Samvardhana Motherson International Ltd Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : And nice to see the ROCE number on a reported basis also starting to improve. My first question is on the wiring harness business. Very strong improvement on EBITDA as well. So first a clarification is a large part of this driven by PKC? And the reason why I ask this is because that business also has a lot of volatility because of the exposure to China. So how should we think about this going forward?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Okay, okay. And just on the impact of the risk fee, you have mentioned as to how things were looking in 3Q, but I'm getting -- they have become more problematic as this quarter has gone by. So just for our understanding, in case freight rates were to move up massively because of this, how does the current arrangement with OEMs work in terms of whether it is borne by you? Or is it a pass-through? And are there discussions because you're already having a lot of discussions with the OEMs on a lot of cost items. Is this something which is an extra thing? Or is there a pass-through here already incorporated?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Okay. So just on that last point, are we seeing a significant...

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : So following up on the same SAS (inaudible) cosidering that it's a large piece of your top line, you have achieved in the first quarter itself 11 % margin looks like. Is there any one-off you've booked here? And what's the run rate for margin expansion because if your margin accretive business now versus when you acquired it?