Sterling Tools Limited (STERTOOLS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Q4 and FI26 earnings conference call of Stalling Tools Ltd. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involved with current attendees that are difficult to predict. As a reminder, all participant lines will be in the lesson-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. And now in the conference, over to Mr. Adarwal, Managing Director of Struggling Tools Ltd. Thank you, and over to Mr. Adarwal.

Thank you, and good morning, everyone. Welcome to Sterling Tools Limited's Q4 and FY26 earnings call. I'm joined today by Mr. J.D. Wadhwa and Mr. Anish Agrawal, who head our SEM and STML businesses, respectively, as well as strategic growth advisors, our investor relations. Our earnings presentation has been uploaded on our website and the stock exchanges, and I hope everyone has had the opportunity to go through the same. I would like to begin with the industry overview. The Indian automobile industry witnessed a strong recovery during FY26, supported by improving affordability, lower financing costs, GST 2.0, implementation of stronger Passenger vehicles recorded their highest ever annual sales of 46.4 lakh units, growing at 7.9% year-on-year, while Q426 itself delivered robust growth of 13.2% year-on-year with record quarterly sales. The two-wheeler segment also has achieved its highest ever annual sales at 2.17 crore units. Thank you. Looking ahead, the industry outlook for FY27 remains constructive, supported by healthy domestic demand, continued infrastructure investments, improving portability, and sustained momentum in vehicle electrification across all segments. However, uncertainties arising from the West Asia crisis, particularly around crude oil prices, commodity inflation. Currency fluctuations and potential disruptions in global shipping routes remain key monitorable factors for the automotive sector. Let alone fastener business, F526 was a strong year of execution, with the business continued to demonstrate its structural strength through consistent market outperformance, healthy profitability expansion, and strong cash flow generation, despite a dynamic operating environment. Our continued focus on customer diversification, value-added product offering, operational Efficiency and deeper OEM penetration. Our stand-alone fastener business delivered a robust performance during F526. Total income grew by 11.4%, Y1Y, to 725.9 crores, while EBITDA increased by 17.1%, Y1Y, to 111 crores. With EBITDA, margins improved to 15.3% compared to 14.5% last year. Profit for exceptional items grew by 27.6% by a way to 74 crores, supported by better operating leverage, favorable product mix, increasing share of value-added products, improved gross margins, continued operational efficiencies, and financial discipline. Our balance sheet has also strengthened further during the year with continued deleveraging, lower long-term borrowings, and reduction in finance costs. Cash flow from operations from the standalone fastener business stood at $83.3 crores during F526. Looking ahead, we expect capex for the fastener business in F527 to be around $75 crores. Primarily towards capacity expansion, operational enhancements, and future growth programs. Importantly, our standalone fast-web business continues to remain strongly cash-generated and net-debt-free, providing a solid financial foundation to internally support our long-term investments across EV and technology-led growth initiatives. During FI26, we significantly strengthened our OEM relationships through our new customer additions and increased wallet share with existing customers. We entered the Tata passenger vehicle segment during the year, which further strengthens our long-term growth visibility. Over the years, our strategy has remained focused on increasing content per vehicle, strengthening our presence in critical customers, and expanding our premium and value added. During F526, we secured approximately $64 crores of business acquisitions, which further strengthened future revenue visibility. While steel and energy prices have witnessed inflationary pressures in recent months, and near-term impact could flow into Q1 F527, We remain focused on mitigating the impact through operational efficiencies, value engineering, discipline cost management, and pass-through arrangements. We therefore believe the overall impact on profitability should remain manageable. In our EV business, while electrification continues to remain a long-term structural opportunity, EV adoption across segments has progressed at a slower pace than earlier industry expectations. As a result, The broader EV opportunity timeline has shifted by nearly three to five years and, therefore, may defer our targeted EV and non-EV business aspirations by about a year. However, we remain committed to building a strong position in this space and have continued to proactively invest in products, technology, localization, engineering capabilities, and customer programs. Alongside product and customer diversification, we have also significantly strengthened our technology ecosystem through multiple global partnerships, which we believe has further enhanced our long-term positioning in the EV ecosystem. Over the last few years, SEM has evolved from being primarily a motor control unit player into a comprehensive EV powertrain and power electronics solution platform. Today, our portfolio includes integrated motor and controller systems, DC-DC converters, on-board chargers, off-board chargers, and rare-earth magnet-free motors. The EV market is increasingly moving forward, moving toward integrated power electronics architecture, such as 4-in-1 and 5-in-1 systems, where multiple components, including motor control units, DC-DC converters, auxiliary drives, and PDUs, are integrated into a single compact system. In line with the strength, we are actively expanding our capabilities in integrated motor and controller solutions to address next generation EV platform requirements. Today, SEM is engaged across more than 28 active customer programs, spanning two-wheelers, three-wheelers, buses, and trucks. Customer diversification is progressing well, with meaningful traction now across LCV and HCV segments. We are particularly encouraged by the increasing opportunities emerging in commercial vehicle electrification, especially electric buses and trucks, driven by government-led electrification initiatives. Our OVC and DC-DC production lines are expected to be commissioned by end of Q2-F527, and commercial supplies are expected to commence from Q3-F527 onwards. Recently, we also expanded into advanced rider safety solutions through our partnerships with Nanjing, Haohang, for advanced rider assistance systems, or ARAS, specifically designed for two-wheelers. ARAS Solutions. Function primarily to ADAS in passenger vehicles and use sensors, software, and control systems to provide real-time alerts and assist riders in avoiding potential hazards. Under this collaboration, Sterling Tools will lead local engineering, manufacturing, system adaptation, and commercialization of ARAS products for the Indian market by combining Hao Hang's proven technology platform with our understanding of Indian road conditions and OEM requirements. We believe this partnership strategically positions Sterling tools within the intelligent mobility and automotive safety space while addressing a critical safety gap in India's two-bill industry. Coming to Sterling Tech Mobility, or STML, we continue to make steady progress in the HBDC contactors and relays business. Customer validations, laboratory testing, and Taiwan engagements are progressing well. Commercial production for serial orders is expected to commence from July-August 26 onwards, while supplies for brand-labeled products have already started. The current Indian market opportunity for HVDC contactors and pre-charge relays is estimated at approximately 300 crores and expected to grow to over 750 crores by the end of this decade, driven by increasing electrification across two-wheelers, Passenger vehicles, commercial vehicles, charging infrastructure, solar, and battery energy storage applications. As an early entrant in the segment, with a strong localization strategy and technology partnership with Kunshan GLVAC, we believe STML is well positioned to benefit from this large import substitution. Our fully-automated Bangalore facility has been designed to manufacture safety-critical high-voltage components with global quality standards, and we continue to engage closely with customers across automotive and industrial applications. Overall, while EV adoption timelines have moderated in the near term, our continued focus on technology partnerships, localization, product diversification, and engineering capabilities positions us for strong long-term growth. Supported by a strong balance sheet, healthy cash flows, and deep customer relationships, we remain confident in our ability to create sustainable value across both conventional and next-generation mobility technologies. Thank you. We may now open the floor for the Q&A session. Thank you again.

Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone? Who wishes to ask a question, may you press R&1 on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Participants, you may press R&1 to ask a question. Ladies and gentlemen, you may press start and one to ask a question.

The first question is from the line of Madhurati from Counterfeit Legal Investments. Please, go ahead.

Hi, sir. Thank you for the opportunity. Sir, I wanted to understand regarding this 21 crore loss at our subsidiary level that we have taken during Q4. So, what is this regarding? And, yeah.

Okay. Jaydeep, you want to take that?

Yes. So, good morning. Thank you for joining the call. Actually, you know, in terms of operating BIDDA, we haven't, or operating PBD, we don't have as severe a problem as seems apparent. We have, however, taken a provision, a bad debt provision in line with prudent accounting standards, even though we think there's a high probability of recovering the dues, just to, like I said, be very prudent in our financial statements.

Sir, this is regarding to the customer that, for which the business had lost earlier?

This is, this is, yeah, this is from one of our bigger customers. Got it.

Sir, now coming up to our fastener's business, sir, I wanted to understand, is there a price reduction contract with the OEMs in this segment? And he mentioned that due to steel and energy prices, there should be some margin impact, but what kind of... So, margin pressure are we speaking about with all the initiatives that we have taken?

Is this for the fastener's business? Any specific? So, you know...

Yes, sir. Fastener's.

So, we have a pass-through for our steel purchases. And it's a lag of a month or two, but it's a straight pass-through. But this year, there's been an unjury pressure on inflation. For example, chemicals, plastics... Energy costs have all gone up. So there's been a tremendous pressure on that. I think we, like I said in my earlier talk, that we should be able to mitigate that through internal efficiency improvement. Plus, at the same time, we will be working with the customers to get compensation for this. This is a unique or a very extreme scenario the industry is going through. So it will be a combination of both the things. So there will be pressure this year. Like I said, Q1 will be a special pressure because this will be an adjustment quarter between combination of costs and customer pricing increases, operational efficiency improvements. But I think this is an industry-level issue, not only impacting automotive industry, but pretty much everybody across the board. Right.

So, we expect that there should be some price hike by the OEMs from Q2 onwards based on our discussions?

Yes. We are quite hopeful of that. Yes.

And do we have annual price reduction contracts for these customers across these OEMs?

No, we don't have any price reduction contracts. Nowhere. So, prices remain constant. They are negotiated on different competitive and cost scenarios, but there are no reduction contracts.

Got it. Sure, and what would be our market share in the fastener segment in India, and how much of our revenue currently comes from non-automotive customers, and I think you mentioned previously that we were trying to get into railways and some other industry applications for these fastener, so what is the progress on that?

So, I think pretty much all our, I would say, dominant revenue comes from automotive industry. There's no hard published data on market shares in India. Our estimations are that for the automotive industry, pure automotive segment, we're anywhere between 25 and 30 percent of market share in the country. I'm talking about the domestic mine. You know, a lot of parcels are currently being imported as well. From a domestic manufacturing perspective, that's where we stand.

Got it. So, is the import cheaper than us or is the import more competitive than us from the cost per sector?

No, it's not cheaper. I think these OEMs are all international OEMs. They've been importing for a number of years. But some of the OEMs have not localized them to Indian manufacturers, and that's an opportunity, as in when the OEMs localize, the opportunities will come to us. So, it's not a commercial issue, it's more of a strategic issue at the customer end.

Got it. And then on the non-auto fastener segment, any progress on any new railway or industrial applications?

I think we're going to build capabilities around the railway segment. Early days as yet, I don't see that railway opportunity turning into any meaningful revenue for the next two years.

Got it. Now, coming up to the EV component segment, so I see that we are doing a lot of interesting JVs, but these are not picking up, and we are going forward and we have added mobile I for your driver safety segment, so what is our vision for this segment, and where do we see this business scaling up realistically over the next two to three years? Do we see, so right now it's a margin decorative kind of a segment for our business. So where should we see this segment maybe over the next two to three years?

So, let me just step back for a moment. We have started our journey in the EV component space about five, six years ago. And five, six years ago, EV was a big buzzword. Internationally, there was a lot of momentum, and we thought that the penetration in India will be much faster than it has happened. I think two-wheeler present can get 5%, 6%, 7%. And I think the passenger vehicles have only gone up this year to up, what, 4-5% of penetration. But these numbers are much behind the expectations the industry had, the government had, and we had, where we should be in F526. The penetration levels expected were much higher by F526 and by F530. And I think for various reasons, it could be... Government infrastructure issues, subsidy issues, technology issues. The industry has not been able to create that demand for electric vehicles for various reasons. But having said that, despite this delay in penetration, we are still quite optimistic about our future. We are building our future today. We are continuing to invest into a future of electric vehicle components. Like I spoke about the different products coming in SEM, moving from an MCU maker only to a 4-in-1, 5-in-1, a solution provider in power electronics, and we're doing safety components in DC contactors. We are targeting advanced rider automotive systems, ADAS, radar, etc. We are building products which are here for the future. They may not give us revenue for the next two or three years, but we want to be the first. First mover in those spaces. Acquired customers, revenue may be small initially, but hopefully over a three to five year time frame, we'll be ahead of the system in terms of those product lines. And yes, you're right, currently they're all value decorative, but we are not looking for the short term. We are building our future, like I said, medium and long term.

Right. Sure, but if I'm thinking from a capital allocation standpoint, so we are investing in my power. Yes, sir.

Can you repeat that question again?

Yes, sir. So from a capital allocation standpoint, how should I look at this business? Because we are investing into capacity, we are investing into manpower, but... This won't maybe pick up over the next two to three years. Very small, not meaningful revenue. So how should I look at it from a payback or IRR perspective on these investments that we are making? And sir, what is the right to win versus... Sorry, sir, please go ahead. I'll ask the question later.

Yeah. So, you know, our capital allocation for this new product line is more strategic. You know, when you are building capabilities... When you're diversifying and increasing new product lines, we have to go through a phase which is value, which is margin-decreative, which is capital needs, building capabilities for technologies, for products which are not currently available in India. These are all first-time products being made in India for new segment for electric vehicles. So we are very conscious of that. And we still believe very strongly in our future and what we are trying to do based on our customer interaction, based on customer needs, based on customer engagements and the technology partners we have. We believe we are on the right track. Short term, there's a lot of pain, like we have seen pain last year and the next year or two. But we strongly believe in our future.

Thank you. Madhura, I'll request to come back for a follow-up question. Parasabins, you may press star and one to ask the question. Next question is from the line of Payal Shah from Billion Securities. Please go ahead.

Hello. Good morning. Am I audible? Yeah, so I have a couple of questions. First, my first question is, with the EV penetration scaling slower than earlier anticipated, and industry timelines are also getting pushed out by three to five years, so is your expectation from SEM regarding achieving EBITDA break-even also should state accordingly? Or do you expand product portfolio and upcoming OBC, DC ramp up, still keep you on track for the operating break even over the medium term?

Yeah. Good morning, Payal. So, a couple of things. You see, as far as SCM was concerned, You know, we, till FY25, we were, you know, we were profitable both at the EBITDA and at the PBT level due to, you know, due to certain conditions that we faced and, you know, which we could have probably done a better job of handling. But, you know, we've had setbacks in FY26, and we will possibly not be, and we will not be. We are not profitable in FY27, but there is no reason for us not to be profitable in FY28. So, yes, the penetration is lower than what we had anticipated, but it's a very, very dynamic industry, right? And it's a very dynamic situation. With the current crisis in West Asia, actually, you're seeing much more, you're seeing renewed interest in EVs and in pushing EVs. The government is in terms of in the areas that they can influence directly, which is essentially the bus and truck platforms. They're pushing very hard on this. If you're aware of the number of tenders that have been. It's been issued both, you know, at the central level and at the state level. It's a very significant number. So, yes, the penetration is slower, and there are reasons for that. Like Atul said, you know, the charging infrastructure, the subsidy, the limited subsidies that were provided, etc. But it continues to grow, at least as far as the SEM business is concerned, we expect to be back to profitability next year. The other businesses, you know, again, will have different timelines for profitability depending on when they start. But, you know, we don't, I think one of the things that Atoll alluded to was that when, you know, we had put out a... We had put our target that we wanted 50% of our revenue to come from non-fastener businesses, and that is getting pushed back because as penetration is not coming up, then our ability to scale these businesses to that level is compromised. And again, you know, we're talking about not only electrification, not only EVs, but we're talking about autonomous connected electric because the businesses that we've started with ADAS and ARAS are in the autonomous space rather than the pure EV space. And so, you know, that's the timeline that gets pushed back. Otherwise, you know, profitability, like I said, depends on, you know, when the business is startup. There's typically a gestation, and we'll be on track with that. In the case of SEM, we had some unique circumstances, and we are on track to regain profitability.

Sure, sir. So, my next question is... My next question is like, you have highlighted an increased strategic focus on the commercial vehicle electrification opportunity within the MCU business. So, have you onboarded any new CV customers or platforms recently? And also, how large do you see the addressable market opportunity for sterling in the e-bus and e-truck MCU segment over the near term?

So, to answer your question, we have onboarded customers. We don't show that in the presentation yet because we haven't started supplies. As we mentioned in the presentation, in quarter three this year, our lines will get commissioned, and that's when production supplies will start. But even today, we are actively working on testing and validation and homologation of our products. So, yes, we are engaged with... With a number of customers on their platforms, on the LCV, sorry, on the bus and truck platforms. In terms of numbers, you know, we think that the industry should ramp up to about 10,000 units a year kind of numbers in the coming years for buses alone. Trucks is still, you know, their truck is doing very well in certain applications like mining. And now, I think we are seeing traction coming in in applications like garbage trucks, which again have a closed-loop operating cycle. But the numbers on those are not fully understood.

Okay. That's helpful. Thank you so much.

Thank you. Participants, Jimi Press, start-end, 1, 2, ask a question. Next question is from the line of Ravi Gupta from Incred Capital. Please go ahead.

Yeah, thank you.

Can you hear me?

Yes, yes. Sorry, I joined late. I don't know if you have covered this. So, with many joint ventures and tech partnerships, what proportions of the EV content per vehicle do they cover in, let's say, two-wheelers, car, or maybe you can talk about CV as well? And what gaps in tech can be covered in the next two, three years that you are envisaged?

You know, this is a very high-level question. There's not enough data to do that. We'll have to map all the product lines, volumes, etc. You know, Ravi, this is a very, you know, I won't use the word difficult. I don't think there's any data to an answer to this question. Jadip, Anish, you guys want to comment on this?

So, I'll try and talk about, and I'll then request Anish to talk about the ADAS, ARS portfolio. Typically, you know, in a two-wheeler, in a two-wheeler platform, Let me just, I think across the board, with our current portfolio, we are looking at anywhere, but, you know, for the smaller vehicles, up to 10% of the pack price or the vehicle price, and in the bigger platforms, up to 5%. So, I'll give you a data point. You know, a multifunction unit for a bus. We'll sell, depending on configurations, etc., we'll sell for three to three and a half lakh rupees.

I think, Ravi's question was what percentage of the spend of the vehicles. I think that's a difficult one. We know our price points.

Yeah, but I mean, the vehicles are selling for about a crore, Atul.

Right, yeah.

So, anywhere between, I mean, it's difficult. I mean, what Atul is saying is very true because people are not selling buses as much. I mean, actually, the tenders call for operating leases, right? Right? Where the person, like, companies like, Switch or the others are actually operating these buses and are charging the government per kilometer, so it becomes a little bit more complicated, but if you look at the capital component of that, like I said, it could be, you know, 70 to a crore, and we are about three and a half lakh of rupees for multi-function units, three to three and a half. So, we are not in the passenger vehicle space. In the two-wheelers, again, you know, the motor control units that we started with, I mean, obviously, the market's moving tremendously, but a motor, a two-in-one motor and a motor control unit will typically be upward of 10,000 rupees. And, you know, people who've been following this industry will recognize that there's a lot of efficiencies that have come in, a lot of cost reductions that have come in over a period of time. We started off selling just a motor control unit at 10,000 rupees. Now, a motor and motor control unit together are, say, depending on the size, you know, 14,000 or somewhere there. Integrated unit, yeah.

Thanks, that's helpful. Thanks.

Thank you. Parasabans, you may press star and want to ask a question. Next question is Farhalayana Panchi Shah from EVN Advisors. Please go ahead.

Hi, sir. Thank you for taking my question on my audible.

Yes.

Yeah. So, sir, my question is regarding, given the ongoing West Asia net supply chain disruption and the recent increase in steel and energy costs, Could you elaborate on the extent of the pass-through arrangements available with OEM? Also, should we expect some moderation in standalone EBITDA margins from the current 15% levels in the near term? And what would you believe is the sustainable steady-state margin profile for the fast-north business?

So, Mancheet, like I said earlier, and I've been saying that steel is a straight pass-through. There may be a lag or a month or two or three, but it's a straight path. Other value-added, other cost centers like energy, like chemicals, plastics, this has been a very extreme scenario in the last three, four months. So there are no norms for that. Since this is an extreme scenario. We hope to mitigate that through a combination of price increase with the customer and improving internal efficiencies. So, to go to the second part of the question, there may be a short-term pressure on our margin structure, but long-term, our steady-state margin, like I've been saying in calls over the last few quarters as well, we are confident that we may be able to maintain our mid-time margins around 15% plus.

Thank you so much.

Participants, remember star and one to ask the question. Next follow-up question is from the land of Masorati from Counter-Cyclical Investments. Please go ahead.

Thank you for the opportunity once again. Sir, for the fastener's business, what kind of growth should we expect as we already have a decent market share? So, is there an import substitution opportunity or the growth will follow like the volume growth for the automobile industry going forward?

So, uh... We believe that we'll be able to grow faster than the automotive industry as a whole in India, which is what's happened last year. Our customer profile, our product mix, our capabilities, our resources we have built all India bases are extremely well positioned to leverage the opportunity there is and give us the revenue growth we expect. So, let me just say that Unless there's an extreme black swan event, which is currently the best Asia crisis. The FY267 looks to be promising on top of a good FY26, and we hope to grow faster than the industry as a whole. Import substitution is a very slow process, driven by the OEMs themselves. If they drive it hard enough, we are in a great place to localize the components as well, but that's a very slow opportunity.

Right. And with the 75 crore capex, what kind of asset terms can be expected? So, basically, I'm trying to understand the revenue potential for this segment once we are done with the 75 crore capex, and when will that commercialize?

So, the 75 crore will all be commercialized last quarter of this financial year, Q4, FY27. Some will happen early, some will happen down the line, depending on the kind of equipment there is. This CAPEX is done One is pure capacity increase. Second is balancing of capacity. And lastly, improving in operational efficiencies, quality improvements, engineering capabilities. It's a combination of all that. A lot of our asset terms, what we invest this year, crystallizes in full revenue 12 months later or 24 months later. Since this CapEx is being invested in our current facilities, The turnaround could be as low as maybe 24 months. So our asset turns, if you look at a greenfield facility, go up to five years' time. But we are quite, like I said, we are investing in our existing facilities. If the market supports us, we should be able to turn that around 24 months.

And, sir, in terms of revenue potential for our asset base of the fastener segment with poor-disk capex?

So, like I've been saying in calls earlier, our current, based on the current capex we have, current capacities we have, we can do a revenue of about 800-odd crores, 800 crores plus. With the capex we are doing this year, and there will be some additional capex coming in next year, we are building our capabilities to take it up to about 900 to 1,000 crores.

Okay, so 2x, so is it fair to assume that there is a two-time asset turn for the fastness business for the CapEx that we'll do this year and maybe go for maybe next two, three, four years, I'm saying?

So, you know, a two-time asset turn in our business is very good. Since, like I said, this is being invested in our current facility, the asset turns are faster and more value-creative. You know, we can turn them two times around. Yeah, I think anywhere from 1.8 is very good. According to the benchmarks we have, we see competition in India and worldwide. It's a good number to work with.

Right. And so just a final question from mine, sir, on this OVC and DCDC components that we are planning to supply from Q3 of this year. So how is the vendor selection strategy by the OEMs? Is it that 100% of... Will we be the single source suppliers or there will be multiple vendors on whose products these platforms will be created?

So on that front, to start with, we will be 100%. You know, that's typically the way it goes. Once volumes pick up, it is possible that they may want to get another, you know, customer may want to get a second source in to ensure, you know, business continuity in case of any, you know, force majeure or other events that may happen with one supplier. But typically, when the volumes are, you know, in the few thousand units, they typically go with one supplier. And as of today, we are single source where we are. Where we are supplying, I won't say supplying, that's the incorrect word, where we are working with these companies on their contracts.

Right. And so what would be a right to win in these, so we have our existing time, but for new customers, what would be a right to win? Is it based on the technology partner or the JV's? So, is it based on their market share gain in their foreign respective market? Because of that, will we be able to win in the domestic market? Or how should I look at the right to win in the segment?

So, I mean, I have to say that, you know, it's not one factor. Definitely the credibility of our partners in the markets that they play in is very important. Our technical support capability, our responsiveness, our ability to develop the supply chain, these become very important. And, you know, it's similar to, you know, how it is with the motor control units for two wheelers. It's. The customers, you know, you're talking about a very new industry, an industry that's moving very rapidly. So customers are always looking for partners who can support them technically and meet their commercial requirements. But technical support is crucial to this. And the ability to, or to have the infrastructure, to have the ability to meet their customer requirements, to meet, to resolve problems, to continue to, you know, adapt becomes very important. Now, we have, and I just, I mean, I'll just give you a little bit more detail. I mean, it may be boring technical, but. You know, customers are looking for higher and higher integration because that reduces cost and makes vehicle development or vehicle integration easier. So that's why, you know, we started off first with a motor control unit. Then the customer said, well, can we have additional features in addition to the motor control unit in the same box? Now, our partners, GTEC, were working with a company called Landworld for OBC and DCDCs to create these multifunction units. So, we also tied up with Landworld. So, now we have the ability to provide these 3-in-1, 4-in-1, 5-in-1, 6-in-1 units. Right? So, that gives us… So, I mean, that gives us an edge because we are not only just giving them, you know, one product, like, you know, one motor control unit, we're giving them a solution that cuts down all the cabling that goes on inside a vehicle that cuts down. Cabling also adds to failure routes. So, it reduces cost, it reduces complexity, and that becomes important because not everyone can provide these multifunction units, you know, especially in India because of the technical issues and the volumes.

Got it. Sir, that was from my end. Thank you so much and all the best.

Thank you very much. Is there no further questions? I'll now hand the conference over to the management for closing comments.

Thank you, Karan and Nitin, for organizing this for us. Thank you, everybody, who had questions, and for people who joined, if you guys have any further queries or questions, we're happy to take them up. Karan and Nitin are your point people, so just forward it to them, and we'll come back to you. Thank you once again, and... I look forward to talking to you very soon.

Thank you very much. On behalf of Sterling Tools Limited, that concludes this conference. Thank you for joining us, and you may know this conference. Thank you.

Thank you.