Quality Power Electrical Equipments Ltd — Q4 FY26

Quality Power Electrical Equipments Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=FOedWHiO9ho Published: 2 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the quality power electricals equipments limited Q4 FY26 earnings 0:09 9 seconds conference call hosted by Asetsi Mata investment intermediates. 0:14 14 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touchstone phone. 0:30 30 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Sadhad Pomer from Asets Si Mata Investment Intermediates. 0:39 39 seconds Thank you and over to you sir. 0:42 42 seconds Thank you. Good afternoon everyone. I once again thank all of you to join this conference call of quality power electrical equipments and we are 0:51 51 seconds discussing uh U4 FI26 and uh full year FI26 numbers. Uh we Ashit Meta 0:58 58 seconds Investment Intermediary Limited we are a pantomat group of company and we would like to congratulate the entire team of 1:05 1 minute, 5 seconds quality power in achieving uh 1,000 plus cr of total income in full year FI26. 1:11 1 minute, 11 seconds Also we would uh request management to emphasize on uh this rise in other expenses due to accounting entry as per IS-29 which uh factored in impact of 1:21 1 minute, 21 seconds hyperinflation on the balance sheet of its uh Turkish subsidiary. So today uh on call we have with us Mr. Banaran 1:28 1 minute, 28 seconds Pandy who's a joint managing director, Mr. Sanjob Matre CEO, Mr. Rajes Jaram 1:37 1 minute, 37 seconds CFO and Mrs. Sarik Jad senior vice president in finance over to you Bi. 1:47 1 minute, 47 seconds Uh good afternoon everybody and thank you for joining our earnings call. On behalf of the management team, I would like to thank our shareholders, 1:56 1 minute, 56 seconds customers, employees and partners for their continued trust and support. A personal note today, on the 12th of May, 2:03 2 minutes, 3 seconds we lost professor Dr. Rafish Pilai, my professor of strategy at SJMR. 2:08 2 minutes, 8 seconds He parted the competition of science through both. 2:11 2 minutes, 11 seconds Sorry to interrupt, sir. Sorry to interrupt, sir, your voice is breaking. Yeah. On the 12th of May, we logged Dr. 2:20 2 minutes, 20 seconds Rah Krishna Pilai my professor of strategy at FJIMR. He taught us that competition is a science through both AA 2:26 2 minutes, 26 seconds shastra and art of war. Two ideas from his classroom have stayed with me and they have shaped how we have built quality power as a small technology 2:35 2 minutes, 35 seconds company competing against far larger global needs. From the Arakashastra Chamatrias council that a smaller state 2:42 2 minutes, 42 seconds does not engage the larger one where it is the strongest. It builds its capability patiently, chooses its ground and competes only when its preparation 2:50 2 minutes, 50 seconds gives it an edge. From Sanzu, the principle that a better general wins the battle before it is fought by choosing 2:58 2 minutes, 58 seconds the terrain and the timing rather than the fighting harder on somebody else's ground. Much of what we have done at Quality Power have been guided by these 3:06 3 minutes, 6 seconds two ideas. My gratitude to him and my condolences to his family on the opportunity ahead. The global energy 3:14 3 minutes, 14 seconds transition, HBDC SAX investments, renewable integration, grid modernization, and power quality requirements continue to create long-term opportunities for our sector. 3:25 3 minutes, 25 seconds We see healthy engagement across utilities, renewables, industry applications and data center infra infrastructure across multiple operating markets. 3:35 3 minutes, 35 seconds To begin the call, I would like to have a few housekeeping remarks. First on the enabling resolution for fundraising 3:42 3 minutes, 42 seconds placed before shareholders. This is a long-term growth capital enabler available to the company as and when required. It could support future 3:51 3 minutes, 51 seconds expansion opportunities including North America related growth initiatives or acquisition subject to a business plan 3:59 3 minutes, 59 seconds and market comfort at an appropriate time. The funds will be called as and when required and not necessary your voice is again breaking it. 4:11 4 minutes, 11 seconds Second on the alignment uh in light of the proposed fundraising the promoters in the management have collectively 4:18 4 minutes, 18 seconds decided to forgo any incremental salary for the second consecutive year and to forego our share of dividend again this 4:25 4 minutes, 25 seconds year. The intent is to preserve cash, strengthen the balance sheet, and keep any future dilution as minimal as possible. I would request that this not 4:35 4 minutes, 35 seconds be read as a permanent posture or a forwardl looking commitment beyond this context. It is a decision tied to the 4:42 4 minutes, 42 seconds present fund raise. Third, a word on how we communicate on these calls. Our responsibility is not only to talk about 4:50 4 minutes, 50 seconds the achievements but equally to be open about risks, execution challenges and areas of caution 4:57 4 minutes, 57 seconds that are often under discussed in the normal world 5:11 5 minutes, 11 seconds sir. We are unable to hear you. 5:21 5 minutes, 21 seconds Hello just a moment sir. I'll just reconnect you. Ladies and gentlemen, please stay 5:29 5 minutes, 29 seconds connected while we reconnect the management. Just can you 5:54 5 minutes, 54 seconds Hey fell. 6:21 6 minutes, 21 seconds Ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you, sir. 6:27 6 minutes, 27 seconds Uh sorry for the brief interruption. Um I begin again and finally on Sid's question. or 25.7 cr hyperinflationary 6:37 6 minutes, 37 seconds adjustment in Turkish subsidiary under IAS-29. 6:41 6 minutes, 41 seconds This in all honesty is the duckworth leis of our financial year. We executed the plan. We hit the numbers we said we 6:48 6 minutes, 48 seconds would hit. The cash came in the order shipped. The bank account looked exactly as we had planned and then a formula in the audit room kindly explained that on 6:57 6 minutes, 57 seconds paper the scoreboard read 25.7 cr lighter. The good news is that this is a non-cash adjustment. The operating 7:05 7 minutes, 5 seconds performance of the business and the cash it has generated are unaffected. As engineers, we would have scored the match differently. As a listed company, 7:14 7 minutes, 14 seconds we report what the standard requires us to report and we have disclosed it accordingly. 7:20 7 minutes, 20 seconds On our results briefly, we have crossed for the first time,000 crores in total revenue uh with an AITA of 23.6 6 uh 7:30 7 minutes, 30 seconds sorry 236 crores uh in spite of the write off uh adjustment that we had just spoken about. Q4 was our highest ever 7:38 7 minutes, 38 seconds quarter at about 310 crores in total revenue. At the start of the year we had guided to a revenue band of roughly 800 7:47 7 minutes, 47 seconds cr with aa in margins between early teams and to 20%. We have closed the 7:54 7 minutes, 54 seconds year above that range on revenue and at approximately 23.8% 8% margins. This has been possible in difficult supply chain 8:03 8 minutes, 3 seconds conditions and I want to thank my colleagues, our partners and our customers for helping us deliver better than the guidance we had set ourselves 8:11 8 minutes, 11 seconds on Q4 profitability. The quarter includes one-time provisions related to the new labor codes across our Indian operations and subsidiaries. 8:21 8 minutes, 21 seconds Within the subsidiary, Mehu has delivered around 20% EITA margins this quarter. a meaningful contribution and a 8:29 8 minutes, 29 seconds sign of how well the integration is settling in. A note on comparability. 8:35 8 minutes, 35 seconds This is the first quarter of Endoc in our consolidated numbers for our last quarter. For a cleaner read, please look 8:43 8 minutes, 43 seconds at Endoc on a year-on-year basis rather than a quarter-on-quarter basis. Since Endox follows a January December of 8:51 8 minutes, 51 seconds financial year and was in its final quarter when last quarter was reported, the basis are not directly comparable. 8:59 8 minutes, 59 seconds We enter FI27 with an order of over 1400 crores about 1.4 times last year's revenue. 9:08 9 minutes, 8 seconds How we think about our growth and margin across our portfolio. We do not run quality power as a collection of independent businesses each chasing its 9:17 9 minutes, 17 seconds own number. We run it as a team with a strategy. In any given year, the raw material environment in one product line 9:24 9 minutes, 24 seconds or the customer mix in other will mean that one business needs support on growth while the other needs support on margin. Because our businesses do not 9:33 9 minutes, 33 seconds necessarily share the same customers and raw materials. We can lean on one another in strategies. One carries a 9:40 9 minutes, 40 seconds margin in a year while the other carries the growth and the next year can flip. 9:45 9 minutes, 45 seconds This year given the raw material environment in our high voltage product business we chose to chase growth in our power electronics business accepting 9:54 9 minutes, 54 seconds some margin sacrifice to do so. The window to build scale and customer references in power electronics is now. 10:03 10 minutes, 3 seconds As we scale margins will follow and as the group pursues its ambition in energy storage component prices should continue to ease with increased volume of orders. 10:14 10 minutes, 14 seconds That easing also makes our future entry into the Indian storage market more viable as electronic component costs come closer to Chinese prices at volume. 10:25 10 minutes, 25 seconds Meanwhile, the high voltage product portfolio holds a margin line for the group that is a team at work. 10:32 10 minutes, 32 seconds Beyond the numbers, we have been broadening this company beyond traditional high voltage equipment manufacturer. The PCS or power 10:40 10 minutes, 40 seconds conversion system for grids scale energy storage is an example. It has been developed in-house by our own R&D and engineering team. The result of 10:48 10 minutes, 48 seconds investments over several years in power electronics design, testing capability and engineering depth. We are setting up a dedicated PCS factory for best 10:57 10 minutes, 57 seconds application to commercialize it at scale. 11:03 11 minutes, 3 seconds Our 1725 kowatt PCS inverter design is also underway and we expect to bring it to the market over the next few quarters. 11:12 11 minutes, 12 seconds GIS is another example of of the same pattern, a category we have invested in patiently and one we expect will over 11:20 11 minutes, 20 seconds time deliver the same kind of compounding contribution that our earlier R&D products have delivered. At 11:28 11 minutes, 28 seconds Meeru, the development of 765 KV product category is the clearest signal that technology improvement is a way of life at quality power. It is how we operate. 11:38 11 minutes, 38 seconds Whether it is a 765 KV step at NEU, the in-house PCS or our GIS buildout, what you are seeing is the same underlying 11:47 11 minutes, 47 seconds habit. Investing in capability ahead of demand, trusting our own R&D and moving the technology bar one step at a time. 11:56 11 minutes, 56 seconds While all this is happening, we continue to scale businesses uh our capacities across product lines and geographies. 12:04 12 minutes, 4 seconds These are not separate projects. They are one effort building a technology mode and a scale mode together. 12:12 12 minutes, 12 seconds Technology earns us the right to participate in the most demanding tenders. Scale earns us the right to win them. Both remain our primary advantage 12:20 12 minutes, 20 seconds in the market and we intend to keep investing in both. 12:24 12 minutes, 24 seconds As the company grows in size and complexity, we are deepening our engagement with the academia and bringing in regular training from renowned external trainers and 12:33 12 minutes, 33 seconds institutions. The objective is to build the next layer of managers and engineers within quality power who can take this 12:40 12 minutes, 40 seconds organization forward into a larger, more global and more technology intensive future. 12:47 12 minutes, 47 seconds On the external environment, a geopolitical conditions across several corridors continue to make an already congested supply chain more difficult. 12:56 12 minutes, 56 seconds These are industry-wide realities and we are managing them through vertical integration as I described earlier. 13:03 13 minutes, 3 seconds As a closing remark, we remain focused on disciplined execution, technology leadership and long-term value creation. 13:11 13 minutes, 11 seconds There is much that remains to be built and we are clearey about it. With that, I hand over the call to Mr. Sanjuk Matre, our CEO for the business 13:19 13 minutes, 19 seconds overview. Following which uh we shall be happy to take your questions. Thank you Jind. 13:27 13 minutes, 27 seconds Thank you Mr. Pan. Good lon to everyone joining us today and thank you for participating in our running scroll. The 13:35 13 minutes, 35 seconds past quarter has been yet another important milestone in our growth journey. Despite a dynamic global business environment, we continued to 13:44 13 minutes, 44 seconds demonstrate strong execution capabilities, operational discipline and growing customer confidence across 13:51 13 minutes, 51 seconds international markets. Over the last few years, Quality Power has evolved from a fast growing engineering company into a 14:00 14 minutes more integrated, process-driven and globally competitive organization. 14:05 14 minutes, 5 seconds One of the strongest indicators of the growth momentum is our historic order book position. Today, Quality Power has 14:14 14 minutes, 14 seconds an order book exceeding rupees 520 crores while the overall group order book stands tall above 1,400 crores. Our 14:23 14 minutes, 23 seconds subsidiaries continue to perform strongly as well with meu carrying an order book of approximately 430 crores and endoc at nearly 450 crores. 14:34 14 minutes, 34 seconds Importantly, during the last quarter alone, we have added over 600 crores of fresh orders reflecting increasing 14:43 14 minutes, 43 seconds customer confidence and strong market demand. Our business pipeline remains 14:50 14 minutes, 50 seconds highly encouraging as we currently pursue opportunities exceeding 1100 crores for QP alone 14:59 14 minutes, 59 seconds including strong opportunities in fact systems renewables and data center infrastructure. 15:06 15 minutes, 6 seconds Demand visibility continues to remain robust across the Middle East, Europe, the United States, and Australia, 15:15 15 minutes, 15 seconds particularly in grid modernization, renewable integration, Statcom applications, and power quality 15:22 15 minutes, 22 seconds solutions. To support future growth, we continue investing in manufacturing infrastructure and technology 15:30 15 minutes, 30 seconds capabilities. Our new factory is expected to commence operations around July August 2026 alongside the 15:38 15 minutes, 38 seconds commissioning of new high voltage test laboratory which will significantly enhance our testing and execution 15:46 15 minutes, 46 seconds capabilities too. At Mehu, additional oven capacity is being added post September 2026 along with the 15:54 15 minutes, 54 seconds development of GIS manufacturing and testing infrastructure. The GIS product line is progressing well with the first 16:02 16 minutes, 2 seconds prototypes expected around July August 26. 16:07 16 minutes, 7 seconds Indox is also setting up a new best manufacturing facilities based on in-house developed technology 16:15 16 minutes, 15 seconds underscoring our focus on innovation laid growth. Thus we expect to launch this 1725 kilowatt PCS inverter within the next two quarters at indox as Mr. 16:27 16 minutes, 27 seconds Banaran Pandan just mentioned operationally we continue to strengthen the organization through recruitment of 16:36 16 minutes, 36 seconds skilled manpower across engineering manufacturing projects and leadership functions. 16:45 16 minutes, 45 seconds Recently we conducted a vision meet at Panada Fort involving nearly 95 senior and middle management members from 16:54 16 minutes, 54 seconds across the quality power group. This strategic exercise aligned all group companies around a common long-term 17:02 17 minutes, 2 seconds vision, mission and growth road map. We believe one of the most encouraging developments today is that sustained 17:11 17 minutes, 11 seconds growth, operational discipline and crossf functional collaboration are increasingly becoming part of our 17:18 17 minutes, 18 seconds organizational culture across all levels. 17:22 17 minutes, 22 seconds At the same time, the global environment continues to remain dynamic. 17:26 17 minutes, 26 seconds Geopolitical tensions, logistics disruptions, commodity volatility, and supply chain constraints continue to impact industries globally. 17:38 17 minutes, 38 seconds We are currently facing certain execution challenges related to insulators and winding conductors. 17:44 17 minutes, 44 seconds However, mitigation initiatives are already underway, including our own cable manufacturing initiatives that 17:52 17 minutes, 52 seconds will improve supply reliability going forward. Importantly, as the global shifts are accelerating the movement 18:00 18 minutes towards diversified and resilient sourcing strategies positioning India as a preferred global manufacturing and 18:07 18 minutes, 7 seconds engineering destination, we believe quality power is well positioned to benefit from these structural opportunities. 18:17 18 minutes, 17 seconds Going forward, our priorities remain clear. Expanding our global market presence, strengthening manufacturing 18:25 18 minutes, 25 seconds and execution capabilities and supply chain resilience, investing in technology and digital systems, building 18:32 18 minutes, 32 seconds scalable leadership and organizational depth, maintaining disciplined and sustainable growth. To conclude, 18:40 18 minutes, 40 seconds therefore, we are entering the next phase with stronger teams, improving infrastructure, 18:47 18 minutes, 47 seconds historically a record order book, growing global visibility, and a long-term commitment towards building a 18:55 18 minutes, 55 seconds globally competitive strong organization. 18:59 18 minutes, 59 seconds Thank you once again for your continued trust and support. I now hand over the call to our CFO, Mr. Rajes Jaman who 19:07 19 minutes, 7 seconds will walk you through the financial highlights for the quarter. 19:14 19 minutes, 14 seconds Thank you Bernie. Thank you Sanjuk. 19:21 19 minutes, 21 seconds Good afternoon everyone. It is my privilege to walk you through the financial highlights of what has happened 19:29 19 minutes, 29 seconds and has been a defined defining year for quality power. FI26 has closed comfortably ahead of every guidance 19:38 19 minutes, 38 seconds milestones we set out at the start of the year. We had originally guided the market to approximately rupees 800 cr of 19:48 19 minutes, 48 seconds consu revenue which we subsequently revised upward to rupes 900 cr with an 19:55 19 minutes, 55 seconds evita margin as of around 22%. I'm pleased to confirm that we had closed 20:02 20 minutes, 2 seconds the year at consolidated revenue of rupes 1,7 cr of nearly 157% 20:11 20 minutes, 11 seconds year on year with a full year aida margin of 23.5% comfortably above the revised guidelines. 20:20 20 minutes, 20 seconds This is the first time in our history that we have crossed the rupees 1,000 cr revenue mark and we have done so while simultaneously expanding profitability. 20:31 20 minutes, 31 seconds Full year AITA stands at rupees 236 cr up by 98%. Profit before tax at rupees 20:39 20 minutes, 39 seconds 216 cr up by 93%. And pat rupes 185 cr up by 85% yearonear. 20:48 20 minutes, 48 seconds Standalone performance was equally robust with revenue of rupes 227 cr and par of 55 crores. A particular highlight 20:58 20 minutes, 58 seconds has been the successful operational integration of meu electrical and mechanical engineers where margins have 21:05 21 minutes, 5 seconds expanded to up to approximately 20% in Q4 and 15% within just one year of 21:12 21 minutes, 12 seconds acquisition supported by revenue stream expansion and deeper marketeration. 21:18 21 minutes, 18 seconds On the key business ratios, the trajectory is clearly improving across the board. Gross margin for FY 26 stands at 43.7%. 21:29 21 minutes, 29 seconds Expanding to 47.7% in Q4, reflecting a richer product mix and a higher share of engineering 21:37 21 minutes, 37 seconds content revenue. Full year PVD margin has held firm at 21.5% and P margin at 18.4%. 21:47 21 minutes, 47 seconds Return on equity has expanded materially. Finance costs remain contained at under 0.7% of revenue and 21:56 21 minutes, 56 seconds we continue to operate as an essentially debt debtike enterprise with healthy 22:03 22 minutes, 3 seconds interest coverage. Earnings were shared for the full year stands at rupees 15.67 versus rupees 9.10 in the previous year. 22:14 22 minutes, 14 seconds The order book exceeding the year is in excess of rups 1,400 cr approximately 22:20 22 minutes, 20 seconds 1.4 times FI26 revenue giving us strong forward visibility into FI27 and beyond. 22:30 22 minutes, 30 seconds Now allow me to address one important technical matter that mater 22:37 22 minutes, 37 seconds the optics of our Q4 numbers. This is a nuanced accounting subject and I would 22:45 22 minutes, 45 seconds request your patient attention here so that there is absolutely no ambiguity. 22:52 22 minutes, 52 seconds You will note that Q4 consolidated AITA margin appears at 19.1% against 27.9% 23:01 23 minutes, 1 second in Q3 and Q4 PBT margin at 17.3% versus 26.1% in Q3. 23:11 23 minutes, 11 seconds This does not reflect any deteration in underlying business performance, any 23:18 23 minutes, 18 seconds cash loss, any operating outfall or any erosion of margins at the subsidiary 23:25 23 minutes, 25 seconds level. Our Turkish step down subsidiary end of energy operates in an economy classified as 23:34 23 minutes, 34 seconds hyperinflationary under 29 which is financial reporting in hyperinflationary economies. 23:42 23 minutes, 42 seconds Under the standard, all non-monetary items on the subsaries balance sheet such as property, plant and equipment, 23:51 23 minutes, 51 seconds inventories and equity must be initiated using the general index to reflect the 23:58 23 minutes, 58 seconds current measuring unit at the reporting date. Monetary items such as cash, 24:05 24 minutes, 5 seconds receivables and payables are not receeded but the net monetary position naturally yields in real terms during 24:14 24 minutes, 14 seconds inflationary periods and this purchasing our loss recognized through profit and loss account. in our case classified 24:22 24 minutes, 22 seconds under other expenses for Q4 FIR 26 specifically that restatement has resulted in a net memory 24:32 24 minutes, 32 seconds loss of approximately rupees 25.7 cr I would like analyst to clear four points 24:42 24 minutes, 42 seconds first this is sir your voice is breaking this is a purely 24:49 24 minutes, 49 seconds accountingdriven nonmonetary non-cash adjustment mandated by 29 it does not flow into operating cash flows. 25:00 25 minutes Sorry to interrupt sir. Sir your voice is breaking it is not clear. 25:10 25 minutes, 10 seconds Uh can you connect to the par line? Okay, just a moment, sir. 25:43 25 minutes, 43 seconds Hello. 26:08 26 minutes, 8 seconds Hello. 26:09 26 minutes, 9 seconds Yes, the call you can go ahead sir. 26:23 26 minutes, 23 seconds Yeah. 26:24 26 minutes, 24 seconds of Q4 FI 26 specifically this restatement has resulted in a net monetary loss of 26:33 26 minutes, 33 seconds approximately rupees 25.7 cr I would like analysts to clearly note four 26:39 26 minutes, 39 seconds points first this is a purely accountingdriven non-monetary non-cash 26:46 26 minutes, 46 seconds adjustment mandated by INS29 it does not flow into operating cash flow 26:54 26 minutes, 54 seconds working capital or any element of business performance. 26:59 26 minutes, 59 seconds Second, the treatment is symmetric across quarters. In earlier quarters of this year, similar conditions produce 27:08 27 minutes, 8 seconds net monetary gains that were recognized under the same head. So quarterto 27:14 27 minutes, 14 seconds quartarter optics will continue to fluctuate purely on index movements not 27:21 27 minutes, 21 seconds on business uh business reality. Third endox underlying operating margins continue to remain north of 25%. 27:31 27 minutes, 31 seconds And the business are delivering strongly on commercial milestones including the new PCH facility at MIG. Fourth and most 27:41 27 minutes, 41 seconds importantly normalized for this in AS29 charge our 27:47 27 minutes, 47 seconds control pack for FI26 would have crossed rupees 210 cr. I would strongly 27:55 27 minutes, 55 seconds encourage analyst to model endoc on an in29 normalized basis when projecting forward 28:04 28 minutes, 4 seconds treating these monary loss or gain entries as below the line nonoperating 28:10 28 minutes, 10 seconds items. Q4 figures additionally absorb one-time provisions relating to the new 28:16 28 minutes, 16 seconds Indian labor force across our operations. 28:21 28 minutes, 21 seconds Beyond the headline numbers, the balance sheet continues strengthen meaningfully. 28:26 28 minutes, 26 seconds Consolidated total assets stand at rupes 1,112 cr against rupees 814 cr a year 28:34 28 minutes, 34 seconds ago and total equity has expanded to rupes 774 cr. Cash and bank balances 28:40 28 minutes, 40 seconds stand at rupes 248 cr and capital work in progress has scaled to rupees 73 cr reflecting active deployment across the 28:50 28 minutes, 50 seconds sangly global coil manufacturing facility the hbdc magnet w facility on track for Q3 FI27 29:00 29 minutes commissioning me hunting rupees 17.2 2 cr capex program for GIS and high voltage treating equipment and a new 29:09 29 minutes, 9 seconds endox PCS facility at nigi targeted for December 2026. 29:15 29 minutes, 15 seconds On capital allocation, the board has recommended a final dividend of rupees one per share with promoters voluntarily 29:23 29 minutes, 23 seconds waving the entitlement to conserve cash ahead of growth investments. The board has also approved an enabling 29:31 29 minutes, 31 seconds authorization to raise up to use USD 75 million across permissible modes 29:38 29 minutes, 38 seconds strategic drive powder for international expansion acquisitions and technology investments. We exit FY26 stronger, 29:48 29 minutes, 48 seconds deeper and better positioned than ever before. Thank you. Now uh I request the 29:54 29 minutes, 54 seconds monitor to take on and we are ready for question and answer. 30:00 30 minutes Thank you very much sir. We will now begin the question and answer session. 30:05 30 minutes, 5 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 30:11 30 minutes, 11 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 30:16 30 minutes, 16 seconds Participants are requested to use handset while asking a question. 30:21 30 minutes, 21 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 30:31 30 minutes, 31 seconds First question is from the line of Archa from 361 Capital. Please go ahead. 30:40 30 minutes, 40 seconds Yeah. Hi. Uh thank you for the opportunity sir. This is Kunal. Uh just wanted to quickly you know understand about the best and the data center 30:48 30 minutes, 48 seconds opportunity. you already got one large order on the best side. So how large this opportunity could be uh both on the 30:55 30 minutes, 55 seconds best and the data center side uh over the next few years and uh what are the key products uh you know uh that will go into this from our side. 31:08 31 minutes, 8 seconds Good morning Kunal. This is Bi here. Uh talking about bets we have been consistently consistently investing on 31:15 31 minutes, 15 seconds this product line. Uh the current order book at this at this moment stands at about $30 million US $ 31 million US and 31:24 31 minutes, 24 seconds we are expecting that we close another 30 to50 million US by the end of the year which means at about $80 million US 31:33 31 minutes, 33 seconds we will be the largest PCS manufacturing company in our country uh where the scale also helps us to increase 31:41 31 minutes, 41 seconds significantly. The reason why we have put the PCS factory in Turkey is because we have a better price realization in 31:49 31 minutes, 49 seconds Turkey compared to India. To compete in India, we need to have a cheaper prices. 31:54 31 minutes, 54 seconds Uh and that can only happen when we get semiconductors at a discount. So we believe this year we should be targeting anywhere between uh 60 and $80 million 32:03 32 minutes, 3 seconds in order. And uh it's a billion dollar opportunity really to be realistic. Uh the volume is just starting up across 32:10 32 minutes, 10 seconds the world. With regards to data center, uh we started with Microsoft in Finland last year. I think this time we have 32:18 32 minutes, 18 seconds again got one of the big threes uh in the pocket in the US. It was I think a 49 cr order uh that we backed a couple 32:26 32 minutes, 26 seconds of weeks back. I was in the US last week. I believe we should get a similar a couple of projects or more in the next few quarters. 32:33 32 minutes, 33 seconds uh there is a demand for echore reactor for every large data center uh tieup that is coming up in that part of the 32:41 32 minutes, 41 seconds world. Uh it's a part of spec where the current problem we are having is we are already booked out on deliveries. Most of these data centers comes at six 7 32:50 32 minutes, 50 seconds months kind of a timeline. Uh we we already are booked out on HBDC and other projects. As my colleague Mr. Sanjuk 32:57 32 minutes, 57 seconds said uh we are almost north of 500 crores on the current order book. It's only when we take into the new facility we'll be able to take more. 33:06 33 minutes, 6 seconds But I believe the market size for just data center integration for reactors in the US market is about 1,500 crores per year. 33:16 33 minutes, 16 seconds Sure. Uh thank you. Uh my next question sir uh is on the Sangi plant. Uh so now the commissioning we're targeting is around July right? 33:27 33 minutes, 27 seconds Uh July and August is what we are guiding in. uh the people have written back uh the guys who had shortage of gas and operating uh problems during the 33:36 33 minutes, 36 seconds start of the problem uh conflict uh but I think we are at swift full swing uh we are anticipating trial productions to 33:43 33 minutes, 43 seconds start at that time yes sure uh and sir thirdly uh uh I don't know maybe the line was bad I'm not sure 33:51 33 minutes, 51 seconds if we mentioned about the guidance for the year uh if not if you can talk about the guidance for the year on topline and margin 34:00 34 minutes uh the guidance uh would be as of now we have given the market a scurve uh where this year we stabilize where we have a lot of people that we will be taking 34:09 34 minutes, 9 seconds across organizations because a lot of factories are coming in uh the guidance is around 15 and 20%. With regards to 34:16 34 minutes, 16 seconds our traditional product line, I think we are happy with the margins where we are maybe a couple of points here and there because of the conflict and the related 34:24 34 minutes, 24 seconds price increases. With regards to best, I need to make it clear whatever is the battery pass through at this moment is about 2 or 3%. On the converter side, 34:33 34 minutes, 33 seconds it's about 10 or 12%. As we scale up, we anticipate the 10 or 12% to be at about 17 18% for the inverter. uh the 34:42 34 minutes, 42 seconds batteries are being passed through the balance sheet because we are building the containers where the battery and the PCs go all together. Uh as I said this 34:50 34 minutes, 50 seconds is a a volume game the more we are able to bring in the semiconductors I think we will get cheaper so it's it's a investment mode at this 34:58 34 minutes, 58 seconds moment otherwise I think we should be happy at about 15 20% more than what earnings what we are right now 35:06 35 minutes, 6 seconds got it sir and so I understand sorry to interrupt Mr. May we please request you to rejoin the queue sir for the followup question. Sure. Okay. 35:14 35 minutes, 14 seconds Thank you. 35:16 35 minutes, 16 seconds Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participant in the question queue, please restrict 35:23 35 minutes, 23 seconds yourself to two questions only. Should you have a follow-up question, please rejoin the queue. 35:29 35 minutes, 29 seconds Next question is from the line of Nimsh Sun from Ilada Capital. Please go ahead. 35:36 35 minutes, 36 seconds Yeah, hi sir. Thank you for the opportunity and congrats on a very good quarter. Uh so just expanding a bit on the best uh so you highlighted the 35:43 35 minutes, 43 seconds opportunity pipeline. So just wanted to understand who will be our competitors here like we'll be competing with certain local players or would be 35:50 35 minutes, 50 seconds competing with certain MNC's like uh EVP Seammens and Hitachi who are also supplying there or what would be the competitive landscape of this in the domestic and global? 36:04 36 minutes, 4 seconds Uh good morning Namish. uh the uh the best is dominated by Chinese in most parts of the world. Uh but fortunately 36:12 36 minutes, 12 seconds you have software and service support that helps you in Europe which keeps the Chinese away also in the US and Australia where they are not much 36:20 36 minutes, 20 seconds preferred. In India currently only the EMS is needs to be domesticate uh with a domestic supply. The power electronics 36:29 36 minutes, 29 seconds they still do not have a large manufacturing base and is currently being imported. uh but with regards to I would say competition I would say 36:36 36 minutes, 36 seconds Chinese would be the largest competition uh GE is a large player that is at a very very high level on the pricing front. Our focus at this moment as I 36:45 36 minutes, 45 seconds said is to bring in that 70 $80 million of order this year and then grow into a billion dollar opportunity in the next few years. Uh the competition will 36:54 36 minutes, 54 seconds always be Chinese is where we are seeing as an Asian company. We are not competing G in this product line yet because we are upstarts in the market. 37:05 37 minutes, 5 seconds Okay sir. And also on the data center so uh it we've already gotten an order and you said we've received another order. 37:12 37 minutes, 12 seconds So on the current uh facility and the new facility so would we be in a position to cater it to multiple data 37:18 37 minutes, 18 seconds center orders as we scale up forward in India and globally. 37:24 37 minutes, 24 seconds So Nish you have visited the facility you know the kind of scale that we are bringing. uh the storage is not only our 37:31 37 minutes, 31 seconds capability, it is also uh the raw material supply chain. We have always been uh blaming the insulator guys. So 37:39 37 minutes, 39 seconds it is over a period of time that we will build in the capacity uh that is required to deliver. As I said, it is just not data center. We are delivering 37:47 37 minutes, 47 seconds HBDC in Australia, HBDC in India. There is already one uh that we are likely to close uh by this year. There is bar 37:56 37 minutes, 56 seconds which has also gone for a tender which again doesn't come this year. All these are multi-million dollar orders. Uh we are also exporting quite a bit to 38:04 38 minutes, 4 seconds Europe, Middle East, Australia, Southeast Asia. So we are quite busy. So we cannot deliver to only one market and 38:12 38 minutes, 12 seconds one product. We are just trying to ensure that we have flavor of everything. As and when our supply chain eases up, we will we'll be able to take market shares. 38:21 38 minutes, 21 seconds Okay. Thank you sir. I have some questions but I'll get back in the queue. Thank you. 38:27 38 minutes, 27 seconds Next question is from the line of Loyen from Burman Capital Management. Please go ahead. 38:35 38 minutes, 35 seconds Hi. Uh, thank you for the opportunity. Am I audible? 38:39 38 minutes, 39 seconds Yes, please go ahead. Yeah. Uh, actually sir, I wanted to understand the damn potential of reactors and transformers that we supply from our standalone 38:48 38 minutes, 48 seconds business and meu business. So uh in India for a typical project HPDC project like a Badlapur Patipur corridor which 38:55 38 minutes, 55 seconds is a six gawatt project uh I wanted to understand what is the total value of reactors and instrument transferrimers that will be used in that project and 39:03 39 minutes, 3 seconds also what is the timeline for the supply of these components for that project. 39:09 39 minutes, 9 seconds So to give you an idea, a classic 6 gawatt uh HVDC which is I would say a LCC technology would entail anywhere 39:18 39 minutes, 18 seconds between 200 to 300 crores of reactors alone. Uh another 50 to 70 crores of instrument transformers. Uh at the 39:28 39 minutes, 28 seconds moment we are adding more products into the kitty. Uh LCC uh is not a 6 G link 39:34 39 minutes, 34 seconds yet. It is normally a 2 G link. It's much smaller uh in technology because they are basically trying to connect 39:41 39 minutes, 41 seconds renewables and it's a IGBT converters at 6 gawatt level is still not operational yet. So we believe that would be about 39:49 39 minutes, 49 seconds 70 to 100 crores uh approximately at this moment at the coil business side. 39:54 39 minutes, 54 seconds With regards to uh transformers we also I I'm not sure because standalone business we also make transformers. uh 40:02 40 minutes, 2 seconds we have had opportunities in this quarter where we were bidding 80 to$100 million of transformers alone in the US 40:09 40 minutes, 9 seconds market. uh unfortunately we lost a lot and uh I think we we have also as a strategy are unsure whether we have to 40:18 40 minutes, 18 seconds scale up our transformer business because we do not know the sustainability of transformers with the kind of capacity that is being built 40:25 40 minutes, 25 seconds across the world. So we are also looking at a lot of exposure of transformers. We are currently engaged in multiple bits 40:32 40 minutes, 32 seconds for transformers for data centers as we speak but this is not something of a priority and at a lower margin than what we are operating we are not intending to 40:40 40 minutes, 40 seconds book the orders with instrument transformers for the yeah yeah so just to summarize the overall 40:48 40 minutes, 48 seconds opportunity let's say in a regular HBDC corridor currently would be somewhere around 350 to 400 crores for us right 40:55 40 minutes, 55 seconds assuming that we take the entire lot but unfortunately the current supply chain does not allow us to take the entire lot because once we booked the supply chain 41:03 41 minutes, 3 seconds and the factory you cannot supply to other people as of last quarter our revenue for the year was about 200 uh uh 41:11 41 minutes, 11 seconds 30 crores if I'm not wrong and uh what we say the order book is already 500 and uh if I open the corridors we will get 41:19 41 minutes, 19 seconds more so execution is the key and not order understood and sir if I look at just globally what would be the market 41:26 41 minutes, 26 seconds potential for our products uh of these uh of these reactor coils and the instrument transformers that we have. 41:34 41 minutes, 34 seconds So the data we have the opportunity for us. 41:37 41 minutes, 37 seconds So I I uh I would like to talk about peer-reviewed data rather than data that is uh you know what we say off my uh 41:45 41 minutes, 45 seconds hook or the my largest competitor is a company called Trench Electric Limited earlier owned by Seammens now by a private equity. I think as of last 41:54 41 minutes, 54 seconds December they had€1.5 billion euros in pending order book. Uh for the instrument transformer there is a listed 42:01 42 minutes, 1 second company called RTE in the Spanish market which is the nearest competitor to Mahel. I think their revenues were slightly north of 3500 crores. So I 42:10 42 minutes, 10 seconds believe the opportunity size or the TAM is not a problem. We have enough to grow uh for the current markets. It's only the execution which is our challenges internally. 42:20 42 minutes, 20 seconds Got it. Just one thing to get sorry to interrupt Mr. Lish may we please request you to rejoin the queue sir for the followup. Thank you. 42:27 42 minutes, 27 seconds Sure. 42:30 42 minutes, 30 seconds Next question is from the line of Karthik Kohi from Kotak Institutional Equities. Please go ahead. 42:38 42 minutes, 38 seconds Hi sir, thanks for taking my question. 42:41 42 minutes, 41 seconds Um I had two quick questions. One uh I I don't know if this was discussed previously. Can you like shed more light 42:49 42 minutes, 49 seconds on your best business? I would like to know more on first of all the operating strategy of the business. Uh what kind 42:57 42 minutes, 57 seconds of customers you're looking at and what is the uh advantage that you're offering versus competitors in the markets that 43:05 43 minutes, 5 seconds you're looking and I'll come back with my second question. 43:10 43 minutes, 10 seconds So Karthika best is basically a high voltage high power inverter similar to the SVC and Statcoms that we are already 43:18 43 minutes, 18 seconds building in Turkey. medium voltage. Now where the bus is required, bus has a variety of applications. In India, they 43:26 43 minutes, 26 seconds are primarily used for a peak cover discharge. Most of the tenders in India is basically a ONM tender whereas we are 43:34 43 minutes, 34 seconds a manufacturer. So in a bus we have three or four major components. First is the battery itself which we never intend to get into because that is chemistry. 43:43 43 minutes, 43 seconds Then you have the power electronic inverter which is something that we are manufacturing. Then we have the software that is the EMS that is conver 43:51 43 minutes, 51 seconds connecting the best to the grid and finally we have the transformer which is the in-house product for us. So this is the value chain. At this current moment 43:59 43 minutes, 59 seconds we are selling to developers of large renewable energy projects. However, Bess also has a very large markets in the 44:08 44 minutes, 8 seconds data center where each uh most of the data centers in the US have 50 g or 50 megawatt of steam turbines which are 44:17 44 minutes, 17 seconds parallel together. So in case of contingency they use best like in UPS where the battery component is less than 1% and the converters are much larger. 44:26 44 minutes, 26 seconds So these are evolving businesses. We believe these will be multi-billion dollar businesses in a very few years. 44:32 44 minutes, 32 seconds You can see that uh we would be talking about in excess of 2 gawatt of best projects every month in India alone. 44:39 44 minutes, 39 seconds This year we are targeting close to 500 to 600 megawatt of converter manufacturing where we are integrating the battery software into a converter 44:48 44 minutes, 48 seconds shell and selling it to the thing. We are not in a O andM model. Uh we are just a manufacturer at this. 44:55 44 minutes, 55 seconds Got it. Sorry sir I meant uh what kind of customers in what geographies? uh is the was the question. Sorry. 45:02 45 minutes, 2 seconds So the kind of customers is renewable energy developers. Uh in India if I would say that I would like to go to people like Acme or Aada but we are not 45:11 45 minutes, 11 seconds going there. We are talking to similar counterparts in Europe. A B uh the geographies are again Europe because we have a slightly better prices there 45:19 45 minutes, 19 seconds compared to India. Uh this will help us scale the business and bring the volume of semiconductors uh for the pricing advantage before we launch in India. 45:27 45 minutes, 27 seconds India is definitely in our pawns. Got it sir. Uh just one last question. 45:34 45 minutes, 34 seconds So from your order book of 1,400 crores uh I'm assuming like a large part of this is about 150 kores is coming from 45:43 45 minutes, 43 seconds uh the best orders. Uh is there a sizable portion of data centers in your order 45:51 45 minutes, 51 seconds book which may not get executed this year? 45:55 45 minutes, 55 seconds Uh Mr. So Sanjuk Matre uh had in our uh what we say in in his speech has spoken about the different order book of every 46:03 46 minutes, 3 seconds entity. Quality power is at this moment focusing on data centers uh where we have an order book of about 520 crores. 46:11 46 minutes, 11 seconds I think uh that is where we would be executing. I think the first data center order we will be for the US executing this year but there are more on the 46:19 46 minutes, 19 seconds environ which may either uh be completed this year or next year. uh uh the Turkish guys are not focused on the data center. They are focused more on 46:27 46 minutes, 27 seconds renewable energy integration and large steel factories and the mehu guys are focused on GIS high voltage and AC substitutions. That's our focus. 46:36 46 minutes, 36 seconds Different customers. 46:39 46 minutes, 39 seconds Thank you sir. Thank you for taking my question. Thank you. 46:44 46 minutes, 44 seconds Next question is from the line of Hmon Sony who is a self-employed. Please go ahead. 46:52 46 minutes, 52 seconds Sir, thank you for providing me with the opportunity and uh congratulations on ving the guidance. Sir, uh I think we 47:00 47 minutes have two expansions lined up, right? One at the Sangly plant and one at the sir uh uh Mehu plant. So what can be the 47:08 47 minutes, 8 seconds incremental revenue from both the expansions? 47:15 47 minutes, 15 seconds So the Sanjzi factory I think the peak revenue that we can go in is about 1,500 crores subject to we completing our uh 47:22 47 minutes, 22 seconds what we say our CTC cable expansion and clear out our insulator problems. Uh with regards to meu uh I think another 47:30 47 minutes, 30 seconds 20 30% before they down because the plant would uh would would uh then saturate but as we speak we are also 47:38 47 minutes, 38 seconds working out on a new expansion in Turkey. I believe we should have more data about it in in the next quarter. Uh the Turkish operations would cater to 47:46 47 minutes, 46 seconds most of the global or the European load whereas India would focus on India and uh near near uh new countries. 47:53 47 minutes, 53 seconds Sir can you please quantify uh in numbers maybe sir for the meu plant? 48:02 48 minutes, 2 seconds So as I said last quarter I think they did about 320 kas another 30 to 35% is what max I think the plant would 48:08 48 minutes, 8 seconds saturate current plant uh 30 to 35%. 48:16 48 minutes, 16 seconds Yeah that's the saturation of the plant and sir I think we are also exploring the green field uh opportunity right in 48:24 48 minutes, 24 seconds my uh yes uh but that is at Turkey not in India. 48:30 48 minutes, 30 seconds Okay. Okay. Okay sir. And sir Mr. Sony may we please request you to rejoin the queue sir. Thank you. 48:40 48 minutes, 40 seconds Next question is from the line of Pesh Cheda from Lucky Investments. Please go ahead. 48:45 48 minutes, 45 seconds Sir one clarification on this PCS that you were talking of uh some factory expansion in uh Turkey. So that was not clear what exactly it is. 48:56 48 minutes, 56 seconds Is it a new product line? And then you gave out that we are targeting some 60 $80 million of business. So know all those things were not clear. So you need 49:05 49 minutes, 5 seconds to first tell us where is it? Is it a new line of business? What is this PCS that you were referring to? You know some details would be easier. 49:17 49 minutes, 17 seconds Very good. Good morning sir. Long time no hear from you. Uh but with regards to PCS we have been talking in the last four calls. We have been saying that we are executing battery storage projects. 49:27 49 minutes, 27 seconds Uh we have our own products already on trial. This is a product that has come from our investments in R&D over the few years. We have been speaking about it. 49:37 49 minutes, 37 seconds The orders are just picking up. Uh so once the orders are picking up, we are putting together the uh the capacity expansion. PCS is basically the power 49:46 49 minutes, 46 seconds converter that is required to ensure the energy stored in the battery is interconnected to the grid. The grid is 49:53 49 minutes, 53 seconds at a AC supply and the battery is at a DC supply. So basically you're converting high power DC to high power AC at a large power electronic pace. 50:03 50 minutes, 3 seconds That is what we call as a power conversion systems. But while we are connecting the power conversion system, we also have a software interface 50:11 50 minutes, 11 seconds because the battery is not uh what we say charged and discharged as and when it seems like unlike a home inverter. 50:18 50 minutes, 18 seconds this is charged and discharged at uh you know kind of a uh forecast based on load demand and the pricing plant to the 50:25 50 minutes, 25 seconds exchange. So the the software is connected to the main grid that is where the data security and software security comes into play where the Chinese are 50:34 50 minutes, 34 seconds normally not allowed. Uh so that gives us some sweet spots in the US and European market. Even Indian market very recently ensured that software 50:43 50 minutes, 43 seconds interconnection is only Indian. The power electronics is also ours. the batteries will continue to either integrate or ask customers to direct directly buy. 50:52 50 minutes, 52 seconds So PC electronics is a part of best projects everywhere. 50:58 50 minutes, 58 seconds So it's basically an EMS product and uh you will land up supplying that or you will have to land up supplying the whole 51:06 51 minutes, 6 seconds batch. So that will include a a battery, a inverter and uh PCS. 51:13 51 minutes, 13 seconds So at this moment we are giving the entire connect uh container with our software hardware and integrating 51:20 51 minutes, 20 seconds batteries. Uh however we would be open to selling the converters alone standalone as a product line because we 51:27 51 minutes, 27 seconds are a manufacturing company and I is it currently made uh out of the Turkey Turkey units or how it is? 51:37 51 minutes, 37 seconds Yes. Uh because the center of computers for power electronics for us is Turkey. 51:42 51 minutes, 42 seconds Do you need to put any extra capacity there or it is made out of the existing? 51:47 51 minutes, 47 seconds So we have a lot of land bank there historically. So about $2 million is what we are putting in. Construction is very fast in that part of the world. So 51:55 51 minutes, 55 seconds so I think uh by the time we are coming in for execution the raw material is kicking in. I think we should start it. 52:01 52 minutes, 1 second Uh we are expecting the first orders that we are back to start building by the first uh last quarter this year. Uh so you could see a lot more revenue of 52:09 52 minutes, 9 seconds this coming in next financial year. The orders would come this year, revenues would follow next year. 52:14 52 minutes, 14 seconds What kind of orders you expect this year? 52:18 52 minutes, 18 seconds So 31 is already in the bag. Uh we believe another 50 million is our target internally. So that would mean that at 52:25 52 minutes, 25 seconds least 80 million is what we carry forward next year for the product line. 52:29 52 minutes, 29 seconds 50 million is sorry to interrupt Mr. Cha. May we please request you to rejoin the queue sir. Thank you. 52:35 52 minutes, 35 seconds I'm actually continuing with the same question. My friend, sorry sir, there are they're in US dollars. The money is in US dollars. 52:42 52 minutes, 42 seconds Okay. And can you just tell one thing sir in endox this 43 uh the size of the business which is uh about uh 468 crores 52:52 52 minutes, 52 seconds this year. So in the last 2 years uh there's this material difference. So that difference is from a new project or 52:59 52 minutes, 59 seconds new product or where the difference comes from? 53:02 53 minutes, 2 seconds So it is basically when you are grid integrating any component either is a clean factory or renewable you need power electronics for support. So there 53:10 53 minutes, 10 seconds is a lot more demand like all our other product lines for grid integration. It's it's it's just demand supply. Thank you sir. 53:18 53 minutes, 18 seconds Thank you. Thank you. 53:21 53 minutes, 21 seconds Next question is from the line of Adidi from Iwalth. Please go ahead. Hello. 53:30 53 minutes, 30 seconds Yes, please go ahead with your question. 53:31 53 minutes, 31 seconds Uh hi sir congratulations on a good set of numbers. Uh like I had just one question regarding the other expenses 53:38 53 minutes, 38 seconds like as you mentioned that 25 k is due to the hyperinflationary part from Turkey but even if we subtract that we 53:46 53 minutes, 46 seconds still have 33 kores left in other expenses which is proportionately high if we compare it to the par. So little clarity on that. 53:58 53 minutes, 58 seconds Yeah. Hello ma'am. 54:01 54 minutes, 1 second Yeah, in other expenses uh there uh the net monetary gain loss 54:09 54 minutes, 9 seconds of 25 crores has been categorized under other expenses and also the freight outward of 12 crores and LD of 5 crores 54:17 54 minutes, 17 seconds that uh because of that that other expenses has been increased uh during the last quarter. 54:26 54 minutes, 26 seconds Understood. And like should we see it uh going ahead like this would be the run rate or it would come back to the 1420 KS that we were doing. 54:39 54 minutes, 39 seconds Uh the LD basically was from a subsidiary in Neu uh which has been curtailed. These are pre-acquisition uh 54:46 54 minutes, 46 seconds hit uh with regards to the the hyperinflation formula it it is not in our control. there's indexation uh as 54:54 54 minutes, 54 seconds and when the the what we say the inflation rate comes down it will come down these are just optics for us and not real cash flow uh as of what I see 55:02 55 minutes, 2 seconds in the balance sheet of endoc last year without any net monetary gain or forex gain loss uh in their Turkish balance 55:10 55 minutes, 10 seconds sheet last year they had an AITA margin of 32.01% 01% and this year they have 32.13% 55:17 55 minutes, 17 seconds despite growing 150% in revenue. So they are stable on the reporting uh currency. 55:23 55 minutes, 23 seconds It's only the translation error that is showing this numbers. Understood. Thank you. Thank you. 55:32 55 minutes, 32 seconds Thank you. 55:33 55 minutes, 33 seconds Next question is from the line of Dave Gulwani from KPMS. Please proceed. 55:38 55 minutes, 38 seconds Thank you for the opportunity sir. Just one question. In a standard uh battery energy storage system project, what 55:46 55 minutes, 46 seconds percentage of the total project cost is attributable to PCS? 55:50 55 minutes, 50 seconds If you have any idea numbers, so at this current moment it's between 40 and 50%, based on how much of battery storage the customer would like to have. 56:01 56 minutes, 1 second Uh in a data center application, the battery is about 5%. uh that the prices of battery being a commodity uh is 56:09 56 minutes, 9 seconds expected to be at least half of what it is in the next 2 years. So I believe the converters will become more expensive than the battery uh going for in the 56:17 56 minutes, 17 seconds next 2 or 3 years. So where we will have a lot more to play around thank you. 56:30 56 minutes, 30 seconds Next question is from the line of Matri Sha from Sappire Capital. Please go ahead. Yeah. Hello. Audible? 56:38 56 minutes, 38 seconds Yes, please proceed. 56:39 56 minutes, 39 seconds Yeah. Hello. Um, good morning. A great set of numbers for this year. Um, one clarification on the guidance. You mentioned we'll we're looking at a 15 to 20% growth. Uh, did I hear that correct? 56:53 56 minutes, 53 seconds Ma'am, we started with the guidance of 800 crores and the base has shifted already to,000 crores. Our new factory 57:01 57 minutes, 1 second is not uh is not ready yet. So we will not be able to we have audits of six months. So we will not be able to deliver much from the new facility. Tur 57:10 57 minutes, 10 seconds the meu facility is also you know we are only getting it by September the new ovens. So that is also where it is. It 57:18 57 minutes, 18 seconds is all the growth is being delivered from endoc as we speak. So that is why we are doing a muted uh guidance on 57:25 57 minutes, 25 seconds growth but order book would would be differing. We will be picking up a lot more orders going forward in Q2 Q3 of this year primarily to support the new 57:34 57 minutes, 34 seconds capacities coming in. So as I said even in the last call we are going through a S-shaped curve. So this year is where we build together our team where we are 57:42 57 minutes, 42 seconds taking in maybe another 500 to,000 employees across business segment and building the facilities and the next year given the base I think we should be going ahead north of 50% again. 57:54 57 minutes, 54 seconds That is great. Um secondly you said uh the order book growth you were expecting a quite a way order in flow from three and 4 Q because the new facilities are 58:02 58 minutes, 2 seconds coming in any sort of target on the console order inflow for FI27 and maybe what uh audible book number 58:09 58 minutes, 9 seconds you would like to enter F28 with I think we should be comfortable with the same kind of numbers that we have 58:17 58 minutes, 17 seconds but I think we should be targeting at least uh 15 to 1800 cr of order book before we end next year start next 58:24 58 minutes, 24 seconds Uh but we have to also understand that order books are normally 12 months and if we are not able to deliver we are not 58:31 58 minutes, 31 seconds able to take in more orders and most of our constraints right now even if we ship the cables on time is insulators where the deliveries are already going 58:39 58 minutes, 39 seconds 18 to 24 months. So some of our projects are getting hurt because of some critical components. 58:46 58 minutes, 46 seconds Okay. So there's a supply supply chain restriction also kind of keep capping in our growth right now. Is that correct? 58:55 58 minutes, 55 seconds Uh yes but we will do something to even clean that up. We have been focused more on order book and the factories at this moment. Uh we have been able to cover 59:03 59 minutes, 3 seconds the cable problems by vertically integrating. I'm sure we the board is also deciding something on the insulator side of the thing. As and when is the right time we will let the markets know. 59:13 59 minutes, 13 seconds Okay that is great. And lastly on the margins so we had a a great jump in the gross margins for this quarter even in 59:21 59 minutes, 21 seconds such volatile conditions. So do you see this 46% gross margins kind of continuing for next year or do you think it'll kind of lower down because of the volatility in the West Asia? 59:34 59 minutes, 34 seconds Sorry for the humor but I think my friend Donald Trump is he has to answer this question. Uh because uh the prices are not being dictated by us at this 59:43 59 minutes, 43 seconds moment. It is all related to geopolitical stuff and the dollar impact. Uh traditionally uh the orders have been booked at the same or similar 59:51 59 minutes, 51 seconds margins all the companies. Uh but the raw material prices have been highly volatile. So you know how the dollars are behaving how the uh the compounds 1:00:00 1 hour are behaving. So I cannot guide the same kind of numbers but I can only guide that when we booked it we booked it at similar or higher margins. We may have 1:00:07 1 hour, 7 seconds some small change in margins uh in the next one or two quarters. uh but uh that would be short short-term impact. 1:00:15 1 hour, 15 seconds That's great. And we able to pass on these uh uh kind of raw material costs at a lag or does it happen? Is is there an escalation? It will be it will be done with a lag. 1:00:23 1 hour, 23 seconds It will be done with a lag. 1:00:25 1 hour, 25 seconds It will be done with a lag. Okay. And lastly, just sorry to interrupt the sha may please request you to rejoin the queue for the followup. Ma'am, just one one question. 1:00:36 1 hour, 36 seconds Next question. 1:00:39 1 hour, 39 seconds Sorry. We have move to the next question from the line of a AI from AK investments. Please go ahead. 1:00:47 1 hour, 47 seconds Uh hi sir. Uh thanks for giving me the opportunity. Uh first of all congratulations for a good set of number. We uh understand that the heat 1:00:56 1 hour, 56 seconds due to one time non accounting loss but also the revenue in this quarter on quarter on quarter basis it is flat. So 1:01:04 1 hour, 1 minute, 4 seconds generally the quarter four should be the highest quarter. So uh uh can you put some light on that and I will be in second question. Sir 1:01:12 1 hour, 1 minute, 12 seconds I have already indicated in my speech that for quality power at NEU this has been the highest profit quarter because 1:01:21 1 hour, 1 minute, 21 seconds it is our Q4 in India for NDOS this is Q1 they're they are January December and 1:01:29 1 hour, 1 minute, 29 seconds in December of last year they had the highest quarter on margins. This is Q1 where you normally expect a muted uh 1:01:36 1 hour, 1 minute, 36 seconds sale and muted margins. However, in spite of that we have delivered the margins of close to 20%. So I do not 1:01:44 1 hour, 1 minute, 44 seconds think we are comparing apples to apples here. Uh for the Q4 of theirs they have been highest. For Q4 of ours we have been highest. 1:01:52 1 hour, 1 minute, 52 seconds Okay sir. Understood. And sir my second question is currently we have uh around 1,400 K of outstanding uh order book. So 1:02:01 1 hour, 2 minutes, 1 second uh you already said that 15 to 20% revenue growth we can expect consolidate level uh in the FI 27 right so currently 1:02:09 1 hour, 2 minutes, 9 seconds what type of order pipeline are we seeing and customer inquiry and all these things are going on and how much order inflow are we expecting in FY27 1:02:18 1 hour, 2 minutes, 18 seconds and FY28 also so in San and Delhi we have almost closed our order intake for the next 1:02:27 1 hour, 2 minutes, 27 seconds quarter I think we are no longer aggressively taking orders uh primarily because of what we are able to deliver or not deliver. It's only strategic 1:02:35 1 hour, 2 minutes, 35 seconds orders that we are pulling in. Uh I I I think at this moment we are building data center, we are building GIS, HBGC, 1:02:43 1 hour, 2 minutes, 43 seconds we are building uh all all the colors that uh would would would spark in the in in what we say analyst head but because we are in a high technology area 1:02:52 1 hour, 2 minutes, 52 seconds uh almost every new technology we are uh we are participating. Okay. area. Thank you sir. 1:03:01 1 hour, 3 minutes, 1 second Thank you. 1:03:03 1 hour, 3 minutes, 3 seconds Next question is from the line of Pinaki Banerjee from AUM Capital Private Limited. Please go ahead. 1:03:09 1 hour, 3 minutes, 9 seconds Uh good afternoon sir and congrats for the good set of numbers. So a couple of questions sir. Could you throw some light on your fundraising plan like how 1:03:17 1 hour, 3 minutes, 17 seconds what are the sources through which you are planning to raise considering the fact that you have a cash balance of almost rupes 250 crores in your books. 1:03:27 1 hour, 3 minutes, 27 seconds Sir uh uh thank you for again highlighting the elephant in the room. 1:03:31 1 hour, 3 minutes, 31 seconds Uh so this is not something that we intend to raise. This is an enabling provision for us which means as and when the management requires it we will draw. 1:03:40 1 hour, 3 minutes, 40 seconds We are not saying we will draw 75 million. We may draw much lower. uh yes we have uh what we say 250 crores but 1:03:48 1 hour, 3 minutes, 48 seconds some of our acquisitions that the BDNA committee are looking at are much larger in value than the cash in hand and the cash in hand is also required for our 1:03:56 1 hour, 3 minutes, 56 seconds own organic expansions and our own organic cash flow so we cannot empty out the bank uh for it and as a group we 1:04:04 1 hour, 4 minutes, 4 seconds hardly leverage debt uh we are we normally focus on zero debt even the 125 cr promoter debt that we had pledged to 1:04:11 1 hour, 4 minutes, 11 seconds the company we have been able to finish almost 80% of our factory without any further de without any debt from the promoters with the current cash flow. We 1:04:20 1 hour, 4 minutes, 20 seconds would continue to have a solid balance sheet. Uh I know from a cash perspective you would like to work on um uh you know 1:04:27 1 hour, 4 minutes, 27 seconds debt but no we do not uh we do not like debt so we would always like to have the cash in hand. 1:04:32 1 hour, 4 minutes, 32 seconds Okay sir. Sir my next question regarding your uh 1400 order can you quantify how much comes from is it from renewable uh sources? No. 1:04:44 1 hour, 4 minutes, 44 seconds uh very difficult to quantify that way sir because an HVDC uh would would would classify as a transmission asset but is 1:04:51 1 hour, 4 minutes, 51 seconds actually integrating renewable uh for the energy storage is renewable data center even though the application of data center is being fed by renewable 1:04:59 1 hour, 4 minutes, 59 seconds energy so today if I look at uh the data of India alone 50% of our generation is renewable which means that what we say 1:05:08 1 hour, 5 minutes, 8 seconds 50/50 is what I could say but we are not in renewable or conventional we are in grid interconnect connection. So we don't care what is interconnected. 1:05:16 1 hour, 5 minutes, 16 seconds Okay. So and last question sir regarding this a hypothetical one regarding your Turkish operations. Actually we know the 1:05:23 1 hour, 5 minutes, 23 seconds regarding that Middle East crisis and the political situation between India and Turkey is not very good at this point of time. So are you apprehending any negative impact due to this? 1:05:36 1 hour, 5 minutes, 36 seconds Sir, we have been operating in the country for 16 years. We have been in the last 10 years getting the best R&D company of the year from the government and from the prime minister. 1:05:46 1 hour, 5 minutes, 46 seconds Okay. 1:05:46 1 hour, 5 minutes, 46 seconds Uh we are not alone. Tatas have a plant if I'm not wrong. Mahindra, JPL, Berlas, lot of Indian multinationals have plant 1:05:54 1 hour, 5 minutes, 54 seconds there. Turkey is a manufacturing hub for Europe. Low cost labor, lot of labor and lot of engineering talent at a much 1:06:01 1 hour, 6 minutes, 1 second cheaper cost than India in some of the high technology areas. uh when we take decisions geopolitical is a is a concern 1:06:09 1 hour, 6 minutes, 9 seconds but uh it is more on P&L. Uh if you look at Turkey they have a land border to US uh to Europe which means to say Germany 1:06:18 1 hour, 6 minutes, 18 seconds in 4 days on road they go in uh the raw material prices are more or less similar to India if not lower than India in some of the key raw materials. The labor is 1:06:27 1 hour, 6 minutes, 27 seconds about four times India but the labor is not a very big cost in our in our scope of the business. So the key raw material 1:06:35 1 hour, 6 minutes, 35 seconds being the same the freight coming down and faster to the market is normally a good suggestion for being a competitive mode and also towards the US uh they are 1:06:44 1 hour, 6 minutes, 44 seconds only 11 days on sea so it's a competitive mode geopolitically we have been there for 16 years we don't see problems okay sir okay sir that's all for mayor 1:06:53 1 hour, 6 minutes, 53 seconds and all the best for the future thank you next question is from the line of 1:07:00 1 hour, 7 minutes Pragnesh Padya from Zylam investments Please go ahead. 1:07:08 1 hour, 7 minutes, 8 seconds Hi. Yeah, my questions are being answered. Thank you for the opportunity. Thank you. 1:07:14 1 hour, 7 minutes, 14 seconds Congratul Agarwal from Step Trade Capital. Please go ahead. 1:07:24 1 hour, 7 minutes, 24 seconds Hello. Yeah. Am I aud? Yes, please go ahead. 1:07:30 1 hour, 7 minutes, 30 seconds Yes sir. Congratulations for the good set of number. So my question is uh my all the questions are already answered. 1:07:38 1 hour, 7 minutes, 38 seconds My one question is can you make the revenue bio circulation for me quality power and endoc. 1:07:49 1 hour, 7 minutes, 49 seconds For the annual year uh quality power equipments and projects put together is 1:07:55 1 hour, 7 minutes, 55 seconds about uh 246 crores. Uh me is 318 crores and endoc is 468 crores. 1:08:06 1 hour, 8 minutes, 6 seconds Okay. And can you give the operating margin for uh I do not have uh with me the operating 1:08:14 1 hour, 8 minutes, 14 seconds margin but yes I can give you an EIT margin. The epic margin of uh quality power is 33%. 1:08:22 1 hour, 8 minutes, 22 seconds Uh of quality power projects is 21% of mehu annualize is 15%. At endbox it is 1:08:29 1 hour, 8 minutes, 29 seconds 23% taking in uh taking into account that uh accounting uh anomaly. Okay. 1:08:36 1 hour, 8 minutes, 36 seconds Without that they would be again close to 29 30%. Okay. Thank you so much. Thank you. 1:08:44 1 hour, 8 minutes, 44 seconds Thank you. 1:08:46 1 hour, 8 minutes, 46 seconds Next question is from the line of Janam Doohi from Chris PMS. Please go ahead. 1:08:52 1 hour, 8 minutes, 52 seconds Yeah, congratulations on a good set of numbers. Uh so just wanted to understand like as you are setting up a new facility in Turkey. So as you are 1:09:01 1 hour, 9 minutes, 1 second alluding upon uh there's a difference between the uh semiconductor cost as a whole uh for if we source it from in 1:09:10 1 hour, 9 minutes, 10 seconds India and if we source it in Turkey. So could you explain like what's the difference there? 1:09:17 1 hour, 9 minutes, 17 seconds The semiconductors in India are not cheap. Uh semiconductors in India are still evolving. There are very few players and the high power is still not 1:09:24 1 hour, 9 minutes, 24 seconds being built. I think we are taking our baby steps into that uh sector. The largest semiconductors are available either from European, Japanese or 1:09:33 1 hour, 9 minutes, 33 seconds Chinese players. Uh the difference in discounts say for a for $100,000 and 10 1:09:39 1 hour, 9 minutes, 39 seconds million can be as high as 50%. So in your pricing of your products if you are able to buy like a $10 million or a $50 1:09:47 1 hour, 9 minutes, 47 seconds million kind of a volume you would at sometimes get 40 50% discount and that is what is a real mode. So when you 1:09:55 1 hour, 9 minutes, 55 seconds start scaling up your purchase of semiconductors your margin start coming in. 1:10:00 1 hour, 10 minutes So uh the the it's all the same guys it's a Japanese Europeans and Chinese. 1:10:07 1 hour, 10 minutes, 7 seconds Understood. Understood. Fair enough. And uh just if you could like uh uh u provide the details on the order bid pipeline separately for me and quality. 1:10:19 1 hour, 10 minutes, 19 seconds So that would help us uh just understand. 1:10:22 1 hour, 10 minutes, 22 seconds Uh sir I I we don't have those data available off hand. Uh uh I'm sorry I don't have it but I think it'll be in few thousand cr. 1:10:32 1 hour, 10 minutes, 32 seconds Okay. It's just bits. Got it. Got it. Thank you. Thank you. Thank you. Thank you. 1:10:40 1 hour, 10 minutes, 40 seconds Next question is from the line of Anik Jail from Yes Securities. Please go ahead. 1:10:45 1 hour, 10 minutes, 45 seconds Yes sir. So one question is uh the other income has increased this quarter versus last quarter. So I thought that since Turkeykey's currency is largely stable 1:10:53 1 hour, 10 minutes, 53 seconds now. So is there any hedging related income that has came in this quarter or would that be going forward or what kind of numbers should be assumed while 1:11:02 1 hour, 11 minutes, 2 seconds forecasting the other income? So that is question one. 1:11:07 1 hour, 11 minutes, 7 seconds Uh sir in other expenses income other income the other in okay the other income 1:11:14 1 hour, 11 minutes, 14 seconds includes uh interest from deposits and also the foreign exchange gain of uh 16 crores. 1:11:24 1 hour, 11 minutes, 24 seconds Okay. Okay. Understood. And second question is uh maybe a bookkeeping question only. You also have some 1:11:33 1 hour, 11 minutes, 33 seconds associate income. So is that mainly related to the Suko electric acquisition or has Nabiski started giving us some 1:11:40 1 hour, 11 minutes, 40 seconds revenues and what could be the run for future waters? 1:11:45 1 hour, 11 minutes, 45 seconds So S so we were able to only consolidated about 3 months post our tech takeover on Jan 5th. So it's a very small number at this moment. It will start scaling up in a couple of years. 1:11:55 1 hour, 11 minutes, 55 seconds Uh uh the guys in NESKI are still in technology sphere. The numbers are very very po small. It's less than a C. uh but uh that is something that we are 1:12:03 1 hour, 12 minutes, 3 seconds building upon and with regards to your question on other income we still have lot of cash so the cash generated uh 1:12:10 1 hour, 12 minutes, 10 seconds income would would keep turning up that is on interest on deposits understood sir and if I can squeeze in uh one more I think we discussed on the 1:12:19 1 hour, 12 minutes, 19 seconds margin that uh the pricing can take a few months or maybe a quarter to um 1:12:26 1 hour, 12 minutes, 26 seconds stabilize so since you do not have any kind of price variation clauses so how you are managing the commodity cost inflation which has came up in last 1:12:35 1 hour, 12 minutes, 35 seconds couple of months. So is there is is there a possibility that uh our Q1 margins can see some kind of depth just 1:12:43 1 hour, 12 minutes, 43 seconds because of uh the relationship I I believe the entire industry I I believe I believe the entire industry any not 1:12:49 1 hour, 12 minutes, 49 seconds factored in uh but I believe Q1 Q2 can be uh can be hit but as I said we are sitting at 33% margins in some of the 1:12:56 1 hour, 12 minutes, 56 seconds high voltage product line so if there is a dip you know it is it is not going to be very huge uh the volume growth is 1:13:04 1 hour, 13 minutes, 4 seconds still there uh we have a lot of international orders in new emerging sectors which are coming at also better margins. So we do not see a a gloomy 1:13:13 1 hour, 13 minutes, 13 seconds picture gloomy picture yet a couple of percentage here there can be expected uh we still don't know because you know the 1:13:21 1 hour, 13 minutes, 21 seconds the the war is still not over and every day is a new story. 1:13:26 1 hour, 13 minutes, 26 seconds Understood sir. So by any chance have you started to interrupt Mr. Jane may please request you to rejoin the queue for the followup sir. Thank you. 1:13:35 1 hour, 13 minutes, 35 seconds Next question is from the line of P from city family office. Please go ahead. 1:13:41 1 hour, 13 minutes, 41 seconds U so mostly my questions have been answered. I was just uh wondering in terms of like if my understanding is correct. FI27 is like more of a 20% 1:13:50 1 hour, 13 minutes, 50 seconds growth year for us. Then 28 is when we see more than like a 50% type growth because we're following that S-curve journey and there could be some 1:13:57 1 hour, 13 minutes, 57 seconds near-term margin impact because of um the shortages that we are seeing. Is that correct? Correct. 1:14:05 1 hour, 14 minutes, 5 seconds Got it sir. Nothing else from other special answer. Thank you. 1:14:13 1 hour, 14 minutes, 13 seconds Next question is from the line of Propad Desai from Electrum Capital. Please go ahead. 1:14:20 1 hour, 14 minutes, 20 seconds Hi sir, congratulations on good set of numbers. So my question was how are the margins on this power electronic converter? 1:14:31 1 hour, 14 minutes, 31 seconds I just told you we are starting off at this moment at the bid level between 10 and 12%. Uh we anticipate it can go to 1:14:38 1 hour, 14 minutes, 38 seconds 17% on volume. uh but also we have to understand the base at which we are talking 10% on say something like 145 1:14:45 1 hour, 14 minutes, 45 seconds million of converter uh uh what we say it is still sizable numbers as uh margins even at this moment because the 1:14:53 1 hour, 14 minutes, 53 seconds volume is larger and so this margins would be like including the software part also right correct 1:15:01 1 hour, 15 minutes, 1 second okay yeah that was it thank you 1:15:08 1 hour, 15 minutes, 8 seconds next question is from the line of Naman Permar from Nveshai Investments. Please proceed. 1:15:14 1 hour, 15 minutes, 14 seconds Yeah, good afternoon sir. Thank you so much for the opportunity. Firstly, I wanted to know the cash flow of the NEO 1:15:22 1 hour, 15 minutes, 22 seconds and NW if it's possible for the current quarter and FY26. 1:15:30 1 hour, 15 minutes, 30 seconds M will pass the question for a few minutes till we we finish the question. 1:15:35 1 hour, 15 minutes, 35 seconds My my colleagues will try to get the data till then. 1:15:38 1 hour, 15 minutes, 38 seconds Okay. Understood. Secondly on the how is the performance on the sukruth is overall after the acquisition and 1:15:46 1 hour, 15 minutes, 46 seconds currently how it's going how much currently the sut is going on. 1:15:54 1 hour, 15 minutes, 54 seconds So uh we have turned around they have stopped losing money. Uh their losses compared to last year is half because we stopped losing money. uh we are 1:16:03 1 hour, 16 minutes, 3 seconds anticipating at least about 70 75% growth this year uh without losing money because we are building the team and uh technology out there. Uh we will start 1:16:12 1 hour, 16 minutes, 12 seconds scaling it up uh over the next two years. At this moment it's a new transition, new management. Uh we are allowing them to take the time to before they start scaling up aggressively. 1:16:23 1 hour, 16 minutes, 23 seconds Okay. Understood. 1:16:25 1 hour, 16 minutes, 25 seconds My colleague would like to answer the cash flow question. Yeah. 1:16:30 1 hour, 16 minutes, 30 seconds Uh regarding mehu cash flow uh after operating profit we have the 45 crores and after changes in operating 1:16:39 1 hour, 16 minutes, 39 seconds activities our net cash flow is 32 crores and cash flow from investing activity is uh we have expended 20 1:16:47 1 hour, 16 minutes, 47 seconds crores for the investment in uh PPE and uh the cash flow from financing activity 1:16:55 1 hour, 16 minutes, 55 seconds is 13 crores. So cash and cash equivalent sir 18 crores at me. 1:17:02 1 hour, 17 minutes, 2 seconds Okay. And for endox. 1:17:19 1 hour, 17 minutes, 19 seconds Thank you. 1:17:23 1 hour, 17 minutes, 23 seconds Next question is from the line of Abijit Singh from systematics. Please go ahead. 1:17:29 1 hour, 17 minutes, 29 seconds Yeah, thank you for the opportunity. First question is on the order inflow that we received in the last quarter of 600 growth. Could you give a break up of the 1:17:37 1 hour, 17 minutes, 37 seconds order inflow in terms of segments and geographies like HBDC, BS uh etc. 1:17:44 1 hour, 17 minutes, 44 seconds So the order inflow I stand corrected is about 870 crores last quarter and not 600 because we also executed 300 crores 1:17:52 1 hour, 17 minutes, 52 seconds of orders last quarter. Uh so we had a fantastic quarter from the perspective of order uh intake. uh most of the order 1:18:00 1 hour, 18 minutes intake came from quality power and endoc came with a larger orders on uh energy storage and automation whereas quality 1:18:09 1 hour, 18 minutes, 9 seconds power delivered on HBDC and uh data center businesses. Meu has been traditionally with the high voltage interconnecting substations at 400 and 1:18:18 1 hour, 18 minutes, 18 seconds 220. Uh this uh next few quarters is when their GIS product line would kick in and uh the GIS I would say 1:18:26 1 hour, 18 minutes, 26 seconds monetization would start happening in about a year's time. 1:18:30 1 hour, 18 minutes, 30 seconds Right. And sir uh so this accounting entry that we did for 1:18:36 1 hour, 18 minutes, 36 seconds indox of 2.7 million uh sir does it it it obviously hits our other expense line 1:18:44 1 hour, 18 minutes, 44 seconds does it also hit any other line item like let's say revenue or other income. 1:18:48 1 hour, 18 minutes, 48 seconds Do we have an entry on that uh on revenue and other income as well from only other expenses impacted because of that entry? 1:18:58 1 hour, 18 minutes, 58 seconds Uh I think to the best of my knowledge it is only the it is only a provision adjustment under other income and nothing more. 1:19:05 1 hour, 19 minutes, 5 seconds Yeah. Yeah. 1:19:07 1 hour, 19 minutes, 7 seconds And what about the last quarter? Did we have a similar uh India related entry in the last quarter as well which led to the bump up of uh the margin? 1:19:18 1 hour, 19 minutes, 18 seconds Correct. 1:19:22 1 hour, 19 minutes, 22 seconds Okay. That is but if you look at it a bit at a at a console level these are these are just indexation numbers at a console level 1:19:31 1 hour, 19 minutes, 31 seconds the AITA at endock stands at about 32% on stable currency terms and all the money is hedged there so we 1:19:40 1 hour, 19 minutes, 40 seconds do not have any change in margins of profit profess 1:19:49 1 hour, 19 minutes, 49 seconds uh on annual basis it was truly surprising for me the upside so conduct ratulations to the entire team on such good work. Thank you. Thank you. 1:19:59 1 hour, 19 minutes, 59 seconds Thank you. 1:20:01 1 hour, 20 minutes, 1 second Management, do you want to share the cash flow for endoc 1:20:13 1 hour, 20 minutes, 13 seconds uh just a minute just one minute before if you could take any other question in dollar terms I'm just telling you? 1:20:19 1 hour, 20 minutes, 19 seconds Okay sir. Next question is from the line of Nakul Gupta from Shikhar G advisor. Please go ahead. 1:20:29 1 hour, 20 minutes, 29 seconds Good afternoon sir. Good afternoon. Uh congratulations on great set of numbers. 1:20:33 1 hour, 20 minutes, 33 seconds Uh I have just one maximum questions are answered. I have just one question that whether do we have any plans to increase 1:20:41 1 hour, 20 minutes, 41 seconds our stake in endox or maru going forward down the line? 1:20:47 1 hour, 20 minutes, 47 seconds I don't think with endox we have a certain plan at this moment as and when things go ahead in the future we may look into it our focus normally is to 1:20:56 1 hour, 20 minutes, 56 seconds get hold of critical technologies where we can develop I think our strategy has already been clear that if we have to 1:21:04 1 hour, 21 minutes, 4 seconds transfer technology from one location to another to location it would be at a 1 or 2% royalty internally so as long as we have access to technology we do not 1:21:13 1 hour, 21 minutes, 13 seconds intend to increase it we would rather put money into newer technology areas which are uh which would incur much better growth for us than just increase 1:21:22 1 hour, 21 minutes, 22 seconds the EPS at this moment. And for uh the endoc the cash flow for the Q4 is about 136 crores. 1:21:33 1 hour, 21 minutes, 33 seconds That is I think the answer you're looking for. 1:21:36 1 hour, 21 minutes, 36 seconds Thank you so much sir. Thank you so much sir. Thank you. 1:21:43 1 hour, 21 minutes, 43 seconds Next question is from the line of Nlesh Chen from Astud Investment Management Private Limited. Please go ahead. 1:21:50 1 hour, 21 minutes, 50 seconds Um, hi sir, good afternoon and thank you for the opportunity. Uh, my first uh question is uh given we had recently 1:21:58 1 hour, 21 minutes, 58 seconds visited the plant and uh the amount of uh challenges you all had in terms of logistic container shortage. So it's 1:22:06 1 hour, 22 minutes, 6 seconds surprisingly u a good good number of good number for Q4. just wanted to understand how is the situation right 1:22:13 1 hour, 22 minutes, 13 seconds now in terms of logistics and also otherwise supply chain. 1:22:19 1 hour, 22 minutes, 19 seconds So I think if the logistics have cleared us we would have we would have revenueed more. So uh at at this moment we have revenueed less that is why our 1:22:27 1 hour, 22 minutes, 27 seconds inventories have increased. Uh so all in good cost. So I think we can have a good Q1 because of that. 1:22:34 1 hour, 22 minutes, 34 seconds Sure. Um on family plan given we had initial target of June to commission and now we've increase it expanding to 1:22:43 1 hour, 22 minutes, 43 seconds August slightly. uh how do you see terms of audit approvals and all further timeline for that and should we expect 1:22:51 1 hour, 22 minutes, 51 seconds then from next year only the entire capacity to be available or at the end of Q4 we should expect the new plan should be available. 1:23:00 1 hour, 23 minutes If I ask my project manager they are still sticking to the December January for starting uh but I think we have far 1:23:08 1 hour, 23 minutes, 8 seconds more customer pressure to be able to deliver faster. So I think we are we are under pressure from the customer and project end. Uh we would start trial 1:23:16 1 hour, 23 minutes, 16 seconds production and uh start start delivering at least something by the end of the year. 1:23:22 1 hour, 23 minutes, 22 seconds Sure. And lastly on the inorganic side given you mentioned you you're seeing larger deal sizes broadly if you can uh you know identify it for geography and 1:23:30 1 hour, 23 minutes, 30 seconds you know in any new products uh if you're looking to identify power electronic battery storage is 1:23:38 1 hour, 23 minutes, 38 seconds something high voltage power products is second third is uh we are gung about insulators because I believe that is becoming a critical bottleneck for us 1:23:46 1 hour, 23 minutes, 46 seconds across the world any plans of uh manu doing setting up a capacity for uh insulator uh in organic. 1:23:57 1 hour, 23 minutes, 57 seconds All in good time English. All in good time. Sure. Sure. Thank you. All the best. Thank you. 1:24:04 1 hour, 24 minutes, 4 seconds Thank you ladies and gentlemen. Due to posity of time we will take one last question from 1:24:11 1 hour, 24 minutes, 11 seconds the line of Ashok Sha from Iklavia Invesco family office. Please go ahead. 1:24:17 1 hour, 24 minutes, 17 seconds Thanks for taking my question sir. Can you just give some idea then how much or how much competitive or cheaper compared 1:24:24 1 hour, 24 minutes, 24 seconds to Hitachi and JV in international market. 1:24:29 1 hour, 24 minutes, 29 seconds Sir, we believe in the business of niche. We normally do not compete Hitachi, Semens or GE in our business 1:24:36 1 hour, 24 minutes, 36 seconds plans. They are our customers or partners in different market. So I do not have a story how much we are 1:24:43 1 hour, 24 minutes, 43 seconds cheaper. I think we can say how good we relationship we have with them. That is point one. Uh point two is the reason why we do that is our scales are much 1:24:52 1 hour, 24 minutes, 52 seconds lower than them. Uh and the products like say if if I want to get into say high voltage transformer manufacturing for HVDC the problem would happen is 1:25:01 1 hour, 25 minutes, 1 second they themselves have the transformer factory. Why would they buy from outside so what we intend to do is create develop or buy products which they don't 1:25:09 1 hour, 25 minutes, 9 seconds manufacture so that we can package it together to them. So we are complimentary to them and not competing them on strategy and product lines. 1:25:19 1 hour, 25 minutes, 19 seconds So none of this we have competition none of the product we have competition with them. 1:25:25 1 hour, 25 minutes, 25 seconds So mostly if I look at say coil products itachi and seammens do not make this product. G has a very small factory in Brazil but mostly for the Indian 1:25:34 1 hour, 25 minutes, 34 seconds subcontinent Asia and Europe they buy from us. uh with regards to high voltage instrument transformers, I think Hitachi, Semens and G buy more from us 1:25:42 1 hour, 25 minutes, 42 seconds in India than their own facilities because of the volume and scale what we are operating on the battery energy storage. I think they are far far more 1:25:50 1 hour, 25 minutes, 50 seconds expensive and they are not in this kind of markets where we operate. Sometimes it is also the markets we operate and their factories being different. So in 1:25:58 1 hour, 25 minutes, 58 seconds some markets uh they have a product line we may not compete in other markets we may be partners. 1:26:04 1 hour, 26 minutes, 4 seconds So from this our competitor are we getting around 30 to 40% business per year 1:26:16 1 hour, 26 minutes, 16 seconds hello? 1:26:22 1 hour, 26 minutes, 22 seconds Yeah. Yeah. Yeah. Are we getting a 30% business from this GC all this Italian? 1:26:30 1 hour, 26 minutes, 30 seconds No sir. It is not 30%. The data we have as per DRH around one year back is about top 10 customers make 35% of the business. 1:26:43 1 hour, 26 minutes, 43 seconds Hello Mr. Sha. Does that answer your question? 1:26:55 1 hour, 26 minutes, 55 seconds I think we have lost the connection for Mr. Sha. Ladies and gentlemen, we will take this as the last question for the 1:27:02 1 hour, 27 minutes, 2 seconds day. On behalf of Asiti Meta Investment Intermedates, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.