ABB India Limited — Q2 FY26

ABB India Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=0kwhHrB3S2s Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to ABB India Limited Q3 July to September quarter C by 2025 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:26 26 seconds the conference is being recorded and any unauthorized recording of this call is strictly prohibited. The recording will be made available on the company's and 0:33 33 seconds SEBI's website subsequently. I now hand the conference over to Mr. TK Sweder, chief financial officer of ABB India Limited. Thank you and over to you Mr. 0:43 43 seconds TK Sweder. 0:46 46 seconds Good morning. Very good morning. Thank you very much um for uh sort of conducting the first uh few words about it. So ladies and gentlemen, welcome and 0:54 54 seconds a very good morning once again. Welcome to the Q3 2025 uh investor call of ABB India Limited. Uh so on the call along 1:03 1 minute, 3 seconds with me are Sanjiv Sharma the country managing director of AB India. I have Kiran Dut uh who leads electrification 1:11 1 minute, 11 seconds business in India and also Sanjiv Aurora who leads the motion business and Subradakar for the robotics. uh 1:19 1 minute, 19 seconds unfortunately Balaji who leads the PD process automation division um is not able to join because of his customer 1:26 1 minute, 26 seconds commitments. uh so so with this uh I hand over the call to Sanjie to take us through the initial um matter on the 1:34 1 minute, 34 seconds market slides of uh ABP. So over to you Sanjiv. 1:41 1 minute, 41 seconds Thank you Sidar and good morning to all of you. Um happy to welcome all of you to this u our quarter 3 performance u uh session. 1:55 1 minute, 55 seconds Uh so I'll give you some business highlights followed by financial highlights by PK Sida and then we'll 2:02 2 minutes, 2 seconds have a question and answer session. Next slide please. 2:09 2 minutes, 9 seconds So if you if you see the uh business highlights um so we had a 13% 2:17 2 minutes, 17 seconds base order growth uh and 14% revenue growth but if you compare last year we around in this 2:25 2 minutes, 25 seconds quarter we had uh some large contracts large orders uh so if you look into the overall order 2:33 2 minutes, 33 seconds growth that looks minus 3% but the base order growth was quite healthy. 2:39 2 minutes, 39 seconds profitability is 16% up quarter on quarter and it is minus 7% year on year 2:47 2 minutes, 47 seconds profit after tax and there are mixed issues I think which we'll take up in the financial presentation and we'll 2:55 2 minutes, 55 seconds give you more details there and we continue to maintain a strong cash position nearly 5,000 crores 3:05 3 minutes, 5 seconds we continue to expand our portfolio and bring more premium premium products to the market because market is demanding 3:12 3 minutes, 12 seconds it and we have introduced IE5 ultra premium ahision CRV motors and this is 3:19 3 minutes, 19 seconds proven induction motor technology and free from rare earth materials. 3:25 3 minutes, 25 seconds We also successfully commissioned some ABB ability scatter advantage solution for think gas private limited enabling 3:33 3 minutes, 33 seconds end to end automation and digitalization for compressed gas um distribution network 3:40 3 minutes, 40 seconds sustainability is on target and I'll give you more data and all our motion for motion factories are certified as zero waste to landfill as on date. 3:53 3 minutes, 53 seconds Next slide please. 3:58 3 minutes, 58 seconds So we uh saw a good revenue growth of plus 14% and as said net of large orders 4:05 4 minutes, 5 seconds we had minus 3% orders growth plus 7 13% in the base orders and our order backlog 4:13 4 minutes, 13 seconds stands at 9,895 crores gives us a good visibility of revenues uh in the coming quarters. 4:23 4 minutes, 23 seconds renewables, buildings and infrastructure, uh discrete automation, process industries. Uh I think these are the 4:30 4 minutes, 30 seconds themes which are built around the uh the the opportunities we saw in the marketplace. 4:38 4 minutes, 38 seconds Next slide please. 4:42 4 minutes, 42 seconds So you can see that the diversity of our portfolio plays in diversity of applications uh right from wind turbine 4:49 4 minutes, 49 seconds converters to gas chromograph uh gas chromodographs oxygen analyzer for a leading integrated energy player 4:58 4 minutes, 58 seconds electrical instrumentation for global FNV player robotic solution for EV mobility insulated case circuit breakers 5:08 5 minutes, 8 seconds for power distribution equipment company process automation and drive solution for matter. So we can see our 18 businesses playing this 23 market 5:16 5 minutes, 16 seconds segment always keeps the robustness of the business model at the company level. Next please. 5:27 5 minutes, 27 seconds The key uh element of our expansion of our business is to continue to expand 5:34 5 minutes, 34 seconds into new market segments also new geographies and also keep introducing and reintroducing our technologies to 5:42 5 minutes, 42 seconds our partners and customers. And our team does customer connect programs across the uh width and the depth of country in 5:52 5 minutes, 52 seconds the market segments as well as geographies and customer large and the medium and the small size customer base and that's something that keeps us uh 6:01 6 minutes, 1 second growth initiatives and the growth impulse that we need in inside the company and that has been the drum beat for last many years and our team continue to have that drum beat going. 6:13 6 minutes, 13 seconds Next please. Our focus on diverse business uh business 6:21 6 minutes, 21 seconds market segments uh which is spread in 23 market segment. We continue to see high engagement and high response in data 6:29 6 minutes, 29 seconds center electronics and renew renewable and our portfolio is uh you know resonating well in these and these are 6:37 6 minutes, 37 seconds the long-term gains and uh I think we we see a much more capacity buildup coming 6:44 6 minutes, 44 seconds in these areas in near future and the moderate uh growth is basically the segments in the middle and the low 6:52 6 minutes, 52 seconds growth segment that we see at this point of time which continued to rotate over a period of time are listed on the uh right uh uh right column. 7:04 7 minutes, 4 seconds Next please. 7:08 7 minutes, 8 seconds So theme for the quarter is giving an idea about textiles a deep dive. Uh India is the world's second largest 7:17 7 minutes, 17 seconds producer of textile garments with 4.6% share of global trade. uh it is expected 7:24 7 minutes, 24 seconds that it will grow at 8.6% 6% CAGGR and the comparative advantage of India 7:32 7 minutes, 32 seconds into this sector is availability of raw material and also skilled manpower at comparative cost which is a driving 7:39 7 minutes, 39 seconds element for this business to happen and government is paying attention and has some good initiatives in this area 7:48 7 minutes, 48 seconds including the PLI scheme and the GST rationalization to both boost domestic demand and and also there are key trends 7:57 7 minutes, 57 seconds uh which are right now affecting I think there is a bit of a bit of a challenge for this sector with the US tariff 8:05 8 minutes, 5 seconds impact but uh at the same time India is diversifying itself and creating more partner countries uh to mitigate those 8:14 8 minutes, 14 seconds tariff impact infrastructure is being modernized and also more sustainable manufacturing practices are being 8:20 8 minutes, 20 seconds brought in this uh area and ABB offers motors drives PLC's engineering tools, services and support and host of other 8:29 8 minutes, 29 seconds solution in this particular market segment. So we always make sure that you know we have good proposition for this 8:38 8 minutes, 38 seconds growing and uh important segment in the country. Next please. 8:45 8 minutes, 45 seconds On the sustainability in practice we are on track. uh you know our target for reducing the GSG emission was 87%, we 8:54 8 minutes, 54 seconds have achieved it at 87.05 zero waste to landfill units. We had target that in 2025 four units will be 9:03 9 minutes, 3 seconds uh zero waste to landfill. We have achieved four. Uh so great job done by our team and locations and also we focus 9:11 9 minutes, 11 seconds on that our units will turn water positive unit that is we put more water in the ground than we take it out and our target is four units. We have 9:20 9 minutes, 20 seconds already achieved three and one of one unit remaining is under certification at the moment. Most likely by end of the 9:28 9 minutes, 28 seconds year we will achieve the target. and water recyclability is at uh 44% and our 9:35 9 minutes, 35 seconds target is 50% for this year. Next please. 9:41 9 minutes, 41 seconds on the CSR and performance with purpose. 9:45 9 minutes, 45 seconds uh we continue to focus on education and skilling, diversity and inclusion, communities and environment and for last 9:53 9 minutes, 53 seconds 10 years we always spend 100% of CSR allocation and now having done run these programs for a period of time we can 10:01 10 minutes, 1 second really see visible impact wherever we have engaged and we do it in a very institutionalized way and our teams can 10:10 10 minutes, 10 seconds see the impact on the communities and the targeted uh uh targeted programs that we have taken. Next please. 10:20 10 minutes, 20 seconds For 2025 outlook, I think tailwinds are private consumption, government capital expenditure and moderating inflation. 10:28 10 minutes, 28 seconds But headwinds as we know trade uncertaintity is playing out around India. Uh we have prolonged geopolitical 10:37 10 minutes, 37 seconds tensions which haven't found a way to subside. But I think we'll have to see that through. And of course uh there's a 10:45 10 minutes, 45 seconds volatility in the global financial markets and there's a lot of uh fluctuation on the foreign. So these are the things we need to navigate both on 10:53 10 minutes, 53 seconds the opportunity side and the challenges side as we finish 2025 in one and a half months and then also uh enter 2026. 11:04 11 minutes, 4 seconds Next slide please. 11:06 11 minutes, 6 seconds So here I hand it back to PK sizer to take you through financial highlights. Over to you sir. 11:14 11 minutes, 14 seconds Thank you. Thank you Sanjie. So I think uh we now get into the most meaty part of it which is the um numbers where I 11:21 11 minutes, 21 seconds think people are waiting for more uh information sharing. So I think if you look at these set of numbers which is 11:29 11 minutes, 29 seconds there on the slide. So the orders base orders which we call are have a manner execution cycle which is shorter 11:37 11 minutes, 37 seconds compared to the larger orders uh which more represent the project orders or the long-term system orders. So we have 11:44 11 minutes, 44 seconds grown for the quarter a 13%age growth um uh which is as per what we understand with the market dynamics which is there 11:52 11 minutes, 52 seconds this is a pretty healthy stuff uh at least because it gives us uh the visibility of revenue conversions going forward just not depending on the large 12:01 12 minutes, 1 second orders which are there in the backlogs at this point of time. So and this is spread across all the business divisions in the respective business segments. So 12:10 12 minutes, 10 seconds uh it's not just in one division which has uh really helped us to do it but it is across. So it's an um I would say a a 12:18 12 minutes, 18 seconds good um a recovery which has happened from the previous quarter where we could see certain offshoots which are coming 12:25 12 minutes, 25 seconds up. So that's about uh the orders and uh um when we come to the backlogs 9,900 uh 12:32 12 minutes, 32 seconds crores of backlog roughly on the on the books uh and this would be definitely be executed over the next quarters. We do 12:38 12 minutes, 38 seconds have um uh a plan and there are no slowmoving or long-term orders and slowmoving or non-moving orders. Uh 12:46 12 minutes, 46 seconds everything are lined up for execution uh in the few quarters to come and uh and also this has almost 30%age of it as a 12:56 12 minutes, 56 seconds composition of large orders. So it is basically 70%age which are the smaller orders which will get executed uh on a 13:02 13 minutes, 2 seconds month-to-month basis. um revenues but with because uh we have a backlog and we said that we would be definitely executing it. So it has uh generated the 13:12 13 minutes, 12 seconds 14%age growth um and profitability we are at 15 15 16.4 4 on PBT compared to 13:22 13 minutes, 22 seconds sequentially 14.9 but compared to the previous year of 20.5 we will dwell upon this as we go forward um and that's more 13:30 13 minutes, 30 seconds due to the material cost impact we have a mix issue um of revenue which we are having because we are definitely pushing 13:37 13 minutes, 37 seconds the new technologies around and also forex which Sanjie alluded to in the in the in his section and and also last but 13:46 13 minutes, 46 seconds not the least the uh um uh the very recent impact of uh QCO or the BS certification which is needed um for the 13:55 13 minutes, 55 seconds locally manufactured products to be even uh used in the production. Right? So this is uh basically the uh uh overview 14:03 14 minutes, 3 seconds of how we are for the quarter and the cash balance 4,500 crores. Of course we could have done slightly better over 14:10 14 minutes, 10 seconds here. We have stocked up uh strategically inventories uh to make sure that we are not bound um by any QCO 14:18 14 minutes, 18 seconds obligations which could come up a surprise or an uh I mean delay in certification. So we need to serve our customers because we have committed 14:27 14 minutes, 27 seconds delivery lines for the backlogs and we have done a conscious strategic stocking up over there uh on the inventories which um I'm pretty much sure will get liquidated as we go into into 2026. 14:39 14 minutes, 39 seconds Yeah. the next slide. 14:42 14 minutes, 42 seconds So, uh this gives a bit of a more granular view of the P&L. Uh if you look at it of revenues, we did discuss um and 14:51 14 minutes, 51 seconds then we um we come to material cost. So, material cost is something which I know uh that people are looking at as to what could be the increase in material cost 14:59 14 minutes, 59 seconds and I think it's better that we go uh business area by business area so that you have more a bit of more granularity on it. Uh so overall um uh if you see 15:08 15 minutes, 8 seconds it's an issue of uh mix of revenues um uh the portfolio uh changes which has 15:16 15 minutes, 16 seconds happened and also on the competition uh which has intensified um in quite a few uh segments and also the fact that we 15:25 15 minutes, 25 seconds had an ability to command a premium in the postcoid era which is now sort of dried up. So that's something which is not now there and also another market 15:35 15 minutes, 35 seconds dynamics which are slowing down um the decision on quite a few orders and therefore opportunities uh are restricted in the market to play with 15:43 15 minutes, 43 seconds and uh last but not the least we have the um QCO impact as well. So that's how it is. But other expenses if you look 15:51 15 minutes, 51 seconds there are more or less uh steady. No one no one no oneoffs as what I would see you know of the um expenses if you have 15:59 15 minutes, 59 seconds if you see that and uh yeah unlike the last quarter we did not have any um forex big forex impact in this 16:06 16 minutes, 6 seconds particular quarter. Uh but I think the rest of it is basically mathematical calculation. So I think uh so this is 16:13 16 minutes, 13 seconds how um we have an overall uh P&L structure for this. So if you go to the next slide. 16:21 16 minutes, 21 seconds So electrification I think uh on the electrification um uh in 17 in the uh Q3 16:28 16 minutes, 28 seconds 2024 we had almost um 560 crores of a large order right which is not there in this particular quarter. uh so that 16:37 16 minutes, 37 seconds means against uh 1,700,800 if we round it off um uh if you take off 600 so then we're talking of 1,200 cr so 16:46 16 minutes, 46 seconds I think uh the alarm the base orders have still grown in um in year uh electrification so that's that's 16:53 16 minutes, 53 seconds something uh which is important to note and we have been consistent in that particular effort so um the revenues I think it is across all divisions there 17:01 17 minutes, 1 second have been no division which has which is some finding it difficult to uh execute the backlog and the revenues um uh the 17:09 17 minutes, 9 seconds backlogs definitely has is down 2%age it's more related to the pace of execution is faster than the pace of intake of orders and that's therefore 17:18 17 minutes, 18 seconds it's a reflection of that but I'm sure that as the market picks up and we are able to be successful um we should be able to also line up the backlogs going 17:26 17 minutes, 26 seconds forward so now comes the u um profitability element so I think uh there were a bit of a questions as to what is the impact which is playing out 17:34 17 minutes, 34 seconds in electrification so just to uh give you a bit of a picture on it. I think both MO and uh EL have similar issues. 17:43 17 minutes, 43 seconds Okay. So they have uh issue of uh mix uh which is um which is basically what we 17:51 17 minutes, 51 seconds do which is um which is a reflection of both the market segments where we play out and also the portfolio what we have 18:00 18 minutes used uh to deliver the solutions to the customers. Right? I think uh that's how we see the mix. So that means if an high 18:09 18 minutes, 9 seconds profitability segment is absent in this particular or lower in this quarter uh but we have gone because I I take you 18:16 18 minutes, 16 seconds back to those slides where uh um uh we used to say what are the high high growth markets the moderate and the low growth market and naturally the 18:25 18 minutes, 25 seconds competition also plays out accordingly uh in these particular segments and that has a reflection on the mix uh topic as 18:32 18 minutes, 32 seconds what we see. So the mix is one thing and then uh um of course the competition as what we see in the limited opportunities 18:39 18 minutes, 39 seconds what we have at this point of time which is also got an impact on how the pricing is done and and 18:46 18 minutes, 46 seconds Q followed by uh the QCO and the forex impact. So now just to call out some of to to draw a bit of a color. uh what's 18:55 18 minutes, 55 seconds the mix mix impact in um um electrification probably 1 percentage could be the uh mix impact which we have because that's 19:04 19 minutes, 4 seconds the um uh portfolio changes what has happened that's the market segment changes what has uh um happened where we have delivered these particular revenues 19:12 19 minutes, 12 seconds and competition clearly I think um as I said in the past we had an clear advantage of uh um one to one and a half 19:20 19 minutes, 20 seconds percentage in which we used to claim a price which is no more which is not there at this point of time and QCO impact it it depends on business to 19:29 19 minutes, 29 seconds business ranging between 75 to8 uh sort of a percentage that's what we have and forex 6%age so roughly this 19:39 19 minutes, 39 seconds works out um to a gap of 3% on an average which used to be the uh um uh 19:45 19 minutes, 45 seconds trend earlier uh in E comp in the last three quarters as what we have seen right so if you look at it a gap of this 19:54 19 minutes, 54 seconds uh is contributing to that right and so that's that's how I see um uh e thing but I think all these are they something 20:03 20 minutes, 3 seconds um not normal according to me we have gone through these particular cycles cycles at this point of time are softening as what uh we see and 20:12 20 minutes, 12 seconds therefore uh we play out we continue our investments as what is needed for the future um we see that uh the opportunities are there they are 20:20 20 minutes, 20 seconds something which are uh not drying up at this point of time but of course the decisions are delayed and also we make 20:27 20 minutes, 27 seconds sure that we pick those opportunities which are uh relevant for our portfolio 20:33 20 minutes, 33 seconds and uh and good to play good to participate in so that's basically an approach what ABB has and that has been 20:41 20 minutes, 41 seconds consistent even in the past if we go to the next uh motion right so u motion again I 20:51 20 minutes, 51 seconds think um we had an a good order of and good order intake in this uh particular quarter. Of course, we had an large 20:59 20 minutes, 59 seconds order which played out in motion uh to the extent of uh 150 crores uh which was not there. I mean and to the extent of 21:07 21 minutes, 7 seconds 900 crores was what was there 990 crores which was there in the last quarter the similar year. So again a good base order 21:13 21 minutes, 13 seconds growth. So um motors have having good base order growth is actually an uh uh 21:19 21 minutes, 19 seconds bit of an um what you call a refreshing sign because that's the uh early trends which pick up to see that how the market 21:27 21 minutes, 27 seconds is behaving and so that's uh how we do it. So mo execution 9 percentage as you know as I was alluding to the lot of 21:35 21 minutes, 35 seconds system orders and large orders which are also sitting um as a part of the motion backlogs and that you that's why you could see at 4,100 the backlogs which 21:44 21 minutes, 44 seconds are there and they have probably an higher content of large system orders and long-term orders which will get executed over a period of 12 to 18 21:51 21 minutes, 51 seconds months. That's what we see. So now coming to profitability I did we did talk about it in u in the um uh 21:59 21 minutes, 59 seconds electrification. So here I think the mix is again one to one and a half percentage plays out and then we have the market dynamics of and the 22:07 22 minutes, 7 seconds competition uh is more intense uh in terms of degree over here and that's how um we see because um motion has a larger 22:17 22 minutes, 17 seconds play in um core sectors as well as the the middle sector as what we used to see. So therefore and that's where the 22:25 22 minutes, 25 seconds competition is intense and then they have an higher impact in terms of uh um competition dynamics and they also have 22:32 22 minutes, 32 seconds a bit of a QCO impact and of course forex impact because they have a huge content of forex which is there. So overall I think uh um uh four and a half 22:41 22 minutes, 41 seconds to 5 percentage variation in um motion compared to the previous profitability levels and what is now uh can be 22:49 22 minutes, 49 seconds attributed to QCO on forex impact to extent of one one and a half percentage and then you have the market dynamics and the mix playing out on the rest um 22:58 22 minutes, 58 seconds which is more marketled uh topics as what we see if we go to the next. 23:04 23 minutes, 4 seconds So now the question could be so is this QCO impact going to remain for some time? Answer to that is yes. Uh because 23:11 23 minutes, 11 seconds the dates are definitely changing. So uh we are preparing ourselves to make sure that we um get our slots get our 23:18 23 minutes, 18 seconds preparation done for navigating this particular challenge and every business have an action plan and I'm sure that'll that will also I mean it will take some 23:27 23 minutes, 27 seconds time probably another uh three to one two to three quarters minimum uh which would um take this particular uh issue 23:35 23 minutes, 35 seconds to be resolved or for at least for ABB as what we see. So what is this really a QCO impact? I think uh um uh this was a 23:43 23 minutes, 43 seconds question which had come to us. I think we normally been using our uh locally designed products to serve the customers 23:51 23 minutes, 51 seconds but as they have to go for approvals and they have to um uh wait for the u process to be completed. So naturally, 23:59 23 minutes, 59 seconds so then we need to definitely use imported equipment um uh to serve our customers uh and therefore that's 24:06 24 minutes, 6 seconds causing a uh a cost which is higher when you import and definitely a forex volatality which is impacted to the uh imported uh denominated currencies. 24:16 24 minutes, 16 seconds Right? So these are uh these are some a couple of the things. So can we uh come out of this faster? Yeah, our efforts are there. So we need to get um make 24:25 24 minutes, 25 seconds sure that we are able to uh work on this consistently in a focused manner. 24:31 24 minutes, 31 seconds So uh so next coming to PM PA I think PA was uh uh pretty interesting. So they are cyclical in nature uh because they 24:40 24 minutes, 40 seconds operate more on the uh core sectors of metals, mining and oil and gas and a little bit on pharma side of it. So uh 24:47 24 minutes, 47 seconds they see that the um order intake stagnant because the decisions uh especially on larger expansions are getting delayed and more they are more 24:55 24 minutes, 55 seconds um uh relying on uh um retrofits and sort of smaller um uh size orders and 25:03 25 minutes, 3 seconds they don't have any large orders at this point of time. Um and that's that's basically why uh their revenue levels are also sort of stagnant at 600 crores 25:12 25 minutes, 12 seconds and they have a backlog which is uh falling down because the revenues coming out of these particular exhausting the backlogs uh profitability is pretty much 25:21 25 minutes, 21 seconds consistent do they don't have a fusio impact they are systems uh businesses so they have um um they have multiple 25:29 25 minutes, 29 seconds vendors through whom they could source the material so they relatively are less impacted by the QCO impact uh But for the forex impact they are because they 25:37 25 minutes, 37 seconds are long-term contracts they have forex variation classes and therefore they are not much uh impacted on it. Uh but they have because they're long-term contracts 25:45 25 minutes, 45 seconds the probability to have u uh improvements on the designs on the um uh uh optimization of the processes is 25:54 25 minutes, 54 seconds better yielding them and also they have a higher content of services to the extent of 30%age in their offerings and therefore um uh they have an better 26:03 26 minutes, 3 seconds ability to maintain the margins as what we have seen in the past. 26:09 26 minutes, 9 seconds Robotics I think this robotics uh definitely uh ABB globally announced the divestment of robotics so we still have 26:16 26 minutes, 16 seconds uh um uh the decision in India is fully dependent on the board's evaluation and the next set of processes which should 26:22 26 minutes, 22 seconds happen uh which is at this point of time not decided um so they did have a good order intake in this particular quarter 26:30 26 minutes, 30 seconds to 203 crores and u so that's something and that had come from an um from their segments which they play out in 26:37 26 minutes, 37 seconds automotive electronics uh um area and general industry. So that's how it is backlog stronger um profitability again. 26:45 26 minutes, 45 seconds So I think it also depends here more on the mix and a bit of a forex they don't have much of impact over here. So that's 26:52 26 minutes, 52 seconds how and they had a bit of a lower s service revenues in the last two quarters and therefore the profitability 26:59 26 minutes, 59 seconds um is muted as we stand right. So this is uh this is basically how um u the the segments performed. And then finally we 27:08 27 minutes, 8 seconds go to the uh uh the uh the chart which looks at the channels of uh the market. 27:14 27 minutes, 14 seconds Uh if you look at it uh again uh we have a similar ratio of this thing of uh um 27:22 27 minutes, 22 seconds nothing much changed compared to the uh previous uh years. But only thing to note uh on a cumulative 9-mon basis the 27:30 27 minutes, 30 seconds service equipment put uh the expo the projects has basically come down to 8%age we have services at 13%age and 27:38 27 minutes, 38 seconds products still at 79%age so I think the ratios more or less remain the same not much of a change as what we see so yeah 27:47 27 minutes, 47 seconds that's probably last slide yeah I think uh this is this is the commentary from the finance side and so we are exactly 27:54 27 minutes, 54 seconds 30 minutes from uh when we started So we have the next 30 minutes for Q&A. Um um I think we can now open uh the call for the uh Q&A topic. 28:05 28 minutes, 5 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If 28:13 28 minutes, 13 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 28:20 28 minutes, 20 seconds and gentlemen, we will wait for a moment while the question queue assembles. 28:25 28 minutes, 25 seconds The first question comes on the line of Sumit Kishor with Access Capital. Please go ahead. 28:31 28 minutes, 31 seconds Thanks for the opportunity. My first question is in relation to your uh margins. Your profit margins for the 28:38 28 minutes, 38 seconds quarter are closer to the lower end of the wide band of 12 to 15% that you wish to operate in. Qualitatively if you 28:46 28 minutes, 46 seconds could elaborate you know whether margin pressures around material cost the market dynamics postcoid correction are 28:54 28 minutes, 54 seconds all factored in or we still have some room to go. Uh can this be the new normal for profitability in coming 29:01 29 minutes, 1 second quarters after the record highs that we saw in the last calendar year. So your comments here will be very useful. 29:08 29 minutes, 8 seconds That's my first question. Sumit uh Sanjay I'll take this question. 29:13 29 minutes, 13 seconds Okay. uh sumit I think um if when I had definitely elaborated uh more than adequately on the profitability movement 29:22 29 minutes, 22 seconds segment by segment at an overall level right yes so I think that's that's already answered so I don't want to repeat it again because that's the thing so now 29:30 29 minutes, 30 seconds question is um uh and as rightly uh even in the last calls which we had said so we are at the lower end of the percentage is what we want to operate in 29:39 29 minutes, 39 seconds and we did were doing it at a pretty high levels of 15% dates that probably registered in the mind as a new normal 29:47 29 minutes, 47 seconds for uh quite a few the markets but I think we are at the end of the day in engineering industry and so we have our 29:53 29 minutes, 53 seconds cyclical impacts to be handled uh so now coming back to uh what are the topics I don't think we don't have any one-off 30:02 30 minutes, 2 seconds topics other than what we told about uh the mix the market dynamics as what we understand which more related to um the competition scenario playing out and the 30:11 30 minutes, 11 seconds invest on on the limited investment decisions what we have then of course the forex and the QCO so I don't have anything much more than that um and uh 30:20 30 minutes, 20 seconds and when will we uh improve or move forward as in this particular journey probably I think um the QCO should be 30:27 30 minutes, 27 seconds addressed in another uh um three to four quarters as what we see because that's the timeline what the government has also given and therefore I should assume 30:35 30 minutes, 35 seconds that that is what the time with everyone industry will take that's how it is and the balance part of it is there is dependent on how the market develops and 30:43 30 minutes, 43 seconds how the private consumption and the investment decisions on the private on the public sector have happened. So that's that's how we see and just to uh 30:50 30 minutes, 50 seconds give a bit of more color to our answer on this uh do we find uh opportunities dying out at this point of time? No. 30:58 30 minutes, 58 seconds Yes, the opportunities are there but the decisions are delayed and the choice of customers uh today are quite variant and the only thing um a factor which we need 31:07 31 minutes, 7 seconds to probably um unknown at this point of time um on account of geopolitical topics between India and China how does 31:15 31 minutes, 15 seconds it play out is what we need to see right so that's something which is unknown at this point of time and left to the best case of you guys 31:24 31 minutes, 24 seconds sure so in the backdrop of what you said and what Sanjie mentioned on the call earlier. Uh well, base orders are uh 31:32 31 minutes, 32 seconds higher 13 up 13% uh year on year. They are stable quarter on quarter. So uh you know is it right for us to sort of 31:40 31 minutes, 40 seconds interpret that uh uh given uh the uh decision making is a bit deferred in the 31:47 31 minutes, 47 seconds backdrop of the macro environment geopolitical tensions. uh is this level of base orders absolute terms uh uh uh 31:57 31 minutes, 57 seconds uh likely to persist for some time before we see a breakout uh because of a more diversified capex cycle uh playing 32:04 32 minutes, 4 seconds out. Uh so across you know three segments you know the main ones electrification motion and process 32:11 32 minutes, 11 seconds automation how should we think about where we are in the cape cycle and how this can uh play out over the next 12 to 18 months. 32:20 32 minutes, 20 seconds Okay so SJ so would you like to take up this uh answer? Yeah. 32:29 32 minutes, 29 seconds So, yeah. So we we have had a very good cycle postcoid wherein we enjoyed very good growth uh 32:38 32 minutes, 38 seconds both in expansion of orders, revenues, uh profitability and all elements and 32:44 32 minutes, 44 seconds that was on back of India growth story as well as lot of capex uh put in by the 32:51 32 minutes, 51 seconds government in the right places and also we had a good support in our segments uh that we were focusing the new segments, 32:59 32 minutes, 59 seconds mid segments and also So large core segments. 33:03 33 minutes, 3 seconds So at this point of time uh for last few quarters now there's a sluggishness in the market in terms of capex formation 33:11 33 minutes, 11 seconds as well as uh expansion projects. They are good at they they're at a good level 33:19 33 minutes, 19 seconds but they are not in a very strong expansionary uh mode. Uh so from our perspective uh 33:26 33 minutes, 26 seconds this is a cycle which comes as a correction after a strong growth whether it takes one quarter two quarter the our 33:36 33 minutes, 36 seconds perspective is this is going to come back the growth is going to come back and we will ride that cycle because our 33:43 33 minutes, 43 seconds 18 divisions focus on this very dynamic 23 market segments. The moment the order intake and the order formation takes 33:52 33 minutes, 52 seconds place, it will directly reflect in our books uh in the orders revenues as well as in the uh capacity utilization which 33:59 33 minutes, 59 seconds directly impacts the profitability as well. Yeah. Thank you so much. 34:07 34 minutes, 7 seconds Thank you Kore. 34:10 34 minutes, 10 seconds Thank you. Next question comes from the line of reub with capital and we'll advise every participant to stick to one question. Thank you. 34:20 34 minutes, 20 seconds Sure. Uh thank you. Um I have two questions if they can be addressed. Uh the first would be um given that um the team has mentioned that they're seeing 34:28 34 minutes, 28 seconds some grain shoots and base orders and if tariff settlement is near uh do you expect um pick up in the investment 34:35 34 minutes, 35 seconds cycle or broad base um pick up in large order finalizations which has been not the case for last two to three quarters. 34:43 34 minutes, 43 seconds Uh so what would be your view on um the likely revival or recovery in the capex momentum and if the momentum is the way 34:50 34 minutes, 50 seconds it is there today with flattish book and just uh early teams growth in base orders um would you think it would be possible for ABB to manage double digit 34:59 34 minutes, 59 seconds growth in CY 26 or probably that too would be a year of moderation or consolidation um like 25 and in case if 35:08 35 minutes, 8 seconds you can give any comment uh Nvidia the recent um relationship um on which Nvidia and AB are working together for solid state drives for AI data centers. 35:17 35 minutes, 17 seconds Um in your view by when you think uh the products for this market would be available and ready and in cases that 35:24 35 minutes, 24 seconds product is available in India for ABB um to what extent it can increase the time um for us in the DC market. Thank you. 35:36 35 minutes, 36 seconds So, so Sanji, so I think we could invite uh um Kiran and Sanji Bura on this. So because they are reading the markets 35:44 35 minutes, 44 seconds quite stronger for EL and MO any of 75%age of business. So so I have Kiran over here. So please yeah Kiran so you could throw some color 35:52 35 minutes, 52 seconds with from E and motions of course Sanjivor. 35:58 35 minutes, 58 seconds Yes, thank you. Thank you Sanjie and Sher. Um I think u it's a good question in terms of the market how it's uh 36:05 36 minutes, 5 seconds behaving and also a quite um an elaborate question in terms of uh what exactly we are trying to do in data 36:13 36 minutes, 13 seconds centers as well. I think let me pick up some few of the segments of the market. 36:17 36 minutes, 17 seconds Um let me just pick up something on renewables rail and maybe something on data centers since the question is there. Now when I look at the way 36:24 36 minutes, 24 seconds renewable sector is behaving uh what we see is a a good expansion in terms of the renewable market uh specifically 36:31 36 minutes, 31 seconds when it comes to renewable I'm also looking at something known as battery energy storage systems which we call it as best. So that's something which is 36:39 36 minutes, 39 seconds really um topping on the charts in terms of the opportunities which is available for the future as well and we are also looking at something on green hydrogen which is 36:48 36 minutes, 48 seconds also becoming very prominent as a sector in the market. uh when I look at rail you have seen lot of expansions across 36:55 36 minutes, 55 seconds investments from the government and also into the metro sectors met rail across the various cities of India so that's something which is an investment which 37:03 37 minutes, 3 seconds is coming across and we find that this is going to really contribute to the base orders going forward on the data 37:10 37 minutes, 10 seconds centers when I look at uh it I segregate into two parts one in terms of uh hypers scale and the second one in terms of the 37:17 37 minutes, 17 seconds collocation data centers uh when I look at hypers scale Yes, there is a bit of a sluggish kind of a movement in India at this point of time or in the probably in 37:27 37 minutes, 27 seconds the Q3 and we are also looking at uh a bit uh in terms of a sluggish growth there in hypers scale but at the same time what is important to understand is 37:35 37 minutes, 35 seconds how exactly the collocation data centers are behaving I think collocation centers data centers there's a huge demand for 37:43 37 minutes, 43 seconds them um in terms of the capabilities what what they can extend and also the preference of the customers and they 37:50 37 minutes, 50 seconds want to have collocations uh uh which is really supporting them in their day-to-day processes. So we feel that data centers in collocation would grow 37:59 37 minutes, 59 seconds and we have seen the substantial growth in Q3 as well and we would like to go forward with our uh services and 38:05 38 minutes, 5 seconds solutions to them. Uh even this quarter as well and last quarter as well we have been doing the same. So maybe over to yeah Sanjiv Sanjura. 38:18 38 minutes, 18 seconds Yes, thank you. Uh, thank you Sh, thank you Sanjie and uh, thanks Kiran. I think uh, I echo what Kiran has just 38:27 38 minutes, 27 seconds mentioned. So giving a uh, flavor of the discrete part base load orders as Shar 38:34 38 minutes, 34 seconds has mentioned uh, they have been very good for us. uh and uh you know that shows uh the early signs of positivity 38:43 38 minutes, 43 seconds in the market demand uh because when we compare to last few quarters yes there was a challenge uh and Kiran as well 38:51 38 minutes, 51 seconds explained on the segments part but then when we touch upon uh the the uh the cement and the steel and the oil and gas 39:00 39 minutes part I would say that uh the investment cycle has started in these segments as Well, 39:08 39 minutes, 8 seconds so cement we are seeing uh a bit of a revival and upturn in the investment. Uh same goes for steel industry. Uh and 39:17 39 minutes, 17 seconds also we do see a good uh pipeline in the oil and gas sector. So uh yes the 39:26 39 minutes, 26 seconds markets uh will be a bit dynamic price pressures will be there but the good part is that demand uh will also be 39:34 39 minutes, 34 seconds sustained uh in the coming quarters as we as we see now. So that's the comment from my side. 39:44 39 minutes, 44 seconds Yeah thanks Sanjiv thanks uh Kiran. So Reo I think hopefully this gives you a more granular view than at the company 39:53 39 minutes, 53 seconds level. So because at least only uh process automation and robotics of pro automation forms only 13%age and we alluded and that's some of the um 40:02 40 minutes, 2 seconds comments which Kiran and Sanjie have given also applies to them in a way. So I think overall uh we feel we feel that 40:11 40 minutes, 11 seconds the when uh the market would be at similar levels as what we see at this point of time the next one or two quarters and then probably we could see 40:19 40 minutes, 19 seconds some uh thing which could be on the positive side as what is the assumption at this point of time got it anything on the Nvidia 40:27 40 minutes, 27 seconds opportunity or bank for India yeah so I think that's uh and that's question is reserved for Sanjie so 40:34 40 minutes, 34 seconds Sanjie so on a larger scale you could probably give some color on that. 40:41 40 minutes, 41 seconds Uh could you repeat the question please? 40:43 40 minutes, 43 seconds The engagement with Nvidia for solid state uh cooling solution. The recent engagement with ADB parent with 40:52 40 minutes, 52 seconds Nvidia for AI data centers to develop solid state uh drives and cooling solutions. Uh in your view um can the 41:01 41 minutes, 1 second solutions be available to AB in India when the products are prepared and ready? and uh to what extent it can it can increase our time in this particular segment. 41:13 41 minutes, 13 seconds So at this point of time I don't have the complete details of this particular deal. uh I know as much as you know in 41:21 41 minutes, 21 seconds terms of intent of ABB express with Nvidia but as a principle if uh there is no geographical restrictions of 41:29 41 minutes, 29 seconds application of those technologies all technologies ABB develops they are naturally available to our customers here in India. 41:39 41 minutes, 39 seconds Got it. Thanks much team. Thank you. Thank you. Thank you Reo. 41:46 41 minutes, 46 seconds Thank you. A reminder to all the participants please restrict yourself to one question. The first question, the next question comes from the line of 41:53 41 minutes, 53 seconds Atul Tari with JB Morgan. Please go ahead. 41:56 41 minutes, 56 seconds Yeah. Uh sir, thanks a lot sir. My question is on this QCO. Uh could you elaborate a little more on you know what 42:04 42 minutes, 4 seconds exactly is the nature of this QCO order you know uh which is leading to higher imports and how long this impact will 42:12 42 minutes, 12 seconds continue before you adjust to the QCO fully. 42:17 42 minutes, 17 seconds So uh Atul I have actually in my commentary elaborated quite a bit including what's the impact on QCO right 42:25 42 minutes, 25 seconds so for the benefit of again I think probably I think people joined in late or missed out what I said I think um uh 42:33 42 minutes, 33 seconds what is QCO the the government you know in its mission for atmanbar um this thing has made wanted to uh create an uh 42:43 42 minutes, 43 seconds system where Indian manufacturer or developed products or more used and before they use I think they had to be 42:50 42 minutes, 50 seconds tested and uh qualified by the Indian uh Bureau of Indian Standards and that's something which is getting done. So now 42:58 42 minutes, 58 seconds in that so um till now it was not mandatory but now it has been made mandatory. So therefore all the products 43:05 43 minutes, 5 seconds have to be whatever we manufacture including the subcomponents have to go through um uh the testing and certification of these particular 43:13 43 minutes, 13 seconds institutes and it takes lot of time because the number of labs are less the number of slots are less and there are so many people competing for the same um 43:22 43 minutes, 22 seconds uh slots and therefore it is uh definitely an problem. So probably I think uh and that's exactly why the government also keeps extending these 43:30 43 minutes, 30 seconds particular deadlines because they know that there is an u uh slam and what do you call a capacity issue which they 43:37 43 minutes, 37 seconds have to address right so but now on the other hand um having come to know that this is a problem on hand so we need to 43:44 43 minutes, 44 seconds draw a decision which is better in terms of serving the customers. So we have no other option if we want to keep the 43:52 43 minutes, 52 seconds custom customer serviceability as a main criteria to to use imported material uh to make sure that they are already which 44:00 44 minutes are already certified by the global laboratories that which could be used right so so that's something um is what is QCO about and how are we handling 44:09 44 minutes, 9 seconds that so to address this because the the there is going to be definitely lot of time which will be taken to get our 44:16 44 minutes, 16 seconds product certified and so for the others as well And therefore uh you know in the interim we have no other option but to import material to serve our commitments 44:25 44 minutes, 25 seconds to the customers. So what does this mean uh what used to be locally developed and which we are using at a cheaper cost which we now need to import. So the base 44:33 44 minutes, 33 seconds cost itself increases number one. Number two is that you have a forex which is attached to this particular transaction. 44:41 44 minutes, 41 seconds So that's also subject to volatility. So you have an impact on both. So how long will it continue? which could continue as what I said to another uh three to four quarters is what I mentioned. 44:51 44 minutes, 51 seconds Okay sir. So very perversely this order which was designed to promote Indian manufactured equipment is leading to higher imports you know that is the so 45:00 45 minutes that's what I wanted to understand so as an industry are you guys not representing the government then that it is serving the opposite purpose of whatever was intended. 45:11 45 minutes, 11 seconds So you think that we will not do it at so we have done through lot of other uh associations everyone every industry is 45:18 45 minutes, 18 seconds making sure that it is comp it is representing itself to the right authorities to do it but I think it's a government objective it's good 45:26 45 minutes, 26 seconds you can also help us by writing an analyst report and publish it in the major media and so can help you with all 45:34 45 minutes, 34 seconds the information if any help that we can get to get this thing through is always good but it's matter of time uh it will 45:41 45 minutes, 41 seconds be it will be sorted but uh but yes that's the stage we are right now we need to go through it we have no other way okay 45:49 45 minutes, 49 seconds yeah yeah thank you but it's good in the overall interest of the nation in the long run that's how we look at it okay 45:57 45 minutes, 57 seconds okay thank you thank you thank you next question comes from the line of lavina cordros with Jeff please 46:04 46 minutes, 4 seconds go ahead uh hi sir thank you for for the opportunity just wanted to check sir so on the robotics arm Uh I'm sorry if I missed if it was discussed earlier but 46:13 46 minutes, 13 seconds on the robotics arm given the parent has sold it at a valuation. Uh earlier there was a thought that maybe the robotics arms gets listed separately. I mean how 46:21 46 minutes, 21 seconds is how the Indian shareholders is going to get compensated for it just to understand will it will the arm be separated out or will the valuation be in line with what is being offered to the parent. Thank you. 46:34 46 minutes, 34 seconds Sanji you would like to answer that super. 46:38 46 minutes, 38 seconds Sure. So, so we have u we had made it clear um at a global level that the 46:44 46 minutes, 44 seconds robotics business will find its own footing uh so that they can find their growth path in future and then initial 46:53 46 minutes, 53 seconds uh interest was to list that company but uh then we had a in the interest of the shareholders we got a very good offer 47:02 47 minutes, 2 seconds from Soft Bank and board if global board decided to choose soft going to be the 47:09 47 minutes, 9 seconds future owner and take this business uh forward. As far as India assets are concerned, uh these assets 47:18 47 minutes, 18 seconds will be uh evaluated by by the board independent directors included and we 47:26 47 minutes, 26 seconds will follow the due process of evaluating it. And uh after the valuations are done like we had done in 47:34 47 minutes, 34 seconds the past and the board is local board is satisfied uh based on that valuation 47:41 47 minutes, 41 seconds separation of this uh asset will be done into a new company but then this is something is not given this is subject for ABB India limited board approvals. 47:52 47 minutes, 52 seconds Yeah. 47:53 47 minutes, 53 seconds Uh understood. So just lastly on this only so listing is unlikely but a separate valuation will be decided and then you'll follow the due course 48:01 48 minutes, 1 second process broadly at least as of now that's what seems to be absolutely great thank you absolutely so so that's how that's how 48:09 48 minutes, 9 seconds that's how these assets are dealt with and if you see the history of similar assets separated from ABB India Limited 48:15 48 minutes, 15 seconds we follow a very tight governance model uh and uh that is led by the ABB India 48:22 48 minutes, 22 seconds uh limited Thank you. 48:28 48 minutes, 28 seconds Thank you. Next question comes from the line of Samir Takul with Ambit Capital. Please go ahead. 48:34 48 minutes, 34 seconds Yeah. Hi, thanks. So uh you said that the pipeline for energy industries and process industries that is uh that is 48:42 48 minutes, 42 seconds still there and uh is this just a problem of conversion to orders and uh are you seeing that pipeline is increasing or is there an underlying 48:50 48 minutes, 50 seconds issue with the demand or any loss of market share there 48:59 48 minutes, 59 seconds would you like to uh question it for a specific market segment? No, I think it's for process industries in general. 49:05 49 minutes, 5 seconds Process automation which is process automation oil and gas cement steel and other course like 49:14 49 minutes, 14 seconds uh is um is uh from process automation is not there on the call. I think he's a good customer. 49:26 49 minutes, 26 seconds So as such uh you know if you really look into the focus of ABV into the process industries uh we have very 49:35 49 minutes, 35 seconds distinct focus on market segments like oil and gas uh we have mining we have 49:42 49 minutes, 42 seconds cement we have pulp and paper metals. So these are the market segments uh which 49:50 49 minutes, 50 seconds you know we participate with the their capex cycle as well as their OPEX cycle and capex cycle is sometimes the green 49:57 49 minutes, 57 seconds field project and sometime it is the expansion of the project and and also sometimes they have these upgrade of 50:04 50 minutes, 4 seconds their digital infrastructure energy efficiency infrastructure. So we find that these sectors 50:12 50 minutes, 12 seconds given they are the continuous industries they continue to invest in all the cycles. It is the intensity uh changes 50:21 50 minutes, 21 seconds only when the green field projects kind of are announced or major expansions are announced by these 50:29 50 minutes, 29 seconds players who are uh who are who are operating in this market. So our typical drum beat and our rhythm is around OPEX 50:37 50 minutes, 37 seconds as well as the expansion in the normal course of the business and that we see is quite robust at this point of time 50:45 50 minutes, 45 seconds and that continues to be robust because because these are substantial industries they have to continue to invest into the area we are now with when it comes to 50:54 50 minutes, 54 seconds the major expansion the green field expansions in certain market segments we definitely see there is a green field expansion But 51:03 51 minutes, 3 seconds it is not widespread and I believe the cycle of uh you know the demand versus 51:10 51 minutes, 10 seconds how much capacity is available there is likely to be a upsurge in the in the 51:17 51 minutes, 17 seconds capacity utilization of that sorry capacity expansion of many of these uh 51:24 51 minutes, 24 seconds segments. At the same time, one has to also keep in mind. Uh this is something 51:31 51 minutes, 31 seconds which I cannot say uh as a confirmation but in the news media there is a uh there's a clear 51:40 51 minutes, 40 seconds mention that uh between India and China now there is a th of relationship and more and more businesses are opening up. 51:51 51 minutes, 51 seconds So it is unclear what will be the impact of Chinese imports in the country. So I think all our customers who are in these process industry segment they will be 51:59 51 minutes, 59 seconds also evaluating very closely how this will play out whether the Chinese imports will flow into the market un 52:08 52 minutes, 8 seconds you know in an uncontrolled way whether that will impact their price realization in the market. So I think that part is unclear at the moment and that will 52:16 52 minutes, 16 seconds define the future demand uh curve of these industries in our opinion. 52:24 52 minutes, 24 seconds Yeah. Okay. Thanks. If I squeeze in one more just just coming back to again QC1, there was a deadline in November 25 as 52:32 52 minutes, 32 seconds well for some of the products. So just I just wanted to check if I understand clearly that imports imports the QC 52:39 52 minutes, 39 seconds related imports that we'll keep on doing. Is that the right way to think of? 52:45 52 minutes, 45 seconds We we had earlier imported uh in I think March, April, May in that quarter and probably going ahead we have to keep 52:54 52 minutes, 54 seconds importing unless you build the certifications. 52:56 52 minutes, 56 seconds Yeah. So what happens is this the government keeps moving these particular dates right. So what has come in what we thought as we were uh working in the 53:05 53 minutes, 5 seconds second and third second quarter that November is a date before which we have to close this and in case if we don't do it so then you have to definitely use 53:14 53 minutes, 14 seconds the imported uh sub components what we require right so but we go with that anticipation and in and we try our best 53:20 53 minutes, 20 seconds to get it qualified in the laboratories right but in case if that and if we see that there's a delay we have no other 53:28 53 minutes, 28 seconds option but to make sure that we have to import more for the future requirements but then the government as we near to 53:35 53 minutes, 35 seconds the this thing so the government takes a call to extend it. So this is basically that's exactly what they said. So now um the government keeps moving these uh 53:43 53 minutes, 43 seconds deadlines depending upon how the progress is and how they are able to monitor this particular process. So we need to go with that and be in line with um uh the process uh for certification. 53:56 53 minutes, 56 seconds So I think that's a bit of an uh um there is no what do you call uh a definite uh am saying that it will close 54:04 54 minutes, 4 seconds at this date come what may it's not going to happen because the as I mentioned earlier the capacities is less reserve is the work to be done which is 54:14 54 minutes, 14 seconds humongous right so that's taking more time and therefore uh um we have to uh go along with what the government is 54:22 54 minutes, 22 seconds directing us to do now Okay. Thanks. Uh that is from my side. Thank you. 54:30 54 minutes, 30 seconds Thank you. A reminder to all the participants, please restrict yourself to one question. Next question comes in the line of Amit Mahavar with UBS. 54:38 54 minutes, 38 seconds Please go ahead. 54:40 54 minutes, 40 seconds Yeah. Morning Sanjivar. Congratulations on um maintaining a very good order momentum in base orders better than industry maybe. Sir, I just have one 54:48 54 minutes, 48 seconds question. um uh you know you have the book uh in process automation which is um maybe around 30 40% down uh EP is the 54:57 54 minutes, 57 seconds only segment where uh we've grown very well 15% in top line and I don't worry about margins it's a transit issue but 55:05 55 minutes, 5 seconds do you think in cy 26 we can touch uh a 10 12% revenue growth given that 55:12 55 minutes, 12 seconds mobility orders will take some time given that energy is not a large basket for us uh and the discrete portfolio for 55:20 55 minutes, 20 seconds us is growing more in just short of teams or less than that. So a collective assessment Sanjie uh you know which will help us. Thank you. 55:33 55 minutes, 33 seconds So I think it's fair to say as process automation is concerned uh net of robotics it will be only 13% of our portfolio 12 to 13% of our portfolio. 55:44 55 minutes, 44 seconds So, so we take benefit of industry cycle whenever there are large capex projects and the large consolidated uh orders 55:52 55 minutes, 52 seconds coming to us or system orders coming to us. Other than that we continue to gain on the ETO which is engineer to order 56:01 56 minutes, 1 second business which is largely sitting in uh M and E. uh so that continue to benefit and then of course we have the E 56:08 56 minutes, 8 seconds business which is the product business which is uh made to store and made to order uh you know fastmoving products in 56:16 56 minutes, 16 seconds the marketplace. So in the made to order made to store and ETO I think the business is quite robust and we do feel 56:24 56 minutes, 24 seconds uh that you know given the the backlog that we have the execution of it is well lined up they're clean orders so we will 56:31 56 minutes, 31 seconds see an uptick of uh uptick of revenue growth with that as we go forward both 56:38 56 minutes, 38 seconds in EL and MO and but then there are some long gestation orders sitting in the mobility side that you're right so I think if you net that out I I think rest 56:46 56 minutes, 46 seconds of the uh rest of the book to bill orders as well as uh in the EL and MO will continue to push the revenues 56:53 56 minutes, 53 seconds upwards and as far as the PA is concerned it goes through the cycle. So we have seen it for a very long period of time and whenever the cycle on the 57:02 57 minutes, 2 seconds large orders pick up in that area of course they positively contribute to us here. 57:09 57 minutes, 9 seconds Thank you Sanjie and good luck. Thank you Amit. Thank you. 57:17 57 minutes, 17 seconds Thank you. Next question comes from the line of Rahul Kajar with Makpuri Capital. Please go ahead. 57:25 57 minutes, 25 seconds Yeah. Hi. Um, you know, I just have one question. Uh, you know, you've touched on, uh, you know, delay in order finalization, I 57:34 57 minutes, 34 seconds think, in your opening remarks. Now you know it's it's uh it's very clear that I think the entire order inflows are 57:42 57 minutes, 42 seconds supported by base orders. Uh you know but in the last four quarters we've got only 400 crores of large orders. Uh I want to understand you know if you could 57:50 57 minutes, 50 seconds highlight you know discussion with clients and you know if it is further possible to quantify you know the kind of uh large orders that we are looking 57:58 57 minutes, 58 seconds at over the next maybe uh three to four quarters. I think that will be helpful. 58:07 58 minutes, 7 seconds So normally we don't give those particular future projections as such right. So we just only give a color on how the markets are and that's exactly 58:15 58 minutes, 15 seconds what uh um Kiran or Sanjiv or Sanjiv Sharma did allude to at this point of time. So uh I mean when it large orders 58:24 58 minutes, 24 seconds definitely are widespread in all the three business areas. So electrification, motion and uh process automation. What we are saying is at 58:33 58 minutes, 33 seconds this point of time the opportunities are there but the decisions are being uh uh delayed. It's not moving the same pace 58:40 58 minutes, 40 seconds as what it is but I think uh the good part is the base orders keep growing and which is what our focus is. Um uh so I 58:47 58 minutes, 47 seconds think uh to be honest we cannot give a direct uh sort of an projection or a number to this particular question. I'm sorry that's the sort of policy which we have. 58:58 58 minutes, 58 seconds Sure. In that case is it possible you all can highlight uh the kind of growth that you are uh thinking of you know when you are talking about classifying 59:07 59 minutes, 7 seconds certain industries into high growth or medium growth or low growth. Is that something we can uh do? 59:15 59 minutes, 15 seconds Actually, we don't give any growth projections, right? So, we only say our ambition is to be there in the trajectory as how the market is moving 59:22 59 minutes, 22 seconds and uh um uh what do you call maintain that momentum as what we have seen and I think of course um postcoid we had an 59:31 59 minutes, 31 seconds very very high uh fast growth I think which is now softening out to the extent what is possible. So our always ambition is to be in the double digit corridor as what Sanji was mentioning earlier. 59:42 59 minutes, 42 seconds Sure. Appreciate that. Thank you very much. Thank you. 59:48 59 minutes, 48 seconds Thank you. Next question comes from the line of Adita Monia with Kotch Institution Equities. Please go ahead. 59:55 59 minutes, 55 seconds Yeah. Good morning everyone and thank you for the opportunity. Um my question was more linked to at a broad portfolio 1:00:02 1 hour, 2 seconds level gaps that you see emerging as the market conditions change as well as uh 1:00:09 1 hour, 9 seconds opportunities uh that may be coming um in the market that we don't currently serve. In a sense from an inorganic 1:00:16 1 hour, 16 seconds perspective, u how actively are you thinking about um uh your portfolio at this point of time? 1:00:27 1 hour, 27 seconds So I can take this. So at a global level with the robotic sales as well as how we generate cash, I think we are a quite 1:00:36 1 hour, 36 seconds robust company globally and also at a local level our cash reserves are quite healthy. So our global CEO in the last 1:00:45 1 hour, 45 seconds call has made it very clear that ABB is looking for large ticket inorganic 1:00:51 1 hour, 51 seconds options uh around the world and whenever such options are exercised they also have a footprint effect in India and we 1:01:00 1 hour, 1 minute participate with our books uh in those uh acquisitions as well. So that's one part which is very much in the play and 1:01:08 1 hour, 1 minute, 8 seconds uh and I think there's a very strong and solid intention of the management to grow our bolt on uh portfolio. So that's 1:01:18 1 hour, 1 minute, 18 seconds what we are looking for that the existing businesses should acquire businesses which complement their existing portfolio and also their 1:01:27 1 hour, 1 minute, 27 seconds ability to serve their customers even more effectively or the channel partners or the channels even more effectively. 1:01:35 1 hour, 1 minute, 35 seconds So that's very much on and we also have the similar focus in India for India in or an organic approach other than the 1:01:44 1 hour, 1 minute, 44 seconds global wherein we do have a list and uh but it takes two to tango so so the 1:01:52 1 hour, 1 minute, 52 seconds lists uh we are working on and uh we stay again focused on the bolt-on opportunities for the existing 1:01:59 1 hour, 1 minute, 59 seconds businesses and also the specific new emerging market segments which are relevant in India. India and relevant 1:02:06 1 hour, 2 minutes, 6 seconds for our business in India. Uh they find that uh focus and this is done not only 1:02:12 1 hour, 2 minutes, 12 seconds by us. It is also participated by our global divisions and they together with our global division local divisions they're always focused on those opportunities and we do have a pipeline. 1:02:23 1 hour, 2 minutes, 23 seconds We will let you know soon we succeed either globally or locally with these opportunities we see in the market. 1:02:30 1 hour, 2 minutes, 30 seconds Chris and thank you for response. That's my only question. Thank you. 1:02:37 1 hour, 2 minutes, 37 seconds Thank you ladies and gentlemen. Due to time constraints, we have reached the end of question and answer session. I would now like to hand the conference 1:02:44 1 hour, 2 minutes, 44 seconds over to Mr. TK Suther for closing comments. 1:02:48 1 hour, 2 minutes, 48 seconds Thank you very much. I think it was an interesting discussion. Right. So on QCO on the market dynamics and the uh uh 1:02:55 1 hour, 2 minutes, 55 seconds opportunities as well as robotics piece of it. So thank you for supporting us and also thank you for uh uh giving some 1:03:03 1 hour, 3 minutes, 3 seconds valid inputs around uh our businesses and wish to talk to you next time uh after the full year results in the month of February and uh have a good closing. 1:03:14 1 hour, 3 minutes, 14 seconds Thank you very much all of you. 1:03:18 1 hour, 3 minutes, 18 seconds Thank you on behalf of ABB India Limited. That concludes this conference. 1:03:23 1 hour, 3 minutes, 23 seconds Thank you for joining us. You may now disconnect your lines.