SJS Enterprises Ltd (SJS) Q3 FY23 Earnings Concall Transcript

SJS Enterprises Ltd (NSE:SJS) Q3 FY23 Earnings Concall dated Feb. 10, 2023.

Corporate Participants:

Rakesh Jain — Assistant Vice President

Devanshi Dhruva — Head -Investor Relations.

K.A. Joseph — Managing Director

Sanjay Thapar — Chief Executive Officer and Executive Director

Mahendra Naredi — Chief Financial Officer

Analysts:

Dipen Shah — SJS Enterprises Limited — Analyst

Harsh M — Chris PMS — Analyst

Jigar Jani — Nuvama Wealth Management — Analyst

Dhiral Shah — PhillipCapital PCG — Analyst

Karan Kokane — Ambit Capital — Analyst

Lokesh Manik — Vallum Capital — Analyst

Neel Shah — ValueQuest — Analyst

Dhananjay Jain — Brescon Ventures — Analyst

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the SJS Enterprises Q3 FY ’23 Results Call hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Rakesh Jain from Axis Capital. Thank you. Over to you sir.

Rakesh Jain — Assistant Vice President

Thank you Gautham. Good morning, and welcome, everyone. Welcome to Q3 FY ’23 post results conference call of SJS Enterprise. Today, we have with us K.A. Joseph, Managing Director, Mr. Sanjay Thapar, CEO and Executive Director; and Mr..Mahendra Naredi new CFO; along with that we have Ms. Devanshi Dhruva Head of IR.

Now I request the Devanshi take over and proceed with the conference call. Devanshi.

Devanshi Dhruva — Head -Investor Relations.

Yes. Thank you, Rakesh. Good morning, ladies and gentlemen, and thanks for being with us over the call today, we appreciate it. Moving on, this is how we intend to take today’s conference call forward. I will pass-on the dias to Mr. K.A. Joseph our MD, who will make the opening remarks, and then hand it over to Mr. Sanjay Thapar, our CEO and Executive Director, who will take you through some of the slides of our presentation that has been uploaded on the stock exchanges as well as on our website. Sanjay will take you all through the industry view, our business performance and then along with Mr. Joseph give the strategic outlook for the future growth of the company at the end, and Mr. Mahendra Naredi, our CFO will update you on our financial highlights, post which we will open it up for Q&A, the duration of this call is around 60 minutes, and we will try to wrap-up our comments in about 20 minutes, so we leave enough time for you guys to ask questions. If the time is not enough. Please feel free to reach-out to us through email or to write us and I will try to answer all your questions to the best of my ability.

Thank you once again and I will now hand it over to Mr. Joseph to make his opening comments. Over to you, Joe.

K.A. Joseph — Managing Director

Yes. Thank you Devanshi. Hello and good morning everyone. I trust you all had a chance to take a look at our investor presentation and the results published yesterday. We will use as a reference as we speak to you all today. If you can move on to Slide 4, as you all know, SJS, is an established market leader in a very attractive and niche business segment. We operate in higher value added definitely wait the market across multiple consumer oriented industry. We are a partner, co-creator and supplier of choice to several leading OEMs in the automotive and consumer durables industry. With a dominant share of business in India and a focused strategy to increase our global presence. Our company continues to deliver strong operating and financial performance despite uncertainty in the global markets due to the geopolitical and macroeconomic headwinds. We are able to outperform the industry year-after-year from due to our well entrenched customer relationships, strong in-house design and engineering capability. Yes leading has technology is opening a wide mix of products and our lean operations designed to support multi-fold revenue. Our robust performance is demonstrated by our financial numbers with Sanjay and Mahindra will take you through shortly.

I would like to hand over to Sanjay to take you through some of the business and industry guidance. Thank you. Over to you Sanjay.

Sanjay Thapar — Chief Executive Officer and Executive Director

Thanks, Joe, and good morning everyone. So SJS as you know, is a fast growing diamond cutting solution provider of business model and diversity is still a strategy and this has enabled us to consistently outperform the underlying industry growth quarter-after-quarter. And this quarter has been more difficult. Yet again we out performed the automotive industry premiumization continues to accelerate very rapidly, and we remain confident of our ability to benefit from this mega-trend that we see to grow our business over the medium, long-term. So specifically for this quarter, we delivered a strong performance in our automotive business that is two wheeler that passenger vehicles combined. SJS grew by 25% year-on year, whereas the industry the two-wheeler four-wheeler production growth was only 4%. Our total revenue for Q3 stood at about INR106 crores, growing by 21% Y-o-Y. The passenger vehicle business grew by 43% for us and the two-wheeler business grew by about 14%. SJS generated strong cash flows and we have a healthy cash and bank balance of INR143 crores on books as of December 31. This plan- – this cash of course will be used for the company’s growth and expansion plans. I’m also delighted to share that this quarter we added new marquee customers to our portfolio. Customers like Foxconn and IFB, who are already very large client base and we hope to build a healthy long-lasting relationship with them. On the CSR front, the company’s initiatives on garbage collection under the clean village initiative campaign improved lines of close to 3,000 families across 12 villages and we also added 20 beds to local community center hospital here where could be patients every day benefit from this. On the next slide, you see a graph where you have the performance of the industry and how SJS performed. So fourth quarter ending December 22, the two-wheeler industry volumes were flat at about just about 0.5% growth from the last year. Whereas SJS two-wheeler values will shuttered by 14% from his own period. This superior growth in two-wheeler segment compared to the industry quarter on account of new business wins and market share gains as we increase our share of wallet with new customers. The PV industry volumes grew by 21%, Y-o-Y whereas SJS volume sales grew by of 43% on a Y-o-Y basis. We have grown well, we do not set of PV customers. Our PV journey is still in early stages and we are building new businesses. That has helped us grow our Q3 FY’ 22 revenues and we hope to continue this momentum forward. Especially with the introduction of new generation products that are in development that is yes.

Overall, the automotive segment grew about 4% Y-o-Y that has SJS revenues from the automotive segment grew 25%, supporting the overall combined industry growth. Occupancy, solid business sales grew by 21%, Y-o-Y this growth was despite slowdown in the consumer durables market that needs healthy impact on exports due to this ongoing law in Europe and the other geopolitical challenges like the writing in energy costs, high inflation in the developed nations and the subdued demand both in Europe and North-America. For the nine months SJS outlook on the market, but growing at 54%, whereas the industry grew just by about 16%. And we have delivered a strong revenue growth above the 25% for the first-nine months. On a sequential basis the combined industry volume from Q2 to Q3 declined by 17% whereas SJS consolidated auto sales, the growth was limited to about 6%. Despite this impact on exports and consumer durables, I really appreciate the efforts of our team to consistently maintain the company’s sales momentum in this last quarter Q3. And our strategy for diversification by industry segment and product has helped us minimize this impact. Some key enablers of what helped us grow, let me summarize that for you. So growing mega towns consistently winning key businesses is an important area of focus for us. We continue to expand our share of wallet with key customers by offering new products bidding new businesses. This quarter we won many new business from our customers like Mahindra, Tata Motors, Toyota, whirlpool, Electrolux [Indecipherable] and many more. With that our first order for optical plastics for passenger vehicle manufacturer and we have many positive on executing many such businesses in the future. This quarter we added leading customers like Foxconn in the two-wheeler electric big vehicle space and IFB industries in the consumer durables sector. We continue to enhance our global presence, we’ve added a sales representative in Colombia. So now, in addition to Brazil, Argentina in Latin-America, we also cover, Colombia, and this ensure that we have a major presence in the Latin-American market. On the next Slide, we tell you of how customers will order request. So we still in this quarter presented us with the best performance award for extra mile support with respect to the flawless launching Scorpio N win this underscores are very-very strong new product development capability. We also [indecipherable] participated in guidance competition organized by [indecipherable] in the southern region.

We have laid down an ESG framework for the company. ESG essentially comprises of three dimensions, environment, social and governance and our responsibilities towards fulfilling our [indecipherable] in each dimension as a responsible corporate citizen. If anybody would like to understand further details on our ESG initiatives, please feel free to reach out to Devanshi who IR at SJS.

At SJS, we believe in inclusive growth, not just for involved stakeholders, but also for the community around us. So last quarter, as mentioned, we adopted several initiatives under the other half and child jurisdiction in Bangalore [indecipherable]. As a part of the Swatch Bharath Abhiyan, this initiative is helping improving health and hygiene condition in the villages, leading to a better living environment for all the villages and the minimize risk of health hazards.

Taking this initiative forward, we today covered 12 villages and 3,000 families benefit from our green village initiative where we organized garbage collection from doorstep. We also added 20 beds at the community health centers. As I said earlier, 50 patients benefit from that. We’ve also contributed towards infrastructure building for schools in our vicinity.

I would now like to hand over to Mahendra, our CFO. He will update you on SJS’ performance for the last quarter. Before Q&A, I’ll come back to you and talk about the future growth outlook. So over to you, Mahendra.

Mahendra Naredi — Chief Financial Officer

Thank you, Mr. Thapar. Good morning, everyone. Moving to Slide 12, which talks about our financial performance in detail. I would like to highlight that the company maintained a strong pace of growth and delivered a robust quarter three FY ’23 financial performance despite periods of excellent challenges.

I would like to bring to your notice that revenue and margin for quarter three FY ’22 have been adjusted for INR37.6 million for provision for discounted on a customer sales created during FY ’21 that was reversed in December ’21 and this resulted in increased sales EBITDA, PBT and PAT. So, to make it like-for-like comparison, we have excluded that amount and shown our financial for quarter three FY 22 and nine month FY ’22. Considering this, our consolidated revenue grew by 20.8% on Y-o-Y basis to INR163.7 million. The strong revenue growth was on account of overall domestic sales clocking 42.2% Y-o-Y growth, on back of 56.4% Y-o-Y in PV and 16.7% in two-wheeler. EBITDA grew 25.3% on Y-o-Y basis to INR284 million on a margin of 46.1%. PAT grew by 29.5% on Y-o-Y basis to INR157.1 million, delivering a strong margin of 14.8%, thereby maintaining around 15% profit margin consistently quarter-after-quarter in FY ’23.

On nine month basis, we are consistently delivering a robust performance and inching closer to achieving our target quarter-after-quarter. The company got 24.6% Y-o-Y growth in revenue, boosted by a 31.7% Y-o-Y growth in domestic sales. EBITDA grew 31.6% on Y-o-Y basis to INR896 million with a margin of 26.9% and margin improvement of 170 bps. PAT grew by 41% on Y-o-Y basis to INR518.7 million on a margin or 15.9% and margin expanded by 181 bps.

I am happy to share that all our efforts and initiatives taken port Exotech acquisitions are adding growth and momentum to the consolidated revenue. Exotech achieved FY ’22 full-year revenue in just nine months of FY ’23 with EBITDA margin improvement of 14% from 12.8% in FY’22, which is higher by 115 bps, implement nine months. Overall, SJS delivered a strong ROE of 33% based on nine month FY ’23 performance, compared to 27.1% in last year’s same-period.

Talk about the sales, both two-wheeler and passenger vehicle sales of revenue has improved to 47% and 31% while consumer durables witnessed a decline in revenue shares to around 15% due to macroeconomic headwinds, rising inflation that led to subdued demand in Europe and North American markets. Other segment witnessed a little slowdown in revenue from farm equipment and the shares of such marginally declined.

Exports declined due to adverse impact of geopolitical issue and macroeconomic challenges in many regions. Declining exports also impacted sale of new generation products to a certain extent and hence overall contribution of new generation product to revenues around 11% to 12% for nine months FY’ 23. However, we are confident that despite near-term challenges, our medium-term growth targets for consumer durables and strong focus on export segment remain intact.

Moving to the next slide. This slide gives you the financial highlights in a snapshot, which we have already discussed in previous slides. As on 31 December ’22, SJS has a general comfortable consolidated cash and cash equivalent of around INR1431 million. We are a debt-free company or a net-debt basis. The company generated strong free cash flow, and for the nine months, we have added rupees INR478 million to our balances. Our free cash flow to EBITDA for nine months stand at a healthy rate of 53.4%. As on 31 December ’22, we have achieved robust ROC of 33% and ROE of 15%.

I would now like to hand over to Mr. Joseph and Mr. Thapar to talk about our future plans and growth outlook.

K.A. Joseph — Managing Director

Thank you, Mahendra. SJS, as you know, is a technology and innovation driven company with a strong in-house design and engineering capabilities. The company has a track record of successful new product development and commercialization by supported by dedicated product development and R&D. The company’s strategy to introduce premium futuristic products that are complex to manufacture and increase our addressable market significantly for automotive and consumer durable industries.

For passenger vehicles, we are working on products that we increase our value from a current INR1,200 to INR1,500, by almost three to four times. A few examples of these products are optical plastic/cover glass with touch screen capability. Recent vehicle launches have demonstrated a huge demand by the end consumer for larger and integrated display screens inside their cars. These are very complex parts.

At SJS, we have had an early start in this technology and we are very hopeful of growing this to become a large part of our product portfolio in the coming years. Second number, in-molded decoration integrated in-molded electronics for car interiors. The third, we have illuminated [indecipherable] and both protective backing and illuminated cuff plate are other examples of our new products under development.

For the two-wheeler industry, we target to increase intrinsic value from a current INR300 to INR500 by around two times by adding futuristic products such as cover glass for two-wheeler instrument cluster with touch functionality, and also in-molded electronic parts with integrated multiple functions in the molded decorative substrate, especially for EV.

For the consumer appliances, we target to increase intrinsic value from the current INR50 to INR150 by around three to four times with the addition of futuristic products such as optical glass with SMI functionality for control panels, tinted electronics with capacity to touch function for consumer appliances again. The opportunity for growth is significant, and the company is confident of achieving this in the near-future.

With that. I would like to hand over to Sanjay to give you on our future outlook.

Sanjay Thapar — Chief Executive Officer and Executive Director

Thank you. So quickly moving to slide 21, which talks about our organic strategy for the medium term. So as you can see, it just continues to deliver on this promise of strong operational and financial performance organically. For the first-nine months for FY ’23, we delivered a strong 25% year-on year growth, maintaining best-in class EBITDA margin of 27%, and PAT margin at 16%. We are confident of maintaining a high-growth trajectory for our company over the medium-term by winning new businesses, increasing wallet share on existing customers, adding new customers, increasing contained by adding exciting new products to our portfolio. We expect SJS to continue to out preform the industry growth recovering the consumer durable sector in sport markets and and tailwinds of our resurgent auto industry value momentum to our growth trajectory. On the capacity expansion plan on Exotech, to meet higher customer demand pipeline. We are well on track as is our focus on new technology, product development to meet the futuristic needs of our customers. I’ll now come to the inorganic growth strategy for the company. So the last two years, the company has demonstrated its ability to acquire and integrate and grow acquired businesses. So we acquired Exotech two years ago. So in the last two years, we’ve doubled revenue demonstrating our ability to cross sell products across new and existing customers very rapidly. Sales have grown from INR68 crores in FY ’21 to about INR102 crores in FY ’22 and for the first nine months, you already achieved the full sales of FY’22 so we are on track to achieve great growth in that company this year as well. We expanded EBITDA margins from 12.2% in FY ’21 to 14% over the last two years and also we successfully integrated operations of Exotech with SJS. So we haven’t built, we have great confidence to acquire and integrate new businesses. And we are currently actively evaluating a few other acquisition proposals that will add value to SJS. With that acquisitions would require additional funds. Therefore in a proactive manner our Board in Boston, enabling resolution for a fund raise for an amount not exceeding INR300 crores. This approval is valid for the year and will help us meet upon requirement as and when we conclude this suitable acquisition. Any acquisition like we showed you will be done with a judicious mix of debt and equity keeping in mind in that proposed stakeholders. And the best for the future of the company.

I now come to an outlook of FY ’23, so SJS will continue to out grow the industry in terms of growth. For the first nine months FY’ 23 revenues have grown by 25%, despite the very challenging external environment, especially in exports during due to the ongoing war in Europe and the subdued sentiment in North-America and European markets. We continued to faces headwinds for exports in the current quarter as well. So the company we awaiting recovering here. Considering this, we are moderating our FY ’23 guidance slightly. From 25% revenue growth of about 20% and our PAT growth estimates of 50%, we would possibly reach 20%,25% this year. SJS will continue to maintain best in class margins with a very robust cash look. So despite the rising FY’23 outlook downward on out of these external factors. The company is still in very good shape. We are optimistic about achieving our mid term guidance from FY ’23 to ’25. We continue to maintain our target revenue growth of 25% and PAT growth of the 50%. So with this we finish the presentation, then I would open this floor for answering any questions. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin with the question-and-answer session. [ Operator Instructions] Ladies and gentlemen we will wait for a moment while the question queue assembles. The first question is from the line of Dipen Shah. Please go ahead.

Dipen Shah — SJS Enterprises Limited — Analyst

Yes. Good morning and thank you for the opportunity. I had a couple of questions, firstly, just on related to the business. Just wanted to understand, you are into various products as we have depicted in PPT. If you can get, give us some idea on what is the kind of USP, which you have when you approach clients for these new products. And what is the competitive scenario, maybe the top three or four products, which you have.

Sanjay Thapar — Chief Executive Officer and Executive Director

So thank you for your question Dipen. So fundamentally, our competitive edge really is that we have a seamless design to manufacturing and delivery company. So in terms of the number of technologies that we have under one roof. We are quite unique, not only in India, but across the world. So that is a great USP and differentiate if I map either the printing companies, they don’t do plastic molding or they don’t printing or vice-versa. There are other technologies like chrome plating simply that are required some special finishing on Badger’s required. So our competitors because of their focus on a few product areas are not able to identify or deliver such a vast array, so that’s on the technology side. On the manufacturing side, we handle a very large number of SKUs and we handled it very successfully delivering across 22 countries worldwide and customer lines have never stopped because of us, so we are very strong in terms of our delivery capability. So that also is a differentiator when you talk of competitors. And if I talk of export competitors in the other markets. Our products are that’s more production. So these are the labor intensive parts and we have a very strong labor arbitrage and so SJS is far more competitive. So that is why we are very excited about growth and those I think on the key factors, which differentiate us from competitors both in India and overseas.

Devanshi Dhruva — Head -Investor Relations.

Thank you apart from the new products that we introduced. One of the other things is that we can handle the amount of SKUs that we are able to handle. And the number of products that we have on one — what [Indecipherable] manufacture. We manufacture about 10, 11 products and we are growing out there as well by introducing new products, as well as the number of SKUs we manufacture has 6,000 SKUs and growing there as well, so that shape complication that is involved in manufacturing these number of SKUs and delivering to all that on time, quality products, that itself is one of the biggest challenge, which with access of a barrier for our competitors.

Sanjay Thapar — Chief Executive Officer and Executive Director

And thank you add one more, sorry. Oh, great strength we have is our new product development capability, we have a very strong team. This team is focused only on future distinct products. So that is why we are able to launch these products. Well, one of our very old standing customers awarded us for that last mile support they appreciate our quality levels to support global volumes. So, I think all in all, we have quite a uniquely positioned to support customers in the affected regulated space.

Dipen Shah — SJS Enterprises Limited — Analyst

So just to carry a bit forward like, when can you go to a new plant and pitch for a product. Why would a shift from his existing suppliers to you that it’s the first question. And the second is that when you pitch to an existing customer that you been market share and replace another supplier your products. Why would you do that, because you know that obviously is well entrenched with existing supplier and the cost arbitrage, which you speak about is probably not that much because you contribute maybe INR300 rupees per vehicle in a two-wheeler and maybe INR2000 in four-wheeler. So whilst cost arbitrage that important when he has to change the whole supplier for just a very small part.

Sanjay Thapar — Chief Executive Officer and Executive Director

So answering your question. So we have a very long-standing relationship with customers. It is not just a transaction that we support apart. We are core developers of parts with them. So for the customers for new models we have insight onto what new models will happen maybe one year, two years before the customer launches the vehicle. So we do a lot of ideation workshops, we can what are called bling workshops where we say we offer multiple technology options. So it’s not just a part or we want the logo. We also can offer logo in five, seven different technologies. We can do very rapid prototyping and show them that this is what the effect is going to be and that is the reason why customers like to come to us and not go to other people. So for example, if there is a chrome plating business. Company could start with thinking that I want to a chrome plate badge, but when five auction from SJS, he finds that there is a larger variety and we have maintained parts at different price points. So depending on what is the requirement is and that is something that. I think we are quite unique in that concept because of this early engagement as I talked about and the customers like to have robust suppliers. So they’re all financially robust of well run companies and there is already consolidation that’s happening. So customer who like to have fewer suppliers by larger parts largest wanted you apart from the suppliers, so we gave from that trend as well, so, we don’t compete on price. We compete on our capability who differentiate products and add value to their customers product.

Dipen Shah — SJS Enterprises Limited — Analyst

Okay, and just wanted two data if you probably quality what part of the revenue comes from increasing market share, like you replacing the existing supplier in all model with your product, and how much comes from new products of the customer. New launches of customer.

Sanjay Thapar — Chief Executive Officer and Executive Director

To be honest. I don’t have that breakup with me right now, but I can only say that our outperformance of the industry is primarily on increasing wallet share. So customers I would not like to name specific customers and the new data around that, but new model launches via a very premium motorcycle manufacturer. So we worked virtually gained the wallet share across all, and our revenues has increased quite significantly. So again, as I said this is confidential. I would not like to name customers, but a large extent it is because of premiumization and gain of wallet share. So these are to significant drivers for growth when we look on the industry.

Dipen Shah — SJS Enterprises Limited — Analyst

Okay, and just coming to —

Operator

Sorry to interrupt sir, we request you to kind return to the question queue as there are several participants waiting later.

Dipen Shah — SJS Enterprises Limited — Analyst

Okay, okay. Thank you.

Operator

The next question is from the line of Harsh M from Chris PMS. Please go ahead.

Harsh M — Chris PMS — Analyst

Good morning, sir, congrats on good set of numbers. Two questions, one is more on, if you can explain what exact headwinds are we facing in consumer durables and or even facing headwinds for our automobile sector with well in case of exports or is just the CD segment. That is my first question and then I’ll come to my second question.

Sanjay Thapar — Chief Executive Officer and Executive Director

Okay, so the headwind or headline news across the world. So everybody use the same papers. So we war in Ukraine, continuing the sentiment is dampened because the inflation is very high, energy costs are spiraling out of control. So sentiment, both in Europe and North-America, which very large market for us are impacted. Your question was that is the only consumer durables also automotive. So also, automotive, for example, we supply a lot of dias to customers across the world and the lower production in Europe and North-America, that demand has fallen. So overall sentiment is low and we are going to get we are hopeful that this should demand should come back, but essentially it is this rising interest rates and a scenario where customers are cutting back on discretionary expenditure in those advanced countries, which is impacting sales in the long-term. But nonetheless, these continue to be very large consuming markets and we are hopeful that return to growth will come in the near future. So we are just crossing our fingers and watching how it plays out.

Devanshi Dhruva — Head -Investor Relations.

Also, thing is that, if you’ll actually see in our consumer durables or in our auto segment in exports or in domestic as well. We have not lost any customers. It’s just that because if the demand has been subdued. That’s why the volumes in consumer durables have gone down, then that’s why it has impacted also.

Harsh M — Chris PMS — Analyst

Got it, no, the reason to ask this is because we have seen across few other auto ancillaries, the exports has not been impacted significantly for other players, at least in the automobile sector. So that is why I was a bit wanted to get that color, but fair enough. And by when we can expect the volumes from the new customers in the Foxconn and IFB, which have been added. So next financial year, can we expect some volumes from them or they take time to get them into developing new products and then it will take time.

Sanjay Thapar — Chief Executive Officer and Executive Director

So most certainly Foxconn is important win for us because they are one of the –they are famous for their integration of manufacturing of Apple’s cellphones, but there a large global integrator of electronic parts and when we look at integrated displays, which I talked about in my earlier conference call that there is going to be a pressure for localizing these. So that we see is happening and now. So we are the product of e Foxconn is already under development and hopefully should see volume down the next year.

Harsh M — Chris PMS — Analyst

Got it, any number on in terms of revenue, if you can, what they’re sir we request you to please return to the question queue. Okay.

Sanjay Thapar — Chief Executive Officer and Executive Director

Strategically, we don’t provide guidance on specific customers sold.

Harsh M — Chris PMS — Analyst

Okay. Thank you.

Operator

Thank you. The next question is from the line of Rahul Ranade from Goldman Sachs Asset Management. Please go ahead.

Rakesh Jain — Assistant Vice President

Yes. Hi Thanks for the opportunity. I just–

Operator

I’m sorry to interrupt, sir, your request you to speak a little closer to the mike. The audio for you is very low.

Rakesh Jain — Assistant Vice President

Sir, is this better.

Operator

It’s not really sir.

Rakesh Jain — Assistant Vice President

I’ll just come back-in queue.

Operator

Okay. The next question is from the Jigar Jani from Nuvama Wealth management. Please go ahead.

Jigar Jani — Nuvama Wealth Management — Analyst

Yes. Hi, thanks for taking my question. So firstly, on the guidance front, so I think start of Jan, we were anticipating or reiterating our guidance for FY ’23. It’s important to understand the major reason for guidance setting for this year. Was it a particular customer in the export market that we were anticipating and we did not effect on boarded. And whether the guidance on that, which you are guiding about 25% is basically on the EPS numbers that you have then for nine month FY ’23 free to or is it on the full year PAT. That is the first question. And secondly, on the acquisition so we have about INR143 crores of cash. And we are planning to raise another at least for at max INR300 crores. So that’s about INR400 crores of kitty for the acquisition, so I just wanted to understand what the color of what kind of acquisition are we planning whether it is in the domestic or the export market, some more color on what kind of acquisition. It is likely to be since you r are in advanced stages, because it’s a significantly large, hopefully o an acquisition considering that you are also planning to take some debt for the acquisition. So any color on that would be great.

Sanjay Thapar — Chief Executive Officer and Executive Director

Yes. So thank you for your question Jigar. So first on the guidance of FY’23. So for the first nine months of this year, we have stayed steadfast in our guidance in terms of revenue growth. So we were at 25% for the first nine months. This only in all honesty and sharing with you. So we were hoping that the export demand would come back. We have not lost any business in exports, we have not lost any customer in exports. So everything is on PAT, it’s just this macroeconomic issues that exist in Europe and North-America. That is causing the subdued demand. So I’m only being transparent when I say that we were hoping. So for the first half of this year the domestic demand compensated for the export demand, for export markets have been suppressed all through the year since this what is going on. We see fresh challenges everyday. But despite that, our revenue growth for the first six months was 26.5%, we still we’re at 25%, we were hoping that the export markets would take in. The domestic market was a little soft, post the festive sales, which is seasonal that happens. So we are at this moment only being revising that a little slightly to a growth of about 20% and EBITDA growth of about 20%, 25%, so that’s what I said. So we remain extremely bullish on growth prospects and that is the reason why we see huge traction by our customers. We are looking at expanding because we have a lot of customer requirements that we are wanting to fulfill and we will outperformed the industry. So the key point is that while we are not competing. Our strategy of premiumization, our strategy of winning wallet share, adding new products, all has helped us compensate and outperform the industry. So the industry numbers, as you saw the flat, but we’ve still grown very-very strongly. So I am very happy with the performance, my team has potent. And the second question that we have all the acquisition. So I can’t disclose specific details, but to tell you, we need the funds that we have INR143 crores. As we’ve already guided earlier, we are looking at capacity expansion at Exotech. So some amount of money will go there and the acquisitions that we are doing are all value added synergistic acquisitions, which would help us propel the company on a very high growth trajectory moving forward. So that is the reason for the enabling resolution has been passed, it’s not that we are spending the money now, we are very prudent, very cautious that we have the right target, as we’ve done successfully for Exotech as I mentioned during my commentary.

Jigar Jani — Nuvama Wealth Management — Analyst

So any timeline on when we can expect this and whether, just if you could share, whether it could be in the domestic market or will it be an overseas acquisition.

Sanjay Thapar — Chief Executive Officer and Executive Director

I would not like to provide the details till the deal is done. So you can understand. But then we are pursuing high, so that’s all that I can say for the moment.

Jigar Jani — Nuvama Wealth Management — Analyst

[Speech Overlap] Thank you.

Devanshi Dhruva — Head -Investor Relations.

As I mentioned, this is just an enabling resolution from the Board like for an amount not exceeding INR300 crores. This does not mean that we will actually raised INR300 crores or anything, it would be in different tranches also. And at the same time, this is more taken in advance, so that this enabling resolution will help us, so that we can smoothly go ahead with be acquisition, whenever it happens since equity raising is it lengthy and time consuming process. This is how we should start the process in my ahead, so whenever the transaction happens, it happens smoothly.

Jigar Jani — Nuvama Wealth Management — Analyst

Yes. Understood, understood. Thank you so much.

Sanjay Thapar — Chief Executive Officer and Executive Director

Expansion at Exotech is it’s an important event, which we’ve already gone on record, right. So we see very strong traction. We have doubled the sales in two years, we’ve increased EBITDA margins. So they’re extremely bullish, they’re looking at large –talking to large global customers. So for that new capacity like we’ve done at SJS. The same thing we want to build that Exotech, so that we can fully utilize the benefits of scale in that company and fully utilize the the crop value opportunity that we have the customer that we have large relationships.

Jigar Jani — Nuvama Wealth Management — Analyst

Understood. Thank you so much for the answers. I’ll come back in the queue.

Operator

Thank you. The next question is from the line of Dhiral from PhillipCapital PCG. Please go ahead.

Dhiral Shah — PhillipCapital PCG — Analyst

Yes. Good morning, sir. Thanks for the opportunity. Sir, if I look at your P&L and particularly the other external. So as I see, our other expenses on a y-o-y basis has risen sharply by almost 30%, so any one off line item over there, which has impacted our margins.

Sanjay Thapar — Chief Executive Officer and Executive Director

So neither you pay the 12.

Dipen Shah — SJS Enterprises Limited — Analyst

Yes. Thanks for the question. We have a one-off expenses in this quarter in our subsidiary Exotech. There was a late amendment request from the customers. which is below I mean that is belongs to the transaction we have agreed before the acquisition. The details are yet fully renovated. But on a conservative side, we have accounted for and that is accounted for into our closing for doubtful debt. So that was one-item that around investing around INR6 million. Apart from that all I can say that in normal as line. And the percentage wise when you see it compared to the last year, it is in-line with the last year we had a one off income in our revenue INR37 million, which I talked about in my commentary if you seen in adjusted manner, you will find that the course has gone down.

Sanjay Thapar — Chief Executive Officer and Executive Director

One more point so Exotech we’ve actually expanded EBITDA margins, so I think that is the way to get it. We’ve grown sales. We’ve doubled sales, as I said earlier in two years outlook is very bright. We also expanded margins. So we are on the right track in and this is what will be bright growth moving forward. Growth and profit is it.

Dhiral Shah — PhillipCapital PCG — Analyst

So this is a one-time expense or…

Mahendra Naredi — Chief Financial Officer

Then we are still evaluating but, however for the nine month period, we have already factored. So, while we giving the EBITA of 14% that is already been factored there, but yes, it is under evaluation.

Devanshi Dhruva — Head -Investor Relations.

Yes. So despite factoring in that thing also at nine months which is standard 15%.

Dhiral Shah — PhillipCapital PCG — Analyst

Okay and sir, when we are looking to increase our content per vehicle by almost 1.5 times to three to four times across our product category. So by when, sir we are looking to achieve that number in coming years.

Sanjay Thapar — Chief Executive Officer and Executive Director

So, I’ll request you to answer that.

K.A. Joseph — Managing Director

Yes, we working on different technologies that we had mentioned during the presentation. So these things will start the SOPs probably would start by in the second half of FY ’24. That is around September. October days. So these are all related to model launches, so we are pitching very hard for the new generation products. Now as and when. so between award of a business and by the time the customer launch, so that we have controlled by the customer launch timing. So that’s what close referral too.

Dhiral Shah — PhillipCapital PCG — Analyst

So Sir, by FY ’25, are we able to achieve that content per vehicle across the category.

Devanshi Dhruva — Head -Investor Relations.

Dhiral is it [Speech Overlap].

Sanjay Thapar — Chief Executive Officer and Executive Director

As the products in our portfolio now so, technically we will then push it to other customers as well. So as we see with any technology, there is a market-leader with launches on product which is appears to be market and then others follow suit. This is what we’ve seen in the case of this huge screen that Mahindra launched their XUV 700 it was a game changes on the market now and our other customers are wanting the same thing. So similarly, whatever we launch for one customer will get adapted and that’s a matter of in the next couple of years, you will see that transition happening very rapidly.

Devanshi Dhruva — Head -Investor Relations.

Also Dhira, it’s very difficult to give exact timeline because it also depends on how fast the OEMs as well as the customers will adopt these new products. We definitely see demand in the West also growing up for this at the same time in depends on how fast in the domestic market also these products come in and how fast the demand picks up for it.

Dhiral Shah — PhillipCapital PCG — Analyst

Okay, Got your point sir. Thank you so much.

Operator

Thank you. We have the next question from the line of Karan Kokane from Ambit Capital. Please go ahead. Sir, the line for you has been unmuted. We request you to please go ahead question.

Karan Kokane — Ambit Capital — Analyst

Yes. hi, am I audible.

Operator

Yes sir, you are.

Karan Kokane — Ambit Capital — Analyst

Yes, hi sir. So first question is on Exotech. I wanted to understand already you have shown like a good improvement in the margins for Exotech. I wanted to understand what can be like sustainable margins. And do you think that because of this capacity expansions they could be like some hurdles to margin expansion in the midterm for Exotech.

Sanjay Thapar — Chief Executive Officer and Executive Director

Okay, so we’ve guided that standard steady state margins will be about 15%, 16% let say 14% to 15% is what our estimate is. Because I understand that this business largely be the legacy business that we inherited. And the last one year we’ve added many new customers. So the margin expansion is a function of the customer and the selling price that I get from opening doors wide. So one reason why we are investing money in this company is that it should be a facility that customers are happy to buy from and they are compare this in this system and processes should be truly world class so that we aim to do. As we’ve done for the case of SJS. So margins would continue I mean, there would be as I said, demonstrated increase in margins has happened and in addition to this, once we get into the export markets, then we should be able to get even more traction and positive on the margin front Exotech, but this expansion in terms of capacity utilization you ask so our– we are quite confident that our ROCE here for whatever expansion we’re doing will be upwards of 20. So that is what is our investment thesis of business.

Karan Kokane — Ambit Capital — Analyst

Understood. Understood. And sir,second question is just on the ownership of the company. So if I look at the promoter ownership, there’s about a 35% stake, which is being held by a private equity company. And then the promoter holding around 15% stake. So just wanted to understand how should we think about this 35% stake, which is being held by the private equity firm. So that’s my second question and then I just have one last question for you.

Sanjay Thapar — Chief Executive Officer and Executive Director

Look, so ever stone is a primary players, and at one some point will exit. So that is the nature of all the funds, but essentially the business is professionally run so Joe will right next to me is the promoter. So this is a business that is very close to his heart, he will continue to hold and he is very passionate about this new product that is launching, so maybe you’d like to get it from Joe as a promoter. So Joe, maybe.

K.A. Joseph — Managing Director

Thank you. I think you have represented for me, this is [Foreign Speech] kind of business I have started about 35 years back and we continue to play a leading role and continue as much as possible. So, there is no going back on that part.

Sanjay Thapar — Chief Executive Officer and Executive Director

Joe then you also committed to business the. So you shortly joined the business, so you’re not going anywhere. I mean, that’s what I hear.

K.A. Joseph — Managing Director

Thank you.

Karan Kokane — Ambit Capital — Analyst

Okay, okay, understood. And sir, just one question on exports. So exports, you said that you’re feeling a lot of pressure because of demand weakness in North American and European geographies. Sir, just wanted to check our company can also be a play on the China plus one thing because you’ve seen other auto component players saying that suppliers from China are facing it and that’s why they gaining market share. So is there any scope for us to gain market share and if China is a big supplier. Could you just name a few Chinese suppliers.

Sanjay Thapar — Chief Executive Officer and Executive Director

Yea, so very good point. So absolutely. So all the supply chains are aligning post COVID and this war, so India is a great beneficiary and SJS we’ve drop it ourselves into a position that we want to have one customers trust, we have a very global delivery model, we ship around the world both on the supply side and the purchasing and delivery both supply chains have been tested during COVID and customers are[Indecipherable] appreciation letters. So that’s a very strong point when I talk with many customers. So supply chain are realizing we have large enquires from global customers wanting to ship business out of China. In fact, also ship business out of Europe because of this rising energy costs and inflation in those, so those companies have you lost there. I mean, we were always more competitive than them, but now we pressure even more acute. So we lease that’s the reason why I’m so very optimistic about exports and it should pick-up, so it’s hard to say what time when Mr. Karan will decide [Indecipherable] and things come back to normal, but fundamentally it cannot go on. So we are already in the worst phase one year we gone, we’ve still grown a 20%, 25% growth despite these external challenges, what we could do with this tough times is focus inwards and work on improving our operational efficiency work on improving rejections be very prudent with what we do moving forward. So I think we utilize this challenge very well as organization and we are well poised for growth in the mid to long-term.

Karan Kokane — Ambit Capital — Analyst

Could you just as a follow-up to that..

Operator

We request you to please rejoin the queue as we have several participants waiting their turn.

Karan Kokane — Ambit Capital — Analyst

Okay. Thanks.

Operator

Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants. We request you to please limit your questions to two per participant. The next question is from the line of Lokesh Manik from Vallum Capital. Please go ahead.

Lokesh Manik — Vallum Capital — Analyst

Yes. Hi, good morning to SJS. Sanjay Ji, you may– sorry guys joined a little late, so if you can just briefly share on the acquisition of Foxconn as a customer. What are the products that we are supplying to them. The end-use of those products and therefore, the domestic requirement or for their export supply.

Sanjay Thapar — Chief Executive Officer and Executive Director

It is for the requirement in India. So as you are aware Foxconn is a global and maybe the largest global assembler of electronic parts. But it’s of the displays that are used in both the two-wheelers especially the electric two-wheelers and the four-wheeler are all large electronic assemblies and as I said earlier in my calls to the investor community. There is definitely going to be localization that will happen once it reaches critical mass and that is exactly what has happened. So we have one this first business. So that’s a very important step we shook hands, the products are under development and we will get this. So the product we have is in optical plastic part for the two-wheelers PV. And incidentally, we’ve also broken ground in the PV industry, where you have the [Indecipherable] display. So we won our first business again in that business. So that is what product you talked about in this presentation. So we are in a good manner. We’re getting a lot of customer traction.

Lokesh Manik — Vallum Capital — Analyst

And Sanjay Ji, Just a follow-up on this. So have you done any research in terms of the best product would be the cost-competitive in the export market versus their existing suppliers also.

Sanjay Thapar — Chief Executive Officer and Executive Director

Sorry, could you repeat that a little further.

Lokesh Manik — Vallum Capital — Analyst

For the same products in the export market for their export requirements in the global market, would we be cost competitive versus other players.

Sanjay Thapar — Chief Executive Officer and Executive Director

We are again. I would not like to name customers, but as I said clear, so we’ve been working on this product for almost two to three years now. So yes, there is an export market and we are cost comparative, so that also is a big lever. As you know, we are knocking of all our customers. Well, we have long relationships with. So certainly, they will consider for the export market with us.

Lokesh Manik — Vallum Capital — Analyst

Great, that’s it from my side Sanjay Ji. Thank you so much.

Sanjay Thapar — Chief Executive Officer and Executive Director

Thank you.

Operator

Thank you. The next question is from the line of Neel Shah from ValueQuest. Please go ahead.

Neel Shah — ValueQuest — Analyst

Yes. Hi, good morning. So firstly my question is around this equity raise that you’re doing. We are a company, we have very good cash. We have almost no debt and we have–we generate good cash flow. So what is the reasoning behind going down to equity rather than going through the debt route.

Sanjay Thapar — Chief Executive Officer and Executive Director

So at the moment, we have not decided whether be equity or debt route or a mix of both, so that the more will take an appropriate decision. But as such on we’ll take a very prudent decision keeping upper mostly interest of our shareholders in May.

Neel Shah — ValueQuest — Analyst

And just to add,.

Devanshi Dhruva — Head -Investor Relations.

Yes. [Indecipherable]content.

Sanjay Thapar — Chief Executive Officer and Executive Director

Raising funds equity is a basically a lengthy and time consuming process and require very regulatory and internal approvals. Hence you thought to take enabling resolutions to be ready for a point of view for a potential acquisition, but anyway this enabling resolution and approvals are valid for a period of one year. So we have enough time to decide about like as we said we are not in a hurry. And that is appropriate time it will be we will come.

Neel Shah — ValueQuest — Analyst

Right. And my second question is around this new product. So in the new product categories that we have. So let’s say capacity overlays and non-legacy business that we have, what is the percentage of revenue that we’re doing as of nine months ’23.

Sanjay Thapar — Chief Executive Officer and Executive Director

For the new products, we have covered in our commentary, we are around 11% to 12%. Our new products are also we are exporting to the customers and like you see the exports demand are lower at this moment for many reasons we have discussed. So it has gone down compared to the last year. But yes, we are hopeful that exports was come back. We will be back on this trajectory.

Neel Shah — ValueQuest — Analyst

And not just export.

Sanjay Thapar — Chief Executive Officer and Executive Director

So I think you. Yes, sorry, just to add to that, not just export fundamentally this new technology products will find a lot of traction in India, which we already seen. So all these optical partner that off. So, there is a huge demand and I think sooner than later, you will have this as an essential requirement by OEMs when they launched new models.

Devanshi Dhruva — Head -Investor Relations.

Yes. you know, Sanjay, you have highlighted in the question before. Sanjay, just highlighted that Foxconn one of the PV customers and many more customers men’s cover especially and a lot of other new products that we’re introducing, we are already bagging orders for that as well. We are winning new orders for that. So in the future we are very confident that these new generation products are going to grow at a faster phase.

Neel Shah — ValueQuest — Analyst

Right. And these products do you have any target for set for them as percentage of revenue in medium term.

Devanshi Dhruva — Head -Investor Relations.

Sorry, could you repeat your question.

Neel Shah — ValueQuest — Analyst

So I was saying, do you have any target in mind as to what level do you want to reach us percentage revenue in medium term.

Sanjay Thapar — Chief Executive Officer and Executive Director

So my thinking is that we should be at least 25%. So and in fact let’s say, seven years later, it could be almost 70% of our business. So, big growth coming into this area. So 20%, 25% is what we can realistically opening next 3 to 4 years.

Neel Shah — ValueQuest — Analyst

Okay. Thank you and all the best.

Operator

Thank you. The next question is from the line of Dhananjay Jain from Ventures. Please go ahead.

Dhananjay Jain — Brescon Ventures — Analyst

Good morning, sir. I wanted to ask first question on exports. So, in exports, can you give me some of realization in terms of Latin-America, Vietnam, Thailand and US and Europe. What is the difference in realization between India’s. US and Europe and other countries. That is once the exchanges wat has administered legally percentage of revenue for exporting, North-America, Europe and other countries. Third one, I want to know is what time it takes to onboard OEMs in overseas versus India, what is the process there. How much time it takes.

Sanjay Thapar — Chief Executive Officer and Executive Director

Let me answer one-by-one. So first question you asked was what is the share of where different geographies for exports, right. If I understood the question right. [Speech Overlap] realization yes Devanshi want.

Devanshi Dhruva — Head -Investor Relations.

Yes, in terms of share of export, we’ve always mentioned that the audit has been one-off larger market and that could be somewhere around 30% to 25% of our revenue is generally. And this order it’s been a little lower than that because of the fact that we already mentioned. USA is another market, which is somewhere about 10%, 10% of our revenue and Asia, another 30% to 35% of our revenues balance or other country.

Dhananjay Jain — Brescon Ventures — Analyst

Okay. Differentiate realization.

Devanshi Dhruva — Head -Investor Relations.

Sorry.

Dhananjay Jain — Brescon Ventures — Analyst

[Speech Overlap].

Sanjay Thapar — Chief Executive Officer and Executive Director

We don’t guide on realization as per geography. So all export markets primarily our competitors are companies different companies, so let’s say whatever margins beyond export margins are the 5% higher at an average compared to what margins we have in the normal domestic business that we have.

Dhananjay Jain — Brescon Ventures — Analyst

Okay, and the time it takes to onboard OEMs outside India, what is the process for it?

Sanjay Thapar — Chief Executive Officer and Executive Director

It’s only products, so we already have relationships to companies like this. We supply them for many years There is — it’s just — they gave us a motor and we start developing the product. It is proven, so there is no challenge there. For some specific new generation products like these optical plastic part of the lenses with the special footings that would take maybe about six to nine months for them to through. But these are new technologies. All the legacy products that we have, we don’t wait for too long. Specifically for special export requirement like color matching et-cetera, they do some tests, which again is three, four months testing needed.

Dhananjay Jain — Brescon Ventures — Analyst

Okay. And apart from this, [indecipherable].

Operator

Please use the handset mode. Your audio is not very clear, sir.

Dhananjay Jain — Brescon Ventures — Analyst

Okay, okay and I will use the handset mode. Is it clear now?

Sanjay Thapar — Chief Executive Officer and Executive Director

Yes.

Dhananjay Jain — Brescon Ventures — Analyst

I wanted to know placing business, what is the growth percentage we are seeing? Are you looking to go into aerospace as well because from getting at acquisitions there? Can you bifurcate between cross-sell and non-cross-sell revenue?

Sanjay Thapar — Chief Executive Officer and Executive Director

I didn’t hear the last part of your question, but let me respond to what I heard —

Dhananjay Jain — Brescon Ventures — Analyst

Cross-sell and non-cross-sell revenue, bifurcation between them.

Sanjay Thapar — Chief Executive Officer and Executive Director

Are you questioning about cross-sell — opportunity to cross-sell? Talking about revenue break up in sales, we’ve increased sales at getting business by 50% last year. Again, very strong growth. As I said we, we’re doubling sales in the last two years. So that’s a testimony to the traction that we have with our existing customers. A lot of that business has come from cross-selling, especially this year, so it has come from cross-selling, it has come from gaining market share and launching new products very quickly. So, it’s a mix of all. I can’t give you specific percentage. Do we have it, but may be Devanshi would talk you separate together.

Devanshi Dhruva — Head -Investor Relations.

Thank you. The next question is from the line of Chirag Fialoke from Ratnatraya Capital. Please go ahead.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Hi, good morning. Thank you for the opportunity. Just a follow up on the exit margin. Is it correct that the INR6 million provision that has been taken for a pricing negotiation, I believe, all of it should be adjusted to Exotech EBITDA, is that the right way to understand it?

Mahendra Naredi — Chief Financial Officer

Yes, that was right. It was adjusted with the Exotech contributions, yes.

Sanjay Thapar — Chief Executive Officer and Executive Director

Let me give you some flavor around that. So before, I mean, the company has entered into contract before we acquired Exotech. So this is something that has been requirement by the customer. Now, we are examining it. But yes, it is specifically only Exotech.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Understood, But if I don’t adjust for that, then this quarter Exotech would have made something like 12.4%, 12.5% EBITDA margin. Do you think that it’s just because of that provisioning that if you adjust for that, it comes to 14%, that’s how I should understand it because from a quarterly cadence point of view, we are at INR35 crores, but the margins have come down on a quarterly basis on Exotech specifically?

Mahendra Naredi — Chief Financial Officer

So you’re right. Had this not been, the margins would be higher for sure. And we were like — we were examining this point also and going forward, we will improve our margins for the Exotech margin improvement over a period of time. So, the way to look at it is look at the nine-month margin than we were a bit of leverage. So we are at 14% on a nine-month basis at Exotech. And that is after doing this definitely.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Understood. Alright, thank you so much.

Devanshi Dhruva — Head -Investor Relations.

Even for the same Q3 actually, if this adjustment had not been there, we would have been at 15% margins at Exotech. So that’s why, you know, on the nine-month basis even after factoring in, we still at 14%.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Right. And this adjustment is for the whole of nine months, is it just taken in this quarter, but also sort of retrospective in nature. Is that the right understanding for it?

Mahendra Naredi — Chief Financial Officer

So, right. This adjustment was taken in-quarter three and the this belongs to the first.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Understood. Just one more question. On the on the exports split side, could you please share the number for exports for H1 also, as you have done for nine months?

Sanjay Thapar — Chief Executive Officer and Executive Director

[indecipherable].

Devanshi Dhruva — Head -Investor Relations.

Yeah, can you just repeat the question?

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

Sorry, the split of exports in domestic for the half year.

Rakesh Jain — Assistant Vice President

The breakup of exports and domestic, you mean?

Devanshi Dhruva — Head -Investor Relations.

Yeah, for the half year, it would be somewhere around that. Our exports would have been somewhere around 70%, similar to what it was this quarter also, for the nine months. And domestic somewhere around 90% to 93% even for the half year.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

And the same half years FY ’22 would have been around 13%, 14%?

Devanshi Dhruva — Head -Investor Relations.

Last year exports were somewhere around 12%.

Chirag Fialoke — Shree Ratnatraya Capital Partner — Analyst

All right, thank you so much. Thank you for the opportunity.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Devanshi Dhruva from SGS enterprises for closing comments. Over to you ma’am.

Devanshi Dhruva — Head -Investor Relations.

Thank you. Thank you everyone for joining us on this call. If anyone’s questions have been remained unanswered, please feel free-to contact me and I will answer it to the best of my ability. Thank you, everyone. Have a great weekend.

Sanjay Thapar — Chief Executive Officer and Executive Director

Thank you.

K.A. Joseph — Managing Director

Yeah, thanks. [Operator Closing Remarks]