Motherson Sumi Wiring India Limited

Kapil Singh

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Kapil Singh

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G. N. Gauba

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Pankaj Mital

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Aman Agarwal

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Pankaj Mital

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Aman Agarwal

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Pankaj Mital

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Karan Kokane

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Pankaj Mital

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So, did 1Q see some lag effects of RM cost inflation in P&L or given that prices had marginally cooled off in 1Q as indicated in your presentation, there was not much impact of cost impact?

— Jinesh Gandhi

Also, it's very difficult to, it's very few basis points that the difference is there, and it would be just not viable to get into those detailed, because we are not selling the same product all the time.

— G. N. Gauba

Basically, a profitability of a particular project or a particular product is very difficult for us to answer in general because there is no shade specific to it.

— Pankaj Mital

How easy or difficult would it be to make that switch?

— Karan Kokane

Wiring harness is a very difficult thing and probably I do not know whom you are referring to, but you can see a lot of bikes that catch fire and two-wheeler and all that.

— Vivek Chaand Sehgal

It's a very difficult question to answer and we need a great computer to help us.

— Vivek Chaand Sehgal

See, I think it would be very difficult to guide on each of the quarterly basis on this, as we have always focused on improving the operating performance and the return on capital employed.

— G. N. Gauba

And it's very difficult to correlate with all these particular variables.

— Vivek Chaand Sehgal

It would be difficult for me to give that number off hand, but surely it is in line with the shareholder's approval and consistent with the agreement, which is there, and which was already shared with all the shareholders.

— G. N. Gauba

So, would it be fair to say that Motherson Sumi Wiring will find it difficult to supply to.

— Karan Kokane

My question was would it be difficult for MSWIL to enter into Hyundai and KIA, that was the question.

— Karan Kokane

Q

I had two questions, firstly, on this dedicated line we have set up in Chennai for high voltage harnesses, I wanted to understand that to start off with which category of vehicles that is passenger vehicles, commercial, or two-wheeler are we starting off with? And also, if you have any calculations here in terms of content for each of these three categories, how much increase is there? And also, some color on technology aspect, like what are the special requirements which are there for high voltage harnesses.

Pankaj Mital

Thank you very much for your question. This line which we have set up in Chennai as we have mentioned is for both passenger cars as well as two-wheelers and also commercial vehicles which includes basically the buses as well. So, it's for all three of them which have been initiated during this quarter. You have also asked that what the specialties of handling these are, so basically high voltage cables require very special equipment for processing them, there are multiple operations which are there, so different set of machine requirements, different set of testing requirements and complete te

Q

First question is on the RM cost side. So, did 1Q see some lag effects of RM cost inflation in P&L or given that prices had marginally cooled off in 1Q as indicated in your presentation, there was not much impact of cost impact?

G. N. Gauba

You have seen the LME copper price in dollar terms as well as the US dollar. So, the impact is not very significant as we can see compared to the previous quarter. But Japanese Yen has weakened up, so there could be some plus minus on that, but as things get stabilized this gets evened out. Okay. So, in that context how do we see this Q-o-Q increase in RM cost as a percentage of sales which is close to 110 basis points, anything one-off there or anything getting monthly over here? I think Jinesh, we are not selling the same product all the quarters, so there are some marginal impacts of the pr

Q

My question was basically if I see our gross margins, they are far higher than some of our peers, like they are around 500-600 basis points higher compared to our peers. So, what are the drivers which are leading to such higher margins? Is it the economics of scale we get due to our large scale of our parent or some other reason sir?

Pankaj Mital

You know our always the drive has been to continuously improve ourselves. So, we have one very simple drive in the whole group enunciated by Mr. Sehgal is to do BY BY and that’s what we all aim for. So, we really do not look at the peers. We have continuously strived to improve our performance all the time. Our peers are very powerful people, so we just follow ourselves, very simply. Understood, sir. And sir like going forward, while it’s too early to say, but on the EV side do we expect the margins could be more or less similar to our low voltage kind of business or would it be different from

Q

First, I just had one housekeeping question. So, last time in the presentation you had provided breakup of revenues by segments. So, would it be possible for you to provide that breakup?

Vivek Chaand Sehgal

I think you are confusing with the SAML, isn’t it? Last time we had given a breakdown pass car, commercial vehicle, and two-wheeler. That's coming from the analyst, but I think these are the numbers which are to be seen on a yearly basis on a quarter-to-quarter these may not vary significantly, and sometimes you have a block holiday, so they don't indicate any trend. So, it is better to look at them on a full-year basis rather than on a quarter-on-quarter basis. Okay, understood. Then, a second question was more on the technical side of things. I just wanted to understand, there are a few wiri

Q

Just wanted to understand from the business side, just the difference between say a high voltage harness and a low voltage harness. Basically, just want to understand which part of the business requires the high voltage harness and which can do with the low voltage harness as well? And over that, if you can provide out of the current capacity what percentage of the capacity currently produces the high voltage harness?

Vivek Chaand Sehgal

A high voltage harness is basically for electric vehicles; low voltage are normal vehicles that you are buying on that thing today. You have to be that much more careful, but Pankaj can you throw some light for him? So basically, in even an electric car the internal working of all the electrical functions of the vehicle, like lamps and other functions, everything is still working on the low voltage side. The charging and then the inverter and the motor which is driving the vehicle requires the high voltage stuff. In terms of our capacity utilization, as you know that majorly is still the busin

Q

Just want to know, do we have any order book for HVN or from which client in high voltage?

Vivek Chaand Sehgal

Sorry? Do you have any order book for high voltage wiring? Yes, we have set up a plant. We do have the orders. May I know the quantum of the order value or like on for which client or which segment? Do we give that granular, Gauba? Normally we don't disclose because we have to check with the customers. We don't disclose their names based on confidentiality. But in terms of segments, as we mentioned that all three segments, two wheelers, passenger cars as well as commercial vehicles are covered. Order value would be? We are not giving any specific order values as such. These have not been discl

Q

My question was on your employee cost. Sequentially we have seen almost 6.5% increase in your employee cost. So, going forward what should one really look at in terms of the quarterly run rate for your employee cost. And is it possible for you to quantify how much of the employee cost is fixed in nature and how much will it be a variable number over here?

G. N. Gauba

As we have said in the presentation in the last quarter we are establishing and doing the trial runs for the new launches which are to come both in Bengaluru as well as in Chennai. So, the manpower is to be trained. So, there are people who have been employed and in the last quarter there is also inventory built up because of there is a block holidays and less production than anticipated. You must have also seen OEMs commentary wherein they lost some of the volumes because of last minute changes. So, manpower cost is higher because of the new facilities which are being set up. Okay. Then let m

Q

I just wanted to check what was the lease payment that was made during the quarter?

Vivek Chaand Sehgal

Sorry, I didn't get that. Lease payment which Motherson Sumi Wiring makes to SAMIL, the quantum during this quarter? It would be difficult for me to give that number off hand, but surely it is in line with the shareholder's approval and consistent with the agreement, which is there, and which was already shared with all the shareholders. The second question, we already have a JV with Kyungshin for making wiring harnesses for Hyundai. So, would it be fair to say that Motherson Sumi Wiring will find it difficult to supply to. Listen, listen, that's not a part of this company. So, we can't commen

Q

Thank you. I think the last question was rather vague. I didn't understand why this gentleman has not understood why the bifurcation was done. And we did have a 99.4% approval of the shareholders, the minority. So, for me the situation was very clear. All joint ventures they wanted to do only business which is only focusing India and this gentleman is trying to understand why that was done. Well, there was a purpose by which we did the bifurcation, and we did that. Anyway, since he has understood why we have done it, I think the problem stands resolved. The key thing for this thing was that Ap

Management