Fujiyama Power Systems Limited — Q3 FY26

Fujiyama Power Systems Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-xYOsUUgNDc Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Fujama Power Systems Q3 and 9M FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:26 26 seconds note that this conference is being recorded. I now hand the conference over to sumat Kumar. Thank you and over to you sir. 0:34 34 seconds Thank you. Uh good afternoon everyone and very warm welcome to Fujama power systems Q3 FY26 post results earning 0:42 42 seconds called by Mutil Financial Services Limited. On the call today we have management team being represented by Mr. 0:50 50 seconds Pawan Kumar chairman and joint manag managing director Mr. Mr. Yogesh Dwa CEO and uh joint managing director Mr. Sunil Kumar non-executive director and Mr. 1:01 1 minute, 1 second Prasant Gupta CFO. We will begin the call with key thoughts from the management team. Thereafter we we will 1:08 1 minute, 8 seconds open the floor for Q&A. I would now now like to request the management to share their perspective on the performance of the company. Thank you and over to you sir. 1:19 1 minute, 19 seconds Thank you Sumant. Good afternoon everyone and thank you for joining us today. It is pleasure to speak with you 1:26 1 minute, 26 seconds once again and to share an update on our operating and financial performance for the quarter and 9 months ended with 31st 1:36 1 minute, 36 seconds December 2025. Before discussing the number, I would like to thank our customer channel partners, employees and 1:44 1 minute, 44 seconds shareholders for their continuous trust in Fujama. The period under review marks 1:51 1 minute, 51 seconds another step forward in our journey as the listed company with steady execution across operations, manufacturing and 1:59 1 minute, 59 seconds distribution. In Q3 FY26, we delivered a strong performance with 2:07 2 minutes, 7 seconds revenue from operations of rupees 5,885 2:14 2 minutes, 14 seconds million representing a yearon-year growth of 73.8%. 2:20 2 minutes, 20 seconds This performance reflects the strength of our integrated business model and ability to scale. Abita for the quarter 2:29 2 minutes, 29 seconds more than double compared to same period last year. The margin expanding to 18.7%. 2:38 2 minutes, 38 seconds On a cumulative basis, revenue of 9 months reached rupees 17,537 2:46 2 minutes, 46 seconds million growing 65% 65.4% 4% yearonear 2:52 2 minutes, 52 seconds while AITA increased to rupees 3,188 million with margins improving to 18.2%. 3:02 3 minutes, 2 seconds A key driver of our growth has been our continued focus on expanding our and strengthening our distribution network. 3:11 3 minutes, 11 seconds During the quarter, we added over 60 distributors, more than 400 dealers, and 20 exclusive sophies outlet. 3:21 3 minutes, 21 seconds Taking our total channel partners based on over 8,200. 3:27 3 minutes, 27 seconds This expansion allow us to deepen our reach in existing markets while entering 3:34 3 minutes, 34 seconds new locations. The SOP format continue to support customer engagement by offering system guidance, installation, 3:43 3 minutes, 43 seconds support and financing assistant at local level. On the operations front, we are excited to announce the successful 3:52 3 minutes, 52 seconds commissioning of our 1 gawatt solar cell manufacturing plant at Dadri, Uttar Pradesh. With this facility, Fujama has 4:00 4 minutes taken meaningful step towards backward integration with an investment of approximately rupees 300 crores. 4:09 4 minutes, 9 seconds With this new capacity, the company now operates a total 1.6 gawatt of solar 4:15 4 minutes, 15 seconds panel manufacturing capacity with 1.2 gawatt at Dadri. The new leak commissioned solar cell capacity will be 4:24 4 minutes, 24 seconds used entirely for captive consumption significantly enhancing our supply chain 4:30 4 minutes, 30 seconds security and reducing our reliance on imported solar cells. The plant 4:37 4 minutes, 37 seconds manufactured mono perk DCR solar cell which are essential for meeting 4:44 4 minutes, 44 seconds demands from government sub subsidy based rooftop solar projects. This in-house production gives us a clear 4:53 4 minutes, 53 seconds competitive advantage as we continue to focus on domestic market. Additionally, 5:00 5 minutes the execution of this project also reflect our internal capabilities. 5:06 5 minutes, 6 seconds The Dadri solar cell plant was completed within a short period of 6 months faster than industrial timeline standard 5:16 5 minutes, 16 seconds highlighting our execution capability and commitment to timely delivery. As India solar adoption continued to 5:25 5 minutes, 25 seconds accelerate, we see favorable long-term outlook for our business. The government's focus on achieving 300 5:32 5 minutes, 32 seconds gawatt of installed solar capacity by 2030 along with rising awareness of 5:39 5 minutes, 39 seconds energy saving and increasing grid instability creates growing addressable market for our products. Our focus 5:49 5 minutes, 49 seconds remains on strengthening our manufacturing capabilities, expanding our channel network and further improving our customer experience. As we 5:58 5 minutes, 58 seconds move forward, our focus will remain on scaling our distribution network, build strong relationship with the partners 6:07 6 minutes, 7 seconds and maintaining service quality as volume grow. 6:11 6 minutes, 11 seconds We continue to build Fujama as and and end to end solar solution provider. Our 6:20 6 minutes, 20 seconds emphasis remains on disciplined execution with our presence spanning manufacturing distribution and after 6:29 6 minutes, 29 seconds sales support we believe we are well placed to capture the opportunities presented by Indian India's growth solar 6:39 6 minutes, 39 seconds growth before I conclude I would like to congratulate the entire Fujama team for 6:46 6 minutes, 46 seconds successful commissioning of the Dadri solar facility and for their consistent efforts across functions. I would also 6:55 6 minutes, 55 seconds like to thank our shareholders for their continued confidence in us. We remain 7:01 7 minutes, 1 second committed in to building a business that delivers long-term value while supporting India's transition towards 7:10 7 minutes, 10 seconds clean and reliable energy. Thank you. I will hand over to our CFO who will take 7:17 7 minutes, 17 seconds you through the detailed financial after that we will be happy to take your queries. Thank you. 7:24 7 minutes, 24 seconds Thank you Babanji. Good afternoon everyone. I will take you through the financial performance for the quarter and 9 months ended December 31st 2025. 7:33 7 minutes, 33 seconds Let me begin with the quarterly results. 7:36 7 minutes, 36 seconds During quarter 3, FYI26 revenue from operations was rupes 5,885 million compared to rups 3,3886 7:45 7 minutes, 45 seconds million in quarter 3 last year reflecting a year-on-year growth of 73.8%. 7:52 7 minutes, 52 seconds IITA for the quarter was rupes 1,99 million more than double compared to last year with margins extending to 18.7% from 15.5%. 8:03 8 minutes, 3 seconds Profit after tax for the quarter was rupees 673 million with a pat margin of 11.4% compared to 8.9% in the 8:12 8 minutes, 12 seconds corresponding period last year. The improvement in the profitability on a year-on-year basis was largely driven by better gross margins which improved by 8:20 8 minutes, 20 seconds 2.1%. This was supported by higher in-house manufacturing across solar panels, inverter and batteries. For the 8:28 8 minutes, 28 seconds past year, solar panel manufacturing capacity increased from 439 megawatt to 1,639 megawatt. Power electronics from 8:37 8 minutes, 37 seconds 1,143 megawatt to 1,743 megawatt. While battery capacity expanded from 1,363 megawatt hours to 1,863 megawatt hours. 8:48 8 minutes, 48 seconds These additions increased the share of captive manufacturing and reduce reliance on external sourcing. Scale benefits from higher volume further supported the cost absorption. 8:58 8 minutes, 58 seconds Employee benefit expenses and other cost also improved as but as a percentage of revenue on an ad basis. Employee costs declined by.3% while other expenses 9:07 9 minutes, 7 seconds reduced by2% reflecting operating discipline. 9:11 9 minutes, 11 seconds Let me now discuss the sequential performance on a quarter-on-quarter basis. Revenue from operations increased by 3.6% compared to second quarter FI26. 9:22 9 minutes, 22 seconds Whereas whereas Iita and PAT increased by 6.7% and 7.0% respectively compared 9:30 9 minutes, 30 seconds to previous quarter. The sequential improvement as a percentage of revenue in margins was supported by a.9% 9:38 9 minutes, 38 seconds extension in gross margins driven by continued backward integration and scale efficiencies. Employee benefit expenses 9:46 9 minutes, 46 seconds increased by4% during the quarter largely due to plant headcount additions ahead of upcoming 9:53 9 minutes, 53 seconds capacity expansions. This also included a one-time impact arising from changes to wage definition under the new labor 10:00 10 minutes codes. Other costs were a marginal net increase of 2%. 10:06 10 minutes, 6 seconds Moving to the 9-month performance for 9 month FIR26 revenue from operations was rupes 17,537 10:14 10 minutes, 14 seconds million compared to rups 10,63 million in the same period last year representing a growth of 65.4%. 10:22 10 minutes, 22 seconds Even for the period was rupes 3,188 million up 88.1% yearonear with margins 10:30 10 minutes, 30 seconds expanding to 18.2% 2% from 16%. Profit after tech was rupes 1,978 10:38 10 minutes, 38 seconds million with a pet margin of 11.3% compared to 9.9% in 9 months of FY25. 10:46 10 minutes, 46 seconds The improvement in 9 month profitability as a percentage of revenue was primary driven by a 1.4% extension in gross margins. Employee cost and other 10:55 10 minutes, 55 seconds operating expenses remained broadly stable as a percentage of revenue on a net basis reflecting cost control as the 11:02 11 minutes, 2 seconds business scale. That concludes my remarks on the financial performance. We can now open the floor for question and answer. Thank you. 11:11 11 minutes, 11 seconds Thank you very much ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 11:19 11 minutes, 19 seconds and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 11:27 11 minutes, 27 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 11:47 11 minutes, 47 seconds The first question is from the line of Ankit Mad Madwani from Step Trade Capital. Please go ahead. 11:56 11 minutes, 56 seconds Yeah. Hello sir. Am I ready? Yes sir. 12:00 12 minutes Uh first of all congratulations on a good set of numbers. Uh I just want the uh uh progress on the battery line uh 12:08 12 minutes, 8 seconds that uh we are expecting on the uh commissioning on March 26. Uh so shall we expect the revenue contribution in FI27 uh Q1 FI 27? 12:24 12 minutes, 24 seconds Uh uh uh you are asking about battery line at Ratlam or something else. 12:32 12 minutes, 32 seconds battery line at Dad means solar cell line. 12:41 12 minutes, 41 seconds I'm asking about the battery line at Dadri which we are targeting uh the commissioning by March 26. 12:50 12 minutes, 50 seconds Uh actually sir uh there is new line atlami basically 12:57 12 minutes, 57 seconds uh just I I check if there is any confusion. 13:03 13 minutes, 3 seconds Uh Dadri. Uh okay 13:12 13 minutes, 12 seconds sir. Uh there is no expectations of uh any battery line at Dad. Actually may uh one new line is coming at Ratlam. 13:20 13 minutes, 20 seconds Basically at Ratlam uh three lines are coming. Uh one is solar solar module 13:27 13 minutes, 27 seconds line 2 gawatt and uh uh lithiumion pack line 2 gawatt and uh uh inverter or power electron line 2 gawatt basically. 13:39 13 minutes, 39 seconds Okay. Okay. And dad only solar panel line was expected and solar cell line was expected. Both are commissioned already. Number eight. 13:50 13 minutes, 50 seconds Slide number eight. You can refer the slide number eight for that or for earning presentation. You can get the detailed idea from there. 13:58 13 minutes, 58 seconds Okay. Okay. Then then so uh should we expect the revenue uh contributing in Q1 F27 from RLAM facility? Right. 14:09 14 minutes, 9 seconds Yes. Uh K127. Yes. Uh new RLAM lines will contribute definitely for revenue contribution. 14:19 14 minutes, 19 seconds Okay. And uh uh could you just uh give me the uh revenue split for the uh for this quarter? 14:26 14 minutes, 26 seconds How much battery have contributed and uh product split? Yeah, product split. 14:34 14 minutes, 34 seconds Product wise revenue or something else? Product wise. Product wise. 14:39 14 minutes, 39 seconds Okay. So, uh last page. 14:47 14 minutes, 47 seconds This is page number. Mark. 14:51 14 minutes, 51 seconds So uh for panel out of 17 uh you want for the quarter right? For this quarter. 14:59 14 minutes, 59 seconds Yes. So out of 5,884 uh around 298 cr was for solar panel uh 1,00 15:07 15 minutes, 7 seconds sorry 100 cr for battery and uh around 1,600 for electronics and rest in uh others category. 15:23 15 minutes, 23 seconds And uh so I have uh uh I was going through the uh the uh financial 15:30 15 minutes, 30 seconds statement and uh notice the uh margin expansion in this quarter. So could you just uh clear clarify the uh reason 15:39 15 minutes, 39 seconds behind it and uh should we expect the same expansion going forward or uh 19% is sustainable? 15:51 15 minutes, 51 seconds Uh the margin expansion is mainly uh due to our scaling that benefit that we have received. So when you compare with the 15:59 15 minutes, 59 seconds quarter to are you referring here quarter to quarter quarter to quarter? 16:04 16 minutes, 4 seconds Yes. So when we talk on the quarter sequential basis of quarter two versus the quarter 3. So we have around.9% 16:13 16 minutes, 13 seconds as a percentage to revenue or margin increase due to or scaling benefits and as you know that in the past one year we have increased our in-house 16:21 16 minutes, 21 seconds manufacturing of solar battery and panel board. So that we just uh narrated in our opening remarks. So that's that's the main contributor of increasing the overall margin from 11.08% to 11.44%. 16:32 16 minutes, 32 seconds That's the main uh reason. Okay. Okay. Done. Bye. Thank you. 16:40 16 minutes, 40 seconds Thank you. Thank you for your question. 16:42 16 minutes, 42 seconds Thank you. The next question is from the line of Basani from Pinpoint X Capital. Please go ahead. 16:50 16 minutes, 50 seconds Um hi sir, thanks for the opportunity and congratulations on the good set of numbers. So I just wanted to check uh what would be the uh approximate you 16:59 16 minutes, 59 seconds know uh cost savings that would happen from the integration of uh the solar cell line at DARI. 17:08 17 minutes, 8 seconds Okay. Um, regarding solar cell line, one thing I want to explain here, we had targeted uh 17:16 17 minutes, 16 seconds total budget of uh solar cell line was around 400 cr while we completed this 17:23 17 minutes, 23 seconds line uh in around 300 cr. So this is one of the main achievement of the company. 17:29 17 minutes, 29 seconds I I am coming to product wise also. But here I want to explain this factor also. 17:35 17 minutes, 35 seconds Okay. In installing this line we saved big amount and uh regarding the uh like 17:43 17 minutes, 43 seconds integration benefit uh because DCR mainly PM Surya Gary Yojina and socially 17:52 17 minutes, 52 seconds based business we are not getting much business because we are not getting sales from the market basically. So we 18:01 18 minutes, 1 second we are getting very few quantity from the market. Uh now as this uh is 18:08 18 minutes, 8 seconds integrated in house cell manufacturing so first thing our revenue will definitely uh this facility will 18:17 18 minutes, 17 seconds increase our revenue because uh we can get subsidy based business as well. 18:23 18 minutes, 23 seconds again that DCR sales are very uh like uh demand and supply gap is very high. So 18:33 18 minutes, 33 seconds uh like cost of DCR sales are higher side. So definitely margin side also uh we will get benefit from this integration. 18:44 18 minutes, 44 seconds Uh sir could you quantify that? 18:48 18 minutes, 48 seconds Quantify at this stage is very difficult sir. This is actually uh solar cell is like a new experience. First we uh ramp 18:58 18 minutes, 58 seconds up properly. Uh um we already uh uh like uh started it and uh we are getting 19:05 19 minutes, 5 seconds sales and uh uh we are confident at the end of this quarter uh we will be 19:12 19 minutes, 12 seconds ramping up to fully this and uh in next quarter uh like at the end of 19:19 19 minutes, 19 seconds this quarter we will uh like we can say something about this basically when we 19:26 19 minutes, 26 seconds fully uh like ramp up with this line then we can comment on this part. Mostly in next earning call we will give more details. 19:39 19 minutes, 39 seconds Got it. Okay sir. And sir uh on the Ratlam new facility what would be the peak potential of revenue and you know 19:47 19 minutes, 47 seconds how much we are able to get on the utilization front for let's say next year and year after that. 19:56 19 minutes, 56 seconds Okay. After Atlam facility fully uh commissioning our total manufacturing capacity will be approximate double. We 20:04 20 minutes, 4 seconds can say and uh you can say uh like revenue uh potential is also double in 20:13 20 minutes, 13 seconds that case. We can go up to double uh uh but uh we are not committing uh it will 20:21 20 minutes, 21 seconds be done but uh we will try basically because uh manufacturing means not okay 20:28 20 minutes, 28 seconds uh we get total sale we will try uh and opportunity is there market demand is 20:34 20 minutes, 34 seconds there uh and uh definitely uh 20:41 20 minutes, 41 seconds this facility new um double the capacity will give uh good good revenue and good margins. 20:51 20 minutes, 51 seconds Um understood sir but uh just on so till when we are trying to achieve that utilization like around 100% or 90% 20:59 20 minutes, 59 seconds utilization till what year we are trying to expect that uh okay 21:08 21 minutes, 8 seconds just rough guide and nothing I holding you to just I think um what I can say 21:16 21 minutes, 16 seconds definitely at least 50% of would utilize in next year and 100% in 21:23 21 minutes, 23 seconds second next year or maybe if you have like with good wishes of yours maybe we 21:30 21 minutes, 30 seconds could use fully maybe in next year but not conf we can comment basically 21:37 21 minutes, 37 seconds comment on that part if demand demand is there in the market but uh 21:49 21 minutes, 49 seconds Yes, we shall try to utilize all the production capacity uh that we are trying to build up in Vietnam and we are 21:58 21 minutes, 58 seconds very positive about this and let us hope that uh uh we may utilize the maximum capacity by this year. 22:08 22 minutes, 8 seconds Okay. Coming here to one more on the solar rooftop business. 22:13 22 minutes, 13 seconds Sir, till when it is uh mandated by the government to use you know to be able to use non DCR cells as well. So like I'm 22:22 22 minutes, 22 seconds asking till from when the there would be mandate to use compulsory DCR cells in solar rooftop uh subsidy business. 22:30 22 minutes, 30 seconds No sir in subsidy business only VCR solar film is uh is being utilized wherever the subsidy is uh there 22:38 22 minutes, 38 seconds wherever there is no subsidy uh uh there is a flexibility of using nonBCR but by June 26 there is new notification which 22:47 22 minutes, 47 seconds is being implemented we are expecting that this cell be implemented in June 26 there all kind of solar panel 22:55 22 minutes, 55 seconds utilization will be through DC cell only green Yeah. Yes. 23:03 23 minutes, 3 seconds Okay. Thank you so much, sir. I'll get back in queue. Thank you. 23:11 23 minutes, 11 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question 23:18 23 minutes, 18 seconds is from the line of Rajes from ET solution. Please go ahead. Hello sir. 23:27 23 minutes, 27 seconds Hello. Yes sir. Yes sir. 23:30 23 minutes, 30 seconds I just wanted to know uh what is your procedure to get new company on board? 23:35 23 minutes, 35 seconds Like if somebody some company they wanted to work with you so how do you get them on on board? 23:44 23 minutes, 44 seconds New company on board sir. Uh we appoint distributors to work with us. The majorly our distributors are our buyers. 23:53 23 minutes, 53 seconds So uh we have a uh process of making distributors and uh we first check their uh current uh market standing, their 24:02 24 minutes, 2 seconds current business size, their uh statement we check and their bankability we check and then we uh make them our 24:10 24 minutes, 10 seconds distributors after they invest in our company. 24:19 24 minutes, 19 seconds Am I clear sir? Hello. 24:33 24 minutes, 33 seconds Yes. Can you hear it? 24:43 24 minutes, 43 seconds Uh, I think line is disconnected. Raj sir. 25:00 25 minutes The line of Rajes has been disconnected. Sir, we will move ahead. Okay. 25:07 25 minutes, 7 seconds So the next question is from the line of Anur Jopya. Sir, please go ahead. 25:14 25 minutes, 14 seconds Yeah. Hi, thanks for the opportunity and congrats on good set of numbers sir. So just want to get a sense on the capex which would be incurred on the uh ratlam 25:24 25 minutes, 24 seconds capacity and if you can give a breakup across all uh capacity expansion across inverter battery and module like 2 25:30 25 minutes, 30 seconds gawatt each which would be expanding how much capex would go for all three and if you can provide the segregation that would be helpful. 25:42 25 minutes, 42 seconds Sure. So Anoj the overall size excluding land in terms of uh ina millions it is 25:49 25 minutes, 49 seconds around 272 crores specifically if we ask on out of these 272 crores 159 is for machine and if we further segregate this 25:58 25 minutes, 58 seconds machine so 106 cr will be for solen solar module uh 28 cr for the solar inverter and 25 cr for lithium ion 26:06 26 minutes, 6 seconds battery and rest other out of out of other than this 159 of machinery rest is for utilities and it and rest of the expenses. 26:18 26 minutes, 18 seconds Okay. Okay. Uh that's [clears throat] helpful. And secondly on your uh uh the cell plant uh now the plant has been 26:26 26 minutes, 26 seconds commissioned by when can we expect the full stabilization to happen sir? 26:32 26 minutes, 32 seconds Uh at the end of this quarter we are expecting uh like uh maximum 26:38 26 minutes, 38 seconds utilizations basically and uh Yes, yes, please. 26:45 26 minutes, 45 seconds So, roughly around 80% is something which is achievable by the end of this quarter. 26:49 26 minutes, 49 seconds Yes. Yes. Uh we we are now about uh around 40% at this time and uh at the 26:58 26 minutes, 58 seconds end of this quarter we are expecting up to 80%. Basically fine fine and uh can you again quantify 27:05 27 minutes, 5 seconds sir in uh the current quarter in terms of megawatt how much we had uh sold or executed [snorts] uh in the overall 27:13 27 minutes, 13 seconds rooftop per se and al the same number for 9 month as well of megawatt for the 9 month we sold 27:23 27 minutes, 23 seconds around 60 megawatt of solar panels and when we talk clear 460 megawatt solar panels. 27:32 27 minutes, 32 seconds 460. Okay. 27:34 27 minutes, 34 seconds 460. Yes. And for the similar period in last year we sold 255 megawatt of solar panels. 27:42 27 minutes, 42 seconds And this is for full year by 25 you are saying 9 months. No, this is for the same correspond. 27:50 27 minutes, 50 seconds Right. And for inverter we sold around 900 megawatt of inverter charger and UPS. And for the last year the same 27:56 27 minutes, 56 seconds number for the same period was 58 megawatt 58 500. 28:08 28 minutes, 8 seconds Got it. Got it. Any guidance you'd like to give for FI27? How much we are targeting in terms of megawatt sales? 28:16 28 minutes, 16 seconds Megawatt sales. Okay. 28:20 28 minutes, 20 seconds 1500 for FY27 you asking? 28:26 28 minutes, 26 seconds Yeah. Any guidance that would be helpful? 28:30 28 minutes, 30 seconds Uh number 28:40 28 minutes, 40 seconds uh uh you can just uh double this 9 months 28:46 28 minutes, 46 seconds basically. I I would say uh Okay. So, roughly you are saying close to around 800 900. 28:55 28 minutes, 55 seconds No, no, no, no. Just a minute. Just a minute. Give me 29:23 29 minutes, 23 seconds Okay. We will do minimum 1 G each solar panel, inverter and battery. 29:31 29 minutes, 31 seconds 1 G you're saying. [cough] Okay. Okay. 29:35 29 minutes, 35 seconds Each solar panel or more? We will try more basically. 29:42 29 minutes, 42 seconds Okay. And uh can you also mention what the current debt level? I I mean in the presentation nowhere it was mentioned about the current debt status. 29:52 29 minutes, 52 seconds Yeah, it's around 470 plus 470. Yes. 30:00 30 minutes It is including term loan, working capital, vendor finance all collective stream all inclusive. Okay. Okay. Yes. 30:08 30 minutes, 8 seconds Fine sir. And if may I ask the last question uh if the time permits. Um just to get your view on the recent rise in 30:17 30 minutes, 17 seconds the raw metal prices especially the silver and aluminium. So would it have any kind of impact on our profitability 30:25 30 minutes, 25 seconds or you know the market is as such we can uh pass through pass it on to the consumer. So uh your view on this s and how exactly things are panning out here? 30:36 30 minutes, 36 seconds uh increase or decrease all all will be passed to customer sir. 30:42 30 minutes, 42 seconds Any increase in or decrease in price will be passed to customer and uh in last two three days there is 30:51 30 minutes, 51 seconds much more relief what market was doing before 2 three days and now in last 2 three days much relief is there. 31:03 31 minutes, 3 seconds Okay, fine. Fine, sir. That's it from my end and thanks for the opportunity and wish you good luck, sir. Thank you, sir. Thank you. Thank you. 31:12 31 minutes, 12 seconds Thank you. The next question is from the line of Aman from Augmenta. Please go ahead. 31:19 31 minutes, 19 seconds Yeah. Hi. Hi, sir. Thanks for the opportunity. So, firstly, uh a couple of questions. uh first from the yesterday's 31:27 31 minutes, 27 seconds uh budget highlight if I'm not wrong the government has withdrawn the the basic custom duty which was uh 0% earlier and 31:36 31 minutes, 36 seconds they have increased it to 7 to 10% on the wafers and the the value chain prior to sell. So if you could highlight on 31:44 31 minutes, 44 seconds that and uh secondly my question is on that I I I saw that we have recently put up uh the cell line which is Monopk. So 31:54 31 minutes, 54 seconds according to the conversation we were having with the industry uh industry people or the companies which we are invested in earlier. So everyone was was 32:04 32 minutes, 4 seconds of the view that your uh your wafers won't be available for monopark for a long period of time because uh everyone 32:11 32 minutes, 11 seconds has shifted to topcon and similarly to other technology like HJT or etc. So if you could throw some light on this monop 32:18 32 minutes, 18 seconds thing and also on the uh exam uh the removal of the basic 0% basic custom duty on wafers. 32:28 32 minutes, 28 seconds Okay sir. Uh first we take uh about the custom duty on weapers and uh we try to 32:34 32 minutes, 34 seconds go through the uh various uh uh this is and this was one more question from one 32:42 32 minutes, 42 seconds more person and uh uh there was there is no some uh such uh uh like uh 32:50 32 minutes, 50 seconds evidence of this there is any custom duty on wafer. Actually one more one thing found okay black wafer can be used 32:59 32 minutes, 59 seconds as DCR cell only no blue wafer can be used and this was earlier as well uh 33:06 33 minutes, 6 seconds custom duty there was no evidence in the budget there is any custom duty on the wafer and uh only policy recon is uh 33:17 33 minutes, 17 seconds some some persons told there is some provision of custom duty on Poly 33:24 33 minutes, 24 seconds silicone uh that is material to be used to make the wafer but uh at this time uh 33:32 33 minutes, 32 seconds regarding our business we are not using Indian wafer. So uh that will not affect 33:40 33 minutes, 40 seconds our like uh purchasing purchasing cost in that case if uh there 33:46 33 minutes, 46 seconds is some change in the custom duty of policy. 33:52 33 minutes, 52 seconds Uh regarding the wafer there is no change in uh custom duty on wafers. 33:58 33 minutes, 58 seconds Okay. And on that monopark thing regarding the monopark uh you can see 34:04 34 minutes, 4 seconds the most uh uh US is using monopark more and more in place of tropon. So we are not uh we we have checked uh from China. 34:18 34 minutes, 18 seconds So we are not uh uh experiencing any uh like uh uh 34:27 34 minutes, 27 seconds uh so we can use both mono and top cell there is no no uh major differences 34:34 34 minutes, 34 seconds uh wafer uh he's asking wafer supply uh in next 3 four years there is no such 34:43 34 minutes, 43 seconds evidence in China we cannot get the wafer basically or other places because US also using uh 34:51 34 minutes, 51 seconds mostly perk per park per park per park 34:52 34 minutes, 52 seconds per park per park per park per park per park per park per park per park cell basically at this time and also some uh there are lot of other cell manufacturers which are uh continuing 35:01 35 minutes, 1 second manufacturing for mono and uh uh there is a major scale of consumption of uh uh 35:09 35 minutes, 9 seconds mono webers and there is no issue in that and uh in our supply chain there is uh pure uh there is no issue in 35:18 35 minutes, 18 seconds consumption of mono and uh the efficiency difference versus the price difference is also a a good economics 35:25 35 minutes, 25 seconds for our Indian consumers. So uh we think it's a it's a good equation for at least 3 years. After that we can think of 35:34 35 minutes, 34 seconds converting this monol line into uh top line which is a clear possibility and we can do that. 35:41 35 minutes, 41 seconds Sir because uh the intensity of capeex for a let's say 1 gawatt monop line if I'm not wrong that the your company has 35:49 35 minutes, 49 seconds invested approximately 250 to 300 crores for a 1 gawatt of monopark line and uh similarly similarly for the topcon thing 35:58 35 minutes, 58 seconds this cost would be easily upwards of 500 cr right so there could be some material differences and you know the major 36:05 36 minutes, 5 seconds manufacturers in the country are going for top line so there could be some reason paid for this. 36:12 36 minutes, 12 seconds Yes sir. Yes sir. Definitely sir. Uh before 6 month when we decided uh uh we 36:21 36 minutes, 21 seconds had to take the decision should we go for tokon or should we go for monopark. 36:26 36 minutes, 26 seconds So we realized if we go for monopark we can complete the line within 6 months 36:32 36 minutes, 32 seconds and if we go for tokone first line so minimum we require one year. Then this 6 36:40 36 minutes, 40 seconds month we we would have revenue loss totally because cell is not uh the main component for us. Cell makes the module 36:49 36 minutes, 49 seconds and module makes the SPGs for this small uh like small cell we 36:56 36 minutes, 56 seconds have big revenue loss basically. So we so we decided to go for park and uh this early 37:04 37 minutes, 4 seconds uh commissioning is possible because uh park is well established in India. Yeah. 37:11 37 minutes, 11 seconds And uh uh it was easy and uh you can see uh we are ramping up fast basically. 37:23 37 minutes, 23 seconds Okay. Yeah. 37:24 37 minutes, 24 seconds Yes sir. We saved the post in the line and because when we uh we given the 37:30 37 minutes, 30 seconds order of line at 6 months before then uh we we could negotiate better because uh 37:38 37 minutes, 38 seconds this was like going technology for China or other countries and 37:45 37 minutes, 45 seconds the uh many companies who order one year ahead us they we completed faster than 37:53 37 minutes, 53 seconds them. Some of the companies give order one year in advance and they have given 38:00 38 minutes the park line order and we completed faster than um those those 38:07 38 minutes, 7 seconds and sir and what what's your what's your sense on the guidelines for the DCR thing because uh according to the government notifications everything and 38:16 38 minutes, 16 seconds so it should be implemented by June or July of this year maybe 2026 so because Um but I believe we don't have adequate 38:25 38 minutes, 25 seconds cell capacity domestic cell manufacturing capacity in the country. 38:29 38 minutes, 29 seconds So this timelines will be shifted or like how are we seeing it? 38:33 38 minutes, 33 seconds So we expect that this timeline will be shifted by a few months and uh even if does not shift it's it's good for Indian 38:41 38 minutes, 41 seconds industry maybe uh because uh uh capacity is in the pipeline and uh the pipeline 38:48 38 minutes, 48 seconds will mature faster I think that because we doing stress now basically we we perform better. 39:00 39 minutes Okay. Okay. So that's all for my sir. Thank you. Thank you sir. 39:05 39 minutes, 5 seconds Thank you. Participants who wish to ask a question may press star Anan on the touchstone telephone. 39:12 39 minutes, 12 seconds The next question is from the line of Udit from Pinpoint X capital. Please go ahead. 39:19 39 minutes, 19 seconds Yeah good afternoon sir and uh congratulations on a good set of results. uh s the uh slide number 12 is 39:27 39 minutes, 27 seconds very interesting where you talk of almost a 40 to 45% CAGR projected for the rooftop solar market. So uh could 39:36 39 minutes, 36 seconds you give us like a broad picture and what the government targets are and uh for the subsidy and for the non-s subsidy rooftop market what is the 39:45 39 minutes, 45 seconds projection and what are we trying to capture just so that we understand what are the tailwinds in this. 39:53 39 minutes, 53 seconds Yes sir. uh actually there is a historical CAGR of 45% and uh the upcoming industry expectation is also 40 40:02 40 minutes, 2 seconds to 43% CAGR and uh in the last budget we have also seen that there is a continued support uh for the rooftop solar so we 40:10 40 minutes, 10 seconds expect that this CAGR is possible and it will happen okay uh and sir regarding uh right now 40:20 40 minutes, 20 seconds if we uh what is the percentage of solar panel in the in our complete product in you know in the complete package if you 40:27 40 minutes, 27 seconds talk of uh percentage in terms of revenue or percentage in ter of megawatt 40:36 40 minutes, 36 seconds in terms of revenue sir say suppose we are talking that we have done 460 megawatt in the 9 months 40:45 40 minutes, 45 seconds uh that and we have done uh so what like what is the percentage of solar panel in the complete system that is applied. 40:55 40 minutes, 55 seconds So in terms of value uh out of our total revenue generally it amounts to 40 to 45 to 47%. 41:04 41 minutes, 4 seconds Out of 100 rupees actually sir per watt uh cost of solar panel is higher than 41:10 41 minutes, 10 seconds per watt cost of uh inverter or per cost of battery basically. So that's why uh total revenue from the solar panel side is higher. 41:22 41 minutes, 22 seconds I was just trying to understand so that what our production capacity is is there because right now we are doing say 41:28 41 minutes, 28 seconds approximately around 650 to 700 megawatt per year is what we'll be doing and uh 41:36 41 minutes, 36 seconds now we are adding 1 gawatt uh for DCR subsidy business and further 2 gawatt in 41:44 41 minutes, 44 seconds ratlam. So our capacity uh would go up to almost say what three and a half to 4 gawatt 41:52 41 minutes, 52 seconds right my is understanding correct right right sir right right right so sir 41:59 41 minutes, 59 seconds actually this 3 gawatt or 3.5 gawatt is name plate capacity sir or u what is u 42:07 42 minutes, 7 seconds if we uh like uh study all over industry average so u normal capacity is around 42:14 42 minutes, 14 seconds 80% % basically of name plate capacity in every like uh like uh this is industry average and 42:23 42 minutes, 23 seconds like utilizations is against again again again 80% of normal capacity to we can say utilizations if 65% 42:33 42 minutes, 33 seconds yeah 66% utilizations is there uh then we can say industry understand it good utilizations 42:42 42 minutes, 42 seconds basically Uh this is like industry average basically name plate capacity because 42:49 42 minutes, 49 seconds Chinese when sold the machine uh they calculate 365 days 24 hours and biggest 42:57 42 minutes, 57 seconds uh biggest size panel basically that is name plate capacity. Suppose uh one line 43:04 43 minutes, 4 seconds cap one line is can produce up to 700 watt channel and uh it produces all over 43:11 43 minutes, 11 seconds the year 700 watt and uh 24 hours we run then it will be 100 like 1 gawatt line 43:20 43 minutes, 20 seconds will produce 1 gawatt solar panel but it doesn't happen every time because because biggest panel is not produced 43:27 43 minutes, 27 seconds every time and there are holidays and there are some maintenance work and etc. 43:32 43 minutes, 32 seconds Then normal capacity is around 80%. And uh good utilizations is 80% of normal 43:39 43 minutes, 39 seconds capacity. If it means 64 to 65% utilization is like peak most in most of the cases is peak utilization. 43:50 43 minutes, 50 seconds Uh so sir regarding this uh 1 megawatt cell and module facility which has come up at Dadri uh since it's the subsidy 43:58 43 minutes, 58 seconds business that we were not doing earlier uh do you think we can ramp up the production and the sales uh very fast for this or again it will take time? 44:10 44 minutes, 10 seconds Yes sir, we can do it very easily because uh the customers are same the uh channel partners are same which are continuously asking from last two three 44:18 44 minutes, 18 seconds years to uh give us uh uh this DCR panel and uh we are we are giving them as much 44:27 44 minutes, 27 seconds as possible. So this facility will help us uh give access to uh this production of DCR solar panels and we'll be able to 44:36 44 minutes, 36 seconds uh consume inhouse all the all the all we can produce. 44:41 44 minutes, 41 seconds Okay. So we suppose we run 80% so almost 800 megawatt of BCR market we can capture in the coming year. 44:49 44 minutes, 49 seconds Yes. Yes. Yes we can. Yes. And sir what currently? Yes sir. 44:55 44 minutes, 55 seconds uh we we could achieve only uh few customers if we we could achieve only 45:03 45 minutes, 3 seconds few cells DCR sales from competitors u before we start this DCR cell 45:10 45 minutes, 10 seconds manufacturing so our dealer distributors were not happy from us we are not giving 45:17 45 minutes, 17 seconds enough material to them basically you mean to say there is a lot of demand for it shouldn't be a problem selling 45:25 45 minutes, 25 seconds answer. Yeah. Now we we could make happy our dealer distributor basically. 45:32 45 minutes, 32 seconds That's great. And what is the difference between the DCR cell and nonr cell as of today? 45:39 45 minutes, 39 seconds DCR selling means domestic content basically India made sell is DCR sir. No in price wise I mean sir 45:49 45 minutes, 49 seconds uh repeat sir please relaxation price because demand and supply there is big 45:55 45 minutes, 55 seconds gap so price for DCR is higher sir uh what would be the range like earlier 46:02 46 minutes, 2 seconds it was around 8 to 10 rupees gap that's still the range or it depends month basis sir when um 46:12 46 minutes, 12 seconds according to demand price uh sometimes uh fluctuates sir basically. 46:19 46 minutes, 19 seconds Okay. 46:21 46 minutes, 21 seconds Right. So thank you so much and best of luck. Thank you sir. Thank you. Thank you sir. Thank you. 46:30 46 minutes, 30 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. 46:38 46 minutes, 38 seconds The next question is from the line of Rajes from ET solution. Please go ahead. 46:45 46 minutes, 45 seconds Hello. Uh sir, I was got disconnected before. So my question is how do you on board if any new company want to work 46:53 46 minutes, 53 seconds with you? So what is the process you follow? 46:56 46 minutes, 56 seconds Sorry to interrupt. So Rajes, you're quite not audible. Can you please come closer to the mic? So are you able to listen? 47:05 47 minutes, 5 seconds Oh yes yes. 47:08 47 minutes, 8 seconds Okay. So I Yes sir. 47:12 47 minutes, 12 seconds Actually our major business is distribution business and we appoint distributors new distributors to work in 47:19 47 minutes, 19 seconds uh different areas or or our second brand pajama brand. So our our process to appoint distributor is that uh we uh 47:28 47 minutes, 28 seconds uh check their uh previous business the capacity of their uh doing business and 47:35 47 minutes, 35 seconds their financials. uh we check and then uh uh their dealer cap dealers relationship we check and then uh if it 47:44 47 minutes, 44 seconds is okay we will take them take their investments to appoint them our distributor. This is the way we follow sir. 47:57 47 minutes, 57 seconds I have a 500 employees. 48:14 48 minutes, 14 seconds Your voice is not clear sir. There is some issue. Hello. Hello. Yes, sir. Yes, sir. 48:22 48 minutes, 22 seconds Hello. Can you hear me now? 48:26 48 minutes, 26 seconds So, your voice is echoing. You need to use a headset while asking question like use a mic device. 48:37 48 minutes, 37 seconds Uh so the line of Rajes has been disconnected again. We'll move on ahead. Our network issue was there. 48:46 48 minutes, 46 seconds So shall we move to the next participant? Yes sir. Yes please. 48:51 48 minutes, 51 seconds Uh the next follow-up question is from the line of Anikad Madwani from Step Trade Capital. Please go ahead. 48:59 48 minutes, 59 seconds Hello. Yes sir. So yesterday in the budget the government said that the basic there was the they have exempted the 49:07 49 minutes, 7 seconds basic customs duty for solar raw materials of solar glass manufacturing. 49:11 49 minutes, 11 seconds So can our company expect any benefit regarding that uh decision? 49:17 49 minutes, 17 seconds Uh yes sir definitely like uh raw material for glass is exempted uh like custom duty is reduced from 7.5% to 0%. 49:27 49 minutes, 27 seconds Then domestic glass uh we expect domestic glass we will get at better price basically. 49:35 49 minutes, 35 seconds Okay. So can we expect it will be benefit and we are using mostly in India made glass major major 49:44 49 minutes, 44 seconds raw material uh we are using India made so definitely we we are expecting better prices in future coming future. 49:54 49 minutes, 54 seconds Okay. 49:58 49 minutes, 58 seconds And also the the customs duty in battery cells so was exempted. So can we expect benefits in that angle too? 50:08 50 minutes, 8 seconds Custom duty on uh machines for making the battery is exempted basically and uh 50:15 50 minutes, 15 seconds in previous years this was also exempted basically because uh there is one 50:21 50 minutes, 21 seconds license IGCR against IGCR we can uh clear the machines at zero duty basically and this uh facility is 50:30 50 minutes, 30 seconds continued uh like last year. So definitely uh in making the ecosystem in 50:38 50 minutes, 38 seconds India it will help. There are other licenses also from the government against which we can uh like uh clear 50:45 50 minutes, 45 seconds the machines at zero duty. There are various licenses but uh uh this is like 50:53 50 minutes, 53 seconds most easy license basically IGCR which can uh be achieved basically and uh 51:01 51 minutes, 1 second machines can be cleared. So to make the ecosystem for uh battery energy system 51:06 51 minutes, 6 seconds uh it will help and uh we we have other uh we we have other 51:14 51 minutes, 14 seconds approaches also to career the machine at uh exempted duty. Other license are also 51:21 51 minutes, 21 seconds there but this is uh like most common license in so like industry and uh new 51:31 51 minutes, 31 seconds people can easily use this license IGCR. 51:37 51 minutes, 37 seconds Okay. Okay sir. So should we should expect improvement in operating margins in the coming quarter or in the coming years? 51:49 51 minutes, 49 seconds Sir, uh definitely we will try better better every time but uh there are any 51:56 51 minutes, 56 seconds number of factors. So we will uh we we are keen to make the operations more 52:04 52 minutes, 4 seconds efficient and more efficient after after COVID we what we did uh we work on every 52:12 52 minutes, 12 seconds problem. Whatever problem comes it is opportunity to improve. Basically every time we work on problem and uh there is 52:22 52 minutes, 22 seconds one trend in our company that is called kapa c a corrective and preventive 52:28 52 minutes, 28 seconds action. Any problems comes we generate kapa and we work on that. Okay. What is 52:36 52 minutes, 36 seconds corrective action and what is preventive action? So it improves uh operational efficiency every time 52:43 52 minutes, 43 seconds every time every time. So uh we hope and we are keen for uh making more and more 52:51 52 minutes, 51 seconds we are introducing uh AI in every operation. So in future definitely you 52:59 52 minutes, 59 seconds will see more and more more and more operational efficiency. Okay. 53:08 53 minutes, 8 seconds Sorry. Hello. Yes sir. Yes sir. 53:18 53 minutes, 18 seconds Participants who wish to ask a question may press star and one 53:34 53 minutes, 34 seconds is in the queue. 53:39 53 minutes, 39 seconds The next question is from the line of Udagal from Pinpoint X capital Capital. Please go ahead. 53:46 53 minutes, 46 seconds Uh sir, I just wanted to know uh what is our pass through mechanism of the uh you know increase in raw material prices and uh what are our payment terms? 54:07 54 minutes, 7 seconds Okay. [clears throat] Uh sir um practically what happens sir 54:13 54 minutes, 13 seconds when uh there is increase in price what happens main thing is demand and supply 54:22 54 minutes, 22 seconds basically. So all the industry is there to earn something basically and all 54:30 54 minutes, 30 seconds persons like increase slowly slowly because like this year uh we can say 54:36 54 minutes, 36 seconds sell prices are increased by rupees 2 per watt for example and uh uh like we 54:45 54 minutes, 45 seconds have good stock then we u like China make price hike in sell rupees 2 per 54:54 54 minutes, 54 seconds watt then immediately we are not increasing price because we have good stock. So what we uh uh what we start we 55:04 55 minutes, 4 seconds start with uh 25 pesa per week increase so that in two months we can pass total 55:13 55 minutes, 13 seconds um price hike to customer. But now uh like uh in the meantime uh silver is 55:20 55 minutes, 20 seconds coming back and we hope uh the price of sell will also come down and we we are 55:26 55 minutes, 26 seconds not required to reach that up to that level if uh it happens. So, 55:34 55 minutes, 34 seconds so mostly what happens till till 55:41 55 minutes, 41 seconds basically we uh communicate our uh future plans of increasing or decreasing prices to our distributors sent 55:49 55 minutes, 49 seconds partners. They stock accordingly and that this this way it is fast them passed on 55:57 55 minutes, 57 seconds to them. Whatever the stock we pass slowly. When stock finish totally uh increase or decrease is passed to customer. 56:07 56 minutes, 7 seconds In case of decrease also it is slowly past increase of increase it is also slowly passed to customer. 56:17 56 minutes, 17 seconds So basically sir we try to maintain our gross margins. I mean the increase or decrease our gross margin 56:24 56 minutes, 24 seconds more or less remains in a range maybe half%. 56:28 56 minutes, 28 seconds Because immediately increase like customer is not happy if we increase immediately. If we have stock we give 56:36 56 minutes, 36 seconds the benefit of stock to customer and uh we we make them comfortable. Okay. Yet 56:42 56 minutes, 42 seconds price is increasing and uh like uh it will be slowly in like we give the message in next 8 weeks it will increase 25 pesa per week. 56:54 56 minutes, 54 seconds Okay. Like that. 56:56 56 minutes, 56 seconds Okay. And even in sir in the solar panels we are hearing that the use of silver will start coming down because of the increased prices some copper paste 57:05 57 minutes, 5 seconds are being developed and like are we doing any any R&D of that sort it will take time sir years of time 57:13 57 minutes, 13 seconds basically this process is not uh easy uh just to replace uh basically silver 57:20 57 minutes, 20 seconds paste yes R&D is started basically but uh it can take one year or 6 months 57:27 57 minutes, 27 seconds minimum if it is successful because there is a long experiment for that. 57:36 57 minutes, 36 seconds So but since we are a B2C business but since we are a B2C business our sale price is not fixed so eventually we will 57:43 57 minutes, 43 seconds pass it on to the consumer whatever the increase. 57:46 57 minutes, 46 seconds Yes sir. So it is uh it will happen sir basically no one can survive without passing sir. 57:55 57 minutes, 55 seconds Okay sir. Thank you so much sir. Best of luck. Thank you. 58:00 58 minutes Thank you ladies and gentlemen. That was the last question. I would now like to hand the conference over to the management for the closing comments. 58:25 58 minutes, 25 seconds Thank you very much everyone for insightful questions and continue interest in Fujama. We appreciate the 58:32 58 minutes, 32 seconds confidence you place in our company. If you have any additional questions, please feel free to reach out to our 58:39 58 minutes, 39 seconds investor relationship advisor churchgate partners and we will be glad to assist you. Thank you very much for time and 58:47 58 minutes, 47 seconds support. Thank you. Thank you. Thank you. Thank you very much. 58:51 58 minutes, 51 seconds Thank you. On behalf of Mutil Financial Service Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.