Shriram Pistons & Rings Ltd (NSE: SHRIPISTON) Q4 2025 Earnings Call dated May. 08, 2025
Corporate Participants:
Krishnakumar Srinivasan — Managing Director and Chief Executive Officer
Prem Rathi — Executive Director and Chief Financial Officer
Analysts:
Chirag Jain — Analyst
Aman Soni — Analyst
Resham Jain — Analyst
Vijay Pandey — Analyst
Vivek Gautam — Analyst
Raman KV — Analyst
Himanshu Upadhyay — Analyst
Lakshminarayanan — Analyst
Divyansh Gupta — Analyst
Prateek Bhandari — Analyst
Moksh Ranka — Analyst
Nandan Pradhan — Analyst
Manik Bansal — Analyst
Anand Shenoy — Analyst
Keshav Kumar — Analyst
Darshan Deora — Analyst
Presentation:
Operator
Good day and welcome to Shriram Pistons & Rings Limited Q4 and FY25 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 the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this call is being recorded today from the management. We have with us Mr. Krishna Kumar Srinivasan, Managing Director and Chief Executive Officer, Mr. Prem Rathi, Executive Director and Chief Financial Officer and Mr. Pankaj Gupta, Deputy Executive Director, 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 risk, 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 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 and Chief Executive Officer
Thank you, Avirath. A very good evening everyone and thank you for joining US on the Q4 and FY25 earnings call for Shiram Pistons and Rings Ltd. Our financial results, investor presentation and press release were all published on the stock exchanges and the company’s website and I hope you have had an opportunity to go through the same.
I’m delighted to share that we concluded FY25 with a robust performance again as our consolidated total income grew by 15.3% year on year while EBITDA and PAT recorded a notably 14.9% and 17.5% year on year growth respectively. We have achieved this performance despite the year 2425 being a very challenging year for the auto industry industry as it recorded Only a moderate 3% growth on a weighted average value basis with two wheelers growing at around 9% while passenger vehicles growing at around 2%, commercial vehicles DE growing by 1% and this performance of ours under these circumstances is a testament to our leading market position and strategic approach towards navigating the market complexities, enabling us to continuously outgrow the industry. This success reflects the effectiveness of the strategies and the systems we have implemented to strengthen the SPRL fundamentals.
During the year, we implemented various initiatives to strengthen our core business while exploring new opportunities for sustainable and profitable growth. This success is also a result of our team’s collective efforts to create a lasting value for the organization. Our company has consistently upheld a strong commitment to excellence, innovation, and integrity. These core values have not only propelled us forward but have also solidified our position as the leading manufacturer of pistons. Pins, piston rings and engine valves in India and abroad. As we continue to evolve and adapt to market trends, we remain dedicated to delivering high-quality products that set new industry standards for our customers. Over the past year, we have taken several initiatives to strengthen our core business while venturing into new opportunities, thereby ensuring sustainable and profitable growth trajectory. Our teams are focused on developing technology driven components for future needs, including those compatible with alternate fuel solutions like the hybrid, the hydrogen platforms, the cng, the HCNG hydrogen blended CNG as we call it, the LNG flex fuels and biofuel systems. We believe and we think that all these powertrain technologies along with the traditional ICE and the New Age electric powertrain solution will coexist in the long term with an increasing emphasis on the greener alternatives. With our comprehensive portfolio spanning ICE powertrains, biofuel powertrains and EV powertrains, we are now strategically positioned to navigate across evolving landscapes of the automotive industry, thereby mitigating risks and capitalizing on the emerging technologies. As it stands, about 50% of our business is derived from the aftermarkets, the exports and the non automotive segments which are not likely to be affected by change in the powertrain technologies. We include the truck business also in this segment and if we do that, then in the non automotive space we build products for applications such as gensets, railways, defense compressors and specialized products for the export market including snowmobile and law mower applications. We have reached the situation of more than 50% of this business primarily over the last five to six years, with deeper focus on getting into businesses which will have much longer length of stay as far as the overall ICE powertrain is concerned. Moreover, we are actively working to diversify our business model by acquiring companies with solid fundamentals and promising growth prospects. Following our previous acquisition of SPR Takahata and SPR EMFI, we have now acquired 100% stake in SPR TGEPL Precision Engineering Ltd. This strategic move will enhance our capabilities in the precision molded plastic component segment, thereby growing that segment of our business. As a company we have a huge focus on sustainability and environmental responsibilities. In line with this, we have increased the solar. Power consumption in all our factories with 35% of the total being consumed at the Ghaziabad and Bullenshah plants through the solar and we have also had almost close to 5% of the power requirement met by solar at the Alpha 3D plant. This year, We have also received several prestigious awards including the recognition in the Dun and Bradstreet top 500 value creators ESG. We also won the Gold Award by ACMA in ESG and Safety categories and significant achievement in Corporate Excellence from cii. While these are few that I have highlighted, we have also won multiple awards from various OEMs both domestic and global for our technology quality and delivery excellence. Now I would like to give you a very quick snapshot of our consolidated Q4 and FY25 just to showcase how these efforts are translating into performance. In Q4FY25 our company achieved a year on year growth of 15% in total income to rupees 10,158 million, whereas the EBITDA rose by 18% year on year to Rs 23. 78 million. This translates into an EBITDA margin of 23.4% as compared to 22.8% in Q4 of FY24. Profit after tax the PAT margin surged by 30% year on year to Rs 1515 million with a margin of 14.9% which has expanded by 168 basis points. I’m really pleased with these results and I’m confident that we will perform to similar kind of figures in the future also. I am also pleased to share that Spremfi is also progressing very well with regards to new product development operations and setting up of the new facility in Coimbatore. Moreover, our overall plastics business is also showing a very good promise with regards to new products being developed and the overall growth trajectory that it has been able to achieve in the short term that it has been with us. For FY25, our total income grew by 15% year on year reaching to rupees 36612 million. The domestic markets led the growth for the company due to persistent challenges in key export markets primarily due to the global geopolitical tensions. Our EBITDA has also increased by 15% to rupees 8357 million with a margin of 22.8%. And PAT rose by 18% year on year to Rs.5156 million with a PAT margin of 14.1%.So overall the results have been really fantastic. Despite a turbulent year for the industry both domestically and globally, we have successfully achieved growth and delivered a very strong overall performance. Hence, in recognition of this success, the Board yesterday has declared a final dividend of rupees ten per share, which is 100% of the face value, including the interim dividend of rupees five per share announced earlier. And that too on a bigger base due to our bonus share last year. Going forward, we will continue to focus on operational efficiencies through digitization and low cost automation. We are pursuing backward integration exemplified by our recent acquisition of Karna Intertec, a key supplier of gravity die casting molds used in our piston casting manufacturing. We are also eyeing up multiple opportunities to acquire more businesses which would synergize well with our current business and with our customers needs. We are pleased to announce that our new facility in Pitampur will be expanding to double its existing capacity. Moreover, the new facility in Coimbatore for Spremfi is also expected to be commissioned very shortly. Owing to all these initiatives and strategies that we have put in place, we expect to continue our growth momentum while delivering the best result for all our stakeholders. Now to conclude, I would like to express my deepest gratitude to our teams and all our stakeholders for their continued support. There are numerous growth indicators which instill confidence in an upward trajectory for our company, the industry and India as a whole. We are excited about the journey ahead as we pursue profitability with purpose, innovate in mobility technologies and create sustainable value for all our stakeholders. Thank you very much for your time, and thank you very much for attending this conference. With this, I request the moderator to open the floor for any questions. Thank you very much.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchdown telephone. If you wish to remove yourself from the question queue, you may press star and do. Participants are requested to use handsets while asking a question. Ladies and gentlemen, a moment while the question queue assembles.The first question is from the line of Chirag Jain from MK Global. Please go ahead.
Chirag Jain
Yeah. Good afternoon everyone and congratulations on very strong performance. So, just wanted to your thoughts on few things. Obviously last year we have grown closer to about 9% in terms of standalone operations. How do we see this year in terms of the growth for the standalone business, particularly considering the industry environment, which is still somewhat subdued? So that would be one. And second in terms of standalone business itself. What could be the potential revenues that we could do from the current infrastructure or facility and the profitability scale up? That can happen. Obviously, last couple of years, particularly last year, has been subdued and yet you have been able to maintain a very strong margin profile. So I’m sure there could be scope for operating leverage which can play out as the revenue growth comes back in line with, let’s say, industry and probably your outperformance. So maybe some thoughts around that?
Krishnakumar Srinivasan
Yeah. Hi, Chirag. Yes, certainly the way we look at it, Chirag, is that the market is expected to be a little subdued, for sure, as you rightly said, because of both the geopolitical tensions globally as well as domestically. But at the same time, we also see a lot of opportunities in this because as the markets globally, we do have also a lot of standard players or lot of regular players vacating from capacities, thereby enabling some of these global players, global customers to reach out to us with regards to possibilities for growing the business.
So I do see a lot of opportunities. While there are tough situations existing in the marketplace, we also see a good opportunity shaping up which could help us in the future years. But as we go along, it is very important to understand that at some point in time the margins will be. We will of course get scale, and the margins coming out of the scale will certainly be something that will be accretive. But we always believe that whatever business we do, we do it profitably. And that has been our motto always. And we expect that we will continue in that direction.
So from a standpoint of our capacities and the situation that we stand as it stands today, we feel that it is certainly possible for us to scale up to the requirements of some of the customers globally and be able to deliver to their requirements. So we are looking at those opportunities and we are working on the same.
Chirag Jain
Understood. And any specific numbers?
Operator
Sorry to interrupt, ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. You may go ahead.
Chirag Jain
Yeah, sure. Yeah. So just wanted. Your thoughts on the subsidiaries as well? I think the entry business or the EV powertrain business, I think the new plant has already started. So some thoughts in terms of how the business is ramping up, especially some order wins over there. And also on the plastic business. Now with two businesses that we have acquired, how do we see that scale up happening over the next two, three years on these two business as well?
Krishnakumar Srinivasan
To answer in one line, I think both the businesses are doing very well. The MFI business has also. We have been able to pick up some good customers and we have been able to ramp up our manufacturing there. The new plant is not as yet functional, but it will be functional by end of June. So it is as soon as the new plant is functional we are going to also have lot of our mid drive motors and others getting manufactured there. But many of the customer programs are under validations and approvals. So at this stage we are very excited with all the possibilities that we have for that MC business.
Similarly in our plastics business also we are doing very well. Both the companies are actually complementing each other and the wide array and range of programs that we can do for our customers has really increased thanks to the M and A that we have done with TGPL and as a result we are now able to cover a wider range of product portfolio and different levels of, you know, it’s at different levels of performance. I’ll put it this way because some plastic precision components require certain kind of technologies to be used and certain technologies not to be used and we have both the companies masters in their own respective games.
Chirag Jain
Sure. Thank you so much. I’ll come back in the queue.
Krishnakumar Srinivasan
Yeah, thank you.
Operator
Thank you. The next question is from the line of Aman Soni from Invest Analytics Advisory llp. Please go ahead.
Aman Soni
Hello, I’m Audible.
Krishnakumar Srinivasan
Yes Aman, you are. Please go ahead.
Aman Soni
I just want to know the current revenue contribution from electric vehicle segment and can you please provide an update on its progress and shed some light on the development in this area?
Krishnakumar Srinivasan
Yeah, I just replied, you know. So we are the current as you can see from last year we did around roughly around 12 odd crores in in our entry business. This time we have more or less doubled it even after even though we had a lot of issues with regards to the delays because of the government new rule of getting all the ICAT approvals and other things. Things done, we had to get all this cleared. And you know, I’m very happy to say that we are amongst the top companies to have cleared the PM E drive requirements as well as get all the ICAT approvals on both our motors and controllers. We are making our own controllers, you know, right. From everything that we do in house. As a result, we are able to give a good amount of localization benefits to our customers. And all this has really helped us to win new businesses. And we think that we will continue to grow in this segment and also be able to penetrate different product segments that are required in this area.
Aman Soni
Thank you, sir. Understood.
Operator
Thank you. The next question is from the line of Resham Jain from DSP Asset Manager. Please go ahead.
Resham Jain
Yeah, hi. Hope I am audible.
Krishnakumar Srinivasan
Yeah, please go ahead.
Resham Jain
Yeah, yeah. So I have just one question. On the export piece I think which is close to 600 odd crores right now for you on a yearly basis, what kind of customers are you seeing the inquiry coming from? And typically what is the size of the business on the export side you typically look for? So if you can just give some sense, because I think last few years you have been talking about export. Obviously market has been little patchy there. But if you can share your thoughts around that.
Krishnakumar Srinivasan
Yeah. So as far as the export market is concerned, Rishabh, we are actually supplying to both OEs as well as to the aftermarket OEs. We have big customers, big names like all the big names that you can think of. So we have one program or the other with them. But unfortunately what has happened is Most of the OEs have a drop of over 20% in their volumes as far as Europe is concerned. And in some segments of the market in the UK as well as in the US, we do see a drop off over 10, 10 to 15% on an average.
So overall export markets we see a drop of over 20, 22% as far as the current volumes are concerned primarily because of the geopolitical situation. But thanks to our other efforts in terms of entering into newer segments of the business like snowmobile applications, marine applications, compressor applications and also some of the lawnmower applications, we have been able to get newer businesses which we have capitalized on. And our. Even though the markets end markets dropped drastically, we were able to. Our sales just dropped. Up by over around 4 or 5%. And we expect that that also because we had to do a lot of COVID up in terms of initially giving the samples and getting the validations done etc. So now having done all that this year, we expect that to pick up and our volumes to come back to normal and probably exceed our expectations. So we are quite confident that our export business will continue to grow as we have seen it earlier.
Resham Jain
Okay, understood. Sorry. One more question is on the domestic OEM business. You mentioned that you have 65 or market share in India but incrementally the new models and all, do you have higher market share that what is happening in the industry right now?
Krishnakumar Srinivasan
Well Vishenji, we don’t give our market share figures. I don’t think we have ever given the market share figure of 65% and all. But we certainly have a very dominant market share and we continue to grow with all our businesses in terms of including all individual product lines like engine valves or pistons or piston rings and piston pin individually also we have been doing quite well to penetrate more and more with all our customers.
So we are looking at newer platforms, we are looking at some of the new business areas that we have been able to start our supply including compressor applications and things like that. So all that has really helped us to improve our overall growth situation and our market share has always continued to be quite dominant.
Resham Jain
Okay, understood. Thank you so much and all the best.
Krishnakumar Srinivasan
Thank you.
Operator
Thank you. The next question is from the line of Vijay Pandey from Nuama. Please go ahead.
Vijay Pandey
Hi. Thanks for taking my questions and congratulations for good set of numbers in fourth quarter. I have one question I just wanted to check if you can bring. It will be details about the upcoming projects upcoming. Like what are the upcoming new products or upcoming new projects which you are working on that will drive the field growth in FY26 as well as in 27. You can just give us a brief overview when these projects are expected to start and what will be the ramp up.
Krishnakumar Srinivasan
Yes. So Vijay, most of these projects are confidential projects with our customers and it is not possible for me to divulge any details at this point. Regarding those projects. But the point I can tell is as I said, we continue to dominate the market with our market share and at the same time we are continuing to work on various strategies for entry into different product segments including, as I said, including areas like snowmobile applications, marine applications, etc. So we are continuously working in those areas and we feel that all the activities that we are doing will only be very accretive to our current line of business and be able to support us to continue our growth story.
Vijay Pandey
Okay. And I just wanted to check on the gross margin. Our gross margin got weakened like declined quarter on quarter for both standalone and consolidated and particular reason because any particular reason for this decline and do we expect the steel as the commodity prices have declined from April? When do we expect this benefit to reflect into our pms?
Krishnakumar Srinivasan
Well, you know, I don’t know how you know, you might be seeing it only at a salesman as net cost level, but that’s not the way to look at it. Overall you have to look at the margins which is growing. If you see our ebitda, PBT and fat levels because the product mix can make a big difference in this gross margin situation. So you should never look only at that because as I said, our product mix is changing with regards to the different new products that we are introducing. But overall profitability we are in fact improving as you can see in our EBITDA margins growing from around 23. You know, in fact over the last five years we have continuously registered over 8,9% growth. 8,9% basis point, 800 basis points growth. So that’s a very massive growth on the EBITDA level. So you shouldn’t look at, look at it from that point of view because it’s a mixed story.
Vijay Pandey
Okay. Okay. If you can share which are the main customer,
Krishnakumar Srinivasan
You know all the things that can come to you in, in your mind with regards to all the vehicle manufacturers, everybody is our customer. I don’t think we have anybody in the, in the India, in India who is manufacturing a vehicle and is not our customer. Does that answer your question?
Operator
Thank you. The next question is from the line of Vivek Gautam from GS Investment. Please go ahead.
Vivek Gautam
Am I audible?
Krishnakumar Srinivasan
Yeah,
Vivek Gautam
Hello.
Krishnakumar Srinivasan
Yeah, yeah, yeah, you.
Vivek Gautam
First of all congratulation on good set of numbers, sir. Let me begin by saying that I have recently started taking the company. So if you find the questions a bit elementary, please have patience. Number one, is this actually what is the opportunity size for our company in the sector we are operating in, and the expected growth rate and is our IT engine segment a sunset sector or that is an excessive pessimistic view and any steps we are taking to mitigate the same?
Krishnakumar Srinivasan
You know, I have to give you a very long answer to completely make you understand, but just I’ll try my best to give you a very kind of a quick answer looking at the queue of questions that I have. So, you know, frankly this company is primarily manufacturing is into multiple segments like we call ourselves as a solution provider for powertrain solution provider. We give powertrain solutions for, you know, the various kinds of ICE engines. These ICE engines could be, you know, basically gasoline and diesel, but also other solutions like lng, cng, hcng, hydrogen and also, you know, biofuels and various other applications.
So various powertrain solutions. We give the solutions for that. And at the same time we also have electric powertrain solution where we make our motors and controllers and we also have plastic injection molded parts which goes into various usages, into various areas of the automotive. It could be in belt applications, it could be in steering gear applications, could be in braking applications, seat applications, etc. Etc. So we make multiple products, multiple, multiple areas. So the name unfortunately gives only a kind of a feeling that we are only into ice. That is not the, that’s not the only thing. We are into multiple areas now.
And as far as our business status is concerned, I think you have already heard it. We are dominant player in the country and we are associated with every OE customer that is available in the country and abroad.
Vivek Gautam
Expected growth rate, you are saying, what is the expected growth rate?
Krishnakumar Srinivasan
Well, our aim is always to outgrow the industry. So if the industry growth is around 3, 3.5% last year, the industry growth around roughly weighted average value basis is around 3.5%. We have actually outgrown it by around almost 100%. So our growth rate has been over 7%, 8%.
Vivek Gautam
Second thing was about your. While researching the company, I was pleasantly surprised to know. Last question please. Second question only that DCM Data Products, the company which evolved so many Indian IT companies evolved from it whether it is HCL, wipro or mindtree from Shiva Nadar and it came out from our company. So a few from a Lalajar Pramji was the founder of our company. If you can highlight few points if that culture is still prevalent over here and we are sort of taking advantage of that legacy sir. And how. In what manner? Thank you.
Krishnakumar Srinivasan
Yeah, yeah. So we are basically belonging to the same legacy and we belong to the Lala Charathram wing and you know the overall companies got divided between the brothers and all so but as a group we all belong to the Lalacharath Ram overall industry that was formed at that point in time. And as you know that you know Dr. Bharat Ram and Lala Savitram were brothers and DCM was on the, you know was given to Dr. Bharat Ram and Bharatram’s wing has been instrumental in many other areas that they have grown which is today the dcm, you know, overall portfolio that they have.
Similarly in the under Dr. Charatharam all the various wings like the Honda CL cars and all that started and subsequently Shriram Pistons and many other companies that are there under the silver ring has been run today. So we belong to that wing and you know the legacy and the culture has continuously grown and it has become more and more I would say better at this stage. So we are continuing all those cultures and legacy.
Vivek Gautam
Yeah. Dr. Charatram was the key person behind BCM Data products also I believe as per the interview of Shiva Nadar and and so many other people.
Krishnakumar Srinivasan
They were all working together at that point in time.
Vivek Gautam
Thank you.
Krishnakumar Srinivasan
Thank you.
Operator
Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Raman KV
Hello sir. Thank you for answering my questions. My first question is with respect to the impact of UK free trade. I know the exports of the overall export contribution towards the revenue is around 15 to 17% at the company level. Now we have India signed a free trade agreement with uk. Can this boost our exports growth as well as at the same time there has been a, how do I say there has been a little bit uncertainty with the US tariff. So will that hurt our export in the US market And with the free trade agreement sign will this be beneficial to you know, fill up the gap between the both the countries?
Krishnakumar Srinivasan
Yeah, so that’s a very good question and let me highlight that the UK free trade is going to be very beneficial for us and you know it is a very positive story and I think the government of India has done a great job in signing this off and auto segment has been very clearly defined as one of the growth segments for them and also for the, for the industry that is identified in UK and we think that we are already, you know, exporting a lot of our products to UK and, and that will only help our customers and help our growth story.
As far as US is concerned. I think we are not very far away from signing of the trade agreement and once we sign it off I think we look at it very positively. I think it’s going to open up a lot of opportunities for us and it’s going to give us more areas to grow and more bandwidth with regards to focusing on some of the customers that we have probably not touched in USA so far. So, so all this will be only accretive to our current level of business. Thank you.
Raman KV
Okay, my last question is with respect to sir, what is the maximum potential revenue with the existing factory and what is the current order book? I know you don’t give guidance but I just wanted to understand?
Krishnakumar Srinivasan
You know, frankly speaking, as I said, you know we have, we ensure that we always keep our capacities ahead of the market and at no point in time we have fallen short of the capacities in terms of our market, in terms of customer requirements. We continue to invest in our legacy business as well as into newer business. As you can see from our overall capex investments that we have done the years in the past five, six years so that will continue and we don’t see any major areas where we will have failures with any of our customers due to capacity.
Raman KV
And so current order book position.
Krishnakumar Srinivasan
Yeah, so you know certainly I’m looking at continuous growth and there is no reason why our order book will be in any way lower than that.
Raman KV
Okay, thank you.
Operator
Thank you. The next question is from the line of Himanshu Upadhya from Buggle Rock dms. Please go ahead.
Himanshu Upadhyay
Yeah, hi, good afternoon. My first question is that royalty we gave is for what purpose? Because last year we paid a royalty of 48 crores. It was 1.6% of revenue. So will that remain at similar percentages in fuel nature and is it paid to only call benchmade it or for other technology tie ups also we see. And how does it get decided? Is it based on what technology we take or on certain products we pay this to some color if you give on the royalty and how it gets.
Krishnakumar Srinivasan
Currently royalty is paid only for the technology input that we get from our technology partners. And as you rightly said, the average is around 1.6% which is very normal in the industry. And we have the technology partners. Koldenschmitt is primarily for pistons. We also have Honda Foundry for pistons for Honda specific requirements. We have Fuji OZ X for our engine valves. And we are also having the technology agreement with now as you can see with Riken Corporation for Piston Ring now we also have the technology agreement with Takahata Corporation for the business that we do on our plastics injection moldings are very specific businesses with regards to technology requirements there.
So for all the newer technologies this always helps us to be ahead of the market and we are able to bring the newer technologies well in time. Like in the case of Euro 6 introduction, we were amongst the top companies to have brought the solutions to our customers well in time or even ahead of time and be able to give them. So all this helps us with the technology requirements. So that’s the reason why we pay the technology fee. And I think it’s very normal. The kind of payout that we have is very normal compared to the industry standards.
Himanshu Upadhyay
And we have this technology tie up with global companies. Does it mean to go to a particular geography or to approach a particular customer, we need to take their permissions because they may be already operating in certain geographies. So what does that mean? Any idea?
Krishnakumar Srinivasan
No, no. We export to 45 countries today and there is no reason why we cannot continue the export there. We all those things are addressed in our technology agreement and we work in as a partner with all our technology collaborators.
Himanshu Upadhyay
Okay. So even if they are in a particular geography, we can also operate with in that particular geography or customer.
Krishnakumar Srinivasan
So it is. There are certain ways of doing the business and we get the business done that way.
Himanshu Upadhyay
And one last thing, we have two brands, USHA and spr. In one last question, one last question. We have two brands, USHA and SPR in the aftermarket. Can you tell which segments they cater to and how are they different in terms of positioning or placement or whatever it
Krishnakumar Srinivasan
Both are, you know, in the same segments of businesses that we have. And you know there are certain segments of the market which is which from a product standpoint, nothing is different between the two brands. Both the brands are very well accepted in the market. But there are certain geographies where SPR is more well recognized or better. Well traded. It is purely a perception of the customers. So we prefer to keep both the, you know, both our brands alive. Both the brands are equally good.
Himanshu Upadhyay
Okay, thank you.
Operator
Thank you.The next question is from the line of Lakshmi Narayan from Tunga Investments. Please go ahead.
Lakshminarayanan
When you started the year in terms of the auto business, you would have had certain budgets, certain aspirations on the year ended. I just want to understand what has actually posteriorly surprised you and what has actually negatively surprised you. For example, has there been some competition realignment which actually got you some business which you didn’t anticipate? Just want to hear your thoughts on that?
Krishnakumar Srinivasan
Well, if I understood your question right, you’re asking what went what was good for us and what was bad for us in last year,
Lakshminarayanan
What did you anticipate? And it actually did much better than your anticipation and why?
Krishnakumar Srinivasan
Okay, we anticipated a much better market, but we did not do well. So market actually we expected at least a 10% growth in the market, but, you know, the market fell down to almost as low as 3% on an average, which was very unexpected from our standpoint. But even after that, the team actually rose to the situation and were able to get other businesses, which has really helped us to grow our market. And we were almost close to our target of around 8, 9% that we wanted to grow overall as a group, we have grown 15%.
Lakshminarayanan
Got it. There has been a tie up of NPR and Riffin globally and NPR is also working with one of our competitors, at least now, how that realignment is going to affect your market. Is that something which you can share?
Krishnakumar Srinivasan
Yeah. So here in this case, Riken and NPR have come together and it’s called the now, the NPR Riken Incorporated or Incorporation. So as a result, it is, you know, very clearly it’s one company now and there are they, you know, both, as I said, you know, Riken has an investment in spr and you know, NPR has a very, very small investment in a small in a much smaller company, which is our competitor. So at this stage, we don’t see any major issues between them.
Lakshminarayanan
Thank you. I’ll get back in. Queue.
Krishnakumar Srinivasan
Yeah. Thank you.
Operator
Thank you, Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one part per participant. The next question is from the line of Divyansh Gupta from Latent Advisors. Please go ahead.
Divyansh Gupta
Yeah. Hi. A couple of questions regarding the subsidiaries. So how much of a plastic. Six business is still ICE focused because on Kakahata products it mentioned some FI controllers and stuff which I’m guessing is more an ICE business.
Krishnakumar Srinivasan
Can you ask the. Can you ask the question once again please Divya?
Divyansh Gupta
Sure. So Takahata in the slide presentation or if I look at the Takahata’s website and I look at the products that are there offered by Takahata. Right. So it mentions something known as engine cooling part or a fuel pump. Now just by reading the word it seems more like an ICE product. So while it is still plastics for us but it is still linked to the ice life cycle headwind, it’s a different thing but it’s still ICE business. So I wanted to understand of overall plastic business that we are doing right now in the subsidiaries, how much is still on ICE only products?
Krishnakumar Srinivasan
Yeah. So if I include both Takata and TGPL put together, I think our overall ratio will be less than 15%.
Divyansh Gupta
Yeah. And the other question regarding the subsidiary was this.
Operator
May we request that you return to the question queue for follow up questions as there are several participants waiting for the training?
Divyansh Gupta
Sure. Thank you.
Operator
The next question is from the line of Pratibhandari from AART Ventures. Please go ahead.
Prateek Bhandari
Yeah. Hi. Thanks for the opportunity. You mentioned that we are setting up a plant in Coimbatore for HPR emifr. So what would be the CAPEX amount for this plant and what would be the capex amount for FY26?
Krishnakumar Srinivasan
Yeah. So we had already given all these numbers in the previous listings all there in the public domain. So we are putting up this plant around almost over 70 crores have been invested apart from the other investments that we have company. So we continue to grow the business there. And FY26 also we have a fair amount of CAPEX there but we don’t diverge these figures, you know, in advance.
Prateek Bhandari
Okay. And just one more question if I squeeze in.
Krishnakumar Srinivasan
Yeah, go ahead.
Prateek Bhandari
Yeah. So wanted to understand as to you, you mentioned in your previous call that you know we have some new products introduced in the aftermarket. So just want you to understand as to how those products are doing currently. Both the connecting rods and the valve components. How are they doing?
Krishnakumar Srinivasan
They’re doing very well actually. That is one of the reason which has helped us also to cover up some of our other businesses. So we are multiplying in those areas and we are continuing to look at other opportunities where we can introduce products or products from our subsidiary companies within the overall network that we have created over these many years. Years.
Prateek Bhandari
All right, thank you.
Operator
Thank you. The next question is from the line of Mo Shanka from Aurum Capital. Please go ahead.
Moksh Ranka
One question I wanted to ask. Recently we apply Karma Intertech. I wanted to understand the opportunity there and also the opportunity in the die cutting state. Are we trying to make more complements for lightweighting of light rating of components in the.
Krishnakumar Srinivasan
Yeah. So basically, you know, for all our piston manufacturing there is a huge amount of dies that need to be made. You know, we make something like close to, you know, 2,000 odd variants and any at any given point in time, including all the variants that we manufacture in pistons, rings, engine Wells, is over 15 to 18,000 variants. And you know, so there’s a huge amount of work needs to be done in the manufacturing of dies, etc. And there’s a huge amount of cost allocated to that.
So to be able to have a very seamless kind of working for all our tool availability and to ensure that the supply chain is not getting affected, it was very necessary for us to have a complete alignment and a complete, you know, manufacturing setup which will help us to grow our tooling manufacturing and that’s why Kanna was identified and we actually bought over this company because it has the right skill sets and the right machines that will help us to actually manufacture those dies that are required by us. And that’s the only reason that we have gone for a backward integration and it will really help us going forward with regards to our overall output that we can improve with the number of dice that we can make, improve and make extra because of this facility. Thank you.
Operator
The next question is from the line of Nandan Pradhan from MK Global. Please go ahead. Your line has been unmuted. Please go ahead with your question.
Nandan Pradhan
Yeah, if you could just help us understand the split between standalone emfi, Takahata, TGPL and
Krishnakumar Srinivasan
I mean from, from a point of view. No. So it’s all there in our website. You can go through the presentation gives a complete breakup of our sales and everything. So you can get that.
Nandan Pradhan
Okay, so FY25, you would have to split.
Krishnakumar Srinivasan
Yeah, yeah, exist.
Nandan Pradhan
Okay. All right. Thank you so much. That’s it from my second.
Operator
Thank you. The next question is from the line of Manik Banfil from Master Capital. Please go ahead.
Manik Bansal
Hi, sir. Thank you for taking my question. So I’m having one question. Like as you mentioned, you have dominant position in this space, right? So. So then you must be having some pricing power as well. If we look at the COGS as a percentage of sales for past five years, it has increased from 33, 34% in March 2020 to 39% last year. So can you paint some color over this?
Krishnakumar Srinivasan
Yeah, I already answered this question. It was asked in a different way from a gross margin perspective. You know, you should not look at it from that standpoint because as I explained, the product mix plays a major role. The profitability targets are different for different product segments. And the mix of the products and the mix of the overall. Because we are making over 20,000 variants. I just said that as a result, it can completely make a complete change in the COGS position. So you should not look at it from that way. Look at it from an overall EBITDA standpoint.
Manik Bansal
Okay, one last question. What is the current capacity utilization and how it has emerged in the past three to four years?
Krishnakumar Srinivasan
Yeah, we continue to always, you know, it’s a very dynamically moving number, capacity utilization because we continue to invest into our existing business. I have told it in the past that we continue to invest to the extent of our depreciation. So we continue to expand our capacities even in our legacy business in the in at that rate. As a result of which, this is a very moving number and difficult to say at this stage.
Manik Bansal
Is it a good understanding? Like in one of the Concourse you mentioned, 70 to 75% was the capacity utilization at that time. So it may be around 80, 82 direction.
Krishnakumar Srinivasan
Between 75 to 80% is what it is today.
Manik Bansal
Okay, thank you. Thank you.
Operator
Thank you. The next question is from the line of Himanshu Upadhya from Buggle Rock pms. Please go ahead.
Himanshu Upadhyay
Thanks for giving me another opportunity. I had a question on the export business. In the exports business, aftermarket, how big can that be an opportunity? And we have our own distribution network in some of these markets because many of our products have a large repetitive business for pistons and piston rings. So are we doing a branded business there or how is it and some thoughts on that?
Krishnakumar Srinivasan
No, it is a completely branded business. And we have our own distributors. We also have some distributors through our technology partners. So there are number of routes to the market and we continue to use all those routes. But more importantly, we also supply to lot of OEMs in the export market. And there are businesses that we do directly with the OEMs. So all that continues, all the marketing channels are being used today to export the products that we can make.
Himanshu Upadhyay
Inorganic opportunities means would we be only focusing in India or outside India also means. Some thoughts on that and how do you select the companies? I can.
Krishnakumar Srinivasan
I can take this question. Explain that. You know, we’ll continue. Yeah, we continue to look at both in India as well as abroad. And there is no reason, if some good opportunity comes to us which is, you know, within the gamut of our laid out, you know, deliverables. We will certainly do the M and A outside India also.
Himanshu Upadhyay
Okay, thank you.
Krishnakumar Srinivasan
Thank you.
Operator
Thank you. The next question is from the line of Anand Shenoy from AS Capital. Please, please go ahead.
Anand Shenoy
Good afternoon. Am I audible?
Krishnakumar Srinivasan
Yes, you are. Please go ahead.
Anand Shenoy
Yeah, so my question was on the Takata business. So sometime back you had mentioned about increase of the capacity. I just wanted to understand what kind of capacity increase has been done and is it ready and like what kind of customer additions we are seeing in Takata business?
Krishnakumar Srinivasan
Yeah, yeah, we have. We have actually, as I said in the last call also that we have actually put up a capacity in Takahata to go for slightly bigger components. That is we are going for higher tonnage machines. And we have recently also bought the next piece of land that was available in the Nimrana estate. And with that we have, you know, we have paid a good sum of money to acquire that land. And we have already started some expansion activities there.
Anand Shenoy
And on the customer addition,
Operator
Mr. Anand, may we request that you return to the question queue for a follow up question. As well as several participants waiting for their turn.
Krishnakumar Srinivasan
There are many customer additions including medical applications and also music applications and other things. So there are many customer editions. We don’t give the names of the customers at this stage.
Anand Shenoy
Okay, thank you.
Krishnakumar Srinivasan
Thank you.
Operator
Thank you. The next question is from the line of Devyansh Gupta from Latent Advisors. Please go ahead.
Divyansh Gupta
Hi sir. We’re taking my question. So the question is on the export number. So if I look at our pie chart given in the presentation itself. Exports is around 17%. And if I look at the bar graph it says 484 crores. Now if I do 484 by 17 the number comes to around 2800 crores of revenue which is less than the either the standalone or console revenue. So how should I understand this difference?
Krishnakumar Srinivasan
No, because that’s, you know you might be looking at the overall console figures and you know the standalone business for exports will be somewhere around 17%.
Divyansh Gupta
So the 484 that is given in the presentation is standalone export or console exports. So even if I divide and the 17% is given on one solution, the on slide 10 exports at 17% should I then consider that okay, on standalone 17% is export and
Krishnakumar Srinivasan
That is. Right. You know there are. There could be a possibility that we have also done some exports of some of our, you know, subsidiary companies which has been added there in the other standalone.
Divyansh Gupta
Understood. And you’ve mentioned that exports includes aftermarket as well. So this 26% is not included in Matlab. This is altogether different. This is domestic aftermarket.
Krishnakumar Srinivasan
Purely domestic aftermarket.
Divyansh Gupta
Got it, Got it. Understood.
Krishnakumar Srinivasan
In exports have a breakup of both OEM exports and within for the standalone business, 17% it will slide if you include the subsidiary. Some of the exports that we have been able to do it will be higher which is the figure that you’re seeing.
Divyansh Gupta
Got. Got. And just one request, it’s not a question. So if moderator in the presentation can you just add the revenue breakup by the different standalone and subsidiary companies it becomes easier to understand how the business is moving. That will be really helpful.
Krishnakumar Srinivasan
Yeah. In the board report you will see that already. It is already mentioned.
Divyansh Gupta
Yeah. Thank you.
Operator
Thank you. The next question is from the line of Vijay Pandey from Nirvama. Please go ahead.
Vijay Pandey
Thank you for taking on one more question from my side. Just I wanted to understand what will be the margin profile between our products. So like the powertrain product, plastic molding product and other products. If you can just briefly tell us which has a higher margin profile, that will be very helpful.
Krishnakumar Srinivasan
If you study our P&L you will see that our business, that is our legacy business, is doing a tax percentage of ebitda and all our other businesses are doing it. You know, the consolidated is doing it as almost a near about the same percentage of EBITDA. So we are frankly, you know, looking at, we are doing M and A’s of businesses which are really accretive to our overall business. So we don’t. Otherwise there will be a big drop in our EBITDA margin. So we are looking at various opportunities which will help us to be accretive on the EBITDA range.
Vijay Pandey
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Tarshanti Aura from EndWest Group. Please go ahead. The next question is from the line of Keshav from Raksan Investors. Please go ahead.
Keshav Kumar
If. Hello. Am I audible?
Krishnakumar Srinivasan
You’re audible.
Keshav Kumar
Yeah, yeah, yeah. So if I look at the scale of our subsidiary business this quarter, it has come to almost 150plus crore. And even on the margin front blended basis, it looks like it’s a 15% EBITDA. So is the scale and margin here to stay?
Krishnakumar Srinivasan
Well, none of my, you know, subsidiary business is at 15% margin. Here it is. You are talking net margin or you’re talking ebitda.
Keshav Kumar
If I net console with the standalone figures, I get a 20 crore EBITDA on a 133 crore revenue in this quarter.
Krishnakumar Srinivasan
I’m talking about.
Prem Rathi
We are talking about Q4 number of.
Keshav Kumar
Hello.
Krishnakumar Srinivasan
Can you repeat your question? Keshav, I think there’s some misunderstanding.
Keshav Kumar
Yes, sir. I’m just netting the console figures with the standalone figures
Krishnakumar Srinivasan
For the quarter,
Keshav Kumar
Quarter, quarter
Krishnakumar Srinivasan
On quarter, for the quarter, quarter. Yeah, yeah, yeah. Go ahead, please ask the question.
Keshav Kumar
Yeah. So I hope the. It’s understood or should I repeat the question?
Krishnakumar Srinivasan
You can repeat the question. Yeah,
Keshav Kumar
Yeah. So sir, the scale this quarter has been. If I net console and standalone figures, the scale has risen sequentially year on year, quarter on quarter in every way. And the margin is also coming about. I mean, it’s expanding. So I just wanted to know if this overall scale of our subsidiaries is here to stay. If we are scaling up, if we are in the process and. Or if there is any one off in this quarter.
Krishnakumar Srinivasan
Yeah, all our businesses, whether it is our legacy business as well as our plastics business and our motors business, everything has done well in the last quarter and they have actually grown year over year. So as a result, we expect that it will continue and the overall markets are already developed. And this thing, there is no one time business in these kind of products that we make. You know, once we get into that business, we have a long term business there. So we don’t expect any drop in our, you know, in the scale of activity in any of the subsidiaries.
Keshav Kumar
Great, sir. Thank you. Thanks.
Krishnakumar Srinivasan
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Darshan Theora from Invest Group. Please go ahead.
Darshan Deora
Hi. Thank you for the opportunity. So I’m actually a little bit new to your company. So again, please show some patience in case the question is elementary. But I wanted to know that on the export side, when we talk about OEMs or we talk about the aftermarket, who is our major competitor? Like which country is our major competitor? Is it China or is it any other country?
Krishnakumar Srinivasan
Well, if you, if you ask me, countries that are, you know, for our legacy products, the legacy products are made in, in Brazil, in us, in China, in India, in Thailand. So there are many, many such places where it’s made. But frankly, I would put it this way, that for the businesses that we do, we do have very cherished customer list who are very committed to us and we are committed to them. And that that is growing, that relationship is growing and we are growing our volumes with them.
Darshan Deora
Got it. Thank you.
Operator
Thank you. The next question is from the line of Lakshmi Narayan from Tonga Investments. Please go ahead.
Lakshminarayanan
I just want to understand for there are two or three things. How much of your business comes from places where you supply everything as one assembly and how much is coming from selling one or the other?
Krishnakumar Srinivasan
That is very difficult to say, Mr. Dakshina. Because what happens is there are many customers whom we give as a full set. There are also customers where we pay, where we do the assembly and give them. We even do in some cases assembly with conrods. So there are multiple things that are done to individual customers. So it’s all different by different. So we don’t track it that way. We track it more from product range standpoint.
Lakshminarayanan
We also make this $1 pistons.
Krishnakumar Srinivasan
Pardon?
Operator
Mr. Lakshmi,
Lakshminarayanan
Did he also make this $1 piston where you know essentially very, very low on realization. I mean do you also.
Krishnakumar Srinivasan
No, no, no. We don’t make the $1 piston. That’s made by, you know, some of the companies which operate on very low margins. You know, so it’s is different. Those are different price. Those goes into air conditioning applications and things like that. You know the reciprocating compressors go into air conditioners, aircon or some steel corporation and things like that. We don’t make those.
Lakshminarayanan
Thank you.
Operator
Thank you. The last question is from the line of Divyansh Gupta from Latex Advisors. Please go ahead.
Divyansh Gupta
Hi Sajas. One quick question on the Coimbatore plant. So while we have done the 70 crore capex and let’s say we at least had the. We had mentioned that ampere is already applied. So how much of capacity would let’s say ampere taken? How much would be the spare capacity for any other future business that comes in or will we need to do?
Krishnakumar Srinivasan
Look, all our capacities have been grown for our customer need, customer requirements for all the customers that we have already developed. There are many customers on whom it’s not only ampere but many customers with whom we have already started. And all that will be a public information soon. So as and when those approvals are there and they are, you know, it’s all under validation. Many other things are going on. So it. But the capacities are all in place already. So we have enough capacities now.
Divyansh Gupta
So sorry. So does it mean that any new. We had ampere plus five other customers, NP6 customer comes, we will need to do additional capex.
Krishnakumar Srinivasan
No, no, we have. We have sufficient capex already.
Divyansh Gupta
Got it. Understood. Yeah, got it. Thanks.
Operator
Thank you very much. I would now like to hand the conference over to Mr. Krishna Kumar for closing comments.
Krishnakumar Srinivasan
Yeah, thank you very much. Very interesting. A lot of questions that we have seen today and we hope that we have been able to give a fair amount of answer. In case you have any questions left out or you feel that any queries to be given, please do reach out to us. We sincerely thank everyone who joined today’s earning call. Your active participation has greatly enriched the discussion today. Our focus will continue to remain on achieving our strategic goals and we are committed to driving the continued and sustained positive results. Once again. If you have any further queries or need any additional information, please do contact the investor relations team at Ernst and Young. On behalf of the company, we again deeply appreciate your time and engagement. Thank you once again. Take care and goodbye.
Operator
Thank you. On behalf of Sriram Vistions and Rings limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Krishnakumar Srinivasan
Thank you.