Samvardhana Motherson International Ltd
NSE:MOTHERSON
Earnings Call Analysis
Q3-2024 Analysis
Samvardhana Motherson International Ltd
Samvardhana Motherson International Limited (SAMIL) reported a powerful performance for the third quarter in the fiscal year 2024, attributing the success to strong growth across all business divisions within the automotive industry. The company saw revenue soar by 27% year-on-year to INR 25,700 crores and EBITDA surged by 42%, reflecting the effective execution of their strategic plans and seizing market opportunities. In addition, SAMIL achieved a spectacular 61% year-on-year growth in normalized net profit, reaching INR 733 crores.
Despite robust growth, SAMIL faced challenges like hyperinflation impacting the reported PAT by approximately INR 190 crores, specifically in operations in Argentina due to significant currency devaluation. The company is actively engaged in discussions with customers to navigate the situation effectively. Additionally, global events and inflation have created headwinds, although stabilizing energy and commodity prices have provided some relief.
To bolster its market position, SAMIL completed three significant acquisitions in the quarter - Dr. Schneider, Deltacarb, and Symbiose. These acquisitions are seamlessly integrated and have substantially contributed to this quarter's revenue, adding around INR 4,000 crores and an EBITDA of INR 410 crores, which aligns with the company's growth strategy.
Acknowledging India as a crucial market for future growth, SAMIL is establishing 11 new greenfield projects to meet the increasing demand from the automotive and non-automotive sectors. The majority of these projects are expected to become operational in the fiscal year 2025, showcasing the company's commitment to long-term growth in the region.
While the company has pursued substantial inorganic growth through acquisitions, it has maintained financial prudence by reducing the leverage ratio from 1.9x to 1.7x. With further reduction to 1.6x expected by year-end, SAMIL is confident in its liquidity position, ensuring a balance between expansion and fiscal responsibility.
SAMIL is dedicated to boosting operating performances across various divisions. Growth metrics excluding the new greenfields and M&As have improved, and while some targets have not been met, the company anticipates improvements as they tackle emerging challenges. The ongoing efforts in cost management, efficiency optimization, and customer trust are the key drivers behind the expected enhancement of future performances.
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Ladies and gentlemen, good day, and welcome to Q3 FY '24 Results Conference Call of Samvardhana Motherson International Limited. [Operator Instructions] I now hand the conference over to Mr. V.C Sehgal. Thank you, and over to you, Mr. Sehgal.
Thank you. Good evening, ladies and gentlemen. Thank you for joining the results conference call of SAMIL. I'm pleased to announce that the Board has approved, as a result for quarter 3 and congratulated the various teams. SAMIL has delivered a strong preference performance across all business divisions on the back of automotive industry having good growth across regions.
The leverage ratio has been reduced to 1.7x from 1.9x, having accounted for all the closed acquisitions. We are very comfortable with our debt and liquidity profile and the visibility to reduce further by the year-end. India is at the center of our extraction plans. We see a lot of traction coming for Automotive and Non-Auto businesses in India and to support with further growth, we are setting 11 greenfield in India.
Our focus and observations, prudent financial discipline and continued trust by our customers are demonstrated in our results. I will now hand over to Vaaman to provide further business insights and the team is here to answer your questions. Vaaman.
Thank you, Papa. Good evening, ladies and gentlemen. I'm pleased to announce that we have achieved outstanding results in the quarter, showcasing robust revenue growth and a consistent improvement in EBITDA. SAMIL reported revenue of INR 25,700 crores reflecting a Y-o-Y growth of 27% and EBITDA of about INR 2,400 crores, reflecting a Y-o-Y growth of 42%. Our net profit on a normalized basis is at INR 733 crores and has grown by 61% on a Y-o-Y basis.
The reported PAT has impact of hyperinflation, about INR 190 crores, particularly in our operations in Argentina, where the currency has significantly devalued from about [ MXN ] 200 to USD in March '23 to about [ MXN ] 800 to USD in December '23, resulting in strict controls by the regulators there. We are in discussions with our customers on the best way forward.
There's more information on this on Slide 9. Our performance is to be viewed against the backdrop of stabilizing macro indicators, with energy and commodity pricing showing visible signs of improvement. However, the inflation and the geopolitical conflicts continue to create headwinds for us.
The global Automotive production has witnessed good growth on an aggregate basis, 9% year-on-year, 6% quarter-on-quarter, with a quarterly run rate production of 23.9 million cars at par with pre-COVID levels. The developed markets are still behind about 10%, 15%. I think emerging markets continue to propel growth. Sequentially, there was a slower ramp-up by North American OEMs post the UAW settlement, had significant growth in the EU, albeit on a lower base and India coming of peak demand during the festive period.
In the third quarter, Motherson closed 3 acquisitions being Dr. Schneider, Deltacarb and Symbiose. The M&As that have been closed during the year are contributing meaningfully and are adding revenues about INR 4,000 crores in revenue and EBITDA is about INR 410 crores in this quarter. Happy to inform that the indication for all the closed M&As is going seamlessly and as per plan.
India has always been an important market for Motherson and continues to be a hot bed of new opportunities for Auto and Non-Auto businesses like Papa was saying. Most OEMs are building new capacities and to support the growth and aligned with the customer requirements, we are building 11 new greenfields -- 11 greenfields in India, which are in different stages of completion, and the majority of them will come on scene in FY '25.
There's more information on this on Slide 12. We are reiterating the CapEx guidance given in the last quarter of INR 4,500 crores plus minus 5% for FY '24. Given the substantial inorganic growth, M&A payout about INR 4,550 crores net of cash and CapEx for future growth, our leverage ratio had ticked up in the last quarter. I'm pleased to tell you that there is a reduction in this, bringing it down back to 1.7x from 1.9x, where we were.
We are also fairly confident as papa was saying, with the current visibility of this going from 1.6x by year-end. We are quite comfortable with our liquidity position with undrawn committed lines and cash of about INR 11,000 crores and incrementally committed financing for pending M&As. This provides us with sufficient firepower to continue to move towards our Vision 2025 targets, while maintaining financial stability. There's more information on this on Slide 11. We continue to monitor the growth metric by focusing on improving operating performances across our divisions and the red, yellow, green status of all our plants. Growth, excluding the greenfields and the M&As that are done in the current 5-year plan, has improved from 16% in the first half of the year to more than 17% in the 9 months. Even on a reported basis, [ Xeros ] is north of 15% as of 9 months FY '24. This is short of our target, but we'll only improve from here as we move.
Our performance is a testament of our hard work and trust by our customers, and we will continue to build on this momentum. With this, I would like to conclude and open the floor for any Q&A.
[Operator Instructions] First question is from the line of Siddhartha Bera from Nomura.
Sir, first on this modeling, which you said has been an issue in terms of the vehicle OE mix being weaker in the quarter. Just wanted to clarify this impact only the SMR vision or module segment or there is an impact, which is there in other segments as well?
This is Vaaman here. Thanks for that question. Of course, the larger impact is on the International business because the share volume is much larger. But just so that I think we still maintain that the long-term trajectory, will be more favorable towards these trends that we have spoken about before of premiumization, the higher level of cars and the transfer that will happen from one type of engine to the other. But it's just happening at a much slow pace, and there will be variations in the quarter. So it has dipped a little bit. We still believe that the long-term impact will continue on the trend that we've seen over the last, I think, couple of years, albeit at a slower pace. The good news is that we are fully supplying to all the different models. So where you see one thing go down, you see growth in the other sectors, and that's how you're seeing still growth in the overall performance of the company. I hope I was able to answer.
Yes. Sir, a follow-up on that is that, I mean, if you look at the profitability, clearly, I mean, it has been much ahead of what we would have expected and I mean, given the weaker mix that was also a surprise. So can you possible to indicate whether I mean we can see sort of the sustaining or improving going ahead and does this also factor in some of the cost pressures, which you have highlighted on the labor side and other areas in the quarter?
Yes, thanks. Look, of course, it's been a challenging quarter, I would say, a challenging year, right? I mean there are multiple impacts that were happening with geopolitical rate increases, commodity moving. So I think, one, of course, we are grateful to the customers for their support and help as well as we go through these things and try to discuss with them the different impacts. And of course, the team's hard work to continue to focus on reducing the cost, improving the efficiencies and delivering the performance.
So it is kind of a mixed bag. I think there are new challenges that we saw in the last year. But like I said at the start of my speech as well that we're seeing more stability. I think the worst is behind us. Things are stabilizing and we have reached that new normal that we've spoken about in the earlier calls. And that is, again, helping us to now build efficiencies and show you improved numbers. I think, as the state continues to stabilize, we should have even better performance from here.
Got it. And sir, one last question is when you have indicated the incremental revenues from the new acquisitions in the quarter than the profitability. The biggest one was Schneider. And if I look at the profitability is close to 10% probably in the quarter. So Schneider, I remember was acquired at maybe close to 0% margin. So are we already close to double digits for that entity? Or am I reading it correctly or just needed your clarification.
Yes, I think you are listening to everything, so that's good. But should observe the thought of how we do acquisitions, right? We are -- we look to pick up assets that are performing poorly, work together with the customers to create a plan, increase operating efficiencies, and we enter the assets already with a game plan of how to improve it.
So that's obviously playing out. Our plan is under execution. The teams are over there that are making sure that this asset continues to grow from here, not be in the financial condition that it was. And of course, it's all part of the plan that we had put into place, when we were going to acquire that asset and to turn it around, and that is playing out. So the teams are doing quite well and ahead of their target.
Got it, sir. Sir, last question, if I may. We have seen interest costs continuously going up. So if you can guide around that the debt level is also coming down like you have guided, what should be the sustainable level of interest cost we can see going ahead?
Hi Siddhartha, Kunal here. So look, there is a function also of our low-cost debt getting refinanced at the current rate. Which is what is driving this delta that you are seeing, plus there is the whole Argentina net monetary position, which is also lying in the interest cost right now. We hope that the Argentinian pieces, we are able to solve along with the customer sooner than later and should not be an ongoing feature forever. The rest, as I think we deliver, you should be able to start seeing some of the reductions that will happen on the interest rate side as well. Having said so, to bear in mind that we still have a INR 300 million bond payout coming due, which is a 1.8% bond that will be coming due in June. So when you adjust these factors against the current rates, obviously, you may still see some rise on a quarter basis. But on an average yield on the debt, you should be able to see a reduction.
Next question is from the line of Amyn Pirani from JPMorgan.
And nice to see the ROCE number on a reported basis also starting to improve. My first question is on the wiring harness business. Very strong improvement on EBITDA as well. So first a clarification is a large part of this driven by PKC? And the reason why I ask this is because that business also has a lot of volatility because of the exposure to China. So how should we think about this going forward?
This is Pankaj here. So well, this is all around. So this is a total number of the whole wiring piece, including [Technical Difficulty] India or the PKC or MWSI or other subsidiary companies in the Wiring industry. So you would have seen that in the wiring space, yes, there has been improvement because the business was set in the past with the rising costs and also supply chain issues, which have been getting normalized and improvement in the performance of the cross. PKC does have some business in China. I mean, this is not the largest piece of business because our larger pieces are in Europe and in Americas. But we have seen improvement in China as well from the past. So this is all around, all across improvements which have been done.
Okay, okay. And just on the impact of the risk fee, you have mentioned as to how things were looking in 3Q, but I'm getting -- they have become more problematic as this quarter has gone by. So just for our understanding, in case freight rates were to move up massively because of this, how does the current arrangement with OEMs work in terms of whether it is borne by you? Or is it a pass-through? And are there discussions because you're already having a lot of discussions with the OEMs on a lot of cost items. Is this something which is an extra thing? Or is there a pass-through here already incorporated?
See, generally, freight costs, depending on the different contracts with the customers, because if we are procuring something which is directed by the customer, of course, is the pass-through. Whereas if we are delivering certain products to them, in many cases, customers have an arrangement, where they pick up the products and they pay for the freight. So again, in a way, it's a pass-through. But where we deliver [indiscernible] costs and these kind of things get discussed because we work in a transparent and a trustworthy way with our customers.
So these are issues which may not be part of the contract but they comment their discussion. So there are 2 aspects to it. One is that the cost of the shipping goes up as the routing exchange and also the lead time of the products, which are to be delivered or imported into different geographies, they get impacted, which were passing through the Red Sea.
Okay. So just on that last point, are we seeing a significant...
Just one inclusion. Most of our production is taking place close to where the customer is. So it wouldn't be too much really. Pankaj, if you can elaborate?
That's true, so most of our business is located in the geographies where the customers are. So that's how we have always operated. So it is just to mention that probably that there are issues, which can happen because of the Red Sea, but majority -- I mean, more than 95% businesses very close to the customer's location. So that doesn't get hampered in action. But if it leads to -- on an overall basis, commissions are as of now, we don't see any issue in businesses, which we are doing close to the customers.
Next question is from the line of Jinesh Gandhi from Ambit Capital.
My question pertains to this clarification on revenues of acquisition from the quarter up to [ INR 2,000 ] crore. This includes Dr. Schneider, as well as, SAS Auto and other acquisitions done in the second quarter, right? That's for all the acquired in the current financial year and not just the 3Q, not just assets acquired in third quarter?
That is right.
Got it. And secondly, with respect to this rate fee issue. So while obviously freight rates and those things will be volatile. But are we seeing any impact of this from our efforts to normalize inventories, which has started to show some results over the last few quarters? Are we seeing that getting impacted?
Look, Jinesh, right now, we are not seeing an impact. I think it is still muted. Having said so, obviously, if this becomes very volatile, this is the natural impact of saying it, then we have to keep a higher inventory level to take care of any supply chain volatility. But [indiscernible] we should still be deleveraging on the working capital side.
Next question is from the line of Gunjan Prithyani from Bank of America.
I have a couple of questions. Firstly, on the comments that you made around during the [ low ] cost debt getting refinanced. I think this is something that you will see a lot playing out through the market, where everybody is seeing this refinancing happen now. In that context, are you seeing a lot of opportunities of M&A come up in the market? And should we expect this momentum that we've seen in the last year or so on acquisitions from your side, that should hold up this year as well?
Look, fingers crossed, I mean we will only do acquisitions which the customers really tell us. If seeing the trend that is happening, I think what you're seeing is fairly accurate. There should be a lot of opportunities coming our way this year. But like I said, we don't wake up in the morning and try to hunt for companies with issues or something like that. We are patient, we will follow the customers lead, we only do acquisition the customers beheld. But yes, it looks like there will be a lot of opportunities coming this year.
Actually we guided them at [ $36 billion ] for the end of next year. We think that is because there is going to make lot of change in description?
Sir, I missed that number, sir what is the guidance for?
So that's our 5-year target, which we had said in 2020, that we would like to be a $36 billion company. So we are hopeful that we get opportunities to get there this year for the remaining bit that's still there.
Okay. Got it. And just -- if you could also talk about this human acquisition that you did in December, I think it's a very different segment than what we've been doing so far. So some color around that will help. Is it like a new segment that we're looking to scale up?
So, my name is Rajat Jain. I'm heading the Vision Systems so and so. So yes, in a way, you are right that it is an expansion into a new segment. So Australia, as you would know that there is no automotive manufacturing in Australia anymore. But it's a very thriving market for import cars and then also for the dealer shipment. So this is a company which works very closely with OEMs and creates the kits for dealer shipments. So as the cars get imported, they are all going through the dealer shipments for site conversion, for tailor footing for all the factor -- the factorization that happens. So all of that then is coming as new additions through this company.
And then they are also growing into the same business in other markets. So they are gradually going into South Africa. They're also going into U.S., American markets. So it is still a very small setup, but yes holds a very high promise in the future.
Okay. Got it. The second question I had was on the start. In your presentation, you talk about onboarding of new customers start of vertical integration. Can you just update sort of update us more on what's happening at SARS -- SARS and how should we think about the both the revenue ramp-up that you all had called out and the margins there, how should they improve factoring that vertical integration is happening, a little bit color around one -- now that the company, you've integrated the acquisition into -- how you've integrated the acquisitions of some color around that?
Sure. So just I just want to add that Lumen's acquisition is almost 30% is running hard, if I'm not wrong, right Pankaj?
Yes, sir. So there is a lot of things which come from group's strength, which we bring into this acquisition.
Sorry, keep going.
So I just take a last question on the strategic side and Kunal will maybe will add a little bit on to that for the numbers. Look, SAS is very, very important for us because they are [indiscernible] 0.5 fully managing all the assembly, all the suppliers and delivering the entire cockpit, dashboard for customers in global locations. And I think with our footprint, manufacturing capability and our customers thread that allows us to really take a full solution to the customers all the way from designing, manufacturing, assembly and supplying just in time, just in sequence, just in line to the customers for that. So of course, integration was the first step, which has been completed. Very pleased to announce that it's gone exactly as per plan. The customers are also quite happy. There was absolutely 0 disruptions in supplying to the customers.
On top of that, now we can go to the customers with a complete solution, but not just obviously the assembly, but that SAS was doing, but also the manufacturing piece, the design and engineering piece, which complements what we are doing together with SAS. So on new quotations, we are going to customers as one unit, giving them the complete solution to be able to do things that they were probably not able to get from Motherson Group, in the portfolio.
And that's what's really exciting that we can take a larger piece of the manufacturing, engineering and assembly side, and the customers can focus on what they do best is selling their cars. And that's already started to play out. We've already going to customers, bidding on new programs. So hopefully, that should show color in a couple of years, once this program wins happen and the launches happen. But it's a really exciting moment for us to integrate them and add another level of, let's say, offering to our customers. And as rate been welcomed by the market. And like I said, SAS has the opportunity to bring in new customers from the Motherson fold and our Polymer division has now the capability to deliver the just in sequence, inline complete cockpits, like we haven't done before. So that's on the strategy side, do you want to add on the numbers that...
Gunjan, I'm presuming the numbers are clear on Slide 9, we have highlighted both what the acquisitions are delivering. All of them are margin accretive and profitable as it stands in Q3.
Got it. Okay, last question, if I can squeeze a little bit, the PKC outlook, given that there's still -- you get exposure to U.S. and Europe's truck side. Is there anything that we are reading from our customers that things may be slowing down on -- for this year on the truck outlet both in U.S. and [ Canada ]?
See the outlook which we had is that in Europe, there has been some softening of the demand may happen. But in U.S. at the moment, the demand is quite strong as it was before. So it continues on a strong fitting in that sense as of now.
Next question is from the line of Pramod Amthe from Incred Capital.
So following up on the same SAS [indiscernible] continue that it's a large piece of your top line, you have achieved in the first quarter itself 11 % margin looks like. Is there any one-off or book here? And what the run rate for margin expansion because if your margin accretive business now versus when you acquired it?
So SAS was always a profitable business. So I'm not sure where that comment is coming from. But having said so, yes, I think we've been happy with the performance of the assets. And hopefully, as it gets transformed under the Motherson scheme, where we can add a lot more components to it, a lot of customers to it. And also learn from it. I think at an aggregate level, we should be able to synergize very well with the asset.
The early stages of vertical integration has already kick started, so it does augur well to how the asset can play out as we move ahead. I think having said so, I think the business has a degree of volatility that will happen. So I would not suggest to start looking at that on a very quarter-on-quarter basis.
I think every business has its own nuances and might be better off to give it over a, let's say, a period or at least a few quarter period rather than just look at that one quarter and [indiscernible] things out. So there is no one-off that exists in this quarter, the one-off of Argentina that is part of SAS is anywhere been called out separately as you would have seen. When it comes down to the other assets, as I said, it's all margin accretive, when Dr. Schneider was brought in we had highlighted that it would be profitable from day 1. And I think the team has done well to deliver that. We continue to work on it to try and build further synergies on this and hopefully improve the performance from here on. So right now, I withstand all the assets that we have assimilated as on date are all profitable. .
Next question is from the line of Basudeb Banerjee for ICICI Securities.
First if I look at 2Q interest [Technical Difficulty] increase of almost INR 130 crores, INR 140 crores. So out of that, INR 122 crores is [Technical Difficulty], am I right?
That is right. The large sum case is driven of the Argentinian fees. The ForEx loss is associated with that. Yes.
And this minor increase is because of the incremental [indiscernible].
That's right. So if you remember, we have a INR 2,000 crore NCD, which has been paid down in September and the new financing is obviously at a much higher cost. So that's the larger piece of the delta.
So the Brazilian taking one-off and won't recur for the coming quarter?
Sorry, but we could not hear you well.
The Argentinian, the valuation cost is one-off, is that quantum of interest payout won't happen for the next quarter?
That's right. Just to be clear, this is still right now noncash in nature. It's not that the -- there is any payment of ForEx loss that has been realized. It's done on a mark-to-market basis. And obviously, we are working with the customers to try and find a solution for it. Right now, the Argentinian regulation does not allow us to pay the vendors. So no import side being allowed to be paid. And hence, that's the reason why the mark-to-market on the payables is causing this product flow.
Second clarification against the reported EBITDA improved INR 69 crores, impact of Argentina, which is almost 3% of EBITDA. So even the reported 9.2% actually, EBITDA should have been 3% to 4% higher on an adjusted basis, am I right?
That is right.
Is in question revenue due to [Technical Difficulty] Q-o-Q increased revenue for [Technical Difficulty] 3,000-odd crores from INR 1500 crore to [indiscernible] . And correspondingly, reported depreciation increase is around INR 150 crores Q-o-Q. So this rise has been definitely reported Q-o-Q [indiscernible] higher inorganic revenue ticking in P&L or [indiscernible].
I could not understand the latter part about this. So I captured the part...
INR 70 crores of reported [Technical Difficulty] last quarter is now INR 1,000 crores as of now, so this whole increase is because of the higher inorganic revenue coming into periods and [indiscernible].
That's why that together with some of the -- as you understand, there is a whole PPA accounting the purchase price accounting. Where some portions of the acquired assets are depreciated the intangibles, the customer received the contract, et cetera. So that piece also enhances the depreciation and amortization fees.
So any part of this quarter you have the CN amortization is just one-off or it will remain at this level?
No. There is no one-off. This will continue. What will happen is over, let's say, 3, 4, 5 years, it's depending upon which are our asset and what the PPA adjustments are over next 3, 4, 5 years, these will all die down and then it becomes normalized to the book value of the assets. So different assets will follow a different trajectory there. So you may see at an aggregate level, some change, but there is no one-off in this.
And last question is roughly INR 4,000 crores of incremental [indiscernible] revenue just some $2 billion. So Yachiyo plus Schneider plus [indiscernible] other small ones, how much one can assume the broader incremental inorganic revenue. Basically, I wanted to understand how much is left on a recurring basis to come into your quarterly P&L?
So if you're asking about the acquisitions, which haven't been closed, we have Yachiyo, which is the largest one, which is yet to come in. We have [ Sam], ADI industries and [ women ]. I think these are the 4 which are left. If I remember right, I think altogether we would be round about slightly more than INR 1.2 billion, INR 1.3 billion. That's the amount 1.1-odd billion, that's the amount that is yet to come in from the acquired assets.
Having said so, among the acquired assets this time round, for the quarter, the full 3 months of SAS was there, the full 3 months of Dr. Schneider was there, which are the 2 large ones, Saddles, with the [indiscernible] call has been now there for a few months. Delta is the only one which is therefore just a month or so, but that's a much smaller asset.
Understand. Will it be right to assume that Delta INR 1.2 billion to trickle down fully in Fiscal '25?
Yes, for the full year, yes, it will start moving in absolutely.
[Operator Instructions] Next question is from the line of Vivek from JM Financial.
Sir, my question is on the arrangement with [ BL ] Crystal. If you can share your thought process around this arrangement and what is the potential that lies ahead of this arrangement?
Vaaman here. Look, in the last 5-year plan, we were very clear that while we will continue to focus on the mobility and the Automotive business, we will also look to diversify the business and use our strengths in engineering, manufacturing, where we have other opportunities in other industries. That's why we set up complete teams to look at Health Care, again, manufacturing of products, logistics.
And as we were building up these teams at the Aerospace and Defense, of course, as we have continued to make progress, and we know there is a big push in Make in India and a lot of new customers are coming in, new industries are growing on the manufacturing side and Automotive being -- having a very strong reputation and capability in delivering highly engineered products. I think this was an opportunity that came to us for a partner and deal to make products in the consumer electronics space.
We had a meeting of the minds, and a good partnership has been started, and we're going to obviously also try to grow in the Consumer Electronics space. So this will continue to diversify the revenue stream, give us opportunities of growth, when perhaps there are difficulties in some other industries. This will continue to grow and bring in additional opportunities for our people.
Any time lines for this? For this arrangement to see movement in terms of product and customers?
Look, we will come back to you. We've just signed the -- the deal with the partner over there. As we start to get into that, in fact, putting in the capacities, able to come back to you and tell you a lot more of what we are doing over there.
Currently bound by confidentiality contracts and what we are mostly trying to do. But rest assured, it's a very positive development. We feel it's an exciting revenue stream for us, coming down in the future. And definitely, we're already start to show in about this -- in the new year, perhaps in a small way, but grow up fast as we are successful as a partnership. So please stay tuned, and we'll come back with more color on it, once I have stuff to share.
[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. V.C. Sehgal for the closing comments. .
Thank you, I think a lot has been said. Vaaman, I give it to you to do the closing comments, please.
So once again, thanks, everybody, for their time to come on to the call and ask all the questions. As always, we are always available to answer any follow-up questions. The contacts are there on the website. Please feel free to reach out to any one of us. We look forward to your continued support. It's been a lot of hard work put in by the teams. And this being the last quarter of the year, definitely, all the teams are focused on finishing strong and entering into the last year of our 5-year plan.
So, please stay tuned. A lot of exciting updates coming up and look forward to speaking with all of you in the next quarter. Thank you so much. All the best. Bye-bye.
Thank you. On behalf of Samvardhana Motherson International Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.