Talbros Automotive Components (NSE:TALBROAUTO) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Q2 and H1 FY 'twenty seven Earnings Conference Call of Talbros Automotive Components Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

0:26 Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company, which are based on the belief, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance, and it may involve risks and uncertainties that are difficult to predict. I now hand the conference over to mister Anuj Talbros, Managing Director of Talbros Automotive Components Limited. Thank you, and over to you, sir. Good afternoon, everyone, and a very warm welcome to our earnings call for quarter two and H1 of FY 'twenty seven. On the call today, I'm joined by Mr. Naveen Tunaja, our Director on the Board, our Group CFO.

1:11 We're also joined by Investor Relations Advisors, SGA. The results and the investor presentation have been uploaded on the stock exchange and the company website. I hope you all have had an opportunity to review them. Before I take you through our performance, I'd like to spend yes, I was just talking to you that I've and this is our earnings call for quarter two and H1 of FY 'twenty seven. I'm joined on the call by Mr. Naveen Joneja, who is the Director on the Board and our Group CFO. We also have with us SGA, our Investor Relations firm for Mumbai. The results and investor presentation have been uploaded on the stock exchange and the company website. Before I take you through our performance, I'd like to spend a moment on the broader industry landscape.

1:59 The Indian automotive industry delivered a record performance in Q2 FY 'twenty seven. Domestic automobile sales grew 18.2% year on year to 83.88 lakh units in the July to September quarter, with passenger vehicles, two wheelers, three wheelers, commercial vehicles, all reporting their highest ever second quarter sales. Demand continue to be supported by GSE rationalization, improving consumer sentiment and a healthier rural economy. The passenger segment led the growth with sales rising 30.7% year on year basis to 13.61 lakh units for quarter two FY 'twenty seven. Utility vehicles grew 34.2%, while passengers grew at 25%, reflecting both continued demand for SUVs and a recovery in the entry level segment.

2:55 The two wheel industry recorded sales of 64.33 lakh units, a growth of 15.2% year on year, led by scooters, while two wheel exports rose 27.7% to, again, the highest ever second quarter level. The segment's trend is particularly significant for Talbros, given our market leading position for gaskets in two wheelers, where we're single sourced with a prominent OEM. The commercial vehicle segment also delivered its highest ever quarter two volumes with sales rising 28.7% year on year to 3.09 units, supported by government spending on infrastructure, freight movement and fleet replacement, while CV exports rose to 72.5%.

3:49 Simultaneously, electrical mobility continued to gain traction with electric passenger vehicle sales growing at 84% year on year to over one lakh units in quarter two FY 'twenty seven, while the next two wheeler sales grew around 80% to 5.899 units, taking the EV penetration in tubular about 11%. Talbros EV readiness position makes us a natural beneficiary of this particular segment and a change in consumer buying. Coming to our company performance, I'm extremely pleased to share that Talbros Automotive has delivered its strongest ever quarterly performance in Q2 of this year. Our total revenue stood at INR $2.67 crores for the quarter, a growth of 23% year over year.

4:41 Even at H1, our revenue stood at INR $5.10 crores with a growth of 19% year over year. At the EBITDA level, in quarter two, we came up with EBITDA of INR 47 crores, a growth of 32.8% at a margin of 17.6%, reflecting robust operational leverage, disciplined cost management. H1 FY 'twenty one EBITDA stood at INR 90 crores, again up by 28% year on year. Talking a bit about our divisions. Our Gasket and HCL division remains the largest and most profitable contributor to our business, accounting for 51% of revenues. In H1 of 'twenty seven, the division delivered revenues of INR $3.40 crores with a growth growth of 22% year on year with EBITDA growing 35% year on year to $2.63 crores.

5:40 Domestic revenues were led by the two wheeler and the commercial vehicle segment and benefited from strong OEM demand, higher penetration of premium vehicle platforms. We remain a single source supplier for five of our key customers, a testament to the trust and the quality standards we uphold. The Heat Shield segment continues to scale meaningfully with H1 twenty seven revenues of INR 35 crores. Our exclusive partnership with global companies for lightweight aluminum heat shield is exciting. These products offer value added features, including noise reduction, emission control, thermal insulation for new generation engines, including hybrids and EVs, making this futuristic product interesting for us.

6:26 Coming to our forging division. In H1 of 'twenty seven, the forging division delivered a revenue of 171 crores with a growth of 13% year on year and INR 92 crores in quarter two FY 'twenty seven, making its strongest quarter in recent periods, with EBITDA growing 19% year on year. As a one stop solution provider for hot forging with best capacity up to 200,000 tonnes. We offer comprehensive, comprehensive capabilities spanning die design, machining and heat treatment. Exports constitute approximately 57% of the forging division revenues with customers including JCD, Dana, Carraro, GKN, Timeline, Musashi and JLR. The INR 500 crores of new orders secured in the forging business include a significant portion for newly onboarded major European global OEM.

7:17 With the European OEMs consolidating the supplier base and India emerging as a preferred alternative to China, this structural opportunity for our holding division is larger than any point in our history. This is basically with a lot of Tier one European companies facing the heat of leveraged balance sheets, automatically the business is moving towards India. This could be a big growth segment for the company going forward. Coming to joint ventures, our two joint ventures continued the strong momentum, Maritime Talbros chassis systems reported an H1 FY 'twenty seven revenues of $2.26 crores, up 49% year on year with EBITDA growing 31% to 36 crores. Improved operational efficiency and higher volumes drove roughly during the quarter. Over 90% of revenues come from passenger vehicle segment and EV revenues now account for almost 5% of this joint venture.

8:15 As you know, we've also won a lot of body and white components for luxury carmakers in the overseas market. Coming to Talbros Marugo, a fifty-fifty joint venture with Marugo Japan reported H1 revenues of INR 86 crores, up 32% with an average of 37% to INR 10 crores. 90% of the revenues of this division come from the passenger vehicle segment. Coming to exports. Our exports remain a key pillar to our growth strategy, contributing over onefour of our revenues in H1 'twenty seven. We continue to see strong opportunities from the global supply chain shifts, as mentioned earlier to you, including our increasing outsourcing by OEMs and India's growth position as a manufacturing hub.

9:04 Recent trade developments, especially with Europe, should further strengthen this opportunity. While there are geopolitical tensions in the world and the ongoing war may lead to some temporary cost pressures, but inquiries remain strong, and we believe in Talbros having a very hedged balance sheet and a head customer base, we will be able to navigate these costs going forward. Coming to CapEx. Over the last several quarters, we have secured significant new businesses from both domestic and global OEMs across EV platforms as well. In line with the strong order book, we have invested about INR 41 crores in H1 of our planned CapEx of INR 103 crores for FY 'twenty seven. This CapEx is spread across the gasket division, heat shield and forging.

9:53 Coming to FY 'twenty seven and beyond. As mentioned to you earlier, company is now moving from a phase of order acquisition to order execution. Our focus is on timely delivery, ramping up capacities, maintaining global quality standards as we convert the strong order book into sustained revenue and profitability. Our focus will be on deepening relationship with existing domestic OEMs and onboarding new OEMs in the global market. We are well on track to deliver our guidance of 18% to 20% growth year over year organic growth for FY 'twenty seven, driven by new order commercialization, rising export volumes and continued share of increase with OEMs as well as we have added capacity to meet the same.

10:38 We're also looking and evaluating an inorganic growth opportunities. We plan to improve EBITDA margins going ahead on the back of operating leverage, product mix improvement and disciplined cost management. Our philosophy of being one of the most hedged auto comp players supplying across all vehicle segments, all powertrain including EV and across domestic global markets continues to serve us well. With that, I'd like to hand the call over to Mr. Tunisia, who will take you through the financial performance of the company. Thank you, Anuj. Good afternoon and a warm welcome to all the participants. As mentioned by Anuj, we are pleased to report a solid performance in Q2 and H1 of FY 'twenty seven, driven by both domestic and export demand across all our business segments.

11:24 Now coming to the consolidated financial performance. For Q2 FY 'twenty seven, total revenues stood at INR $2.67 crores as a niche, INR $2.17 crores in Q2 FY 'twenty six, up by 23% year on year. For Q2 of FY 'twenty seven, EBITDA stood at

11:45 INR 47 crores as a year 36 crores, up by 33% Y o Y with margins of EBITDA margin of 17.6%, up by 120 basis points year on year. As in Q2 of FY twenty seven stood at 33 crores, up from INR23 crores, a growth of 43% on year on year basis. Total revenue of H1 FY 'twenty seven stood at INR510 crores as against INR427 crores in H1 FY 'twenty six, listing a growth of 19% on year on year basis. EBITDA for H1 of FY 'twenty seven stood at INR 90 crores as against INR 70 crores in H1 of 'twenty six, a growth of 28% on Y o Y basis.

12:40 EBITDA margin remained healthy at 17.6%, up by 110 basis points on Y o Y basis, reflecting the benefits of operational improvements, cost management initiative and a better product mix. PAT for H1 of FY 'twenty seven stood at INR 63 crores as against INR 45 crores in H1 of FY 'twenty six, reaching a healthy growth of 39% on Y o Y basis. Now coming to the division wise performance. Let's come to the Gas division first. In the Gas C division, in Q2 of FY 'twenty seven, sales for the Gas C division stood at crore as it is INR143 crores in Q2 of FY 'twenty six, which was up by 23% on a Y o Y basis.

13:31 EBITDA for Q2 of FY 'twenty seven was INR 33 crores, which was up by 38% on a Y o Y basis. In H1 of FY 'twenty seven, Gastics sales stood at growth showing growth of 22% and stood at INR $3.40 crores as against INR $2.78 crores of H1 of FY 'twenty six. For H1 of FY 'twenty seven, six segments saw EBITDA of INR363 crores, which were up by 35% on a Y o Y basis. The Gasket and Rigid division continued to perform strongly during the half year, driven by robust OEM demand, increasing content per vehicle and higher contribution from premium and export platforms.

14:24 Now coming to our Ford division. Revenue in Q2 of FY 'twenty seven stood at INR 92 crore as against INR 75 crore in Q2 of FY 'twenty six, showing a higher growth of 23%. EBITDA stood at INR 15 crores in Q2 of FY 'twenty seven as again INR 13 crores of Q2 of 'twenty six, up by 19%. In H1 of FY 'twenty seven, total revenue of this division was INR 171 crore as well as INR 150 crore in H1 of INR 36 crore, up by 13% on a Y o Y basis. EBITDA of H1 of FY 'twenty seven stood at INR29 crores as compared to INR46 crores.

15:14 For H1 of FY 'forty six, a growth of 13% on a Y o Y basis. The company continued its growth momentum in the coming quarters. Now coming to our joint venture, Mirelli Talbros chassis system. Revenue for Q2 of the division for FY twenty twenty seven stood at INR122 crores as against INR79 crores, a growth of 54%. EBITDA for Q2 of FY 'twenty seven stood at INR19 crores, a growth of 31% on a year over year basis. For H1 of FY 'twenty seven, the revenue of the divisions stood at INR226 crores versus INR 152 crores, listing a growth of 40% on a Y o Y basis.

16:03 For H1 of FY 'twenty seven, EBITDA stood at 36 crores as a range of 28 crores, a growth of 31% on a Y o Y basis. Now coming to our large joint venture of Talbros Moreover, our private limited. Revenue for TMR business in Q2 of FY 'twenty seven stood at INR47 crores as against INR35 crores, a growth of 33% on a Y o Y basis. EBITDA for this division stood at INR5 crores in Q2 FY twenty twenty seven, up by 19% on a volume basis. Revenue of these divisions stood at INR86 crore in H1 FY twenty twenty seven as against INR65 crore, a growth of 32%.

16:51 For H1 FY twenty twenty seven, EBITDA stood at INR10 crores, which was up by 37% on Y o Y basis. Geopolitical tensions in the West Asian region led to an increase in our raw material trade costs. Profit going faster than revenue reflect the operating leverage in our business, a better product mix and our focus on cost. We have delivered this by the lobbying higher steel and volume labor and freight costs during the this half year. With a stronger order pipeline, healthy demand outlook and continued focus on execution excellence, the company remains confident of sustaining the growth momentum going forward.

17:39 And this is all from my side. Let's open the floor to a question and answer session.

18:11 We'll take our first question from the line of Deepin Shah from Six Senses. Congratulations on a very good set of numbers, pretty strong numbers this time. I had a couple of questions. Firstly, sir, on the Marelli side, we have been seeing that the revenue growth has been pretty strong in the 40% to 50% range. However, the margins over the last four or five quarters have seen a slight slackening.

18:43 So could you just give us some further insights on the reasons? And how do you see the margins spanning out from the current levels? You are right, the margin is a bit muted in this quarter. I think because we are ramping up the production of percentage business in a big way. So we have deployed extra manpower. What has gone wrong is my manpower cost has gone high. That is one of the reasons of little bit muted performance. We are aware that we have put extra manpower. So we are initially in the process of checking each and every piece physically so that nothing goes wrong. So I think now this phase is over. Now in the coming quarters, you will see top line going up, but the manpower cost is not going up. It will literally come down, so the margin will come back. It will come back.

19:34 Margin will come by 0.5%, 0.75%, nothing more than that. Sure. That's yes, that's very reassuring. And could you just give us some more insights in some of the new contracts, which you expect to start sometime in the fourth quarter or maybe the next year? Basically, wanted to get some more visibility on how the growth could be in the next year, maybe not giving exact numbers, but some confidence on the visibility that you have. Here, Marely has two businesses. One of the strategies has started, but not the way we wanted. There are initially some coming here and there. So in the first six months, we started from the month of June end. Since September, we did a sale of around INR 15.85 crores, and we expect the sales for the next six months should be around INR 25 crores in the business. And next year, it should cost INR 120 crores.

20:25 Now there are new business, we have GLL has also been started in this division in a big way because EV, they have started making our EV vehicle for where we have orders of EV vehicle. EV vehicles, some model have started, two, three models will start and then coming six months. So in the first six months, we had we expect this year, realized should be around INR 75 crores to 80 crores as against INR 47 crores, 48 crores of last year. These are two major steps happening in this business. Now the export business, our major in 40 division of this marine business, The CapEx is more or less in place. The price is arriving in the 24 crores by December end by December end, by the middle of December and December end, by January, it will start working.

21:16 And there are two quarters we are supplying to have to supply to Mareli. One is flanges and other is companion fanges and the other is, I just forget, start start up, set boxes. So this plan is, as already we have started with that, we're seeing 2,500 tonnes. We are starting the commercial production. We're starting the commercial production later on this month. And next month, we'll commercialize with more business start going. And from the last quarter, the other quarter, third month will also start going. So this year, we expect INR 10 crores to 12 crore of business, this business, which will be around INR 90 crores next financial year. So that is the status of the orders.

22:01 Okay. And sir, once again, coming back on the margins front, we have been able to deliver this 16.5% margin, I'm excluding the other income. So we've been able to deliver these margins despite higher commodity cost and higher freight cost. So assuming that the freight cost go down, is there a further scope for improvement in margins over the next twelve to eighteen months?

22:27 Sir, I will I will give you guidance. I'll I'll talk about the other income because I got not that. I'll talk about other income. My margin is around 17.6% for the six six months. I'm hoping that I will not... This margin will not come down in the next six months because my whatever the price increases trade, etcetera, 50% has been recovered and balance in the 14% to 35% to be recovered. In gasket, around 40% to 45% to be recovered. This quarter itself. So there is no pressure on the margin. It will be sorry. And we were trying, maybe the margins remain the margin the way they are, if not better, but we are absorbing the inflationary cost. But we also talk to our customers to get the pricing here.

23:15 So yes, margin will be good. We'll be able to maintain these margins. Right, sir. That's very reassuring. And sir, lastly, any further developments on the Marelli front, sir, on the parent side, if there is any further update? So no, we are in work in progress. We'll come back to you within one month, one and a half months of time. Okay? Okay. Thank you very much, sir. Good performance and all the very best. Thank you. Thank you. We'll take our next question from the line of Jiten Parmar from Aurum Edge. Please go ahead. Yes. Good afternoon, Anuj, Naveenji and everybody on the call. Wish you very happy Diwali and prosperous New Year. I'll just basically extend the last question which the previous participant asked regarding the Marelli situation.

24:07 Just... I just want to basically get a sense that, you know, whatever is happening with Marelli bankruptcy and all, does that affect... I mean, from the performance, it doesn't look like, but I just want your reassurance that, you know, it does not affect anything at the JV here? No, no, not at all. Not at all. The minority bankruptcy, as you know, which is in public domain is at The U. S. Ports. It doesn't affect the companies that are maybe based out of Europe or whatever, but I think the joint venture in India is not all affected. Perfect. Okay. Also, my... The question will be on forging. A forging division growth has been a bit low, and it's good to see that, you know, majority of the CapEx for FY twenty seven is towards forging. So are we expecting higher growth in the forging division?

25:02 And I mean, were there any issues which have been resolved or anything on that, if you can throw some light on that? You are right. First quarter was a muted growth of 10%. Second quarter, we gave a growth of 23%, okay? And next two quarters, this growth will be at the end of the year, that this deal will give a growth of more than 20% that I mean I showed you. I think operations shows... Resolved or more and resolved, the auction has come down. Now the machine has to be new for new CapEx machines are being under installed. The trade is under preparation. So other things are happening, but operationally, it's done much better. Now it's doing much better. And order book is quite strong. So you also see third and fourth quarter will be very, very good.

25:54 Okay. I I had also just heard the TV interview of Naveenji, and if I may just recollect, data center revenues from... In last year were 12 crores, and this year, I think it guided INR 35 crores. And next year is INR 60 crores. Is that Yes, around 50 plus, INR 55 crores. We expect around INR 50 crores to INR 60 crores in between. So is that from single customer or we are having multiple customers in that? And how are we tapping any new? The two main customers come in and we lost her. And third is definitely lost. Okay. Perfect.

26:39 Perfect. Okay. So come in America for this. Okay. Okay. Okay. Great. And basically, that that seems that there is some more margin improvement scope also. So that is good. Can you tell me a bit more about the Loham joint venture? What is that we want to do? And what are kind of the numbers we are thinking or the JV is thinking about, let's say, three years out? Sir, regarding the Loham, our product sample has been approved by two tire ventures, Apollo Tires and MRF, okay?

27:26 Now they are making the final product out of that sample, I think, and approved the process will be over within the next three to four weeks. Now Lohan team is working on a site where the project to be set up. Most probably, it will set in the South Of India. Firstly, they decided that they will buy the raw material, which is

28:11 have realized that quality of analysis also is a very, very important factor in meeting the finished product. Now we are working on it that we will buy a piece of land of 10, 12 acre. We set up our own perilous plant and on the evaluation, everything will do our own 100%. For that, they are identifying the plant and equipment, etcetera, etcetera. For which, they will submit us the plan in the next two months is the time line. The time line we expect by the middle of next financial year, we should be able to start commercial production of this. And the project cost will depend on the project cost, land, building and plant efficiency. Don't I can't give you a figure of... Which made a better position by the first quarter of this financial Yes, last quarter of year. Fair this enough. Fair enough.

29:04 So export currently, I think, was 26%. What what would be the export contribution next year? Last quarter quarter. Okay. Over six, 26.5%. Last quarter, it was 28% alone last quarter. With that new order book coming in with the GLL performing much better, we expect that this percentage in the last quarter should be around 30%. Our EBITDA is true, primarily order of four gs will be in full force when JLR next year will be in full force for the brand. Strategies will be going very, very high. So we expect by end of next financial year, FY twenty eight last quarter, it should be around 35% plus.

29:54 Okay. Got it. Okay. So, I think I'm done with my questions. Wish you all the best. Thank you, sir. Happy rest of season to you. You. Thank you. You. Before we take the next question, we'd like to remind participants to ask a question. Next question is from the line of Harshil Solanki from Equitry Capital. Please go ahead. Hello. Good afternoon, team. Afternoon, team. Yes. So I wanted to understand on our order book, how are we getting orders via customers choosing us, and how are we able to replace existing vendors and so on? So if you can throw some light on that aspect. Because I think the main driver of our growth is the order book which we have. So if you can help us in that.

30:56 Yes. Regarding the order book, we have announced orders of INR 1,000 crores for the last financial year. In last financial, we announced any order book in this financial year. Regarding, we are in the process of execution of those orders, as we have been told that our order of, I think, 150 crores, 700 crores of landed has started. The result, you will see much better result in end financial year. My order of Kia has started already from May June of this financial year for the our this issue. Our Marelli order of INR 500 crores and some of major orders, I'm not a small small order. INR 500 crores of mainly order will start kicking off in the first quarter last quarter of this financial year from just beyond, but it will be put forth in next financial year.

31:48 That will take plus other small small orders are there of 100 crores, but different interim orders are there for the company's business, for Mahindra business, for other businesses, plus the increase in the demand of the existing products. It will be taken care of next financial year also, we expect that. And we are in the process of closing other orders also. We have not announced. We have closed a lot of orders in that first nine around last six months. We are just waiting, like the figure comes maybe a little bit weaker decent and we will announce those orders, which will be implemented, INR27 crores, INR27 INR29 crores. Also I want to add to your other point, we are adding new customers with our technologies.

32:34 We're also there's a lot of vendors in Europe who have got cash balance sheets, and that's a big plus for us. So the customer like Jaguar Land Rover, JCP, maybe in the future, other carmakers in Europe, many more coming our way. So that's a big sign with the China plus one strategy, India stands to gain the most. And as Naveen mentioned, over the next two or three years, you'll see a higher export percentage in our books, right? So that's also our networking constantly with OEMs worldwide and in India. Okay. Okay. Understood. And in the aftermarket side, do you have any plans to increase because that is a very small portion of our revenues?

33:19 Do you have any strategy to increase that, please? Yes. Don't see this aftermarket. This is Indian aftermarket we report. There is a in the export segment, there is very big aftermarket of INR 50 crores, INR 60 crores for U. S. And Europe, which is reflected in export. Yes. So Indian aftermarket will grow around like 1015% will grow. But exports can double in the next three to four years. Export can double. Okay. That's about roughly, I think INR 40 crores, 50 crores, that will double also in the next two to three years. Next question is from the line of Jayna Madhurika from CJ Shah Family Office.

34:15 Please go ahead. Hello? Am I audible? Yes. Please go ahead. Yeah. Thank you for giving me the opportunity, and congratulations on good set of numbers. Had two questions. Wanted to understand on this, can you... Like, for the q two and h one y o y growth that we have seen spectacular growth, Can you split that into what was driven by the industry growth and what was driven by the new programs that was started in last twelve months? And also, if you could help me understand how much was driven by the raw material pass through and increasing pricings? The first question, how much driven by the new businesses, etcetera, I can give you ballpark figure.

35:04 In our gasket and heat sheet business, on the new part numbers, which have been coming to force is around 25, INR 40 crores is by the new part number out of INR $3.40 crores, around 108% to 10% in the gasketing chip. In 14, nothing. All the existing part numbers and because in joint Maruho, it's a volume game. It's Maruti done very well. They are 90% plus Maruti, so they are done very well. Plus there is a new part number also there, which is around 2% to 3%. And coming to the Marelli. Marelli are approximately are out of 200 something, around 10% to 12% from the new businesses they bought.

35:54 Regarding the question of how much is raw material increase, etcetera, it's very difficult to give you, but it's in gasket, it's around 2%. In '14, again, it's around 2.5%, 3%. Moralee, nothing because we have we had the year two pricing increases. Moreover, it's about 7% to 8%. Understood. Thank you for answering. Next thing, I wanted to understand, like, this... For... In q four twenty six, I guess, you you had alluded that $1.50 crores of new business was supposed to start in FY twenty seven. Does this number stand through even today or this has increased?

36:42 This is what the current direction we are getting. Larry, can you repeat the question? Please, please. New business, you said? 150 crores of new business was supposed to start in FY '27. Is this number true even today or this has increased given the traction we are getting? Hello?

37:34 Sorry, sir. You're not audible clearly. Can you just repeat the answer, please? Business will remain about 150 crores plus. Okay. Understood. And next is on the Porzing side. Porzing business grew 25 this quarter. And last two years, it was struggling because of multiple reasons. Europe slowed down. Then last quarter, we had a manpower issue. And also, the plant was not there. So this 25% growth that we saw in this quarter, this was majorly because of normalization of these issues is what I am understanding. So... And is this growth going to sustain in, like, next few quarters Ex of the new new orders, let's say, the Marelli ex of the Marelli order, would this 20, 25% growth sustain for us in the posing business?

38:30 Yes. I have that thought, but I'm telling you, in the next six months, we should have it against INR 150 crores, INR 170 crores we achieved this year. This six months, we should be touching around INR 200 crore in the next six months. Voice is there. Jayna, can you please mute your line? There's a lot of disturbance. I can say, is definitely a good growth. Last year, they were in the last quarter last as true, last year, the 14 sale was 150 crores. This year, it should be around INR 200 crores. Hello? Yes. Yes. And this is... Increased volume, number one, from the existing customer plus Marelli business will start from January in better way.

39:27 Some business will start November, December, but the main will start from January, February. Sir, is it fair to understand like given ex of Marilli as well, we would be growing at 20%, 25% and Marilli would be giving us like significant incremental orders beyond that existing ramp? INR 200 crores in next six months approximately, out of it really will be INR $8.10 crores, that's all. Understood, understood. Understood. Next is on the MTCS side.

40:02 More than 60% of MTCS growth came from the of the incremental growth that came in Q2 was driven by the export market. Was this because of JLR coming out of issues or and also talent is coming in maybe slightly or there were other reasons as well for this growth?

40:24 Because their customers are bought. Maruti performed very well in the second quarter. You know that. Percentage of vehicles then fantastic in the last quarter. Third is, slanted business, which was we did around INR 4.3 to 4.4 in the first quarter. It was INR $11.12 crore in the second quarter, Okay. And JLR. JLR, EV, they have started picking the material, very good performance of JLR in the second quarter. The all three all four have contributed.

40:59 Understood, sir. And sir, in the first question, you had said that JLR was doing somewhere around crores, INR50 crores last year and this year we are targeting INR75 crores, INR80 crores. Is this the... Yes. Is this is? This is in Marelli business. In the past six months, we have already done INR 40 crore of business with them. Okay. This is the Marelli business, JLR, Bodin White order. Yes. But in cashless business, it has started picking up because we are also supplying heat shield and some plastic components for the EV, their sales also start picking up.

41:46 Understood, sir. Sir, but like if you see the JLR, VIW order, volume wide order, total scale is about INR 90 crores. So when we say this INR $75.80 crores this year, like this includes multiple orders beyond the already disclosed one or... Yes, Because some these launch some two vehicles will be launched in the next six months. The full order will come next year. Sorry, sorry? That two more models yet to be launched by what we have orders in hand, yet to be launched by JLR. They will launch in the next six months, okay?

42:25 Understood. Impact all or everything will come in the next financial year. Understood. So this INR75 crores, INR80 crores should come in FY 'twenty eight? Yes. Understood. Understood. And lastly, sir, yes, those those are my questions. Yes. You. I'll get back in the queue for follow ups. You. Thank you. Next question is from the line of Varun Agrawal, an individual investor. Please go ahead. Hi sir, thank you for taking my question and congratulations once again on a very good quarter. My question is pertaining to FY 'twenty eight. We have good visibility on FY 'twenty seven numbers, but given the highest base, especially for Mareli, can we expect these kinds of year on year growth numbers to continue over the FY 'twenty eight period as well? I think we'll see 18% to 20% growth even next year.

43:18 Obviously, we are targeting to close at INR $4.70 crores. Next year, it should be $5.50 plus. That is the same. And then the group level also looking at a high double digit growth next year, 18% onwards. So a lot of as we spoke on the call earlier, a lot of new orders that are coming our way, coming to execution, that will also happen. Right. Okay. Thank you. And one question, an earlier participant also asked about the Marelli bankruptcy. Do we have any indication of, like, what kind of multiples we would be looking at? Would it be higher than the Nippon Liquef that we bought or would it be lower? We cannot speak on that, sir. We can't speak on that. But at the same time, I think your Indian operations will not suffer.

44:04 Okay. Understood. So no problem. Please wait for some time. Understood. Thank you. Thank you. Thank you. Next question is from the line of Atul Jopi from Prosperity Wealth. Please go ahead. Yes. Thank you for the opportunity. Sir, in the gasket and heating division, can we sustain 20% kind of growth that we achieved this quarter for FY eight? Sir, for this financial year, we expect a growth of 17% in totality for this division. Of course, we will be much better. We will be better than last six months of in this year, better, but the overall growth for the financial year should be around 17%.

45:02 Sir, what about FY '28, growth in the gasket and issue division based on that? Financial year, it should be around 15%, 16% again. Thank you. You. As there are no further questions, I now hand the conference over to management for closing comments. Over to you, sir. Thank you so much for joining the call today. Our focus is now on infusion of orders, ramping up capacities, delivering on our order books across all our divisions. India is looking good. We're getting more and more business from the overseas market.

45:38 Exports continue to be a focus area for us. And we feel that we have a strong year in '27 and continue momentum in '28. Thank you. Thank you. On behalf of Talbros Automotive Components Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.