Atlanta Electricals Ltd — Q4 FY26

Atlanta Electricals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=o_axt2PbGWM Published: 2 days ago

0:00 Ladies and gentlemen, good day and welcome to the Atlanta Electricals Limited Q4 FI26 earnings conference 0:08 8 seconds call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you 0:15 15 seconds to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:25 25 seconds it at stone 4. Please note that this conference has been recorded. I now hand the conference over to Mr. Chaitanya Sati. Thank you and over to you sir. 0:37 37 seconds Thank you. Good morning and a very warm welcome to Atlanta Electricals Limited Q4 and Folio Fi26 earnings conference 0:44 44 seconds call. Joining us today are Mr. Nil Kesh Patel chairman and managing director, Mr. Akshai Gumar Matur CEO, Mr. Mayel 0:52 52 seconds Meta CFO and Mr. Alan Sharma, the chief operating officer. Before we begin, I would like to remind participants that 0:59 59 seconds certain statements made during this call may be forward-looking in nature and are subject to risks, uncertainties, and assumptions. These should not be relied 1:08 1 minute, 8 seconds upon as guarantees of future performance. I now invite Mr. Maya, our chief financial officer, to take you through the financial highlights of for FI26. 1:18 1 minute, 18 seconds Thank you, Chaitanya. Good morning, everyone. FYI26 has been a defining year for Atlant Electricals and I'm pleased 1:25 1 minute, 25 seconds to talk uh walk you through the financial performance of the year and the fourth quarter. I shall start with sharing financial performance for full 1:34 1 minute, 34 seconds year FI26 and Q4 FI26 straight away zooming into fourth quarter revenue from operations for Q4 1:42 1 minute, 42 seconds FI26 stood at rupees 747.6 6 crores a robust growth of 81.7% 1:49 1 minute, 49 seconds yearonear from rups 111.5 kes in Q4 FI25 1:55 1 minute, 55 seconds and sub uh subsequent Q hired by 58.5% over Q3 FI26A 2:03 2 minutes, 3 seconds for the quarters stood at rupees 149.6 6 crores more than doubling year one year with a growth of 117.9% 2:12 2 minutes, 12 seconds while margins expanded to 19.99% effectively touching the 20% mark 2:18 2 minutes, 18 seconds compared to 16.7% in Q4 FI25 profit after tax for Q4 FI26 2:27 2 minutes, 27 seconds stood at 102.2 2 crores up 128.9% yearonear from 44.7 crores in Q4 FI25 2:36 2 minutes, 36 seconds on a consolidated basis revenue from operations for FI26 stood at rupes 1,851.5 2:44 2 minutes, 44 seconds crores presenting a strong growth of 48.8% 8% yearonear from rups 1,244 2:52 2 minutes, 52 seconds crores in FI25 comfortably ahead of the 40% growth trajectory targeted uh we had 3:00 3 minutes set for the year IETA for full year FI26 stood at rupees 344.4 crores up 77.9% 3:09 3 minutes, 9 seconds yearon year with IETA margin expanding to 18.6% compared to 15.6% 6% in FI25 3:18 3 minutes, 18 seconds reflecting an expansion of 300 basis points. Profit after tax for FI26 stood 3:24 3 minutes, 24 seconds at rupees 201.8 crores registering a healthy growth of 70.1% yearonear. 3:32 3 minutes, 32 seconds This margin expansion is structural in nature driven by operating leverage from higher volumes. a richer product mix 3:40 3 minutes, 40 seconds tilting towards 220 KV class which now constitutes uh nearly 52% of our revenue and improved procurement efficiency on 3:48 3 minutes, 48 seconds key import materials as targeted or long-term dates fully required. I'm pleased to confirm that we 3:56 3 minutes, 56 seconds have delivered fully on the debt reduction commitment made during Q3 FY26. 4:03 4 minutes, 3 seconds We had availed 130 crores of thumb debt for our war plant and 210 crores towards the BTW acquisition. A combined term 4:11 4 minutes, 11 seconds loan liability of rupees 340 crores as of 31st March 26. The closing balance on 4:18 4 minutes, 18 seconds all term loans is nailed. This has been completely repaid through a combination of IPO proceeds, internal approvals and 4:27 4 minutes, 27 seconds general corporate purpose fund ahead of the original repayment schedule. This meaningfully reduces our finance cost base going forward. 4:37 4 minutes, 37 seconds Moving on, I shall take a while to speak about cash flow position. Our operating cash flow for FI26 4:44 4 minutes, 44 seconds is healthy at rupes 184 crores reflective of the strong underlying business momentum and disciplined 4:52 4 minutes, 52 seconds working capital management. Our credit profile continues to strengthen. Crystal reaffirms our long-term rating at a 4:59 4 minutes, 59 seconds stable and short-term rating at A1 and our overall bank facilities have been enhanced from 910 crores to 1320 crores 5:07 5 minutes, 7 seconds during the year which predominantly covers non-f fund based requirements providing us ample headroom to support our growth trajectory 5:16 5 minutes, 16 seconds on the year end inventory position. I would like to confirm that it was a planned decision. You will note that our 5:23 5 minutes, 23 seconds year end inventory is slightly lower than what one might expect at this scale of operations. I want to be clear this 5:31 5 minutes, 31 seconds is by design uh this is by design and not a reflection of any execution slowdown. 5:36 5 minutes, 36 seconds We had proactively planned pre uh preventive maintenance shutdowns at two of our facilities scheduled for early 5:43 5 minutes, 43 seconds April and inventory was deliberately drawn down in uh March end to facilitate those maintenance windows smoothly. This 5:52 5 minutes, 52 seconds is a con this is a considered operational call that demonstrates the maturity of our planning processes. 6:00 6 minutes All ongoing capex are funded through internal approvals. Our ongoing capex programs including the new in uh 6:07 6 minutes, 7 seconds inverter duty transformer facility and the tank and re uh radiator backward integration initiative are presently 6:15 6 minutes, 15 seconds being funded comfortably through internal approvals as an enabling and prudent step. The board has already approved a town loan facility that may 6:23 6 minutes, 23 seconds be drawn down at a later stage if required. However, as of today, our cash generation is sufficient to support the 6:31 6 minutes, 31 seconds full capex road map without any external borrowing. 6:36 6 minutes, 36 seconds Utilization of IPO process turning to IPO fund utilization. Out of the 400 cr 6:42 6 minutes, 42 seconds fresh issue approximately 39 5.46 crores has been deployed as of 31st March 2026. 6:50 6 minutes, 50 seconds The deployment is as follows. Rups 79.12 crores towards repayment of world tum loan. Rups 210 crores towards working 6:59 6 minutes, 59 seconds capital requirements and rupees 85 crores towards repayment of the BTW acquisition term loan under general 7:06 7 minutes, 6 seconds corporate purposes and rupes 21.31 crores towards public issue expenses. 7:11 7 minutes, 11 seconds The balance of approximately 4.54 crores lies in our public money account against remaining offer expenses yet to be 7:19 7 minutes, 19 seconds claimed. There has been no deviation from the objects stated in the offer document and this is being validated 7:26 7 minutes, 26 seconds quarterly by our monitoring agency. With that I hand over to Mr. Anam Sharma our COO for the operational update. Thank 7:35 7 minutes, 35 seconds you Mo uh for sharing valuable insights into the organization's remarkable financial performance and good morning everyone. I would now like to take this 7:44 7 minutes, 44 seconds opportunity to walk you through the operational performance of financial year 26. I shall start with an update on the total MBA produced in FY26. 7:54 7 minutes, 54 seconds Across all five manufacturing units, the team of Atlanta Electricals produced a total of 22,943 8:01 8 minutes, 1 second MVAs in financial year 26. This is a significant step up in output and reflects the full benefit of our expanded capacities coming to life. 8:11 8 minutes, 11 seconds During this year, we started getting contribution from our Vad and ANI facilities. Our new Vad facility, which 8:18 8 minutes, 18 seconds we call it as unit 4, contributed 6,960 MBS of production in approximately 7 months of operation since commencing 8:26 8 minutes, 26 seconds production in July 25. Our Atlanta trfo facility which we call it unit 5 at Enki 8:33 8 minutes, 33 seconds contributed a production of 580 MVA in approximately 3 months of production during quarter 3 of FY26. 8:42 8 minutes, 42 seconds It's worth highlighting that our three legacy manufacturing units located in Anand and Bengaluru continued to run at 8:49 8 minutes, 49 seconds very high utilization ratios through the year reaffirming exactly what why the new capacity investment at Vad and 8:58 8 minutes, 58 seconds Atlanta Trafo was both timely and necessary. 9:02 9 minutes, 2 seconds Our efforts to ramp up unit 4 with proactive preparation was instrumental in delivering results. The bad story is 9:11 9 minutes, 11 seconds the one which we are particularly proud of. The intensive preparative work done over the 12 months preceding commen 9:20 9 minutes, 20 seconds commissioning with engineering teams aligned and trained labor pre-inducted machines commissioned ahead of schedule 9:27 9 minutes, 27 seconds and crucially orders pre-linined up to feed the facility from day one has paid up in full. orders were secured and 9:36 9 minutes, 36 seconds structured in advance specifically to ensure there was no idle time at unit 4 commissioning. This forward planning 9:45 9 minutes, 45 seconds directly enabled meaningful utilization right from the day one in each of the last three months of FY26. We 9:54 9 minutes, 54 seconds consistently dispatch approximately 15 transformers per month from our Bad alone unit alone. an output level that 10:03 10 minutes, 3 seconds speaks directly to the ramp up quality at the plant. On an annual basis for the seven months of operation, unit 4 10:11 10 minutes, 11 seconds operated at approximately 39% of the name plate capacity which is 30,000 MBA. 10:18 10 minutes, 18 seconds Our speed at the end was affected for last couple of months due to the shortage of mineral oil. Despite the 10:26 10 minutes, 26 seconds temporary shortage of mineral oil during quarter 4 of FY26 arising from the ongoing West Asian conflict, we were 10:34 10 minutes, 34 seconds able to maintain a strong production and dispatch momentum due to our proactive forward planning inventory management 10:42 10 minutes, 42 seconds and ability to shift part of the manufacturing towards green transformers using alternative asteroids. 10:49 10 minutes, 49 seconds We received PGCL approval which was uh according to us was the fastest in the industry. The single biggest operation 10:57 10 minutes, 57 seconds milestone in the FY26 is the PGCL approval for the manufacturing of transformers up to 400 KV at our unit 4 11:05 11 minutes, 5 seconds which is Vod facility. We received this approval on 2nd April 2026. 11:11 11 minutes, 11 seconds This was achieved within just 2 years of ground waking at Vad and to the best of our knowledge this is among the fastest 11:19 11 minutes, 19 seconds construction to PGCL approval timeline in the Indian transformer industry. We call this as Atlanta speed. 11:27 11 minutes, 27 seconds This approval is subject to completion of short circuit test and final qualifying requirements which will be completed in due course. 11:35 11 minutes, 35 seconds We also received or secured our first 400 KV order during FY26. 11:42 11 minutes, 42 seconds Additionally, we have quoted at multiple PSU uh PSUs uh in for their tenders but now we are deliberately participating in 11:51 11 minutes, 51 seconds restricted quantities. Our approach is straightforward. Manufacture and prove the first prototype, validate it fully 11:58 11 minutes, 58 seconds and only then open the doors to additional 400 KB orders. This prototype first discipline will help us enter the 12:06 12 minutes, 6 seconds EHV market with higher degree of confidence. With this now I now invite our CEO Mr. AK Matur for his remarks. 12:15 12 minutes, 15 seconds Matur. 12:17 12 minutes, 17 seconds Thank you Anand and good morning everyone. I hope I am audible. 12:23 12 minutes, 23 seconds I'll share three strategic reflection on what FY26 meant for Atlanta electricals. 12:30 12 minutes, 30 seconds Number one, during FY26 growth was driven by new capacity and market tailwinds. 12:38 12 minutes, 38 seconds FY26 growth has been the result of two mutually reinforcing forces. The operational contribution of our new 12:46 12 minutes, 46 seconds manufacturing units, unit four at WOD and unit five at Atlanta coming online at right time and a highly supportive 12:56 12 minutes, 56 seconds market environment where domestic demand for transformers especially for higher KV class has remained robust and structurally sound. 13:06 13 minutes, 6 seconds When new capacity and market condition come together in the right way, the results speak for themselves. 48.8 8% 13:14 13 minutes, 14 seconds revenue growth and 77.3% ebida growth in FY26 is testament for 13:21 13 minutes, 21 seconds exactly that having the strength of added capacity we started approaching new customers and markets with better 13:30 13 minutes, 30 seconds confidence which provided a strong order book and thus providing revenue visibility 13:37 13 minutes, 37 seconds meta booked 257 kores of new order during FI26 6 which 13:43 13 minutes, 43 seconds elevated our unexecuted order book on 31st March 2026 to 2,493 13:51 13 minutes, 51 seconds crores providing a strong execution visibility going into FY27. 13:59 13 minutes, 59 seconds Importantly, the quality of the order books continues to improve with a higher contribution from 220 and EHV plus 14:06 14 minutes, 6 seconds transformers reflecting our gradual movement towards higher value and technologically advanced products. We 14:14 14 minutes, 14 seconds believe this position this positions is there for sustained growth over the coming years. 14:22 14 minutes, 22 seconds Point number two, we say it with pride that our investment payback is unprecedented in the industry. One of 14:30 14 minutes, 30 seconds the most compelling narratives of FY26, the speed of payback on our approximately 200 cr investment in the WO facility. 14:41 14 minutes, 41 seconds Industry convention for a transformer facility of this scale and voltage class typically projects a playback period of 14:49 14 minutes, 49 seconds 5 to 7 years. Vote alone contributed nearly 495 crores of revenue in first 7 14:57 14 minutes, 57 seconds months of operation. Based on this trajectory, we are well on the course to achieve payback in 3 to four years 15:06 15 minutes, 6 seconds timeline which is the best to our knowledge is largely unheard of in the transformer manufacturing industry. 15:17 15 minutes, 17 seconds It is important to speak about our new product development plan that is 400 KV and 765 KV. Our new product development road map is phased and disciplined. 15:30 15 minutes, 30 seconds At VOD, the focus is firmly on 400 KV plus prototype. Atlanti 15:37 15 minutes, 37 seconds plant is focused on 765 KVclass prototype. The pathway is clear. 15:45 15 minutes, 45 seconds Prototype, validate and then scale. This discipline sequencing is how we will 15:51 15 minutes, 51 seconds build a credible EHU reference and have base that will unlock a significantly large order pipeline over next 12 to 18 months. 16:03 16 minutes, 3 seconds Our green transformers were instrumental in converting a constraint into a strategic advantage. 16:10 16 minutes, 10 seconds The mineral oil shortage in quarter 4 FY26 triggered by the West Asian crisis would have posed a much more severe 16:19 16 minutes, 19 seconds challenge for our deliveries. However, because we had already secured order for green transformer which uses natural and 16:27 16 minutes, 27 seconds synthetic Easter oils as an alternative to conventional mineral oils. We were in a position to prioritize green 16:36 16 minutes, 36 seconds transformers production during the period of mineral oil scarcity. 16:41 16 minutes, 41 seconds This flexibility shielded our deliveries and demonstrated the resilence and versatility of our product portfolio. 16:50 16 minutes, 50 seconds Going forward, we expect green transformer to grow as a category as customers increasingly prioritizing 16:58 16 minutes, 58 seconds supply chain resilience and ESG consideration in their procurement decision. 17:05 17 minutes, 5 seconds Thank you very much. With this now, I request our chairman and managing director Shri Niran Patel for his closing remarks. 17:15 17 minutes, 15 seconds Thank you Matab and good morning everyone. Though we are firing on all cylinders, there are priorities. Let me close with our priorities and vision for FI27. 17:25 17 minutes, 25 seconds Prototyping 4765 KV are our top priorities. Our single most important focus for FI27 is successfully 17:33 17 minutes, 33 seconds prototyping of 400 KVclass transformer at Bod and 765 KVclass transformer at UNI facility. These prototypes are not 17:43 17 minutes, 43 seconds just engineering milestones. They are gateways to significantly larger addressable market. Once delivered and validated, they will allow us to scale our EHV order books in a meaningful way. 17:53 17 minutes, 53 seconds EHV orders carry execution lead times of 18 to 24 months and pipeline sizes are substantially larger than the lower KB 18:01 18 minutes, 1 second segments. We are building towards that future, one prototype at a time. 18:06 18 minutes, 6 seconds Aggressive push in the export markets is the next priority. We would be we will be putting significant and focused efforts in exploring export markets 18:14 18 minutes, 14 seconds aggressively in FI27. The first sizable export order is received in F526 which has given us a strong foundation to 18:21 18 minutes, 21 seconds build upon. We shall now be pursuing other markets in a systematic way. We shall choose markets with an intent of 18:28 18 minutes, 28 seconds staying long in those territories with we are in a process of identifying right markets for us and thereafter we shall 18:35 18 minutes, 35 seconds have our physical presence in select markets to move more decisively. 18:41 18 minutes, 41 seconds Domestic demands multiple new emerging verticals are already coming up. On domestic front, we see transformer 18:48 18 minutes, 48 seconds requirements scaling up sharply across three new verticals. First, battery energy storage systems best as how we 18:55 18 minutes, 55 seconds call it as India's energy storage buildout accelerates as to balance the intermediate renewable generation. 19:03 19 minutes, 3 seconds Second, data centers which are rapidly growing with rising digital transformation in digital infrastructure investment and AIdriven compute demand. 19:13 19 minutes, 13 seconds Third, the renewable power generation. 19:15 19 minutes, 15 seconds Solar and wind projects has continued to require large number of transformers for evacuation infrastructure. These 19:22 19 minutes, 22 seconds verticals add meaningful diversification and durability to our domestic demand order outlook. 19:29 19 minutes, 29 seconds Commencing unit 6, the inverter duty transformer facility. We will commence operations at unit 6, our dedicated IDT 19:37 19 minutes, 37 seconds transformer facility during FI27. We are working towards making this facility operational before end of this calendar 19:44 19 minutes, 44 seconds year. Once commissioned, we shall add about 5,000 MVA for production of IDTS. 19:50 19 minutes, 50 seconds IDTS are a critical component in renewable energy projects, EV charging infrastructure. And this facility will position us to address what we believe 19:58 19 minutes, 58 seconds will be the fastest growing segment in the transformer demand in India. 20:02 20 minutes, 2 seconds Tank and radiator manufacturing facility for backward integration. We will also commen commence tank and manufacturing 20:09 20 minutes, 9 seconds plants during FI27. This backward integration initiative will give us tighter control on supply chain, 20:16 20 minutes, 16 seconds improved quality for export markets, consistency and meaningful cost benefits over time. All of which will contribute 20:24 20 minutes, 24 seconds to further strengthening our margins and delivering reliability. In order to have better operational control, we shall set 20:31 20 minutes, 31 seconds up this facility in close proximity of our mod facility. Closing remarks. FI26 has validated our 20:40 20 minutes, 40 seconds investment thesis in every measurable way. 49% revenue growth. Nearly 300 basis points improvement of IITa margin 20:49 20 minutes, 49 seconds expansion. Complete repayment of all term debts. The BGCL approval at VU facility at the first 400 KV order in 20:57 20 minutes, 57 seconds our history. The platform we have built is strong. The next chapter is about converting EHV approvals into EHV 21:06 21 minutes, 6 seconds orders, scaling exports and operationalizing unit 6 and our backboard integration plans within a short span. We shall also be commencing 21:15 21 minutes, 15 seconds procurement procedure of merging a truffle with Atlanta electricals limited. We remain deeply committed to 21:23 21 minutes, 23 seconds creating sustainable long-term value for our stakeholders. We thank you for your continued trust and support in Atlanta Electrics. We now open floor for questions. Thank you. 21:36 21 minutes, 36 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 21:44 21 minutes, 44 seconds star and then one on the touchstone telephone. 21:48 21 minutes, 48 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while asking a question. 21:59 21 minutes, 59 seconds Ladies and gentlemen, we will wait for a moment while the question get assembled. 22:08 22 minutes, 8 seconds A reminder to all. You may press star and one to ask a question. 22:17 22 minutes, 17 seconds We will take the first question from the line of Kunal Mata from Incredities. Please go ahead. 22:25 22 minutes, 25 seconds Yeah. Hi. Uh so very very good morning and congrats on the amazing set of numbers and a very detailed guidance 22:32 22 minutes, 32 seconds across operations, finance and strategic view. Uh however I have uh two or three questions. Uh the first is you know the 22:41 22 minutes, 41 seconds margins the gross margins and the have uh improved uh about 350 bits uh on the 22:49 22 minutes, 49 seconds gross and 300 bits on the beta level. So do we see this as a steady state margin you know now that our mix is 22:57 22 minutes, 57 seconds you know bent more towards the extra high voltage uh transformers. So do we see this as you know uh something that we can fit in going ahead. 23:11 23 minutes, 11 seconds Uh good morning sir. Uh thank you for your wishes and uh we we see this 23:17 23 minutes, 17 seconds margins uh you know uh relatively stable uh when it comes to 220 KV class and below manufacturing the improvement in 23:26 23 minutes, 26 seconds margins is because of uh incremental uh production scale up that happened in the 220 KV segment and that's where the 23:33 23 minutes, 33 seconds capex was uh but going forward we see the margins being stable uh for uh times to come 23:42 23 minutes, 42 seconds okay and uh our average utilization has uh risen above almost 8 lakh per MBA. So and I think in the previous call calls I 23:51 23 minutes, 51 seconds think Nural had mentioned that you know with increasing uh you know moving more towards extra high voltage per MBA realization will come down. So I just 24:00 24 minutes want to understand this you know how is the realization going from 7 to 8 lakh now is it because of you know is there some kind of price hike that we are 24:08 24 minutes, 8 seconds taking or uh revenue per MVA is directly related 24:16 24 minutes, 16 seconds to the commodity pricing and commodity pricing is trans uh clearly trans uh uh 24:24 24 minutes, 24 seconds naturally hedged to the customer orders itself. So if the commodity pricing goes up, I'm talking about uh steel, copper, 24:32 24 minutes, 32 seconds oil etc. the prices per MVA will relatively also go up. Uh per MVA 24:38 24 minutes, 38 seconds pricing will naturally not uh be a factor to highlight how the industry is 24:45 24 minutes, 45 seconds performing. It is directly linked to the commodity pricing. Uh to answer your question uh yes we will be seeing per 24:54 24 minutes, 54 seconds MVA realizations getting dropped in coming times because more the MVA per unit per MVA realizations drop. We are 25:02 25 minutes, 2 seconds in the process of prototyping 400 and 765 which are typically 500 MBA products which are higher than what we are making 25:10 25 minutes, 10 seconds right now typically 160 and 200 MBAs. So per MBA realization will drop. 25:18 25 minutes, 18 seconds Okay sir. Uh sir I think 400 KV we are I think almost through I think you in second quarter when we receive the 25:25 25 minutes, 25 seconds approval you know on the product level as well we can start you know aggressively pitching for but what about 755 you know what are certain timelines 25:33 25 minutes, 33 seconds if you can throw some light on that uh we've started uh marketing our 765 uh 25:41 25 minutes, 41 seconds KVclass products uh we've not received any breakthrough yet but uh yes the intention is to prototype it first This 25:48 25 minutes, 48 seconds year we would be spending a huge amount of time to prototype 765 KVclass transformer and reactor uh and then uh 25:58 25 minutes, 58 seconds of course entering in the market. Any orders that we are able to take or grab in this particular year will fall for 26:05 26 minutes, 5 seconds invoicing in next particular considering the lead times that are there in the Indian market. 26:11 26 minutes, 11 seconds Okay sir. And just one last question on the uh tank and reader KEX. I think you mentioned about 180 cr of capeex uh and 26:20 26 minutes, 20 seconds I think uh may also mentioned that we'll be doing through internal approval. So we have a bank balance of 93 crores and a healthy cash generation. So any 26:28 26 minutes, 28 seconds possibility that we'll be drawing down the 50 I think CR term loan line or and what are the timelines also for uh K to get live. 26:39 26 minutes, 39 seconds This financial year is when we trying to commence uh this uh tank and radiator manufacturing facility. Uh it's a 26:47 26 minutes, 47 seconds completely robotic uh investment that we are doing so that we can achieve good quality of automation and quality 26:53 26 minutes, 53 seconds control. Uh yes the cash flow of the company cash flow position of the company looks significantly healthy. 27:00 27 minutes However just not to affect the project timeline we would be taking a term loan if required and we would have the 27:07 27 minutes, 7 seconds intention to completely pay it off in the coming financial year. If taken will it be more towards the end of it? 27:14 27 minutes, 14 seconds Do we see any benefit in this year or it'll go fall to the next year? 27:18 27 minutes, 18 seconds Uh the benefits would be coming in next year for sure. 27:22 27 minutes, 22 seconds Okay. Thank you so much. that call back in the queue. Thank you. 27:28 27 minutes, 28 seconds Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management should be 27:35 27 minutes, 35 seconds able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two per participant. If you 27:44 27 minutes, 44 seconds have a follow-up question, please rejoin the queue. Again we will take the next question from the line of Tina from Motila Loal Financial Services. Please go ahead. 27:56 27 minutes, 56 seconds Yes sir. Congratulations for a good set of numbers. Uh my question is regarding the raw material side. So which are the 28:04 28 minutes, 4 seconds areas u among all the categories of raw materials where you can easily manage the supply chain and uh and are likely 28:12 28 minutes, 12 seconds to see a normal procurement and which are the areas and which are the components where you can see some pressure or delay or in or any kind of 28:20 28 minutes, 20 seconds higher costing uh which uh can be felt let's say in next one to two quarters because of the way things are going on 28:28 28 minutes, 28 seconds globally. So this is just to get an idea as to how we see the margin going forward uh both in terms of overall pricing and overall uh the cost side. 28:41 28 minutes, 41 seconds Hi good morning anat I'll take this question of yours uh first of all the 28:48 28 minutes, 48 seconds problems which industry has been facing so I'll reply on that uh historically we have seen that industry has been facing 28:56 28 minutes, 56 seconds supply crunch on the conductor side bushing side and the fabricated component side uh we have been telling 29:04 29 minutes, 4 seconds for last couple of on on last couple of calls that uh the situation around the supply of conductors is improving 29:11 29 minutes, 11 seconds because many of the manufacturers, Indian manufacturers who had announced their plans to expand capacities. Those 29:19 29 minutes, 19 seconds expanded facilities came to life and we have started now taking the supplies and there are new manufacturers also who are 29:28 29 minutes, 28 seconds getting into this game and the supply side of the conductor copper conductor is certainly going to improve. While 29:35 29 minutes, 35 seconds there is an improvement on the conductor side supply, we and the situation around 29:42 29 minutes, 42 seconds RIP bushing also is going to ease out in a time to come because there are going to be facility expansions coming in from 29:50 29 minutes, 50 seconds the existing players in India. we are seeing in particular uh supply issues on the OIP bushings for which also we are 29:58 29 minutes, 58 seconds trying to find uh let's say uh solutions by the way of booking orders in advance by the way of coordinating with our 30:06 30 minutes, 6 seconds suppliers well and trying to find out new vendors as far as the pricing is concerned of course there are multiple 30:13 30 minutes, 13 seconds factors so commodity prices right from copper to aluminium to crude oil everything is going up and this particular thing of West Asian 30:23 30 minutes, 23 seconds disturbance is not only affecting the oil prices. This crude prices is indirectly affecting other smaller component pricing also. May it be 30:32 30 minutes, 32 seconds fabrication compon fabricated component pricing or the paint prices or the uh gasket prices. So those small small 30:39 30 minutes, 39 seconds components also we are going to see some kind of price hike. But we believe that this particular thing is temporary in 30:48 30 minutes, 48 seconds phase once we have the resolution on this crisis ongoing crisis these things should uh cool down in a time to come. 30:57 30 minutes, 57 seconds So the cost increase that you are seeing on account of all these uh smaller components and smaller items which are seeing a price hike. Are you able to 31:07 31 minutes, 7 seconds pass on this cost increase also to the end users for your existing contracts which are there in uh your 220 KV category? 31:16 31 minutes, 16 seconds Tina, we are able to since majority of our contracts are on with uh the price variation formula. We are able to pass on the majority cost to our customers. 31:26 31 minutes, 26 seconds This smaller components which I told you like components like gaskets and paints etc etc. is these are very very very 31:34 31 minutes, 34 seconds minimal uh uh raw material contained items for any transformer manufacturing uh company. So it will not have any major impact actually. 31:44 31 minutes, 44 seconds Understood. Understood. And uh um uh another thing is on the test for uh the 31:52 31 minutes, 52 seconds 765 KB transformer. So where are we in terms of the stages of uh achieving this? 32:00 32 minutes We are in discussion with couple of agencies uh name of which surely cannot be disclosed at this point in time but we are in discussion with couple of 32:09 32 minutes, 9 seconds agencies or companies to finalize this particular tech tire for 765 KV we are 32:16 32 minutes, 16 seconds expecting it to be closed uh in next couple of months that's the target we have kept for ourselves 32:25 32 minutes, 25 seconds understood sir and the short circuit test uh would be due sometime in the month of June, July for your 400 KV. 32:34 32 minutes, 34 seconds I would not be committed on that front. 32:36 32 minutes, 36 seconds Yes, we are working and yes, come in coming quarter, we shall certainly be sending our transformer for the short circuit. 32:44 32 minutes, 44 seconds Understood, sir. Thank you. Thank you. That's all from my side. 32:47 32 minutes, 47 seconds Okay, thank you. We will take the next question from the line of Anut Sha from Philip Capital. Please go ahead. 32:57 32 minutes, 57 seconds Uh good morning everyone. Uh kudos to the entire team of Atlanta Electricals for delivering another uh stellar set of numbers. Uh so I had just couple of 33:06 33 minutes, 6 seconds questions. Firstly uh could uh management provide some sort of perspective on the expected utilization ramper for Ward facility over the next 33:14 33 minutes, 14 seconds 12 to 24 months and potential revenue contribution from higher KV segment. 33:23 33 minutes, 23 seconds uh the Bul the expected utilization of BU's facility is on track. We expect it to be uh like we suggested before going 33:32 33 minutes, 32 seconds public about 35% in the last financial year which is about 39%. We expect it to be 65% in this particular year and then 33:40 33 minutes, 40 seconds eventually taking it to 100% in the next financial year. 65% is because of the development time that is going to take 33:48 33 minutes, 48 seconds into 400 KV class and the production of 400 KV mainstream production of 400 KV class coming in in next financial year 33:55 33 minutes, 55 seconds would ramp up the capacity to 30,000 MBA uh as of today and in this financial year majority of the products it would get manufactured would be still 220 KV 34:04 34 minutes, 4 seconds and some products only some products of 400 KV. 34:10 34 minutes, 10 seconds Okay. Uh my second question was uh so as we now continue to scale our operations and move towards a higher value product 34:17 34 minutes, 17 seconds mix uh do we see any further scope for margin expansion or we uh uh you know stay very conservative in terms of 34:24 34 minutes, 24 seconds margin guidance and maintain that 18 to 20% land for next financial year. 34:31 34 minutes, 31 seconds Historically we've been maintaining uh one's stand that we would be growing at about 40% CHR for next 3 years. uh first 34:40 34 minutes, 40 seconds year has already passed by with an intention of margins being stable because of the system I mean because of the reason that we have yet not 34:48 34 minutes, 48 seconds manufactured a 400 KVclass transformer and the 765 KVclass transformer under the brand name of Atlant Electricals 34:56 34 minutes, 56 seconds however when we start manufacturing we would be in a better position to tell you any improvement in the margins are there or not but as of today we maintain 35:03 35 minutes, 3 seconds a standard it's going to be stable okay thank you so much and all the best to the entire Thank you. 35:10 35 minutes, 10 seconds Thank you sir. Thank you. 35:14 35 minutes, 14 seconds Thank you. We will take the next question from the line of Arad from Dalat Capital. Please go ahead. 35:21 35 minutes, 21 seconds Yeah. Hi sir. I'm audible. Hi good morning. 35:25 35 minutes, 25 seconds Good morning sir. Are you good? Good sir. 35:28 35 minutes, 28 seconds Yeah. So congrats on a strong quarter and also excellent affect performance. 35:33 35 minutes, 33 seconds So most of question has been answered but just to uh let's say if you have became in a debt tree now so how does the management plan to replace future 35:41 35 minutes, 41 seconds cash flow let's say higher capex or working capital or let's say any other form of acquiration kind of thing 35:51 35 minutes, 51 seconds so Araf Ghul said uh naturally speaking as we move up uh higher KV class execution uh requirement of working 36:00 36 minutes capital will be there it will increase for sure that's the reason we were commenting every time that uh going 36:07 36 minutes, 7 seconds forward in FI27 and FI28 our uh net working capital uh days will 36:14 36 minutes, 14 seconds go up around 80s and 90s. However, during FI26 we could maintain our uh uh 36:21 36 minutes, 21 seconds net cash flow uh days at around 64 and going forward it will increase for sure. 36:29 36 minutes, 29 seconds Sure sir. And the next on can u you please comment on the commodity landscape in the transformer industry especially the multiple player 36:37 36 minutes, 37 seconds announcing fresh capex across the category. So how do you see that? 36:44 36 minutes, 44 seconds Sharma uh this is a very uh let's say obvious question which comes every time we get into a call with any of the let's say 36:53 36 minutes, 53 seconds investor at Indie. Uh so the capacity expansion which is coming or has come up 37:00 37 minutes or shall be coming uh we have been maintaining that it is because of the demand generation and is to meet the 37:08 37 minutes, 8 seconds demand generation uh when it comes to the transformer requirement. 37:13 37 minutes, 13 seconds India has been setting up newer and newer targets and a higher and higher targets for the power generation. So we 37:20 37 minutes, 20 seconds have been hearing 500 gaw by 2030. The new uh target which I have been in particular listening uh for last 15 days 37:28 37 minutes, 28 seconds is 900 gaw 20 by 2035. This coupled with the requirement of transformer coming in from the Europe, USA market, Middle East. 37:38 37 minutes, 38 seconds I'm sure that whatever amount of capacity Indian manufacturers are going to put up it is going to still fall 37:46 37 minutes, 46 seconds short of uh the requirement it the requirement is going to edge over the supply side for at least next five years 37:55 37 minutes, 55 seconds for sure. Got it. So lastly uh let's say any plan to let's say starting export to 38:02 38 minutes, 2 seconds other countries and what's the future look like for company like yours and what are targets for you to generate for 38:10 38 minutes, 10 seconds export we have been maintaining this trend that in next 3 years time we have this target 38:18 38 minutes, 18 seconds of taking our exports to 15% of the total revenue we are working towards developing those markets we have started 38:26 38 minutes, 26 seconds discussions in different markets with different set of customers. It would not be fair on our part to maybe commit or 38:35 38 minutes, 35 seconds uh comment as to which markets we are approaching and what is the progress on that. But yes, wherever as needles are 38:43 38 minutes, 43 seconds also suggested on the call that wherever we shall be uh putting our uh food, we shall be doing it with an intention that 38:51 38 minutes, 51 seconds we are going to stay there for a longer duration and it's not going to be a transactional uh business for sure. 38:58 38 minutes, 58 seconds Got it. Thanks. Thank you. Thank you, Professor. 39:04 39 minutes, 4 seconds Thank you. We will take the next question from the line of Nikl Chadri from Toro Wealth Managers NLP. Please go ahead. 39:12 39 minutes, 12 seconds Yeah, congratulations team on a very uh stupendous performance and uh uh I had 39:18 39 minutes, 18 seconds just two questions. Um in Q3 we've been uh like we mentioned that we've been quoting on data center inquiries. So I 39:26 39 minutes, 26 seconds just wanted to get a reconirmation on how many active inquiries and what is the conversion timeline because one of our peer has actually received very 39:35 39 minutes, 35 seconds large order. So just trying to understand if this this is a very strategic priority for us or along with 39:42 39 minutes, 42 seconds um other export opportunities too. And uh second question is if you are comfortable what would be the gross 39:50 39 minutes, 50 seconds margin delta between 400 KV and 220 KV in your uh current u assumptions. 40:00 40 minutes So sir uh uh export markets do end up taking a lot of time to uh f I mean for the orders to get finalized uh uh they 40:09 40 minutes, 9 seconds come in with a long-term planning and they do have time to you know short list the vendors. So when we say we are working on it, we ex we expect to have a 40:18 40 minutes, 18 seconds breakthrough in this financial year in terms of orders. But the execution will definitely fall on the next year because 40:24 40 minutes, 24 seconds the lead times are much larger than what we have in the Indian market for even 220 KP and below products. Um uh 40:33 40 minutes, 33 seconds responding to the margins on the I mean margins or valuation of 400 KV glass uh 40:40 40 minutes, 40 seconds we uh we say that I mean we expect that 400 and 765 K class would be around two 40:47 40 minutes, 47 seconds uh 200 basis points higher but in in uh as of today in the current uh last financial year numbers there are no 400 40:56 40 minutes, 56 seconds KB class products and there are uh no uh revenues coming in for 400 KB class products. 41:04 41 minutes, 4 seconds Yeah. Yeah. Got it. Thank you so much. I wish you all the best. Thank you. 41:10 41 minutes, 10 seconds Thank you. We will take the next question from the line of Naman Parmar from Nisha Investments. Please go ahead. 41:20 41 minutes, 20 seconds Yeah, good morning sir. Thank you so much for opportunity and congrats on great set of numbers. So firstly I wanted to understand on the current 41:27 41 minutes, 27 seconds order book how much contract would be the fixed contract and how much would be the price variation cross contract. 41:39 41 minutes, 39 seconds Yeah. 41:41 41 minutes, 41 seconds Yeah. Hi Nan. Uh so current order book which we have and we maintain this 10 41:48 41 minutes, 48 seconds throughout the uh concourse that uh we are maintaining around 70 to 80% of the 41:55 41 minutes, 55 seconds uh orders from the uh state utility boards. So this ratio uh is in the range 42:03 42 minutes, 3 seconds of let's say 60% to 75% uh in recent times and going forward also we expect 42:09 42 minutes, 9 seconds that this ratio to uh be there. Uh at the outset we would like to say that any 42:17 42 minutes, 17 seconds orders from state utility rewards is backed by the price variation uh close and in recent times even the private 42:25 42 minutes, 25 seconds orders which are for longer horizon are also backed by the uh price variation close. 42:34 42 minutes, 34 seconds Okay. Yeah, understood. Thank you so much. And secondly on the uh 180 k cap that you have told about the radiator 42:42 42 minutes, 42 seconds and tank facility and IDT division. So IDT 5,000 MAR would be totally a new capacity which will be live in the 42:51 42 minutes, 51 seconds another green field plant or it will be in the existing plant only. 42:56 42 minutes, 56 seconds So ID facility will be in the existing WOT facility only. So it is the adjacent 43:03 43 minutes, 3 seconds uh area of what facility and that is additional capacity of 5,000 MVA and how much 43:12 43 minutes, 12 seconds yeah to 180 K capex then what will be for the IDTM what will be for the radiator and then 43:20 43 minutes, 20 seconds so for IDT it is around 65 K of capex and for backward integration it is 170 43:27 43 minutes, 27 seconds to 180 K of the capex Okay, understood. And lastly on the 43:34 43 minutes, 34 seconds currently like how the whole industry is moving towards lots of long transmission line like HBDCs and all. So there will 43:42 43 minutes, 42 seconds be big requirement for the HBDC converter transformer. So any update that we will be entering that particular market in coming future like we are 43:51 43 minutes, 51 seconds entering the 400 to 765 and if we see a very big potential on that side then we are thinking to enter that market. 44:02 44 minutes, 2 seconds Sir, there is a good demand on the HBDC uh transformer requirement that is uh for sure is there actually but uh for a 44:10 44 minutes, 10 seconds company like us which is concentrating now on the development and for 4765 KV products it would be too early and 44:17 44 minutes, 17 seconds ambitious to say that we possibly would start working on HBDC in a time to come. 44:25 44 minutes, 25 seconds We would focus more on establishing or doing the prototype for 4765 KV first and once we have done that successfully 44:33 44 minutes, 33 seconds we shall certainly be uh trying to find a newer growth territories and it sure surely would be HBDC but it's it's 44:42 44 minutes, 42 seconds there's no point we commenting on it at the moment. Right. Right. Right. Yeah. Understood. Thank you so much. Yeah. 44:52 44 minutes, 52 seconds Thank you. We will take the next question from the line of Sukrit Deep Patel from Eyesight Private Limited. Please go ahead. 45:00 45 minutes Good morning team. I have two questions. 45:02 45 minutes, 2 seconds My first question to Mr. Niral Patel. In your point of view, how is Atlanta Electrics preparing to capture evolving 45:10 45 minutes, 10 seconds demand in electrical equipment and power systems while thoroughly addressing challenges such as raw material 45:19 45 minutes, 19 seconds volatility, technological shifts and competitive pressures and what strategic lever do you see important uh that will 45:26 45 minutes, 26 seconds differentiate uh from your peers in the coming quarter? That's my first question. I'll ask my second question after this. Thank you. 45:34 45 minutes, 34 seconds Uh it's a it's a very detailed question and it's going to be a long answer but I'll be fairly brief as as I can. Uh 45:41 45 minutes, 41 seconds when it comes to differentiating Atlanticers uh we are a company who is very lean uh in terms of our fixed costs 45:49 45 minutes, 49 seconds and we intend to be that and we intend to keep it in the longer duration. Uh when it comes to planning we are always 45:57 45 minutes, 57 seconds a step ahead. When it comes to technological development we are again a step ahead. We would like to be part of the growth story that is coming in for 46:06 46 minutes, 6 seconds the transformer space requirement the in the in the uh hence coming uh power demand which is going to eventually 46:13 46 minutes, 13 seconds create uh demand for transformers to sustain that grocery. We've already taken up developments of newer techn 46:20 46 minutes, 20 seconds technology products that are 4765 KVclass transformers and 4765 KVclass reactors which will play a big role in 46:29 46 minutes, 29 seconds in the growth story of Atlanta electricals. 46:33 46 minutes, 33 seconds The second question to Mr. uh Mayor Meta is uh as the company continues to benefit from infrastructure and industrial demands, how are you 46:42 46 minutes, 42 seconds prioritizing capital allocation between capacity expansion, technological investments and shareholder returns and 46:52 46 minutes, 52 seconds what long-term cost efficiencies are being put into place to safeguard margins amid rising input and compliance costs? Thank you. 47:03 47 minutes, 3 seconds So sir uh right now the focus is on development and uh development of 4765 KV. Uh so we are allocating a fixed 47:12 47 minutes, 12 seconds capital over there for uh newly built uh capex plan for ID as well as uh the back 47:20 47 minutes, 20 seconds integration. These are the two uh capex which will be coming in this financial year. Other other than that there will 47:27 47 minutes, 27 seconds be cost related to development of 4765 KV which is in terms of uh let's say uh short circuit base as well as technical 47:37 47 minutes, 37 seconds tie up for 765 KV. So we are allocating a good amount of capital over these two 47:43 47 minutes, 43 seconds uh plans. Along with this as I uh told earlier there there is increase in working capital requirement as well. So we are focusing on that as well. 47:55 47 minutes, 55 seconds Thank you and best wishes. Yeah, thank you. Thank you. 48:01 48 minutes, 1 second Thank you. We will take the next question from the line of Parakit Khpal from HTC Securities. Please go ahead. 48:09 48 minutes, 9 seconds Yeah. Hi sir. Congratulations on a great quarter. So first I could first question is on data centers. So, so what is the 48:16 48 minutes, 16 seconds total share of all the book from the data centers and how do you think this opportunity will play out over the next few years for us? 48:28 48 minutes, 28 seconds Sir, as of now, good morning uh uh An Sharma this as of now there is no uh portion of data center business in our 48:36 48 minutes, 36 seconds KT. We are uh in discussion with different customers, potential customers to explore uh this particular market but 48:45 48 minutes, 45 seconds yes to confirm as on date there is no single order of data related to data centers in our city. 48:53 48 minutes, 53 seconds But how big this opportunity could be for any suspectment on this opportunity both on the Indian context and even export markets for us 49:02 49 minutes, 2 seconds it is looking to be huge. uh we do not have any fixed numbers or specific numbers to tell you at this moment. We 49:09 49 minutes, 9 seconds are also exploring uh different opportunities and uh if different reports give different numbers. So it's 49:16 49 minutes, 16 seconds not fair on our part to just pick one particular number and put it on the table. But this looks to be pretty uh 49:23 49 minutes, 23 seconds interesting a case and uh it's going to be quite sustainable a demand in a time to come. 49:30 49 minutes, 30 seconds Okay. My second question is on the commodities. Uh so what portion of our raw material is imported and weren't we 49:38 49 minutes, 38 seconds impacted by the rupee depreciation? Some of our peers have seen the margins cracking because of commodity or then transformer oil then copper prices going 49:46 49 minutes, 46 seconds up. So if what was the hit for us what how do we hedge copper? So if you can highlight some of these things now how 49:53 49 minutes, 53 seconds you are mitigating the impact of uh the commodity price increases and rupe depreciation. 49:59 49 minutes, 59 seconds Our organization's strength has been that we are having majority of our orders with the price variation clause. 50:06 50 minutes, 6 seconds So that has been the strength of the organization and that is that's one particular strength which is coming quite handy and these kind of difficult 50:14 50 minutes, 14 seconds scenarios which are prevailing at this moment. So whatever price increase we are seeing in the commodities different commodities we are able to pass it 50:22 50 minutes, 22 seconds through uh to the customers with the help of the price variation uh clause which we have along with coming with the 50:30 50 minutes, 30 seconds purchase order. What we have also started doing of late uh that we have also started talking to the private or 50:38 50 minutes, 38 seconds the corporate customers to provide orders or to give orders with the price variation clause so that we are able to 50:46 50 minutes, 46 seconds mitigate if any uh risk on the private uh or corporate customers orders also. 50:56 50 minutes, 56 seconds So so out of the 2493 crores order book is it entirely passed through? So I think earlier you gave some share of the utility so I didn't quite get it. So is 51:05 51 minutes, 5 seconds it like only 60 to 75% order book is passed through or like Sophie can help us understand. Yes, you are right sir. You are right. 51:11 51 minutes, 11 seconds Approximately 75% of the order is on the with the price variation clause and rest of the orders are uh without price variation clause. 51:21 51 minutes, 21 seconds But in this quarter can you quantify any hit you would have taken if on account of commodity? So if the margins would have been better if that fixed price 51:29 51 minutes, 29 seconds portion was also no no no nothing nothing we we have not taken any hit uh in the previous quarter 51:37 51 minutes, 37 seconds okay and can it come in Q1 now no we don't expect it to see and it's quite early for us to comment on that as 51:45 51 minutes, 45 seconds to where prices shall we we have daily movement of the prices nowadays so it's a different phenomena so we we'll get to know when it comes 51:53 51 minutes, 53 seconds okay sure sir thank you and wish you the Thank you sir. 51:58 51 minutes, 58 seconds Thank you. We will take the next question from the line of Jani from Nwama PCG research. Please go ahead. 52:06 52 minutes, 6 seconds Yeah. Hi, thanks for taking the question. Uh uh sorry I'm a bit new to this company. So the questions you might have answered in the previous calls. Uh 52:15 52 minutes, 15 seconds but on your backward integration project uh what kind of margin accretion are you expecting once this project comes online 52:22 52 minutes, 22 seconds on the tank and radiators? uh uh uh backward integration that you would be doing. Uh that is my first question and 52:30 52 minutes, 30 seconds uh my second question is given that uh you are going to utilize VOD more uh so there will be operating leverage coming 52:39 52 minutes, 39 seconds in plus the backward integration part uh what kind and plus moving into higher KV uh transformers what kind of margin 52:47 52 minutes, 47 seconds aggression totally do you see once all these three benefits uh kind of flow through into your uh P&L? Yeah, if you could answer that. Thank you. 52:59 52 minutes, 59 seconds Uh sir very frankly speaking backward integration for editors and times is not because of margin improvement. That's not the intention of the company. The 53:07 53 minutes, 7 seconds company's intention is to uh get uh you know align its supply chain and manage supply chain management because we all 53:15 53 minutes, 15 seconds know that all of transfer manufacturers are expanding. Requirement of radiators and tanks is going to further expand and 53:23 53 minutes, 23 seconds we need to allocate our own supply chain for that. That is point number one. 53:27 53 minutes, 27 seconds Point number two is it is because of quality improvement. Yeah. Sorry. 53:35 53 minutes, 35 seconds Point number two is point number two is because of quality improvement. When we are targeting export markets, it is always better to have uh good uh 53:44 53 minutes, 44 seconds robotically engineered uh radiators and uh time fabrication and robotically painted. So that is the reason this 53:51 53 minutes, 51 seconds capex has been put in place. Uh when we talk about 400 KV development, 765 KV 53:57 53 minutes, 57 seconds development, uh there is going to be uh expense that is going to be attached to the technical tie-up that we are going 54:05 54 minutes, 5 seconds to do and hence and also the the research and development cost of these products and also the type testing cost of these products. The cost is something 54:13 54 minutes, 13 seconds that is anticipated. I would not be able to share the exact number. uh however because of this cost coming in and after 54:22 54 minutes, 22 seconds developing a first 4765 KV class product we would be able to say how much margin improvement that comes into play as of 54:30 54 minutes, 30 seconds today. Uh with that margin improvement and cost coming in uh taking off I mean uh setting up the margins we would be like we would like to share that the 54:38 54 minutes, 38 seconds margins for coming times should be fairly stable in nature. 54:43 54 minutes, 43 seconds Understood. And sir uh lastly this order book that you have uh what is the general execution timelines? Is it like within a year that you execute these orders? 54:54 54 minutes, 54 seconds Normally speaking sir 220 KV class and below uh the timelines are close to 12 months to 18 months. The current order book only a very small portion is 400 KV 55:03 55 minutes, 3 seconds class that also falls in due uh for deliveries starting December till March. 55:09 55 minutes, 9 seconds uh mostly about 80 85% of this order book will get executed uh in the coming year itself. Whatever orders that we'll 55:17 55 minutes, 17 seconds be booking for higher KB class in this particular year will fall for execution in the next financial year. 55:22 55 minutes, 22 seconds Understood. Thank you so much for answering my questions patiently and best of luck. Thank you. Thank you sir. Thank you. 55:30 55 minutes, 30 seconds Thank you. We will take the next question from the line of sam chle from Van Vimmana capital. Please go ahead. 55:39 55 minutes, 39 seconds Hello. Yeah. Hi, thanks for the opportunity. So on the demand side uh as you said that a lot of capacities are 55:46 55 minutes, 46 seconds coming up and but still there will be a shortfall. So just trying to understand is there a thumb rule by which we can 55:54 55 minutes, 54 seconds go. So for every gawatt uh like what amount of transformer capacity is added like for every gawatt of generation 56:03 56 minutes, 3 seconds capacity added is there a thumb rule or anything like that? 56:09 56 minutes, 9 seconds Uh sir very frank this is Nel Patil once again 56:15 56 minutes, 15 seconds uh so the the thumb rule says it is between anywhere between 8 to 11 times uh the gawatt capacity gets added the 56:24 56 minutes, 24 seconds transformer capacity gets added in various KV classes however uh this is straight generation to 56:31 56 minutes, 31 seconds utilization of power uh now when we speak about grids being unstable requirements of best coming in these 56:38 56 minutes, 38 seconds this thumb rule generally would tend to increase because battery energy storage systems were never a thumb rule of the 56:46 56 minutes, 46 seconds Indian uh power industry. This is again coming in just to stabilize the grid. So this is incremental uh requirement of 56:53 56 minutes, 53 seconds transformers. U there are battery storage systems getting commissioned as we speak but generally no thumb rule is attached to it. 57:03 57 minutes, 3 seconds Understood. So it's about 8 to 10 times is what we should go by. 57:11 57 minutes, 11 seconds Yes, understood. Thank you. 57:17 57 minutes, 17 seconds Thank you. We will take the next question from the line of Adept Devora from Shamc. Please go ahead. 57:26 57 minutes, 26 seconds Yeah. Hi, good morning Nabal by a great set of numbers and congratulations to the team. Uh my question primary was on 57:32 57 minutes, 32 seconds the BSS. Uh you alluded to the fact that uh there is no thumb rule as such but just from an Atlanta perspective. Uh 57:40 57 minutes, 40 seconds just wanted to understand how big the BSS opportunity could be and considering the fact that currently we are at 1 1.5 57:47 57 minutes, 47 seconds G hours and by FI30 we are expected to you know reach anywhere between uh 40 50 57:55 57 minutes, 55 seconds G. So how is that? Um sorry to interrupt in between your voice is breaking. Could you please repeat your question and use the answer more? 58:04 58 minutes, 4 seconds Uh yeah sorry. Is it better now? Yes please proceed. Yes sir. 58:09 58 minutes, 9 seconds Right. Right. So uh my question primary is for the BSS segment. Uh you know considering that BSS is a very large 58:17 58 minutes, 17 seconds opportunity and when you look at all the renewable companies right from Adani Green and others everybody is setting up massive BSS capacity. uh just wanted to 58:26 58 minutes, 26 seconds understand how this BSS opportunity is for Atlanta. Uh that's the first thing and secondly uh I I know you alluded to 58:33 58 minutes, 33 seconds the fact that there is no mathematics in terms of per gawatt hours how much transformer is required but if you could 58:40 58 minutes, 40 seconds you know quantify in numerical terms for the size of the opportunity for Atlanta and the industry of for the transformer segment with respect to BSS. 58:51 58 minutes, 51 seconds Uh uh morning sir. Um so I understand the question and and I understand uh uh where you're coming 58:58 58 minutes, 58 seconds from sir but very frankly speaking for a company like Atlanta it will be very difficult to judge the numbers as to how 59:05 59 minutes, 5 seconds much requirement will come up. What we are seeing right now is a lot of orders getting awarded in the TPCB model of 59:14 59 minutes, 14 seconds BSS. Uh wherein it is uh uh you know developers are making such kind are in the process of constructing uh battery energy storage systems. 59:24 59 minutes, 24 seconds Uh a requirement of this nature will will be there uh for times to come because the amount of renewable gawatt 59:31 59 minutes, 31 seconds that we have already added we would have to augment that with battery energy storage system. So the requirements will be huge. We anticipate that. U however 59:40 59 minutes, 40 seconds the the KB classes and the the products depends upon how the BSS is getting designed and u trust me it is a new 59:48 59 minutes, 48 seconds story for India. So we are seeing continuous developments happening uh prototypes products changing but we are very well placed in terms of technology to support this kind of market. 1:00:00 1 hour Right. Right. So is this some different kind of a transformer required or an IDT transformer is fine considering that we are dealing with renewables. Okay. 1:00:08 1 hour, 8 seconds Uh so it's a converter duty transformer where in the power flows in by D directionally uh but it is a transformer 1:00:17 1 hour, 17 seconds that can be routinely designed by uh Atlanta electricals. 1:00:21 1 hour, 21 seconds Right. And have we supplied any uh BSS transformers currently or any BSS transformers in our order book? 1:00:29 1 hour, 29 seconds Uh in times to come we we will be supplying. We have VSS orders in our order book. So in times to come we will be definitely supplying. 1:00:39 1 hour, 39 seconds Right. Right. Okay sir. Thank you. I think most of my questions were answered and congratulations again on you know one of the best results in the industry. 1:00:46 1 hour, 46 seconds So great work. Thank you. 1:00:49 1 hour, 49 seconds Thank you sir. Thank you for your support. 1:00:52 1 hour, 52 seconds Thank you ladies and gentlemen. We will take that as a last question. I now hand the 1:00:59 1 hour, 59 seconds conference over to Mr. Nel Keshwai Patel for the closing comments. Thank you and over to you sir. 1:01:06 1 hour, 1 minute, 6 seconds Uh thank you. Thank you sir. Uh thank you everyone for joining. Um uh this is Nil 1:01:15 1 hour, 1 minute, 15 seconds Patel signing off. Um thanks everyone. 1:01:21 1 hour, 1 minute, 21 seconds Thank you members of the management. On behalf of Atlanta Electricals Limited, that concludes this conference. Thank you all for joining with us today and you may now disconnect your lights. 1:01:32 1 hour, 1 minute, 32 seconds Thank you. 1:01:33 1 hour, 1 minute, 33 seconds Thank you. and get