UNOMINDA — earnings call

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Prepared remarks

OFFICER · Management

MR. ANKUR MODI – HEAD – CORPORATE FINANCE & COMMUNICATION Uno Minda Limited May 23, 2024

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Moderator · Conference Operator

Ladies and gentlemen, good day and welcome to the Uno Minda Limited Q4 and FY '24

Questions and answers

Moderator · Conference Operator

The first question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities.

Mumuksh Mandlesha

Thank you so much for the opportunity and congratulations on strong margin performance and entry into 4-wheel EV segment, sir.

Sir, firstly, on the gross margin side, this quarter, can you quantify the impact of price hike?

Sunil Bohra

Sorry, come again, Mumuksh.

Mumuksh Mandlesha

Can you quantify the impact of price hike during this quarter, sir?

Sunil Bohra

There is no price hike, Mumuksh, that's what I think we said in the last call also.

There are normally whatever are the customer price settlements, they normally tend to get settled in the last quarter of the year or maybe third quarter of the year.

So, you do see a little more benefit in the last quarter.

If I have to quantify that impact, that is roughly around INR30 odd crores during the quarter.

Mumuksh Mandlesha

Sir, now on the 4-wheeler EV with the StarCharge partnership.

So, I just want to understand how we see the revenue trend for the StarCharge and also now with the 4-wheel EV focus area.

So, over a medium term, any guidance you want to share how you plan to ramp up like in 2- wheel as you mentioned earlier?

Sunil Bohra

Yes.

So, I think, Mumuksh, by end of next quarter, I think we will have much, much, much better clarity because we have just signed the TLA and the team is in process of preparing the detailed project report.

Post that, we will have some visibility but still, you know that our dependence is there always on the OEMs and we normally don't comment on the numbers in terms of the expected revenues.

But in terms of the entire product profile, because StarCharge is only one part of it, we already have a lot of other products which currently are in the works and some of them are also in operation.

So, maybe we will give you a full picture where we have our results call after Q1.

Mumuksh Mandlesha

Sir, lightning segment is seeing a strong growth.

So, just want to get a sense how is the profitability in this segment?

Earlier, it used to be like a high single digit, sometime back.

So, how that has changed, sir?

Is this the lightning as a more profitable segment among the other segments?

Sunil Bohra

I wish it was.

But I think we have discussed this in past also.

First of all, just to put some background, we know that the kit value for the lighting products as it moved from halogen to LED has increased significantly and with a lot of bought out component in terms of electronics.

And I think that has been the key reason why we said that the margin in the four-wheel lighting business specifically, which is seeing that kind of growth is below average margins, which continues to be there.

Mumuksh Mandlesha

And lastly, on lighting part, are we seeing a very good pickup on the new orders?

Can you just guide how do you see the next year in terms of growth for this business?

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Sunil Bohra

So, this business is, I think we have been saying very candidly that we are very, very bullish on this business with multiple, I would say, tailwinds and also in terms of getting more business, tailwind in terms of transition from halogen to LED, increase in kit value going multi-fold and also share of business gains.

So, we are very, very optimistic specifically in four-wheel lighting business.

We know we are currently in process of constructing our Khed plant for lighting four-wheelers.

Once that is up and running, that will give us the boost.

In fact, even at the plant in Gujarat, which we have put up, it's almost running out of the capacity.

The plant was commissioned only, what, two and a half years back or two years back.

So this business will continue to grow and our goal has been to reach 20% share of business as the first milestone and I think we are on track to achieve that.

Mumuksh Mandlesha

Is there any guidance, any growth guidance for FY'25?

What kind of growth we can see for lighting, sir?

Sunil Bohra

I think, Mumuksh, the same thing.

We said we don't comment specifically on numbers.

So, my apologies for that.

Mumuksh Mandlesha

Thank you so much for the opportunity.

Sunil Bohra

Thanks, Mumuksh.

Moderator · Conference Operator

Thank you.

The next question is from the line of Siddhartha Bera from Nomura.

Please go ahead.

Siddhartha Bera

Yes, sir.

Thanks for the opportunity and congrats on a great set of numbers.

Sir, on this lighting side first, just to continue the last question, I mean, if you look at the current quarter and just annualize it, so it implies a close to 16%-17% growth for the next year and we also have this new plant which is coming up in the second half, which you mentioned.

So can you throw some more light on to which of the orders which are ramping up here and does this mean that, this segment can grow at more than 30% probably in the coming few years?

Sunil Bohra

Absolutely, Siddhartha.

First of all, thanks for the compliment.

In terms of growth, whether it is 30% or 20%, you know that a lot also depends on the industry volume.

So it's very, very difficult to say whether it will be 20% or whether it will be 30%, but definitely it will outperform industry growth by a margin.

If you see last year itself, the four-lighting business have done annual revenues of roughly around INR1,200 crores odd and the last quarter itself, we have done something like INR380 crores, INR390 crores or close to we can say INR400 crores.

So with that itself, I think we are poised for that kind of number what you said, but a lot also depends on the industry volumes.

So while we are optimistic, maybe we are able to achieve that, but very difficult to comment whether it will be 30% or it will be 20% or 25%.

Siddhartha Bera

Okay.

Sir, can you provide the breakup between four-wheeler and two-wheeler and where are you seeing the most traction, sir?

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Sunil Bohra

Obviously, four-wheeler lighting is the more traction, Siddhartha.

Two-wheeler lighting, we already are like 25% plus kind of market share domestically and we already have much higher penetration in two-wheeler in LED.

So there is not much of scope in terms of value enhancement.

So it is the four-wheeler lighting business which you will see outperforming by a huge margin.

Siddhartha Bera

And sir, how much was it in the last quarter, four-wheeler?

Sunil Bohra

Four-wheeler lighting, last quarter I said I think INR380 crores-INR390 crores was the four- wheeler lighting business in India.

Siddhartha Bera

Okay.

So, sequentially, sir, last quarter Q3 also you had mentioned about INR340 crores from four-wheeler.

So has the delta come more from the two-wheeler?

Sunil Bohra

No. So INR340 crores to INR390 crores I am saying is only four-wheeler.

Siddhartha Bera

Yes.

But our revenues have grown from INR850 crores to INR970 crores, so nearly INR120 crores.

Sunil Bohra

Yes.

So that also includes, Siddhartha, the overseas lighting business in ASEAN and also in Europe.

So that is overall group lighting business.

What we are referring to is the Indian INR340 crores.

That is the Indian lighting business.

Siddhartha Bera

Okay.

Got it.

Sir, second question is on the seating side.

Again, we have seen good improvement in industry volumes in two-wheeler and CVs.

But our seating revenue seems to have been quite flattish sequentially.

So some thoughts here.

You have said that you have won a couple of orders.

If you can quantify what is the size of these orders and how to think about the growth here?

Sunil Bohra

So the new order which we have got is from the Indian CV customer is roughly around INR80 crores to INR100 crores a year depending on the volumes.

Plus, the quarter-on-quarter number, I appreciate, yes, it is flattish.

But that's what I think we have seen in terms of the CV volumes also, which have been actually negative in the last quarter.

So, the seating business revenues, almost half comes from the CV/ OR segment.

Plus, there has been some headwinds in terms of the exports.

While we are the global supplier to JD, and there is a lot of exports, that has not been seeing significant volumes uptake.

In fact, it has been more static to negatives in terms of volume.

So, while we have got business in hand, I think it is the volumes which we are not in our hands.

I am not trying to justify, but that is the key reason why the revenues are flattish.

Siddhartha Bera

Okay.

Sir, lastly, the two-wheeler capex, which is about INR300 crores, I think the last capex of similar size was about INR190 crores.

So why the capex intensity seems to be slightly higher here?

And lastly, on this aftermarket revenues, we have not seen much improvement over the last one year, revenues seem to be around that 270-280 type of run-rate.

So, any thoughts what will drive this or what are you thinking here?

Sunil Bohra

No, you are right.

I think both the questions are very, very genuine, Siddhartha.

So, first of all, the two-wheeler lighting project, which was announced at INR190 crores, it was actually ended Uno Minda Limited May 23, 2024

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InternalPage 13 of 21 at INR225 crores.

By the time it got completed, there was significant cost overrun.

And for that INR225 crores, the land was already part of the first acquisition.

So there was no land cost in the second phase.

Now, when we are setting up this new expansion, we have to buy this 13 acre of land from MIDC.

Plus, over last three years, there has been a significant increase in the cost of construction and also the machinery, etcetera.

So while we tried and tried to optimize a lot of things, plus also, what is happening is in this expansion, there is a powder coating extra, which was not there in the first phase.

So, if you see, there is one specific customer who uses this wheel, two-wheeler wheel for a scooter with different technology of coating, which the cost is higher than the traditional covering.

While it does get compensated through better pricing, but the overall cost increases.

So that is in terms of capex.

And in terms of aftermarket, yes, you are right.

The aftermarket revenues, despite our significant push in terms of increasing the sales, have not seen a significant traction over last one year.

But if you see the industry, barring one or two players, I think the numbers have been like that.

People have not grown significantly.

So while there was a significant growth year before, this year, which is FY'24 has been flattish, but we are expecting FY'25 to be much better than what we have done in FY'24.

Siddhartha Bera

Got it, sir.

Thanks a lot.

I'll come back in the queue.

Sunil Bohra

Thanks, Siddhartha.

Moderator · Conference Operator

Thank you.

The next question is from the line of Raghunandhan NL from Nuvama Research.

Please go ahead.

Raghunandhan Nl

Thank you, sir.

And congratulations on a strong set of numbers.

Moderator · Conference Operator

Sorry to interrupt you, sir.

May I request you to use your handset, sir?

Your audio is slightly muffled.

Raghunandhan Nl

Yes.

Congratulations, sir.

Firstly, within the other segment, you know, the sensor, controller, and ADAS part have done very well this year.

How do you see the outlook for FY'25?

And secondly, in terms of the EV order book, congratulations on the increase from 3,300 to 3,700.

If you can give some more color with, you know, like addition for orders of traction motors, motor controller, how do you see the ramp up for this particular opportunity?

And if you can indicate, you know, how many customers you have got on the motor side, just some color on how you see the growth ahead.

Sunil Bohra

Yes.

Thanks, Raghu.

In terms of the other segment, as you know, these are businesses which are primarily the sunrise businesses, which is maybe sensors and controllers.

The application is going very, very high.

All the EV products are also part of this segment.

So we are very optimistic in terms of the growth of some of these businesses.

And as we move forward, Uno Minda Limited May 23, 2024

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InternalPage 14 of 21 normally our barometer is once a business crosses 10% of total revenues, we start showing this separately as a segment.

So I'm pretty sure in the next few years, we should be having one or two businesses who will actually cut into that category.

And in terms of the EV order book, the large part of the orders which we have secured in the last quarter is primarily from the existing businesses, which are the EV agnostic businesses, while they are from all the EV players, but nothing significant from the EV specific product perspective.

And in terms of the motor business, while we have got a couple of new customers onboarded, the SOP of those onboarding will happen in business, secured in the last quarter primarily, the SOP will happen sometime in the second half of FY25. I think one customer is in Q2 itself, and the rest I think are in the second half of FY25. In terms of motor controllers and others, there is going to be a significant ramp up in the current year.

As I have discussed, some of these products have gone into production in the last year, and some of them will get into production in this year.

And as I said, in the first year itself, this JV has clocked revenues of close to INR200 crores, and we are pretty optimistic that it will see a significant growth in the coming years.

Raghunandhan Nl

Thank you for that, sir.

And a couple of quick clarifications.

One is the INR30 crores price settlement which was received in Q4. Instead of looking at Q4 gross margin, it would be better to look at full year FY24 margin to get a normalized level.

Would that be a right understanding?

Sunil Bohra

Absolutely, Raghu.

I think you have said what I wanted to say.

In fact, that is what I always say that, and I think I said in my commentary as well, that we are in a business where quarter-to- quarter you might see there is a variation in terms of margins because we are not a B2C company.

So there are times when the settlement takes time.

There are times when prices go north.

There are times when prices go south in terms of the commodity pricing.

So there are various factors, but everything gets evened out on a full year basis.

So that is why it is very important to see the full year profitability, and that is where we have improved by almost 25 basis points on a full year basis.

So I would say that is more realistic, and I appreciate you asking that question.

Raghunandhan Nl

Thank you for that, sir.

And in terms of because you are adding capacities to meet the strong demand, there will be some upfront cost, but over a period of two to three years, how do you see the triggers for the margin?

Sunil Bohra

No, we are very, very optimistic, Raghu, and as I said, and I think I said in the commentary also, while our margin guidance has been 11% plus minus 50%, I said for FY24-FY25, we would tilt it towards the upper end of that range.

And as you move forward, and as you rightly mentioned, a lot of these projects, once they come onto stream, normally we see the third year full year of production as a stable operation.

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InternalPage 15 of 21 And that is where you expect that business to deliver its expected volumes and profitability.

So as you move forward, and as these capex all come online, gradually, ideally, we should see some uptick in margins, benefiting from the operating leverage, and also scales, higher scale.

Raghunandhan Nl

Got it.

Just on the margin side, a last question.

In terms of the revenues are going up for EV- specific parts, so any benefits we can expect either in FY25 or FY26 from the PLI incentives?

Sunil Bohra

So as we speak, a lot of our products are actually, while they are eligible in PLI, we are at a threshold of that 50% DVA, plus minus three, four percentage points.

So we are working on to see how we improve our DVA to meet that criteria of domestic value at a 50%.

I think that is the only key reason which is holding us back.

There are some of the products which we are expecting approval from the government, maybe in this quarter itself, but they are not very significant, so I'm not counting on that.

And secondly, there's one product which qualifies the DVA, major product I'm referring to is motors, but for that you need to have stable operations because they see and audit what is your exact DVA, etc. So that also, hopefully, we should be able to apply in the next year.

Raghunandhan Nl

Got it, sir.

Thank you so much, and best wishes.

Sunil Bohra

Thanks, Raghu.

Moderator · Conference Operator

Thank you.

The next question is from the line of Ashish Jain from Macquarie.

Please go ahead.

Mr. Ashish Jain, your line has been unmuted.

I would request you to unmute your line from your side, please.

Yes, sir.

We are unable to hear you, so may I request that you use your handset?

No, sir.

We are unable to hear you, sir.

Mr. Ashish Jain, may I request that you use your handset?

May I request that we move to the next participant?

Mr. Ashish Jain, we would request you to re-join the queue, please.

The next question is from the line of Ashutosh Tiwari from Equirus Securities.

Please go ahead.

Mr. Ashutosh Tiwari, may we request you to go ahead with your question?

Ashutosh Tiwari

Yes, hi, sir.

Congrats on such an exemplary performance during the quarter.

And also, probably, nobody would have imagined the kind of growth we have seen in Lighting segment a few years back, or even sensor controller.

I think these are really very, very strong growths we have seen over the last few years.

And the first time the lighting revenue crossed even the Switches segment revenue.

So my first question, and probably a question of these two segments only, how do you see going ahead sensor controller shaping up over the next few years, and also Lighting segment?

Sunil Bohra

So thanks, Ashutosh.

Lighting segment definitely continues to grow, and will continue to grow as we speak over next four to five years.

The key reason I think we have just discussed also is the kit value gain, the new business, and also the expected share of business gains.

Moving from 14%, 15% share of business to 20% is not going to be easy.

While we do believe that we do have -- got businesses in fold, and it's only a matter of time we will reach that goal post of running 20% share of business.

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InternalPage 16 of 21 The kit value also has been expanding.

So we do expect this momentum to continue.

But as I said, the only, what we call, the moving part is the volumes of the model which we have secured the business.

So if that remains on track, I'm sure we will be able to deliver the growth in lighting business as we have done in past.

What was the second question?

Ashutosh Tiwari

Sensor controller, I think we have done roughly INR775 crores put together.

Sunil Bohra

Yes, so sensor controller also is doing phenomenally well.

Sensor and controller business both are seeing a significant addition of new business.

Controller, you know some of the EV product business which are part of UML are also into that business like telematics or wireless charger.

There are a lot of other businesses which are part of this business which continues to grow.

And also now we have aligned ADAS business also with the sensor business because there's also has a lot of sensors and related stuff.

So sensor and ADAS internally we have aligned as a single business and as a sensor also, the number of sensors application has been consistently going up.

And as you may have noted, we have also added one more product to our kitty which is tyre pressure monitoring system sensor.

And we have already secured a business from one of the largest OEM in the country.

So hopefully that should also go into production sometime in the next year.

Ashutosh Tiwari

So I think you mentioned that in the fourth quarter the controller was INR130 crores and sensor was INR100 crores, right?

Sunil Bohra

Yes, fourth quarter, okay.

Yes, Yes.

Ashutosh Tiwari

So we are already adding INR920 crores run-rate in the last quarter.

So I think this business also, overall will grow very strongly.

Like can we assume like say a 20% plus kind of growth rate in this business over the next few years?

Sunil Bohra

I would definitely like to work on 15%-20% kind of growth assuming the industry volumes also support.

Ashutosh Tiwari

Okay, okay.

And lastly, on this alloy wheel four-wheeler business, don't we think that we are probably a bit behind in terms of capacity addition because the way it is ramping up and the way we are operating, we probably have to fasten the things.

So obviously there is some delay due to this land acquisition and all.

But going ahead probably we have to probably drive ahead of what we are guiding right now.

Sunil Bohra

No, Absolutely, you are right.

And that has been the feeling inside the organization because this is a business we all know.

We have been seeing very closely for the last four years.

We have been running like hand-to-mouth situation.

And this is not a good situation to be in.

While it is good that before the project is announced, even your surplus capacity gets blocked.

But that's what the market is giving.

And if we are not ready, we might lose the business.

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InternalPage 17 of 21 So we have been now working very aggressively in even building this land bank.

A large part of this is also identified for alloy wheel.

So while we are putting this 120k project in Kharkhoda as of now, the space and everything what we have earmarked can grow up to 240,000 wheels a year.

In addition, we might soon have to even expand our plant in Gujarat given the volumes are being ramping up there.

So there also we might see some sort of expansion in the current fiscal year.

But for your point taken, we have to be a little more aggressive in our capacity addition in the four-wheel alloy segment.

Ashutosh Tiwari

And just one more thing on this Minda Westport, that CNG kit business.

You mentioned the sales was INR177 crores in the fourth quarter.

Sunil Bohra

Quarter?

Ashutosh Tiwari

I just heard, somebody mentioned.

Sunil Bohra

Full year.

Ashutosh Tiwari

Okay and that also will grow quite fast.

It's a high-margin business as well, right?

Sunil Bohra

Yes, a little obviously above average margin.

And I'm pretty confident over the next few years, this also has the potential to INR400-500 crore run rate.

Ashutosh Tiwari

Okay, thanks and congratulations and all the best for the next three to five years of growth.

We have delivered extremely strong.

Sunil Bohra

Thanks, Ashutosh.

Moderator · Conference Operator

Thank you.

The next question is from the line of Ashish Jain from Macquarie.

Please go ahead, sir.

Ashish Jain

Sir, my question was again on the lighting business.

Is it possible to give a sense of volume growth versus value growth that we have seen in the four-wheeler lighting business particularly?

Sunil Bohra

Very difficult to say, Ashish, volume growth versus value growth, because even if this is the business currently we are, or the momentum we are in, even if the industry doesn't grow, this business will grow.

But the only issue is that the businesses we are tied up has to grow more.

For example, and why I'm saying I think you would have heard in my commentary, I said, we have got three like long tail lamps, like this tail lamps, the cost is almost INR18,000 to INR20,000, almost like per tail lamp, whereas the other model, if it's a halogen lamp, it's costing INR2,500.

So if the volume of that model goes up, then obviously your destiny is linked there.

So very difficult to say what volume will grow and how much your sales will grow.

But my point is, even if volume doesn't grow, I think this business will continue to grow.

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InternalPage 18 of 21 But only issue is the growth of that high value business, which is not in our hand.

And that's why it's very difficult to say.

I think the other colleague also has, other friend also asked this question, how much of growth we should expect in the next quarter or the next year?

So as I said, while we are gearing up our capacities for the kind of growth you expect, but very difficult to say whether it will be 20% or 25% or 30% growth.

Ashish Jain

Right.

But is it safe?

So given the kind of model launches we are seeing and particularly the product you spoke about, that is really seeing high penetration and all.

So is it safe to assume that the way industry is moving in terms of model launches and these kinds of features, this is like a structural thing and there's no reason for us to believe it will go down?

Sunil Bohra

No, absolutely.

If you see some of the global markets, you see the ASEAN markets, you go to Korea or Japan or other countries also, I'm not looking at commenting on the developed world, which has more affordability.

I'm commenting on market, which does not have more affordability there.

Also, you see the long connected tail lamps its penetration is very high.

So yes, it might be a case where there may be a structural shift, but it all gets driven by the customer preference and also whether the customer is willing to pay that, that delta.

But yes, it could be, but difficult to comment on because as of now, not many vehicles have got these connected long tail lamps or headlamps.

Ashish Jain

The second question was on switches business, like if I look at the last three quarters, switches business has been pretty much flattish in that INR 900 Cr of band how are we seeing that progressing?

Sunil Bohra

Yes, so switch business, we all know that we are actually having a lion's share, almost in both the segments, four wheeler or two wheeler, both are above 50% market share.

So obviously to gain beyond that market share is difficult.

But even if you see, despite that challenge, even on a quarter on quarter basis, this business has grown from INR930 odd crores, roughly like 3% to 4%.

It has grown quarter on quarter.

So I think while your point is valid, but I don't think I can compare this business with the light business where there is a structural change.

So but if you see year on year, on a full year basis, this business has actually grown 14%.

Whereas the industry, if you see average blended of PV and two wheeler has not grown with those levels, maybe it's like 8% to 10%.

So still there is an outperformance in this despite, and this is despite the exports are currently not to the quantum what we are expected.

So this business definitely is not as I said, in the very high growth trajectory, like alloys and lights, but it will continue to outperform the industry volumes supported with the kit value and exports.

Ashish Jain

Thank you so much.

Sunil Bohra

Thanks.

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Moderator · Conference Operator

Thank you.

The next question is from the line of Rishi Vora from Kotak Securities.

Please go ahead.

Rishi Vora

Yes.

Hello, sir.

Congratulations on good set of numbers.

My first question is pertaining to EV segment.

Can you just throw some light on how currently you are seeing the demand trends given the reduction in the FAME subsidies?

And also in your order book, can you broadly give us indication on like what amount of order book is from the incumbent two wheeler OEMs and what part would be from the new age OEMs?

Sunil Bohra

So you see, first of all, very difficult to comment on demand.

And I think you would have seen consistently we don't comment on industry volumes, what is the kind of penetrations or volumes etc. We don't try and guess our customers.

But in terms of the EV order book, remember, we normally don't comment on order book also, but we have started commenting on EV order book because there was a request from every corner to do that.

So I would request not to further ask to split that information.

So I think even this information we have been discussing internally as to how long we should continue to give.

And if you all of you are okay, I would at some point, I would like to stop that also, because this does not give a full picture of the organization.

Because we are today almost a INR20,000 crores organization.

And aspiring to become multi fold here.

And when I give only this EV volume, I'm commenting on only a fraction of the total business.

So which might be okay, which might not be okay.

So even we are sort of trying to debate ourselves as to how long we continue this.

But my humble request, please not push us to give a further split of these numbers.

Rishi Vora

And just on the gross margin side, we have seen some uptick in the base metal prices recently.

Obviously, our alloy wheel business will have some dependence on Aluminum.

But apart from that, which would be major commodities for us?

And are we seeing any inflation currently in those elements?

Sunil Bohra

So this is part and parcel of life.

Yes, you are right.

Recently, Aluminum prices have seen a spike.

But most of our businesses, during this commodity high period post COVID, I think three years back, we have tried to align all our contracts with the customers with the annual price escalation quarterly or half yearly price escalation clauses.

So on a full year basis, almost 95% gets passed through to our customers.

So that is not any concern for us.

So if prices goes up, we try and collect from customers.

If prices go down, we share with the customers.

So from that perspective, I think we are pretty hedged.

Rishi Vora

This is at that last data question, what would be the full year revenues for four wheeler and two wheeler alloy wheel business?

You might have shared, but I just missed that?

Sunil Bohra

For four wheeler and two wheeler alloy wheel business?

Rishi Vora

Yes, revenues, full year revenues.

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Sunil Bohra

Okay.

So two wheeler alloy wheel business full year revenues is around INR670 crores.

And four wheel is roughly around INR1,350 crores.

Moderator · Conference Operator

Thank you.

The next question is from the line of Nishit Jalan from Axis Capital.

Please go ahead.

Sunil Bohra

Yes, just to correct the number, which I have given INR1,350 crores was for Minda Kosei only.

Yes, Nishit, sorry, go ahead.

Nishit Jalan

Yes.

So congratulations on good set of numbers.

Mr. Bohra, my question is that you have grown so much faster compared to the industry growth.

We are market sharing the segments now, especially the bigger segments, the lighting, the alloy wheel, the tools, seating?

Moderator · Conference Operator

Yes, sir.

Your audio is not clear, sir.

May I request you to use your handset, please?

Nishit Jalan

Yes.

My question was that you have grown ahead of industry and across almost all segments over the last few years.

So just wanted to understand what would be your market share across different segments now?

Alloy wheel, lighting, seating, and maybe sensors and controllers.

I would assume you're very small right now and there's a lot of growth potential.

So how are the market shares in these three categories, in both two-wheeler and four-wheeler and how it has moved in the last three years or any data point you can give us on this would be very helpful.

Sunil Bohra

Yes.

So the market share in four-wheel, alloy wheel is over 40% as we stand today.

In terms of market share for two-wheeler, we are roughly at around 15%, 16%.

We are just 6 million and I'm annualizing the capacity, not actual sales for 2024.

6 million on roughly 35 million kind of consumption.

We will be roughly at around 15% market share because I'm almost running at capacity for two- wheeler alloy wheel business.

In terms of lighting, two-wheeler, we are roughly around 25%, 26% and four-wheeler, we are roughly around 16% to 17% now.

Nishit Jalan

And seating, you mentioned you are above 50% in both the categories right?

Sunil Bohra

No, Seating, we are above 50% primarily in CV/ OR, not in the two-wheeler.

Nishit Jalan

Okay.

And you just mentioned that one question was that industry leading passenger vehicle OEMs are talking about a very low growth in the passenger vehicle industry this year.

Even Triumph has talked about only about 2%, 3% kind of growth.

Are you seeing any such slowdown in the volumes, industry volumes or on the production schedule?

So, what would be your view in general about the industry growth?

Sunil Bohra

So, as I said, Nishit, we don't comment on industry volumes, but I can say what volumes we have been guided by the customers to plan for 24- 25.

And they tend to be a little low in PV segment, which is 5% to 7% and for two-wheeler segment, it is 7% to 10%.

But as I said, these are guidance from our customers to be prepared with the capacity.

Now, whether how much actually will happen, I think our customers are best placed to respond to that.

Nishit Jalan

Correct.

And just one number I missed out, what did you talk about the FY’25 capex?

Was it INR850 crores per project capex and INR450 crores maintenance.

Is that correct?

Uno Minda Limited May 23, 2024

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Sunil Bohra

Yes.

Nishit Jalan

So, total INR1,300 crores?

Sunil Bohra

Yes.

INR1,300 crores to INR1,400 crores, yes.

Nishit Jalan

Okay.

Thank you so much.

Sunil Bohra

Thanks, Nishit.

Moderator · Conference Operator

Thank you.

That was the last question for the question and answer session.

I would now like to hand the conference over to the management for closing comments.

Sunil Bohra

Thanks, everyone.

So, 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.

Moderator · Conference Operator

Thank you.

On behalf of Uno Minda Limited, that concludes this conference.

Thank you for joining us and you may now disconnect your lines.