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00:00Mr. Madan, good morning. Thanks for taking the time out.
00:03Your quick assessment on how things are panning out when it comes to one, demand,
00:08and secondly, pricing environment at the moment.
00:14If you talk about demand perspective, I think if you look at last few quarters,
00:18the numbers this quarter have been for the industry almost flat,
00:22which is actually a favorable sign compared to the sequential quarter Q4 last year,
00:27which was almost 18-19% de-growth for the industry.
00:29So compared to that, it looks like the rural market is recovering now.
00:32So that's a positive sign. And July also has been marginally positive for the industry.
00:37So we expect, I think the overall, given the positive factors in the market today,
00:42on the rural side, the above-average rainfall and government push on the rural market,
00:48so I think all these factors should lead to a positive momentum, you know,
00:52in the second half of this year. The industry should show good double-digit growth.
00:56Then revenues were, like you said, were flat. They were down, in fact, 1% YOY.
01:02You believe that there has been an uptick and you are seeing some green shoots.
01:07Was it fair for us to assume that you'll go back to an increase on top line
01:12and probably see healthy volume growth and margins as well, while you've reported flat margins?
01:19It is lower than what we saw in the last same quarter last year.
01:23So again, an uptick in margins can be expected going ahead or would you maintain at these levels?
01:28Yeah, so one main reason for margin drop obviously was the volume,
01:34because the volume for the quarter was slightly down for us, 32% down compared to last year.
01:39So that is one of the key reasons, you know, why there was a drop in the margin.
01:43And also there was a production cut taken to control the inventory within the company.
01:47But that will get made up now, because we are expecting the season quarter will be very strong,
01:52especially September to November months, which is a key season period for the industry.
01:56So the production will get ramped up now in Q2.
01:59So we expect adding the kind of positive factors on the ground.
02:02And in the July, I've seen some positive momentum for the industry.
02:05So we expect the recovery should continue from this point onwards.
02:08And we should be able to deliver revenue growth, which will be positive for the year, unlike in the first quarter.
02:16All right, so a view on the railway order book as well, which has seen its fair share of volatility.
02:24How are you looking at, well, you know, the next few quarters here?
02:30See, in the first quarter, obviously the railway and both construction equipment divisions were soft
02:36because it's the election period, so we're not seeing any fresh tendering happening on the railway side.
02:41But in the second quarter onwards, now the order picking will start.
02:44So right now, the order book is at almost 880 crores, which will get executed over the next five to seven months.
02:50But otherwise, if you compare with the sequential quarter in the last two to three quarters,
02:54the volumes in the railway were lower.
02:56So this quarter actually has seen improvement, you know, compared to the sequential quarter.
03:00So year-on-year, it looks slightly lower.
03:02But planning is bullish on this segment, and we expect the business will deliver double-digit growth.
03:08So this year also will be no exception.
03:14Well, what's done for you, Mr. Madan?
03:15What is the contribution of exports, and what is the outlook on the export front for the rest of F525?
03:32Mr. Madan, I cannot hear you. Your audio is a little hazy.
03:36Can you please repeat the answer?
03:38How has exports been in this quarter, and what's the outlook of exports for the rest of the year?
03:42Are you expecting an uptick on that front too?
03:48I can hear you now.
04:05So the demand has been subdued, and there's a lot of integration which has happened,
04:08both with the Kubota Group in Europe as well as for the external channel, which is the deal.
04:14So as of now, I think that segment will remain short for maybe a quarter or so,
04:20but we expect the demand recovery should happen now in the second half of this year.
04:24So overall, if you look at exports for this year, we expect to see marginal growth over last year.
04:29But if we talk about the long-term trend, we expect the momentum will be there,
04:33because there's a lot of sourcing opportunity which we have to supply within the Kubota Group.
04:38We shall continue to have certain products under development for the export market which are ongoing,
04:43and that will also help in pushing the volume further on exports.