CG Power and Industrial Solutions Limited — Q2 FY26

CG Power and Industrial Solutions Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZqzUktML7ts Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to CG Power Q2 FYI26 earnings conference call hosted by IIFL Capital 0:09 9 seconds Services Limited. As a reminder, all participant lines will be in listenonly mode and there will be an opportunity 0:16 16 seconds for you to ask questions after the presentation concludes. Should you need an assistance during the conference call, please signal an operator by 0:24 24 seconds pressing star then zero on your touchtone telephone. Please note that the this conference is being recorded. 0:31 31 seconds Now I hand the call over to Miss Reo. Thank you. Very good afternoon everyone. 0:40 40 seconds On behalf of Capital, I welcome the management of CG Power uh to discuss the 2Q earnings conference call with us. Uh 0:49 49 seconds we have the senior leadership team with us represented by Mr. Amar call managing director, Mr. Sushil Tori, chief 0:55 55 seconds financial officer. Mr. Marin Nil, EVP drives and automation and international motors business. Mr. Gorav Makija, vice president switchers and EPD business. 1:06 1 minute, 6 seconds Mr. Ajay Jen, vice president transformer business. Mr. Chidamar Balakrishna, vice president railway business. Mr. Jatinder call, EVP motors business. And Mr. 1:17 1 minute, 17 seconds Shiran Rangar Rajan, EVP, head consumer products business. I would now like to hand over the call to Mr. Amar calls for 1:25 1 minute, 25 seconds his opening comment thereafter we can start with Q&A. Thank you and over to you sir. 1:31 1 minute, 31 seconds Thank you Reinu and team. Uh good afternoon everybody and welcome to the CG earnings call. Uh let me start with the summary of results. Uh we have 1:40 1 minute, 40 seconds delivered a strong performance for the quarter and half year ended September 25. uh underscoring sustained high 1:47 1 minute, 47 seconds double-digit growth uh and the early impact of strategic transformation initiative and practicing disciplined execution excellence. 1:58 1 minute, 58 seconds Now this is a another quarter and H1 performance with all-time high standalone revenue as well as profit before tax after accounting for 2:06 2 minutes, 6 seconds exceptional items. Further, we have improved our PBT margins by almost 90 basis points sequentially and 230 basis 2:15 2 minutes, 15 seconds points year-over-year. This demonstrates our continued efforts and focus on improving our margins over the last couple of quarters. 2:24 2 minutes, 24 seconds Our Q2 sales grew at 17% year-over-year. 2:28 2 minutes, 28 seconds Order intake grew by 32% year-over-year and profit after tax improved to 38% 2:35 2 minutes, 35 seconds year-over-year making it one of the strongest quarter performance in the recent times with the positive leverage. 2:42 2 minutes, 42 seconds Further orders remain robust uh with the backlog strengthening at 13,568 crores underpinning the multi-quarter visibility. 2:54 2 minutes, 54 seconds Now, as I go deeper into Q2 standalone performance, uh the sales for the quarter uh was at 3:01 3 minutes, 1 second 2,649 crores, uh 17% year-over-year. Uh profit after tax was at growth of 38% at 3:09 3 minutes, 9 seconds 307 crores versus 223 crores in Q2 last year. 3:15 3 minutes, 15 seconds uh return on capital employed uh was for the quarter was uh 34% and ordered intake for the quarter was 4,210 crores 3:24 3 minutes, 24 seconds which is about 32% growth year-over-year and unexecuted order backlog as of 30th September 25 was 13,568 crores now as I 3:33 3 minutes, 33 seconds go deeper into the segment wise performance let's start with uh industrials uh the aggregate sale was 1,395 3:41 3 minutes, 41 seconds crores which was uh - 2% % year-over-year. This was primarily driven by few project deferments in the 3:50 3 minutes, 50 seconds railway segment and profit after tax also was muted due to which due to this which was at 9.7% of sales and 35 crores versus 166 crores. 4:03 4 minutes, 3 seconds Margin change due to price realization challenges was in the railway business as well as the order deferment leading to lower operating leverage and some 4:11 4 minutes, 11 seconds impact due to the rise in the commodity prices which could not be fully passed on. 4:16 4 minutes, 16 seconds Now despite this uh pricing discipline uh cost optimization initiatives, operational productivity gains helped us 4:25 4 minutes, 25 seconds partly cushion this impact and focus remained on high margin recovery through cost optimization initiatives, pricing 4:32 4 minutes, 32 seconds and improvement product improving the product mix. order intake for the quarter was 1,567 4:39 4 minutes, 39 seconds crores which if I offset uh uh it with a one large order which we had in the Q2 of last year uh the order in actually 4:48 4 minutes, 48 seconds intake was about 13% up year-over-year but if you look at from you know apple to apple here it was - 10%. 4:56 4 minutes, 56 seconds Moving to the power systems, uh the performance continues to be pretty strong uh with the continued margin 5:04 5 minutes, 4 seconds expansion focus and at the draw backdrop of robust demand and disciplined execution. Uh sales was 1,2554 5:12 5 minutes, 12 seconds crores with a sharp rise of 48% year-over-year uh supported by steady execution rhythm. uh at the profit PBIT 5:21 5 minutes, 21 seconds was at 260 crores versus 149 crores last year which is 310 basis points margin 5:28 5 minutes, 28 seconds expansion uh primarily driven by better price realization uh resilient demand trend as well as the improved operating leverage. 5:38 5 minutes, 38 seconds Uh order intake for the quarter was 2,643 crores which is 81% growth year-over-year and unexecuted backlog uh 5:46 5 minutes, 46 seconds towards the close of quarter was 10,474 crores which is 104% higher year-over-year. 5:54 5 minutes, 54 seconds With this we conclude the deep dive into the standalone performance and I will now move to the consolidated uh numbers. 6:01 6 minutes, 1 second Uh aggregate sales for the quarter was 2,923 crores at the growth of 21% year-over-year. Profit after tax was 30% 6:10 6 minutes, 10 seconds up uh at 284 crores versus 220 crores last year same quarter. And uh if you see the margin improvement which was 6:19 6 minutes, 19 seconds driven primarily by the strong power performance was partially offset by the strategic investment in increasing our 6:26 6 minutes, 26 seconds talent pool of the senior personnel and technology people in CG semi as well as in Exero which is our semiconductor business 6:35 6 minutes, 35 seconds return on capital employment was for the quarter was at 31% order intake for the quarter was 45% which is at 4772 crores 6:43 6 minutes, 43 seconds and order unexecuted quarter backlog as of 30th September was 14,953 crores which is 88% up. Now some of the 6:53 6 minutes, 53 seconds notable events for the quarter uh CG semiconductor factory of CG opened the new factory uh in Ahmedabad 7:02 7 minutes, 2 seconds which is called G1. Now this marks the first step into the semiconductor capability and supporting the country's 7:09 7 minutes, 9 seconds goal of becoming self-reliant uh while also serving the global market. Uh the G1 facility will operate at peak 7:16 7 minutes, 16 seconds capacity of half a million units per day capacity and G2 which is the main plant which is the large plant uh just 3 7:23 7 minutes, 23 seconds kilometers away from the current facility under expend uh under construction expected to be closed uh by 7:32 7 minutes, 32 seconds end of next year or early 27. Uh once operational G2 will scale up to the 7:39 7 minutes, 39 seconds capacity of about 14.5 million chips a day. So both put together the capacity will be almost 15 million chips a day. 7:47 7 minutes, 47 seconds Uh so and in terms of employment generation both these facilities will be employing about 5,000 direct and indirect jobs in the in the coming years. 7:57 7 minutes, 57 seconds As you know, CG semi is uh eligible for capital assessment assistance from the uh scheme under the settlement setting of outsource semiconductor assembly and 8:06 8 minutes, 6 seconds testing uh by India semiconductor m mission ISM as well as matey. Uh we got 8:13 8 minutes, 13 seconds that approval on 8th of March 2024. The approval covers a 5-year period for financial year 2425 to 2829. Total 8:22 8 minutes, 22 seconds project cost of 7,584 crores. the central government assistance of 3,51 8:29 8 minutes, 29 seconds crores and the additional state uh Gujarat government support uh which is equal to 40% of the central government 8:35 8 minutes, 35 seconds assistance is about 1,400 crores. The fiscal supply agreement was signed on January 17, 2025 and the trust and 8:44 8 minutes, 44 seconds retention account agreement was signed on September 15, 2025. 8:49 8 minutes, 49 seconds Uh the last one that I have is that the board of directors today approved another green field expansion for switch 8:55 8 minutes, 55 seconds gear business for an investment of 748 crores net of taxes and this expansion is proposed considering the expected 9:04 9 minutes, 4 seconds increase in the demand of uh medium voltage and EHV circuit breakers instrument transformer GIS in the 9:11 9 minutes, 11 seconds domestic market as well as we'll uh get her to the export uh market. With this I will conclude my opening remarks. Uh 9:19 9 minutes, 19 seconds unodudited financial statements with detailed notes are available as part of the stock exchange filings and is also available on our company website. Thank 9:27 9 minutes, 27 seconds you for listening in and over to you Renu for Q&A. 9:38 9 minutes, 38 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If 9:47 9 minutes, 47 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use your headsets while asking a question 9:56 9 minutes, 56 seconds in order to ensure the management is able to address questions from all the participants in the conference. Please limit yourselves to two questions per 10:05 10 minutes, 5 seconds participants. Should you needs any followup question, you may rejoin the queue. 10:13 10 minutes, 13 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles 10:47 10 minutes, 47 seconds The first question is from the line of Ankor Sharma from HDFC Life. Please go ahead. 10:55 10 minutes, 55 seconds Uh yeah, hi uh good afternoon. Uh thanks for your time. Uh as always uh I have two questions on the uh industrial segment. Uh so first uh you know within 11:04 11 minutes, 4 seconds that on the LT Motor side and I know you know you've been highlighting that uh the market has been a little subdued uh you know last few quarters. Uh if you 11:13 11 minutes, 13 seconds could just tell us you know again how was Q2 and what are the trends you're seeing in Q3? Uh are we seeing any signs 11:20 11 minutes, 20 seconds of uh growth coming back? If not uh what steps are we taking to kind of uh improve market share there and I 11:27 11 minutes, 27 seconds understand we already have a 40% kind of market share there. Uh so yeah the first question is on the uh LT motor side and 11:34 11 minutes, 34 seconds second on the railways uh you know where you highlighted some project deployments uh this quarter if you could talk about 11:42 11 minutes, 42 seconds that uh you know is that kind of uh behind us and uh do we expect uh you know that revenue uh kind of start 11:50 11 minutes, 50 seconds flowing in from Q3 onward. Yeah, those were my questions. Thanks. 11:57 11 minutes, 57 seconds Yeah, thanks Ankush uh for the great question. So first one on the LT motor side. Uh uh actually if you tell me I'm 12:05 12 minutes, 5 seconds pretty happy with the progress made by the team there. Uh we are doing much better than the market. If you look at the market EMA data the mark uh market 12:13 12 minutes, 13 seconds was a little better than what it was previous quarter. Uh from negative zone it has come to kind of flat. uh but in terms of as we say you know we don't 12:22 12 minutes, 22 seconds give the exact numbers but I can tell you that our order input was in double digit which itself is a great beginning 12:29 12 minutes, 29 seconds point and even our sales was uh single digit but on the positive side so uh even the profitability is also improving 12:38 12 minutes, 38 seconds the team is doing a good job in terms of uh our CGX execution excellence uh working on these areas that we can 12:46 12 minutes, 46 seconds control on uh so pretty positive on how it is moving forward. Uh railways coming to your second question of railways was 12:53 12 minutes, 53 seconds I think there was a delay in terms of shipments which actually hampered for almost a month. Uh but then it started 13:00 13 minutes around the middle of uh last month. Uh so whatever we could ship out in the 15 in 15 days time is what came up but then 13:08 13 minutes, 8 seconds everything obviously could not be shipped out in time. Uh so that's got so it's only a shift between the two quarters. So 13:16 13 minutes, 16 seconds and and last but not the least if you see the pressure was also a bit off on the commodity inflation obviously everything didn't pass on uh to the 13:24 13 minutes, 24 seconds customer and also as you know PBC is not uh in the same quarter you know it goes in couple of quarters here and there 13:33 13 minutes, 33 seconds great okay let's go to thank you thank you 13:41 13 minutes, 41 seconds thank you next question is from the line of Nitan Aurora from ICI from Access Mutual Fund. 13:49 13 minutes, 49 seconds Thank you team for the opport Thank you team for the opportunity. Um uh Amad um first question is on the semiconductor 13:57 13 minutes, 57 seconds and you've been articulating that and generally we have seen whoever has started semiconductor Indian company you are the one which is scaling every 14:05 14 minutes, 5 seconds quarter very fast. Can you give us a little road map to us that you know um given that you've already done 230 235 14:14 14 minutes, 14 seconds crores kind of a semiconductor revenue uh how we should build in you know this year or next two years I don't want the 14:21 14 minutes, 21 seconds exact number but how the scale will go up and obviously you are aortioning lot of cost which is also hurting the 14:28 14 minutes, 28 seconds overall aita of the company as well uh how one should look at that you know uh trajectory improving uh if you can throw 14:37 14 minutes, 37 seconds some light on that. And second, apart from the new capeex which you have um 14:45 14 minutes, 45 seconds highlighted in this quarter going ahead with that capeex can you also throw some light how the capeex and how's the 14:52 14 minutes, 52 seconds timeline of the current capacity which was about to get commissioned are we on track on that and uh in terms of newer 15:00 15 minutes inquiries and newer order inflows if you can give some color because there's a lot of disbelief coming especially in the investors uh that there is going to 15:09 15 minutes, 9 seconds be a slowdown. Government will give lot of uh approvals to Chinese players to come and do transformers in India. So 15:17 15 minutes, 17 seconds these are some of the things which are going on. Uh and if you can throw some light on that that would be helpful. Uh thank you. 15:24 15 minutes, 24 seconds Sure. Uh I think good questions. Coming to the semiconductor piece of it first. 15:29 15 minutes, 29 seconds Uh yes it's a long game that we are in and pretty excited to be in this industry. uh to your specific question 15:36 15 minutes, 36 seconds on the short term if your question is specific to what revenue will we generate in in the current year uh for zero which is our subsidiary I think it 15:44 15 minutes, 44 seconds should do approximately $50 million uh that is approximately about 450 crores uh so which is very much on track uh 15:52 15 minutes, 52 seconds with what we had projected for and CGM as you know is a long lead item so we'll take some bit of more time but yes 15:58 15 minutes, 58 seconds excited times uh sitting in that area if I go back to your question on uh 16:05 16 minutes, 5 seconds capex thing that we have currently uh you know with which we have been working on I think uh all the projects are on track for our transformer division we 16:14 16 minutes, 14 seconds had expand planned to expand from 15,000 MBA to 40,000 MVA that has already been done on 1st of October uh so our 16:22 16 minutes, 22 seconds capacity has enhanced even got the approval from power grid corporation uh I think up to 35,000 uh the next phase 16:29 16 minutes, 29 seconds will come in next month to take it further jack it up so so all those investment are reaping the benefits uh that's coming in uh regarding this new 16:38 16 minutes, 38 seconds facility as I said you know this will come for the switch gear expansion uh which we approved today in the board of course things uh today after board's approve approval we'll start working on 16:46 16 minutes, 46 seconds it and uh we'll get there and the inquiry pipeline sir in this in this business and do you think 16:54 16 minutes, 54 seconds government can allow the Chinese uh players into the you know in the transformer that's what you know going rounds and round these newses 17:02 17 minutes, 2 seconds I I think I think see that in the global market whether Chinese players come in or not it's a global market what we have 17:09 17 minutes, 9 seconds to be prepared for is becoming efficient and become cost competitive I think that's what everybody needs to uh work 17:18 17 minutes, 18 seconds on and that's what the focus is so I'll not get into what the government will do whether Chinese will come in or not import Important is how do we become 17:25 17 minutes, 25 seconds operationally efficient even if Chinese or anybody comes into the country we are as good as anybody else or better than 17:33 17 minutes, 33 seconds them. I think that's what our focus is on. And how's the inquiry? 17:37 17 minutes, 37 seconds But coming back to sorry, coming back to your uh other question on the inquiry pipeline, I think it's very very strong. 17:44 17 minutes, 44 seconds In fact, today if I look at my inquiry pipeline as of end of last quarter, uh the pipeline is almost 85% of last year up. 17:53 17 minutes, 53 seconds Great to hear that sir. All the best team for the future. Thank you. 18:00 18 minutes Thank you. The next question is from the line of Omeshra from Numera. Please go ahead. Please go ahead. 18:09 18 minutes, 9 seconds Yeah. Hi team. Congratulations for the strong set of uh ordering flows. Uh thank you for this opportunity. Uh my 18:16 18 minutes, 16 seconds first question is pertaining to railway business where we are consistently facing few uh realization challenges. So 18:24 18 minutes, 24 seconds I wanted to have some idea about uh what is happening in the railway business in terms of competition whether that is 18:30 18 minutes, 30 seconds impacting our profitability or is it pertaining to legacy contracts and that's where we are losing out on some 18:38 18 minutes, 38 seconds profitability because of raw material vulnerability. 18:55 18 minutes, 55 seconds Hello. Hello. Am I audible? 19:03 19 minutes, 3 seconds Hello. Yeah, Mr. Ome. Yeah. Am I audible? Yeah, you're audible. Just a moment. 19:11 19 minutes, 11 seconds Sure. 19:30 19 minutes, 30 seconds The management line was dropped. Uh, the management line is reconnecting. Kindly wait. Kindly wait. 19:47 19 minutes, 47 seconds Okay. The management R is reconnected. 19:54 19 minutes, 54 seconds Sir, please go ahead. Hello. Can I repeat my question? Hello? 20:02 20 minutes, 2 seconds Yeah. Yeah, we can hear you. Can you Is that Omesh? Yeah. Yeah. Yeah. Hi, sir. 20:08 20 minutes, 8 seconds So, yeah. My first question is on the railway business side where we have consistently now uh faced this uh price 20:14 20 minutes, 14 seconds realization challenge. Uh so I just want to understand whether this is because of uh execution of legacy projects which we 20:22 20 minutes, 22 seconds have taken few years back or is it uh because of competition that is impacting on our margins. 20:34 20 minutes, 34 seconds Yeah. So I think I think the railway business I yes of course the challenges are there but as you know this is a 20:42 20 minutes, 42 seconds typical tendering business uh what you take these orders are are at very thin margin and then the PVC clause that we 20:50 20 minutes, 50 seconds have with the railways is actually happens average of their three different there's a formula for that so it takes at least one or two quarters till it 20:58 20 minutes, 58 seconds comes back so you may not have that impact in the full quarter second is unlike other businesses where if there's is a commodity inflation we can quickly 21:07 21 minutes, 7 seconds uh and cash adjust our pricing and uh you know find a way to mitigate that risk whereas this business it takes a bit of time more time but yeah I think 21:16 21 minutes, 16 seconds it's it's a more of patience game uh but we are very very uh sure about coming out of this situation uh as soon as 21:23 21 minutes, 23 seconds possible got it my second question is on the export side uh we have seen lot of uh 21:30 21 minutes, 30 seconds new uh hiring taking place at a senior level for international markets uh at least in the media since last few 21:37 21 minutes, 37 seconds months. So just wanted to understand what is your strategy on the export side to ramp up the industrial product offering and what kind of uh order 21:46 21 minutes, 46 seconds pipeline uh you are anticipating and the exports especially what are your plans in the US uh transportation infrastructure market. 21:58 21 minutes, 58 seconds So when you say you're seeing the news for hiring of senior personnel, do you mean to say for CG or somebody else? 22:05 22 minutes, 5 seconds Uh CG uh CG uh uh emitron and uh even on the uh some of these uh uh newer 22:12 22 minutes, 12 seconds industrial product offerings on the uh drive side and uh for the US uh railway market as well. You have done one 22:20 22 minutes, 20 seconds collaboration and uh I think uh you are working out with new uh marketing team as well in the uh various other geographies. 22:29 22 minutes, 29 seconds Right. No, I think that because see exports of course is one of the key pillars for us and we are gradually taking on it. You know it's like foot on 22:37 22 minutes, 37 seconds the gas and foot on the brake kind of a thing. So on one side as I have been talking about in last few quarters we are upgrading our manufacturing 22:45 22 minutes, 45 seconds capabilities to make sure the standards are at par with the global standards and on the other side we are expanding in 22:52 22 minutes, 52 seconds different markets in continuation to what I had spoken before uh from Southeast Asia to a bit in Europe in 23:00 23 minutes Africa to Morocco uh and a bit in US uh so those expansion are happening because that's where we are developing the 23:07 23 minutes, 7 seconds channel so it's a balance of business development and also the capacity expansion and upgradation to make sure 23:14 23 minutes, 14 seconds we are at par with those markets. So yes, that's a journey. It'll keep happening in that direction. 23:21 23 minutes, 21 seconds Okay. Okay. And my last question is on the inaugur uh uh funds in the recent quarter. So 23:29 23 minutes, 29 seconds just wanted to understand uh where you are uh exploring these opportunities. 23:35 23 minutes, 35 seconds Yeah. So I think before I get answer your second question in continuation to the previous question uh our you know the initial results that we are seeing 23:44 23 minutes, 44 seconds for our H1 our exports uh in absolute terms versus H1 of last year we are 23:51 23 minutes, 51 seconds almost 20 to 25% up so so so it's showing some bit of results on the pipeline but yes that's not a kind of 23:59 23 minutes, 59 seconds you know it'll happen on your own we have to keep working pretty hard on that so uh and Coming back to your second question in terms of capital allocation. 24:08 24 minutes, 8 seconds Yes, as I said uh one is our own capacity expansion as you looked at approximately 750 crores that we have 24:16 24 minutes, 16 seconds taken the board approval for today uh is for our internal you know managing the day-to-day business and second is also the potential amend that will keep 24:24 24 minutes, 24 seconds happening. So our strategy team is always on the hook to keep looking at the candidates for potential. So it'll be across CG as well as semiconductor. 24:33 24 minutes, 33 seconds So that's what we are actively uh looking at. 24:37 24 minutes, 37 seconds Good. I'm meeting this for the person I'm going to be from. 24:45 24 minutes, 45 seconds Uh the next question is from Thank you. 24:47 24 minutes, 47 seconds The next question is from the live line of Seb shaber from ICIC credential AMC. Please go ahead. 24:56 24 minutes, 56 seconds Yeah, thanks for the opportunity. So first question is on the cover chart. Uh so GJrononics had an order for around 500 600 cores from CLW in November 24 25:05 25 minutes, 5 seconds right so on that order where are we in terms of the execution versus the original timeline and just to that uh have we received any other follow on 25:13 25 minutes, 13 seconds orders of smaller counter yeah on kawatch I think uh we are almost on track I would say there's a delay of 25:21 25 minutes, 21 seconds about a month month and a half so hopefully uh I think there are only two last approval pending hopefully by end of December we should be a position to 25:30 25 minutes, 30 seconds get all this cleared out and start the shipments. Uh and yes, after that we have received couple of more orders 150 crores and I don't have the exact 25:38 25 minutes, 38 seconds numbers. Uh that's for both uh station coverage is also what we received the orders for. 25:47 25 minutes, 47 seconds Okay. Thanks. And second thing part uh in balance sheet the other intangible assets they've increased from 263 crores 25:54 25 minutes, 54 seconds to 427 crores. Uh any specific thing for that? What has caused this? 26:02 26 minutes, 2 seconds You know that we recently did a acquisition. So and uh in those acquisition you know these business 26:10 26 minutes, 10 seconds actually is relating to more is a design business. So what we got is more about IP and other things. So that's got accounted uh you know uh during that acquisition side. 26:21 26 minutes, 21 seconds Sure. Okay. And all the best. 26:27 26 minutes, 27 seconds Thank you. The next question is from the line of Atul Tavari from JP Morgan. 26:32 26 minutes, 32 seconds Please go ahead. Uh yes sir. [clears throat] Thanks a lot and congrats on good set of numbers. Sir on your transformative business this capacity expansion from 15,000 MBA to 26:41 26 minutes, 41 seconds 40,000 that was achieved on 1st of October. So fair to assume that you know this incremental 25,000 MVA as of now is 26:50 26 minutes, 50 seconds 100% unutilized and it will be utilized over a period of time. 26:57 26 minutes, 57 seconds No, not really. I think if you look at the order backlog that we have because you don't wait for this capacity to get ready. So you're taking the orders 27:04 27 minutes, 4 seconds because today if you see the lead time for these power transformers is customers are willing to give the orders up to 24 months from now. So that's the 27:13 27 minutes, 13 seconds way capacities are getting booked. So in fact the new plant that we are setting up so we already are you know I think we have started actually looking at booking 27:21 27 minutes, 21 seconds orders for that as well. So not in a big way but gradually that's happening. So it's it's you know like demand and supply kind of situation balance uh that 27:29 27 minutes, 29 seconds we are doing. So coming to your question from 15 to 40,000 MVA I would say almost uh most of it is uh being taken care of. 27:39 27 minutes, 39 seconds Okay. So sir I mean right from say for example uh this month we can see an annualized output of 40,000 MBA because 27:47 27 minutes, 47 seconds you have you have already orders in hand. Is that Yeah, it'll be right this month or you what do you say? 27:55 27 minutes, 55 seconds I mean because the because the plant got on 1st of October, right? We are in the first. 28:00 28 minutes So So when when we when they say from 1st October onward so which will be at proration capacity. Yes. It'll be at 40,000 prorated for the year. 28:09 28 minutes, 9 seconds Pro for the year. Yeah. Yeah. Yeah. And and for the next phase of expansion I think uh I believe is from 40,000 to 65 right. So when does that come online? 28:23 28 minutes, 23 seconds So, so next one this is 40,000 and the new plant which coming up is 45,000 MVA. 28:30 28 minutes, 30 seconds Okay. And by when it will be uh online and functioning so as per the plan that is 2728 but uh 28:37 28 minutes, 37 seconds we are the way we are executing I think we'll be much ahead of our target and the moments we have better visibility we will let you guys know. 28:46 28 minutes, 46 seconds Okay. Thank you. Thank you. Thank you. 28:52 28 minutes, 52 seconds Thank you. The next question is from the line of Sumit Kashor from Access Capital. Please go ahead. 28:58 28 minutes, 58 seconds Uh thanks for the opportunity. Uh my questions uh the first one is you mentioned that the inquiry pipeline is quite strong up 85%. But specifically 29:08 29 minutes, 8 seconds for power systems, we are seeing that the award of uh interstate TBCB project to transmission utilities in the first 29:16 29 minutes, 16 seconds half of FI26 has uh been slower uh than the previous year so far. Uh do you think that this poses any risk of 29:23 29 minutes, 23 seconds slowdown in award of power transform HV HV switch gear contract for electrical equipment suppliers in the coming 29:30 29 minutes, 30 seconds quarters relative to the past fiscal? Uh the second question is again on exports where exports were about 10% of 29:38 29 minutes, 38 seconds consolidated sales in FI25. uh can you please I mean you mentioned that the growth has been 20 25% and given your 29:46 29 minutes, 46 seconds consolidated is also 21% I'm assuming export percentage in sales has not changed much but could you also speak 29:52 29 minutes, 52 seconds about the mix of exports presently uh u broadly uh color on how much is in industrial systems and power systems and 30:00 30 minutes which areas do you expect to scale up in exports over the next two to three years yeah sure good question so what I'll do 30:08 30 minutes, 8 seconds is I let AJ you are on the call uh Why don't you take that question for transformer and then after that Goro you can answer for switch gears. 30:18 30 minutes, 18 seconds Yes sir. Uh regarding the inquiry pipeline the pipeline is strong. The decisions have been slow. Yes you are 30:25 30 minutes, 25 seconds right. Uh that is because uh lot of projects now are getting awarded uh or getting uh allocated to these states. So 30:34 30 minutes, 34 seconds there the decision making is slow. uh but we as far as we are concerned we don't see any slowdown in the order 30:41 30 minutes, 41 seconds booking because uh PSUs are still placing orders at a very fast pace power grid and then the power sector uh this 30:49 30 minutes, 49 seconds power generation sector is also opening up so we don't foresee as such any slowdown in this area 30:56 30 minutes, 56 seconds okay that is because the lead time is already so high so if there is capacity it'll get booked yeah that is one thing second is uh 31:05 31 minutes, 5 seconds transmission projects. Yeah. If there is a slowdown in the transmission project, the power generation projects are picking up at a very fast pace in the thermal space now. 31:14 31 minutes, 14 seconds Okay. 31:17 31 minutes, 17 seconds Okay. Thank you AJ and thanks for that question. I think very similar to what AJ mentioned largely switch care uh 31:23 31 minutes, 23 seconds follows what the transformer uh gets in the loop there. So I think very similar I think we have uh seen a consistent higher demand for uh stretch. I think your question was both for EHV EHV. Yes. 31:35 31 minutes, 35 seconds And also followed by the medium voltage business for us as well. So there has not been any sort of a shift towards a lower demand for this business. 31:45 31 minutes, 45 seconds Okay. My second question was on exports. 31:54 31 minutes, 54 seconds Exports uh we have been study till now. 31:57 31 minutes, 57 seconds uh but with the increased capacity uh we will be focusing more on exports uh for the s business sustainability thing and 32:05 32 minutes, 5 seconds uh we are participating in more and more projects and tying up with the state utilities uh abroad. So exports will see 32:12 32 minutes, 12 seconds a bigger push and more percentage share in the order input and revenues in the coming years. 32:21 32 minutes, 21 seconds Sure. And is our understanding right that in your overall exports the share of industrial systems will be higher for motors and drives uh versus uh what is it in its overall mix for power systems? 32:34 32 minutes, 34 seconds Sorry can can you repeat your question? 32:36 32 minutes, 36 seconds So in exports uh uh uh the share of industrial system exports for motors 32:44 32 minutes, 44 seconds drives etc will be higher as compared to what what export is for our system. So, so I think Sumid you know you know it 32:51 32 minutes, 51 seconds pretty well you know we don't give the split by details of each business and uh the numbers that you talked about is higher. So we are positive on quarter or quarter for most of the businesses. 33:02 33 minutes, 2 seconds Got it. Thank you and wish you all the best. Thank you. 33:08 33 minutes, 8 seconds Thank you. The next question is from the line of Bhika Naya from DAM Capital. Please go ahead. 33:15 33 minutes, 15 seconds Yeah, good evening sir. Thank you for the opportunity. Um so just wanted to spend some time on the is segment. We've 33:22 33 minutes, 22 seconds seen after a very long time a decline in revenues which you mentioned has got to do with the um deferment in some railway 33:29 33 minutes, 29 seconds orders. Uh would it be possible to kind of call out that amount which has gotten deferred to the next quarter and if you 33:37 33 minutes, 37 seconds can also just talk about how the demand scenario is between HT and LT Motors. uh we had also taken a price hike out here 33:45 33 minutes, 45 seconds uh about 5% as we had mentioned in the previous quarter. How is that kind of playing out? If you can just give some qualitative comments on motor and motor 33:52 33 minutes, 52 seconds demand split between LTHD particularly post the price. 34:03 34 minutes, 3 seconds Thanks. So on the railway side uh the question was specific. 34:13 34 minutes, 13 seconds Yeah. So I I think see specifics we not giving as I said you know 15 approximately 15th of uh September 34:19 34 minutes, 19 seconds onwards. We started our shipments uh which was referred for almost uh more than a month or so. So we cover some bit 34:28 34 minutes, 28 seconds of it but balance will come into this quarter. So I think that information should be good to get a feel of it what it look like. Uh coming back to your uh 34:37 34 minutes, 37 seconds voters on motor side the demand I I think the demand is fairly strong I 34:45 34 minutes, 45 seconds think in terms of inquiry pipeline especially on the HG Motors which uh I'm pretty positive about and why don't JK why don't you talk about it uh on the motors demand. 34:56 34 minutes, 56 seconds Thanks Amar. Thank you. Thank you for the opportunity and bumika a very valid question. Uh yeah the the rough estimate 35:03 35 minutes, 3 seconds the first question you asked is what is the split between the LT and the HT. LT is far more higher far more higher than 35:10 35 minutes, 10 seconds HT but uh the there is lot of big projects that are coming at the HT if I have to give a rough estimate it will be 35:17 35 minutes, 17 seconds around uh 8020 types of ratio between the LT and the HTP of business. Uh the second part of the question what you 35:25 35 minutes, 25 seconds asked is that the price increase that was implemented earlier uh there in the month of July is uh it's coming up well 35:32 35 minutes, 32 seconds it's being received well in the market and we have got good results out of it and uh we have been able to it has 35:40 35 minutes, 40 seconds compensated our uh copper and steel prices. I also want to call out that many of our uh other friends also have 35:48 35 minutes, 48 seconds increased their prices. So this is a common factor that is there in the industry. 35:53 35 minutes, 53 seconds Okay, thanks. So this basically means that the margin should kind of bounce back into the third quarter once the revenues normalize and fully benefit of the price hypes takes place. 36:03 36 minutes, 3 seconds So Bumika will not be forecasting what will be for the next as you know we don't give the guidance on that but as I mentioned I'm pretty comfortable with 36:12 36 minutes, 12 seconds the uh motor side of the business the way it is uh bouncing back. Uh yes we have to see the good days ahead. 36:18 36 minutes, 18 seconds Sure. And so lastly, if I can also just uh ask about the progress on the easy motors category. How is that progressing? Where are we uh on that? 36:30 36 minutes, 30 seconds I think uh the progress has been still slow, but I'm looking forward to some exciting days ahead. So just uh uh pause 36:37 36 minutes, 37 seconds for a few couple of days more and I think we should come back with some more information. 36:43 36 minutes, 43 seconds Um sure sir. Okay. Thanks. All the best. 36:50 36 minutes, 50 seconds Thank you. The next question is from the line of Ravi Swami Nadan from Aventis Park. Please go ahead. 36:57 36 minutes, 57 seconds Hi sir, thanks for taking my question and congrats on a good set of numbers. 37:00 37 minutes Uh my qu questions are related to the power segment. Uh trying to be slightly more granular. Uh can you give a kind of 37:09 37 minutes, 9 seconds a broad overview as to individual uh subcategories how they have grown uh during this quarter or half year like power transformers, distribution 37:18 37 minutes, 18 seconds transformers, switch gears have they grown at the same pace or there are differences in growth and similarly in terms of either revenue or order and 37:26 37 minutes, 26 seconds floor order book breakup. uh how the order book is uh across categories like renewables, coal based, thermal, 37:33 37 minutes, 33 seconds industrial applications and even breakup like power grid, SCB, private, export. 37:40 37 minutes, 40 seconds Uh any sense on that? 37:45 37 minutes, 45 seconds See of course as you know that we don't give the breakup of each business and subsegment uh details but uh the the uh 37:53 37 minutes, 53 seconds the orders that we have received it's cutting across uh most of the sectors you know whether it's power power within power there are couple of orders that I 38:02 38 minutes, 2 seconds remember are from renewables as well uh it is for the data centers so it cuts across from transmission TND so it's it's cutting across most of the segments 38:11 38 minutes, 11 seconds that you can think of so it's not a one particular segment that uh I would say we are into 38:18 38 minutes, 18 seconds understood sir and in terms of growth across uh power transformers distribution transformers in 50 years is there any big difference between growth 38:26 38 minutes, 26 seconds or is it similar uh growth in all these categories the only thing I can share right now is power is uh leading because uh as we get 38:35 38 minutes, 35 seconds into mega uh distribution 400 and 765 KV uh so so those are the more and more 38:43 38 minutes, 43 seconds inquiries on that and but others are also catching up very fast. So good news is everybody is into high double digits. 38:51 38 minutes, 51 seconds Underscript. And uh in terms of momentum of orders uh are we seeing more orders from the generation side or transmission side uh uh in in the power side? 39:02 39 minutes, 2 seconds It's across TND. 39:06 39 minutes, 6 seconds Understood. And uh a final question with respect to capacity utilization of the switch gear facility. You had mentioned that the power transformer facility is 39:14 39 minutes, 14 seconds running at almost full capacity. Uh uh how what is the number for the switch gear capacity? 39:20 39 minutes, 20 seconds Switch gear is also at about 85 to 88% right now. Uh but the again uh the expansion that we had undertaken last 39:29 39 minutes, 29 seconds couple of quarters back. So that's also getting executed in parallel. So I would say as we progress in next few quarters 39:36 39 minutes, 36 seconds we'll come down to probably 80 75 80% and again bounce back to 85 uh 80 85%. 39:44 39 minutes, 44 seconds So that's where we are operating at. Understood sir. Thanks a lot. Thank you. 39:52 39 minutes, 52 seconds Thank you. The next question is from Harshett Patel from Equit Securities. 39:58 39 minutes, 58 seconds Please go ahead. Uh thank you very much for the opportunity sir. So firstly uh in the power system uh we have outgrown 40:07 40 minutes, 7 seconds many of our competitors in the last two two and a half years. So what are the factors which has enabled us to gain 40:15 40 minutes, 15 seconds market share. Is it more about us being ready with the further capacity? 40:20 40 minutes, 20 seconds Sorry to interrupt sir but your voice is muffled. Hello. Uh is this audible? 40:28 40 minutes, 28 seconds No. Hello. Uh am I audible? Yeah. 40:36 40 minutes, 36 seconds Yeah, sure. Sir, uh my first question is on the power systems business. Uh we have outgrown most of our competitors in 40:43 40 minutes, 43 seconds the past two two and a half years. So, what factors have enabled the market share gains for us? Is it more about 40:50 40 minutes, 50 seconds being ready with the further capacities when the competitors were not ready? 40:57 40 minutes, 57 seconds Hi uh Harjut I wish I had one answer for you. It's a combination of many things but what is important is our execution 41:05 41 minutes, 5 seconds excellence which is CG edge. You can look at our website. I think that's what we are practicing every day every you know keep compressing the cycle time uh 41:14 41 minutes, 14 seconds go faster uh double the speed of what anybody else can do. I think that's what the team both AJ and Gorav from the power sector are practicing day in and 41:22 41 minutes, 22 seconds day out and that's what they're executing. So it's it's a combination of many things. If it was so simple then everybody would have done it. 41:30 41 minutes, 30 seconds Understood sir. Uh secondly uh could you throw some light on our association with Flender for expanding our US business? 41:38 41 minutes, 38 seconds If you can explain the nature of our agreement whether this is more of a contract manufacturing agreement uh for them or something else that will be very helpful. 41:51 41 minutes, 51 seconds Yeah. So I think this is uh this agreement is more for because in US we see this big opportunity and if you have 41:58 41 minutes, 58 seconds to get into uh local market in US the most of these OEMs they first ask for what happens tomorrow if I have problem 42:05 42 minutes, 5 seconds in my uh in my motor. So you have to have somebody uh ready now if there's an issue or repair is required somebody's there to service it uh at the drop of a 42:14 42 minutes, 14 seconds hat. Uh and if you start organically today to set it up I think it'll take us couple of years till we have that infrastructure. So there's the first 42:21 42 minutes, 21 seconds step into the game uh is to have a partner who is reliable and can do lot of it and they they do you know we have seen their facilities they are pretty 42:30 42 minutes, 30 seconds equipped across uh North America uh to do that. So that's a kind of association that we have. You know it'll be uh you 42:37 42 minutes, 37 seconds know kind of joint. It's a win-win situation for both of us. They get the business in terms of uh repair and remanufacturing facility. Uh and also we 42:46 42 minutes, 46 seconds get even warehouses when we send the uh motors from here. 42:51 42 minutes, 51 seconds Yes sir. Uh thank you very much for answering my questions and all the very best. You're welcome. Thank you. 42:59 42 minutes, 59 seconds Thank you. The next question is from the line of Reo Beth Buggalia from IIFL Capital. Please go ahead. 43:08 43 minutes, 8 seconds Yeah. Uh thanks. Um team, I have just one question related to power systems. 43:13 43 minutes, 13 seconds While the cycle has been doing pretty well in terms of profitability and capacity expansion strategically from the perspective of building capabilities 43:22 43 minutes, 22 seconds and expanding portfolio. Um can you highlight uh what are our thoughts in terms of broadbasing a product mix 43:30 43 minutes, 30 seconds beyond uh switch gears and transformers uh into new products uh segment which could be next generation um beyond the current cycle. Thank you. 43:41 43 minutes, 41 seconds Uh very good question Reo and uh if you I think of course as we go deeper into even let let me touch a bit on switch 43:49 43 minutes, 49 seconds gear and we'll let uh uh Goro talk about uh it'll be com combination of existing product portfolio that I talked about uh 43:58 43 minutes, 58 seconds and also a bit of power electronics. So it'll be combination. So Goro why don't you touch on that? 44:03 44 minutes, 3 seconds Yeah I think uh thank you for that uh question there. So I think as Amar rightly mentioned it's a mix of uh the 44:10 44 minutes, 10 seconds existing portfolio. So today uh beyond only switch case and circuit breakers we are also into the larger 765 KV bushings 44:19 44 minutes, 19 seconds uh both OIP as well as RAP and that's something that CG is a homegrown solution that we have produced uh large it's a new product towards the existing 44:27 44 minutes, 27 seconds portfolio that we have. Uh second touched upon power electronics. Secondly also about the green solutions. So 44:34 44 minutes, 34 seconds moving from SF6 to SF6 free is some of the critical work that the teams have been doing across the factories of NASC as well as Orurangabad from an 44:43 44 minutes, 43 seconds innovation standpoint. So yes, I think there's a clear focus along with a strong pipeline of uh new product developments that's uh getting discussed 44:51 44 minutes, 51 seconds across switch for both the units now and on the technology side where are we with respect to the GIS portfolio also? 45:00 45 minutes Does the company have any plans to get into um power um as in our reliability solutions like stratcoms or so? 45:10 45 minutes, 10 seconds Uh am you want me to take that question? Yeah. Yeah. Go ahead. Go ahead. Take it. 45:14 45 minutes, 14 seconds Okay. Uh so I think the uh first point that you uh did raise about uh the technology. Yes. On the GIS piece, I think we should be proudly coming out 45:23 45 minutes, 23 seconds with a complete make India solution for our 400 KV uh GIS in the next fiscal year. So I think that's a very proud 45:31 45 minutes, 31 seconds moment for CG to have the full homegrown solution coming out of the NASIC factory there. So yes, we should be playing very strongly in the GIS segment uh in the 45:39 45 minutes, 39 seconds future growth uh years as well. So coming on the stratcom, yes, I think uh the way our mentioned there is always a 45:46 45 minutes, 46 seconds uh eye on looking at both organic as well as inorganic conversations around technology acquisitions there. So yes, I 45:54 45 minutes, 54 seconds think there is a thought as well as the right actions around that technology piece as well. 46:00 46 minutes Thanks much and best wishes team. Thank you. 46:05 46 minutes, 5 seconds Thank you. The next question is from the line of JNA Gandhi from Ambit Capital. Please go ahead. 46:12 46 minutes, 12 seconds Hi, am I audible? Yes. 46:16 46 minutes, 16 seconds Yeah. Uh first of all, thank you for the opportunity. So my question is that as per CA's data, India has missed their 46:23 46 minutes, 23 seconds power transformer installations materially for the first of half of this year. So does this pose a as a risk for 46:30 46 minutes, 30 seconds us as it will take longer for our order to convert from backlog to sales? Will it impact the growth rates in the future 46:37 46 minutes, 37 seconds and the margins? And my second question is that with our power transformation capacity coming online to 85 GVA in the 46:46 46 minutes, 46 seconds coming years, what would be an expected mix of sales from global and local markets to maintain a healthy set of capacity utilization? 46:56 46 minutes, 56 seconds AJ can you take that? 46:59 46 minutes, 59 seconds Yeah, I I can take that. So, uh for the increased added capacity what we are planning in our new plant, we are 47:06 47 minutes, 6 seconds planning to have around 35 to 40% of the revenues coming from exports. So this is important for the business sustainability point of view also and uh 47:15 47 minutes, 15 seconds from the uh current capacities also we are as of now the exports is around uh 10% so it will grow to around 20% in 47:23 47 minutes, 23 seconds these was we cannot vacate the domestic segments as of now 47:30 47 minutes, 30 seconds also uh my first question on uh the execution delays from uh power transformation installations how would 47:39 47 minutes, 39 seconds it impact Our conversion from backlog to sales. 47:45 47 minutes, 45 seconds As of now all the developers they are taking the supplies whether in case there are delays in their projects even 47:53 47 minutes, 53 seconds then they are supporting us by taking the deliveries and storing the tmers near to the locations uh because of the supply constraints because they know 48:02 48 minutes, 2 seconds that if the project is delay if they are not taking the deliveries then these because of standard CS specifications can get diverted to other places. uh in 48:10 48 minutes, 10 seconds the long run I have a feeling with the kind of focus the government is having the right of way and this land acquisition so both things uh will catch 48:19 48 minutes, 19 seconds up and uh there won't be any delays in the long run. Yes. Uh because of uh one more reason is because of heavy rains also there were some delays this year. 48:30 48 minutes, 30 seconds Understood. Thank you so much. All the best. Thank you. 48:38 48 minutes, 38 seconds Thank you. The next question is from the line of Adita Monga from Kotuk securities. Please go ahead. 48:46 48 minutes, 46 seconds Yeah, good afternoon everyone and thank you for the opportunity and congratulations on the strong set of numbers. Uh I have two questions. Um the first one is on the semiconductor piece. 48:56 48 minutes, 56 seconds Um I wanted to get a sense from you that um especially on I think the voice is clipping. 49:03 49 minutes, 3 seconds Um is this any better for you all? Yeah, now we can hear you. 49:08 49 minutes, 8 seconds Uh great. Uh so the first question that I had was on the design business. Um uh the Azero business uh will do about a 49:15 49 minutes, 15 seconds $50 million number in revenues. How would you be thinking through this business from a 3 to 5 year perspective? 49:23 49 minutes, 23 seconds Uh both from an exports perspective where in revenues are coming in today and obviously from a domestic perspective, how would uh Agro aiming to 49:31 49 minutes, 31 seconds uh make a larger uh impact than right now? 49:50 49 minutes, 50 seconds Hello. Yes. Can you repeat the question? 49:58 49 minutes, 58 seconds Yes. So the question that I had was that um while a lot has been spoken about the OSAD business just wanted to get a better sense of how the company's thinking through the design business 50:06 50 minutes, 6 seconds which is the Azero um um semicon business uh from the current topline that is there about $50 million uh how 50:14 50 minutes, 14 seconds would the scale up happen um both from an exports as well as a domestic perspective. Thank you. 50:22 50 minutes, 22 seconds Yeah, I think it's a it's a good question and as you would appreciate this is just the beginning of it. uh we didn't just buy this company to stay at 50:29 50 minutes, 29 seconds that level. So uh we have much larger plans and that's what uh you know keeps us awake at night in terms of strategy 50:38 50 minutes, 38 seconds where do we go from here uh more and more acquisition complementing hiring more people uh more tech people to make 50:44 50 minutes, 44 seconds sure it goes in the long way. Uh now right now it is uh you know for a radio frequency business uh but we are also thinking of expanding into other technologies as well. So a lot to come. 50:55 50 minutes, 55 seconds Uh just be a bit patient uh to to keep hearing from us on that. 51:02 51 minutes, 2 seconds Um got that. The second question that I had maybe the design part we can discuss later more but on this on on just a bookkeeping question on the power uh 51:11 51 minutes, 11 seconds systems business of the 10,000 crores of of backlog which is there uh what would be the average execution period would it be closer to 1.5 years or or two? 51:24 51 minutes, 24 seconds So total backlog that we I think uh even the last order that I would say will get executed re after 24 months. Uh it doesn't mean that we have to wait for 24 51:32 51 minutes, 32 seconds months. We can do it much before but yes customers are placing orders up to that duration. 51:39 51 minutes, 39 seconds Yeah. Is that representative of the entire order book? Just trying to get a sense as in would 10,000 crores be executed like 5,000 5,000 crores over the next two years or just trying to get 51:47 51 minutes, 47 seconds a no that's why I said one of the orders that I see is going up to 24 months. So but we are filling up in between as well as we are opening the capacity. So 51:56 51 minutes, 56 seconds something will be 12 months, something will be 18 months, something will be 6 months depending on if it's a distribution transformer can go in 6 months. It's a 765 kind of a transformer 52:05 52 minutes, 5 seconds will take 18 months. So it'll be along the portfolio uh it'll keep varying. 52:11 52 minutes, 11 seconds Got that? Those are my questions and all the very best to you. Yeah. Thank you. 52:19 52 minutes, 19 seconds Thank you so much. The next question is from the line of P from Mahindra Manul Life Mutual Fund. 52:27 52 minutes, 27 seconds Please go ahead. 52:31 52 minutes, 31 seconds Uh hi sir, good evening. Uh thank you so much for the opportunity and congratulation for good set of numbers. 52:37 52 minutes, 37 seconds So just two question on the semicon part uh related to what Adita has asked. Uh so first is if I heard correctly we are 52:44 52 minutes, 44 seconds expecting revenue of around $50 million in FI26 in the current fix fiscal on X0. 52:50 52 minutes, 50 seconds Uh while if I recolct it used to do around 56 $57 million. So is it that this business is uh taking time to scale 52:58 52 minutes, 58 seconds up or or we are waiting for CG Sammy to actually come in to to have a synergy between these two businesses. 53:09 53 minutes, 9 seconds Yeah. I think what you have to appreciate is Yeah. I think if I remember the numbers they're almost same level as last year was about 55 56 53:16 53 minutes, 16 seconds million. This year if you are doing 50 million with the acquisition getting the people up and running getting the whole infrastructure done and you are reaching 53:25 53 minutes, 25 seconds that stage I would say the team would have done a fantastic job. 53:31 53 minutes, 31 seconds Sure. The second question is while we reported uh around 22 crit loss in the same segment uh just if you can please 53:40 53 minutes, 40 seconds break it down between uh CG semi loss and ex profits. Thanks. 53:49 53 minutes, 49 seconds So uh F0 is at break level so they are not making any loss at this point of time. 53:57 53 minutes, 57 seconds Sure. Thank you so much sir for answering all those question. Thank you. Thank you so much ladies and gentlemen. 54:07 54 minutes, 7 seconds That was the last question for today. I would now like to hand the conference over to Miss Reo. 55:01 55 minutes, 1 second Please go ahead ma'am. 55:04 55 minutes, 4 seconds Sure. I just conveyed my uh thanks to everyone for participating in this call. 55:09 55 minutes, 9 seconds I just wanted to check if management would like to make any closing comment. 55:15 55 minutes, 15 seconds No, thank you. Thanks for listening to us and enjoyed all the conversation and the uh relevant questions. Thank you. Uh stay tuned with us. Uh look forward 55:23 55 minutes, 23 seconds together to grow uh and see the exciting times. Thank you so much. Cheers. Thank you. 55:32 55 minutes, 32 seconds On behalf of IFF IFL Capital Services Limited, that concludes this conference. 55:39 55 minutes, 39 seconds Thank you for joining us and you may disconnect your lines now.