Lumax AutoTechnologies Ltd
NSE:LUMAXTECH
US |
Fubotv Inc
NYSE:FUBO
|
Media
|
|
US |
Bank of America Corp
NYSE:BAC
|
Banking
|
|
US |
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
|
US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
US |
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
|
CN |
NIO Inc
NYSE:NIO
|
Automobiles
|
|
US |
Fluor Corp
NYSE:FLR
|
Construction
|
|
US |
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
|
US |
TopBuild Corp
NYSE:BLD
|
Consumer products
|
|
US |
Abbott Laboratories
NYSE:ABT
|
Health Care
|
|
US |
Chevron Corp
NYSE:CVX
|
Energy
|
|
US |
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
|
US |
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
|
US |
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
|
US |
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
|
US |
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
52 Week Range |
365.25
593.1
|
Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
Fubotv Inc
NYSE:FUBO
|
US | |
Bank of America Corp
NYSE:BAC
|
US | |
Palantir Technologies Inc
NYSE:PLTR
|
US | |
C
|
C3.ai Inc
NYSE:AI
|
US |
Uber Technologies Inc
NYSE:UBER
|
US | |
NIO Inc
NYSE:NIO
|
CN | |
Fluor Corp
NYSE:FLR
|
US | |
Jacobs Engineering Group Inc
NYSE:J
|
US | |
TopBuild Corp
NYSE:BLD
|
US | |
Abbott Laboratories
NYSE:ABT
|
US | |
Chevron Corp
NYSE:CVX
|
US | |
Occidental Petroleum Corp
NYSE:OXY
|
US | |
Matrix Service Co
NASDAQ:MTRX
|
US | |
Automatic Data Processing Inc
NASDAQ:ADP
|
US | |
Qualcomm Inc
NASDAQ:QCOM
|
US | |
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '22 Earnings Conference Call of Lumax Auto Technologies Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Mr. Anmol Jain, Managing Director, Lumax Auto Technologies Limited. Thank you, and over to you, sir.
Thank you. Good afternoon, ladies and gentlemen. A very warm welcome to Q2 and H1 FY '22 earnings call of Lumax Auto Technologies Limited. I hope you all are safe and healthy. Along with me on this call, I have Mr. Deepak Jain, Director; Mr. Vikas Marwah, CEO; Mr. Naval Khanna, Executive Director, Lumax Management Services; Mr. Sanjay Mehta, Director and Group CFO; Mr. Ashish Dubey, CFO; Ms. Priyanka Sharma, Head Corporate Communications; Mr. Ankit Thakral from Finance Team; and SGA, our Investor Relations Adviser.The results and presentation are uploaded on the stock exchange and company website. I hope everybody has had a chance to look at it.Normalcy in business activities was experienced in quarter 2 post the second wave. However, the global semiconductor supply constraint continues to be a challenge, resulting in supply chain disruption, impacting production across the industry amongst all OEMs. Many OEMs have reported a decline in sales on a sequential basis on account of supply constraints. As per data published by SIAM, in the second quarter of FY '22, the overall industry production was down by 3% from quarter 2 of FY '21, mainly due to de-growth of 2-wheeler segment by 6%. All other segments registered growth in the current quarter. Passenger vehicles were up by 4%, commercial vehicles up by 26% and 3-wheelers up by 31% from Q2 of last financial year. I'm happy to share that our sales significantly improved despite supply chain disruptions in the industry. Our quarter 2 FY '22 performance was at a historic high single quarter sales.I am also glad that the government has given weightage to advanced technologies through the PLI scheme. We are expecting to gain healthy benefits from the PLI schemes, especially in our joint ventures, as most of our products are covered under this scheme.Let me now take you through the performance of each business entity. The standalone entity caters to integrated plastic module, aftermarket business, chassis and swing arm for 2-wheelers, trailing arm for 3 wheelers under the metallic business and 2-wheeler lighting. The standalone entity has contributed 79% of the total consolidated revenues for the half year of FY '22.Lumax Mannoh Allied Technologies, the 55% subsidiary which manufactures manual, AMT and AT gear shifter systems and has a market leadership position contributed 13% to the total consolidated revenues. During the quarter, the company started export of made in India automatic gear shifters for a global platform.Lumax Cornaglia Auto Technologies, the 50% subsidiary which manufactures air intake systems and urea tank commanding 100% share of business with Volkswagen and Tata Motors, contributed 6% to the consolidated revenues.Lumax Metallic Private Limited, a 100% subsidiary which manufactures seat frames contributed 2% to the consolidated revenues. Lumax JOPP Allied Technologies is a 50% subsidiary, which is engaged in design, development and production of gear shift towers, automated manual transmission kit, all gear sensors and forks. The production has started to pick up as per the OEM schedules. Lumax Ituran is a 50% joint venture with Ituran Telematics of Israel. The revenue of this company is not considered in the consolidated revenue being an associate of the parent company as per Ind AS.On July 2, 2021, the company signed a joint venture agreement with Alps Alpine Corporation Limited, Japan, to establish a joint venture company for the manufacturing and sale of electric devices and components, including software related to the automotive industry. The joint venture company was incorporated on September 21, 2021, by the name Lumax Alps Alpine India Private Limited as a 50% subsidiary of Lumax Auto Technologies Limited. We shall start booking revenues in this JV by the end of third quarter of the current fiscal year.I'm happy to also note that new launches made during the quarter in the passenger vehicle segment for Mahindra's prestigious XUV700 platform, the company launched the gear shift lever and control cables along with shift train and tire carrier. For Tata Motors, Nexon and Punch models, we again delivered the seat frame and the air intake system respectively. For the Volkswagen Kushaq model, again, air intake system was launched in the current quarter. And in the 2-wheeler segment for Honda Motorcycle and Scooter India for the Unicorn Model, we made multiple plastic parts.At Lumax, we are well-positioned to capture growing market opportunities through our systematic and customer-first approach. With the addition of the new subsidiary, we are aligned with our vision to establish reliance and technology, along with the support of our partners.Now I would like to hand over the line to Mr. Sanjay Mehta, Director and Group CFO, to update you on the operational and financial performance of the company.
Good afternoon, everyone. Let me brief on operational and financial performance for the company for Q2 and H1 FY '22. Integrated Plastic modules contributed 27% overall revenues followed by chassis at 19%, aftermarket at 18%, gear shifters at 13%, lighting at 12%, emission at 6% and others at 5%. Our 2 and 3 wheelers contributed 47% to overall revenue, passenger car at 20%, aftermarket at 18% and CVs at 9%.With respect to financial highlights for Q2 and H1, the consolidated revenues stood at INR 403 crore for Q2, which is the highest single quarter sale in the history of the company as against INR 284 crore in Q2 FY '21, up by 42% in spite of industry downfall of 3%, which is due to increases in all the OEMs coupled with excellent growth in aftermarket division. For H1, the company reported revenue of INR 663 crores against the last year of INR 355 crores.The company reported consolidated EBITDA of INR 48 crores in Q2 against INR 33 crores in Q2 last year. For H1, EBITDA was INR 66 crore as against INR 25 crores in H1 FY '21. EBITDA margin stands at 11.9% for Q2 as against 11.7% for Q2 last year, up by 20 bps. The impact of increase in raw material prices is comparatively lower in the company because of aftermarket being the major contributor in sales and also back-to-back settlement with one of the major OEMs of the company. Profit after tax and minority interest stood at INR 23 crores in Q2 against INR 15 crores in Q2 last year. H1 revenue stood at INR 27 crores as against INR 3 crore in H1 last year. The CapEx incurred during the half year was INR 20 crores, which includes INR 10 crores on account of leasehold assets.For the full year, we have driven down the CapEx from earlier figure of INR 90 crores to INR 65 crores to INR 70 crores.Now we open the floor for call for questions.
[Operator Instructions] The first question is from the line of Abhishek Jain from Dolat Capital.
Congrats on a strong set of numbers, sir. Sir, what is the region of the SAB JOPP in the plastic and integrated parts revenue? Is it because of the recovery in the volume of HMSI or stock price increase?
So the majority -- thank you, first and foremost, for the compliments. But if you look at the plastic business, if you're comparing it on a quarter-on-quarter basis yearly, yes, there is a steep increase. But if you look at quarter 4 to quarter 2, that itself has grown by about 13%. So largely, it is on account of the volume -- volume offtake from the OEMs, mainly Bajaj and HMSI which has led to this growth.
And sir, you have also forayed into -- in the 4-wheeler plastic molded part. So what is the revenue contribution from the 4-wheeler side? Or if you can give some color on the business you are in the 4-wheeler.
So thank you, Abhishekji. This is Vikas Marwah. So for the current quarter, revenue from the 4-wheeler plastic division is not substantial, and we are still in the process of approaching the SOPs for that for a major OEM now, and the results of which will be more visible in the coming financial year. But to answer your question, we are still in the range of around INR 10 crores to INR 12 crores kind of a contribution right now, which we hope to substantially improve.
And who are the key clients in the 4-wheeler side?
So on the 4-wheeler side, for the next year, our dependence will be on SFIL to be giving us the [ telematics ] part business for which we are approaching the SOP. So on the 4-wheeler side, we would be staying as a Tier 1 for Maruti and then as a Tier 2 to Hyundai and Kia for the plastic business.
Okay. Next question is related with this seat metal business, where we have seen [indiscernible] growth this quarter. And so have you won any new business or is it because of the price increase?
No. So we have increased our wallet share into the frame business. We have, as mentioned earlier, we've got the models of KTM now. And since it is a premium biking, we also enjoy a better realization per vehicle. So both these factors put together, a better contribution per vehicle and higher volumes because of higher wallet share penetration, this has led to the growth of the metallic business on a year-on-year basis and a quarter basis.
So you haven't started to supply seat frames to the OEMs and you are also supplying to the XUV700?
The XUV700, we are supplying the seat trail for. But when I talked about the KTM, that is the entire chassis with the frame assembly, which we are supplying to the KTM and Bajaj Auto, the other model as well.
Okay. And sir, you are targeting -- what sort of the revenue you are targeting from the aftermarket? This quarter, the revenue was quite strong. So what is the revenue target for the FY '23 or '24 for the next 2 years?
I think I have always stated that our endeavor, and I have mentioned this last year that our endeavor is to double the aftermarket revenues in the 3 to 4-year horizon. And I think we are pretty much on track to deliver the same.
And most of the products you added in aftermarket, that is related with the lighting part of this?
Well, Lighting contributes only to close to about 60% to 70% of the total aftermarket revenue. Apart from Lighting, we are also established and present in 7 different category of products. So the growth in the aftermarket will not just come from Lighting, expansion of product range, but also from the other products where we do envisage to penetrate the market further and get a better pie of the market.
Okay. And as you started -- as you mentioned that gear shifter -- in gear shifter business Lumax started exports to the few OEMs. So what is the quantum of that quantum? And what is the opportunity size there?
So in gear shifters, Abhishekji, as you are aware, our joint venture collaboration is with Mannoh Corporation of Japan. And of course, we have some market limitations in terms of exporting. But we are happy to share that the Lumax Mannoh co-designed and manufactured products in India from Aatmanirbhar scheme ideology, we have been able to now export our first shipment out to Asian countries for Honda facilities there. And already, the shipments have started in the month of October.For full next year, we are hoping for revenue contribution of close to INR 5 crores to INR 7 crores from there only in one model. And going ahead, we are working closely with our joint venture partner to roll out more such gear shifter products to the neighboring country.
I think this is a first step towards a much bigger strategy of expanding our export footprint. So this is more like a pilot project, so to speak. And I'm sure one successfully delivered, it would open other doors with other customers as well.
Okay, sir. My last question is related with the margin side. So we have seen a very strong margin in this quarter. Is it because of the operating business benefit? Or is there any one-off in this quarter?
So there is no one-off in the current quarter. The margins which you see in the current quarter, which are close to 12% at a EBITDA level, they are purely, a) because of obviously better revenue realization during the quarter. And also in the last 6 months, the management team has done significant amount of efforts in pruning down the fixed costs and thereby bringing the breakeven points lower than where they were last year. So this is a combination of that. And going forward, I do expect that the margins, at least on a sequential quarter basis, should be at least maintained upwards of 11%.
The next question is from the line of Pritesh Chheda from Lucky Investment Managers.
So when we try to plot the vehicle growth, which would have been there in the system on the industry vis-a-vis our revenue growth, there is a much larger deviation and on a positive side. So any incremental customer win or a business win that we would have for the deviation in the revenue growth vis-a-vis the vehicular growth, if you could highlight that? Or is it that because of the aftermarket that we are seeing this slight deviation in the revenue growth line?
So thank you for the questions. Number one, our top seventh customer ranking on -- if I were to compare 6 months of the current year versus the 6 months of the last year has not really changed. However, you're absolutely right in your observation that our growth pattern is way higher than what the industry or even the segments have grown. And it's a combination of multiple things. I think we have launched certain new products which have really taken off in the last 6 months of the current fiscal.Also, as I mentioned, we have expanded our wallet share with respect to some of our product lines in multiple customers. And if I were to give you a sense that on a quarter-on-quarter basis, also, I mean, if you look at our growth with HMSI or even Bajaj for that matter, it would be significantly higher than their own growth or de-growth rate. So we have definitely fared better as a combination of new product introduction as well as expanding our wallet share with the current product lines.This has been primarily the 2 factors. Aftermarket, obviously, if you look at 6 months to 6 months, there has been a significant growth of almost more than 80%. But as I mentioned before, if you were to look at aftermarket comparing quarter 4 of FY '21, which was the peak quarter and comparing that to quarter 2 of FY '22, we would be at a similar level.
Okay. So I hope this is not one-off in term -- obviously, usually in auto ranks, it's not one-off. So I just wanted to reconfirm that it's not one-offs that we are seeing in the revenue growth line and deviation from the industry line. And if you have to give us some idea on what kind of revenue growth for the full year you would do would be really helpful.
So no, there is no one-off item. These businesses, which has been either resourced or awarded to us are long-term businesses. They are not in any way short-term in nature. In terms of the revenue outlook, I expect if the similar momentum of the industry and the segments, which I anticipate, and I'm seeing the OEM traction on the volumes have again started to give a similar feeling, if the similar momentum were to continue I would say on a full year basis, the company should deliver anywhere 20% upwards of top line growth.
Okay. Okay. And any other incremental business wins that we would like to highlight, if any, larger business wins, if any, which are supposed to fructify in terms of execution for FY '23?
Yes. So I'm happy to share that for -- in the H1 of the current fiscal, the company had won almost INR 440 crores of new order book, out of which almost about INR 330 crores was new orders and only about INR 110 crores was the replacement business. And out of this INR 440 crores, we expect maybe about 30% to 35% should actually kick in, in FY '22 itself. But the peak revenue of this order book will actually come in FY '23 and some in FY '24. So we have a healthy book, order book of INR 440 crores. If you look at my annual, that's almost close to more than 30% of my annual revenue.
This INR 440 crores is annualized revenue number, right? It's not a lifetime because some companies tend to also give a lifetime. So this is basically...
These are annualized revenues. Lifetime would be way more because of the life of the product or life of the model, but no, these are annualized revenues.
[Operator Instructions] The next question is from the line of [ Misha Desai ] from [ Raga Securities ].
Sir, I have a couple of questions. My first question is, sir, where do we stand in terms of the PLI benefit for a product? Are the talks only basically at a macro level in the industry? Or do we see some visibility at the company level?
So I can take that question, Deepak Jain here. I think PLI components list have been notified. I'm happy to say that majority of the components which have been done in Lumax Auto Technologies are part of the PLI scheme. This is, for example, the telematics. It could also be on oxygen sensors, it could be on also urea tanks. So we are actually right now evaluating the businesses in terms of [ indications ] which entities would need to do on the PLI. We have 60 days to apply from 10th of November. So we are in the process.Obviously, it will depend on not just the application in terms of qualification, but what the business plans would entail because PLI means that you also need to make some commitments on growth. So we are basically evaluating that. In probably in the next 30, 45 days, we would be in a better situation than today, which business plan perspective, we get the PLI. But just a disclaimer that most of our business plans do not factor in any of these government incentives. I think we are pretty much focused on what as far as the customer and the market opportunity is, and we continue to basically push on that. If PLI comes in, that would be something additional.
Okay, sir. This was helpful. My other question is since we have a very good technological advantage from our JV partners, sir, what are our plans to cover export market? And I mean, how much advantage do we have as compared to our peers due to the JV support?
Well, I think from the export strategy perspective, I think first and foremost, our intent and our priority is the Indian market because the JV basically is whatever we have formulated, is basically for the markets which are for India. There is also a difference between how Japanese JVs work and mostly the European JV work. We are in deliberations on the export strategy with 2 of our JV partners who think that they have sourcing opportunities from India. But that is not a immediate opportunity. That would still take about 2 to 3 years to fructify.
The next question is from the line of Apurva Mehta from A M Investments.
Yes. Congratulations on a great set of numbers. Just wanted to know...
Sorry to interrupt you, Mr. Mehta. Your voice is not very clear. May I request you to come closer to the phone?
Yes. Is it clear now?
Now it is better.
Sir, going forward, the mix of 2-wheelers and the 4-wheelers, going forward, how do you see this mix happening? Because we are highly concentrated on the 4-wheeler -- on the 2-wheeler side. Can you throw some light that are we diversifying into 4-wheeler, CVs kind of thing or on the tractor side? Any sense on that?
So thank you, Apurva. I think first and foremost, the 2 and 3-wheeler segments contributes close to about 47% of our revenues for H1. And if I see this number, how it has, let's say, moved over the last 2 years, it has significantly come down. Strategically, we intend to grow the other segments more. I think pass cars today sits at 20% of the consolidated revenues. And going forward, I think the endeavor, as we move forward into deeper entrenchment of plastics and electronics and one of the recent joint venture announcement, a lot of it would find traction in the 4-wheeler space.So we do expect that going forward, the growth of passenger cars as well as commercial vehicles should be also significantly higher than the 2-wheeler growth. I'm talking about overall as a percentage contribution to the revenue, not particularly in terms of the revenue growth. So -- but clearly, we would like the 2-wheeler business to be somewhere around the 40% mark, give or take, and we're already at 47%. So I think we are inching in the right direction.
Okay. Great. Great. Great. And on the aftermarket side, now this, the INR 80 crores will be our benchmark which are -- can we consider as the base for aftermarket?
When you say INR 80 crores, you're talking about for the quarter?
Quarter. Yes, of course, for the quarter.
Yes. So I think we have definitely moved upwards from a much lower base. But on an annualized basis, I think, yes, approximately close to INR 300-odd crores is something which I would say is a safe bet. So maybe about INR 75 crores to INR 80 crores for the quarter is something which should be definitely sustainable going forward. And then again, unless and until the new product introduction happens into the market, that would then significantly add to the growth going forward perhaps in FY '23.
Okay. So what will be -- what kind of growth do we expect in aftermarket in FY '23, if everything goes well, and there is no any disruption side, which is not there, then what kind of growth we can see in aftermarket?
I would say that the growth in aftermarket has been historically much beyond the industry growth. And I think the similar guidance would continue. I think we need to look at aftermarket in a more holistic manner over the next 3 to 4 years. And as I said, if aftermarket has to double its revenues in the 3 to 4-year cycle, then we should expect at least, give or take, 20% growth on an annualized basis, which would be definitely more than the industry growth.
Okay. Okay. And on the new JV, can you throw some light now we have already signed it and what is our growth path? And what are the products can -- we are aiming to introduce? And is it for aftermarket only or we will be supplying to OEs also? Can you throw some light on that?
So Mr. Mehta, thank you for your question. This is Vikas Marwah. The new joint venture that we have signed as announced is with Alps Alpine Corporation of Japan. It's an $8 billion conglomerate into automotive segment, components and into a lot of other related electronics fields including telecommunications sector. But of course, our JV will be focusing only on the automotive components.Very happy to share with you now this is one joint venture which already has its feet on the ground, and they already are Tier 1 suppliers to Maruti Suzuki, the biggest 4-wheeler manufacturer in the country for power window switch. What the Lumax alliance from this joint venture will do is, introduce new products in terms of localization and the products which are required here in the country, but currently not supplied by Alps, which are contact coil or clock spring and other regulatory-driven products for the market.As for the government regulation, it is a mechatronic device for the deployment of air bags as you know, which is going to be a mandatory requirement. We are also going to be launching steering angle sensors, which is again a government regulation driven product. And for the first time, it will be localized in India with Alps and Lumax. Then besides this, we are looking at engine start-stop switch and a whole lot of other new products.This JV is for the OEMs. It is not directed towards the aftermarket right now. And for this joint venture, we also have a very robust portfolio of 2-wheeler products. So when the question comes in terms of how do you want to reduce the dependence on 2-wheelers, we don't want to disappoint you, but we do not want to -- we definitely want to be encouraging the sensors business and the electronic products business on 2-wheelers because this joint venture will be introducing throttle position sensors in localized version, side-switch sensors there and a whole lot of new sensors which are required in terms of the government regulation. So very excited with this joint venture, and we get into commercial production in this joint venture in Q3 of the current financial year.
Great. Great. Great to hear that. And it will be also for the EV new scooters and 4-wheeler also, this -- we will be using that also?
Yes. So almost 90% of the products are EV and plastic and irrespective of being ICE engine or an EV -- EV powertrain, these products are sustainable for a long-term future.
Okay. Okay. And on the EV side, are we looking for any other JVs for -- because EV is the sector which is growing very fast, are we looking at any JVs on the EV side?
So currently, we have already made some headwind in terms of our existing basket of products towards the EV space. Going forward in the next 3 to 4 years, I expect that maybe about close to 3% to 5% of the revenues should come from EV space as well. This is a combination of, again, some of our existing products, which would be applicable to the EV as well as some of the new products and the new partnerships, which we would be kind of directing towards the EV segment.
Okay. Okay. And on the -- last question on next year, what kind of growth are we seeing there because we will be having urea tank, this new order book will be there. And this new JV also will be starting to contribute. Mannoh will also start being -- will be robust. So what kind of growth we should envisage for next year?
So I think it's too premature to give you a FY '23 guidance. As I mentioned earlier, in FY '22, for the full year, we should expect a 20% growth over the last year because of whatever I had mentioned earlier. And yes, there should be additional revenues, looking at our order book, which I mentioned of INR 440 crores, which some part will come in FY '23 as well. So all those put together, I can only say that I think, historically, the company has delivered a better performance on the top line vis-a-vis the industry growth. And I think the similar guidance would continue for FY '23 as well.
Okay. But second half should be much better than the first half. That is because if this current run rate also if we put then in the second half, we should be close to INR 800-plus crore of turnover. So that will take us to around 14%, 15% kind of a run rate? So 20%, do you feel it is too low or we are missing something?
No, I'm not missing something. I'm saying at 20% definitely is on the card, it could be even higher. But again, I think what this volatile environment has taught us is that you can never be so sure about 6 months out. So we're just being cautiously optimistic.
The next question is from the line of Dhiral Shah from PhillipCapital.
So my question is on pertaining to the product category side. So which are the products which you feel will have the better growth opportunity in coming 2 to 3 years?
So I think -- Dhiralji, I think directionally speaking, we have always maintained that strategically the company will focus on growing the electronics business, the plastics business, the mechatronics business and the aftermarket business. I think these are the 4 key growth drivers in terms of the domains for the company. And if you look at whatever products we are making, they would factor into pretty much these 4 categories.I mean, there is a solid focus on the connected and electrification, like the case. There are also the advanced technologies through the PLI scheme. And as you had heard earlier, many of our products are directly a part of the PLI scheme. And again, there is also a focus on the EV adapting on the 2-wheeler and the 3-wheeler technologies. So I think multiple actions are being taken to grow these domains.So it would be very difficult for me to say that there is one particular product or segment which will do better than the other. I think we are focusing in on all of them put together. And as the regulatory framework also changes, be it on account of sensors or even in the past when you saw the urea tank, and I'm happy to say that there is a deeper engagement now on the plastic aspect towards the fuel tank for commercial vehicles. So I think on all aspects, we would be driving growth.
Okay. So sir, what will be the product mix change down the line from the current rate which we have?
So I think -- I mean, it will be very difficult for me to give you one particular product-wise segmentation. But I think electronics will grow much faster than any other product segment and probably followed by plastic. These would be the key 2 growth drivers in the OEM space. And of course, aftermarket, as I mentioned, will continue to hold its own growth curve.
So when you say electronic, does it include shifter as well as emission?
So the shifter is a part of the mechatronic. When I talk about electronics, I actually mean the sensors and also the telematics products, which form the electronics of the vehicle.
Okay. So what is the current contribution, sir?
Current would be negligible, but I thought you were talking about growth drivers from the future perspective. I was just telling you the -- even the recent joint venture with Alps Alpine would be coming under the electronic domain.
Okay. Okay. And sir, from the existing capacity which we have currently, what would be the peak revenue we can generate?
I think the highest revenue in a quarter is the Q2 at about INR 400 crores. So I would say that, again, the capacities would hugely differ product to product and division to division, something like an oxygen sensor. I'm sitting on an extremely idle capacity. So it would be a little inappropriate to give you a generic capacity utilization for the company. Again, aftermarket, it's very difficult to tell you what is the capacity utilization really. But I would say safely close to about, let's say, anywhere between INR 1,600 crores to INR 1,800 crores would be a reasonable number to give you an annual revenue outlook with no significant investment towards new capacity.
Okay. Okay. And sir, what would be the CapEx requirement for FY '22 and FY '23?
So I think Mr. Mehta has already mentioned in his opening remarks that the CapEx for FY '22 has been pruned down from earlier guidance of around INR 90 crores to now at about INR 65 crores to INR 70 crores. And for FY '23, we do not have a direction yet. But I would say it would probably be around the same as the original guidance of FY '22, close to around INR 90 crores or so.
Okay. And sir, lastly, the new order win which we have of INR 330 crores, if you can share this is for which product basically?
So out of the INR 440 crore order book, I would say that almost close to INR 160 crores would be on the gear shifter systems; almost close to INR 80 crores would be the plastics business for both 2 and 4-wheelers; about INR 65 crores would be on the -- actually, about INR 100 crores would be on the metallic including the chassis and the seat frame business. Almost close to about another INR 40-odd crores would be on Lighting as well as on the emission systems and about another INR 15 crores, INR 20 crores would be on the recent JVs like YOKOWO and JOPP. So all put – it’s a mixed bag, but yes, all put together, these would be the key contributors of that order book.
Okay. And sir, just one last question regarding our EBITDA margin. As you said, we'll try to achieve the 11% kind of a margin. So is this a sustainable run rate going ahead, because historically, we have delivered between 8% to 9%, maybe around 9% range.
I think I have always given the guidance that over the next few years, our goal and target is to move towards the teen EBITDA, 13% and upwards. And you're absolutely right. I think a few years ago, our EBITDA margin did stand at close to about 8% to 9%. But I think right from FY '18, '19, we have been in the double-digit space. Only FY '20 was a slight drop again, where we pulled back to about 9.5%. So I think we've sustained for 2, 3 years rather a 10% mark. And I think now from a quarter perspective, we should also be able to sustain upwards of 11% going forward.
[Operator Instructions] The next question is from the line of [ Amit Shah ] from [ Eight Securities ].
Sir, I have 2 questions. One would be what is the value of new product launches during the quarter in terms of number of units and monetary terms? And what is the peak revenue cycle normally once the new product is launched?
So for the quarter, the revenue from new products of the order book would be close to around INR 50 crores to INR 60 crores. And what was your second part of the question? What is the lifecycle of product?
Yes, sir, peak revenue cycle once the new product is launched, sir.
Peak revenue would ideally come in year 2. And if the model is a success, it would also go forward to year 3. And again, it differs from product to product. Some products are carryover products and some products are completely specific to a new model. But I would say, in general, if I were to give you a guidance, I think year 2 to year 3 would be the peak revenue on a model lifecycle of about 5 to 6 years. And as I mentioned earlier, out of the INR 440 crores of new order book, peak revenue out of this would come in actually FY '23 and some part of FY '24.
Okay, sir. Sir, and lastly, sir, regarding Lumax Mannoh Allied Technologies exports, how is the margin profile and who was the global customer?
So as mentioned, Mr. Shah, the global customer for this is Honda Cars, which is a global account for our joint venture partner Mannoh. The margins, I would say, are about 20% better than that for the Indian market because of the value addition being higher there. And what is more heartening is that the quality of the India made product at the local facility here has been accepted in the first lot itself by Honda, which is a very, very demanding captive customer.And they have agreed to expand the exports portfolio to the other countries. We have started with one country and total, there are 4 countries on the radar, depending on the speed with which we can expand.
[Operator Instructions] The next question is from the line of Atul Kothari from Progwell Securities.
Sir, I just have one query. Sir, how much of a portfolio is getting response from the EV side from the [indiscernible]?
So Atulji, of course, while EV is a much discussed subject for the coming year, currently, if you see, even from the mass production side of even 2-wheelers also, there is not much of EV population that is on-road either from Bajaj or from Hero or from the other manufacturer. We are not currently making only EV critical product. That is something that is still on the whiteboard right now as we are drawing out the future plans.We have currently diagnosed the existing Lumax Auto Technologies product portfolio in terms of the risk factors and what are the necessary actions that we need to take both for the 2-wheeler products and for the 4-wheelers in the coming years. We feel that it's only around FY '25 that we will see some amount of significant shift even towards -- from the mature OEMs towards the EV portfolio. And for the 4-wheeler OEMs, the strategies are yet to be completely announced.Also happy to state that our technology-intensive products like gear shifters, the automatic gear shifters have got almost 100% share of business on the EV vehicle that are currently rolling out from the Indian OEM. So we are watching that market very, very carefully. And as the market development happens, we will keep you appraised.
Sure, sir. Sir, but are you having any order in hand currently for the EV vertical?
So the orders in hand, of course, as I mentioned, are for the EV models of gear shifters that are being rolled out by Tata and Mahindra. So the gear shifters of EV are going from Lumax Mannoh. We also have some orders in hand for our telematics business. And also, we will be supplying in future our metallic chassis frame to Bajaj for their EV vehicles from our new chassis plant that is currently under commissioning in Pune.
[Operator Instructions] The next question is from the line of Apurva Mehta from A M Investments.
Sir, recently an article was there that Lumax Group is going to invest INR 450 crores for the year '22-'23. So is it that we are usually investing? Or this was for a long-term kind of thing?
So this is, again, from the group's perspective, particular company. And again, this is more from a long-term perspective that looking at the opportunities which are there for the group to grow forward, we would be parking these CapEx on multiple buckets in terms of new joint ventures, in terms of also capacity and capability building as brownfield investments and also towards greenfield projects on, let's say, electrification and others. So it would be a combination of 2, but it is more of a direction for the mid to long term.
So typically, this would be around for 2, 3 years, kind of horizon or maybe more?
Yes, probably close to around 3 years horizon. And it's again, put together for both the listed entities of the group, industries and technologies.
And typically, when we are investing lot on the electronics side, what kind of asset turnover can we see on the electronics side?
So it really depends on, let's say, the asset turnover for Lumax Auto Technologies as a whole is at about 1:2.1. And I think our endeavor is that -- and again, when I say electronics, it is a combination of multiple things. Something like telematics would have a very different asset turnover ratio vis-a-vis something like an oxygen sensor vis-a-vis a Lumax Alps Alpine product line. But I think definitely the realization would be more because the value addition in these components is higher. So I would say that the gross levels would be higher. And hence, the asset -- the investment to asset turnover should also become better than what the company is faring today.
And on this oxygen sensor, are we still negotiating any orders or are we having some kind of order book for next year?
So we are still in talks with multiple OEMs. We have already started gaining revenues with 1 OEM right now. However, it is a very small beginning. But as you may have already heard that there is already now a notification on the OBD2 coming from FY '23 onwards with which it will be mandated for 2 oxygen sensors per vehicle. So there has been a renewed interest from a lot of the big OEMS, and we are currently engaged with their engineering and strategic teams and we are looking at possibly at least engaged in dialogues of an order book of perhaps coming to almost 3 million sensors a year.
As there are no further questions from the participants, I now hand the conference over to Mr. Anmol Jain for closing comments.
Well, I would like to thank you all for joining into the call. I really hope that we were able to answer all your questions. If there are any further queries, you may please get in touch with us or SGA. We will be happy to address all your queries. Thank you, and stay safe and healthy.
Thank you. On behalf of Lumax Auto Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.