standard of what the industry has in terms of percentage. That is why we are a very balanced company cutting across all segments of the market. And second, 10% of our revenue approximately comes from the commercial vehicle segment. Okay.
Now I’m including tractors also, though it is not a part of the automotive since we are a major supply to tractors, 5% to 7% comes from the tractor industry off-road vehicle, 90% of the market-share is with Pricol on the off of highway vehicle, the construction equipment, where 7% to 8% of our total pie comes from the off-road vehicle and the remaining 10% comes from the passenger vehicle segment.
Unidentified Participant
Okay, got it, sir. Thank you. The other one is about the e-cockpit commercialization. Can you please just share some please on that?
Vikram Mohan
Yeah. I will break-up into two. One is you ought to be on the infotainment before we go into the. Infotainment already actually is under testing with certain key four-wheeler customers at this point of time. We are jointly evaluating our infotainment. Step two would be, in parallel, we are developing the e-cockpit, which will have the integrated connected cluster with the infotainment. That is also under testing. In fact, the good news is even two-wheeler now has started looking into the infotainment system in a larger manner and our product is getting validated with some of the two-wheeler customers as well on infotainment. We hope from the next financial year because this takes a longer time for the software maturity and the testing which has to happen at our place and the customer place. So we expect from next financial year, not from ’25, ’26, ’26, ’27 onwards, we expect good amount of revenue to come from the infotainment and better.
Unidentified Participant
Okay, great. Thank you so much, sir.
Operator
Thank you. And the next question is from the line of Vismit Nayak from RW Advisors. Please go-ahead.
Unidentified Participant
Thank you. Sir, you hinted at loss of sales due to supply-chain issues and your initial question — initial answers. So can you please quantify this? And are these issues largely over with?
P. M. Ganesh
These issues are getting under control, about 50% mitigation has been done and the other 50% mitigation will happen in Q4 as we speak. And supplies will be normalized from Q1 of FY ’26.
Unidentified Participant
Okay. Understood. So the 13% to 15% precalls guidance is adjusted for this also I’m assuming.
P. M. Ganesh
Yes.
Unidentified Participant
Okay. Another, sir, did I — just a clarification that exports will remain subdued for the next eight to 12 months. Is that — did I hear it correctly?
P. M. Ganesh
At least for eight quarters,
Unidentified Participant
Oh, eight quarters. Okay. So domestic — domestic mostly plus SAC ramping-up from high single to low-double-digit. So we should expect the EBITDA to remain at around.
P. M. Ganesh
Can you repeat again, please?
Unidentified Participant
Yes, sir. So with export remaining subdued and domestic as well as well as SACs ramp-ups on the ramp-up, we should expect EBITDA to be somewhere around 11% to 12%. At least is right.
P. M. Ganesh
Yes. Okay.
Unidentified Participant
Okay. And lastly, sir, what will be the PAT figure for PBT figure for Sundaram?
P. M. Ganesh
Why don’t we comment about Sundaram once the acquisition is completed, we take control because technically, as of today, it is not company.
Unidentified Participant
Sure, sir. Sure, sir. Okay. Thank you.
Operator
Thank you. The next question is from the line of Vipul Kumar Anukh Chansha from Sumangal Investment. Please go-ahead. The line for the current question has been dropped. We’ll move to the next question from the line of Kush Nahar from Electrum PMS. Please go-ahead.
Khush Nahar
Hi, sir, thank you for the opportunity. Sir, my question was regarding Sundaram. Could you elaborate who are our major competitors? And second, sir, what kind of capex we are seeing in and in Sundaram for the next three years?
P. M. Ganesh
Sundaram, we will talk about, like I said, all questions pertaining to Sugaram, broad contours of the deal have been given. Once we complete the acquisition and first three months we work on the company, we would be in a better position to give you more figures of how much capex is required, how much more supply-and-demand, etc. So recall, we are at the far end of a INR650 crore capex cycle, which I’ve been talking about for the last three years. We are at the far end of that last INR200 crores of that capex cycle.
Khush Nahar
Okay. And sir, major competitors for Sundaram, if you can just comment.
P. M. Ganesh
There are plenty of people in the plastics industry. There is the Bharak for example, there is mother in some cases, there is Tata plastics in some cases.
Khush Nahar
Okay, sir. So just how do we plan to compete with these players? Like you know what differentiates
P. M. Ganesh
Usually the company is competing with all of these players and making money. So we will continue to do the same thing and do it better.
Khush Nahar
Okay, sir. Thank you.
Operator
Thank you. Participants to ask a question, you may press star N1. Next question is from the line of Siddharth Chabra from Minarva Asset Advisor. Please go-ahead.
Unidentified Participant
Hi. So we are talking about the capex that last three years, this INR600 crore cycle is going to be finished. Now do you have — is it possible to give any idea over the next three years what the kind of capex is going to be? Any range possible?
Vikram Mohan
Now we have just gone through a heavy round of capex. Now we will go capex light unless there is any inorganic growth before going through the next phase of growth.
Unidentified Participant
To maintenance capex and that would be in the range of
Vikram Mohan
So about INR600 crores — our maintenance capex is about INR100 crore to INR120 crores a year.
Unidentified Participant
Okay. So unless there’s acquisition, this is going to be your early run-rate going-forward.
Vikram Mohan
Yes. Sundram, of course, once it becomes precall Christian, we will then work-out the capex plans for that company and in about three to six months, we will have a capex plan for that company.
Unidentified Participant
Okay, right. And earlier, so the EBITDA margins were being discussed going-forward and you said that it should be expected in the 11% to 12% range.
Vikram Mohan
So we always maintain that we will be on a consolidated basis at around 13%. Now with Sundaram joining the stable, it is going to be a lower average because the plastics business is a lower average. But in terms of rupee EBITDA, obviously, it is going to go up.
Unidentified Participant
Okay, but you maintain the overall margin at 13%.
Vikram Mohan
Overall margin margin of will be maintained. But when Sundaram consolidate, it is going to come down lower because plastics is a single-digit margin and not a double-digit EBITDA product.
Unidentified Participant
Okay, right. All right. Okay. Thank you
Operator
. Thank you. Next question is from the line of Smit Shah from Monarch Network Capital. Please go-ahead.
Unidentified Participant
Hi, sir. Sir, my question is on the ECFMS segment. So what kind of growth can we expect in that segment and what are the levers of growth in that segment?
Vikram Mohan
Levers of growth in the segment will be the fuel pump module, which will ramp-up over the next year and disc brake, which will ramp-up in the next 12 to 24 months. These will be the major growth drivers coming to the ACM segment in the coming quarters.
Unidentified Participant
Okay. Sir, disbrakes we have started the supply right, but not in a meaningful manner right now. That is the status, right?
Vikram Mohan
No, we have started supplies already of the disc brake and our product is all the field. Now it is in a ramp-up phase.
Unidentified Participant
Okay. Okay. Thank you.
Operator
Thank you. Next question is from the line of Gupta from White Pine Investment Management Private Limited. Please go-ahead.
Unidentified Participant
Sir, what is the current penetration of TST? TFT clusters in two-wheeler and going-forward, say, in next two to three years, what will be the TFT penetration?
Vikram Mohan
I think this question was answered earlier today by our CEO.
Unidentified Participant
Yes. I joined late. Okay.
Operator
Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for the day. I would now like to hand the conference over to the management for the closing comments.
Vikram Mohan
Thank you. Thank you very much all for your participation in this conference and look-forward to seeing you in the full-year FY ’25 results conference call, where we will also be able to throw a little bit more light on our new acquisition, which would be completed in our management control by then. Thank you very much. Good evening..
Operator
Thank you. On behalf of Preco Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.