{"id":182406,"date":"2026-05-06T04:39:10","date_gmt":"2026-05-06T08:39:10","guid":{"rendered":"https:\/\/alphastreet.com\/india\/sjs-enterprises-ltd-sjs-q4-2026-earnings-call-transcript\/"},"modified":"2026-05-06T05:27:34","modified_gmt":"2026-05-06T09:27:34","slug":"sjs-enterprises-ltd-sjs-q4-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/sjs-enterprises-ltd-sjs-q4-2026-earnings-call-transcript\/","title":{"rendered":"SJS Enterprises Ltd (SJS) Q4 2026 Earnings Call Transcript"},"content":{"rendered":"

Note:<\/strong> This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.<\/em><\/p>\n

SJS Enterprises Ltd (NSE: SJS) Q4 2026 Earnings Call dated May. 06, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Devanshi Dhruva<\/strong> \u2014 Head of Investor Relations<\/em><\/p>\n

K.A. Joseph<\/strong> \u2014 Managing Director<\/em><\/p>\n

Sanjay Thapar<\/strong> \u2014 Group CEO & Executive Director<\/em><\/p>\n

Mahendra Naredi<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Analysts:<\/h2>\n

Joseph George<\/strong> \u2014 Analyst<\/em><\/p>\n

Pritesh Chheda<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Hitesh Goel<\/strong> \u2014 Analyst<\/em><\/p>\n

Pranay Roop Chatterjee<\/strong> \u2014 Analyst<\/em><\/p>\n

Ganeshram Rajagopalan<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Prateek Giri<\/strong> \u2014 Analyst<\/em><\/p>\n

Sahil Sanghvi<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to the SJS Enterprises Limited Q4FY26 earnings call hosted by IIFL Capital Services Limited. As a reminder, all participant lines will be on listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr.<\/p>\n

Joseph George from IISL Capital Services Limited. Thank you. And over to you.<\/p>\n

Joseph George<\/strong> \u2014 Analyst<\/em><\/p>\n

Thank you. FSP. This is Joseph from IFL Capital. Good day everyone. On behalf of IFL Capital, I welcome you all to the 4Q FY26 results conference call of SJS Enterprises Limited. I also welcome the senior management of SJS, Mr. K.A. Joseph, promoter and managing director. Mr. Sanjay Thapar, group CEO and executive director. Mr. Mahendra Naraydi, group CFO. Now I will hand over the call to Ms. Devanshi Dhruva, head of Industrial Relations to take it forward. Over to you. Diwanshi.<\/p>\n

Devanshi Dhruva<\/strong> \u2014 Head of Investor Relations<\/em><\/p>\n

You Joseph. Good morning ladies and gentlemen and thank you for being with us over this call today. We appreciate it. Moving on, this is how we intend to take today’s conference call forward. I will pass on the dice to Mr. K.A. Joseph, our MD who will make his opening remarks and then hand it over to Mr. Sanjay Thapar, our Group CEO and Executive Director who will take you all through some of the slides of our presentation that has been uploaded on the stock exchange as well as on our website. Mr.<\/p>\n

Sanjay will take you all through the industry, view our business performance and then give a strategic outlook for the future or growth of the company at the end. And Mr. Mahindra Naredi, our group CFO will update you on our financial highlights post which we will open the floor for Q and A. The duration of this call is around 60 minutes and we will try to wrap 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 write to us and I will try to answer all your questions to the best of my ability.<\/p>\n

Thank you once again. And I will now hand it over to Mr. Joseph to make his opening comments. Over to you, Joseph sir.<\/p>\n

K.A. Joseph<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yeah. Thank you Devanshi for the introduction. Good afternoon everyone. I hope you all had the opportunity to review our investor presentation and the financial results published yesterday. India’s automotive industry witnessed a steady growth during FY26 supported by sustained demand across both two wheeler and passenger vehicle segments. The industry continued to benefit evolving consumer preferences, premiumization trends and the increasing adoption of enhanced products. While growth remains stable across segments, value growth outpaced volume growth driven by higher content per vehicle and growing focus on aesthetics and technology.<\/p>\n

In this environment, SGI has continued to set new benchmarks delivering strong performance and marking its 26th consecutive year of outperformance. Notably, the company achieved a YoY growth of 41.1% in the automotive segment in Q4FY26, exceeding the automotive industry’s production volume growth of 18.9% by more than two times. SJ has reported its highest ever quarterly revenue in Q4FY26 with a consolidated revenue of Rupees 2601.2 million reflecting robust growth across key segments. This performance was driven by continued traction in the two wheeler and passenger vehicles along with strong export growth during the quarter.<\/p>\n

The company also delivered its highest ever bat of rupees 488.7 million supported by an improved product mix, increasing export contribution and a continued focus on operational efficiency. As you are aware, during the year SEIS entered into a technology license comes supply agreement with DOE Varitronics, a Hong Kong based company for optical bonding and assembly of automotive display systems in India. This marks an important step in expanding our capability into advanced display solutions. Such strategic partnerships further strengthen our technology base and enhance our ability to meet the evolving aesthetic and functional requirements of global OEMs.<\/p>\n

With a sustained financial strength and a strong cash flow generation, SGIS remains committed to delivering long term shareholder value. The company continues to maintain a robust net cash position enabling it to fund ongoing capital expenditure, strategic initiatives and the potential inorganic opportunities. Reflecting this performance, the Company has declared a final dividend of 35% of the face value of its shares. Furthermore, I would like to announce that our Board of Directors have appointed Mr.<\/p>\n

Randing Singh Kalsi as an independent Director of the company. In the end, looking ahead, we remain focused on innovation and leveraging our in house design and R and D capabilities to develop differentiated products. With a strong pipeline of next generation products, deeper engagement with OEMs and an expanding export presence, SGIS is well positioned to continue to outperforming the industry. With that, I would now like to hand over the call to Sanjay who will take you all through the business and industry highlights for the quarter.<\/p>\n

Thank you. And over to you, Sanjay.<\/p>\n

Sanjay Thapar<\/strong> \u2014 Group CEO & Executive Director<\/em><\/p>\n

Thank you Joe. Good afternoon everybody. We are pleased to conclude FY26 on a strong note, marking yet another quarter of consistent execution across both operational and financial parameters. The strategic priorities undertaken during the year including product premiumization, expansion of key customer relationships and investments in technology have translated into sustained growth and margin improvement for us. We remain confident that these initiatives will continue to support our performance in the coming periods as well.<\/p>\n

Let me now highlight some key updates in Q4 of FY26 SGIs delivered itself highest ever quarterly revenue of 2601.2 million rupees registering a growth of 29.7% year on year. This performance was driven by strong growth across both two wheeler and passenger vehicle segments which combined grew by 41% YY, significantly outperforming the underlying automotive industry growth of 18.9%. The company delivered strong margin performance during the quarter with ebitda growing by 53% YoY to 807.6 million rupees resulting in an EBITDA margin of 30.3%.<\/p>\n

This reflects improved operating leverage, a better product mix and a higher export contribution. We reported our highest ever quarterly path of 488.7 million rupees representing a growth of 44.9% year on year with margins improving to 18.8%. The company generated strong cash flows during this quarter resulting in a healthy net cash position. During the quarter. The company declared a final dividend payout of 35% of face value of our share. ICRA upgraded SGS long term credit rating to AA minus positive from AA minus stable reflecting improved financial strength and stability aligned with our long term growth strategy.<\/p>\n

SGS has made steady progress on its capacity expansion initiatives. The chrome plating facility at SGS Decoplast is currently under final stages of commissioning. The optical display facility at Hosur is ready to with equipments ordered and capacity expansion at the Bangalore unit is progressing well to support new business opportunities. These investments are aimed at strengthening our capabilities and enhancing our ability to scale across segments. For the full year. FY26 SGS reported consolidated revenues of 9,550.7 million rupees representing a growth of 25.6% year on year, significantly outperforming the automotive industry.<\/p>\n

Two wheeler plus passenger vehicle industry growth of 11.4% year on year. EBITDA stood at 2,879.6 million rupees up 41.7% year on year while PAT grew by 44.6% to rupees17.18 million. This performance underscores our ability to scale profitably while maintaining strong cost discipline. I am pleased to share that since FY21 pre IPO SJS has delivered robust growth, achieving a 5 year CAGR of approximately 30% across revenue, EBITDA and PAT. During this quarter we continue to strengthen a position with leading OEMs supported by multiple new business wins across key customers including Mahindra, Suzuki, Whirlpool, Bajaj Auto, Attenberg, John Deere amongst others.<\/p>\n

Furthermore, during the year FY26 we added Hero, Motocop, Autoliv USA, SCA USA, Orofol USA for Nissan, Yazaki river and many other customers. Exports remain a key pillar for our growth strategy. In Q4 exports grew by 74.6% year on year to rupees 255.5 billion for FY26 export reached their highest ever level supported by deeper penetration in existing geographies and expansion into new markets. We are strengthening our presence across key regions including asean, Europe, North America while also enhancing our on ground sales capabilities in Turkey, Brazil, Argentina, Colombia, South Korea and more recently added Germany.<\/p>\n

This focused approach is expected to further scale up our export contribution and unlock new global opportunities. Free cash flow to the firm stood at 1426.6 million rupees with a further improvement in our net cash position reflecting a strong balance sheet. This financial strength provides us with the flexibility to fund capacity expansion, invest in new technologies and pursue organic and inorganic growth opportunities. During the year, SGS continued to receive recognition for operational excellence and innovation.<\/p>\n

We were ranked among the top 30 mid size India’s best workplaces in manufacturing in 2026, marking our sixth consecutive year of recognition by Great Place to Work. Additionally, the company received multiple accolades at ACMA Excellence Awards for New Product Design and Development along with recognition for quality performance and financial management. Mahindra Naradi, a group cfo, has been honored with the CFO of the Year Award and the CFO impact award in 2026, a testament to the Company’s strong financial discipline and strategic excellence.<\/p>\n

In line with our commitment to ESG and community development, we continue to drive meaningful impact through focused CSR initiatives. During the year, we supported programs such as providing meals to those in need across various locations through let’s Feed the Needy Trust. We also contributed to community safety initiatives by funding surveillance infrastructure along Kanpura Road and extended support for critical healthcare programs. Furthermore, we partnered with Varcha Seva Trust to empower approximately 380 women in Pune and Bangalore through skill development programs.<\/p>\n

We also supported the Rotary Club of Coimbatore Metropolis Trust for Project Hope After Fire, which provides treatment for burn injuries to underprivileged patients across India. In addition, we conducted tree plantation drive planting close to 2,750 trees at Gwaribidanur near Bangalore. These initiatives reflect our continued commitment to building stronger communities, empowering the underserved populations and contribution to inclusive and sustainable development. Looking ahead FY26 has been a milestone year for SGS marked by strong growth, improved margins and and strategic progress across many key initiatives.<\/p>\n

We remain focused on premiumization, expanding our global presence and strengthening customer relationships which will continue which will help us continue outperforming the industry growth in the coming years as well. I would now like to hand over the call to Mahindra, our group cfo, to provide a detailed overview on our financial performance. Over to you Mahindra.<\/p>\n

Mahendra Naredi<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Thank you Mr. Thabar. Good afternoon everyone. Slides 14 to 17 cover our consolidated financials. Let me walk you through the key highlights. Quarter four FY26 was our strongest quarter on every metric. Revenue came in at rupees 2,601.2 million up 29.7% yy, driven by strong traction in our automotive segments and continued export momentum. What stands out is the quality of this growth. EBITDA grew 53% to Rs 807.6 million with margin expanding 424 bps 0.2 3.3% a result of three deliberate labors, a richer product mix, higher export contribution and operational efficiencies across our manufacturing footprint.<\/p>\n

Pad for the quarter was rupees 488.7 million up 44.9% at a margin of 18.8%. This was further supported by our continued focus on reducing interest costs through efficient treasury management, moving to return ratios which we track closely as a measure of capital efficiency. ROE for FY26 stood at 19.5%, an improvement of 226 basis points. YY and ROCE expanded sharply to 35.5% from 25.3%, a jump of close to 1014 basis points. These are best in class number for our space and they reflect profitable growth, margin expansion and disciplined capital deployment.<\/p>\n

Working in tandem coming to the balance sheet, we generated free cash flow of rupees 1426.6 million during FY26 with cash flow from operations at 77.7% of EBITDA. We closed the year With a net cash position of Rupees 2,437.1 million against just Rupees 77 million of total debt. Our capital allocation framework rests on three priorities. Funding committed organic Capex, retaining dry powder for value, accretive acquisitions and progressively rewarding shareholders. Reflecting this, the Board has recommended a final dividend of rupees 3.5 rupees per share or 35% of face value.<\/p>\n

A quick word on the revenue mix. New generation products now contribute around 24% of consolidated revenue validating our premiumization strategies for FY26. Segment wise 2 Wheeler contributed 38.3%, passenger vehicle 41.7% and consumer others around 20%. A well balanced diversified mix. On export, FY26 was a record year at Rs. 911.4 million witnessing 60.5% YY growth. I would reiterate that since both SDPL and Volterback are predominantly domestic, the consolidated export percentage understate the export intensity of standalone sjf.<\/p>\n

Finally, the ICRA rating upgrade to AA Minus with positive outlook is an important external validation of our financial discipline and supports our ability to fund growth at competitive cost. Now to summarize Strong top line expanded margins, healthy cash generation, best in class return at 19.5% ROE and 35.5% ROCE, a robust net cash position and a disciplined capital allocation framework. We enter FY27 from a position of financial strength. With that, I would like to hand the call back to Mr. Thabber to discuss our future plans and growth outlook.<\/p>\n

Thank you.<\/p>\n

Sanjay Thapar<\/strong> \u2014 Group CEO & Executive Director<\/em><\/p>\n

Thank you Mahendra. Let me now share our outlook for future growth. We remain focused on sustaining our growth momentum supported by strong financial performance, disciplined execution and a clearly defined strategic roadmap. Our net cash position and consistent cash flow generation provide us with the flexibility to fund ongoing and planned capital expenditure. These investments will further strengthen our manufacturing capabilities and enhance our readiness to meet increasing customer demand. A key priority for us continues to be expansion of our export business.<\/p>\n

We are working towards increasing share of exports in our consolidated revenue to 14 to 15% by FY28 driven by deeper penetration in existing markets, entry into new geographies and the addition of new customers. Our recent traction with global OEMs and steady growth in export revenues provide confidence in our ability to achieve this objective. Innovation remains a key focus area for us. We are expanding our capabilities in advanced aesthetic and functional products including optical cover, glass and automotive display systems while also developing next generation technology such as in mold electronics, illuminated logos and integrated solutions.<\/p>\n

These initiatives are aimed at enhancing content for vehicles, improving realizations and strengthening our position as a comprehensive aesthetics partner for our customers. Premiumization continues to be central to our strategy as we move up the value chain through differentiated technology driven offerings. By leveraging strong customer relationships and expansion across both automotive and consumer segments, we aim to further enhance our product value and sustain a track record of outperforming the industry.<\/p>\n

Based on our current strong performance, execution, visibility and the current order book being over 85% of the FY27 forecasted revenue, we expect to outperform underlying industry growth by 1.5x to 2x in FY27. With a diversified customer base, strong order visibility, expanded capacity and a focus on execution, SGS is well positioned to sustain its growth trajectory. We remain committed to delivering consistent performance, strengthening our market position and creating long term value for all our stakeholders.<\/p>\n

With that, I conclude my remarks. Thank you and now we are open to questions.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question and to restrict to two questions at a time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Pritesh Sheda from Lucky Investments.<\/p>\n

Please go ahead.<\/p>\n

Pritesh Chheda<\/strong><\/p>\n

Thank you for the opportunity. Sir, I have two questions. One from your slide where you have mentioned two wheeler rowing at Forex, the industry growth rate and Pascal going at 3x the industry growth rate for you, is it possible to split or give some flavor on what would be the market share led growth in that and what would be the content led growth in that? That’s question number one.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah. So you want me to answer? You want to complete your second question<\/p>\n

Pritesh Chheda<\/strong><\/p>\n

Whichever way. Okay, so my second question is<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Now this growth is led by winning businesses. Of course there are new customers that we’ve added to our sales, new products have been added. Higher value added products to all of the above led to this outperformance in the two wheeler space. So we’ve outperformed that. I understand<\/p>\n

Pritesh Chheda<\/strong><\/p>\n

The qualitative comment. From a quantitative side, is it possible to give some color whether you know 30% is content led and 30% is market share led in that, you know,<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

We traditionally don’t give you that breakup because it’s a complex mix. We supply to almost all the customers and we supply different products. So in some Cases it is increased content, in some cases it is increasing our sales to new models that have come where our share of business is 100% or has increased. So it’s difficult to split it up because of the sheer variety of the products that we serve and the customers we serve.<\/p>\n

Pritesh Chheda<\/strong><\/p>\n

Okay, no problem. My second question is on the capacities and the utilization across the three businesses or entities. SJS Deco plus and Volta Pack. So these three place exoplast. Sorry. So at these three places FY26 utilizations and and incremental capacity expansions in these three areas to support the growth.<\/p>\n

K.A. Joseph<\/strong><\/p>\n

Yeah Pritesh<\/p>\n

Mahendra Naredi<\/strong><\/p>\n

On the capacity side our SGS the Bangalore facility with the improved revenue what we have in FY26 we are now reached around 75% of our capacity. We have further expanding our capacity here. We in our last call also we have guided that we are investing 45 crore rupees into the SJS Bangalore facility which will give us another 20% kind of a capacity expansion. So that is one our subsidiary STPL SGS Depot Plast we call which is the chrome and venting facility they are operating 95% plus kind of a capacity utilization and we are working with couple of outshores suppliers.<\/p>\n

At the same time we have expanding our capex. We are setting a Greenfield project for 100 crore rupees which is. Which is. Mr. Thapar said it is on final commissioning level so that will give a additional almost double the capacity what we have as of now. Now third is Volter pack Voltair pack. We are operating somewhere 75% kind of a capacity. So I hope this answer your question.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you very much. Thank<\/p>\n

Operator<\/strong><\/p>\n

You. Next question is from the line of Hitesh Goel from Origin Capital. Please go ahead.<\/p>\n

Hitesh Goel<\/strong><\/p>\n

Yeah, thanks for taking my question. My first question is on if you look at exotech there’s a Q and Q substantial increase in revenue without the new plant coming in. And we see a similar increase in the four wheeler Q& Q revenue. So is it a new program which is ramped up with the customer?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

No. So we continue winning businesses across all our customers. And luckily for us the customers that we serve continue to grow very strongly. One marquee customer that we have has shown very good traction. You can guess what this customer is and our efforts to sweat our assets. So we have a very keen eye on how to eliminate waste and improve throughput in our plants. And that has led to this very strong growth at SCPL<\/p>\n

Hitesh Goel<\/strong><\/p>\n

And similarly WPI we have seen world wide decline. Right. So despite Tata Motors being one of the key client there, they have done well. But consumer durable, there has been impact. So can you tell us how is that progressing? What steps are you taking for WPI to return to growth?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

We took a strategic decision to rationalize the product mix at WPI and that happened to be a consumer durable company. We shed some weight in terms of products that were not contributing enough margin and we have now one businesses which are at a much higher business from the same customer. So it’s just rationalizing of the product mix. This new business is in the ramp up phase. So you will see the fruits of that. We are very focused on profitable growth and focusing our efforts and our capacities to product which yield the larger margins.<\/p>\n

So it has worked out very well for us. And with Walter Pack, you see that impact coming through in the next couple of quarters.<\/p>\n

Hitesh Goel<\/strong><\/p>\n

Okay, my final question,<\/p>\n

Operator<\/strong><\/p>\n

I request you to join back the queue please as we are participating. Thank you. Next question is from the line of Pranay Roop Chatterjee from Berman Capital. Please go ahead.<\/p>\n

Pranay Roop Chatterjee<\/strong><\/p>\n

Hi, am I audible, sir?<\/p>\n

K.A. Joseph<\/strong><\/p>\n

Yes, absolutely.<\/p>\n

Pranay Roop Chatterjee<\/strong><\/p>\n

Good afternoon, sir. My first question is on the general macro, both from the demand side and the supply side. If you can just give a, give some color overall on the demand side, the channel checks that we do suggest that and I would like your comments that underlying demand is still there. Some of the fears people were having that you know, this fuel inflation and whatnot might have an impact on demand. But bookings seem to be at a dealer level still going strong. So I would love to hear what is happening at your end.<\/p>\n

And also what I’m hearing is the constraint really as of right now is supply where because of certain specific products with supplies, ancillary products which are in short supply, the production may get impacted or is getting impacted. So that could be the constraint. So if you could just give an overall color. How should we expect, you know, business at your end to progress in the incremental next few months given the volatility?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Okay. FY26 was a record year for the automotive industry both for two wheelers and four wheelers. So we came back for many years. We used to say that 1718 was the best golden period for two wheeler sales. So we shot past that. Four wheeler sales went up thanks in a large measure to the GST rationalization and improved rationalization of the free cash available with customers to do discretionary purchases. And as we talk of April, we just finished April and April also has been a very strong month.<\/p>\n

So the outlook continues to be extremely bullish. On a global view. We still have challenges of multiple wars going on. We don’t know which way they will go. But overall what all these wars have taught us if we look back is that business continues. There are some short term hiccups that do come but I think finally sense prevails and business comes back to normal. So what we are hearing from customers at this moment is all of them are gearing up for high growth and we are accordingly gearing up and I think we are right in line with our capacity expansion plans to benefit from this growth.<\/p>\n

So our outlook is bullish. We are excited about the future. We’ve come back from a very strong come out of a strong finished last year on a very, very strong note, expanding both our sales and margins quite significantly and we expect this trend to continue.<\/p>\n

Pranay Roop Chatterjee<\/strong><\/p>\n

Got it sir. Thanks for that. So my second question is on margins. So whatever inflation related pressures we would have had, my question is not on the quantum. My question is rather on whenever that comes in. Some part would have come in this quarter, some part would come in next quarter. But whatever the impact is, how is the progress on passing those on? Do you think it’s a comfortable pass through or there is some pushback or how is that working out?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So if you study the financial profile of SGS over so many years we are leading the pack in terms of what margins we get thanks to our very strong focus on products that are differentiated on great focus on how to reduce cost and reduce waste in our process and that is what has led to market margin expansion. So we continue to drive that theme forward. Now the input cost increase for example, crude oil increasing, a lot of these are impacting polymer prices. But as you may be aware at sgs, these are aesthetic decorative products.<\/p>\n

They get refreshed every year and the new prices get priced in automatically. So that’s an advantage that we have from the industry we operate in. In addition to that there are some businesses like chrome plating where there are input cost increases and we have a back to back arrangement with customers that they get passed on. So typically it is a lag of a quarter before they get priced in. So. So we don’t have a concern really in terms of input cost increasing. We’ve been, we’ve demonstrated this over the years through the pandemic.<\/p>\n

So I’m quite confident that we’ll navigate this situation also pretty well.<\/p>\n

Pranay Roop Chatterjee<\/strong><\/p>\n

Thank you. I request<\/p>\n

Operator<\/strong><\/p>\n

You to join back the queue please as we have participants waiting for their turn. Thank you. Next question is from the line of Ganesh Ram from Unified Capital. Please go ahead<\/p>\n

Ganeshram Rajagopalan<\/strong><\/p>\n

Thank you for taking my question and congratulations on the performance. I just have two questions. The first is on the growth outlook with BOU Electronics. Obviously you signed this agreement. Ganeshna,<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt. Can you use your handset mode please? Your audio is not very clear.<\/p>\n

Ganeshram Rajagopalan<\/strong><\/p>\n

Yeah, it should be better now. So my question wrote was with regards to BOE Veritron X, if you could give us a sense as to what is the opportunity size that you have over here, what sort of timelines you’re thinking about and what’s the capex outlier thinking about some granularity around this so we can work with it. And similarly on the growth, if you could give us an idea, there’s a bunch of new countries that you’ve mentioned. Is this going to be a build out of sgs? Are you going to deploy your own people there or you approaching through partners and what are your expectations there?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Okay. On boe. So BOE is a world leader in terms of display technologies. They have multiple products and I think we have selected and partnered with a very very strong global company operating out of China because the Chinese market is the largest four wheeler market in the world. And if a company is a leader not just in China but across the world then you can be sure that in terms of quality of their offerings and the processes that they follow and the supply base they have, which supply chain components into their fold display are best in class.<\/p>\n

So coming back, BOE is a great company, the world number one and we have partnered with them. So that is a very, very strong statement to make. Now as far as the progress on our project goes, we have a plant which we announced earlier. Our plant is ready. This is a facility in Hosur that we have. The plant as I said is ready, the equipment is on order and we will expect that by Q2 we will have the machines coming in and then there will be a phase of trials. What I have said in my earlier calls also is that we expect supplies to start by early FY27 and could be earlier but this early FY28.<\/p>\n

Sorry, my mistake. End of the 27 early FY28 is when we hope supplies to start people. Currently our teams are interacting with the BOE plant to get trained on what these processes are. So it is progressing well. So we will have a common agenda to demonstrate capabilities to customers in India of how we can bring this technology into India and supply to them in a in a good manner which meets the quality cost expectations. So it’s going well.<\/p>\n

Ganeshram Rajagopalan<\/strong><\/p>\n

And just to follow up on this<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Sorry,<\/p>\n

Ganeshram Rajagopalan<\/strong><\/p>\n

Just a follow up on this is if you could give us a sense, have you spoken to any potential customers about this? And essentially in this optical glass portion, what part will be helping us with?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

No. So the optical glass, the display consists of three components. One is the COVID glass, the other is the TFT screen and then there is a backlight and these are optically bonded. So we are setting up capabilities to do all of these at the facility and this is what our offering is going to be. We have strong printing capability in SES for almost four decades now. So we know that business very well. We know the aesthetic requirements of customers very well because we’ve been supplying dials to global companies out of SGS for many, many years now.<\/p>\n

So I think we are the right partner to be able to deliver this to our customers. So that is the aim that we have.<\/p>\n

Ganeshram Rajagopalan<\/strong><\/p>\n

Okay, thank you.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Thank<\/p>\n

Operator<\/strong><\/p>\n

You. Next question is from the line of Rakesh Jain from Access amc. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Hi Sanjay sir and team. Another impressive quarter. Congratulations. I have one question on your premiumization strategy, sir. How do you think, you know, this strategy helps in content per vehicle? When we see the model mix of all the OEMs, a lot more focus on electric vehicles, larger size vehicles, more premium SUVs. How does that particular thing shapes up in terms of content per vehicle for us? Because we do see that, you know, some of the OEMs are showcasing your, your product related aspects as a marketing tool also in some of their models, you know.<\/p>\n

So how are we largely benefiting from that in terms of content per vehicle? If directionally you can throw. And the second question is, you know, you did call out in the PPT that 24% of your product revenues now, new generation products, from a management standpoint of view, what kind of target are you keeping for next year from new generation products?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So thank you, Rakesh. Yes, our focus is on premiumization. We try and understand the requirement of the customer. We have Styling Studio which engages very early in the development phase with customers. So we have enriched margins by providing different features and different finishes on the existing product that the customers have. And of course a big strategic move that we’ve made is that electronics, especially the display area is going to see a lot of action. So my personal sense is that the content in the vehicle in the future is going to be driven by what appeals to a customer sitting inside the vehicle.<\/p>\n

So there could be iml, IMD parts, IME applications. They are chrome finishes or painting finishes. Chrome finishes in different types of chrome. So for a very Large customer, launching a lot of EVs we’ve added very premium, premium finishes which are very well accepted. We have done illuminated logos. So we do that for one customer and the other customers see it because it’s a customer demand and they start accepting it. So we’ve done this for with Tata, we’ve done this with Mahindra Maruti. Suzuki is wanting solutions in a similar manner because what appeals to the final car buyer is what the Williams manufacturer listen to the voice of the customer.<\/p>\n

And we have consistently ensured that we are not only able to give them ideas, we are also able to translate that into new products with a very short turnaround time. So I think we tick all those boxes and coming to the mother of all the innovations or the new products from our portfolio. When you talk of the content from 24% where it is likely to go. So I am quite bullish on the display technologies that we will bring to the table. So think like this that cars not only will have an infotainment or instrument cluster display, they would have displays for the rear view mirror, they would have displays which are rear seat entertainment, they would have displays which have specific features inside the cabin for the entertainment of the co driver and security.<\/p>\n

And a lot of these are going to see you go to see. So over the next five years my expectation that this 24% would grow up to maybe 30% of our revenues. Of course the idea is that how does, how well do the OEMs ramp up in terms of translating customer expectations into real product offerings. But we see a very strong traction and a lot of people are now looking at introducing these at different price points. So it could be anywhere between 25 to 30% over the next five years. That’s what my expectations premium products share of yes, thank you.<\/p>\n

Thank<\/p>\n

Operator<\/strong><\/p>\n

You. Next question is from the line of Nilesh Jain from Astute Investment Management. Please go ahead.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Hi. Thank you for the opportunity. My first question is given you have been generating good amount of free cash flow, are we actively looking for any inorganic acquisitions? And if yes, it would be for the geography we are looking at.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah, absolutely. So inorganic growth is a very strong pillar of our strategy moving forward. We’ve done two acquisitions in the last four years and as I’ve said in my earlier calls, we are generating a lot of cash. So we have close to about 243 crores in our books now available for deployment, for expansion projects and for new acquisitions. And we’ll generate free cash in this year as well. So we are looking at targets. We already have a few in mind which we are in discussions with. So as and when we conclude, I will of course announce to the market in terms of geographies of interest.<\/p>\n

So as I maintained earlier, North America is a target, Southeast Asia is a target, India as well is a target. Because there are. This is a fragmented business and it could simply be consolidation where we could bring our own efficiencies and efficiencies of scale to play out. So it would depend on what target do we zero in on in terms of what meets our strategic requirement in terms of the cost of acquisition and how can we add value to it. As I maintained earlier, these will be bite size acquisitions.<\/p>\n

We don’t. We are intrinsically a company that does not believe in taking a lot of debt on our books. So we are largely debt free and we wanted to continue maintain this. But if we get some exciting opportunity, we are not averse to taking debt. But typically it would be companies that add strategic value to us and where we feel that we can contribute to increase margins. So margin growth is a very key or central to, to our overall philosophy as a company and we’ll continue to focus on that.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Thank you for that. Second question is, given you’ve been operating at the highest margins for now, do you think there’s further scope of margin expansion or even this margin should be sustainable?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Nilesh, Our focus really is, to be honest, our benchmark is more than 25% margin is what we focus on. So we of course don’t rest at 25. As you’ve seen with our results, 29.6% margin is a result of that focus that we have. But in the long term I think that 27, 28% sort of margins with a high growth trajectory is what you should expect from ses.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Thank you. Thank you. All the best.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Next question is from the line of Pratik Giri from Shub Lab Research. Please go ahead.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Hi everyone. Greetings. Good set again, robust operating cash flow. Mr. Thar, if I’m catching it right earlier, our initial presentation used to guide for a 2 to 2.5x growth. Sorry, volume.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Sorry, could you repeat that question? I missed.<\/p>\n

Operator<\/strong><\/p>\n

Can you use your handset mode please?<\/p>\n

Prateek Giri<\/strong><\/p>\n

Yes. Is it better now?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yes.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Yeah. So Mr. Thapar, if I’m catching it right earlier, our investor presentation used to guide for a 2 to 2.5x growth. But this quarter PPT saves 1.5 to 2x growth. So in an environment where auto is doing really well and we are also coming up with new capacities, should I look at this as a guidance down division or am I over reading it?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

No, no. So you clearly you are overheading it. So we continue to outperform the market, specifically the guidance last year I said because we added Hero as a customer. So I said that we will outgrow the market or outperform the market by 2.5x last year. But overall we’ve been saying our content increase will be far higher than the increase in the volume of vehicles that are made. So we will continue to outperform. That we’ve done for 26 quarters that we’ve reported to you. So that outperformances will continue.<\/p>\n

And always we’ve been guiding 1.5x to 2x because we don’t want to give a specific guidance which could. I mean this is a direction that I’m giving. But ultimately our interest is to outperform the market. So it depends on the how the year pans out in terms of the macroeconomic challenges that there are. But overall it is going to be 1.5x to 2x which is consistent with what we’ve said. So 2.5x last year was specific because we had won some very large export businesses and we got Hero on board as a customer.<\/p>\n

So that was what I mentioned last year.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Got it. No, this is, this is helpful, Mr. Kap. Mr. Thaber, my second question is on our export target. I just wanted to get your opinion if we have set a target which is quite softer because given the kind of market size globally 14, 15% FY28 exports revenue contribution, do you think this is a little soft target we have been setting for ourselves and can we increase it going ahead? Just one add on to this question. We don’t have any global office so far. We have offices only in India. So I was just wondering if that can be a route we can explore to capture that market faster.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah, so. Okay, let me answer that, Pratik. Basically what we have on our there is a very large global set available. As you know, we are the reason why we are building capacity across plants is primarily to tap into that. So we have very strong inquiries. There’s a lot of interest from customers. We’ve proven ourselves in terms of being competitive globally. And that is a theme that we’ll continue to drive. But we choose to do it in a step by step manner. There could be an inorganic acquisition that suddenly not only gives us an office in an overseas location, could give us a company there.<\/p>\n

So we are well aware of that and we are balancing what we need to do to make sure that we continue our growth trajectory. So we grew by 25% last year. We hope to continue that growth trajectory and to grow. Looking at extra export markets is critical because we already are today supplying to all the customers in India and there’ll be a certain rate of growth in the Indian market. But the export market for us is under penetrated. So we’ve proven our credentials in terms of quality, cost and delivery and we are now have built capacity or we have invested in capacity and certainly we want to utilize that to grow for the short term.<\/p>\n

Just setting up an office is additional cost. So we have a lot of reps in multiple countries who operate from their home. We choose. We feel that this is a model that works for us at the moment. But when we have a very large opportunity set in a specific region, we certainly are open to look at setting up an office or a warehouse. We already have warehouses in North America. Asean for example is one area that we could look at, at setting up our own office and a warehouse to be able to benefit from proximity to the customer.<\/p>\n

So on a need based basis, wherever the opportunity exists, we’ll take that call.<\/p>\n

Prateek Giri<\/strong><\/p>\n

So there is an upside potential to this target we have set for ourselves. Mr. Gabar, is that understanding correct?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah. So for the. I mean we increased our overall exports by 2% last year. On a consolidated basis we have a very strong pipeline. So I will continue to stay at that guideline that we’ve given. Once we reach that, of course this is a moving target. It’s not that this cast in stone. So Ideally it’s a 4 billion market. So the opportunity set is so huge that I can’t even try to explain to you. But as a strategy we find that export businesses give us more margin and that is one reason why our margins are expanding.<\/p>\n

So we will continue to drive that as fast as we can by balancing everything. So it’s not just the customer. The capacity has to be in line. Because when export customer gives you business then he expects that you have already all the capacities in place. So you can’t do the reverse that get a business and then say that we’ll set up capacity. So you would have seen in the last two years we built our capacity. So this is a synchronized approach to target the export potential that there is, which we know is more value creative for us as a company.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Thank you. I request you to join back the queue<\/p>\n

Operator<\/strong><\/p>\n

Please. We have participants waiting for their turn. Thank you. Next question is from the line of Sahil Sanghvi from Monarch Net Worth Capital Please go ahead.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

Yeah, hi, good afternoon. Congratulations for a very good set of farmers. My first question is on the consumer side our performance has been not the best. So if you can help us understand what’s happening over here and how do you see this performing over the next one year?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So consumer fundamentally, I mean we have everything that we need to grow the consumer business. As I mentioned to an earlier question, there was a product rationalization that we did. We found that we are spending a lot of resources not earning enough money on a very large program. So we chose to surrender that and alternately get another program that I said is we have one which is in the ramp up phase. So over the next two quarters you will see that benefit happening. Also for the quarter there was some amount of global uncertainty opportunity that happened.<\/p>\n

So a lot of these orders got Preponed where in Q3 we shipped material just to get over those tariff uncertainty that they were there. Some customers wanted us to ship early. So that is just a normal rationalization that happened in this quarter. But in the next one or two quarters you see that growth trajectory coming back.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

Okay, got it. And my second question is on the, on the CapEx, the absolute number of CapEx that you intend to spend this year and the next and for which expansions would it be? Because some of these capacities, I mean the. The capex spend in FY26 has been lower than what you had guided. So just wanted to understand on that thing.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So Mehdar, could you<\/p>\n

Mahendra Naredi<\/strong><\/p>\n

Answer<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

That?<\/p>\n

Mahendra Naredi<\/strong><\/p>\n

So Sahil, on the CapEx side, last time or last earning goes, we have guided that for a period of three years starting from February 26th. We have some special initiative which is the SGS Bangalore expansion, SDPL chrome plating, Greenfield and we are also investing for the COVID glass and the display Vishnu. So put together there is an investment close to 220 crore rupees. Apart from that we have the normal capex which is around 1520 crore rupees per annum. So on a three year basis we could say 260, 270 crore rupees and out of which 80 crore rupees happened in the last year.<\/p>\n

And the further capex are in progress at this moment. So that will continue for this year and the next year.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Next question is from the line of Jigar Jani from Nuama PCG Research. Please go ahead.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Yeah.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Hi. Thanks. Your<\/p>\n

Operator<\/strong><\/p>\n

Voice is muffled. Can you use your handset mode?<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Is this better?<\/p>\n

Operator<\/strong><\/p>\n

Yes, please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. So congratulations sir on a great set of numbers. Again, just two questions. First Carrying on from the previous participant, the capex at Bangalore was supposed to come online on Q4. So can you just let me know what is the status? Hosur you have already explained in the call. But for Bangalore and Eco plus, when can we expect this capacities to come online and supplies to start? That is my first question and my second question is on your slide. In your presentations you have mentioned a particular slide on kit value where you specified that the future kit value could be 5 to 8x especially for pv’s.<\/p>\n

So by when can you expect this development and what is the time frame that you are looking at for this expansion in kit value? Yeah,<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah, so last question first. So this kit value fundamentally has increased because of our focus on the display business that we have, and I mentioned earlier in the call, early FY20. 28 is when we expect revenues to start coming. So this kit value is the sum total of the individual products that we have to offer in terms of value and what is it that doesn’t mean that we supply this to all the customers, but in our portfolio we have products which total up to watts. So that’s what we said. So by early FY28 we should be that 5 to 8x from what we originally said in our DRSP when we went public.<\/p>\n

So that is the base year from which we compute how many times has our kit value increased. The second question was on capacity. So the new plant at Pune is complete for the chrome plating facility that we’ve added where we are doubling capacity there. And so the plant is just in the final stages of commissioning. There are some trials, etc. That need to be done to validate everything. We are already winning businesses. We are at close to our hit rate in terms of the numbers that we want to reach.<\/p>\n

FY20, as I said, we are sweating assets. We have auxiliary capacity outside at dedicated suppliers who are working for us. So this will continue seamlessly. The new plant, as I said, is being focused primarily to say that what new customers can we add and how what export business can we target out of that plant. So we are well on track. The business development activity is ongoing. We are already in discussions with customers to book that capacity. So it is progressing well. Coming back to Bangalore, we had there were opportunities both for exports and for a major Indian customer that we added.<\/p>\n

So already the equipment has been ordered, it is installed and we are shipping parts out of those. So the capacity is created. There are some additional modifications that we are doing at that plant. So this will be done another by the end of this quarter we will have this plant fully ready. I mean it’s not a new plant. It is an extension of the existing facility. The parent plant that we have at Bangalore. And by the end of this quarter that should be completely ready. But the production expense equipment is already installed.<\/p>\n

So our capacities are already in place.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

According to earlier conference calls, I think 145 crores was the 45 crores was the expansion in Bangalore and 100 crores for the chrome plating plant. 145 crores was supposed to be spent on both these plants. But we have spent only 80 Garods. If I’m not wrong, the CFO just said so majority of this will happen in Q1.<\/p>\n

Mahendra Naredi<\/strong><\/p>\n

So it was ordered and the bank when the work is happened, it happened into there are some milestone to the contractors, right. So the payment flow as per the contract, as per the milestone. And there are some milestone also happen which is kind of a six month or one year later by seeing the no let off parameters. So the work is happening. Don’t go by the numbers of in actual incurs but the work is happening. Administer updated. We are in the last stage of commissioning.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And so the<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Payment terms of course you know, depend on that satisfactory completion, proving of the plant, etc. Etc. So. So that is a commercial deal that we’ve done separately. But as far as the operational capacity goes that I said is in the final stage of commissioning. And for Bangalore the machines of the production equipment is already yielding results in terms of increased revenue. So. So it’s just a matter of releasing those payments to get that accounted for. That’s it<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And understood. So it’s timing difference.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah. Yeah.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you. Thank you so much.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Next question is from the line of Lokesh Manik from Vallum Capital. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yes. Hi. Good afternoon team. Am I audible?<\/p>\n

K.A. Joseph<\/strong><\/p>\n

Yes, you are. Yes,<\/p>\n

Operator<\/strong><\/p>\n

Please go ahead. Great.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Great. So pitching to a new client or you’re sourcing new business. Is there a minimum order value or you know, volume that you look at, you know when targeting new customers or you know, within the existing customers, new programs for that matter.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So our lens to look at any new customer that we onboard is what can it be? So obviously all things start small. It’s not that he’s going to give you 100 crore order when you start pitching for a new business. But it is our judgment call that we say that okay, how many plants does this customer have? What is the reputation he has in the market? Where do we see our contribution being? What is the intensity of Competition. Where do we think we can add value? And then we do a judgment call to say that yes, this is a global customer.<\/p>\n

Just to tell you, a lot of mega accounts that we built, we started very small. So Visteon, it was just one plant in India that we started with and today we are supplying to 10 plants across the world. Whirlpool Corporation, we started with just making overlays for them. We added multiple new products and we are one of the few global supplier that they have that we supply not only to India but all their other plants worldwide as well. A lot of their plants worldwide as well. So the way we look at it is that it is a start.<\/p>\n

But is there promise that we can enter this customer in a big manner not just in India but globally? So if I have a choice between a local Indian customer who has, let’s say a relatively small volume vis a vis a global player who I can supply to not just in India but also across the world, then obviously the first priority will be for the global customer. So those are those basic rules that we follow when we select that which customer to go into. There’s no absolute number to say that whether it should be a 5 crore business or a 10 crore business.<\/p>\n

More important is that in five years can this be a large enough customer to so that we care happy allocating resources to develop products for them.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Understood sir. So my second question is a clarification. What are the programs like you mentioned? Capex programs across three divisions. So which of these are coming online in FY27? And also the Deco class program that is similar to the. That is the plant at Hoshore which has been commissioned. If you can just give this clarification.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So Deco Plast is what was earlier called Exotech for us that is in Ranjangaon, Pune. So we have one chrome plating and painting facility in Pune already. This plant is hardly 2km, 3km away from that plant. And this is a greenfield plant that we set up which will double our capacity for chrome and painting. So that’s the plant that I said is in final stages of commissioning and of course all the billing etc should be done so in FY27. Obviously everything will be settled even for the plant at Una, sorry, Bangalore, that we are expanding the current SES plant.<\/p>\n

All that also will be done in FY27. The Hosur plant is a lease facility where we have close to about 97,000 square feet of the plant is absolutely ready. The equipment is on order. So that investment also should be done within FY27. So all these three initiatives we should complete capex in FY27.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it, got it. Thank you so much, sir.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Next question is from the line of Kush Nahar from Electrum pms. Please go ahead.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Thank you for the opportunity. So, a couple of questions. So first with hero, have we, are we already in discussions for other products since it’s been around nine, ten months since you started the SOPs for them?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yes, we are in discussions<\/p>\n

Prateek Giri<\/strong><\/p>\n

And accordingly we have capacities for that which is the SGS bangno facility, the CapEx that we’re doing, right?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Yeah. We proactively build capacity so that we are, when we pitch for a business, we have all the capability to support that additional business that we. We target.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Right. And so on the display side is just one in one clarification. Over here we’ll be manufacturing the optical glass and then doing the optical bonding for all three of them. Right. Or is it only the bonding part that we’ll do?<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So, so there are. Let me explain that process to you. So there is a optical bonding of the TFT screen with the COVID glass so that cover glass will get bonded. This is phase one. Phase two is we will make the COVID glass ourselves. So that is getting raw glass, machining it, printing it and then even coating it. So there are specialty coatings which are anti reflection, anti glare, anti fingerprint. So we will do all of that and we will bond all these together. And the third is element here is the backlight and it is our ambition to also do the backlight.<\/p>\n

So SGS will be a fully integrated facility for the display in India. Except for the software, we will do all the hardware part for the display.<\/p>\n

Prateek Giri<\/strong><\/p>\n

Right, sir, Just one follow up on that. Are we in discussions already in terms of business development and onboarding customers or is it more sampling? Post the machines only once we get it.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

No, no, no. So we have already in discussions, in very advanced stage of discussions, there are some businesses that we are jointly discussing with boe. So we are very, very hopeful and confident that we will start supplies out of this plant. As I mentioned in early FY28,<\/p>\n

Prateek Giri<\/strong><\/p>\n

40 crores for the plant, right? 40 to 50 crores.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

So we said that the glass is about 40 crores and for the display we added another 25 crores. So roughly ballpark number of 65 crores on that.<\/p>\n

Prateek Giri<\/strong><\/p>\n

All right, thank you.<\/p>\n

Sanjay Thapar<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen. Due to time constraints, we’ll take that as the last question for today. I would now like to hand the conference over to management for closing comments. Over to you, sir.<\/p>\n

Devanshi Dhruva<\/strong><\/p>\n

Hello? Yeah. I would like to thank everyone for joining on the call. I hope we have been able to respond to all your questions adequately. For any further information, we request you to please do get in touch with us. Stay safe, stay healthy. And thank you once again for joining with us. Have a good week. Have a good week.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. On behalf of IIFL Capital Services Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.<\/p>\n

Devanshi Dhruva<\/strong><\/p>\n

Thank you.<\/p>\n","protected":false},"excerpt":{"rendered":"

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon. SJS Enterprises Ltd (NSE: SJS) Q4 2026 Earnings Call dated May. 06, 2026 Corporate Participants: Devanshi Dhruva \u2014 Head of Investor Relations K.A. Joseph \u2014 Managing Director Sanjay Thapar \u2014 Group CEO & Executive Director […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-182406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":135548,"url":"https:\/\/alphastreet.com\/india\/sjs-enterprises-ltd-sjs-q1-fy23-earnings-concall-transcript\/","url_meta":{"origin":182406,"position":0},"title":"SJS Enterprises Ltd (SJS) Q1 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"August 5, 2022","format":false,"excerpt":"SJS Enterprises Ltd (NSE:SJS) Q1 FY23 Earnings Concall dated Aug. 05, 2022 Corporate Participants: Nikhil Kale -- Senior Vice President Devanshi Dhruva -- Investor Relations Sanjay Thapar -- Chief Executive Officer and Executive Director Saumya Moganty -- Vice President, Finance Analysts: Jinesh Gandhi -- Motilal Oswal Financial Services -- Analyst\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":141563,"url":"https:\/\/alphastreet.com\/india\/sjs-enterprises-ltd-sjs-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":182406,"position":1},"title":"SJS Enterprises Ltd (SJS) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 14, 2023","format":false,"excerpt":"SJS Enterprises Ltd (NSE:SJS) Q3 FY23 Earnings Concall dated Feb. 10, 2023. 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