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Maruti Suzuki India Ltd
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Ladies and gentlemen, good afternoon once again. May I introduce you to the management team from Maruti Suzuki. Today, we have with us our CFO, Mr. Ajay Seth; Senior Executive Director, Marketing and Sales, Mr. R.S. Kalsi; Executive Director, Finance, Mr. D.D. Goyal; Executive Vice President, Finance, Mr. Pradeep Garg; Vice President, Finance, Mr. Sanjay Mathur. The con call will begin with a brief statement on the performance and outlook of our business by Mr. Seth, after which we will be to receive your questions. May I remind you of the safe harbor. We may be making some forward-looking statements that has to be understood in conjunction with the uncertainty and the risks that the company faces. I also like to inform you that the call is being recorded, and the transcript will be available at our website.I would now like to invite our CFO, Mr. Seth. Over to you, sir.
Thank you, Nikhil. Good afternoon, ladies and gentlemen. As you are all aware, the auto industry is currently experiencing a down cycle, particularly for passenger vehicle industry. It was the fourth consecutive quarter of decline in volumes. During the quarter, the sale of passenger vehicles for the industry declined by 18.4% over the same period last year. All sub segments within the passenger vehicle witnessed a decline. The sales of passenger cars, utility vehicles and vans declined by 23.3%, 4.5% and 25.7%, respectively, over the same period last year. The company was also impacted by the demand weakness and the domestic sales declined by 19.3%. The shift in consumer demand towards petrol segment is now even more evident, with petrol segment now contributing to 66% of passenger-vehicle industry's domestic sales during the quarter. For the company, the contribution of petrol increased further from 72% in Q1 financial year '19 to 78% in Q1 financial year '20.The company had also progressively initiated the transition to BS VI norms, well ahead of time lines. Now 5 of our top-selling models, Alto, Baleno, WagonR, Swift and Dzire are already compliant with BS VI norms. Export shipment at 28,113 units grew by 7% during the year.Turning to the financial performance in Q1 financial year '20, the company registered net sales of INR 187,352 million lower by 14.1% over the same period last year. The operating profit was INR 187,352 million lower by 57.1% and net profits stood at INR 14,355 million, lower by 27.3% compared to the same period previous year, largely on account of lower sales volume and higher depreciation expenses. However, we remain confident as ever in the fundamental strength of our business and with the support from all our stakeholders, we resolve to come out even stronger amidst these uncertainties. We can now take your questions, feedback and any other observations that you may have. Thank you.
[Operator Instructions] The first question is from the line of Jinesh Gandhi from Motilal Oswal Securities.
Am I audible now?
Yes, you are.
So my question pertains to -- firstly, can you share discount numbers for the quarter?
The discount for the quarter were at INR 16,941 crore.
Okay, okay. And secondly, given there has been substantial decline in wholesales, on that context, how did retail do in this quarter? How are the inventory levels now?
Well, retail also are under pressure because both these things are interlinked. Our point here is that if we talk about quarter 1, then the retail were down by 5-point -- retail was down by 17% for the quarter.
Okay. And so inventories are still at about 25 days or it has come down.
No. Inventories still continues to be high.
Would be around 25 days or has changed materially, higher, lower?
It's 100-plus, a little more than 100 plus.
The next question is from the line of Kapil Singh from Nomura Securities.
A couple of question on the financial. Firstly, we see that the other operating income has seen a big increase to [ 39 80 ] crores, so could you help us understand if there any onetime item, or this is a recurring number.
One, of course, is on account of the uniform freight recovery, as we're moving most of our models on the uniform freight recovery. So there is a regrouping issues -- just to give you comparative numbers on this. In Q1 last year, 244 crores was the freight recovery, uniform freight recovery, which was shown as operating income and the expense. This year, the figure is 483 crores so that's coming as an expense as well as operating income. So that's one difference. There's a lot of difference in terms of operating income. There are other smaller items, but this is a big difference.
So largely this should be a recurring kind of number?
Yes, this should be a recurring kind of a thing. Because this may -- you may have 1 or 2 more quarters of reclassification as we move all the models towards uniform freight. So you might see this number change a little bit more in few quarters, and then it will settle down.
With that, sir, in that case, your other expenses have seen a very big drop, right? Because it's lower by another 240 crores compared to what you have in -- on a Y-o-Y basis.
Yes. So CapEx -- that is, one largely because of volumes are down. So some of these expenses which are variable in nature like royalty and all, will also be significantly down, right? Because it's all linked to volumes. And other -- in all other areas we have made efforts to bring cost down to the extent that we could. For example, areas like advertisement and other areas we've kind of brought our cost down, but it has done it with the variable nature of expenses, which are linked to sales irregularity I mentioned and a few other similar expenses.
Sir, as you informed, has anything changed from last quarter to this quarter? Because in absolute terms, the number is much higher whereas the volumes are lower.
No, because if the model scheme moving to uniform freight -- but it keeps changing, right?
Okay, okay. Understood, understood. And then secondly, I just had a query on your Slide 11 in the presentation, we have mentioned that positive factors are favorable commodity prices. This is a movement within 1Q FY '20 and Q4 FY '19, whereas when I look at material cost as a percentage of sales, it's actually gone up by 90 bps, if I look at Slide 10. So how to understand this, did we experience any material cost/benefit? And are we likely to see some more going ahead?
Okay. The fact is that material cost benefits certainly is there on account of commodities and cost reduction. In fact, even the exchange rate has been a bit favorable. There is about 40 basis point kind of impact that we have on account these 3 factors which is positive. However, one, this is more like a vertical factor. Whatever costs that we have added on account of the BS VI and safety features, this cost has been passed on to the customer. So if you take that into account which is like -- if it is a cost of 400 crores on one side, material cost, and 400 on the sale side, that distorts the ratio almost by 50 basis points. That is the reason why you strive to be a little higher...
Okay, okay. Understood. And sir, could you give the royalty number and Gujarat production as well. That will be all from my side.
Royalties at 5.2% and Gujarat volumes were at 96,603 units.
The next question is from the line of Pramod Kumar from Goldman Sachs.
The first question pertains to the industry outlook. The last number we had was from the Chairman that he would expect the industry to grow by 4%. I'm pretty sure there are a lot of things have changed with the 1Q print, and given the other headwinds both the industry is facing. So if you can just help us understand what would be your best-case estimate for industry in terms of FY '20. And in relation to that, how do you see Maruti in terms of outperformance or underperformance versus that number, sir. That will be the first question.
Commodity market is -- there is significant uncertainty in the market, which is very difficult for anyone to predict any kind of number unless we see some severance by the government to policy intervention, et cetera. So at the moment, markets are looking weak. There is very little demand traction. But hopefully, I think this awareness has started coming in now the circles of government. I'm sure something soon will happen. But to give you any guidance at this point in time for the year will be very tough.
Okay. Fair enough, sir. And the second question on the diesel side, we do have -- we have further shrunk our diesel exposure. And if I kind of -- [ Fizen ], Brezza and S-Cross, which is 100% diesel model, your diesel exposure comes down by another 9 percentage points. So I just want to understand what is the part behind kind of completely giving -- kind of exiting the diesel engine all together with BS VI? And what kind of study do you have which back seat whether the consumer would really move away? And what are the kind of hurdles would you say -- what you have seen in terms of increased cost or increased break-even number? Because a large section of the investor community is a bit worried about Maruti vacating the diesel space all together. And if that could result in some bit of market share loss or some bit of disadvantage for -- in the marketplace, especially even on the shared mobility side. So if you can just help us understand your decision to kind of exit diesel, sir, in BS VI.
So what we had I think sometimes I have mentioned, that we are evaluating a 1.5-liter diesel engine for compliance with BS VI and that's something. So it's not entirely correct that we would like to completely vacate the space, we are evaluating. And as we progress, we will report back to you. As far as the smaller diesel engines are concerned, I think, this space has been vacated mostly by all manufacturers because it is not going to be viable from a point of view of our consumer given that there are going to be 2 increases. One at the time of BS VI. And the second when the Audi comes in play which is 2 years later. The cost increase on these are quite significant, in both these 2 steps. And therefore, commercially it does not make sense to do it. But we will have to continue to watch it carefully and see how it plays out. And the company will continue to see all the situations and conditions that exist from time to time.
And so just to clarify the 1.5 may not necessarily be ready on BS VI from 1st April 2020. Is our understanding right? Or you can still make in that particular time line, if you decide we need to have that engine in BS VI.
We haven't, at the moment, made any announcements on any -- on bringing in our time lines. As soon as we have evaluations and clarity on this, we will come back to you on possible launch dates.
And sir, on the related side, how do you see the commercial taxi segment reacting to this because you are the preferred brand when it comes to either Uber or all items of the sedan segment, like Dzire is one of your largest -- it's the most dominant model on the midsize taxi market. So how do you expect that customer to react? Do you see the commercial angle even there getting a bit tougher for diesel? Or you think -- expect petrol hybrids of -- the mile hybrids with 10%, 15% fuel economy kind of taking that space or even CNG. So how are you thinking about the shared mobility space, sir?
CNG models are doing quite well, and we are -- you know this thing -- finding that our -- sales on CNG increasing in that segment, that is one. Second thing the place -- so we work -- expect, and we have been having discussions with the government about past expansion of CNG network availability. And in terms of adding more cities, also in terms of adding more gas stations. Now apart from this, petrol hybrid models also. Over a period of time, we'll find an acceptance in this segment.
The next question is from the line of Pramod Amthe from CGS-CIMB.
Considering the fact that now Vahan database gives off the actual registrations, which for the industry looks like a single-digit decline. Were the fuel retails are still a double-digit decline? What do you read from the Vahan database? How does it -- reliable or doesn't make any sense still? The reason I am asking you is if you have declined by almost 20%, and if they are showing the 6% decline, that means the rest of the players have substantially improved their market on the retailing front. Is that right?
No. That's not the case. I think -- so that's not the case. In fact, if we talk about the decline, this is across in the same industry. And right now, I have the single wholesale figures where, you note, passenger car industry in quarter 1 has declined by 18.4%. So I have nothing to comment on single-digit -- low-single data, whether it is Pan-India or there are others potential impact, but the entire industry is single -- on a declining trend.
Also Pramod, I don't think this will be like-to-like comparison because there will be a lot of these vehicles which pertains to previous year which would have gotten just so in the current year. So unless you may have an apples-to-apples comparison, you can't compare the 2 figures. So maybe in a much longer period if we're doing a comparison, that will give you more meaningful results. Because if you are looking at Q4 numbers we registered now, and certainly, we will find the registration are much slower decline compared to decline in the retail or wholesale volumes.
Additionally, Pramod, I think not all registration data is captured by the Vahan, certain effects where -- which are not included in this figure. And also, if you see carefully the registration data for Kerala state was also kind of not appearing there. So -- or appearing as a 0 for last year. So that is giving a lower base.
And the second question is with regard to capacity. There are some announcements about the Suzuki delaying or differing the capacity plan for Gujarat plant. Any thoughts or what's your reflection for the same and also the plans for certain capacity to come up in the future?
The more we work with a long-term view of business, and we have seen this cycles in the past also. And therefore, our plan is based on much longer period of time. And therefore, we will go on track in terms of whatever we have so far announced and planned. There will be no stoppage of that. I think the cyclical phenomena as we have seen from time to time. So this is something that we will be able to deal with. And I'm sure that things will improve. And there will be a lot -- delaying any of our plans that we announced.
The next question is from the line of Chirag Shah from Edelweiss.
Sir, 2 questions from my side. One about looking -- trying to understand what would be your rural market share and urban market share. Given that premium post NEXA over the last 5 years, you would have gained significant urban market share. And if we had an earlier understanding that we are extremely strong in rural and we're relatively weak before in urban, before the entire NEXA rollout and the NEXA to be played out. So can we shed some light on what would be a rural market share, urban market share?
Well, rural markets have been doing well so in spite of our expansion in the urban market. There has been a fairly good growth. And if I talk about this thing, let's say, '18, '19, we have 39% penetration in the rural markets. At the same time, Europe, if we talk about quarter 1, there was all pressure on the rural market. And there has been 17% degrowth in the rural market, almost similar to what has happened in the other markets. However, if you talk about the share, their share continues to be around 38%, 39% in the rural markets.
Sir, that is our volume contribution, right? I was trying to understand about market share if -- would be being closer to 50% -- for all India market...
We will also calibrate because of the competition the retail data for Uber market is not available separately so that calibration is in the pipeline.
But if -- with the right shipment, their gap would have been significantly bridged and urban and rural market share would be largely similar.
As I mentioned, since we don't monitor it or don't -- can't measure it, so it is difficult to make a statement on that.
And the second on the CNG side, so one, what would be the current contribution of CNG in our overall portfolio?
[ 6.1 -- 6.6 ].
It's more than 6% as of now.
And in the cities where our CNG sales are happening, over there, prorated CNG will have a disproportionate share, maybe 30% of the volume contribution in that city would be coming from CNG. Is that a right statement?
Yes, certainly. CNG's share would be -- all CNGs available or vehicles are sold only in those cities where CNG is available. So certainly, the figure reflects 6%-plus but actual share in those market are much higher.
But it would be a part of the 25% or it will be a safer assumption that at least 1/4 of our sales is in [ Mumbai ]?
Around 22%. Around 22%.
Around 22%. And sir, one last question if I can squeeze in is when you look at inventories around more than a month, are you referring to only dealer inventory or are you taking into account the inventory they were factoring it also?
So we are talking about dealer inventories only.
And what kind of inventory generally we give, they're factoring it?
Factory inventories are normally all regulated. And we would, the best, have about 4 to 5 days' inventory at a given point in time.
The next question is from the line of Gunjan Prithyani from JPMorgan.
I just had a follow-up on this gross margin. If I just compare your gross margin versus last quarter, it seems to have deteriorated further. Now I do understand you mentioned there was commodity easing and positive effects, and the BS-IV impact kind of offset that. But still the duration Q-on-Q, if you could give us some sense what has led to that, and how should we see this spanning out over the remainder of the year?
Okay. So we mentioned to you that there has been a cost reduction. And then we mentioned that there is a 50 basis point impact on account of this BS VI and safety feature, right? However, there -- so -- the margins at the end of material cost to net sales ratio was 72.9% as of quarter 4 last year. I got this. Okay. I mean -- so certain numbers which are -- but I'm just giving you the reference point. There are the cost reduction I mentioned to you. Sales promotion expenses had been higher this quarter compared to last quarter. So that has an impact of about 40 basis points. So discounts has an impact of about 40 basis points. There is a slight impact of mix also. Sales, product mix, which is about 20 basis points and the balance I mentioned to you is on account of that arithmetical computation of passing on the material cost of BS VI and safety features.
Which was offset by the effects that you've seen. So essentially, there's higher sales promotion which I'm assuming is captured on the net realization level, and the mix impact which is -- which has kind of led to the deterioration. Now if I look at the remainder of the year, do you really see more commodity easing to reflect going forward on this line item?
I think 2 things will happen which we are working on. Commodities, of course, are easing. So you'll see that benefit coming in, in quarter 2 as well and maybe a shade better. Second is that I think some of these cost-reduction initiatives that we have made in the first quarter will continue into the second quarter. It is, however, difficult to talk about the discounts and sales promotion cost because that will truly depend on how the markets behave and where you stand at that given point in time. And this is, of course, a permanent feature of BS VI until it settles down as a base.
Okay. And the other follow-up I had was on the royalty. Could you give us a sense of how much of the portfolio is now in INR. And when you're having these refreshers which are the BS VI refreshers or relaunches. Is does the -- or royalty get denominated in INR at this transition? Or it happens whenever the -- eventually refresh. I mean there was this portfolio transition which were to happen, right, when refresh is ready, the royalty gets converted in INR.
So here exactly going back what we have communicated earlier that all new model changes. Full-model change as and when it happens as you move to the new royalty program -- formula. So far almost 45% of our model values would have moved to the rupee-based formula. The balance 55% will move within the next 2 -- 3 years. So by 2021, '22, we would have all the models which would have moved to the rupee formula.
Okay. And just last question if I can squeeze it on the accounting adjustment that you've done this lease restatement. If you could explain the key line items and the impact. Is it just the depreciation impact of about INR 120-odd crores which has been restated or is there more to the adjustments?
The impact, they're not material, and these have happened under few hedge. So this is not material. And AS 116, as it was to be monumental in consultation with the auditors, have been done. But the impact -- I don't have the line -- I don't have the exact line of details but the impact was not material.
The next question is from the line of Nikhil Kale from Axis Capital.
So my question...
I'm sorry. Nikhil, we can't hear you. Can you please speak a little louder or increase the volume...
Yes. Is my voice audible now?
This is better.
Yes. so my question was under electric vehicles. So just wanted to check if there is any update on your plans for launching electric vehicles. Also, I wanted to understand how is our work or how is the collaboration between Toyota and Suzuki and figures there. I mean are they working directly with us or with Suzuki at the global level? And how is the development work being done there? Is it being done immediately in India or by Suzuki in Japan?
So Nikhil, there is no further updates on this subject except this thing that we are currently testing about 50 electric vehicles across country in different terrains. And it will give us a good insight into what kind of EV will be suitable for Indian market. So that's the thing.
Okay. And second question was on the fuel mix of the -- I mean we're talking about predominantly petrol portfolio. So how do you see the impact of the CAFE norms? I mean there is a thought that the CAFE norms will again lead to higher cost increase for petrol vehicles. So how do you see the industry and maybe the fuel mix evolve heading into these CAFE norms in April 2022?
Sorry. I could not understand your question. Is it you're saying because of the CAFE norms, the petrol vehicle prices will go up?
Yes. I mean that is what we've been hearing that we will see -- I mean the differential will again kind of come down between diesel and petrol vehicles.
No, no. I don't think so that is the right thing. Because I think CAFE regulations requires fuel-efficiency improvement and proportionately reduction in the carbon dioxide emissions. So that can be achieved through electrification of powertrain, the IC-engine-powered vehicles and CNG appropriate mix of all this kind of powertrains. So in petrol vehicle as such because of the CAFE, there is unlikely to have a cost increase. But just -- the powertrain will have to be a combination of various kind of alternate fuels.
The next question is from the line of Jatin Chawla from Crédit Suisse.
First question is with BS VI, what is the kind of price increase that you've taken across different models? And the fact that you are the first ones to have taken and the competition has not -- does that place you at a disadvantage in the next few months until the rest of the competition takes their price increase.
We have mentioned to you that we have passed on the cost of BS VI and whatever safety features. In this kind of a market, to take a price increase will be a very difficult job when the market is already contracting. So we -- as a -- so there is no price increase per se that we have taken. We have been able to -- however, we have passed on the cost effect in case of safety norms and BS VI is not small so that has been passed on. The response to BS VI has been reasonably good. I mean in spite of the increase in cost, I think customers are looking towards the BS VI vehicles maybe it is likely they have a feeling that this is a different technology or these are superior vehicles. So the response so far on BS VI has been reasonably good.
A related question on the same thing is, what I notice is that when you are launching BS VI vehicles, your ARAI mileage on those vehicles are lower than what it was on the BS IV vehicles. Any particular diesel for this year?
So this is a technical question. We will have to check with our engineering colleague who, unfortunately, is not here but we will get back to you.
Also, on the whole auto slowdown, I think one thing which all of us are finding it difficult to understand is why is it that auto segment as such seems to be significantly weaker compared to other consumer-discretionary segments. Just wanted to check if you can -- you guys have found some insights which can be useful to all of us.
Well, this is a segment where when a customer is buying the car, particularly when it is a diesel car, he can always, you know this thing, therefore, depending on the -- sense the market sentiment. The point is across the sector, across, you know this thing, auto industry, we are finding this kind of a declining trend, for example; 2-wheelers declining by 18%; 3-wheelers, by 7%; commercial, by 9%. Now car is something where, you know this thing, a person looks at many factors. Interest rate is one thing. Where -- in spite of reduction in the interest rate [ by RPA, has been ] passed on to the customer. Then there is a tightening of the -- you know this thing credit norms by the banks. So again some of the customers which earlier were getting qualified for taking a loan, they are not getting those loans. They are getting those loans at a higher -- much higher rate from NBFC. Another reason is that loan-to-value ratio also, there has been a big change in that because of the squeezing of credit norms by the bank. Plus, if we talked about the rural market, as I mentioned earlier, there have been so much of uncertainty there. Say monsoon, it got delayed. And then if we talk about the average monsoon across the country, 17th of July, it was about 16% deficient across the country. And even that 16% figure will not be an appropriate figure to talk about because there is a big diversity in terms of, say, monsoon happening; say, causing floods in some areas of the country and dry spell in other parts of the country. So it has been delayed. There's a 17% decline in rural market. So all these factors put together, I think, are responsible for this kind of decline in the passenger-vehicle industry.
A quick follow-up on that. What is the trend you are seeing on footfall? Are footfalls also down similar? Or are you seeing a big decline in your conversion ratio?
Yes. There's a big drop in the market inquiries. And we are putting efforts to generate inquiries through multiple events. And frankly, multiply -- there are no activities in the field level. They are trying to reach -- reach out for the customers to enhance the inquiry levels.
The next question is from the line of Sonal Gupta from UBS Securities.
Just a couple of housekeeping questions, I mean -- so could you give us the export revenues for this quarter?
Export revenues for the quarter was at INR 1,406 crores.
Okay. And just want to understand -- I mean in the other operating income, would we have seen higher R&D income from reimbursement in this quarter? And would that be also part of the growth that we've seen on a sequential basis?
Yes. There is INR 106 crores of engineering...
INR 109 crores...
INR 109 crores of engineering services fee that has been also accrued this quarter, which is higher than the -- last year same quarter was always small amount. So that's another reason for higher operating income.
So versus Q4 of last year, what was that...
Q4, it was at INR 50 crores. So again, INR 50 crores, this has doubled.
Right. And just lastly on this AS 116 impact, I mean does it conceptually make it now like be -- SMG depreciation that was coming in our other expenses now goes back to the depreciation line. And therefore, I mean, in a way, it is like if you were to, sort of, have consolidated the SMG operation, that's how we see the EBITDA number. Just wanted to understand how the accounting is moving now with the AS 116.
As we mentioned to you that we have -- in consultation with the auditors, we have done the -- we have implemented AS 116 as applicable. And I don't -- as I mentioned to you, I don't have the line item in detail. But the overall impact -- I mean there will be impact on some of these line item. The overall impact on the profits -- profitability is minimal. It's not very significant.
Right. And just last question would be -- I mean like you mentioned the credit stress is there to some extent. But could you just talk about how the overall position of dealers is in terms of the financial health of the dealers? And are you looking to extend any credit support given that banks have tightened credit? Or what's your thoughts there?
While we are closely monitoring dealers financial health, and you know this thing, in some cases, they have deployed short-term funds and the long term, and there was no expansion of the network. So what we are doing is through bringing in a better, say, inventory control at the dealership, we are trying to help them come out of the situation.
The next question is from the line of Basudeb Banerjee from AMBIT Capital.
First one, as you mentioned, that SMG production this quarter was 96,603. Now how much was it last quarter, sir?
66,000 -- last quarter, you mean quarter 4? It was...
Yes, Q4. Q4.
About the same number, 96,273 -- 96,272.
Okay. And how much is the utilization level of SMG now?
This quarter is being utilized almost as per capacity. So we have about 2 plants running. The second plant is being ramped up slowly because that only started last March. So the capacity of the first plant is full 100%. Second plant is getting ramped up. So based on that, if you look at total capacity of the 2 plants, it would be 500,000. And every quarter, it will translate to about 1?
80%...
For about 1 lakh...
80%...
80% of the capacity at this point in time.
So roughly will it be right to assume like 25,000 each, so 50,000 a month. So out of 1.5 lakh a quarter you are operating at almost a lakh units.
No, no. Out of 1.25 lakh a quarter because it's 5 lakhs for 2 plants, so we'll be operating at about 80%. Yes.
Second thing, sir, as you mentioned, retails are down almost similar to wholesale, around 17%, 18% Y-o-Y. Can you share with us how much has been the retail's down sequentially Q-on-Q? Because your inventory destocking exercise has been going on aggressively. So ideally, the quantum of retail decline should be lesser than wholesale on a sequential basis.
We will come back to you on this. We don't have any information immediately. We will get back to you on this.
And as you have been sharing earlier that the target dealer-inventory levels are around that 30 days, in general, which is at least presently as you mentioned. So how to look at inventory destocking exercise in the forthcoming months as such. Is it largely over? And as a precursor to festive season coming from September, we'll see inventory levels rising up again?
We'll have to monitor the market situation because as of now, we don't see, you know this thing, many positive signals in the market which will, you know this thing, give us a sense of optimism for the future. Now we'll wait and watch, and accordingly our production system is flexible enough. And we have enough capacity in case there is an increase in the -- say, the demand. We will be able to -- you know this thing, we can do that. But unnecessarily loading the dealers with the inventories at this point in time, in anticipation of a good market, will not be, you know this thing, a smart move.
Sure. That's great. And last question, sir, as you mentioned, already BS VI for Alto, WagonR, Dzire, Baleno, most of them have already done. So what's the time line for the rest of the models for BS VI transition you are looking at?
We'll do it within the stipulated time limit given by the government. But you know this thing, the -- majority of our models would be done by end of this calendar year results.
Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Thank you very much.