Q1 2027 Salzer Electronics Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to Salzer Electronics Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentations conclude.

Operator: Ladies and gentlemen, good day, and welcome to Salzer Electronics Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentations conclude. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K. Raman, Chief Financial Officer from Salzer Electronics Limited. Thank you, over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to Salzer Electronics Limited Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentations conclude. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K. Raman, Chief Financial Officer from Salzer Electronics Limited. Thank you, over to you, sir.

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

Speaker #1: I now hand the conference over to Mr. K. Raman, Chief Financial Officer of Salzer Electronics Limited. Thank you, and over to you, sir.

Speaker #2: Good morning, everyone, and thank you for joining us today to discuss the unaudited financial performance for the first quarter, year ended 30th June 2026.

K. Raman: Good morning, everyone. Thank you for joining us today to discuss the unaudited financial performance for Q1 year ended 30 June 2026. I have with me Mr. Rajesh Kumar Doraiswamy, Joint Managing Director; Mr. Sivakumar, Assistant Vice President, Marketing; Mr. Bellary, Assistant Vice President, Business Development; Mrs. Menaka, General Manager, Accounts; Mr. K. M. Murugesan, Company Secretary; and Mr. Jitendra Vakharia, Non-Executive Director, Kaycee Industries. I shall now take you through the consolidated financial performance for the quarter ended June 2026. During the quarter, our revenues increased by 13% year-on-year growth to INR 498 crores from INR 441 crores in the previous corresponding period. This growth was mainly driven by higher demand for industrial switchgear, wires and cables, and building product division. This is mainly due to high demand products like three-phase transformers, wire harness, relays, and new products like contractors, etc.

Speaker #2: I have with me Mr. Rajesh Kumar Doraiswamy, Joint Managing Director; Mr. Sivakumar, Assistant Vice President – Marketing; Mr. Dallari, Assistant Vice President – Business Development; Mrs. Menaka, General Manager – Accounts; and Mr. K.

Speaker #2: M. Murges, Company Secretary, and Mr. Jitan Vakariya, Non-Executive Director, KC Industries. I shall now take you through the consolidated financial performance for the quarter ended June 2026.

Speaker #2: During the quarter, our revenues increased by 13% year-on-year to ₹498 crores from ₹441 crores in the previous corresponding period. This growth was mainly driven by higher demand from industries, which boosted the wires and cables and building product division business, mainly due to high-demand products like three-phase transformers, wire harnesses, relays, and new products like contactors, etc.

Speaker #2: Contribution from exports was approximately 18.6%. The EBITDA excluding other income was ₹31 crore in Q1 FY27 as against ₹42 crore in Q1 FY26. The EBITDA margin for the quarter stood at 6%.

K. Raman: Contribution from exports at approximately 18.6%. The EBITDA excluding other income was INR 31 crores in Q1 2027 as against INR 42 crores in Q1 FY26. The EBITDA margin for the quarter stood at 6%. The profit after tax was INR 8 crores in Q1 2027 as against INR 17 crores in Q1 2026. PAT margin for the quarter stood at 2%. Moving on to the breakup of revenue as per the business divisions. The Industrial Switchgear Division contributed 54% of the total revenue in this quarter. This business grew 10% year-on-year in Q1 2027. The EBITDA margin for this business division stood at 8% in Q1 2027. The Wire and Cable Division contributed nearly 40% to our revenues this quarter. There is increase of 11% on year-on-year growth in this division during the quarter. EBITDA margin for this division stood at 5% in Q1 2027.

Speaker #2: The profit after tax was ₹8 crore in Q1 2027, as against ₹17 crore in Q1 2026. The margin for the quarter stood at 2%.

Speaker #2: Moving on to the breakup of revenue as per the business divisions, the Industrials division contributed 54% of the total revenue in this quarter.

Speaker #2: This business grew 10% year-on-year in Q1 2027. The EBITDA margin for this business division stood at 8% in Q1 2027. The wire and cable division contributed nearly 40% to our revenues this quarter.

Speaker #2: There is an increase of 11% in year-on-year growth in this division during the quarter. EBITDA margin for this division stood at 5% in Q1 2027.

Speaker #2: The Building Product division has contributed 6% to our revenues in this quarter. There is an increase of 48% year-on-year growth in Q1 2027. On the exports front, for this quarter, the export share of the revenue was nearly 19% in Q1 2027.

K. Raman: The Building Product Division has contributed 6% to our revenues in this quarter. There is an increase of 48% year-on-year growth in Q1 2027. On the export front, for this quarter, the export share of the revenue was nearly 19% in Q1 2027. Now, I'd like to hand over now to Mr. Rajesh to take us through the business developments and way ahead. Thank you.

Speaker #2: Now, I would like to hand over to Mr. Rajesh to take us through the business developments. Thank you.

Speaker #1: Thank you, Mr. Raman. Good morning, everyone, and a very warm welcome to the Salzer Electronics earnings conference call for the quarter ended June 30, 2026.

Rajesh Doraiswamy: Thank you, Mr. Raman. Good morning, everyone, and a very warm welcome to Salzer Electronics earnings conference call for the quarter ended 30 June 2026. Thank you all for taking time to join us today. We have shared our results update presentation and media release, I hope you have received and gone through the same. I would like to begin by giving you an overview of our business performance, key operational developments, and the opportunities that we see ahead. Before discussing our individual business segments, I would like to briefly touch upon the broader environment in which we are operating at present. Globally, the operating environment continues to remain mixed and volatile. While global economic activity has demonstrated resilience, businesses continue to navigate trade policy uncertainties, geopolitical developments, changing tariff structures, the West Asia conflict, and volatile and very high raw material prices.

Speaker #1: Thank you all for taking the time to join us today. We have shared our results update presentation and media release, and I hope you have received and gone through them.

Speaker #1: I would like to begin by giving you an overview of our business performance, key operational developments, and the opportunities that we see ahead. Before discussing our individual business segments, I would like to briefly touch upon the broader environment in which we are operating at present.

Speaker #1: Globally, the operating environment continues to remain mixed and volatile. While global economic activity has demonstrated resilience, businesses continue to navigate trade policy uncertainties, geopolitical developments, changing tariff structures, the West Asia conflict, and volatile and very high raw material prices.

Speaker #1: The IMF's latest July 2026 outlook projects global growth at around 3% in 2026, followed by an improvement to 3.4% in the coming year, 2027.

Rajesh Doraiswamy: The IMF's latest July 2026 outlook projects global growth at around 3% in 2026, followed by an improvement to 3.4% in the coming year 2027. At the same time, global economy continues to face risks from geopolitical tensions, supply chain disruptions, and elevated inflationary pressures. For an electrical equipment manufacturer like Salzer, the global environment has a direct impact, particularly through copper, silver, aluminum, and other key plastic raw materials. As well as through freight, currency movements, and export market demand. During the quarter, we witnessed elevated and volatile input costs, particularly in copper, silver, and aluminum. These commodities are important inputs across several of our switchgear components and products like transformers, contactors, and other switchgear products. This environment resulted in margin contraction during the quarter.

Speaker #1: At the same time, the global economy continues to face risks from geopolitical tensions, supply chain disruptions, and elevated inflationary pressures. For an electrical equipment manufacturer like Salzer, the global environment has a direct impact, particularly through copper, silver, aluminum, and other key plastic raw materials.

Speaker #1: As well as through freight demand. During the quarter, we witnessed elevated and volatile input costs, particularly in copper, silver, and aluminum. These commodities are important inputs across several of our switchgear components and products, like transformers, contactors, and other switchgear products.

Speaker #1: This environment resulted in margin contraction during the quarter. However, importantly, we continue to see healthy underlying demand, and we are addressing input material inflation through sourcing efficiencies, calibrated pricing actions for our finished products, and operational efficiencies.

Rajesh Doraiswamy: However, importantly, we continue to see healthy underlying demand, and we are addressing input material inflation through sourcing efficiencies, calibrated pricing actions of our finished products, and operational efficiencies. Coming specifically to India, we remain positive about the structural outlook for the electrical equipment industry. India is going through a significant phase of electrification infrastructure development and energy transition-led investment. The electrical and allied electronics industry is closely linked to investment in power transmission and distribution, manufacturing infrastructure, railways, renewable energy, data center boom, real estate, and industrial automation. According to IEEMA, the transmission and distribution segment accounts for approximately 65% of the Indian electrical and allied electronics industry, highlighting the importance of India's ongoing power infrastructure expansion. The Central Electricity Authority's latest data also reflects the continued expansion of India's power infrastructure.

Speaker #1: Coming specifically to India, we remain positive about the structural outlook for the electrical equipment industry. India is going through a significant phase of electrification, infrastructure development, and energy transition-led investment.

Speaker #1: The electrical and allied electronics industry is closely linked to investment in power transmission and distribution, manufacturing, infrastructure, railways, renewable energy, the data center boom, real estate, and industrial automation.

Speaker #1: According to IEMA, the transmission and distribution segment accounts for approximately 65% of the Indian electrical and allied electronics industry, highlighting the importance of India's ongoing power infrastructure expansion.

Speaker #1: The Central Electricity Authority's latest data also reflects the continued expansion of India's power infrastructure. In May 2026 alone, India added approximately 3,500 megawatts of renewable capacity.

Rajesh Doraiswamy: In May 2026 alone, India added approximately 3,500 megawatts of renewable capacity, 1,120 kilometers of transmission lines, and 7,200 megawatts of transmission capacity, while peak demand reached approximately 270 gigawatts. We believe this continued investment in the electricity ecosystem creates a favorable multi-year demand environment for electrical equipment manufacturers like Salzer. Another important structural trend is the increasing intensity of electricity consumption across the economy. India's transition towards renewable energy, electrification of mobility, data center expansion, and industrial automation is increasing the requirement for efficient, reliable, and intelligent electrical infrastructure. This creates opportunities for all of Salzer's product lines. IEEMA estimates significant future requirements around battery storage, EV charging infrastructure, railway electrification, and smart city infrastructure, which reinforces the broader opportunity for companies operating across the electrical ecosystem.

Speaker #1: 1,120 kilometers of transmission lines and 7,200 megawatts of transmission capacity, while peak demand reached approximately 270 gigawatts. We believe this continued investment in the electricity ecosystem creates a favorable, multi-year demand environment for electrical equipment manufacturers like Salzer.

Speaker #1: Another important structural trend is the increasing intensity of electricity consumption across the economy. India's transition towards renewable energy, electrification of mobility, data center expansion, and industry-led automation is increasing the requirement for efficient, reliable, and intelligent electrical infrastructure.

Speaker #1: This creates opportunities for all of Salzer's product lines. IEMA estimates significant future requirements around battery storage, EV charging infrastructure, railway electrification, and smart city infrastructure, which reinforces the broader opportunity for companies operating across the electrical ecosystem.

Speaker #1: For Salzer, this transition is particularly relevant because we are progressively expanding from being a traditional electrical component manufacturer towards a broader electrification and energy management platform.

Rajesh Doraiswamy: For Salzer, this transition is particularly relevant because we are progressively expanding from being a traditional electrical component manufacturer towards a broader electrification and energy management platform. Coming to our key updates on the recent developments in the last quarter. During the quarter, we continued to strengthen our strategic investments in emerging businesses and technologies. We made an additional investment of INR 13 lakhs in our wholly owned subsidiary, Salzer EV Infra Private Limited, taking the total investment to INR 93 lakhs. We also invested an additional INR 1.68 crores in Effilume Private Limited, an associate company, increasing our total investment to INR 4.2 crores and our equity stake to 47%. These investments reflect our continued focus on building capabilities in emerging areas and creating new growth opportunities that complement our core electrical solutions business.

Speaker #1: Now, coming to our key updates on the recent developments in the last quarter: During the quarter, we continued to strengthen our strategic investments in emerging businesses and technologies.

Speaker #1: We made an additional investment of ₹13 lakhs in our wholly owned subsidiary, Salzer EV Infra Private Limited, taking the total investment to ₹93 lakhs.

Speaker #1: We also invested an additional ₹1.68 crore in Filum Private Limited, an associate company, increasing our total investment to ₹4.2 crore and our equity stake to 47%.

Speaker #1: These investments reflect our continued focus on building capabilities in emerging areas and creating new growth opportunities that complement our core electrical solutions business. Coming to our newer growth businesses, our export contribution currently stands at approximately 19% in Q1 FY27, and we are working towards increasing this back to 25% over the medium term.

Rajesh Doraiswamy: Coming to our newer growth businesses, our export contribution currently stands at approximately 19% in Q1 FY27, and we are working towards increasing this back to 25% over the medium term. We continue to see opportunities across US, UK, Europe, and Middle East, particularly for our engineered switchgear and electrical products. The changing global tariff environment is also creating opportunity for Indian manufacturers as customers increasingly diversify their supply chain. Our subsidiary, Kaycee Industries, continues to perform well. Kaycee's top line grew 8% year on year in Q1 FY27. EBITDA stood at INR 2 crore and PAT at INR 1 crore during the quarter ended. Before I conclude, I would also like to address the margin performance of Salzer in Q1 FY27.

Speaker #1: We continue to see opportunities across the US, UK, Europe, and the Middle East, particularly for our engineered switchgear and electrical products. The changing global tariff environment is also creating opportunities for Indian manufacturers, as customers increasingly diversify their supply chains.

Speaker #1: Our subsidiary, KC Industries, continues to perform well. KC's top line grew 8% year on year in Q1 FY27. EBITDA stood at ₹2 crore and PAT at ₹1 crore during the quarter.

Speaker #1: Ended. Before I conclude, I would also like to address the margin performance of Salzer in Q1 FY27. As we mentioned earlier in this call, the primary reason for the pressure on margins during the quarter has been the sharp increase in key raw material costs.

Rajesh Doraiswamy: As we mentioned earlier in this call, the primary reason for the pressure on margins during the quarter has been the sharp increase in key raw material costs, particularly copper, silver, and plastics, coupled with the lag in the full passthrough of these cost increases to the customers. This is an industry-wide challenge rather than a Salzer specific issue. While we expect Q2 to continue witnessing some pressure, we believe it should be relatively better than Q1 as our pricing actions gradually take effect. Subject to raw material prices remaining stable, we expect margins to start normalizing from Q3 this year onwards. Having said that, FY27 is likely to remain a challenging year given the global macroeconomic environment, geopolitical uncertainties, which disrupts supply chain, and continued volatility in commodity prices.

Speaker #1: Particularly, copper, silver, and plastics. Coupled with the lag in the full pass-through of these cost increases to the customers, this is an industry-wide challenge rather than a Salzer-specific issue.

Speaker #1: While we expect the second quarter to continue witnessing some pressure, we believe it should be relatively better than Q1, as our pricing actions gradually take effect.

Speaker #1: Subject to raw material prices remaining stable, we expect margins to start normalizing from the third quarter this year onwards. Having said that, FY27 is likely to remain a challenging year given the global macroeconomic environment and geopolitical uncertainties, which disrupt the supply chain, along with continued volatility in commodity prices.

Speaker #1: We remain confident that our diversified business model, strong customer relationships, disciplined cost management, and focus on value-added products will help us navigate these near-term headwinds.

Rajesh Doraiswamy: We remain confident that our diversified business model, strong customer relationships, disciplined cost management, and focus on value-added products will help us navigate these near-term headwinds. At Salzer, our approach has always been to build a business for long term. While quarterly results may be influenced by short-term factors such as commodity price volatility, exchange fluctuations, pricing cycles, and broader macroeconomic environment, our strategic priorities remain unchanged. Over the last 10 years, Salzer has delivered a revenue CAGR of nearly 17%, while over the last 5 years, our revenue CAGR has accelerated to 23%. Similarly, PAT has grown at over 20% CAGR during the last 5 years. We believe these numbers demonstrate our ability to consistently create value over the long term despite periodic short-term challenges. We continue to invest in new products, technologies, manufacturing capabilities, exports, and emerging businesses that will create sustainable value over the coming years.

Speaker #1: At Salzer, our approach has always been to build a business for the long term. While quarterly results may be influenced by short-term factors such as commodity price volatility, exchange fluctuations, pricing cycles, and the broader macroeconomic environment.

Speaker #1: Our strategic priorities remain unchanged. Over the last 10 years, Salzer has delivered a revenue CAGR of nearly 17%, while over the last five years, our revenue CAGR has accelerated to 23%.

Speaker #1: Similarly, PAT has grown at over 20% CAGR during the last five years. We believe these numbers demonstrate our ability to consistently create value over the long term, despite periodic short-term challenges.

Speaker #1: We continue to invest in new products, technologies, manufacturing capabilities, exports, and emerging businesses that will create sustainable value over the coming years. Before I conclude, I would like to thank the entire team at Salzer Electronics for their dedication and hard work.

Rajesh Doraiswamy: Before I conclude, I would like to thank the entire team at Salzer Electronics for their dedication and hard work. I also thank all our stakeholders, our customers, suppliers, bankers, and shareholders for their continued trust and support. This is all from our side for now. We would now be happy to take your questions. Thank you.

Speaker #1: I would also like to thank all our stakeholders—our customers, suppliers, bankers, and shareholders—for their continued trust and support. That is all from our side for now.

Speaker #1: We would now be happy to take your questions. Thank you.

Speaker #2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then one on their touch-tone telephone.

Operator: Thank you very much. We will now begin with 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 handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Naveen from MK Investment. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Naveen from MK Investment.

Speaker #2: Please go ahead.

Speaker #3: Hi, sir.

[Analyst] (MK Investment): Hi, sir.

Speaker #1: Good morning, sir.

Speaker #3: Sir, in our investor presentation, it is mentioned that our FY27 EBITDA target is 10%. Can you please confirm?

Rajesh Doraiswamy: Good morning, sir.

[Analyst] (MK Investment): Sir, in our investor presentation, it is mentioned that our FY27 EBITDA target is 10%. Can you please confirm?

Speaker #1: I think that was expected to reach 10%, but looking at the current global scenario, and with the continuing West Asia conflict and fluctuating raw material prices, I think we would tone it down to around 8 to 8.5% for this full year.

Rajesh Doraiswamy: I think that was expected to reach 10%, but looking at the current global scenario and this continuing West Asia conflict and fluctuating raw material prices, I think we would tone it down to around eight to 8.5% for this full year. We see this margin pressure to continue in Q2 also and normalize in Q3 and Q4. I think Q3 and Q4 we should be reaching nine to 9.5%. On an overall full year average, we should be at around 8%.

Speaker #1: Because we see this margin pressure to continue this margin pressure to continue in Q2 also, and normalize in Q3 and Q4, I think Q3 and Q4 we should be reaching 9 to 9 and a half percent.

Speaker #1: But on an overall full-year average, we should be at around 8%.

Speaker #3: But while the investor presentation is not actually echoing the management’s thoughts, the investor presentation is for a real-time look into the business side, sir. So why are your investor presentation and your concall in completely different tones?

[Analyst] (MK Investment): Why investor presentation is not actually echoing with the management talk? Investor presentation is for a real time looking into the business, right, sir? Why your investor presentation and your con call are completely different tones?

Speaker #1: I think we will correct that, and we will make the investor presentation.

Rajesh Doraiswamy: I think we will correct that and we will make the investor presentation.

Speaker #3: I spoke I actually emailed to your particular company secretary and he is still on he's still arguing with us that it is as per management's commentary only.

[Analyst] (MK Investment): I actually emailed your particular company secretary and he's still arguing with us that it is as per management commentary only. What we see is, as a shareholder, we don't want all these two different things because we are a investor group and our clients are actually demanding that, See, why there is a discrepancy in the con call and the investor presentation.

Speaker #3: So what we see is, sir, as a shareholder, we don't want all these two different things because we are an investor group and our clients are actually demanding us.

Speaker #3: See, why is there a discrepancy between the concall and the investor presentation?

Speaker #1: Sir, we understood that. I think we will correct it. I've got your point.

Rajesh Doraiswamy: Sir, we understood that. I think we will correct it. I've got your point.

Speaker #2: The current participant line is disconnected, and we'll move to the next question. The next question comes from the line of Darshil Zaveri from Crown Capital.

Operator: The current participant line is disconnected, we'll move to the next question. The next question comes from the line of Darshan Zaveri from Crown Capital. Please go ahead.

Operator: The current participant line is disconnected, we'll move to the next question. The next question comes from the line of Darshan Jhaveri from Crown Capital. Please go ahead.

Speaker #2: Please go ahead.

Speaker #4: Hello, good morning, sir. Thank you so much for taking my question. I just wanted to know—in Q4, we mentioned that we are doing price hikes in June, and we've already done some price hikes before that as well.

Darshan Zaveri: Hello. Good morning, sir. Thank you so much for taking my question, sir. Just wanted to know, I think in Q4, we mentioned that we are doing price hikes in June, we've done some price hikes for that also. How much of that has been accepted and what is still left, sir? If you could quantify that, sir.

Darshan Jhaveri: Hello. Good morning, sir. Thank you so much for taking my question, sir. Just wanted to know, I think in Q4, we mentioned that we are doing price hikes in June, we've done some price hikes for that also. How much of that has been accepted and what is still left, sir? If you could quantify that, sir.

Speaker #4: So, how much of that has been accepted and what is still left, sir? If you could quantify that, sir.

Speaker #1: So we have done almost three price increases over the last six months. However, as we do the price increases, we always accumulate the pending orders.

Rajesh Doraiswamy: We have done almost three price increases over the last six months. However, as we do the price increase, we always accumulate the pending orders. The price increase comes into effect after the already orders that have been taken. There is always a lag in the pass-through, that is the reason, that is what we are seeing in the margin contraction. Whatever price increase we have done in April, it is being passed through. I think we have done some price increase in June, which will take effect, I think from August, we are proposing more price increase in August, which will take effect in September.

Speaker #1: So, the price increase comes into effect after the orders that have already been taken. So, there is always a lag in the pass-through.

Speaker #1: And that is the reason—that is what we are seeing in the margin contraction. So, whatever price increase we have done in April, it has been passed through.

Speaker #1: I think we have done some price increases in June, which will take effect, I think, from August. And we are proposing another price increase in August, which will take effect in September.

Speaker #4: Okay, fair enough, sir. But I just wanted to know, I think, you know, are we going to get some annuity income from our energy management in July, or is it going to start later on?

Darshan Zaveri: Okay. Fair enough, sir. Sir, I just wanted to know, I think, we're going to get some annuity income from our energy management in Q2.

Darshan Jhaveri: Okay. Fair enough, sir. Sir, I just wanted to know, I think, we're going to get some annuity income from our energy management in Q2.

Rajesh Doraiswamy: Yes.

Darshan Zaveri: Has that started in July or is it going to start later on?

Darshan Jhaveri: Has that started in July or is it going to start later on?

Speaker #1: It will be starting in the middle of August. I think the project is progressing as planned, and I think the project will get completed in July.

Rajesh Doraiswamy: It will be starting in the middle of August. I think project is progressing as planned, and I think the project gets completed in July. We will start seeing the revenue from August.

Speaker #1: We will start seeing the revenue from August.

Speaker #3: Okay. So sir, just wanted to understand.

Darshan Zaveri: Okay. Sir, just wanted to understand, if our base business we are expecting around 9.5% of EBITDA, maybe from Q3 onwards, not Q2. Our annuity income will also directly flow through our PAT, right? There will not be any cost attached to it.

Darshan Jhaveri: Okay. Sir, just wanted to understand, if our base business we are expecting around 9.5% of EBITDA, maybe from Q3 onwards, not Q2. Our annuity income will also directly flow through our PAT, right? There will not be any cost attached to it.

Speaker #4: Like, for our base business, we are expecting around 9 to 9.5 percent, right, of EBITDA. Maybe from Q3 onward, not Q2. And our annuity income will also directly flow through to our PAT, right?

Speaker #4: There will not be any, like, any cost attached to it if I—that is.

Speaker #1: Some maintenance cost will be attached to it, but minimal.

Rajesh Doraiswamy: Some maintenance cost will be attached to it, but minimal.

Speaker #4: Minimal, right, sir? So that way, our Q3, Q4 margins can be 10%, because I don't know if the 9% is including annuity or just the base business.

Darshan Zaveri: Minimal. Right, sir.

Darshan Jhaveri: Minimal. Right, sir.

Rajesh Doraiswamy: Yeah.

Darshan Zaveri: That way, our Q3, Q4 margins can be 10%, because I don't know if the 9% is including annuity or just the base business, because annuity will be significantly higher margin. Just wanted to get your thoughts on that, sir.

Darshan Jhaveri: That way, our Q3, Q4 margins can be 10%, because I don't know if the 9% is including annuity or just the base business, because annuity will be significantly higher margin. Just wanted to get your thoughts on that, sir.

Speaker #4: Because annuity will be a significantly higher margin, right? So, I just wanted to get your thoughts on that, sir.

Speaker #1: No, I think the annuity business is approximately ₹2 crore per month for the project, and that will flow through to us at around 50%.

Rajesh Doraiswamy: No, I think the annuity business is approximately INR 2 crore per month for the project, and that will flow through to us by around 50%. It will not significantly change the percentage is what I believe.

Speaker #1: So it will not significantly change the percentage, is what I believe.

Speaker #4: Okay. We will only have 50%. So it will be for us in our books it will be it will be it's so if it's less than 50% it will be recorded in P&L from JV or it will be recorded in a consolidated.

Darshan Zaveri: Okay. You only have 50%. For us, in our book, if it's less than 50%, it will be recorded in P&L from JV or it will be recorded in a consolidated book?

Darshan Jhaveri: Okay. You only have 50%. For us, in our book, if it's less than 50%, it will be recorded in P&L from JV or it will be recorded in a consolidated book?

Speaker #1: We won't consolidate, but I think it's an associate company. We will get the revenues from the company. Yeah.

Rajesh Doraiswamy: We won't consolidate, but I think it's an associate company, we will get the revenues from the company. Yeah.

Speaker #4: Okay. Okay. Okay. Got it. Got it. Fair enough, sir. That's it. And sir just wanted to know like you know over the last four years if I would see our top line had you know maintained the growth guidance that you know we've been able to you know do of 20% plus.

Darshan Zaveri: Okay. Got it. Fair enough, sir. That's it. I just wanted to know over the last 4 years, if I would see our top line has maintained the growth guidance that we've been able to do of 20% plus, somehow our PAT has not converted to that level. I understand there are a lot of factors have not been in our favor, what do you see? Right now energy is the place where everyone's growing. We just want to know that how can our company get back to the margins that it was, where the top-line growth and the profit growth are also matching. I'm just talking especially from FY24 to FY26 and FY27 continuing right now. Even FY27, we'll have some margins because we used to do 10%, I think, and now we are at 6%.

Darshan Jhaveri: Okay. Got it. Fair enough, sir. That's it. I just wanted to know over the last 4 years, if I would see our top line has maintained the growth guidance that we've been able to do of 20% plus, somehow our PAT has not converted to that level. I understand there are a lot of factors have not been in our favor, what do you see? Right now energy is the place where everyone's growing. We just want to know that how can our company get back to the margins that it was, where the top-line growth and the profit growth are also matching. I'm just talking especially from FY24 to FY26 and FY27 continuing right now. Even FY27, we'll have some margins because we used to do 10%, I think, and now we are at 6%.

Speaker #4: But yeah, somehow, you know, our PAT has not converted to that level. I understand there are a lot of factors that have not been in our favor.

Speaker #4: But what do you do? Because right now energy is the place where everyone's growing, right? So we just want to know, how can our company get back to the margins that it had?

Speaker #4: You know that where the top line grows and the profit growths are also matching, right? I'm just talking especially from FY24 to 26 and 27, continuing right now, right?

Speaker #4: Even Q1 '27 will have some margins. We used to do 10%, I think, and now we are at 6%. I understand that a lot of things are not in our control.

Darshan Zaveri: I understand a lot of things are not in our control, what can we do better? That led to significant value destruction in our share price also. Are promoters planning a buyback or some stake increase that can give a signal to the street or something? What are your thoughts on that, sir?

Darshan Jhaveri: I understand a lot of things are not in our control, what can we do better? That led to significant value destruction in our share price also. Are promoters planning a buyback or some stake increase that can give a signal to the street or something? What are your thoughts on that, sir?

Speaker #4: But what can we do better? Because that's led to significant value destruction in our share price also, right? Are our promoters planning a buyback or, you know, some stake increase that can, you know, give a signal to the street or something?

Speaker #4: What are your thoughts on that, sir?

Speaker #1: Sir, I agree with you. I think if you look at that—that's why I mentioned the CAGR over the five-year period. I think in the five years, the PAT has grown close to around 20% CAGR.

Rajesh Doraiswamy: Sir, I agree with you. That's why I mentioned about the CAGR in the 5-year period. I think in the 5 years, the PAT has grown close to around 20% CAGR. Though from FY24 it has not been, and FY23, if you see the CAGR has been reduced to around 14% per annum. I think we have to understand, for the last 2 years, there has been a margin pressure experienced, and particularly in FY26 last quarter. That is one of the reason that the CAGR in the last 3 years has reduced to around 14%. Having said that, I think we are in a very good sector where we are seeing very high growth. The demand is good. That is the reason that revenues has started to grow significantly.

Speaker #1: Though from FY24 it has not been, and in FY23 if you see, the CAGR has reduced to around 14% per annum. But I think we have to understand that for the last two years there has been margin pressure experienced, and particularly in FY23 last quarter.

Speaker #1: So that is one of the reasons that the CAGR in the last three years has reduced to around 14%. But having said that, I think we are in a very good sector where we are seeing very high growth.

Speaker #1: The demand is good. That is the reason that revenues have started to grow significantly. And when this pricing normalization happens and the complete pass-through happens, I think we'll be back to the normal margin levels.

Rajesh Doraiswamy: When this pricing normalization happens and the complete pass-through happens, I think we will be back to the normal margin levels. With all the product lines and the relationship that we have with our OEMs, we continue to see good demand coming for all our products, and we will be back to the normal levels by Q3 onwards.

Speaker #1: And with all the product lines and the relationship that we have with our OEMs, we continue to see good demand coming for all our products, and we will be back to the normal levels by Q3 onwards.

Speaker #4: Okay. Fair enough, sir. And just like just two other questions from my end. Like this is more regarding our policy. So can we you know do a cost plus policy where the RM gets passed through faster or can because our corporate and silver both are traded.

Darshan Zaveri: Okay, fair enough, sir. Just two other questions from my end. This is more regarding our policy. Can we do a cost-plus policy where the RM gets passed through faster? Because our copper and silver both are traded. Can we hedge them somehow? Because maybe that could help us retain our margins. I don't know. I think we can hedge copper and silver.

Darshan Jhaveri: Okay, fair enough, sir. Just two other questions from my end. This is more regarding our policy. Can we do a cost-plus policy where the RM gets passed through faster? Because our copper and silver both are traded. Can we hedge them somehow? Because maybe that could help us retain our margins. I don't know. I think we can hedge copper and silver.

Speaker #4: Can we hedge them somehow? Because maybe that could, you know, help us, you know, retain our margins, right? If we would have—I don't know if we—I think we can hedge copper and silver.

Speaker #1: No. We we can. I think first first question is your your cost plus model. I think we we don't want to do a cost plus model on our standard switchgear products.

Rajesh Doraiswamy: No, we can. I think first question is your cost-plus model. I think we don't want to do a cost-plus model on our standard switchgear products. One of the reason is that will make us open our costing sheets to our customers. So far, I think we have tried to avoid that. That also gives an advantage when the commodities are not fluctuating or not going up like what we have seen in the last six months. In a normal situation, we have an advantage because we don't open a cost sheet, and the cost-plus model will be a negative in a normal situation. That is what we have seen. In that situation, I think we are trying to see how quickly we can pass through this kind of a fluctuated commodity price increase.

Speaker #1: One of the reasons is that it will make us open our costing sheets to our customers. So far, I think we have tried to avoid that.

Speaker #1: That also gives an advantage when the commodities are not fluctuating, are not going up like what we have seen in the last six months.

Speaker #1: In a normal situation, we have an advantage because we don't open a cost sheet, and the cost-plus model will be a negative in a normal situation.

Speaker #1: So, that's what we have seen. In that situation, I think we are trying to see how quickly we can pass through this kind of fluctuating commodity price increase.

Speaker #1: So that is something that we are still working on. Not just Salzer—I think almost all switchgear industries are struggling with this.

Rajesh Doraiswamy: That is something that we are still working on, not just Salzer, I think almost all switchgear industries is struggling with this kind of a pass-through. We are working on it, and we will try and see. Earlier it used to be a quarter, now I think we are trying to do it in less than two months pass-through. If we can shorten that further, I think we will not see much of a fluctuations volatility in our margins. That is what we are trying to do, one. Second, on the hedging, I think we normally try to avoid hedging the commodities, except for the stocks that we hold. I think that is the natural hedge that is created. It also works the other way around when the prices fall.

Speaker #1: This is a kind of pass-through, and we are working on it. We will try and see—earlier it used to be a quarter; now, I think we are trying to do it in less than two months.

Speaker #1: Pass-through. If we can shorten that further, I think we will not see much fluctuation—volatility—in our margins. So that's what we are trying to do.

Speaker #1: Second, on the hedging, I think we normally try to avoid hedging the commodities except for the stocks that we hold. I think that is the natural hedge that is created.

Speaker #1: It also works the other way around when the prices fall. If you take the example of silver, I think from ₹70 a gram it went up to ₹400 and it has come down to around ₹250 now.

Rajesh Doraiswamy: If you take an example of silver, I think from INR 70 a gram, it went up to INR 400, and it has come down to around INR 250 now. We can also be caught on the other side. We normally, as a business policy, we don't hedge commodities except for the stocks that we hold.

Speaker #1: So we can also be caught on the other side. So, normally as a business policy, we don't hedge commodities except for the stocks that we hold.

Speaker #4: Okay. Okay. Fair. Fair enough, sir. And just you know new growth areas I think EV charging we are I think we are looking to double the revenue sorry and the smart meter business is you know you could just comment something on that sir.

Darshan Zaveri: Okay. Fair enough, sir. Just in our new growth areas, I think EV charging, I think we are looking to double the revenue. Sorry. The smart meter business, if you could just comment something on that, sir. I think Saudi Arabia also you're planning to commission. Is that underway? How is the scenario out there, sir? Could you just comment on these three, sir?

Darshan Jhaveri: Okay. Fair enough, sir. Just in our new growth areas, I think EV charging, I think we are looking to double the revenue. Sorry. The smart meter business, if you could just comment something on that, sir. I think Saudi Arabia also you're planning to commission. Is that underway? How is the scenario out there, sir? Could you just comment on these three, sir?

Speaker #4: And I think in Saudi Arabia also, we are planning to commission. Is that underway? How is the scenario out there, sir? Could you just comment on these three, sir?

Speaker #1: Saudi Arabia is is is definitely on on the on the cards. However I think there has been a delay in in starting of the plant because of the West Asia disruptions.

Rajesh Doraiswamy: Saudi Arabia is definitely on the cards. However, I think there has been a delay in starting of the plant because of the West Asia disruptions. We are now planning to ship our machines and equipments, and start installation mostly by September, October. Hopefully by that time things can be much better in West Asia, is what we believe. We have planned to that timeline. Otherwise, I think we should have already started from this April, May, but didn't happen because of the West Asia conflict. That is on Saudi Arabia. On smart meters, we don't have any new update other than what we mentioned in the last con call. We did a very small revenue from smart meters, close to around INR 3.5 crores from that plant. We have no major updates in the smart meter as of now.

Speaker #1: So we are now planning to ship our machines and equipment, and start installation mostly by September or October. Hopefully, by that time, things can be much better in West Asia, is what we believe.

Speaker #1: So we had planned for that timeline. Otherwise, I think we should have already started from this April–May, but it didn't happen because of the West Asia conflict.

Speaker #1: That is on Saudi Arabia. On smart meters, we don't have any new update other than what we mentioned in the last con call.

Speaker #1: We did a very, very small revenue from smart meters—close to around ₹3.5 crores from that plant. And we have no major updates in the smart meters as of now.

Speaker #1: But we continue to be positive and see how we can get a larger chunk of the business share from the market. On EV charging, I think things are progressing well.

Rajesh Doraiswamy: We continue to be positive to see how we can get a larger chunk of the business share from the market. On EV charging, I think things are progressing well. So far, I think there are close to around 160, 170 DC fast chargers have been supplied, shipped, and installed across the country through various charge point operators. We continue to see good demand coming in. This quarter also, I think we expect that close to around 60 chargers will be supplied in Q2.

Speaker #1: So far, I think there are close to around 160 or 170 DC fast chargers that have been supplied, shipped, and installed across the country through various charge point operators.

Speaker #1: And we continue to see good demand coming in, and this quarter also I think we expect that close to around 60 chargers will be supplied in Q2.

Speaker #4: Okay. Okay. Fair enough. Yeah, that's it from my side. Thank you so much, sir.

Darshan Zaveri: Okay. Fair enough. That's it from my side. Thank you so much, sir.

Darshan Jhaveri: Okay. Fair enough. That's it from my side. Thank you so much, sir.

Speaker #2: Thank you. The next question comes from the line of Mr. Mehta from Real Float Ventures LLP. Please go ahead.

Operator: Thank you. The next question comes from the line of Karan Mehta from RealFloat Ventures LLP. Please go ahead.

Speaker #3: Hi, good morning to everyone on the call. I just have a couple of questions, more broadly about the business, from a structural perspective.

Karan Mehta: Hi, good morning to everyone on the call. I just have a couple of questions more broadly about the business just from a structural perspective. I guess my first question is just around the distribution part at Salzer. Sir, if you could just help me kind of understand. I do appreciate that you've added to the talent bench with the hiring of a new CFO in the recent past. Could you also help me just understand the distribution and your sales organization in particular? I know that you have a strong linkage with the L&T distribution channel. How much would that be in proportion to your direct distribution? If you could just generally provide color around how your sales organization is structured and what changes do you see on that front?

Speaker #3: So, I guess my first question is just around the distribution part at Salzer. And sir, if you could just help me kind of understand.

Speaker #3: So, I do appreciate that you've added to the talent bench with the hiring of a new CFO in the recent past. Could you also help me just understand the distribution and your sales organization in particular?

Speaker #3: I know that you have a strong linkage with the LNTs distribution channel. So, do you know how much that would be in proportion to your direct distribution?

Speaker #3: And if you could just generally provide color around how your sales organization is structured, and what changes you see on that front.

Speaker #1: Sure, sir. Thank you very much. On the sales front, we have multiple sales fronts. I think we deal with an OEM front and we deal with the B2B electrical wholesale business.

Rajesh Doraiswamy: Sure, sir. Thank you very much. On the sales front, we have multiple sales fronts. I think we deal with an OEM front. We deal with the B2B electrical wholesale business. We also have a B2C electrical wholesale business. We have an export front. These are the different marketing channels that we have. As you said, we also have a very strong linkage and understanding with erstwhile L&T Switchgear division, which is now called LK, part of Schneider. The distribution that LK does for us, I think it is close to around 15% of our total revenue that goes through the LK's distribution channel. Another, I don't know the percentage, but we have general manager and vice president marketing heading each of these distribution channels. Like the B2C retail, and B2B retail wholesale, and the OEM.

Speaker #1: We also have a B2C electrical wholesale business, and we have an export front. So, these are the different marketing channels that we have. And, as you said, we also have a very strong linkage and understanding with Ernst Weill L&T's switchgear division, which is now called LK.

Speaker #1: Of part of Schneider. So the distribution that LK does for us, I think it is close to around 15%—15, 15% of our total revenue—that goes through the LK's distribution channel.

Speaker #1: And another—I don't know the percentage—but we have general manager and vice president, marketing, heading each of these distribution channels, like the B2C retail and B2B wholesale, retail, and wholesale.

Speaker #1: And the OEM. So there are different heads who are taking care of these channels, and there are teams across the country under these people, taking care of the business and reporting to them.

Rajesh Doraiswamy: There are different heads who are taking care of these channels, and there are teams across the country under these people, taking care of the business and reporting to them. On the B2C retail channel, which is our building segment product, that alone, I think we are operating only in the southern five states, and recently we've expanded into the eastern region like Jharkhand, Madhya Pradesh, Odisha, Chhattisgarh. These are some of the new states that we have added on the B2C retail front. This is the marketing structure that we have.

Speaker #1: On the B2C retail channel, which is our building segment product, I think we are operating only in the southern five states, and recently we've expanded into the eastern region like Jharkhand, Madhya Pradesh, Orissa, and Chhattisgarh.

Speaker #1: So, these are some of the new states that we have added on the B2C retail front. So, this is the marketing structure that we have.

Speaker #3: Thank you, thank you. That's very helpful. Do you have any idea about the headcount strength on your distribution side? Just rough numbers.

Karan Mehta: Thank you. That's very helpful. Just any idea about the headcount strength in your distribution on the distribution side? Just rough numbers.

Speaker #1: To total overall marketing team strength including all these channels, we have close to around 65 people, excluding the leaders.

Rajesh Doraiswamy: Total overall marketing team strength, including all these channels, we have close to around 65 people, excluding the leaders.

Speaker #3: Right. Thank you. That was very helpful, sir. Thank you.

Karan Mehta: Right. Thank you. That was very helpful, sir. Thank you. Just as a separate point around reporting. I also appreciate that the format of the presentation for this quarter includes a lot more kind of information about the industry environment and end markets. We are operating in a number of high growth end markets, like renewables and data centers. I was just wondering if it would be possible to break out the contribution from these segments, if not on a quarterly basis, then maybe on a half-yearly or annual basis. I think it'd be helpful to just understand the company's evolution in these areas.

Speaker #1: Thank you.

Speaker #3: And just just as a separate point around reporting so I I also appreciate that the format of the presentation for this quarter includes a lot more kind of information about you know the the industry environment and end markets.

Speaker #3: So you know we are operating in a number of high growth end markets like you know renewables and data centers and I was just wondering if it would be possible to break out the contribution from these segments if not on a quarterly basis then maybe on maybe a half yearly or annual basis?

Speaker #3: I think it'd be helpful to just understand the company's evolution in these areas.

Speaker #1: You mean to say about our customer segment, correct?

Rajesh Doraiswamy: You mean to say about our customer segment, correct?

Speaker #3: Yes. So, what percentage of the revenue comes from a data center?

Karan Mehta: Yes. What percentage of the revenue comes from a data center-

Speaker #1: I understand that, yeah. Sure, I understand that. We will try to include that and see when, because we have to. We should have full data on that.

Rajesh Doraiswamy: I understand that. Yeah. Sure. I understand that. We will try to include that and see when, because we should have full data on that. Whatever information possible that we have and we will collect, we will try and project that at least once in half year or once in a year.

Speaker #1: But whatever information possible that we have and we will collect, we will try and project that at least once and a half year or once in a year.

Speaker #3: Yeah, that would be very helpful because we are operating in the right segments, but you know, it would just help us as investors to understand and quantify that piece.

Karan Mehta: Yeah, that would be very helpful because we are operating in the right segments, it would just help us as investors to understand and quantify that piece.

Speaker #1: Sure. Thank you very much, sir, for the inputs. Yeah.

Rajesh Doraiswamy: Sure. Thank you very much, sir, for the inputs. Yeah.

Speaker #3: And just the last question is: how are we benefiting from any government schemes? You know, obviously there is a big push around creating domestic champions in the electronic and electronic component industry.

Karan Mehta: Just the last question is, are we benefiting from any government schemes? Obviously, there is a big push around creating domestic champions in electronic and electronic component industry. What schemes would you think we are benefiting from most at the government level?

Speaker #3: So, you know what schemes are—would you think we are benefiting from most at the government level?

Speaker #1: Right now there there's nothing that we are benefiting but I think we we can apply for a PLI or ECMS going forward. And on the on the EV charges there is a new new policy that has come a PME drive.

Rajesh Doraiswamy: Right now, there's nothing that we are benefiting, but I think we can apply for a PLI or ECMS going forward. On the EV chargers, there is a new policy that has come up, PM E-DRIVE. There are some incentives for the users of the chargers, not directly to us. Apart from that, I think we receive export incentives, and that's what we are enjoying right now.

Speaker #1: So there are some incentives for the users of the charges, not directly to us. Apart from that, I think we receive export incentives.

Speaker #1: And that's what we are enjoying right now.

Karan Mehta: Okay. Thank you. Thank you, sir. That's all from me.

Speaker #3: Okay. Thank you. Thank you, sir. That's all from me.

Karan Mehta: Okay. Thank you. Thank you, sir. That's all from me.

Speaker #1: Yeah.

Rajesh Doraiswamy: Yeah.

Speaker #2: Thank you. The next question comes from the line of Shravan Modi from Syndicate Family Office. Please go ahead.

Operator: Thank you. The next question comes from the line of Shravan Modi from Syndicate Family Office. Please go ahead.

Speaker #3: Good morning, sir. Thank you so much for the opportunity today.

Shravan Modi: Good morning, sir. Thanks so much for the opportunity for this.

Speaker #1: Good morning.

Rajesh Doraiswamy: Morning.

Speaker #3: So, how do you see KC?

Shravan Modi: How do you see Kaycee-

Speaker #1: Sir, your voice is breaking. Can you please be a little louder?

Rajesh Doraiswamy: Sir, your voice is breaking. Can you be a little louder?

Speaker #3: Yeah, sir. Am I audible now?

Speaker #1: Yeah. Yes.

Shravan Modi: Yeah. Sir, am I audible now?

Speaker #3: Yeah. So, how do you see KC Industries fitting into Salzer's broader portfolio, particularly in terms of product capabilities, customer access, and cross-selling opportunities?

Rajesh Doraiswamy: Yeah. Yes.

Shravan Modi: Yeah. How do you see Kaycee Industries fitting into Salzer's broader portfolio, particularly in terms of product capabilities, customer access, and cross-selling opportunities?

Speaker #1: We're already doing a lot of cross-selling between KC and Salzer. I think we have synergized a lot of operations between KC and Salzer, and we can see the results in KC. When we acquired, it was just before COVID, and post-COVID we started around ₹25 crore of revenue. Today, I think we have reached around ₹60 crore of revenue.

Rajesh Doraiswamy: We are already doing a lot of cross-selling between Kaycee and Salzer. I think we have synergized a lot of operations between Kaycee and Salzer, and we can see the results in Kaycee when we acquired just before COVID. Post-COVID, we started around INR 25 crore of revenue. Today, I think we have reached around INR 60 crores of revenue. The PAT also, I think, has gone up from close to around INR 1.5 crores to close to around INR 5 crores, as of now, with a CAGR of 27% in the last 4 years. I think it has consistently delivered growth, and we continue to grow Kaycee in areas where Salzer is not present at the moment.

Speaker #1: And the PAT also, I think, has gone up from close to around ₹1.5 crores to almost ₹5 crores as of now, with a CAGR of 27% in the last four years.

Speaker #1: So, I think it has consistently delivered growth, and we continue to grow KC in areas where Salzer is not present at the moment.

Speaker #1: Some new investments in new products have been made in KC, and we continue to see that KC will grow at the same CAGR for the next three to four years.

Rajesh Doraiswamy: Some new investments on new products have been made in KC, and we continue to see that KC will continue to grow at the same CAGR for the next three to four years.

Speaker #3: Thank you, sir. Sir, in terms of capacity utilization, switchgear is around 70%, while wire and cable is around 65%. How much additional revenue can the existing manufacturing infrastructure support before our incremental capex is required?

Shravan Modi: Thank you, sir. Sir, in terms of capacity utilization, switchgear is around 70%, while wire and cable is around 65%. How much additional revenue can the existing manufacturing infrastructure support before our incremental CapEx is required?

Speaker #1: I think the capacity utilization in Q1 and continuing into Q2 for Switchgear Industries has gone up. We are now operating at around 80% to 85% capacity utilization because of the high demand that we are seeing right now.

Rajesh Doraiswamy: I think the capacity utilization in Q1, and continuing to be in Q2 for switchgear industries has gone up. We are now operating close at around 80% to 85% capacity utilization because of the high demand that we are seeing right now. Answering your question, I think this year's growth projection of close to 23% to 25%, which we will be able to do in the same capacity. Going forward, I think next year we might have to do some balancing capacity for the switchgear. For the wire and cable, we can continue for another year with the same growth rate.

Speaker #1: And then, on answering your question, I think this year's growth projection of close to 23% to 25% is something we will be able to achieve with the same capacity.

Speaker #1: Going forward, I think next year we might have to do some balancing capacity for the switchgear. For the wire and cable, we can continue for another year with the same growth rate.

Speaker #3: Right, sir. Sir, when I see the presentation, it highlights that there are strong in-house manufacturing and R&D capabilities. Which areas of backward integration currently provide the greatest cost, quality, and delivery advantage to us?

Shravan Modi: Right, sir. Sir, when I see the presentation, it highlights that there's a strong in-house manufacturing and R&D capabilities. Which areas of backward integration currently provide the greatest cost, quality, and delivery advantage to us?

Speaker #1: I think as a company, we have been completely vertically integrated even long before. That's mainly because of our process capabilities and the R&D capabilities that we had.

Rajesh Doraiswamy: As a company, I think we have been completely vertically integrated even long before. That's mainly because of our process capabilities and the R&D capabilities that we had. We have been vertically integrated since long, and we have been taking the advantage of all the cost benefits across the value chain, starting from raw material to finishing a product. Most of the processes are done in-house.

Speaker #1: So, we have been vertically integrated for a long time, and we have been taking advantage of all the cost benefits across the value chain, starting from raw material to finishing a product.

Speaker #1: So, most of the processes are done in-house.

Speaker #3: Right, sir. Right, sir. Thank you so much. That's it from my side. Thank you for the opportunity.

Shravan Modi: Right, sir. Thank you so much. That's it from my end. Thank you for the opportunity.

Speaker #1: Thank you sir.

Rajesh Doraiswamy: Thank you, sir.

Speaker #2: Thank you. The next question comes from the line of Chirag Shah, an individual investor. Please go ahead.

Operator: Thank you. The next question comes from the line of Chirag Shah, an individual investor. Please go ahead.

Speaker #3: Good morning sir.

Speaker #1: Good morning sir.

Chirag Shah: Good morning, sir.

Speaker #3: Yeah. Actually, you know, if we see our product mix, over 56% to 60% is coming from industrial switchgear, and around 39% is coming from wires and cables.

Rajesh Doraiswamy: Morning, sir.

Chirag Shah: Yeah. Actually, if we see our product mix, over 56% to 60% is coming from industrial switchgear, and around 39% is coming from wire and cable. If we see the margin front, the players which are into wire and cable industries, those are able to maintain good healthy margin even after this copper price and aluminum and everything price volatility, post this West Asia crisis. Whether there is a further limitation at our end, or there is a possibility to expand our margin, because we are not into actually commoditized business, we are into specialized products. Ideally, our margin should expand or should not contract to that manner due to the effect of this metal prices volatility.

Speaker #3: Now if we see the margin from the players which are into wire and cable industries, those are able to maintain good, healthy margin even after this, you know, copper price and aluminum and everything price volatility post this West Asia crisis.

Speaker #3: So, is there a further limitation at our end, or is there a possibility to expand our margin, because we are not actually in a commoditized business?

Speaker #3: We are into specialized products, so ideally our margin should expand or at least should not contract to that extent due to the effect of metal price volatility.

Speaker #3: So in this, specifically in industrial switchgear or wire and cable, this margin front pressure is exactly only due to this copper price and aluminum prices, or are there any other factors also there?

Chirag Shah: In this specifically industrial switchgear or wire and cable, this margin front pressure is exactly only due to this copper price and aluminum prices or any other factors are also there?

Speaker #1: Sir, there are two businesses that we are operating, as you rightly said. This quarter, it has been 53% on the switchgears and 40% on the wire and cable.

Rajesh Doraiswamy: Sir, there are two businesses that we are operating, as you rightly said. This quarter, it has been 53% on the switchgears and 40% on the wire and cable. If you're coming to the wire and cable, our margins have been stable over the last four, five quarters, and the increase in copper prices have not affected our margins in this business segment. The reason being, I think it is a cost-plus model that we are operating with our customers. I think almost 70% of the wire and cable business that we do are white labeling to large brands, OEMs. It is a cost-plus model, so the price volatility doesn't affect us, and our margins are stable, which we are seeing.

Speaker #1: So, if coming to the wire and cable, our margins have been stable over the last four or five quarters, and the increase in copper prices has not affected our margins in this business segment.

Speaker #1: The reason being, I think it is a cost-plus model that we are operating with our customers. And I think almost 70% of the wire and cable business that we do is white labeling to large brands and OEMs.

Speaker #1: So, it is a cost-plus model, so the margin in the price volatility doesn't affect us, and our margins are stable, which we are seeing.

Speaker #1: Coming to the switchgear industry, it is not a cost-plus model and it includes a lot of copper, silver, and plastic that we use.

Rajesh Doraiswamy: Coming to the switchgear industry, it is not a cost-plus model, and it includes a lot of copper, silver, and plastic that we use, including the switchgears and the transformers and everything. Though we have a price variation clause built in with our customers, the pass-on is not immediate. There is always a lag between the volatility price increase and our price increase, and to the actual implementation of our price increase. That is why we have seen contraction of margin from around 12% to around 7.5% and 8%. Clearly there is a 4.5% margin contraction that has happened in the switchgear business for us in the last two quarters.

Speaker #1: Including the switchgears and the transformers and everything. Though we have a price variation clause built in with our customers, the pass-on is not immediate.

Speaker #1: There is always a lag between the volatility in price increase and our own price increase, and then to the actual implementation of our price increase. That is why we have seen contraction of margin from around 12% to around 7.5–8%.

Speaker #1: So clearly there is a four to five four and a half percent margin contraction that has happened in the Switchgear business product Switchgear business for us.

Speaker #1: In the last two quarters.

Speaker #3: Got it, got it. Just to add, the same point—say, in our overall sales increase due to this metal price increase—how much is the volume growth, I mean actual genuine volume growth, and the second part is, what is the sales growth due to this price hike, say, price hike in this metal?

Operator 2: Got it. Just to add the same point, say, in our overall sales increase, due to this metal price increase, everything, how is the volume growth and actually genuinely volume growth and second part is sales growth due to this price hike, say price hike in this metal. Whether there is actual number of volume growth is available, in terms of units or whatever way we measure.

Chirag Shah: Got it. Just to add the same point, say, in our overall sales increase, due to this metal price increase, everything, how is the volume growth and actually genuinely volume growth and second part is sales growth due to this price hike, say price hike in this metal. Whether there is actual number of volume growth is available, in terms of units or whatever way we measure.

Speaker #3: So, whether there is an actual number of volume growth available in terms of units, or whatever way we are measuring it.

Speaker #1: Yes we do have. We we always monitor the volume growth as we grow. I think this quarter we have had a eight seven eight seven to eight percent of volume growth and rest is the growth because of the price increase.

Rajesh Doraiswamy: Yes, we do have. We always monitor the volume growth as we grow. I think this quarter we have had 7% and 8% of volume growth, and the rest is the growth because of the price increase.

Speaker #3: Got it. And just to add on one point—also, this is on the smart meter front: if we see over the last three years, if we observe, there is hardly any movement, and the investment has been, you know, materially there in terms of our overall balance sheet size.

Chirag Shah: Just to add on one point also. This smart meter front, if we see over the last 3 years, if we observe, there is hardly any movement, and the investment has been materially there in terms of our overall balance sheet size. How we are going to leverage on that front? Because it has been long time when earlier estimate was around INR 300 crore of sales for our year FY24, then FY25, now FY26 is also over. If you can just elaborate that how we are expecting it to leverage further or which all are opportunities, and some parts of India we are observing that there is a resistance from the end users due to which there is a lack of progress in installation of the smart meter. Overall scenario, how our team is analyzing and predicting the future path for this particular segment?

Speaker #3: So, how do we want to leverage on that front? Because it has been a long time since, you know, the earlier estimate was around a few hundred crores of sales for a year—FY24, then FY25, and now FY26 is also over.

Speaker #3: So, if you can just elaborate on how we are expecting to leverage this further, or what all are the opportunities? In some parts of India, we are observing that there is resistance from the end users, due to which there is a lack of progress in the installation of the smart meters.

Speaker #3: So, overall, this is the scenario of how our team is analyzing and predicting the future path for this particular segment.

Speaker #1: Sir, we are continuing to see what we can do on the smart meter investment. As of now, yes, you are right—this is a drag on our balance sheet.

Rajesh Doraiswamy: We are continuing to see what we can do on the smart meter investment. As of now, yes, you are right, this is a drag on our balance sheet. However, I think we still believe that the opportunity in the industry is quite huge, and we are trying to benefit out of that. Right now, as you said, yes, it is a drag, and we are continuing to see what we can do on this as we go forward. I have no update right now to give you, and we have not made any decision as of now on what we will do with this investment. We are analyzing. As we go forward in the next 2, 3 quarters, we will take a call on what we will do on this if the business doesn't continue to come to us as we expect.

Speaker #1: However, I think we still believe that the opportunity in the industry is quite huge, and we are trying to benefit from that.

Speaker #1: But right now, as you said, yes, it is a drag and we are continuing to see what we can do on this as we go forward.

Speaker #1: So, if I have no update right now to give you, then we have not made any decision as of now on what we will do with this investment.

Speaker #1: But if we are analyzing as we go forward, in the next two to three quarters, we will take a call on what we will do on this.

Speaker #1: If the business doesn't continue to come to us as we expect.

Speaker #3: And one last point only. With respect to our working capital, if we see that, you know, while the sales growth is moderate, our working capital requirement or the investment has been increasing substantially.

Chirag Shah: Thank you. One last point only. With respect to our working capital, if we see that while the sales growth is moderate, our working capital requirement or the investment is increasing substantially. Because ultimately it is having the financial cost also. In fact, it's having the ultimate effect on the PAT, EPS, everything. Where it has been stuck due to which it's increasing a faster pace with respect to working capital fund requirement as compared to the top line growth?

Speaker #3: So where exactly? Because ultimately, it is having the financial cost also. And in fact, it's having the ultimate effect on the PF, EPF, everything.

Speaker #3: So, where it has been stuck—which is why it's increasing at a faster pace with respect to working capital fund requirements as compared to the top line growth.

Speaker #3: If you can.

Speaker #1: Just this, this—I think the last two quarters have been very challenging. In spite of that, I think if you look at this quarter comparatively, we have been better on the finance cost. At least we have been able to reduce at least 300 basis points, or 0.3%, on the revenue.

Rajesh Doraiswamy: I think the last 2 quarters have been very challenging. In spite of that, I think if you look at this quarter, comparatively, we have been better on the finance cost. At least we have been able to reduce at least 300 basis points, or 0.3% on the revenue, we have been able to reduce the finance cost. I think that's actually 1 positive sign. Though, as you said, the working capital remains a strain on us. We are trying to improve on a number of days, compared to what it was in the last quarter. Look at it, I think a number of working capital days has improved in this quarter, and we see that it will continue to improve.

Speaker #1: We have been able to reduce the finance cost. I think that's actually one positive sign. Though, as you said, the working capital remains a strain on us.

Speaker #1: We are trying to improve on the number of days, compared to what it was in the last quarter. Looking at it, I think the number of working capital days has improved in this quarter.

Speaker #1: And we see that it will continue to improve. But we, the—I think ultimately, what we have to see is, when the raw material prices increase and we increase our price, the overall working capital utilization goes up because of the price increase.

Rajesh Doraiswamy: I think ultimately what we have to see is when the raw material prices increase and we increase our price, the overall working capital utilization goes up because of the price increase. That also has to be considered. In spite of that, I think we are trying to see how efficiently we can operate and bring the number of days working capital down.

Speaker #1: So that also has to be considered. In spite of that, I think we are trying to see how efficiently we can operate and bring the number of days in working capital down.

Speaker #3: Okay. Okay. Thank you. Thank you very much. And I hopeful that you know this is the tailwind industry for the India. And hopefully and with the management we have we will able to sell to this current scenario of the West Asia crisis and we will be marching ahead for the for the growth for the in terms of profitability and top line.

Chirag Shah: Okay. Thank you very much. I am hopeful that now this is the tailwind industry for India, and hopefully, and with the management we have, we will able to sail through this current scenario of the West Asia crisis, and we will be marching ahead for the further growth in terms of profitability and top line. Best of luck for that.

Speaker #3: Best of luck for that.

Speaker #1: Yes, thank you, sir. Thank you very much.

Rajesh Doraiswamy: Yes. Thank you, sir. Thank you very much.

Speaker #3: Thanks.

Speaker #2: Thank you. The next question comes from the line of Madhav Das, an individual investor. Please go ahead.

Chirag Shah: Yeah, thanks.

Operator: Thank you. The next question comes from the line of Madhav Das, an individual investor. Please go ahead.

Speaker #3: Yeah, hi. Thank you for the opportunity. So, I would just like to ask a few questions. One is: could the management help me by providing an update on the working capital, particularly considering higher commodity prices, export growth, and the ramp-up of newer businesses?

Madhav Das: Yeah. Hi, thank you for the opportunity. I would just like to ask a few questions. One is that, could the management help me provide an update on the working capital, particularly considering higher commodity prices, export growth, and ramp-up of newer businesses? Secondly, how do you view leverage and CapEx requirements for financial year 2027, particularly considering smart meter capacity, EV charging investments, and other manufacturing initiatives?

Speaker #3: And secondly, how do you view leverage and CapEx requirements for financial year '27, particularly considering smart meter capacity, EV charging investments, and other manufacturing initiatives?

Speaker #1: On the working capital, Rahman, you have the figures for the number of days. Can you share those?

Rajesh Doraiswamy: On the working capital, Raman, you have the figures of number of days, can you share?

Speaker #3: I think, presently, right now I don't have actually. So, we can probably share sometime.

K. Raman: I think presently, right now I don't have, sir. We can probably share sometime.

Speaker #1: Share it. But overall, I am, the numbers that I saw were that I think we have improved on the number of days in the working capital cycle compared to what it was in the last quarter and last year.

Rajesh Doraiswamy: Share it. Overall, the number that I saw was that I think we have improved on the number of days working capital, I mean, cycle, compared to what it was in the last quarter and last year. That is what I can say now. I will share, I think I will ask our investor relations team to share the details with you, sir.

Speaker #1: So that that is what I can say now. But I I will share I think I will ask our investor team investor relations team to share the details with you sir.

Speaker #1: And what was your second question?

Madhav Das: Thank you.

Rajesh Doraiswamy: What was your second question?

Speaker #3: How do you view leverage and capex requirements for this financial year—financial year 2027—particularly considering smart meter capacity, EV charging investments, and other manufacturing initiatives?

Madhav Das: How do you view leverage and CapEx requirements for this financial year, financial year 2027, particularly considering smart meter capacity, EV charging investments, and other manufacturing initiatives?

Speaker #1: I I think on the on the capex we we we will continue to see some capex in FY28. I think FY27 is going to be minimum.

Rajesh Doraiswamy: I think on the CapEx, we will continue to see some CapEx in FY28. I think FY27 is going to be minimum, not a major CapEx that we are going to do except for the regular balancing and maintenance CapEx, which will be approximately, if I take it right, close to around INR 15 or INR 16 crores. Apart from that, we have some CapEx that is planned for our Saudi plant, and we are also expanding our Ozour plant. These are some of the minor CapExes that we will be doing in this current year. As I mentioned, I think we are operating at lower capacity utilization in our wire and cable, so there is no CapEx expected as of now. In the switchgear business, next year we will be seeing some CapEx for capacity expansion.

Speaker #1: Not major capex that we are going to do except for the regular balancing and maintenance capex, which will be approximately, if I take it right, close to around ₹15 or ₹16 crores.

Speaker #1: Apart from that, we have some capex that is planned for our Saudi plant, and we are also expanding our Ozur plant. So these are some of the minor capexes that we will be doing in this current year.

Speaker #1: And as I mentioned, I think we are operating at a lower capacity utilization in our wire and cable. So, there is no capex expected as of now.

Speaker #1: And in the switchgear industry, in the switchgear business next year, we will be seeing some capex for capacity expansion. On the smart meter and EV charging, we are not expected to do any major capex as of now because we still have capacity available for growth in those two businesses.

Rajesh Doraiswamy: On the smart meter and EV charging, we are not expected to do any major CapEx as of now because we still have capacity available for growth in those two businesses.

Speaker #3: Okay, sir. Thank you so much, sir.

Madhav Das: Okay, sure. Thank you so much, sir.

Speaker #2: Thank you. The next question comes from the line of Balla Murali Krishna from Oman Investment Advisors. Please go ahead.

Operator: Thank you. The next question comes from the line of Bala Krishna from Oman Investment Advisors. Please go ahead.

Speaker #3: Hi, good morning, sir. I actually have an opening remark, sir. Could you please explain and help me to understand this margin strategy for this year? Earlier, we had a 9.5% target.

Bala Krishna: Hi. Good morning, sir.

Rajesh Doraiswamy: Good morning.

Bala Krishna: Actually, opening remarks. Could you please explain, help me to understand this margin trajectory of this year? Earlier we have 9.2% target. By seeing this commodity cycle has compressed the margins. How do you see the financial year

Speaker #3: By seeing this from our cycle comparison—the margins—how do you figure the financial year results?

Speaker #1: Is that can you repeat the question sir? I didn't get the. I understand that you're asking about the margin? You you you're you're asking for a guidance for the full year?

Rajesh Doraiswamy: Sir, can you repeat the question, sir? I didn't get the

Rajesh Doraiswamy: Sir, can you repeat the question, sir? I didn't get the-

Bala Krishna: Yeah.

Rajesh Doraiswamy: I understand that you're asking about the margin.

Bala Krishna: Yes.

Rajesh Doraiswamy: You're asking for a guidance for the full year?

Speaker #3: Yeah, yes, yes. And also, I think we took some price increase in February and March. So, further, have you taken any price increase? Or even if you took a price increase, is this escalation in the commodity price suppressing margins again?

Bala Krishna: Yeah. Also, I think we took some price increase in February and March. Further, have you taken any price increase, or even if you took price increase with the escalation in the commodity price, suppresses the margin again? Could you please help me to understand?

Speaker #3: Could you please help me to understand?

Speaker #1: We have taken price increases in February, March, and also in May and June, and we are also taking a price increase again in August.

Rajesh Doraiswamy: We have taken price increase in February, March, and also in May, June. We are also taking a price increase again in August. We are doing a calibrated price revisions of our products so that ensures that all these commodity price increases pass through. If you see the results, I think there is a close to 3.2% elevation in the raw material consumption, which is nothing but our margin compression. For this 3.2 compression, this percentage would have straightaway been our EBITDA percentage growth. We believe that whatever price increase we have done, we'll take care of the commodity price rise when passed through to the customers.

Speaker #1: So we we are doing a calibrated price revisions of our products so that that ensures that all these commodity price increase is passed through and if you see our in the the the results I think there is a close to 3.2% elevation in the raw material consumption.

Speaker #1: Which is nothing but our margin contraction. So, if not for this 3.2 compression, this percentage would have straightaway been our EBITDA percentage.

Speaker #1: Growth. So we we believe that whatever price increase we have done we will we'll be we'll take care of the commodity price rise and pass through to the customers.

Speaker #3: Okay, sir. So, as of February 27, what kind of margins are you expecting, sir?

Bala Krishna: Okay, sir. At regular interval, what kind of margins you are expecting from that?

Speaker #1: I I think I already mentioned I think this full year we we expect between 8 and 8 and a half percent margin EBITDA margin for the full year.

Rajesh Doraiswamy: I think I already mentioned, I think this full year we expect between 8% and 8.5% EBITDA margin for the full year.

Speaker #3: Okay, fine. And in the smart meter stand, sir, I think you had a year of something like 22 crores earlier. So that is still available, you say, sir?

Bala Krishna: Okay, fine. Sir, in the smart meters front, sir, I think you have a GE of something like INR 22 crores earlier. That is still available with you, sir? Or is it been dispatched to customer?

Speaker #1: 22 crores of what sir?

Rajesh Doraiswamy: INR 22 crores of what, sir?

Speaker #3: Finished goods of smart meter, sir.

Bala Krishna: Finished goods of smart meters, sir.

Speaker #1: Yes, yes, yes. We also have pending orders, and we also have finished goods, but we are waiting for clearance from the customer for dispatch.

Rajesh Doraiswamy: Yes. We also have pending order, and we also have finished goods, but we are waiting for the clearance from the customer for dispatch.

Speaker #3: So, I think we approached almost all AMSs for this collaboration, sir. And smart meter from Tamil Nadu to enter, sir, what are your expectations, and how do you think—will we get any opportunity to participate in supplying this smart meter?

Bala Krishna: I think you approached almost all EMS for this collaboration, sir. On the smart meter front, Tamil Nadu tender, sir, what is your expectations and how do you think whether we'll get any opportunity to participate in supplying this smart meter?

Speaker #1: The Tamil Nadu tender, as of now, is cancelled, and we expect new tenders to come in the coming year, or in the next few months.

Rajesh Doraiswamy: Tamil Nadu tender, as of now it is canceled, and we expect the new tenders to come in the coming year or in the next few months. We don't know what the government stand on that is. Though they have announced that 50 lakh smart meters will be installed in Chennai alone, but we still don't know the details of it. Under what scheme they're going to buy this, how they're going to buy this. As and when there is a tender that will come out, I think we will be eligible to participate, and we will definitely participate in those tenders.

Speaker #1: We don't know what the government's stand on that is. Though they have announced that 5 million smart meters will be installed in Chennai alone, we still don't know the details of it—under what scheme they are going to buy this, how they are going to buy this.

Speaker #1: But as and when there is a tender that comes out, I think we will be eligible to participate, and we will definitely participate in those tenders.

Speaker #3: Okay, sir. We'll directly participate in the government tenders, right?

Bala Krishna: You will directly participate in the government tenders, right?

Speaker #1: Yes. Yes.

Rajesh Doraiswamy: Yes.

Speaker #3: Okay. So and one more thing sir on this new products recently we developed some new products for this railways and also one is for that control measurements for HVAC.

Bala Krishna: Okay. One more thing on this new products. Recently you developed some new products for this railway and also one is for that temperature level control measurements for HVAC. Is there traction or any improvement in the numbers for those?

Speaker #3: How is the traction of any improvement with the vendors?

Speaker #1: So, railway business is going on—going strong. I think we—I don't have the figures right now, but we continue to grow with the railway business.

Rajesh Doraiswamy: Railway business is going on, going strong. I think I don't have the figures right now, but we continue to grow with the railway business. Whatever product we did, it was already an existing product. With the new technology, we were able to reduce the cost of the product and compete in the tenders in a much better way and get better share of business. That's what we have done. On the HVAC contactors, I think the business is picking up. That is for the American market. After the tariff moderation in US, I think the business has started picking up. We will see better business this year.

Speaker #1: And whatever product we did, it was already an existing product. With a new technology, we were able to reduce the cost of the product and compete in the tenders in a much better way, and get a better share of business.

Speaker #1: So that's what we have done. On the HVAC contactors, I think the business is picking up. That is for the American market. And after the tariff moderation in the US, I think the business has started picking up.

Speaker #1: We will see better business this year.

Speaker #3: Okay. And for the subsidies, sir, what should be the potential over here, and what kind of products are we going to manufacture here?

Bala Krishna: Okay. On Saudi subsidiary, sir, what would be the potential over here and what kind of products we are going to manufacture over here? How do you see the-

Speaker #3: And how do you.

Speaker #1: Yeah. We are starting with only two products as of now in Saudi. That is the wire duct, that is cable duct, and terminal connectors.

Rajesh Doraiswamy: We are starting with only two products as of now in Saudi. That is the wire duct, cable duct, and terminal connectors. These are the two products that we are planning to start immediately when we start operations, which we are planning to start sometime in September, October. These are the two products that we're going to start. This financial year, we are not seeing any major revenues coming in from the Saudi plant. It will be only a transition of revenue from here to there. The new customers and new revenues, additional revenue from Saudi plant will start from next year. In the first year of operation, that is FY28, we expect it will be around INR 25 crore of additional revenue that will come from the Saudi plant.

Speaker #1: These are the two products that we are planning to start immediately when we begin operations, which we are planning to start sometime in September or October.

Speaker #1: These are the two products that we are going to start, and this financial year we are not seeing any major revenues coming in from the Saudi plant.

Speaker #1: It will be only a transition of revenue from year to year, and the new customers and additional revenue from the Saudi plant will start from next year.

Speaker #1: In the first year of operation, that is FY28, we expect there will be around ₹25 crores of additional revenue that will come from the Saudi plant.

Speaker #3: Okay. Okay, sir. That's all from us. Thank you. All the best.

Bala Krishna: Okay, sir. That's all from my side. Thank you. All the best.

Speaker #2: Thank you. That was the last question. I would now like to hand the conference over to Mr. Rajesh Doraswamy, Joint Managing Director of Salzer Electronics Limited, for closing comments.

Operator: Thank you. That was the last question, I would now like to hand the conference over to Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Limited, for closing comments. Thank you. Over to you, sir.

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

Speaker #1: Thank you. Otherwise, thank you very much, and thank you, everyone. I would once again like to stress that this quarter's margin pressure is definitely a concern for all of the investors.

Rajesh Doraiswamy: Thank you, Adharva. Thank you very much, thank you, everyone. I would once again like to stress that this quarter's margin pressure is definitely a concern for all of the investors. We also understand the concern, we are working on it to make this normalized. As I said in the call, this is not a Salzer-specific issue. This is an industry-wide challenge that we are facing today, we are confident that we will overcome this short-term headwinds. Looking forward to continued interaction with all of you. Thank you.

Speaker #1: We also understand the the concern and we are working on it to make this normalized and as I as I said in the call this is not a Salzer specific issue.

Speaker #1: This is an industry-wide challenge that we are facing today, and we are confident that we will overcome these short-term headwinds. We look forward to continued interaction with all of you.

Speaker #1: Thank you.

Operator: On behalf of Salzer Electronics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Browse all earnings call transcripts

Q1 2027 Salzer Electronics Ltd Earnings Call

Request TrialDemo

Salzer

Earnings