Mahindra & Mahindra 144A

What's your name?

Good afternoon and good evening. I'd like to start with a tribute to Mr. Manohar, the director of our board, in fact, the lead director for M&M. He passed away this morning and we're very saddened by his passing. He was a wonderful person, someone who was always very positive, who always worked to find solutions, who had tremendous respect for each person and just an absolute pleasure to work with. You will miss him dearly. Our deepest condolences to his family.

And he's someone who we shall always cherish with a very fond memory as a key member of our board and someone who's made significant contributions to the growth of the Mahindra group. He was also a director for many years on the tech Mahindra board.

and therefore has been associated with the group for a long time. Let me then move to the key messages from our results this quarter. It was a very strong quarter overall.

We've had a number of strong quarters for some time now, but I would look at this as amongst the strongest. Consolidated profit after tax is up 24%. And ROE is north of 20% for the first time, 20.6%. But as I've always maintained, our target for ROE is 80%. We may go slightly higher or slightly lower from time to time.

And that's what we will stay with. All our businesses have driven this performance. And that's what you will see through some of the numbers we'll share. Starting with auto and farm. Significant market share expansion for SUVs.

The volume for SUVs is up 22%. And revenue market share is at 27.3%. Up 570 basis points. 570 basis points. Factor volumes up 10%. A 50 basis point market share gain to 45.2%. Very significant, especially in the 40s. Every basis point is valuable and our team's shown remarkable growth in a tough market overall. And it's not just about growth. Margins are very strong as well. With Otto continuing at a 10% margin, excluding electric STBs, as Rajesh will explain in detail, and farm PBIT margin is 19.8%.

As we move to Tech Mahindra and Mahindra Finance, what we see there is, again, very strong progress.

TechMindra has its EBIT margin recovery on track at 11.1% this quarter with an F27 target of 15%. Why the finance continues to focus on asset quality at 3.8% is well within the thresholds that the business has set. Assets under management are up 15% and while disbursement was a little slower, Given the environment that we've been in, this is exactly the path that we want to be on. And the business has shown very strong performance. And what you will also see in our numbers is the momentum for growth jumps continues at a very rapid pace. And what we are seeing in our overall result of a 24% growth in consolidated FAT and therefore in EPS, you will see all the businesses coming together to contribute to that.

He highlights revenue of 22% at the consolidated level, profit after tax of 24% to 4,083 crores. In auto, we talked about the SCB volume. The SCB volume is up 4% in a very tough market.

And what we would highlight there is profit after tax for auto is up 32% this quarter. Palm has seen market share gains, as I mentioned, margin expansion. And international subsidies have been a drag this quarter because of specific write downs that were taken and that results in a profit after tax of 7% growth, euro over here for the same quarter.

As we look at The key drivers of this performance overall, auto and farm continuing to capitalize market leadership, profit up 20%. Tech Mydra up significantly from last year. Mydra Finance up 6%, good solid performance right now.

And growth gems also up significantly. The growth gems more than profits, we look at the underlying momentum for growth, which is very strong. Life Spaces, or MLDL, has acquired 3,500 crores of GDP. Sustent has commissioned 70 megawatts, and Exelo has seen very strong growth in revenue as well as in profitability. The headlines for Minder Finance are reasonable growth, but more importantly, sharp focus on asset quality that continues. Very strong controls. We've initiated a specific project to strengthen that further. A high focus on technology and related to that customer experience. And all of this is what we had talked about with the final stages of most of that. And once we've done that, then we pivot to growth. And that puts the business on a much stronger footing and continue to diversify, which is also the next step for the business. TechMinder has seen some deal with Momentum, led by Telecom and Financial Services. The transition from a delivery standpoint has gone well, and that has been reflected now in strong customer feedback, as we see in our NPS course. And I spoke about margin earlier. The recovery plan is working well. And therefore, you see both of these businesses contributing well to the bonds forward and the overall results for the group. Logistics, we've seen multiple deal closures with Hemant coming in as CEO. We're seeing his experience coming to bear in the logistics business and a number of partnerships have been signed up and we're seeing a much stronger momentum for the business. Hospitality, again, very strong numbers, and we're looking at delivering a lot more. It's a business with tremendous potential and one that we feel will do much more to harness that potential. Real estate, you will see some variation at times in pre-sales quarter to quarter because that's the nature of the game, as well as in PAT. So you see a slightly decline, a 56% decline in pre-sales, a 4X increase in PAT, but that will be driven by one-offs. More importantly, the underlying trend is very strong, and we are going on plan for a 14X growth in pre-sales this decade. And that is also being supplemented by 3,500 crores of GDP that's acquired that I had mentioned earlier. So in summary, a slide that you are familiar with, and the new bar that's added to the slide continues that trend. with ROE at 20.6% and EPS for the quarter at 36.4 rupees, a significant jump or growth from the first quarter last year. With that, I'd like to invite Rajesh to tell us more about everything going on at Auto AdFarm.

Thank you Anish.

I'm going to start with the farm equipment business. And, you know, we've seen a very healthy growth in volumes in the context of the tractor market 10%. But most importantly, we've got to our highest ever quarter market share, which is 45.2, which is a gain of 50 basis points over the same period last year. So the momentum that we are seeing in the tractor business continues, you know, with both the brands doing really well, both the Mahindra and the Swaraj brand. This graph captures the trend line where we've seen an upward trajectory on an ongoing basis. The farm machinery business continues to show good growth and we had a 300 crore plus quarter, literally 100 crores per month with rotavators doing very well again in market share at 25%. And this was our highest ever single quarter revenue, the farm machinery business. The margins you see on the left is what is the farm standalone margin, which is at 19.8, healthy growth over the same quarter last year. On the right, you see the poor tractor PBIT percent margin, which is really the tractor business domestic plus exports, does not include farm machinery, does not include power. has again seen a very healthy margin, 20.7%. This is the graph we have been using to show you the ability of the business to manage margins within a bank, irrespective of whether the industry is in an up cycle or a down cycle. And we again have seen a very strong healthy margin performance in the context of a 9.2% industry growth. This is the farm consolidated number. And, you know, you're seeing a 12% revenue growth and PBIT growth. A very large chunk of this, you know, is impacted by impairment, as you see at the bottom of the slide that we took on the Sampo business in Finland. That's the harvester business. And if we had not taken that, we would have probably seen the PBIT growth at about 18%. Moving to auto, very strong growth. You know, most of you are tracking that the industry growth has been not so strong and we have continued to deliver in that environment, 22% growth in volume. The HCT business has seen 4% growth. This category is not seen the industry momentum that we would like to see. We've gained share in both. So you see the revenue market share up 570 basis points. The volume market share in LCB total level now 54.2. This captures the movement of SU's revenue market share time. And this is the chart you're seeing for the first time. So I'll spend a minute to explain it. The red line represents our penetration. That means our electric SUVs as a percentage of our population. The black line represents that for the industry. So what we are seeing now is our electric SUV penetration is close to 8%. You can see over the last two quarters the pace at which penetration is moving up. On the right side, you see the ESUV volume market share, and that is mean at a healthy 31. As we just saw, both of which have got a very good response in the market. This captures the destination of the Jatro data, captures the revenue market share, which you know, a very strong 44.3% as percentage of electric SUVs and 40.9% as a percent of electric passenger vehicles. That means check passenger vehicles as SUV plus cars together. The LCV, we just spoke about the fact that the industry is in a slow growth phase and our market share continues to be strong and robust. The auto margins have been strong. The auto standalone PBAT percentage is at 10% which we believe is a very strong performance in the current environment. We'll explain this a little bit more in detail so that you get a granular understanding of this. So the auto standalone as reported is a function of two things. The auto standalone number which you just saw in the previous slide and the margin that we make on the electric SUVs manufacturing contract. So we, M&M Limited makes vehicles on our contract manufacturing conversion cost for Mahindra Electric Automotive, the separate legal entity. The margin there is only on the conversion cost. You can see that on our revenue of 2,800 crores, the PBIT there is only 7 crores because that is a conversion cost margin only. And that drops the 10% to 8.9%. The 10%, which is the core business in which we play, as you call it, auto standalone, continues to be at a very healthy PBIT margin level. The bond electric business has delivered a very strong end-to-end performance of 111 crores as an end-to-end PBIT, EBITDA, sorry. And as a standalone company, Mealhead and EBITDA of 90 crores. And as you just saw, the rest of the EBITDA comes out of contract manufacturing, which is 21 crores. So that together creates EBITDA. The last mile mobility, we continue our leadership. Category penetration continues to be at a strong level. It's now at 28%. And the business scene of growth at 20%. These are the auto-consolidated numbers, so revenue of 31%, PBIT growth of 15%. This, of course, the growth percentages represent the fact that electric vehicles, SUVs are part of the revenue and are part of the PBIT, and we did see that we are losing money at the PBIT level because of depreciation on electric vehicles. With that, I'll hand over to Amar. Thank you.

I'll just start with two things first before I sum up the financials. One, of course, is, like Anish mentioned, it was a tough day for us. And as a finance professional, it was even tougher because Mr. Manoharan really was somebody who guided a lot of finance professionals. I personally benefited a lot from my interactions with him in the audit committee, and it is a big loss for the company. Resulting from that is the format of the earnings call that you see today. So this is not going to be the way we operate in the future. We'll go back to our normal routine from subsequent quarters. Just to then sum up the quarter, you already heard about the numbers. I just hit some highlights. At a consolidated basis, Otto had a 31% growth. Palm had 12% growth. Financial services had 16% growth, and out of the growth gems, two notable call-outs, Axelo that Anish talked about, 34% growth, and even Mindra Logistics had 14% growth. So pretty broad-based growth across the group. On the PAT side, again, Otto was the standout with 32% growth. You will ask why PBIT was 11% and PAT is so much higher. It's primarily driven by the cash generated by auto. It helps generate a lot of surplus fund income, which is what helps auto fat be so much higher. And then from a farm standpoint, we did see the depression because of the sample impairment, which gave it a 6% year-over-year. The other call-out was tech-end, which was up 34% year-over-year at a consolidated level. This is the bridge which explains that walk. You can see there is a significant contribution from Otto Palm muted by what we had to do at Sampo. I do want to emphasize that what the sample run rate of impairment is not going to carry into future quarters. These were the two large we have to take an impairment in the fourth quarter and we have had to write down assets in the first quarter. in anticipation of certain actions that we are taking. And this should be the end of anything major coming out of SAML. And then if you look at the services side, that had a significant contribution by TechMN. And on a standalone basis, again, Rajesh talked a lot about that great performance from AutoInform, which has resulted in that 32% back growth. I do want to, while we have no charts here, I do want to talk about cash very quickly. This was, again, a very strong cash generation quarter. As you would recall, we had announced two rights issues. We have infused close to 2,500 crores into two of our subs. Despite that, our cash balance actually grew quarter over quarter, thanks largely to the very strong cash generation from AFS. With that, we'll open it up for Q&A.

Close your eyes.

Thank you, everyone, for joining us online. And as we're getting the questions, we'll kickstart the Q&A. The first question is from Nandini. Nandini Sengupta from TOI. Her question is about sentiment pickup better in rural India than in urban in FI26 so far.

Yes, rural sentiment is better. And we see that in our tractor business. Urban continues to be weak. There are multiple reasons for that, but the fundamentals are strong.

So on balance, I do believe that given everything that we've seen with regard to rate cuts, greater liquidity, and the Overall, sentiment being weaker will likely turn around. We had a good ponzo. Again, that matters for rural, but for urban, our sense is we will likely see some sentiment turn around and us getting back to a stronger growth. But at this point, it is weaker. Then we have Rajesh's comment on it as well in terms of what we see specifically in the auto business in urban India. Yes, and I believe we do. And I mean, I was speaking of that there is an urban slowdown. It is quite tangible at this point of time. We do know that sentiment, like Anish said, I think the fundamentals are all in place. The sentiment is probably what's coming in the way and seen at times that as festivals start coming in, there is a turn in sentiment and we're hoping that the industry in Europe starts picking up towards the end of August as the festival seasons get started in some parts of the country and then September with the Nataraja and Diwali.

Swaraj from Financial Express has asked, what is the update and how are we placed, as in Mahindra placed, with regards to rare earth magnets inventory across segments? And have we decided the location, investment and proposed new plan that we had talked about last time? What is the current capacity our factories are working?

I'm not sure and this is the third question. It's nothing to do with the rare earth.

Yeah.

So, hi Swaraj. So, we are comfortably covered on the rare earth magnet issue as we have shared earlier. We have no disruption in production because of that. We have taken a series of actions. Some of it has been around inventory. But we are covered comfortably at least for these two parts, the coming quarter and the next one. And mostly covered on everything for even the fourth quarter of the year. We have taken a variety of actions substituting the rare earth with light earth. We have looked at ferrites. So, multiple sets of actions have been taken to re-risk ourselves and at this time we feel comfortable that that is on second question.

Yeah, it was on the plant. The second question is about your proposed investment in a new plant.

okay uh again that's nothing to do with the error okay yeah so uh swaraj where we are on that is we had said that for the new upcoming platform we will expand the capacity within java that's all on the way and you will hear a little bit more about what that team platform is very soon on 15th august uh we have actually been able to pull out more out of the Jhaktan plan than what we thought and hence while we are exploring the green field as an avenue to make us completely future ready, we still have not zeroed in on the site and that we will do over the next few months. So we don't have an urgency at the moment given that we will be able to handle production capacity increase within Jhaktan for the new platform that is getting created. The capacity utilization, I think you see our numbers right now. We have a nice capacity of roughly 55,000. We are in the mid-40s, so roughly about 80% or so is our capacity utilization. And it's about the same for electric vehicles that we are selling. In this time, we are ramping up to a level of about 4,000. We could go up as we come closer to the festival season.

A couple of questions from the analyst as well. Couple from Namura. Questions are as follows. Congratulations on strong quarter once again. Demand environment is tougher than expected. Is there a risk to SUV growth guidance? And well, I'll take the second one as well. What is driving the EV profitability improvement? What will be the further margin drivers for electric vehicles? What's the status update for PLI? So, well,

A couple of, well, I'll request Arish to answer the question. What we've been able to demonstrate so far is the ability to manage the risks and be able to deliver what we've committed. So that is our hope at this point as well. And that's something that we do feel very strongly about. So with that, Arish. So Kapil, the question is a totally valid question by way of the risk to the SUV growth guidance that we put out. We stay with our number. So we stay with the mid to high teens as a growth percentage. We believe that we will achieve this because we have two new electric SUVs, two more which will come in the part of 2026. And we have, you know, done Minor variant refreshes, if you may call it that. For example, on 3XO, we've done the RevX 2 version, which I thought was a very good start. We've done a couple of new versions with upgrades at this point of time on Scorpion. And other similar tactical actions are expected over the next few months. We do have an aggressive launch calendar for 2026. part of 2026, which affects the financial year of 2026. So, we do feel comfortable at this point of time with the state of the current economy as it is to be on our idols of mid to high SUV. Of course, it is a big deterioration in the economic environment over what it is now. That's a different story. But the way things are, we stay with our guidance. On the electric SUV, I just want to clarify that we have not approved any PLI at this point of time in the numbers that you saw. So, the EBITDA that has been shown here is without accruing any EBITDA or any PLI benefit. We have qualified, as we said earlier, for the XCV90 PLI. from a point of view of meeting the DBA. We are waiting for the final technical audit certification, which should come in in quarter two. Once that comes in, at whichever time, either quarter two or early quarter three, we will approve the PLI for the HCV-90, which will be a combination of, cumulatively from the time, close to the time that we launched. The P6 PLI is something that we will hope to apply for in quarter four of the year and accrue it subsequent to the application which takes roughly three months. So that's where we are on the PLI. What has enabled us to deliver this financial performance on the electric SMEs? I think the following. Right now, we have sold only the higher end versions. As you know, over the next few months, the mix will include lower end versions. It will, of course, be a little dilutive compared to what just selling the top end versions is about. Secondly, I think we have the benefit of having, leveraging existing assets of Amazon. we must underscore every time we have this conversation and that's a huge competitive advantage that's available. We are using existing manufacturing facilities except a few shops, some of you have seen it in Jakarta. And that helps us keep overall fixed costs at a low level and is helping us deliver a reasonable financial performance.

You've covered it well. Thank you. Just one final the XUV3XO doing well in South Africa, etc. So we do have a little bit of international leverage which we probably didn't have in the past. So just wanted to add that.

Another question, well it's come from Gunjan from Guelph.

It's moved.

Yeah. Some of them are repeat, but I'm just going to take you through implication of rare earth on both ICE and EV SUVs, which you answered. Ramp up of EV business. How should we think of ramp up to 5K per month run rate, which I think we're already doing. And finally, any color on booking run rate, portfolio and variant expansion and customer feedback. Also, talk about contribution margin for the EV offerings that you have.

A lot of these have got answers, or maybe had a qualitative fear about that. So, just to add, Kunjan, on the ramp-up of EVs, we are right now at 4. As we get into festival, we would ramp up to the level of 5 to 6 that we spoke about. And then the further ramp-up beyond that we expect to happen after January when we launch the additional two products which we have spoken about. So that is something that will happen in the early part of 2026. The feedback out of customers who are using the product and we track this very regularly. So we have, you know, the typical methodology of that promoters for tracking, which is about local benchmarks. So we track that on delivery, which is a two-day, second-day ownership feedback and a 30-day ownership feedback. All of these are very strong numbers that we are getting. we believe that the value proposition is very strong. And we are getting a very different profile of customers. Interestingly, these electric vehicles have the highest women ownership amongst all our product portfolio. So, you know, we are getting a very different profile of customers. I don't remember right now the exact number, but I think 80-odd percent of our customers who bought electric vehicles are not men. Business Today has asked a question on... About ex-customers of Mahindra, ex-author or car customers.

Okay. With the CAFE norms becoming mandatory for commercial vehicles, including the N1 category, what sort of impact do you see on the margins? And overall your view on the CAFE norms, what's been happening in the press?

So on the CAFRE norms, basically, you know, this is a discussion that is very actively advocated by SIAM. SIAM has given for the passenger vehicle business a proposal around the CAFRE norms in December 2024 and for the commercial vehicle gap in 2025. We strongly endorse and support the SIAM proposal and we believe that there's very high alignment within the SIAM organizations around that. We will wait for the government to come back on what is the final version of that. And we would be prepared to, of course, implement whatever is the final decision. But we believe there is high alignment within the SIAM around that.

Naveen John from Fortune India. Mahindra, what is the timeline for Mahindra's scaling its EV offerings and how do you protect and grow the market share in face of fierce competition that will intensify with the entry of new international players?

Yeah. So, I think I've answered the question on the addition of the new products. Of course, you know, as new players come in, market share gets eluted. From a volume standpoint, we do believe that uh you know that hence our goal should be around the revenue market share because our products will be at much higher average price points than opposition uh we like what we've seen with the entry of new players for the last two quarters we've seen the ev penetration as you just saw in the graph first start to move up we believe as more players will come in if the penetration will go up that is fundamentally the right direction for the country we strongly endorse the EV journey that the Government of India has laid out. And, you know, we are seeing very good progress with new players coming in. The charging ecosystem is also getting much more stable and there are very strong plans that the government has to implement through the Ministry of Heavy Industries. a stronger charging infrastructure. So we think as a combination of all of this, we will start now seeing a rapid growth in EV penetration as water pump kicks in, ecosystem starts developing, and that will lead to growth for electric vehicles. And I believe overall for passenger vehicles to that process. So, you know, I think we will have to assume that as competition comes in, market share will get affected, but overall volume growth should start taking place.

Yeah, I'll just add a couple of points to that.

We've had this question on competition for a few decades now. And what we've seen is that competition has always made us stronger. One difference we see this time is that usually in the past, when competition came in, we had to improve our offerings, which we did, and we could combat competition well. This time with the electric cars, we have electric cars. Our products actually stack up very well against the competition coming in. So we're in a better position to start with. And that gives us a lot more confidence based on what we've achieved over the last few years to be able to do well in the market. And I would dare say, you know, maintain and potentially grow market share as well.

Arvind Sharma from Citi. His question is views on commodity costs and the impact on Q1 FY26 margins. Also, if you could please share any updated news on Tram 5.

So, on the commodity prices, we are concerned about steel going up. Steel has gone up by about 6% over the last quarter. We were able to mitigate some of this in quarter one through hedging. and entry carry overs as well. We have taken some price increases to pass this on to customers as well already. But really our view is that, you know, looking at the overall inflation levels in the category, there should be an effort made to moderate the level of inflation that is getting kicked off with raw material increases to steel. and uh so but that is that is something definitely which is a watch out um i think the second question was around trend five uh the government had put a panel in place and uh they made a recommendation uh splitting the level kind of implementation needed by different horsepower categories uh we believe that is a reasonable proposal and we are comfortable with uh you know, an ability to implement that in a manner which is realistic within the crucial infrastructure available in the country and the preparability and sustainability of, you know, the changes in the product to meet that level of emission requirement. We will, we are still waiting for a final verdict on what the timelines for those MOCs are once the panel report is being evaluated. What did I talk about?

You mentioned.

Yeah, I just, on the commodity inflation, it's important to understand that the hedges act on our overall purchases. So while we did get enough offset in the current quarter, if the steel inflation continues, then that will impact future quarters. We, of course, like every other quarter, we'll have actions to try and offset, but it is a true headwind for That will have to keep matching. And in addition to steel, steel was the largest. There are certain precious metals which are also starting to see some inflation that could be driven by just overall pre-buys driven by the U.S. So we'll have to watch that as well. But inflationary environment is right now a little bit more than what we were counting on till last fall.

As you ramp up delivery of lower variant of EV models, do you see a higher cannibalization of existing ICE models? Any update you can share on the farm machines business? It seems to be trending behind your targets. What's the reason and how do you plan to address it?

So firstly on the lower packs of BEVs, we think that those packs are very important and as a part of the learning will have back towards 79 kilowatt hour uh which we've announced and we think that's an attractive price uh we've always said that we are agnostic to cannibalization because over a period of time the unit margin of an electric vehicle and an ics uv is going to be the same so you know and which is why we've been comfortable about putting both the portfolios in the same dealership showroom. So our mandate is to sell what customer choice is and we are happy to give customers the choice to choose between any of our packs and between EV and ICE. So it is possible that there will be cannibalization but we think that there will be overall growth. So far with pack 3 we have not seen cannibalization, of course that was at a different price point. With pack 3 as well, pack 2 which comes in 79 kilowatt hour is at 23.7 or less. So it is not like it is cannibalizing into 80-90% of our world. The only product we have at that kind of a price point right now is XUV700. We have nothing else in that price range right now. So we are not too worried about the cannibalization. On the farm machinery business, We have recalibrated our ambition and moved into saying reasonable growth without diluting profits. So we have moderated our growth ambition and we are now within the growth ambition that we have set for ourselves and we will focus at this point of time on strengthening our product pipeline across multiple streams. We We have a list of businesses right now, market share about 5% to 6%. We've launched an improved product and that hopefully we're beginning to see traction on that and we'll start building share on some of these big categories which are valuable drivers. We will take the growth more incrementally than what we are set out to do, but in the process of that, manage the bottom line on the farm machinery business side of

NBTV Profit, Puneet asks a question on the ROX bookings and delivery schedule now. 3X shows current availability in which export markets and what stable volume targets for exports are you expecting for 3X?

The Thar ROX has a booking pipeline. The booking pipeline is much more of the 4x4 part of the portfolio. You know, as we said earlier, our intention is to not have long waiting periods in booking and that's the endeavour. So we've started, we've ramped up, as we said, we've unlocked the fungibility issue we had between below and ROX. So we have been able to ramp up ROX volumes now, which has reduced the waiting period. And hopefully we will continue to work on that. On the export piece, 3XL has done extremely well in South Africa. I've just launched it in Australia, and the initial response has been very, very positive, very positive media reports and customer reports. At this point, we're hoping to do roughly 1,000 plus of 3XO in the next four months, a month.

Okay. Question from Money Control from Varun Singh. How much is the overall first-time buyer penetration in your SUVs now? Can you also share some model-wise percentage figures? And with tar rocks, introduction of tar rocks, what's been the impact on the three-door tar volumes and e-bio penetration?

It's very hard to measure first-time bioresonance. So, I'm not venturing into that data point at the moment. uh the source of uh you know the data around that across models we found is not always very reliable vehicles are owned in different people's names uh india is a country with a joint family system fifty percent of our audience come out of rural uh so you know it's very hard to get very reliable data on who in the family especially in rural india uh you know in whose name it is uh so i you know we've realized after trying to measure that that it's not a very reliable piece of data so i would kind of stay uh away from that uh sorry so these can you add what are the ads can you just uh recap that you have a test yeah so uh three door yeah the third three door uh is doing about between three and a half to four thousand a month and uh You know, between the two rocks and the Thar three-door, we have reasonable fungibility now, but we are consuming almost the full capacity between the two. So, in a way, we determine the mix of the two.

Question from UBS from Pramod Kumar. Some questions are repeated, so I'm not taking that. A bunch of others. How should one see DNA evolving for autoconsolidated going ahead? Can you please remind us about your auto launch pipeline for FI26 and FI27? And giving the response to your BEVs and India's low-cost advantage, is there an opportunity for an alliance with a global OEM for exports of your BEVs?

Some of you will recall in the fourth quarter, we had to do some cleanup of certain projects which caused the depreciation to spike. It's now back more to the normal range. What you see is with the capex, that we have, we will see quarter over quarter some growth in DNA, but it is not going to be the kind of spike you saw in the fourth quarter. I'm assuming that's where the question is coming from. And as we called out at that time, we expected it to drop in one few, which is what it has done now. But this should be the run rate with a gradual increase as the capex comes online and we have to depreciate or amortize that.

On the product pipeline promote, we are on track with the product pipeline that we and shared by way of numbers. It will be an exciting 2026 and of course 2027. But we hope to see more, you know, share with media more details and with all of you in the Investor May to November on the new platform which will get revealed on the 15th of August where you will get a better visibility on the back end. So it is You did speak about the EPs and the opportunity of using India as a low-cost center. We are seeing that benefit as we see new players coming in. We have a very strong value proposition. We at this point of time are not necessarily thinking of any alliance, as you call it, around that. But there are opportunities for us to grow globally.

So Mantra's question, is Classic Legends current market performance meeting your expectations? When do you plan to have it listed and unlock value?

So Classic Legends has a fantastic set of products. There were nine awards that we won last year and this year. And the market overall has been slower, which is what we're seeing reflect in our numbers as well. But there's a high degree of optimism around it based on the products that we have. and what that can do for the business as we go forward. We are hoping to see a good festival season up ahead and are gearing up a channel ramp up to leverage the new products that have just been launched and are in the pipeline for launch.

Amit Hiranandani from Phillip Capital. Why M&M is behind in exports as we have world-class SUVs? What steps are you taking to increase export sales?

Amit, I think it's not fair to compare exports of ours with other global players. For other global players, they don't need to build either a brand or a channel. India becomes, in a manner of speaking, white-labeled. for them into those countries. For us, we have to go country at a time because we have to establish dealer network, channels, pairs network, logistics on the ground, and most importantly, brand and goodwill. And that's the approach we've taken. So we've invested, for example, over many years in South Africa, and now with the right product portfolio, we've gone into being the top 10 OEMs, the fastest growing brand in South Africa. This is a result of the effort that we put in. Today, if you go around South Africa, you'll see very good-minded issues and the same is being seen in places like australia so i think we will have to build our brand step by step at a time our idea is not to be ad hoc about it and try and just look for short-term deal based exports but to fundamentally invest in brand channel and market creation and that's the process that we are on

Question from Bus Coach India, Santosh Sharma. Electric buses are gaining traction. Is M&M planning to capture a share in the electric bus segment? Any investments you plan to do to further expand the electric bus business in collaboration with XMLSUSU?

So, SML Isuzu has revealed electric bus and it is a pretty good bus it looks like. And whatever we do in the electric bus segment will be through the SML Isuzu entity. So, that is probably the plan. There is no plan to do any electric bus within the Mahindra trucks and buses.

I think other questions are a repeat of most that I already asked, so I think we can... wrap it up. Thank you everyone for joining in and we will close the session now. Thank you.

Thank you again everyone for joining in and appreciate your presence in coming in today instead of tomorrow, which is what we traditionally plan for, which is given the circumstances today, we felt that it was better to close our board meeting and the results as well.

So thank you. We appreciate your presence.

You're fine.

This was our family.