On slowdown in auto sector: In the last quarter, there were more headwinds -- be it the NBFC issues or the high cost of owning a car via high insurance or few other regulatory norms ticking in. The demand has been a bit muted and we expect that to continue in a couple of more quarters until the middle of this year. Post elections, we are confident that demand should pick up as Euro VI norms are going to tick in and prior to that we do expect some buying because once the Euro VI norms kick in, there will definitely be a price impact. Earlier also, in transition from Euro III to Euro IV, we saw a similar kind of pre-buying happening prior to the change in norms when the cost really ticks up.

While there has been a pressure in the industry overall, we have not been insulated. If my customer is under pressure, definitely that customer pressure is going to come to us. We have a multi-pronged strategy. How do we handle that pressure? Obviously, we continuously work with our OEMs customers. How do we bring down the cost of production and upgrade our products? How do we give newer products and also how do we increase the kit value of our existing offering? That definitely adds to the top line.

In addition to that, addition of newer products will help in terms of getting increased kit value. That again adds to our top line and to the bottom line. Third, which is a sort of insulation for us is our sort of mix. A little while back, between two-wheelers and four-wheeler segment, our split is broadly equal -- 47% to 53%. That also helps in terms of insulating any sort of sharp moves in a particular segment as we have seen in Q3. The four-wheeler segment did not do as good as two-wheelers. Since we have been present in both the segments that also helped a bit. We are confident that in future, we will be able to outperform. We are very clear that we will grow 1.5x to 2x of OEM industry growth rate, based on increased kit value, newer offerings and product upgrades.

On pressure in next 2 quarters: There definitely is a pressure. Demand is not as high as we expected it to be, but it is there. The market is not in a deep negative trajectory. But the double digit growth we were expecting has come down to a single digit or maybe low single digit in some of the sectors. Having said that, our strategy is not only to cater to our existing customers, we work continuously to increase the size of the cake. On top of it, we are also adding newer products that straightaway adds to the top line like in the last quarter, we announced addition of two-wheeler plant alloy wheel in Maharashtra. We are putting up a new sensor plant. We are putting up a new controller plant. All these things together adds straight to the top line and that helps insulate us from that kind of pressure on the existing business as well.

On the segment impacted the most: In the last quarter, the biggest pressure would have been on the passenger vehicle segment, while the two-wheelers and three-wheelers did a little better. Coming in this year, the demand has improved. In fact, we are expecting Q4 to be better in terms of revenue and profitability marginally, compared to Q3. Things are looking a little better but we are not expecting a significant bump-up as we do not want to second guess our customers. There has been a clear message that in the first and the second quarter of the fiscal, we are not expecting a significant bump up, but in the middle of this year, we expect things to improve from here.

On impact of new emission norms: The producers or OEMs have to clean up their inventories. Once we go into the Euro VI norms, the cost of vehicle itself will go up by 10-15% depending on model to model. While petrol may have less impact, diesel might have a little more impact. The Indian market is price sensitive. While I cannot comment on what sort of discounts will be offered to liquidate the inventory, we are very positive that being that due to price sensitivity, there may be a pre-buying which may help liquidate the stocks of all the OEMs. Hence, we are expecting it to be much better in the second half.