ABB India Ltd — Q4 FY26

ABB India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=eiOdKVyGySI Published: 5 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to ABB India Limited Q1 January to March quarter CY 2026 earnings conference call. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an operator by pressing start then zero on the touchstone phone. Please note that 0:28 28 seconds this conference is being recorded and any unauthorized recording of this call is strictly prohibited. The recording 0:36 36 seconds will be made available on the company's and service website subsequently. 0:41 41 seconds I now hand the conference over to Mr. TK Shrihar, chief financial officer of ABB India Limited. Thank you and over to you sir. 0:50 50 seconds Thank you. Thank you and good evening ladies and gentlemen. Uh thank you for joining the Q1 2026 results. So on the 0:58 58 seconds call with me is Mr. Sanjil Sharma, country managing director India. Uh Kiran Dat and Ganesh Kotav who are 1:07 1 minute, 7 seconds lead business decisions and expertification. Uh Sanji Gora is not able to join because he's traveling but 1:14 1 minute, 14 seconds we have uh Balaji who leads the process automation uh automation division in right so uh over to you. I think we have 1:22 1 minute, 22 seconds a presentation up and the press release is in the process of getting uploaded right so some technical uh glitch not 1:29 1 minute, 29 seconds from our side but from the uh other side of it so I think we're trying to get it sorted out uh so in the meantime we will 1:37 1 minute, 37 seconds take the liberty of walking you through the presentation uh which is definitely going to uh give some color about the 1:44 1 minute, 44 seconds series also yeah over to you thank you sir and good evening to all of you and thanks for uh showing interest 1:52 1 minute, 52 seconds and joining in on Friday evening this late. Um and um yeah, we will we will keep it sharp and brief for you. Um as 2:02 2 minutes, 2 seconds for those of you who are joining it uh for the first time and also those who would like to have a bit of a reminder, 2:09 2 minutes, 9 seconds ABN India at a glass is a company which is focused on electrification, motion and automation 2:18 2 minutes, 18 seconds solutions and we have a very strong footprint for manufacturing in the country and uh we represent all ABB 2:28 2 minutes, 28 seconds group uh business divisions. in the country which are highly localized and also are connected with the customers 2:37 2 minutes, 37 seconds and at the same time we serve our customers with from our 28 sales offices and increasing number of uh channel 2:44 2 minutes, 44 seconds partners who take to the take us to the deeper deeper side of the market and also do value added uh services uh 2:52 2 minutes, 52 seconds closer to the customer and from this country we are exporting to about 30 plus country uh which are increasing uh 3:00 3 minutes as we as we progress with our portfolio and footprint of the manufacturing indust. 3:09 3 minutes, 9 seconds So uh those of you who have been following ABB on a constant basis. So last year we did see there was a bit of 3:17 3 minutes, 17 seconds a a market u corrections uh and then I think that were also reflected in our 3:24 3 minutes, 24 seconds number. But for last quarter of uh last 2025 and the first quarter we see uh 3:31 3 minutes, 31 seconds demand has become resilient and we are seeing a quite a good uptick of it in our in our books and this is across all 3:40 3 minutes, 40 seconds our segment. As you know we have six 16 divisions which are distinct business models which are connected with 23 3:48 3 minutes, 48 seconds market segments and we see all the uh market segment we talk to us they are showing good resilience and good capex 3:57 3 minutes, 57 seconds formation and also good ordering. So we had a 25% order growth, 6% revenue 4:04 4 minutes, 4 seconds growth and we continue to have uh uh you know a good cash position with within the company and uh and also we had a we 4:13 4 minutes, 13 seconds have a good backlog which gives us the good revenue possibility. Uh sir will take you to the profit after tax numbers 4:20 4 minutes, 20 seconds uh when we uh break down the uh financials later on. uh but some of the highlights uh that we announced about 4:29 4 minutes, 29 seconds $75 million investments to expand manufacturing and R&D in the country and we also dispatched first locally 4:37 4 minutes, 37 seconds manufactured wind power converter from the Neilangla facility which is again is a uh one milestone and also opens up uh 4:46 4 minutes, 46 seconds another revenue and order stream for the future and we also have R2 formula a next generation low voltage gear 4:53 4 minutes, 53 seconds platform which is used by our partners in the market to give a value added solution to power distributions uh 5:01 5 minutes, 1 second industry. And on sustainability side uh we have scope one and two uh greenhouse 5:08 5 minutes, 8 seconds uh uh uh you know uh emissions down by 82%. And we are we are secured rank 5:16 5 minutes, 16 seconds three in electrical electronic sector and rank nine across industries in BW business world most sustainable companies award. Next please. 5:26 5 minutes, 26 seconds If you see the uh order momentum, it is coming across core and emerging sectors namely in transport, building 5:34 5 minutes, 34 seconds infrastructure, data center, food and beverage, process industries and renewables and which has gives us good 5:41 5 minutes, 41 seconds uh visibility going forward because the customer interest and the order pipeline formation is robust at the moment and 5:49 5 minutes, 49 seconds our given our backlog we see very good revenue execution uh going forward Of course, we will see what impact the West 5:58 5 minutes, 58 seconds Asia issues come in, but those will be temporary as we go forward. Please continue. 6:07 6 minutes, 7 seconds So, you can see that we have a portfolio wherein we are seen by our customers in the segments like data centers, 6:14 6 minutes, 14 seconds renewables, industries, infrastructure and transport as the best-in-class uh supplier of products and solutions. And 6:22 6 minutes, 22 seconds we continue to uh gain and enjoy that uh confidence from our customers and um and 6:29 6 minutes, 29 seconds these are some of the examples that you can see. Uh next please. 6:38 6 minutes, 38 seconds So among the market segments where in our signal 16 businesses are focused which are the 23 market segments. Uh you 6:46 6 minutes, 46 seconds can see the emerging industries which are growing quite strong and infrastructure and transport that is on 6:52 6 minutes, 52 seconds a healthy scale. We have highlighted by colors and core industries uh which are modest but they also form fairly large 7:01 7 minutes, 1 second part of our portfolio and we continue to see uh strength in some of these market segments which are cyclic in nature and 7:09 7 minutes, 9 seconds that's exactly what is interesting about our portfolio. 16 business models operating on 23 and there and we 7:16 7 minutes, 16 seconds continue to show resilient results over a period of time because there's less accuracy among the among the among the 7:23 7 minutes, 23 seconds market segments. So so that's that's a good place to be and that's what we have observed over a period of time. Let's continue 7:31 7 minutes, 31 seconds just to give you an idea about what we do in the data centers because that's a flavor of the day. So we have uh lot of 7:40 7 minutes, 40 seconds products and solutions especially in the low voltage power distribution which essentially powers up the computer racks 7:47 7 minutes, 47 seconds in the data centers and also the medium voltage and primary secondary distribution which brings in the power into the data center and the alternate 7:55 7 minutes, 55 seconds power sources like uh generators, battery energy storage that also become part of that solution. UPS is another uh 8:04 8 minutes, 4 seconds power protection uh facility which goes from us and then we have number of drives and motors that go into the cooling system components and number of 8:13 8 minutes, 13 seconds installation products and also automation solution for data centers plus medium voltage substations. So this 8:20 8 minutes, 20 seconds combination is enjoyed by customers especially the hyperscalers. uh we have a good demand globally for these 8:27 8 minutes, 27 seconds products. In fact, very strong demand globally as well as in India and we are we are kind of uh serving our customers 8:35 8 minutes, 35 seconds quite effectively given our capacities available and our capabilities available locally to support not only in 8:42 8 minutes, 42 seconds installing this solution but also provide provide long-term service and support to the customer. Let's continue 8:51 8 minutes, 51 seconds sustainability in practice. As I mentioned to you earlier, our GG emissions are down by 82%. Water water 8:57 8 minutes, 57 seconds recyclability is up by 46%. And uh you can read our DRSR report which we have 9:04 9 minutes, 4 seconds released and uh there again we have highlighted in a much more details about what kind of uh focused uh effort uh our 9:13 9 minutes, 13 seconds company does in this particular area and we continue to get recognition uh for uh the work that is done by our teams 9:20 9 minutes, 20 seconds across uh the country. Next please. On the CSR part, uh we continue to stay focused on three areas, education and 9:29 9 minutes, 29 seconds skilling, diversity and inclusion, communities and environment. And we have our track record for last 10 years that 9:35 9 minutes, 35 seconds we spend 100% of our commitment. And uh we really measure not by spend but by impact and we also do audit for the 9:44 9 minutes, 44 seconds impact of all the spend uh done in the areas we meant it to be done and our board and the CSR committee always uh 9:53 9 minutes, 53 seconds really reviews it and they have been quite satisfied in terms of the impact that we create with our CSR spending. Next please. 10:02 10 minutes, 2 seconds Now factors to that we are watching for 2026 are the economic power uh then green energy and sustainability 10:10 10 minutes, 10 seconds urbanization and smart infrastructure automation and AI consumerism and lifestyle upgrades and of course coupled 10:17 10 minutes, 17 seconds with the global uncertaintity or this is a combination plate that we have quite frankly uh we have seen many cycles uh 10:26 10 minutes, 26 seconds uh in this country we are manufacturing for last 75 years we have probably seen uh most of the events that we can record 10:34 10 minutes, 34 seconds in the history. So our team and the businesses are pretty resilient in terms of not to o over um kind of blow the uh 10:44 10 minutes, 44 seconds uncertaintities because every year there is something last year was tariff this time is the west Asia and few years back it was covid we have all gone through 10:53 10 minutes, 53 seconds those cycles but the team really knows to keep focus on the customers what the customer is demanding and keep fulfilling what customers demands are 11:02 11 minutes, 2 seconds and I think that's a simple recipe for us to stay resident. Next please 11:09 11 minutes, 9 seconds on the financial highlights now I hand it over to uh DK sar who will go on more granular on the results. Thank you. 11:18 11 minutes, 18 seconds Thank you Sanji. So uh just to give more insights about how did we perform in Q1 11:25 11 minutes, 25 seconds u orders were pretty strong I 25 percentage base order but large orders was something which we got and it was 11:33 11 minutes, 33 seconds from uh the data center space and the railway space right so not to mention what the order value but these are the two market segments from the from which 11:42 11 minutes, 42 seconds we got these large orders but overall I think we are in a in a very solid position in terms of order backlog. So 11:49 11 minutes, 49 seconds 11,000 crores. I think this is a good backlog which gives a nice visibility for the in the coming quarters. That's 11:56 11 minutes, 56 seconds what we can go through. Uh revenue uh 3,184 slightly subdued I would say. I 12:02 12 minutes, 2 seconds think uh um we were u sort of good well positioned to uh go to 3,0003 and 400 12:09 12 minutes, 9 seconds levels but uh um the last minute um uh topics which we had to deal with in our West Asia crisis sort of stifled the 12:17 12 minutes, 17 seconds uptake as well as the supplies and that's something which we had to uh stay where we are at this point of time. show 12:26 12 minutes, 26 seconds and this naturally had an impact cascading impact on the uh performance and the profitability level. But apart from that we also had uh quite 12:35 12 minutes, 35 seconds interesting development on the uh metal side of it which is copper, silver and uh aluminium and apart from that we had 12:44 12 minutes, 44 seconds um the currencies Indian depreciating pretty sharply against the uh European and the US dollar. So that's something 12:51 12 minutes, 51 seconds that um uh which really led to an uh um to a uh to a muted performance as far as 12:59 12 minutes, 59 seconds profitability is concerned. I'm sure that this is not in line with the expectation of the market but I think that this is uh the uh the best possible 13:07 13 minutes, 7 seconds option with the revenue mix which we had and the crisis which we have to deal with at the last time. So this is uh something about uh what is the uh 13:16 13 minutes, 16 seconds factors which led um to an muted profitable a profitable grow profit growth. So that's uh that's what it is 13:24 13 minutes, 24 seconds but the cash is definitely strong. So we have at this point of fang 6,42 crores but this is without um the cash which we 13:33 13 minutes, 33 seconds got from the sale of robotics if I include that it is roughly around about 7,600 crores right so that's the um uh 13:41 13 minutes, 41 seconds overall uh strong cash position what we are in at this point of time yeah we go to the next slide so uh to deal with uh 13:50 13 minutes, 50 seconds what really um impacted the profitability of it was a granular I think um other income of course 13:58 13 minutes, 58 seconds included the uh interest which we had been getting on the advances and the cash balance which we have. So that's been increasing. So now from that if you 14:06 14 minutes, 6 seconds look at the material cost uh uh still same levels of 61.3 and 61.4 postsequentially uh but that compared to 14:15 14 minutes, 15 seconds Q125 um we are definitely up by three and a half or 3%age to be to be precise right 14:24 14 minutes, 24 seconds so that's what it is and now if you look at what it lead to the book of margin I mean higher material cost in 3.7%age 14:33 14 minutes, 33 seconds I could say I would attribute uh basically uh three um three factors to that um which is one is definitely uh 14:42 14 minutes, 42 seconds compet compion of intensity and uh and the commodity and the repeat appreciation part of it and the revenue 14:49 14 minutes, 49 seconds mix of it. So the competition and the intensity uh probably a percentage the commodity price increase and rupee 14:58 14 minutes, 58 seconds depreciation almost uh 2%age and the revenue makes the balance 1 percentage. 15:02 15 minutes, 2 seconds So roughly this is the cut between the um um between what was the material cost 15:08 15 minutes, 8 seconds um in Q1 2025 versus uh Q126 that's the sort of a stuff and personal expenses as 15:16 15 minutes, 16 seconds a percentage it remains the same but uh higher in terms of value was uh uh relating to people increase and the uh 15:26 15 minutes, 26 seconds the salary increase which happened and a slight delta of the of the later code impact on the re salary is what we have. So that's uh uh 15:35 15 minutes, 35 seconds that's how it is. But I think on the uh um on the expenses part of it so we were well positioned to uh do a larger 15:44 15 minutes, 44 seconds revenue. So we had revenue linked expenses which is slightly higher and if you look at it as we mentioned the swing 15:51 15 minutes, 51 seconds there is also a swing in the um exchange commodity exchange commodity uh losses. 15:56 15 minutes, 56 seconds So which is this time 7.5 uh impact on issues which are well known to us. So overall I think um this is a 16:06 16 minutes, 6 seconds quarter where there has been a correction uh there has been a bit of an uh unprecedented um headwind um and due 16:14 16 minutes, 14 seconds to which we could see profitability going down and revenue slightly could have been bit more higher compared to what we are doing at this point of time. 16:23 16 minutes, 23 seconds So but the good part and the more positive part of it which we are all um looking forward to um is the development 16:30 16 minutes, 30 seconds in the orders and uh which is going to give a good runway for revenues in the coming in the coming quarters. 16:40 16 minutes, 40 seconds Next slide. A bit of an color on how did the uh division how did the business segments perform. Uh so electrification 16:48 16 minutes, 48 seconds so um 36%age up right. So I think on year on year on year solid percentage is 16:56 16 minutes, 56 seconds what we see and that's more driven by uh the data centers and the um building segment uh number of orders what we are 17:03 17 minutes, 3 seconds getting from this and uh revenues also driven by backlogs but could have been still more higher that's what that's 17:12 17 minutes, 12 seconds could be something which you wish for and profitability uh 21.4 to 15.2 two 17:19 17 minutes, 19 seconds and last year we had an uh a very big data center order which we got executed in Q1 which was not there in this particular that's what we meant by uh 17:28 17 minutes, 28 seconds revenue revenue mix and more importantly the uh cost impact on account of copper and silver price which is definitely 17:35 17 minutes, 35 seconds increased um to a high level in uh e electrification segment and to add to 17:43 17 minutes, 43 seconds that depreciation so this is something which we saw But uh I think we have a backlog of 200 course 17:52 17 minutes, 52 seconds um which is executed below the next five six month 18:00 18 minutes uh motion um a motion is actually um also also grew by uh 22%. they are maintaining their quarter on quarter 18:09 18 minutes, 9 seconds growth consistently in a band of plus 20 percentage uh despite the competition intensity what they what they see and it 18:17 18 minutes, 17 seconds was driven by um orders from the uh rail segment and also the renewable and um 18:24 18 minutes, 24 seconds private industries which we also been able to do for the drives part of it so and um but there's slight decline in 18:32 18 minutes, 32 seconds exports right so but I think which will it's more um u indicated able because of the uh crisis which we had to undergo 18:41 18 minutes, 41 seconds the last month over here in in the month of March. Uh revenues 1,200 crores and 18:48 18 minutes, 48 seconds profitability at uh 12.8%age is what uh we see. So I think uh that's with 18:56 18 minutes, 56 seconds subdued and also here the material cost was definitely higher and that's also typically the same reason as what we do. 19:02 19 minutes, 2 seconds So overall if you look at um uh these factors it has it has impacted um the major product divisions of uh 19:10 19 minutes, 10 seconds electrification and motion uh to quite an extent in yeah next automation automation while 19:19 19 minutes, 19 seconds electrification and motion shows growth in orders uh automation depending on the which depends on more on private capex 19:26 19 minutes, 26 seconds and the public expenditure um is more subdued on the uh order intake uh part of it and uh but I think we have um a 19:36 19 minutes, 36 seconds good opportunity pipeline but the decision making speed is uh uh slightly slow at this point of time as what we uh 19:43 19 minutes, 43 seconds see for the human what we see. So I think good good opportunity pipeline but slow decision making is the characteristic of automation is what we 19:51 19 minutes, 51 seconds see at this point of time but we are confident uh that this will turn out to be potential orders in the in the in the quarters to come. uh revenues. So we are 20:00 20 minutes driven by um weaker order backlogs. So the revenue page is also slowing down but the profitability is higher because 20:08 20 minutes, 8 seconds of a good mix between service and uh um uh project systems and also some uh good profitability profit margin margin 20:17 20 minutes, 17 seconds realizations and the projects which are under execution and completion. So this is uh um uh the overall um view on 20:25 20 minutes, 25 seconds business and lot of backlog 2,100 course I think we we have to run it up. 20:33 20 minutes, 33 seconds So this is bit of a the model of business models what we see that business areas if you look at it as well 20:42 20 minutes, 42 seconds are now 81% we don't have robotics at this point of time robotics used to be 5%age so the 20:49 20 minutes, 49 seconds 5% but now without robotics uh slightly changed but not so 19%age to automation 20:57 20 minutes, 57 seconds and 81%age to mo and EI uh in terms of 21:03 21 minutes, 3 seconds uh offerings projects at 8 at 30 and services at uh sorry projects at seven 21:11 21 minutes, 11 seconds 81 percentage for products and 12 I mean by exports I think um it was 11 21:21 21 minutes, 21 seconds and 89 uh slightly higher because of the uh um bit of more export orders which 21:27 21 minutes, 27 seconds came in in the export revenue Yeah. So that's it. So I think um uh we could 21:36 21 minutes, 36 seconds probably try to take some questions between now and half 6 because there's been no weekend. We don't want to extend 21:43 21 minutes, 43 seconds beyond 6:30 and just in case if there are difficult questions take it off so quickly for next week. 21:52 21 minutes, 52 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 22:00 22 minutes telephone. If 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. 22:13 22 minutes, 13 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 22:18 22 minutes, 18 seconds Participants are also requested to please limit your questions to two per participant. 22:23 22 minutes, 23 seconds The first question is from the line of Renu Puggalia from Capital. Please go ahead. 22:29 22 minutes, 29 seconds Yeah. Hi. Uh good evening team. Uh my first question is on the private sector investment revival that you were expecting um sometime around early this 22:37 22 minutes, 37 seconds calendar year. Uh so do you see and as you have briefly highlighted but do you see the customer sentiments um getting materially impacted on uh decision 22:46 22 minutes, 46 seconds making and closure uh beyond the process automation to even the core business segment and also any likely budgetary 22:54 22 minutes, 54 seconds impact on cash flows um can that derail or postpone the infra spend which is in the moderate growth um category that you 23:01 23 minutes, 1 second have highlighted in terms of order flow that's first question and second would be on the recent papers that you've announced um how do we see the export 23:09 23 minutes, 9 seconds portfolio ramping up and our exposures to data centers uh in terms of local product footprint uh expanding uh with 23:16 23 minutes, 16 seconds the recent localization plans that we have announced on the new capex. 23:23 23 minutes, 23 seconds Okay. Uh so reu I think um the first question is around the markets. I think we have uh on the private capex we have 23:32 23 minutes, 32 seconds uh uh Kiran and Ganesh who could give an elification view of how the private capex happening and we have Balaji and so for the motion piece of it I think 23:40 23 minutes, 40 seconds they will al their commentary will also cover in a way directionally just because we don't have some news on the line um so I think we will try to answer 23:48 23 minutes, 48 seconds that from this right on the capex part of it which is the $75 million what we said for and not 75 that's for the total 23:56 23 minutes, 56 seconds aping that has probably mess up. So, uh we will I will give you a color at the end. So, Kiran, 24:04 24 minutes, 4 seconds if you would like to take this question and then we pass it on to Ganesh. 24:08 24 minutes, 8 seconds Thank you. Thank you very much for the question. Um what we are looking at is a quite a robust scenario in terms of 24:15 24 minutes, 15 seconds investment in Hello. 24:31 24 minutes, 31 seconds Does that answer your questions? Reu, I could not hear anything. 24:41 24 minutes, 41 seconds I'm not I couldn't hear the management. 24:45 24 minutes, 45 seconds Please stay connected. I will check the connection for management. 25:52 25 minutes, 52 seconds There's one. Heat. Heat. 26:13 26 minutes, 13 seconds Baby 26:31 26 minutes, 31 seconds got me. 26:38 26 minutes, 38 seconds Ladies and gentlemen, thank you for patiently holding. We have management reconnected. Thank you. And over to you, sir. 26:47 26 minutes, 47 seconds Thanks. We lost a bit of an connection in between uh technical glitch. Right. 26:52 26 minutes, 52 seconds So, but in our thoughts, we are now gathered together as to what we need to answer. Over to you, Ken. Back to you. 26:58 26 minutes, 58 seconds Thank you. Thank you. I think we were speaking about private capex. private capital and then I was talking about data centers as well. Uh I was also 27:06 27 minutes, 6 seconds talking about hypers square and collocation both getting into investments and we are able to get some very good investments coming in at the 27:14 27 minutes, 14 seconds same time orders for us as well. I also talking about railways and renewables. 27:18 27 minutes, 18 seconds Rail we are talking about both in terms of building stocks at the same also talking about the station development and innovation project extremely good 27:27 27 minutes, 27 seconds inflow of effect. Uh we're also looking at renewables specifically I was talking about the best systems which is uh 27:34 27 minutes, 34 seconds extremely promising for us and we are able to get great orders in the first quarter. Uh the last um point I wanted to make is on the building side quite 27:44 27 minutes, 44 seconds mixed scenario at this point of time on the side are seeing a very good 27:50 27 minutes, 50 seconds of uh numbers but at the same time residential side while the mid and the lower end is a bit of a challenge but at 27:58 27 minutes, 58 seconds the premium segments we see a very good offer so that's what maybe Ganesh if you can add your thoughts 28:05 28 minutes, 5 seconds uh no Kan you almost covered the segments which are looking promising like what you say data center is uh uh 28:12 28 minutes, 12 seconds very strong renewables is also coming up very strong and it's reflecting in our order book also and the uh opportunity 28:20 28 minutes, 20 seconds pipeline uh which uh uh which is getting shown and there is a private investment which is coming in even the industry 28:27 28 minutes, 27 seconds side we have seen uh couple of very strong inquiries which are in the pipeline so we we are very optimistic uh 28:35 28 minutes, 35 seconds about uh the investment which is coming from the parish side Yeah, very good question if you're there. 28:44 28 minutes, 44 seconds Yeah. Uh from an automation side, firstly I just want to qualify uh that there is a certain uh life cycle and of 28:52 28 minutes, 52 seconds a project uh especially in the early stages and it follows a pattern and typically automation comes uh towards 28:58 28 minutes, 58 seconds the uh the end uh of ordering. Uh uh uh we see a strong uh pipeline. Uh however 29:08 29 minutes, 8 seconds uh there are uh industries that are dependent upon uh petroleum products as their raw materials. Uh there is a 29:14 29 minutes, 14 seconds little bit of uh stress. Uh uh uh we see that this could be a temporary one. uh having said that from both uh uh public 29:22 29 minutes, 22 seconds sector and uh private sectors uh the inquiry bank uh is quite strong and those inquiries which is already issued 29:30 29 minutes, 30 seconds uh they are proceeding and unfortunately uh due to the nature of uh uh the stage uh I'm not able to uh uh call out those 29:40 29 minutes, 40 seconds uh specific uh segments but uh there are uh that is very strong uh pipeline and and quite a strong uh movement towards 29:48 29 minutes, 48 seconds closure So, so can we conclude that basis? Um, while you have seen execution headwinds 29:56 29 minutes, 56 seconds because of the West Nature crisis, the ordering momentum or process has not seen any derailment or postponement from customers because of the ongoing 30:04 30 minutes, 4 seconds inflationary trends or the West Nature crisis. Is that right or there is some impact? That was my question. 30:13 30 minutes, 13 seconds You have looked at our order growth, right? So that itself very clearly reflects the way we are in the position now on electricity side we 30:22 30 minutes, 22 seconds so that shows the kind of robustness in terms of India and that's where we are also able to get a portion of that file 30:31 30 minutes, 31 seconds and that's the reason why we are showing okay maybe request reo to please rejoin 30:39 30 minutes, 39 seconds the que uh so I think there was one question which reu had raised about the investment how much is uh going to help 30:47 30 minutes, 47 seconds us. I think uh as you would have already said in the past ADB sees that there is an definitely a market which is 30:54 30 minutes, 54 seconds developing uh for the products and services what we are manufacturing. So they the future market opportunities to serve the market future market opportunities. 31:06 31 minutes, 6 seconds So this is basically coming from dry products uh expansion. Uh we have uh then uh the service expansion for uh 31:15 31 minutes, 15 seconds motion and also uh in 31:22 31 minutes, 22 seconds will have the u the smart product manufacturing also increasing quite extensively going forward right so 31:30 31 minutes, 30 seconds that's that's the plan what we have and I think you we will hear more as we uh go into the few quarters as and as these 31:38 31 minutes, 38 seconds projects are getting commissioned Thank you. The next question is from the line of Amit Mahawar from UBS. Please go ahead. 31:49 31 minutes, 49 seconds Yeah. Hi Sh. I just have two questions. 31:51 31 minutes, 51 seconds First is um um do you think this is going to be a year where um you know we will have a lot of lumpy orders um you 31:58 31 minutes, 58 seconds know which is basically going to be part of the intake and uh more importantly uh uh and you can specify if this is going 32:06 32 minutes, 6 seconds to be a strong uh you know high double growth year for orders. Um and second is on profitability. Um if I look at the 32:14 32 minutes, 14 seconds parent commentary uh obviously E was a very very strong indicator and we also saw that in you know some bit on in our 32:22 32 minutes, 22 seconds results in terms of topline group um uh do you think uh uh the profitability uh you know uh this year can be 32:31 32 minutes, 31 seconds significantly better than last year and I understand the short cycle weakness is still uh you know holding up uh uh so 32:40 32 minutes, 40 seconds any any color on the profitability I know we don't give guidance But um you know and we have variations in this quarter but the balance of the year any 32:48 32 minutes, 48 seconds color on profitability because I can see the a lot of initiatives by the parent. 32:52 32 minutes, 52 seconds So I just want to understand how is India positioned. Thank you. 32:57 32 minutes, 57 seconds Okay. There's no limited knowledge of how the parents are profitable. uh if you understand they have the balancing power of uh forex gain in countries 33:06 33 minutes, 6 seconds which are exporting right to economies which have a weaker depreion currency and that's an uh compensating upside 33:15 33 minutes, 15 seconds right so which whereas we don't have so that's an intrinsic advantage what they have and also their growth if you look 33:22 33 minutes, 22 seconds at it in the which 33:29 33 minutes, 29 seconds is also in the supply and so there the ability to uh get a premium is far far higher right so therefore what I mean to 33:37 33 minutes, 37 seconds say is the yard stick to of the global uh performance to compare the India uh performance is something I think we 33:45 33 minutes, 45 seconds cannot walk it through right so so that's that's uh this thing so coming to um India performance as such uh I mean 33:55 33 minutes, 55 seconds going we have in backlog of whom course I think we we'll have to 34:02 34 minutes, 2 seconds execute. So what is uh what is probably which we will have the word is around 34:09 34 minutes, 9 seconds the um um the abdop capacity uh absorptions which will really help us going forward. That means the velocity 34:18 34 minutes, 18 seconds of revenue conversion has to increase depending upon what the customer take is right. But whereas if you look at the 34:25 34 minutes, 25 seconds pricing um uh the in support to get more is something which is now saturated 34:33 34 minutes, 33 seconds compared to the right. So, so now you have a lever of uh um uh volume which 34:40 34 minutes, 40 seconds could pull up the margins but you have the uh other impacts of the forex and the commodity which is not in our control which is basically more than 34:49 34 minutes, 49 seconds offsetting what you can also do on an um volume basis. So I think what we expect is that I think we should be able to 34:57 34 minutes, 57 seconds mitigate this risk of forex and um uh you know material volatility at this point of time with and volume which we 35:05 35 minutes, 5 seconds see right but I think we need to work more on how the market develops uh in terms of accepting uh more price 35:13 35 minutes, 13 seconds increases to the market. So that which is more a color which I could give uh at this point of time. Can I speak in one small one? 35:22 35 minutes, 22 seconds Yeah. 35:24 35 minutes, 24 seconds Yeah, sure. Yeah, sure. Sure. So, uh you know when we talk to channel partners across you and your peers, there's a 35:31 35 minutes, 31 seconds very clear short cycle weakness as we speak for different reasons. It's been there for two years. Do you think this is a year where your base business can 35:39 35 minutes, 39 seconds grow uh in in top line by 15% and large order I can already see last two quarters are very very strong and we 35:47 35 minutes, 47 seconds have a good pipeline. So collectively the intake uh you know for it to move towards a different run rate. Do you 35:56 35 minutes, 56 seconds think this is too early for us to comment or in next two three quarters uh we can see base orders uh you know shifting because there is a restocking 36:04 36 minutes, 4 seconds cycle for last two years then comment on base business uh sugar that will be helpful. Thank you. 36:10 36 minutes, 10 seconds So I think based business we do 9% not the 15% of what we see right so that means we definitely see the channel 36:18 36 minutes, 18 seconds partners I don't spoken to I think what we see is that there is an market uh 36:25 36 minutes, 25 seconds velocity which is there it's not that market is bad but I think it's more about the timing of it right so it could 36:33 36 minutes, 33 seconds be bit of as you rightly said a choppy bit situation but the good part is that there are opportunities and we confident 36:40 36 minutes, 40 seconds these offers will convert into thank you and good luck to thank you. 36:49 36 minutes, 49 seconds Thank you. The next question is from the line of Parikhit Kandapal from HDFC securities. Please go ahead. 36:56 36 minutes, 56 seconds Hi friends, my first question is what kind of inflation in inflationary driving actions we have taken across businesses to mitigate the impact of 37:05 37 minutes, 5 seconds inflation. can quantify the price has not taken across the inflation. Okay. 37:16 37 minutes, 16 seconds Inflation uh a commodity inflation. 37:20 37 minutes, 20 seconds Okay. So we are a product business and product organization. Uh that's what it is. If you look at it we have more than 37:27 37 minutes, 27 seconds uh 70%age of our business is products always. I mean um even though we call it a short cycle it will have some lag. So 37:35 37 minutes, 35 seconds therefore we always have uh a two bag to impact the price. 37:43 37 minutes, 43 seconds So that's something which we as a business take a strategic decision uh to revise the prices. So to give add more 37:50 37 minutes, 50 seconds color to it I think I could invite Kiran to give a bit of more insight on as to how do you manage these price increases. 37:58 37 minutes, 58 seconds Absolutely. At the end of the day any price increases we manage what we have done uh is to go 38:05 38 minutes, 5 seconds for a price increase. We've already gone for two price increases market is public anyway and that's the way and as said 38:14 38 minutes, 14 seconds there is a lag between the prices which are impacting the cost which are impacting and the price increase in the market and that's what we need to manage 38:21 38 minutes, 21 seconds and that's what we have done already two increased now. 38:27 38 minutes, 27 seconds Can you point out how much the percentage increase? 38:32 38 minutes, 32 seconds So that's something which is very uh uh you know very sensitive for for us to diverse. I don't think it's an app uh answer which you could say please. 38:43 38 minutes, 43 seconds Okay. Second question is on data centers. Uh so on data centers now I mean we are maybe going from 2 gawatt to maybe 10 gawatt in four to five years 38:52 38 minutes, 52 seconds and there would be a significant ramp up from the hyperscaler side. So I think initially you mentioned you did mention of our four five product lines there. So 39:00 39 minutes just wanted to understand how is our time increasing at hyperscalers gain market share in this entire right and also if you can understand what are you 39:08 39 minutes, 8 seconds doing in the substation side of it can I if you 39:17 39 minutes, 17 seconds yeah yeah uh see as you are very rightly said uh quite a lot investment which is happening on the data center uh uh not 39:25 39 minutes, 25 seconds only in the hypers scale but even the polo and the age data center and our portfolio is very well positioned in 39:31 39 minutes, 31 seconds fact across the electrification uh as well as all other products to really take on into uh this particular job and 39:39 39 minutes, 39 seconds we are also actually u matching the capacities as per the requirements because many of these hyperscalers has 39:46 39 minutes, 46 seconds already signed right contracts with us and we are very well positioned to capture this particular market. Uh in fact we are building up the capacity to meet uh their demand. 39:59 39 minutes, 59 seconds Um substation time what are we exactly going to do and also the opportunity in terms of time what is like our per meter what opportunity accessible opportunity 40:07 40 minutes, 7 seconds now with the jump on the data center 40:17 40 minutes, 17 seconds on the substation side on the data center what is total content and why station of course is not total content 40:24 40 minutes, 24 seconds of AB on data per megawatt per me if the capex is 80 90 crores or 50 to 50 to 100 crores what 40:32 40 minutes, 32 seconds will be per megawatt opportunity there and onion side what are exactly going to be so as we have discussed in past and also 40:41 40 minutes, 41 seconds in a slide today that uh we have different opportunities in the data center which is a direct opportunity 40:48 40 minutes, 48 seconds wherein customer buys the power supply uh bringing a medium voltage u input to 40:54 40 minutes, 54 seconds the to where they want to uh you know set up the data center. So that medium voltage stage you know kind of switch 41:03 41 minutes, 3 seconds gear and the and the associated equipment that's where our scope is and after that it gets stepped down and goes into voltage distribution to the power 41:12 41 minutes, 12 seconds rack or rather the computer racks that's the another scope and then up by the uh 41:19 41 minutes, 19 seconds by the UPS and also in the utilities and ancillaries we have drives and motors going so that's the typical scope we have in India as well as globally. 41:30 41 minutes, 30 seconds Uh yes uh we we do know what is a factored uh you know scope per megawatt 41:38 41 minutes, 38 seconds but this is something we don't publicly talk about uh but yes uh it's a substantial scope especially when you 41:46 41 minutes, 46 seconds have the larger gigawatt opportunities I think the size it's a very large large 41:54 41 minutes, 54 seconds uh uh opportunities that we see so so far we have executed term contracts with the hyperscalers. I think the speed at 42:02 42 minutes, 2 seconds which they are executing it and also at the quality they are executing it, the demand of our products is preferred uh 42:09 42 minutes, 9 seconds in the marketplace and that's what we are enjoying at this point of time in India as well India. Uh so I'm sorry I'm 42:17 42 minutes, 17 seconds not able to give you a factor but we do know the factor. Yeah. What's the percentage of order book current order book in data center that data if you can 42:24 42 minutes, 24 seconds share the total order book what is the percentage of data data center order data center orders about 12 to 13 42:33 42 minutes, 33 seconds percentage okay sure sir thank you thank you it's not a fixed percentage it does vary 42:41 42 minutes, 41 seconds uh in a band based on when the order gets booked and what the size of the size of the orders and the and the book so it can vary between 12 to 12 to 12 to 42:51 42 minutes, 51 seconds 12 to 16% of water. Okay. Yeah, please continue. 42:56 42 minutes, 56 seconds Thank you. The next question is from the line of Atul Tari from JP Morgan. Please go ahead. 43:02 43 minutes, 2 seconds Yes, sir. Thank you. Uh sir, um in the month of April and May, have you noticed any incremental weakness over the month 43:10 43 minutes, 10 seconds of March for your short cycle orders because of the customer sentiment around war and fuel prices etc. 43:20 43 minutes, 20 seconds So as we do 90% of our business is in India and 10% is exports. Quite frankly 43:27 43 minutes, 27 seconds last year there was a weakness in the market for different reasons. Uh but those few two two or three quarters we 43:34 43 minutes, 34 seconds saw it but starting uh last year and what we are experience we 43:41 43 minutes, 41 seconds are really experiencing robust demand at the moment. uh quite frankly it is uh it is not adding to our 43:50 43 minutes, 50 seconds concerns uh directly what's happening in the west Asia at the moment if there is a lag effect that comes up uh in the 43:59 43 minutes, 59 seconds quarters later on of course we will share with you but right okay good to know and so my last question is on price hikes that you 44:07 44 minutes, 7 seconds mentioned so when you when you're taking these price hikes is it are those heights acceptable to customer and despite the price hikes are you able to 44:16 44 minutes, 16 seconds kind of broadly maintain your market share uh for the respective products. So we we have had quite a good experience 44:23 44 minutes, 23 seconds you know uh uh during covid period uh wherein a lot of supply chain disruptions came and we had to pass on 44:31 44 minutes, 31 seconds uh uh some cost to the market and which we did and now one thing one phenomena we have understood and clients have 44:39 44 minutes, 39 seconds understood precoid and postcoid is that covid the customers have become more uh 44:46 44 minutes, 46 seconds kind of recipe they they're more um kind of um uh you aligned with the thought 44:55 44 minutes, 55 seconds process that when the market disturbances take place they have to participate in the market with the suppliers to get the high quality 45:03 45 minutes, 3 seconds products. So one is that the demand for the high quality products like we is quite high and the customers appreciate it. But whenever there is a inflationary 45:13 45 minutes, 13 seconds issue or dis you know dis where the displacement of the supply chain takes place whenever we go with the better 45:21 45 minutes, 21 seconds price in the marketplace I think customer responds positively. So that's where our team is quite sensitive to it. Not that we have to pass on everything. 45:29 45 minutes, 29 seconds We also optimize with the productivity in house and then whatever we cannot hold on our customers are able to 45:37 45 minutes, 37 seconds participate on that and the increases that we carry it out is uh basically calibrated around that. Yeah. 45:44 45 minutes, 44 seconds Okay. Good to know. Thank you. 45:48 45 minutes, 48 seconds Thank you. The next question ladies and gentlemen before we take the next question we requested you every participant to please limit your 45:56 45 minutes, 56 seconds question to one per participant. The next question is from the line of Mohit Kumar from ICSA securities. Please go ahead. 46:03 46 minutes, 3 seconds Yeah, good evening and thanks for the opportunity. Uh I have uh my first question is do we have escalation 46:11 46 minutes, 11 seconds clauses in long cycle orders like metro rail which is signed in this quarter? 46:19 46 minutes, 19 seconds Escalation for the escalation of commodities like commodity inflation if it happens are there 46:26 46 minutes, 26 seconds escalation clauses which protect us yeah moit I think it's a very very good question thanks for that okay so I think 46:35 46 minutes, 35 seconds um there are escalation classes there are price variation classes and all um contracts which we do uh on a long-term 46:42 46 minutes, 42 seconds basis but we should understand these price escalation classes come may also come with a ceiling right after which it is there. So it's basically about risk 46:52 46 minutes, 52 seconds mitigation and how fast we execute this particular contracts. But to answer to your question, yes, we do have um price 46:58 46 minutes, 58 seconds escalation process in our contracts even when you signed with the private parties, right? Is that right? Yes. 47:07 47 minutes, 7 seconds If I can ask you one more question. Are you seeing the conversation happening for large data centers of 100 200 47:14 47 minutes, 14 seconds megawatt size or do you think it's too early and expected to materialize as we enter F20 F27 and F28 47:22 47 minutes, 22 seconds or F28 F29 person to give a correct is 47:31 47 minutes, 31 seconds what the question is are you seeing the conversation happening for very very large data centers 47:38 47 minutes, 38 seconds of funded 200 megawatt quantum or do we think it's too early and those conversation will start in maybe CY27 and CY 28? 47:50 47 minutes, 50 seconds No, it has already been started because uh whatever the hyperscalers have placed order on in the previous years, those executions are ongoing and even uh 47:58 47 minutes, 58 seconds whatever contracts now which we are signing or discussing, there is already a delivery schedules which has been 48:05 48 minutes, 5 seconds given uh for the 26 27 and even up to 28. So uh conver conversation is already 48:12 48 minutes, 12 seconds uh mean going on. So I I don't see any delay into that for the very large. Sorry to interrupt. May we request Mr. 48:21 48 minutes, 21 seconds Kumar to please rejoin the queue. 48:23 48 minutes, 23 seconds Thank you. Ladies and gentlemen, we would request you to please limit your question to one per participant. The next question is from the line of Punit from HSBC. Please go ahead. 48:36 48 minutes, 36 seconds Yeah, thank you so much sir. 48:39 48 minutes, 39 seconds You know in the beginning of the conversation you talked about 1% impact from competition intensity. Can you give 48:46 48 minutes, 46 seconds some more color on what are you seeing in the market and in what segments? 48:53 48 minutes, 53 seconds We have 16 distinct businesses and if you pick up each and every business they have a very different profile of 49:00 49 minutes competitors. So if I collage it for the whole company it become a very large uh kind of a country. So I would say yes 49:09 49 minutes, 9 seconds you're right there is a uh competition intensity as the size of the market grows. You have participation coming 49:16 49 minutes, 16 seconds from Japanese, you have participation coming from Koreans, some Chinese. So you naturally have not non-traditional 49:24 49 minutes, 24 seconds players which uh uh they they're increasing the marketplace. So it's not the majority of our market segment. It's 49:32 49 minutes, 32 seconds on the certain market segments wherein it is more 49:39 49 minutes, 39 seconds uh providing on the competition side and if you can just give some more color 49:47 49 minutes, 47 seconds on how should one think about the $75 million capex in terms of phasing and when do you expect it to capitalize? It 49:55 49 minutes, 55 seconds is about expanding our capacities uh both in the development as well as uh you know certain businesses which we had 50:02 50 minutes, 2 seconds they were small but now they have grown to a size that they require larger uh places to produce more and also we have 50:10 50 minutes, 10 seconds introduced some new project new uh product pipelines which are localized and they uh they also have not only mandate for India but they also have 50:19 50 minutes, 19 seconds mandate for exports. So th that those are the places when uh this expansionary um uh expansionary investments are being 50:28 50 minutes, 28 seconds carried out for us and this is a continuous process and we will we will see that in future there's always a run rate for it. Yeah. 50:37 50 minutes, 37 seconds That's all I must say. Thank you so much. Thank you. 50:41 50 minutes, 41 seconds Thank you. Participants are requested to only use handsets while asking a question. 50:48 50 minutes, 48 seconds The next question is from the line of Sam Takur from Amit Capital. Please go ahead. 50:53 50 minutes, 53 seconds Hi, thanks. Uh, can you give us the break up of volume and price between the groups? Is it possible? 51:02 51 minutes, 2 seconds Volume and price mix volume and price. 51:08 51 minutes, 8 seconds I didn't uh volume and price mix of what? 51:12 51 minutes, 12 seconds The growth I mean within if you sales grow within how much is the volume? Just to interrupt you Mr. Taper. Um sir can 51:20 51 minutes, 20 seconds you please check your handset mode? We are unable to hear you clearly sir. 51:29 51 minutes, 29 seconds We have lost the line for the participant. We'll move to the next question which is from the line of Rahul Gazare from Mcquaryy Capital. Please go ahead. 51:38 51 minutes, 38 seconds Yeah. Hi uh good evening. uh so we have seen a sharp decline in margin you know over the last two years and we understand this is a combination of uh 51:47 51 minutes, 47 seconds QCO forex and now the Gulf War being the latest variable now based on your assessment and the on the and on the 51:54 51 minutes, 54 seconds back of the price hack that you have taken when do you think we can see AB going back to uh you know 18 19% or if 52:02 52 minutes, 2 seconds that is a two-step process when do we see uh you know the company going back to 16 17% uh margin 52:12 52 minutes, 12 seconds Okay. So I think um uh I think we need to deal with the problems one at a time right. So but unfortunately the problems 52:19 52 minutes, 19 seconds keep coming it doesn't seem to be ending. So, so but having but having uh said that I think um uh there are 52:27 52 minutes, 27 seconds continuous efforts to mitigate this particular risk in both the market. It's a combination of both volume and pricing and also the inflation being able to 52:36 52 minutes, 36 seconds take the inflation of commodities and repeat. It's a very bit of an u uh I would say not a simple uh game but work 52:46 52 minutes, 46 seconds to do right. So I think uh all efforts are on. We also aspired to be um in the so-called once we have reached 15 52:52 52 minutes, 52 seconds percentage and uh we have been we said that we will be there 12 at 12 is what we ended up last year. So that it's um 53:01 53 minutes, 1 second that is actually uh and good you know range to be in as what we see with the current challenges what we are what is ongoing in the market. 53:20 53 minutes, 20 seconds Mr. Rahul is the is your answer is your question answered. 53:24 53 minutes, 24 seconds Yeah. But do you see Yeah. Uh thanks. So do you see uh you know the entire year will be subdued in terms of profitability based on you know the 53:31 53 minutes, 31 seconds backlog that you'll have and the limited price hike that you have been able to take. 53:36 53 minutes, 36 seconds So normally we don't give any uh guidance about what could be the future right. No uh the no I'm not looking at 53:44 53 minutes, 44 seconds guidance you know this is your cost and you have taken X price you know so price high so have you been able to take price hike higher than the cost you know 53:52 53 minutes, 52 seconds that's the only thing I'm looking at but is there a short cycled order the price which you take today is not valid 53:59 53 minutes, 59 seconds next quarter because the the commodity and the forex faster than the price what we have 54:06 54 minutes, 6 seconds okay so regular price I give the answer okay because I think there is always a lag between what the inflation and the market is behaving on the input cost. 54:15 54 minutes, 15 seconds These are the the price which you could take. We have taking into account the compens competition, sympathy, intensity and the market uh market dynamics. 54:28 54 minutes, 28 seconds Thank you very much. Thank you. 54:31 54 minutes, 31 seconds Thank you. The next question is from the niner Sam Takur from Ambit Capital. Please go ahead. 54:37 54 minutes, 37 seconds Uh hi. Thanks. uh I got disconnected earlier. So in uh data center we said it is 12 to 14% of backlog. So it's mostly 54:45 54 minutes, 45 seconds electrification if I'm not right should be so like 24 25% of the backlog in electrification and uh is that margin 54:52 54 minutes, 52 seconds negative should be margin negative. So mix can be uh positive going forward. Is that the right way? 55:01 55 minutes, 1 second You mean what is the percentage in electrification? I think I I haven't we haven't calculated top of our head but we given you the on the company basis 55:08 55 minutes, 8 seconds but yes it's a substantial in the books of our uh distribution solution led by Ganesh and also on the smart product uh 55:17 55 minutes, 17 seconds business smart power uh uh product group as well. So yes uh this is definitely positive for our books as well as on the margin uh side. Yes. 55:29 55 minutes, 29 seconds Okay. uh I got estimated earlier so I'm not sure whether it's a repeat question but uh any split on the price and volume 55:37 55 minutes, 37 seconds in the growth was it mostly okay so I think this is a fourth quarter so we have another four quarters to go 55:45 55 minutes, 45 seconds probably then it will be in a good position to say that what could be an aggregated uh impact of this so I think we 55:53 55 minutes, 53 seconds okay okay this last question in data centers generally get the base orders generally get a large orderly. 56:03 56 minutes, 3 seconds We have both. Uh there are two ends of it. One is you have the hyperscaler asking for a very large scale power supply into it. But then also you have 56:12 56 minutes, 12 seconds the partners and integrators who supply into the uh you know the mid-level and colo colo data centers and they supply 56:21 56 minutes, 21 seconds power supply into those. So those are not as large but that's where you know we are able to address different market segments in the data center. 56:31 56 minutes, 31 seconds Okay. Thank you. Thank you. That that was all from Thank you. 56:36 56 minutes, 36 seconds Thank you. The next question is from the line of Subit Metra from Noama. Please go ahead. 56:43 56 minutes, 43 seconds Good evening and thank you for the opportunity. Uh my question was on the margin side. We've seen the impact over the last four quarters also because of 56:52 56 minutes, 52 seconds the QCO impact and my understanding was that the QC impact should probably taper off over the next one two three quarters. So just wanted to get an 56:59 56 minutes, 59 seconds understanding that with a price hike that's already been taken and hopefully with the QCO impact going away probably 57:07 57 minutes, 7 seconds over the next two months. Uh can we see some recovery in margins going on? 57:14 57 minutes, 14 seconds So yes, I think your answer is yes and that's why we come every every morning uh to office to make sure that that happens the the the what what our 57:24 57 minutes, 24 seconds observation over a period of time is that whenever the markets are disturbed whether it is because of the covid reasons or some u reasons these are not 57:33 57 minutes, 33 seconds very good uh uh things because what you require is you require certain amount of certaintity and linearity for businesses 57:40 57 minutes, 40 seconds to operate based on how the business models have been constructed. But yes, last year because of tariffs, 57:47 57 minutes, 47 seconds uncertaintity and then QCO and this year now whatever is going on West Asia, there is some kind of a a disturbance 57:55 57 minutes, 55 seconds that comes to the linearity. The moment things stabilize, I think given our equation with the gross margins we get 58:03 58 minutes, 3 seconds out of the market and we execute if we do it on top of the sable supply chain. 58:09 58 minutes, 9 seconds I think uh you have seen that whenever that happens we have a a good margin uh availability into our business right 58:19 58 minutes, 19 seconds thanks thanks so it's m we have to we have to allow we have to allow s little bit of sustained period of uh stability not so much uh 58:28 58 minutes, 28 seconds variations uh every few quarters yeah no understood understood thanks thanks for a detailed explanation just one last 58:36 58 minutes, 36 seconds question from my side on the data center bit uh you While we are hearing of a 2 gawatt annual status is what the 58:44 58 minutes, 44 seconds government is targeting. Are you seeing the annual ordering now in that 2 gawatt range? Because our understanding was that the current bidding pipeline is 58:52 58 minutes, 52 seconds probably somewhere between 500 to 700 megawatt. And secondly, we do see we do see it in the project pipeline that buildup is there. Yes. 59:02 59 minutes, 2 seconds Perfect. And would you be also catering to the uh overseas market for data centers uh where you produce in India and supply it to four data centers overseas. 59:13 59 minutes, 13 seconds So we have organization all over the world and we have capacities to serve but right now you're right the demand and the global system is quite high. So 59:22 59 minutes, 22 seconds there are certain specific products uh which our global uh global uh uh you know businesses pick up from India and yes we do participate in that. 59:33 59 minutes, 33 seconds Perfect sir. Thank you so much. 59:37 59 minutes, 37 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. TK Shrider for closing comment. 59:47 59 minutes, 47 seconds Thank you. Thank you very much. Thank you everyone for joining this particular call at a very short notice but we thought that we should complete it immediately because uh we have some extraordinary results to tell about it. 59:58 59 minutes, 58 seconds So I think we'll again definitely connect uh in the next quarter and in case in the between if you have any queries anything which uh um you need to 1:00:07 1 hour, 7 seconds know more uh feel free to drop a line to us we will answer to your queries. Thank you very much and to the team who could join the call. 1:00:17 1 hour, 17 seconds Thank you on behalf of ABB India Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.