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Bharat Forge Ltd
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Ladies and gentlemen, good day, and welcome to Bharat Forge Q2 FY '23 Earnings Conference Call. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Kalyani. Thank you, and over to you, sir.
Good afternoon, ladies and gentlemen, and thank you for attending our Q2 investor call. As is usual, I'll take you through a short introduction and then open up for Q&A. I have with me our management team, heading our component business, our industrial business and our Finance, Investor Relations teams as well.
So some highlights. We had total sales of about INR 1,863 crores, which was a growth of about 6% over last quarter. We had export of about INR 1,066 crores, which is the highest we've had so far. Our domestic revenues were also grew about 13% over last quarter, and we've seen overall growth in our passenger car business, our commercial vehicle business between India and Europe. And on the engine side, we have seen -- on the higher horsepower engine side, we're seeing growth. And in aerospace and defense, we've seen a significant growth. Our domestic revenues on both commercial vehicles and passenger cars have grown very nicely, and our aerospace and defense business also continues to grow well.
So some of the highlights are the highest export revenues this quarter. Domestic revenues include INR 80 crores of vehicle sales to the armed forces MoD. So in our domestic, in our overall business, we have an EBITDA of 24.3% where we have some one-off, including LD of about INR 13 crores or INR 130 million charged on our defense business, which is a onetime issue. And it is being contested because this is an order we received during COVID, and the original delivery treated was during COVID and it got extended because of exigencies to do with COVID. Therefore, that impact, if it were reversed, EBITDA margin would move up to about 25.4%.
Inflation has impacted margin by about 40 to 45 basis points. Our rupee realization was INR 81 to the dollar. Passenger vehicle revenue is now at about 18% of total sales, which is about INR 340 crores, which is almost 7x of what it was in FY '16. We've had new order wins of INR 900 crores in this quarter, primarily in the export business, driven by market share gains and new business in passenger cars and in industrial sector.
On the overseas business, our aluminum business has had a poor performance this quarter for the first time since its acquisition, and this is driven by many factors, primarily external and some internal. We've had significantly lower-than-anticipated sales on account of issues of supply chain within the whole automotive industry: energy cost increase, which is yet to be passed on; raw material price increase and availability issues; and a higher level of staffing in anticipation of higher demand. We expect that this will get addressed and come back to steady state by first quarter of next year. So the next 2 quarters will be quarters where we see improvements. And by first quarter, we should be, let's say, heading back to track. This does not change the fundamentals of the business at all. In fact, it remains very strong with lots of new traction and new business wins. We are addressing all these issues, and we expect this to improve over the next 2 quarters, as I mentioned.
The JS Auto acquisition has been completed. In fact, in the short period, that acquisition was done from July until end of September. We've already won INR 100 crores of new business with our customers for high value and high value-added products. Our work on cost rationalization, new product development and customer engagement remains strong. And in fact, we expect to see very strong double-digit growth Y-o-Y for this company over the next 2 to 3 years. We see a lot of interest from our customers in the industrial space, automotive space for a variety of reasons. Some of them are for moving production out of China into India for India. Some of them are moving out production from Europe into more competitive locations and so on and so forth. And JS Auto being a fully integrated supplier with machining capability and product development capability is very well placed to take advantage of this new business.
On the defense front, I'm very happy to report that our 100% owned subsidiary, Kalyani Strategic Systems, has won an export order worth $155.5 million for the export of artillery gun systems to a non-conflict zone. These orders will be executed in a 36-month period from the time of order placement. Now one of the reasons we're able to do this is because this is a indigenously designed, developed and manufactured product with 100% of the IP owned by Bharat Forge or by the Kalyani Strategic Systems Ltd. And BFL will supply a large number of components for this product, and the integration, testing and supply will be done by KSSL. We believe that this is the beginning of a series of new order wins for our defense vertical.
I'm also happy to report that we have secured multiple orders for export of components and consumables in the defense space, both for repair and maintenance and operations across segments in the defense space. And this also will continue over the long term. And all this will lead to taking our defense business from the level of INR 300 crores to INR 500 crores, we believe, to somewhere in the INR 700 or INR 800 crores to INR 1,000 crores per year basis without any big programs kicking in. And as and when big programs kick in, this will obviously increase substantially as well.
On e-mobility, I'm very happy to report that we have finally got the same 2 approval for port. We were actually waiting for this to happen. And because of a lot of technical issues and some mal patients at some of the other 2-wheeler manufacturers, claiming fame without actually having indigenous content, the whole scrutiny process was much longer. We've successfully passed through this, and we have now covered close to almost 0.5 million kilometers without any incidence, recall or technical issues.
We continue to remain positive overall on the sales growth across automotive vertical and other segments. E-mobility will start growing in terms of revenue from '24. Next year will be also a growth year, but it is the beginning of the growth phase. We see all our EV vertical, whether it is repowering our 2-wheeler, 3-wheeler or power electronics, control electronics, all beginning to start taking off by the second half of next year. And in the year after next, we should see a substantial growth and accretion to both top line and bottom line.
That's really all I wanted to say. I just wanted to, on my behalf and that of the management, invite everyone here to an analyst meet where we'll talk about the next 2 to 3 years and our business strategy and goals. This will take place on the 9th of December, which I believe is a Friday in Pune at our Center for Technology and Innovation. And our IR team will send out an invite and make arrangements for all of you. So we'd very much like to have this opportunity of interacting with all of you. And I'd like to request you to save the date. This is 9th of December '22 in Pune.
So that's all that I wanted to say, and we'll now open up for Q&A. Thank you.
[Operator Instructions] The first question is from the line of Gunjan Prithyani from Bank of America.
Two questions from my side. Firstly, on the class 8 truck outlook. Clearly, there's been a big positive surprise in terms of the order intake in the last 2 months, which is at a disconnect with the general industrial macro indicators. So any color on this will help us understand how should we be thinking about production because if I annualize the order intake, then it shows a very meaningful growth. So maybe some color on how we should be thinking about class 8 U.S. truck production over the next 12 months or so.
Yes. I'm going to let my colleagues, Subodh, answer this. Subodh, please go ahead.
Yes. So you know by now that there are the orders that come in there for production at a later date, and this is more of sales orders that are booked by the OEMs. We have seen ups and downs in the last, I would say, 10 months. But if you look at the statements that all OEMs have been making, their production slots for most of '23 have been booked. And they are all following a discipline to maintain a month on month -- a steady monthly build rate, which varies between somewhere in the region of 28,000 to 29,000 trucks. So from that perspective, there should be stability for the next 12 months to 14 months. And these are the high intake of orders, hopefully. It should continue the momentum for 2024, which, in any case, is supposed to be a strong year as well as being forecasted.
Okay. So 28,000 to 29,000. Okay, that helps. The other question was on the JS Autocast in Sanghvi. Is it possible to get where the revenue level right now is of the [ sub sense ]? How should we see that ramping up maybe F '24 and the rest of the year?
Sanghvi, when we bought it was at a revenue of about INR 45 crores to INR 50 crores per year. We have now doubled the revenue of that company. In terms of JS Auto, when bought, it was about INR 400-odd crores. This year, we will see, let's say, in the 10% to 15% growth. Next year, we will see a growth upwards of, I would say, 20%, maybe even 25%.
And the margin profile on this? Is it any different from stand-alone?
So in Sanghvi, we don't do machining. So the margins are at about 20%. In JS Auto, the margins are at the top end of the casting industry. But with all the measures that we are taking jointly, our goal is to get it also to double digit with -- starting with a 2 in a 2- to 3-year period.
Okay. Just last question, maybe a clarification. In your comments, you mentioned we expect the subsidiaries, the aluminum business going, heading back to track. I mean by heading back, we mean we'll be back in green? Or is it -- we are thinking about getting back to that high single digit or the margins that we've been guiding too early...
[indiscernible] business, our margin goals are high teens, 16%, 18% or so. And for a variety of reasons, we have had a significant impact in this quarter. And this will take about 2 quarters to get cleaned up. And we will expect that by the end of next year, we will get back to very close to the normal EBITDA level that we had in this business in Europe.
The next question is from the line of Kapil Singh from Nomura.
First of all, congratulations for winning the defense artillery gun export order. It's great to see the progress. I had a few questions on defense. Are there more countries with which we are negotiating such type of orders? And what is the ordering time period that we normally see? Because this has come fairly -- in a fairly short period, I would guess. Also, what is the asset turn in this type of business?
Yes. So that's a very -- your second question is actually a very good question, because to execute this order, we don't need large investments. We need an investment in a facility, which will be roughly -- which is already underway of about INR 30 crores to INR 40 crores because this will be an assembly facility. A large part of the high-value components will be made in Bharat Forge. And we supplied and designed -- I mean, say, integrated in this new company. So the asset turns are very, very high. And the margins are good for both BFL as well as for the supplying company. So that's the second question of yours.
First question is this whole Make in India [indiscernible] and the way the defense industry of India is being marketed by the government through its various channels has proven to be very successful during the defense export that took place last month in Gujarat. We had more than 16 countries visit us with a fairly serious intent of pursuing some business opportunity with us. While everything will not certify, some things will take more time than the other. But it's now very apparent that the world recognizes the capability of India in defense manufacturing just as they did 15, 20 years ago in auto components. And we believe that the kind of growth that the auto component industry saw in supplying to the world will potentially start in this field going forward because we have very good manufacturing and technology capability. And for companies, which have their own IP of design and product, then nobody can restrict you. So if you have both those, let's say, qualifications, then I think there is a huge opportunity going forward.
And the answer to your question in a very simple way, yes, we are engaged with multiple customers across the world for similar programs in a variety of stage.
Okay. Great. The second question is on passenger vehicle business. We have seen a good uptick this quarter. So if you could just talk us through what are the product segments that are driving this and also how this will ramp up. And the margin profile of this business, how does it contrast with the CV business?
So a lot of these businesses are what, let's say, we had planned through the pipeline. So they are actually coming. They're getting mature now, and we are implementing series production as we speak. We expect this traction to continue in the quarters coming ahead with some more new programs launching, and then we expect them to stabilize.
As far as the margin profile goes, it is similar to the CV business overall. The only difference is, in this case, it is more of a supply as compared to in CV business, we tend to have more value addition in terms of machining. At this stage -- at least for now, these are unmachined programs, but they present opportunities for us in future to add more value, which is also being worked upon.
We have a lot of more business that will ramp up over the next 2 years.
Okay, great. And sir, just one last comment on debt -- net debt. It has gone up. What has caused this? And how do you see this evolving from here on?
So the net debt has gone -- basically, for the new debt, which we have taken of INR 400 crores in the first quarter. And in terms of the cash, the cash has come down marginally also because of the working capital increase because of volumes. Now we can't borrow additional money, but I could just see that the negative interest [indiscernible], we're using optimal use of our cash and putting it in the business. Is that clear?
Sir, just if you could just talk about how this will evolve. Is the working capital higher than normal? Or is it is at a normal level now?
No, it's line with the business. It's -- as inflation in the business and growth in the business, and now number of days remains the same. It's just volume growth. And also in the export proportion is growing, which is a higher recovery item, because it's more of a volume effect rather than anything. So volume and inflation.
The next question is from the line of Pramod Kumar from UBS.
Amit, on the artillery gun order, what you've been talking about. I believe you guys have made some 4 or 5 different types of artillery guns. And this one is clearly not the ATAGS, which is like the main or the show piece in terms of the technology. If you can just help us understand what kind of potential is there in ATAGS, because I believe the supply to the Indian defense forces is not recognized in the quarter in the revenues, yes. So how should one look at the revenue potential from that gun in the domestic market and also in the international market, especially for ATAGS?
So look, ATAGS was developed as the main line gun for the Indian armed forces. There is a requirement of something like 1,500 guns of ATAGS, of that category to replace all the other guns, which are of various vintages starting from '16 onwards. So the revenue potential is tremendous. I mean, 1,500 guns is a very large amount. And we also have the opportunity to export the same product.
So this is a tremendous long-term opportunity, and this is not an opportunity which has -- which is yet fructified or is in our order book in any way. And decide that we have 5 other guns. And there are discussions happening with multiple users for multiple different platforms. For example, the order that we have received is also for our non-ATAGS guns, which is developed by us at -- from scratch.
So -- and Amit, I think the earlier talks that -- in addition to ATAGS, the government could also recover import option. But I believe in recent days, the expectation is that they may not actually go for that. And rather focus on the ATAGS kind of a product, right? So are you also picking up because that will [ significant ] upsize the potential for Bharat Forge, right? Because earlier, it could have been...
With the clear focus on Make in India and IDDM, the Make in India and IDDM is the highest category, which is Indian Designed Developed and Manufactured -- Indigenously Designed Developed and Manufactured. And the advantage of that is that there is no potential for anyone to hold you ransom for technology. This is 100% indigenous product. All the subsystems, electronics, everything has been localized or is local.
So it's very clear that in a scenario where you may have technology denial, nobody wants to rely on someone else's technology, especially if you have that with you. Now if you talk about aircraft and you talk about advanced -- super advanced technologies like that, yes, that is a choice one has to make. But in areas where you already have your technology, why would you go anywhere else?
And that is what the MoD has decided. In fact, they have come up with a negative list last year. And that negative list clearly says that products of these categories, which are enumerated in that list, may not be imported.
So in a way, ATAGS is like the prime candidate for those 1,500 guns order over a period of time, right, because...
We already look at design, develop and manufacture our products in India that meets the criteria and is competitive. It's in that frame.
Absolutely. And the expectation was that this year, we should see the revenue recognition for tax. So are we still on course for that?
Unfortunately, that is not in my hands. And I think we'll just have to wait and watch. Everybody is working hard towards it. But it's, as I said, not in my hands. But sooner than later, things have to happen. I think there are a lot of people waiting in the line. So maybe we'll move on to the next question, please.
Next to last question from my end is on the industrial side, export industrial. Given the macro uncertainty, if you can just help us understand how do you see this business evolving. And whether should one -- too much about the overall macro or Bharat Forge's footprint is not that large enough, which gives you the headroom to keep gaining market share. So how should one look at the export industrial piece, Amit?
We see a lot of opportunity for exporting industrial components, especially to Europe and to some parts in North America as well and other parts of the world. Until now, we were only supplying forging. Now we also have castings as a large growth opportunity. In fact, we see the casting export is as big an opportunity, if not bigger than forging. And I think both of these combined will provide a tremendous growth for our industrial business going forward and allow us to grow our industrial business very significantly by '2025, '26.
And this comment would include even the near to medium term?
Gentlemen and ladies, a lot of questions that you're asking right now will be addressed at our analyst meet on the 9th of December. If I answer everything now, none of you will want to come there. So let's save something for later.
We get to drive the armored vehicle, right?
Yes, we will have one available for you all to drive.
The next question is from the line of Pramod Amthe from Incred Capital.
Congrats for winning the first defense order. Some more details, obviously. And what is the rule of thumb in terms of the value add for these guns? How much you'll be adding the value versus the -- assuming the INR 100 as sale value?
I'm not going to get into that because there's too much competitive knowledge and information in that. Every -- whoever supplies things, it will be supplied on a linked basis. with the right returns that it takes for both entities. But please remember that KSSL is a 100% subsidiary of BFL. So everything comes under BFL in one way or the other.
Okay. And second one related to [ SMEs ], considering these are like government orders. how are the payment terms for them? Will there be a long receivable cycle? Or how are you building interest?
No, it's actually quite clear and simple, and there are no such issues. We today can't talk about that, but it's not an issue at all.
And considering that these might be a make or custom orders, some of them. So will there be a scale benefit for them? Or these are like day 1, you'll be relatedly superior margin products to assume in that side?
We all made profit from day 1.
Okay. And second one is, this is more for a disclosure point of view, considering that defense is a completely new sector and it's very difficult to get handed on the -- what you guys are negotiating or the order size and all. Is there a scope to give the way you -- once you announce the orders, that's one.
Second, in terms of -- anything in terms of the negotiations, how much you are doing the book size or any of that? That would be able to give us some color to look forward to. It's more tradition you guys can look.
Nothing as of now. And I'd like to make one very clear statement on ESG with regards to defense. We will never make any banned weapon systems or subsystems under the various UN conventions. So nothing to do with chemical, biological or weapons of mass destruction. And we will only sell to entities that are approved by the government of India as the government, which we are a company that is in the country of. So we will never supply to anyone who is outside of these parameters. And we will never produce, design or supply anything that is banned or comes under those categories of BCG, biological, chemical and weapons of mass destruction.
The next question is from the line of Mumuksh Mandlesha from Emkay Global.
Sir, can you share any demand outlook for CVs in Europe market, sir? And also, can you talk about the opportunity that is happening because shift towards India due to energy prices in Europe and also some challenging yield for China as well.
No, sorry, shift of demand to India from Europe because of energy crisis in which area?
Yes. So basically, the shift happening . You mentioned in the commentary -- initial commentary, the shift happening from Europe and China towards India. Can you talk with the opportunity, sir, on that, sir?
For supply chain, yes. Okay. Europe demand.
So the demand in Europe is -- at least on commercial vehicles is flat as compared to last year. And even for next year, it is expected to remain at similar levels. We are, of course, monitoring that because there is a lot of talk in Europe about other challenges.
As far as supply chain goes, there is -- there are some small opportunities coming about, but please consider that in the industries that we serve and the products we make, making change at short notice is not easy. It requires a lot of testing and validation and all that. And that -- and so basically, there are some long-term plays that are underway, but it is too early to talk about that in a call like this.
And sir, can you also talk about the Harbinger Motors JV, which we have formed for the motors. Can you just indicate something on the opportunities in India and overseas markets, sir?
Yes. So Harbinger is an EV startup that is founded by 3 extremely smart guys who have worked in a number of EV start-ups. And they have more than 15 years of experience in the EV domain and electronics domain. And they have been funded by private equity, some very prominent private equity players. And they were looking for someone who can be a supplier partner and a manufacturing partner. And what they realize is that someone like us can help them bring their product to market easily because of our engineering and manufacturing capability.
So we are their exclusive manufacturing partners for their powertrain, which is an EDU, electronic drive unit first class 4 through class 6/7 commercial vehicles. Their first product that they're coming out with is a 350-kilowatt EDU with something like 1,500 [indiscernible] torque and axle torque of something on the order of about 16,000 [indiscernible].
So this is something that will be a very good application for all kinds of delivery vehicles in North America, especially for last-mile delivery and -- I haven't spoke from taking it to airports and air cargo facilities, et cetera. In fact, they have already tied up with one of the largest recreational vehicle manufacturers in the world to supply their electrification needs for their new vehicles going forward. And we believe we are planning for FY '24, '25 start to our production for them. Obviously, it will be a soft launch in '24, '25 and then scale up in '25, '26. But we have tremendous opportunity to supply high-value products to them across forging, machining and, of course, EV systems, which means electronics, motors, drivetrain, et cetera, all fully manufactured, assembled and tested. So it's a significant step forward that will take us from a Tier 2 into a Tier 1 kind of situation.
The next question is from the line of Aman Vij from Astute Investment.
So my question is on the defense side, sir. Last con call, you had given some rough guidelines in terms of how we see the business came from INR 500 crores to INR 1,000 crores and then eventually, say, INR 1,800 crores kind of number you had talked about. Export was around INR 300 crores, INR 400 crores. But sir, given the order we have already got, so do you think we can cross that number much sooner in export side?
Obviously, as of now, we have seen tremendous growth in our addressable market because of this order that we have received. And I expect that we will continue to receive orders going forward. And I'd like to be a little cautious -- I prefer to be a little cautious when talking about such things because it takes a lot of time and effort before these things fructify. So let's say that was the baselining, and hopefully, this baseline will provide some headroom for growth with these kind of developments.
Sure, sir. On the domestic side, so does this -- because we have been doing trial for a long time now. And does this export order in a way helps us or maybe it convinces the government to fast forward the process for approval in domestic because this in a way is a mark of approval and a feel of excellence for us?
I haven't thought of it that way. But obviously, it's a validation of our product and our capability. And it shows the recognition from outside. Obviously, there is merit to what we do and the products that we produce. It makes it harder to ignore import, let me put it that way.
Sure, sir. Final question from my side. You had explained that the main portion of defense business is capital items like vehicles, which we are currently doing [indiscernible], and then there are consumables. So in terms of -- in the presentation, you have mentioned because of more orders from the vehicle side, the margin was impacted. So does it mean that defense vehicle has, say, a lower margin profile? If you can talk the order...
No, no, no. That was because of the LD that we had, which we are challenging, okay? It is for that reason. If you want to write that back, then it will be the same. It will be very similar.
But in terms of order, is it safe to assume that the highest will be the -- a tax run followed by, say, consumable and then vehicle in defense business?
No, it's really a different thing. It's not -- [indiscernible] I feel that you're selling. Each vehicle that you sell to each customer may have a lot of customization. Okay, so it really depends on what you're doing and how much specialization, customization, engineering and application engineering ordering.
Okay. But in terms of...
More than EBITDA, you should look at the ROC in this business. EBITDA will be good. EBITDA will be strong, no doubt. The results will also be good. And what it does? It will provide a long tail to the business because you will also have an OEM element of this for a long period of time.
And is there any order in terms of ROCs in these 3 subsegments, which you talked about?
Sorry?
Is there any order in terms of ROCs, the return to file?
ROCs will be significantly higher than the stand-alone ROC.
If you can give a range, sir?
I'll just -- as I said, higher than our existing ROC. That business is still in takeoff mode.
The next question is from the line of Chirag Shah from Nuvama.
Sir, my first question is a slightly different one. Now that we have a lot of businesses originating from India, whether for international markets or domestic markets, is there a top pressure of restructuring the way company structuring design? I know most of them are 100% subsidiaries. But are you looking to consolidate them so that we have a different reporting structure?
Yes. It's a good point you make because we have many different verticals and business areas under the same company. So right now, we are looking at this. First, we will do it internally, and then we'll look at it externally.
Okay. This is helpful, sir. Sir, second question, again, coming back to different and apologies for hopping on. Just for recap kind of a purpose between KSSL and Bharat Forge, how should we look at the overall capital investment [ indifferently ]? I know you indicated KSSL is more of an assembly business and a large thing would be done and a lot of things would be done by Bharat Forge. So how should we look at the overall capital investment? Are you leveraging on the existing investments in BFL, so even their incremental capital requirement is very less?
The core manufacturing, which involves ordering, machining, heat treatment of the main artillery products, the artillery gun, the barrel, those kind of things, will happen in Bharat Forge. And then the -- let's say, the -- what do you call it, the finished product assembly, integration and testing will happen in the dedicated entity, which does this. So that will happen in the defense entity.
Okay. And this is also for export order also, right? The same process will be followed for the export order also.
Yes, yes.
Yes. So in that case, just to understand how I likely to report it, where would this be reported in Bharat Forge? It would be a part of different lines, which will separate part of industrial...
It will be imported in KSSL, but the component supply from KSSL from BFL to KSSL will come in BFL.
But within -- would it be classified as a separate defense? Or is this part of industries?
No, it's all consolidated. It will be 1 entity. From BFL, It would be part of industry.
It's part of industries -- it will be part of industries in your disclosures. .
Yes.
Okay. Yes, that was the question. This is very clear. And lastly, outlook on the India CV, if you can share what you are gathering from your customers from a near-term perspective and over the next 12 months perspective also.
I think you have a better place to tell us that because you talk to a wider section of the population.
But do you have a much better hang on and experience of -- for many tankers. So if you [indiscernible] would be -- we look up on your view actually. How do you look at it?
Yes. At this point, overall, the big picture for India looks positive. But as compared to Q2, we are seeing a sort of a slightly depressed Q3 that's based on lesser than expected sales in the festive season and all of those kind of things. But the broader expectation is, at least for the year and going forward, the segment should continue doing well. So that is the expectation we have as well.
The next question is from the line of Jinesh Gandhi from Motilal Oswal Financial Services.
My first question pertains to the European aluminum forging business. So in the first half, any indication of what utilization we would have operated at 30,000 tonne capacity?
About 50%, 55%.
Okay. And the large part of impact on margins is also because of energy cost there or largely because of the utilization.
All the inflationary impact... .
Okay. And...
And everything, material. Everything. And increase manpower. And because of large assets, et cetera, that we had have a larger number of [indiscernible].
Right, right. And wouldn't be fair to say at least from energy and freight perspective, we have seen the peak in 2Q and expect some savings from 3Q onwards?
Well, it's not going up anymore as of now at least. And there are lots of very complicated things taking place right now in Europe. So I don't think we can. And winter is coming. Although it's been a very mild winter so far, if it gets worse, then obviously there will be some psychological impact as well. So we have to wait and watch.
Right. Right. And secondly, with respect to the guns order, which we have got. So this would be for how many guns and by when you would start supply?
I did not give that information. All I said is it will be over a period of 3 years where we will finish the [ deliverable ].
Okay. Okay. And...
Of sovereign nation, we are unable to provide any more.
Sure, sure. And for vehicle supply, deliveries are being done or will you see some more revenues coming in?
Yes. We have large new -- I mean large orders are still remaining to be executed.
Okay. Okay. And last question on the broader RM cost inflation on the stand-alone entity on the steel price rate particularly. So there, do we expect some bit of reversals coming in or not given the steel price correction?
Yes. As and when the steel price gets corrected, obviously, things will improve. But it is still flat. It is going down slowly, but it's not gone down substantially.
Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to Mr. Amit Kalyani for closing comments. Over to you, sir.
So ladies and gentlemen, thank you very much for all your questions and your interest. I would be very happy to answer your questions even more during our investor conference or analyst meet, which we will have in person on December 9 in Pune. Thank you for your interest in our company, and please continue remaining in touch, and we look forward to seeing you in Pune very soon. Thank you. Bye.
Ladies and gentlemen, on behalf of Bharat Forge, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.