Q1 2027 KEI Industries Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the KEI Industries Q1 FY27 earnings conference call hosted by Nuwama Institutional Equities. As a reminder, all participant lines will remain in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day. Welcome to the KEI Industries Q1 FY27 Earnings Conference Call, hosted by Nuvama Institutional Equities. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Achal Lohade from Nuvama Institutional Equities. Thank you. Over to you.

Speaker #1: Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded.

Speaker #1: I will now hand the conference over to Mr. Achal Lohade from Nuwama Institutional Equities. Thank you, and over to you.

Speaker #2: Yes, thank you. Good afternoon, everyone. On behalf of Nuwama Institutional Equities, we are glad to host the senior management of KEI Industries Limited to discuss the Q1 FY27 earnings.

Achal Lohade: Yes. Thank you. Good afternoon, everyone. On behalf of Nuvama Institutional Equities, we are glad to host the senior management of KEI Industries Limited to discuss the Q1 FY27 earnings. We have with us Mr. Anil Gupta, Chairman Cum Managing Director of the company, Mr. Rajeev Gupta, Executive Director of Finance and CFO. We'll start the call with the opening remarks from the management and then move to Q&A session. Thank you. Over to you, sir.

Speaker #2: We have with us Mr. Anil Gupta, Chairman and Managing Director of the company, and Mr. Rajiv Gupta, Executive Director, Finance and CFO. We will start the call with opening remarks from the management, and then move to the Q&A session.

Speaker #2: Thank you, and over to you, sir.

Speaker #3: Thank you, Achal. Good afternoon. I'm Anil Gupta, CMD of KEI Industries Limited. I hope that you have received a brief of our Q1 results; it should be with you.

Anil Gupta: Thank you, Achal. Good afternoon. I'm Anil Gupta, CMD, KEI Industries Limited. I hope that you must have received a brief of our Q1 results. It must be with you. I'll give a brief. The net sales in Q1 of FY2026, 2027 is INR 3,185 crore, against INR 2,590 crore last year. Growth in net sales is 23%. However, the total wire and cable sale in Q1 has grown by 24.4% against previous year. During Q1, 2026, 2027, operating margin has improved to 12.43%. Margin has improved mainly because of the product mix and operational efficiencies. EBITDA in this quarter is INR 415 crore against INR 297 crore last year. Growth is around 39.5%. EBITDA/net sales margin is 13.04% against 11.49% in the same period previous year. Profit after tax in this quarter is INR 274 crore against INR 195 crore. Growth in the PAT is 40%.

Speaker #3: I'll give a brief. So, the net sales in Q1 of FY26-27 are ₹3,185 crore, against ₹2,590 crore last year. The growth in net sales is 23%.

Speaker #3: However, the total wire and cable sale in Q1 has grown by 24.4% against the previous year. During Q1 26-27, operating margin has improved to 12.43%. Margin has improved mainly because of the product mix and operational efficiencies.

Speaker #3: EBITDA in this quarter is ₹415 crore, against ₹297 crore last year, reflecting a growth of around 39.5%. EBITDA/net sales margin is 13.04% as against 11.49% in the same period previous year.

Anil Gupta: EBITDA/net sales margin is 13.04% against 11.49% in the same period previous year. Profit after tax in this quarter is INR 274 crore against INR 195 crore. Growth in the PAT is 40%. PAT/net sales margin is 8.61% against 7.56% in the previous year same period. Domestic wire and cable sale in this quarter is INR 2,784 crore. It has registered a growth of 29%. Export sale in this quarter is INR 341 crore, against INR 375 crore previous year. The export is impacted because of non-execution of several orders of Middle East because of the war with Iran and also due to the custom duties issues in United States. However, for a full year guidance, the export will be grown substantially and will be in line with our guidance as it's given earlier.

Speaker #3: Profit after tax in this quarter is ₹274 crore, against ₹195 crore. Growth in the PAT is 40%. PAT/net sales margin is 8.61% against 7.56% in the previous year's same period.

Anil Gupta: PAT/net sales margin is 8.61% against 7.56% in the previous year same period. Domestic wire and cable sale in this quarter is INR 2,784 crore. It has registered a growth of 29%. Export sale in this quarter is INR 341 crore, against INR 375 crore previous year. The export is impacted because of non-execution of several orders of Middle East because of the war with Iran and also due to the custom duties issues in United States. However, for a full year guidance, the export will be grown substantially and will be in line with our guidance as it's given earlier. Total sales of extra high voltage cable is INR 186 crore against INR 126 crore in the same previous period. Growth in EHV sale is 47%. The contribution of sale through distribution network, that is B2C, is 59%. Total active working dealer of the company as on 30 June is 2,128.

Speaker #3: Domestic wire and cable sales in this quarter are ₹2,784 crore. This reflects a growth of 29%. Export sales in this quarter are ₹341 crore.

Speaker #3: Out of which, against ₹375 crore in the previous year, the export is impacted because of non-dispatch or non-execution of several orders to the Middle East due to the war between Iran, and also due to the customs duties issues in the United States.

Speaker #3: However, for a full-year guidance, the export will grow substantially and will be in line with our guidance given earlier. Total sales of extra high-voltage cable is ₹186 crore against ₹126 crore in the same period of the previous year.

Anil Gupta: Total sales of extra high voltage cable is INR 186 crore against INR 126 crore in the same previous period. Growth in EHV sale is 47%. The contribution of sale through distribution network, that is B2C, is 59%. Total active working dealer of the company as on 30 June is 2,128. EPC sale is INR 43 crore against INR 61 crore last year. Out of the total sales of EPC, EHV EPC execution sale is INR 18 crore. Sales of stainless steel wire in Q1 is INR 53 crore against INR 51 crore in the previous year same period. Pending order book is INR 4,292 crore, out of which EPC is INR 271 crore, extra high voltage cable INR 793 crore, cable domestic INR 2,400 crore, and export orders pending are INR 822 crore.

Speaker #3: Growth in EHV sales is 47%. The contribution of sales through the distribution network, that is B2C, is 59%. The total active working dealers of the company, as on 30th June, is 2,128.

Speaker #3: EPC sales are ₹43 crore, compared to ₹61 crore last year. Out of the total EPC sales, EHV EPC execution sales are ₹18 crore. Sales of stainless steel wire in Q1 are ₹53 crore, compared to ₹51 crore in the same period of the previous year.

Anil Gupta: EPC sale is INR 43 crore against INR 61 crore last year. Out of the total sales of EPC, EHV EPC execution sale is INR 18 crore. Sales of stainless steel wire in Q1 is INR 53 crore against INR 51 crore in the previous year same period. Pending order book is INR 4,292 crore, out of which EPC is INR 271 crore, extra high voltage cable INR 793 crore, cable domestic INR 2,400 crore, and export orders pending are INR 822 crore. The long-term rating from CARE India Rating and Research and ICRA is AA+, and short-term is A1+. Book value as on 30 June is INR 725.94 against INR 697 as on 31 March 2026. Cash and bank balances as on 30 June is INR 1,054 crore, which includes QIP balance of INR 303 crore. Interest income from bank deposits or others in Q1 is INR 14.59 crore, which is included in the other income.

Speaker #3: Pending order book is ₹4,292 crore, out of which EPC is ₹271 crore, extra high-voltage cable is ₹793 crore, cable domestic is ₹2,400 crore, and export orders pending are ₹822 crore.

Speaker #3: The long-term rating from CARE India Ratings and Research and ICRA is AA+, and the short-term rating is A1+. The book value as on 30th June is ₹725.94, against ₹697 as on 31st March 2026.

Anil Gupta: The long-term rating from CARE India Rating and Research and ICRA is AA+, and short-term is A1+. Book value as on 30 June is INR 725.94 against INR 697 as on 31 March 2026. Cash and bank balances as on 30 June is INR 1,054 crore, which includes QIP balance of INR 303 crore. Interest income from bank deposits or others in Q1 is INR 14.59 crore, which is included in the other income. It was INR 28.77 crore last year, in the previous year. The company had raised INR 2,000 crore through QIP on 28 November 2024, out of which company has utilized QIP fund of INR 1,785 crore up to 30 June, and unutilized amount is INR 303 crore, which includes the interest on FDRs of QIP amount.

Speaker #3: Cash and bank balances as on 30th June are ₹1,054 crore, which includes a QIP balance of ₹303 crore. Interest income from bank deposits and others in Q1 is ₹14.59 crore.

Speaker #3: Which is included in the other income—it was ₹28.77 crore last year, in the previous year. The company had raised ₹2,000 crore through QIP on 28 November 2024.

Anil Gupta: It was INR 28.77 crore last year, in the previous year. The company had raised INR 2,000 crore through QIP on 28 November 2024, out of which company has utilized QIP fund of INR 1,785 crore up to 30 June, and unutilized amount is INR 303 crore, which includes the interest on FDRs of QIP amount. Future outlook. During Q1, the company has incurred a capital expenditure payment of INR 191 crore, out of which Sanand CapEx is INR 180 crore. Total CapEx done in Sanand up to 30 June 2026 is INR 1,722 crore. Another INR 300 crore will be spent in this financial year. Company is expected to incur capital expenditure of approximately INR 600 to INR 700 crore annually for next three to four years. Capacity utilized during Q1 is approximately 72% in cable division, 61% in house wire division, 91% in stainless steel wire division, and 45% in communication cable.

Speaker #3: Out of which, the company has utilized QIP funds of ₹1,785 crore up to 30th June, and the unutilized amount is ₹303 crore, which includes the interest earned on FDRs of the QIP amount.

Speaker #3: Future outlook: During Q1, the company has incurred a capital expenditure payment of ₹191 crore, out of which Sanand Capex is ₹180 crore. Total Capex done in Sanand up to 30 June '26 is ₹1,722 crore.

Anil Gupta: Future outlook. During Q1, the company has incurred a capital expenditure payment of INR 191 crore, out of which Sanand CapEx is INR 180 crore. Total CapEx done in Sanand up to 30 June 2026 is INR 1,722 crore. Another INR 300 crore will be spent in this financial year. Company is expected to incur capital expenditure of approximately INR 600 to INR 700 crore annually for next three to four years. Capacity utilized during Q1 is approximately 72% in cable division, 61% in house wire division, 91% in stainless steel wire division, and 45% in communication cable.

Speaker #3: Another ₹300 crore will be spent in this financial year. The company is expected to incur capital expenditure of approximately ₹600 to ₹700 crore annually for the next 3 to 4 years.

Speaker #2: Capex Q1?

Speaker #3: Capex utilized during Q1 is approximately 72% in the cable division, 61% in the house wire division, 91% in the stainless steel wire division, and 45% in communication cable.

Speaker #3: The Sanand Capex addition is taking time to ramp up, and in the coming months, Capex utilization will increase month after month. So now we also have sufficient Capex to grow in wires and in wires and flexible segments for the next two to three years.

Anil Gupta: Sanand capacity addition is taking time to ramp up, and in coming months, capacity utilization will increase month after month. Now also we have sufficient capacity to grow in wires and flexible segments for next two to three years. Based on the strong demand in domestic and overseas markets, we are scheduled to grow more than 20% in next two to three years. There is a good demand in data centers and related energy segment in power transmission and distribution segment, renewable energy like solar and wind, electric vehicles, infrastructure, railway electrification.

Speaker #3: Based on the strong demand in domestic and overseas markets, we are hopeful to grow more than 20% in the next two to three years. There is good demand in data centers and related energy segments in the power transmission and distribution segment, renewable energy like solar and wind, electric vehicles, infrastructure, railway electrification, and urban infrastructure manufacturing, in both domestic as well as global markets.

Anil Gupta: Urban infrastructure and manufacturing in domestic as well as in global market. Also, the wire demand is strong in housing sector and in commercial spaces. This is a commentary from the management side.

Speaker #3: Also, the wire demand is strong in the housing sector and in commercial spaces. This is just a commentary from the management side.

Anil Gupta: This is a commentary from the management side.

Speaker #2: From market companies.

Operator: From market company.

Achal Lohade: From market company.

Speaker #3: We are very, you know, bullish about the market. We hope that with a strong market outlook in the domestic as well as our export markets, the company will outperform in the domestic as well as export markets.

Rajeev Gupta: We are very bullish about the market. We hope that with a strong market outlook in domestic as well as our export markets, company will outperform in the domestic as well as export markets, and will be continuously growing year after year. Thank you.

Anil Gupta: We are very bullish about the market. We hope that with a strong market outlook in domestic as well as our export markets, company will outperform in the domestic as well as export markets, and will be continuously growing year after year. Thank you.

Speaker #3: And we'll be continuously growing year after year. Thank you.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Natasha Jain from PhillipCapital. Please go ahead.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Speaker #1: If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use their handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take the first question from Natasha Chen of Philip Capital.

Speaker #1: Please go ahead.

Speaker #4: Thank you for the opportunity, sir. My first question is on the wires and cables margin. Now, there has been a sequential sharp rise in wires and cables from 12.4% to 13.6%.

Natasha Jain: Thank you for the opportunity, sir. My first question is on the wires and cables margin. There has been a sequential sharp rise in wires and cables from 12.4% to 13.6%. If I see sequentially the OPEX number, that is pretty much flat, despite we have gone aggressive on the retail side, which is a high margin but a high spend channel. Even full commissioning of the Sanand plant should bring in some cost on the P&L. Could you throw some light here that what line item has remained consistent? Because ideally, OPEX probably should have grown faster, and even on a year-on-year run rate, this is the slowest that we have grown in terms of OPEX.

Speaker #4: If I see sequentially, the OPEX number is pretty much flat, despite the fact that we've gone aggressive on the retail side, which is a high-margin but high-spend channel.

Speaker #4: And then, even full commissioning of the Sanand plant should bring in some cost on the P&L. So could you throw some light here on which line item has remained consistent?

Speaker #4: Because ideally, OPEX probably should have grown faster, and even on a year-on-year run rate, this is the slowest that we've grown in terms of OPEX.

Speaker #3: Look, as we have earlier also highlighted, as the incremental sale is going up, the fixed expenditure does not increase in that way.

Rajeev Gupta: Look, as we have earlier also highlighted that as the incremental sale is going up, the fixed expenditure does not increase in that way. Accordingly, the expenditure versus sale percentage, if you compare it is low, and little bit because of the product mix, it is getting changed. Some export, we have the good margins order. All are reflecting in the P&L of the balance sheet. We have already crossed now hurdle, which was earlier that less than 11% operating margin we were operating. Now that hurdle we have crossed, and we hope that now we will be in the range of 11% to 12% operating margin for the coming year.

Speaker #3: Accordingly, the expenditure versus sale percentage, if you compare, it is low. And a little bit because of the product mix, it is getting changed.

Speaker #3: And for some exports, we have good margins on those orders. So, all are reflecting in the P&L of the balance sheet. We have already crossed the earlier hurdle, where we were operating at less than 11% operating margin.

Speaker #3: So now that hurdle we have crossed, and we hope that now we will be in the range of 11% to 12% operating margin for the coming year.

Speaker #4: So you mentioned that you've gotten some high-margin export orders. I remember in previous calls you've always highlighted that exports are a similar margin business for you as they are in domestic.

Natasha Jain: Sir, you mentioned that you have gotten some high margin export orders. I remember in the previous many calls, you have always highlighted that export is a similar margin business for you as like it is in domestic. Have we now got orders which are better margin?

Speaker #4: So, have we now got orders which are better margin?

Speaker #3: It is always when the demand is strong, and in the global market, the demand is strong. So, a little bit, it is increasing as you also witnessed that earlier our retail sale was close to 51% contribution.

Rajeev Gupta: It is always when the demand is strong, and in the global market, the demand is strong, little bit it is increasing. As you also witnessed that our earlier retail sale was close to 51% contribution, which has now increased to 59%. Put together all, it's all reflecting in the P&L.

Speaker #3: Which is now increased to 59%. So, put together, it is all reflecting in the P&L.

Speaker #4: Got it. And sir, on the wires and cables segment, the next question is: I mean, the value growth has been 25%. But if I see now, given all peer set numbers have come out, I think the industry has grown by 33 to 35%.

Natasha Jain: Got it. Sir, on the wires and cables segment, the next question is, the value growth has been 25%, if I see now, given all peer set numbers have come out, I think the industry has grown by 35%, 33% to 35%. Given pricing growth in itself is north of 28%. I know you don't give volume breakup, but could you at least tell us qualitatively as to are we prioritizing EHV or losing market share on the LV side, or what's happening in the volume mix?

Speaker #4: Given pricing growth in itself is north of 28%, I know you don't give a volume breakup, but could you at least tell us qualitatively whether we are prioritizing EHV or losing market share on the LV side, or what's happening in the volume mix?

Rajeev Gupta: Madam, it is not the case of the losing market share because the demand is very strong. Every sale required the capital. Whatever capital we are having, we have earlier guided also to grow close to 20%+ kind of growth because we are continuously having a CAGR growth target of 20%+. Accordingly, we need to put more and more also on the capital expenditure. Yesterday, we also announced our new capital expenditure in our Vapi factory, that is Salarpur, where we will put around another INR 700 crore to put another factory in next 2 years' time. It will go hand in hand. Whatever capital we are having, we are allocating at the same time towards the growth of the company as well as for the creation of the capital expenditure.

Speaker #3: Ultimately, it is not the case of losing market share because the demand is very, very strong. Because every sale requires capital. So, whatever capital we are having, we have earlier guided also to grow close to 20% plus kind of growth because we are continuously having a CAGR growth target of 20% plus. Accordingly, we need to put more and more also on the capital expenditure.

Speaker #3: And yesterday, we also announced our new capital expenditure in our Bhiwadi factory, that is Salarpur, where we will put around another ₹700 crore.

Speaker #3: To put up another factory in the next two years' time. So it will go hand in hand. So whatever capital we are having, we are allocating at the same time towards the growth of the company as well as for the creation of the capital expenditure.

Speaker #3: So because of that, we are not comparing anybody or anyone else—whatever they are doing. But we are growing, whatever we are. So, growth was more than 20%. Our target was there.

Rajeev Gupta: Because of that, we are not comparing anyone else, whatever they are doing, we are growing whatever we are. Close more than 20%, our target was there, and we are continuously focusing that.

Speaker #3: And we are continuously focusing on that.

Speaker #4: Got it. And sir, Salarpur is 500 plus this additional 700, right? Which takes it to 1,200.

Natasha Jain: Got it. Sir, Salarpur is 500 plus this additional 700, right? Which takes it to 1,200.

Speaker #3: No, no, no. No, no, no, no, no, no, no. This, as in the commentary, Anil said, every year our target is 700 crore rupees per year.

Rajeev Gupta: No. As in the commentary, Anuj said, every year our target is INR 700 crore per year.

Speaker #3: That's right. So, the total capex of Salarpur is ₹700 crore. So, in the current financial year, ₹300 crore will be the remaining capex of Sanand, and another ₹300 crore to ₹350 crore we will use in Salarpur.

Operator: That's right.

Anil Gupta: That's right.

Rajeev Gupta: The total CapEx of Salarpur is INR 700 crore. In the current financial year, INR 300 crore will be remaining CapEx of the Sanand, and another INR 300 crore to INR 350 crore we will use in Salarpur. In the next year also, we will put the balance expenditure in the Salarpur. We will use another capital expenditure in the new lands, maybe in Baroda or maybe in some existing locations.

Speaker #3: So then, in the next year also, we will put the balance expenditure in the Salarpur. And then we will use the another capital expenditure in the new lands.

Speaker #3: That is maybe in Baroda, or maybe in some existing location.

Speaker #4: Got it. And sir, just one quick question, the last one. If I see inventory in your balance sheet, that has also increased sharply. So could you also throw some color in terms of what proportion would be, say, the exports which we could not do sitting in our inventory, versus any inventory gains?

Natasha Jain: Got it. Sir, just one quick question, the last one. If I see inventory in your balance sheet, that has also increased sharply. Could you also throw some color in terms of what proportion would be, say, the exports which we could not do sitting in our inventory versus any inventory gains?

Speaker #3: The measured part of the inventory has increased mainly because the Sanand capacity is ramping up. So, when the factory is new, the full inventory needs to be created over there.

Rajeev Gupta: Major part of the inventory is increased mainly because of Sanand capacity is ramping up. Once the factory is new, the full inventory we need to create over there. Major increase due to only Sanand. Another maybe INR 60 to 100 crore in the finished goods, maybe sometime it is delay in dispatch or in the export case, even though the sale has happened by way of bill, because of the India's adjustment, if the finished goods has not reached, we need to reversal. Because of that, the inventory is highlighting high and the export is low. Actually the sale has happened.

Speaker #3: So the measure increase is due to Sanand only. And another, mainly ₹60 to ₹100 crore in the finished goods—maybe sometimes there is a delay in dispatch, or in the export case, even though the sale has happened by way of bill.

Speaker #3: But because of India's adjustment, if the inventory of finished goods has not reached, we need to do a reversal. So because of that, the inventory is highlighting high and the export is low.

Speaker #3: But actually, the sale has happened.

Speaker #4: Understood, sir. Thank you so much. I have more questions; I'll get back in the queue. Thank you.

Natasha Jain: Understood, sir. Thank you so much. I have more questions. I'll get back in the queue. Thank you.

Speaker #3: Thank you.

Rajeev Gupta: Thank you.

Operator: Thank you. We take the next question from the line of Praveen Sahay from PL Capital. Please go ahead.

Speaker #1: Thank you. We will take the next question from the line of Praveen Sahay from PL Capital. Please go ahead.

Speaker #2: Thank you for the opportunity. Just for further clarification on the margin side—because in the P&L, we can see there is a change in the inventory, which is on the higher side, nearly around ₹600 crore.

Praveen Sahay: Thank you for the opportunity. Further clarification on the margin side, because in the P&L, we can see there is a change in the inventory, which is on the higher side, nearly around INR 600 odd crore. Is there an inventory gain as well you had to book for this quarter Q1?

Speaker #2: So, is there an inventory gain as well? You had a book for this financial—this quarter, Q1?

Speaker #3: See the inventory gain or loss is the part of the every quarter on quarter and year on year because prices are up and prices are down.

Rajeev Gupta: See, the inventory gain or loss is the part of every quarter-on-quarter and year-on-year because prices are up and prices are down. That is not the major factor for the inventory increase. Inventory increase, as I just explained, because of the new factory of the Sanand, where all the raw material and work in process and finished goods is starting to have that kind of capacity. Second, when we do the export sale or institutional sale at the quarter end, there is a reversal if the material has not reached to the customer. Because of that, even though the sale has happened, but as per Ind AS, sale has to reversed. That's why the inventory is looking like this.

Speaker #3: So that is not the major factor in the inventory increase. The inventory increase, as I just explained, is because of the new factory at Sanand, where all the raw material and work-in-process and finished goods are starting to have that kind of capacity.

Speaker #3: And second, when we do the export sale or institutional sale at the quarter end, there is a reversal if the material has not reached the customer.

Speaker #3: So because of that, even though the sale has happened, as per India, the sale has to be reversed. So that's why the inventory is looking like this.

Speaker #2: Okay, sir. Second question related to Sanand: how much is the Sanand contribution for this quarter, or what are you expecting for FY27?

Praveen Sahay: Okay. Second question related to Sanand. How much of the Sanand contribution for this quarter or what you are expecting for FY27?

Speaker #3: So, Sanand Phase One capacity has already reached 50% utilization as of today, and in the coming months, it will ramp up further from there.

Rajeev Gupta: Sanand phase I capacity has already reached to 50% utilization as on today, and in coming months it will ramp up further from there.

Speaker #2: So just to referring to your you know the media interaction. Sir has highlighted nearly around 3000 odd crore of additional revenue from the Sanand for this financial year.

Praveen Sahay: Just to referring to your media interaction. Sir has highlighted nearly around INR 3,000 odd crore of additional revenue from the Sanand for this financial year. This financial year you are looking for INR 3,000 from the Sanand, and how is that?

Speaker #2: So this financial year, you are looking for 3,000 from the Sanand, and how is that?

Speaker #3: No, no. Actually, in the media interaction, it was a little bit of a slip of the tongue. We expect around ₹1,500 to ₹2,000 crore in revenue from Sanand in this financial year.

Anil Gupta: No, actually, in media interaction, actually it was a little bit of a slip of tongue. We expect around INR 1,500 to 2,000 crore revenue from Sanand in this financial year, which will come into contribution in FY27.

Speaker #3: Which will come in the contribution in this particular, in FY27.

Speaker #2: But the overall growth, Praveen, will be more than 20% because, as you see, when the new factory is there, there are a lot of challenges for manpower, then machine, then the other environmental factors.

Rajeev Gupta: The overall growth, Praveen, will be more than 20%, because as you see when the new factory is there is lots of challenges for manpower, then machine, then the other environmental factor. That's how it is taking time and month after month, the production is getting increased over there.

Speaker #2: So that's how it is. It's taking time, and month after month, the production is increasing over there. Okay. Thank you, sir, and all the best.

Praveen Sahay: Okay. Thank you, sir, and all the best.

Speaker #1: Thank you. Participants who wish to ask a question, please press star and one. We will take the next question from the line of Raman K.V. from Sequined Investments.

Operator: Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Raman KV from Sequent Investments. Please go ahead.

Speaker #1: Please go ahead.

Speaker #2: Hello, sir. Can you hear me?

Raman Venkata Kerti: Hello, sir. Can you hear me?

Speaker #3: Yes, yes.

Rajeev Gupta: Yes.

Raman Venkata Kerti: Sir, with respect to Sanand, we have already spent around close to INR 1,700 crores for the CapEx, and we will be spending another INR 300 crores. You initially guided that we can do from Sanand facility around INR 6,000 crores of revenue. Am I right?

Speaker #2: Sir, with respect to Sanand, we have already spent around close to ₹1,700 crore for the capex, and we will be spending another ₹300 crore.

Speaker #2: You initially guided that we can do around ₹6,000 crores of revenue from the Sanand facility. Am I right? Yes, sir. So, I just want to understand, in Sanand, what kind of products are we catering to? And in phase two, for which you will be spending an additional ₹300 to ₹350 crores this year?

Rajeev Gupta: Yes, sir.

Raman Venkata Kerti: Yes, sir. I just want to understand in Sanand what kind of products are we catering to, and phase two, in which we will be spending additional INR 300 to 350 crore this year, are we planning to add the existing capacity or are we planning to add new high margin cable and wires capacity?

Speaker #2: Are we planning to add to the existing capacity, or are we planning to add new high-margin cable and wires?

Speaker #3: Sanand project—Sanand project is not yet completed. Phase one has been completed; that is for low voltage and medium voltage power cable. Then we added the machinery over there, which is operational now in the second quarter, for the electron beam cable.

Rajeev Gupta: Sanand project not yet completed. Phase one has completed, that is for low voltage and medium voltage power cable. We added the machinery over there, which is operational now in Q2 for the electron beam cable. Now we are in the execution for the Extra High Voltage power cable, for which we are making a 152-meter tall tower over there. By March 2027, our Extra High Voltage power cable project also will get commissioned. By next year, the full capacity will be available and close to overall capacity in the next financial year, 70% to 75%, we will be in a position to utilize for next financial year.

Speaker #3: And now we are in the execution phase for the extra high voltage power cable, for which we are making a 152-meter tall tower over there.

Speaker #3: So by March 2027, our extra high voltage power cable project also will get commissioned. So by next year, the full capacity will be available.

Speaker #3: And close to overall capacity, in the next financial year, 70 to 75% we will be in a position to utilize—for next financial year.

Speaker #2: So, the entire ₹300 crore will be spent on the extra high voltage cable.

Raman Venkata Kerti: The entire INR 300 crore will be spent on the Extra High Voltage cable?

Speaker #3: No, no. It is a part of the project, na. The total cost of the project was ₹2,000 crore.

Rajeev Gupta: No, it is a part of the project. The total cost of the project was INR 2,000 crore.

Speaker #2: Okay.

Speaker #3: So already, we have spent ₹1,722 crore, and the balance remaining will be spent in the coming six months.

Raman Venkata Kerti: Okay.

Rajeev Gupta: Already we spent INR 1,722 crore and balance remaining will be spent in the coming six months.

Speaker #2: Just a follow-up here. You said around 70% to 75% utilization you will try to achieve next year. That closely translates to ₹4,000 crores of revenue.

Raman Venkata Kerti: Just a follow-up here. You said around 70% to 75% utilization you will try to achieve next year. That closely translates to INR 4,000 crore of revenue. Is my calculation right?

Speaker #2: Is my calculation right?

Speaker #3: Yes. Yes, yes.

Rajeev Gupta: Yes.

Speaker #2: Okay, understood. And sir, with respect to the margins, in the earlier guidance you mentioned that there was a change in the product mix which led to the margin expansion.

Raman Venkata Kerti: Okay. Understood. Sir, with respect to the margins, in the earlier guidance you mentioned that there was change in product mix which led to the margin expansion. Is it because there was a good amount of contribution from extra high voltage cable, or can you just specify what kind of product led the margin expansion?

Speaker #2: Can we is it because we had the there was a good amount of contribution from extra high voltage cable or can you just be can you just specify what kind of product led the margin expansion?

Speaker #3: Yes, it is a mix of three, four things. One is that extra high-voltage power cable contribution has increased. Second is the overall retail dealer distribution contribution has increased.

Rajeev Gupta: Yes. It is a mix of three, four things.

Rajeev Gupta: Yes. It is a mix of three, four things. One is Extra High Voltage power cable contribution has increased. Second is the overall retail dealer distribution contribution has increased. Because of the top line higher, the expenditure versus sales ratio has gone down. It's a combination of three, four things.

Rajeev Gupta: One is Extra High Voltage power cable contribution has increased. Second is the overall retail dealer distribution contribution has increased. Because of the top line higher, the expenditure versus sales ratio has gone down. It's a combination of three, four things.

Speaker #3: And because of the top line being higher, the expenditure versus sales ratio has gone down. So it's a combination of three or four things.

Speaker #2: And sir, just a follow-up here. What will be the incremental margin, if you can give a ballpark figure, when we are producing—when we are selling an extra high voltage power cable versus low and medium power cable?

Raman Venkata Kerti: Sir, just a follow-up here. What will be the incremental margin, if you can give a ballpark figure, when we are selling Extra High Voltage power cable versus low and medium power cable?

Speaker #3: For extra high voltage, the margin—operating margin—was close to 15%. As compared to low voltage and medium voltage power cable, institutional side was 10.5% and retail side was 11%, and export was more than 11%.

Rajeev Gupta: Our Extra High Voltage operating margin was close to 15%, as compared to low voltage and medium voltage power cable. Institution side was 10.5% and retail side was 11%, and export was more than 11%.

Speaker #2: So, out of this 6,000 crores of revenue expected from Sanand, can you give us a split between how much can we do with respect to extra high voltage?

Raman Venkata Kerti: Out of this INR 6,000 crore of revenue expecting from Sanand, can you give a split between how much can we do with respect to extra high voltage? I just want to understand.

Speaker #2: I just want to understand.

Speaker #3: 1,300. 1,300 crore capacity belongs to extra high voltage power cables, and the balance is for low voltage and medium voltage and electron beam cables.

Rajeev Gupta: INR 1,300 crore capacity belong to extra high voltage power cable, and balance for low voltage and medium voltage and electron beam cable.

Speaker #2: And sir, with respect to the ₹700 crore capex every year which you want to do, is it on the extra high voltage side, or—I just want to understand the market of extra high voltage?

Raman Venkata Kerti: Sir, with respect to the INR 700 crore CapEx every year, which you want to do, is it on the extra high voltage side? I just want to understand the market of extra high voltage.

Speaker #3: A new investment will be for low voltage and medium voltage, which we have just announced yesterday. Because extra high voltage power cable capacity, we will be expanding further only here, only itself.

Rajeev Gupta: The new investment will be for low voltage and medium voltage, which we have just announced yesterday.

Rajeev Gupta: The new investment will be for low voltage and medium voltage, which we have just announced yesterday. Extra high voltage power cable capacity, we will be expanding further only here only itself, in Sanand. Whenever we need, we will add more lines here.

Rajeev Gupta: extra high voltage power cable capacity, we will be expanding further only here only itself, in Sanand. Whenever we need, we will add more lines here.

Speaker #3: In Sanand, whenever we need, we will add more lines here.

Speaker #2: And sir, what is the total market opportunity for extra high voltage?

Raman Venkata Kerti: Sir, what is the total market opportunity from extra high voltage?

Speaker #3: As of now, it will be more than ₹3,000 crore.

Rajeev Gupta: As of now, it will be more than INR 3,000 crore.

Speaker #2: Okay. And are you the only player, or is there any competition?

Raman Venkata Kerti: Okay. You are the only player or is there any competition?

Speaker #3: No, there are universal cables also, and there are imports also.

Rajeev Gupta: No, there are Universal Cables also.

Raman Venkata Kerti: Okay.

Rajeev Gupta: There are imports also.

Speaker #2: Understood, sir. Thank you. Thank you so much, sir.

Raman Venkata Kerti: Understood, sir. Thank you. Thank you so much, sir.

Speaker #1: Thank you. Participants who wish to ask a question, please press star and one. We will take the next question from the line of Umang Mehta from Kotak Securities.

Operator: Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Umang Mehta from Kotak Securities. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Hi. Thanks for the opportunity, and congratulations on a strong margin print. Sir, my first question is again on margin: you mentioned product mix and efficiencies in operations.

Umang Mehta: Hi. Thanks for the opportunity, and congrats on a strong margin print. Sir, first question was again on margin. You mentioned product mix and efficiencies in the operations. EHV, sir 5% going to 6% won't move the needle too much, right? Secondly, in terms of operational efficiencies, if you can share some more color. Thirdly, just wanted to check, have you changed anything on wires pricing? You were earlier looking to reduce the discount versus peers. Is that something that is helping your margins?

Speaker #4: So, EHV sir, moving from 5% to 6% won't move the needle too much, right? And secondly, in terms of operational efficiencies, if you can share some more color.

Speaker #4: And thirdly, just wanted to check, have you changed anything on wires pricing? You were earlier looking to reduce the discount versus peers. Is that something that is helping your margins?

Speaker #3: Sir देखिए जैसा मैंने बोला उमंग जी 3 4 things where the pricing he plays a role then the the overall growth of the company and resulting in expenditure versus sales ratio.

Rajeev Gupta: Sir, like I said, Umang, three, four things where the pricing plays a role. The overall growth of the company and resulting in expenditure versus sales ratio. In each and every market, we are trying to build our product well-placed because we are spending in the advertisement, we are pushing through the IPL, so our brand are very popular. That's how our dealer distributor sale is also reflecting from 51%, we have now reached to 59%. Our focus is to shift the market where the lower working capital are there, how we can improve the margin, whether from retail or from exports, and ultimately it is resulting to increase 1%. Now we are in the trajectory for the future where 11% to 12% operating margin we will be operating. Earlier our hurdle was reaching out to 11% plus.

Speaker #3: So, in each and every market, we are trying to build our product well-placed because we are spending on advertisement. We are pushing through the IPL, so our brand is very popular. That's how our dealer/distributor sales are also reflecting—from 51%, we have now reached 59%. So, our focus is to shift to the markets where lower working capitals are there, and how we can improve the margin, whether from retail or from exports. And ultimately, it is resulting in an increase of 1%.

Speaker #3: So now, we are in the trajectory for the future where we will be operating at an 11 to 12% operating margin. Earlier, our hurdle was reaching out to above 11%.

Speaker #3: So now we have crossed that hurdle, actually.

Rajeev Gupta: Now we have crossed that hurdle actually.

Speaker #4: Understood, sir. And sir, the second question was on this growth versus margin trade-off. So I understand, as you come from where you don't want to grow, or maybe from a working capital perspective, you want to restrict growth to a certain percentage.

Umang Mehta: Understood, sir. Sir, second question was on this growth versus margin trade-off. I understand where you come from, where you don't want to grow or maybe from working capital perspective, you want to restrict growth to a certain percentage. In counters where peers are growing faster or where you might be letting go of some business, is it easy to win that back when the situation turns? How do you think about that on competition front?

Speaker #4: In counters where you know peers are growing faster, or where you know you might be losing or letting go of some business, is it easy to win that back when the situation turns?

Speaker #4: How do you think about that comp—I mean, on the competition front?

Speaker #3: Sir, we are very old in this market, and continuously, since the last 15 years, we have been growing at 16 to 17%. Then we started our growth rate at 17 to 18%, then 19 to 20%. Now, we are targeting 20 plus, plus, because we are a debt-free company now, and we are continuously allocating our capital in two parts: one for working capital, and another for capital expenditure.

Rajeev Gupta: Sir, we are very old in this market, continuously since last 15 years, we are growing at a 16% to 17%. We started our growth rate to 17% to 18%, 19% to 20%. Now we are targeting 20 plus class because we are a debt-free company now, and we are continuously allocating our capital in two parts, one for working capital and another for the capital expenditure. Certain discipline and capital allocation need to be there in the company so that long-term goal, sustainable manner we can achieve. That's how we are going ahead with our original plan of which we given you in 2024 while we were raising the QIP. The same kind of growth plan we were maintaining, and we will be maintaining.

Speaker #3: So certain discipline and capital allocation need to be there in the company so that, in a sustainable manner, we can achieve our long-term goal. So that's how we are going ahead.

Speaker #3: With our original plan, which we gave you in 2024 while we were raising the QIP, we are maintaining the same kind of growth plan and will continue to do so.

Speaker #3: So, this kind of discipline we will also be maintaining, and those investors who have been dealing with us for the last five years, or even ten years, know that we are very conservative people.

Rajeev Gupta: This kind of discipline also we will be maintaining, those investors, those who are dealing with us since last five years or even 10 years also. We are very conservative people. Whatever we say, we try to deliver more than that.

Speaker #3: Whatever we say, we try to deliver more than that.

Speaker #4: Got it, sir. Thank you so much, and all the best.

Umang Mehta: Got it, sir. Thank you so much and all the best.

Speaker #3: Thank you Umang ji.

Rajeev Gupta: Thank you, Umang.

Speaker #1: Thank you. We take the next question from the line of Deesha from Srinetra Asset Managers. Please go ahead.

Operator: Thank you. We take the next question from the line of Disha from Trinetra Asset Managers. Please go ahead.

Speaker #5: Good afternoon, sir. Most of my questions have already been answered. Just a few questions from my side. Could you share the current utilization level across stables and wires for this quarter?

[Analyst] (Trinetra Asset Managers): Good afternoon, sir. Most of my questions have already been answered. Just a few questions from my side. Could you share the current utilization level across cables and wires for this quarter? I hope I heard it correct, you said 70% to 75% of utilization would be by this year, right?

Disha Chamria: Good afternoon, sir. Most of my questions have already been answered. Just a few questions from my side. Could you share the current utilization level across cables and wires for this quarter? I hope I heard it correct, you said 70% to 75% of utilization would be by this year, right?

Speaker #5: And I hope I heard it correctly. You said 70% to 75% utilization would be by this year, right?

Speaker #3: No, no, no. First of all, at present, because of the increased capacity at Sanand, our utilization rate is 72%. And for the future, somebody was asking about how much capacity there will be for the next plant, the 6,000 crore plant.

Rajeev Gupta: No. First of all, at present, because of increased capacity of Sanand, our utilization rate is 72%. For the future, somebody was asking that how much capacity will be for the next plant, INR 6,000 crore plant. I was explaining 70% to 75%, we will be utilizing by next year.

Speaker #3: So, I was explaining, 70% to 75% we will be utilizing by next year.

Speaker #5: Okay, for the next year. And so, at what utilization threshold would the company require another major capex cycle beyond this ongoing expansion, as you see the demand clearly coming up?

Operator 2: Okay. For the next year. Sir, at what utilization threshold would the company require another major CapEx cycle beyond this ongoing expansion? Are you seeing the demand clearly coming up?

Disha Chamria: Okay. For the next year. Sir, at what utilization threshold would the company require another major CapEx cycle beyond this ongoing expansion? Are you seeing the demand clearly coming up?

Speaker #3: To maintain a CAGR of 20% plus, we need to continue growth of the capacity also, so for that we have given our guidance to do capital expenditure of ₹600 crore to ₹700 crore year after year.

Rajeev Gupta: For that, we have given our guidance to do the capital expenditure of INR 600 crore to INR 700 crore year after year. We need to grow every year, we need to add the capacity also every year. Whenever we go for a greenfield CapEx, it takes us to complete the process for 2 years actually. Yesterday we announced for the Salarpur project, where we will be investing around INR 700 crore. There also, it will take another 2 years to complete construction, plant machinery, trial run production, like this.

Speaker #3: Because we need to grow every year so then we need to add the capacity also every year. Because whenever we go for a greenfield Capex it takes us to complete the process for the two year actually.

Speaker #3: Like yesterday, we announced for the Salarpur project, where we will be investing around ₹700 crore. So there also, it will take another two years.

Speaker #3: To complete construction, plant machinery trial run production like this.

Speaker #5: And that's one.

Operator 2: That plant will be catering-

Disha Chamria: That plant will be catering-

Speaker #3: Because in the current market, the demand is strong due to the electric vehicle and data center infrastructure boom, and the global demand is also very, very strong.

Rajeev Gupta: In the current market, the demand is strong because of the electrical vehicle data center infrastructure boom, and the global demand is also very strong. Please, you are asking something?

Speaker #3: Yeah, please, were you asking something?

Speaker #5: Yes, sir. I was asking about this new Capex plan that you have announced. That would be for ESG cables, right? You answered that question.

Operator 2: Yes, sir. I was asking about this new CapEx plan that you have announced, that will be for EHV cable, right? You answered that question.

Disha Chamria: Yes, sir. I was asking about this new CapEx plan that you have announced, that will be for EHV cable, right? You answered that question.

Speaker #3: No, no, no. It is for low voltage and medium voltage power cables.

Rajeev Gupta: No. It is for low voltage and medium voltage power cable.

Speaker #5: Got it, sir. And one question on the ESG cables segment side: could you please update how much of the customer approvals or order inflow is coming from ESG, and at what point do you expect that the ESG business will become a meaningful contributor to the consolidated revenue and margins?

Operator 2: Got it, sir. One on the EHV cable segment side. Could you please update how much of this customer approvals or order inflow is coming from EHV? At what point do you expect that EHV business will become a meaningful contributor to the consolidated revenue and margins, and will further increase the margins of the company?

Disha Chamria: Got it, sir. One on the EHV cable segment side. Could you please update how much of this customer approvals or order inflow is coming from EHV? At what point do you expect that EHV business will become a meaningful contributor to the consolidated revenue and margins, and will further increase the margins of the company?

Speaker #5: And will it further increase the margins of the company?

Speaker #3: No, whatever capacity we are adding for extra high voltage power cable, close to 9 to 10% will be the contribution from EHV cables.

Rajeev Gupta: No, whatever capacity we are adding for extra high voltage power cable, close to 9% to 10% will be the contribution from EHV cable.

Speaker #5: Okay, got it, sir. Thanks, sir. That's the summary, sir. Thank you.

Operator 2: Okay, got it, sir. Thanks for the clarity. Thank you.

Disha Chamria: Okay, got it, sir. Thanks for the clarity. Thank you.

Speaker #3: Thank you ma'am.

Rajeev Gupta: Thank you, ma'am.

Speaker #1: Thank you. We will take the next question from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.

Operator: Thank you. We take the next question from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.

Speaker #2: Yeah, sir, thank you for the opportunity. First, in terms of the global markets, if you could talk a little bit about how we are playing across the regions. Where are we in terms of the scale-up?

Achal Lohade: Sir, thank you for the opportunity. First, in terms of the global market, if you could talk a little bit in terms of how we are playing across the regions, where are we in terms of the scale-up? What kind of mix can we expect over the next two, three years in the export segment across different geographies? If you could comment a little bit on that.

Speaker #2: What kind of mix can we expect over the next two to three years within the export segment across different geographies? If you could comment a little bit on that.

Speaker #3: Yes, I'll comment on that. In different markets, we are targeting different sectors. Like in the US, we are steadily working with the oil and gas sector and also with data center projects.

Rajeev Gupta: I'll comment on that. In different markets, we are targeting different sectors. Like in US, we are steadily working with oil and gas sector and also with data centers projects. Now we are also working with some distribution projects in US. Secondly, in Australia, we are mostly working with solar and wind energy projects, and also some manufacturing factory industrial projects as well. In Middle East, our major customer base is oil and gas refineries and upstream facilities there of oil extraction. Majorly oil and gas market is there in Middle East. In Africa, we are working with distribution and transmission utilities, and also the oil refineries. These are the major focus areas in a few of the countries where we are working in our export markets.

Anil Gupta: I'll comment on that. In different markets, we are targeting different sectors. Like in US, we are steadily working with oil and gas sector and also with data centers projects. Now we are also working with some distribution projects in US. Secondly, in Australia, we are mostly working with solar and wind energy projects, and also some manufacturing factory industrial projects as well. In Middle East, our major customer base is oil and gas refineries and upstream facilities there of oil extraction. Majorly oil and gas market is there in Middle East. In Africa, we are working with distribution and transmission utilities, and also the oil refineries. These are the major focus areas in a few of the countries where we are working in our export markets.

Speaker #3: And now we are also working with some distribution projects in the US. Secondly, in Australia, we are mostly working with solar and wind energy projects.

Speaker #3: And also some in the manufacturing factories and industrial projects as well. In the Middle East, our major customer base is oil and gas refineries and upstream facilities for oil extraction.

Speaker #3: So, these are our majorly oil and gas markets in the Middle East. In Africa, we are working with distribution and transmission utilities, and also with the oil refineries.

Speaker #3: So, these are the major focus areas in a few of the countries where we are working in our export markets.

Speaker #2: Are there any possible mix changes you would talk about? Let's say, in three years' time?

Achal Lohade: Any possible mix you would talk about, let's say in three years' time?

Speaker #3: See, it is very difficult to—it is very difficult to determine, you know, product mix, because it keeps on varying. We have a very versatile product range and production facilities.

Rajeev Gupta: See, it is very difficult to determine product mix because it keeps on varying. We have a very versatile product range and production facilities. We are able to adapt to any change in the type of products in our factories as per the market demand. How the market demand emerges is very difficult to predict.

Anil Gupta: See, it is very difficult to determine product mix because it keeps on varying. We have a very versatile product range and production facilities. We are able to adapt to any change in the type of products in our factories as per the market demand. How the market demand emerges is very difficult to predict.

Speaker #3: So we are able to adapt to any change in the type of products in our factories as per the market demand. But how the market demand emerges is very difficult to predict.

Speaker #2: Got it. Sir, the second question I had was with respect to the Sanand plant. Given ₹2,000 crores of Capex, and the ESG and non-ESG mix, how do we look at the asset turn and the total revenue potential from this facility?

Achal Lohade: Got it. Sir, second question I had was with respect to Sanand plant. Given INR 2,000 crore of CapEx and the EHV and the non-EHV mix, how do we look at the asset turn and the total revenue potential from this facility?

Speaker #3: So Achal, earlier we said that this total Rs. 2,000 crore will give us a production of Rs. 6,000 crore. But in our past experience, whenever we go for greenfield projects, after the commissioning of the full project, there is a scope for balancing of equipment.

Rajeev Gupta: Achal, earlier we told that this total INR 2,000 crore will give us a production of INR 6,000 crore. In the past experience, whenever we go for a greenfield project. After the commissioning of the full projects, there is a scope for the balancing of equipment. Then another INR 100, 200 crore we are putting for balancing of equipment, which will give us another INR 1,000 plus crore turnover. The total capacity will reach around INR 7,000 crore within two years' time in Sanand. That's how we executed in the past also. If you see our Chinchpada plant, initially it was only for the wire. Then we added the low tension power cable over there, then we added a few more capacity over there. As of now, this plant is giving us very huge turnover.

Speaker #3: So then another 100 200 crore we are putting for the balancing of for balancing of equipment which will give us the another 1000 plus crore turnover.

Speaker #3: So the total capacity will reach around ₹7,000 crore within two years' time in Sanand. So that's how we executed in the past also. If you see our Chinchpada plant, initially it was only for the wire.

Speaker #3: Then we added the low-tension power cable over there. Then we added a few more capacities over there. So, as of now, this plant is giving us a very huge turnover.

Speaker #3: Approximately ₹225 to ₹250 crore per month turnover. It's coming from the Sanand, the Chinchpada plant. So that's how the balancing of equipment works, actually.

Rajeev Gupta: Approximately INR 225 to 250 crore per month turnover is coming from the Sanand, the Chinchpada plant. That's how the balancing of equipments work actually.

Speaker #2: Got it. Sir if you could just you did make a comment demand is strong but if it is possible to get some more color in the domestic market how the different verticals within the demand drivers are doing if you could call you know talk a little bit on that as well.

Achal Lohade: Got it. Sir, you did make a comment, demand is strong. If it is possible to get some more color in the domestic market, how the different verticals within the demand drivers are doing? If you could talk a little bit on that as well.

Speaker #3: See, major demand is there in India, mainly in the power transmission and distribution sector. And also the power energy user sector, which includes data centers, manufacturing plants, urban infrastructure, and railway infrastructure.

Anil Gupta: See, major demand is there in India, mainly in power generation, transmission, and distribution sector, and also the power energy user sector, which includes data centers, manufacturing plants, urban infrastructure, and railway infrastructure. There is a strong demand in the housing and commercial spaces also. These are the major sectors where the domestic demand is there. Even the thermal power projects are also in strong construction phase. That phase will also be bringing substantial demand in India.

Speaker #3: There is a strong demand in the housing and commercial spaces also. So, these are the major sectors where the domestic demand is there.

Speaker #3: And now even even now even the thermal power projects are also in strong construction phase. So that that phase will that will also be bringing substantial demand in in India.

Speaker #2: Understood. Any of these are particularly doing very well in little bit weak if you could call out a little bit sir on that?

Achal Lohade: Understood. Any of these are particularly doing very well and little bit weak, if you could call out a little bit, sir, on that?

Speaker #3: No, I have no comments on that.

Anil Gupta: No, I have no comments on that.

Speaker #2: Achal always it happens. Because

Rajeev Gupta: Actually, always it happens because it's a rotating demand. Sometimes demand come from transmission, then comes from distribution, then again from the generation. It basically moves on. Sometimes the refinery projects are there, sometimes fertilizer projects are there. The demand is also rotating because in every year, the capital expenditure is rotating from one sector to another sector.

Speaker #4: it's a rotating demand. Sometimes demand come from transmission then comes from distribution then again from the generation. So it's basically move on. So sometime that the the the refinery projects are they are sometime fertilizer projects are there.

Speaker #4: So the demand is also rotating because every year the capital expenditure is rotating from one sector to another sector.

Speaker #2: Fair point. Just one last question from my end, sir, and then we’ll go back to the queue. In terms of demand and supply, we see that practically everybody is adding capacity. How do you see this demand-supply scenario? Is there any risk of overcapacity over the next one to two years, in your opinion, or do you think things will remain pretty tight for the next two years?

Achal Lohade: Fair point. Just last question from my end, sir. We again go back to the queue. In terms of the demand supply, we see that practically everybody's adding capacity. How do you see this demand supply scenario? Is there any risk of overcapacity over next 1, 2 years in your opinion, or things are pretty much tight for next 2 years?

Speaker #3: Sir, whenever there is an addition of capacity, it takes two to two and a half years' time to put up a project.

Rajeev Gupta: Sir, whenever there is an addition of capacity, it takes 2 and a half years' time to put up a project. Another 1 year time for ramping up the production facility. You see in our Sanand plant, we started in 2023. Now almost 3 years is there. The project has commissioned. Still we are ramping up. It takes time. From your angle, you must see that so many projects are coming, but those companies, those who are putting the projects, the construction time of the project is also 2 and a half years to 3 years' time. For utilization of capacity is also 3 to 4 years' time. It is not the case that whatever we put, we will use the capacity only in 1 year.

Speaker #3: Then another one year time for ramping up the production facility. You see, in our Sanand plant, we started in 2023. Now, almost three years are there.

Speaker #3: But so now the project has commissioned. Still, we are ramping up, so it takes time. So, from your angle, you must see that there are so many projects coming.

Speaker #3: But those those companies those who are putting the projects they are putting the projects the construction time of the project is also two and half years to three years time.

Speaker #3: Then, for utilization of capacity, it is also a three to four years' time. So, it is not the case that whatever we put, we will use the capacity only in one year.

Speaker #3: So that's how we are again guiding for the disciplined growth—that 20% plus CAGR growth we will maintain. So we are never targeting a growth of 35% or 40%.

Rajeev Gupta: That's how we are again guiding for the disciplined growth, that 20% plus CAGR growth we will maintain. We are never targeting for a growth of a 35% or 40%. That's how we are having the discipline, and accordingly the market is available.

Speaker #3: So that’s how we are maintaining the discipline. So, accordingly, the market is available.

Speaker #2: Got it, sir. Thank you. I'll fall back in the queue. Thank you.

Achal Lohade: Got it, sir. Thank you. I'll fall back in the queue. Thank you.

Speaker #1: Thank you. We take the next question from the line of Manoj Gori from Aquarius Capital. Please go ahead.

Operator: Thank you. We take the next question from the line of Manoj Gori from Equirus Capital. Please go ahead.

Speaker #5: Yeah, thanks for the opportunity, sir, and congratulations on the strong margin performance during the quarter. So, finally, the barrier of 11% has been broken. My only question to you would be: if you look at the end of the fourth quarter FY26, we were talking about roughly around an 18% volume guidance.

Manoj Gori: Yeah, thanks for the opportunity, sir, and congratulations on strong margin performance during the quarter. Finally, the barrier of 11% has been broken. Sir, my only question to you would be that if you look at the end of Q4 FY26, we were talking about roughly around 18% volume guidance. In the morning, in the media interviews, we said around 25% kind of value growth for the current year, and now we are talking about 20% value growth.

Speaker #5: In the morning, in the media interviews, we said around 25% value growth for the current year. And now we are talking about 20% value growth.

Speaker #3: Sir on so now also now also now also I'm I'm sure that our growth in this financial will be financial year will be more than 25% in financial terms in revenue terms.

Anil Gupta: Sir

Manoj Gori: on bio-based.

Anil Gupta: Sir.

Manoj Gori: If you can clarify.

Anil Gupta: Now also, I'm sure that our growth in this financial year will be more than 25% in financial terms, in revenue terms. Normally, in the interactions, we generally like to be conservative instead of giving too bullish numbers.

Speaker #3: I'm in, but normally in these interactions, we generally like to be conservative instead of giving two bullish numbers.

Speaker #4: Manoj ji, issue क्या है कि जब भी हम कोई percentage बोलते हैं न, आप उसमें दो-तीन percent और add कर देते हो। वो हमारी मुश्किल और बढ़ा देते हो आप उसमें। So that's why we want to be conservative.

Rajeev Gupta: Manoj, the issue is whenever we say a percentage, you add 2% to 3% more to it. You increase our difficulty. That's why we want to be conservative.

Speaker #5: सर, आप outperform करते हैं तो हम भी बढ़ा देते हैं numbers।

Manoj Gori: Sir, if you outperform, we also increase the numbers.

Rajeev Gupta: Sir, you've got 25 out of my mouth. You limit yourself to 25, if you say above that, we won't be able to do it, very frankly. We refuse it right away, it won't be above that.

Speaker #4: अब आपके मुंह से आपने 25 निकलवा लिया। अब आप 25 तक तो सीमित रहो। अब आप उसको ऊपर बोल दोगे, वो हम कर नहीं पाएंगे, very frankly। आज ही मना कर देते हैं उससे ऊपर, होगा नहीं। क्योंकि वो एक discipline नहीं है ना, क्योंकि किसी भी value growth को chase करने के लिए capital required होता है। देखिए, demand is there but it is not the case कि we need to put all our capital only for growth, then how will we maintain future growth if we are not putting the capacity? So we need two types of capital. So that's why we want to be a little bit conservative, but the same kind of growth you will see for the full year as whatever you have seen in quarter one because the demand is there, we have the capacity. But our request to all of you, not to add into that expectation. So that is my humble request to all of you.

Rajeev Gupta: Sir, you've got 25 out of my mouth. You limit yourself to 25, if you say above that, we won't be able to do it, very frankly. We refuse it right away, it won't be above that.

Manoj Gori: Correct.

Rajeev Gupta: It's not a discipline. To change any value growth, capital is required. Demand is there, it is not the case that we need to put all our capital only for growth. How we will maintain a future growth if we are not putting the capacity? We need 2 types of capital. That's why we want to be a little bit conservative, since the same kind of growth you will see for a full year, whatever you have seen in the Q1, the demand is there, we have the capacity. Our request to all of you is not to add into that expectation. That is my humble request to all of you.

Manoj Gori: Correct.

Speaker #2: Okay, sir. But the only...

Manoj Gori: Okay, sir. The only reason why I asked was because if you look at there have been prolonged issues in Middle East. The West Asia crisis definitely would be hurting to some extent on the exports also. Just wanted clarity because of the macro uncertainty. I do understand that the domestic growth opportunities remain very strong and robust. Just for clarity, that question came. Yeah.

Speaker #5: The reason why I asked was because, if you look at it, there have been prolonged issues in the Middle East. So, the West Asia crisis definitely would be hurting to some extent on the exports also.

Speaker #5: So, just wanted clarity because of the macro uncertainty. I do understand that the domestic growth opportunities remain very strong and robust. So just for clarity, that question came here.

Speaker #3: Manoj ji, we also explained in the past that we need to grow—whether that growth comes from exports, from domestic institutions, or from the retail network.

Rajeev Gupta: Manoj, we also explained in the past also, we need to grow. Whether we need to grow from export, from domestic institution or from the retail network, ultimately sale is sale for anyone. Our purpose to focus on all the markets so that if any time any market is having some problem like the Middle East problem is going on, we can compensate our sale from the other market. That is the major focus area where we are trying to build that, whether marketing from export, marketing from domestic or institution. We need to focus all these sectors. We cannot know in advance which sector will do good, which sector will not do good.

Speaker #3: Ultimately, sale is sale for anyone. So, our purpose is to focus on all the markets, so that if at any time any market is having some problem—like the Middle East problem is going on—we can compensate ourselves from the other markets.

Speaker #3: So that is the major focus area where we are trying to build that, whether marketing from export, marketing from domestic, or institution. So we need to focus on all these sectors.

Speaker #3: We cannot know in advance which sector will do good and which sector will not do good. So that's why it is our duty to focus on all these sectors.

Manoj Gori: Correct.

Rajeev Gupta: That's why that is our duty to focus all these sectors. That's how we are continuously doing since last so many years. Your earlier wish was that when we will cross that hurdle of 11%. With all of your blessings, we have crossed that hurdle, and in future we will be operating more than 11% EBITDA margin. That we are very hopeful.

Speaker #3: And that's what we have been continuously doing for so many years. Your earlier wish was that we would cross the hurdle of 11%. With all of your blessings, we have crossed that hurdle, and in the future, we will be operating at more than 11% EBITDA margin.

Speaker #3: That we are very hopeful.

Speaker #5: Sure, sir. Thank you, sir, and wish you all the best. I hope you break many more hurdles like this.

Manoj Gori: Sure, sir. Thank you, sir, and wish you all the best, and I hope you break many more hurdles like this.

Speaker #3: Thank you, Manoj ji. Thank you very much.

Rajeev Gupta: Thank you, Manoj. Thank you very much.

Speaker #1: Thank you. We take the next question from the line of Akshay Thakkar from Fidelity International. Please go ahead.

Operator: Thank you. We take the next question from the line of Akshay Thakker from Fidelity International. Please go ahead.

Speaker #6: Hi sir. Am I audible?

Akshay Thakker: Hi, sir. Am I audible?

Akshen Thakkar: Hi, sir. Am I audible?

Speaker #3: Yes.

Rajeev Gupta: Yes.

Speaker #6: Hi, sir. Congratulations on a very strong margin performance. Just one clarification: In the past, when you have guided for EBITDA margins, you've included other income in the same.

Akshay Thakker: Hi, sir. Congratulations on a very strong margin performance. Just one clarification. In the past, when you have guided for EBITDA margins, you've included other income in the same. Right now when you're saying 11% to 12%, we should read it as EBITDA plus other income, or this is only pure operating EBITDA margins?

Akshen Thakkar: Hi, sir. Congratulations on a very strong margin performance. Just one clarification. In the past, when you have guided for EBITDA margins, you've included other income in the same. Right now when you're saying 11% to 12%, we should read it as EBITDA plus other income, or this is only pure operating EBITDA margins?

Speaker #6: So, right now when you're saying 11% to 12%, should we read it as EBITDA plus other income, or is this only pure operating EBITDA margins?

Speaker #3: So it is the operating margin I am talking about, because you people always evaluate us only on operating margin, and that's how the operating margin we are discussing.

Rajeev Gupta: Sir, it is operating margin I'm talking, because you people always evaluate us only on operating margin, and that's how the operating margin we are discussing.

Speaker #6: Okay, so this doesn't include other income then, right?

Akshay Thakker: Okay. This doesn't include other income then, right?

Akshen Thakkar: Okay. This doesn't include other income then, right?

Speaker #3: Yes sir.

Rajeev Gupta: Yes.

Speaker #6: Okay. Great. And the second sorry to belabor this point but on Sanand you know if you were to like an easy was saying it should do 1500 to 2000 crores this year even if it were to come up you know upon a gradual manner and you know exports will will pick up.

Akshay Thakker: Okay, great. Second, sorry to belabor this point, on Sanand, if you were to, like Anil was saying, it should do INR 1,500 to 2,000 crores this year, even if it were to come up in a gradual manner, exports will pick up. I'm just trying to think that what's the constraint to growth? I think you mentioned working capital a little bit, couple of times in the past and today as well. Just if you could help us understand a little better, because I think what's happening frankly is that Street's extrapolating the metal price increase and thinking growth should be higher, obviously you're doing very well and no complaints there, and it's along the guided lines. Just to understand the constraints to growing faster.

Akshen Thakkar: Okay, great. Second, sorry to belabor this point, on Sanand, if you were to, like Anil was saying, it should do INR 1,500 to 2,000 crores this year, even if it were to come up in a gradual manner, exports will pick up. I'm just trying to think that what's the constraint to growth? I think you mentioned working capital a little bit, couple of times in the past and today as well. Just if you could help us understand a little better, because I think what's happening frankly is that Street's extrapolating the metal price increase and thinking growth should be higher, obviously you're doing very well and no complaints there, and it's along the guided lines. Just to understand the constraints to growing faster.

Speaker #6: I'm just trying to think about what's the constraint to growth. I think you mentioned working capital a couple of times in the past, and today as well.

Speaker #6: Just, you know, if you could help us understand a little better, because I think what's happening, frankly, is that the Street's extrapolating the metal price increase and thinking growth should be higher. And obviously, you're doing very well—no complaints there—and it's along the guided lines. But just to understand the constraints to growing faster.

Speaker #6: 20-25 का जैसे आप कह रहे हो, 25 से ऊपर नहीं होगा, वह 35 क्यों नहीं हो सकता?

Speaker #3: Sir, constraint is basically the capital. You see, whatever capital is needed—sir, I'll tell you, when in a greenfield project, the production ramp-up takes time in terms of manpower and machinery stabilization.

Rajeev Gupta: The constraint is basically the capital.

Anil Gupta: Sir, I'll tell you. In a greenfield project, the production ramp-up takes time in terms of manpower and machinery stabilization. Hence, I said that month after month. If it is a brownfield expansion, it is easier to stabilize. In a greenfield expansion, it has taken time. That is why, month after month, our production ramp-up is coming up, capital allocation is definitely a discipline which Rajeev has talked about. What I'm saying is that we will be growing more than what we are saying, much more than that, we don't want to give very high numbers as a guidance.

Speaker #3: So so hence I said that month after month our new facility if it is a brownfield extension it is easier to you know stabilize but in a green field extension it it is it it has took time taken time that is why you know month after month our production ramp up is coming up and capital allocation is definitely a discipline which Rajiv has talked about and I'm what I'm saying is that we will be growing more than I mean what we are saying much more than that but we don't want to give very very high numbers on on on as a you know as a guidance.

Speaker #6: GMUG. I think that philosophy is very well understood. We would just love to see a little more, you know, aggression on growth. Margin, what you had promised, you have delivered. Margins have come up—very, very happy, and all the best to the team for the upcoming year.

Akshay Thakker: I think that philosophy is very well understood. We just love to see a little more aggression on growth. Margin, what you had promised you have delivered. Margins have come up. Very happy, and all the best to the team for the upcoming years.

Akshen Thakkar: I think that philosophy is very well understood. We just love to see a little more aggression on growth. Margin, what you had promised you have delivered. Margins have come up. Very happy, and all the best to the team for the upcoming years.

Speaker #3: Thank you very much sir.

Rajeev Gupta: Thank you very much, sir.

Speaker #1: Thank you. We will take the next question from the line of Rahul Maheshwari from Ambit Investment Advisors Private Limited. Please go ahead.

Operator: Thank you. We take the next question from the line of Rahul Maheshwari from Ambit Investment Advisors Private Limited. Please go ahead.

Speaker #7: Good afternoon, sir. Excellent execution. Just two questions. First, on wires—can you elaborate on what kind of growth we are witnessing? Also, the dealer contribution has gone up to 59%.

Rahul Maheshwari: Good afternoon, sir. Excellent execution. Just two questions. First, on wires, can you elaborate what kind of growth are we witnessing? Also the dealer contribution has gone to 59%. How much more scope is there? This is first question. On second, can you highlight that big projects, like what the leader is executing on the BharatNet, et cetera, how are we planned in those directions of executing the big order projects of the government? Thanks.

Speaker #7: How much more scope is there? This is the first question. On the second, can you highlight that big projects like what the leader is executing on the BharatNet, etc.?

Speaker #7: How are we planning in those directions for executing the big order projects of the government? Thanks.

Speaker #3: Sir, BharatNet is mainly for optical fiber cable supply and execution. We are not in the manufacturing of optical fiber cables, so that is out of our product range.

Rajeev Gupta: Sir, BharatNet is mainly for optical fiber cable supply and execution. We are not in the manufacturing of optical fiber cables. That is out of our product range. Second question was?

Anil Gupta: Sir, BharatNet is mainly for optical fiber cable supply and execution. We are not in the manufacturing of optical fiber cables. That is out of our product range. Second question was?

Speaker #3: And second question was.

Speaker #7: On the wires, sir, I was mentioning big-ticket-size production.

Rahul Maheshwari: On the wires. Sir, I was mentioning big ticket size production.

Speaker #3: Growth is already more than wire; growth is already more than the cable growth because the construction phase is going on in the country. So overall, the domestic wire and cable business is very, very strong.

Rajeev Gupta: Wire growth is already more than the cable growth because the construction phase is going on in the country. Overall, the domestic wire and cable business is very strong.

Speaker #7: Sure.

Rahul Maheshwari: Sure.

Speaker #3: And and.

Speaker #7: Yep.

Rajeev Gupta: Yeah, please carry on.

Anil Gupta: Yeah, please carry on.

Speaker #3: Yeah please please carry on.

Speaker #7: Yeah, yeah, go ahead, sir. Go ahead.

Rahul Maheshwari: Yeah, go ahead, sir.

Speaker #3: No, no, please—regarding BharatNet, I have already answered that we are not in the production of optical fiber cables. So, we don't produce cables for BharatNet.

Rajeev Gupta: No, please. BharatNet, I have already answered that we are not in the production of optical fiber cable.

Anil Gupta: No, please. BharatNet, I have already answered that we are not in the production of optical fiber cable.

Rahul Maheshwari: Okay.

Rajeev Gupta: We don't produce cables for BharatNet.

Anil Gupta: We don't produce cables for BharatNet.

Speaker #7: And just sir one as a this thing that as you highlighted a lot of times that it requires capital and then it takes time to ramp up the capacity.

Rahul Maheshwari: Just one other thing, that as you highlighted a lot of times, that it requires capital, and then it takes time to ramp up the capacity. If the industry growth rate for next two years is happening at 30% or near about those levels, is it fair to say that you will up your guidance or you will like to maintain at a guidance which you have mentioned conservative at 20% plus?

Speaker #7: But if the industry growth rate for the next two years is happening at 30%, or near about those levels, is it fair to say that you will up your guidance, or would you like to maintain the guidance which you have mentioned as conservative at 20% plus?

Speaker #7: Because yep.

Rajeev Gupta: We will-

Anil Gupta: We will-

Rahul Maheshwari: Yeah.

Speaker #3: We will be growing more than what we are guiding, and we will be at the level of industry standard, but we don't want to give, you know, very high numbers.

Rajeev Gupta: We will be growing more than what we are guiding. We will be to the level of industry standard. We don't want to give very high numbers.

Anil Gupta: We will be growing more than what we are guiding. We will be to the level of industry standard. We don't want to give very high numbers.

Speaker #3: That is not our policy.

Rahul Maheshwari: Sure.

Rajeev Gupta: That is not our policy.

Anil Gupta: That is not our policy.

Speaker #7: Okay. Thank you, sir, and best wishes. Thanks.

Rahul Maheshwari: Okay. Thank you, sir, and best wishes.

Speaker #1: Thank you. We will take the next question from Patanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.

Operator: Thank you. We take the next question from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.

Speaker #6: Hello, sir. Thank you for the opportunity. I have a couple of questions. So, firstly, our gross margin is at, like, a four- or five-year kind of high.

Pathanjali Srinivasan: Hello, sir. Thank you for the opportunity. I have a couple of questions. Firstly, our gross margin is at a four or five year kind of high. I think we were at 25% gross margin back in FY22. Can you tell me if this gross margin level that we are at today is sustainable? Last two, three quarters, we have seen a very sharp improvement in terms of gross margin.

Speaker #6: I think we were at a 25% gross margin back in FY22. So, can you tell me if this gross margin level that we're at today is sustainable?

Speaker #6: In the last two or three quarters, we have seen a very sharp improvement in terms of gross margin.

Speaker #3: Sir, because earlier the EPC portion was higher. Now the EPC portion is not there. Only the pure, pure, pure, pure cable and wire portion is there.

Rajeev Gupta: Sir, because earlier the EPC portion was higher. Now the EPC portion is not there, only the pure cable and the wire portion is there. Because of that and the product mix, and the export and the retail market. If you see the continuous last four quarter, from June onward last year, September, December, March, and this first quarter. Quarter after quarter, whatever we have planned for the next year, we have reached to the situation where we were in the margin range of 11% to 12%. As I explained this, whenever a margin increase of any company, there are three, four leverage. One leverage is the mix of the product, second is the mix of the markets, the expenditure ratio versus sales ratio. All these three are contributing towards the profit and loss. It is not only the one case where the margin has increased.

Speaker #3: This is because of that, and the product mix, and the export and the retail market. So, if you see the continuous last four quarters from June onward—last year, September, December, March, and this first quarter.

Speaker #3: Quarter after quarter, whatever we have planned for the next year, we have reached the situation where we were in the margin range of 11% to 12%.

Speaker #3: As I explained, whenever there is a margin increase for any company, there are three or four types of leverage. One leverage is the mix of the product, then second is the mix of the markets, then the expenditure ratio versus sales ratio.

Speaker #3: So, all these three are contributing towards the profit and loss. It is not only in one case where the margin has increased.

Speaker #7: Hello, sir. That part is understood, sir. Just that, can we expect that gross margin should be in this range? But I get what you're saying.

Pathanjali Srinivasan: No, sir, that part is understood, sir. Just that, can we expect that the gross margin should be in this range? I get what you're saying. Okay, sir.

Speaker #7: Okay sir. Sir then.

Speaker #3: Sir gross margin because as I said that gross margin will be in this range only because but sometimes you see sometimes the volatility in the market by way of the rate or by way of the demand scenario always quarter to half percent margin fluctuates quarter to quarter basis that you will see or you will witness in the past results also.

Rajeev Gupta: Sir, as I said, that gross margin will be in this range only because sometimes you see, sometimes the volatility in the market by way of the rate or by way of the demand scenario, always 0.25% to 0.5% margin fluctuates quarter-to-quarter basis that you will see or you will witness in the past results also. For the full year, it is average out, always. Now we are in the trajectory where we will operate 11% to 12% EBITDA margin. That is operating side.

Speaker #3: But for the full year, it always averages out. So now, we are on the trajectory where we will operate at an 11 to 12% EBITDA margin.

Speaker #3: That is operating side.

Speaker #7: Got it, sir. Sir, I just have a few more questions. I think one of the things you mentioned was that export share of revenue will come back again.

Pathanjali Srinivasan: Got it, sir. Sir, I just have a few more questions. I think one of the things you mentioned was that export share of revenue will come back again. I think you've mentioned this quarter's bit on the weaker side. What would be a target on a full year basis? What would we want to have our export as-

Speaker #7: I think you mentioned this quarter has become the weaker side. What would be a target for the, on a full year basis, what would we want to have for our export?

Speaker #3: Sir, ultimately, as I said, Anil Jiya said that the growth rate will be close to 24–25%. So, the first target figure will be that.

Rajeev Gupta: Sir, the thing, ultimately, as I said, Anil Ji has said that growth rate will be close to 24% to 25%. The first target figure will be that. Out of that, sometimes the export will grow more, sometimes the retail will grow more, sometimes the domestic institution will grow more. It will always happen from sector to sector. Our target to reach export at least 17% to 18% for the current financial year. Even the last financial year also, it was 16%.

Speaker #3: Sometimes, the export will grow more. Sometimes, the retail will grow more. Sometimes, the domestic institution will grow more. This will always vary from sector to sector.

Speaker #3: But our target is to grow exports to reach at least 17 to 18% for the current financial year. Even in the last financial year, it was 16%.

Speaker #3: So that we will be there.

Pathanjali Srinivasan: Got it.

Rajeev Gupta: That we will be there.

Speaker #7: Okay, sir. Sir, just one last question. I wanted to confirm something you mentioned. You said this ₹2,000 crore of capex that we have done, or we are underway, the revenue it can generate is how much? You mentioned, I think I heard it is ₹7,000 crore, but I just wanted to confirm.

Pathanjali Srinivasan: Okay, sir. Sir, just one last question. I wanted to confirm something you mentioned. You said this INR 2,000 crore of CapEx that we have done, or we are underway, the revenue it can generate, how much you mentioned? I think I heard it at INR 7,000 crore, I just wanted to confirm.

Speaker #3: No, Sanand revenue originally was ₹6,000 crore. But in the future, when the project gets completed with a few crores of balancing equipment, we always increase the production facility over there.

Rajeev Gupta: No, Sanand revenue originally was INR 6,000 crore. In future, when the project get completed, with the few INR crore of balancing equipment, we always increase the production facility over there. That's how it will increase to INR 7,000 crore within two years' time. That I mentioned.

Speaker #3: So, that's how it will increase to ₹7,000 crore within two years' time. That I mentioned.

Speaker #7: This is LV and DHV all put together. You're saying ₹2,000 crores will give around ₹6,000 to ₹7,000 crores.

Pathanjali Srinivasan: This is LV and EHV all put together, you're saying INR 2,000 crore will give around INR 6,000 to 7,000 crore, is it so?

Speaker #3: I can, but Rajiv wanted to say that instead of three, as in terms of three, it can go up to four terms. In half time.

Rajeev Gupta: What Rajeev wanted to say that instead of three, except terms of three, it can go up to four times.

Anil Gupta: What Rajeev wanted to say that instead of three, except terms of three, it can go up to four times.

Operator: Three and a half times.

Rajeev Gupta: Three and a half times.

Speaker #7: Okay, okay, okay, sir. Got it, sir. Thank you, sir. Congrats on a very good set of numbers.

Pathanjali Srinivasan: Okay. Got it, sir. Thank you, sir. Congrats on a very good set of numbers.

Speaker #3: Thank you sir.

Rajeev Gupta: Thank you, sir.

Speaker #1: Thank you. We will take the next question from the line of Kulkit Patni from Goldman Sachs. Please go ahead.

Operator: Thank you. We take the next question from the line of Pulkit Patni from Goldman Sachs. Please go ahead.

Speaker #7: Sir, thank you for taking my question. Sir, this has been two quarters where, not just you, but most of the industry has not spoken much about volume growth.

Pulkit Patni: Sir, thank you for taking my question. Sir, this has been two quarters where not you, but most of the industry has not spoken much about volume growth. Revenue growth has been phenomenal. What I'm trying to understand is that your commentary, some of your peers' commentary also on demand has been extremely positive in terms of how they are looking at the outlook. As analysts, are we not looking at the right thing? I'm trying to understand with volume growth not being there, is it just that the nature of the product has changed? Are you doing more high value products and that's how the business is going to set? I'm just trying to understand why that disconnect between volume growth, value growth, and the positive commentary that is coming from you as well as some of your peers.

Speaker #7: And, you know, revenue growth has been phenomenal. What I'm trying to understand is, your commentary and some of your peers' commentary on demand has also been extremely positive in terms of how you are looking at the outlook.

Speaker #7: So as analysts, are we not looking at the right thing? I'm trying to understand—with volume growth not being there, is it just that the nature of the product has changed?

Speaker #7: Are you focusing more on high-value products, and is that how the business is going to be set? I'm just trying to understand why there is that disconnect between volume growth, value growth, and the positive commentary that is coming from you as well as some of your peers.

Pulkit Patni: I'm just trying to understand why that disconnect between volume growth, value growth, and the positive commentary that is coming from you as well as some of your peers. Just help us understand that a little better now.

Speaker #7: Just help us understand that a little better now.

Pulkit Patni: Just help us understand that a little better now.

Speaker #3: Kulkit ji, first of all, why are we talking about value growth? Because the government expenditure budget is maintained in value terms only. So, if in the budget they have allocated ₹11 lakh crore, whatever the prices go up or go down, can this budget expenditure they have fixed for the capital expenditure change?

Rajeev Gupta: Pulkesh, first of all, why we are talking on value growth, because the government expenditure budget maintain in the value terms only. If in the budget they have allocated the INR 11 lakh crore, whatever the price is gone up or gone down, can this budget expenditure they have fixed for the capital expenditure will change? I think it will not change. Same case with the state government also. Same case with the power generation transmission distribution also. Everything, allocation of the budget is there. That's how the value prevails actually. Because of that I have also explained a few in my investor conference why we are reluctant to give the value growth. Even in the past, even if you go back to 2018, 2019, 2020, even in 2017, 2018, continuously the copper price was going down.

Speaker #3: I think it will not change. Same case with the state government also. Same case with the power generation, transmission, and distribution also. Everything, allocation of the budget is there.

Speaker #3: So that's how the value prevails, actually. So, because of that, I have also explained a few points in my universal conference—why we are reluctant to give the value growth.

Speaker #3: Even in the past, even if you go back to 2018–19, 2019–20, even in 2017–18, continuously the copper price was going down, but in spite of that, all the cable companies were growing.

Rajeev Gupta: Despite of that, all the cable companies were growing. Mainly the rationale behind was that the capital expenditure allocation in the budget was in the value. Because of that, we will take the demand from the infrastructure, from the government, from the bridges, railway, transmission, distribution, generation. Everything relate to the value only actually. That is my humble submission.

Speaker #3: Mainly, the rationale behind it was that the capital expenditure allocation in the budget was in the value. So because of that, we will take the demand from the infrastructure from the government, from the bridges, railway, transmission, distribution, generation.

Speaker #3: So everything relates to the value only, actually. So that is my humble submission.

Speaker #7: No fair point sir and and your commentary is reflective of the of the of the strong outlook. I was just trying to understand that like so so your view is in a scenario that that copper prices go down then volume will do the heavy lifting so that the revenue number comes close to where we are thinking it.

Pulkit Patni: No, fair point, sir, and your commentary is reflective of the strong outlook. I was just trying to understand that, your view is in a scenario that copper prices go down, then volume will do the heavy lifting so that the revenue number comes close to where we are thinking it.

Speaker #3: Sir, because if the ₹11 lakh crore government budget is there and the state government budget is ₹6 lakh crore, so that budget will remain as it is, whether the copper price or ammonium price or steel price goes up or down.

Rajeev Gupta: Because if the INR 11 lakh crore government budget is there and the state government budget is INR 6 lakh crore, that budget will remain as it is. Whether the copper price or aluminum price or steel price going up or going down. Because of that, ultimately they spent in the value, not in the volume. Everybody made their balance sheet in the value, not in the volume.

Speaker #3: So because of that, ultimately, they spent in the value, not in the volume. Everybody makes their balance sheet in the value, not in the volume.

Pulkit Patni: Sure.

Speaker #3: So if the capital is available in value terms, it will also go into the order book.

Rajeev Gupta: If the capital is available in the value terms, it will also go into the order book.

Speaker #7: Fair point, fair point. Sure, that is useful, sir. Thank you so much for that.

Pulkit Patni: Fair point. Sure. That is very useful, sir. Thank you so much for it.

Speaker #3: Thank you Kulkit bhai.

Rajeev Gupta: Thank you, Pulkesh bhai.

Speaker #1: Thank you. We will take the next question from the line of Shiram Kapoor from Jefferies. Please go ahead.

Operator: Thank you. We take the next question from the line of Shivam Kapoor from Jefferies. Please go ahead.

Speaker #8: Hi, sir. Thanks for the opportunity. Just want to ask you about your exports bit. So, you just gave a target range of around 17 to 18% for your exports this year.

Shivam Kapoor: Hi, sir. Thanks for the opportunity. Just want to ask you on your exports bit. You just gave a target range of around 17% to 18% of your sales this year to come from exports. Just want to understand that just based on FY26 numbers, that would imply around 30% to 40% growth in FY27 in exports itself. In the first quarter, we've seen a decline actually of around 7% to 8%. Does that mean you're expecting in the balance 9 months to grow at over 50% in exports, especially given same time last year, the balance 9 months also saw 50%+ growth in exports. What gives you that confidence of growing that 50% in this balance 9 months?

Speaker #8: Of your sales this year to come from exports. Just want to understand, you know, that just based on FY26 numbers, that would imply around, you know, 30 to 40% growth in FY27 in exports itself.

Speaker #8: But in the first quarter we've seen it decline actually by, you know, 7–8%. So does that mean you're expecting in the balance nine months to grow at, you know, over 50% in exports, especially given, you know, same time last year the balance nine months also saw 50% plus growth in exports?

Speaker #8: So, is that—you know—what gives you that confidence of growing that 50% in this?

Speaker #3: Yeah, yeah, I think you are right because we could not dispatch a lot of goods in the first quarter because of the Middle East crisis.

Anil Gupta: Yeah, I think you're right because we could not dispatch lot of goods in Q1 because of the Middle East crisis, and shipments were not available, which has started now, but albeit at a high shipping cost. Similarly, US also has opened up, which was stalled. The markets are positive and we will be able to achieve what we are saying.

Speaker #3: And shipments were not available, which has started now, but albeit at a high shipping cost. And similarly, the US has also opened up, which was stalled.

Speaker #3: So, the markets are positive, and we will be able to achieve what we are saying.

Speaker #8: Sir one more humble request to allow for you is that sometimes what happen in the even in the last year when export grows more so some of the analysts says that the if the domestic demand is weak so if the if you see if we need to grow 24 25% whether we grow in export grow in retail grow in institutional market it will be again into the 24 25%.

Rajeev Gupta: Sir, one more humble request to all of you is that sometimes what happened even in the last year, when export grows more, some of the analysts say is that if the domestic demand is weak. If you see, if we need to grow 24%, 25%, whether we grow in export, grow in retail, grow in institutional market, it will be again into the 24%, 25%.

Speaker #8: Right sir. Thanks thank you. Just secondly on you know in your presentation in previous quarters you would normally give that breakup of your sales across you know house wires low tension high tension cables.

Shivam Kapoor: Right, sir. Thank you. Just secondly on, in your presentation in previous quarters, you would normally give that breakup of your sales across house wires, low tension, high tension cables. Maybe this time that breakup was missing. If you could just share, what was your house wire

Speaker #8: But maybe this time that breakup was missing. So if you could just share, you know, what was your...

Speaker #3: No, sir, we cannot give that figure because now the competitor is using those numbers, actually. So that's why we have decided not to go for individual product-wise numbers, actually.

Rajeev Gupta: No, sir, we cannot give that figure because now the competitor was using those numbers actually. That's why we have decided not to go for individual product wise number actually.

Speaker #8: Oh, got it, sir. And just lastly, on the retail sales, which has risen to 59% this quarter, is that a number you see sustaining going ahead? Because there was 40% growth in the first quarter.

Shivam Kapoor: Got it, sir. Just lastly, on the retail sales, which has risen to 59% this quarter, is that a number you see sustainably going ahead? Because 40% growth in Q1, is this growth sustainable? Yeah.

Speaker #8: Is this growth sustainable or, you know, do we—yeah, just, if you could.

Speaker #3: Sir, as I said, we are more focused towards retail, mainly because of lower working capital requirements. But sometimes, when the export order is more, we need to book, so we need to sell to the export market also.

Rajeev Gupta: Sir, as I said, we are more focusing towards retail mainly because of lower working capital requirement. Sometimes when the export order is more, so we need to book, we need to sell to the export market also. This mix can get changed internally, but overall growth rate will remain.

Speaker #3: So this mix can change internally, but the overall growth rate will remain.

Speaker #8: Got it, got it, sir. Just lastly, on your other income, could you explain the drop in your other income from about ₹40 crores to...

Shivam Kapoor: Got it, sir. Just lastly, on your other income, could you explain the drop in your other income from around INR 40 crores?

Speaker #3: Sir, in the last year, other income was mainly because of the QIP and the interest cost.

Rajeev Gupta: Sir, in the last year, other income was mainly because of the QIP, the interest cost.

Speaker #8: Got it.

Shivam Kapoor: Got it.

Rajeev Gupta: QIP money was lying in the FDR. Interest cost was high there.

Speaker #3: QIP money was lying in the FDR, so the interest cost was high there.

Rajeev Gupta: QIP money was lying in the FDR. Interest cost was high there.

Speaker #8: Right. So, what was the other income that we saw in FY26 that is unlikely to sustain in FY27? Got it.

Shivam Kapoor: Right. The other income that we saw in FY26, that is unlikely to.

Rajeev Gupta: Yes

Shivam Kapoor: Sustain in FY27.

Speaker #3: Mainly. Yeah yeah.

Rajeev Gupta: Mainly.

Shivam Kapoor: Got it.

Rajeev Gupta: Yeah.

Speaker #8: Got it, sir. Thank you so much.

Shivam Kapoor: Got it, sir. Thank you so much.

Speaker #3: Thank you very much sir.

Rajeev Gupta: Thank you very much, sir.

Speaker #1: Thank you. We will take the next question from the line of Bhavani from Axis Capital. Please go ahead.

Operator: Thank you. We take the next question from the line of Bhavani from Axis Capital. Please go ahead.

Speaker #8: Yeah, hi sir. Congratulations on a good set of numbers. I just wanted one clarification. What is the kind of price hike we have taken, sir, in Q1?

Bhavani Ji: Hi, sir. Congratulations on good set of numbers. Just wanted one clarification. What is the kind of price hike we have taken, sir, in Q1?

Bhavani Kumawat: Hi, sir. Congratulations on good set of numbers. Just wanted one clarification. What is the kind of price hike we have taken, sir, in Q1?

Speaker #3: Sir price hike it is not a percentage. It is basically on the depend on the how much the copper company content is going up or going down.

Rajeev Gupta: Price hike, it is not a percentage. It is basically depends on how much the copper content is going up or going down. Accordingly, that formula is there. It is not the base case. It is directly depending on the price fluctuation.

Speaker #3: So, accordingly, that formula is there. It is not the base case; it is directly depending on the price fluctuation.

Speaker #8: Understood. And sir, most of the price hike has been passed on, right? The cost inflation has been passed on.

Bhavani Ji: Understood. Sir, most of the prices have been passed on, right? The cost inflation has been passed on.

Bhavani Kumawat: Understood. Sir, most of the prices have been passed on, right? The cost inflation has been passed on.

Speaker #3: Yes yes yes.

Rajeev Gupta: Yes.

Speaker #8: Understood, sir. Understood, sir. Sir, thank you so much for this. Thanks.

Bhavani Ji: Understood, sir. Sir, thank you so much for this. Thanks.

Bhavani Kumawat: Understood, sir. Sir, thank you so much for this. Thanks.

Speaker #3: Thank you Bhavani ji.

Rajeev Gupta: Thank you, Bhavani Ji.

Speaker #1: Thank you. We take the next question from the line of Bharat C. Shah from BCS Capital Ideas Private Limited. Please go ahead.

Operator: Thank you. We take the next question from the line of Bharat C. Shah from BCS Capital Ideas Private Limited. Please go ahead.

Speaker #7: Yeah, namaste Anil ji. Namaste Rajiv ji.

Bharat Shah: Namaste, Anil Ji. Namaste, Rajiv Ji.

Bharat C. Shah: Namaste, Anil Ji. Namaste, Rajiv Ji.

Speaker #3: Namaste Bharat ji.

Rajeev Gupta: Namaste, Bharat Ji.

Speaker #7: Namaste. Now, when we see most things seem to fall in place, we now have better production capacity available with a good runway ahead for growth to capitalize on.

Bharat Shah: Namaste. When we see most things seem to fall in place. We now have better production capacity available, with a good runway ahead for growth to capitalize on. The export situation is also shaping up well, unless Mr. Trump comes up with something peculiar again. Other than that, overall situation looks very healthy there. Given our greater business in value-added products and increasing retailization of our wires business, the size of opportunity continues to keep expanding at a rapid pace. In scenario like this, it is easy to feel overconfident and less worried about probably challenges which may be lurking around. What, in your opinion, could be potential spots of trouble? What can really be a spoiler? May not be a spoiler, but it can dampen, if at all, any issues that worries your mind.

Bharat C. Shah: Namaste. When we see most things seem to fall in place. We now have better production capacity available, with a good runway ahead for growth to capitalize on. The export situation is also shaping up well, unless Mr. Trump comes up with something peculiar again. Other than that, overall situation looks very healthy there. Given our greater business in value-added products and increasing retailization of our wires business, the size of opportunity continues to keep expanding at a rapid pace. In scenario like this, it is easy to feel overconfident and less worried about probably challenges which may be lurking around. What, in your opinion, could be potential spots of trouble? What can really be a spoiler? May not be a spoiler, but it can dampen, if at all, any issues that worries your mind.

Speaker #7: The export situation is also shaping up well, unless Mr. Trump comes up with something peculiar again. But other than that, the overall situation looks very healthy there.

Speaker #7: And given our greater business in value-added products and increasing retailization of our wires business, the size of the opportunity continues to keep expanding at a rapid pace.

Speaker #7: In a scenario like this, it is easy to, you know, feel overconfident and less worried about potential challenges which may be lurking around. What, in your opinion, could be potential spots of trouble, or what can really be a spoiler—maybe not a spoiler, but something that could dampen things? If at all, are there any issues that worry your mind?

Speaker #3: Bharat ji sir what the kind of business we have created with it which with so much of widespread of customer base and in India as well as in different geographies the purpose of creating this kind of base is that we insulate ourselves from any possible impacts risks from any particular geography or territory.

Anil Gupta: Bharat Ji, as what the kind of business we have created with so much of widespread of customer base and in India as well as in different geographies. The purpose of creating this kind of base is that we insulate ourselves from any possible impacts, risks from any particular geography or territory. Even if we have seen blockage from USA, we have seen the wars in Middle East, which led to stoppage of shipments. Still, we have been able to grow from wherever our customer base is there. Risk factors will always be there, nobody knows about in today's time what geopolitics does. Our aim is to remain risk-free in terms of our financial goals and our marketing goals, so that we are spread over in so many countries that we are able to make up our sales from somewhere or the other.

Speaker #3: Even if we have seen, you know, blockade from the USA, we have seen the wars in the Middle East, which led to stoppage of, you know, shipments, but still, we have been able to grow from wherever our customer base is there.

Speaker #3: So, risk factors will always be there; nobody knows about what geopolitical politics may do in today's time. But our aim is to remain risk-free in terms of our financial goals and our marketing goals.

Speaker #3: So that we are spread over so many countries that we are able to make up our sales from somewhere or the other.

Speaker #3: Similarly now we are a debt free company. So to that extent risk of any you know any dent about any some some some markets or some you know lower sales so we are insulated from that.

Anil Gupta: Similarly, now we are a debt-free company, to that extent, risk of any dent about some markets or some lower sales, we are insulated from that. See, you can't have zero risk ever. How do we mitigate the risk? That is what we have been doing.

Speaker #3: So, see, you can't have zero risk ever. But how do we mitigate the risk? That is what we have been doing.

Speaker #7: Absolutely. Although the points have been very, very much in evidence in terms of the prudence with which we have conducted our balance sheet, we have conducted our business, and in a very deliberate way we have continued to grow.

Bharat Shah: Absolutely. All those points have been very much in evidence in terms of the prudence in which we have conducted our balance sheet, we have conducted our business, and in a very calibrated way, we have continued to grow. I understand that external threats or challenges could materialize over which we do not have any real control. Internally, are you seeing any constraints or any issues that need to be mindful of or to be sorted out?

Bharat C. Shah: Absolutely. All those points have been very much in evidence in terms of the prudence in which we have conducted our balance sheet, we have conducted our business, and in a very calibrated way, we have continued to grow. I understand that external threats or challenges could materialize over which we do not have any real control. Internally, are you seeing any constraints or any issues that need to be mindful of or to be sorted out?

Speaker #7: So I understand that external threats or challenges could materialize over which we do not have any real control. But internally, are you seeing any constraints or any issues that need to be mindful of or that need to be sorted out?

Rajeev Gupta: Sir, internally, as we have discussed even in the past few years, where we have highlighted earlier that the risk for the sustainability or for the capital allocation that we have fully addressed, and even for the debt risk, we are fully now the debt-free company. Whatever risk any investor has highlighted to us or internally we in Visakhapatnam, we try to mitigate those risks. Accordingly, we are disciplined ourselves, even though in spite of in this one-hour call, everybody was saying, "Why can't we grow 30% or 35%?" Even though the market is there, the debt can be arranged easily. We are still reluctant to say that we will not grow more than that, only because of the discipline, the proper capital allocation policy. That's how we have learned over a period of time in the past, and it has paid us well also.

Speaker #3: Sir internally as we have discussed even in the past a few years where we have highlighted earlier that the risk for the sustainability or for the capital allocation that we have fully addressed and even for the debt risk we have we have we have fully now the debt free company.

Speaker #3: So whatever risk any investor has highlighted to us or internally we in which are we try to mitigate those risk and accordingly we are disciplined ourselves even though in spite of in this one hour call everybody was saying why can't we grow 30 percent or 35 percent even though the market is there the the debt can be arranged easily but we are still reluctant to say that we will not grow more than that only because of the discipline and the proper capital allocation policy.

Speaker #3: So that is that's how we have learned over a period of time in the past and it has paid us well also. So we will be keeping in our mind that good capital allocation proper risk mitigation and a long term at least for five years sustainable plan business plan we are already guiding you as well as to the complete market and accordingly we are going ahead with that.

Rajeev Gupta: We will be keeping in our mind that good capital allocation, proper risk mitigation, and a long-term, at least for five-year sustainable plan, business plan, we are already guiding you as well as to the complete market, accordingly, we are going at that time.

Speaker #7: Investor confidence call is just going to finish in two or three minutes. And, Rajiv ji, when do we once again cross or touch 30 percent or higher return on capital employed? Will it be in 2027?

Anil Gupta: Investor conference call is just going to finish in two minutes.

Bharat Shah: Rajeev Ji, when do we once again cross or touch 30% or higher return on capital employed? Will it be in 2027, 2028?

Bharat C. Shah: Rajeev Ji, when do we once again cross or touch 30% or higher return on capital employed? Will it be in 2027, 2028?

Speaker #3: Sir, because of the—no sir, no, so because the capital expenditure is going on, so as of now we are having 23–24 percent. And the second question, because our creditors are very low because of the good financial health of the company.

Rajeev Gupta: No, sir. No. Because of the capital expenditure is going on, as of now, we are having 23% to 24%. The second question, because our creditors are very low, it is because of the good financial health of the company.

Speaker #3: So we are buying our metal on cash. Otherwise, if we buy metal against the LP, it will be seeing at least 28 percent as of now itself.

Bharat Shah: Yes.

Bharat C. Shah: Yes.

Rajeev Gupta: We are buying our metal on cash. Otherwise, if we buy metal against the LC, it will be seeing at least 28% as of now itself. Because of the creditors, which was earlier used to be three and a half months, it is now only less than one and a half month.

Speaker #3: Because of the creditors, which earlier used to be three and a half months, it is now only less than one and a half months.

Speaker #7: See, Rajiv ji pooch raha tha 27-28 mein 30 tak ho jana chahiye, isn't it?

Bharat Shah: Rajeev Ji, मैं पूछ रहा था, '27, '28 में 30% हो जाना चाहिए, isn't it?

Bharat C. Shah: Rajeev Ji, मैं पूछ रहा था, '27, '28 में 30% हो जाना चाहिए, isn't it?

Speaker #3: नहीं, नहीं sir, 27-28 में क्योंकि हमने creditor level कम रखा हुआ है ना sir, interest cost बचाते हैं उसमें.

Rajeev Gupta: नहीं, sir, '27, '28 में क्योंकि हमने creditor level कम रखा हुआ है ना, sir. Interest cost बचाते हैं इसमें.

Speaker #7: ठीक है.

Bharat Shah: हाँ, ठीक है।

Bharat C. Shah: हाँ, ठीक है।

Speaker #3: तो अगर creditor level बढ़ा देंगे तो तो immediately हो ही जाएगा, sir.

Rajeev Gupta: अगर creditor level बढ़ा देंगे तो immediately हो ही जाएगा, sir.

Speaker #7: जी, जी, जी, समझ गया मैं. In the last question, in the year of 2017–28, is it possible to think of that? Out of 20,000 crores, or is it just being too greedy?

Bharat Shah: जी, समझ गए मैं।

Bharat C. Shah: जी, समझ गए मैं।

Rajeev Gupta: हाँ।

Bharat Shah: एक last question. In the year of 2027, 2028, is it possible to think of that turnover of INR 20,000 crore, or it is just being too greedy?

Bharat C. Shah: एक last question. In the year of 2027, 2028, is it possible to think of that turnover of INR 20,000 crore, or it is just being too greedy?

Speaker #3: No no no. Sir whatever we are guiding we are guiding accordingly. So and the capacity we are we are created we are not created only for one year.

Rajeev Gupta: No. Sir, whatever we are guiding, we are guiding accordingly. The capacity we are created, we are not created only for one year. It will be created for another two years because the next plan which we announced yesterday, it will take another two years. We need to utilize that capacity year after year.

Speaker #3: It will be created for another two years because the next plan, which we announced yesterday, will take another two years. So we need to utilize the capacity year after year.

Speaker #7: तो 28-23 में होना चाहिए मोटा-मोटा 20,000 का, जो milestone हम plan कर रहे थे।

Bharat Shah: '28, '29 में होना चाहिए मोटा-मोटा INR 20,000 का जो milestone हमने plan कर रखा है।

Bharat C. Shah: '28, '29 में होना चाहिए मोटा-मोटा INR 20,000 का जो milestone हमने plan कर रखा है।

Speaker #3: Sir, हमने आपको 29-30 का ₹25,000 का target दिया है, वो पूरा करके देंगे आपको.

Rajeev Gupta: सर, हमने आपको '29, '30 का INR 25,000 का target दिया है, वो पूरा करके देंगे आपको।

Speaker #7: Ji ji, okay. Thank you, Rajiv ji. Thank you, Arjun ji. And all the very best.

Bharat Shah: जी, okay. Thank you, Rajiv Ji. Thank you, Anil Ji, and all the very best.

Bharat C. Shah: जी, okay. Thank you, Rajiv Ji. Thank you, Anil Ji, and all the very best.

Speaker #3: Thank you. All the best. Thank you very much, sir, for your blessings.

Rajeev Gupta: Thank you. All the best. Thank you very much, sir, for your blessings.

Speaker #1: Thank you. Ladies and gentlemen, with that, we conclude the question and answer session. I now hand the conference over to the management for their closing comments.

Operator: Thank you. Ladies and gentlemen, with that, we conclude the question and answer session. I now hand the conference over to the management for their closing comments.

Speaker #3: Thank you very much for joining this conference call. We are always available to answer any other questions or queries you may have. Thank you so much for joining.

Anil Gupta: Thank you very much for joining this conference call. We are always available to answer any other questions or queries you may have. Thank you so much for joining us.

Speaker #3: Thank you very much sir.

Rajeev Gupta: Thank you very much, sir.

Speaker #1: Thank you sir. On behalf of Nuwama Institutional Equities that concludes this conference call. Thank you for joining us and you may now disconnect your lines.

Operator: Thank you, sir. On behalf of Nuvama Institutional Equities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Achal Lohade: Thank you, sir. On behalf of Nuvama Institutional Equities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 KEI Industries Ltd Earnings Call

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