Q1 2027 Amber Enterprises India Ltd

August 14, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Amber Enterprises India Limited. 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 presentation concludes.

Operator 2: Ladies and gentlemen, good day, and welcome to the Q1 FY27 earnings conference call of Amber Enterprises India Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jasbir Singh, Executive Chairman and CEO and Whole-Time Director of Amber Enterprises India Limited. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to the Q1 FY 2027 earnings conference call of Amber Enterprises India Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jasbir Singh, Executive Chairman and CEO and Whole-Time Director of Amber Enterprises India Limited. Thank you, and over to you, sir.

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

Speaker #1: I now hand the conference over to Mr. Jasbir Singh, Executive Chairman and CEO, Amber Enterprises India Limited. Thank you, and over to you, sir.

Speaker #2: Hello, good morning, and thank you all for joining the call. On the call today, I am joined by Mr. Daljit Singh, our Managing Director.

Jasbir Singh: Hello. Good morning, and thank you all for joining the call. On the call today, I am joined by Mr. Daljit Singh, our Managing Director, Mr. Sachin Gupta, Whole-Time Director, Mr. Sanjay Arora, Whole-Time Director of IL JIN Electronics, Mr. Sudhir Goyal, Group CFO. We have uploaded our presentation on the exchanges, and I hope everyone had an opportunity to go through the same. Let me first briefly talk about the strategic initiatives during this quarter. Firstly, on our manufacturing collaboration agreement with Oppo. Laying a strong foundation for the future growth, our group is set to foray into mobile phone through a manufacturing collaboration agreement with Oppo Mobiles India, expanding our presence in the largest segment of the electronics industry. The scope covers three brands, Oppo, OnePlus, and realme. I am pleased to update that the initial phase of the collaboration is progressing well.

Speaker #2: Mr. Sachin Gupta, whole-time Director; Mr. Sanjay Arora, whole-time Director of Iljin Electronics; Mr. Sudhir Goel, Group CFO—we have uploaded our presentation on the exchanges, and I hope everyone had an opportunity to go through the same.

Speaker #2: Let me first briefly talk about the strategic initiatives during this quarter. Firstly, on our manufacturing collaboration agreement with OPPO. Laying a strong foundation for future growth, our group is set to foray into mobile phones through a manufacturing collaboration agreement with OPPO Mobiles India, expanding our presence in the largest segment of the electronics industry.

Speaker #2: The scope covers three brands: OPPO, OnePlus, and Realme. I am pleased to update that the initial phase of the collaboration is progressing well. Through a series of joint working sessions, we are working closely on key priorities and execution milestones.

Jasbir Singh: Through a series of joint working sessions, we are working closely on key priorities and execution milestones. We have also onboarded a Chief Operating Officer for the mobile vertical, bringing along extensive experience and deep expertise from the mobile industry. On timeline, we are on course to commence the trial production by Q4 of FY27 and commercial production to begin Q1 of FY28. On the scale front, we expect to begin with around 8 million units in the first year, followed by a calibrated phase-wise ramp-up, and expect to double to almost about 15, 16 million in the second year of operations. To reiterate, we view this as a beginning of a longer relationship with Oppo, and we will explore additional avenues of collaboration aligned with the Government of India's vision of Atmanirbhar Bharat, with a focus on increasing local value addition gradually.

Jasbir Singh: Through a series of joint working sessions, we are working closely on key priorities and execution milestones. We have also onboarded a Chief Operating Officer for the mobile vertical, bringing along extensive experience and deep expertise from the mobile industry. On timeline, we are on course to commence the trial production by Q4 of FY 2027 and commercial production to begin Q1 of FY28. On the scale front, we expect to begin with around 8 million units in the first year, followed by a calibrated phase-wise ramp-up, and expect to double to almost about 15, 16 million in the second year of operations. To reiterate, we view this as a beginning of a longer relationship with Oppo, and we will explore additional avenues of collaboration aligned with the Government of India's vision of Atmanirbhar Bharat, with a focus on increasing local value addition gradually.

Speaker #2: We have also onboarded a Chief Operating Officer for the mobile vertical, bringing along extensive experience and deep expertise from the mobile industry. On the timeline, we are on course to commence trial production by Q4 FY27, and commercial production is set to begin in Q1 FY28.

Speaker #2: On the scale front, we expect to begin with around 8 million units in the first year, followed by a calibrated, phase-wise ramp-up, and expect to double to almost about 15–16 million in the second year of operations.

Speaker #2: To reiterate, we view this as the beginning of a longer relationship with OPPO, and we will explore additional avenues of collaboration aligned with the Government of India's vision of Atmanirbhar Bharat, with a focus on increasing local value addition gradually.

Speaker #2: Secondly, on the ascent K circuit expansion front, I am pleased to share that we recently conducted the groundbreaking ceremony of the HDI PCB facility at Jewar, near the new Noida Airport in Uttar Pradesh.

Jasbir Singh: Secondly, on the Ascent-K Circuit expansion front, I am pleased to share that we recently conducted the groundbreaking ceremony of HDI PCB facility at Jewar, near Noida Airport in Uttar Pradesh. The facility will bring together the complementary strengths of Amber Group and Korea Circuit Company to localize the production of HDI PCBs, which are currently heavily import-dependent, leading to greater import substitution as well as creation of employment opportunities in the state of Uttar Pradesh. The Ascent Circuit's construction is progressing well for the multi-layer PCB facility at Hosur in Tamil Nadu. Switching to performance, consolidated revenue of Amber grew by 13% year-on-year, reaching INR 3,888 crore for the quarter. Operating EBITDA grew by 28% to INR 337 crore and adjusted PAT of INR 126 crore, recording growth of 19%. Adjusted PAT is before the exceptional losses. Let me now take you through the divisional performances.

Speaker #2: The facility will bring together the complementary strengths of Amber Group and Korea Circuit Company to localize the production of HDI PCBs, which are currently heavily import-dependent.

Speaker #2: ...leading to greater import substitution, as well as the creation of employment opportunities in the state of Uttar Pradesh. The Ascent Circuits construction is progressing well for the multi-layer PCB facility at Hosur in Tamil Nadu.

Speaker #2: Switching to performance, consolidated revenue of Amber grew by 13% year on year, reaching ₹3,888 crore for the quarter. Operating EBITDA grew by 28% to ₹337 crore, and adjusted PAT was ₹126 crore, recording growth of 19%.

Speaker #2: Adjusted PAT is before the exceptional losses. Let me now take you through the divisional performances. Firstly, on the Consumer Durables division, this division reported revenue growth of 8% on a year-over-year basis. Let me emphasize that this growth should be viewed in the context of the large base from the previous year for Amber in Q1.

Jasbir Singh: Firstly, on the Consumer Durable division. This division reported revenue growth of 8% year-on-year basis. Let me emphasize the growth to be viewed in the context of large base of previous year of Amber in Q1. The operating EBITDA grew by 12%, despite the cost headwinds from the commodity prices and minimum wage revisions. Looking ahead, for the full year, we expect the growth in tandem with the RAC industry growth. Coming to our Electronics division. The division reported revenue growth of 29% to touch INR 985 crore. The operating EBITDA more than doubled to INR 107 crore and margin has expanded to 10.8%. While the journey towards value-oriented business is yielding dividends, however, during the quarter, the bare printed circuit board business witnessed margin compression amid steep rise in the Copper-Clad Laminate cost.

Speaker #2: The operating EBITDA grew by 12%, despite the cost headwinds from commodity prices and the minimum wage revision. Looking ahead, for the full year, we expect growth to be in tandem with the RAC industry growth.

Speaker #2: Coming to our Electronics division, the division reported revenue growth of 29% to reach ₹985 crores. The operating EBITDA more than doubled to ₹107 crores, and margin has expanded to 10.8%.

Speaker #2: While the journey towards value-oriented business is yielding dividends, during the quarter the bare printed circuit board business witnessed margin compression amid a steep rise in copper-clad laminate cost.

Speaker #2: Typical of the bare PCB industry, second-tier suppliers experience a time lag of around two quarters for price pass-on. The gradual price pass-through to customers is underway and progressing very well.

Jasbir Singh: Typical of the bare PCB industry, second-tier suppliers experience a time lag of around two quarters for price pass-on. The gradual price pass through the customers is underway and progressing very well. On the Railway Subsystem and Defense division, revenue for the division grew by 18%, while the operating EBITDA declined by 26%. It largely impacted by product mix, continued commodity inflation, particularly copper along with currency depreciation, and minimum wage revisions in Haryana. For the full year, we expect this division to deliver growth of about 30% to 35% for the full year as informed earlier. On the expansion front, Sidwal's greenfield facility of heating ventilation air conditioners, pantry, doors, and gangways in Faridabad is now operational, positioning us well for scalable growth and business expansion.

Speaker #2: On the railway subsystem and defense division, revenue for the division grew by 18%, while the operating EBITDA declined by 26%. This was largely impacted by product mix, continued commodity inflation—particularly copper—along with currency depreciation, and minimum wage revisions in Haryana.

Speaker #2: For the full year, we expect this division to deliver growth of about 30% to 35%, as informed earlier. On the expansion front, Sidwal's greenfield facility for heating, ventilation, air conditioners, pantry doors, and gangways in Faridabad is now operational.

Speaker #2: Positioning us well for scalable growth and business expansion. Overall, on the margin, let me reiterate, the business continues to face pressure from elevated commodity prices, currency depreciation, and minimum wage revision.

Jasbir Singh: Overall, on the margin, let me reiterate, the business continue to face pressure from elevated commodity prices, currency depreciation, and minimum wage revision, and expect this to persist through H1, which is temporary in nature and expect to normalize as macro environment improves. Now let me hand over to Sudhir Goyal, our CFO, for the financial highlights.

Speaker #2: And we expect this to persist through H1, which is expected to normalize as the macro environment improves. Now, let me hand over to Sudhir Goyal, our CFO, for the financial highlights.

Speaker #3: Hi, good morning everyone. Now, let me take you through the consolidated financial highlights. Revenue for Q1 FY27 increased to ₹3,888 crores, compared to ₹3,449 crores in the same quarter of the previous year.

Sudhir Goyal: Hi. Good morning, everyone. Let me take you through the consolidated financial highlights. Revenue for Q1 2027 increased to INR 3,888 crores compared to INR 3,449 crores in the same quarter previous year, recording a growth of 13%. Operating EBITDA for the quarter increased to INR 337 crores against INR 263 crores in Q1 2027, reflecting a growth of 28% year-on-year. For clarification, operating EBITDA is before impact of ESOP expenses, other non-operating income and expenses. Q1 2027 operating EBITDA is after adjusting for the consumption of inventory that had been fair valued at the time of purchase price allocation for the new acquisitions, viz. Power-One, Unitronics, and Shogini, aggregating to an impact of INR 15.35 crores, representing increase in raw material consumption in the consolidated financial statements. This is a non-operating nature of a raw material consumption expansion in the consolidated financials.

Speaker #3: Recording a growth of 13%. Operating EBITDA for the quarter increased to ₹337 crore against ₹263 crore in Q1 FY27, reflecting a growth of 28% year on year.

Speaker #3: For clarification, operating EBITDA is before the impact of ESOP expenses and other non-operating income and expenses. And for quarter one, financial year '27, operating EBITDA is after adjusting for the consumption of inventory valued at the time of purchase price allocation for the new acquisitions — Power One, Unitronics, and Shogini.

Speaker #3: Aggregating to an impact of ₹15.35 crores, representing an increase in raw material consumption in the consolidated financial statements. So, this is a non-operating nature of a raw material consumption expansion in the consolidated financials.

Speaker #3: Adjusted PAT for the quarter stood at ₹126 crore against PAT of ₹106 crore in Q1 of financial year '26. This adjusted PAT of ₹126 crore also has an impact of ₹15.35 crore; if we add that back, this will further increase to ₹141 crore.

Sudhir Goyal: Adjusted PAT for the quarter stood at INR 126 crores against PAT of INR 106 crores in Q1 2026. This adjusted PAT of INR 126 crores also has an impact of INR 15.35 crores. If we add back that, this will further increase to INR 141 crores. Adjusted PAT of Q1 2027 is before the exceptional loss of INR 123 crores. Let me take you through the divisional performance overview. Firstly, revenue and operating EBITDA details of our divisional performance are not comparable with the published segmental results. Starting with the Consumer Durable division, the Consumer Durable division reported revenue of INR 2,758 crores for the quarter compared to INR 2,560 crores in Q1 2026, reflecting a growth of 8% year-on-year.

Speaker #3: Adjusted PAT for quarter one, financial year '27, is before the exceptional loss of ₹123 crores. Now, let me take you through the divisional performance overview.

Speaker #3: Firstly, the venue and operating EBITDA details of our divisional performance are not comparable with the published segmental results. Starting with the consumer durable division, the consumer durable division reported revenue of 2758 crores for the quarter compared to 2560 crores in quarter one financial year 26, reflecting a growth of 8% year on year.

Speaker #3: Operating EBITDA for the quarter increased by 12% year-on-year to ₹214 crore, compared to ₹192 crore in the previous year. Coming to the Electronics division performance, revenue for the quarter increased to ₹985 crore, compared to ₹766 crore in Q1 of financial year 2026.

Jasbir Singh: Operating EBITDA for the quarter increased by 12% year-on-year to INR 214 crores compared to INR 192 crores in previous year. Coming to the Electronic division performance, revenue for the quarter increased to INR 985 crores compared to INR 766 crores in Q1 2026, reflecting a strong growth of 29% year-on-year. Operating EBITDA for the quarter recorded a growth of 117% year-on-year and stood at INR 107 crores compared to INR 49 crores in the previous year. Moving to Railway Subsystem and Defense divisional performance. The revenue for the quarter increased to INR 144 crores compared to INR 123 crores in Q1 2026, reflecting a growth of 18% year-on-year. Operating EBITDA for the quarter got impacted by the product mix, commodity inflation, minimum wage revision, and resultant decline of 26% against previous year, from INR 22 crores to INR 16 crores.

Sudhir Goyal: Operating EBITDA for the quarter increased by 12% year-on-year to INR 214 crores compared to INR 192 crores in previous year. Coming to the Electronic division performance, revenue for the quarter increased to INR 985 crores compared to INR 766 crores in Q1 2026, reflecting a strong growth of 29% year-on-year. Operating EBITDA for the quarter recorded a growth of 117% year-on-year and stood at INR 107 crores compared to INR 49 crores in the previous year. Moving to Railway Subsystem and Defense divisional performance. The revenue for the quarter increased to INR 144 crores compared to INR 123 crores in Q1 2026, reflecting a growth of 18% year-on-year. Operating EBITDA for the quarter got impacted by the product mix, commodity inflation, minimum wage revision, and resultant decline of 26% against previous year, from INR 22 crores to INR 16 crores.

Speaker #3: Reflecting a strong growth of 29% year-on-year. Operating EBITDA for the quarter recorded a growth of 117% year-on-year and stood at ₹107 crore compared to ₹49 crore in the previous year.

Speaker #3: Moving to the railway subsystem and defense divisional performance, the revenue for the quarter increased to ₹144 crores compared to ₹123 crores in Q1 of financial year '26, reflecting a growth of 18% year-on-year.

Speaker #3: Operating EBITDA for the quarter got impacted by the product mix, commodity inflation, minimum wage revision, and the resultant decline of 25 to 26% against the previous year.

Speaker #3: From 22 crores to 16 crores. The division is expected to deliver 30% to 35% revenue growth in financial year '27. Thank you. And now, I request the operator to please open the floor for Q&A.

Jasbir Singh: The division is expected to deliver 30% to 35% revenue growth in 2027. Thank you. I request the operator to please open the floor for Q&A.

Sudhir Goyal: The division is expected to deliver 30% to 35% revenue growth in 2027. Thank you. I request the operator to please open the floor for Q&A.

Speaker #4: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A brief disclaimer, in order to ensure that the management is able to address questions from all participants on the conference, please limit your questions to two per participant. The first question is from the line of Santhosh Seshadri from Avendus Spark. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A brief disclaimer, in order to ensure that the management is able to address questions from all participants on the conference, please limit your questions to two per participant. The first question is from the line of Santhosh Seshadri from Avendus Spark. Please go ahead.

Speaker #4: 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 #4: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. A brief disclaimer: in order to ensure that management is able to address questions from all participants in the conference, please limit your questions to two per participant.

Speaker #4: The first question is from the line of Santosh Sheshadri from Evendus Park. Please go ahead.

Speaker #5: Hi there, thanks for taking up my question. So, my first question is on the mobile business and the export opportunity. Can you give us some color on any discussions with OEMs around this export opportunity and potentially tapping into the benefits of PLI?

Santhosh Seshadri: Hi there. Thanks for taking up my question. My first question is on the mobile business and the export opportunity. Can you give us some color on any discussion with OEMs around this export opportunity and potentially tapping in the benefits of PLI? Also, if you could walk us through the eligibility criteria for your business and whether you qualify for the same.

Speaker #5: And also, if you could walk us through the eligibility criteria for your business and whether you qualify for the same.

Speaker #2: Well, Santosh, on the mobile business, since we have yet to start from January, we want to do a gradual ramp up because this is a new segment we are adding.

Jasbir Singh: Well, Santhosh, on the mobile business, because we have yet to start from January, we want to do a gradual ramp-up because this is a new segment we are adding up. Yes, we are in discussion with them about the export opportunities, and they are also excited about it. But it is too early for us to comment because we want to first go and launch this product category as a new product category for Amber, which will be starting from almost about mid of Q4 somewhere, and then commercial production has to start from 1 April. Moving ahead, I think once we complete one year of our first domestic production, then we may think about the export opportunities.

Speaker #2: Yes, we are in discussion with them about the export opportunities, and they are also excited about it. But it's too early for us to comment because we want to first go and launch this product category as a new product category for Amber.

Speaker #2: This will be starting from almost about quarter four, mid of quarter four somewhere, and then commercial production has to start from the first of April.

Speaker #2: But moving ahead, I think once we complete one year of our first domestic production, then we may think about the export opportunities.

Speaker #5: And on the second part of the question, are we eligible for this PLI given our HDI PCB expansions?

Santhosh Seshadri: On the second part of the question, are we eligible for this PLI given our HDI, PCB expansions?

Speaker #2: So yes, there are three approvals which we have received on the ECMS scheme on the HDI PCB part. One is for ₹3,200 crore in Jewar airport.

Jasbir Singh: Yes, there are three approvals which we have received on the ECMS scheme on the HDI, PCB part. One is for INR 3,200 crore in Jewar Airport, then about INR 1,000 crore in Hosur, and INR 500 crore in Shogini, Pune. All three have been approved.

Speaker #2: Then about ₹1,000 crore in Hosur, and ₹500 crore in Shogini, Pune. All three are approved.

Speaker #5: Sorry to interrupt. So, just on the PLI benefits related to backward integration in mobile, are we eligible for that given that we are also expanding it?

Santhosh Seshadri: Sorry to interrupt. Just on the PLI benefits related to backward integration in the mobile. Are we eligible for that given that we are also expanding it?

Jasbir Singh: Draft guidelines are yet to come. Let the draft guidelines come, then we will be able to comment or answer to your questions.

Speaker #2: Draft guidelines have yet to come. Let the draft guidelines come; then we will be able to comment or answer your questions.

Speaker #5: All right. And on my second question, just on the PCB business—can you give us some color on the pricing structure here? Are there any fixed price contracts?

Santhosh Seshadri: All right. On my second question, just on the PCB business, can you give us some color on the pricing structure here? Are there any fixed price contracts? If yes, what proportion of the business is under fixed price contracts, and when does that come up for renewal?

Speaker #5: If yes, what proportion of the business is under fixed price contracts, and when does that come up for renewal?

Speaker #2: No, you see, we are a B2B company, Santosh. We pass on currency and commodity issues to the customers. In Amber, we can do it with a quarter lag because we are tier one.

Jasbir Singh: No. You see, we are a B2B company, Santhosh. We pass on currency and commodity issues to the customers. In Amber, we can do it in quarter lag because we are tier 1. At PCB, we are tier 2. There is a quarter lag. There are 2 quarter lags. What we have seen in July is that there are some customers who have increased the cost. Our margins are coming back to where it was. Let us hope that both Shogini and Ascent will be able to get it. I want to tell you that Copper-Clad Laminate, the prices continue to increase. Getting price revisions from customer has become a regular kind of event for us. It will keep on increasing because of artificial intelligence and data center requirements. There is a lot of shortage of Copper-Clad Laminate also.

Speaker #2: At PCB, we are tier two, so there is a quarter lag—there are two quarter lags. But what we have seen in July is that there are some customers who have increased the cost.

Speaker #2: So, our margins are coming back to where they were. Let us hope that both Shogini and Ascent will be able to get it. But I want to tell you that the price of copper clad laminate is continuing to increase.

Speaker #2: So, getting price revisions from customers has become a regular kind of event for us. It will keep on increasing because of artificial intelligence and data center requirements.

Speaker #2: And there's a lot of shortage of copper-clad laminate also, so there's some strategic inventory positioning also happening. But we are able to pass on to the customers all the price increases we have.

Jasbir Singh: There is a strategic inventory positioning also happening. We are able to pass on the customers all the price increase we have.

Speaker #5: Any color on the quantum of price increase that we could get?

Santhosh Seshadri: Any color on the quantum of price increase that we could.

Speaker #4: Mr. Sheshadri, may we request a return to the question queue for a follow-up? Thank you. The next question is from the line of Aditya Bhartiya from Investech.

Operator 2: Sorry to interrupt, Mr. Seshadri, may we request you to return to the question queue for a follow-up?

Operator: Sorry to interrupt, Mr. Seshadri, may we request you to return to the question queue for a follow-up?

Santhosh Seshadri: Thank you.

Operator 2: Thank you. The next question is from the line of Aditya Bhartia from Investec. Please go ahead.

Operator: Thank you. The next question is from the line of Aditya Bhartia from Investec. Please go ahead.

Speaker #4: Please go ahead.

Aditya Bhartia: Hi, good morning, Jasbir.

Speaker #5: Hi, good morning. Yes, that's a bit unusual. My first question is—hi, Jasbir. My first question is on the margins that we recorded. So, in this quarter, we haven't really seen any impact of raw material inflation or of rupee depreciation, at least on the consumer durables part of it.

Jasbir Singh: Hi, Aditya.

Aditya Bhartia: Hi, Jasbir. First question is on the margins that we recorded. In this quarter, pretty much we haven't really seen any impact of raw material inflation or of rupee depreciation, at least on the consumer durable part of it. How should we see it as we go forward? Was there any benefit of inventory that we may have been carrying? How's the outlook for margins looking like?

Speaker #5: So, how should we see it as we go forward? Was there any benefit from inventory that we may have been carrying, and how is the outlook for margins looking?

Speaker #2: I think it's a mix of a couple of things. I'll allow Sachin to answer your question, Aditya.

Jasbir Singh: I think it's a mix of couple of things. I'll allow Sachin to answer your question, Aditya.

Speaker #3: Hi, Aditya. See, actually, you know what has happened—because everyone knew that there was a QCO enforcement for the compressors and coppers, IGT, there was a lot of stocking that was happening.

Sachin Gupta: Hi, Aditya. See, actually what has happened, because everyone knew that there was a QCO enforcement for the compressors and copper IGT. There was a lot of stocking that was happening. Obviously that stocking of the compressors and copper has helped us to secure, I would say, the raw material at a better price. This was the one part. The second part was that, whatever products probably we have made in this quarter were majorly driven by the premium side. Whatever products we have made are majorly on the five-star category and the 2-ton category. Because of that, the realization of the margins are better. But every quarter this mix keeps on changing. I think the better is to see on the annualized basis. On annualized basis, I think so we should be in line to our projections only.

Speaker #3: So, obviously, that stocking of the compressors and copper has helped us to secure, I would say, the raw material at a better price. This was one part.

Speaker #3: The second part was that whatever products we have made in this quarter were majorly driven by the premium side. So, whatever products we have made are mainly in the five-star category and the two-ton category.

Speaker #3: So, because of that, the realization of the margins is better. But every quarter, this mix keeps on changing. I think it is better to see it on an annualized basis.

Speaker #3: So, on an annualized basis, I think we should be in line with our projections. It's not like the margins in this quarter will be reflecting the complete year outlook.

Sachin Gupta: It's not like that the margins in this quarter will be reflecting the complete year outlook.

Speaker #5: Sure, sure. And when you mentioned that in H1 we are likely to be seeing some margin compression, what kind of extent are we looking at?

Aditya Bhartia: Sure. When you mention that in H1 we are likely to be seeing some margin compression, what kind of an extent are we looking at?

Speaker #3: No, so we are not looking at any margin compression. What I’m saying is that the improvement in margins for this particular quarter should not be taken as an indication for the outlook for the complete year.

Sachin Gupta: No. We are not looking at any margin compression. What I am saying is that the improvement in the margins for this particular quarter should not reflect as an image for an outlook for the complete year. Because this particular quarter we had seen two benefits, one is the pre-stocking of the compressor and copper. Second is that the production mix in this quarter, we could see from our data, the major demand was for the premium product categories.

Speaker #3: Because this particular quarter, we had seen two benefits. One is the pre-stocking of the compressor and copper. Second is that the production mix in this quarter, we could see from our data, the major demand was for the premium product categories.

Speaker #5: Understood, understood. That's helpful. My second question is on the disruptions that we have seen on the Elgin side. The unfortunate incident that happened—is it something that has impacted production?

Aditya Bhartia: Understood. That is helpful. My second question is on the disruptions that we have seen on the IL JIN side, the unfortunate incident that happened. Is it something that is impacting production, or things are going smoothly over there?

Speaker #5: Or are things going smoothly over there?

Sachin Gupta: Aditya, basically, we have received permission to reconstruct the facility just yesterday from the departments. The assessment is undergoing, and we will intimate the exchanges. Let me just tell everybody on the call that the guided number of what we did last quarter, we are hopeful that we should be in line to deliver, despite of this disruption.

Jasbir Singh: Aditya, basically, we have received permission to reconstruct the facility just yesterday from the departments. The assessment is undergoing, and we will intimate the exchanges. Let me just tell everybody on the call that the guided number of what we did last quarter, we are hopeful that we should be in line to deliver, despite of this disruption.

Speaker #2: Aditya, basically, we have received permission to reconstruct the facility just yesterday from the departments. So, the assessment is ongoing, and we'll intimate the exchanges.

Speaker #2: But let me just tell everybody on the call that, regarding the guidance number of what we did last quarter, we are hopeful that we should be in line to deliver.

Speaker #2: Despite of this disruption.

Aditya Bhartia: Wonderful. Perfect, sir. Thank you so much.

Speaker #5: Perfect, sir. Thank you so much.

Speaker #4: Thank you. Ladies and gentlemen, you're requested to please limit your questions to two per participant. The next question is from the line of Dhruv Jain from Amber Capital.

Operator 2: Thank you. Ladies and gentlemen, you are requested to please limit your questions to two per participant. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.

Operator: Thank you. Ladies and gentlemen, you are requested to please limit your questions to two per participant. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.

Speaker #4: Please go ahead.

Speaker #6: Hi team, thanks so much for the opportunity. My first question is on the electronics division. While you've reported about 29% revenue growth, if I strip off the acquisition benefit, which was not there in the previous quarter, the growth seems lower.

Dhruv Jain: Hi, team. Thanks a lot for the opportunity. My first question is on the electronic division. While you have reported about 29% revenue growth, if I kind of strip off the acquisition benefit, which was not there in the base quarter, the growth seems lower. If you could just tell us why is that the case, and how should we look at the guidance for FY 2027 for the division for both margins and top line? That is my first question.

Speaker #6: So, if you could just tell us why that is the case, and how should we look at the guidance for FY27 for the division, for both margins and top line?

Speaker #6: That's my first question.

Speaker #2: Sanjay ji, will you take this question?

Sachin Gupta: Sanjayji, will you take this question?

Jasbir Singh: Sanjayji, will you take this question?

Speaker #6: Yes, sir. Am I clear? Can you hear me?

Sanjay Kumar Arora: Yes, sir. Am I clear? Can you hear me?

Sanjay Arora: Yes, sir. Am I clear? Can you hear me?

Speaker #2: Yes, audible.

Sachin Gupta: Yes.

Jasbir Singh: Yes.

Dhruv Jain: Yes.

Speaker #6: All right. I grew so actually what has happened is that in the EMS segment, like just to give you clarity, we have three segments in electronics division now.

Sanjay Kumar Arora: All right. Hi, Dhruv. So actually, what has happened is that in the EMS segment, just to give you clarity, we have three segments in electronics division now. One is EMS segment, the other is the PCB segment, and the third we categorize as industrials and automation segment. In the EMS segment, yes, the growth compared to last year, same quarter, got a little stunted. The main causes have been that our customers who are in the consumer durable segment, they were carrying quite a lot of inventory, and so the order book got reduced. Then some of the customers, they have shifted from sales to job work kind of category, so obviously the revenue got impacted because of that. The energy segment, that is the smart meter segment, degrew. The smart watch segment also degrew.

Sanjay Arora: All right. Hi, Dhruv. So actually, what has happened is that in the EMS segment, just to give you clarity, we have three segments in electronics division now. One is EMS segment, the other is the PCB segment, and the third we categorize as industrials and automation segment. In the EMS segment, yes, the growth compared to last year, same quarter, got a little stunted. The main causes have been that our customers who are in the consumer durable segment, they were carrying quite a lot of inventory, and so the order book got reduced. Then some of the customers, they have shifted from sales to job work kind of category, so obviously the revenue got impacted because of that. The energy segment, that is the smart meter segment, degrew. The smart watch segment also degrew.

Speaker #6: One is EMS segment. The other is the PCB segment. And the third we categorize as industrials and automation segment. So in the EMS segment, yes, the growth compared to last quarter, last year same quarter got a little stunted.

Speaker #6: The main causes have been that our customers, who are in the consumer durables segment, were carrying quite a lot of inventory, and so the order book got reduced.

Speaker #6: Then some of the customers, they have shifted from sales to job work kind of category. So obviously, the revenue got impacted because of that.

Speaker #6: The energy segment—that is, the smart meter segment—degrew. The smart watch segment also degrew. Apart from this, let me assure you that our full-year guidance for the EMS segment, whatever we gave, still remains intact.

Sanjay Kumar Arora: Apart from this, let me assure you that our full year guidance for the EMS segment, whatever we gave, still remains intact. We are quite confident we will achieve that.

Sanjay Arora: Apart from this, let me assure you that our full year guidance for the EMS segment, whatever we gave, still remains intact. We are quite confident we will achieve that.

Speaker #6: We are quite confident we will achieve that. Thanks, sir. Very clear. Yes, sir. The second question is on the mobility side. So obviously, we've seen a margin compression because of raw material and labor-related issues.

Dhruv Jain: Thanks, sir. Very clear. Sir, the second question is on the mobility side. Obviously we have seen a margin compression because of raw material and labor-related issues. In terms of your order book, assuming that is a fixed price sort of an order book, do we see this pressure going forward as well? How should one think about the sustainable margins in this vertical starting the H2? You mentioned about the H1. Thanks.

Speaker #6: In terms of your order book, right, assuming that's a fixed-price sort of an order book, do we see this pressure going forward as well?

Speaker #6: And how should one think about the sustainable margins in this vertical starting the second half? You mentioned about the first-half compression, right?

Speaker #2: Dhruv, there are two or three factors here. First, in the railway segment—the Indian railway segment—these are fixed price contracts. You can't go to the railways and say that my commodity cost has changed or that my currency rate has changed.

Sachin Gupta: Dhruv, there are two, three factors here. First is, in the Indian railway segment, these are fixed price contracts. You cannot go to railways and say that my commodity has changed or my currency has changed. You need to fulfill the tender obligations as you have submitted the tender. Second, apart from the railway, the other businesses like metro division business, defense business, the bus air conditioning business, the data center air conditioning business, that has a price variation clause. Incidentally, in this quarter, the product mix was such that the first few products, the new products which we received the orders, have been supplied through principals directly because our factory has just started. Our approvals now are under process. But because we had taken the contracts, the first two to three trains of each have been supplied directly, which was just a pass on from us.

Jasbir Singh: Dhruv, there are two, three factors here. First is, in the Indian railway segment, these are fixed price contracts. You cannot go to railways and say that my commodity has changed or my currency has changed. You need to fulfill the tender obligations as you have submitted the tender. Second, apart from the railway, the other businesses like metro division business, defense business, the bus air conditioning business, the data center air conditioning business, that has a price variation clause. Incidentally, in this quarter, the product mix was such that the first few products, the new products which we received the orders, have been supplied through principals directly because our factory has just started. Our approvals now are under process. But because we had taken the contracts, the first two to three trains of each have been supplied directly, which was just a pass on from us.

Speaker #2: So, you need to fulfill the tender obligations, as you have submitted the tender. Second, apart from the railway, the other businesses, like the metro division business, defense business, bus air conditioning business, and data center air conditioning business, have a price variation clause.

Speaker #2: Incidentally, in this quarter, the product mix was such that the first few products—the new products for which we received the orders—have been supplied through principals directly because our factory has just started.

Speaker #2: So, our approvals are now under process. But because we had taken the contracts, the first two to three trains of each have been supplied directly, which was just a pass-on from us.

Speaker #2: So that has also brought down the margins. And because it was just trading which we did. And second is, of course, the factors of currency and commodity, and the minimum wage in Haryana, which was shot up by 35% in one go.

Sachin Gupta: That has also brought down the margins. And because it was just a trading which we did. Second is, of course, the factors of currency and commodity and minimum wage in Haryana, which was shot up by 35% in one shot.

Jasbir Singh: That has also brought down the margins. And because it was just a trading which we did. Second is, of course, the factors of currency and commodity and minimum wage in Haryana, which was shot up by 35% in one shot.

Jasbir Singh: All these factors are. But let me give you the guidance from our side on the revenue front, 30% to 35% looks doable. And the margins in this financial year, we look at around in the range of 15% to 16% for this division.

Speaker #2: All these factors have. But let me give you the guidance from our side. On the revenue front, 30 to 35% looks doable. And the margins in this financial year, we look at around in the range of 15 to 16% for this division.

Speaker #6: Got it, sir. Thanks a lot.

Dhruv Jain: Got it, sir. Thanks a lot. Bye-bye too.

Speaker #4: Thank you. The next question is from the line of Keshav Lohathi from HDFC Securities. Please go ahead.

Operator 2: Thank you. The next question is from the line of Keshav Lohani from HDFC Securities. Please go ahead.

Operator: Thank you. The next question is from the line of Keshav Lohani from HDFC Securities. Please go ahead.

Speaker #5: Thank you for the opportunity. But I can see the minority interest has turned negative this time. Why is that so?

Keshav Lohani: Hi, thank you for the opportunity. I can see the minority interests have turned negative this time. Why is that so? A sharp swing.

Keshav Lahoti: Hi, thank you for the opportunity. I can see the minority interests have turned negative this time. Why is that so? A sharp swing.

Speaker #2: Yes. So you know

Sudhir Goyal: Yes. You know that this particular quarter, we acquired additional stake of Ascent Circuits. Okay. Ascent Circuits, there is no minority interest, but minority interest has reduced.

Speaker #6: In this particular quarter, we acquired an additional stake in Ascent Circuits. So, regarding Ascent Circuits, there is no minority interest, but the overall minority interest has reduced.

Speaker #5: Okay.

Speaker #6: Hello? No, no.

Keshav Lohani: Okay.

Keshav Lahoti: Okay.

Sudhir Goyal: Hello? No.

Speaker #5: Yeah, yeah.

Keshav Lohani: Yeah, I can hear.

Keshav Lahoti: Yeah, I can hear.

Speaker #6: Just come up with a question again. Minority interest has reduced.

Sudhir Goyal: Just come up with the question again. Minority interest has reduced.

Speaker #5: Oh, we can see earlier minority interest was a positive number that was allocated to the non-minority shareholders. But this time, this number has turned negative.

Keshav Lohani: We can see earlier minority interest was a positive number what was allocated to the non-minority shareholder, but this time this number has turned negative. For example, last quarter it was INR 28 crore positive number, now it is more like a -INR 19 crore. This is a sharp swing of INR 50 crore in this number. Why is that so?

Keshav Lahoti: We can see earlier minority interest was a positive number what was allocated to the non-minority shareholder, but this time this number has turned negative. For example, last quarter it was INR 28 crore positive number, now it is more like a -INR 19 crore. This is a sharp swing of INR 50 crore in this number. Why is that so?

Speaker #5: So, for example, last quarter it was ₹28 crore, a positive number. Now it's more like minus ₹19 crore. This is a sharp swing of ₹50 crore in this number.

Speaker #5: So why is that so?

Speaker #2: We can take a look.

Speaker #6: Maybe I need to check that, why it has happened. I'll come back to you separately after this call.

Sudhir Goyal: Maybe I need to check that, why it has happened. I will come back to you separately after this call.

Speaker #5: Understood. Got it.

Keshav Lohani: Understood. Got it. What is the EBITDA margin guidance for the consumer durable business?

Keshav Lahoti: Understood. Got it. What is the EBITDA margin guidance for the consumer durable business?

Speaker #6: And what is the margin guidance for the consumer durables business?

Speaker #2: So, as of now, we are not giving any guidance in terms of percentage, because that all depends on the product mix, as well as the prices of the commodities and the foreign currency.

Sudhir Goyal: So as of now, we are not giving any guidance in terms of percentage, because that all depends on the product mix as well as the prices of the commodities and the foreign currency. It is very difficult to give you any guidance. So we maintain that on the quarterly lag basis, we are able to pass on the price hike and the commodity exchange rate difference as well, and we get the margins accordingly.

Speaker #2: So it's very difficult to give you any guidance. However, we maintain that on a quarterly basis, we are able to pass on the price hikes and the commodity exchange rate differences as well.

Speaker #2: And we get the margins accordingly.

Speaker #6: And then, it's a seasonal business also. You don't know how the Q4 season will pan out to be. So that's why, to guide any number here will be very, very difficult for us.

Jasbir Singh: Then it is a seasonal business also. You do not know how the Q4 season will pan out to be. So that is why to guide any number here will be very difficult for us.

Speaker #5: Got it. Last question from my side. As discussed earlier also, how has it been in Fireville? I get it—the guidance you have maintained for the division—but what will be the impact on the business because of this?

Keshav Lohani: Got it. Last question from my side. As discussed earlier also, how has IL JIN fire will get it the guidance you have maintained for the division, but what will be the impact on the business because of this? What sort of impact should we expecting due to?

Keshav Lahoti: Got it. Last question from my side. As discussed earlier also, how has IL JIN fire will get it the guidance you have maintained for the division, but what will be the impact on the business because of this? What sort of impact should we expecting due to?

Speaker #5: What sort of impact should we expect in Q2?

Speaker #2: Yes, as I mentioned, we received permission just yesterday from the authorities. So, today the work will start, and we'll reassess the complete loss.

Jasbir Singh: Yeah, as I explained that we have received a permission just yesterday from the authority. Today, the work will start, and we will reassess the complete loss. Let me tell everybody on the call that we are adequately insured. We do not see any issues on the refurbishment side or extra CapEx which we will have to bring in, because the building inventory, machines, everything is insured properly. The impact on the business side, because of our multi-geographic location in IL JIN, we have been immediately been able to shift businesses to other locations. We do not see a very big impact, but exact amount we will be assessing, and we will let you know within the coming week.

Speaker #2: But let me tell everybody on the call that we are adequately insured, so we don't see any issues on the refurbishment side or extra capex that we'll have to bring in because the building inventory, machines, everything is insured properly.

Speaker #2: The impact on the business side—we have been able, because of our multi-geographic location in Iljin, we have been immediately able to shift businesses to other locations.

Speaker #2: So, we don't see a very big impact, but the exact amount we will be assessing, and we'll let you know within the coming week.

Speaker #5: I understand. Got it. That is helpful. All the best.

Keshav Lohani: Understood. Got it. That is helpful. All the best.

Keshav Lahoti: Understood. Got it. That is helpful. All the best.

Speaker #4: Thank you. The next question is from the line of Samit Senna from Acquire. Please go ahead.

Operator 2: Thank you. The next question is from the line of Ashwin Sinha from Macquarie. Please go ahead.

Operator: Thank you. The next question is from the line of Ashwin Sinha from Macquarie. Please go ahead.

Speaker #6: Yes, thank you. I have a couple of questions. First, I wanted to understand, in terms of the increase in input costs, how do we pass that on to your customers?

Ashwin Sinha: Yes. Thank you. A couple of questions. Jaipreet, first I wanted to understand in terms of the increasing input costs and how you pass on to your customer. You explained about tier 1, tier 2. Obviously, this problem has been around for a while. What I wanted to understand was, if you, like in Q3 of last year, September quarter of last year, sorry, you had faced that issue. Is that of higher input cost? I know you had mentioned C-Com at that time. Is the price increase that you put, how does it go? I mean, do you get the price increase that you ask for in that quarter, you are getting it now? Or is it when the price increases, you get it as of current spot prices? That is my first question, and then I have a follow-up.

Speaker #6: You explained about tier one, tier two. But this is obviously this problem has been around for a while. What I wanted to understand was if you in the third quarter of last year, September quarter of last year, sorry, you had faced that issue is that of higher input costs?

Speaker #6: And you had mentioned CCL at that time. Is the price increase that you put—how does it work? I mean, do you get the price increase that you asked for in that quarter, you're getting it now, or is it when the price increases, you get it as of current spot prices?

Speaker #6: That's my first question, and then I have a follow-up.

Speaker #2: So Samit, basically in consumer durables, we have two types of businesses. One is finished goods and the second is components. Then, in electronics, we again have PCBA and PCB.

Jasbir Singh: Samit, basically, in consumer durable, we have 2 types of businesses. One is finished goods and second is components. In electronics, we have again PCBA, PCB. Different businesses have a different kind of a lag to increase the cost or pass on the cost with the customers. In consumer durable, we are tier 1, so we are able to pass on currency exchange or the commodity changes. Impact of the total of that is passed on the next quarter. Just to give a little bit brief analysis on this. Supposing we are in middle of Q2 now, the average commodity price and currency price of this quarter will become the base for the next quarter.

Speaker #2: Different businesses have kind of a different kind of a lag to increase the cost or pass on the cost with the customers. In consumer durable, we are tier one.

Speaker #2: So, we are able to pass on currency exchange or commodity changes. The impact of the total of that is passed on in the next quarter.

Speaker #2: Just to give a little bit of brief analysis on this—supposing we are in the middle of the second quarter now, the average commodity price and currency price of this quarter will become the base for the next quarter.

Speaker #2: And when we start beginning to send the invoices, in Quarter 3, on the first date, they will be having the impact of the cost changes.

Jasbir Singh: When we start beginning to send the invoices in Q3 on first date, they will be having the impact of the cost changes, either through currency or commodity. The full impact will be reflected in that. That's how the pass-on happens. PCBA also business, same things. The only PCB business is where we are tier 2, where it requires 2 quarters. That means the average of this quarter, and we will be able to pass on them the cost not from the next quarter, but from Q4 onwards. That's how in the PCB business happens. I hope I have been able to answer that.

Speaker #2: Either through currency or commodity, the full impact will be reflected in that. That's how the pass-on happens. For PCBA also, it's the same thing. The only PCB business is where we are tier two, and that requires two quarters.

Speaker #2: So that means the average of this quarter, and we will be able to pass on them the cost not from the next quarter, but from quarter four onwards.

Speaker #2: So that's how the PCB business happens. I hope I have been able to explain. Yep.

Ashwin Sinha: Yes, definitely. That is very helpful. My second question is, again, relating to these higher input prices. Things like CCL, what is the potential for this to be manufactured in India? Do you see an opportunity that in the next year or 2 we might have some capacity that is localized versus having to import anything, or we're going to be exposed to these price variations for a number of years? When I say we, I mean not just you building a CCL plant, but as a country.

Speaker #6: Yes, definitely. That is very helpful. My second question is again relating to these higher input prices. I mean, things like CCL—what is the potential for this to be manufactured in India?

Speaker #6: Do you see an opportunity that, in the next year or two, we might have some capacity that is localized versus having to import everything?

Speaker #6: Or are we going to be exposed to these price variations for a number of years?

Speaker #2: Samit, there are.

Speaker #6: And let's say we—I mean, not just you, not just you building a CCL plant, but as a country.

Speaker #2: So, as a country, we are already—the first CCL plant is almost operational now, Wipro's. So, I think they have started meeting the customers.

Jasbir Singh: As a country, we are already, the first CCL plant is almost operational now. Wipro's, I think they have started meeting the customers. There are 2 more CCL plants being planned which we are aware of. On the other side, Amber is also in discussion at a group level with the prospective JV partners. We will let you know once it matures. But looking at our growth phase for PCB business, this becomes an important backward integration for us to have going forward. I think by 2029, 2030, we expect that we should be having our own CCL plants by then.

Speaker #2: There are two more CCL plants being planned, which we are aware of. On the other side, Amber is also in discussion at a group level with prospective JV partners.

Speaker #2: We will let you know once it matures. But, looking at our growth phase for the PCB business, this becomes an important backward integration for us to have going forward.

Speaker #2: And I think by '29, '30, we expect that we should be having our own CCL plants by then.

Speaker #6: Okay. Thank you very much.

Ashwin Sinha: Okay. Thank you very much.

Speaker #4: Thank you. The next question is from the line of Natasha Jain from Philip Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Natasha Jain from PhillipCapital. Please go ahead.

Operator: Thank you. The next question is from the line of Natasha Jain from PhillipCapital. Please go ahead.

Speaker #7: Thank you for the opportunity. So, just one question. In terms of consumer durables, you've mentioned that, on account of a high base, the growth looks a little moderated.

Natasha Jain: Thank you for the opportunity. Sir, just one question. In terms of consumer durable, you have mentioned that on account of the high base, the growth looks a little moderated. Just wanted to understand, this base would be a normalized base, right? Assuming all the customers are going to stick with us for the longer term.

Speaker #7: So, just wanted to understand—this base would be a normalized base, right? Assuming all the customers are going to stick with us for the longer term.

Speaker #2: Sachin?

Jasbir Singh: Sachin?

Speaker #5: So, I'm really sorry. Can you repeat the last line?

Sachin Gupta: I am really sorry, can you repeat the last line?

Speaker #7: Sure. So, what I'm wanting to understand is: given consumer durable revenue top-line growth has slightly moderated, and the reason cited was that it's on a high base, I just want to understand—this high base will be a normalized base going forward, right?

Natasha Jain: Sure. What I am wanting to understand is, given consumer durable revenue top line growth is slightly moderated, and the reason cited was that it is on a high base. Just wanting to understand, this high base will be a normalized base going forward, right? Because these customers would be sticking to us for longer term.

Speaker #7: Because these customers would be sticking with us for the longer term.

Speaker #2: Yeah, yeah, yeah, perfectly. Yeah, yeah. So this base will be a normalized one. And if you see from the last, probably, I would say, four years, you can see the pedigree of the customers that we are catering to is very, very different.

Sachin Gupta: Yeah. Perfectly. So this base will be a normalized one. If you see from last, probably, I would say four years, you can see the pedigree of the customers that we are catering to is very different. We have always been addressing this, that in market, there are kind of two product categories that are operating. One is at an opening price point, one is at the high-value side. As a strategy, probably, we have always tried to stick on the high-value side and the premium side. Now with the light commercial air conditioning portfolio getting more bigger for us, obviously the premiumization of the product or the realization of the product is getting more and more better for us.

Speaker #2: And we have always been addressing this debt in the market. There are kind of two product categories that are operating. One is at an opening price point.

Speaker #2: One is at the high-value side. So, as a strategy, we have always tried to stick to the high-value side and the premium side.

Speaker #2: And now, with the light commercial air conditioning portfolio getting bigger for us, obviously the premiumization of the product or the realization of the product is getting better and better for us.

Speaker #7: Got it. So can I assume that, on this basis, you mean that you would grow in line with the industry, which is assumed to be approximately 15%?

Natasha Jain: Got it. Sir, can I assume that on this base, you mean that you would grow in line with industry, which is assumed to be approximately 15%?

Speaker #2: Yes, yes. They're in line with this.

Sachin Gupta: Yes. We are in line with it.

Speaker #7: Got it, got it. And sir, one more question—in terms of the festive season, we understand last year there was a trade confusion in August, and now the window for Diwali is a little larger.

Natasha Jain: Got it. Sir, one more question. In terms of the festive season, we understand last year there was a trade confusion in August. Now the window for Diwali is a little larger. Are you expecting any strong demand coming off from AC?

Speaker #7: So, are you expecting any strong demand coming from AC?

Speaker #2: So, like last year, this year again there is some confusion in the market because from 1st July, there is a regulation change in our product category.

Sachin Gupta: Like last year, this year again, there is some confusion in the market because from 1 July, there is a regulation change in our product category. The tonnage has to be mentioned on the BEE label. Earlier in India, you were classifying the product as a star or a five-star machine, but the tonnage was not mandatory. From 1 July, the tonnage has got mandatory. Because of that, what is happening is that in the market, there is a mixed inventory, like in a particular category, like 1.5 ton, the machines are available from 4,400 watt to 5,200 watt. What we are expecting is that by Diwali, we are expecting this inventory to be liquidated. Post that, we see that the market to be at equalized level, and we expect a strong summer starting from November month.

Speaker #2: So the tonnage has to be mentioned on the B label. So, earlier in India, you were classifying the product as a three-star or a five-star machine.

Speaker #2: But the tonnage was not mandatory. From July 1st, the tonnage has become mandatory. Now, because of that, what is happening is that in the market, there is a mixed inventory.

Speaker #2: Like in a particular category, like 1.5 ton, the machines are available from 4,400 watts to 5,200 watts. So what we are expecting is that by Diwali, we are expecting this inventory to be liquidated.

Speaker #2: After that, we see the market at an equalized level, and we expect a strong summer starting from November. So we are not expecting very, very high demand during the coming festive season.

Sachin Gupta: We are not expecting very high demand on this coming festive season. This is what it looks like now. Obviously, being a seasonal business every month, this can change.

Speaker #2: This is what it looks like now. But obviously, being a seasonal business, this can change every month.

Speaker #6: And Natasha, this is not a festival festivity product. Did I shift it to mobiles and smartwatches?

Jasbir Singh: Natasha Jain, this is not a festivity product. The data has shifted to mobiles and smartwatches.

Speaker #7: Got it. Understood, sir. Thank you so much, and all the very best.

Natasha Jain: Got it. Understood, sir. Thank you so much, and all the very best.

Speaker #4: Thank you. The next question is from the line of Niransh Jain from BNP Paribas. Please go ahead.

Operator 2: Thank you. The next question is from the line of Niransh Jain from BNP Paribas. Please go ahead.

Operator: Thank you. The next question is from the line of Niransh Jain from BNP Paribas. Please go ahead.

Niransh Jain: Hi, sirs. Thank you for the opportunity. Sir, just wanted to recheck on the electronics guidance. For the full year, we have earlier given a 40% plus guidance. Are we sticking to this number? Just wanted to recheck on that.

Nirransh Jain: Hi, sirs. Thank you for the opportunity. Sir, just wanted to recheck on the electronics guidance. For the full year, we have earlier given a 40% plus guidance. Are we sticking to this number? Just wanted to recheck on that.

Speaker #6: Hi, sir. Thank you for the opportunity. Sir, I just wanted to recheck on the electronics guidance. So, for the full year, we had earlier given a 40% plus guidance.

Speaker #6: So, are we sticking to this number? Just wanted to recheck on that.

Speaker #2: Yes, I mean, as guided earlier, we hope that we will be able to deliver that number.

Jasbir Singh: Yes, I mean, as guided earlier, we hope that we will be able to deliver that number.

Speaker #6: Sure, sir. And sir, secondly, I also wanted to check if you can share some update on this mega AC plant, for which we have also done some groundbreaking ceremony.

Niransh Jain: Sure, sir. Secondly, also wanted to check, if you can share some update on this mega AC plant, for which we have also done some groundbreaking ceremony. As in like, what is the capacity plan here? What kind of CapEx we are looking over the years in a phased manner?

Nirransh Jain: Sure, sir. Secondly, also wanted to check, if you can share some update on this mega AC plant, for which we have also done some groundbreaking ceremony. As in like, what is the capacity plan here? What kind of CapEx we are looking over the years in a phased manner?

Speaker #6: And as in, like, what is the capacity plan here? What kind of capex are we looking at over the years in a phased manner?

Speaker #2: So basically, the groundbreaking of the plant—because these are two plants in vicinity to each other—was a big function which we organized, where the Chief Minister of Uttar Pradesh and our honorable Union Ministers were there.

Jasbir Singh: Basically, the groundbreaking of the plant, because these are two plants in vicinity to each other, and it was a big function which we organized, where the Chief Minister of Uttar Pradesh and our honorable union ministers were there to inaugurate, do the groundbreaking. So the HDI plant construction has started. The plant of air conditioners, that construction will start next year. So we are just at a planning mode right now. We expect that 2028, the construction will start, and by 2029, it will start the trial productions.

Speaker #2: To inaugurate, do the groundbreaking. So HDI plant construction has started. The plant for air conditioners, that construction will start next year. So it is, we are just at a planning mode right now.

Speaker #2: And we expect that by 2028, the construction will start. And by 2029, it will start the trial productions.

Speaker #6: Sure, sir. And sir, lastly, just wanted to recheck on this minority interest. So, is the understanding correct that this negative minority interest could be on account of the exceptional item related to the asset stake?

Niransh Jain: Sure, sir. Lastly, just wanted to recheck on this minority interest. Is the understanding correct that this negative minority interest could be on the account of exceptional item related to the Ascent stake?

Nirransh Jain: Sure, sir. Lastly, just wanted to recheck on this minority interest. Is the understanding correct that this negative minority interest could be on the account of exceptional item related to the Ascent stake?

Speaker #6: And if you can give the adjusted minority interest number.

Jasbir Singh: Yeah.

Niransh Jain: If you can repeat the adjusted minority interest number.

Nirransh Jain: If you can repeat the adjusted minority interest number.

Speaker #2: Yeah, I was about to mention that I just checked, and the earlier question was about the minority interest being negative. So, if you look at our overall group, there are a few entities where we create the minority interest.

Jasbir Singh: Yeah, I was about to tell that I have just checked that earlier question that came up for the minority interest negative. If you see in our overall group, there are few of the entities where we create the minority interest. Like in IL JIN, we do not have a put call option, so we create a minority interest for a shareholder who is holding 8.96%, around 8%. Then there is a Skytech, there is a minority interest, then Unitronics and ILJIN Technologies. All these entities fall under electronic division, where this exceptional loss of INR 123 crore has occurred. That is why, on a net basis, there is a loss in the electronic division after the exceptional item, which has been allocated to the minority interest. That is the reason that INR 19 crore is coming negative, and INR 22 crore is coming positive in the other than minority interest.

Speaker #2: Like in Iljin, we don't have a put-call option. So we create a minority interest for the shareholder who is holding 8.96%, around 8%.

Speaker #2: Then there's Shell Tech. There's a minority interest. Then Unitronics and Iljin Technologies. And all these entities fall under the electronics division, where this exceptional loss of ₹123 crore has occurred.

Speaker #2: So, that is why, on a net basis, there is a loss in the electronic division after the exceptional item, which has been allocated to the minority interest.

Speaker #2: That is the reason that 19 crore is coming negative, and 22 crore is coming positive in the 'other than minority interest'.

Speaker #6: So, sir, what would be the adjusted minority number?

Niransh Jain: What would be the adjusted minority number?

Nirransh Jain: What would be the adjusted minority number?

Speaker #4: Sorry to interrupt, Mr. Jain. May we request that you return to the question queue for a follow-up question?

Operator 2: Sorry to interrupt, Mr. Jain. May we request you to turn to the question queue for a follow-up question?

Operator: Sorry to interrupt, Mr. Jain. May we request you to turn to the question queue for a follow-up question?

Speaker #2: So maybe I'll just answer. I understand, so we need to calculate, and we'll update you on how much is the monetary interest in case there was no exceptional loss.

Jasbir Singh: Well, I will just answer, I understand. We need to calculate, and we will update you that how much is the minority interest in case there is no exceptional loss was there. Next question please.

Speaker #2: Yeah, yeah, yeah.

Speaker #6: Next question.

Speaker #2: Yeah, next question, please.

Speaker #4: Thank you. The next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.

Operator 2: Thank you. The next question is from the line of Achal Lohade from Nomura Institutional Equities. Please go ahead.

Operator: Thank you. The next question is from the line of Achal Lohade from Nomura Institutional Equities. Please go ahead.

Speaker #6: Yeah, good morning team. Thank you for the opportunity. First, I wanted to understand what is the extent of impact on the PCB margins, if you could quantify that?

Achal Lohade: Yeah, good morning team. Thank you for the opportunity. First, I wanted to understand what is the extent of impact on the PCB margins, if you could quantify, and how do you see it. Like you've mentioned, it is getting passed on with a lag, but at the same time, the costs are rising. So how do we see the margins, if you could give us some sense, for next 2 quarters?

Speaker #6: And how do you see it? Like you mentioned, it is getting passed on with a lag, but at the same time, the costs are rising.

Speaker #6: So, how do we see the margins? If you could give us some sense for the next two quarters.

Speaker #2: Achal, the standard PCB margins which we were enjoying earlier were about 16%. Right now, we are hovering around 12%. But we expect this to come back gradually because price increases have started happening.

Jasbir Singh: Achal, the standard PCB margins which we were enjoying earlier was about 16%. Right now, we are hovering around 12%. But we expect this to come back gradually because the price increases have started happening. So on a gradual basis, I think on a normalized level, this business is in 15% to 16% range. Currently, it will continue to be impacted for next quarter as well. But from Q3 onwards, you will see the margins coming back to normalized level.

Speaker #2: So, on a gradual basis, I think, on a normalized level, this business is in the 15 to 16 percent range. Currently, it will continue to be impacted for the next quarter as well.

Speaker #2: But from Quarter 3 onwards, you will see the margins coming back to normalized levels.

Speaker #6: No further interview.

Achal Lohade: No further increase.

Speaker #2: But only subject to no further CCL price increases happening.

Jasbir Singh: But only subject to no further CCL price increases are happening.

Speaker #6: Commodity price hike, yes.

Achal Lohade: Commodity price hike.

Jasbir Singh: Yes.

Speaker #5: Understood. Sir, if you could give us some sense in terms of—you said you are hopeful of achieving that 40% revenue growth guidance for electronics.

Achal Lohade: Understood. Sir, if you could give us some sense in terms of the, you said, you are hopeful of achieving that 40% revenue growth guidance for electronic. If you could give us some sense in terms of the key drivers for them, in terms of which particular business or entity will drive that. Also related question is that, at an aggregate electronics business level, what is the minority interest percentage we should work with? If you could clarify, I think that would be wonderful. Thank you.

Speaker #5: If you could give us some sense, in terms of the key drivers for them, specifically which particular business or entity will drive that.

Speaker #5: And also, a related question is that, at an aggregate electronics business level, what is the minority interest percentage we should work with, if you could clarify?

Speaker #5: I think that would be wonderful. Thank you.

Speaker #2: See, on the strategy, we are a B2B company. And for a B2B company, scale and efficiency both play a very important role. If the scale teams can balance the volume and value of the businesses, value-type of businesses, then it becomes a very unique proposition.

Jasbir Singh: See, on the strategy, we are a B2B company, and for a B2B company, scale and efficiencies both play a very important role. If the scale teams can balance the volume and value of the businesses, value type of businesses, then it becomes a very unique proposition, and that is what we are attempting to do here. We started our journey with the PCBA business in consumer durable, which are at a lower margin. Then we kept on expanding our applications. So from 2018, when we acquired this company, till 2023, we were very focused in PCBA, but we were expanding our applications. Like we added hearable wearable, we added telecom, then we added automobile business, for two-wheeler and four-wheeler businesses, and some small defense portfolio also got added. So that was the organic play which we did.

Speaker #2: And that's what we are attempting to do here. We started our journey with the PCBA business in consumer durables, which are at a lower margin.

Speaker #2: But then we kept on expanding our applications. So from 2018, when we acquired this company, till 2023, we were very focused on PCBA, but we were expanding our applications.

Speaker #2: Like we added the Haribal variable, we added telecom. Then we added the automobile business for two-wheeler and four-wheeler businesses, and some small defense portfolio also got added.

Speaker #2: So that was the organic play which we did. On the value side, especially on the industrial side, we acquired companies like Unitronics and Power One.

Jasbir Singh: On the value side, especially on the industrial side, we acquired companies of Unitronics and Power-One. They are also growing pretty well. As a backward integration strategy, first step, we chose PCB as our one-step vertical. PCB again is a value-driven proposition. It is complete import substitution. On the strategy side, we are just balancing the volume and value play. On the volume side, we have just added many other applications. At value side, industrial has got added. Now we wish to add medical and defense and aerospace moving forward for next 3 to 4 years' time. Teams have been formed, and they have started working on that, both organically and inorganically. We want to create a very unique EMS platform, which is balanced on the scale side in volume and value.

Speaker #2: They are also moving; they are also growing pretty well. And then, as a backward integration strategy, as the first step, we chose PCB as our one step vertical.

Speaker #2: But PCB, again, is a value-driven proposition. It's complete import substitution. So, if you look at it on the strategy side, we are just balancing the volume and value play.

Speaker #2: On the volume side, we have just added many other applications. At the value side, industrial has got added. Now, we wish to add medical and defense and aerospace, moving forward for the next three to four years' time.

Speaker #2: So teams have been formed, and they have started working on that, both organically and inorganically. So, we want to create a very unique EMS platform which is balanced on the scale side in volume and value.

Speaker #2: And value is what gives you entry barriers, stickiness, and margins. Volume is what gives you scale. On the backward integration side, the first part we have picked up is the PCB world.

Jasbir Singh: Value is which gives you entry barriers, stickiness, and margins, and volume is which gives you scale. On the backward integration side, the first part which we have picked up is the PCB world. We are quite excited about this journey which we are developing. I think in last 7 years of journey, we have seen margins going from 2.8% in 2018 when we acquired the company to 10.8%. In fact, if PCB business was at a normalized level, this 10.8% would have been 12% today but that is it. That is on the strategy side. On the minority interest, I will tell Sudhir to answer your question.

Speaker #2: So, we are quite excited about this journey that we are developing. I think in the last seven years of this journey, we have seen margins go from 2.8% in 2018, when we acquired the company, to 10.8%.

Speaker #2: In fact, if the PCB business was at a normalized level, this 10.8 would have been 12 today. So, but that's it. So, we are creating a—I mean, that's on the strategy side.

Speaker #2: On the minority interest, I will ask Sudhir to answer your question.

Speaker #6: Yeah, hi Achal. So, on the minority interest, if your question is from the perspective of how much profit will be allocated to the minority interest, it will be difficult to give you the specific percentage.

Sudhir Goyal: Yeah. Hi, Achal. On the minority interest, if your question is from the perspective of how much the profit will be allocated to the minority interest, it will be difficult to give you the specific percentage. Reason is that every entity, wherever the minority interest is there, will depend on the profitability of that particular entity. Like in IL JIN, we create a minority interest, in Unitronics we create a minority interest. So standard percentage will not work to calculate the group level minority interest allocation.

Speaker #6: The reason is that for every entity where there is a minority interest, it will depend on the profitability of that particular entity. Like in Iljin, we create a minority interest.

Speaker #6: In Unitronics, we create a minority interest, so the standard percentage will not work to calculate the group-level monetary interest allocation.

Speaker #5: Got it. Sorry to harp on the previous question, sir. With respect to the growth—this 40% growth—sorry, this was the clarification. If I may go ahead?

Achal Lohade: Got it. Sorry, to hop on the previous question, sir, with respect to the growth-

Jasbir Singh: Sorry to interrupt.

Operator: Sorry to interrupt.

Achal Lohade: Sorry.

Jasbir Singh: Mr. Bahadur.

Operator: Mr. Bahadur.

Achal Lohade: If I may go ahead.

Speaker #4: Yes, please.

Jasbir Singh: Yes, please.

Speaker #5: Yeah, sorry to harp on that, sir. Regarding the 40% growth guidance, I was just curious to know which segment will drive that, in terms of PCBA or PCB, and within PCBA, which particular vertical that was.

Achal Lohade: Yeah, sorry. To hop on that, sir, 40% growth guidance, I was just curious to know which segment will drive in terms of PCBA or PCB, and within PCBA, which particular vertical?

Speaker #2: All three divisions within the electronics division are growing. So PCBA is growing. We are adding new customers, and we are adding new applications.

Jasbir Singh: All three divisions within the electronics division is growing. PCBA is growing, we are adding new customers, and we are adding new applications. On PCB, you all know about our journey. On the industrial automation, industrial side, industrial power electronic side also, we are witnessing a good growth. All three put together will lead to this 40% mark.

Speaker #2: On PCB, you all know about our journey. And on the industrial automation, industrial power electronics side also, we are witnessing good growth.

Speaker #2: So, all three put together will lead to this 40% mark.

Speaker #5: Got it. Thank you. I'll fall back in then.

Achal Lohade: Got it. Thank you. I will fall back in.

Speaker #4: Thank you. The next question is from the line of Avik Mehta from JP Morgan. Please go ahead.

Operator 2: Thank you. The next question is from the line of Avik Mehta from JP Morgan. Please go ahead.

Operator: Thank you. The next question is from the line of Avik Mehta from JP Morgan. Please go ahead.

Speaker #6: Hi, thank you. So, firstly, just a couple of clarifications. On consumer durables, you had mentioned that it will grow in line with the industry.

Avik Mehta: Hi. Thank you. Firstly, just a couple of clarifications. On the consumer durable, you had mentioned that it will grow in line with the industry, and that number was 12% last year. Does that number still hold? Secondly, again, a clarification on the EBITDA margins. Last time you had said overall margin will decline 50 to 100 basis points for the full year, given the RM inflation. How one could stand out against, does that guidance hold or do you want to change that guide?

Bhavik Mehta: Hi. Thank you. Firstly, just a couple of clarifications. On the consumer durable, you had mentioned that it will grow in line with the industry, and that number was 12% last year. Does that number still hold? Secondly, again, a clarification on the EBITDA margins. Last time you had said overall margin will decline 50 to 100 basis points for the full year, given the RM inflation. How one could stand out against, does that guidance hold or do you want to change that guide?

Speaker #6: And that number was 12% last year, as you had given. So does that number still hold? And secondly, again, a clarification on the bidder margins.

Speaker #6: Last time, you had said overall margins will decline 15 to 100 basis points for the full year, given the RM inflation. But how has Q1 panned out? Again, does that guidance hold, or do you want to change that guidance?

Speaker #2: Well, I mean, currency and commodities are still very volatile. So, I think we were earlier expecting 50 to 100 bps, but now we think that these margins are normalized at where we are.

Jasbir Singh: Well, currency and commodities are still very volatile. I think we were earlier expecting 50 to 100 basis points, but now we think that these margins are normalized at where we are, in case there is no further disruption in the currency and commodity. On the consumer durable question, I think Sachin, you can answer.

Speaker #2: In case there is no further disruption in the currency and commodity. On the consumer durables question, I think, Sachin, you can answer.

Speaker #6: Yes, sir. Your question was whether our guidance stands intact. So, it's intact with the industry growth. It can vary; it should range between 13% to 15%.

Sachin Gupta: Yeah, sir, your question was that does our guidance stand intact. It is intact to the industry growth. It can vary between, it should range between 13% to 15%. We are in line to that.

Speaker #6: So, we are in line with that. Okay, the second question is on the Oppo partnership. Do we have any clarity in terms of how the revenues will be recognized?

Avik Mehta: Okay. The second question is on Oppo partnership. Do we have any clarity in terms of how the revenues will be recognized? I think last time you had mentioned it could be either on a sale purchase basis or on a drop-box basis. Any clarification we have got from them or is it still work in progress?

Bhavik Mehta: Okay. The second question is on Oppo partnership. Do we have any clarity in terms of how the revenues will be recognized? I think last time you had mentioned it could be either on a sale purchase basis or on a drop-box basis. Any clarification we have got from them or is it still work in progress?

Speaker #6: Because I think last time you had mentioned it could be either on a sales purchase basis or on a drop-off basis. So, any clarification we have got from them, or is it still work in progress?

Speaker #2: It's, another—it's very at a final stage, I think. Another 15 to 20 days, the clarity will come, and we'll let you know.

Jasbir Singh: It is very at the final stage. I think another 15 to 20 days, the clarity will come, and we will let you know.

Speaker #6: Okay, and just lastly—last month the board had approved a fundraising option at the agent level. So, any progress on that in terms of some quantum, and where would the funds raised be utilized in terms of which part of the agent business?

Avik Mehta: Okay. Lastly, last month the board had approved fundraising options at the IL JIN level. Any progress on that in terms of some quantum and where would the funds raised will be utilized in terms of which part of the IL JIN business?

Bhavik Mehta: Okay. Lastly, last month the board had approved fundraising options at the IL JIN level. Any progress on that in terms of some quantum and where would the funds raised will be utilized in terms of which part of the IL JIN business?

Speaker #2: So, currently it is difficult to tell you the exact quantum. So we have given the clarification that we will be raising up to ₹5,000 crore.

Sudhir Goyal: Currently, it is difficult to tell you the exact quantum. We have given the clarity that we will be raising up to INR 5,000 crore. We will tell you that whenever we finalize that how much fundraise is happening, we will update everyone that how much is the fundraise and in which form also we are raising a fundraise. We will update you as soon as we finalize the same. This is the enabling resolution we have passed from the board.

Speaker #2: So, we'll tell you that whenever we finalize how much fundraise is happening, we'll update everyone on how much the fundraise is.

Speaker #2: And in which form we are raising a fundraise, we'll update you as soon as we finalize the same. This is the enabling decision we have passed from the Board.

Speaker #6: Okay, got it. Thank you.

Avik Mehta: Okay, got it. Thank you.

Bhavik Mehta: Okay, got it. Thank you.

Speaker #4: Thank you. The next question is from the line of Endrajit Agarwal from CLSA. Please go ahead.

Operator 2: Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go ahead.

Operator: Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go ahead.

Speaker #6: Hi, thank you for the opportunity. Just three questions. Number one: at Oppo level, we understand the revenue recognition is still being finalized, but have we decided if it will be at Amber’s group level or at Iljin level?

Indrajit Agarwal: Hi. Thank you for the opportunity. Just three questions. Number one, at Oppo level, we understand the revenue recognition is still being finalized, but have we decided will it be at Amber Group level or at IL JIN level?

Jasbir Singh: Indrajeet, both are at a final level because there is an ERP integration which has to happen between both the groups. Looking into that, we are evaluating whether it should be in IL JIN or whether it should be in Amber. Whatever suits and whichever formalize the timelines, we will go for it. I think we have to formalize it before the mid of September. We will let you know in the next call exactly.

Speaker #2: Endrajit, both are at a final level because there is an ERP integration which has to happen between both the groups.

Speaker #2: And so, looking into that, we are evaluating whether it should be in ILJIN or whether it should be in Amber. Whatever suits, and whichever formalizes the timelines, we will go for it.

Speaker #2: I think we have to we have to formalize it before before before the mid of September. So we'll let you know in the next call.

Speaker #2: Exactly.

Speaker #6: Sure. This is helpful. Two questions to Sudhir. Sir, first, when you calculate your minorities, what stake do you take for Iljin in the entity Iljin?

Indrajit Agarwal: Sure. This is helpful. Two questions to Sudhir. Sir, first, when you calculate your minorities, what stake do you take for IL JIN, for the entity IL JIN? Not for Ascent and all, that gets consolidated in IL JIN's stack. But when you are calculating the minority at IL JIN, what stake do you calculate?

Speaker #6: Not for Ascent and all. That gets consolidated in Iljin stat. But when you are calculating the minority at Iljin, what stake do you calculate?

Speaker #2: So, we calculate based on the diluted basis. We consider around 60-point-something percent after reducing for Mr. Sim, who is the previous promoter shareholder.

Sudhir Goyal: We calculate based on the diluted basis. We consider around 60 point something percentage after reducing for Mr. Sim, who is the previous promoter shareholder, and the CCPS issued to the private equity players who has invested in IL JIN in last year. All those, that is around 40% or 39% has been treated as a minority interest and balance is treated as other equity.

Speaker #2: And the CCPS issued to the equity-like private equity players who have invested in Iljin in the last year—so all those, that's around 30% and around 40% or 39%, has been treated as minority interest, and the balance is treated as other equity.

Speaker #6: Mr. Sim is roughly 9%, right, if I recall correctly?

Indrajit Agarwal: Mr. Sim is roughly 9%, right? If I recall correctly.

Speaker #2: Yeah, around 8.7 or 8.6, something like that.

Sudhir Goyal: Yeah, around 8.7 or 8.6, something like that.

Speaker #6: Sure, sure. Last question. What is the net debt number as of March 26 and as of June 26, the way you calculate it?

Indrajit Agarwal: Sure. Last question, what is the net debt number as of March 2026 and as of June 2026, the way you calculate?

Speaker #2: Oh, for Iljin, at a console level?

Sudhir Goyal: For IL JIN or at a console level?

Speaker #6: No, for Amber as a group, at the console level.

Indrajit Agarwal: No, for Amber as a group, at a console level.

Speaker #2: Just a sec.

Sudhir Goyal: Just a sec.

Speaker #6: And also for Iljin, if you can.

Indrajit Agarwal: Also for IL JIN, if you can.

Speaker #2: So, last after the next question. So, I'll just tell you after the next question.

Sudhir Goyal: So last

Indrajit Agarwal: Around after the next question.

Jasbir Singh: Around after the next question.

Sudhir Goyal: I will just tell you after the next question.

Speaker #6: Sure, sir. Sure. And that's all from my side. Thank you.

Indrajit Agarwal: Sure, sir. That is all from my side. Thank you.

Speaker #4: Thank you. The next question is from the line of Rahul Agarwal from Ikigai Asset Managers. Please go ahead.

Operator 2: Thank you. The next question is from the line of Rahul Aggarwal from KAI Asset Management Inc. Please go ahead.

Operator: Thank you. The next question is from the line of Rahul Aggarwal from KAI Asset Management Inc. Please go ahead.

Speaker #6: Yeah, hi. Good morning to everyone on the call. Just one—just one question. I just want to appreciate the electronic growth better. We all understand that it's in a growing phase.

Rahul Aggarwal: Yeah. Hi, good morning to everyone on the call. Jasbir ji, just one question. We just want to appreciate the electronic growth better. We all understand that it is in a growing phase. We are talking about 40% growth this year. Just run through, some bit of revenue breakdown between Indian Amber versus Ascent and versus the newly acquired entities. Just give us a revenue build-up over the next three years. It will really help us to appreciate the growth better and the margins profile better. You just take us through, whatever you think is comfortable in terms of Indian Amber's business growth, this year, next year, fiscal 2029 capacity increases. That will really help us to shape up the overall growth better. Thank you so much.

Rahul Agarwal: Yeah. Hi, good morning to everyone on the call. Jasbir ji, just one question. We just want to appreciate the electronic growth better. We all understand that it is in a growing phase. We are talking about 40% growth this year. Just run through, some bit of revenue breakdown between Indian Amber versus Ascent and versus the newly acquired entities. Just give us a revenue build-up over the next three years. It will really help us to appreciate the growth better and the margins profile better. You just take us through, whatever you think is comfortable in terms of Indian Amber's business growth, this year, next year, fiscal 2029 capacity increases. That will really help us to shape up the overall growth better. Thank you so much.

Speaker #6: We're talking about 40% growth this year. But just run through some of the revenue breakdown between Iljin, Ever, versus Ascent, and versus the newly acquired entities.

Speaker #6: Just give us a revenue build-up over the next three years. It will really help us appreciate the growth better and understand the margin profile better.

Speaker #6: You just take us through whatever is comfortable in terms of Iljin ever's business growth this year, next year, fiscal 29, capacity increases. That will really help us to shape up the overall growth better.

Speaker #6: Thank you so much.

Speaker #2: Yeah, as I explained, all three verticals within the electronics division are growing. So, in PCBA, we are growing in the applications, and we are adding customers in existing applications.

Jasbir Singh: Yeah. As I explained that all the three verticals within electronics division are growing. PCBA, we are growing in the applications, and we are adding customers in existing applications. The PCB divisions, you all know about the CapEx, which we have announced. You can map out along with the CapEx. Generally, the asset turns in this business is 0.8 to 1, depending on what level of complexity of the printed circuit boards you are producing. We have already announced CapEx of close to about INR 3,200 crore in Jewar and about INR 1,000 crore in Hosur. The plant will be up and running this financial year of Hosur. For Jewar, it will take about 18 months from now for the trial productions to start. That is on the PCB side.

Speaker #2: Then, for the PCB divisions, you all know about the Capex which we have announced. So you can map that out along with the Capex. Generally, the asset turns in this business are 0.8 to 1, depending on the level of complexity of the printed circuit boards you are producing.

Speaker #2: We have already announced a Capex of close to about ₹3,200 crore in Javer and about ₹1,000 crore in Hosur. The plant will be up and running this financial year.

Speaker #2: Of Hosur. And for Javer, it will take about 18 months from now for the trial production to start. So, that is on the PCB side.

Speaker #2: As far as on the power electronic side, which comprises programmable logic controllers and human-machine interfaces (HMI), and all the power electronics products—solar inverters, UPS, BESS—there is a very decent growth of 35 to 40 percent coming in.

Jasbir Singh: As far as on the power electronic side, which comprises of programmable logical controllers and human machine interface, HMI, and all the power electronics products, solar inverters, UPS, BESS, there is a very decent growth of 35% to 40% coming in. It will be very difficult to give you a three-year kind of a number, because all the three divisions are, all the three verticals, I would say, in the electronics, are moving very positive. We are very excited with this journey, and as we continue our PCB and power electronic side, which is a value proposition for us, and that is the reason why we guided earlier that we will surpass a double-digit number on the margin side, which we have achieved. We expect that we will be able to maintain it. Yes, on the growth side, I think it is a big ocean.

Speaker #2: But it will be very difficult to give you a three-year kind of a number because all the three divisions, all the three verticals I would say, in electronics are moving very positively.

Speaker #2: We are very excited about this journey. As we continue with our PCB and power electronics segment, which is a value proposition for us, that's the reason why we guided earlier that we would surpass a double-digit number on the margin side, which we have now achieved.

Speaker #2: We expect that we will be able to maintain it. But yes, on the growth side, I think it's a big ocean. The total addressable market for all three verticals is huge.

Jasbir Singh: The total addressable market for all the three verticals is huge. We are sitting at import substitution. We are sitting at $185 billion of consumption of electronics. We were not present in the mobile segment as a group earlier. We have added into that also. But on the electronic side, even if you have to categorize out of that 1 to $185 billion, just the PCB part, then the PCBA part and power electronics part, it is a total TAM of about $16 to $17 billion at the moment. This $185 billion is going to about $300 billion business as usual. Though there are a lot of efforts from government side that we need to achieve $500 billion. But even if we take a conservative approach of $300 billion by FY30, business as usual case.

Speaker #2: We are sitting at import substitution. We are sitting at $185 billion of consumption of electronics. We were not present in the mobile segment as a group earlier.

Speaker #2: We've added into that also. But on the electronic side, even if you have to categorize out of that $1 to $85 billion—just the PCB part, then the PCBA part, and power electronics part—it's a total TAM of about $16 to $17 billion at the moment.

Speaker #2: And this $185 billion is going to about $300 billion business as usual. Though there are a lot of efforts from the government side that we need to achieve $500 billion.

Speaker #2: But even if we take a conservative approach of 300 billion by FY 30, business as usual case, so you can imagine the TAM of current 16 billion dollar for three verticals going to about 35 to 40 billion dollar.

Jasbir Singh: You can imagine the TAM of current $16 billion for three verticals going to about $35 to $40 billion. We want to be a dominant shareholder in this TAM. That is the strategy, to be honest. But giving a number is very difficult at this moment in time.

Speaker #2: And we want to be a dominant shareholder in this TAM. So that's the strategy, to be honest. But giving a number is very difficult at this moment in time.

Speaker #6: Go ahead, Jasbirji. So, broadly, if we consolidate all the entities, we are looking at a ₹5,000 crore kind of sales number for the entire electronics business this year.

Rahul Aggarwal: Got you, Jasbir ji. Broadly, if we consolidate all the entities, we are looking at INR 5,000 crore kind of sales number for the entire electronic business this year. Aspiration, we are looking at doubling that in 3 years. Is that a fair statement to say?

Rahul Agarwal: Got you, Jasbir ji. Broadly, if we consolidate all the entities, we are looking at INR 5,000 crore kind of sales number for the entire electronic business this year. Aspiration, we are looking at doubling that in 3 years. Is that a fair statement to say?

Speaker #6: And aspirationally, we are looking at doubling that in three years. Is that a fair statement to make?

Speaker #2: Well, please don't put words in my mouth. I mean, we would definitely like to be one of the largest diversified electronics EMS platforms moving forward.

Jasbir Singh: Well, please don't put some words in my mouth. I mean, we would like to definitely be one of the largest diversified electronics EMS platform moving forward. That is all I can say.

Speaker #2: That's all I can say.

Speaker #6: All right, Jasbirji. Got that. Thank you so much to the entire team, and thanks for answering my question. You're the best.

Rahul Aggarwal: All right, Jasbir ji. Got that. Thank you so much to the entire team, and thanks for answering my question.

Rahul Agarwal: All right, Jasbir ji. Got that. Thank you so much to the entire team, and thanks for answering my question.

Sudhir Goyal: Thank you.

Jasbir Singh: Thank you.

Rahul Aggarwal: All the best. Thanks.

Rahul Agarwal: All the best. Thanks.

Speaker #2: Thank you. Yeah, thank you.

Sudhir Goyal: Yeah, thank you.

Jasbir Singh: Yeah, thank you.

Speaker #6: And I'll just take up one last question, which we have received from, I think, Achal. The net debt level as on 30th June is around ₹1,225 crore.

Operator 2: Thank you.

Sudhir Goyal: I will just update one last question, which was asked by, I think, Achal Lohade, that the net debt level as on 30 June is around INR 1,225 crores, and last year, 26 March, it was around INR 510 crores.

Rahul Agarwal: Thank you.

Speaker #6: And last year, March 26, it was around ₹510 crores. I think Inderjit had asked. Sorry.

Indrajit Agarwal: Inderjeet.

Jasbir Singh: Inderjeet.

Sudhir Goyal: Inderjeet. I think Inderjeet has asked. Sorry.

Speaker #4: Thank you. The next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please go ahead.

Operator 2: Thank you. The next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please go ahead.

Operator: Thank you. The next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please go ahead.

Speaker #6: Yeah. Hi, thanks for the opportunity. Just wanted to understand, as you said, commodity inflation you are able to pass through. So in a commodity inflation kind of scenario, do you hold on to the margins or do you have to pass it back again?

Bhavya Gandhi: Yeah. Hi, thanks for the opportunity. Just wanted to understand, as you said, commodity inflation, you are able to pass through. In commodity de-inflation kind of scenario, do you hold on to the margins or again, you have to pass it back? Just wanted to understand, is there any additional margin which will sit in if the commodity price inflation reverses?

Speaker #6: Just wanted to understand, so is there any additional margin which will come into effect if the commodity price inflation reverses?

Speaker #2: To be very fair with your customers—so, if it goes down, you have to pass on that also, at a quarterly lag. So now, you can be lucky if it is a peak season; you can earn a little more.

Jasbir Singh: To be very fair with your customers. If it goes down, you have to pass on that also at a quarterly lag. Now, you can be lucky if it is a peak season, so you can earn little more, but sometime they get lucky. That's a normal thing. But over a period of few quarters, I have seen that because of a B2B nature of the business, you are able to pass on. Positive, negative, you have to do it.

Speaker #2: But sometimes they get lucky. So that's a normal thing. But over a period of a few quarters, I have seen that because of the B2B nature of the business, you are able to pass on positives and negatives—you have to do it.

Speaker #6: Got it. And sir, because you said the EBITDA margin, if adjusted for the copper inflation, would have been closer to 12 percent, can we assume that on a three-to-four-year basis, for the electronic division, we can achieve a margin closer to 14–15 percent, or is that hard to achieve?

Bhavya Gandhi: Got it. And sir, because you said the EBITDA margin, if adjusted for the copper inflation, would have been closer to 12%. Can we assume that on a three to four year basis, on the electronic division, we can achieve a margin of closer to 14% to 15%, or that is hard to achieve? Including everything, PCB, PCBA, everything put together.

Speaker #6: Including everything—PCB, PCBA, everything—put together.

Speaker #2: On the electronics side, as I explained, we have traveled our journey from 2.8 to 10, 10.5, 10.8 now. Yes, our endeavor is definitely to go upward north.

Jasbir Singh: On the electronic side, as I explained that we have traveled our journey from 2.8% to 10.5%, 10.8% now. Yes, our endeavor is definitely to go upward north. But giving a year and giving a number is very difficult. That's the endeavor which team is attempting. That's the strategy that we have to add more value-added businesses. And that's how we will maintain this double-digit number, moving forward.

Speaker #2: But giving a year and giving a number is very difficult. That's the endeavor which the team is attempting. That's the strategy—that we have to add more value-added businesses.

Speaker #2: And that's how we will maintain this double-digit number moving forward.

Speaker #6: Got it. Fair enough. Thank you so much. That's it from my end.

Bhavya Gandhi: Got it. Fair enough. Thank you so much. That is it from my end.

Speaker #4: Thank you. The next question is from the line of Deepak from Sundaram Mutual Funds. Please go ahead. Mr. Deepak, your line has been unmuted.

Operator 2: Thank you. The next question is from the line of Deepak from Sundaram Mutual Funds. Please go ahead. Mr. Deepak, your line has been unmuted. Please go ahead with your question. As there is no response, moving on to the next question. The next question is from the line of Rabindra Nayak from Nirmal Bang Equities Pvt Ltd. Please go ahead.

Operator: Thank you. The next question is from the line of Deepak from Sundaram Mutual Funds. Please go ahead. Mr. Deepak, your line has been unmuted. Please go ahead with your question. As there is no response, moving on to the next question. The next question is from the line of Rabindra Nayak from Nirmal Bang Equities Pvt Ltd. Please go ahead.

Speaker #4: Please go ahead with your question. As there is no response, moving on to the next question. The next question is from the line of Rabindra Nayak from Nimbermark.

Speaker #4: Please go ahead.

Speaker #6: Sir, good morning. Sir, can you please provide the breakup of the consumer deliverables side into RSC and non-RSC for this quarter?

Rabindra Nath Nayak: Good morning, sir.

Rabindra Nayak: Good morning, sir.

Jasbir Singh: Good morning.

Rabindra Nath Nayak: Sir, can you please give the breakup on the consumer durables side into RAC and non-RAC, sir, in this quarter?

Rabindra Nayak: Sir, can you please give the breakup on the consumer durables side into RAC and non-RAC, sir, in this quarter?

Speaker #2: RSC and non-RSC—actually, it's the standard we have been operating in, a range of 75:25, kind of a range. So when I say RSC, it means RSC finished goods plus RSC components.

Jasbir Singh: RAC and non-RAC, actually, it is a standard. We have been operating in a range of 75-25 kind of a range. So when I say RAC, means RAC finished goods plus RAC components.

Speaker #6: Okay, okay. So the pure RSC would be how much in a 70 percent?

Rabindra Nath Nayak: Okay. So the pure RAC would be how much? Is it 70%?

Rabindra Nayak: Okay. So the pure RAC would be how much? Is it 70%?

Speaker #2: It should be around 60 percent, 55 to 65. It keeps on changing from quarter to quarter because sometimes customers ask us to supply semi knockdown kits, which comes under components.

Jasbir Singh: It should be around 60%, 55% to 60%. It keeps on changing from quarter to quarter because sometime customers ask us to supply semi knockdown kits, which comes under components. Sometime we have to give full boxes, which is finished goods, and sometime only the components. So it is very difficult to map on quarter-to-quarter basis.

Speaker #2: Sometimes we have to give full boxes, which are finished goods, and sometimes only the components. So it's very difficult to map on a quarter-to-quarter basis.

Speaker #6: Okay, okay. Sir, thank you, sir. Thank you very much.

Rabindra Nath Nayak: Okay. Sir, thank you, sir. Thank you very much.

Rabindra Nayak: Okay. Sir, thank you, sir. Thank you very much.

Speaker #4: Thank you. Ladies and gentlemen, due to time constraints, we will take that as the last question for the day. And now, I would like to hand over the conference to the management for closing comments.

Operator 2: Thank you. Ladies and gentlemen, due to time constraints, we will take that as the last question for the day. Now I would like to hand over the conference to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, due to time constraints, we will take that as the last question for the day. Now I would like to hand over the conference to the management for closing comments.

Speaker #2: Thank you, everyone, for joining the call, and wishing everyone a very happy Independence Day in advance. For any further information, please get in touch with our Head of IR, Ravi Harbanda, or Rohit Singh, our Strategic Growth Advisor for Investor Relations.

Jasbir Singh: Thank you everyone for joining the call and wishing everyone a very happy Independence Day in advance. For any further information, please get in touch with our Head of IR, Ravi Harbanda, or Rohit Singh, our Strategy Growth Advisor, our investor relations advisors. Thank you very much and have a good day ahead.

Speaker #2: Advisors, thank you very much, and have a good day ahead.

Speaker #4: Thank you. On behalf of Amber Enterprises India Limited, that concludes this conference. Thank you for joining us and you may now disconnect the lines.

Operator 2: Thank you. On behalf of Amber Enterprises India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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

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