Shriram Pistons & Rings Ltd (NSE: SHRIPISTON) Q3 2025 Earnings Call dated Feb. 03, 2025
Corporate Participants:
Krishnakumar Srinivasan — Managing Director & Chief Executive Officer
Analysts:
Rushabh Shah — Analyst
Chirag Jain — Analyst
Vaibhav Shah — Analyst
Maulik Gandhi — Analyst
Chinmay Nema — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Sri Ram Pistons and Rings Limited Q3 and 9 months FY25 earnings conference call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded today from the management. We have with us Mr. Krishna Kumar Srinivasan, the Managing Director and Chief Executive Officer. Mr. Prem Rati, the Executive Director and Chief Financial Officer and Mr. Pankaj Gupta, the Deputy Executive Director, the Head Legal and 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. Krishna Kumar Srinivasan for his opening remarks post which we will open the floor for an interactive Q and A session. Thank you. And over to you, sir.
Krishnakumar Srinivasan — Managing Director & Chief Executive Officer
Thank you. I hope you are able to hear me well.
Operator
Yes, sir. You are loud and clear. Please go ahead.
Krishnakumar Srinivasan — Managing Director & Chief Executive Officer
Okay, thank you very. Good evening to everyone. On behalf of the Company, I would like to thank each one of you for joining our Q3 and 9 months FY25 earnings call. Our financial results, investor presentation and press release have been uploaded on the Company’s website and the stock exchanges and we hope you have all had the opportunity to go through this thing. Q3 and 9 months FY25 have been have again been a milestone quarter and the nine month period for the company. As we delivered our highest ever numbers as compared to the previous third quarters and the nine month periods of the previous year, our consolidated total income grew by 11.5% year on year in quarter three FY25 to reach rupees 8751 million and 15.3% year on year. In nine months FY25 to reach rupees 26,454 million. We have continued to outperform the industry which grew by low single digit figure this quarter. On an overall basis The EBITDA and PADD2 have recorded highest ever numbers in Q3 and the nine month FY25 period. Our performance is a testament to to our leading market position as well as our team’s consistent efforts towards achieving long term success and ever outgrowing the market in terms of the industry. In the nine month period passenger vehicles has recorded a muted performance despite attractive year end discounts upper by the oem. The highest volume segment which is the two wheeler segment continued to grow in double digits. The commercial vehicles and the three wheeler industry remained flat as compared to the previous year. Thus we are continuing to outperform all the end segments of the auto industry in this quarter as well. Furthermore, during the quarter the EV penetration has also not been very good. We have been consistently communicating with you about our overall strategy to further diversify our business model and we have taken a very positive step in this regard during this quarter as we had talked with the investor call that we did immediately after the acquisition of TGPL we acquired 100% stake in TGPL Precision Engineering Limited which is into the business of manufacturing precision plastic injection molds and precision molded components for the automotive, electrical, consumer goods and medical sector and has two state of art manufacturing facilities in Noida in Uttar Pradesh. They have advanced capabilities for design, development and production of high tech precision molds and components. Some of the clientele of GEPL includes Continental, Madison. Denso A Sai, India Glass, Havil’s Tower, Kohler, Gillette, Scheffler, Nidec and many more. And as you can see from the customer list, this acquisition will completely complement our previous acquisition of SPR Takahata very well which is also into the manufacturing precision injection molded parts and molds for the automobile sector. Coming back to our standalone business, our exports continue to face some pressure given the geopolitical tensions, high volatility in the freight rates, high energy costs especially in Europe, leading to slowdown in the European markets and other Middle east and South American markets. However, notwithstanding the above, we expect these markets to recover and come back to their original levels in the medium term soon even in the domestic market. We are positive of the long term direction of the Indian industry and are confident that the short term situation will correct in the near term. Given the push from the government as well as the major transition towards greener alternatives like the electric vehicles and alternate fuel solutions like hybrid hydrogen, compressed natural gas, HCNG applications, LNG applications, flex fuel applications and biofuel applications, the Indian government has created momentum through faster adoption and manufacturing of hybrid and electric vehicle scheme which is a famous scheme as it is shortly called and keeping a very aggressive target of 30% new electric vehicles sales contribution by 2030 with a push from infrastructure manufacturing expansion. This approach is expected to achieve cost improvements over the long term and create a broader market spectrum wherein all the powertrain technologies will coexist with a greater push towards the greener solutions. This drive will push the component manufacturers to give further enhanced solutions to meet the above environmental norms thereby pushing the boundaries of the existing technology solutions. So as we say every time we expect all the powertrain technologies to coexist because even if we take a muted 6 to 7% average CAGR growth of the auto industry in the next five years till 2030 we expect a growth of almost close to 40% whereas a penetration of EV to a tune of 30% which means there will be more IC engines made in 2030 as compared to what’s made today. While the industry continues to grow, we are confident that our company is well positioned to capitalize on all the growth opportunities that we foresee across all segments of the business. The broadening of product offerings enables us not only to strengthen the tech backed components for all powertrain solutions for automotive and also for various non automotive solutions. Like railway applications, defense applications, snowmobile applications mainly for our exports, lawnmower applications also for exports, compressive applications, braking applications, etc. We will continue to work on crafting business strategies to navigate through the dynamic market conditions with a focus on delivering sustained growth in both the top line and bottom line as we have been delivering over the last 10 years. Now I will just quickly take you through the key financial highlights for the quarter beginning with our consolidated performance. Our company has registered a year on year growth of 11.5% in total income to rupees 8751 million for the quarter from rupees 7850 million reported in Q3 of FY24. Similarly, our EBITDA increased by 9.6% year on year to rupees 1978 million in quarter 3 FY25. From rupees 1806 million reported in Q3 of FY 24, our EBITDA margin stood at 22.6% during Q3 FY25. The profit after tax for Q3 FY25 witnessed 12.3% year on year increase amounting to rupees 1210 million as against rupees 1078 million in Q3 of FY24. Our cash PAT for Q3 FY25 stood at rupees 15. 18 million as compared to rupees 1367 million in Q3 FY24 representing a growth of 11% year on year. For the nine month FY25 period, total income registered a growth of 15.3% to rupees 26454 million from rupees 22951 million in nine months. FY24 EBITDA during this period stood at rupees 5979 million registering a year on year growth of 13.6% over rupees 5264 million reported in the nine months of FY24. Our EBITDA margins during during the nine months of FY25 was at 22.6%. Profit after tax grew by 13% year on year to rupees 3640 million from rupees 3 Triple 2 million in the nine months of FY24. Similarly, the total cash packed for nine months of FY25 witnessed a growth of 14.9% year on year to rupees 4554-4545-5400-0000 as against rupees 3964,000,000 in the nine months of FY24 period. So coming to a standalone basis. Standalone performance basis. Of spl. The total income recorded a year on year growth of 9.4% during the quarter to Rupees 7,956 million from Rupees 7271 million reported in Q3 of FY24 and on the backdrop of the market growth of an average of around somewhere close to 6%. EBITDA saw 8.8% year on year growth to rupees18.89 million in Q3 of FY25 as compared to rupees17.36 million in Q3 of FY24. The EBITDA margin stood at 23.7% during the quarter. The profit after tax witnessed a growth of 11.3% year on year reaching rupees 1,204 million during Q3 of FY25. From rupees 1,082 million reported in Q3 of FY24, our BAT margins improved by 25 basis points to 15.1% as compared to 14.9% in the same period of the previous fiscal. And similarly our cash back for Q3FY25 stood at Rupees14.21 million compared to Rupees1,310 million in Q3 of FY24, representing a growth of 8.5% year on year. So for the total nine month period, the total income witnessed a growth of 7.7% to Rupees24,0.41 million from Rupees22,321 million during the nine months of FY24. EBITDA was reported at Rupees 5,654 million in nine months of FY25 as against 5,280 million in the same period last year. The EBITDA margins for the nine months of FY25 slightly higher at 23.5% as against the 23.3% of nine months of FY24 last year. Profits after tax for the period was at rupees 3593 million up by 10.1% year on year from rupees 3262 million in the nine months of FY24 and profit after tax margin for the nine months of FY25 improved by 33 basis points at 14.9% as against 14.6% in nine months of FY24. The cash PAT stood at rupees 4236 million as compared to Rs. 3912 million, again registering 8.3% year on year growth. So as you would see from both the results, the consolidated as well as the standalone. Overall, our company continues to register a very robust performance in all respects across all segments. Also, I am happy to state that looking at the improved performance of the company, the board this afternoon has continued with its policy to reward all our esteemed shareholders with an interim dividend of 50% of the face value of rupees 10 per share. That is rupees 5 for equity share. With this I come to the end of my talk and I would request Alaric to open the questions the floor for any question that you may have. I thank you again, once again for taking out the time during this evening and coming into this call. Really appreciate that. Thank you.
Questions and Answers:
Operator
Thank you so much, sir. We will now begin with 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 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 is from the line of Rishabh Shah from Bugle Rock pms. Please go ahead.
Rushabh Shah
Yeah, hi. I had two questions. What focus on improved sales was penetrating into newer markets in the aftermarket and exports? So how has it progressed on those lines?
Krishnakumar Srinivasan
Yeah, that’s the first question, right? You have another question or should I answer this question first?
Rushabh Shah
We answer this question and I’ll ask for a second question, please.
Krishnakumar Srinivasan
Okay, so, yeah, so see, we have always continued to penetrate the aftermarket and as I said, you know, exports, it has been a little tough primarily because exports markets have got affected because of the geopolitical situation. But as far as the domestic market is concerned, we have actually grown our domestic aftermarket and we have been able to improve on our touch points that we have. And across the country we have over 1200 touch points now and then. And all the touch points have actually improved our visibility in the market and we have been able to actually penetrate very well in the aftermarket. So that’s continuing and I think as a overall progress, aftermarket has been one of the good stories this year so far.
Rushabh Shah
Just a follow up on this one. You said that you have penetrating into new market. So could you please tell me which new markets you have entered in the past few years?
Krishnakumar Srinivasan
There are, you know, there are two ways of looking at the newer markets. One is from a market perspective overall and one is from a product perspective in the aftermarket. In the aftermarket we have introduced some of the very important products which complement our overall piston rings and that business. Because now for example the connecting rods that are required because every time the engine is required, the connecting has to be changed if the piston requires a change or if the whole this thing has to be changed to ensure that the performance is really good as original. So we have started combining all this and trying to give this as a package. And so we have started supplying the Conrods. We started supplying a couple of other related products like the valve seeds, the valve guides and other things along with the thing with very clear focus on growing the overall, what should I say the packaged business of bringing all these parts together. So that’s really helping us number one. Number two, as far as the newer business areas are concerned, it’s, you know, we are looking at. Within the country we have multiple areas, you know, runs into figures that we have gone to different cities, newer, newer contact points and other things, you know, like starting from Assam to all the way down right up to Kerala, almost at every places including, you know, both geographically as well as ensuring that we are able to cater to those businesses, those markets through a well distributed supply chain is extremely important in such case. So we have actually strengthened our supply chain distribution channel and we are able to cater to those demands that are coming from these markets.
Rushabh Shah
My second question is since you don’t give breakup of your revenue, could you please mention the names of your competitor in this business as well as your business. Like for hydrogen systems, who else are there in your business?
Krishnakumar Srinivasan
Yeah, so hydrogen systems as I said is a new development. There are at least three customers with whom we are. Our product is under advanced field trials. You know, there are. It’s a huge development, you know and it takes. It will take a lot of time with regards to the development fortifying into overall business case because the OEM has to do a lot of other things to be able to make it successful. Like ensuring that the hydrogen. No, we. Most of the customers have now realized that they have to keep the hydrogen at the high pressure. So the safety requirements of the vehicle has really has to be looked into multiple times. And then we have to have at least three redundancy factors on the safety aspect. And at the same time, you know, there are factors like the hydrogen embitterment and other things that comes into play. Which has to be tackled. So there are a lot of developments that are happening across these areas based on all the field trials and other areas that we are working on. So I think it will be a huge development, but it is progressing quite very well with all the customers. And I think as compared to some of our. Based on our discussion with our partners, as compared to other countries, I think India has taken a big lead on the development of hydrogen as a fuel. And I think we are progressing very well thanks to the Reliance, you know, network as well as all the customers working with. Relax.
Rushabh Shah
Could it be competitors also?
Krishnakumar Srinivasan
Adam,
Rushabh Shah
Would you please name your competitors?
Krishnakumar Srinivasan
No, we. We don’t name our competitors. Sorry.
Rushabh Shah
Okay. Thank you. Thank you.
Krishnakumar Srinivasan
Yeah, thanks.
Operator
Thank you. A reminder to all participants. You may press star and one to ask a question. The next question comes from the line of Chirag Jain from MK Global. Please go ahead.
Chirag Jain
Hi, good evening, sir, and thanks for the opportunity. So just wanted to know, in this quarter, the gap between our standalone and consoled revenue growth has actually narrowed down to just about 2 compared to about 8 to 10% that we did in the first two quarters. So how do we see the EV powertrain and the plastic injection molding business shaping up over the next two, three years? If you can share some thought, that would be very useful.
Krishnakumar Srinivasan
Yeah. So basically the reason for this is not because of the, because the other group companies have not done the business have not done the last quarter. We had the beginning of, you know, the Takata business which was rectified in the October of last year. So we got the advantage of the, you know, quarter on quarter this thing. But otherwise, you know, from this quarter to the next quarter, you will not see that massive change because that was already recorded in 24. So that’s why it’s only a base effect that is leading to the sector. But coming back to your second part of the question. In terms of how our other businesses are doing, they’re actually producing quite. They are online with their budgets and they are. Almost all the businesses are outgrowing their markets in terms of the growth. And if we have an average growth of 3 to 5%, we are on an average outgrowing by 100% in all our businesses.
Chirag Jain
Okay. And very specifically on the EV powertrain business, would you share some update with respect to the new plant and how, let’s say the new order wins are shaping up over there?
Krishnakumar Srinivasan
Oh yeah, certainly. You know, there are many. Massive actions that have happened in this quarter as far as the EV plant is concerned. One is that we are probably one of the very few suppliers in India to get the ICAT approval and the PM E drive approval on both our motors and controllers which required a minimum level of localization. So we are probably the only one who have been able to demonstrate the complete localization to the ICAT authorities and being able to get the approval from them so that all our customers will be able to get the same subsidy. That’s point number one. Point number two, we have already, as you might have seen in the market, the new, you know, vehicle that was launched by Ampere is with our hub motors and controller. So that’s a, that’s. And that’s one of the reason how Ampere has been able to meet the targets in terms of the target levels of costs and price at which they have launched the vehicle. And we have many other customers which are in the fold which will be the moment the vehicles are released. I think I’ll be in a position to release the names of those customers. But to tell you very frankly, I think we have to start looking at further expanding our facilities. That much I can tell you.
Chirag Jain
Okay, if you can share some thoughts, how much would be the revenue potential in the EV powertrain business that we are setting up in the current phase?
Krishnakumar Srinivasan
Well, it’s again a forward looking statement, very difficult to give Chirag. But I can only give you an answer in a manner that you know, if you are looking at just the motorcycles and we are looking at 3 million or 4 million vehicles to be made and less than 2 million motors that can be supplied as of today with regards to all the capacities that are, we have a huge potential for growth as far as the value is concerned.
Chirag Jain
Understood. Thank you so much. That’s it from my side. I’ll come back in the queue.
Krishnakumar Srinivasan
Yeah, thanks a lot.
Operator
Thank you. Participants, please press Star and one to ask a question. A reminder to all participants, you may press Star and one to ask a question. The next question. Is from the line of Vaibhav Shah from DSP Mutual Funds. Please go ahead.
Vaibhav Shah
Yeah, hi. Thank you. Congratulations sir, on a decent set of numbers. My first question is generally from a medium term perspective. We hear lightweighting as a key trend within the automotive space. And given that now we have focused a lot in terms of plastic position in injection molding as a segment. Could you talk about some of the products or the opens that you have in terms of substitution which is happening from cementel to a plastic component cell? How are you looking in terms of this segment? We have the Daka Hata division that we have done. So any sort of revenue potential that you are looking combined with these two businesses and from a medium term perspective.
Krishnakumar Srinivasan
Yeah, so thanks, thanks for the question. So basically, let me explain our, you know, plastic injection molding business. You know, our plastic injection molding business is basically precision plastic injection molding components. You know, we don’t go behind run of the mill items or items which will, you know, which, which goes into major, you know, let’s say positions in the front bonnets and the, the front end portions of the, of the vehicle car segments and other things. The products that we make are products which goes into tier one suppliers. And it goes as more as components for internal pigments, like for example, the steering gear that is required inside a steering gear pump and the steering column. Now this is a gear which requires precision metal injection molding along with insert molding. And it requires a lot of stabilization of the teeth of the gears and other things to maintain stability of the thickness and stability of the overall performance. Those kind of products are the ones that we make. We make products for specific injection requirements, make products for seat belt requirements. We make products for airbag requirements. We make products for breaking arrangement braking requirements. We make products for trim components. There are also some 2K components that are required for A pillar, B pillar parts which also we make in very specific sizes. We make products which goes into chain drive systems and things like that which requires very high precision and stability of profile maintenance. Now all this requires a very special kind of. Engineering and technology. And that’s what we get from both the time intervoup as well as the Takafa business. And that positions us well to be in a very specific area. We don’t really go behind mass weight segment reduction, weight reduction components like replacing some steel into plastic or aluminum parts into plastic. We don’t normally. We are not normally going into the. Because our components are all very small components which goes inside some of the sub assemblies and parts. So that’s point number one. But notwithstanding that, we certainly make certain parts which also goes into EV applications. For example, stability of the overall, you know, what should I call it as the ECU housing which requires not only cooling as well as it requires a lot of stability of the wall thickness. Now that is a big component which is replacing many of the steel. The steel parts that were being used gets replaced now with these parts. If we are able to deliver those stable conditions. And we have already demonstrated that our parts have been applicated already. We are already working with some customers to work on this and give them the solutions. So there are such way, many, many such components which goes into these kind of applications. So that’s where we stand as far as. So that is why we are able to command a very high technology cost for these components and we are able to maintain our margins.
Vaibhav Shah
Sure sir, this is very helpful. Could you also talk about some specific details as this tasking, injection molding that we have in terms of overall market share that we have currently in the automotive offering set? What’s the average?
Krishnakumar Srinivasan
You know, we don’t normally give our market share figures but I can only tell you that with two of the major companies which are now under the fold and you know, making this precision plastic engine price, our market share has really been. Is really very good in the market today.
Vaibhav Shah
Sure sir. And would you also be able to share some details in terms of average content value that we give between say standard tubular or tubular print like is it a material sizable opportunity over next say three to five years. The average ASP value of things that we can give to Taka yield. Could it be substantially higher kit value offerings that can grow faster over a number of whatever growth we are anticipating from this region?
Krishnakumar Srinivasan
Yeah, see basically the way I look at it is these components. You know, as newer vehicles are coming into picture, as new EV vehicles are coming into picture, there are many areas which require very high amount of precision injection molded parts. And many of these parts earlier were being made with metal parts because of, because of the maintenance of the stability and maintaining the tolerances. Now as we are able to make it through injection molding and also give the required life, it is getting replaced by these parts. And most of these parts are actually, you know, we are working on multiple areas of replacements of such components and these are all getting developed for various customers, including many, many, many EV components, EV manufacturers, you know, in terms of the kind of fuse boxes, the kind of components that goes into the case workflow, even components which are going into the Chedamo chargers and others, there are a lot of intricate parts which are going into those chargers which are getting applicated with very precision high induction molding parts. So those are the areas that we are working on. There are also many 2K 3K components, as we call it, 2K 3K injection molding components that is required by our customers on which the company is working on today. So that’s the kind of picture I can give you at this stage. To give you exact, you know, content for a vehicle will become very difficult because we also have not done a very detailed exercise because many of these things are still the work in progress today.
Vaibhav Shah
Sure, sir, Appreciate that. Update on this division. My second question is regarding exports, and this is a little bit premature to ask, but as of FY24, our North America exposure was somewhere around 12 to 15%. Has any of the customers sanded out any impact due to this type related segment issue which can come up and would we be open to say investing into some manufacturing business from that geography or do we continue to export from New York? Any view on this update?
Krishnakumar Srinivasan
Well, the view on this is, you know, our exports to America will continue and our customers are clear on this that it’s not easy for some of those parts which have been developed to again get it developed in, in those regions and then get it, you know, approved through a very detailed validation that is required. The validation program itself run for over one year on the existing components. So it requires a lot of development and validation and it requires a lot of money to be invested up front. And I don’t think all this is going to happen and India, the exports from India are going to continue and I don’t think that will get affected in a big way. In fact if at all it helps. I think the exports are only going to increase because of all the other actions that have been taken geopolitically by the governments there. And we expect that to be actually incremental to us in some way or the other. We have already discussed the discussing this and the overall USMCA rules that were formulated is already in, in a kind of a flux because of the, you know, tariffs that have been applied by us on Mexico and Canada.
Vaibhav Shah
Sure sir, thank you. I have a third and final question very quickly on our revenue by customer segments. So two parts to the question. Any outlook in terms of our non automotive revenue share which was close to 3 odd percent as of FY24. How should we think this contribution going up in the next one to two years given that now we also have TGPL which has a lot of non automotive exposure again over here. So any perspective in terms of our administrative contribution from non auto. And second is, I just want to understand from a pistons and piston wings perspective the aftermarket share in this business is significantly higher, right? Close to 27 or 30 odd percent of our revenue. Now when I compare to other automotive products like say suspension or other engine products, the aftermarket segment is not that very high. So could you give some perspective in terms of how the aftermarket is placed out over here, some insight into how this market is going. And I understand that profitability will be good in this aftermarket segment as well. So if the segments contribution continues to go up, any view in terms of EBITDA margins that we do has that most scope of improvement going forward? Thank you.
Krishnakumar Srinivasan
Well basically you know, our aftermarket will continue to grow primarily because you know, the requirements of the, you know, whenever the engine goes for an overhaul piston, the piston pin, the piston rings, the valves, everything has got to be changed overall and that requires a good amount of the same. And you know, so there are a number of, you know, overalling exercises that happen across India and we are having a fairly good position in terms of the market filled rates as we call it in terms of the requirements across all touch points in the country. And we have really grown that touch points and that has really, we have invested heavily over the last many years and that’s giving us. Good results in terms of ensuring that our products are all available across multiple markets in the country and across each and every nook and corner in terms of the overall requirement. Now what normally happens is whenever engine gets overhauled, all this gets changed. And along with that there are a couple of other parts also that require a change like the conrods, like the, you know, the crankshafts and other things. These are some of the components that through our supplier partners we have been able to develop for specific markets and we are also trying to sell it through our network using the advantage of our network. And that’s, that’s really helping us to grow that business and we will continue to do that across the market. And we have, we have also as far as the export part is concerned, as I told you earlier, the business has been affected primarily because of the geopolitical situation and the energy costs and other things, which is leading to a heavy, you know, very disoriented kind of a price increase across segments in those markets, thereby leading to customers not taking the risk of doing any aftermarket changes. So they continue to run the product with their vehicles and other things for some more time rather than going in for any major overalls. So I think this situation will change very soon once there is more stability in the market and geopolitical situation improves. And I think this will happen very soon, hopefully.
Vaibhav Shah
Thank you sir. And non automatic share within our revenue.
Krishnakumar Srinivasan
See, just to give you a perspective on that, as I said, business that way, if I take only the SPRL business that way, is now more than 50% de risk because we supply the components to railways, marine engines, to, you know, various applications which are very, you know, where it is going to be very difficult to electrify. Like also some genset applications and also some, you know, off highway applications, harvester applications, etc. Etc. So there are many applications which are not going to get electrified very soon. Those are all de risk business already. And that component is over 50% now. And on top of it we have, you know, all the new businesses that we have acquired over the last three, four years which as a contribution to our overall turnover is slowly increasing. As I said, the plastic business itself will be almost close to find the course and in a 3000 odd crores or crores overall turnover, 3500 out crores. So naturally it will be a sizable business. And you know and with the 50% D business I think we are in a very very safe situation today as a company.
Vaibhav Shah
Sure sir, thank you so much. And just last, very quickly, one last question if I can squeeze in, if I look at overall the coimadur plant, if I remember it correctly it was supposed to be starting in Q4 of this financial year. Are we on track in terms of commissioning and starting us? When should we expect ramp up from that plant?
Krishnakumar Srinivasan
We are not on track and happy to state that the plant is coming up really very well and you know we are looking at starting in the before by the end of March
Vaibhav Shah
And capex number for this year and next year if you can share
Krishnakumar Srinivasan
No capex numbers we don’t share but I can tell you we continue as I have always said that we will continue to invest in both our legacy business as well as our legacy businesses for newer products like the hydrogen pistons pistons for very different kind of applications like the 100% ethanol. There are a lot of investments to be done for the reins required for these applications. A lot of investment required to be done for distance for these applications including steel distance. So we are working on investing in those areas for our legacy business and also we continue to invest into newer areas in the acquired businesses both for motors and controllers as well as for the plastic injection molding. So while we continue all this the company is also continuing to look out for further investments and further MNDI opportunities which we are working on and we will inform the market at the right time.
Vaibhav Shah
That’s it. Thank you so much for the updates. Wish you all the best.
Krishnakumar Srinivasan
Thanks a lot. Thanks a lot.
Operator
Thank you. Participants, please press star and one to ask a question. The next question is from the line of Molik Gandhi from VALQ Investment Advisors. Please go ahead.
Maulik Gandhi
Hello sir, Good evening and thank you for the opportunity and congratulations on a good set of numbers. My first question was on something that mentioned in the previous call that the export markets have been slow in the last two quarters and but majorities of the companies have exhausted their stock and are coming back for like improved stocking. So are you still holding on to the View for the next quarter and the subsequent quarters on this? Like I know this quarter wasn’t because of the geopolitical situation but are you holding the view still?
Krishnakumar Srinivasan
Yeah, no, the view is slightly different now that the markets have come back. The coming quarter, we are seeing a slight uptick in the requirement from the customers. As a result, we are hoping that our exports business may not go back to the original level immediately, but it is rising up as compared to the previous two quarters. The last two quarters were affected, but I think we have been able to cover it up with all our other businesses. And this quarter we are seeing this increasing. So we are. We are actually looking for a healthy quarter this coming quarter.
Maulik Gandhi
Okay, okay, that’s helpful. Thank you so much. And my second question was on the fact that considering that you had mentioned that TGP and Takaka would be actually synergistic to each other. So like on a. From a growth perspective, how do you see those two playing out? Because I think they cater to different segments in the precision injection molding parts. So like, how do you see. This is the first quarter, we are consolidating TGPL into our financials. So going forward, how do you see TGPL playing out? Like the growth of tgpl?
Krishnakumar Srinivasan
Yeah, the good part is, you know, both TGPL and Takasa, they produce parts which are, you know, from a product perspective, complementary to each other. So from overall basket of, you know, the plastic injection molded parts, precision plastic injection molded parts, there are not too many common parts that they make for different customers. So between customers, also, even if you see the customer list, we find that the customer list is fairly different in both the companies, thereby giving us a very complimentary kind of a situation in both these companies. And secondly, in terms of the product, you know, there is hardly any overlap with all the products because even if they go to the same customer, the products, the customer does not pay a mold cost for both the companies to really produce both the parts, you know, so the same part. So it normally happens that they give one part to one customer and one supplier and the other part to the other other supplier. So that way from a product perspective also it becomes very complementary. So with that, what is happening is we are seeing a lot of, and as I said earlier, alluded to in the earlier comments, that we are looking at many of the components getting into plus precision plastic injection molded parts, which requires good amount of change and investments. And we are working in such a way that both the companies will be really full of as far as their requirements are concerned in terms of the overall new growth programs.
Maulik Gandhi
Okay, just to follow up to this question, like as you had mentioned that the precision injection molding business is margin accretive. Especially the TGPL business. So I know you don’t provide guidance but like would you like on a let’s say one year, two year view, would you think that it would like form some part of our turnover, Would you say that the margins would improve going ahead?
Krishnakumar Srinivasan
Yeah, they already, they already have a fairly good margin. I think at least the initial figures are already known to the market. So we expect to maintain those margins and or if possible improve it. It’s not for automotive parts and components. It is not very easy to keep increasing margins continuously, but maintaining the margins in itself is a kind of increase that we can maintain. So I think overall, looking at the synergies and the kind of capacities available, if we are able to, not if we are able to even defer capex on these parts and use the capacity that is available between these two companies, I think we’ll have a very marked improvement in our utilization.
Maulik Gandhi
Okay. Okay, thank you. That helps a lot. Thank you so much.
Krishnakumar Srinivasan
Thanks a lot.
Operator
Thank you. A reminder to all participants, you may press tie and one to ask a question. The next question is from the line of Chinmay Nima from Precedent Capital. Please go ahead.
Chinmay Nema
Good evening sir. So, just wanted some color on the demand in the aftermarket segment. Is it, is there a one is to one correlation in terms of what we see on the primary sales for all the automotive player or is that segment able to hold on to its own demand, just some subjective color on what you’re seeing?
Krishnakumar Srinivasan
Yeah, you know, there is absolutely no correlation between the OE sales to the aftermarket requirement is extremely difficult to work out. No, I think for times and for years together people have tried getting some kind of correlation. But it is absolutely, you know, this year could be X percentage, next year could be Y percentage, next year could be Z percent. So it’s very difficult to really make that out. The best way of, you know, answering this is, you know, there is going to be always a continuous work, at least in India to see that a vehicle gets used for a pretty long time. And that’s what gives us the confidence that the aftermarket will continue for a very long time. Now when I say even after EV penetration, even if 100% EV penetration takes place, I think the aftermarket will continue for the next at least 15 to 20 years to cater to the existing park that is available of vehicles. Now the path that is available, the vehicle path that is available today in terms of at least the numbers, is over 120 to 130 million vehicles, both two wheelers, four wheelers put together and on an average anywhere between three to four years, the vehicle goes for a, for a major overall. So there is always, you know, even if you do a rough match, there’s always a continuous going to be a continuous demand of overhauling that is going to happen across the country. The only problem is that it will happen at various points in the country and various parts of the country. And you need to ensure that your product is available across those parts and those segments of the market. And that is why that is where the field ratio is very important, to ensure that your parts are available. And that’s how we, you know, the touch points are important. So we have been continuously focusing on developing those touch points and growing that aftermarket business.
Chinmay Nema
Understood, sir. So from a, I mean not asking for specific numbers, but from a medium to long term perspective, is this a double digit growth business or a single digit business growth? How do you look at it from a business planning standpoint? If you could share that.
Krishnakumar Srinivasan
Normally, you know, it is, it depends purely on the part. So as the vehicle see earlier we used to make 1 million vehicles. Let’s say today over the last 10 years we have grown to 4 million and 5 million. And then two wheelers have grown from 16 million to 20 million. So the path keeps on increasing. As the path keeps on increasing, the aftermarket requirement also keeps on increasing because then the vehicles accordingly, after every four years or five years they come for an overall so that this trend will not change. I think from an engineering standpoint, the trend will not change and will continue. And depending on the usage and other things, it varies of course a little bit here and there. But overall we are able to see a fairly good growth.
Chinmay Nema
God, sir, that’s very helpful. Thank you.
Operator
Thank you ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference over to Mr. Krishna Kumar Srinivasan for the closing comments.
Krishnakumar Srinivasan
Yeah, thanks Alaric. Once again, you know, I think there are a set of really good questions that we got just now and I think all the members present here today would get a fairly good view of what we are talking about. I once again take this opportunity extending my deepest gratitude to all the participants for attending today’s earning call. Even though it’s late in the evening, your participation made the discussion extremely engaging. We remain dedicated in our commitment to growing our business and to our strategic business objectives that we have. And we continue to strive for sustained positive outcomes. And I’m very positive that this will. that this will come, that we will grow the franchise as we go along. For any further questions or information, please reach out to our investor relations team at Ernst and Young. And on behalf of the company, I again take this opportunity of thanking you once again and highly appreciate your time and involvement. Please take care and goodbye. Thank you very much.
Operator
Ladies and gentlemen, on behalf of Sriram Pistons and Rings Limited, that concludes this conference. You may now disconnect your lines. Thank you.