Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Pricol Limited (NSE: PRICOLLTD) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Vikram Mohan — Managing Director
Analysts:
Jatin Chawla — Analyst
Purvangi Jain — Analyst
Unidentified Participant
Sahil Sanghvi — Analyst
Hitesh Goel — Analyst
Aman Agarwal — Analyst
Khush Nahar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY26 conference call of Precold Limited. As a reminder, all participant lines will be in the listen only mode. There will be an. Ladies
Jatin Chawla — Analyst
And gentlemen, good day and welcome to the Q4FY26 conference call of Precold Limited. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this call, please signal for an operator by pressing STAR and then zero on your touchstone telephones. Please note that this conference call is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorum Advisors.
Thank you. And over to you ma’. Am.
Purvangi Jain — Analyst
Thank you. Good evening everyone and a very warm welcome to you all. My name is Purvangi Jain from Ballarum Advisors. We represent the investor relations of Brickall Limited. On behalf of the company, I would like to thank you all for participating in the company’s earnings call for the fourth quarter and financial year 2026. 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 belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s earnings call is purely 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 the opening remarks we have with us Mr. Vikram Mohan, Chairman and Managing Director, Ms. MPM Ganesh, Chief Executive Officer and Executive Director, Mr. Siddharth Manoharan, Group Executive Director, Ms. Madhura Mohan, Executive Director and Mr. Priyadarshi Bastia, Chief Financial Officer. Without any delay, I request Mr. Vikram to start with his opening remarks.
Unidentified Participant
Thank
Purvangi Jain — Analyst
You.
Vikram Mohan — Managing Director
Thank you very much. A very good evening to one and all on this call today. Namaskar. Ladies and gentlemen, I welcome you to the call to discuss the key financial highlights for the year ending 31 March 2026 and for the fourth quarter of the financial year 2526. The presentation has already been uploaded and I hope all of you have had a chance to see the presentation. Nevertheless, I would like to give you some highlights of our performance on a consolidated basis, our revenue from operations for the quarter that has just gone by has crossed the thousand crore mark to hit 1077.9 crores with an EBITDA of 143.28 crores and an EBITDA margin of 13.29% profit after tax of 73.23 crores with a PAT margin of 6.79% with a basic EPS of Rupees 6 rupees per share for the entire financial year.
For the year ending 31st March 2026 our revenue from operations was just shy of 4000 crores with an EBITDA of 492.91 crores with an EBITDA margin of 12.44% with a PAT of 250.80 crores PAT margin of 6.33% with an EPS of 20.57 rupees per share. I am happy to report that we have been able to achieve these numbers with the dedicated work of our entire team in spite of the multiple headwinds that we faced this financial year. This financial year started off with a semiconductor crisis followed by a rare earth magnet crisis followed by the West Asia crisis.
In spite of all of these headwinds, we have been able to deliver a decent set of numbers to you this quarter and for the entire financial year our revenue from operations on a consolidated basis because of our inorganic actions and organic growth has Resulted in a 43.34% growth quarter on quarter on a comparable basis EBITDA 62.27% increase on a quarter on quarter on a comparable basis and for the entire year we have been able to show increase in revenue from operations of 51.24% and the EBITDA for the entire year has seen an increase on the corresponding prior period of 47.53%.
With this I’d like to move to the question and answers as a matter of fact protocol. We’d like all participants to restrict themselves to one question so that others have a chance to join the question queue and if you have more than one question, we request you to rejoin the question queue and you’ll be given a chance subsequently.
Jatin Chawla — Analyst
Thank you very much.
Vikram Mohan — Managing Director
Before we start the questions, I’d also like to probably take a few minutes to talk about the outlook where I have given quite a cautionary statement as part of the Chairman and Managing Director’s statement after the Board meeting yesterday. The West Asia crisis I think is reaching a peak and the disruptions of the West Asia crisis or due to the West Asia crisis is also starting to hit not just the industry but also the economy quite hard. April was reasonably okay because we had a lot of pipeline inventory, pipeline stocks and raw material that were bought at earlier dates.
The rupee is on a free fall. Polymer prices have gone up by about 55%. Aluminium has gone up by about 62%. The semiconductors have gone up by about 35%. Memory control devices by about 28%. Freight costs are also spiraling out of control both inbound and outbound freight. These are multiple headwinds not just affecting your company, but the industry as a whole and the economy as a whole. All of you would have also seen Prime Minister’s address to the nation on cutting back on consumption to save forex and stop purchasing gold, etc.
So the situation is quite bleak. But nevertheless we are confident of crossing this storm also with the collective efforts of our entire team, the support of our customers, our suppliers and ended by a strong balance sheet. We continue to stay focused on mid to long term growth and are not scaling back on any investments whatsoever of capital nature which will hamper the long term and medium term prospects of the company. We continue to invest as usual heavily on R and D and on technology to keep developing new products and new technologies to keep us ahead of the curve compared to competition.
So while we are not scaling back on any of our critical activities that is going to hamper the growth of the company. We do believe that there will be softening of earnings and slowing of the whole automotive sector on account of these geopolitical headwinds that are actually setting ripples across the world. Without further ado, we can move to the questions.
Jatin Chawla — Analyst
Thank you very much, sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask a question may enter STAR followed by one on your touch tone telephones. If you wish to remove yourself from the question queue, you may enter STAR and two
Questions and Answers:
Operator
Participants
Jatin Chawla
Are requested to please use only handsets while asking a question.
Operator
We
Jatin Chawla
Will wait for a moment while the queue assembles. The first question is from the line of Jatin Chawla from RTL Investments. Please go ahead.
Unidentified Participant
Yeah, hi, good evening and congratulations on a great set of results and thanks for the opportunity to ask the question. My question is how do you see your market share on instrument clusters evolve over the next two to three years? And the context is, you know, when we were doing channel checks, we figured out that in the largest OEM in the country there is A group company which is entering the instrument cluster business in one other oem, there is some new competition that is emerging. So in that context, wanted to understand how do you see your market share evolving over the next two to three years?
Vikram Mohan
Mr. Chawla, good evening. A good question. In fact we just did a complete analysis of our share of business. We got an external market analyst agency to come and do a complete analysis of the market. And in fact just last week we had a workshop on that. We have maintained our market share by volume and increased our market share by value. Competition has always been there. Competition will continue to be there. And what differentiates precol from our competition is our heavy investment on R and D and product development which is keeping us ahead of the curve.
Will we be able to maintain the market share for the foreseeable future? For the next three years, I do not see any different market share because we have got confirmed Lois for most of the programs. So for the next three years, barring degrowth or slowing down of the market, loss of market share is not something that we need to fear about.
Unidentified Participant
Got it. That is very reassuring. Sir. I have a couple of other questions but I’ll come back in the Q.
Vikram Mohan
Yes, please.
Jatin Chawla
Thank you. The next question is from the line of Sahil Sanghvi from Monarch Network Capital. Please go ahead.
Unidentified Participant
Yeah. Hi, good evening. Thank you for the opportunity and congratulations for very good numbers. My question is on the. On the financials. So there is some restatement in the FY25 financials. If you look at the borrowing lines and see what their line items I can point it out specifically if required. But if one can explain what’s the reason for that.
Vikram Mohan
Mr. Sanghi, we’ll get our CFO Mr. Basia to answer that question. There have been some changes in the corporate guidelines on how debt has to be treated. And I would request Priyan or CFO to clarify on that.
Sahil Sanghvi
Mr. Sanvi, good evening. Regrouping is on account of the change in indes. There is a circular which came up saying that the debt leg items to be sold as borrowing which the customer bill discounting and vendor bill discounting which used to be classified under trade payable have been regrouped to borrowing. That is the borrowing you can see in the short term borrowings.
Unidentified Participant
Okay, thank you. I’ll come back in the queue. Thank you.
Vikram Mohan
So just to give you a perspective, barring the supplier discounting and the customer bid discounting which earlier was hitherto treated as trade payables, now actual borrowings as it stands as of 31st March 2026. Net debt is 63.11 crores.
Unidentified Participant
Sure. Thank you.
Jatin Chawla
Thank you. The next question is from the line of Hitesh Goel from Origin Capital. Please go ahead.
Hitesh Goel
Thanks for taking my question. And.
Vikram Mohan
Audible. Can you be a little louder please?
Hitesh Goel
Thanks for taking my question. Sir. First question is actually based on can you give us a revenue for FY26 of the three segments like DIS, AC, FMS and P3L revenue.
Vikram Mohan
Ganesh, our CEO and executive director will answer that question.
Unidentified Participant
I will give you on the total consolidated numbers. An approximate number on the DACVs. Our revenue is about 60% of our total revenue is coming from DACVs and the ACFMS is about 20% and PTL would be about 20%.
Hitesh Goel
Okay. And sir, basically my question is also on the tft, LCD and analog mix. Basically for the industry.
Vikram Mohan
I request you to rejoin the question queue please, if you don’t mind.
Hitesh Goel
Okay, no problem. No problem.
Jatin Chawla
Thank you. The next question is from the line of Aman Agrawal from Carnelian. Please go ahead.
Aman Agarwal
Thank you for the opportunity. My question was basically on the new products and new businesses which we have focused on. Can you please share an update on like the PV digital cluster which we were focusing on with Mahindra and Data Motors. And also like in terms of creating new business on disc brakes and other verticals. Like how is the update there? Basically,
Vikram Mohan
I’ll answer. It’s. It’s okay. Three parts to that question. First, PB Digital clusters. We have grown significantly with Tata Motors. We are yet to make an entry into Mahindra. Today about 75 to 80% of Tata cars are coming out with precoss clusters. And we are increasing our market share with Tata. In fact, the new Safari which we launched. The new Sierra. I stand corrected. Which we launched has even won us an award from Tata Motors for the development which I was happy to receive from the managing director of Tata Motors.
With regard to disc brakes. We continue to make steady progress with our key customers. And we are quite sure that we will meet the forecast that I gave for 2030 in terms of disk breaks.
Jatin Chawla
Thank you. The next question is from the line of Divyansh Gupta from Latent pms. Please go ahead.
Unidentified Participant
Hi sir. One question regarding abs. Are we manufacturing only the sensors for the ABS or the whole ABS as a package? And is there a plan to. Let
Vikram Mohan
Me just interrupt you here, Mr. Gupta. We are not into the ABS. Okay. We intend at some time in the future when disc brakes become a mature product. For us to get into ABS at this point in time, we have not even commenced development or intend to commence development in the immediate future.
Unidentified Participant
So my question was for that less than 125cc byte that you are trying to target because of the change in the regulations.
Vikram Mohan
No. What
Unidentified Participant
Is the.
Vikram Mohan
We were never in the ABS product. We never intended to be in the ABS product in the foreseeable future. Also we never even earlier this question was asked in earlier meetings and that’s what we have maintained.
Unidentified Participant
Got it. I’ll join back.
Jatin Chawla
Thank you. The next question is from the line of Khush Nahar from Electrum pms. Please go ahead.
Khush Nahar
Yeah, thank you. Thank you for the opportunity. Sir, I had a question more on the growth side. So like you said, that some softness is something that we see going ahead in the industry in general and for the company. So I think previously we had a guidance of 13 to 15% growth from pre call and if I’m not wrong we were targeting to double the revenues of on the base of 25. So are there any changes in this guidance?
Vikram Mohan
Frankly, I think we should ask this question to Mr. Donald Trump on a lighter note because we really don’t know how long this war is going to continue and what the impact is going to be, what crude oil prices are going to be like and what the rupee is going to be. And if fertilizer imports are going to be curtailed then agriculture output is going to reduce because rural consumption is going to have an impact. So I wish I knew, but even I’m not aware. We are all closely connected in the industry and following but I can assure you that we will be continuing to grow at higher than the market growth rate.
And with regard to P3L I’ve given a guidance that we aim to double the turnover in three years after taking over the company. I think we are well on track to achieve that. We have won a lot of new businesses and we are now creating capacities to cater to the new businesses from customers that didn’t exist before. So we are well on track to double P3s business or probably even exceed in the three year time frame that I had promised.
Khush Nahar
Right. Thank you.
Jatin Chawla
Thank you. The next question is from the line of Chirag Jain from MK Global. Please go ahead.
Unidentified Participant
Please go. Thank you so much for the opportunity. Sir, you did mention about multiple cost pressures in your opening comments. So any thoughts in terms of how are we navigating from a margin standpoint over the next couple of quarters? Would that be largely an automatic pass through to our OEM customers or there is some sort of negotiation happening and if at all how are the progress going on that
Vikram Mohan
The situation is evolving? Mr. Jain, there is a lag factor of six months. So we are only now getting corrections of Forex for the Q3 of the last financial year. But having said that we are not going with a normal route in this case. We have expedited it and we have requested for supplementary invoicing and price correction to be done immediately. Most of our customers have taken note of it and still figuring out because the entire industry we have all got together and as a trade body represented through ACMA to the OEMs.
But please do understand the impact is so huge that they cannot pass on the entire thing to the end customer who is the ultimate buyer of the. Let’s say a bike, a motorbike. If a motorbike goes up by 25 30,000 rupees it is going to demand is going to really soften or probably degrow. So I think personally it will. It’s an evolving process. We have put out an active team that’s engaging with our top 1012 customers to recover cost. I think it’s going to be tripartite. People have to take. There is going to be a price increase in the vehicle.
OEMs will absorb some of that shock and I think considering the long term partnership for the OEMs we also have to absorb some of that shock. How much is that number going to be and how long is this going to take? It’s probably time will tell but I think next quarter we’ll have a better idea of how much each of the stakeholders in this pie will take.
Unidentified Participant
Thank you. Thank you so much for the detail.
Vikram Mohan
Can we recover the entire amount from the oem? I do not think so.
Unidentified Participant
Okay. Thank you so much sir. Thank you so much.
Jatin Chawla
Thank you. Next question is from the line of Rangan v. An individual investor. Please go ahead.
Unidentified Participant
Good evening. Are you going to make chairman or like that? Regarding that company’s performance? I think what we have achieved is. I think we will be having a very satisfied person. Because actually in the four week period we set a target, something like that internal project I think they have achieved but I find the margin on the employees this one.
Vikram Mohan
Can we just take it one question at a time? Mr. Rangan, I’d like to thank you. Yes. 2022. I had given a guidance that for FY26 we will hit the 4,000 crore mark with about debt equity ratio of less than 1:1. I’m happy to note we have hit that mark but with next to no debt. So I’m happy that we’ve been our team is able to deliver on the promise made to you four years ago right after Covid. Once we recovered. Mrs. Vanita Mohan has stepped down as the active role from pre Covid. And I’ve taken over as the chairman of the company.
She goes on to become the chairperson of Pilcol holdings, our holding company.
Unidentified Participant
Okay, thanks. I. I don’t have anything because I think I’m also satisfied with the working. Thanks.
Vikram Mohan
Okay. I know you may have another question which I will forward answer, Mr. Rangan, because this is your favorite topic. So I take delivery. You’re my old friend and I’ve known you for 14, 15 years. So I’m going to take the liberty of giving you a third answer. Also, as per our dividend policy, we were eligible for paying out a higher dividend this year after the interim dividend. But as a matter of caution, our entire board met and deliberated on this subject yesterday and we believe that we are having already declared an interim golden jubilee dividend of 200%.
We felt it was good to conserve cash knowing fully well that with all the amount of capital investments and the headwinds ahead of us, it was important to conserve cash. So this is something that we took a conscious call yesterday. We had the subject of the dividend and the entire board, including myself recommended that we retain it at a 200% dividend for the FY26, see the performance for the six next six months and then take a call on that subject. I know you probably were intending to ask that question because that’s your favorite subject.
So I thought I will preempt and answer that for the benefit of other investors also.
Unidentified Participant
Yeah, very nice. Actually, what you have done is a very extraordinary thing. I know that you have done always nothing to be accomplished. Now I’m very happy about that. Thank you, sir.
Vikram Mohan
Thank you, Mr. Randall.
Jatin Chawla
Thank you. The next question is from the line of Hitesh Goel from Origin Capital. Please go ahead.
Hitesh Goel
Can you tell us what was the exports in FY26? And you have talked about exports being 20% of revenue. Right. So when can we achieve that?
Vikram Mohan
No, let me clarify. Our desire was exports to be 20% of revenue. And I’ve always maintained in my earlier calls. So that is one area where we fit failed to deliver. And our goal is to take it to 10% of revenue in the coming years. Okay. And as we speak it stands at around 7% of revenue.
Hitesh Goel
Thank you, sir. Thank you. Sir.
Jatin Chawla
Thank you. Next question is from the line of Sahil Sanghvi from Monarch Net Worth Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. Again, my question is, can you please give us details on the progress of your MOU with BO Electronics and also with. Also with Domino. And the timelines please, of commencement of commercial sales.
Vikram Mohan
With boe? Work has already commenced internally on doing the backend backlight module. Work is under progress on the equipment and the machinery and the buildings. And we will be commencing in about 10 to 12 months. Production with Dominor, more like 18 months to 24 months is where we will be ready and the early stages of revenue will start trickling in. Right. With regard to dyw, it’s a technological partnership where we are using their select technologies to develop products for our existing customers.
Unidentified Participant
Just to follow up, if I may, on the Valleytronics side,
Vikram Mohan
That’s boe.
Unidentified Participant
Boe, yeah. If I may. So what kind of contrast or what kind of revenue estimates? I mean, if you can give some direction, not the number, but maybe some order book that you have or some visibility that you’re going
Vikram Mohan
To be adding any incremental revenue. It’s only a backward integration that’s going to strengthen our product offering.
Unidentified Participant
Understood. Thank you.
Jatin Chawla
Thank you. The next question is from the line of Ashwin Patil from LKP Securities. Please go ahead.
Unidentified Participant
Yeah, thanks for taking my question. Sir, my question is regarding the ACFMS business which we had guided for a 30, 35% kind of growth in the last call. So are we still, you know, maintaining that particular outlook? And what would be the outlook for this particular business going forward? Sir,
Vikram Mohan
We are working towards 30% growth and particularly with a focus on exports. But the headwinds since the last two, three months, I’m not sure we will be able to meet those numbers because the rupees on a free fall, the crude oil prices have gone for a toss. So like I said, I wish I were Nostradamus. But I think we need to wait till September to see when the world economy is going to come back to some degree of normalcy before we hit that strike. Under normal conditions, we should have hit a 30% growth rate year on year.
Unidentified Participant
So what is our growth rate for this year then till now? If less than 30%, then how much is. How much is the number? Sir?
Vikram Mohan
How much is the number for FY26?
Unidentified Participant
Yeah.
Vikram Mohan
Yeah. I request Ganesha CEO needy to answer that, please.
Unidentified Participant
FY26, we have achieved the 30% growth rate. Okay. Managing Director said it is Little difficult for us to predict. Maybe after September we can have a better answer in this. Okay, so for FY26 it’s 30%. Close to 30. That’s right. That’s right. Okay sir, thank you so much.
Jatin Chawla
Thank you. Next question is from the line of Preet Pilani from Incred amc. Please go ahead.
Unidentified Participant
Thank you for the opportunity. I just wanted to ask one booking question. What was our revenue for soon from P3L for this quarter along with the margin and also if you could mention the revenue of non disc. Non breaks in ACPMA segment for the entire year.
Vikram Mohan
I will not be able to give you exactly for disk breaks for the year. It’s still a latent stage. Priyan, can you just comment about the for the year how much turnover we closed at?
Sahil Sanghvi
For the year P3 will generate a revenue of 924 crore EBITDA of 9.24%.
Vikram Mohan
But part of this involved a business that had to be transferred back to tbs which we have also completed the transfer as of February. So that segment of business of about 65 crores doesn’t. Will not continue. That was not a polymer business. That was a foaming business which was operating which we operated on contract.
Unidentified Participant
And on non break side. In ACPMs segment. Non bricks,
Vikram Mohan
Bulk of the revenue 96, 97% of the revenue comes from non bricks. It’s about overall this year it’s about 750 crores.
Unidentified Participant
Thank you sir. And one last thing on raw material side you mentioned that
Vikram Mohan
Request you to join the queue please. That’s the protocol we’ve been following.
Unidentified Participant
Sure, sure. Thank you.
Jatin Chawla
Thank you sir.
Unidentified Participant
Thank you.
Jatin Chawla
The next question is from the line of Van Schmori from Swan Investments. Please go ahead.
Khush Nahar
Hi. Thank you for the opportunity and congrats on a great set of numbers. I was just like to request if you could share the segmental numbers in the information cluster between the vehicle segments. That is
Vikram Mohan
Please get in touch with our CFO and whatever non competitive data we’ll be happy to provide.
Khush Nahar
Okay, thank you. I’ll call back
Vikram Mohan
In the queue.
Jatin Chawla
Thank you. Next question is from the line of Shubham Batra from Ambit amc. Please go ahead.
Unidentified Participant
Hi there. Thanks for taking my question. Congratulations on a strong set of numbers. So
Sahil Sanghvi
Just a booking question. In your standalone books your other expenses have shot up by 32%.
Vikram Mohan
Little slow. We. I’m. We’re not able to understand you,
Unidentified Participant
Sir. In your standalone
Sahil Sanghvi
Books your other expenses have shot up by 32% on a quarter. On quarter basis. Any particular one off that you would want to call off.
Vikram Mohan
I’ll request our CFO to answer that please.
Sahil Sanghvi
To whom the expense? If you compare quarter on quarter. Yes. It has gone up two items which are contributing to that. One is forex which is, you know, it has gone up to 95 rupees. And the other one is the freight because the freight cost is in line with the revenue increase. But these two are contributing to the increase. Got it sir. Thank you.
Jatin Chawla
Thank you. The next question is from the line of Aman Agrawal from Carlineal. Please go ahead.
Aman Agarwal
Thank you for the follow up. My question was on P3L basically. So if I see last quarter, this is the number which our CFO sir gave. We made 11% kind of EBITDA margins in P3L. So like can you guide like is this something sustainable or do we expect margin to revert back to 10, 10 and a half percent kind of margins in this business? Because
Vikram Mohan
That’s an interesting question and that’s a strategic call that I’ve taken also as chairman of that board that we will start Forward investing in P3L in line with Precol’s strategy of investing in technology. So we are setting up a center of excellence in polymer technology. So we will be forward investing in that and also for the new plants that are coming up, we will be forward recruiting of personnel and to commission those plants. So there will be a softening of margins over two years before the benefits of all of this start kicking in.
So we will go back to normalized margins of 10% or so and then kick back up going back.
Aman Agarwal
Got it. Thank you sir. And if I can squeeze in one more question. So are we looking to get any more MNAs? Basically like we had talking about more deals maybe in plastic division. So is there anything we are evaluating and like anything we want to close?
Vikram Mohan
Yes, we are. Yes we are. But cautiously, under the current headwinds we are being very cautious about capital investments and unless the quality of asset is top class, with a good set of customers, with a good balance sheet, with a good management team and backed by good manufacturing facilities and coming with a decent roi, we are being very selective. In fact we had a very long discussion at the board meeting yesterday on the various assets that we are considering and we have taken some calls and actually active negotiations and due diligence is in progress.
That’s all I can say at this time.
Aman Agarwal
And sir, this is on mainly plastic side or some other business side segment.
Vikram Mohan
It will. We are evaluating multiple opportunities.
Aman Agarwal
Okay, thank you sir. Thank you for answering my Question. All the best.
Jatin Chawla
Thank you. The next question is from the line of Kush Nahar from Electrum pms. Please go ahead.
Purvangi Jain
Yeah,
Khush Nahar
Yeah, right. On the content for vehicle. So what is it today? And considering the new products in the pipeline that we have across the segments, how do we see it panning out over the next three to five years?
Vikram Mohan
It’s very difficult to answer that question Mr. Nahar because you have a 4,000 rupee cluster in a Tata car and then you have a 30,000 rupee cluster in a TVS, BMW or a BMW motorbike or you have a thousand rupee cluster and then you have 3,000 rupees of plastics and a thousand odd rupees of SPM. So I think a broad based question like that based on the CC of the vehicle or the OEM is very difficult to answer.
Khush Nahar
So directionally considering the profile do we think and considering the TFT mix that is changing, maybe we can double or 1.5 to 2x our realization in terms of content per vehicle.
Vikram Mohan
For example, we’ve opened our account with Honda on clusters, on pumps and on plastics right now. So our content per vehicle from literally very low on Honda is going to go up very high. Tbs, we are already very high and we are now de risking by working on other customers. So yes, our intent is with about 10 strategic customers to keep increasing our wallet share so that you know we are at least 50% higher than what we are today in the next three years.
Khush Nahar
Right sir, so just if I can add one more question. What will be the capex figure for the next three years?
Vikram Mohan
We are, I’m happy to. That’s a good question and in fact I was wanting to use that as my closing note. I’m happy to inform that we have a very, very healthy pipeline of new business both domestic and international across all our divisions, be it for acfms or polymer or for dicbs. We are starting our next major cycle of capex this year as our previous cycle of CAPEX has come to an end and our capacity utilization has reached a peak. In fact so much so that in plastics we are unable to grow this year because of lack of capacity.
Which is why you see the ROCE at a very high figure compared to, you know, what I had given guidance for because of sweating the capital assets. So we are starting a major cycle of capex. In fact this year in itself we have planned for about between 680 to 700 crores of capex to cater to all of our new businesses that we have won new Plants, new machines, so on and so forth which will keep propelling us forward and to maintain this growth momentum. So there will be some amount of debt as I mentioned, but a very healthy amount of debt.
I’m always very conservative when it comes to debt. A lot of our investors keep telling us that I’m a little risk averse but I prefer to remain that way. So we will have a debt equity ratio of probably about 0.5 or 0.6, not even hitting 1. And that’s how we plan to operate.
Khush Nahar
Right sir, thank you. Thank you.
Jatin Chawla
Thank you ladies and gentlemen. That was the last question. I now hand the floor back to the management for closing comments.
Vikram Mohan
I’d like to thank everyone for participating and for some great questions. I’m sorry I could not give a clear answer. Especially with regard to the growth because it’s affected macroeconomic factors, geopolitical factors over which we had no control control. But the management will leave no stone unturned to recover all costs possible and control all costs possible to maintain earnings. But having said that, there will be some softening of earnings. This is the voice of not just prickor but the voice of the industry.
And this is going to be a short term pain. And we just hope and pray that this entire geopolitical mess comes to an end sooner rather than later. All of us can focus on strategically growing the business for the mid to long term. We stay committed to our mid to long term projections, our investments and our recommitment to technology. And in the polymer business, we are going to be investing in technology and converting it from a component maker to a value added polymer player. And we do hope that those will also pay dividends like in our other divisions in the years to come.
Thank you very much for your confidence in the company and I look forward to connecting with you on the H1 call six months from now. Thank you. Good evening. Namaskar.
Jatin Chawla
Thank you very much sir. On behalf of Pricol Limited. That concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.