Sandhar Technologies Limited (NSE: SANDHAR) Q3 2025 Earnings Call dated Feb. 18, 2025
Corporate Participants:
Jayant Davar — Chairman, Managing Director and CEO
Yashpal Jain — Chief Financial Officer & Company Secretary
Analysts:
Shailly Jain — Analyst
Aditya Kondawar — Analyst
Siddharth — Analyst
Jay Betai — Analyst
Saket Kapoor — Analyst
Jyoti Singh — Analyst
Baskar Shekhar — Analyst
Pritesh Chheda — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 and Nine Months FY ’25 Earnings Conference Call of Sandhar Technologies Limited hosted by Dolat Capital Markets Private 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 the star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms. Shailly Jain from Dolat Capital. Thank you, and over to you, ma’am.
Shailly Jain — Analyst
Thanks, Steve. Good morning, everyone. On behalf of Dolat Capital, I welcome you all-in 3rd-quarter and Nine-Month FY ’25 conference call of Shandar Technologies. From the management side, we have with us Mr. Jain Dawal, Chairman, Managing Director and CEO; and Mr. Yeshpal Jain, Chief Financial Officer and Company Secretary of the company. We thank the management for providing us with the opportunity to host the call.
Now, I hand over the call to the management for their opening remarks, followed by the question-and-answer session. Over to you, sir.
Jayant Davar — Chairman, Managing Director and CEO
Yeah, thank you. Very good morning, ladies and gentlemen. I welcome you all to the quarter three and nine months earnings con-call of Sandhar Technologies Limited.
Talking from a broad conceptual point of India, India had initially projected a growth rate of 6.5% to 7% for FY ’24, ’25. I think it’s now been revised to 6.4% for the year ending March ’25. It is the slowest in four years and below the lower-end of government’s initial projection. This obviously has come in also because of the weaker manufacturing sector and slower corporate investments.
Last month, of course, the Reserve Bank of India lower lowered its growth forecast for the year ending March 2025 to 6.6% from its earlier forecast of 7.2% after India reported lower-than-expected growth of 5.4% in July to September quarter. And the forecast by the National Statistics Office followed several disappointment — disappointing economic indicators in the second-half of 2024. This including low-growth, high inflation, anemy capital flows and record trade gap and that casts doubt on the robustness of the country’s growth.
Our manufacturing, which accounts for about 17% of GDP, is projected to expand at 5.3% year-on-year in ’24, ’25 compared to 9.9% a year-ago. Now let me bring you to some good news, which is Sandhar’s performance. Despite all the above, Sandhar’s total income growth of 9.7% in-quarter three, where most of our peers actually could not grow and 10.34% compared to last nine months, months are at a consolidated level have been pleasant. We anticipate that we will sustain and grow this momentum even further, of course, subject to geopolitical conditions, market demand and so on and so forth. In terms of consolidated EBITDA, we registered a growth of 0.5%, which is 500 basis-points improvement in the margins to 10.34% compared to nine months of the last year. Last year it was 9.5% was 10.1% compared to 9.6% in the nine months of financial year 2024.
In the two-wheeler segment, the industry recorded a growth of 13%. Sandhar outperformed with 17.58% increase on a nine-month year-on-year basis. In the four-wheeler segment, the industry grew by 2.72%, where Sandhar did see a decline. In the OHP segment, the industry grew by 5.3%, but Sandhar grew at 6.9% on a nine months year-on-year basis. In terms of joint-ventures, you’d be very happy to know and I’m very pleased to share that all of our joint-ventures are experiencing strong growth and consistently improving performance. Further, pleased to share that all our joint-ventures are PAT positive in-quarter three and nine months of financial year 2025. This success has been driven by focused cost-control, localization efforts, enhanced business synergies.
We remain confident that the growth trajectory will continue. Collectively, our joint-ventures have recorded a total income of INR270 crores with an average EBITDA of 12.5%. The list has already I think been shared with you in the presentation. The drag for Sandhar has been the overseas business in-quarter three as well as nine months and the operations sustained losses marked by low demand and slowed down in Europe.
We are closely watching the situation over there. And as we look at it, the preliminary indicators are that volume should see growth in financial year 2026., the company’s expansion projects in Puna for cabins and fabrication and die-casting are expected to commence for commercial production by end of March 2025. In EVs, the company has started commercial production of battery charges and is getting positive response from the market. The customer-base is also gradually increasing with more-and-more customers that are being added. On CSR, over the years, we’ve dedicated ourselves to sustainable business practices that tackle economic, environmental and social challenges.
Our efforts go beyond near business concerns, creating positive effects on the communities we serve. Our CSR activities focus on key areas of through healthcare, which is through the Sandhar Healthcare Center, which is in village, Katola, Gurugram. We do education for girl side largely in Sandhar and the Sandhar Learning Center of Learning at. We have skilling and vocational training done through Swabiman program, senior care through adopter grant programs and for environment, we go green through Penia Industrial Park, Bangalore.
We are looking to focus on diversity and creating equal opportunities for gender neutrality. As we go-forward, our focus areas will be towards ESG and SGV, which is sustainable development goals to attain carbon neutrality in the coming years. We continuously work on diversification of our product portfolio, expanding customer-base and increasing content per vehicle. We are focused on improving both return on capital employed and return on investment. We are consolidating operations and the idea is to generate more free-cash flows and deleveraging of the balance sheet.
With those initial comments, I am happy. With me today is Mr. Yashpal Jain, the CFO of the company. We’d be very happy to take your questions on anything that you might have. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you.
The first question is from the line of Aditya Kondawar from Complete Circle. Please go-ahead.
Aditya Kondawar
Hi, sir. Just wanted to ask you about the debt situation. Are we on-track as per the last con-call guidance on the a reduction of debt?
Jayant Davar
Aditya, we are at a net-debt of INR673 crores. And if you remember, last-time as we said that we’ll be finishing up some projects, especially those are the two ones which are going-in Pune. So there can be intermittent ups and downs in the debts. But we are on the track because there have been some outflows on account of capital payments for finishing up these projects and remaining payments will be done in-quarter four. So as far as our regular operations are concerned, I think we are in the sustainable level and we are continuing at a net-debt of below INR700 crores.
Aditya Kondawar
Got it, sir. Thank you. And the second question was that any further inquiries or updates on the smart lock side of the business, any new inquiries or any new customer conversation that we are having.
Jayant Davar
Team is consistently in follow-up with the OEMs because the product has already been developed. Now it’s all the adoption and by the OEs are. So we are waiting for some good news.
Yashpal Jain
Very happy to announce that we have already started production and supplies to two of the biggest names. As we speak now, traction is being built with some other customers and the existing supplies that have started will pick-up much larger volumes in the coming months.
Aditya Kondawar
Thank you. All the best.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Siddharth [Phonetic], an Individual Investor. Please go-ahead.
Siddharth
Hi, sir. Thank you for the opportunity. A couple of questions. The first one being, I think year or so back, you had guided clearly that you see a 25% plus sort of a growth for a three to five-year period. The last few quarters to our understanding, should we take it as an exception and nothing changes structurally on that guidance. So that’s my first question. The second is, there’s a lot of media news around tariffs and how it’s going to impact the auto ancillary thing. So if you can take a couple of minutes and sort of let us know if at all it plays out, how would it impact us at any which way? Thank you.
Jayant Davar
Okay. Well, thank you for that question. Very interesting question. And suffice to say that whatever guidances we had given in the past or forecast we’ve given in the past, are keeping the economic condition of the country and how the growth is in geopolitical situations aside, we continue to build our pipelines towards the kind of growth that we had declared in the past. I don’t see any reason why if you’ve seen a little lower-growth in the last quarter or in the nine months gone by, yes, it is an exception. And I do believe that this should accelerate quite rapidly as we go-forward. So that’s the answer to question one.
What was your second question, sorry?
Siddharth
It is more around the tariffs in US, how would it impact us if at all it plays out?
Jayant Davar
Well, the direct tariff thing that would have affected us was Mexico, because we have a plant in Mexico and a lot of our supplies go to North-America. While on a like-to-like basis because most of our supplies go to companies like Bosch and TRW who are located within Mexico. So it is not as if we would have a direct impact, but in case those people have an impact selling into the US, we would obviously be affected. At this point of time, while we have spoken to our immediate customers, they seem to be quite positive that there is likely to be no impact. However, we’ll have to wait-and-see as to how — in case there is any impact, how much it has got to be and how we will have to take it or mitigate it in the future.
Siddharth
Sure, sir. Thank you so much. Very helpful. Thank you.
Operator
Participants who wish to ask a question may press star and one. The next question is from the line of Jay Betai from Dolat Capital. Please go-ahead hello.
Jay Betai
Hello. Hello. Am I audible?
Operator
Yes, sir.
Jay Betai
Yeah, hi. Hello, sir. Good morning and thanks for the opportunity. Sir, my first question would be what — what are your thoughts on-demand revivals on the export side?
Jayant Davar
On the export side?
Jay Betai
Yes, sir.
Jayant Davar
Well, I do believe — I do believe that our customers are looking to buy more from India. This continues in the overall policy of most multinational companies looking at China plus one. India falls into that sweet-spot and I see no reason why exports from India will not grow. However, having said that, you know that the demand right now in Europe is weak. So it’s not as if we are losing market-share in exports. In fact, we are gaining market-share. The only thing is because the overall demand is down, there is an impact on India, not so much on Sandhar because Sandhar largely as you are aware, supplies within Europe — from Europe. So from a foreign-exchange perspective, we are not affected. But from a local demand perspective, I do see that there is — and I already mentioned that our overseas business has been a drag with some losses in the nine months and in the quarter. We are now being told that there are green shoots are being seen and the future looks a little better.
Jay Betai
Okay, sure, sir. So a follow-up question on that is. So what would be your order book from the overseas side and expected over — expected order book from the overseas?
Jayant Davar
I didn’t get that question. Can you repeat that question, sir? Yeah.
Jay Betai
So what would be your order book coming into FY ’26? What are the order book expectations any new order book?
Jayant Davar
What is happening is we were using — you remember we had a plant in Romania and the Romanian plant could not build-up and got delayed on account of the Ukraine war. It has now stabilized and we do expect that we will have a much larger percentage manufacturing capability being consumed in the coming year. We are very, very bullish on the next year, but and we do feel that the loss that we have had in this current year will not continue into the next year and we will be back-in profit.
Jay Betai
Okay. Sir, I — just one bookkeeping question. Out of INR700 crores of debt you mentioned previously, could you quantify what would be the debt in your JV?
Yashpal Jain
Yeah. This does not include the JV debt. This is the — because JVs are not consolidated as per the. So this is the debt at the console level with the subsidiaries and the standalone company. JV debt is the separate, which is not accounted in our books, but I can tell you the amount, it is barely around INR8.5 crores as of December in two of the JVs combined together.
Jayant Davar
Yes, you also want to break it up and give it to them in terms of our foreign-exchange debt and here?
Yashpal Jain
Yeah, sure. So out of a gross debt of INR708, 284 per tons to standalone, 100 for Indian subsidiaries and 324 for overseas subsidiaries and the cash balance of INR35 crores to make the net-debt stands at India level now.
Jay Betai
Okay. Thank you.
Jayant Davar
Yeah.
Jay Betai
Thanks a lot, sir. Thanks, sir. I’ll fall back in the queue.
Operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor Co. Please go-ahead.
Saket Kapoor
[Foreign Speech]. Hello?
Jayant Davar
Yes, we can hear you, sir.
Saket Kapoor
Yeah. Thank you, sir. As you alluded in your opening remarks that the path ahead would be the improvement in the EBITDA margin and the deleveraging exercise. So if you could just give some more color on what steps would be towards deleveraging and what are we eyeing in terms of lowering the net-debt levels from the current and what have been the Nine-Month capex that we have done?
Jayant Davar
Can you give the numbers?
Yashpal Jain
Yeah, yeah, sure. So basically, in nine months, we have done a capex of around INR173 crores, sir to finish up the regular capex as well as our ongoing projects. So this is the capex count for nine months. As far as deleveraging on the balance sheet is concerned, as we said in our opening remarks that this year we’ll be finishing up some projects. So as far as the debt is concerned, it is within our estimate figures. But yes, quarter-four, there might be some increase in the debt to repay our commitments to finish up the project. But next year, yes, we will be generating the cash flows, which will be used to repay this borrowing that will be taken in the current financial year. So I think on an average basis INR100 crores would be your repayment in terms of the, I would say, terms and conditions of the term loans, which we have secured from various lenders.
Saket Kapoor
Okay. So the — so on a peak debt of whatever we will be hitting for Q4, there will be a reduction of INR100 crore for the next financial year. This should be the idea.
Yashpal Jain
Around INR100 crores is the normal payments that has been — I mean, projected as per investments. If we generate further surplus the invested, then we can pay more also.
Saket Kapoor
Okay. And sir, sir, earlier call, you did guided about EBITDA margin right increasing or inching up to 11.5% mark for the next financial year, that is ’25-26, correct me there, sir? And top-line of INR4,500 crore on a consol level. So does taking into account our Q3 numbers, does that trajectory holds true currently or would you like to revise it?
Yashpal Jain
So here, I would like to little bit correct you because EBITDA margin that we have projected for this year was 50 point basis improvement, which is something around 10.45% of upper GAAP. For next year, another 50 point basis we have put up the improvement. So that was around 10.95%. 11.5% for ’25 ’26 we haven’t projected out and I remember that we have not shared on the call also. But yes, we see that 11% is a healthy margin looking to a diversified business and the various industry as well as the global scenario. INR4,500 crores of turnover, yes, that we have projected for FY ’26 and I think there is no reason that you should achieve it.
Saket Kapoor
So your voice is breaking, come again, sir.
Yashpal Jain
Okay. So as far as turnover is concerned, INR4,500 crores. I think there is no reason that we should not achieve it. We can achieve it in FY ’25, ’26 subject to the things moving in the right direction. As far as EBITDA is concerned, we haven’t projected 11.5%. For next year, we have kept a correction of 50 point basis from 10.45% that was the upper range for this financial year. So that was around 10.95% that we have projected that will be between 10.50 to 10.595 in FY ’25, ’26.
Saket Kapoor
Okay. And sir, there were some new lines which were to be on-stream for January ’25. So are we done with that and that will be contributing towards Q4?
Yashpal Jain
Yes, lines are ready, but I think the volumes will be coming in the quarter one of FY ’25, ’26 because some testings are going on from the customer side. So there are some little bit delays from the customer side and. But from our side, we are ready with the line. So I think the volumes will hit in the Q1 of FY ’26.
Saket Kapoor
Okay. And sir, lastly, sir, on the overseas subsidiaries losses, can you give the absolute number for this quarter and for the nine months, how has the net be from the overseas subsidiary the contribution?
Yashpal Jain
So at the EBT level, what the EBITD level for overseas subsidies combined together, we have sustained a loss of INR17.35 crores and for quarter three, at a consol level, it is INR10.78 crores.
Saket Kapoor
Okay. And taking into the account the current environment, this should be the continuity for Q4 also, sir?
Yashpal Jain
Q4 also, we had a discussion with the overseas team. They are seeing that the volumes are rebounding back up. So I think there should be an improvement in the numbers once the Q4 numbers are in front of us. So the losses should reduce some, but let’s see how Q4 is and how is the volume depending on what the policy US adopts in the coming period of time.
Saket Kapoor
So a small point to conclude, the way the Nine-Month growth numbers are. So we should be looking to-end the year-on the same pace in terms of the revenue trajectory for the current financial year? We are already halfway through the quarter. So are taking into account.
Yashpal Jain
Range should down INR4,000 crores of revenue for this current financial year that we are projecting on.
Saket Kapoor
Okay. And margins should improve for Q4 or it will be the same trajectory as Q3 has been?
Yashpal Jain
So we have improvement in the margins in Q4 because if you see for this quarter, the major drag has been because of overseas business in terms of revenue, in terms of profitability. As far as Indian operations are concerned, we take into account, they have shown a very improvement in terms of margins also and turnover also. So 4th-quarter, even if you achieve a new growth in overseas, I think the margin should be better compared to Q3.
Saket Kapoor
And sir, two points on, firstly, on the RM also, how are the key constituents for RM and the answer, I think so earlier in the call last-time also you mentioned about we are — we are creating presence in some of the products which are in nascent stage and that will be — that the market will grow. I think so you were referring to the EV space. So in terms of the breakthrough and the EV — EV ecosystem currently, what we are hearing from Europe and other economies in terms of EV adoption also tickling a backseat and hybrid gaming. [Foreign Speech]. EV space.
Yashpal Jain
You want to answer this question?
Jayant Davar
All right. Okay. Where EVs are concerned, while there is a little bit of a slowdown in the EV space, the fortunate thing for us is because we have a completely localized solution of the dependence on China being brought down, we are getting traction more than some of the others and therefore, we do see an improvement in our traction towards more growth in the EV sector. However, EVs is always been a question mark, will remain a question mark. Today, you’re listening to a lot of things where they say that hydrogen may be the fuel of the future. We will have to wait-and-see. I understand companies like BMW have stopped working on battery technologies for the future and they are concentrating on hydrogen. So we’ll have to wait-and-see. But for us, the investment that we have made in the EV space, which is largely for two-wheelers in the form of battery charges and motor controllers, we have traction and you will see growth there on a regular basis.
Saket Kapoor
Okay. And lastly, sir, in your presentation, if we can provide this debt number breakup also, which was said answered to the previous participant?
Jayant Davar
Sure, we can do that. We can do that. If you want, we can repeat it again. What is working capital term-loan, but in the presentation, yeah, sure. Yaspal, we will be happy to give you those answers.
Yashpal Jain
Do you want to break-up? You want to breakup of the debt? Hello.
Saket Kapoor
You gave, sir. You gave, I have noted it down. Only one more suggestion was there, sir. If we can arrange at this conference call for the investors and the analyst community in the second-half of the day, I think so we can have better participation than the very early-morning hours of 10 a.m. It’s a basic suggestion I have. Since now we are at the end-of-the earning call, we have ample space slot. If the management can suffice with that requested at 4:00 or.
Jayant Davar
We’ll explore that. We’ll explore with our research agency as well as the team also see how that works out.
Saket Kapoor
Thank you, sir. Thank you and all the best you thank you.
Jayant Davar
Thank you. Thank you.
Operator
Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. The next question is from the line of Joti Singh from Arihant Capital Markets. Please go-ahead.
Jyoti Singh
Yeah, thank you for the opportunity. Sir, my question is on the sheet metal side. As earlier last Q2, we haveseen the double growth in this segment. So going-forward, what our expectation? And earlier we were currently utilization around 55% to 82%. So what’s the current utilization and any additional capex on that side?
Jayant Davar
Yes, you want to come in with whatever?
Yashpal Jain
Yeah. So like in sheet metal, as you can see that we have been doing — we set-up new facilities over a period of — in last four years, we have set-up four new manufacturing facilities in sheet metal and the customer response has been good. This time also in three months period, quarter three, the share is 15%, sheet metal is 14%. As of now, we are in the process of developing some new more products because there has been some slowdown from the customer side in some of the models, huh? So on a continuous basis, we see a growth of sheet metals and it’s operating presently at 80%, 85% in-between capacities there is no major project coming up in sheet metals which require a heavy capex. It’s a routine asset by adding one or two machines or adding it or two facility — I mean not facilities within the — I mean, set of plant and assets. That is how. But we are not expecting any major in organic CapEx to be pumped into ship metal business now?
Jayant Davar
Yeah. We need to — we need to optimize the facilities that have already been put into place. And as said, all we will need probably some balancing equipment, which will open up the capacity even furthermore for utilization as we go-forward. The traction is good. The growth is good and the double-digit growth that we are looking at in the sheet metal business so-far will continue as we go-forward.
Operator
Ms. Jyoti, does that answer your question?
Jyoti Singh
Yes. So I’m asking another question on the product pipeline side. Sir, if you can explain like last quarter you mentioned multiple parts were under development and that come in 2026. So if you can comment on that side?
Jayant Davar
Yes, while you have a list of the cheap metal parts coming in, right?
Yashpal Jain
Yeah, but it’s a very long metal party or all parts.
Jyoti Singh
Sheet metal side.
Yashpal Jain
Yeah, okay. So actually the list is very lengthy, but nutshell I can say that the parts are under development and more parts around 18 to 20 new parts will be added in the pipeline to our business, huh and some of them would be in this quarter-four and remaining will be in Q1 of FY ’26. And just to point out here that the development of part is consistent to the business. It is a continuous process as and when the customer asks us. So 18 to 20 new parts will be added over a period of next to three, four months and that will be added up in a turnover in the coming period of time. And that keeps on-going up. It’s not that the activity is top at some point of time. It is a regular activity, yeah.
Jayant Davar
But if you want a little more details, I can only add that a large part of it has to do with bodies, frames and so on and so forth. They are large parts which are being fabricated.
Yashpal Jain
Yeah.
Jyoti Singh
Thank you, sir. And sir, just last question on the overall industry basis because most of the autoently companies, they are facing issue to not getting more order and issue on the European and US side. So when we are seeing — when we are expecting and seeing the recovery on that side?
Jayant Davar
Well, right now,, you’d be happy to know we don’t have a shortage of orders per se. Yes, the industry slowed down a little bit. But despite the industry slowing down, we are outperforming the market on account of addition in our wallet share of new components that are being given to us. We are very hopeful that this trend will continue. We are seeing that the industry itself is also picking-up. So if the industry picks up, quarter three was not a good quarter for the industry. But despite that, we seem to have done well. We will continue our outperformance and that is our plan and that is what seems to be on the table as we sit today.
Jyoti Singh
Okay. If I can squeeze one more question. On the — like on the Hyundai side, what’s the update on that side that we started a schedule on March and originally? Yeah.
Jayant Davar
Yeah. So Hyundai, the mirrors are ready. They are now being tested as we speak. That project was a little delayed by Hyundai because this was import substitution completely. It has now been agreed that the products that we have supplied are being tested right now in Korea as also in the endurance test in India. So this whole project got delayed and I understand now the SOPs now begin somewhere in the month of July or August. That is when the full pledger thing will get converted into our products being supplied locally.
Jyoti Singh
Okay. Thank you so much, sir.
Operator
Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Baskar Shekhar [Phonetic], an Individual Investor. Please go-ahead.
Baskar Shekhar
Hello, sir. Thank you for giving me the opportunity. I would want to ask how much of margin improvement can be seen on account of the smart lock production? I guess in the last con-call, you spoke about smart locks are going to be manufactured from the month of Jan. My question is, has the supply started for that bit? And also, are we going to see good improvement in margins because of this part?
Jayant Davar
Yes. So the quick answer is yes. We started our supplies to Suzuki Motorcycle, for example that started, but the volumes were low. We have now been — these are now being ramped-up to a level of almost 20,000 a month, which should happen as we speak starting from March and for the next year, the volumes look very, very healthy. In terms of the margins of the business, yes, the margins are higher, both in terms of percentage, but because the product value itself is about 10 times higher than the regular locks that we do, we expect the volume of profit would be much higher.
Does that answer your question, sir?
Baskar Shekhar
So this is going to reflect in the Q4 results?
Jayant Davar
Some part of it, small part will, but our most part of it will reflect in the next year from the quarter — first quarters of next financial year.
Baskar Shekhar
Okay, sir. Got it. Thanks.
Operator
Thank you. The next question is from the line of Sherily Chen from Dolat Capital. Please go-ahead.
Shailly Jain
Hi, sir. Thank you for the opportunity. Sir, the tax-rate was really higher for this quarter. So what kind of tax-rate are we looking for the whole year in FY ’26?
Yashpal Jain
Taxation you are asking?
Shailly Jain
Yeah, yeah.
Yashpal Jain
So the taxation rates remains 25% or 25% 27% goes because there is a deferred tax impact also. All the government rates, we are subject to 25.17% whatever comes with the sense also. So the — sometimes the swing comes up on account of — because what happens we have to create a [Technical Issues]
Operator
Sorry to interrupt. We were unable to hear you. Could you please repeat?
Yashpal Jain
Hello?
Operator
Yes, sir.
Yashpal Jain
I’m audible now?
Shailly Jain
Yes, sir.
Yashpal Jain
Yes. So Sally, the standard rate of taxation is 25% for our company, right? And the changes in the tax rates many times happens because of the changes in the overseason because we are consolidating along with the overseas accounts, sir. But on overall basis, it remains to be 25% for us, sir. And there is always an impact of deferred tax. So sometime which increases the tax content, sometimes which decreases the tax content this is a change. Otherwise the standard rate remains the same yeah.
Shailly Jain
Thank you, sir. And one more question was there that could you please run me through your JV’s performance, how Sandhar Ankken how Sandhar Vetron are doing? And what sort of revenue did they do for this quarter?
Yashpal Jain
Yeah, sure. So like I can give you a revenue for quarter three also and if you want nine months, I can provide nine months figures also, where Sandhar is back into the profits from — consistently from last couple of quarters. And as far as another entity Winner comm you asked.
Shailly Jain
Yes, that’s on and.
Yashpal Jain
Is again in profit. So if you ask me for quarter three like has done a profit of INR95 lakhs, WinnerCom has done 75 lakhs and this one company has — it has done a profit of INR1.69 crores. And for nine — for nine months, the profit of Andhar has been INR3.29 crores. Has been INR2.2 crores and Sandhar has been INR3.31 crores, right. So in terms of turnover also like for Sandhar has done a turnover of INR50 crores. Is INR45 crores and INR22 crores has been.
Shailly Jain
Thank you, sir. And how are we doing on our vision and locking system?
Yashpal Jain
Which one can you repeat the question?
Shailly Jain
How are we doing in our locking system and vision system?
Yashpal Jain
Yeah, locking lock-in vision system is going good as usual. We have around 25% of revenue contribution from lock-in vision combined together. And they are at a better margins in this year compared to the last year, except the four-wheelers where we are facing some down volumes from Honda side two-wheelers doing better.
Shailly Jain
So how are we financing like revise this for four-wheelers? Is this trend going to be on a similar side or do you think this trend needs to be changed?
Jayant Davar
There are new models coming in and those new models are going to be launched. And we are very hopeful that this thing will change. You’re also aware of the Hyundai business, which we spoke about in the previous question. With all this new businesses being added, which are better margin businesses, we will see a reversal in the next year in the four-wheeler business.
Shailly Jain
Yes, sir. Thank you. That sums up my question.
Yashpal Jain
Thank you.
Operator
Thank you. The next question is from the line of Pritesh from Lucky Investments. Please go-ahead.
Pritesh Chheda
Yeah. Sir, the South based OE or Two-wheeler OE, what is we as a percentage of your sales?
Jayant Davar
When you say south based, are we talking about TBS? Are we talking about Royal and? Are we talking about Honda?
Pritesh Chheda
TVS, TVS.
Jayant Davar
PBS. PVS, I think in all our businesses put together, including the new sheet metal business, which has also been added, I think we are close to about 30%. What is the number?
Yashpal Jain
32%, sir.
Jayant Davar
32%. Yeah.
Pritesh Chheda
And what was the growth in nine months for this OE for us?
Jayant Davar
Year-to-year.
Yashpal Jain
For nine months or year-on-year, you want to say?
Pritesh Chheda
We are nine months this year, nine months this year versus nine months last year.
Yashpal Jain
So this year it is 33% of our revenue. Last year it was 30% of our revenue.
Pritesh Chheda
So which means 110, so that OE has grown 20% for this. And the sheet metal, what is the investment — total investment that you had done in sheet metal?
Yashpal Jain
Metal total investment you want combined total business including North?
Pritesh Chheda
Yeah, whatever plants you have put for sheet metal in the recent?
Jayant Davar
In the new plant. That you disclosed in the earnings calls also.
Pritesh Chheda
Your voice is not clear. Sorry your voice is not clear.
Jayant Davar
We have put up four plants in recent times in last three years in and that hotel’s investment is close to INR285 crores to INR290 crores in-between. Could you hear it? The total investment has been between INR280 crores to INR290 crores in the sheet metal business in the last three years.
Pritesh Chheda
So I couldn’t hear you.
Jayant Davar
Well, we are audible. I think there is some issue with it but I can hear wrong. The total investment, sir is INR280 crores to INR290 crores in the sheet in the new plants that have been set-up in the last three years.
Pritesh Chheda
Okay. And the asset turn-on this cost?
Jayant Davar
What is the revenue as far the orders is.
Yashpal Jain
Asset turn is close to 2.5 per times as of now.
Jayant Davar
2.5 times. Can you hear me? Hello, 2.5 times.
Pritesh Chheda
Sorry to interrupt, sir, the participant has been disconnected.
Jayant Davar
Okay, you can pick-up a new participant in the meantime.
Operator
Yeah, sir. Actually, there are no further participants. I now hand the conference over to the management for closing comments.
Jayant Davar
Sure. All right. In that case, let me thank all the participants who have joined us this morning. We will also keep into consideration the request that this be done in the afternoon. We will see in case that is possible today, keeping all the aligned parties in check. And we do, like said, the forecast for this quarter seems to be better than what it was last year. We are also quite confident of achieving what we had set-out to achieve in terms of our business plan at the end of this financial year. Once again, I want to thank Dolat Capital and everyone who put this call together. We as a company are open to taking your questions even individually whenever you want any more information and we’ll revert to you in the shortest period of time.
With that, I want to thank you all once again and all the best.
Operator
Thank you. On behalf of Dolat Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines.