Tube Investments of India Ltd
NSE:TIINDIA
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
American Express Co
NYSE:AXP
|
Financial Services
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Target Corp
NYSE:TGT
|
Retail
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
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 |
3 164.85
4 716.6
|
| 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.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Estee Lauder Companies Inc
NYSE:EL
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Church & Dwight Co Inc
NYSE:CHD
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
American Express Co
NYSE:AXP
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Target Corp
NYSE:TGT
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
Mueller Industries Inc
NYSE:MLI
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Tube Investments of India Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to Tube Investments Q4 FY '24 Earnings Conference Call hosted by IIFL Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anupam Gupta from IIFL Securities. Thank you, and over to you, sir.
Thanks, Lina, and good morning, everyone, and welcome to the results conference call for Tube Investments of India FY '24. From the management, we have Mr. Velayan Subbiah, Executive Vice Chairman for TU; Mr. Arun Murugappan, Executive Chairman for TI; Mr. Mukesh Ahuja, Managing Investor; Mr. AN Meyyappan, Chief Financial Officer; Mr. K.R. Srinivasan, President and Whole-Time Director for the Metal Formed Products business; Mr. Murali, Vice President for TPI; Mr. Anggun Govindarajan, CEO for CX for Inventor; Mr. Paul, CEO for [indiscernible]; Mr. Gopal, CFO for TI Cycles; and Mr. [indiscernible], President for Business Development. To start off, I'll hand it over to Mr. Subbiah for opening comments, then we'll start the Q&A portion. Over to you, sir.
Thank you, Anupam, and good morning, everybody. The Board of Directors of TI met yesterday and approved the financial results for the quarter ended March 31, 2024. The Board is at an interim dividend of INR 2 per share and agreed 2004, and the same was shareholders in March. The Board has now recommended a final dividend of INR 1.50 per share for the financial year 2023, '24.
Revenue for the quarter was INR 1,962 crores as against INR 1,660 crores in the same quarter previous year. Net revenue for the year was INR 7,611 crores compared to INR 7,236 crores previous year. EBITDA for the quarter was INR 318 crores as against INR 301 crores in the same quarter previous year. [indiscernible] for the year was at 970 compared with 876 in the previous year. ROIC was at 54% for the year ended March 31, 2024, against 55% in the previous year. Free cash flow for the quarter was INR 104 crores, and accumulated free tax was INR 376 crores, which is 51% of PAT, mainly driven [indiscernible]. The Engineering business had revenue for the quarter at INR 1,236 crores compared with INR 1,044 crores in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR 102 crores as an INR 132 crores in the corresponding quarter the previous year.
Revenue for full year was INR 4,921 crores compared to INR 5,762 crores and PBIT of 679 versus 549 for the engineering business. [indiscernible] revenue for this quarter was INR 386 [indiscernible]. The CBP quarter was 42%, again, 45% responding quarter last year. And revenue for the full year was INR 1,519 compared to INR 1,424. And PBCers was INR 167 crores and again [indiscernible].
The mobility business, revenue for the quarter was INR 154 compared to INR 155 in the corresponding quarter. And [indiscernible] lot is not interest and tax was INR [indiscernible] crores and loss of INR 5 crores. Revenue for the full year of INR 664 and INR 800 crores for the previous year and lost of INR 18 PPIP before interest and tax [indiscernible] INR 17 crores. Other businesses, our revenue was INR 230 million compared to INR 191, and PBIT was 17 as against [indiscernible] and full year, INR 834 crores compared to INR 768 crores. And PBIT was 65 compared to 40.
The consolidated level, and that's consolidating in all of our subsidiaries, including [indiscernible]. The consolidated revenue was INR 4,490 as against 3,778 in the quarter. And our PDP before kind of profitable proceeds exceptional items, in fact, for the quarter of INR 201 crores [indiscernible] in the corresponding quarter previous year.
The consolidated revenue for the year was INR 15,890 crores as against INR 14,964 crores in the previous year, and the profit was INR 1,686 crores against INR 1,593 crores in the previous yaer. CD Power, the company [indiscernible] had consolidated revenue of INR 2,102 for the quarter as against INR 1,903 and PBIT was at INR 301 as against INR 281. For the year ended March 31, 2024, these consolidated revenue of INR 8,046 as against INR [indiscernible] in the previous year, and profit before taxes was of INR 1,158 as against [indiscernible] the previous year.
[indiscernible] had revenue of INR 154 the first quarter as against INR 156, and profit before tax was [indiscernible] as against INR [indiscernible]. Revenue for the year as again was INR 536 as against INR 436, and profit before tax was INR 110 crores as against INR 90 crores. Compensate the financial results [indiscernible].
DII resilience, giving a consistent growth in consolidated profits [indiscernible] driven by a strategic focus on [indiscernible] initiatives and operational efficiency to pigment. Exports during the year goes 3% note subsidiary, CP Power and Shaadi sustained that impressive performance.
TD Power secured approval from Union Cabinet under ES Semiconductor Commission to establish an outsourced forms assembly and test facility with investment of 7,600 for over 5 years. The investment loan is supported by the government substitute for equity and limited bank borrowing with technology and joint venture offices with an [indiscernible]. Additionally, PI and subsidy IT mobility on an agreement with GE after this INR 580 crores through compulsory convertible CCPS.
[indiscernible] INR 150 per share for the financial year. So we'll stop with that, and we'll be happy to take questions.
[Operator Instructions] The first question is from the line of Jinesh Gandhi from AMBIT Capital.
My question is on clarification on other expenses. They have gone up quite substantially in the fourth quarter because of a reported margin decline. Any one of other expenses, if you can call out on what is in for [indiscernible]?
Okay. There is a couple of onetime expenses, including political contribution that might have come.
Okay. And the last part of which INR 450-odd crores would be gone up?
Sorry?
Almost one-off would be INR 450 crores or lower than that?
No, it's lower than that.
And second question pertains to the engineering business. So given that 2024 was the year where we started a recovery in exports, can you talk about how did exports grow in FY '24? What was the contribution in FY '24 from exports? And how do you see that scaling up?
So exports this quarter was pretty good. There was a good growth in the engine business as well as the other businesses. Exports as a percentage totally, it was about 14% in the final year. And we see a good leads available going forward with a couple of OEMs taking approved in the short term. So the portion of exports in [indiscernible].
Okay. Okay. And you have a target of ticket up to 20% would play over the next couple of years?
Yes, that's right.
And other question pertains to the large [indiscernible] give that our expansion will be [indiscernible]. What kind of revenue can we expect from the full year extended capacity, including the first and the second -- I mean, the existing capacity and the new capacity together?
So like I said that capacity expansion will be over by Q2 and we are investing in capability, and we have to go for approvals of the large customers for which we are doing it and then the beta process followed, and the good headroom average for enhancing revenue from the next [indiscernible].
I mean, can you confirm in terms of fiber in terms of the capacity addition or the kind of revenues which we can do?
Maybe you can take it about the range of around 30%, 40% excess capacity will be a positive.
Next question is from the line of Nishit Jalan from Axis Capital.
Yes. Yes. Sir, I just wanted to take one from you. Tube is bringing a lot of new businesses, and so also CD power. So just wanted to understand how are you in which companies enter into which business? So for example, any business or the optical business was in queue, while semiconductor business and all this part of CG Power. So [indiscernible] process as part of which new businesses that will incur in the future?
Yes, a good question. Broadly, the first with is kind of that CG is sticking to businesses that are kind of what, I would say, kind of in industrial and electronics areas. But I will also say that I don't think it's kind of -- I don't think it's basically going to be predetermined.
So basically, once an opportunity comes up, we basically try and assess where -- what is the better long-term [indiscernible]. And also you have CG's and PI management also doing some independent valuation and continual opportunities for this house. So I don't think there's a deterministic path which we can tell you will be there. [indiscernible] If you want to know more about PI Clean Mobility R&D, I could kind of give you details on that.
So for a BMS, [indiscernible] anything. You have talked about that monitoring the VM, battery pack or [indiscernible]. Anything that you decide to do on the software side, that will be an important part of the IV. So I really wanted to understand from R&D capital [indiscernible].
Yes. So battery packing and in software development, obviously, will kind of be part of the litigation that overall [indiscernible]. And Paul will be on the call. He can give you a bit more detail as to what we're doing on R&D for CIT. And Paul, do you want to take that?
I think currently, we are focusing on the retaliation for our different platforms. We currently have about 200 members from central R&D team, and we are further strengthening it. So that's 1 piece. The other piece that we are concentrating is building the software capabilities over the next 1-year period, then you would like to take over much of the consumer period to software and then have a lot of control, lower train that's basically past DMS, motor and related with software and hardware. That's the direction that we are taking to truly become quite technologically superior from a software integrated hardware piece. Yes, the answer [indiscernible].
Okay. One last thing. If we see this year forward, will we see a good growth in [indiscernible] double-digit growth? And also on the data segment, including payment. Are engineering and metrics on revenue [indiscernible]. Any particular reason or capacity from where our customers have thought that because our aspiration is that have grown in double digits industry setup. Just want to understand and [indiscernible].
To answer this question, we have grown in the double digits only. Because like we shared in the last quarter, metal prices are competitive, some as compared to the previous year. Our growth in the quarter 4 and 2 wheelers, like we've mentioned, is picking up. We have grown in line and some even better than the market.
[Operator Instructions] Next question is from the line of C.A. Goel from Invest Analyst Advice LLP.
My question is on Engineering and Metal part. So given that our engineering to that investor is contactable 80% of our range, and we have achieved a Y-o-Y growth of 8% to 9% in F '24. So what are 4 strategies? Or does the management element to sustain and potentially accelerate this growth in the corner? And additionally, are there any regional market on duration that company are to enhance our competitive indication?
So our strategy for engine business and metal phone division continues to be first grow in line or better than the market for the domestic market? And is it [indiscernible] focus for the exports because our market share in exports are pretty low and the bedroom table for growth there.
And we are focusing those segments to drive growth as well as they ever mission is happening the funding. So there are many applications is emerging as a new and we have hope -- and the way the EV business evolves will be faceting those new opportunities, which will be an area of rate reduction in the area of the food edition because those are the new norms getting better in the EV industry to be [indiscernible].
And sir, our new verticals in mobility and other teams are expected to drive the growth picture. So my question is basically, can you share how the things are shaping up that goes through verticals there? How do you expect things to ramp up from here? You share the indicative time line like when are we expected to achieve the breakeven in mobile. Let me ask what you mentioned oil beat growth business. We are Q-on-Q down. So can you put some color on that?
[indiscernible] for EV, specifically for EV, we [indiscernible] we won't give any forward-looking lens because it's basically, it just lend uncertainties in the business. What we clearly [indiscernible] is that now, we have 2 products. The 3-wheeler product is doing well in the market, now we enter the Northern market. And we've also launched the truck kind of investing in its early days of kind of its impact.
But we've also kind of clearly signaled that with the fundraising, and we will not depend on TI or Parkinson standalone PI for funding in that business. So that is pretty much funded. I mean like it into the entry. And so the mobile [indiscernible]. So whether that giving specific guidance. So those are the new businesses that are selling now. Hoping that in the next 2 quarters or so, we will get a small commercial vehicle or go out. And so that's the status on that.
So what is the overall outlook for FX in last demand?
In mobility or for PI?
For PI.
Again, we've not met. Basically, we've not specifically guided. But like you know, the growth has been kind of in the [indiscernible]. That kind of I'll say enteritis kind of process we believe that in [indiscernible].
Next question is from the line of Nikunj Agarwal from White Partners.
This is Adi here. So it is going back to the question asked earlier in terms of how you decide or maintaining your business. I think a high level maybe from what I understand [indiscernible] Was that anything related with both and the power would be coming through power and less [indiscernible] medical equipment or even where it would come through. Right now, it seems -- has there been a change in kind of mindset or the thought process in terms of around the business?
So the question is would like to obviously kind of is going to be anything that's going to be led to model to power we naturally go to [indiscernible]. Whether natural or not, I don't think that may be your question, right? And then something may not be 100% actual. We will have to evaluate the pace when the opportunity comes up and articulate. So I don't think there's any change or just kind of elaborating because it's a bit difficult to kind of make a statement on where it is not so deterministic. I mean, [indiscernible], taking medical, for example. There was not a natural home in other places in new business. So that's your question, your question is like when [indiscernible] when we decided on where we think about [indiscernible].
So then that is a bit of a change in shape, right? Like example, if medical equipment were to come, you would be open to kind of possibly putting it to CG Power as well. You're open to that?
Yes. Yes. So I mean, I think you were asking. So I would broadly say CG Power is very well defined in terms of the businesses like angle things come on, we will take a look at kind of where is a more natural place to [indiscernible. So yes, if you see that, yes. So we can say that, that is the way we [indiscernible].
Got it. Two more questions. One more was you mentioned about how [indiscernible], the top line was slow because of the correction in commodity prices. But even if I look at the EBIT. I mean, EBIT is at the Motion margin. EBIT is growing, as I said, double digits, which is not [indiscernible]. So is that kind of being on the metrics business from a probability perspective?
Let me share in this quarter. In Metro, particularly, we are finding railway businesses getting more competitive and a little bit pulling down the margin. But otherwise, other businesses, the margin is that okay, the same way we have to figure out the answer for margins.
Okay. And on the elective [indiscernible]. In December quarter, we did revenue in March quarter about [indiscernible], but in last quarter, [indiscernible]. Any concerns over there?
Do you want to take that one?
[Indiscernible] business, you have thought [indiscernible] up coming to ends. So any excess of concern -- so I think I would say that these are new business. And actually, the volumes or the production actually will some as we get more traction in the market, and we are currently on that basis with the first part that we launched in the wheeler in progress.
And gradually, a lot of products will be launched this year that I was saying, an older, then we will have adequate representation in the market across the recent segment built on the heavy commercial rate side or the special vehicle side. And there are a few more variance or at the end of the year with the tractor launch. So with all this, then we should be in a position to garner some states and steady volumes, and that's the plan on that one.
Statistically, your question also is there was in March, the month of March, because of the change from paying to the new scheme, there was a drop in 3-wheeler primary sales, 20% in second resale. That would also [indiscernible].
Got it. One last one, there's been approvals being for long-term borrowing. Is there any strategic plans to deploy that? Or is this enabling?
No. We are always kind of -- I mean, we want to talented plan driving just [indiscernible], the market approval that we put.
[Operator Instructions] Next question is from the line of Rushabh from RBSA Investment Managers.
Looking at the company 5 to 7 years from now, how much percentage of the profit pool do you think would come from Titan respectively the target on this?
Is the way it's a bit tough to say. I really like to be, but I don't know if that [indiscernible].
Okay. Sir, any traction of progress in CDMO, real dividend the [indiscernible], anything that you'd like to share?
CDMO [indiscernible] pick up.
Okay. Sorry, the line is on like we already started receiving custom centers in order. We have 6 orders. In fact, 2 of them have been delivered even ahead of time. As far as the manufacturing side has come, we commissioned the [indiscernible], and we also fully functional. We have even built a before to get a tax for [indiscernible]. And currently, the CGP fire plant, and construction and to commissioned by September, so databases now.
Diverse models, could you have some update?
[indiscernible] like we discussed last time, we took over this company about 6 to 9 months back. And as of now, we're investing into the capabilities of the company and getting into many products between the lots framework, and we're looking for the retail opportunity. So we expect a good growth going forward for business.
And coming to the camera module, this is the month or samples from the go, one of the customer in the Korea got approved. And we are expecting a pirate load order in this month. And then maybe based on the higher core performance, then we'll be ramping up further. So beginning of the quarter down the line, we'll be able to give you a better update. But quality perspective and a perspective is a good news. Things are in order, how we see how we ramp up this capacity going forward.
Next question is from the line of Manish Kumar, an investor.
So my question is into the investment purchase of INR 563 crores. So able to find a lot more details as to what these investments are. So could you be [indiscernible] there?
Yes, INR 563 crores is actually invested INR 330 crores in clear NPL, [indiscernible] and we acquired and we reduced some INR 80 crores in a medical company.
And how -- what kind of synergies are you looking that these investments are going to make in the businesses of on TI of 3%.
I think the broad point is we let off from a pay perspective there. We're not driving a fully synergy-based approach. But driving it based on opportunity sets that we see new businesses over. And so that's a primary focus of only expansion. And I think we've articulated this also.
The next question is from the line of [indiscernible] from Marcellus Investment Managers.
I have a question for Mr. [indiscernible]. So the gain less pecan liabilities in the electric vehicle segment to negative explain how to read this number?
I'll just explain that See, actually, whatever the negative, which you are saying is after considering the figures, whatever we have got it there, almost around INR 700 crores, which you have got that is coming as a reliability there and there. That's a major of this year as a or something like crude after putting all the net working capital cetane cash on that, something like which we will go and get you over the it. If you remove the CCPS cash on hand, then the capital employed that business is INR 892 crores.
Right. So you still [indiscernible] I understand this INR 890 crores is in the [indiscernible] and the cash on hand?
[indiscernible] that's negative. Cash on hand is positive INR 747 crores, and approximately INR 64 crores will become [indiscernible]. That's what I understand.
And sir, 1 other question for you on [indiscernible] that we had this operation of intangibles. Much longer that is likely to continue? Do we remain at similar bites this quarter the inching that could happen?
Tactic is related at the time of acquisition because the cost of the assets, whatever it is there the book [indiscernible] next that will be. And we'll be paying based on the market value. But demand between these 2 will become [indiscernible] other in projects. We would [indiscernible] be retained the books and balance will get some of this over the period. It is approximately, it will be bad for next 5 years or so, whatever will happen, yes.
Got it. And my last question was [indiscernible]. Small commercial vehicle will also be start of the same synergies that [indiscernible] or you need to [indiscernible] for that?
Small commercial. [indiscernible]
When you made these, will these be [indiscernible]?
[indiscernible]
I see. All right. And how much would be on it approximately?
Sorry, what is the question? How much?
How much Are we spending on the small commercial basin factory.
Total CapEx would be around INR 320 crores. So far, if we look at the cash out for around INR 320 crores the gross cash outflow. However, you have been pleased to extent of INR 80 crores to INR 90 crores.
Next question is from the line of Chandra Shinde from Kotak Life.
Sir, on EV, I would like to know your road map, how do we see growth, especially on the EV factor and EV 3-wheelers. And then the business side of network or how we are improving there and what kind of growth targets you are targeting over the next 3 to 5 years positive? This quarter, actually, sequentially, there was a decline. So in that perspective also, it's just stock to [indiscernible] we should see relative growth happening on that side. If you can give comment on that.
We won't give long-term guidance, right? So your question on price revenue, we're not giving long-term guidance. I think I've answered some of the points in terms of how a large business. I think it can be a gain or don't get too much of [indiscernible]. And second, we talked about this about [indiscernible]. It has not had lower primary sales often because of the change in the intended sale. That all you can see at sales, I think you [indiscernible].
Yes. I think 2 things. One is currently, you see we are predominantly present in South and slowly started the [indiscernible] in North. By the end of this year, we have a very aggressive dealer expansion plan that will support the volume trends, and we are working around with that. That's #1 for the 3-wheeler business.
And additionally, as I mentioned earlier, some new products also will come into the [indiscernible] that will help us to further increase the volumes as we move along. So that's as far as the 3-wheelers are concerned. The other ones are the products are getting developed. They gradually get launched color. And we'll have to take it on from there in terms of taking. What we are actually concentrating on is really to build a reasonably strategic product that were available to then feed in the market and have a traction and thereby have better customer adoptions. So that's the journey that we're on actually at the moment.
Next question is from the line of Anupam Gupta from IIFL Securities.
A couple of questions. Firstly, on the EV side of it. On the 3 miles, you have a passenger ornan so why not launch cargo offering at the same time and be in that market as well. So what is our strategy there in terms of cost of [indiscernible]. And similarly, on the streamline is, if you can -- you have earlier hated that you'll launch the models in terms of capacitor what sort of time line there versus give some picture there?
Yes, I think on the peers, some of these vehicles that is, will it be under plan and in to get launched during the course of this year. That is the plan, and we have confirmed with the plan currently, a lot of these products are under home loan on and the product reliability testing.
So obviously, we are aware of the fact that we need to increase the range and we will increase the rate. as far as we is concerned, including live and in these segments in all the other. The plans happen, for example, a small prematerial me, the later part on last September, we should see contraction rate. And clearly, for the tractor -- and [indiscernible], the IPL table on the heavy commercial metro side. So with this by the end of this year, it should be in a quite good position in terms of the product placement of the initial care of pipeline.
Okay. Okay. I understand, sir. So the second question is related to the motion and maybe the broader electronics picture as you see it. So motion obviously gives you a small entry there. How fast can we ramp up, especially given the deal which was going around a couple of weeks back. But probably what is the strategy there? Will you focus more on the manufacturing part of it? Will you start off with? What is the strategy we outlined that on the [indiscernible] business?
[indiscernible], thanks for the question. As we make a small entry into this business, we are further starting with opportunities in this area and appropriate time, we'll stare with you. And that's the area focus for us going forward. So now this was more the investment was for our learning perspective, and we are selling this marketplace.
I understand. And sir, 1 question is on the core business. So core business CapEx, you've already this around. But if you can just outline what is the CapEx plan for India, the standalone business for FY '25 and possibly FY '26, if you have that number.
So we'll be investing close to INR 500 crores in this financial year from quarter basis.
Okay, okay. And you said in [indiscernible], it would be INR 320 crores for SUV plant. And anything else, any large CapEx otherwise planned as well?
Basically, in 3-wheelers, there will be INR 22 crores kind of percent. And in fact, we are looking at INR 32 crores kind of a spend. So all put together next year, the CapEx would be around INR 471 crores.
Next question is from the line of Varun Arora from B&K Securities India Private Limited.
I just want to ask on the [indiscernible] and if you can give some users on that front?
Can you come up question again. Your voice is not clearly.
Yes, sir. I'm audible?
Yes.
Sir, I'm asking about the [indiscernible]. So how the things are panning out right now on quarter? Can you take the focus in this part of [indiscernible] to be a positive quarter going forward in FY '25?
So [indiscernible] is going through a now because of the market condition cycle market is not growing. And we are focusing in this business area, which will be a little long-drawn process. And so we are focusing on the e-bikes in this business. And so there's a work in progress. We groom business going forward.
Again, on lens, I guess, the last one on the [indiscernible]. But there was some move going on [indiscernible]. So any development that is going on, on [indiscernible]? So if you can give us on that.
So as you know, we are focused on plan business, which is basically go in the camera module. And if any further opportunity comes, we'll share with you when appropriate.
Okay, sir. Sir, last to clarify here, what timeline. Is that the electrical one launched and the motion the small cities will be launched?
We're looking at the end of -- beginning of Q3, really. That's [indiscernible] both.
For electric or for both?
There is strong commercial rate, which will be launched sometime around July, August. That's the period. And the first variant of the electric tractor will be launched sometime in the period of October, November of this year.
Okay. Sir, the last one. Sir, on the, I guess, the last 1 full year. You Said that by FY '24, you'll have the dealership around 75. So have we achieved that target? Or are we on the base?
You're talking about the 3-wheeler?
3-wheeler electric, yes, correct, sir.
Currently, we are at 63 dealers [indiscernible] 75. At the end of this year, we should be about close to a couple of these numbers as we expand in the North and the East.
Next question is from the [indiscernible] from Sumangal Investment.
Would you repeat the CapEx numbers for clean mobility. And can you break down it for all individual products again first?
Yes. See, if you look at next year, we, the total CapEx of INR 471 crores. If you see the data, 3-wheeler will be INR 78 crores [indiscernible] crores and small commercial voice business been INR 278 crores. And the impact [indiscernible] commercial business, we will [indiscernible]. And there will be some marginal investments in the them and in several R&D person. So all [indiscernible] INR 431 crores.
So what would be the main place capacities for each of the investor? Can you quantify it, sir?
Apically, as we said earlier also, there is, for example, the 3-wheeler plant will have a part [indiscernible] in terms of. All commercial vehicle plant that we are building will have capacity once they're completed, the capacity will be around 50%. Capital has a capacity of numbers [indiscernible]. And PLT once we have a line, we will have capacity this year of around 4,500.
Last one, I didn't understand your last comment, sir.
Again pass on IPL. So in IPL, we are in the process of adding new lines. With that, the capacity this year will only get to 4,700 numbers.
Next question is from the line of Rahil Shah from Con Capital.
So this investment in the core business of INR 500 crores this year you mentioned earlier. So what is that for [indiscernible] and how it would help us?
So it will be helping us building the capabilities in the engineering as well as metal on region, which will be in terms of some mail capacity expansion from money will go for capability.
Okay. And already started spending like the capably started and that's good for the FY '25?
So most of this INR 500 crores will get spent in this financial year. However, some money will be [indiscernible], which would get spent by quarter 1 or quarter 2 next year.
Okay. Okay. And on a consolidated level for the overall for the company, I believe that you've been seeing teams growth and that should continue ahead as well. So margins, what is the outlook there? Which businesses are you focusing on to improve the gross margins, EBITDA margins? Can you say a guidance or any directional outlook?
[indiscernible] you get this question generally, Mr. Galan, we don't like the future guidance and already said that what are you looking for on an unsold basis.
I just want to know on a conservative level, if you can provide, if not an exact company, but a directional outlook, how will the margins improve, which businesses will lead to that? So how well you focus when it comes to improving margins?
Thirdly, I think you understand the 2 largest contributors to control right now are [indiscernible] and specific indications on the margins are. And we continue to maintain that we will maintain at least the set of the margins, which are both north of 13% for both businesses typically.
So that, I do believe, will continue, and those are the 2 largest finders. Now obviously, we treat at a consol level, we will continue to have CIT mobility being the largest net contributor. And I think that will also continue for this year. And so you have to just kind of make a home kind of assumptions on that combination.
Next question is from the line of Jinesh Gandhi from AMBIT Capital.
Question pertains to electric business. So I believe we were looking to start deliveries from fourth quarter. So can you talk about how many trucks that we deliver and how does the order book looks like?
See, currently, we have about 70 trucks on the road so far. And the order book that we have is close to 35, 40, which we are in the process of exiting now in the month of May and June, that's where we are at. And we are working on with a number of customers, large customers in terms of including the concept actually because this will have to put the concept, then we'll have to look at what the savings demonstrate a [indiscernible]. That's the kind of work that's going on menial of building traction in the comp demand because these results are coming very able when you compare it with the current time as [indiscernible]. So that's as far as the PLTs are concerned.
Okay. So would we say that I effectively to probably will get into a material ramp-up by end of this financial year or early next financial year, given that sort of customer approvals and all those things will take at least 6 to 9 months?
Working in progress. Some of this is a new concept. So I mean, the sureties where it takes like timing, the diffusion and that state for people to absorb to change from the idea in terms of adoption. The benefit is very clear. That's the good news. Now you will have to get them in terms of your working around different models to see how the adoption can start happening. And once a few adoptions as we have discussed, definitely, will the others that will come into the future. So that's where [indiscernible]. Be hopeful of pending good volumes, but difficult to say we [indiscernible] to say that, but in terms of building the pipeline.
And lastly, when we talk on the EV business, we have talked about investment of at least INR 3,000 crores into this business. And so far, if I see it, you've invested close to INR 1,900 crores, that's what these for the business are. And of course, of about INR 1,200 crores. So can you believe, balance it as beyond this INR 470 crores, INR 500 crores of this financial year. What it could be going forward? I mean, this plan of INR 3,000 crores investment largely for? Or it depend how the this ramps up going forward?
I think there was more development of vehicle development, R&D will be will be clear. And then obviously, the build-out of the business themselves.
Next question is from the line of [indiscernible] from [indiscernible]. Next question is from the line of Nishit Jalan from Axis Capital.
Lastly on the 3-wheeler electric industry. If you see -- but we understand that a retear of the overall 300million tender uncertainty and incentives are turning down. Do you think that without saying just also in the presentation can pick up in 3 wheelers or it will be slower than what you would have thought you would have thought on? And do we have the P&L that will get in merit there?
To pass to your question, the first one is currently, we don't have a PLI benefit as such in terms of the 3-wheeler business. That's number 1. Number 2 is, see the payments already come down. There are different component branches that are moving down primarily the battery. So that should go a long way in building giving some stability to the prices. That's the second.
The third is the TCO portion, the main benefit to the tune what we have seen is reasonably substantial. And we believe that from the experiences that we've got, there will be good traction. How much could be in what way we'll have to see as things turn out the success really will work around how we handle a combination of factors do protect the range and the performance and the customer service and so many other are the are delayed with the customer experience that would help us to get through with the numbers that were [indiscernible].
Temporarily, yes, there will be a setup [indiscernible] is not completely done. It's got reduced from now. And once the election through [indiscernible] government in or of tools some more time at least taking the EV adoption for their plans that they have made, it starts stabilizing. Along with that, we have to bear in mind that the charging investors, many of these things are in active development. And in this past developing in a large way, then that provides then opportunity for you to down the right side view of that wheel, and therefore, we -- and therefore, a lot of that is advantage one can note, actually.
Just 1 follow-up. After on produced, did you take price is? Or you met absorbed given the reduction in battery prices and other cost ratio that you have talked about?
So we take price hike with industry also. And part of that adoption, we did take for a certain period of time. But we are also in the plan of seeing what way below [indiscernible] we can shape up so that we have that effort beyond the first half of this year.
As there are no further questions, I would now like to hand the conference over to management for closing comments.
[indiscernible] That's it from my end. I get it back to you.
On behalf of IIFL Securities Limited, that concludes conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.
Thank you.