Pricol Limited (PRICOLLTD) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Pre-Call Limited Q1-FI27 Earnings Conference Call. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touchtone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Bhangi Jain from Valoram Advisors for opening remarks. Thank you. Ann, over to you.

Thank you. Good afternoon, everyone, and a warm welcome to you all. My name is Bhangi Jain from Valoram Advisors. We represent the Investor Relations of Precall Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the first quarter of the financial year, 2027. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is probably to educate and bring awareness about the company's fundamental business and financial quarter under review. Now, let me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Vikram Mohan, Chairman and Managing Director, Mr. PM Ganesh, Chief Executive Officer and Executive Director, Ms. Madhura Mohan, Executive Director, Customer Relationship Management and ESG, and Mr. Priya Darsivastia, Chief Financial Officer. Without any delay, I request Mr. Vikram Mohan to start with his opening remarks. Thank you and over to you, sir.

Thank you, Purvangi, for the introductions. On behalf of my colleagues in this conference room, namaste, ladies and gentlemen, and welcome to the Q1 earnings call for the financial year ending 31st March, 2027. On a consolidated basis, our revenue from operations has been about 1,083.58 crores. With an EBITDA of 123.69 crores, with an EBITDA margin of 11.41%, resulting in a profit after tax of 67.02 crores, with a PAC margin of 6.19%, resulting in an EPS of 5 rupees 50 paisa per 1 rupee share. All our performance details have been uploaded, and I hope all of you have had a chance to see this in. Our revenue from operations in comparison to the same quarter for the last financial year has grown by 23.46%, which has been aided by strong industry growth as well as our new product introductions, which has helped. EBITDA has faced some headwinds, as I had already indicated earlier. Our EBITDA on a quarter-on-quarter comparison between the same quarter for FY26 has grown by only 21.42%. We could have grown by a much higher percentage compared to our revenue, but there have been multiple.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may. Participants are requested to use their handsets while asking a question. Participants, in the interest of time and fairness to others, will request you to restrict to one question per participant and rejoin the question queue for follow-up questions. One moment, please. We take the first question from the line of Chandra Mauli Mutaiya from Goldman Sachs. Please go ahead.

Hi, good evening, and thank you for taking my questions. My first question is just around the announced D-Merger.

So I just want to understand the thinking behind proposed D-Merger, and also trying to understand sort of at this stage, I think we have been very

successful in Instrument Clusters, which has been the core business. The combined entity does give us multi-product exposure, but to the demerger now, the co-business again becomes a separate entity with single product exposure, so just trying to understand, thinking behind the decision to demerge the company.

Thank you, Mr. Mathia. This has been something that we have been debating at a board level and at a strategic level for over two years. The nature of our product in our driver information system and connected vehicles business is changing very rapidly. The human-machine interface in the vehicle, be it a two-wheeler or a four-wheeler or a commercial vehicle, The climate control is integrating, the infotainment is integrating, the driver information is integrating, and the technological change is becoming very, very rapid. For Precol to continue to maintain its... And to take on the multinational competition, we will be required to invest large sums of money and also bring on board potential partners in order to help us strengthen this business. When all the businesses are merged in one company, we found it very difficult to attract. The right kind of investors because each of the business has a different sort of an investment appetite. So both to attract investments and because we didn't want to go with extensive balance, we wanted a judicious mix of debt and equity and also to attract certain technological partners that we will be forced to onboard in order to maintain our lead in the business. After multiple discussions at a board level and with strategic advisors, we took this decision to demerge this business, to give it a lot more agility in order to be able to raise money as well as look for partners to keep maintaining the lead in the business. I hope this answers your question, Mr. Thank you very much, and I'll join back to you.

On the line of Shivam Kabra from Carnelian Capital.

In the board, the Nemo's business, how we are expecting the growth rate to be on the three-year basis line. And yes, we are looking for any global partners. Priority also, we had relations with Dengro and Janssen, but that didn't work out well for us. So now what gives us the...

Perhaps to give us larger scale. It's the capital needs of the... Give us the freedom. Thank you. Because of our growth rate, because of the introduction of new products, the first of the LOAs has started coming in and productionized. In the polymer space, the growth is going to be muted, as mentioned by me in the last call, because of lack of capacity, not lack of business. We have won a lot of business for which we are creating capacity, but that will take the next 9-12 months to mature, after which that business also will maintain a very healthy 20% plus growth rate.

Thank you. We take the next question from the line of Jathan Chawla from RTL Investments. Please go ahead.

Hi, good evening, and thanks for the opportunity. Given the RM situation in the quarter, and also given your cautionary stance post the 4Q call, I think you've done a fantastic job in limiting the decline only to 160 bits on gross margins, and with control on other expenses, largely maintain your EBITDA margins. So how were you able to do, you know, maintain the, limit the decline on gross margins to only 160 bits during the quarter? And on both gross margins and EBITDA margins, how do you see the outlook going forward, especially in the context that you mentioned that you will get some price hikes from your customers going forward?

I think we should have done at least another 1.5% to 2% overall margin would have been better because the fixed costs have got amortized on a larger top line base. In fact, the polymer business probably took a bigger impact than the driver information systems business. And with the prices being corrected, at least about 75% of our revenue... Q2, we will get some indexation and the balance will go into Q3 because of the half yearly indexation, which also we are trying to improve. It will help. But the minimum wage cost increase of about approximately 21 crores per annum because of the government regulation, we are still navigating with the customers to see how much we can absorb and how much they are going to absorb. That is a work in progress. So, definitely, we can see improved margins happening in Q2 and Q3, provided the rupee doesn't further weaken, because there are some indications being given when we talk to the market that the rupee could touch three digits against the dollar, and prices could further increase, and crude oil prices also could go back to the night.

The Lion of Creed.

Please go ahead. which you mentioned that if everything stays the same where it is now, what would be our annualized margin level?

Our ideal margin level for normal operations should be, as I always maintain, between 12.5% to 13%, which is the steady state margin, so that we are not losing business, maintaining our share of business, because if we endeavor to increase our margins beyond that, then competition will undercut us. So, 12.5% to 13% margin is what I've always maintained is the blended margin that is right for our company to maintain our share of business. And that's what we are endeavoring to get quarter on quarter. And that's what I said, we have lost about 1.5% margin this quarter.

Thank you. We take the next question from the line of Hitesh Goyal from Origin Capital. Please go ahead. Thanks for taking my question, sir.

Sir, I just wanted to understand if you can give us some sense on the growth in this quarter on a YOY basis in the ACFMS business and DIS separately, and also in a two-wheeler segment within DIS, what was the growth in this quarter? This is my first question.

I will request our CEO and Executive Director Ganesh to answer that question. There are three parts to the question. One, what is the growth of DICVS business for this quarter? What is the growth of the ACFMS business for this quarter? And specifically, what is the growth of two-wheelers for this quarter? So Ganesh will answer that in three parts.

Good evening. The growth of both DACVS and ACFMS has been around 25%. Both of them have equally grown. Because we supply to the same set of customers, both these vertical of products. So the growth has been the same. The second part of the question was, what is the two-wheeler growth? Actually, we have outperformed the industry in terms of the two-wheeler growth. The industry during the first Q1 has grown by about 23 percent, and the pre-call has grown by 28 percent. Primarily because, as our chairman explained, it is because of multiple new product introduction during Q1. And is there any other question which you have not answered?

No, these were the three questions.

Thank you. We take the next question from the line of Sahil Jain from Ashwa, India Holdings. Please go ahead.

Hi, sir. Thanks for taking my question. I just wanted to ask, sir, the Ministry of Code and Transport highways have relaxed the norms on EDS and safety, like bikes and use, so how will this impact our ACF and its business, sir? We are not able to hear you, Mr. Jain. Am I audible now, sir?

Please go ahead.

For the center of the Ministry of Road and Task Force, they have relied on the norms on ABS and CBS, so BICE can now use more of CBS in their system, so I just want to understand, sir, how will that impact our ACS and its business?

As I mentioned in earlier calls, ABS is not something that we are focusing on at this point in time, it is something that is in the future roadmap of the company, so that will not have any material impact for the next two years.

Thank you. We take the next question from the line of Bhavia Vyas from Ants and Bees Investment. Please go ahead. I'm sorry to interrupt you, but your audio is not clear. There's too much of echo sound coming in.

Have I already done this?

Please, go ahead.

Good morning, everyone.

We are just not able to hear you. Your voice, there's a lot of echo, Mr. Vyas.

Mr. Kiyas, what I would request you to do is, please use your hand, sir. Yes, go ahead. Thank you, Mr. Piaz. Since there is no response, we'll move on to the next question, which is from the line of Rajit Agarwal from Nilgiri Advisors. Please go ahead.

My question is related to the capital expenditure that you shared in your last call. Could you give a breakup of the same between the two proposed entities and the timelines, as in how much will be incurred in FI 27 and FI 28?

We have embarked on a 700 crore overall capex cycle across all divisions of the company, not just in the next 12 months, but over the next 18 to 24 months. About 400 crores of this is reserved for the polymer vertical, where we are creating a lot of new capacity to cater to the existing business and also because we have to move out of the TVS campuses in which we had a lock-in period. And about 300 crores is for the other two verticals of the company. Approximately 150 to 180 crores would be for the DICVS vertical and about 120 crores for the ACFMS vertical, broadly speaking.

Question from the line of Shubham Bhattra from Ambit AMC. Please go ahead.

Congratulations on a good set of numbers. Thanks for taking my question. I wanted to ask about how is our business with Honda ramping up, and what kind of wallet share are we looking from them in FY28?

I will request Ms. Madhura Mohan, our executive director, who handles our customer relationships, and especially Honda, to answer that question, please.

Yeah, thank you for the question. Our business with Honda at the moment is quite robust. We've recently won a good share of business from them for our plastics division as well, totaling to a very handsome sum. So our current business at a group level is quite healthy. As I mentioned, we are also exploring new opportunities in both the DICVS and ACFMS verticals, and we see them as one of our strategic growth customers in the upcoming future.

In fact, plastics, we have even put certain business on hold. Honda wanted to give us more business than what we wanted. But because we don't have the capacity, and it's going to take some time to create the capacity, we said we will take it in phases. But Honda is going to be one of our high-value customers and high-growth customers in the next three years.

We take the next question from the line of Naman Gulacha from Nirmal Bank Securities, PMS.

So, my question is related to the cluster business. We are seeing there's a pivot towards the e-cockpits and the premiumized and higher-end vehicles. So, where are we positioning ourselves in this e-cockpit business and do we foresee any orders coming in or potential OEMs that are working with us for this e-cockpit business?

Let me just say, the E-cockpit in a two-wheeler is probably not going to happen, because there's no real estate on a two-wheeler to put an entire E-cockpit. Has Pricol developed an E-cockpit and proved it to the customer? The answer is yes. The absorption of E-cockpit in the Indian overall automotive industry space is going to be very less. It is going to be a very small amount that is happening. We have, sure, But I must admit, And commercial vehicle and off-road vehicles where the adoption of E-Cockpit is.

Next question from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead.

My question is, you know, on the DIS business, which you plan to demerge, You mentioned about the technology tie-up, right? So, could you just help us understand as to, you know, when you think about, you know, increasing the value add in this segment or moving into passenger vehicles as well, what is it that we can do in-house and where is it where we will require the technology partnership, right? And when I think about some of the technology leaders, they have tie-up of some sort, you know, in India with some of the other players. So are there very few technology partnerships which are left for us to, you know, to be, you know, taken into consideration? Is that how the industry is? So just some sense on, you know, the limitation of technology partnership and what can we do in-house and what will require technology partnership for us to, you know, go ahead with.

I think that's many questions rolled into one, Mr. Nandu, but for the benefit of the larger audience, let me answer that. As I mentioned earlier, not just on this call, but in many earlier calls, the human-machine interface in a vehicle where the driver or the passenger is talking to the vehicle or reading information from the vehicle is not just restricted to... Speed or fuel level or indication. It is also integrating the infotainment, which is becoming a very important part. And controlling the air conditioning is also becoming a very important part. This is where we will perhaps go for some technology partnerships or technology tie-ups. Because for us to do a grounds-up development will take many years. It is not impossible, but it is going to take us many years and we may miss the bus. That's point number one. Point number two is, today, pre-call has a disadvantage in we have only primarily India and Indonesia-based management. I'm being zoned. Honda has now started talking to us for not just business. We have no product and supply to the geography without us having to invest in those. The approach that we are looking at, one, for technology. And for one, for ensuring that our share of business with our critical customers are being maintained. See, because one thing, Indian two-wheeler industry probably has reached the highest level of maturity in the world. Many other parts of the world are now Indian technology, what has been developed on a Honda two-wheeler in India, or a Suzuki two-wheeler in India, or a TVS, or a Bajaj, or a Hero, whatever it may be. It is now percolating to the other countries in the world. And since we want to maintain our leadership position in two-wheelers globally, it is important for us to have certain local partners in certain geographies in order to be maintaining our market share. Right? And so one is on the technology side and one is to cater to certain markets and geographies where we don't have geographical manufacturing.

Thank you. We take the next question from the line of Kretan Arora from Stallion Asset. Please go ahead.

Thank you for the opportunity. I just wanted to know what sort of value addition in terms of product portfolio are we planning to do in the precision product division? And also, what would be the ROC of the AC SMS segment for the company?

Because the precision products, or rather the polymer division, but we have also now developed some high-technology products. We have done some segment, especially now for the new Tata, Tiago. We have done some very interesting products and saved money for the customer also. We are moving up the value chain. But having said that, we are setting up a center of excellence in polymer technology as we speak, which will completely become operational by May of 2027. But having said that, we have already started investing in product development, new product thing. We have invested in 2K molding, which is one of the first. We are now going for self-healing plastics. This is a very interesting technology where a painted part or a polymer part, if there is a scratch, you don't need to go for painting. Just by application of heat, it will self-heal and the scratch will go away. We are also looking at fiber-reinforced plastics. Which will replace metals and give almost the rigidity and the flexibility of a metal part in order to light weight. So these are some of the things that we are looking at. The ROCE for that business will remain muted because we are going through a very heavy investment cycle for the center of excellence. We are backward integrating by building our own tool room which didn't exist, which is giving us advantages in acquiring customers, especially like Honda, Yamaha, Royal Enfield, etc. And also, we are putting up new plants. We have a state-of-the-art plant coming up in Huzur. We have a plant that is getting commissioned in Mysore. We have a plant that is Greenfield that is getting commissioned in Orangabad. We have a plant that is getting commissioned in Gujarat in Sanand for Honda. We have a plant that is just starting construction in Bivadi in the NCR region to cater to the northern customers. Because of this heavy investment cycle, ROCE will drop and then get back to a steady state of between 16 and 18%.

We take the next question from the line of Malik Itindra Singh Chaudhary from Monarch Network Capital Limited. Please go ahead.

Thank you for giving me the opportunity. I just wanted to know the revenue contribution of all the free business verticals and any update on adding a new customer in the PV side.

On the PV side, we have now engaged with... Customer acquisition has been very robust in the polymer business because earlier that business was owned by the TVS group, and so the other two-wheeler customers, the market was not open to us. So we have now acquired quite a few two-wheeler customers in the polymer business. We have acquired business from Arthur. We have acquired business from River. We have acquired business from Simple Energy. We have acquired business from Rakti. We have acquired business from Honda. We have acquired business from Royal Enfield. We are just on the final stages of acquiring business from Yamaha. A few other customers we are also talking to, but it has to be profitable, so we are only going after profitable business. For the Switches business, which was the recently launched business, we have acquired our first business from Suzuki and engaging with a few other two-wheeler makers. I will request on our ACFMS vertical some of the new businesses that we are in negotiation and inquiring. I will request our head of customer relationship management, our director Madhura, to answer that, please.

So we're actively working on acquiring business for all of our product verticals within the CFMS business. As Achaiman mentioned, we've received the first business for our switches division, which is a very positive indication, and we plan on growing that particular vertical very significantly in the upcoming years. We have also started production on disc brakes for one of the major Indian OEMs as well, Which is, again, a positive sign for that particular division and the future products that we are planning to grow there. We have also been discussing some export businesses with some of our larger customers in the European and American regions as well. So we are very positive about the growth of that division.

In the DICVS division, we have just started engaging with Mahindra to make an entry into Mahindra which we were not here to present. Its early days as yet.

Thank you. We take the next question from the line of Kosh from Electrum PMS. Please go ahead.

So my question was regarding our growth rate. So considering the new products that are in pipeline, the new business that we have won, so like you mentioned that the plastics business, our earlier target was to, I think, double the revenue on the base of 25 in the next three years. So considering there are capacity concerns, although we have orders, so how does that change? Is it still intact or pushed? Accordingly, similarly for the DIs and the ACFMS business, if you could elaborate more on the growth rates and what are we expecting over the next maybe three years?

The plastics business, I said we will, when we acquired the business, whatever numbers we had in FI25, which we just had one and a half months of operation, we said we will not just double, we will do two and a half times will be our endeavor to achieve. And with the capacities we are creating and with the business pipeline that we have, my team and I are very confident of achieving that number, and that is not going to get Next question from the line of brief.

Thank you, everyone, and welcome to the call.

Audible, Mr. Preet, can I request you to ask your question again? There was a lot of echo and it was muffled.

Sure, sir. My question is on the line of DIS business. What would be our market share across segments and what would be the TFT penetration?

It's folded into one. Market share in DIS, segment-wise, it is different. In the two-wheeler DIS business, we are the largest in India with between 35% to 37% volume share. In CVs, we have almost a two-third market share to CVs and off-road vehicles. In passenger vehicles, we just have about 8-9% market share because at this point in time, we are only dependent on Tata Motors, where 8 out of 10 Tata cars are coming out with a pre-call cluster. In terms of TFT penetration, I would request my CFO to answer. TFT penetration, especially in the, I'm sorry, my CEO.

The two-wheeler currently, the penetration has been more in the EV segment of the two-wheeler and now the ICE vehicle also is seeing traction in terms of the TFT penetration. Currently, it is a very small percentage, about 7 to 8 percent of the total two-wheeler produced as having TFT cluster, but we see rapid growth in the next three years of doubling this percentage in terms of TFT adoption.

Add there that Thank you.

And from the line of Sridam from iThoughtPMS.

Thank you.

The next question from the line of Shivam Kabra from Carnelian Capital, please.

The question is regarding company plans on merger and acquisition, and in which segment are we planning to go ahead? I am not able to understand you.

Nanab, we are not able to understand you at all, Mr. Kapra. Request you to be louder and slower, please.

What are the company plans on merger and acquisition, and in which segment are we looking forward to?

We have put a pause. On mergers and acquisitions, though I mentioned that we were evaluating certain acquisitions earlier, when we went through the due diligence, we were not very happy with the quality of the assets. As I have maintained, we are only looking at buying quality assets and not distressed assets or assets with fundamental issues in either technology or quality of management. So for the next one year, since we have a lot of new programs and a lot of capacity addition and also kind of de-merging the company, I think we have our hands full. And at yesterday's board meeting, we took a call that till this de-merger is over, we will focus on rapidly growing our business, getting these five new factories on stream, getting our... Thank you. Partnership with BOE, the backlight module for the screen, the heavy investment that we are putting in, getting that on stream, and streamlining each of the businesses, setting up the different center of excellences. We don't want to bite off more than what we can show in terms of management bandwidth, and so for the next one year, I don't foresee that we will pursue any acquisition opportunities unless something very attractive. Right quality at the right value comes up, but it is not a priority at this point.

We take the next question from the line of Naman. I do apologize. Naman has left the question queue. We'll move on to the next question, which is from the line of Hitesh Koyal from Origin Capital. Please go ahead.

Thank you. Can you please tell us about the disc break revenue in this quarter and also on the capacity you said you will start with 0.5 million per annum capacity. How is that going to ramp up? Are there any new orders there?

Did you allude to disc brakes?

Yeah, I was talking about disc brakes. So disc brakes, yeah, so revenue in this quarter, so then we can track the trajectory and the capacity and how it's going to ramp up.

As I mentioned, disc brakes, the real revenues will only kick in. FY28. We are still in early stages. I maintained this in an earlier call, and I'll continue to maintain the same, because we are just starting to ramp up and starting to supply. Disbreak will be a product. Disbreak and switches will start take relevance only from FY28, and this is what the stand I maintained in the last four quarters, and I will continue to maintain the same stand.

We take the next question from the line of Nandan Pradhan from MK Global. Please go ahead.

Hello. Good evening, sir, and congratulations on a great set of numbers. I hope I'm audible.

Yes, please, go ahead.

Yes, thank you. So, if you could, just a small bookkeeping question, if you could throw some light on how our polymer business has performed this quarter, like you do every quarter, in terms of the revenue, EBITDA performance, so that we get a broad understanding of how our core business is also doing. If you could just help us with that.

Okay, in terms of performance, while you've congratulated my team and myself on a good quarter, I think we could have done better, like I said. Personally, I'm not happy with our performance with the quarter. All our customers have declared superb results, but at the cost of tier 1s like us, because of... Plastics and other things, we are getting delayed earnings which is going to come in second quarter and third quarter. I was jokingly telling some of my customers the same also. In terms of the exact numbers of the polymer business, I will request our CFO to give you the numbers.

Good evening, Nandan. For Q1, the polymer division has recorded a revenue of 249 crews with EBITDA up 7.8%.

Mr. Pradhan, the polymer business was perhaps the worst affected because the raw material of polymer, the prices went up very high, which we have since corrected for this quarter and next quarter, and also LPG on which the polymer business is dependent on has gone to stratospheric levels, which again is getting corrected this quarter and next quarter. So we'd have a much better, healthier EBITDA and healthier top line in Q2 and Q3 in the polymer business. We could have grown had we had the capacity much more than this, but as I mentioned, because of lack of capacity, we are not able to fulfill the full potential of this business, which we will start seeing from FY28 onwards.

Thank you. We take the next question from the line of Krithan Arora from Stallion Asset. Please go ahead.

Thank you for the follow-up, sir. Just wanted to understand, once we are done with our Capex plan in the polymer segment, so who will be our most comparable peer or the competition in terms of product portfolio?

National Plastics, and it would be Premier Polyplast.

Thank you. We take the next question from the line of Sughosh Rudrawar from Purnalata Investment Advisors. Please go ahead.

Thank you for the opportunity, sir. I just wanted to ask, can you throw some light on our FY30 target? As you said that we are pausing our M&A, does it affect our long-term target?

I said I am not closing the M&A for posterity. We are taking a pause for a year because I think we have tremendous growth opportunities in our existing businesses. We are creating a lot of capacity in our existing businesses, we are looking at ramping up some of our new business verticals, we are creating center of excellence for certain new products, and we are going through a heavy capex cycle, we don't want to stress. My forecast for FY30, what we want to achieve continues to remain the same, and it is only we are suspending M&A for a year again. If something compelling, interesting, at the right value, the right quality asset, we are not going to turn it down, but we are not going to actively look for M&A and our my guidance for FY30. 31, which is calendar year 30, remains very much impact for each of our businesses.

Thank you. We take the next question from the line of Hiten Borecha from Sequent Investments. Please go ahead.

Yeah. Am I audible?

Yes, please go ahead.

Yeah. Thank you for the opportunity, sir. So my question is on the polymer business. As you mentioned, we are facing the capacity constant as of now. So if you can guide me, what is our current capacity and what will be our capacity post this 400 crore capex, sir? Thank you.

With the capacity that we are creating, we should comfortably go to about 2,000 crores of turnover, from our current 1,000 crores of turnover that we are capable of producing.

Thank you. We take the next question from the line of Bhavya Vyas from Ant and Bees Investment. Please go ahead. You are audible, but could you please use your handset?

My question is on the BMS. Could you provide an update on the program's program, and has it granted mask order? I think I have a question.

BMS is something that the vehicle makers and OEMs have decided to control, and we are not putting any further money into BMS, and this is something that I have been maintaining for three quarters, that we are not looking at investing any further money or growing that business, and that will not form part of our portfolio.

We take the next question from the line of Rajit Agarwal from Nilgiri Advisors. Please go ahead.

Just a clarification on the top line for this quarter. Although we have done very well why-oh-why, but sequentially, it's flattish. So could you throw some light on which businesses did well and which business did pull down the growth? Was it because of the polymer business? And if there is lack of capacity, then how do you see this top line recovering in the next two quarters?

Mr. Agarwal. This is absolutely in line with the performance of the industry. Always Q4 is a high quarter in the industry, and Q1 then drops, Q2 again, pre-festive season sale goes up, Q3 drops, and that is the cycle we have maintained, and we have grown higher than the market in each of our divisions. So we have not lost any share of business whatsoever, there has been a loss of EBITDA Because of external geopolitical factors. And certain government statutory things of minimum wage increases, which we are trying to recover in the coming quarter.

Next question from the line of Preet from Ingrid AMC. Please go ahead.

All of my questions have been on.

Thank you. We take the next question from the line of Siddhartha Matthew, an individual investor. Please go ahead. Yes, Siddhartha, please go ahead.

Yeah, just to follow up on your comments regarding the e-cockpit earlier, you mentioned that you had developed a world-class e-cockpit, but some of our international competitors have a distinct advantage. Just wondering where we are lacking and how we could catch up and whether this de-merger will help in that regard.

Possibly. Like I said, the amount of E-Cockpit, some of the international competition like a Nippon Seiki or a Continental, which is now OMOVIO or a Tenso or a Vistion is able to produce, is probably 50x or 40x the volume of pre-call. So we will not have a cost arbitrage in terms of the child parts or we will not have the very small volumes. So while we have developed the capability and shown our proof of concept, in terms of cost, we will not be able to complete because of the absolute volume disadvantage that we have. One of the reasons why we are looking at a partner also is to give us certain cost arbitrages in terms of scale. That's also one of the reasons, not the primary reason.

Thank you. We take the next question from the line of Sakit Sarawgi, an individual investor. Please go ahead. Saket, please unmute your line and proceed with your question. My line, can you get my voice? Hello? Yes, Saket, please go ahead.

Yeah, yeah. So my question was that, like, seeing the industry growth in this quarter, the sales figure of our company looks muted as compared to that. So what do you have to say on that, if you can think? Like, we have lost some revenue in this quarter because of some reason.

Since the industry put together, the weighted average grew by 22%. We grew by 26%. We have outgrown the industry growth by 4% across all our divisions. I would not call that muted growth. I would grow. We have outperformed the market.

Thank you. We take the next question from the line of Nashiket Kale from NK. Please go ahead.

Thank you for the opportunity. Thank you so much.

Thank you. We take the next question from the line of Ritkesh, an individual investor. Please go ahead. Yes, you are, please.

Sir, can you please give guidance for revenue for like next three to five years or any target which the management wants to achieve in next three years? It will be good.

I have given a revenue guidance for, I have told you polymer business what capacity we are creating. We have also, in the past, given a revenue guidance for our DICBS business, and we have said we hope to achieve 8,000 crores by a combination of primarily organic and some amount of inorganic growth for calendar year 30 or FY 31 of 8,000 crores, and I continue to maintain that.

Ladies and gentlemen, we take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments.

Thank you very much, ladies and gentlemen, for your active participation and to also my team led by our CEO, our executive director Madhura, our CFO, Mr. Bastia, and the rest of my operating team for having delivered this set of results. And we do endeavor that we will be able to deliver a better set of results in the coming quarters and continue to outperform the industry. And my prayers to the Almighty for normalcy to return to the world so that all of us can work on productive work and proactively work on strategy rather than firefight and run war rooms instead of running companies. Thank you.

Thank you, sir. On behalf of Precall Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.