Dixon Technologies Ltd — Q4 FY26

Dixon Technologies (India) Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zBCxquGkEFQ Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to the Dixon Technologies Q4 FI26 earnings call hosted by DAM Capital 0:08 8 seconds Advisors Limited. As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during the conference call, please signal an operator by pressing star ben zero on your touchstone phone. Please note that 0:28 28 seconds this conference is being recorded. Anah conference Mr. Tanha from Dam Capital. Thank you and over to you sir. 0:37 37 seconds Thank you Vikra. Good evening everyone. 0:40 40 seconds Welcome to the Dixon Technologies Q4 and FI26 earnings call. Today we have the management being represented by Mr. Atar 0:47 47 seconds Lal, vice chairman and management director and Mr. Sor Gupta, director and group CFO. At this point uh I will hand 0:54 54 seconds over the floor to Mr. Lal for his initial remarks post which we'll open up the floor for Q&A. Thank you and over to you sir. 1:01 1 minute, 1 second Thank you Zane. 1:03 1 minute, 3 seconds Good evening everyone. This is Akul Lal and joining me uh today is our director and group CFO Sor Gupta. 1:10 1 minute, 10 seconds Good evening everybody. I would like to welcome uh warmly all our stakeholders to discuss our Q4 and 12 month 1:17 1 minute, 17 seconds performance for financial year 2526 and future growth outlook and the key highlights of the quarter 1:25 1 minute, 25 seconds are as below the revenues for the quarter ended March 31 2026 was 10,520 crores aida excluding 1:35 1 minute, 35 seconds exceptional gain for the quarter was 418 crores pat after minority interest and excluding exceptional gain for the quarter was 192 crores. 1:46 1 minute, 46 seconds The key highlights for the whole year are as below. Revenues for the year ended March 31, 2026 what 48,893 1:55 1 minute, 55 seconds crores against 38,880 crores in the same period last year. That's a growth of 26%. 2:02 2 minutes, 2 seconds A beta extruding exceptional gain for the year was 1887 crores against 1528 crores in the same period which is a growth of 23%. 2:13 2 minutes, 13 seconds That after minority interest excluding exceptional gain for the year was 845 crores against 706 crores in the same period last year. growth of 20%. 2:23 2 minutes, 23 seconds Starting March 26, global macroeconomic landscape has undergone a dramatic transformation including rising nicely 2:32 2 minutes, 32 seconds tensions and concerns around a potential US Iran escalation leading to disruption across supply 2:39 2 minutes, 39 seconds chains, freight, energy, forex and commodity prices. 2:44 2 minutes, 44 seconds Q4 revenues remain flat due to geopolitical concerns, softer consumer demand, inventory rationalization by 2:51 2 minutes, 51 seconds brands, elevated input cost majorly impacting the smartphone and IT hardware segment. 2:59 2 minutes, 59 seconds Electronics industries continue to face inflationary pressure in key components such as memory chips and semiconductor 3:05 3 minutes, 5 seconds linked inputs driven by ALA demand and supply constraints resulting in cautious procurement behavior towards brands. 3:14 3 minutes, 14 seconds Despite near-term headwinds, we continue to strengthen our customer partnerships and expand capacities across segments while accelerating our backward integration and localization strategy. 3:26 3 minutes, 26 seconds Our priorities remain clear to sustain growth momentum, strengthening our comparative positioning and continue to invest in talent capabilities enhancement. 3:35 3 minutes, 35 seconds We will be expanding the capacities of camera module and a subsidy Q techch which is an ECMS beneficiary for smartphones from 70 million annually to 3:44 3 minutes, 44 seconds around 180 to 190 million annually over the next 15 to 18 months largely catering to a capture the smartphone volumes in addition to deepening the 3:53 3 minutes, 53 seconds level of manufacturing capturing more value added in depth. 3:58 3 minutes, 58 seconds We have received PN3 and ECMS approval for 7426 display module JB with HKC. 4:05 4 minutes, 5 seconds Construction of our display facility is completed and installation of machineries are ongoing for mobiles, IT hardware products and automotive 4:12 4 minutes, 12 seconds displays. The response from various brands is very encouraging. The trial will start from beginning of Q3 and mass 4:20 4 minutes, 20 seconds production to commence from end of Q3 beginning of Q4 this fiscal. 4:25 4 minutes, 25 seconds We remain focused to strengthen capital efficiency and balance sheet quality. 4:30 4 minutes, 30 seconds Improved asset utilization, operating leverage and disciplined capital allocation supported healthy ROC and ROE 4:38 4 minutes, 38 seconds of 44.8% and 28.1% respectively. Overall working capital efficiency led to stronger cash flow generation and 4:47 4 minutes, 47 seconds working capital cycle of negative 8 days. They remain focused on sustaining profitable growth while maintaining strong return ratios and balance sheet 4:55 4 minutes, 55 seconds discipline. They remain confident of long-term Indians opportunities supported by supply chain diversification 5:03 5 minutes, 3 seconds increased localization supported government policies PL scale expansion and continue to create a strong multi-year growth runway for the industry. 5:13 5 minutes, 13 seconds Now I'll share with you the business performance and insights in each of the segments. Mobile and other EMS businesses. Revenue for the quarter for 5:22 5 minutes, 22 seconds mobile and other EMS business was 9,485 crores and operating profit of 337 5:28 5 minutes, 28 seconds crores. Mobile industry has seen some headwinds for memory price inflation and demand moderation in last 6 months. Over 5:36 5 minutes, 36 seconds the past few weeks, supply demand dynamics are becoming more balanced and we're beginning to see an improvement in customer ordering pattern and we expect 5:44 5 minutes, 44 seconds a higher double digit growth quarteron quarter in the smartphone volume along with growth in selling prices by 12 to 5:51 5 minutes, 51 seconds 15%. We strongly feel that the momentum will sustain for the balance part of clear. 5:58 5 minutes, 58 seconds We expect a strong growth in volume for an instinct US prime and we expect a significant uptick in volumes for a substri module on export for large 6:07 6 minutes, 7 seconds largely feature phones and also smartphones mainly for Africa market from mid Q2 and we started manufacturing 6:14 6 minutes, 14 seconds smartphones for HMD in Q1. Our 400,000 ft² facility for 7426 long chair JB for 6:22 6 minutes, 22 seconds manufacturing of smartphones and other electronic products is expected to start operations by Q3 which will meaningfully strengthen our execution capabilities. 6:32 6 minutes, 32 seconds We're having robust order book for smartphones and also an advanced discussion with them for adding other product categories in the GV. 6:39 6 minutes, 39 seconds Construction of a 1 million square ft² facility in Nida with higher capacities for our rank anchor customers is nearing completion and we expect the operation to commence the Q2 this discussion. 6:51 6 minutes, 51 seconds Telecom and networking product. The segment continued its strong growth trajectory on the back of expanding customer relationships and higher 6:58 6 minutes, 58 seconds inclusion across key product categories driven by increasing network infrastructure investments including capturing emerging 7:06 7 minutes, 6 seconds opportunities and growing localization of telecom equipment manufacturing. We have commenced manufacturing of highly complex telecom back wall microwave 7:15 7 minutes, 15 seconds radios and plan to initiate exports in this district. We've commissioned a new manufacturing plant for capacity expansion and increase their housing area to support the growth trajectory. 7:25 7 minutes, 25 seconds Our strategy in this vertical is to move up the value chain from pure EMS to design le solutioncentric partnership 7:33 7 minutes, 33 seconds now and have now entered into joint design and manufacturing model with a key customer enabling greater backward integration localizing a higher share of 7:40 7 minutes, 40 seconds the bomb. We expect this work to deliver high double digit revenue growth in the current fiscal 7:48 7 minutes, 48 seconds IT hardware products. The segment delivered a healthy performance for the quarter under review and we expect 3x growth in the revenues in the current 7:56 7 minutes, 56 seconds fiscal against last year with huge uptake in order books from our customers. a dedicated IT hardware product manufacturing unit in Chennai 8:05 8 minutes, 5 seconds has successfully established stabilized mass production of laptops and all-in-ones and have secured orders for desktop from one of our customers. The 8:13 8 minutes, 13 seconds execution of the same mission start in Q2 of this fiscal we've also manu started manufacturing tablets in addition to laptops for our existing customer. 8:24 8 minutes, 24 seconds New facility adjacent to our existing facility under a 6040 JV with the Mint Caravan is progressing well and expected 8:32 8 minutes, 32 seconds to go into mass production in Q3 of the current fiscal. In line with our backwell integration plans, we'll commence SSD manufacturing in Q2 and 8:40 8 minutes, 40 seconds display modules with HTC from end of Q3 beginning Q4. And we're also exploring other critical components such as power supply and mechanicals which will 8:49 8 minutes, 49 seconds enhance valuation and margins. We're also in discussion with the JB partner to participate in the fast growing 8:55 8 minutes, 55 seconds server opportunity and to move from endclient IT hardware into data center and enterprise infrastructure hardware 9:03 9 minutes, 3 seconds which is supported by strong government policy tailwinds on server manufacturing and backward integration including a clear push on localization and a tax 9:12 9 minutes, 12 seconds solid framework for the same which meaningfully improve the viability and return profile of India based server and component manufacturing. 9:20 9 minutes, 20 seconds All the work taken together of these drivers give us a strong visibility on reverse growth and the vertical and potential to make it a meaningful pillar 9:28 9 minutes, 28 seconds for Dickens's overall portfolio over the next few years. 9:32 9 minutes, 32 seconds Home appliances the revenue for the quarter was 329 crores and operating profit were 31 crores. Semi-automatic 9:39 9 minutes, 39 seconds washing machines continue to deliver robust growth. We started manufacturing semi-auto washing machines in 16 and 18 kg capacity which is first across the 9:48 9 minutes, 48 seconds industry. fully automatic washing machine business is scaling well on the back of healthy demand and deeper engagements with key brands. We have a 9:56 9 minutes, 56 seconds healthy auto book and emerging categories such as robotic vacuum cleaners where we see strong potential for multi-air growth and also deeply working on introduction of other 10:04 10 minutes, 4 seconds appliances like dishwashers, microwaves and kitchen chimneys which will help us to offer a complete home appliances portfolio. This segment continues to 10:13 10 minutes, 13 seconds demonstrate strong ODM capability across design support, testing, manufacturing, product customization, value added 10:20 10 minutes, 20 seconds offering, increase in automation, enhance margins, improve customer stickiness. Addition of a new manufacturing facility in triple P with 10:28 10 minutes, 28 seconds will expand our capacities from 6 million units per by another.3 million units including fully automatic front 10:38 10 minutes, 38 seconds loading washing machine which will be launched by end of Q2 this financial year. So this is the first Indian company launching the Odium solution. 10:47 10 minutes, 47 seconds lighting the JB signify continues to deliver a strong revenue growth and we expect the revenues to grow almost to 2x 10:54 10 minutes, 54 seconds in the current history. The growth is being driven by the strong operational synergies between signifi's technology leadership and Dixon's manufacturing 11:02 11 minutes, 2 seconds scale leading to enhanced productivity improved operational efficiency and enhanced cost competitiveness with huge focus on automation and backward 11:09 11 minutes, 9 seconds integration. Further building on our share in B2B space on bulbs back in the down lighters. We're significantly increasing our volumes on the other 11:17 11 minutes, 17 seconds niche products like 2x2 panel lights, mirror lights, positioning us firmly as the foremost player in the lighting industry which is witnessing 11:25 11 minutes, 25 seconds consolidation at a rapid scale. Pursuing an active product mix improvement strategy, we are continuously adding premium indoor and professional lighting 11:33 11 minutes, 33 seconds production luminous to our portfolio. We have received two export orders from one of largest US chain and a local retain chain for the strip lights which will 11:42 11 minutes, 42 seconds start getting executed from Q2 and are also in discussion for other product categories. 11:48 11 minutes, 48 seconds Consumer electronic that is LED TV and refrigerators. Revenue for the quarter under review was 697 crores with an 11:55 11 minutes, 55 seconds operating profit of 40 crores. The quarter under review saw temporary slowdown in industry demand due to geopolitical concerns and rising input 12:03 12 minutes, 3 seconds cost. But we have actively procured advanced orders from customers with better price offerings for the upcoming quarters. Our focus remains on large 12:12 12 minutes, 12 seconds screen smart connected and premium models where we can differentiate through manufacturing quality, platform capabilities, cost efficiency and 12:19 12 minutes, 19 seconds technological upgradation. We have launched production of high-end mini LED TVs and we'll be shifting it to ODM modeled by Q2 and also introducing 12:28 12 minutes, 28 seconds soundbar cities enabling our customers to tap into the fast growing premium segments refrigerators. Q4 marked a transition to 12:36 12 minutes, 36 seconds revised PE norms and upgraded energy efficiency standards for compressors. 12:40 12 minutes, 40 seconds This led to industrywide price increase just of the peak summer demand season beginning in January. As a result, several brands focused on liquidating 12:48 12 minutes, 48 seconds existing inventory with older B ratings and limited procurement under the new norms. We continue to see traction with healthy orders and improved visibility 12:57 12 minutes, 57 seconds growth and direct and bibas that's 50 and 100 liters. Our odium capabilities are scaling well allowing us to offer 13:03 13 minutes, 3 seconds more differentiated value design faster model refreshes. To support future growth, we're expanding our current 13:10 13 minutes, 10 seconds facility by another 375,000 square ft, which will also enable manufacturing of two row refrigerators, deep freezers, busy coolers, and sideby-side 13:18 13 minutes, 18 seconds refrigerators with meaningful opportunity to move up the value chain, expand share with customers, and build a broader appliance platform over the period. 13:29 13 minutes, 29 seconds Rex and Dixon electronics a 6040 KB with Rex in Japan for ACP GBA continues to perform well delivering healthy growth 13:36 13 minutes, 36 seconds along with a strong dashboard in a strong ROSI with a stable and long-term relationship with our anchor customer. 13:42 13 minutes, 42 seconds We also added a new facility in Chennai strategically located closer to our anchor customers which should expand our capacity and strengthen our partnership 13:52 13 minutes, 52 seconds and variables. Business vertical operated through our JV. Uh with imagine marketing continues to see broad-based growth with solid balance sheet and 14:00 14 minutes healthy cash flow generation. The business has scaled well with our existing product portfolio and has now entered the next phase of expansion by 14:08 14 minutes, 8 seconds adding new board categories. So dash cams, power banks, smart watches and other adjacent accessories which will improve capacity utilization and 14:16 14 minutes, 16 seconds operating leverage across GB manufacturing footprint. 14:21 14 minutes, 21 seconds I and the specialy EMS business. As a part of our next phase of transformational growth, we have partnered with a leading global management consulting firm for designing 14:29 14 minutes, 29 seconds a comprehensive multi- strategy road map to build scaled specialty high margin email business including M&A 14:36 14 minutes, 36 seconds opportunities focused on aerospace, defense, automotive, medical and industrial vertical. This initiative was focused on identifying the most 14:43 14 minutes, 43 seconds attractive high growth and high value products in the above segments. defining a differentiated technology and capability roadmap and creating a robust 14:51 14 minutes, 51 seconds execution framework spanning capital allocation talent development strategic partnerships and market expansion with the aim to accelerate Dixon's evolution 14:59 14 minutes, 59 seconds into complete comparative manufacturing platform with that I'll conclude my remarks and both me and Sorup are happy 15:07 15 minutes, 7 seconds to take any questions thank you thank you very much we will now begin 15:14 15 minutes, 14 seconds the question and answer session Anyone who wishes to ask a question may press star and one on the touchdown telephone. 15:22 15 minutes, 22 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 15:29 15 minutes, 29 seconds headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 16:08 16 minutes, 8 seconds The first question is from the line of pankashar from Ikida yat manager. Please go ahead. 16:17 16 minutes, 17 seconds Yeah, good evening uh hope all is well at your end. All well, how are you? Hi. 16:23 16 minutes, 23 seconds Very good. Thank you. Thank you. Thank you. Um just uh quickly two three questions. 16:28 16 minutes, 28 seconds One first uh congratulation on great cash flow conversion. U preliminary uh look suggest that uh the cash flow has 16:36 16 minutes, 36 seconds been very strong despite of one newspaper which is sluggish. So uh continue doing that. Um on 27 uh just 16:45 16 minutes, 45 seconds wanted to get your sense on two one on I'm sorry to interrupt pankage. Can you please use the handset more? Your voice is fluctuating. 16:54 16 minutes, 54 seconds I'm using the handset only. Okay. Then please speak a little louder. Thank you. 16:59 16 minutes, 59 seconds Yeah. So on the mobile side, uh can you give us some color on how uh we are looking at the ramp up on volumes uh in 17:07 17 minutes, 7 seconds FI27 and uh what are the other areas of growth this year we are targeting in 17:14 17 minutes, 14 seconds terms of IT hardware? I remember last time you spoke about uh that 3 and a half 4,000 crores could be uh possible 17:22 17 minutes, 22 seconds in this year FI27 on the uh display JV on the camera module. Can you just take us through some of the uh you know 17:30 17 minutes, 30 seconds growth drivers for this year and also the Vivo JV? Any any thoughts on that? 17:35 17 minutes, 35 seconds How should we think about that perspective and whether your volume which you will probably uh you know kind of talk about does it includes Vivo? It 17:44 17 minutes, 44 seconds doesn't include people just some color on that so that we are able to help understand on the growth side for 17:51 17 minutes, 51 seconds yeah sure. So uh you see we have really focused on our balance sheet strength 17:59 17 minutes, 59 seconds and uh in spite of uh a sluggish business environment we have generated after 18:06 18 minutes, 6 seconds doing a capex of almost 1,58 crores a free cash of 700 plus crores 18:14 18 minutes, 14 seconds the ro is 44.8% 8% and the working capital operating cycle is negative 8 days. 18:23 18 minutes, 23 seconds So that way the balance sheet is very strong for triggering any kind of growth. Absolutely. 18:30 18 minutes, 30 seconds As far as 27 business plan growth numbers are concerned. Yeah. And here I'm talking on mobile without Vivo. 18:40 18 minutes, 40 seconds Yeah. Uh we have closed at almost 32 old milling. Yeah. In the current fkin we 18:47 18 minutes, 47 seconds feel that the overall volumes without vivo is going to be almost similar. 18:57 18 minutes, 57 seconds Okay. Uh because there is an overall decline due to increase in the memory prices and the ASB going up significantly. 19:05 19 minutes, 5 seconds Okay. 19:06 19 minutes, 6 seconds As far as DO is concerned, uh we're deeply engaged with the government. 19:13 19 minutes, 13 seconds uh we feel that we're very close to it. Okay. And that's where the status is. 19:21 19 minutes, 21 seconds We I reiterate that we feel that we're very very close to it. 19:26 19 minutes, 26 seconds And if we comes what could be the volumes so it depends on the timelines. on an annualized basis 19:34 19 minutes, 34 seconds uh 67% of what we were sell and last year we were sold almost 35 million units and 20 22 million units can be added on an annualized basis. 19:45 19 minutes, 45 seconds Okay. Okay. So that's the number. 19:50 19 minutes, 50 seconds Apart from that on the feature phone side there's a significant upside because we're going to be starting exports of feature phones under our subsidy is smart to Africa. 20:02 20 minutes, 2 seconds Yes. 20:04 20 minutes, 4 seconds So that number will take us up to almost 50 million units. Okay. 20:11 20 minutes, 11 seconds Right. Further we are expecting PL2 for mobiles to be rolled out. 20:18 20 minutes, 18 seconds Okay. Let's see what will be the structure and format of it. 20:23 20 minutes, 23 seconds We understand the focus is going to be more for global market. 20:28 20 minutes, 28 seconds If that happens then I see that beyond Vivo and beyond is smart another 4 to 5 20:35 20 minutes, 35 seconds million units can be added. So I'm giving you the overall picture and direction. Yes. As far as mobile concerned absolutely 20:44 20 minutes, 44 seconds IT products the business looks very healthy. 20:49 20 minutes, 49 seconds uh we have created more capacities. We have deep relationships with top four brands in the country, the global brands 20:58 20 minutes, 58 seconds and we feel that our revenue in this fiscal is going to be more than 4,000 crores. 21:06 21 minutes, 6 seconds Okay, that's good to hear. 21:09 21 minutes, 9 seconds In uh in our camera model acquisition of QEC we are expanding capacity from present 70 to 80 million to almost 190 million. 21:22 21 minutes, 22 seconds Last year on annualized basis we did a revenue of 1,700 crores. We're targeting a revenue of almost 2500 crores in that business. 21:33 21 minutes, 33 seconds As far as the display is concerned the building is ready, the machinery is getting installed. 21:39 21 minutes, 39 seconds uh we plan to start the trials in Q3 of this fiscal and Q4 the commercial production is going to start uh I'm not 21:48 21 minutes, 48 seconds putting in the numbers to that in the current fiscal the other triggers of growth the telecom 21:56 21 minutes, 56 seconds network business is doing extremely well we have grown from 3600 cr to 5,000 crores in the current fiscal we are 22:05 22 minutes, 5 seconds targeting almost 7 and a half 8,000 crores In 26 27 that's another major trigger of growth 22:13 22 minutes, 13 seconds in lighting in lighting which is a lagard for us we did almost 800 850 crores the next 22:21 22 minutes, 21 seconds year target is almost 1 1700 crores we expect 2x after we have formed the JV with signify 22:29 22 minutes, 29 seconds okay and then there are further additions our invente with JV invente JV is going to start generating numbers 22:37 22 minutes, 37 seconds from Q3 of the current fiscal in that we're going to be setting up the SSD module line which is going to further 22:45 22 minutes, 45 seconds generate the numbers. So these are all triggers of growth which have been planned and they're in the use in mode. 22:54 22 minutes, 54 seconds Very nice. Just last question uh on the mobile side uh is it fair to say that because of the memory chip pricing going 23:02 23 minutes, 2 seconds up and also your product realization going up the topline growth could be much higher than the volume growth which you will see. That's right. That's right. 23:10 23 minutes, 10 seconds So we expect pumpers to that the the revenue growth should be at least 12 to 15% higher if not more and 23:18 23 minutes, 18 seconds that was not the case for the last few years where volume was equal to the topline growth. Is that a fair industry? 23:23 23 minutes, 23 seconds Absolutely. And once the once the Vivo Vivo thing comes into the system uh then we are hoping that the selling prices 23:31 23 minutes, 31 seconds would be better than our existing weighted average selling price of the current portfolio. 23:37 23 minutes, 37 seconds Okay. Okay. So that will be an aided one from a overall realization perspective. 23:43 23 minutes, 43 seconds So the margins may optically can look lower but the revenue wise they'll be upside on that. 23:49 23 minutes, 49 seconds Okay. Fair enough. Thank you. Thank you and wish you all the best. Thank you. Thank you. 23:57 23 minutes, 57 seconds Thank you. Next question is from the line of Adita Bhya from Investor. Please go ahead. 24:08 24 minutes, 8 seconds Adita, your line is unmuted. Please go ahead with your question. Adi, can you hear us? 24:18 24 minutes, 18 seconds Hello. Am I audible? 24:20 24 minutes, 20 seconds Yes, you're Yes, you're audible. Please proceed. Uh hi good evening sir. there. 24:26 24 minutes, 26 seconds So my first hi sir uh so my first question is uh uh on on the PLI scheme coming to an end on the mobile phone 24:34 24 minutes, 34 seconds side uh how the conversations with customers is it only the element that we were retaining uh which we'll start uh 24:42 24 minutes, 42 seconds losing out in terms of uh profitability or can there be uh any other hit uh in in in terms of PL scheme going away as well. 24:54 24 minutes, 54 seconds So Arit uh uh we have uh five large relationships 25:00 25 minutes uh Bola our relationship through long chair with OPO and our other relationships. Please be rest assured 25:08 25 minutes, 8 seconds that the relationships are extremely strategic deepened anchor and we expect volume growth and a larger 25:16 25 minutes, 16 seconds share of business across all these relationships. 25:21 25 minutes, 21 seconds So please be rest assured on that. Uh obviously there is a margin pressure because the PLA going away. 25:30 25 minutes, 30 seconds A part of it is getting compensated through the uh uh enhanced operational efficiency 25:37 25 minutes, 37 seconds and the balance part of it is going to start kicking in with a backward integration piece of camera modules and display. 25:45 25 minutes, 45 seconds So that's the path we pursuing which uh we have shared with you earlier also. 25:51 25 minutes, 51 seconds But please be rest assured the anchorage relationships are very deep and there is no hit on that. 25:58 25 minutes, 58 seconds Sure. Sure. So what we had earlier kind of discussed that 50 to 70 basis points uh of margin impact maybe there uh add 26:05 26 minutes, 5 seconds to that uh maybe optically how the margins may look lower on account of uh uh high realizations but that that that 26:13 26 minutes, 13 seconds should be the uh complete impact nothing more than that's right you captured it. Absolutely. Absolutely. 26:20 26 minutes, 20 seconds Perfect. Perfect sir. Uh and sir in the last conference call uh you had spoken about industrial EMS wherein you had referred to uh hiring a senior resource. 26:29 26 minutes, 29 seconds Uh uh this time around you have kind of hinted about uh exploring different opportunities within specialtity EMS. uh 26:37 26 minutes, 37 seconds if you could give give us some more details uh about what are the kind of uh uh opportunities within let's say 26:45 26 minutes, 45 seconds aerospace defense automotive that you spoke about how large those opportunities could be is it likely to be organic inorganic uh uh so so what's 26:54 26 minutes, 54 seconds really the road map over there if if there's anything that you can disclose so we have already taken a very senior 27:01 27 minutes, 1 second resource at the level of president co uh who is going to build this business for us. 27:08 27 minutes, 8 seconds Uh we have uh partner a very very large consulting company 27:18 27 minutes, 18 seconds five microvertical have been identified the strategies are being prepared 27:25 27 minutes, 25 seconds already on the table and there are a couple of serious inorganic opportunities across the vertical that I had mentioned in my opening remarks. 27:35 27 minutes, 35 seconds So we have not budgeted any numbers out of these uh opportunities as of now in 2627 but we feel that something substantive 27:44 27 minutes, 44 seconds at least a couple of them is going to happen in the current risk. 27:51 27 minutes, 51 seconds Okay and any indication on size sir how large could these be? 27:57 27 minutes, 57 seconds So these are going to be higher margin businesses. 28:00 28 minutes We feel that each would be I mean the combined opportunities which come in are going to be uh at least uh scalable to 28:10 28 minutes, 10 seconds the size of 3 to 4,000 crores with a significantly higher operating margins. Significantly higher operating margins. 28:19 28 minutes, 19 seconds Understood. Understood. Um so my last question on exports of mobile phones. Uh so of course with iMesmart we are 28:28 28 minutes, 28 seconds starting with the feature phones but is there a road map of moving that relationship to smartphone exports as 28:34 28 minutes, 34 seconds well and besides Motorola and uh uh uh and smart u which are the potential 28:41 28 minutes, 41 seconds other customers that that may get added let's say if uh PL2 scheme comes in and incentivizes uh uh export opportunities. 28:50 28 minutes, 50 seconds Thank you. So other we are uh well we have uh had deep discussions with our partner and starting with feature phones 28:59 28 minutes, 59 seconds with is smart the smartphone exports is also going to be initiated. 29:04 29 minutes, 4 seconds Uh of course the motor relationship for exports is going to get a flip after the PLI2. 29:10 29 minutes, 10 seconds Uh at present these are the two relationships which are going to mature into exports. But beyond that as I had 29:18 29 minutes, 18 seconds shared in my opening remarks they've already got two orders one from large retail chain in US another one from 29:25 29 minutes, 25 seconds another large retail chain in in Europe for lighting that has already triggered 29:32 29 minutes, 32 seconds and also in our telecom business wherein we were starting manufacturing videos microwave radios we have got an export 29:40 29 minutes, 40 seconds break so step by step we're Sure. 29:46 29 minutes, 46 seconds And this is part of uh uh your indication of doubling up of uh lighting revenues or or this could be over and above that. 29:55 29 minutes, 55 seconds So at present in our to be very candid in our AOP we have not considered these numbers. This is going to be over and above that. 30:04 30 minutes, 4 seconds Sure. Perfect. That's very helpful sir. Thank you so much. Thank you. Thank you. 30:10 30 minutes, 10 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all the participants in the conference, kindly 30:18 30 minutes, 18 seconds limit your questions to two per participant. Should you have a follow-up question, please reach on the queue. The next question is from the lineup Sadha from Namura. Please go ahead. 30:29 30 minutes, 29 seconds Uh yeah, thanks for the opportunity sir. 30:31 30 minutes, 31 seconds Uh sir, first one clarification. Uh when you said that uh the revenue uh for the current quarter you expect a 12 to 15% 30:41 30 minutes, 41 seconds growth. Is it volume or are we talking about uh the value here? Uh and second is uh sorry. 30:50 30 minutes, 50 seconds Yeah, it's the volume growth you're talking about. Volume growth. Okay. 30:54 30 minutes, 54 seconds And uh that both the both the pricing growth will also happen and the volume growth will also happen. 31:00 31 minutes Understood. And so second thing was on the exports how much was the exports in uh FI26? And uh I mean when you say flat 31:10 31 minutes, 10 seconds volume growth uh that does not include exports right. So the export of 4 to 5 million will be over and on top of the number which we are planning for in the next year. 31:20 31 minutes, 20 seconds So that is subject to the policy framework of mobile PLI2 in the in the present uh in the last 31:29 31 minutes, 29 seconds fiscal the export was approximately 5,375 crores. 31:35 31 minutes, 35 seconds Okay. And uh any uh uh color on which markets are we looking for these exports 31:43 31 minutes, 43 seconds uh which we plan to do uh and uh in the IT segment also I think we have seen some increases in the uh impact from uh 31:52 31 minutes, 52 seconds the memory prices and also do you see a potential risk of uh ramp up slower 32:00 32 minutes being there as well as we go into the next two years? 32:05 32 minutes, 5 seconds So the uh the export markets for mobile are largely going to be for our anchor 32:12 32 minutes, 12 seconds customer to us and for other partner company going to be to the African countries. 32:19 32 minutes, 19 seconds As far as uh the impact to the price increase or cost increase due to commodity prices in uh IT hardware is 32:28 32 minutes, 28 seconds concerned uh we have large deep relationship in any case our base was very small. So we 32:35 32 minutes, 35 seconds are confident of touching this revenue figure of 4,000 cr in the current fiscal and uh this business particularly uh our 32:45 32 minutes, 45 seconds other partnership with invear 33:05 33 minutes, 5 seconds from CLSA. Please go ahead. 33:07 33 minutes, 7 seconds Uh hi, thank you for the opportunity. I have two questions. Uh post HKC uh sorry post Vivo you would have something around 55 57 odd immigrant smartphones. 33:17 33 minutes, 17 seconds Let's say we hit this run rate by FI28 at some point in FI28 and that would imply more than 50% market share of the 33:26 33 minutes, 26 seconds outsourced market in India. How do we see the smartphone volumes grow post that? 33:33 33 minutes, 33 seconds So we seen undoubtedly uh that there is a significant potential for exports. 33:40 33 minutes, 40 seconds Uh one is that the second is we need to work upon getting a larger share of market of 33:48 33 minutes, 48 seconds existing brand sell. Uh a couple of relationships we see there is still a potential for increasing 33:57 33 minutes, 57 seconds uh the share of the wallet and next is bringing in one more acquisition of a large customer. 34:06 34 minutes, 6 seconds So definitely the kind of uh rampover growth that Dixon has had in its mobile 34:13 34 minutes, 13 seconds business is not going to be the same level but yeah the growth will be there that's what we are pursuing. 34:22 34 minutes, 22 seconds Sure. So you can gain market share further in the domestic market as well. We will definitely strive for it. 34:30 34 minutes, 30 seconds Sure. And second the the smartphone concerns that you talked about the near issues is it more demand issue because 34:39 34 minutes, 39 seconds of rise in ASP or availability of memory chips. 34:45 34 minutes, 45 seconds So uh due to the kind of relationships that we have as far as the mobile phones uh customers and principles are 34:52 34 minutes, 52 seconds concerned we are able to ensure the supply chain is smoothness. 34:58 34 minutes, 58 seconds So I'm not seeing any shortage due to which the business is getting impacted but definitely there is a cost increase but there's no impact on on production. 35:12 35 minutes, 12 seconds Sure. So the cost increase is impacting demand not production. That's right. That's right. 35:16 35 minutes, 16 seconds These is a large brand. They have global relationships with the memory suppliers and they have very deep relationships, long-term contracts. So I think so 35:23 35 minutes, 23 seconds supply sayility is not an issue in thanks. The reason I ask is we have seen Apple and Samsung gain market share in 35:31 35 minutes, 31 seconds the Indian market while most of the Chinese brands load answers. Thank you so much. 35:38 35 minutes, 38 seconds Thank you. Next question is from the line of Kandam from ICIC Predential Life Insurance Company Limited. Please go ahead. 35:48 35 minutes, 48 seconds Uh thank you for the opportunity. Uh sir uh on the mobile volume sites you mentioned the uh demand basically 35:56 35 minutes, 56 seconds pricing impacting the demand. Um so when we speak to uh industry 36:03 36 minutes, 3 seconds uh uh people so their point of view is that uh uh basically there's a shortage below uh $200 kind of phones uh and 36:11 36 minutes, 11 seconds their brand also prioritizing premium phones because of the shortage. Uh now in that backdrop uh what is uh giving us 36:21 36 minutes, 21 seconds confidence of flat volumes? Are we getting higher wallet share uh and thereby we are securing our volumes or 36:29 36 minutes, 29 seconds uh u as you mentioned there is no impact on demand. So with the same wallet share you are confident of uh volumes since 36:37 36 minutes, 37 seconds this this part of commentary versus uh the industry player was slightly different. So just wanted to get more Q1. 36:46 36 minutes, 46 seconds So in our case what we pursuing is a larger share of the customer's wallet 36:53 36 minutes, 53 seconds that how many new project new project wins we are having and with those project wins with us uh we are fairly 37:01 37 minutes, 1 second confident that they'll sustain the volumes. Am I to answer your question? 37:09 37 minutes, 9 seconds Yes. Yes. 37:11 37 minutes, 11 seconds And just one more clarification. So as you have highlighted earlier uh the profitability is on the per unit basis. 37:18 37 minutes, 18 seconds So optically only percentage margin may look lower. Uh but that is uh uh that is it otherwise per unit absolute profitability remaining. 37:27 37 minutes, 27 seconds That's right. X of PL. That's right. 37:32 37 minutes, 32 seconds Okay. So thanks a lot and all the very best. Thank you. 37:37 37 minutes, 37 seconds Thank you. Next question is from the line of Bharata from BCS Capital Ideas Limited. Please go ahead. 37:45 37 minutes, 45 seconds Yeah, namaste G. 37:50 37 minutes, 50 seconds Namaskar. Um uh G. Uh I'm just kind of reflecting on the past and kind of drawing the line ahead. 38:01 38 minutes, 1 second uh for the longest period uh we have done wonderfully well in terms of the 38:09 38 minutes, 9 seconds opportunity across many areas but mobile phone is 38:15 38 minutes, 15 seconds being one and we have not only grown but 38:21 38 minutes, 21 seconds uh throughout we maintain hygiene of the balance sheet and capitalization something 38:31 38 minutes, 31 seconds related to I'm sorry to interrupt Mr. Sh your voice is fluctuating. 38:39 38 minutes, 39 seconds Okay. Uh is it better now? Yeah, thank you. Please proceed. 38:44 38 minutes, 44 seconds Yeah. So I was saying that over period of time we have taken hold of mobile opportunity in a big way and have grown. 38:54 38 minutes, 54 seconds But somewhere along the line uh do you think that strategically we have 39:01 39 minutes, 1 second allowed ourselves to depend way too much on mobile phone where it has become very 39:08 39 minutes, 8 seconds large part of the business and uh uh therefore anything unfortunate happening 39:16 39 minutes, 16 seconds is affecting our overall picture like it has happened in the last year with uh 39:23 39 minutes, 23 seconds memory other things JV approvals is not coming all combined together and uh it 39:30 39 minutes, 30 seconds has hurt us. Have we strategically kind of taken eyes off the ball? 39:40 39 minutes, 40 seconds Uh but by uh uh how do we strategize a business? 39:47 39 minutes, 47 seconds We look at the opportunity pool. 39:52 39 minutes, 52 seconds We look at the scalability of that opportunity. 39:57 39 minutes, 57 seconds We look at d-risking after the scalability that can we have multiple customers? 40:04 40 minutes, 4 seconds Is there a possibility of entering the global markets and also is there a possibility of deepening the manufacturing? 40:17 40 minutes, 17 seconds Now in uh EMS services sector the biggest opportunity pool 40:25 40 minutes, 25 seconds was and is mobile and it was aligning with the government 40:31 40 minutes, 31 seconds policy framework which I think as a company we have leveraged well 40:42 40 minutes, 42 seconds definitely there have been some aberrations there have been some delays particularly in vivo government approval 40:50 40 minutes, 50 seconds and also similar business model we have tried and we have tried uh successfully 41:00 41 minutes deploying it across the other product categories we have done it well in telecom products 41:09 41 minutes, 9 seconds please appreciate in 23 24 we were at 700 cr we've grown to 3600 in last year 5,000 and this year to 8,000. 41:20 41 minutes, 20 seconds It's absolutely a similar model. 41:23 41 minutes, 23 seconds We are trying to do the same thing with the IT product where we feel that a similar trajectory of growth will happen. 41:35 41 minutes, 35 seconds Now with the new with the balance sheet strength and also 41:41 41 minutes, 41 seconds the new foray into components is being replicating through the similar strategy. 41:51 41 minutes, 51 seconds Now I humbly admit where possibly we have missed out is on the high margin category of industrial EMS. 42:01 42 minutes, 1 second Correct. So yeah that I accept. 42:07 42 minutes, 7 seconds So yes possibly I should have tried it two years back. So that's where we are. 42:16 42 minutes, 16 seconds Sure. 42:18 42 minutes, 18 seconds And therefore if we sum it up all that it is there and various other initiatives which we have taken and 42:27 42 minutes, 27 seconds probably more will take on the current year 47 48,000 turnovers that we have 42:36 42 minutes, 36 seconds achieved. What kind of because there are too many moving parts. So what kind of turnover one should believe would be 42:45 42 minutes, 45 seconds there for the current year? And with what kind of margin similar greater or lower? 42:54 42 minutes, 54 seconds So by usually I don't give guidance but then yeah let me just share with you without the vivo numbers you see this 43:03 43 minutes, 3 seconds year we closed at almost 48,000 cr 48,800 odd crores next year we're targeting almost 56,000 crores without 43:11 43 minutes, 11 seconds the vivo numbers and mobile volume being flat. If Vivo comes in then it's a very major trigger. 43:19 43 minutes, 19 seconds We feel that without the Vivo also the company will keep growing at almost 15 to 17%. 43:31 43 minutes, 31 seconds And with a better same or lower margin in the current year compared to last year. So the margin profile will be 43:39 43 minutes, 39 seconds slightly under pressure this year because the PLA has gone off and there is a lag in the margin accretion 43:47 43 minutes, 47 seconds happening due to component 4A but finally when the component play is completely deployed there will be a 43:56 43 minutes, 56 seconds margin expansion from last year's number by almost 40 50 bits. 44:04 44 minutes, 4 seconds So overall profit will rise uh uh rather than margin 44:11 44 minutes, 11 seconds overall profit put for the company in the current case will rise compared to last year. Yeah absolute profitability will rise. 44:19 44 minutes, 19 seconds Yeah, absolute profitability will rise and uh once the compent play comes inside then there will be a significant margin expansion which will largely get 44:28 44 minutes, 28 seconds played out in 2728 uh camera modules will start will start to be will happen in H2 where happening 44:37 44 minutes, 37 seconds the level of manufacturing but your display part which is larger part of the indication strategy will start playing into this input. 44:45 44 minutes, 45 seconds Sure. uh not a question but just a just a point I'm putting I'm putting 44:53 44 minutes, 53 seconds just a poll not a question don't worry uh you see I mean uh our capability core 45:00 45 minutes capability is the hardcore manufacturing at efficient cost and we have done a wonderful wonderful job in that cash 45:09 45 minutes, 9 seconds flow balance sheet ro everything I think benefit manufacturing, industry, 45:17 45 minutes, 17 seconds automobile, defense related, there are multiple opportunities I think uh which once we 45:25 45 minutes, 25 seconds widen the horizon uh I think opportunity to can widen materially that is all that I wanted to thank you. 45:36 45 minutes, 36 seconds uh we are absolutely aligned with you and uh just to respond to you there are significant adencies 45:43 45 minutes, 43 seconds in our existing for also for example the display uh one is getting such positive traction 45:51 45 minutes, 51 seconds from the automotive industry uh so there are many many agencies and also what I had mentioned responding to 46:00 46 minutes the question that uh our for into industrial EMS is peace the be show will be a reality. 46:10 46 minutes, 10 seconds Sure. Thank you. Also very thank you. Thank you sir. Thank you. 46:16 46 minutes, 16 seconds Thank you. Next question is from the line of Achar from Noama Institution. Please go ahead. 46:24 46 minutes, 24 seconds Yeah. Good evening sir. Thank you for the opportunity. Uh first question just a clarification. uh the 32 million included the uh exports of uh 5 and a 46:33 46 minutes, 33 seconds half million right? No, no, no, no. This is not including exports. 46:38 46 minutes, 38 seconds Uh would you be able to quantify for FI26? What is the export number sir? 46:42 46 minutes, 42 seconds No 33 million. Yeah. Is what we did? Uh 26 27 32 million. So your so your 46:50 46 minutes, 50 seconds question is on 26 27 million for FI26 for FI26 33 million smartphones and that includes the smartphone 46:58 46 minutes, 58 seconds that includes including Xbox and when you're fighting for flat volume uh that also in a similar context total basis or that was 47:07 47 minutes, 7 seconds just for the domestic so volumes can be over and above this 30 so that is largely domestic. 47:15 47 minutes, 15 seconds Yeah. 47:17 47 minutes, 17 seconds And what was the quantum for uh export in FI26 sir? If you could call out that around around 4 million 4 and a half years. 47:28 47 minutes, 28 seconds Understood. Uh the second question I had was with respect to PLI if you could clarify what is the PLI income we on a gross and net basis for FI26. 47:41 47 minutes, 41 seconds uh and um how much did we uh receive and how much is outstanding uh as of 31st March 2026? 47:54 47 minutes, 54 seconds Yeah. So the first part of the question the total uh PL income which has been booked across uh the the five the the 48:02 48 minutes, 2 seconds four PLI schemes that you are a beneficiary of the total income is around 360 odd crores. Okay. And the 48:10 48 minutes, 10 seconds overall uh overall across this four PLI the overall receivable receivable balance will be 48:17 48 minutes, 17 seconds closer to 1380 or and this uh 360 is net 48:25 48 minutes, 25 seconds just a clarification ma'am just a clarification I'm not asking any new question just a clarification is this net PL number sorry 48:35 48 minutes, 35 seconds 360 gross as in uh there is gross there is pass through right and So there's a net pli 48:42 48 minutes, 42 seconds pass and 960 would be the net 960 is the pass on the difference is the number 48:49 48 minutes, 49 seconds understood. Uh got it. Thank you and fall back in the Thank you so much. 48:54 48 minutes, 54 seconds Thank you. Next question is from the line of Ash Kamaraja from Balencian Asset Management. Please go ahead. 49:03 49 minutes, 3 seconds Hi uh hi Atul. Hi S. Thank you for taking my question. Uh just uh two questions. One is a bookkeeping question 49:10 49 minutes, 10 seconds on the mobile and EMS uh division. Can you just break out the heritage vehicles telecom and tech part of it if possible? 49:21 49 minutes, 21 seconds Uh uh we don't disclose these numbers please if you don't mind. 49:27 49 minutes, 27 seconds Understood. No one. Uh the second was around your earlier comment on the ASP uh increases that are happening in the 49:34 49 minutes, 34 seconds industry. uh as far as Dixon is concerned uh can you just clarify the accounting on what happens when the AFC 49:41 49 minutes, 41 seconds goes off due to uh memory issues uh then how does it impact our revenue and how does it exactly impact our editor does 49:49 49 minutes, 49 seconds per unit remain the same orbit profitability remains yes so basically it's the bill of so basically the revenue is a function of 49:57 49 minutes, 57 seconds the bill of material the cost of goods sold plus our conversion charge so the bill of material the cost of good sold up goes up because of increase in memory 50:05 50 minutes, 5 seconds prices. So accordingly the revenue will go up. What our understanding with the customer is that we get an AIA per unit depending on the complexity which goes 50:13 50 minutes, 13 seconds into the smartphone the previous models of smartphones. So yes uh if the revenue goes up the margin can optically nuclear work. So we get a per unit conversion charge. 50:23 50 minutes, 23 seconds Understood sir. Thank you. These are the questions. 50:29 50 minutes, 29 seconds Thank you. Next question is from Santo Shishadri from Aendas Path. Please go ahead. 50:36 50 minutes, 36 seconds Uh hi sir. Uh good evening. Thanks for picking up my questions. Uh my uh first question is on the volume cabins uh for 50:44 50 minutes, 44 seconds the full year. Uh uh correct me if I'm wrong sir. Uh based on the uh you know FI26 volumes of 32 to 33 million units. 50:53 50 minutes, 53 seconds Uh our date for 4K 26 implies uh 5 million units approximately. 50:59 50 minutes, 59 seconds And uh if you factor in the guided uh volume growth of that 12 to 15 percentage sequentially 51:06 51 minutes, 6 seconds uh and extrapolate that to second quarter of FI27 as well we we are arriving at roughly 12 to 30 million 51:13 51 minutes, 13 seconds units for first half and uh 20 million units for second half. Uh so uh could you explain uh you know is this largely 51:21 51 minutes, 21 seconds driven by uh any uh the steep recovery in the second half? Is it driven by any uh customer ramps or uh uh any market 51:30 51 minutes, 30 seconds share gains uh or is it just a broader demand recovery? 51:35 51 minutes, 35 seconds No, first of all your quarter four numbers are closer to 5.6 million. So it's not 5 million and then we are saying on this we expect a higher double 51:43 51 minutes, 43 seconds digit team growth in terms of volumes and we have that numbers in mind but we don't want to share the specific number. 51:49 51 minutes, 49 seconds So high double digit team growth I'm talking about and then on top of it we talking about 12 to 15% pricing growth. 51:56 51 minutes, 56 seconds So there will be a significant growth in terms of mobile revenues overall on account of both pricing and volumes. 52:02 52 minutes, 2 seconds Then of course you can't just multiply uh the quarter one numbers in the port because there's always a quarter two generally the best quarter for us and 52:10 52 minutes, 10 seconds the also the export which we mentioned also will start happening from Q2 uh which we mentioned in our opening remarks. So, so we feel confident that 52:19 52 minutes, 19 seconds excluding Vivo we are we will be looking at a similar volumes exports can potentially add some more some more volumes to it and then the Vivo volumes 52:27 52 minutes, 27 seconds as in when uh the approval comes in it'll have a proportionate impact uh for the balance bar of the area. 52:34 52 minutes, 34 seconds Uh thank you. Uh and uh my second question is on the uh display business. 52:40 52 minutes, 40 seconds Uh uh you know uh could you uh provide some more color on the uh you know ramp up uh schedule and how how should we 52:47 52 minutes, 47 seconds think about the margins and the utilization for FI26 and FI 20 sorry FI27 and FI28. 52:56 52 minutes, 56 seconds So in the phase one we are setting up a capacity of 24 million mobile displays 53:04 53 minutes, 4 seconds annually and 2.4 million of automative and IT product display. 53:12 53 minutes, 12 seconds The first line we installed is for IT production and automotive display for which the trial is going to start in 53:20 53 minutes, 20 seconds Q3 of current fiscal and the commercial production is going to start in Q4 of the current fiscal. 53:30 53 minutes, 30 seconds Mobile display the trial and the commercial production is going to start in Q4 of the current fiscal. As I had 53:38 53 minutes, 38 seconds shared finally the capacity build up for Mumbai over next two years is going to be from 24 million to almost 50 55 53:46 53 minutes, 46 seconds million. In the final picture of this business the revenue target 53:53 53 minutes, 53 seconds once we start achieving 80 80 to 90% of the capacity utilization the remaining generation is going to be 54:02 54 minutes, 2 seconds almost 5 and a half to 6,000 crores with a double digit margin. 54:10 54 minutes, 10 seconds Thank you. 54:14 54 minutes, 14 seconds Thank you. Next question is from the line of Kesha Vlahoti from HTS securities. Please go ahead. 54:24 54 minutes, 24 seconds Just a follow up on the last question. 54:34 54 minutes, 34 seconds Sorry, the question is not clear. You're not very I'm not able to understand. 54:38 54 minutes, 38 seconds We're not able to understand. Please can you repeat? Hello. 54:45 54 minutes, 45 seconds We we uh please can you repeat the questions? Hello. 54:48 54 minutes, 48 seconds Am I audible? You are audible but we could not understand your question. Can you repeat it? 54:54 54 minutes, 54 seconds Yeah. So my question is once the display business will ramp up, is it fair to assume the margin will be to high? 55:04 55 minutes, 4 seconds So we feel that it should be it should be double digit margin. Yeah. It should be in mids. 55:10 55 minutes, 10 seconds Yeah. So that your understanding is right. 55:15 55 minutes, 15 seconds Understood. Got it. So but uh let's say what about FYI 20 it will be a full year of distribution. So initially it would 55:22 55 minutes, 22 seconds be start with lower and possible to ramp up to high in next few years. That is how we should look at the right. That's right. 55:31 55 minutes, 31 seconds Yes sir. Got it. Thank you. 55:39 55 minutes, 39 seconds Thank you. Next question is from the line of Rahul Aerwal from Ikiga. Yes sir. Please go ahead. 55:47 55 minutes, 47 seconds Uh hi sir. Uh very good evening PJ and follow just two questions uh two questions from CAPEX. Uh clearly we are 55:55 55 minutes, 55 seconds you know going ahead with most of the capacity expansions. Even fiscal 26 you have ended at 7 crores. So next year 56:04 56 minutes, 4 seconds fiscal 27 how do we look at the capex projects and which segments is the largest share? That is question one and 56:11 56 minutes, 11 seconds question two just from a top down perspective for Dixon both from an input cost inflation perspective and the you 56:18 56 minutes, 18 seconds know forex rate which is INR US dollars and how does it impact Dixon positive or negative? Is there a time lag between 56:26 56 minutes, 26 seconds what we should actually anticipate uh once you know it's a 100% pass through the business is what I understand you just you know uh put some thoughts 56:34 56 minutes, 34 seconds around you know these three points will really help to understand thank you so much so on the capex side 56:41 56 minutes, 41 seconds we feel that the capex number where lot of capex in our existing business has already been frontended the capex allocation is largely going to 56:51 56 minutes, 51 seconds be on three things one are display capacity Second are expansion of the IT business 57:00 57 minutes and third is expansion of a camera module capacity and deepening of manufacturing. 57:07 57 minutes, 7 seconds As far as absolute number is concerned, it will be in the similar range and the balance sheet and the cash acrals are adequate to support this expansion. 57:18 57 minutes, 18 seconds As far as the commodity price increase and the currency fluctuation is concerned in our EMS business, this is an absolute part true. 57:29 57 minutes, 29 seconds So there is no currency risk and there is no time lag. 57:34 57 minutes, 34 seconds As far as our ODM business is concerned which is the business of our appliances 57:40 57 minutes, 40 seconds that is washing machine, refrigerator, LED television and lighting. 57:49 57 minutes, 49 seconds That's wherein we do a product sale and we have to pass on that cost increase to the customer. 57:57 57 minutes, 57 seconds Yeah, we are pushing that cost and tweaks to the customer. Sometimes there can be a lag of a couple of months, but largely we are able to pass it on to 58:05 58 minutes, 5 seconds the customer. So that's where it is. 58:11 58 minutes, 11 seconds Got it sir. Thank you so much and wish you all the best for this community. 58:17 58 minutes, 17 seconds Thank you. Next question is from the line of sila from Kota KN&P. Please go ahead. Uh yeah thanks for the 58:25 58 minutes, 25 seconds opportunity. So one question from my side in terms of the industrial EMS opportunity is it fair to assume that in terms of the opportunity size it is 58:34 58 minutes, 34 seconds maybe as big or bigger than the IT hardware and also from a margin perspective it will be better margins with less dependency on government pl etc. Would that be a fair assumption? 58:46 58 minutes, 46 seconds Yeah, you are absolutely right. 58:49 58 minutes, 49 seconds Not so much uh not so so in the in terms of revenues it article can be a bigger opportunity but margin profiles 58:57 58 minutes, 57 seconds definitely in an EMS high margin labels business speciality EMS business will be much much higher uh definitely yes PLI uh there in that particular segment. 59:10 59 minutes, 10 seconds Sure. And my second part just a bookkeeping question of the 360 cr of uh net PLI what you have booked across five 59:17 59 minutes, 17 seconds entities uh would it be possible to give just for the mobile and EMS division? 59:25 59 minutes, 25 seconds Yeah. Uh so that would be uh 59:37 59 minutes, 37 seconds so that is closer to um almost to 250 or closer 59:45 59 minutes, 45 seconds 250. And last question now with various things on the plate is it fair to assume that our earlier thoughts of putting up 59:51 59 minutes, 51 seconds a display fab unit is much in the less priority versus some of the other businesses what we are talking about? Yeah, that's right. 59:59 59 minutes, 59 seconds That's right. 1:00:01 1 hour, 1 second Sure sir. Thank you so much and all the best for subsequent quarters. Thank you so much. 1:00:08 1 hour, 8 seconds Thank you. Next question is from the line of Kolkit from Goldman Sachs. Please go ahead. 1:00:15 1 hour, 15 seconds Uh sir thank you for taking my questions. I have a couple of them. One is you spoke about server opportunities that looking at data center servers. 1:00:23 1 hour, 23 seconds Could you highlight like what stage of discussion are we in? What is the kind of work that we could get over the next say 12 18 months here or is it very very initial stage? 1:00:36 1 hour, 36 seconds Well uh we are mapping this opportunity and dialogue with our partner has already started. 1:00:43 1 hour, 43 seconds uh we feel that the government policy framework for local manufacturing of servers and for serving the Indian data center requirement is going to get 1:00:52 1 hour, 52 seconds a significant flip. Uh so the contours are being worked out uh exact numbers and opportunity uh in 1:01:00 1 hour, 1 minute terms of numbers I'm not in a position to share. I think it's early for that. 1:01:06 1 hour, 1 minute, 6 seconds Sure sir this is clear. So my second question is I'm referring to uh notes to accounts uh 11 uh which talks about 11 1:01:14 1 hour, 1 minute, 14 seconds hot 100 odd cr which is receivable from PLI and 730 odd cr that is payable. 1:01:20 1 hour, 1 minute, 20 seconds Could you highlight the reason why why this is like uh mentioned in the note? 1:01:26 1 hour, 1 minute, 26 seconds Is it something where government's not given approval? Like if you could just highlight you know uh what's the status 1:01:33 1 hour, 1 minute, 33 seconds there in terms of both our receivable and our payout to the customer. 1:01:40 1 hour, 1 minute, 40 seconds Yeah. Yeah. So basically uh as part of the PL scheme uh there was a provision under the guideline that u and there was 1:01:46 1 hour, 1 minute, 46 seconds a budget allocated to it uh for domestic companies five domestic companies and five foreign companies. Now and there was a provision of the guideline that if 1:01:54 1 hour, 1 minute, 54 seconds some company underperforms despite domestic companies underperform uh there uh to the extent that there's an 1:02:01 1 hour, 2 minutes, 1 second overperformance by an company and in this case of course is vixen uh the the incentive will be given to the extent of 1:02:08 1 hour, 2 minutes, 8 seconds underperformance by other companies. So they have been given all the incentives by the government uh till the ceiling revenues which is ceiling which is defined per applicant or per company. 1:02:18 1 hour, 2 minutes, 18 seconds Now the overflow money is still pending which we are in discussions with the government and so there will be a and similar cases will be there for foreign 1:02:26 1 hour, 2 minutes, 26 seconds companies as well the the vendors of large global brands uh so that that thing is being pursued by the government 1:02:34 1 hour, 2 minutes, 34 seconds so the auditors feel felt right that there should be a note to it and that's the reason it has been mentioned 1:02:42 1 hour, 2 minutes, 42 seconds okay very clear thank you s thank Thank you 1:02:50 1 hour, 2 minutes, 50 seconds ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference back to the management for closing comments. 1:03:01 1 hour, 3 minutes, 1 second So thank you so much everyone for uh being with us today evening and uh thanks a lot. Have a great day. 1:03:08 1 hour, 3 minutes, 8 seconds Thank you so much. Thank you. 1:03:11 1 hour, 3 minutes, 11 seconds Thank you on behalf of Dan Capital Advisor Limited. That concludes this conference.