Amber Enterprises India Limited — Q3 FY26

Amber Enterprises India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PaJ0lftXYR4 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Umber Enterprises India Limited Q3 and 9 months FI26 earnings 0:08 8 seconds conference call. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jazbir 0:31 31 seconds Singh, executive chairman, CEO and whole time director of Amber Enterprises India Limited. Thank you and over to you sir. 0:41 41 seconds Hello good morning everybody on the call today I'm joined by Mr. Daljit Singh our remdi Mr. Sudir Gaul uh group CFO and 0:49 49 seconds Mr. Sanjayora wholetime director of Elgen Electronics. We have applauded our quarterly presentation on the exchanges 0:56 56 seconds and I hope everyone had an opportunity to go through the same. We extend our appreciation to the honorable finance 1:04 1 minute, 4 seconds minister for the enhanced outlay of rupees 40,000 crores towards the ECMS scheme. This scheme will serve as a 1:12 1 minute, 12 seconds catalyst for accelerating the growth of a robust electronics ecosystem in our country and creating significant employment opportunities. 1:21 1 minute, 21 seconds Further, we extend our sincere gratitude to Ministry of Electronics Mighty for granting approval under the 1:28 1 minute, 28 seconds ECMS scheme for ascent K circuits HDI PCB application and Shoguni Technocrats multi-layer PCB application. These 1:37 1 minute, 37 seconds approvals are in addition to the earlier clearance received for Ascent's multi-layer PCB application. The expansion reinforces our long-term 1:45 1 minute, 45 seconds commitment to strengthening India's Arun Nerba in electronics manufacturing ecosystem. We are pleased to share that 1:53 1 minute, 53 seconds land allotment of 16 acres have been secured in Javer near new Noida airport for SNK circuit to establish 2:01 2 minutes, 1 second state-of-the-art manufacturing facilities for HDIPCBS and we look forward to shortly do groundbreaking to 2:08 2 minutes, 8 seconds commence construction. Additionally, Umber Enterprises has been allotted 100 acres of land uh in Java airport near 2:18 2 minutes, 18 seconds New Noa airport enabling the company's future expansion plans. We extend our gratitude to the government of Uttar 2:25 2 minutes, 25 seconds Pradesh for fast cabinet approvals of both projects and timely allotment of land parcels. Let me now take you through the quarterly performance. 2:35 2 minutes, 35 seconds Consolidated revenue for the quarter stood at 2,943 crores reflecting a growth of 38% over 2:42 2 minutes, 42 seconds previous year. Despite weak underlying room AC industry, our operating aida for the quarter stood at rupees 247 crores growth of 53%. 2:54 2 minutes, 54 seconds Pat before exceptional one-time impairment of Shivalik grew by 128% to 84 crores. 3:04 3 minutes, 4 seconds Let me now take you through the divisional performances. 3:08 3 minutes, 8 seconds Firstly on the consumer durable division. The consumer durable division recorded revenue growth of 27% in quarter 3 FY26 and aida growth of 22%. 3:20 3 minutes, 20 seconds The growth is driven by the diversified product offering adding wallet share within existing customers expanding 3:27 3 minutes, 27 seconds product portfolio. The roomy industry has transitioned to the revised higher and efficiency be star rating norms 3:36 3 minutes, 36 seconds effective 1st January 2026 marking a key shift toward enhanced energy performance and sustainable cooling solutions and 3:45 3 minutes, 45 seconds the quarter witnessed a channel filling ahead of B rating upgrade. We continue to deepen and strengthen our customer 3:52 3 minutes, 52 seconds base both in room AC and commercial AC during this quarter. We are cautious about sharp surge in commodity costs and 4:01 4 minutes, 1 second currency depreciation. While we are navigating these challenges, the pass through will happen with a quarterly lag 4:08 4 minutes, 8 seconds as we have seen earlier. On the outlook, we believe industry will be flattish this year while we continue to remain 4:16 4 minutes, 16 seconds optimistic that this division should grow in the range of 13 to 15% for the fullear basis. 4:23 4 minutes, 23 seconds Coming to the electronics division, Ilgen purchased 80% stake in Shoguni Technoarts, a puna based printed circuit 4:31 4 minutes, 31 seconds boards manufacturer with capabilities across single-sided, multi-layer and flex PCBs. Shoguni brings a sizable 4.5 4:41 4 minutes, 41 seconds lakh square meter capacity boost and broadens division reach to diverse customer base spanning across automotive 4:49 4 minutes, 49 seconds medical industrial power and other segments coupled with ascent expansion 4:56 4 minutes, 56 seconds JV with Korea circuit and shoguni lays a strong foundation to emerge as India's most comprehensive printed circuit board 5:04 5 minutes, 4 seconds manufacturer offering solutions from single layer PCBs to advance HDI products across the value chain. 5:12 5 minutes, 12 seconds Further strengthening its position in high value industrial automation segment. 5:18 5 minutes, 18 seconds Ilgen has increased its holding in Unronics Israel taking its current stake to 45.5%. 5:25 5 minutes, 25 seconds Now moving to the performance, the electronics division continued its growth momentum with revenue of 845 cr 5:34 5 minutes, 34 seconds reflecting growth of 79% driven by printed circuit board assembly vertical 5:40 5 minutes, 40 seconds PCBA bare PCB board PCB and new additions of in power electronics and automation electronics. The division 5:49 5 minutes, 49 seconds recorded a bida of 88 crores recorded growth of 157% despite the margin pressure in the bare 5:58 5 minutes, 58 seconds PCB vertical. The PCB vertical continues to face headwinds of CCL and gold price 6:06 6 minutes, 6 seconds spike and as a tier 2 B2B supplier our ability to pass on comes with an 6:12 6 minutes, 12 seconds inherent lag of almost 1 to 1.5 quarters and we are confident to pass on these to 6:19 6 minutes, 19 seconds our customers. Looking ahead driven by strong growth momentum and portfolio of high value margin accretative products 6:27 6 minutes, 27 seconds we expect FY27 full year aida margins to be in double digits number. The electronics division which began to 6:35 6 minutes, 35 seconds address the shift of fixed speed AC to inverter AC in 2018 is now evolving into 6:43 6 minutes, 43 seconds a full stack EMS company. It features PCB assemblies serving diverse customer segments and comprehensive bare printed 6:52 6 minutes, 52 seconds circuit board solutions and box build solutions for herable variable power electronics and industrial automation products. 7:00 7 minutes Now coming to the third division railway subsystem and defense. The record capeex allocation in railway budget and 7:08 7 minutes, 8 seconds announcement of seven highsp speeded rail corridors positions India firmly on the path towards faster and future ready 7:16 7 minutes, 16 seconds mobility which augers well for the sector. On the performance the division registered a growth of 20% driven by 7:24 7 minutes, 24 seconds railways metro projects and defense solutions. 7:27 7 minutes, 27 seconds On the expansion front, the construction is progressing well for Sidwal's green field facility for HVAC products, 7:35 7 minutes, 35 seconds pantries, doors and gangs, and the facility is under machine installation phase now and commercial production is expected to begin in quarter 4 FY26. 7:47 7 minutes, 47 seconds With regards to Eugene machinery joint venture for pentographs, brakes, driving gear, couplers, this facility is now 7:55 7 minutes, 55 seconds ready. Currently the product development is underway and commercial production is 8:02 8 minutes, 2 seconds expected to commence from second half of FY27 following requested RDSO approvals. 8:11 8 minutes, 11 seconds Special cooling products for defense applications are also gaining traction and are expected to contribute meaningfully in coming years. Backed by 8:20 8 minutes, 20 seconds a strong orderbook visibility of rupees 2,600 crores plus and product portfolio expansion, we remain optimistic of 8:29 8 minutes, 29 seconds doubling the division's revenue over next two financial years. During the quarter one-time exceptional impairment 8:36 8 minutes, 36 seconds loss has been recognized for our investment in Shivalik through which we had invested in Tithagar FMA Italy. The 8:45 8 minutes, 45 seconds Shivalik investment was done primarily with two objectives. One to have strategic association with leading rolling stock manufacturer Tithagar. 8:55 8 minutes, 55 seconds Together we have been actively contributing to some of the country's most prominent mobility initiatives 9:02 9 minutes, 2 seconds including key metro projects and vandar has translated into business visibility 9:10 9 minutes, 10 seconds worth about 700 cr for heating ventilation air conditioning products as well as new products which were launched 9:17 9 minutes, 17 seconds doors and gangways and which shall continue to grow in future as well. 9:22 9 minutes, 22 seconds Secondly, the objective was to open export opportunities for Sidwal through Italy venture. However, Tithagat Fimma 9:31 9 minutes, 31 seconds turnaround did not materialize in the manner we had envisioned due to the operational and other challenges 9:39 9 minutes, 39 seconds and to curtail future losses one-time exceptional impairment loss has been recognized during this quarter. Now, let 9:46 9 minutes, 46 seconds me hand over to Sudhir Goyel, our CFO for financial highlights. Thank you. 9:51 9 minutes, 51 seconds Yeah. Hi, good morning everyone. Let me first take you through the consolidated financial highlights. For quarter 3 financial year 26, we clocked a 10:00 10 minutes consolidated revenue of 2943 crores up by 38% over last year. We recorded quarterly operating aid of 247 crores, a growth of 53% yearonear. 10:11 10 minutes, 11 seconds For clarification, operating a bit is before impact of expenses and other non-operating income and expenses. 10:18 10 minutes, 18 seconds Profit for the quarter stood at 84 cr before impairment of investment in shivalik of 94 crores reflecting a growth of 128%. 10:28 10 minutes, 28 seconds However, PAD is after considering one of provision of 9 cr pertaining to new labor codes. Let me take you through 9 10:36 10 minutes, 36 seconds months financial year 26 financial performance at the consolidated level. 10:39 10 minutes, 39 seconds We recorded consolidated revenue of 8039 crores, growth of 29% over last year. 10:46 10 minutes, 46 seconds Operating a beta of 608 crores resulting in a growth of 26% yearonear and profit before impairment loss of 158 crores reflecting a growth of 19%. 10:57 10 minutes, 57 seconds Now let me take you through the divisional performance overview. 11:00 11 minutes Firstly, revenue and operating aida details of the divisional performance are not comparable with the published segmental results. Starting with the 11:08 11 minutes, 8 seconds consumer durable division, the consumer durable division reported revenue of 1971 crores in quarter 3 financial year 11:14 11 minutes, 14 seconds 26 compared to 1le 5 cr in quarter 3 financial year 25 reflecting a growth of 27% yearonear. Operating IITA for the 11:23 11 minutes, 23 seconds quarter increased by 22% yearon year and stood at 141 crores compared to 116 crores in quarter 3 financial year 25. 11:33 11 minutes, 33 seconds Coming to the electronic division performance, the revenue for the quarter increased to 845 crores in quarter 3 financial year 26 compared to 472 crores 11:42 11 minutes, 42 seconds in the same quarter last year reflecting a growth of 79% year-onear driven by PCBA vertical bare PCB and new 11:50 11 minutes, 50 seconds additions. I would like to emphasize we acquired Shoguni on 1st of December and consolidated P&L includes results for one month only in respect of Shogini. 12:00 12 minutes Operating IITA for the quarter recorded growth of 157% yearon year and stood at 88 cr compared to 34 cr in quarter 3 financial year 25. 12:11 12 minutes, 11 seconds Moving to railway system uh railway subsystem and defense divisional performance the revenue for the quarter increased to 127 crores compared to 106 12:19 12 minutes, 19 seconds cr in quarter 3 financial year 25 reflecting a growth of 20% year on year and the resulting operating aid of 18 cr 12:27 12 minutes, 27 seconds growth of 49% yearonear with a robust order book and expanding product portfolio remain confident in 12:34 12 minutes, 34 seconds doubling the divisional revenue over the next two financial years on the balance sheet front electronic has successfully 12:41 12 minutes, 41 seconds concluded fund raise with the entire 1750 kores received from marquee investors. As we embark on a growth far in our electronic division, we stand on a strength of robust balance sheet. 12:53 12 minutes, 53 seconds Thank you. Now I request the operator to please open the floor for the Q&A. 13:00 13 minutes Thank you very much. We will now begin with the question and answer session. 13:04 13 minutes, 4 seconds Anyone who wishes to ask a question may press star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you 13:12 13 minutes, 12 seconds may press star and two. Participants are requested to use handsets while asking a question. In order to ensure that the 13:19 13 minutes, 19 seconds management is able to address questions from all the participants in the conference call, please limit your questions to two per participants. We'll wait for the question due to assemble. 13:30 13 minutes, 30 seconds The first question is from the line of Nadasha Jane from Philip Capital. Please go ahead. Thank you and good morning team. 13:38 13 minutes, 38 seconds Congratulations on a very good set of numbers. So my first question is on RAAC. Um given that there was a push in 13:45 13 minutes, 45 seconds the third quarter on account of DE and then there was low cost inventory. How should we see uh fourth quarter? I mean from a very near-term perspective and 13:54 13 minutes, 54 seconds then calendar 26 given that there is high amount of inflation and the entire GST benefit probably is written off and the cost could be even higher than that. 14:03 14 minutes, 3 seconds So how should we read calendar 25 from uh 26 from an RSC point of view? 14:09 14 minutes, 9 seconds Uh good morning Natasha. U see this is how we look at uh room AC sector uh in 14:16 14 minutes, 16 seconds the country and uh as a industry we feel that if you see quarter 1 was - 5 10% 14:23 14 minutes, 23 seconds then quarter 2 was minus 35%. We saw a little um growth in the industry in quarter 3 uh with the primary sales 14:32 14 minutes, 32 seconds moving ahead uh in lie of the energy rating. So we feel that the industry should be flattish this year whereas we 14:40 14 minutes, 40 seconds have again and again maintained our guidance and we are uh we are hopeful to deliver about 14 to 15% kind of a 14:48 14 minutes, 48 seconds growth. Uh let me give you a little background on uh you know air conditioning industry Natasha that in 14:54 14 minutes, 54 seconds last 25 years we have seen seven bad seasons in this industry and two covid 15:01 15 minutes, 1 second waves hit us both in March. So nine bad years for the industry in last 25 years. 15:08 15 minutes, 8 seconds 25 years back market size was half a million number just five lakh numbers and now we are at 15 14 to 15 million 15:15 15 minutes, 15 seconds number 1.4 4 to 1.5 cr number. So I expect that uh you know in future also these kind of issues will uh keep on 15:24 15 minutes, 24 seconds coming on the uh currency and commodity issues be table revisions but looking into the households looking into the per 15:32 15 minutes, 32 seconds capita income growth looking into the adequacy of power uh and uh uh the desire of comfort living uh I believe 15:42 15 minutes, 42 seconds that this industry should grow in the range of uh 12 to 15%. at least for next four five years and there once we cross 15:50 15 minutes, 50 seconds 4,000 per capita income this will further grow at 20 to 25% range. This has been historic in all the countries. 15:56 15 minutes, 56 seconds So we believe that uh on the calendar year 26 uh basis industry should be in the range of at least 12 to 15% growth path. 16:08 16 minutes, 8 seconds So this would be uh value growth that we're talking about or just RC volume. Now I'm talking about volume growth. 16:14 16 minutes, 14 seconds value may be little higher because of uh higher increase in the cost. 16:20 16 minutes, 20 seconds Understood. Uh sir and my second question is uh very recently Mitsubishi Electric had announced that they are doing a 2100 cr capeex and backward 16:29 16 minutes, 29 seconds integrating into RAC in compressors. Now given that all Japanese and Korean brands are our prime customers just want to understand how should we read this 16:37 16 minutes, 37 seconds from Umber's point of view? Um because I believe Mitsubishi is one of our biggest clients and does it entail any risk for 16:44 16 minutes, 44 seconds us? No there's no risk Natasha since you have all seen that 2021 when PLI got 16:52 16 minutes, 52 seconds announced or six major brands announced which are all our customers their own factories and industry I mean markets 16:59 16 minutes, 59 seconds did assume that umber will not do well and our stock price was hit unnecessarily but you know we could see 17:07 17 minutes, 7 seconds that umber moved into a different category we started offering our products in the component shape and we 17:14 17 minutes, 14 seconds kept on growing more than the industry space. Uh so uh this Mitsubishi electric yes is it's our client. This was told by 17:23 17 minutes, 23 seconds them two years back and we have already uh gone into uh supplying the components for the factory which was inaugurated. 17:30 17 minutes, 30 seconds We are very much part of this and our association continues from here on with Mitsubishi Electric Group. 17:38 17 minutes, 38 seconds Got it. Great to hear that sir. Thank you and all the very best. Thank you Nathan sir. Thank you. 17:45 17 minutes, 45 seconds The next question is from the line of Du Jane from Ambit Capital. Please go ahead. 17:51 17 minutes, 51 seconds Thank you so much for the opportunity and congratulations team for a very good set of numbers. So my first question you know is is an extension of what you said 18:00 18 minutes right? So you mentioned that the industry should grow at 12 to 15% keer going forward and uh with the brands I 18:07 18 minutes, 7 seconds mean with the PLI now getting over uh and over the last four or five years we've seen that the brand's share of overall manufacturing has gone up should 18:15 18 minutes, 15 seconds we now the share in moves given the fact is getting over and for growth for you 18:23 18 minutes, 23 seconds guys should be you know a plus uh industry because you g uh you know EMS gains share 18:30 18 minutes, 30 seconds uh Duv u you know uh as as Amber's B2B capability on components and uh on the 18:37 18 minutes, 37 seconds finished goods capability side u we have seen this kind of shift um in-house 18:45 18 minutes, 45 seconds outsourcing three times now in last 25 years um whenever this kind of shift has happened we've moved in tandem to the 18:53 18 minutes, 53 seconds industrial uh industries or our brands or our customers uh you know policy change and uh we have established 24 factories now in vicinity to customers. 19:05 19 minutes, 5 seconds So any customer who would like to manufacture on their own we are very happy to supply them uh the components. 19:12 19 minutes, 12 seconds I'll just give you a example of automobile uh in in a true reference if Toyota puts up a factory the they will 19:20 19 minutes, 20 seconds do engines on their own, car chassis on their own, car bodies on their own and assembly line on their own. But will Toyota ever produce tires for their own 19:29 19 minutes, 29 seconds audio visual systems, glasses, seats, bumpers? So similarly in our category also whenever a brand puts up a factory, 19:36 19 minutes, 36 seconds they do some kind of a backward integration plus assembly and plus labs. 19:40 19 minutes, 40 seconds But other components are required to be supplied just in time by suppliers like us. So we have a very comprehensive solution for the customers. If they want 19:49 19 minutes, 49 seconds to buy full boxes, we can give full boxes. if they want to buy only components. We are happy to supply components only and that's what we have 19:57 19 minutes, 57 seconds done in last 25 years. Uh moving forward this trend will continue. We don't control the change of policy of a customer whether they want to insource 20:05 20 minutes, 5 seconds or outsource. Uh we are there as a backbone of them as a as a supply chain solution provider. Plus what we are 20:14 20 minutes, 14 seconds doing over and above is we are expanding our product portfolio into the commercial air conditioning space. We have already successfully launched our 20:22 20 minutes, 22 seconds tower series, cassette series, duct table series from 3 ton to 17.5 ton and we are also bringing some new products 20:30 20 minutes, 30 seconds as we go ahead. So that is over and above and plus to this is our non room AC components which we deliver as a 20:38 20 minutes, 38 seconds solution for refrigerator, washing machine, microwave oven and etc. So all these three things put together I think we will continue to outnumber industry. 20:47 20 minutes, 47 seconds Maybe in a in a in a year, 2 years time, 3 years time, we may move in tandem to industry. But uh you know eventually we 20:55 20 minutes, 55 seconds we have seen that we have surpassed the industry by by the numbers good numbers every time. 21:02 21 minutes, 2 seconds Fair enough. So sir my second question is on finance cost right. So despite the QIP we have seen the finance cost go up 21:09 21 minutes, 9 seconds marginally uh you know on a Q basis. So uh if you could just help us understand the reason for this. 21:17 21 minutes, 17 seconds Yeah. So uh hi hi d this is suhir. So finance cost has increased because of uh you know that uh there was some change 21:25 21 minutes, 25 seconds is happening in the uh energy rating and we have build some inventory uh at a lower cost uh in terms of uh copper as 21:33 21 minutes, 33 seconds well as compressor which has increased the cost of finance cost plus uh we have acquired uh shogimi in the first on 1st 21:41 21 minutes, 41 seconds of December and we have paid around 175 575 crores uh payout to acquire that entity. uh so of course includes that as 21:51 21 minutes, 51 seconds well and also we increase our stake in unitronics uh post our first acquisition in uh on 9th of October uh when we acquired 40.2% and now we are at 45.5%. 22:02 22 minutes, 2 seconds So that has led to a increase in uh finance cost but you'll see that it will uh start coming down uh in the current 22:09 22 minutes, 9 seconds quarter if you could just give the numbers of ascent shoguni 22:19 22 minutes, 19 seconds uh uh uh since you know unrononics is a listed entity in Israel and their results are not still come out so it is 22:28 22 minutes, 28 seconds difficult for us to give you in the electronic division anti-device numbers because that will be a insider information and it's a uh it's not wise 22:37 22 minutes, 37 seconds to give you that number. Uh I will give you once those numbers are out individually. Okay sir. Thank you so much. 22:44 22 minutes, 44 seconds Thank you. 22:47 22 minutes, 47 seconds Thank you. The next question is from the line of Sonali Salangar from Jeff. Please go ahead. 22:55 22 minutes, 55 seconds So thank you for the opportunity and congratulations to the team for a great set of numbers. So my first question is 23:02 23 minutes, 2 seconds uh you know the consumer durable division with a growth of about 26% yearonear on sales is far ahead of most 23:10 23 minutes, 10 seconds of the peers who have reported including the branded or the contract manufacturing. So it's a very positive thing but would you like to help us understand what drove this? 23:22 23 minutes, 22 seconds Well, Sonali, u couple of things. Uh we've uh we've increased our uh wallet 23:28 23 minutes, 28 seconds share in some customers and uh our nonAC components is actually paying dividends 23:36 23 minutes, 36 seconds now. That's uh and plus the new product categories which we have launched. So all put together is uh is delivering 23:43 23 minutes, 43 seconds this number. Um I think uh team has worked uh very diligently on all fronts to increase product portfolio to 23:51 23 minutes, 51 seconds increase the wallet share in existing customers to work on nonAC um uh components where injection molding has 24:01 24 minutes, 1 second done pretty well. We have started supplying to um you know customers in telecom sector and to energy meter uh 24:08 24 minutes, 8 seconds customers and uh plus of course the refrigerator and washing machine and microwave customers are also gaining 24:15 24 minutes, 15 seconds traction and our ductible ranges of commercial ACs are also growing. So all put together has led to this kind of a number. 24:23 24 minutes, 23 seconds So great to hear that. Just an extension to this on the AC industry uh after the liquidation that we saw in December. 24:30 24 minutes, 30 seconds What is the current inventory level and are there any initial trends you are uh you fathom of the upcoming summer? 24:38 24 minutes, 38 seconds Well, it inventory is varying from uh customer to customer I think uh but overall at an industry level if we sum 24:45 24 minutes, 45 seconds up uh we sum it sum it up I think industry is reached to almost a normalized inventory level at the 24:52 24 minutes, 52 seconds moment. So if if there's a spike in summer we will see a good good summers ahead. 24:58 24 minutes, 58 seconds So great to hear that. So my second question is regarding the capex outlook for 26 and also 27 if he could help and 25:07 25 minutes, 7 seconds how should we look at the journey of Shivalik from here on now that we have taken the impairment loss. 25:14 25 minutes, 14 seconds Uh yeah hi Sunali this is Sudhir. So current year capex we are expecting it should be around 800 crores and uh uh 25:23 25 minutes, 23 seconds for the next year uh the capital the expenditure which will be capitalized should be around 1 1200 crores 11 to 25:30 25 minutes, 30 seconds 1200 crores and for shivalik so now we have explained that there will not be any further loss uh in the shalik because we have taken a complete 25:39 25 minutes, 39 seconds impairment of the investment and uh we don't see now uh anything coming from the shivalalik and we'll be focusing ing 25:47 25 minutes, 47 seconds on our Indian operations and uh expanding the same. 25:52 25 minutes, 52 seconds So great to hear that and all the best to the team and congratulations once again. Thank you. 25:59 25 minutes, 59 seconds Thank you. I request to all participants please restrict your questions to two question per participant. For more 26:06 26 minutes, 6 seconds questions please rejoin the queue. The next question is from the line of Indarjit Agarwal from CLSA. Please go 26:13 26 minutes, 13 seconds ahead. Uh hi, thanks for the opportunity. Two questions. First, uh when we look at your guidance of 13 to 15%. That implies a mid-s singledigit 26:23 26 minutes, 23 seconds kind of growth for RAC's in fourth quarter. So, would you still think that the industry would actually end up being flattish or negative in the fourth quarter as a result? 26:34 26 minutes, 34 seconds Uh well I mean I think um if you if you sum up sum it up Pindrajit for all the four quarters quarter one I explained it 26:41 26 minutes, 41 seconds was minus5 quarter 3 quarter 2 was minus 35 uh quarter 3 has been a little slightly above zero it's like 3 and five 26:50 26 minutes, 50 seconds number so quarter four should be flattish at least I mean if if even if they do well overall it it'll come to be 26:57 26 minutes, 57 seconds like a flattish number you know uh that is that is our estimate uh looking into Sure. 27:04 27 minutes, 4 seconds Uh thank you. And sorry please sir. 27:09 27 minutes, 9 seconds And I believe that you know I have always guided that uh in air conditioners due to the heat waves uh 27:17 27 minutes, 17 seconds the sales move up one month ahead or it get postponed. So I would urge everybody 27:24 27 minutes, 24 seconds not to look at RAC sector on a quarterly basis rather than on a complete uh financial year basis. I think that will 27:31 27 minutes, 31 seconds be a relevant way to look at the RSC sector stocks. 27:38 27 minutes, 38 seconds Sure, this is helpful. Uh, second, Sudhir, you talked about inventory built up of copper and compressors ahead of BE 27:45 27 minutes, 45 seconds table change. I just wanted to understand what does the regulation state? Does it state that post 31st December you cannot sell to the brands 27:54 27 minutes, 54 seconds or retailers or the retailers cannot sell? Still when can we manufacture old uh B nom air cones? 28:02 28 minutes, 2 seconds Yeah. So basically the norm says that the manufacturing cannot happen for the old products post 1st January whereas 28:10 28 minutes, 10 seconds the manufacturer can supply the old inventory for 3 months. Coming to the retail part, the retailers are allowed to sell the old inventory for 6 months. 28:22 28 minutes, 22 seconds So that is how the government's norms are. So we cannot manufacture. So first before 31st we've stopped uh we have to stop all the old models. 28:36 28 minutes, 36 seconds Sure. So the inventory that we have built up will be utilized in the next uh mean we will see that the inventory draw down when we see March water reserve. Is that understanding correct? 28:44 28 minutes, 44 seconds That's right. Yeah. Yeah. Yeah. Especially on the primary things. Sure. Thank you sir. 28:52 28 minutes, 52 seconds Thank you. The next question is from the line of Pulkit from Goldman Sachs. Please go ahead. 29:00 29 minutes Uh sir, thank you for taking my question. Sir, two questions. First, could you give a rough breakdown of uh consumer durables between AC components and nonAC components? 29:12 29 minutes, 12 seconds It's it's right now it varies toolkit from quarter to quarter. uh this time this quarter it has been about 60/40 60% 29:21 29 minutes, 21 seconds has been finished goods and 40% have been components and sir within components AC and nonAC now almost we have reached to 50/50 29:29 29 minutes, 29 seconds split okay so it's 60 2020 20 for the quarter okay that's useful yeah but but it keeps on varying you know don't make a generic view about 29:38 29 minutes, 38 seconds that it'll continue every quarter it changes sure sure yeah so my second question is I remember this was maybe a two or 3 29:46 29 minutes, 46 seconds years back where we had seen some commodity price inflation and while theoretically obviously that's a full pass through business but we've seen 29:54 29 minutes, 54 seconds whenever brands are under pressure there is some pressure felt by OEMs also is it fair to assume that consumer durable 30:02 30 minutes, 2 seconds especially air conditioner margins could be under pressure next year given the magnitude of commodity price increase that we have seen or you think it's 30:09 30 minutes, 9 seconds going to be a complete pass through though with a lag of one quarter um so I I think from a B2B company's 30:17 30 minutes, 17 seconds perspective it will happen with a quarter lag uh whereas uh I think for for the for our customers because the B 30:26 30 minutes, 26 seconds table has changed it's an opportunity for them to change uh maybe maybe from February or March onwards 30:34 30 minutes, 34 seconds but but you don't think there's going to be any margin impact for you because of the commodity price inflation there will be slight margin impact uh 30:41 30 minutes, 41 seconds but not not very big impact for Okay sir, that's useful. Thank you so much. 30:49 30 minutes, 49 seconds Thank you. So, next question is from the line of Tan Sha from DAM Capital. Please go ahead. 30:56 30 minutes, 56 seconds Um, hi sir, good morning and uh, congratulations on a great set of numbers. Uh, so on the electronics piece, right, I mean uh, we've acquired 31:05 31 minutes, 5 seconds Power One now and even Unronics. if you could just spend some uh a couple minutes here on how we're looking to scale these businesses up because 31:12 31 minutes, 12 seconds Unronics currently is not present in India. So what are our plans for you know scaling these businesses up and uh you know to what opportunity can we possibly take it to? 31:23 31 minutes, 23 seconds See uh power one and unitronics both are in the industrial power electronic space. uh Unitronics uh we feel that uh 31:33 31 minutes, 33 seconds there is a geography expansion scope bring those products to India. Second is the product expansion space uh they do 31:42 31 minutes, 42 seconds not have not manufactured any uh PLC's HMIs used for the heating ventilation air conditioning applications. So we've 31:51 31 minutes, 51 seconds uh after acquisition we've already sent them samples and the team has visited India and now they have started uh uh 31:58 31 minutes, 58 seconds their R&D work. I think within uh 15 to 18 months time we are hopeful that we will add new product category on the heating ventilation which will be 32:06 32 minutes, 6 seconds launched worldwide because unitronics almost 55 to 60% growth comes sales comes from US markets and remaining 32:15 32 minutes, 15 seconds comes from the European markets. So India will be their expansion on geography. Third, second will be product expansion strategy and third will be of 32:23 32 minutes, 23 seconds course uh uh due to the umbers balance sheet there will be some purchase leverage which will come and fourth is 32:29 32 minutes, 29 seconds the backward integration. Unronics uh they only assemble the products because they are the designers of the products. 32:36 32 minutes, 36 seconds They develop the software and they assemble the products in Israel but they buy the printed circuit boards from outside. They buy printed circuit board 32:44 32 minutes, 44 seconds assemblies from outside. Even the injection molding required from outside. 32:48 32 minutes, 48 seconds So that is what we are uh exploring right now gradually uh that the growth 32:54 32 minutes, 54 seconds of unitronics can be catered by India by supplying these components as a backward integrity. So these are the four things as a synergy which we are looking into 33:03 33 minutes, 3 seconds the unitronics coming to power one products which are uh UPS solar inverters both off-grid on grid and 33:11 33 minutes, 11 seconds battery energy storage systems and EV chargers. So it's a both B2B and B2G business. They apply in tenders. They 33:19 33 minutes, 19 seconds apply directly to OEMs. And uh what we are doing right now is again similar case. They were assembling not 33:26 33 minutes, 26 seconds manufacturing components. So there's a scope of ilgen and umber put together supplying the boxes the sheet metal 33:34 33 minutes, 34 seconds boxes injection molding components and PCB and PCBs. That is first thing. 33:39 33 minutes, 39 seconds Second is purchase leverage and they are largely southbased. We are now bringing them to north because it's a voluminous 33:46 33 minutes, 46 seconds products. So we uh we are planning to expand in existing facility as a brownfield expansion one of their facilities in north nida for catering 33:55 33 minutes, 55 seconds the clients from NOA. So that is that is what power electronics is. But these both the TAM of both the products power 34:03 34 minutes, 3 seconds electronics the audience of uh power one products and unitronics product is almost about current level is $6.5 34:12 34 minutes, 12 seconds billion you know I'll I'll just give you a heads up on PC what we are doing in electronics PCBA we are doing we are 34:21 34 minutes, 21 seconds doing printed circuit boards we are doing power electronics and industry automation if you sum it up the TAM of 34:27 34 minutes, 27 seconds all the four Today out of $155 billion electronics getting consumed in the country at the moment the TAM of these four things are about 16 to 17 billion. 34:39 34 minutes, 39 seconds Now where is this $155 billion going ahead in next 5 years? As a as a you 34:46 34 minutes, 46 seconds know business as usual the growth is expected to be about $350 odd billion dollar whereas government of India has 34:53 34 minutes, 53 seconds taken a very uh good target of touching $500 billion. So you can imagine if we 35:00 35 minutes concentrate on India as operation, it's a good place to be in and uh these are 35:07 35 minutes, 7 seconds all value added uh capabilities which we have added. So in value added uh PCBA is volume based things. PCB and power 35:16 35 minutes, 16 seconds electronics and unitronics are all value based things. So as a B2B supplier you have to balance volume and value. Volume will give you purchase leverage and 35:25 35 minutes, 25 seconds scale and value based proposition will give you bottom line and also stickiness and entry barriers and that is what we are trying to do in the electronics uh division. 35:36 35 minutes, 36 seconds Absolutely. So thank you for that explanation and my second question is uh Sudhis mentioned that we do around 1100 to 1200 35:44 35 minutes, 44 seconds Mr. Sha can you please rejoin the queue for more questions as there are more participants left in the queue. 35:51 35 minutes, 51 seconds 10 more questions. Thank you. The next question is from the line of Pravin Sahai from PL Capital. Please go ahead. 36:00 36 minutes Yeah, thank you for opportunity. My first question is uh related to the electronics segment. uh out of a 79% of 36:07 36 minutes, 7 seconds a growth if you can uh give some color on how much is the organic and uh how much is the inorganic uh growth in that 36:16 36 minutes, 16 seconds in 9 months financial about 12% uh is the uh inorganic growth contribution 36:23 36 minutes, 23 seconds out of 2,100 or the number almost about 240 cr is the inorganic and rest is organic 36:31 36 minutes, 31 seconds okay and the second question related to the sidual out of this time 20% of a growth and 36:38 36 minutes, 38 seconds also you had said all the three segment railway metro and defense contribution. 36:43 36 minutes, 43 seconds So how is the defense contribution in the growth as well as if you can give the order book bifurcation of 2,600 cr how much is the difference? 36:54 36 minutes, 54 seconds Uh defense uh we started our endeavor in defense vertical about 4 years back and we are seeing some green shoots right 37:02 37 minutes, 2 seconds now. uh earlier we were doing about four to seven crores uh in uh in Sidwal for defense applications but this year we 37:10 37 minutes, 10 seconds expect that we will do about 50 odd cr uh in the defense order book but as far 37:16 37 minutes, 16 seconds as uh the uh 2,600 cr uh is concerned I think u almost about railway 37:24 37 minutes, 24 seconds contribution uh is will be about 46% metro is about 35% and defense will be about 10% uh in at the moment but what 37:34 37 minutes, 34 seconds we are doing is we have been visited by very mary defense customers and that 37:41 37 minutes, 41 seconds continues. We hope that uh in next two financial years defense vertical will start contributing at least 20% in the Sidval's books. 37:51 37 minutes, 51 seconds Thank you sir and all the best. Thank you sir. 37:55 37 minutes, 55 seconds Thank you. The next question is from the line of Keshab Loti from HDFC Securities. Please go ahead. 38:04 38 minutes, 4 seconds Thank you for the opportunity. So as as you have highlighted 9 month inorganic growth possibly can you highlight the same for the Q3 and lastly just want to 38:12 38 minutes, 12 seconds understand what is the impact of the inorganic on the margin front. What would be possibly the organic and inorganic because your inorganic is a you know high margin business and 38:20 38 minutes, 20 seconds electronics we have seen hitting you know double digit margin which we were supposed to hit FY27 slightly ahead of the target. So what is the bitida margin 38:29 38 minutes, 29 seconds guidance for FY27 for electronics division? 38:32 38 minutes, 32 seconds Well, we've guided uh earlier also and we'll reiterate that uh we should be hitting a double-digit number in FY27 38:40 38 minutes, 40 seconds for electronics division. This is the first quarter ever where we have seen about 10 and a half% debida for our 38:46 38 minutes, 46 seconds electronics division. Uh both volume and value play uh could could be exhibited here. U but as our CFO told you that 38:56 38 minutes, 56 seconds because of Unitronics is a listed entity we'll not give be able to give you a breakup of this once they declare the result definitely we can give you the numbers uh on all the subsidiaries. 39:09 39 minutes, 9 seconds Understood. Got it. Thank you. One last question from my side. As you have highlighted normally you know copper and 39:15 39 minutes, 15 seconds TCB prices it is there. Can you please quantify what would be the impact of margin because of this in this quarter and when will it get normalized? 39:25 39 minutes, 25 seconds Well, in consumer durable division we think that it will be maybe 0.25% kind of a 39:33 39 minutes, 33 seconds 0.25 to 5%. uh but which will be definitely uh you know we will uh change the costing and uh uh as we have done in 39:41 39 minutes, 41 seconds past that that happens at a quarterly lag that we come back uh on the CCL front only in the PCB sector not in PCBA 39:49 39 minutes, 49 seconds not in uh the power electronics and other places but only in the PCBA right now there's an impact of about 5% on the 39:57 39 minutes, 57 seconds on the pricing but the customers have started uh giving the revised uh uh approvals And we are hopeful that this 40:06 40 minutes, 6 seconds will be completely passed on by next uh quarter after next quarter. 40:13 40 minutes, 13 seconds Got it. That is helpful. Thank you. 40:18 40 minutes, 18 seconds Thank you. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead. 40:26 40 minutes, 26 seconds Uh hi sir. Good morning. Uh thanks for the opportunity. Uh good morning. So given you know given the constraints on asking questions I'll 40:34 40 minutes, 34 seconds just summarize you know everything what I wanted to know in one question we have you know different projects uh projects going on into electronics uh we've not 40:43 40 minutes, 43 seconds discussed uh KCC in detail on this call uh apart from you know the ascent capex and stuff like that so if you just summarize for us across three segments 40:52 40 minutes, 52 seconds uh the project status in terms of execution how do you think you'll spend money uh over the next two years what 40:59 40 minutes, 59 seconds are the timelines for these projects and for all three segments if you just summarize the growth uh outlook for fiscal 2728 just ballpark numbers and 41:08 41 minutes, 8 seconds margins that will really help to basically get a full understanding on the entire company that's the only question I have thank you 41:15 41 minutes, 15 seconds so I'll give you detailed uh analysis on the projects ongoing projects in the electronic sector the first expansion we 41:22 41 minutes, 22 seconds are doing in hosour in uh Tamil Nadu uh where the groundbreaking ceremony happened and it was u uh blessed by the 41:31 41 minutes, 31 seconds chief minister of Tamil Nadu uh for the groundbreaking. Construction is moving uh perfectly on time as guided. We 41:38 41 minutes, 38 seconds should be starting our trial production in September uh of uh this 2026 and uh 41:46 41 minutes, 46 seconds by January 2027 we should be coming in the mass production scale that is on the HSU side on uh there is a investment 41:54 41 minutes, 54 seconds coming up for total total investment land we already acquired last year uh the building major building part will 42:02 42 minutes, 2 seconds will come now and I think uh on the complete capex about close to about 700 42:09 42 minutes, 9 seconds 800 cr will come this year on on the on the machine building building plus the plant and machinery. Now coming to Korea 42:18 42 minutes, 18 seconds circuits uh the KCC which which has been allotted we have been allotted the land we have deposited 10% of the land and 42:26 42 minutes, 26 seconds they have yet to give us the possession the allotment has been done I think coming week we will we should be able to get the possession and then that's when 42:34 42 minutes, 34 seconds by March we expect that we should be able to do the groundbreaking March or April as our maps get approved total 15 42:42 42 minutes, 42 seconds months time for the construction first phase of investment is 1,200 100 crores which is uh it and it's a 7030 JV so we 42:49 42 minutes, 49 seconds are expecting about 65 50 40 or 7030 kind of a ratio for equity and debt and that's where our partners are also going 42:57 42 minutes, 57 seconds to infuse funds and uh after 15 months there will be trial production period of 3 months so you can imagine that after 43:05 43 minutes, 5 seconds 18 months we will start the commercial production of that uh offtake agreement has already been signed the first 2 43:12 43 minutes, 12 seconds years complete capacity oftake will be done by KCC themsself. So we are not bothered about the uh top line as as 43:20 43 minutes, 20 seconds soon as we start the project. Uh after that of course there will be customers and the ecosystem of complete semiconductor and OSAD businesses are 43:30 43 minutes, 30 seconds getting established in the country. So they will be both domestic and export. 43:34 43 minutes, 34 seconds Uh then there is another expansion going on in the Punea for uh organic expansion. We bought adjoining land in 43:42 43 minutes, 42 seconds Punea and that that's the construction going on. I believe the construction will be over in the March or April and May will be when it will start and uh 43:52 43 minutes, 52 seconds that is on the electronic side. These are three uh ongoing projects on electronics. Uh fourth investment which 43:59 43 minutes, 59 seconds we are doing is in Sidual uh which is almost uh the building is ready machine installation is happening uh in the 44:06 44 minutes, 6 seconds green field facility for doors gang ways and pantries and heating ventilation air conditioning. I expect that by March the 44:14 44 minutes, 14 seconds trial production will start and uh April or May will be the commercial production start for for that plant. For Eugene the 44:21 44 minutes, 21 seconds factory is already already done. Now we have applied to RDSO for requisite approvals because these are all safety products. It'll take time for approvals. 44:31 44 minutes, 31 seconds We expect that in H2 of uh next financial year uh we should be able to 44:38 44 minutes, 38 seconds do the trial production and in quarter 4 I think the commercial production will also start. So these are the status of all the produ projects going on. 44:47 44 minutes, 47 seconds Would you like to summarize the guidance on growth and margins just medium term? 44:52 44 minutes, 52 seconds Yeah. Well, I think all all all the divisions are doing pretty good. I believe as we have already guided that 45:00 45 minutes in consumer durable we expect to do about 15% kind of a growth despite 45:06 45 minutes, 6 seconds markets being flattish. Uh and uh electronics is doing pretty good. All all the divisions are doing very good. 45:14 45 minutes, 14 seconds uh we expect that uh it'll it'll be a good growth story for next year also uh because of all the projects adding up 45:22 45 minutes, 22 seconds and uh in Sidwal we are on a good growth path I believe uh we should see somewhere about 40% growth kind of a 45:30 45 minutes, 30 seconds story in Sidual next year itself and we have guided and we maintain our guidance that we we we will uh uh reach a number 45:39 45 minutes, 39 seconds of double uh uh doubling the revenue of Sidual in next two financial Thank you. Thank you so much uh be and best wishes for the rest of the year. 45:49 45 minutes, 49 seconds Thank you. 45:50 45 minutes, 50 seconds Thank you. The next question is from the line of Samit Singha from Muire Capital. Please go ahead. 45:58 45 minutes, 58 seconds Yes, thank you. Uh just please um as you were thanking the finance minister I was hoping to hear about uh uh you know the 46:06 46 minutes, 6 seconds 20-year moratorium on taxes for uh the data center industry and that you'd have your products ready. But uh in the 46:13 46 minutes, 13 seconds context that the defense sector took you uh let's say 4 years to get up to 50 crores. Can you kind of give a sense of where the data center products how could 46:22 46 minutes, 22 seconds that progress and is that also going to take four or five years to get there or it could be much faster? 46:29 46 minutes, 29 seconds Uh well I I think that's that's a great announcement and in this budget uh which it was surprise for all of us you know 46:35 46 minutes, 35 seconds so we were very excited to hear that I think it'll take about 3 to four years for companies to shift their data 46:42 46 minutes, 42 seconds centers here and take a leverage of this uh incentive scheme which is government of India has given for 20 years. uh but 46:50 46 minutes, 50 seconds it is positive for a companies like us because we've already developed our products of in row and in rack uh cooling products liquid cooling and 46:58 46 minutes, 58 seconds immersive cooling is under development at the moment. So which we feel that uh it will be developed by next 12 months time period and that's where we'll do 47:07 47 minutes, 7 seconds the uh kind of trial productions. But in the inro and INRA we have cracked two good customers and uh they gave us a 47:16 47 minutes, 16 seconds very small share of business for the first year which was about 5 to 7% of their requirement but now the next year 47:23 47 minutes, 23 seconds we expect little to grow uh little bit bigger so to summarize uh your question 47:29 47 minutes, 29 seconds I think somewhere about third year we should see a good traction on the data center in Sidwal coming up. 47:37 47 minutes, 37 seconds Got it. Okay. The second question is um you know obviously the the story of uh commodity prices going up and down has a 47:44 47 minutes, 44 seconds big impact. When do you think that that ecosystem develops in India you know with CCL and other products which will kind of give you that visibility and 47:52 47 minutes, 52 seconds probably um pricing integrity as you plan your business? How long will that take? 47:57 47 minutes, 57 seconds India government has done a great job as a rule of physics first to bring our assembly business. 7 years back we were not even assembling our phones here and 48:05 48 minutes, 5 seconds now we have seen because of PLI you know we are exporting billions dollars of phones outside India. Now second phase 48:13 48 minutes, 13 seconds they have come up with the component scheme. Third phase will be the raw material like CCLs and glass fiber and other raw material required for the 48:22 48 minutes, 22 seconds components. Um I believe uh we we have already got announcements of uh two companies making CCL. Uh we at Ember are 48:31 48 minutes, 31 seconds also uh right now exploring uh some joint ventures for the CCL. Um which may take about a year from now but uh we 48:40 48 minutes, 40 seconds would like to finally because we are we are coming up with a big capacity on the PCB side uh you know we would like to add that going forward maybe in 2 to 3 48:49 48 minutes, 49 seconds years time. uh but overall if I see once the component ecosystem semiconductor ecosystem assembly ecosystem starts 48:56 48 minutes, 56 seconds building up in the country all automatically the raw material supply base will continue but from my point of 49:03 49 minutes, 3 seconds view personally if I see my that's my personal opinion I believe in 3 to four years from now we can see a good 49:10 49 minutes, 10 seconds component ecosystem getting developed for raw materials in India and that will that will still I mean but but the issue 49:17 49 minutes, 17 seconds of commodity prices will still be will take care of only on the currency side you know uh right now the for air 49:25 49 minutes, 25 seconds conditioning industry we have started buying copper tube from India met tube has put up facilities there are other companies who have put put up facilities 49:33 49 minutes, 33 seconds but the LMA fluctuates that's international fluctuations got it thank you very much 49:44 49 minutes, 44 seconds thank you a request to all participants please restrict your question to one per participant. The next question is from the line of Nanch Jane from BNP Paribas. 49:56 49 minutes, 56 seconds Please go ahead. 49:58 49 minutes, 58 seconds Um yeah, hi sir. Firstly, congratulations on a very good quarter. 50:02 50 minutes, 2 seconds Uh sir, my question is related uh to the KEX announcement. So in a recent exchange notification, we have mentioned 50:09 50 minutes, 9 seconds that for this 100 acres land uh we'll be doing a 6,800 crores worth of investment for two manufacturing facilities. So now 50:17 50 minutes, 17 seconds since we know the details on the Korea circuit with the 3200 uh kix uh may we know the details of the balance figures 50:24 50 minutes, 24 seconds around 3600 uh what are our plans for there I mean uh of course this is would be the over a period of four five years 50:31 50 minutes, 31 seconds but uh any broader sense on where this will go into and secondly also want to check on shogini since we have got a 50:39 50 minutes, 39 seconds ECMS approval and uh the slide also mentioned about 500 crores worth of investment outlet so what's the uh timelines for this expansion there. 50:49 50 minutes, 49 seconds Uh okay. So on the YADA front, first of all, I would like to uh tell all the participants that uh the the expansion 50:58 50 minutes, 58 seconds which we have received, we have uh we will be getting two sets of incentives. 51:03 51 minutes, 3 seconds One from ECMS scheme uh on the HDI which is about 48%. And second is uh from the 51:11 51 minutes, 11 seconds government of UP which is about 42%. Now 42% is minus the land on building plant 51:18 51 minutes, 18 seconds and machinery. 48% is only on the plant and machinery. So net capex which will eventually be show happening will be 51:27 51 minutes, 27 seconds much lesser than what we are putting up in the initial phase. So please look into the net capeex kind of a thing. 51:34 51 minutes, 34 seconds Initially yes we will have to do capeex but these are very good incentive schemes which government both central as well as the state governments have have 51:42 51 minutes, 42 seconds given uh secondly u you know we will be getting about 30% top up on the central 51:49 51 minutes, 49 seconds scheme incentive by up government but everything will happen after the fifth year after we complete the whole 3200 cr 51:58 51 minutes, 58 seconds expansion so similar the scheme is very long scheme is about 7 8 year scheme. So you have to do the capeex over the 52:06 52 minutes, 6 seconds period of scheme and that's how we are distributed but on the Korea circuit it'll happen earlier it'll happen in 3 to 4 years time in phases as we 52:14 52 minutes, 14 seconds explained that first phase will be 1200 crores as far as shoguni is concerned it is 500 cr of application and we have 52:23 52 minutes, 23 seconds 4 to 5 years to do that number for uh that the eligibility is 4 to 5 years so at the moment we are not anticipating 52:31 52 minutes, 31 seconds any big capex it's about about I think 55 to 60 odd crex which we'll be doing uh in coming financial year that's all 52:39 52 minutes, 39 seconds we we have planned for shoguni at the moment uh sure sir sir and secondly I also want 52:46 52 minutes, 46 seconds to check on power one and unitronics so these are already very high margin uh accreditive businesses all already 52:53 52 minutes, 53 seconds operating at roughly 28% for unitronics so with with your plans for further backward integration where we'll be integrating our PCB and PCB assembly 53:02 53 minutes, 2 seconds solutions Do you think there's further scope of Mahajan expansion into these businesses? 53:07 53 minutes, 7 seconds Well, it it varies. I mean, I think 28% is one in was in one of the quarters. 53:13 53 minutes, 13 seconds Another quarter there was 22% depending on which geography is selling what products but on average it is 24 25% on 53:20 53 minutes, 20 seconds a maintainable basis. Um at the moment I'm not anticipating we are little we are going little slow because this is 53:27 53 minutes, 27 seconds our first full acquisition outside India. uh I believe our team is already there in from India for our purchase 53:34 53 minutes, 34 seconds leverage uh project uh task force formation and uh we believe that it'll take about an year or year and a half 53:41 53 minutes, 41 seconds for us to demonstrate purchase leverage capabilities coming on the table because of Umber and also for because of the 53:49 53 minutes, 49 seconds backward integration but answer is yes there is a possibility of margin expansion um and that's both because of 53:57 53 minutes, 57 seconds the purchase leverage as well as because of the new product segment uh but to demonstrate on the balance sheet uh I 54:04 54 minutes, 4 seconds think it'll require little patience for at least uh one and a half years from now. 54:11 54 minutes, 11 seconds Uh sure sir that's all from my side. Thank you and all the best. 54:43 54 minutes, 43 seconds like operator is there is operator there or we are disconnected. Yeah. 54:55 54 minutes, 55 seconds Thank you. 55:12 55 minutes, 12 seconds Hello. Hello. 55:30 55 minutes, 30 seconds Thank you. Hello. 55:37 55 minutes, 37 seconds Hello. 55:53 55 minutes, 53 seconds I'll request everybody to be um present. 55:57 55 minutes, 57 seconds I think there's some problem at chorus level technical technical issue. They're trying to fix it. 56:16 56 minutes, 16 seconds So we'll be uh I think let's close the call. Uh uh thank you everyone for joining on the call. For any further 56:24 56 minutes, 24 seconds information kindly get in touch with our head of IR Rabi Harbandha or Rohit Singh or strategic growth adviser our investor relations advisers. 56:34 56 minutes, 34 seconds Thank you very much and have a good day ahead. Happy to address any queries further if anyone of you have please contact Ravi for that. Thank you. 56:43 56 minutes, 43 seconds Thanks.