Greaves Cotton Ltd

NSE:GREAVESCOT

Earnings Call Transcript 2024-Q1

[Operator]

Ladies and gentlemen, good morning and welcome to Greaves Cotton Limited's Q1 FY '24 Earnings Conference Call. From the management we have with us Mr. Nagesh Basavanhalli, Vice Chairman; Ms. Akhila Balachandar, CFO; Dr. Arup Basu, Managing Director, Greaves Cotton; Mr. Sanjay Behl, CEO and Executive Director, GE MPL. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Nagesh Basavanhalli, Non-Executive Vice Chairman of Greaves Cotton Limited. Thank you, and over to you, sir.

[Nagesh Basavanhalli, executive]

Good morning, everybody. I hope everybody is doing well and staying safe. Welcome to the quarter 1 FY '23-'24 earnings call for Greaves Cotton. As we had talked over the last several quarters, our strategic journey of being a key player in the full stack last mile ecosystem continues. Our mission and purpose of empowering millions of lives and livelihood through sustainable mobility solution continues, thanks to our talented team and continued investments. Our focus continues and the Quarter 1 demonstrate some of these aspects as well. A quick strategic recap. Over the last quarter, we're glad to report that the integration of Greaves Cotton along with Excel Controlinkage, which was the acquisition, the 60% acquisition, which we had announced in the previous quarter is on track. The integration is going well. This has resulted in driving both growth and profitability. More importantly, this is expanding our reach to new markets, new customers, new products across automotive value chain and several other value chains. Point #2, our recent acquisition of a majority stake at MLR Autos, the 3-wheeler company out of Hyderabad, presents us valuable opportunity for our Mobility division to strengthen our presence across the 3-wheeler. More importantly, we've always talked about life cycle value extraction. This now gives us an opportunity when you look at the 3-wheeler value chain to significantly expand our value chain offerings not only from being a component supplier, whether in the terms of engines or motors or sensors or components from the XL division, but also in terms of vehicle sales, service, spares, Greaves retail supporting through the retailing opportunities as well as the Greaves' finance opportunities that arise out of this. So the 3-wheeler value chain capture enormously increases with this. Moving on. Some of the other areas, glad to report that Greaves Retail is continuing to expand its network presence throughout India, and they continue to work across multi-brand spares, multi-brand service and multi-brand sales and service, basically the 3-year model. Greaves Finance recently launched the Evfin, which is an innovative EV financing platform, which will again enable sustainable mobility adoption. Overall, as we continue to move from being a diesel engine mechanical company to mechatronics, electronics, sensors, a lot of the forward-looking areas in terms of technology, but more importantly, also looking at profitable growth, especially in the engineering, retail consumers, that is very evident. And I think our management team will take you through some of the details. We continue to be debt-free, relatively a debt-free company, strong cash position, which the CFO has identified in the deck. And we continue to invest our CapEx in all the key areas, be it our engineering business, our electric mobility division in terms of new products and components as well as in terms of retail. So now with that, let me hand it over to the CFO, Akhila Balachandar. Thank you.

[Akhila Balachandar, executive]

Thank you, Nagesh. Good morning, everyone. We are happy to report our consolidated revenue of INR 569 crores for Q1 FY '24. On a stand-alone basis, Greaves Cotton has reported a revenue of INR 396 crores. Excel, the new acquisition reported a revenue of INR 39 crores, and Electric Mobility reported a revenue of INR 135 crores. The good news is that the acquisition and integration of Excel into the Greaves fold, the revenues from the GCL and Excel segment tax at INR 435 crores. This gives us a strong base to diversify our core product portfolio. On the margins, GCL stand-alone EBITDA margins are now firmly in the double digits at 11.3%. And if I were to look at the GCL+ Excel combined, the margin stand at a healthy 13.5%. This puts us on track of our historical trend of 13% plus margins of pre-COVID levels. Stand-alone PBT is at INR 45 crores and a stand-alone business ROCE is at 37%. The cash conversion ratio of the company is more than 90%, and that augurs very well in terms of working capital management and also shows the strength that we are seeing in our legacy businesses. In terms of the balance sheet strength, as the Vice Chairman mentioned, the company has almost 0 debt and a consolidated net cash of INR 739 crores, which we will be using for further investments and expansion as we go forward. One area where we had seen a lot of pressure in the early part of last year was the overall commodity cycle, and that led to increase in the raw material costs for some of our product segments. I'm happy to note that the commodity cycle softening is having a positive impact as we go forward. And we are expecting raw material prices and raw material cost as a percentage of revenue to remain stable in the coming quarters. Given the regulatory challenges, our material subsidiary, GE MPL reported subdued revenues of INR 135 crores and an EBITDA of negative INR 71 crores. Our consolidated EBITDA was negative INR 14 crores and consolidated PBT was negative INR 10 crores. However, on a stand-alone GCL to the Excel basis, we saw very strong financial performance, and that reflects, again, the strength of the strategy that the company took -- has taken over the last couple of years to diversify the product portfolio. With this, I will hand over to Sanjay to share his updates. Thank you.

[Sanjay Behl, executive]

Thank you, Akhila, and good morning, everyone. I will talk on behalf of Greaves Electric Mobility in quarter 1. So quarter 1 has been a quarter of significant regulatory changes, both in EV and IC sectors. In electric vehicles, the battery norms evolved to AIS 156 Phase II for significantly enhanced safety of the battery component and for the vehicle. Further, the quarter saw fume 2 subsidy on electric 2-wheelers getting reduced by 30% to 50% effective June. In IC, OBD2 BS VI emission norms kicked in at the start of the quarter. Now in line with the regulatory requirements, all our vehicles are fully compliant and certified with the AIS 156 Phase II standards and the OBD2 BS VI norms. Further, our product portfolio has been adjusted in terms of pricing to accommodate the decreed subsidy in electric 2-wheelers. Specifically on 2-wheeler performance. Now despite the electric scooter market being flat Q-on-Q basis in quarter 1, Ampere registered over 10% market share and recorded a double-digit growth in vehicle registrations. Another significant milestone in quarter 1 is that Ampere brand achieved a customer base of over 200,000 electric scooters in India. As was proposed during Auto Expo earlier this year, Ampere has already launched 2 new electric scooters over the last 2 quarters. ZDX in quarter 4 of last financial year and Primus in quarter 1 of this financial year. We also plan to launch a high-speed fully connected scooter NXG before the end of the calendar year. The twin impact of battery add-on cost on account of the new AIS 156 Phase II norms, effective April and reduced payment subsidy from June led to a significant slowdown in electric 2-wheeler industry offtakes in the month June, and it's continued in July. Though we believe that this blip is temporary and soon the retail sales will pick up considerably. Coming to 3-wheelers. Our product portfolio spanning across the LC and L5 formats recorded a 140% volume growth Y-on-Y basis as we continue to enhance the product portfolio and the dealer network across the country. Both our subsidiaries, Bestway and MLR, MLR became a subsidiary after the increased stake, as Nagesh said, during the quarter 1. Both the businesses have recorded strong double-digit growth Y-on-Y basis ahead of the market versus same quarter last year. Continuing to build on quarter 1. In fact, in July, we have reported in these businesses the highest ever sales in 3-wheeler business. On the new products in 3-wheeler portfolio, our recently launched vehicles include the onboard diagnostics, BS-VI compliant CNG and diesel vehicles, a lineup of new electric cargo and passenger vehicles is in the pipeline for launch under the Greaves brand. In fact, to enhance the brand visibility, the powered by Greaves branding approach is being applied to the L5 IC vehicles where Greave brand is dedicated to L5 EVs. I'll just hand over back to the operator for any Q&A. That you.

[Operator]

Thank you very much, sir. We will now begin the question-and-answer session. [Operator Instructions] We'll take the first question from the line of [Indiscernible].

[Unknown Analyst]

I had a few questions. So in your Genset business, could you please help me explain what are your plans in that segment? Because are competitors are growing at a much faster pace than us? Or isn't that are we losing our market share? I just wanted to have your view and what do you think about this segment going into the future?

[Nagesh Basavanhalli, executive]

Thank you. I think there is a mix issue. Dr. Basu, do you want to take that?

[Arup Basu, executive]

Sure. So we are growing our market share in Genset. What is happening is there is a change in the norms around the whole Genset industry, and that is coming in between this year and the next year. And the application areas are quite diverse across industries and across various types, for example, projects, et cetera. And the reason why we are positive about it going forward is because of our fuel agnostic strategy. Gensets are also headed that way in terms of earlier, they used to be largely diesel. Now there are options around diesel, alternative fuels like CNG and also electric on some of the inverters on some of the lower capacity ones. So overall, we are looking at the Genset space, both within India and for exports. And we will continue to play in that market. Thank you.

[Unknown Analyst]

Could help me about the alternate alternative fuel shifting to CNG. How will that impact the business?

[Arup Basu, executive]

So it just adds to us because our approach always has been fuel agnostic. So we will make the Genset. We do customized products across our portfolio. So if a customer wants a CNG Genset, they will get a CNG Genset. If they want a diesel Genset, they'll get a diesel Genset. So we have fuel agnostic, whatever are the fuels that at a customer because we will design or we make Genset accordingly. So it does not really impact us. It impacts us positively because we have a pure agnostic stance.

[Nagesh Basavanhalli, executive]

And just note out from a non-auto, if you look at the full year '23 versus '22, I'm talking about non-auto now overall, the strategy of diversifying there, the volumes have increased by 6% on a yearly basis, 23% versus 22%. And when you look at a quarterly basis, non-auto almost grew 11% quarter-on-quarter, 24% versus 23%. So the diversification strategy is across fields like Dr. Basu said and across auto and non-auto and that still continues. And that obviously helps with our capacity utilization. Thanks.

[Unknown Analyst]

Okay. And sir, my next question is on the aftermarket side. Is there a big opportunity opening across? And what are we doing out there?

[Nagesh Basavanhalli, executive]

Yes. Aftermarket is, as Arup stated, ambition is definitely a growth and a highly profitable area for us. We have, as announced last time, we have a dedicated CEO who runs that business now. And when you look at it in terms of spares, in terms of service and in terms of sales, right? So we are playing a 3-pronged strategy there. Spares, it's multi-fuel, spread over both 3-wheeler and 2-wheeler spread over not only IC engines but also getting into newer areas like batteries and other EV-related components. Our market has expanded a number of retailers and a number of mechanics in India has expanded significantly in aftermarket. Our spares service is getting back to pre-COVID level in terms of the number of vehicles that are coming in for our multi-brand service. And our retailing, we retail more than about 10-plus automotive brands through our retail 3-year showrooms. So yes, that's the profit growth. And I think we have -- the CFO has started reporting the aftermarket numbers also separately.

[Operator]

[Operator Instructions] We'll take the next question from the line of Raghu Alan from Nuvama Institutional Equities.

[Raghunandhan N. L., analyst]

My question to Sanjay, sir. Sir, on same 2 incentives, can you provide us some color and confidence, a, will we get incentives for future sales? And b, on historical sales, have we met the same requirements as per your knowledge?

[Sanjay Behl, executive]

Okay. So let me just give you an overview on where we are. We have, as you're aware, received showcase notice from Ministry of Heavy Industries, which has been appropriately replied already. This matter is now pending adjudication for final hearing. Now just to give you an assurance that we have as Greaves Electric Mobility been actively cooperating with MHI and all their authorized bodies for this investigation. We have made a very comprehensive representation submission already and the provision of necessary clarification and any additional information that authorities of us. We have done it both proactively on our behalf and as has been asked us during the course of this investigation. I just want to keep you informed that we have been given an opportunity for hearing in MHI, which is pending, and we are very confident on the matter to be adjudicated in our favor. And just an assurance that we remain kind of dedicated fully to aiding the country becoming a global leader in electric vehicle, not just design, development, but also indigenized sourcing, engineering and manufacturing. So that's our position on this.

[Raghunandhan N. L., analyst]

And just a clarification. When is the final hearing date by when do you expect the matter to be fully resolved?

[Sanjay Behl, executive]

I cannot -- because the matter has to be resolved on the behalf of Ministry and they have to decide that time line, but the hearing is likely to be next week.

[Raghunandhan N. L., analyst]

Understood, sir. And on the current retail sales, are you offering same 2 benefits to customers?

[Sanjay Behl, executive]

No. In fact, at this point of time, we don't have access to same portal. So we don't have that same benefit. So our pricing has already taken into account the reduction in same subsidy, and we're not passing on at this point of time, any incentive.

[Raghunandhan N. L., analyst]

And dispatches in Q1 were lower than the [Indiscernible] registrations, is AIS 156 Phase II responsible for that lower dispatches?

[Sanjay Behl, executive]

No, I think there are multiple factors. As I told you, the industry has been flat. If you see quarter 4 of last financial year to this quarter 4, it's about 217,000 electric scooters got sold, almost equal in quarter 4 and quarter 1. So one is the industry slowdown, which happened on both the accounts. One, as you rightly picked up, which is the new norms kicking in and certifications did take a little time for vehicles to stabilize. And then there was a subsidy impact which happened on effective 1st June, where subsidy was reduced by 30% to 50% on electric vehicles, and that did slow down the market. So it's really a combination of both of them. And then at the end of quarter 4, there was a higher channel inventory, which also got reduced considerably because of higher offtakes that we see as a brand over the quarter 1.

[Operator]

We'll take the next question from the line of Jyoti Singh from Arihant Capital Markets Limited.

[Jyoti Singh, analyst]

So sir, as your earlier participants talking about the subsidy. So my question is on the similar side. So like -- could you provide some insight into the clarity regarding the EV business? Because in this quarter, we were not able to perform because of the Electric Mobility. So what's your view going forward from here onwards?

[Sanjay Behl, executive]

So okay, if I understood your question. It's like giving an overview of the whole EV business that we have. So I did actually mention briefly on the accelerated performance of our 3-wheeler business. Yes, 2-wheeler had a couple of interventions, whether it is a regulatory norm perspective or whether it's subsidy related. But our 3-wheeler business has grown 140% quarter-on-quarter. On a Y-on-Y basis, if you see last year quarter 1 to this year quarter 1. And I did hint that July has been the highest ever sales there. So the first -- overall, if you look at as a portfolio for Greaves Electric Mobility, there is an ecstatic performance or exponential growth that we are witnessing on the 3-wheeler. I also did mention, but let me reiterate that there are 2 new products that are going to come over the next 6 months. One is going to be a launch of electric vehicle Fargo, which we will be putting in the market called Greaves Altra. That vehicle should hit at the end of this quarter, followed with a passenger electric Greaves Altra coming in next quarter. And that should be a total incremental volume over the existing sales that we're getting in 3-wheel. We are also growing -- we are also growing the network -- a dealer network and financing network, both for our LT and LP segments there. So that secures a robust growth map for 3-wheelers. Coming to 2-wheelers, as I did mention there that our registrations continue to grow, and that's a good sign where customer acceptance is getting validated. We actually grew 12% quarter-on-quarter in a flat quarter, NPL was one of the very few brands to grow 12% in terms of registration, which is a testimony of our customer offtake. And eventually, as you know, that the registrations are growing, our billing will eventually match up to that. The other product that I did again mention I'm reiterating is the launch of NXG. That's the high-speed connected smart scooter, which is going to be coming before Diwali. And that scooter will further add to the addressability of our electric scooter segment. So overall, our addressability, if you see over the last 12 months has gone up from about 35% to close to 75% of electric scooter market. And that would provide a very strong reason or a growth enabler for electric 2-wheeler segment there. There is some slowdown because of the subsidy reduction that we have seen in the market. But we believe that as the festivities start kicking in at the end of this quarter, moving into the third quarter, I think the market should bounce back to the pre-reduction kind of levels. And if we can get our logical double-digit share in that market, which we have continued to work towards, we should be reasonably well placed to register good performance in electric 2-wheelers.

[Jyoti Singh, analyst]

Okay. And sir, also, if you can highlight how is the momentum on the EV finance side? And third is on the inventory side, how many weeks we are maintaining?

[Sanjay Behl, executive]

Yes. So on the EV side, you said, is the finance side?

[Jyoti Singh, analyst]

Yes.

[Sanjay Behl, executive]

On the financing side. Second question. So let me just first answer the second question. If it is Evfin as a company, then I will hand over to Nagesh to really address that. But on the inventory, the inventory in the channel, the norm that we have is dipping 4 to 6 weeks, and we are not over that. At this point of time, that's the kind of inventory that we are maintaining at the dealer level. If you are talking about 2-wheelers, very similar kind of norms are there in 3-wheeler. 3-wheeler inventory has come down a little because there was liquidation of the stock which happened to old stock during quarter 1 because the norms have changed and the new norm certificate vehicles to some time to really build into the market. So that inventory is a little lower. And the 2-wheeler inventories at about 4 to 6 weeks across dealer network in India. On Evfin, let me hand over to Nagesh.

[Nagesh Basavanhalli, executive]

Thanks, Sanjay. On Evfin, as we all know, it's our latest startup to enable electric mobility financing. It's an enabler or it's a smaller or the later start-up, own operations have started under the brand name of Evfin, right, Evfin by Greaves. So that was launched in the past quarter. We have launched direct operations in about 3 cities. We are more in the proof-of-concept fees right now. We've patterned about 3 OEMs, so 3 people doing Electric Mobility and 2 multi-brand chain outlets, including Greaves retail. And other multibrand OEMs and financing sign-ups are in the way. So I think it's still early stage. The idea here is it's a fintech, where we are looking at the asset life of the battery and how to determine be a key enabler or a key catalyst in electric vehicle moving to much higher numbers. So that's kind of the enabler. And we'll keep you informed as and when the story develops. Thank you.

[Operator]

We'll take the next question from the line of [Indiscernible].

[Unknown Analyst]

Yes. So my question is that can you segment wise, can you report that what you have done in the EV segment post the Fan subsidy being taken off and before the same subsidy, which was allowed to do, so segment-wise bifurcation if you could give, sir?

[Sanjay Behl, executive]

Yes. So EV, the revenue that we reported is INR 135 crores. That does not include any subsidy in this revenue. If you look at the equivalent quarter last year on a Y-on-Y basis, there was a INR 90 crore subsidy in INR 270 crore revenue that was reported, yes? So if you take that as a total number, it will be about INR 180 crores revenue of last year without subsidy versus INR 135 crores this year without subsidy. Does that answer your question?

[Unknown Analyst]

Yes, that answers my question. So which means without subsidy, the revenue has dropped. So do you think going ahead also, this will have a problem in your books? And what about the Engine business also?

[Sanjay Behl, executive]

Yes. So on the Electric Mobility, let me answer, and then I'll hand over the Engine business to Arup to answer that. On the Electric Mobility segment, I think it's been a quarter of a little more than anticipated disruption. And hence, I think there was a little bit of inventory correction which did happen at our dealer level, which, going forward, I would say that will get corrected. So there should be the normal share restoration when it's happened, I think we will grow with the market. Now the whole question is what will happen to this industry because our fate is also looked at the overall numbers that industry is likely to do. Last year, the industry did 726,000 electric 2-wheelers. This year, if you look at the trend of the 4 months, it is running almost at a similar kind of a way. 217,000 in the first quarter, but the July numbers are only 55,000. So if you look at 60,000, 70,000 per month, it's about 800,000 to 850,000. Now if that has to be taken. And if you look at about a 10% odd share that MTRs consistently maintained by being in the top 3 to 5 players in this country, we should be doing as good, if not a little better than last year. Over to Arup on Engines.

[Arup Basu, executive]

So in Greaves Engines, we don't have this kind of segmentation because we supply to a certain number of OEMs and then the balance are supplied to the industry at large. And if I take away the OEM numbers between FY '23 and FY '22, we grew at 16%. So that's not -- that's the kind of number we've grown and a higher number is planned for this year. So overall, we see growth across all the segments that we sell on Engines.

[Operator]

[Operator Instructions] We'll take the next question from the line of Sandy Mehta from Evaluate Research.

[Sandy Mehta, analyst]

I have 2 questions. On the EV side, can you talk about when -- what is your path to sustainable profitability? And when can we see pockets on an EBITDA level on the EV side? And the second question was the UAE investor, ALJ, how much money have you received from them already? What is the pipeline of further funding from that entity?

[Sanjay Behl, executive]

Okay. So let me address the first question on EV profitability road map. I think I'm going to lay down a few pivots, maybe 5 pivots, the top 5 pivots, which make us the right to when not just the right to win, but right to profitability in EV segment there. We have a unique advantage actually of being the only true Electric Mobility player in India with the following 5 pivots that I'm going to talking about. First, we have both 2-wheeler and 3-wheeler electric portfolio with us across all formats and all price points. So pretty much, we have a representation in low-speed city speed, high-speed scooters. We also have a representation in electric rickshaw and EV segment, both in cargo and passenger that I spoke about by the end of the year. So that's a pretty comprehensive addressability of the market and the entire value chain capture across both the segments is a benefit to Greaves Electric Mobility. Second, across our vehicles, we do cater both to the B2C and B2B segments. And that is not just by having the same vehicle running both. We have unique use case and application-based vehicles catering to fleet mobility. In fact, just to give you one name there, one of the largest food service delivery chains in India, about 40% of the deployed vehicles are from Greaves Electric Car Mobility. That's 2-wheelers I'm talking about. The third path to profitability would be -- unlike our competitors, we have demonstrated a unique ability to remain a cost leader in this country and have a unit economics positive philosophy to run our EV business there. Last quarter of the financial year, quarter 4 of last financial year, we had actually declared a 2-wheeler profitable operating margin. And that -- given this blip going forward gets neutralized, I think there is already a demonstrated road map to profitability there. The fourth point is that we are continuing to invest your point on ALJ that you brought up, I think will get answered. But we are continuing to invest benefited by our investors and our internal cash accruals at the group level, both in technology and innovation road map. We are the first 3-wheeler company actually to be providing data solution to our customers. And in the soon-to-be-launched cargo and passenger vehicles, you will find IoT connected solutions as we go forward. We also hugely benefited by the synergies across all our group companies. And I think Nagesh did talk about the 3-wheeler value chain capture, but it's also in the 2-wheeler with Greaves engineering, XL Technology, the recent acquisition we made, Greaves Technology, the service engineering company, Greaves retail, Greaves Finance, all are feeding to the gems value chain for catalyzing a very holistic leadership position at a profit level. So these are the 5 things there. To be specific, how long do we see? My sense is we continue to invest in both products and technology. So we should be looking at the exit of this year or actually getting into next year, we're turning into an operatively profitable domain.

[Sandy Mehta, analyst]

And how much have you actually received from ALJ, I think the amounts mentioned were $150 million or maybe $220 million. Have you actually received some of this year?

[Sanjay Behl, executive]

Yes. So we have received already $150 million, which is the number you quoted.

[Operator]

[Operator Instructions] We'll take the next question from the line of Rushabh [Indiscernible].

[Unknown Analyst]

Sir, I had a question on your Excel acquisition. If the company is making such good EBITDA margins, then why is the promoter willing to exit the company in the phased manner?

[Sanjay Behl, executive]

Yes. Obviously, you're absolutely right. I think it's a very profitable business. And there, the question was about succession planning. And so we are working very closely with the promoters. So over a period of time, the promoters will exit and Greaves has a road map to go from 60%, which we already have today to the 100%. And yes, it opens up opportunities in areas of new products, new markets, new geographies for us, yes.

[Unknown Analyst]

And sir, my next question is what are the challenges you're facing in your business going ahead, let's say, for last 2 to 3 years, what challenges do you see in your business?

[Sanjay Behl, executive]

So I think that's a very macro question. When you look at it, I think the CFO already touched upon the commodity cycle softening. So that's -- we had seen that challenge over the last several quarters, and obviously, that's turning favorable. Mr. Sanjay Behl talked about the regulatory environment in the Electric Mobility division. So I think that's one of the areas, which we obviously will have to watch, which we will -- the Electric Mobility team is very closely watching that. But when you really look at that, I'm glad you asked this question, the entire fundamental thesis of our strategy was on diversification from being a diesel engine company a few years ago to going from diesel engine to a fuel-agnostic diesel plus CNG, plus electric, right, plus our boys are already looking at future technologies, right, going from auto to non-auto because in non-auto, we supply engines to construction, marine and defense. Then the second -- the component vertical has now diversified into Excel type components, which is the push for the cables, the sensors, the mechatronics part. Then we got into Electric Mobility, which is getting closer to the end consumer. Then we got into retail. So when you really look at it, right, auto plus nonauto components, vehicles and then retail, which is the post purchase solutions and spares. So the good part, I would say, is when you look at it, yes, we are seeing regulatory headwinds on the Elecric Mobility side, but the other parts of the businesses are seeing strong tailwinds, right? So I think that is, again, the strength of the diversification strategy. And obviously, we will continue to keep investing. We are a kind of cash positive debt-free company, and we'll continue to keep investing in future products and future services

[Operator]

We'll take the next question from the line of Sandy Merom Evaluate Research.

[Sandy Mehta, analyst]

This is more of a suggestion than a question. But while you're investing in the EV space and you have this period where you have losses there, it might help if you would break down -- you give us a segment details, but overall EBITDA, overall EPS, if you can report the rest of the business on a consolidated basis and then you can report EV separately, so it helps to value the stock. And while you're investing in EV, people may value that more on a price to sales basis, but sort of it becomes very clear that the rest of the business is doing well and you have losses just in one area. It might help if you can sort of break that out more clearly, especially on the EPS level.

[Sanjay Behl, executive]

I think good input the CFO will take that. I think it's a good suggestion.

[Operator]

[Operator Instructions] We'll take the next question from the line of [Indiscernible].

[Unknown Analyst]

Yes. Sir, again, just a similar question of your segment evaluation. So can you give a ballpark figure on the auto and the non-auto segment currently on your revenue, what percentage is auto and what percentage is non-auto? And going forward, how do you see it changing in the next 5 years?

[Sanjay Behl, executive]

Akhila, do you want to take that?

[Akhila Balachandar, executive]

Sure. So ma'am, just to clarify, we have shared the segment volumes in our presentation I hope that clarify.

[Unknown Analyst]

Your 5 years down the line, where do you see it going, ma'am?

[Akhila Balachandar, executive]

Sure. So I would like Dr. Arup to take that question.

[Arup Basu, executive]

Okay. I think there are 2 dimensions to this. The -- first of all, we see both going up quite a bit. Secondly, I'll add one more there. The auto pie is going to be a combination like it currently is of diesel, alternate fuels and electric. And that pie will get larger on the ratio of these 3 types of fuels, I'm calling alternate fuels, all combining them into one. That's going to change depending on the kind of policies, enabling policies that appear in the future and also the equation between CNG and diesel and petrol largely. But we see 3-wheeler demand growing significantly because of underlying trends of increased urbanization and last mile mobility and the push towards a greener sustainable mobility solutions. That's one part on the auto side. Non-auto is a combination of all other prime movers, and that's linked to the way the economy grows. There also, we see significant growth happening. So in both these cases, we see a fairly aggressive growth in terms of demand of these products. And that's one of the reasons why we have decided to pursue a bespoke customized fuel agnostic approach to developing primes.

[Unknown Analyst]

So currently, how much EV constitutes to this?

[Arup Basu, executive]

In the 3-wheeler space of L5, which is the main passenger and cargo, I'm not talking about the trucks. But in the regular 3-wheeler space, the electric component currently is about 10% to 12%.

[Akhila Balachandar, executive]

If we take last year, it's about 65% was CNG, about 22% to 23% was diesel and about 12%, 13%, as Arup mentioned, was the electric. But electric is seeing a month-on-month growth of about 10% right now. And that -- if you look at July numbers, just the last one which has gone by is inching towards 15% of the total L5 market. That's it.

[Unknown Analyst]

So is it inclusive of 2-wheelers also?

[Akhila Balachandar, executive]

No.. I'm talking only on 3-wheelers. So 3-wheelers is currently trending L5 format would be 40,000 a month. That's about $0.5 million, $0.5 million of L5 format of 3-wheelers Next, I'm talking about IC plus EV together, makes it almost close to 80% to 90% of pre-COVID level sales. Out of this, about 65% is CNG, about 20-odd percent is diesel right now and about 15% is electric. That's the current trend.

[Operator]

Ladies and gentlemen, we'll take that as a last question for today. I would now like to hand the conference over to Mr. Nagesh Basavanhalli for closing comments. Over to you, sir.

[Nagesh Basavanhalli, executive]

Thank you all for taking the time, and we appreciate your interest in Greaves Cotton. Management is available for any follow-up questions should you desire. We are available and to answer any questions. Thank you again for taking the time. Have a great day. Thank you very much.

[Operator]

Thank you, sir. Thank you, members of the management. Ladies and gentlemen, on behalf of Greaves Cotton Limited, we thank you once again. Stay safe. With this, we conclude this investor call. Thank you for joining us. And you may now disconnect.