Sundram Fasteners Limited (NSE: SUNDRMFAST) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Mukesh Saraf — Director
R Dilip Kumar — Chief Financial Officer
Analysts:
Unidentified Participant
Varun Arora — Analyst
Sahil Sanghvi — Analyst
Varun Arora — Analyst
Aditya Khemka — Analyst
Amar Maurya — Analyst
Anuj Sehgal — Analyst
Parikshit Gujarati — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Sundaram Fasteners Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mukesh Sara from Evender Spark. Thank you. And over to you sir.
Mukesh Saraf — Director
Thank you. Shubham. Good morning everyone. Mukesh Saraf here from Avendus Park. Appreciate everybody logging into this CQFY 26 earnings call of Sundaram Fastness. From the management team, I’m pleased to host Mr. R. Dilip Kumar, Chief Financial Officer Mr. Executive Vice President Marketing and Mr. Arganesh, Vice President Finance and Projects. I’ll now hand over the call to Mr. Dilip Kumar for his opening remarks. Oswich, we’ll begin the Q and A on over to you sir.
R Dilip Kumar — Chief Financial Officer
Thank you. And Mukesh. Good morning to all. Welcome to. Welcome to A. Yeah, sorry. Welcome to a discussion on the 9 month and Q3 results of Sundar VAS. Are you experiencing any disturbance, Mukesh?
Mukesh Saraf — Director
Yes sir, there is a little bit of disturbance from the MIC right now.
R Dilip Kumar — Chief Financial Officer
It’s not there.
R Dilip Kumar — Chief Financial Officer
Yes.
R Dilip Kumar — Chief Financial Officer
So. We’ve had a reasonably good quarter. The domestic performance has been very Strong. We registered 18% growth in the domestic segment in both our OE and aftermarket business put together. The exports have moderated a bit as expected because of the tariff pressures. The overall revenue for the quarter has come in at 1359 crores. And the raw material costs have been stable. And our gross margins are up compared to the earlier quarters. But after adjusting for inventory movements it’s slightly lower. But at the RMC stage the gross margin is above 60%. We’ve had reasonably good control over both variable costs and fixed costs.
The only element which as expected is the tariff and the full brunt of the tariff has started impacting. And some of our products are 25%, some of them are 50% depending on the iron steel content. And that has had an impact on at the contribution stage. Our fixed costs remain stable, have been consistent across the quarters. The borrowings have come down because of better working capital management, lower inventory, relatively lower inventory and the depreciation impact as slightly come down because of lesser capitalization. And you may have noticed that like all companies which have provided for the labor code impact, we will also take an exceptional hit of 11 crores.
And the profit before tax before the Exception item was 174 crores compared to 186 crores the previous quarter. The difference of 10 to 12 crores primarily arises out of tariff and after adjusting for the one time impact we have reported 162 crores of PBT and after tax 122 crores compared to 120 crores in the comparable quarter. But like I said while it appears to be a flat number but one should see it in the context of PBT before exception item where the growth has been from 153 crores in corresponding quarter to 173 crores. The half the nine month number somewhat mirrors the quarterly performance.
With strong domestic performance and moderating exports. Our contribution has been better for the nine month period. About almost 1% higher than the for the quarter and the EBITDA is at 17.3% for the nine month period. Directionally in the earlier calls we discussed whether we would touch 18%. But I think we are on that way that journey. And after adjusting for exceptional item and the taxes we have reported 400 crore. 401 crore profit after tax for the nine month period compared to 382 crores. And these are some of the highlights of our performance. And we are happy to take any questions which you may have.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Varun Arora from MK Global Financial Services. Please go ahead.
Varun Arora
Yeah. Hi. Thanks for your question. Just want your view on the long term perspective going forward. How much the growth you’re looking forward in the next two to three years. First, second. Now going forward, how much exports we are looking for. I mean in terms of usg.
R Dilip Kumar
Hello.
R Dilip Kumar
And about the margin too. So these are two first questions and I’ll fall back in the future.
Varun Arora
Okay.
R Dilip Kumar
Are you there?
R Dilip Kumar
Hello?
operator
There is no response from the participant.
R Dilip Kumar
Yeah, maybe we can go to the next participant. Yes.
operator
Sir.
operator
The next question comes from the line of Sahil Sangavi from Monarch Network Capital. Please go ahead.
R Dilip Kumar
Good morning sir. Am I audible? Hello.
R Dilip Kumar
Hello.
R Dilip Kumar
Is there any issue with the connectivity?
operator
Just. Just a moment sir. I’m checking.
Sahil Sanghvi
Morning. Am I. Am I audible? Hello.
R Dilip Kumar
Operator is There any issue connectivity so.
R Dilip Kumar
We can’t hear the participant. Just a moment.
operator
Hello.
operator
Ladies and gentlemen, please stay on hold while we correct issue. Just a moment.
operator
Sam.
Sahil Sanghvi
Hello?
Sahil Sanghvi
Yeah, good morning. Am I audible?
R Dilip Kumar
Yes sir, you’re audible.
Sahil Sanghvi
Yeah. Good morning sir. Congratulations for your numbers. On the domestic front that’s pretty solid numbers sir. On the export front I wanted to understand with the tariff related issues and the demand what is our strategy now to work on the exports? Because we are now seeing exports as a percent of revenue coming to 23%. I think one time we were at a good 30, 33% so just wanted the management’s understanding on how it will try to mitigate this environment.
Sahil Sanghvi
See on the, on the export front they say North America is in a bit of train now and, and going.
Sahil Sanghvi
Forward also this the indications are that.
operator
Sorry to interrupt sir, there is a disturbance from your line.
Sahil Sanghvi
Are you able to hear us sir?
Sahil Sanghvi
Yes, I can hear.
operator
Is it clear now?
Sahil Sanghvi
Yes sir.
R Dilip Kumar
On the exports front as you rightly said North America is in a bit of strain now and even the indications going forward that there’d be a sort of a gradual quarter over quarter improvement. But that said from our perspective we are trying to also expand and derisk the portfolio and we are in touch and working with a lot of customers in Europe like say Poland, Romania, Sweden. We’ve got good RFQs and we are working, some are in the final stages of. Of conclusion, some are early yet and even with the existing customers we are trying to expand and work on areas like UK where there would not be much of a demand contraction on account of the tariffs.
So this is a broad approach that you have taken and we are trying to see hope there because we’ve got a lot of inquiries from customers.
Sahil Sanghvi
Right sir, that’s, that’s happy to hear. Secondly sir, if you can show some, I mean if you can throw some traction on whatever the new projects. Are we looking at any kind of new product addition or any kind of new, you know, end user industry? We’re targeting any, any kind of that perspective you can give.
R Dilip Kumar
Yeah, I think with respect to the new projects and new products as part of our non auto diversification.
operator
Sorry to interrupt sir. There is still a disturbance formula.
R Dilip Kumar
As part of our diversification into non auto we are expanding on the wind energy partners. Where. Am I audible?
operator
Yes sir.
operator
Yes sir.
R Dilip Kumar
With respect to the wind energy where we have had the first phase of expansion and moved the numbers from 200 odd crore to 350 on an annualized basis with the further expansion of the Internet business we are looking to take it up to close to 500 crores on an annualized basis and it has grown about 30% from the current level. So that is one expansion and activities are on course. The second one is with respect to our aerospace fasteners where we have been hovering around on a monthly basis about 2 and half to 3 crores we have seen a jump of which is witnessing a 50 to 60% growth.
So that is another area where we are seeing traction. And on the railway fasteners where we have been working through our dealer distributor network we see a lot of opportunities coming up on account of all this Vande Bharat and modernization of tracks. So those are the lines which we are pushing and as part of our growth strategy.
Sahil Sanghvi
Sure sir, this is helpful. My last question is sir, on the EV written orders that we’ve received from North America, any kind of status check if you can provide on the timeline on the ramp up. What, what do you expect on that front.
R Dilip Kumar
With respect to the EV project as expected or required from the customer? We have had the capacities in place and during the last quarter or so some amount of pull has been there. But predominantly it is on the ICE segment out of the project that we have worked out which comprises both ev, PHEV and ice. We are seeing some amount of trickle happening on the ICE segment with EV expected to pick up probably in the second half of next year. That is the broad indication that we have. But while the project is already completed we are also working with putting for alternative use while we are working closely with the customer in terms of servicing their ICE requirements.
But we are also working with alternate customers for better capacity utilization because these equipments are interchangeable between ice, PHEV and ev.
Sahil Sanghvi
Thank you so much sir and all the best.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star N1 on the Touchstone telephone. The next question comes from the line of Varun Arora from MK Global Financial Services. Please go ahead.
Varun Arora
Yes sir.
Varun Arora
Now.
Varun Arora
Sir, just a clarification on what you said on ev. So you’re suggesting that EV will start to pick up in second half of FY27. Is my assumption is right or wrong?
R Dilip Kumar
Yeah, yeah. But it cannot be in line with the original project or assumptions. But we will see a trickle with respect to ev.
R Dilip Kumar
Yeah, we are expecting a trickle in the second half of last year because the programs by and large have been postponed. So it would start as a trickle and then maybe mature later.
Varun Arora
Okay. Okay, so I have three questions. Just give it to you so what sort of growth you are targeting in FY27 in terms of revenue and what’s our Plan CapEx in FY27 and on the margin front so you are pretty range bound in terms of margin by and by what timeline we can see to break these this range and inching towards the 19 to 20% of margin.
Varun Arora
Sir.
R Dilip Kumar
On the margins front.
R Dilip Kumar
According to the there is a lot of disturbance.
R Dilip Kumar
On the margins front on the margins front we have already moved from the 16% odd to 17% plus and like I said in my opening remarks the direction going towards 18% that’s the broad guidance I can give you at this point and like we have said many times in the past calls margins which were hovering between 19 to 20 got impacted by the steep rise in RM prices while they have moderated they have not moderated to the extent.
Varun Arora
Sir we can’t hear you Sorry to interrupt we can’t hear you properly There is a disturbance from your side. Am I audible? Sir? Hello sir are you there?
R Dilip Kumar
Yeah we are there, we are there.
R Dilip Kumar
We’Re just trying to figure out how to make all the smooth Anyway so like I said we are in the direction of 18% that’s our intermediate target we look forward to achieve that and we had dropped to below 17 and we were more closer to 16 than 17 that has improved and once the export business recovers and you will see us achieving that 18 or crossing that 18% as far as capital expenditure is concerned roughly we would have about 250 crores of capital expenditure in any year and some of it about 30% of it could be replacement capex and we may look to add new lines wherever our capacity utilization has already touched 70 to 75% that’s the broad guidance on capital expenditure on the growth we would endeavor to achieve a two digit growth and our business plans are based on market feedback and discussion with customers While it’s slightly premature maybe the next call I will be able to give you a better indication But I would think optimistically that we would not look at anything lower than 10%.
operator
Thank you the next question comes from the line of Aditya from Happy to Invest Please go ahead.
Aditya Khemka
Yeah hi. Am I audible?
operator
Yes.
Aditya Khemka
Yeah thank you. Thank you sir so my question is a non auto segment is like we are aggressively our goal to 50% of total revenue this target so is the margin profile of the wind and aero segment currently higher than traditional automotive fast business? So how you planning to take it Forward in a 12 to 18 months and what is the total revenue coming from the non auto segment in end of quarter three.
Aditya Khemka
Non auto. Currently non auto comprises of aerospace.
R Dilip Kumar
Are you able to hear me?
Aditya Khemka
Yes, sir, but there is a disturbance. Earlier you were speaking. That was clear. Just speak a little louder. That will be better, sir.
R Dilip Kumar
The aerospace, railways and wind energy tractors.
R Dilip Kumar
Aftermarket segment comprise 38% roughly of our revenues today. From about 30% or more to 38%. That’s because of the drop in export revenues. And the as the aerospace division and wind energy businesses since wind energy has scaled up nicely and considerably and they have been quite profitable in terms of operations as well as the returns.
R Dilip Kumar
And the aftermarket has been growing at a steady pace.
R Dilip Kumar
And this year we have had very strong performance in the tractor segment.
R Dilip Kumar
These will continue to do well because.
R Dilip Kumar
Our wind energy is poised for next round of expansion. And aerospace today is less than 100 crores. So on that low base we will continue to see robust growth in the coming quarters also. I hope I have answered your question.
Aditya Khemka
Okay. And so my second question is the content per vehicle. So we are. We are shifting from SUV to credit fuel hatchback, right? Which is a higher horsepower devices. Am I understanding? Correction. And is a more premium segment, right? So is it content per vehicle is increasing in some for our businesses.
R Dilip Kumar
Can you repeat the question he’s asking content between SUV and this one. Whether there is more or less no.
R Dilip Kumar
On the. On the SUVs it will be more than the small car or the lower category segment. In all segments we see movement toward the higher end and the premiumization. And so concomitant content per vehicle increase is there for all parts in our portfolio as well.
Aditya Khemka
Got it, Got it. Thanks.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on your touchstone telephone. The next question comes from the line of Ahmad Maurya from Lucky Investments. Please go ahead.
Amar Maurya
So, thanks a lot for the opportunity. So in terms of your domestic growth, what would be. I mean what would be the mix between the fasteners versus non fasteners into this and how the mix would be in the CD or TV for the domestic market?
R Dilip Kumar
I think in the domestic market the pickup or growth it centers around cars M and HCV segment for us and with strong presence in tractors. So those are the three segments which is driving the growth in domestic segments.
Amar Maurya
Okay. Okay. So basically commercial vehicle and tractors are driving the growth, right?
R Dilip Kumar
Yeah, commercial vehicle. So it’s. It’s all the three segments. That is how I would put it. So between commercial M&LCV LCV combined with cars and multi utility vehicles and tractors. So this is what is driving the growth of domestic segment and with respect to partners as well as others I think we have been witnessing growth across all our product segment in the domestic market.
Amar Maurya
Okay. And currently what would be the mix of partner in the overall domestic revenue.
R Dilip Kumar
In the overall domestic revenue fastness would be about 40 to 45%.
Amar Maurya
Okay.
Amar Maurya
Okay, perfect.
Amar Maurya
Thank you sir. Thanks a lot.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question you may press star and 1. The next question comes from the line of Amar Ahir from Raiden Capital. Please go ahead. Yes sir, you may proceed with your question.
Unidentified Participant
Hello, Am I audible?
Unidentified Participant
Sir?
Unidentified Participant
Yes.
Unidentified Participant
I’m so sorry, I just. I might have missed out on the X. So I just wanted to ask that you have done 217 crores of capex for the nine month period so that start contributing to the revenues. And second thing, what are the further CAPEX plans for the year ending FY26 and any plans of capex for FY27? That’s it.
R Dilip Kumar
As far as capital expenditure is concerned we will probably finish the year FY26 but around 350 crores and I expect.
operator
Sorry to interrupt sir, there is a disturbance.
R Dilip Kumar
I expect our capex to be around 250 crores next year and the CAPEX will start contributing and like I said about 25 to 30% based on past experience is a replacement capital expenditure which improves the productivity and we replace the state of the art machine. The remaining 60 to 70 could be adding directly to the revenue and these are investments are made with clear indications from customers. So we have kind of agreement with the customers basis which we further make investments or expand our facilities.
Unidentified Participant
Okay, so you mean that when the capex is done it will directly start contributing?
R Dilip Kumar
Yes. So typically the capital expenditure in auto where some of the furnaces or machines have to be imported and typically takes six to nine months time. So the number which you see as an expenditure would remain in capital progress for some time and then the volumes to mature or ramp up may take further time. But initially in the first six months or so after the machines are installed probably we’ll have a one one kind of a growth.
Unidentified Participant
Okay, and how much will that contribute to the revenue?
R Dilip Kumar
Like I said, if we are incurring about 300 crores, what 100 crores would be for replacement. The balance 200 crores would be for revenue. And like I said a one is to one is a safe bet to assume.
Unidentified Participant
Okay, now what are your utilization Right.
Unidentified Participant
Now, sir, we have many businesses and it varies from business to business, line to line, assembly to assembly. So while it’s difficult to put a number across the company, one number. But each unit will have its own capacity utilization and equipment effectiveness. So broadly, just to make it easy for you, I would say probably around we are at 60% capacity utilization.
Unidentified Participant
The guidance for FY27 was double digit growth in revenue and 18% margin guidance. Right, sir?
R Dilip Kumar
Margin, definitely. Yes. And like I said, slightly premature to discuss about the business revenue guidance for next year. And I said we would not look at anything lower than 2 digit growth.
Unidentified Participant
I’m sorry I missed out on the revenue guidance. Could you repeat it, sir?
R Dilip Kumar
We would not be looking at any growth, any number which is lower than a double digit growth. That’s what I said and premature to give you a guidance. Maybe the next call I’ll be able to indicate with certainty.
Unidentified Participant
Okay, sir, fine. That that’s it from my side, sir. Thank you so much.
R Dilip Kumar
Thank you.
operator
Thank you. The next question comes from the line of Mukesh Sara from Evander Spark. Please go ahead.
Unidentified Participant
Yes, as the question queue builds, I just had some basic questions. First is if you could just kind of give us the revenue mix that you usually give across, you know, different cuts. So once the OEM aftermarket exports and then within that domestic, if you could give the breakup of CV engines and all of that.
R Dilip Kumar
I think with respect to the segment wise, revenue exports today stands at about 25% followed by 60 to 62% coming from OE and 12 to 13 from aftermarket.
Unidentified Participant
Right.
R Dilip Kumar
That is on the segment. With respect to the, in the domestic segment, whatever M and H, CV, CV plus engines that would constitute about 35% followed by cars and MUV at 40% and tractors between 10 to 12%. So these are the major segment by split for domestic sales.
Unidentified Participant
Okay, so the mix hasn’t changed much as such. So the fact that we are seeing improvement in CVs probably I was expecting some kind of a change there. What’s the outlook for mhcv, sir? Domestically? And how should that kind of go for you guys?
R Dilip Kumar
Mukesh? See, I think the mix from business oe, domestic oe, retail export perspective has changed a bit. But segment, as you pointed out, the mix has not changed much because all segments have grown. So that said, see next year going forward, the rough indications coming for the commercial vehicle segment is roughly 8 to 10% growth over this year. And on the Pascal segment also it’s around 8 to 10%. And on the tractors upwards of 10% is what is being indicated right now. We are yet to receive the full year projections from all the customers, but the overall sentiment is towards this.
Unidentified Participant
Understood, understood. And just again on the domestic business, I think last couple of quarters you had kind of indicated that you’re working on a lot of new RFQs, especially for the SUV segment and that something should materialize in the next few months. I mean next couple of quarters or so is what you had indicated. Where do we stand in those new businesses? Obviously, I mean just setting aside the industry growth, just trying to assess what we can do, you know, over and above the industry growth in terms of new business or wallet share probably that we are looking at with certain OEMs.
R Dilip Kumar
Yeah, see it’s always our endeavor to keep increasing our share within the pie irrespective of the external environment. As we said last time, those RFQs, some of them are matured and some are in the final stages of discussion. And on the existing customers share with quite a few customers we have increased share of business also both on the commercial vehicle side as well as on the tractor side.
Unidentified Participant
Okay, so fair to assume we, I mean because there are some questions around next year growth. So fair to assume we should be well ahead of the industry growth. So if industry says going to grow 10%, how much would you want to say outgrow the underlying industry?
R Dilip Kumar
If it is industry grows by 10%, I think we’ll be outperforming them by say from 10, we will be at 12%.
Unidentified Participant
Okay, okay, okay, right, right. And question on the subsidiary businesses, you know, any update there? The performance there is, has been just about average in line with previous quarters. You haven’t seen too much change. So any update there?
R Dilip Kumar
With respect to subsidiaries, I will address Cramlington that mirrors more or less the European truck market where we have seen a degrowth in 2025 compared to 24, so mirrors the truck segment. And the positive thing is the subsidiary is generating cash and managing the requirements on its own. With respect to China, I think we have seen some optic in construction equipment segment and cv. So that is pushing up the revenue within the China market because almost 80% of the revenue is generated within China. So the revival of construction and CV segment is helping in its momentum of growth.
But the only point with respect to China, the price pressures on account of capacity available. That is one area which we are working on. Otherwise I think the business has done reasonably well given the market conditions there.
Unidentified Participant
Right, right, right. And lastly from my side, I mean you did kind of mention that margins should be around the 18% mark which is like close to maybe more than 100 basis points improvement in the coming year. So any specific triggers for this? Is there some new export business because exports probably a better margin business especially with the way forex is moving or any higher value add business that we are seeing coming through. Any kind of drivers for this? Because capacity utilization remains low about 60 odd percent. So just trying to understand what could be the drivers for this margin.
R Dilip Kumar
There are three levers. One is the aerospace business which is high margin business for us. While it is not a substantial part of the pie, it’s definitely the trickles are making a small difference difference and the margins from 17.3 to 17.4 we are happy to take that. The second is the wind energy business where we have had a 30% growth and that is poised for further expansion. It is scaled up nicely and the operating leverage is kicking in there. And the third, like he said, is the exports. We’ve had high margin businesses which have moderated a bit.
And like we also explained now whether EV or capacity intensified in Europe as well. Not only depending on America and I think we are no longer dependent on America as much as before. And so as we settle, enter into contracts at new businesses, enter new businesses with higher margins and that also percolating down to a higher ebitda.
Unidentified Participant
Right, right, right. Now this makes sense.
Unidentified Participant
Great.
Unidentified Participant
So thank you. I think we have one question in the queue. Shubham, if you could just take that.
operator
Thank you. The next question comes from the line of Aditya from Happy to Invest. Please go ahead.
Aditya Khemka
Yeah, thanks for watching again. My second question. Three City faculty plant. So the capacity data is in the reserves. Could you please share the current installment capacity of this plant in a tonnage or inlet sites and what is the current dependency? Current utilizing level are here and on a margin profile. Sir, given that this facility is focused on more specialized EV components and export markets. Right. So is the EBITDA margin profile of this specific plant is attractive to the blended company margin of 18%. If so, so how many basis points Expect more EBITDA margin from this plan.
R Dilip Kumar
Yeah, with respect to capacity utilization I think already it was explained saying that we have each lines of business and given the market conditions few of them would be operating at about 70% plus and wherever. With respect to EV or powertrain components that might be operating say sub 50% mixel bag for us. And with respect to the margins, as we had explained once, the export business which has now moderated, if it comes back, whether it Is in terms of ICE business or CATV or ev, we should see an uptick in the overall EBITDA margin of Sundaram Partners.
Aditya Khemka
Got it, got it. Thanks.
operator
Thank you. The next question comes from the line of Anuj Sehgal from Manas Capital. Please go ahead.
Anuj Sehgal
Yeah, hi, I just wanted to understand on the export side, can you give a breakup of the geographical mix both for this year nine months and how.
Anuj Sehgal
Does it compare to last year nine months?
R Dilip Kumar
I think with respect to the geographical presence with respect to exports, while there has been some contraction in the North American markets comprising of us, Mexico and Canada, which generally used to be at about 70% or so, now we are seeing that say between 60 to 62%. So that is on the North American market and the presence in Europe, which used to be about 20%, now we are seeing that inching up to 25%. So broadly the shift is say 3 to 5% drop in North America was followed by increase in Europe and the Asian region.
That is a broad geographical segment with respect to exports.
Anuj Sehgal
And then is the margin profile for the export business similar whether it is to North America or to Europe or other regions?
R Dilip Kumar
Yes, the margin profiles are comparable. It depends on the product group which we are exporting. But it mirrors more or less whether it is to America or Europe.
Anuj Sehgal
Okay, thank you very much.
operator
Thank you. The next question comes from the line of Parikshit Gujarati from Navisha. Please go ahead.
Parikshit Gujarati
Hello. Thank you for this opportunity. Sir. Am I audible?
operator
Yeah, yeah, you are audible.
Parikshit Gujarati
So I wanted to ask on the side of bis, has the BIS been implemented by the government? So the was to implement the BIS norm for the fastener impulse we are doing. So I wanted to ask on that side.
R Dilip Kumar
I. I think with respect to. I think you are talking about the quality control order. Qco.
Parikshit Gujarati
Yeah, yeah, yeah, yeah. The is, yeah.
R Dilip Kumar
While the government has been pushing, I think still some amount of imports are happening based on representation from the OEMs to the government. But nevertheless we are also seeing some amount of business shifting on account of this QCO and these OEMs have started interacting with us for sourcing partners.
Parikshit Gujarati
Okay, okay. And my second question was how much revenue of Sundaram partners come from the auto sector.
R Dilip Kumar
Today the automotive segment is close to about 62% with the non auto comprising 38%.
Parikshit Gujarati
And so my last question was again on the BIS side only that. So all the OEMs which are MNC such as Hyundai and Maruti, like these OEMs, so they import an approximate of 1100-1200 crores of ASMAs every year for their automobile segment. So what is your view on that? Can this market come to India if the BIS norms are implemented as an import substitution thing.
R Dilip Kumar
That it is potentially possible. And that is why the QCs QCOs have been have been issued to encourage domestic sourcing. But many of them. Also may not justify investments or scaling up for WhatsApp because they could be low volume and they could be for certain luxury segment. And the OEMs may be also be reluctant because it is is part of the suppliers are part of their global supply chain. So there are many considerations in this and one could be the quality, other could be the low volume, third could be the rigorous testing requirements. So yes, it is an opportunity which we are eyeing and as policy constraints are eased and government is also reviewing some of these imports at the HSN level each code, whether it’s coming from China with geography, it is getting imported the quantum.
And they are also contemplating many policy measures. And so therefore it is an opportunity but it will take some time.
operator
Thank you ladies and gentlemen, as there are no further questions and I hand the conference over to the management for closing comments. Thank you. And over to you sir.
R Dilip Kumar
Nothing specific and like I said, we are looking forward to a reasonably good Q4. I think the January month has started well and we expect the domestic market is robust and the export pipeline is also expected to improve this quarter. We hope to report good numbers as far as Q4 is concerned.
operator
Thank you on behalf of Sundaram Fasteners. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
R Dilip Kumar
Thank you.