S
Shivalik Bimetal Controls Ltd
NSE:SBCL
Shivalik Bimetal Controls Ltd
NSE:SBCL
Price:
595.5
INR
-1.15%
Market Closed
Market Cap:
₹34.3B
Add Note
Add Target
Capture your thoughts and set a target
Decide at what price you'd be comfortable buying and we'll help you stay ready.
Based on
Margin of Safety
0%
10%
20%
30%
40%
50%
Your Price Target
Linked to
current price
· In Buy Zone
Loading
Note attached
Choose the stock you wish to monitor with a price target
Popular Picks
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
Earnings Call Transcript
Other Earnings Calls
Ladies and gentlemen, good day, and welcome to the Q3 FY '24 Shivalik Bimetal Earnings Conference Call hosted by PhillipCapital India Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Napil Kanodia from PhillipCapital India Private Limited. Thank you, and over to you, Mr. Nikhil..
Thank you, [indiscernible] Good afternoon, everyone. On behalf of PhillipCapital India Private Limited, I welcome you all to Shivalik Bimetal Controls Limited Q3 FY '24 Earnings Conference Call. Today, we have with us senior management represented by Mr. Sumit Guman, MD of SEPPL; Mr. Rajiv Ranjan, Chief Financial Officer; and Mr. Kanav Anand, Head of Sales and Marketing. Without taking much of time, I would like to hand over the floor to the management for their opening remarks, post which we can open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Nikhil. Good afternoon. Welcome to the earnings call for Shivalik Bimetal Controls Limited, where we will be discussing our financial performance for the third quarter of fiscal year '24 and the preceding 9 months FY '24.
I'm pleased to have with me joining us for the call today, Mr. Sumer Uman, Managing Director of SES; and Mr. Kanav Anand, Head of Sales and Marketing. Despite facing moderated market demand, Shivalik Bimetal Controls Limited has demonstrated resilience in Q3 and 9 months FY '24. Our total income increased by 4.31% in Q3 FY '24 to reach INR 112.1 crores and by 8.88% over the 9-month period ending in FY '24 to INR 337.64 crores. These figures reflect our commitment to driving sustained growth and creating value for our stakeholders.
Our EBITDA of the 9-month period ending FY '24 rose by 4.4% to INR 81.03 crores, highlighting our continued focus on operational efficiency. Furthermore, our profit after tax improved by 3.56% to INR 55.64 crores, underscore the strength of our financial performance.
We also witnessed significant growth in our thematic segment in Q3 FY '24 and 9 months FY '24, with sales increasing by 22.22% year-year in Q3 FY '24. And 22.01% year-on-year in 9 months FY '24. This growth particularly in the Asia region positions us well in the global electrification landscape and reflects the effectiveness of our strategy initiatives. We are well positioned in India's energy sector transformation and continue to build on our forefront position in catering to domestic demand, particularly in the smart meter and switchgear opportunities.
While we encountered challenges in the Americas, particularly in the [indiscernible] category, we remain optimistic about the future. As global markets recover and demand rebounds, Shivalik is prepared to capitalize on emerging opportunities and drive sustained growth.
Looking ahead, we are confident in our ability to navigate evolving market dynamics and continue delivering value to our stakeholders with a solid cash position of INR 25 crores and INR 68 crores generated from operations in 9 months FY '24. We have the resources and ability to see growth prospects and enhance shareholder returns. In the light, we are delighted to declare the Board's approval of an interim dividend of 35%, that is INR 70 per equity share.
In conclusion, I would like to express my gratitude to all our stakeholders for their continued support and trust in Shivalik Bimetal Control Limited. Let us begin with our question and answer session.
[Operator Instructions] First question is from the line of Prateek Jain from Quality Investment Managers.
[indiscernible] Can you give me the split between the number of the overall 2-wheeler overall 4-wheeler?
Numbers that can you just average 4-wheeler or 2-wheeler, what are the number of fronts that will go into potential business...
It varies. So basically, it's not -- there's no one general answer to this because we could be supplying only one shunt and others could be part of other devices. In some cases, it could be 12 or 15 different components.
So it's -- there is no one fixed answer as to how many stunts should go into one. There are -- it's probably an easier answer to give for a 2-wheeler because the battery management systems are not multiple and there it's an easier system. So in most cases, there will be maximum 2 components in a 2-wheeler in case of. So for 2-wheelers, it's very difficult to give this, Standard answer on this.
And what is the realization for this front in 2-wheeler and wheel...
Actually, the 2 things are again interrelated. -- depending on the number of components, it will -- it can vary a lot. It can go from INR 20, INR 30 to INR 2,000 also. So again, it's somewhat the same answer as what it was for the first question.
So even the realization per range is very wide?
Well, if the number of suns and components are varying that much, so of course, the value also of it would be varying accordingly, right?
No, no. My question is realization portion. So I agree that with a number of sun, the value will grow, but per realization, is that range also wide?
Yes, because there are different types of different voltages of batteries that you're talking about, the size and the shape will definitely the power would be different. So it will vary from one another.
The next question is from the line of Akash from Dalal & Broacha Stock Broking.
Yes. Two questions from my side. Firstly, I wanted the breakup for the Shunt and biimetal side. So for the 9-month revenue of Shunt, how much is from smart meter? How much is from the automotive category? And how much is the power storage modules?
Actually, we have the application-wise details like from shunt side, the total -- I would say we would basically break this into different applications that our products go into. They go into automotive, they go into gas meter, they go into energy meter applications and so on.
Now if you look at the shunt portion of the business, if you look at the automotive side, almost 50% to 60% of the total shunt business is into automotive applications. Then we have about 13% to 14%, 15% of our shunt business, which goes into metering applications, and close to about 10% -- 8% to 10% is into energy storage and the rest is basically [indiscernible]
So this breakup was for this current 9 months, right, the INR 150-odd crores shunt revenue that we have done?
Yes, which is totally on the shunt revenue, yes.
Okay. On the biimetal side, can I get a similar breakup?
On the biimetal side?
Yes.
Mostly -- most of the biimetal applications go into switchgear and circuit breaker applications, which is approximately 65% of our business. About 15% to 20% will go into appliance business. About 8% will go into gas metering applications and the rest will go into other applications, small applications.
Okay. And my other question was, we have been observing that for the current year, our realizations have been dropping both on the shunt and the bimetal side. So -- and in spite of our volumes going up significantly on the bimetal side. So is there any particular reason that because we are selling more in India, we are not able to the same kind of realizations or what is it like?
See, I think we've mentioned that in the past also, the realization price has also been dependent upon the commodities and the commodities have been easing down in the last 1 year. If you look at quarter on quarter. And it will obviously have a direct impact...
So this is more due to the raw mat prices and our sales prices going down, average realizations per product of ours.
The value addition remains the same. It's the metal impact and the reduction in the metal prices, which will impact the sales price and the realization value.
So have our gross margins been affected due to the raw mat prices because I understand that we are able to pass it on completely, right?
See, again, I said, the impacts are passed down. But if you have, for example, a $10 copper to a $7 copper, $3 reduction in copper price will actually reduce the price of the copper. It will not impact the margins.
As far as gross margin is concerned, this is due to the product mix because you see in the last 3 quarters, we are having growth in biimetal rather than in shunt and shunt has a little over the margin compared to the bimetal. So if we are growing in bimetal, there must be a reduction in gross margin into account.
I understand our shunt revenue picked up again in this quarter, right? We are more or less sitting again at that 45/55 kind of a ratio between Shunt and biimetal this quarter. Still our gross margins have dipped significantly.
No, but we have seen a 4% reduction. Overall, if you look at from last year, we are talking 49/51 to 45/55 ratio. So there's still about 3%, 4% gap in our overall product mix percentage, which is impacting the overall gross profit.
Okay. So basically about the product mix due to the product mix?
Yes.
And my last question is on the contacts business of ours. How is that faring? I mean, because even that we see that it's pretty much steady state. We are not seeing a lot of growth there.
So I'm not sure if you -- from our previous calls and the data that we've been giving out related to this business, we are currently running our plant at near full capacity for where the plant is in construction.
So what we are doing as of now, whatever growth we are achieving in that is basically just whatever best we can do by improving the processes in the existing plant. Otherwise, we are in des need to increase that capacity for which we are building a plant. So real growth numbers will start showing up in that from when the new plant is ready, which we expect to have by the first phase of it starting by the middle of this year.
What are the capacity utilization there?
There for 80% to 85% of all our product types, we are running at over 100% capacity. We are running multiple shifts. We are running at -- we don't have the space actually in that plant. So a lot of...
Overall level, [indiscernible]?
Hiomater...
39% capacity level right now. I didn't get the number. How much is on the..
35%, 36%. After the recent expansion that Shali had done for both Shunt and bimetal. After that, the capacity utilization has come down to about 35 -- the 37%, 38% range.
The next question is from the line of Hardik Doshi from White Whale Partners.
Could you please repeat the market breakup for the...
The breakup of...
Application breakup of...
Yes, what I said was that our automotive is somewhere around 70% of the total shunt business that we do, 65% to 70%. We are doing energy meters, which are approximately 13% to 14%, 15%. And we have about 7% to 8% in energy storage and balance is miscellaneous application.
Okay. And within the autos, how much of the electric vehicle versus ICE?
I think right now, it is still a 65-35 ratio. EVs are still kind of at a stage where we are still seeing that they are more right now in the news rather than actual market. But yes, that portion of the market is increasing, but still the proportion is much lower than the ICE.
That's about 35%...
Yes, yes.
Okay. So I mean, we've been talking for a few quarters now about how there's an inventory correction kind of going on. Obviously, the volumes are not down as much globally as far as when you look at the cars.
So is this inventory correction largely over? And how are you seeing demand from the shunt side? That's number one. And number two is, I think in your AGM, you had mentioned that while there's a lot of talk about smart meters, I mean implementation on the ground could take some time. But now with the new initiative by the government, talking about solar panels you see a significant pickup happening on the smart meter front?
I'll start with your first question. Inventory correction, yes, of course, that is still happening. We -- parallel to that, I think we are also seeing that the North American market, the automotive market has been muted in terms of -- not that it's not growing, and it is kind of on the negative trend.
But at the same time, in fact, I was just recently in that part of the world, and the feedback that we are getting is the good part is that we've not lost any opportunities neither from our -- neither our customers have lost any opportunity, neither we have a lot of customer.
So looking at how things are, we see that second half of 2024, we will see that the North American market demand should start picking up again, which clearly indicates that the inventories are coming to a level which is acceptable to the industry. And on the -- I think the second part of the question was -- can you just repeat that second part of your question please, once again.
Yes. The second part of the question was on smart meters. In your AGM, you had mentioned that while there's a lot of excitement around it, there could be delays in terms of implementation and actual volumes picking up. But I'm just wondering with the government announcing the rooftop solar project, which I'm guessing requires a lot of smart meters attached to the houses. Do you see much more traction? And how are you looking at that business from the next 2, 3 years perspective?
Absolutely. In fact, smart metering is now becoming more and more interesting for us. In fact, we already started seeing results in our domestic shunt-related business. It is growing, and we expect this to continue to grow in 2024, '25 as well. And it is definitely now in the market. It's come to a stage where the tenders are now actually being started going into production.
Related to the rooftop solar initiative of the government, I mean, have you done any kind of analysis of what this means for you from an addressable market perspective?
I think it's too early to kind of get an idea on that. How -- of course, this is definitely going to bring value in terms of opportunities or the shunt business, but how much of that, what designs would come in, what kind of resistors it would kind of use. That's still, I think it is a very early stage to kind of identify how much of that will kind of transform into an opportunity for us.
Okay. Okay. Just one follow-up on my first part of the question. You mentioned in your conversations with customers that you not lost share and they have not lost any opportunity. I mean is this mainly anecdotal? Or do you get industry data which kind of confirms that [indiscernible]
No, it is also -- it's clearly reflecting in the industry data as well. You see the North American automotive market is clearly showing signs where the -- in fact, the transition of moving into the hybrids and the high-end ICE engines as well as the EVs were slower than what it was anticipated. So obviously, we see that in the last couple of years, there has been a certain level of inventory built up with our customers, which is now getting liquidated.
[Operator Instructions] the next question is from the line of Aman from Astute Investment Management.
My first question is on the Metal MOU, which we have signed for the bet JV. So can you give further update on the same? When can make something concrete on this? How big investment are we planning to do? Is it the same product? Or this will be a practically [indiscernible]
This is for the contact business, the kill contact business, which used to be a joint venture with Chkcon until a couple of years ago, then it is a wholly owned subsidiary of Shvalk at this point. And I was just a few minutes ago, I was mentioning about this plant being run at full capacity and a new plant under construction. This is for that business.
And the MOU that was signed with Metal are currently, we are in a stage where we are constructing and working on business plans to assess what kind of products we would like to add or what kind of capabilities we would like to add. So basically, along with the due diligence process, we are in the midst of all of that. And as soon as that process is complete, we should have an idea as to how we are proceeding with the joint venture and what we are planning to invest and those details will come out.
But as of now, we are in the process of creating that. We are at advanced stages of I wouldn't be able to put a time line to it, but I would say soon we should have the dates of, et cetera, and the numbers available about what kind of investments we are looking at.
Sure. Just one clarification before I move to my second question. So we already have our own new facility coming up for contact, right? So then you will have -- we'll be selling on our own and then maybe something through JV as well? This is your plan?
No, we will probably -- we will -- that is part of this due diligence process will give us answers to what kind of an arrangement we are planning to make and what kind of is most suited to both companies. Metallurg is a global leader when it comes to precious materials, refining, precious materials manufacturing as well as silver contacts.
And we are very pleased that they have to go ahead with this because, of course, for all the reasons I don't need to mention, to go with a world leader for a product is always going to bring benefits in the long run.
Sure. That helps. My second question is on the market situation, both in Sun and biometals. So on the side, if you can first talk about because in the commentary, I believe there were hints that by the end of this financial year itself, you might see some uptick.
But in the initial question, you've talked about maybe second half of this year, so -- calendar year. So if you can just talk about, is it in 1 quarter is because you were also highlighting the point that there was a shortage of capacity from our side. So is the demand an issue? Is the capacity an issue? Is both the issue? If you can just help us clarify.
And similarly, on biimetal side, there was shortages last year. So is the shortages still ongoing because some of the competitors shut down? Or is the situation now becoming normalized because bimetal used to grow at such fast rate. So do you expect the biimetal growth to go back to that low single-digit kind of levels? Or do you think this high double-digit kind of growth can sustain for 1, 2 more years?
I think I'll take your question one by one. So first, of course, on the capacity because it is a faster one. On the capacity, I think you got a little confused on the shunt and the biimetal side, we are working at about 38%, 39% capacity. So we don't have any capacity shortage there. What we were talking about the capacity constraint was on that business.
So that is the SPL, which is the 100% subsidiary of Shivalik. So again, when it comes to Shivalik operations on biimetal, we have enough capacities to kind of cater to the upcoming demands.
Secondly, on the demand side, as I said, that if you look at it, we kind of -- our numbers are very positive when you talk about the Asian market, the Europe market. Our numbers are growing pretty strongly there. What we've seen in the last 1 year is that the North American market has been very muted, which has kind of impacted the overall growth. So -- but if that comes back, we are more than confident that we will come back to the previously projected numbers that we had anticipated.
So that's specifically why we were in that market with the customers to kind of assess where we are right now. And as I mentioned, the second half of the year, we are seeing that the demand is going to start picking up. We are going to start seeing -- we are already seeing a lot of customer engagement happening right now on the schedules and the forecast and the numbers that are coming forward.
Looking at all that and looking at the ordering process and from the time we would start supplying to them. That's why we feel that the second quarter of next financial year is where we'll start seeing the numbers picking up again.
And on the bimetal side, if you can talk.
Okay. On the bimetal side, of course, a lot of growth, yes, on the competition side, I think that has already stabilized. That was, in fact, stabilized last year. This year, we've seen a lot of growth coming from the local domestic market. We have seen that the markets have been very strong, and a lot of emphasis has been on infrastructure upgradation and improvement.
And of course, we are now coming to a period where, of course, we all know it's election time. So in a couple of months, we might see that there effects because of the elections coming in, but we all anticipate that this continuous growth in this specific area will happen. And that's why I think for the next couple of years, this should be sustainable.
The next question is from the line of Manan Poladia from MKP Securities.
So my first question is with regards to the smart meter shunts business. The last time we spoke on the previous call, I think you had indicated somewhere along the line of 10% of your shunts business being -- domestic shunts business being from smart meters. This time, you indicated somewhere around 13%, 14%.
And you also indicated that you want to given the fact that you are now looking at it more positively and you are seeing the implementation pickup come in, is there a change in the guidance? Or should we expect any different numbers for domestic shunt contribution of smart meters?
No, I think you're absolutely right. I think on the metering side, we will definitely see these numbers grow exponentially and which will impact -- which will definitely going to affect the overall contribution of Shunt in the metering application. And we are expecting a solid growth perspective when it comes to the smart metering application.
There is no material change in the guidance, 20% is what we should work with right now as well?
In fact, if we see the local growth on the Shunt side, we've seen that it's about 30%. So I think an anticipation of that much would be at level 2.
Correct. Understand. All right. My second question is on the silver contact side. Since you said that we have -- we currently have an issue. And the last time we spoke, you said the Metallurg JV was something that we were exploring, doing a feasibility study on and then we'd figure out what we want to do about it. So has there been any update on that progress because you said some facilities underway?
As I just mentioned that currently, we are -- with Metallurg, we are currently working on certain business plans, et cetera, and we are working on feasibility study of what we have to -- what is the best things to -- what are the best products to jointly manufacture, whether we would like to get into something new or we would like to improve certain processes and what we need to do. And that will help us assess what we are looking at.
And other than that, there's a due diligence process that's going on between us. And it's at pretty advanced stages at this point because we've been doing that for the last 3, 4 months. So we are at a stage where we should be arriving at certain conclusions very soon.
And what about the current facility that is being constructed for the silver contract, sir?
Yes, that is under construction at a location 10 kilometers ahead of its current facility in between Solar and Shivalik. And that's -- we started construction about 18 months ago. We are at almost ready stages. The plant should be functional maybe in another 5 to 6 months.
And what is the peak...
The level of investment that we have done, we are looking at about INR 250 crores, INR 300 crores level of revenue generation. But then we have designed the plant in such a way that more space can be added.
And there, I can't answer that at this point because I don't know what we will create there and what revenue it can add. But in its existing phase, what we have created, it can have a peak revenue of about INR 250 crores to INR 300 crores.
The next question is from the line of Ashish Soni from Family Office.
Sir, one question. I think last quarter, you guided that [ 10% to 40% ] growth you can expect. But based on the current situation, what's your quantitative number? I heard a lot of qualitative expects on it. So where do we stand on that 10% in growth?
See, currently, if what we were talking a little earlier, our main reason why number the growth is looking like what we should be -- what we were expecting to be at versus where we are, we see a difference in that mainly because of the automotive shunt requirements, specifically of North America.
So that is at a minus number. So that is causing all of the other product types, which are ranging from 25% to 30%, even 35% in some cases like energy meter -- smart meters, for example. And all of those are looking at an overall 10%, 12%, 10% growth because of the negative of the automotive.
Now where we see that changing is in maybe in the second quarter of next financial year or second half of this year -- calendar year, which is what the information we have grow from our customers. And even if that market was to remain like that, we still have a positive outlook there in that particular area because we have added new business as well.
So even if the market situation doesn't improve, we will see our revenues still improving in the near future. So there, we feel that we see that change. Now if that changes and the market situation -- automotive market situation in the U.S. changes, we will see a very substantial growth and which is why that number that's a huge variation of [indiscernible]. The moment that changes and all these other areas remain at a 25%, 30% growth, then we will look at a 25%, 28% growth level.
Even that is a possibility, we just need to see the U.S. automotive market improving. That is actually the only one thing holding us back, which is actually something that's in a way good also because we know it's only that one thing and it's not multiple problems we are dealing with.
But then it's also obviously because there is a heavy portion of our sales that were being supplied to that area for this particular application. So obviously, it is having this kind of an effect. But we do see it as a temporary situation.
And of course, one thing that I would like to add is that the advantage today, Shivalik has because we are into these diverse applications that some specific markets falling down, we still see a certain level of growth. But if you look in our -- if you look at competition going into some similar product lines who are heavily dependent on specific automotive markets, only they are showcasing negative growth. So I think that's where this breadth of our products into various applications does provide us a certain level of gearing space.
Okay. And regarding this energy storage, I think your end user market, so how are you seeing -- because I see a lot of investment across the world, even in India, a lot of plants are going to come? So how do we see that vertical growing for us?
See, as you rightly said, it is at an investment stage. We are very excited. It is going to bring a lot of opportunity. Question is in what form and what proportion is something we will probably know a little later in the whole ecosystem once the designs and once these products are clearly established, then we will have more clarity on that.
Is it like 1 to 2 years to get that sort of thing or...
I think 2 to 3.
The next question is from the line of from Equity Master.
Sir, my question is on the smart meter opportunity in India. If you could just give us a sense of what kind of value on an average would go? I think you have a 65% market share, please correct me if I'm wrong. And what would be the overall from a perspective, if you look at it, what kind of opportunity do you see for players like you in the smart meters -- domestic smart meter market?
I think, if you really look at the really the smart relay opportunity brings us value to Shivalik in 2 forms, one is on the shunt side and one is on the contact side. So looking at the basic opportunity that we will have, it would be INR 60 to INR 50, is what we would be contributing into it. And you can kind of estimate yourself will be smart enough to kind of estimate the size of the market, the quantities that will be manufactured and the opportunity that will bring in for sure.
In fact, that's on the lower side, but that is obviously going to be the maximum volume also. But there are also certain types of meters that we are supplying into where the product value is actually about INR 300 to INR 400. So that's a smaller volume. But I think INR 60, INR 70 as an average is a fair number to take.
Okay. And sir, my second question is last year, in the recent years, we had expanded our capacity mentioned in biimetal and currently, we are at like 40% utilization. As is a very niche market. So I mean, if you look at the peers, do you see any kind of more capacities being set up at the end market share challenging for us. If you could just give us a sense of supply side.
At the moment, on the bimetal side, we don't really see anything coming up. In fact, till last year, we had -- last year, I would say we had seen shortages in the market. So we kind of were in a position to grab more opportunities.
On the shunt side also, I think right now, we feel that we are very sufficiently placed in the market. And in fact, the idea in the market is also to not build in capacities to an extent that it commoditizes the product line. So right now, I don't see that kind of challenge coming in.
Of course, with more and more growth coming in, we will definitely see some competition coming in. But I think with the economies of scale and the opportunity of being in the low-cost manufacturing side, we are ready to bring it on.
Okay. And sir, lastly, like we have seen a lot of auto sector tends to be cyclical and currently, we are facing some kind of downturn because of what's happening in the U.S. auto. So going forward, let's say, if you look at 5 to 8 years from now, do you see auto more as an opportunity? Or is it something that you would like to diversify away from?
No, no. I think right now, our focus definitely remains on the auto side because we see that there's a lot of potential coming in for our kind of products currently as well as the new products coming in.
So our focus definitely remains there, but that does not mean that we don't -- we are privy to the aspect that there would -- there's always a risk to remain in a specific application, and that's why we like to remain diverse and go into multiple sides of the product lines and applications, and we will continue to do that.
The next question is from the line of [indiscernible] an individual investor.
My first question is our components are very small in size and weight, which is bimetal and shunt. So I was wondering our export. Do we do it by ocean or do we airship?
Both. We do both by air and by sea. But even if it is small in numbers, we are talking about tons of material that going. So shipping it by air, some can be very expensive.
Okay. But in terms of percentage, what would be [indiscernible] roughly 75 to 25...
Yes, 75%, 80% would go by sea...
Yes. Okay. So related to that, affected by the r Sea situation right now?
Yes, we did. In fact, there is -- the world is affected by it in terms of -- we see that there is a longer and a larger time required for movement of materials. But in terms of -- I would say, in terms of our supply chain, in terms of our supplies to the customer, those 3 weeks are still manageable.
And is there any in there?
We saw increase, but it's transferable to the customer. St.
Passed on to the customer?
Yes, pass on to the customer, yes.
Okay. And my last question is this is regarding the promoter stake sale, which happened a couple of months back. So I just wonder, I would like to know is there any further promoter stake sale planned? Or is it are promoters done with the stake for now?
No, there is no intention of selling any more stake. There is no such plan also.
[Operator Instructions] The next question is from the line of Akash from [indiscernible]
My question was on -- just to understand what kind of margins do we generate on the contract side of the business?
What kind of margins?
What kind of EBITDA margins we generate on the contract side, gross and EBITDA, please.
Is about 1 -- currently at about 11% to 12% EBITDA margin.
Okay. And with the plant coming up and capacities coming in, do you feel this and [indiscernible]
No, we would expect to see it going up for 2 reasons. One is that the new plant -- you see the previous plant was built very organically over time and in a sort of an ad hoc manner. So with the new plant, we will have more refined and more efficient processes. So that will have some -- that should cause some improvement in EBITDA margins.
Also, we should be able to have higher volumes as a result of it because there's a lot of business potential that we already have in hand with our existing customers as well as some new opportunities. So we see with that going up and our overall sales going up, we would see an improvement in margins there as a result of that as well. So it's very important for us to quickly get into the new plant and start.
So can we increase by 3%, 4% -- [indiscernible] can we the 15% kind of EBITDA margin range in the contract business?
I would say that's a little bit hard to reach maybe that level. I would imagine like a 1.5%, 2% improvement is more realistic. Unless we change substantially our product mix and get into certain other types of products, which opportunities that are -- in the future can come in, but I don't see it happening in the near future because this is a business that also has certain competition in India.
Also, it is a high-value material, high-value material-oriented kind of a product. So in many cases, it's 85%, 90% material costs involved being the primary raw material being silver. So as a result, this is generally a lower margin-generating business across the globe. In fact, if we compare it, other similar companies doing similar kind of components, we see our margins actually on a more healthy side as compared to other companies.
Got it. What would be the...
I'm sorry to interrupt, sir. I request you to rejoin the queue, please. The next question is from the line of Prateek Jain from Solid Investment Managers.
Sir, I have a couple of questions. One is, can you give me the split between shunt and between different industries, auto, smart and energy storage?
I think we gave this -- I think you you missed that. So if you look at what I said is 65% to 70% is between automotive, energy meters is about 13%, 13%, 14% and about 8% to 10% -- 7% to 8% is energy storage and rest is miscellaneous.
And was it the same in 2023? So this is for 9 months FY '24, right?
Yes.
And how was it different in FY '23?
In FY '23, I think in that case, we were 10% was energy meters and automotive was somewhere roughly around 70% of our total revenue. And 10% -- 7% to 8% again was our energy storage and then the balance was miscellaneous.
Got it. Got it. And sir, one more thing. Can you please again highlight the shunt and bimetal [indiscernible] margin?
Bimetal gross margin is somewhere in between 44% to 46%. And for Shunt margin,where between 48% to 52%.
And EBITDA level?
The EBITDA in combination, that comes down to in the range of [indiscernible] 22% to 26%.
[indiscernible] Right?
Yes. So if you combine both the products and you'll see the EBITDA will always be in the range of 22% to 26% level.
Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.
Thank you. In conclusion, I wish to express my sincere gratitude for your presence today and your participation in Shivalik growth journey. Should you have any further question or insight, please feel free to reach out to the [indiscernible] Thank you for your continued support, and I wish you a pleasant day.
Thank you very much, sir. On behalf of PhillipCapital India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.