CG Power and Industrial Solutions Ltd — Q4 FY26

CG Power and Industrial Solutions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IIcov02hyEg Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the CG Power Q4 FY26 earnings call hosted by IIFL Capital Services. As 0:11 11 seconds a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:19 19 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:27 27 seconds note that this conference is being recorded. I now hand the conference over to Ren Renualia, 0:35 35 seconds senior vice president research of IFL Capital. Thank you and over to you. 0:43 43 seconds Thank you Vic. Um very good evening everyone. on behalf of IFN Capital like to invite uh the senior leadership team 0:50 50 seconds of PG power and industrial solutions to discuss the fourth quarter FI26 um earnings performance from the management 0:58 58 seconds team we have with us today Mr. Amar call management director and CEO Mr. Sushi Tori chief financial officer Mr. Maril 1:06 1 minute, 6 seconds EP drives and automation and international motors business Mr. Gor makija vice president and APD business 1:14 1 minute, 14 seconds Mr. AJ Jen vice president transformer business Mr. Dhanjay Bapat vice president railway business and Mr. 1:21 1 minute, 21 seconds Jender Khan EVP motors business India subcontinent I now like to hand over the call to Mr. Ramar for his opening 1:29 1 minute, 29 seconds comments and um explain us how do we deliver um such stellar performance um in the business especially power system 1:36 1 minute, 36 seconds surprising yet again. Thank you and over to you 1:51 1 minute, 51 seconds please go ahead. 2:05 2 minutes, 5 seconds Yeah, thanks. Thanks and team. Uh good afternoon everyone and welcome to CG earnings call. Uh I'm happy to share 2:12 2 minutes, 12 seconds with you all that uh CG had once another strong set of results for the quarter 2:19 2 minutes, 19 seconds and year ended 31st March 26. uh reflecting our continued momentum powered by disciplined execution and strategic focus. 2:29 2 minutes, 29 seconds This is a record fiscal year performance for CG in recent times. Very strong Q4 2:36 2 minutes, 36 seconds caps off a record fiscal year with highest ever standalone revenue, order book and PBT after accounting for 2:45 2 minutes, 45 seconds exceptional items. Our Q4 26 sales grew by 22% year-over-year. PBT at 43% 2:53 2 minutes, 53 seconds year-over-year with 260 basis points margin expansion delivering a strong finish to a record year. And for the 3:01 3 minutes, 1 second full year, our sales grew by 21% uh PBT at 34% year-over-year with 143 basis 3:08 3 minutes, 8 seconds points margin expansion and again making it a it strongest standalone fiscal performance yet. 3:15 3 minutes, 15 seconds Further, the order flow remained pretty strong during the quarter with penetration into several new and emerging verticals and markets, taking 3:24 3 minutes, 24 seconds the order backlog up 59% year-over-year to uh 15,719 crores and offering a strong revenue visibility for financial year 27. 3:38 3 minutes, 38 seconds Now as we go deeper into standalone performance starting with Q4 uh the aggregate sales for the quarter 3:45 3 minutes, 45 seconds was high at 3,129 crores recording 22% as mentioned earlier uh profit after tax 3:52 3 minutes, 52 seconds uh was higher at a growth of 49% uh at 412 crores which is 13.2% 2% of 3:59 3 minutes, 59 seconds sales as against 275 crores which was 10.7% of sales in Q4 financial year 25. 4:08 4 minutes, 8 seconds Return on capital employed uh for the quarter was at 27% and order intake for the quarter was 455 crores uh which is 4:17 4 minutes, 17 seconds 23% growth year-over-year and unexecuted backlog at a close closure of uh 4:24 4 minutes, 24 seconds financial year 26 was at 15,719 crores which is 59% up year-over-year. 4:34 4 minutes, 34 seconds Going further deep into standalone performance for financial year 26. Uh the sales was at 11,331 4:42 4 minutes, 42 seconds crores with a growth of 21%. Profit after tax was at 39% at uh 13 1,352 4:50 4 minutes, 50 seconds crores uh which is 11.9% of sales as against 974 crores which was 10.4% of 4:57 4 minutes, 57 seconds sales in financial year uh 25. uh return on capital employed for the year was 22%, order intake for the year was 5:06 5 minutes, 6 seconds 17,574 crores which is 30% growth year-over-year and unexecuted order 5:14 5 minutes, 14 seconds backlog as of close of the financial year was at 15,719 crores which is 59% up versus the last year. 5:25 5 minutes, 25 seconds Now moving to the sector wise uh or the segment wise performance starting with industrial systems uh while performance 5:33 5 minutes, 33 seconds for Q4 continued on a sequential upward trajectory despite volatility and the rising commodity costs uh the aggregate 5:42 5 minutes, 42 seconds sale for the quarter Q4 uh was at 1,643 crores which is 5% up with robust 5:50 5 minutes, 50 seconds doubledigit growth in the motors which for the last few quarters you might be must be hearing me think that we have 5:57 5 minutes, 57 seconds stabilized a lot and the team is doing a fantastic job to stabilize that. So that has started showing the results there. 6:03 6 minutes, 3 seconds Uh PBIT was at 157 crores 9.6% of sales as against 176 crores uh 11.2% of the sales in Q425. 6:14 6 minutes, 14 seconds Margin deviation is due to the mix change and the competitive pricing in railways business as well as higher MSR for motors due to commodity impact. Uh 6:24 6 minutes, 24 seconds but the discipline pricing along with focused efforts on efficiency gains via cost and productivity programs over the 6:32 6 minutes, 32 seconds last few quarters help partially mitigate this adverse impact. Uh business continues to prioritize margin 6:39 6 minutes, 39 seconds expansion uh through ongoing cost initiatives uh structural improvements pricing and a mix uh shaping. We have 6:47 6 minutes, 47 seconds improved margins by 20 basis points sequentially and the order intake for the quarter was 1,478 crores and the 6:54 6 minutes, 54 seconds unexecuted order backlog towards the closure of the financial year was 3,075 crores. 7:02 7 minutes, 2 seconds Healthy growth in orders and order backlog in motors and drives also was a contribution to this. And when we come 7:09 7 minutes, 9 seconds to the fullear performance, the sales for the year was 6,197 crores which is 6% up with a healthy 7:17 7 minutes, 17 seconds growth uh primary motors and PBIT was at 613 crores which is 9.9% of the sales 7:26 7 minutes, 26 seconds gain 77 crores 12.1% uh you know in the previous year and that's the margin deviation that you see here is due to 7:34 7 minutes, 34 seconds the mix change in the competitive pricing in railway business and a bit from the fact of we on our own slowing down because of the tariff impact from uh uh from some countries that we had. 7:46 7 minutes, 46 seconds So that was a conscious effort uh to delay that then discipline pricing along with focus efforts on efficiency gain 7:53 7 minutes, 53 seconds via cost and productivity program over the last few quarters helped partially to mitigate the adverse impact. uh and business continues to prioritize 8:01 8 minutes, 1 second marginal expansion through ongoing uh indicators and structural improvements in sizing and mix uh shipping. 8:09 8 minutes, 9 seconds The order intake for the year was 6,365 crores and the unexecuted order backlog as of closure of uh the year was 3,75 8:18 8 minutes, 18 seconds crores and uh there backlog. 8:24 8 minutes, 24 seconds Now if I go to the other segment which is the power systems uh the performance continued upwards 8:32 8 minutes, 32 seconds trajectory with the sustained margins and continues to be in Q4 uh underscoring the robust market dynamics with disciplined execution. The 8:40 8 minutes, 40 seconds aggregate sales for the quarter was at 1,487 crores with a jump of 50% year-over-year reflecting strong 8:49 8 minutes, 49 seconds execution discipline. uh PBIT was at 354 crores at 23.8% of sales as against 28 8:58 8 minutes, 58 seconds crores which was at 21% of sales in Q425 and significant 287 9:05 9 minutes, 5 seconds basis points margin expansion underpinned by efficient order execution and strong operating discipline. 9:13 9 minutes, 13 seconds Order intake for the quarter was 3,27 crores which is 72% growth year-over-year and unexecuted backlog as 9:21 9 minutes, 21 seconds on 31st of March 26 was 12,644 crores 91% up year-over-year offering 9:29 9 minutes, 29 seconds revenue visibility spanning several future quarters. 9:33 9 minutes, 33 seconds When we consider fullear performance for power uh the aggregate sales for uh was higher at 5,138 9:42 9 minutes, 42 seconds crores uh with a rise of 46%. uh reflecting it strong execution discipline PBIT was at 1,123 crores 9:51 9 minutes, 51 seconds 21.9% as again 668 which was at 19% of sales in financial year 25 uh which again 9:59 9 minutes, 59 seconds comes to 281 basis points of margin expansion and underpinned by the efficient order execution and strong 10:06 10 minutes, 6 seconds operating uh leverage uh order intake for the year was at 11,210 10:13 10 minutes, 13 seconds crores 69% growth year-over-year and unexecuted backlog as on 31st March was 12,644 10:22 10 minutes, 22 seconds crores which is 91% up year-over-year offering revenue visibility spanning several future quarters. 10:30 10 minutes, 30 seconds With this uh we conclude deep dive into our standalone performance and I will now move to the consolidated performance and uh as you know consolidated results 10:39 10 minutes, 39 seconds uh includes the performance of our subsidiaries uh in Sweden, Germany, Netherlands uh CGS product and CG 10:47 10 minutes, 47 seconds semiconductor semi uh gigronics uh ex nonoperating uh non-operating subsidiaries. Starting with Q4 10:56 10 minutes, 56 seconds performance, uh aggregate sales for the quarter were up at uh 3,442 crores at a growth of 25% year-over-year. Uh profit 11:05 11 minutes, 5 seconds after tax was 32% higher at uh 34 62 crores which is 10.5% of sales for the 11:13 11 minutes, 13 seconds quarter as against uh 274 which was 10% of the sales in Q4 last year. 11:21 11 minutes, 21 seconds The margin gains are driven by strong performance were offset by continued investment in talent pool for semiconductor business and total 11:30 11 minutes, 30 seconds semiconductor segment impact of 38 crores which is 110 basis point. 11:36 11 minutes, 36 seconds Now return on capital employed analyze what was the book sent 5,335 11:43 11 minutes, 43 seconds crores and unex as on March 26 was at 61% year-over-year 11:54 11 minutes, 54 seconds at 17,13 and when we consider our fullear consolidated performance aggregate sales 12:01 12 minutes, 1 second for the year was 12,418 crores was with a growth of 25%. 12:08 12 minutes, 8 seconds PAT was at 27% at 1,00 9.9% of sales for the year as against 12:16 12 minutes, 16 seconds 973 crores which was 9.8% of sales in venture area 25. Margin gains are driven by strong standalone performance and 12:25 12 minutes, 25 seconds were offset by continued investment over talent pool as mentioned before and return on capital employed for the year 12:31 12 minutes, 31 seconds was at 20% order intake for the year was 19,616 crores 33% growth and unexecuted backlog 12:40 12 minutes, 40 seconds as on 31st of March was 61% up at 17,17 crores. 12:48 12 minutes, 48 seconds Now moving to the key events for the last financial year. Uh as you would have seen we had announced that uh we have you know we back order for the 12:56 12 minutes, 56 seconds supply and servicing of 765 KV transformer packages uh from uh the large customer power grid corporation. 13:04 13 minutes, 4 seconds Uh uh you know that was total order value was about 641 crores is the highest single order domestically 13:11 13 minutes, 11 seconds received in the transformer business in CG. The order is expected to be completed between 18 to 36 months. 13:18 13 minutes, 18 seconds uh and also CG secured the single largest order of 244 crores for ESP business from Techno for supply of 13:25 13 minutes, 25 seconds packaging transformer circuit breakers, lightning aristas and combination and CG also uh launched successfully and 13:34 13 minutes, 34 seconds completed QIP for equity shares and raised 3,000 crores. The issue opened on 30th June and closed on 3rd of July. It 13:42 13 minutes, 42 seconds was overs subscribed by 3X and saw participation from both Indian and global marquee investors. 13:51 13 minutes, 51 seconds CG semi a subsidy of CG unveiled one of the India's first end to end OSAT facility in Sanin Gujarat and with this 13:59 13 minutes, 59 seconds launch of G1 facility CG semi becomes one of the first fully served OSAD 14:06 14 minutes, 6 seconds providers offering solutions across both traditional and advanced packaging technologies. This marks a major step in 14:14 14 minutes, 14 seconds strengthening India's semiconductor capabilities and supporting the country's goal of becoming self-reliant 14:21 14 minutes, 21 seconds while also serving global markets. The G1 facility will operate at a peak capacity of half a million units per day 14:29 14 minutes, 29 seconds which we are trying to even increase that output over the next few months or quarters. we should be in that situation 14:36 14 minutes, 36 seconds and G2 facility located about 3 kilometers from G1 is under construction [snorts] expected to be completed by end 14:43 14 minutes, 43 seconds of uh 2026 once operational G2 will scale up to the capacity of approximately 14 and a half 14:51 14 minutes, 51 seconds million chips per day. Together the two facilities are projected to generate about 5,000 direct and indirect jobs in the coming years. 15:01 15 minutes, 1 second Now CTI is also eligible for capital assessment assistance uh as per the scheme for setting up OSAT facility uh 15:10 15 minutes, 10 seconds launch in India semiconductor mission ISM under the Ministry of Electronics and Information Technologywide approval 15:18 15 minutes, 18 seconds dated 8th March 2024. The approval recovers the 5-year period from financial year 2425 to 2829 for a total 15:27 15 minutes, 27 seconds project cost of 7,584 crores with central government assistance of 3,51 15:34 15 minutes, 34 seconds cr and additional state government support equating to 40% of the central government assistance coming to about 15:41 15 minutes, 41 seconds 1,400 crores. The fiscal support agreement was signed on January 17, 2025 and the trust and retention account 15:49 15 minutes, 49 seconds agreement was signed on September 15, 2025. 15:53 15 minutes, 53 seconds The board of directors on 29th October 25 approved a green field expansion for switch gear business with an investment 16:00 16 minutes of 748 crores net of taxes. The expansion is proposed considering the expected increase in demand for medium 16:08 16 minutes, 8 seconds voltage and extra high voltage uh circuit breakers, instrument transformers, uh gas insulated switch 16:14 16 minutes, 14 seconds gears for domestic and also to the exports market. CG secured about uh 900 16:22 16 minutes, 22 seconds cr worth of power transformer order which was uh uh a substantially large one. Uh it's for the data center in 16:30 16 minutes, 30 seconds United States. The order was received on 16th of January 26 and is the largest single order uh received by CG for 16:37 16 minutes, 37 seconds supply of power transformers. And under under this contract, CG will supply uh the transformers specifically engineered 16:44 16 minutes, 44 seconds to meet the stringent reliability, efficiency and uptime requirements of hypers scale data center applications. 16:52 16 minutes, 52 seconds This order will be executed for a delivery period of 12 to 20 months with the delivery terms of FAS Mumbai port uh 17:00 17 minutes as the inco terms. The board of directors of the company at its meeting held on January 27 uh 2026 considered 17:08 17 minutes, 8 seconds and approved the payment of interim dividend of 1.3 per equity share. Uh that is 65% of the face value of Indian 17:16 17 minutes, 16 seconds rupees 2 per share for financial year 2526. 17:20 17 minutes, 20 seconds With this I conclude my opening remarks and uh audited financial statements with detailed notes are available as part of stock exchange filing and on our company 17:29 17 minutes, 29 seconds website. Thank you so much for listening in and over to you Renu for Q&A. 17:42 17 minutes, 42 seconds Hello Reu ma'am. 17:44 17 minutes, 44 seconds Yeah, can you open the session for Q&A please? Thank you. 17:50 17 minutes, 50 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone phone. If you 17:59 17 minutes, 59 seconds wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands while asking a question. Ladies 18:08 18 minutes, 8 seconds and gentlemen, we'll wait for a moment while the question cue assembles. 18:17 18 minutes, 17 seconds The first question is from the line of Ankur Sharma from HDFC live. Please go ahead. Uh yeah, hi sir, good afternoon. 18:25 18 minutes, 25 seconds Uh thanks for the opportunity. I have three questions. First uh you know it's good to hear that you know we finally seeing double digit growth in uh motors. 18:33 18 minutes, 33 seconds Uh just wanted to understand uh you know how much is volume growth and how much is uh priceled. 18:40 18 minutes, 40 seconds uh also uh you know given the current uh inflationary environment uh how much more of price hike uh you know would you 18:47 18 minutes, 47 seconds intend to take uh in the motor side of uh the business? 18:53 18 minutes, 53 seconds Sure Ankur I think a great question. Uh so on the motor side I would say it was a combination of uh the price increase 19:00 19 minutes that we got from there from the customers and a combination I would say about 50 50% of both and the volume hike 19:07 19 minutes, 7 seconds as well. So the volume hike is almost in sync with the market mode that we are seeing. Uh but also we can let our uh 19:15 19 minutes, 15 seconds you know pricing leakage also to happen from there. 19:21 19 minutes, 21 seconds Okay. Okay. And and how much more do you think you may have to take? I mean how much uh you know to cover the it purely depends on you know because we 19:30 19 minutes, 30 seconds keep a laser sharp eye on focus eye on the commodity inflation the way it is happening uh because it's a little 19:37 19 minutes, 37 seconds tricky for motors or drive business versus some of the large long lead item because where you get the PBC so we keep 19:45 19 minutes, 45 seconds a laser sharp focus on how it is going or the predictions on that and basis that we take the decision case to case basis maybe it's not required but what 19:52 19 minutes, 52 seconds we are also honing our skills on is the pricing discipline you know how do we make sure that we are not having the 19:59 19 minutes, 59 seconds leakage for uh by giving additional discounts so I think that's another thing that we are working closely on 20:07 20 minutes, 7 seconds okay fair okay okay second question sir would be on the uh power product orders uh you know while it's very very strong 20:16 20 minutes, 16 seconds given we got this 900 K or you know order for the uh data center but if I exclude that and I look at the domestic 20:23 20 minutes, 23 seconds orders you know that's up about 20% you know X of that data center the order you know was up about 16% last quarter 20:31 20 minutes, 31 seconds sequentially we are in that 2200 K ballpark so uh you know I'm just trying to understand is this like the more sustained kind of growth rate that 20:39 20 minutes, 39 seconds we we should be kind of expecting in that 15 20% ballpark as we head into next year uh obviously the base also starts catching up uh just your thoughts 20:48 20 minutes, 48 seconds on the overall you know uh trajectory here on the uh domestic transform of power production. Yeah. 20:57 20 minutes, 57 seconds So I think Ankur the you know if I if I had to give a short answer the game is just started. So so 900 rows is what we 21:05 21 minutes, 5 seconds had to report because it was a substantial order that we have but after that also the app is open and as we you know put our feet on the ground outside 21:14 21 minutes, 14 seconds India as well uh the you know anything we touch you know it just opens up. So there's so much of opportunity available for everybody. uh you just need to know 21:22 21 minutes, 22 seconds how to encash on it, how to make sure that you execute with the right quality, right standards, right reliability. I think that's what will be the 21:30 21 minutes, 30 seconds differentiation nothing else. And if you you should have the appetite on that. So so I'm not going deeper whether it's transformer or it's switch gear but I 21:38 21 minutes, 38 seconds think overall for power we see a uh still see a huge uh demand all over the world. 21:45 21 minutes, 45 seconds No fair I I understand X of India specific of India is what I was talking about. How would you see the Indian power product market shaping up as you head into the next couple of quarters? 21:55 21 minutes, 55 seconds Sure that that that's also growing at a very very fast pace you know in fact uh as we are adding if you see just one year back we were at some 18 17,000 MVA 22:04 22 minutes, 4 seconds capacity for transformer today we are almost close to 65,000 MVA that I don't think anybody has done that kind of 22:11 22 minutes, 11 seconds increase and still we feel as we beat the large customers or even the government uh uh companies uh in the in 22:19 22 minutes, 19 seconds the utility sector what we keep hearing give us more give us more nobody's saying stop it So I think it's a it's a 22:26 22 minutes, 26 seconds good it's like a call for power sector in India as well. 22:31 22 minutes, 31 seconds Okay. Okay. And just one last one is on the balance sheet. Uh you know I see this item called other financial assets 22:37 22 minutes, 37 seconds uh totaling almost 3,000 crores uh you know in Q4. Uh can you just help us understand what is that? No 22:45 22 minutes, 45 seconds this is that you know the QIP money which had come up. So it is parked into the different uh asset class. Got that. Great. Okay. Got that. Okay. Thank you so much. 22:57 22 minutes, 57 seconds Thank you. A reminder to all the participants, please restrict yourself to two questions. The next question is 23:05 23 minutes, 5 seconds from the line of Mohit Kumar from ICICI securities. Please go ahead. 23:10 23 minutes, 10 seconds Yeah, good afternoon sir and thanks for the opportunity. Uh Mike first question is can you help us with the GGronics 23:17 23 minutes, 17 seconds order inflow and how did the year panned out in terms of revenue a bit and how do you see the the order outlook in the segment here? 23:30 23 minutes, 30 seconds Yeah mo so I think uh gtronics if your question is specific to the order book I think it's uh pretty uh strong right 23:38 23 minutes, 38 seconds now. I think we should have the just working we should have the you know I think the order backlog should be to tune of close to,000 crores approximately. 23:48 23 minutes, 48 seconds So right now you know the second question might come for you know how when do we start executing uh we are at 23:56 23 minutes, 56 seconds the last leg of the approval process which is the passenger trials uh which is already going on. So there are about 24:03 24 minutes, 3 seconds as of today morning 12 trials have already been completed and uh so I think maybe another month month and a half uh all these trials 24:11 24 minutes, 11 seconds should be done. So, so then you start executing and how how what was the last year 24:19 24 minutes, 19 seconds revenue epit and pat if the number is available with you available? You mean for GGT or what? 24:26 24 minutes, 26 seconds GG gonics. Gonics. Yeah. What your what's your question? Sorry. 24:33 24 minutes, 33 seconds My question is uh what was the revenue and profitability for the GGronics especially? 24:39 24 minutes, 39 seconds Okay. So they are at uh I think at 100 cr at a full year basis and they are making money they are not losing the money they are at uh you know at least 24:48 24 minutes, 48 seconds around 4 to 5 cr pbt number my second question is can you help us with the understand understand the 24:56 24 minutes, 56 seconds receivable jump in receable which was 2,000 cr last year I think it has jumped to 2,900 cr if I'm not wrong so it has 25:03 25 minutes, 3 seconds up by around maybe uh 50% while the top end is up by 20% odd 25:11 25 minutes, 11 seconds No, you are talking about the trade receable. Yes. Yes. Yes. Only trade receivables. Yes. Yes. 25:17 25 minutes, 17 seconds Okay. So you look at that uh the growth which is coming mainly in the power segment, right? So if you look at even that uh the return of capital employed 25:26 25 minutes, 26 seconds on the power side is more than 100% plus. So the receivables which are there today that is more is coming from the power side and the average credit period is ranging between 90 to 100 days. 25:38 25 minutes, 38 seconds Mhm. 25:39 25 minutes, 39 seconds Understood. Understood. Okay. Thank you, sir. That's Thank you. The next question is from the 25:47 25 minutes, 47 seconds line of Harshett Patel from Aqua Securities. Aquir Securities. Please go ahead. 25:55 25 minutes, 55 seconds Hi sir. Uh thank you very much for the opportunity. Sir firstly on motor uh what would be the mix of IE3 and above 26:04 26 minutes, 4 seconds in our overall S526 volume and where do you see that growing in next two to three years? Does this change in mix 26:13 26 minutes, 13 seconds help our margins or this change in mix will be marginal? 26:20 26 minutes, 20 seconds So the specific I'm not allowed to give exact numbers of I3, I2, I4 numbers but I can tell you it's not very substantial 26:28 26 minutes, 28 seconds at this point of time. Uh because even though we talk about energy efficiency but Indian market is a bit slow on 26:36 26 minutes, 36 seconds adoption of I3, I4 I5 technologies. So but I'm sure it's going to pick up in next couple of years uh as government is tightening and the need for energy is 26:45 26 minutes, 45 seconds increasing further. So and our R&D and development is also accelerating the same you know to complete the to have a 26:52 26 minutes, 52 seconds complete portfolio of I3 I4 motors. So that is uh progressing well. So to your question uh to be specific uh it's uh 27:00 27 minutes not very big uh in terms of the percentage of the overall portfolio because of market size not because we cannot supply 27:09 27 minutes, 9 seconds understood. Uh secondly on the uh GIS uh we were in the development stage for 440 27:16 27 minutes, 16 seconds KV GIS. So if you could share an update on its commercialization and also the 27:21 27 minutes, 21 seconds development plans for 765 KVGI if I G you want to pick up that question? 27:30 27 minutes, 30 seconds Yeah sure Raman so uh thank you for that uh question. So uh for 400 KV GIS uh the 27:38 27 minutes, 38 seconds plan is exactly on the uh schedule there. We have already tested the phase one of our uh GIS course and the phase two is scheduled between quarter 2 and 27:46 27 minutes, 46 seconds quarter 3. So yes uh once we have the type test done in any of these international labs we should be out with our commercialization for 400 KV GIS. 27:55 27 minutes, 55 seconds Yes. Uh further to that 765 KV is uh on the conversation there. Yeah. So 202 uh7 28:04 28 minutes, 4 seconds financials would see the commercialization happening for 400 KBG. 28:10 28 minutes, 10 seconds Understood. Lastly u if you could share an update on the drives business in terms of how much sales assembly value 28:19 28 minutes, 19 seconds addition localization that we are now uh doing in India. 28:26 28 minutes, 26 seconds So, so drives I think there's a series of new product launches that is planned from April onwards. It's already started 28:34 28 minutes, 34 seconds getting launched you know it's called AMX drives yeah which is a next generation uh drives and again uh low voltage drives and medium voltage the 28:43 28 minutes, 43 seconds percentage is not so high but uh low voltage drives is almost 100% indigenous. 28:54 28 minutes, 54 seconds The next question is from the line of Sumit Kashor from Access Capital. Please go ahead. 29:02 29 minutes, 2 seconds Thanks for the opportunity. Uh phenomenally strong results in power systems. uh could you give us an update on the uh power transformer capacity 29:10 29 minutes, 10 seconds expansion how that's panning out and what are the uh uh uh sort of the timelines uh as you add capacity and 29:18 29 minutes, 18 seconds reach your target. Uh the second question is on the uh uh export uh business within uh CG. So what has been 29:27 29 minutes, 27 seconds the scale or size of exports overseas revenue uh separately for power systems 29:33 29 minutes, 33 seconds and uh industrial systems in uh uh FI26 and what is your outlook for growth uh 29:41 29 minutes, 41 seconds uh through FI27? What are the opportunities that you are pursuing? Those are my questions. 29:47 29 minutes, 47 seconds So uh AJ if you can take the first question in terms of transform capacity and then uh send it back to me for the exports I will answer. 29:56 29 minutes, 56 seconds Thanks. Thanks for the question. Uh regarding the transformer capacity addition, uh we have completed the round field expansions both in Gualia and 30:04 30 minutes, 4 seconds Bopal. The Gualia facility has now capacity increased from 6,000 to 10,000 MB and uh the Mandep Bopal facility. So 30:14 30 minutes, 14 seconds there we have done capex and uh as for the capex as for the capex plan the 30:20 30 minutes, 20 seconds capacity is uh increased to 40,000 MB first and then we had our lean uh plant 30:27 30 minutes, 27 seconds we worked along with the lean uh uh lean uh consultant and this capacity has 30:33 30 minutes, 33 seconds grown to further 65,000 MBA at the end of the last year. Now for the uh forthcoming additions and capacity of a 30:41 30 minutes, 41 seconds green field expansion is in prog eruption is in progress and uh we hope to commission the plant somewhere 30:49 30 minutes, 49 seconds between July and August and initially we will be starting with a capacity of around 25 to 30,000 MBA and by the end 30:57 30 minutes, 57 seconds of the calendar year we will be touching the peak of 45,000 MBA there. So uh as of now we total up between uh Guier and 31:05 31 minutes, 5 seconds Bopal we have a capacity of uh 75,000 MBA and another 45,000 MBA to be added by the end of this year. So this will be 31:13 31 minutes, 13 seconds around 1 lakh 10,000 MBA by the end of this financial till end of year over to you. 31:22 31 minutes, 22 seconds Okay. Thanks. Thanks AJ. U and I think Sumit on your other question uh we will not give the split of exports wide 31:29 31 minutes, 29 seconds business but yes uh exports and services is a focus area for us. The only thing I can talk about is both the areas we have 31:37 31 minutes, 37 seconds more than doubled uh our order back bookings uh between last year and this year. So and uh we have much larger 31:46 31 minutes, 46 seconds aspirations. So more to come. So stay tuned on it. uh exports and services will stay as our key focus uh areas. 31:59 31 minutes, 59 seconds Thank you. The next question is from the line of Atul Tiwari from JP Morgan. Please go ahead. 32:06 32 minutes, 6 seconds Yeah. So my question is uh again on the motors and drive business. Uh so since the start of the war and because a lot 32:13 32 minutes, 13 seconds of clientele we understand is theme M andme so how has the demand been for you know that part of your business where 32:19 32 minutes, 19 seconds you sell stuff tome 32:29 32 minutes, 29 seconds so see our for motors and drives our uh exforce is not substantial today so uh 32:37 32 minutes, 37 seconds I'm I'm keeping out our Europe European business for uh rice because that is primarily the European plant which uh 32:45 32 minutes, 45 seconds which supplies to Europe as well as to US uh that is going on on that geography. So there's not any specific 32:53 32 minutes, 53 seconds uh dip or anything that we see from uh these regions because of war. 32:59 32 minutes, 59 seconds But what about in India? I mean I believe uh you will be selling to small industries quite a bit, right? 33:06 33 minutes, 6 seconds Is the demand holding up in India or is there an impact on demand because of you know shortage of gas and we don't see the so we don't see the dip 33:14 33 minutes, 14 seconds in that in fact you know with our GTM getting activated now with the senior leaders in place uh in fact we see improvement in the order index 33:23 33 minutes, 23 seconds okay so good to know and then my last question is on again the transformer capacity so so currently operational 65 kVA uh how much of it will be 400 KVA 33:33 33 minutes, 33 seconds plus capacity or is it funible across all the KV it is it is across uh all all the ratings that you have even up to 765 in 33:42 33 minutes, 42 seconds fact we are now uh getting a new plant coming in up to 1200 uh also 33:53 33 minutes, 53 seconds thank you the next question is from the line of Amit Mahavar from UBS please go ahead 34:01 34 minutes, 1 second I have two quick questions first is uh on the power sorry to interrupt Amit sir, your voice is very low. Can you just get the headset little bit closer? 34:11 34 minutes, 11 seconds Is it is it fine now? Yes. Okay, you can do it. Thank you. 34:15 34 minutes, 15 seconds Yeah, um I think first of all congratulations on great s of results. 34:20 34 minutes, 20 seconds Um on the power business when you trapped the American market beyond data centers for American grid utilities. 34:30 34 minutes, 30 seconds Yeah, Amit, I couldn't hear you. You'll have to come close to the mic. 34:39 34 minutes, 39 seconds S the line for Amitsa has been dropped. 34:42 34 minutes, 42 seconds I'll move for the next question. The next question is from the line of Aditria Mon from Kodak Securities. 34:48 34 minutes, 48 seconds Please go ahead. 34:53 34 minutes, 53 seconds Yeah, thank you for the opportunity and I hope I'm audible to you all. 34:59 34 minutes, 59 seconds Can you speak a little bit louder please? 35:01 35 minutes, 1 second Uh sure I will do so. Um firstly congratulations to the entire team on a very strong set of results once again. 35:08 35 minutes, 8 seconds Um the first question that I had uh from my side was um if you could give us a sense of uh the addressable market on 35:16 35 minutes, 16 seconds the GIS side in u the 4765 KV category um domestic overseas whichever you want 35:25 35 minutes, 25 seconds to going to think through today how do you think through the rest of market for yourself? 35:31 35 minutes, 31 seconds Uh I think Boro if you want to answer that of course not going too specific into the ratings uh but you can generally talk about GIS market. 35:42 35 minutes, 42 seconds Yeah. So uh not to get into any uh specifics of the details of GIS today if you see the overall grade today would 35:51 35 minutes, 51 seconds stand close to about 12,000 odd corres of which I believe around 24 30% still 35:58 35 minutes, 58 seconds would be the rest of them could be an AIS figure so that's a quantum possibly a potential acceptable market that you could also be aiming at in future. 36:10 36 minutes, 10 seconds Sure. Um understood and I'm assuming this is a domestic part. Is there also an overseas part that you believe can fall inside? 36:20 36 minutes, 20 seconds Yes, I think as mentioned I think exports as well as service remains our key focus. So whatever we are uh developing or whatever is under plan is 36:28 36 minutes, 28 seconds both for domestic as well as exports for product development whether it's 145 KV GIS uh ranging to 170 245 as well as 400 36:37 36 minutes, 37 seconds are under plan for both domestic and international markets. 36:43 36 minutes, 43 seconds Understood. Uh, one of your peers was talking about and in the similar zone that you are in terms of capabilities was talking about moving on the HBDC 36:51 36 minutes, 51 seconds side of things. Um, is there a plan that the company has and what are the key milestones that they may have to achieve 36:58 36 minutes, 58 seconds to kind of reach that level of capabilities? Yeah. 37:02 37 minutes, 2 seconds Yeah. So, we are we you know it's still at the infancy stage. We have laid down a bit of road map on that but uh the 37:10 37 minutes, 10 seconds plan is not fully mature. So when we are ready for it we'll surely share. 37:15 37 minutes, 15 seconds Sure. Maybe the final question from my side uh this is more on the semiconductor part. Um you made um uh um an initial investment over 50 crores 37:24 37 minutes, 24 seconds inside edge cortex. Could you talk a little bit more about that and how to think through investments um inside 37:31 37 minutes, 31 seconds semiconductor design uh from here on maybe a little bit more on the medium-term basis here. Thank you. That'll be my final question. 37:38 37 minutes, 38 seconds This is this is uh you know just uh one one of the uh steps that is into this direction. You must have heard me uh 37:46 37 minutes, 46 seconds every quarter in the earnings call or any of the interactions that um especially is now being called J. 38:01 38 minutes, 1 second Just a moment. Is it okay? 38:10 38 minutes, 10 seconds Can you hear me? Yes sir. Yes. Yes. 38:16 38 minutes, 16 seconds Okay. So, let me repeat. So uh what I was saying is that uh so these 38:23 38 minutes, 23 seconds investments as you would have heard me in last couple of quarters that uh we are looking at the detailed pipeline of candidates on potential MEA to M M&A to keep building on our design capability. 38:35 38 minutes, 35 seconds So the first step was on the uh RF design capability but that's not where actually stops. uh so the investment that you see is just one step forward in 38:44 38 minutes, 44 seconds that direction and you know especially with AI thing coming in uh there's so much every day the technology is changing so you'll see more and more of 38:52 38 minutes, 52 seconds these investments coming into even these startups or these kind of companies where uh we will get to know the latest in the world that is happening so more 39:00 39 minutes to come on that thank you 39:08 39 minutes, 8 seconds the next question is from the line of Rahul Gazari from Mercury Mercury Capital. Please go ahead. 39:17 39 minutes, 17 seconds Yeah. Hi Amar. Uh I have a question on motors. Are you able to hear me? Yes. 39:24 39 minutes, 24 seconds Okay. So on the motors, is it fair to say that the worst is behind and we can see improvement in uh growth and margin 39:32 39 minutes, 32 seconds from here? uh and also you know I think you've talked about this earlier you know where you've taken some price hike uh but through the last entire how much 39:40 39 minutes, 40 seconds price hike did you actually take and your comments on competitive intensity and market share uh in the motors that's 39:48 39 minutes, 48 seconds the first question okay super uh to start with you your question was 39:56 39 minutes, 56 seconds how much price increase did we take is about all put together it was 5 7 and 1/2 so total of 17 1.5% uh pricing increase that we did in the 40:05 40 minutes, 5 seconds last uh three to four quarters uh and with decent realization. Uh now good news also in that you know uh the team 40:13 40 minutes, 13 seconds led by Jatinder who leads this business is uh they have kind of maintained their market share uh in spite of such a steep 40:21 40 minutes, 21 seconds price hike. Now I generally say that we are blessed to be the market leader. So the moment we do something like this so everybody else follows us. So uh that's 40:29 40 minutes, 29 seconds what has happened in that direction. And to quantify that that will be in the range of 33 odd% market share. 40:37 40 minutes, 37 seconds Yeah, it depends on different uh types of if you look at overall LT motor side we would be approximately 38 39%. Uh 40:45 40 minutes, 45 seconds approximately if I go to larger industrial motors it'll be around 19 20% approximately. 40:53 40 minutes, 53 seconds Okay. Um okay and uh fair enough. So that's on the motors. Now on the power I want to understand uh you know the the 41:01 41 minutes, 1 second order that you got from the data center that actually indicates the delivery time anywhere between 12 months to I think 18 or 20 months. Uh is that the 41:10 41 minutes, 10 seconds quickest you can deliver or transform into the US market or you think uh uh you can do it much faster? 41:19 41 minutes, 19 seconds Uh you want to answer that? 41:22 41 minutes, 22 seconds Yeah. Thanks for the question. See the delivery of transformers for the US market basically depends upon the delivery of the components like caper 41:29 41 minutes, 29 seconds and bushings. Uh even though we can manufacture transformers earlier than that but we will always be dependent on 41:37 41 minutes, 37 seconds the caper uh deliveries which come from Germany and they are anywhere between 9 to 12 months. So as of now we are 41:45 41 minutes, 45 seconds constrained uh we can deliver from 12 months onwards only because of this reason. 41:52 41 minutes, 52 seconds Okay. because I understand you know Koreans can actually deliver in closer to 10 months you know that's the reason this question uh fair enough my last 41:59 41 minutes, 59 seconds question is on the semiconductor business uh you know while you did indicate that the chip revenue will start in two quarters the 500 cr which 42:08 42 minutes, 8 seconds is currently booked into the uh financials all of that is designled revenue or there is some other part in that revenue that's my last question 42:15 42 minutes, 15 seconds thank you Stop. Please stay connected. 42:24 42 minutes, 24 seconds The line for the management has been disconnected. Please stay connected. 42:29 42 minutes, 29 seconds [music] 42:43 42 minutes, 43 seconds [music] 42:48 42 minutes, 48 seconds [music] 42:56 42 minutes, 56 seconds Heat. Heat. 43:02 43 minutes, 2 seconds [music] 43:09 43 minutes, 9 seconds [music] 43:15 43 minutes, 15 seconds over. 43:23 43 minutes, 23 seconds [music] 43:30 43 minutes, 30 seconds Lou 43:32 43 minutes, 32 seconds [music] 43:38 43 minutes, 38 seconds [music] 43:47 43 minutes, 47 seconds [music] 43:56 43 minutes, 56 seconds Mr. Rahul, you can go ahead with your last question again, please. Thank you. 43:59 43 minutes, 59 seconds Yeah, I don't know uh if you heard the question or I will repeat the question. 44:05 44 minutes, 5 seconds Yes, please. Yes, I because the line goted. 44:08 44 minutes, 8 seconds Yeah. So, uh you know my last question was on the semiconductor. Now, you have indicated that uh you know the semiconductor chip revenue essentially 44:15 44 minutes, 15 seconds will start in but two quarters or so. So I want to understand you know the 500 cr which is booked into the financials all of that is designled revenue or there is 44:23 44 minutes, 23 seconds something else uh in in that 500 cr which 500 cr you're talking about 44:31 44 minutes, 31 seconds you know the segmental breakup that you all give of the revenue uh over there for the for the full year the number is 44:38 44 minutes, 38 seconds 500 cr so I just wanted to be sure what exactly is that number 44:46 44 minutes, 46 seconds this is the revenue which is coming that you know the company what we bought from Renas the the RF [clears throat] from the renas the X0 44:54 44 minutes, 54 seconds so RF and design these are the these are the two things not not two things X0 is the name of the 45:01 45 minutes, 1 second company that we created uh RF business is what we bought from uh Renaissance and that is what has started generating 45:09 45 minutes, 9 seconds the revenue so I think yeah it's about 65 million was a plan so which comes to about 500 crores you're right so yeah because it is running operational 45:17 45 minutes, 17 seconds company. So, uh that is the number you would have seen there. 45:24 45 minutes, 24 seconds Thank you. A reminder to all the participants please restrict yourself to two questions. 45:33 45 minutes, 33 seconds The next question is from Amit Mahavar from UBS. Please go ahead. 45:39 45 minutes, 39 seconds Yeah. Hi Amir. A first question is on the power system exports. Um how um do you see the timeline for the grid 45:47 45 minutes, 47 seconds utility uh approvals for us uh now that we have data center uh orders basis maybe the quicker timeline how soon can 45:56 45 minutes, 56 seconds we expect the grid utility turnaround for us on orders that's the first question grad you mean in terms of supply or 46:05 46 minutes, 5 seconds approval process yeah in terms of approval and you know potential orders from the American grid treaties is it more like 6 to 12 months 46:12 46 minutes, 12 seconds or a longer period and some contours around that. 46:15 46 minutes, 15 seconds It it purely depends on uh you know what we're talking about like uh you know America's works very differently than the way we work in India. So America 46:23 46 minutes, 23 seconds there are 478 utility companies because every area is divided and even if I take top 100 utility companies that amounts 46:33 46 minutes, 33 seconds about 70 75% of the total uh revenue. So every utility is pretty independent. So and everybody has different timelines. 46:40 46 minutes, 40 seconds So you cannot categorize is 6 months or 1 year or 3 months or 5 years. It'll vary from utility to utility. 46:48 46 minutes, 48 seconds Sure. And the second question is on industrial segment. Um you know we have a very very formidable competition uh 46:55 46 minutes, 55 seconds you know from maybe the likes of Naidc or WG etc. Some of them are very very aggressively expanding their manufacturing footprint in India. So my 47:04 47 minutes, 4 seconds question is more on um um you know in fiscal 27 um do you think the delta for 47:11 47 minutes, 11 seconds us on profitability uh and growth is more on the rail part of industrial as we execute the propulsions and the 47:18 47 minutes, 18 seconds trronics book or do you think industrial motors also will contribute significantly to the profitability in 27 47:25 47 minutes, 25 seconds or that area that's a year where you know we still not hopeful on the motors profitability some color on uh you know industrial versus rail real profitability. Thank you. 47:36 47 minutes, 36 seconds No, I think it's these are different verticals under the segment of industrial you know railway is a separate vertical you know which is led by Daranj I think he's doing some good 47:44 47 minutes, 44 seconds work there uh to turn it around to make sure that's coming to a much bigger number the way Jatinda did turn around 47:51 47 minutes, 51 seconds for the motors business so which is uh doing fairly well so I'm sure railways also in next few months or quarters should be uh inching upwards so it's a 48:01 48 minutes, 1 second combination of both and to your question on uh competition with the uh keys and all and that's fine. I think competition is always healthy because that keeps us 48:09 48 minutes, 9 seconds on the toes. So we are just honing our skills on uh keep building uh NPDS you know build our design capability 48:17 48 minutes, 17 seconds uh and also make sure that uh we are cost competitive not cheap but cost competitive so that we continue 48:24 48 minutes, 24 seconds continuously keeping the waste from the system. So that's an ongoing effort. 48:31 48 minutes, 31 seconds Sure. Thank you. Thank you very much and good luck. Thank you. 48:36 48 minutes, 36 seconds Thank you. The next question is from the line of Girish from Morgan Stanley. Please go ahead. 48:44 48 minutes, 44 seconds Hi sir, thanks for the opportunity. I had a question on railways x giggronics. 48:48 48 minutes, 48 seconds what's been the growth rate in revenues for FY26 and also if you can share any outlook on this piece of the business and second uh 48:58 48 minutes, 58 seconds I wanted to understand the pipeline for uh US transformers if you can share any qualitative color around how things are 49:06 49 minutes, 6 seconds I know you've spoken about it in the past but any L1 status here or how does it work there like what's the u size of 49:14 49 minutes, 14 seconds the opportunity that you're looking at in the medium term and The final question was on capeex. If you can just color what will be the fi 27 and 28 kex numbers. 49:26 49 minutes, 26 seconds I think uh it was supposed to be limited to two questions three four questions to ask. But anyway let's let me go uh one by one. So which one do you want me to answer first? 49:37 49 minutes, 37 seconds So you can take up railways and then uh transformer for us and then capex. 49:42 49 minutes, 42 seconds So railways is uh so your question was specific to gigronics. So gigonics uh as Gonics what's the growth sir and the 49:50 49 minutes, 50 seconds outlook for that ex gonix except is your question except Gonix or what is the question? 49:59 49 minutes, 59 seconds Yeah except Grononics excluding Grononics. 50:02 50 minutes, 2 seconds Yeah so the break up we don't give no it's part of industrial business so we are not uh uh allowed to give the break up of each other businesses. 50:09 50 minutes, 9 seconds So I was asking looking for growth rate so and the outlook. 50:14 50 minutes, 14 seconds Yeah, that's what I'm saying. We don't go specific to each of the business lines in the business. So, if you talk about industry or something, then we can talk about it. But we don't go deeper into each of the businesses. 50:25 50 minutes, 25 seconds Okay. If you can uh share some perspective on railways outlook. 50:30 50 minutes, 30 seconds Yeah. So, railways uh I think uh maybe Danj if you can give just a flavor of uh you know how do you look at the market 50:38 50 minutes, 38 seconds and uh your key one or two initiatives there without getting too deeper into numbers or anything. 50:44 50 minutes, 44 seconds Yeah, thanks Amar. So on railways uh yes we see sizable potential with some of the new products that we are uh working 50:52 50 minutes, 52 seconds through and addition to that we also see some good opportunities on the export side which we have uh still to explore long way to go and then on the service 51:00 51 minutes side is another area where we see good potential for uh uh you know high double digit growth there and then of course helps us improve our uh profitability and margins on that. Thank you. 51:14 51 minutes, 14 seconds Good. Thanks NJR pipeline. 51:20 51 minutes, 20 seconds The next question is from the line of Pikshit Kan from HGFC securities. Please go ahead. 51:27 51 minutes, 27 seconds Congratulations on a great context. So my first question is on the margins. So are we facing any impact of the 51:34 51 minutes, 34 seconds geopolitical issues the currency there on the margins I mean have we been able to pass on the commodity price impact to 51:41 51 minutes, 41 seconds the customers any impact on the truck on the oil prices impact on margins or bushings so if you can give some color on the margin on the power systems 51:49 51 minutes, 49 seconds business and going ahead how do you look for FI27 do you see further expansion in this business margins 51:57 51 minutes, 57 seconds so thanks thanks for the question I think a lot of your questions have already been answered uh one is the numbers. If you look at power systems, if there was stress on the margin, then 52:06 52 minutes, 6 seconds it would have shown up in the numbers, right? So if you are doing better by 200 to 300 basis points on each of these segments. So that means the margin 52:15 52 minutes, 15 seconds margin pressure is taken care of. And this margin pressure is not only from what we get from the customer. It's also how operationally efficient we are 52:23 52 minutes, 23 seconds becoming. So I think that's that's the critical thing and that's the edge that we have from CG point of view. Uh so and 52:30 52 minutes, 30 seconds so that that's one so any what the second question I was asking largely on how is the commodity inflation hitting us and are 52:38 52 minutes, 38 seconds we being able to pass it on to the customer. So is it entirely pass through or will we see some impact in human coming in on the residual order book which we have which may get hit because of the commodity inflation. 52:48 52 minutes, 48 seconds So so that is a simple you know different businesses different areas. So like I talked about motors we discussed just now a few minutes back is most of 52:55 52 minutes, 55 seconds it we have been able to pass on with the steep increase in the pricing uh for other large businesses uh it's really not a problem you know for example 53:04 53 minutes, 4 seconds transformer or rest of the large businesses because you always have the price variation clause with the customers so whenever commodity goes up and down uh it gets passed on to the 53:12 53 minutes, 12 seconds customer The next question is from the line of 53:23 53 minutes, 23 seconds Shirom Kapoor from Jeff. Please go ahead. Uh, hi sir, thanks for the opportunity. 53:29 53 minutes, 29 seconds I just um had a question. So exports while you don't give the break up between industrials and power systems. 53:35 53 minutes, 35 seconds Could you share what is the overall contribution to your consolidated sales of exports this year? 53:43 53 minutes, 43 seconds It's a right now I think it's very small. It's about 5% approximately. 53:48 53 minutes, 48 seconds uh but again the aspiration is to be in much larger like as I said you know we kind of more than doubled uh in this previous year and this year we are 53:56 53 minutes, 56 seconds taking much more ambitious targets so stay tuned on that so uh last I mean in F25 we saw exports 54:04 54 minutes, 4 seconds contributing about 10% you're saying it's smaller about 5 6% now so did we see some kind of decline no it was never 10% 54:13 54 minutes, 13 seconds sorry it was never 10% uh in the overall consolidated mix. 54:21 54 minutes, 21 seconds Yeah. So if you include Sweden, Germany and Netherlands, it can go up to 8 to 9%. But if you talk about from India to outside country, it is around 5 to 7%. 54:31 54 minutes, 31 seconds Understood. Understood, sir. And uh just my second question is on um you know uh your railways business uh you know while 54:40 54 minutes, 40 seconds you highlighted um that you don't give the break up between um railways and non-railways uh could you give some 54:47 54 minutes, 47 seconds direction in terms of um you know margins uh on the railway business because you've been mentioning some kind of pressures uh because competitive uh 54:55 54 minutes, 55 seconds in the competitive railway business. So how do you see margins um tracking going ahead? 55:00 55 minutes Yeah. So that's why I said and I think Danj touched a bit on you know how he's prioritiz prioritizing and as you know Indian railways you won't be able to get 55:08 55 minutes, 8 seconds too good a margin important is your operational efficiency and secondly word that Danj has already activated uh as a part of overall theme I mentioned is 55:16 55 minutes, 16 seconds services so service is going to be a big big function of us and uh he's already created uh that vertical uh and is getting driven so that will give us 55:25 55 minutes, 25 seconds substantial increase in our margins but again it doesn't happen tomorrow it takes a bit of time uh but he's executing it uh fairly well. So that's 55:33 55 minutes, 33 seconds another lever. And uh last one I would say is also on the NPD. That's where the activation is on the R&D to get uh more 55:41 55 minutes, 41 seconds and more new products. Uh that helps us to become more competitive. 55:45 55 minutes, 45 seconds So these are some of high level uh actions are being taken to uh continuously move this from uh 55:53 55 minutes, 53 seconds singledigit margins to double digit. I think that's the maximum I can reveal to you. 56:03 56 minutes, 3 seconds Thank you. That was the last question for the day. 56:06 56 minutes, 6 seconds I now hand the conference over to Reu ma'am for closing comments. Please go ahead. 56:13 56 minutes, 13 seconds Thank you Jes. Um on behalf of Capital like to thank the management of CGPR for taking the time uh and discussing the 56:20 56 minutes, 20 seconds results with us. Um sir, any closing comment that you would like to make? 56:25 56 minutes, 25 seconds No, thank you and thank you uh everybody. I know there's a large crowd here and interesting question. Thank you. Stay tuned with us. I mean there 56:32 56 minutes, 32 seconds are exciting days and months and years ahead of us. So thank you for your time with us and appreciate it. Have a good rest of the day. Cheers. 56:43 56 minutes, 43 seconds Thank you on behalf of I I securities. 56:47 56 minutes, 47 seconds Thank you. That concludes this conference. Thank you for joining us.