Polycab India Ltd — Q4 FY26

Polycab India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TJ29cxcJRoI Published: 7 days ago

0:00 Ladies and gentlemen, good day and welcome to the Polycap India Limited Q4 FY26 earnings conference call. As a 0:09 9 seconds reminder, all participant lines will be involved and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:26 26 seconds it at stone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Mian Maru, 0:34 34 seconds Chief Financial Officer, Polycap India Limited. Thank you and over to you, sir. 0:48 48 seconds You're you're unmuted. Please go ahead. 0:53 53 seconds Uh I'll start again. Good afternoon everyone and thank you for joining us. I hope all of you are staying healthy and 1:01 1 minute, 1 second safe. I am Nant Maru CFO at Polycap India Limited. On this call, we shall 1:08 1 minute, 8 seconds discuss the Q426 results which were approved in the board meeting held earlier today. We will be referring to 1:16 1 minute, 16 seconds the earnings presentation, financial results and financial statements which are available on the stock exchanges as 1:24 1 minute, 24 seconds well as on the investor relations page of our website. 1:29 1 minute, 29 seconds Joining me today from the management team will be head strategy and investor relations Mr. Susan Yardik. 1:39 1 minute, 39 seconds Uh first of all let me just say that despite the current macroeconomic 1:46 1 minute, 46 seconds environment the company has delivered a strong performance recording the highest quarterly revenue in its history. The 1:55 1 minute, 55 seconds demand sentiment to an extent was impacted by geopolitical developments in the Middle East. But our team executed 2:04 2 minutes, 4 seconds with agility and resilience enabling us to sustain an industry-leading performance. 2:12 2 minutes, 12 seconds This outcome reflects the strength of our operating model and disciplined execution. 2:19 2 minutes, 19 seconds The wires and cables business delivered robust growth supported by healthy demand and execution while the FMG 2:26 2 minutes, 26 seconds segment continued to build momentum through improved product mix and expanded market reach 2:35 2 minutes, 35 seconds across the organization. Our focus remains on execution excellence, translating strategy into outcomes and 2:43 2 minutes, 43 seconds strengthening the foundation for long-term growth. Our priorities remain very clear. Our sustaining growth 2:52 2 minutes, 52 seconds momentum, strengthening our competitive positioning and continuing to invest in innovation, talent and capabilities. 3:01 3 minutes, 1 second At the same time, we all know that the global macroeconomic landscape has undergone a dramatic transformation 3:09 3 minutes, 9 seconds since our last earnings call. The outbreak of the conflict between the US, Israel, and Iran towards the end of 3:18 3 minutes, 18 seconds February 26 has been the single most consequential macro development of the 3:24 3 minutes, 24 seconds quarter, sending shock waves across the energy markets, currencies, equity indexes, and central bank policy frameworks. 3:34 3 minutes, 34 seconds Crude oil prices have risen very sharply with print now hovering around $100 per barrel while disruptions in the straight 3:43 3 minutes, 43 seconds of forward have intensified the supply concern. 3:47 3 minutes, 47 seconds This has led to renewed inflationary pressure and a sharp rricing in global bond yields. 3:54 3 minutes, 54 seconds Major central banks which had been on a cautious easing path through much of 2026 4:02 4 minutes, 2 seconds have now firmly pivoted towards a caution and in several cases also towards tightening. The US Fed held 4:11 4 minutes, 11 seconds rates at 3.5 to 3.75% at its March meeting revising the inflation projections 4:18 4 minutes, 18 seconds upwards and flagging significant uncertainty. 4:22 4 minutes, 22 seconds The Bank of England also held at 3.75% with markets now pricing two rate hikes 4:28 4 minutes, 28 seconds this year. The ECB maintain rate at 2% but revised its 4:36 4 minutes, 36 seconds 2026 inflation projection sharply upward to 2.6% from 1.9%. 4:45 4 minutes, 45 seconds And also cutting the growth for that. 4:47 4 minutes, 47 seconds The Bank of Japan which had hiked in December 2025 held in March but faces a 4:54 4 minutes, 54 seconds 70% market implied probability of a further hike in the era of coordinated global easing has also come to an end. 5:06 5 minutes, 6 seconds India demonstrated strong underlying momentum through most of the year though Q4 brought its own 5:13 5 minutes, 13 seconds set of pressures. India's fullear FY26 GDP growth is projected at approximately 7.6%. 5:22 5 minutes, 22 seconds The fastest pace in the recent years and the fourth consecutive year, India holds the position of the world's fastest 5:29 5 minutes, 29 seconds growing major economic. The quarterly trajectory through the year has been 5:35 5 minutes, 35 seconds impressive. Q1 at 7.8% Q2 accelerating to 8.4% 4% a sixth quarter high while 5:44 5 minutes, 44 seconds manufacturing and services both contributing strongly. Even Q3 held at a healthy 7.8% underscoring the broadbased nature of the recovery. 5:56 5 minutes, 56 seconds High frequency indicators through Q4 however are beginning to signal some moderation. 6:03 6 minutes, 3 seconds Air passenger traffic, port cargo volumes and e-way generation have shown softness in the January to March period. 6:13 6 minutes, 13 seconds However, on the opposite side, the consumption environment has been encouraging. 6:19 6 minutes, 19 seconds Credit growth has sustained doubledigit momentum with bank credit continuing to expand at healthy level to March 2026. 6:29 6 minutes, 29 seconds The government's capital expenditure has largely remained on track, spending about 86% of the revised budget 6:36 6 minutes, 36 seconds estimates since February 2026, providing a steady demand and cut for infrastructure and allied sectors. 6:45 6 minutes, 45 seconds Investment activity has been has seen gathered momentum during the year with rising capacity utilization and 6:53 6 minutes, 53 seconds improving order pipelines signal that the private capex triangle is gradually broadening. 7:01 7 minutes, 1 second The real estate sector has maintained healthy momentum with launches and sales across major cities tracking well encouragingly for most of FY26. 7:15 7 minutes, 15 seconds This growth was accompanied by strikingly benign inflation. 7:19 7 minutes, 19 seconds Headline CPI reached an all-time low in October 2025 supported by easing food 7:25 7 minutes, 25 seconds prices and contained energy costs. March 2026 CPI has come at 3.4% 7:34 7 minutes, 34 seconds yearonear still comfortably below the RBI's target rate of 4%. 7:41 7 minutes, 41 seconds Core CPI X food and fuel remains stable suggesting that underlying price pressures within the domestic economy 7:50 7 minutes, 50 seconds remain well and fair. This rare combination of strong growth and soft centration is a genuine macroeconomic 7:58 7 minutes, 58 seconds achievement for India and reflects the maturity speed of its policy framework. 8:05 8 minutes, 5 seconds This variable backdrop enabled the RBI to deliver accumulative 125 basis points of rate cuts to the year its most 8:14 8 minutes, 14 seconds aggressive easing title in the recent years. Lower borrowing costs have meaningfully supported household 8:21 8 minutes, 21 seconds consumption, retail credit and investment demand. The transmission of these cuts into lending rates have 8:29 8 minutes, 29 seconds progressively improved providing tangible relief to both consumers and businesses. 8:36 8 minutes, 36 seconds India's foreign exchange reserves while moderating from their peak remain still robust at approximately 682 billion 8:44 8 minutes, 44 seconds equivalent to over 11 months of import cover providing a sustaining substantial buffer against external volatility. 8:54 8 minutes, 54 seconds Domestic institutional investors have played a critical stabilizing role in the equity market absorbing the 9:03 9 minutes, 3 seconds significant FBI outflow and demonstrating the growing depth and maturity of India's capital market. 9:12 9 minutes, 12 seconds That said, Q4 has introduced headwinds that warrant careful monitoring. The sharp rise in crude oil prices and 9:20 9 minutes, 20 seconds depreciation of the Indian rupee which hit a record low of 95 will exert upward 9:26 9 minutes, 26 seconds pressure on inflation in the quarters ahead. CPI is also expected to edge higher and the RBI is likely to remain 9:36 9 minutes, 36 seconds on an extended pause. High frequency indicators through January to March 2026 reflect some moderation in the momentum. 9:47 9 minutes, 47 seconds Uh though diesel consumption, manufacturing output and consumer sentiments have continued to hold up. 9:54 9 minutes, 54 seconds Overall India structural foundation a resilient domestic demand base a maturing policy framework a deepening 10:03 10 minutes, 3 seconds financial system and an expanding manufacturing sector remains firmly intact 10:10 10 minutes, 10 seconds the external environment is more challenging than it was a couple of years ago but India's relative position 10:17 10 minutes, 17 seconds in the global growth landscape is arguably stronger than ever we remain confident in the medium-term 10:25 10 minutes, 25 seconds trajectory of the Indian economy and the robust demand environment it continues to provide for our business. I 10:35 10 minutes, 35 seconds would now like to hand over to Shashan to take you through the financial performance for the quarter and the financial year. Thank you. For the 10:44 10 minutes, 44 seconds quarter ended March 31st, 2026, we are pleased to report a strong performance with consolidated revenue growing 27% 10:53 10 minutes, 53 seconds yearonear driven by robust momentum in both cables and wires as well as FMG segments. EITA for the quarter increased 11:02 11 minutes, 2 seconds by 13% yearonear with margins at 13.1% despite multiple industry headwinds and 11:10 11 minutes, 10 seconds softer trade sentiment amid the ongoing Middle East escalation. 11:14 11 minutes, 14 seconds At the profit level, the company delivered its highest ever quarterly pack of rupees 7.9 billion, reflecting a 11:21 11 minutes, 21 seconds growth of 7% yearonear. Pat margins for the quarter stood at 8.9%. 11:29 11 minutes, 29 seconds Finance costs for the quarter was rupees 746 million while other income stood at rupees 604 million. 11:39 11 minutes, 39 seconds For a more detailed breakdown of these items, I would encourage you to refer to slide number 28 of the presentation. 11:47 11 minutes, 47 seconds We continue to maintain a strong balance sheet with a net cash position of rupees 41.9 billion. Our working capital cycle 11:55 11 minutes, 55 seconds has improved to 25 days in quarter 4 primarily due to temporary increase in payable days arising from use of letter of credit for raw material procurement. 12:05 12 minutes, 5 seconds On a normalized basis, we expect the working capital cycle to revert to our steady state range of 45 to 50 days. 12:13 12 minutes, 13 seconds Capital expenditure for the quarter stood at rupees 3.9 billion taking the total capex for full 12:21 12 minutes, 21 seconds financial year to approximately 14.8 billion rupees and this is very much in line with the project spring frame guidance. 12:29 12 minutes, 29 seconds Turning to our fullear performance, FYI26 has been a landmark year for the company with record high revenue. AITA 12:37 12 minutes, 37 seconds and PAT revenue crossed rupees 285 billion milestone growing 29% yearonear. 12:45 12 minutes, 45 seconds Evicta grew faster than revenue increasing by 35% yearonear with margins expanding to 13.9%. 12:53 12 minutes, 53 seconds PAT rose by 32% year-onear surpassing rupees 27 billion with PAT margins at 9.4%. 13:02 13 minutes, 2 seconds This strong performance underscores our financial strength and reinforces our position as the most profitable company in the electrical industry for the 13:10 13 minutes, 10 seconds fourth consecutive year. Additionally, we have retained our position as the largest company in the Indian electrical 13:18 13 minutes, 18 seconds industry by revenue for the second consecutive year. an important milestone for the organization. 13:25 13 minutes, 25 seconds Moving on to slide number five, we are pleased to report combined market share gains, continued market share 13:33 13 minutes, 33 seconds gains even on a higher base. Our domestic wire and cable organized market share has now increased to 30 to 31%. up 13:43 13 minutes, 43 seconds from 18 to 19% in financial year 2019 and this is an improvement of approximately 300 to 400 basis points 13:50 13 minutes, 50 seconds over FY25 levels of market share of 26 or 27%. 13:56 13 minutes, 56 seconds This consistent gain in market share reflects the strength of our execution under project spring and validates our 14:03 14 minutes, 3 seconds long-term strategy of investing in brand distribution and manufacturing scale. 14:09 14 minutes, 9 seconds Importantly, these games are not cyclical but very much structural in nature driven by a shift towards 14:16 14 minutes, 16 seconds organized players, increasing preference for quality and compliance and our ability to serve customers reliably across WV. Our expanding distribution 14:26 14 minutes, 26 seconds network, deeper channel engagement, and continued focus on premiumization has enabled us to capture incremental demand 14:33 14 minutes, 33 seconds across both channel and institutional segments. At the same time, our scale advantages and backward integration 14:40 14 minutes, 40 seconds continue to support competitive positioning allowing us to grow ahead of the industry. Even in a relatively 14:47 14 minutes, 47 seconds volatile demand environment, our ability to gain market share highlights the resilience of our business model and the trust we have built with our customers and the partners. 14:58 14 minutes, 58 seconds More broadly, this momentum in market share is a key pillar of our growth strategy and gives us confidence in sustaining industryleading growth over near to medium-term. 15:09 15 minutes, 9 seconds FY26 also marked an important inflection point in capital investment. For the first time in our history, annual capeex 15:17 15 minutes, 17 seconds exceeded rupees 14.5 billion, underscoring our long-term commitment to growth in line with project spring. We 15:24 15 minutes, 24 seconds remain on track to execute our planned capeex program of rupes 60 to 80 billion over the next 5 years which will further 15:32 15 minutes, 32 seconds enhance our capabilities scale and innovation. 15:36 15 minutes, 36 seconds We have also strengthened our balance sheet with net cash increasing to rupes 41.9 billion reflecting disciplined cash 15:43 15 minutes, 43 seconds flow management. In line with our capital allocation strategy, we have proposed a dividend of rupees 47 per 15:50 15 minutes, 50 seconds share resulting in a payout ratio of 27.2%. 15:56 15 minutes, 56 seconds This represents a step forward towards our project spring goal of achieving a 30% payout ratio by financial year 2030. 16:04 16 minutes, 4 seconds Now let's move to slide number nine for a quick update on the wires and cables business. 16:11 16 minutes, 11 seconds The wires and cable segment delivered a strong 30% yearon-year growth during the quarter. Within this quarter, the 16:19 16 minutes, 19 seconds domestic cables business recorded an impressive 30% year-on-year growth supported by resilient execution despite a challenging operating environment. 16:30 16 minutes, 30 seconds Volume growth for the quarter remained in the low single digits as the industry faced multiple headwinds including temporary halt in construction 16:37 16 minutes, 37 seconds activities across parts of west and north due to pollution related restrictions as well as softer demand sentiment impacted by the ongoing mig 16:46 16 minutes, 46 seconds escalation affecting both primary and secondary sales. Notably, cables outpaced wires in terms of growth for 16:53 16 minutes, 53 seconds this quarter, while institutional sales moved faster than channel sales. From a regional standpoint, the west region led 17:00 17 minutes the performance followed by south, north and east, underscoring the strength and breadth of our pan India presence. As 17:08 17 minutes, 8 seconds highlighted on slide 11, our products continue to play a critical role in nation building with strong participation across high growth sectors 17:16 17 minutes, 16 seconds such as renewable energy, metro range, data centers, and manufacturing. These segments remain key structural drivers 17:24 17 minutes, 24 seconds for sustained demand in the wireless cable business. 17:27 17 minutes, 27 seconds Our international business delivered robust performance, growing 18% yearonear and contributing 4.4% 4% of 17:35 17 minutes, 35 seconds consolidated revenue even amid the escalation in the Middle East that impacted sales during the quarter. We remain confident in the long-term 17:43 17 minutes, 43 seconds outlook with a healthy order book and a supportive demand trend. We expect a strong recovery and a strong growth 17:50 17 minutes, 50 seconds momentum going forward. I would like to highlight that we have significantly expanded our global footprint to 94 17:57 17 minutes, 57 seconds countries up from 48 countries in financial year 2019 reflecting our increasing global presence. 18:04 18 minutes, 4 seconds Additionally, we have reestablished our distribution network in the United States, which we believe will enhance our reach and further strengthen our export business over time. 18:15 18 minutes, 15 seconds EBIT margins for the wires and cable business stood at 13.1%. 18:19 18 minutes, 19 seconds As mentioned earlier, margins were slightly impacted by a few factors. 18:24 18 minutes, 24 seconds Firstly, there was an unfavorable mix in business with the international segment, a high margin accredititive business being affected by the Middle East 18:33 18 minutes, 33 seconds situation. Secondly, the higher contribution from institutional sales compared to channel sales had a moderating impact on the margins. 18:40 18 minutes, 40 seconds Lastly, softer trade sentiment in March, which is a key month for quarter 4 sales, impacted operating leverage for 18:47 18 minutes, 47 seconds the quarter. Moving to slide number 13 for an update on the FMEG business. 18:54 18 minutes, 54 seconds The FMG segment delivered an exceptional performance for this quarter, registering a strong 47% year-on-year growth with broad-based contributions 19:03 19 minutes, 3 seconds across all product categories. This marks the ninth consecutive quarter of outperformance versus industry benchmarks, reaffirming the strength of 19:12 19 minutes, 12 seconds our strategy and execution in this high potential segment. 19:17 19 minutes, 17 seconds Let me walk you through the key drivers of this growth. Starting with SN. 19:22 19 minutes, 22 seconds Despite the delayed summer onset in certain regions and temporary channel inventory adjustments following changes in BE norms, the segment delivered 19:31 19 minutes, 31 seconds growth. This performance was driven by our continued focus on premiumization, expanding our energy efficient product 19:37 19 minutes, 37 seconds range and channel execution. As a result, premium plans now contribute approximately 25% of financial year 26 19:46 19 minutes, 46 seconds segment revenues. In lighting and luminaries, we sustained growth despite the deflationary pricing environment 19:53 19 minutes, 53 seconds supported by both volume and value expansion. The momentum was led by our growing premium portfolio which now 20:00 20 minutes accounts for 35% of segment revenues as energy efficient and high quality lighting solutions continue to see strong customer acceptance across 20:08 20 minutes, 8 seconds markets. Our solar products business was a standout performer, delivering two-fold year-on-year growth and 20:16 20 minutes, 16 seconds emerging as the largest category within the SMG portfolio. This growth is underpinned by strong structural tailwinds including government 20:23 20 minutes, 23 seconds initiatives, state level subsidiary programs and rising consumer adoption of renewable energy solutions. Other categories including switch gears, 20:32 20 minutes, 32 seconds conduit pipes and fittings and switches also recorded healthy growth. This was driven by sustained momentum in the real estate and construction sectors along 20:41 20 minutes, 41 seconds with our continued focus on portfolio expansion and deeper market penetration. 20:47 20 minutes, 47 seconds Importantly, the FME business which turned profitable in quarter 4 of last year has continued to deliver profitability while we invest in talent product development and brand building. 20:58 20 minutes, 58 seconds EIT margins for the quarter stood at 4.1% in line with our project spring trajectory of achieving 8 to 10% AITA margins by financial year 2013. 21:09 21 minutes, 9 seconds Looking ahead, we remain confident in the long-term growth potential of the SMG segment. We are well aligned with our project spring objectives of 21:16 21 minutes, 16 seconds delivering 1.5x to 2x of industry growth while steadily improving our margins. 21:22 21 minutes, 22 seconds Our continued investments in distribution, expansion, product innovation, and brand equity will be key enablers in unlocking sustained value in this business. Moving on to slide 15. 21:33 21 minutes, 33 seconds This slide provides an update on our EPC business. 21:38 21 minutes, 38 seconds During quarter 4 FY26, EPC revenues marginally declined by 15% yearonear 21:45 21 minutes, 45 seconds reaching rupes 5,098 million majorly due to project execution cycle. Segment profitability is stood at 21:54 21 minutes, 54 seconds rupes 386 million translating to a margin of 7.6%. 21:59 21 minutes, 59 seconds Looking ahead, the annual sustainable operating margin is expected to remain in the mid to high single digits over mid to long term. Moving on to slide 17 22:08 22 minutes, 8 seconds which provides an update on our project spring until spring. We continue to make steady progress in line with our financial year 22:17 22 minutes, 17 seconds 2030 strategic objectives within the wires and cable segment growth since the launch of this program has consistently 22:24 22 minutes, 24 seconds exceeded our guidance tracking at 1.5x to 2x of the industry growth with margins remaining far above the guided 22:31 22 minutes, 31 seconds range. While export contribution appears lower on a relative basis, exports on an absolute basis have continued to grow 22:39 22 minutes, 39 seconds during financial year 26. The relative contribution decline is largely due to a stronger domestic growth which has expanded the overall revenue base. We 22:47 22 minutes, 47 seconds remain firm on track to achieve a target of greater than 10% contribution from exports by financial year 2030. In FMEG, 22:56 22 minutes, 56 seconds we are also progressing well consistently, outpacing industry growth in line with our target of growing at 1.5 SQ of market rate while maintaining 23:05 23 minutes, 5 seconds a clear focus on margin expansion and progressing towards our AITA margin goal of 8 to 10% by FY 2030. 23:14 23 minutes, 14 seconds During FI26, we incurred capex of rupes 14.8 8 billion in line with our annual 23:21 23 minutes, 21 seconds guidance of rupes 12 to 16 billion peranom. We also increased our dividend payout to approximately 27.2% up from 23:29 23 minutes, 29 seconds 26.3% last year as we move steadily towards a stated objective of exceeding 30% by FI 2030. Overall, we believe we 23:39 23 minutes, 39 seconds have made a strong start to project spring and remain confident in our ability to deliver on our long-term strategic and financial goals. Moving on 23:47 23 minutes, 47 seconds to the next few slides which provide an update on the ESG commitments. During the year, we have taken several 23:54 23 minutes, 54 seconds important steps to strengthen our ESG framework. These include conducting a climate risk assessment, undertaking a 24:01 24 minutes, 1 second double material materiality assessment and aligning our internal policies more closely with ESG metrics and global best 24:09 24 minutes, 9 seconds practices. Last year we had outlined 10 measurable ESD goals across the three pillars of environment, social and 24:16 24 minutes, 16 seconds governance. These goals span key areas such as carbon emissions, circular economy, waste management, product 24:24 24 minutes, 24 seconds stewardship, water management, diversity and inclusion, employee well-being, community engagement, supply chain responsibility 24:32 24 minutes, 32 seconds and corporate governance including ethics and integrity. We have made meaningful progress across these areas during the year as detailed on slide 21. 24:42 24 minutes, 42 seconds We recognize that this is a long-term journey. However, with the right intent, a strong foundation and a deeply embedded culture of responsibility, we 24:50 24 minutes, 50 seconds are confident that Polycap will not only keep pace with evolving global expectations, but also play a role in shaping this. Thank you for your 24:58 24 minutes, 58 seconds continued support and confidence in our journey. 25:02 25 minutes, 2 seconds That concludes our update for the quarter and we will now be open uh to take your questions. Thank you. 25:10 25 minutes, 10 seconds Thank you very much. We will now begin with the question and answer session. 25:14 25 minutes, 14 seconds Anyone who wishes to ask a question may press star and then one on the deathstone teleport. If you wish to 25:22 25 minutes, 22 seconds remove yourself from the question queue, you may press star and then two. 25:27 25 minutes, 27 seconds Participants, you are requested to use handsets while asking a question. 25:32 25 minutes, 32 seconds Ladies and gentlemen, we will wait for a moment while the question Q. 25:40 25 minutes, 40 seconds A reminder to all the participants. You may press star and then one to ask a question. 25:51 25 minutes, 51 seconds We will take the first question from the line of Sonadi Salon from Jeffrey. Please go ahead. So thank 25:59 25 minutes, 59 seconds you for the opportunity and congratulations on a great set of numbers uh despite the Middle East disruption. So my first question is of 26:08 26 minutes, 8 seconds the cables and wire sales growth of 30% if we could break up on the approximate growth volume growth in cables and wires 26:17 26 minutes, 17 seconds and also the price hikes that we have taken from Jan till now in different branches. 26:25 26 minutes, 25 seconds So Sari uh thank you for this question. 26:27 26 minutes, 27 seconds So firstly on the growth so revenue growth like you already mentioned has been 30% for the quarter and uh if I if 26:34 26 minutes, 34 seconds I speak of volumes uh it's been combined volume of low single digit for both cable and wire put together. Cable it 26:41 26 minutes, 41 seconds has of course outpaced wires in terms of uh price hikes we've taken approximately 18 to 19% price hike cumulatively from Jan to uh March. 26:52 26 minutes, 52 seconds Understood. That's helpful. So secondly, how is the demand situation now? As we understand, it was severely impacted in 27:00 27 minutes March. March is a key month for your quarter, but since then there has been some normalization of demand across sectors is what we understand. So how is 27:08 27 minutes, 8 seconds the demand situation right now domestically? 27:13 27 minutes, 13 seconds So um just want to also highlight uh that Q4 last year for us was very very strong, right? So at the back of that 27:22 27 minutes, 22 seconds base we've been able to deliver some volume growth and of course uh you know revenue growth of 31 odd%. So we have definitely seen some moderation in 27:30 27 minutes, 30 seconds demand primarily due to so much of volatility and decreased escalation. But if you if you look structurally the the demand domestic demand is very robust. 27:39 27 minutes, 39 seconds Uh if you look at power capacity additions in the last financial year itself has been around 55 56 gawatt which is almost double of what happened 27:46 27 minutes, 46 seconds in financial year 25. Right? So and this is going to continue. If you look at the union budget which was announced in February a very strong 12.2 lakh cr 27:56 27 minutes, 56 seconds budget announced which again uh if you add private capex to that uh we see today around 36 37 lakh cr to be 28:03 28 minutes, 3 seconds invested in financial year 27. Now majority of these investment or rather 57% of these investments are going into areas which are going to convert into 28:12 28 minutes, 12 seconds strong demand for cable and wire sectors like utilities, metal, semiconductors, oil and gas, manufacturing, logistics 28:20 28 minutes, 20 seconds all of this is going to convert strong demand for cable and wire. So and um also there are new demand pockets which 28:27 28 minutes, 27 seconds are yet to completely you know bloom or we are yet to fully exploit the opportunity there. areas like defense, areas like data centers which are yet to 28:35 28 minutes, 35 seconds pick up in a big way. So I think one comforting thing is that uh you know in in our industry the demand doesn't extinguish so it can only differ by one 28:44 28 minutes, 44 seconds week two weeks here and there but if you look at 12 months period coming forward I think not just the next 12 month but I think 24 36 months are going to be very promising for our sector. 28:55 28 minutes, 55 seconds Understood. So and lastly on exports we do understand that on an absolute basis it's been increasing and we do 29:02 29 minutes, 2 seconds understand that Middle East was a bit of a hiccup in the export story but uh from here on do you see exports resuming over 29:11 29 minutes, 11 seconds the coming quarters and which sectors uh would you be the most optimistic in exports? 29:18 29 minutes, 18 seconds So Sonali uh exports u is actually going to be a big lever of our growth going forward. So uh Middle East I would just 29:26 29 minutes, 26 seconds like to you know call out the split. So in in full year uh last financial year we the Middle East contributed around uh 29:33 29 minutes, 33 seconds 16% of our export stop line. Now of course that would have been slightly more had we you know had the normal 29:40 29 minutes, 40 seconds march but it got impacted uh going forward also and also in continuing uh the last few years of our export growth 29:49 29 minutes, 49 seconds the power sector uh we continue to drive the strong growth right if you look at EU if you look at US all of these uh you 29:57 29 minutes, 57 seconds know regions have great infrastructure which is way beyond the average life they are 50 55 years 60 years old so all 30:05 30 minutes, 5 seconds of these need modification and considering our scale our approvals our deep penetration in these geographies we are at full position to capture the 30:14 30 minutes, 14 seconds growth right and even the tariff situation has more or less uh you know settled or we can say it's now you know 30:21 30 minutes, 21 seconds beyond us so I think now we are at much more competitive and uh position to leverage this growth and uh I'll just 30:29 30 minutes, 29 seconds you know I think uh add to that that in in US we've started reestablish our distribution network so which again you know is the largest market uh for 30:37 30 minutes, 37 seconds export. So I think there again along with the tailwinds that we are seeing in the industry I think all of this put together we should have very sizable 30:45 30 minutes, 45 seconds business uh growth in exports plus the Middle East which is currently severely impacted we believe that it's a matter 30:52 30 minutes, 52 seconds of time where uh you know that demand will come in a bigger way because lot of reestablishment will need to be done there. Is there any outlook you would 31:01 31 minutes, 1 second like us uh like to give at this point in time for F27 for the business as a whole? 31:07 31 minutes, 7 seconds So see u like I mentioned today uh in this financial year we are somewhere around 4 and a half or percent export contribution to overall topline and we 31:16 31 minutes, 16 seconds have to get to 10% by FI30. So we are definitely inching towards that that figure and of course we are not limiting 31:24 31 minutes, 24 seconds our domestic growth. So domestic growth is also growing at a very fast pace. uh but at the same time I think now that the trade barriers seem to be uh much 31:32 31 minutes, 32 seconds more favorable uh and uh I think then we should continue to grow beyond 5% and difficult to give a firm number because these are more institutional sales in 31:41 31 minutes, 41 seconds nature but it will definitely be higher than where we are today uh not just for exports overall business 31:47 31 minutes, 47 seconds domestic as well. So uh again uh Sally if you refer the project spring guidance uh which also I referred during my uh 31:55 31 minutes, 55 seconds speech is that we've committed in cables and wires we will grow at 1.5x of market growth right so if market is growing say 32:03 32 minutes, 3 seconds for example 10 12% we'll continue to deliver 1.5x of that growth and uh that I think we've consistently been delivering uh in the last few years as 32:12 32 minutes, 12 seconds well so we can definitely account for that kind of a growth from us all right thank you so much sir and all the to the team. 32:24 32 minutes, 24 seconds Thank you. The next question is from the Lionus Puni from HSP. Please go ahead. 32:32 32 minutes, 32 seconds Yeah, thank you so much and congratulations on good numbers. Uh first, you know, if you can quantify what sort of impact you had in March on 32:40 32 minutes, 40 seconds account of, you know, these Middle East related disruptions. to quantify. 32:48 32 minutes, 48 seconds See, we had uh you know low singledigit cable and wire volume growth. Typically these quarter four is highest best for 32:57 32 minutes, 57 seconds the industry not just for polycap. Uh so obviously looking at higher base of last year uh we were able to still deliver 33:05 33 minutes, 5 seconds some growth but we were expecting much better growth. If you look at uh private manufacturing industries who use gas as 33:12 33 minutes, 12 seconds a feed stock, they did not have visibility of supply beyond 3 days, 4 days, 5 days. Their supplies, their inputs were completely uh rationed by 33:21 33 minutes, 21 seconds government. Uh that definitely impacted uh the the demand from private sector. 33:26 33 minutes, 26 seconds The if you notice our our business model is such that 90% of our business happens through channel. Now the trade sentiment 33:34 33 minutes, 34 seconds itself with all the raw material prices going up even if you look at PVC ples went up by 60 to 80% in the first 33:41 33 minutes, 41 seconds fornight of March right so all of this going up plus the trade sentiment of west Asia uh there was definitely some 33:48 33 minutes, 48 seconds impact in terms of lifting from our uh distri which is our primary sale primarily because the secondary sale was not moving at the pace at which we 33:55 33 minutes, 55 seconds anticipate in the month of March so broadly that's the outlook I think and that's very uh reflective of the industry also 34:02 34 minutes, 2 seconds uh and I think it's very difficult to quantify that but definitely our volume growth aspirations were higher uh in March typically in line with you know 34:11 34 minutes, 11 seconds the industry typically March is the best quarter best month and best quarter Q4 right and even on the margin side you said you had a higher share of 34:19 34 minutes, 19 seconds institutional sales than usual and today you you said you know it's about 90% of business happens to channel what would 34:27 34 minutes, 27 seconds that number have been for last quarter So in last quarter uh punit what happened was uh institutional sales were 34:37 34 minutes, 37 seconds higher by about two to three percentage points compared to channel right and our our margins usually in channel are 3 to 34:45 34 minutes, 45 seconds four basis points 3 to four percentage points higher compared to institutional which is you know you have to bid those tenders and uh you know win on L1 so our 34:53 34 minutes, 53 seconds margins are better on channel and if institutional mix grows then it moderates our margins clearly Yes, understood. And if you can 35:02 35 minutes, 2 seconds also talk about what is the status on capacity utilization now. 35:06 35 minutes, 6 seconds So see u uh here is where exactly you know you'll see a here a same number every time it's mid70s and uh I think 75 35:15 35 minutes, 15 seconds 76% utilization and why is that because we've continued to expand our capacity right as soon as we reach 70 75% 35:23 35 minutes, 23 seconds utilization considering our AOP we we invest far ahead of time. So if you look at this year again financial year 26 35:30 35 minutes, 30 seconds we've invested almost 1,500 cr right uh massive number uh and we've invested that so again this capacity will get 35:38 35 minutes, 38 seconds added when we discuss next time we'll possibly again be sitting at somewhere around 70 80 right so I think that's where we are we are continuing to expand 35:46 35 minutes, 46 seconds uh again in line with our project spring guidance of 6,000 to 8,000 crx by grand 2030 and what is the peak utilization you can 35:55 35 minutes, 55 seconds actually reach See uh practically I think we've uh at times we have reached you know 90 90 36:03 36 minutes, 3 seconds early 90s but uh the the standard percentages always remain around 80 85 you know you don't expect to operate at 36:11 36 minutes, 11 seconds 90 plus%. So 7075 is there and we still have capacity you know had there been demand we would have possibly supplied uh more. 36:21 36 minutes, 21 seconds Understood. That's And lastly, if I may, uh you know, you have a significant amount of cash. I know there is a nice capex plan, but you can fund it out of your own uh internal approval as well. 36:32 36 minutes, 32 seconds Is there any uh use of cash that you have in mind? Uh acquisition or or any new business that you want to enter? 36:41 36 minutes, 41 seconds So, uh see currently we are continuing to focus on these two things which you rightly pointed out. One is pumping cash into our capex uh from internal 36:50 36 minutes, 50 seconds approvals. Secondly is increasing the dividend payout again which is already laid out in project spring guidance. 36:55 36 minutes, 55 seconds This year again we've increased it and reached payout ratio of 27.2%. Right? So these two remain the focus. Of course we keep evaluating certain M&A proposals 37:04 37 minutes, 4 seconds opportunities inside India and outside of India. So if uh you know something really aligns with our with our strategy definitely we will you know like to uh 37:12 37 minutes, 12 seconds invest in that. So far there is nothing that we can see in the near to midterm. 37:18 37 minutes, 18 seconds Understood. That's very useful. Thank you so much and all the best. Thank you. 37:23 37 minutes, 23 seconds Thank you. We will take the next question from the line of Kay Pandya from ICC Predential Life Insurance Company Limited. Please go ahead. 37:33 37 minutes, 33 seconds Thank you. Uh the question is on the uh EDIT segment margin for the cables or 37:39 37 minutes, 39 seconds overall EIT margin. uh uh basically it is within the guided range but in the backdrop of uh say lower export mix uh 37:50 37 minutes, 50 seconds or uh uh primary secondary sales and stocking uh where do you see it settling say in next two three quarters how 37:58 37 minutes, 58 seconds should we think of it I think in last uh some of the interactions you have mentioned uh that channel stocking has happened and since now uh copper prices 38:07 38 minutes, 7 seconds are more or less where they are for last 3 four months uh should we see some uh deceleration in 38:14 38 minutes, 14 seconds stocking? So considering all this, how should we think of profitability as well as uh primary sales growth? 38:23 38 minutes, 23 seconds Okay. Um um so on primary sales growth, right, I mean I'll again refer you to the guidance we've given given in 38:31 38 minutes, 31 seconds project spring and and I'm why I'm asking you to refer that again because that very calibrated thought through uh guidance, right? So if market grows we 38:40 38 minutes, 40 seconds will deliver 1.5x of that growth right so with that we should continue to expect if we are expecting 12% uh market 38:47 38 minutes, 47 seconds growth then we should deliver 18% and plus right so that will continue in terms of uh uh price volatility yeah we 38:54 38 minutes, 54 seconds we we don't have any guidance on copper price but uh whatever is uh the price the pattern of the industry that we pass 39:02 39 minutes, 2 seconds through that price to our customer and so far this uh that is how it has happened so again That's a very calibrated guidance which we've given 39:10 39 minutes, 10 seconds that over long term we should expect 11 to 13% AITA margin and in the near to midterm we may expect 12 to 14% AITA and 39:18 39 minutes, 18 seconds we'll continue to deliver that kind of uh uh margins but in the near term are you seeing any 39:26 39 minutes, 26 seconds challenge to primary demand or secondary demand? 39:31 39 minutes, 31 seconds No, I think uh like I mentioned earlier uh in in our industry if a capeex is is decided and especially the stage at 39:39 39 minutes, 39 seconds which India is uh you know if you look at certain announcements by Indian government where they are pushing the pedal in terms of increasing renewable 39:46 39 minutes, 46 seconds generation capacity increasing the transmission and distribution u uh uh sector a lot of capex is being pumped so 39:56 39 minutes, 56 seconds the demand can only differ by one week two week 3 weeks it cannot extinguish Right. So if you look at full 12 months period coming ahead, I think the demand 40:04 40 minutes, 4 seconds forecast is very robust and strong. And again, if you look at real estate sector, if you look at last three years and we've we've seen some data of top 40:13 40 minutes, 13 seconds eight cities, uh we've seen around three and a half 3.6 lakh units launched and sold same amount of amount got sold. 40:21 40 minutes, 21 seconds Right? So we've seen in the first two months of this calendar year also about 8.9 lakh units have been launched. 40:28 40 minutes, 28 seconds Right? So I think it's continuing the growth momentum is continuing. In fact the consumer sentiment also uh is slightly on the on the improvement side. 40:37 40 minutes, 37 seconds Uh we believe that demand not just for this year but I think next two to three years should be very robust and the prime driver will continue to meet with 40:45 40 minutes, 45 seconds the power sector. There are some new drivers which are yet to fully uh you know come to fruition which is data centers uh AIdriven uh demand the 40:55 40 minutes, 55 seconds defense EV charging cable infrastructure. All of this is going to further open up. 41:02 41 minutes, 2 seconds Understood. Uh and the second question on the exports. So you have mentioned the target uh for FI30. Uh but uh with 41:11 41 minutes, 11 seconds current disruptions uh in the Middle East uh um and opening of new geographies post probably say USA where 41:19 41 minutes, 19 seconds carries have relatively normalized. So how do you see recovery of exports in FI27? I mean uh increasing as a 41:28 41 minutes, 28 seconds percentage of sales right so uh it was difficult to give a number but I will tell you the driver 41:35 41 minutes, 35 seconds right so I think in the uh just in last 3 to four months we've reestablished our distribution network in United States right United States forms around 15 to 41:44 41 minutes, 44 seconds 20% of global export market that's the most key market followed by uh EU European Union right so we've u we've 41:52 41 minutes, 52 seconds sewn the seeds of good growth which is about to come we are Anyways, US market or North America contributed around uh 42:00 42 minutes 40% of our financial year 26 number of export right but there if we have a distribution network then of course we 42:07 42 minutes, 7 seconds are we are there to you know target higher growth right so US will continue to drive the growth we've done sizable amount of business in South America 42:16 42 minutes, 16 seconds which has also constit comprised almost 20% of our sales in financial year 2016 middle east also contributed around 15 42:24 42 minutes, 24 seconds 16 15% uh But looks like that you know in the near term we don't see maj contributing big way but the big demand drivers North America followed by EU uh 42:33 42 minutes, 33 seconds South America where we've again done significant amount of business uh I think we are very good well poised to uh you know deliver higher growth in 42:42 42 minutes, 42 seconds exports and that should actually be at a more aggressive pace because we have to you know also reach 10% of our overall supply 30 and hopefully we should get there sooner. 42:55 42 minutes, 55 seconds Uh okay. Thanks a lot. Thank you and all the best. 43:01 43 minutes, 1 second Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be 43:09 43 minutes, 9 seconds able to address all the questions in the conference call, we request you to kindly limit your questions to two per participant. If you have a follow-up question, please rejoin the queue again. 43:22 43 minutes, 22 seconds We will take the next question from the line of Patanjali from Sundalam Mutual Pant. Please go ahead. 43:29 43 minutes, 29 seconds Hi. Uh thank you for the opportunity. 43:31 43 minutes, 31 seconds Good set of numbers. Uh just a few questions. Uh firstly, in terms of capacity utilization, I think you mentioned we were around 70 odd percent. 43:40 43 minutes, 40 seconds Uh do we have any capacity coming in uh anytime soon in FI27? And uh is there a possibility that we may run out of 43:49 43 minutes, 49 seconds capacity if that's the case? If that's not the case uh thank you for asking that question. 43:57 43 minutes, 57 seconds So um I think in terms of capacity utilization we were at full year basis we were at 70 44:05 44 minutes, 5 seconds uh you know 75% kind of a utilization there is room for uh you know growth here. Plus we are adding if you look at our KEX guidance we've already pumped in 44:13 44 minutes, 13 seconds 1 1500 cr in this financial year. So that will also add to our capacity right and we are continuing to pump 1 1200 to 44:21 44 minutes, 21 seconds 1,600 cr every year adding capacity and this guidance that we've given under project spring is considering the demand 44:28 44 minutes, 28 seconds outlook that we foresee in the next four to five years right so there will be no scenario where we'll be out of uh you know capacity 44:37 44 minutes, 37 seconds got it and uh just another question uh I think one of your players was saying that uh the demand is very strong on 44:44 44 minutes, 44 seconds ground but uh they had some capacity constraint which is why they were not able to grow in terms of volumes. We on the other hand have had like a fairly 44:52 44 minutes, 52 seconds surplus capacity but why are we also facing challenges in terms of volume growth because even on a full year basis 44:59 44 minutes, 59 seconds I think our volume growth may not be uh as high if you can correct me with the number as to what our volume growth for full year was. 45:08 45 minutes, 8 seconds Sure. So see we we will not obviously follow or uh you know go by what others are saying but if you look at our numbers and uh let me start with Q3 I 45:17 45 minutes, 17 seconds think Q3 if you notice I think maybe peers had capacity constraint but we we recorded I think 40% volume growth in 45:25 45 minutes, 25 seconds both cable environment together right so that is an indication of the capacity that we already have in hand right so I 45:32 45 minutes, 32 seconds think today also if you look at our volume growth for the full year is 18% % right I think which is again industry 45:40 45 minutes, 40 seconds leading if again market has possibly grown at 11 12% we've delivered 18% volume growth alone right so value growth of course revenue growth is we 45:49 45 minutes, 49 seconds we've coined it at 30%. So firstly we are continuing to be there and if you look at our base our base is very very 45:56 45 minutes, 56 seconds high. I think the next biggest player is half our size. So at our base we are able to you know meet those volumes which we delivered last year and also 46:05 46 minutes, 5 seconds gain some you know uh further volume growth over that. So so I hope that answers you right. 46:13 46 minutes, 13 seconds Uh just a related question to that. So I think your current quarter volume numbers were very less. So any re like 46:22 46 minutes, 22 seconds uh you mentioned some of the reasons for it but uh before going into this quarter what would have been your volume target for this quarter so that I can 46:31 46 minutes, 31 seconds understand like how much of it could be attributable to some external factors which are not within your control. 46:37 46 minutes, 37 seconds So firstly there is no you know I mean at least from business standpoint I can speak that there's no volume target for quarter. I mean if you can look at 12 46:45 46 minutes, 45 seconds month period it's still understandable uh you know you don't every day you don't sell you know 1.5 or whatever is the one in target right so it it it's 46:53 46 minutes, 53 seconds ultimately an institutional B2B kind of a business it's not a FMCG inst business so if you look at fular basis like we've 47:00 47 minutes always deliver 1.5x of growth now whatever happened in March some bit of it you you can you know attribute it to some kind of a black swan event which 47:09 47 minutes, 9 seconds impacted our exports to you know large extent in middle east in domestic market also uh you know somewhat sentiments 47:16 47 minutes, 16 seconds were uh were uh disturbed and hence I think the industry also did not grow to that extent so whatever we've delivered 47:24 47 minutes, 24 seconds is again the best side of the industry growth thanks that was very helpful 47:34 47 minutes, 34 seconds thank you we will take the next question from the line of Akadani from UBS please go ahead uh hi sir thank you for the opportunity. 47:44 47 minutes, 44 seconds So if you can share status update of your EHV K6 when do you see commissioning of this capacity and how do you expect revenue pick up from this capacity? 47:55 47 minutes, 55 seconds So actually ESV is u very much on track capacity is expected to come uh on stream by end of this calendar year and 48:04 48 minutes, 4 seconds in FI28 revenues we can see some contribution from ES3 capacity because it's a tender based business and we see a ready market because uh about 50% of 48:13 48 minutes, 13 seconds domestic consumption today is coming from exports or other imports. So we believe that there's a ready uh market available. So as soon as we are on 48:21 48 minutes, 21 seconds stream and we bid I think we should be able to get revenues. So in FI28 you'll be able to see revenues from EHV. 48:28 48 minutes, 28 seconds Got it. Thank you sir. And for FI27 K6 what will be the focus areas and rel uh a separate question on that is how much 48:35 48 minutes, 35 seconds the solar business now accounts in FMG revenue. I think earlier it was more than 50% has it moved up. 48:44 48 minutes, 44 seconds So you had two sets of questions. One is uh so let me address the solar one first. So solar so primarily we don't give break up of the SEC intersegment 48:53 48 minutes, 53 seconds you know contribution in FMG but solar of course continues to be the strong driver delivering 2x of growth over last 49:00 49 minutes year and that will continue because uh of you know central and state government schemes on solar so that will that growth will continue right uh but I mean 49:09 49 minutes, 9 seconds besides that but other SMG segments have also delivered stellar performance and far ahead of industry growth in each of the respective segments. Another question. 49:18 49 minutes, 18 seconds Got it. Other was uh Apex uh focus area for Apex and FY 27. 49:25 49 minutes, 25 seconds So again um you know as per again our project spring guidance we said that whatever we'll pump around 90% of that will go into cable and wire capacity 49:33 49 minutes, 33 seconds expansion alone right uh and some 5% will go into some backward integration and another 3 to 4% may go into SMG uh 49:41 49 minutes, 41 seconds you know expansion. So I think they are very much um aligned with that and 90% will continue to go into cable and wire 49:49 49 minutes, 49 seconds expansion and largely these are all funible capacities other than EHV if you look at it cable and wire are largely funible capacity so we'll continue to expand our capacity there itself. 50:01 50 minutes, 1 second Got it. Thank you. 50:05 50 minutes, 5 seconds Thank you. We will take the next question from the line of ma from Kotek securities. Please go ahead. 50:12 50 minutes, 12 seconds Hi uh thanks for the opportunity and congrats on a strong year. Uh you mentioned volume growth was around 18% 50:19 50 minutes, 19 seconds uh for the full year. Can you split it as uh how much was the volume growth in buyers and how much was it in cables and 50:27 50 minutes, 27 seconds uh uh in cables what were the key sectors which kind of contributed to this u u to cut us back you had 50:35 50 minutes, 35 seconds mentioned that on an annual basis you would have a better picture on uh demand markets. So uh that would be helpful. Thanks. 50:44 50 minutes, 44 seconds So uh um uh so overall if you see uh in the full financial year also uh the cable's growth was slightly better than 50:51 50 minutes, 51 seconds wires and u overall like I mentioned 18% volume growth which has resulted in you 50:58 50 minutes, 58 seconds know market share gain of around 3 to 4% in this financial year alone right so and secondly on split of uh you know 51:06 51 minutes, 6 seconds demand side you're asking in terms of our supply so I think that largely if you look at 12 month basis it will 51:13 51 minutes, 13 seconds always continue to be uh you know more or less same. So where power sector alone consumes around 40 to 45% of 51:20 51 minutes, 20 seconds cables, manufacturing and private industries you know consume around 35 to 40% of cables. Right? Mobility which is 51:28 51 minutes, 28 seconds railways, roadways, highways, seapport, airports they consume around 10 12% of the cables and uh energy exploration 51:36 51 minutes, 36 seconds which is again oil and gas coal mining and all of that uh they consume around 5 6%. Balance is a niche space which is defense, EV charging infrastructure and all of that. 51:47 51 minutes, 47 seconds Got it Shashan. So just a follow up on this is that you also mentioned that uh capacity of generation in India you know 51:54 51 minutes, 54 seconds doubled last year uh and in terms of solar capacities while I understand that investments will continue the growth on a Y basis may not be as strong as what 52:03 52 minutes, 3 seconds we've seen last year right even in discoms the RDSS execution possibly was a big uh driver uh but going ahead on a 52:11 52 minutes, 11 seconds variable basis uh may kind of moderate on a high base so in that context uh How do you think industry growth will kind of u shape up? 52:23 52 minutes, 23 seconds So see um see I I look at uh you know this power especially TND industry from a relative scale. If you look at period 52:31 52 minutes, 31 seconds from 16 to 2016 to 2020 the intensity or the pace at which the actual execution is happening today is far far better. 52:40 52 minutes, 40 seconds Okay. uh if we look at uh you know that period of 15 to 20 or 20 to 25 2025 52:47 52 minutes, 47 seconds we see the transmission line execution on ground was somewhere around 15,000 circuit kilometers average right today 52:55 52 minutes, 55 seconds going forward the anticipation is it should go to 21 22,000 circuit kilometers every year now so much of 53:02 53 minutes, 2 seconds renewable capacity is is getting added all of this has also to connect with the transmission and uh you know 53:08 53 minutes, 8 seconds distribution space So even if and also one more point is that in power sector alone if the if 100 rupees is spent on 53:16 53 minutes, 16 seconds transmission and distribution the translation to cable requirement is around 15 to 20%. 53:22 53 minutes, 22 seconds Which basically indicates that any amount invested in power sector will translate into heavy demand for cable 53:29 53 minutes, 29 seconds and wire. So we believe that this is definitely going to continue even if it just moderates this will still be the intensity will be still far higher than how it has been in the past. 53:40 53 minutes, 40 seconds I'm sure I'll connect offline. Thank you. 53:47 53 minutes, 47 seconds Thank you. We will take the next question from the line of Archan Dohadi from Duwama Institutional Equity. Please go ahead. 53:58 53 minutes, 58 seconds Yeah. Uh thank you for the opportunity. 54:00 54 minutes Congratulation for a good set of numbers. Uh the first question I have uh you know um in the third quarter call 54:07 54 minutes, 7 seconds you did mention about uh you know delay in uh passing on the uh you know price inflation. Um so so that kind of uh had 54:17 54 minutes, 17 seconds some impact on the margin. Was there any such thing in the fourth quarter and or uh on the other hand was there any 54:24 54 minutes, 24 seconds inventory uh benefit inventory gain uh during the quarter which you could have realized? 54:31 54 minutes, 31 seconds other uh in the very first fortnight of January alone we were able to pass on everything so we were completely in tandem with the raw material price 54:40 54 minutes, 40 seconds throughout the quarter right so so first question answered that there is nothing that we are withholding we are completely in tandem with the u the raw 54:48 54 minutes, 48 seconds material prices we completely passed on right secondly um I think you uh asked on the 54:57 54 minutes, 57 seconds can you repeat your second question uh you know there was uh all three companies have indicated in in 55:05 55 minutes, 5 seconds their recent calls that there have been some benefit on the inventory uh you know realization front uh during the 55:12 55 minutes, 12 seconds quarter was that the case for us as well and if you could quantify other I mean um we have explained in the 55:19 55 minutes, 19 seconds past also uh the way we procure our raw materials there are never any inventory gains we don't buy uh you know on on on 55:27 55 minutes, 27 seconds spot right so we have a you know hedging mechanism in place. So we don't have any inventory gain unlike peers possibly 55:34 55 minutes, 34 seconds they uh you know might buy in spot market and sell. So when prices go up they have some kind of an advantage possibly but we are at always at a at a 55:43 55 minutes, 43 seconds position where we are able to manage within a band and thanks to the mechanisms that we have built over the years where we hedge our you know raw 55:52 55 minutes, 52 seconds material prices. So hence there is no inventory gain or loss never in our case. 55:58 55 minutes, 58 seconds And when you say we hedge uh it's for both aluminium and copper because I presume aluminium is more domestic sourcing than copper. Copper is 100% important. 56:07 56 minutes, 7 seconds So uh yes first answer is yes for both copper and aluminium and uh second is yeah I mean largely copper is imported. 56:17 56 minutes, 17 seconds Understood. Uh you know uh just a related question on that u uh you did mention the PVC prices actually kind of 56:24 56 minutes, 24 seconds doubled in the first four night. So uh I wanted to check these uh insulation uh material you know a in terms of the uh 56:33 56 minutes, 33 seconds price uh inflation or cost inflation on account of that has that been passed on is there a challenge in passing on that 56:40 56 minutes, 40 seconds and b uh uh you know in terms of the availability particularly materials like XLPA etc if you could talk a little bit 56:47 56 minutes, 47 seconds on that. So achel first thing we completely pass on all the raw material price be it aluminium copper or be it 56:54 56 minutes, 54 seconds PVC. So there has been no challenge with respect to passing on the price. Okay. 56:59 56 minutes, 59 seconds Second is not the availability of XLP and other compounds. So thanks to uh the backward integration that we have we 57:07 57 minutes, 7 seconds typically purchase only the raw resins and we do compounding inhouse. Um so thanks to our heavy inventory we are 57:15 57 minutes, 15 seconds well uh you know comfortable for possibly in the first quarter of uh coming year as well but of course uh you know all of that then depends you know 57:24 57 minutes, 24 seconds then there'll be far bigger issues to worry um you know than than production of cable and wire but I think we are very much comfortable we have good 57:30 57 minutes, 30 seconds amount of uh diversified base of vendors for for compound resins. So uh we are not at all concerned about um you know raw material security. 57:42 57 minutes, 42 seconds Perfect. Just a bookkeeping question in terms of the uh institutional mix if you could quantify for the fourth quarter as well as FI26. 57:51 57 minutes, 51 seconds So uh see overall I think for full year basis if you see I think couple of percentage points higher in institutional for the quarter maybe 3 to 57:59 57 minutes, 59 seconds four percentage points higher in institutional. 58:02 58 minutes, 2 seconds Uh no I I was keen to know if you could quantify exact how much would be institutional for us out of the total 58:09 58 minutes, 9 seconds cable and wire business would be uh yeah so I think the other way to look at it is and the way we always recite this is our channel to 58:17 58 minutes, 17 seconds institutional contribution is always the 90 to 10% right 90 is channel 10 is institutional so when we say couple of percentage points higher in institutional you can add couple of 58:25 58 minutes, 25 seconds percentage points to maybe make 10 12% of overall topline and if I 3 to 4% you can make it 13 to 14. 58:35 58 minutes, 35 seconds Understood. Uh and the second if you could give us a EIA number because the guidance is on EITA. uh if you could 58:41 58 minutes, 41 seconds disclose what is the AITA uh margin for cable and wire segment for the fourth quarter and the full year FY2 58:50 58 minutes, 50 seconds see for the fourth quarter uh was higher so definitely around 14 14 plus% and FM 58:59 58 minutes, 59 seconds of course was also uh mid singledigit u uh AITA margin and for the full year Sashank if you 59:07 59 minutes, 7 seconds could context see full Also we were uh very very very uh robust. I mean it's overall 59:15 59 minutes, 15 seconds uh overall full year AITA at company level is 13.9 and cable wire was definitely above that and uh FM of 59:22 59 minutes, 22 seconds course continues to be you know mid single digit. 59:27 59 minutes, 27 seconds All right. All right. Thank you and I'll fall back in the Thank you. 59:34 59 minutes, 34 seconds Thank you very much. We will take that as a last question. I would now like to hand the conference over to Mind and Maru for closing comments. 59:52 59 minutes, 52 seconds Uh thank you everybody. Uh uh it was nice to have you all on the call. Maybe I think I just wanted to add one last 1:00:00 1 hour comment. I think you know many times when we look at you know the quantity part I think the larger part I think 1:00:08 1 hour, 8 seconds which we get sometimes unnoticed is that I think as a company I think in this industry we have been gaining market 1:00:16 1 hour, 16 seconds share and I think we continue to do so in the quarter 4. uh I think once the numbers are announced for everybody then we will have a better idea of what is 1:00:25 1 hour, 25 seconds the real increase in the market share but we do believe that we have continued to gain market share in two thank you 1:00:33 1 hour, 33 seconds everybody thank you members of the management on behalf of polycar India limited that 1:00:40 1 hour, 40 seconds concludes this conference thank you all for joining with us today and you may now disconnect your lines thank