Hyundai Motor Company

Ladies and gentlemen, good day and welcome to the Q3 and 9-month FY 2024-25 earnings conference call of Hyundai Motor India 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 and the management remarks. Should you need assistance during this conference, please sit in an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mithul Shah from DAM Capital. Thank you and over to you, sir.

Thank you. Good evening and we welcome you all to this Q3 and 9-month FY25 earnings call from Hyundai Motor India. I am Mithul Shah from DAM Capital and today we have with us Mr. Unsu Kim, MD. Mr. Tarun Garg, Chief Operating Officer, Mr. Vamdo Hoor, Chief Financial Officer, Mr. Sarvanan T., Function Head, Finance, Mr. Gopal Krishnan, Company Secretary and Chief Manufacturing Officer and Mr. K.S. Hariharan, Head of Investor Relations from Hyundai Motor India. I would like to inform you that the call is being recorded and the audio call and the transcript will be available on on the company's website. I would now like to invite Mr. K.S. Hariharan, Head of Investor Relations from Hyundai Motor India.

Over to you, sir.

Yeah, thanks, Mitul. Yeah, good evening, everyone, and welcome to the Q3 FY25 learnings course. Before we begin, I want to remind you of the safe harbor. We may be making some forward looking statements that have to be underscored in conjunction with the uncertainties and the risks that the company faces. The conference call will begin with a brief presentation by me on our third quarter and 9 months FY25 reserves and then remarks by our MD on the performance and outlook after which we will be happy to receive your questions. So let me begin with the key business highlights. Hyundai has always been at the forefront of automotive innovation and we are committed to playing a pivotal role in shaping the future of electric mobility in India. Our journey towards electrification is both ambitious and meticulously planned. During this month, we launched the Creta Electric, our first locally manufactured mass EV and it has been receiving positive response from the market. Designed to combine innovative technology, all around safety and electrifying performance, Creta Electric is poised to become the growth electric SUV for Indian customers. Despite the challenges faced by the industry, we achieved our highest ever yearly domestic sales of 65,433 vehicles in calendar year 2024, marking the third consecutive year of this accomplishment. Hyundai Creta, by achieving the highest ever yearly domestic sales of 186,919 vehicles, continued to strengthen HMI's position as an SPV leader, helping us accomplish highest ever domestic SPV contribution of 67.6% in calendar year 2024. A rural penetration demonstrated robust growth, reaching 21.2% during the quarter, compared to 19.7% in the same period last year. Notably, the SPV segment showed remarkable momentum in rural as well, contributing 67.6% to the total rural sales. The dual cylinder PNG technology in EOS and EXTRA continues to elevate our PNG adoption. This advancement has been instrumental in achieving our highest ever PNG penetration during the quarter, reaching an impressive 15% as compared to 11.9% in the same quarter last year. We have been actively investing in EV infrastructure to support the expected growth in demand for electric vehicles. As an ambitious initiative of our commitment to fostering sustainable mobility, we aim to set up nearly 600 fast public EV charges across the country in the next 7 years. As part of our dedicated efforts towards localization and introducing locally sourced innovative technologies for the customers, HMIL became the first auto OEM in India to introduce the made-in-India AGM battery technology in its products. Moving on to the sales performance for the quarter, we achieved total sales of 186,408 vehicles in Q3 FY25 as compared to 190,979 vehicles in the same period last year. Volumes during the quarter were majorly impacted by the macro and global factors. In the domestic market, despite a challenging demand environment, we were able to effectively sustain our volumes on an year-on-year basis. During the quarter, we sold 1,46,022 vehicles compared to 1,47,329 vehicles in the same period last year. The strong festive demand supported our volume, with October marking the highest ever Vahan registrations for us. During the quarter, we exported 40,386 vehicles as compared to 43,650 vehicles in the same quarter last year. The volumes were mainly impacted by registry and geopolitical challenges affecting our exports to the Middle East and Latin America regions. However, we were able to minimize the impact of omission by increasing our exports to other regions like Africa. In line with the changing customer preferences, SMI is focusing on quality of growth driven by premiumization and SEOization. We keep analyzing the market to ensure timely product updates and interventions to keep our model lineup fresh and technologically advanced. This strategy has helped us and contributed positively to the volumes in the SUV segment and improved our domestic ASP on an year-on-year basis. We registered record high SUV sales of 1,637 vehicles, accounting for nearly 69% of our domestic sales during the quarter. Hatchback volumes dropped to 19.9%, reflecting the broader industry trend towards SUVs, while sedans accounted for 11.1% of sales during the quarter. In line with our ongoing focus on CNG adoption, the dual-cylinder technology helped in increasing our CNG penetration to 15% during the quarter, reinforcing our commitment to sustainable mobility. Let me now share the financial numbers. For the 9 months of current financial year, we sold total of 5,70,402 vehicles as compared to 5,84,159 vehicles in the same period last year, registering a revenue of Rs. 5,12,526 million as against Rs. 5,21,579 million in the same period last year. Despite strong headwinds, we were able to maintain healthy EBITDA and EBIT margins during this period. EBITDA for 9 months 525 was Rs.64,211 million as against Rs.66,108 million in the same period last year. EBITDA margin was 12.5% as compared to 12.7% in same period last year while EBIT margin was maintained at similar levels at 9.5%. FAT for the period stood at Rs.40,259 million as against Rs.43,829 million in the same period last year. That margin was at 7.8% in comparison to 8.2% in 9 months FY24. During this period, the macro impact on our operations was well addressed by our cost reduction initiatives and efforts, with the margins mainly impacted due to the change in interest income due to the lower liquidity base. Let me now share the financial numbers for the quota. Our revenue from operations stood at Rs. 1,66,480 million in Q3 FY25 as against Rs. 1,68,747 million in the same quarter last year. Favorable product mix contributed to sustain the revenues despite enhanced discounts during the quarter. EBITDA for the quarter stood at Rs. 18,755 million as compared to Rs. 21,735 million in Q3 FY24. EBITDA margin was at 11.3%. as compared to 12.9% in Q3 FY24. EBIT was Rs 13,482 million in Q3 FY25 as against Rs 16,397 million in Q3 FY24. EBIT margin was 8.1% as against 9.7% in the same quarter last year. Pax for the quarter was Rs 11,607 million as compared to Rs 14,252 million in the same quarter last year. The PAT margin was 6.9% as against 8.3% in Q3 of last financial year. Our Q3 profitability was primarily impacted due to the subdued demand in domestic market and geopolitical challenges. However, with our continued efforts on cost reduction through localization and value engineering, we were able to minimize the impact of macro challenges on our margin. This concludes my presentation. Thank you for listening. And now I would like to invite our MD, Mr. Anshul Kim, for his remarks. Over to you, sir.

Thank you, Hari. Good evening and a very happy new year. Welcome to the third quarter earnings call for the financial year 2025. I hope many of you would have got a chance to witness threat electric at the Bharat Mobility Global Expo 2025. With this tagline, Electric is now Creta, Hyundai Creta Electric is ready to push the boundaries of what electric SUV can offer. Creta Electric is our first localized electric SUV in India manufactured at our Chennai plant. With more than 1.1 million Creta customers, and trust it has, we believe no other vehicles than the Creta can pull the message to begin their EV journey. It is a perfect combination of a bold SUV design, premium on-market interiors, powerful performance, and unparalleled safety. With the addition of this electric car train, we now have the Creta for everyone. We firmly believe that this landmark introduction will open new avenues and mark a significant step towards sustainable mobility for our customers. Coming to the calendar year 2024 performance, HMIL has managed to sustain sales momentum during the year, despite the strong heavy wind faced by the industry in large. The SUV segment remains a cornerstone of our portfolio, contributing to the highest ever 67.6% to our domestic sales during the year. This strong performance highlights its widespread appeal with robust penetration across urban as well as rural markets. Our rural penetration demonstrated robust growth with SUV segment contributing 66.9% to total rural sales during the year. We remain focused on enhancing our rural presence by actively expanding our network to better serve the diesel markets. Introduction of the innovative dual-cylinder CNG technology resonates well with buyers translating to the highest ever CNGA contribution of 13.1% during the calendar year 2024. Our performance in the third quarter of financial year 2025 shows a remarkable resilience against the current macro environment. With a good festive season, we achieved the third highest domestic sales since inception with more than 55,000 units being sold in the month of October 2024. While the demand was impacted by a post-festival slowdown, which resulted in increased discounts in the industry, HMIL continued its focus on the quality of growth strategy. On Expo, the Red Sea crisis in the Middle East and the geopolitical instability in Latin America impacted our volumes during the quarter. To mitigate the risk, we have increased our volumes to other regions like Africa, supported by additional discounts. Going forward, we expect suitability in our export volume and with our access to export ecosystem of HMC, we will continue to explore opportunities in other emerging markets and deliver exciting products. Looking forward, we are confident about our growth trajectory and are committed to drive long-term value for our stakeholders. building on our strong foundation and focused strategies, we are excited about the opportunities that they have ahead of us. We have a positive outlook on growing EV penetration in India and are headed towards electrification with a holistic approach. The positive response, our recently launched CREP Electric has garnered from the market is a clear reflection of the trust and confidence our customers place in us. We are confident that it will drive phenomenal success, building strong momentum, and will be a game-changer in the EV landscape. With three more EVs planned in due time, we are ready to witness and contribute to India's EV growth story in the coming years. We are building a strong EV ecosystem in India. Our efforts are deeply in sync with the government's Making India Drive, and our localization strategy strives to constantly leverage India's rich resources, skilled workforce, and advanced engineering powers to develop world-class technology domestically. We have been actively investing in charging infrastructure to drive the demand for electric vehicles by setting up public charging stations in India and a committee to expand this future. Along with offering potential products, we will also focus on localization to ensure cost competitiveness. Commissioning of HMIL and MoDIS India Limited battery pack assembly plan is a key milestone in our localization and EV roadmap. Going forward, we also aim to localize other key components like battery cells, drivetrain, power electronics, etc. in the near future. Construction at our bullet plant is advancing rapidly with operations set to commence by the end of this year. With Phase 1 capacity of 170,000 units in 2025 and another 80,000 units in the coming future, we will scale up our total capacity toward impressive 1.1 million units, reflecting our commitment to meet growing market demand. Aligned with this aggressive expansion plan, we are equally focused on diversifying our product portfolio. Along with the exciting lineup of EV and ICE models, We will also look to explore opportunities in alternative eco-friendly powertrains. We have access to various HMC global powertrain technologies like hybrids, hydrogen, fuel, flex fuel, etc. and are well-placed to adapt to any change in the demand dynamics and regulatory environment. This comprehensive approach ensures we cater to the evolving customer preferences and lead the way in sustainable and innovative mobility solutions. These efforts will position us as a key player in both domestic and export markets driving growth and innovation. While the challenges proceed in the overall market due to the global factors, our business fundamentals remain strong and we remain confident in our ability to leverage our strength and actively explore potential opportunities to improve our volumes and profitability. Lastly, in order to enhance the shareholders' returns, We will announce amended dividend payout policy post financial year closing.

Thank you for listening. Thank you very much.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Please note that management will use English-Korean translation for better communication, hence there could be a slight delay in the responses. The management line will be on mute mode till then.

Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of Mithul Shah from Dam Capital.

Please go ahead.

Thank you for the opportunity. Sir, my first question is on growth outlook for passenger vehicle industry for Q4 and FY26. Yes, there has been lot of uncertainty recently in terms of huge difference in growth among the players. give more detail on the Q4 particularly and what could be the FY26 domestic PV industry growth at the same time also we would be happy to understand your market share strategy as our shares have declined marginally in first nine months so what strategy will use to retain it

So, if you see 9 months the TIV has grown by 2.2 percent. So, we have been maintaining this. that, you know, after this high growth of 23% and 9%, which we all saw post-COVID, obviously some kind of a moderation was expected. And this is absolutely in line with this anticipation. Going forward, there are some positive factors as well. If you see two, three positive factors. One, yesterday RBI infused liquidity. Very clearly this is a precursor to loading of interest rates because now it is 2-3 years since the interest rates have been very high. I think lowering of interest rate not only from an automobile point of view but from an overall you know growth point of view are very very important. We believe that inflation also has probably peaked out. The monsoons were all over the country they were normal to access and we are seeing a positive offshoots on rural. So, there are some you know these 3-4 factors. One very important factor also is that You know, after 2-3 years of very high growth, you know, every company probably was taken by surprise, you know, when this kind of a bump happened. So, suddenly people went into a huge negative spiral. You saw huge price cuts by some OEMs. You saw some huge discounts. But now I think sanity is prevailing. 1st of January, Hyundai took the lead. by increasing the price by almost close to one percent and we can see that many other players have followed uh some of the players have already announced that they were going to do on first of february so i think in terms of sentiment some kind of a positive thing is happening that said although the exact forecast probably siam has announced that 18th of february we will have a looking ahead conclave and there we will be announcing a industry forecast But it appears broadly when we talk to other players that probably low single digit in 25 considering all the positive as well as challenging factors appear to be in order. As far as Hyundai is concerned, some of the levers we are looking at, of course, is electric. As you know that today we have almost a 0% market share in electric because IONIQ 5 is in the next segment but it has given us a very strong image in the market and now that Crater EV has come out with a very strong force we believe that Even if the industry say from 2.5% reaches say about 3.5 to 4% in 2025 or early 2026, even if we can target a 10% market share, it will give us 0.3, 0.4% positive market share in the overall scheme of things. you know, which can take care of some of the, like you mentioned, some of the other, you know, competitors who have launched new models in 24. So, that effect can be negative. So, we believe we will be in line with the industry growth going forward in 25. And then with the Pune plant coming in and our new models married, you know, new model cycle married to the Pune plant, like MD mentioned in his opening speech, We are not only looking at launch of IC models, we are also looking at alternate power trains, you know, opportunity. Of course, you mentioned three more EVs after Slata EV in our prospectus as well. So, I think we can be positive about that going forward. I will pass it on to Hari to take the answer for us.

So, just to add further to what our CEO Mr. Karun mentioned, see on the market share as such, see we have our clear strategies which has been very positively working for us. For example, one is the premiumization. See, HMI is always known for the strong premiumization strategy. So, oneness on the SUV front, as you know, you can see from the numbers itself, our SUV penetration has been consistently growing. And second thing is that on the focus on some of the mid to high-end trims as a focus. Today, if you see, even the last year, when we launched this dual-cylinder technology in two of our models, that has strongly pushed our C&G penetration, both in case of NIOs and extras. That is one. And even if you see, there are other aspects as well. For example, Sun Group, if I can give you some numbers, it was 47% in terms of penetration in Q3 financial year 24. It has gone to 53.5% during the current year same quarter. Similarly, Adar, from 3.4%, it has gone to 12.9%. Even automatics have also increased by a decent number. So clearly these strategies are helping us in this tough market environment and in fact it has helped us improve our domestic ASP by more than 200% during this period. So as our COO mentioned, Mr. Tarun mentioned, Going forward, in this additional capacity, we will be getting from a Pune plant. I think that is something, a great opportunity for us. Of course, with the model launches, we have planned going forward. So, that is something we are very positive about it. So, with our quality of growth strategy, we will continue to explore various opportunities available in the market. And accordingly, we can secure the growth, both in terms of volumes and as well as the profitability front.

Yes sir just on this new Talegau plant as you mentioned after it becomes operational what would be export strategy as domestic growth would be single digit so to make a or to reach certain optimum utilization to make it profitable export needs to be much higher so what would be our strategy there?

Yes, thank you for the question.

This is Eunsoo. In terms of export, HMIL is a large exporter since the 1990s. Also, we have a healthy and balanced mix of domestic and export volume, which gives us not only good profits, but also a natural hedge against the market fluctuation and foreign exchanges. As we see the domestic market is increasing and also we see the export market increase, so with the expansion of our planet, we will meet both the demands. During the quarter, the geopolitical issues continue to impact the export volume. Some risk was mitigated to some extent by increasing volume to other regions like Africa. But we have a very unique product portfolio and model mix in the emerging market. We launched a new range of SUVs like the Exel and Alcazar facelift last year. And also HMIL has access to export ecosystem of HMC in more than 80 countries. Also we are the manufacturing hub for emerging market. Going forward, we expect usurpability in the export volume in the near term and with the demand improvement in the near to long term. So, thank you. I answer the question. Thank you, sir.

Thank you. Ladies and gentlemen, we request you to please restrict yourself to one question at a time. We have the next question from the line of Kapil Singh from Nomura. Please go ahead.

Yes, good evening, sir, and thank you for the opportunity. I just wanted to ask on the cost items, you know, how are cost items looking for the future in terms of commodity costs and as well as the fact that we are starting a new plant next year, so how should we think about the impact of that on margins? Also, the staff costs for the quarter were up significantly. So, if you could give some color there in whether the payoffs came to the level or how to think about that.

Thank you.

Hi Kapil, so your first question on the commodity, the commodity was more or less stable during this quarter and second thing on the stock cost which you asked, so there was a one time impact which we have disclosed in the IPO prospectus time itself. So this is basically kind of reward which has been announced for all the employees. So that is reflected in this Q3 period. So that is one. And as far as Pune is concerned, so yes, so we will be starting this Pune facility by this year, end of this calendar year. So of course, all the activities are, you know, progressing in a fast pace. So as far as margins is concerned, as you know, this is a significant capacity we will be getting. About close to 1,70,000 is the plan we are having. And of course, with all the model launches, we are planning going forward. So, we are very confident that you know whatever is the investment we are making into the Pune plan. So, with our clear strategy which we are having on the product side. So, we can you know secure the margins for going forward.

Ok. And just to clarify this one time staff cost is only in Q2 or it will come in future quarters or years also?

No, this was only in Q3. That's all. This is one of expenses.

Okay, okay, understood. And sir, just on the export side, if you could give some more color, you know, you mentioned that there has been, you know, impacts of Red Sea crisis, but when we look at some of your competitors, you know, exports have not been impacted that much. So, any comparison you can share, like, what is the reason that, you know, our exports are impacted more? And if there is any signs of improvement in outlook or any easing of the problems that we are facing.

So, Kapil, like you mentioned, look, it also depends on, of course, one, these are the markets you are exporting. As you know that Middle East and Middle East was affected much more. At the same time, like we mentioned earlier, that new model cycle is going to come, for example, external. extra left-hand drive could be a big opportunity for us going forward, you know. So, I think we just have to be a little bit patient and you can see, in fact, the cycle turning already, you know, probably from Q4 of the financial and then going forward, we believe that the effect which we suffered probably is now being mitigated to a large extent and going forward, of course, new models will throw up more opportunities. We are looking at EVs export as well And of course, Hari will take it forward from here. Yeah, Hari.

Yeah, yes, Kapil. So, again on the export side, I think we know that right from the time we started our operations in India. So, we have been strongly focusing on the export front. Suppose the current decline, whatever we are seeing, it is more to do with the geopolitical issues like the RECI and the issues which we are seeing in Latin America. But on the demand side, it is very much stable. We do not see any problem on that front. And on the operations side as well, we are kind of adjusting our planning and operations. So, we see more stability coming from the export side going forward. And as the POO mentioned as well, See, we have launched even during last year, you know, some of the products in the overseas market like Creta we have launched, Alcazar we have launched, even Excer we have launched in South Africa. We have been getting, you know, very, very positive response from the market, overseas market. So, going forward also, we will look for lot of opportunities because today we are the production hub for this emerging markets like Latin America, Middle East, Africa. But we will look for opportunities in other emerging markets as well. Even on the EV side, so we are, you know, evaluating the export possibilities even to start with Creta Electric. So, I think going forward, there are a lot of opportunities we see even with the Pune plant coming in. That is something, real positive thing for us. We will be in a position to leverage the various opportunities lying ahead of us.

Thank you and that's it.

Thank you. We have the next question from the line of Amin Pirani from JP Morgan. Please go ahead.

Yes, hi and thanks for the opportunity. Just continuing on the export aspect, I think in the initial remarks, there was one comment that to offset the Middle East and Latin America weakness, we have increased exports into Africa and maybe that has led to some increased discounts and ASP issue. Broadly, can you just help clarify whether Africa is generally a lower ASP and lower margin geography and that has maybe impacted our overall profitability?

Yes, I mean, hurrying here.

See, yes, as we mentioned, the increased level of discount is, you know, something which we have to do because, see, for example, one is Africa is, you know, region where we had actually increased the volumes more than the original plan. So, of course when you have to give you know put for some extra volumes we need to give some additional price support that is one and second is that even from the product perspective for example when we do some you know export of some product. So, we need to make some adjustments also to meet their requirement. So, that is something as an additional factor which we need to take care because for example when we export extra as a model. So we need to make some adjustments to meet their requirements. Obviously we need to support with some additional price incentives. But that said again as I mentioned on the demand side overall for export it is very much intact. Going forward we expect lot of stability. We are looking for various opportunities on the export side in fact to increase the volume. So especially with the Pune capacity as we mentioned. I think we are very positive about it going forward on the export side as well.

And just on the Creta Electric as an export opportunity again just want to understand is the Creta Electric exclusively made in India or is it made in other geographies also?

This is also

Cresta Electric is unique for our Chennai plant. Basically, we are targeting for the domestic, but we are exporting neighboring countries first. And then, if possible, some emerging markets, infrastructure or government policy is favorable to us. We will export Cresta Electric to where?

Okay, that's good to know. And just lastly, if I can squeeze in one more question. On the domestic side, in terms of model launches, I know you cannot go into specifics, but we've already seen the Creta Electric. In calendar 25, is there a broad number of launches, that is ICE plus EV, that we can expect for the remainder of the year, if you can give some broad indication?

I think we need to be patient we will at the right time maybe you know give this information so my request is that please be patient we will be announcing we MD already mentioned along with the Pune plant you know we will you will see lot of launches but how many in calendar 25 how many in 26 please wait for the right time I think we will we will be announcing yeah thank you sir thank you so much I will come back with you thank you

Ladies and gentlemen, in order for the management is able to address questions from all participants in the queue, you are requested to please restrict your questions to one per participant. You may rejoin the queue for follow-up questions. We have the next question from the line of Jinesh Gandhi from Ambit Capital.

Please go ahead. Hi, sir. Can you quantify the one-time impact in the staff cost which was there in this quarter?

And also, how did the count start to end up in CQs?

Sorry, Dinesh, we are not able to hear you properly. There were some disturbance on the network.

Can you repeat your question, please? Yeah. What was the impact in staff costs in this quarter and how much were discounts in this quarter?

Thank you, Dinesh.

See, on a year-on-year basis, the stock cost has increased by about 0.6% on the revenue. That is one. And as far as discount is concerned, so there were some discounts as we have mentioned because of the volumes we need to increase to Africa region. So, there was some increased level of discounts on the export side. And domestic side also, there has been some increase in the discounts. on a sequential basis that is more most to do in line with the industry scenario but still our discounting was very much below the industry average as far as domestic is concerned.

Yeah, I mean 2.9% of sales was discount. It would be 2.53% any indication.

So, on the as a percentage on ASP for domestic the discount was 2.6%.

2.6%. You got it. You got it. And royalty would be stable. 2.6% for Rether also gone up.

Royalty was, you know, almost similar to the Q2 level. During this Q3, it was 2.7% on the revenue.

You got it. And lastly, any comment on Krita? Even given that it's almost 10 days since he launched, how is the response?

Any booking numbers which you can talk about? Yeah, so Crater EV response is good.

It's too early to talk about what I, but what we feel is that broadly what we had announced in the Bharat Mobility was that we believe that 10% of the Crater volumes could come from Crater EV going forward. I think we should be in line with that broad, that broad number, you know, going forward and that will help us as a lever, you know, to, for our market share as a less power volume.

Yeah. Thank you. Got it, got it. Great. Thanks a lot.

Thank you. The next question is from the line of Gujan from Bank of America. Please go ahead.

Yeah, hi. Thanks for taking my questions. I just had a quick follow-up on prior questions. Just, you know, firstly on exports, could you give us some sense on what is the geomix in this year, you know, fiscal 25? Particularly, I'm interested to know how big is Middle East for us and, again, Africa, where is it gotten to? And on the exports, again, you know, you mentioned, like you mentioned for domestic, expecting a low single-digit growth for industry, market share should be stable. If I were to think of exports, do you think in fiscal 20 states, the growth can be better than this low single-digit that we're seeing in domestic or it's going to be pretty much in the same zone?

Hi, Gunjan.

See, the geomix is concerned during this quarter. Yes, Middle East was impacted. So, you know, it was, there was a drop about nearly 10% for Middle East volumes. On the other hand, because as we mentioned, Africa we have focused, there we have seen a growth of nearly 15% under Africa volumes is concerned.

Actually, I am... He is talking about contribution.

He is talking about not volume, he is talking about contribution. That is on the overall contribution. Sorry.

Yeah, I mean how much, how big is Middle East?

Is it 15-20% of your overall export volumes or is it... So, Middle East would be around roughly 37% during Q3 of this year and Africa would be close to 28%.

Okay, got it. And anything on the outlook for exports for next fiscal? I mean, I get that it can be a very big road driver from a midterm perspective, but more trying to get sense on next 12-13 months.

look very difficult to give a you know outlook but I can only say that things look positive and Pune plant with the end of this year coming in like I mentioned along with domestic we have those opportunities in export for example you mentioned 12 to 18 months Definitely before 18 months extra left hand drive will be up and running. That could be a big driver. We are expecting stability in other markets as well. So very difficult to give whether it will be 10% or 8%. I can only say probably it appears that the worst is behind us. And we should be able to see, get into a growth cycle in export. So we will definitely, I mean definitely, but we will have a growth in calendar year 25 over calendar year 24. At least in the business plan, that is what we are aiming at.

Okay, no, that's good to hear and quite helpful. My second question, again, a little bit of bookkeeping is on the Tamil Nadu government state, you know, incentive that we get. If you can just share, how, you know, what is the magnitude and, you know, how does it get accounted if, you know, if you can give some color on that.

So, yes, so Tamil Nadu incentive for us normally every financial year, more or less it starts from the Q3 onwards. So, roughly we can say on a you know monthly basis it would be roughly around rupees 30 crores kind of a range. So, even this quarter we had you know all the full three months impact it has been reflected in our Q3 P&L as well.

So, this will be part of operating income roughly around 90 crores in Q3 and.

Yeah. So, this is part of the other operating revenue that is what we are showing in the P&L.

And similar should be magnitude next year, next quarter, sorry.

See, more or less, you know, it follows a trend basically. Obviously, there can be some impact because of the product mix and other things. But more or less, it follows a similar trend. And Q3, to be precise, the amount was rupees 101 crores. That was the impact reflected in the P&O.

Okay, got it. Thank you so much. Thank you.

Thank you. Ladies and gentlemen, we will take that as a last question for today. I would now like to hand the conference over to Nitul Shah for closing remarks. Over to you, sir.

Thank you, ladies and gentlemen. That was the last question for today. With this, we conclude today's conference call. On behalf of Hyundai Motor India Limited, we thank you for joining us and you may now disconnect your lines.

Thank you. Ladies and gentlemen, we now conclude this conference. Thank you once again for joining the Hyundai Motor India Limited Conference Call. You may disconnect your lines.