Shriram Pistons & Rings Ltd (NSE: SHRIPISTON) Q1 2026 Earnings Call dated Aug. 04, 2025
Corporate Participants:
Unidentified Speaker
Krishnakumar Srinivasan — Managing Director and Chief Executive Officer
Prem Rathi — Executive Director and Chief Financial Officer
Pankaj Gupta — Executive Director, Head Legal and Company Secretary
Analysts:
Unidentified Participant
Vaibhav Shah — Analyst
Viraj Kacharia — Analyst
Pradyumna Choudhary — Analyst
Abhishek Jain — Analyst
Nandan Pradhan — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to Sriram Pistons and Rings Limited Q1 and FY26 earnings conference call. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded today from the management. We have with us Mr. Krishna Kumar Srinivasan, Managing Director, Chief Executive Officer, Mr. Prem Rati, Executive Director and Chief Financial Officer and Mr.
Pankaj Gupta, Deputy Executive Director and Head Legal Company Secretary. Before we begin, let me remind you that this discussion may contain forward looking statements that may involve known or unknown risks, uncertainties and other factors. It may be viewed in conjunction with the business risks that could cause future results, performance or achievements to differ significantly from what is expressed or implied by such forward looking statements. I now hand the conference over to Mr. Sri Krishna Kumar Srinivasan for his opening remarks post which we will open the floor for an interactive Q A session. Thank you. And over to you sir.
Krishnakumar Srinivasan — Managing Director and Chief Executive Officer
Yeah, thank you Shubham. I hope I am audible.
operator
Yes Sir.
Krishnakumar Srinivasan — Managing Director and Chief Executive Officer
Good evening everyone. Thank you for joining us today for the Q1 FY26 earnings call for Shayam Pistons and Rings Ltd. It is really a pleasure to connect with all of you as we share our progress and achievements over the past quarter. I am pleased to report that the company has commenced the fiscal year 2026 with a very strong performance in the first quarter. Building on our performances over the last few years, the company has maintained a double digit growth across all key financial metrics this quarter. I am happy to state that the company has outgrown the end markets by a wide margin.
As you are aware, the automotive industry is cyclical in nature and tends to be loaded in the quarter 2 and quarter 4 quarters and is generally soft in the Q1 and Q3 quarters. Hence normally in Q1 most of the OEMs have their plant maintenance block shutdowns for preventive maintenance and their production is normally on a lower side as compared to the previous quarter Q4 of last year. So normally we compare year on year rather than comparing quarter on quarter. And I’m very happy to state that year on year the company has maintained a very very strong growth as compared to quarter one of last year.
Under these circumstances, the consolidated total income grew by almost 14.9% year on year to rupees 9917 million which is attributed to the company’s resilient business model and its strategic focus and further supported by SPRL’s leading position in the industry along with the strong and long lasting relationships with all its customers. These factors have also enabled us to continue to outperform the industry and which is going through a rather challenging time. We have been consistently speaking about our dedicated focus on efficiencies and operational improvements which have enabled us to deliver a 16.5% year on year growth in consolidated EBITDA to rupees 2234 million as well as enabled us to expand our ebitda margins to 22.5%.
In Q1 of FY26, our consolidated PAT grew by 15.1% year on year to rupees 1348 million while PAC margins were maintained at 13.6% in the quarter. Apart from working on various operational improvements, automation and digitization, we have been focusing on increasing our reach to the end markets globally. Like newer market segments like the marine engines, the defense engines, the railway applications, lawn mower applications and many other unique areas. We have also been dedicatedly working on other fronts like streamlining of supply chain, productivity improvements and cost optimization across all our products. We are confident that that these initiatives will continue to drive our profitability but will also ensure that we uphold the superior product quality that SPRL is renowned for.
The auto industry is going through a turbulent time and this quarter presented challenges across all segments. While the passenger vehicles, commercial vehicles and the three wheeler segments reported a near flat production volumes, the two wheeler segment was the most affected de growing by almost 1% year on year from a production standpoint. While we recognize that the near term outlook presents a cautious phase for the industry, we believe that with our diversified presence across various segments in automotive applications, across commercial vehicles, passenger vehicles, two wheelers, tractors as well as non automotive applications like the railways, the defense, the industrial engines, off highway engines, marine engines and snowmobile applications will enable us to continue growing and outperforming the industry as we have done in the past.
Our presence across ICE components, EV motors and controllers, high and high precision injection molded components further adds to our strength of the business model. A positive factor this quarter for the industry was growth in exports across all segments after a few quarters of pressure due to the geopolitical situation. With our strong presence across key global markets, we believe that this further adds to the resilience of our model. Even with the geopolitical tensions coming out of the tariff wars and supply situations, we feel that being present in over 45 countries helps us to mitigate risks in one region by better sales in the other.
Going forward, our strategic focus remains on strengthening our core business while exploring the new avenues for growth. We are committed to enhancing our product offerings and expanding our market presence through innovation and technology. As a part of our commitment to innovation and sustainability, we are actively developing components for alternative fuel solutions like the cng, the LNG applications, the PNG applications, the hybrid engines, flex engines, hydrogen engines, HCNG engines which is hydrogen blended CNG engines, and electric engines that complement the internal combustion engines. We firmly believe that all the powertrain solutions will continue to coexist for quite some time in the future given the various challenges with regards to infrastructure and availability of mature technology solutions for only EV vehicles While we work on all the technologies, we are happy to state that our progress on EV motors and controllers is very satisfactory and the onboarding of many new customers has been going on for quite some time.
We have also been able to mitigate the non availability of rare earth magnets by alternate sourcing methodologies and maintaining our production run. The progress of commissioning of our new facility at Coimbatore for the EV motor and controller plant is progressing quite well and we expect to start production there by end of September. Moreover, we continue to pursue the strategic partnerships and M and A that will bolster our capabilities, broaden our product portfolio and will be accretive to our business. Our focus on sustainability and environmental responsibility remains unwavering as we continue to implement various initiatives that reduce our carbon footprint and promote the use of renewable energy across all our operations.
Before concluding, I would like to express my gratitude to our dedicated employees and all our other stakeholders for their unwavering support. Together we will continue to grow our business profitably and also work on making SPR a multi product franchise. Thank you once again for each one of you for having joined this call today. I would now request the moderator to open the floor for questions and answers.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vaibhav Shah from DSP Mutual Fund. Please go ahead.
Vaibhav Shah
Yes, thank you so much for providing this opportunity and congratulations sir on providing good set of numbers for the Quarter. I have couple of questions. First question is on our revenue growth on a standalone basis. So if I look at the underlying industry volume which was very tepid against that we have done good double digit revenue growth on a standalone basis.
operator
Can you speak a little loudly? We can’t hear you.
Vaibhav Shah
Yeah. Is this better?
operator
Yes.
Krishnakumar Srinivasan
Yeah, it’s much better now. Yeah.
Vaibhav Shah
Yes sir. So my first question was on standalone revenue growth which we have reported against the average industry volume growth that we have given in our presentation. So what led to this outperformance versus underlying industry growth and what is your expectation for say FY26 against your industry volume growth expectation? How should our revenue growth be on a standalone basis?
Krishnakumar Srinivasan
Yeah, so thank you Vaibhav for and thanks for this question. First and foremost, I think our standalone revenue has grown by Almost close to 10%, 9.8% to be exact. And it has far outgrown the overall market volumes. Market has more or less from a production standpoint, you know, sales standpoint, Production standpoint, slightly different. We track more of production standpoint because that’s more relevant for us when we are selling the pistons, rings and engine valves and our other products. So from a production standpoint, the growth has been just over around 1% and we are tracking around 9.8%.
That’s almost outgrowth, which is more than nine times now. Primarily this has come out of, you know, the work that we started almost four or five years back with regards to getting into newer businesses, newer areas, newer segments of businesses like engines, the engines for defense, the defense stations, the railway engines, etc. Etc. There are multiple areas on which we have focused on in the last many years now and that all the businesses that we have won in the past and all the actions that we have taken to grow the business in a manner where it is not dependent on one particular segment or one particular, you know, let’s say only the automotive field.
We wanted to ensure that we derisk it with all the other businesses that we can get and where pistons are used, pistons, rings and valves are used. So we have been able to win that and that’s really helped us to do this.
Vaibhav Shah
Understood. Sir, would you also call we have gained some market share in the pistons business in this quarter over last one year.
Krishnakumar Srinivasan
Yeah, we have been continuously working on our market share and I’m happy to state that some of the new businesses that we have won with the customers and the launch of those new programs that the customers have done has really helped us to actually improve our market share in the country. As well as improve the market share abroad outside the country also we supply to many customers outside India also.
Vaibhav Shah
Understood sir. My second question is on our exports business. So as I understand roughly 10% of our exports also goes to North America as a region. So I just want to understand one is there any duty impact on our exports today to any particular geography? What was that impact in the quarter which has gone by and what is your expectation for the export business overall in terms of growth for the coming year?
Krishnakumar Srinivasan
Yeah, so our exports has classically been around 20% of our sales. But our sales have also grown and obviously on a larger base it’s wavering between 18 to 20% and it will continue to be growing continuously. And even in exports we have won new businesses as I already told you in the previous call. Also even this quarter also we have won some new businesses. So this will continue. And I don’t think there is any one specific region where we are selling around 10% of our products into that region. I don’t think we have given that number anywhere.
But I can tell you for sure that yes, Paris are there, it’s a reality and we are hopeful that the tariff will change in the near future. But even otherwise, our tariffs today, as it compares to the relatively to the other countries that are there which are in, let’s say in the reckoning with regards to the supply of those products, we feel that we are still better off than the other countries. As a result, we still stand to gain and we don’t see any major reduction in volumes or anything from our customers as yet. So we don’t foresee any major issue as such.
Vaibhav Shah
Okay sir, understood. I referred to the FY25 exports mix that is given on presentation slide 16 when North America is a free 10% of our export mix. That was the number I was referring to. But understood we continue to remain, you.
Krishnakumar Srinivasan
Know, there it’s a mix of all the countries, you know, it’s America plus all the other countries. So we have not anyway specified that is only America.
Vaibhav Shah
Understood sir, understood. Thanks for that. My next question is on our subsidiaries that we have now announced. It is very good to see the ramp up in our all the three subsidiaries that we have. Can you highlight in terms of utilization or absolute revenue size for the subsidies where we Today as of Q1 and in the EV Motors business, I understand we had a facility which was supposed to start from this current financial year. So there we in terms of our capacity ramp up plans for that EV Motors business as well as.
Krishnakumar Srinivasan
Yes, so basically we don’t normally give any breakups of our capacities primarily because capacity is constantly changing because we are putting in a lot of capex in almost all the businesses on an average, even in our legacy business we continue to put Capex and also in all the new areas, all the new customer, new companies that we have taken over we have ensured that we are continuously putting money to increase, putting in Capex to increase the output of those companies. So it is constantly changing. So that CAPEX figure will not be very relevant at this stage.
But I can tell you that we are focusing on keeping the capacity utilization well at a good level ensuring that we are able to build capacities ahead of the market because we see the markets also growing quite well. So as a result across all the companies that we are operating on today we are continuing to put in a lot of CapEx. Number one, number two, as far as MFI is concerned we as I said during my in the talk that I gave just now, our we are operating from one facility at this stage which is already which is supplying to all the customers.
We have put in a new facility which if you remember we had started sometime in March of this year and already we are in September. We are thinking of starting the plant and we should be in a position to start operations out of that new plant by first week of October. So that’s already in the offing and we are really growing the volumes there. So we think that that is the right way that we should complement the existing volumes. And it’s a state of the art plant for both the motors and controllers. We’ll make all kinds of motors including the mid drive and the hub motors.
And we’ll make motors right from 250 watts right up to 350 kilowatts.
Vaibhav Shah
Understood sir. Thank you. I have more questions. I’ll come back in queue. Thank you so much sir.
Krishnakumar Srinivasan
Thank you. Vaibhav, Thanks a lot.
operator
Thank you. The next question comes from the line of Krushab Shah from Bugle Rock pms. Please go ahead.
Unidentified Participant
Hi. Thanks for the opportunity. In the plastic business what is the potential for aftermarket.
Krishnakumar Srinivasan
Hi Rishabh Ji, Good evening. Thanks for coming in and thanks for coming into the call and thanks for the question. Yeah, we are, you know there are aftermarket businesses for our plastic injection molded parts also. Mostly as you realize that the plastic injection molded parts are precision plastic injection molded parts which goes primarily as into assemblies and sub assemblies. There are also some sub assemblies which we deliver directly to the customers. There are also some OEM requirements which we supply directly so many of the OEM requirements that we supply directly does have also aftermarket requirement which is network through our existing SPRL aftermarket which is really very complementary to the business that we have in all the other subsidiaries.
So we have a combination of both direct supplies to OEM as well as the aftermarket requirements.
Unidentified Participant
How big could this aftermarket business be?
Krishnakumar Srinivasan
Well you know the initial, all the initial requirements that we have seen is quite demanding and that is a good requirement. So we think that it will certainly grow this segment of the business. But keep in mind that these are only the precision injection molded parts. These are not the normal big plastic parts that are going. So it’s for example the steering gears that we make, it goes only into steering application. So there’s a very strong requirement in the aftermarket for steering gears as and when steering breaks down or there is a, there is an accident or things like that.
And that requirement is already fed by the aftermarket teams that we have. That’s how it operates.
Unidentified Participant
Fine. Thank you sir.
Krishnakumar Srinivasan
Yeah, thanks Vishali.
Unidentified Participant
Thank you. Thanks.
operator
Thank you. The next question comes from the line of Viraj from SIM pl. Please go ahead.
Viraj Kacharia
Yeah, hi, thanks for the opportunity. Just couple of questions. First is on the EV product offering. If you can just give some more historical perspective how we kind of gone about acquiring the technology both in the motors and controllers. So that is one and just to extend that, you know traditionally isn’t present more in hub motors kind of offering but I think we are also in the process of launching big guide motors as well. So can you please give some more perspective how we gone about acquiring the tech. And just to add to that, what is the kind of presence we have currently in terms of any color you can give in terms of end segment application and scv, lcv, pv, auto wheelers and similarly in terms of the customer concentration of profile.
And third is, you know if you look at the space right You’ve seen a very high rate of change in technology, especially in motors. Right. So then how are we going about competing in the marketplace when the end offering itself is seeing a lot of changes in tech?
Krishnakumar Srinivasan
Yeah, so. So Mr. Viraj thanks, thanks for coming. First and foremost as far as the EV motors are concerned, you are right that initially when we started we started with the hub motors which was the model of most of the motor companies. But then subsequently we have gone into all the kinds of motors including the mid drive motors and also various profiling of the motors. It could be switch reluctance motor or synchronous motors. There are also Some motors that we make without the magnets also. So those combinations are also there. So there are multiple areas on which we are working and we will continue to work in all the areas because ultimately we want to ensure that we are able to cater to the industry requirements as per our customer needs.
So most of that is dictated by our customers and the end product that it is going in. So you will observe that we have been continuously growing and as I said, you know, our real growth has started in full swing. And that’s why we are, we are putting up a new plant also in Coimbatore and that plant will also be operational from this from September end. Coming September end. So that’s just around 1, 1.5 months away. So with that we’ll scale up in all the motors that we are manufacturing today. From a technology standpoint, we have always believed in getting the right technologies.
There are a couple of important points here that I should mention. First is we are probably one of the very few motor manufacturers who combine the motors and controllers together. We size it together in our this thing. We test it along with the controller. We test it on our test bench. Our 100% of the, you know, final test happens only along with our controller and that is then supplied to the customer so that customer does not have any problem with regards to sizing the motor and the controller together. That’s one of the major change that we do with regards to the others.
Second, you know, most of our technologies have been, you know, with the help of as far as control is concerned, we have a collaboration with Lingbo as you know and with as far as the mid drive motors are concerned, do it with gridline electric. So we have the technology movement coming there. They are all up to date with regards to all the newer technologies that are coming in, including hairpin bending and everything. All that technologies are available with us and we are almost in line with all the newer requirements of the customers.
Viraj Kacharia
These two questions, can you give some more deeper perspective given the kind of spread we would have in terms of different tech, different product offerings in motor and motor controllers, what is the kind of similarity or differences you see in terms of manufacturing setup? Why I’m asking this is typically see if I look at core products of piston, piston rings or you know, other engine was, you know, we have a very defined benchmarks in terms of, you know, what kind of a minimum threshold we would want to see either in terms of returns or margins before adding any capacity.
But here, given there’s so much variability and the rate of change Is high how what is the kind of similarity or difference you seeing as a manufacturing setup between different offerings? So that is one and second is again if you can give some more deeper perspective in terms of the mix in terms of end segments, whether the lcv, PV or two wheeler and similar. To the customer,
Krishnakumar Srinivasan
we generally don’t give any breakup of these customers, but we are present in all. That’s what, that’s why I said that we ranged our motors right from 250 watts right up to 350 kilowatts. 350 kilowatts are the ones which goes into big buses and other things otherwise applications, including you know, for truck applications, including mining. So there are number of, you know, applications volumes are of course low. As you all know that it is all, you know, we have to be present in all this. We have to size it, we have to ensure that those motors are in for various testings and other things that are going on and multiple levels of validations are going on across various customers.
I can only say that we are now amongst the top three motor and controller manufacturers. We are the only ones who are giving motor and controller size together. There are a couple of others who are smaller players, but in terms of recognized big players, we are the only ones. And secondly, we are amongst the top three as far as motor manufacturing is concerned. So I think we are on a very good way to establish our position as a major motor and controller supplier in the country.
Viraj Kacharia
In terms of customer concentration, say top five, top 10 customers, how would that be?
Krishnakumar Srinivasan
This is a very growing field and it’s very important to realize that many players are trying to enter many of these customers and it’s not ideal at this stage to give any of the customer names because even the customers are keeping it very confidential and they don’t want us to, you know, disclose any of the names. So unfortunately I’ll not be in a position to disclose any names at this stage.
Viraj Kacharia
Okay, just one last question on this and I have two question on other part of the business. You know, one trend also you’re seeing is, you know, oe going for more integrated offering setup. Be it green one or five in one kind of offering where you just don’t have motor or mcu but you have, you know, other drive part value chains also embedded in one system from your interaction. You know, is that a limitation for us or.
Krishnakumar Srinivasan
No? No, we are already making a 3 in 1 also 2 in 1 also depending on the customer requirements. We make everything we can make along integrated with the controller, with the Gearbox we can control, we can give without, we can give with motor and the gearbox together. The multiple combinations are there. It depends on the customer’s requirement and his, you know, the way he has designed his vehicle. So it all changes with the configuration of the vehicle. So we are, we are completely geared up for all kinds of suppliers.
Viraj Kacharia
Okay, just few more questions on the precision engineered products. You know, can you give some perspective how the, you know, where is the product more concentrated in terms of application? Is it more. If I look at the business profile of the two subsidiaries, you know, is it more towards fueling injection or the engine applications or is it more towards the transmission of the drive line? Any color you can give in that sense, it will help understand
Krishnakumar Srinivasan
the split. All over the place. Here we are, we are supplying for steering applications, we are supplying for gearing applications, we are supplying for braking applications, we are supplying for seat belt applications, we are supplying for, you know, trimming applications in the vehicle. We have multiple applications are there, there are not one concentration of any particular. These are all plastic injection moulder. They are agnostic to the kind of vehicles that are made power trains. And we do have some components which goes into, specifically into to injection related components which are very small in nature.
Viraj Kacharia
Okay, so to put it differently, if I look at product applications, where do you see most complexity and how are we positioned in that space?
Krishnakumar Srinivasan
No, it is quite complex. Some of the components that we make for steering gear applications, some of them which we make for headlamp adjustment applications, etc. Are very complex in terms of its accuracies in this. And we are, we are well placed and we are already supplying to many of the, you know, tier one manufacturers.
Viraj Kacharia
Okay, this last question, I’ll come back in queue. You know, if I look at the subsidiary side, can you explain what drives the high margins? Because if you look at other players like Kingpa and others, you know, they make mid teens kind of a margins even though they have been global players. So just trying to understand the margin drivers for, you know, the subsidy, you know.
Krishnakumar Srinivasan
Yeah, so Veera, do you want me to give away such secrets in an open call? So it, you know, we are into niche segment. See, what is very important for you to understand is our products are going into very niche applications. It requires very high accuracies and precision. We put the Capex ahead of time. We put Capex which are very, very specific and very, let me say high accuracy output kind of an equipment. And that requires high precision. That’s why we call high precision components. These components are Finished to finish dimensions in one stroke. And so it requires a very, very high amount of accuracy.
So those kind of components, not many people in the country make it. And that is the reason why, you know, we call it precision, precision components and we have a fairly, you know, the mix of business and the mix of customers actually helps us to maintain our margin. It’s not that one particular set of customers is giving us the margin. It’s not like that. It is a mix of customers. We also supply to music industry. We supply to, you know, many other industry which is different than automotive industry also. And those products also are being, you know, supplied by the.
By our injection molding facilities.
Viraj Kacharia
Would it be right to say that a non auto.
operator
May we request that you do return to the question queue for the follow up questions. Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants the conference, please limit your questions two to three per participant. Should you have a follow up question, we may request you to rejoin the queue. The next question comes from the line of Pradhyubna Chaudhary from JM Financial family office. Please go ahead.
Pradyumna Choudhary
Yeah, hi. Hi sir. Congratulations on a good set of numbers. I just had two, three questions. First one, sorry I missed, I got disconnected at the time of when you spoke about tariffs. So can you just tell how much of a revenue is coming from us and what will be the impact of the tariffs on our business? That’s one second is how do we like. Of course we’ve been outperforming the industry growth due to the factors you mentioned. Is there some sense on how we expect this growth to continue going forward? Like can we sustain such outperformance and what could be the drivers for the same? And lastly, as some of our other acquired entities scale up in business, do we expect our console profitability to come down a bit from our current levels? These three.
Krishnakumar Srinivasan
Yeah, yeah. Console profitability has grown here. It does come down. There’s no reason why it should come down. Number one. Number two is as far as our mix of customers in the export is concerned, as it’s given already in our slide, you’ll see that slide number 16 gives that. But at the same time it is important for me to state there that it is not concentrated. It is very well spread across the globe and that really helps us to derisk our business model because we can any one region, if it is getting affected, we can always complement it by supplying to the other region and we have a fairly good presence across OEMs.
As well as after markets across the world. And another big advantage is even within North America also. You see that we supply to not only the American region but also to countries like Mexico, Brazil and other which is in a quite big manner. So there is no reason why we should get worried at all by the tariff situation number one. Number two, as it is also within the tariff situation we don’t see any major big impact coming to us relative to our other competition. So that is the most important point and that really helps us to maintain our customers and all our customers have reposed total faith in us in terms of our supplies.
Pradyumna Choudhary
Understood. And how do we expect the growth going forward? Can we continue the kind of outperformance? We can do it.
Krishnakumar Srinivasan
We are hoping to. And we are taking all the necessary steps to ensure that we are able to do that. So you can see the performance over the last five years, every quarter we have delivered to the numbers that we have to at least better than the market. Our aim is to ensure that we are able to outgo the end markets.
Pradyumna Choudhary
Understood. Thank you and all the best.
Krishnakumar Srinivasan
Thank you Prithumya.
operator
Thank you. The next question comes from the line of Abhishek Kumar Jain from Alpha Capital. Please go ahead.
Abhishek Jain
Thanks for opportunity and congratulations for strong set of numbers. My question on the cash and the balance is companies are looking for some acquisition as well. So if you can throw some more light on these parts.
Krishnakumar Srinivasan
Thank you Abhishek for this call. And yes we do have as you see the balance sheet is quite strong and it’s still we want to ensure that we are well we are working on number of areas to improve our leverage on the balance sheet and I can tell you that we will continue our drive towards making SPRL more multi product franchise and I think we are on a good way to that. So our drive towards M and A will continue and we are looking at more opportunities.
Abhishek Jain
So you are looking the opportunity in the auto or non auto site?
Krishnakumar Srinivasan
Well you know it’s like this. You know we are looking for automotive auto side get partner who is also having personal business to not take.
Abhishek Jain
Okay. And what would be the size? What would be the size of that? That particular.
Krishnakumar Srinivasan
Crystal gave that at this stage we are looking at all the options. You know you can see how what kind of leverage we have from the balance sheet and we’ll certainly see that we are able to leverage it quite well.
Abhishek Jain
Okay. And in EMF I side. So do you supply motors in India earlier will you enter into the two wheeler and four wheeler space as well, and how much is that current capacity and what would be the earnings for these new plants will start from the September onwards?
Krishnakumar Srinivasan
Yeah, we supply to all the applications. You know, there’s nothing stopping us from any of the applications. The kind of machineries we have put in. The capex that we have put in. The new plan is primarily to cater to all segments of the market. Because we can’t stay only with one segment of the market. We have to ensure that we are able to supply to all segments of the market. There are many customers of ours who are wanting the product to be sold in, you know, within their product portfolio to ensure that we are supplying to all their.
All segments of the market that they attack the market. So we want to be presenting in all of them. So that is how we have built the new plant.
Abhishek Jain
So once this plant will start from the September almost, what would be the peak revenue if the plants are such a hundred percent capacity?
Krishnakumar Srinivasan
Yeah, so we don’t. We are not giving out these figures at this stage, but at the relevant time we will certainly be diverging those numbers.
Abhishek Jain
Thank you for that. Thank you.
Krishnakumar Srinivasan
Thank you.
operator
The next question comes from the line of Nandan Pradhan from MK Global Financial Services. Please go ahead.
Nandan Pradhan
Good afternoon, sir. Congratulations. Just one small character call. We had mentioned that the Coinbacher plant should start by end of Q4 and now I think we slightly push back October so you could share some light on what has caused delay and.
operator
Sorry to interrupt. Can you be a little louder?
Nandan Pradhan
Yeah. It is better.
operator
Yes.
Nandan Pradhan
Yeah. So we had initially called out that. The plant would start by end of Q4 and now it has been pushed to October. So one is why will buy this delay being caused and the second is once the plant ramp up. So how long do you think it would take for it to reach its full capacity?
Krishnakumar Srinivasan
No, earlier we had stated this where we had said that we will start our operations in the new plant by end of July. And now we have decided to combine the, you know, our existing facility also into one, into the, you know, new plant. Because we think that there will be synergies with regards to, you know, having our entire management bandwidth and everything. So we are combining everything into a new plant as a result of which we ensure that we are able to build up the required area and bring both the existing plant and the new plant together in one location.
That is the reason why it has got pushed to end September. But I think we are on a good way in terms of the existing facility is still operational and we will be ensuring that we shift at the right time once the second the multiple lines that we are putting up in the new facility are operational and up to speed. Duly validated by the customers. So it’s important to state here that we are probably amongst the top few to have got ICAT approved and the PM E drive approval. So it’s important that all these work is done with all the due approvals so that customers are able to use the product very seamlessly and be able to get all the benefits that they are aiming to get for their end customers.
Nandan Pradhan
Thank you sir. And just a small follow up. Do you expect any one offs during this transition where you that the old plant and everything gets shifted to the new Coimbatore plant?
Krishnakumar Srinivasan
No, no, no. Absolutely not. That’s what I explained that. That is why we are. We have had to do it in such a way that it is able to complement each other.
Nandan Pradhan
Okay. So that answers my question. Thank you. And all the very best.
Krishnakumar Srinivasan
Thank you. Thank you Nanda.
operator
Thank you. The next question comes from the line of the. From latest pms. Please go ahead. Yes.
Unidentified Participant
You had mentioned that.
operator
Your line is breaking.
Unidentified Participant
Can you hear me now?
operator
Not so good. Your line is breaking, sir.
Krishnakumar Srinivasan
Can’t hear it all.
operator
No. The next question comes from the line of Kishan bank, an individual investor. Please go ahead.
Krishnakumar Srinivasan
Please go ahead, Kishanji.
operator
As there is no response from this current participant we will move towards the next question. The next question comes from the line of Manik Bansal, an individual investor. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the opportunity. So I just have a single question. Can you please share the trend of the piston prices over the past two to three years? And how do you expect the piston prices to move in the near future? And. Yeah. Yeah. Just. Just this one. I’ll ask the other one. Hello.
Krishnakumar Srinivasan
Yeah. So piston. See what. What happens is piston prices are all linked to, you know the overall prices of aluminum and the metal prices. The way it moves and mostly linked via the LME model. And what happens is we get compensation from our customers as the material moves up or down. Or we have to increase or decrease the prices based on that. So it’s all backended by that. And there is no this thing. Only thing is we recover our. What is important to see is are we able to recover our margins? Yes, we are able to recover our margins.
And we are able to ensure that we are able to maintain our margins. That’s what is the most important here. So I think it’s. I hope I could. I could at least give you some Idea about this.
Unidentified Participant
Yeah, yeah, yeah, yeah, yeah. But is there any further segment by passing on, is there more of a challenge?
Krishnakumar Srinivasan
No, there is nothing, nothing like that because contracts are all back ended.
Unidentified Participant
Okay. And this last question, like if you can just give some light or color on the industrial growth that you are expecting on segment basis like TV and CV mainly.
Krishnakumar Srinivasan
No, see there again most of the. If you really see the end markets have grown only by around 1% in this quarter and we have been able to grow by around 9%, 10%, 9.8% to be exact. And this comes from ensuring that we are able to get into newer markets, newer segments of the business that I talked about in my speech that I gave earlier. And we have been able to enter into those segments and be able to supply to those. So that is what has really brought in the growth.
Unidentified Participant
Okay. Okay, thank you. Thank you.
Krishnakumar Srinivasan
Thanks Manish.
operator
Thank you. Before we move towards the next question, we would like to remind participants you may press star and one to ask a question. The next question comes from the line of harsh an individual investor. Please go ahead. Hello.
Unidentified Participant
Am I audible?
operator
Yes.
Krishnakumar Srinivasan
Yeah, Harishy, please go ahead.
Unidentified Participant
Yeah, so thank you for taking my question. I just wanted a clarification on the working capital. So we employ roughly thousand odd crores in working capital. So how much of that goes to aftermarket, particularly in terms of our receivables. And my second question is we. You listed marine, railways and defense as sort of your automotive verticals. So if you could just throw some light on what kind of opportunities are we seeing in these verticals.
Krishnakumar Srinivasan
Yeah, so first and foremost, I don’t know where you got the figure of thousand crores as a working capital. You’re talking about including cash in bank.
Unidentified Participant
No, no, I am. So roughly 900, 900,000 crores of inventories and receivables. Right. Combined.
Krishnakumar Srinivasan
No, you have to reduce the payables also.
Unidentified Participant
Okay. Yeah, I was just talking about the asset side. If you could just tell particularly in terms of receivables, how much are of those are originating from aftermarket.
Krishnakumar Srinivasan
Well, we don’t give those kind of figures, but it is, it is as per our norms. You know, we have very clear norms in terms of our working capital, including finished goods and the kind of great terms that we give to our customers. And it’s all completely within norms. So we don’t see any major issue there. You can see it over the years it has moved in the same band.
Unidentified Participant
Yes. It’s been largely in the line of revenues and on the marine and railways and defense. What sort of opportunities are you seeing on those sectors?
Krishnakumar Srinivasan
These are newer entry points for us and those are areas where it offers multiple applications and we ensure that we are able to supply to the customers accordingly.
Unidentified Participant
Okay, thank you so much and congratulations on another good quarter.
Krishnakumar Srinivasan
Yeah, thank you. Harsh.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Krishna Kumar Srinivasan for closing some. Thank you. And over to you, sir.
Krishnakumar Srinivasan
Okay. Once again, thank you to everybody. Thanks a lot for joining and actively participating in the call today. We have. We have had a very interesting questions today and we have. I think, I hope that we have been able to answer most of the questions. In case you have any further queries, please do reach. You know, please do feel free to reach out to us. You can get in touch with in with our universal relation partners at Ernst and Young. On behalf of the company, we again deeply appreciate your time and engagement. Thank you once again.
Please take care and goodbye. Thanks a lot.
operator
Thank you. On behalf of. Of Sriram Systems and Rings limited. That concludes this conference. Thank you for joining with us. And you may now disconnect your line. Thank you.