Earnings Call Transcript - XNSE:LASERPOWER 2026-11-13

Sidhan, Head of Investor Relations

Ladies and gentlemen, good day, and welcome to LaserPower Q2 FY27 Earning Conference Call. 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 the 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. Anirudh Joshi from ICI Securities. Thank you, and over to Mr. Joshi.

Speaker 5

Yeah, thanks, Sidhan. On behalf of ICICI Securities, we welcome you all to 227 and H1FI27 Reserves Conference Call of Laser Power and Infra Ltd. We have with us today's Senior Management, represented by Mr. Deepak Goyal, Chair and Managing Director, and Mr. Amit Kumar Goyal, CFO. Now, I hand over the call to Mr. Deepak Goyal for his comments on the quarterly performance. Then we will open the floor for question and answer session. Thanks, and over to you, Deepakur.

Operator

Good morning, everyone.

Deepak Goyal, Other

On behalf of the entire team at Laser Power and IMSA, I welcome you to our earning call for the second quarter and half year ended September 30th, 2026. This is our second earning call as a listed company and I thank all the shareholders including those joining us for the first time. for their trust and for their support. If I have to sum up this quarter in one sentence, I would say that laser power has taken an important step forward in its journey to step into high voltage transmission business. During the period, we secured our first commercial HCLS conductor order from power grid. And our first 220 KV underground transmission project from CESC and took a concrete step towards new manufacturing fest meeting at Kharagpur. Together, these developments move us up the value chain from a company known largely for distribution grade products. and EPC to one with credentials in high voltage transmission. I will spend most of my time on these developments and then briefly cover the headline numbers and order book after which Amit will take you through the financial details. Why transmission and why now? India's power sector is seeing a rising electricity demand, rapid renewable energy addition, and a large program for transmission network expansion and grid modernization. Transmission is where much of this investment is headed. Because of new generation, especially renewable energy, we can deliver full value only if the grid can carry the power reliably. At the same time, building new transmission corridors is increasingly constrained by land availability, right-of-way approvals, and long implementation timelines. This is creating demand of two kinds of solutions. Technology that can carry more power through the existing corridor and specialized. Uh, execution capabilities for congested urban locations. Our developments, this quarter addresses both. Building on our integral platforms, for those new to laser, please, uh, uh, let me please provide you brief context over. With over three decades of experience, we operate across manufacturing and EPC. Our manufacturing business produces power cables, conductors, and specialized products. Our EPC business delivers power infrastructure projects from supply to installation, testing, commissioning, and handing over. This integration is what makes us It makes our company specialized high voltage transmission company. Transmission customers value suppliers who understand both products and how it performs in the network. And we can take responsibility of quality delivery from end to end. Our long-standing relationships with utilities, distribution companies, and EPC participants gave us a strong foundation to build on. First, HCLX order from PowerGrid. The most significant development of the period was the award of a contract aggregating to 72.76 crores. From power grid for supply of high-temperature, low-fag, or HPLS conductors, and reconducting of the existing transmission lines. This is laser's first commercial HPLS order. It marks the transition of our advanced. Conductor platform from development qualification to commercial aggregation, and it comes from India's largest transmission utility. Through our licensing agreement with TS Conductors USA, we have access to advanced conductor technology design to address the practical challenges the utilities face. Over approximately 18 months, our team has worked through the product, testing, qualification, execution readiness to reach this stage. Powerbred's order provides commercial validation of this effort. As HPLS and reconducting tender increase, utilities will compare technologies on measurable parameters. Power transmission capabilities efficiencies. Life cycle economics, installation requirements, and execution performances. If the expected technical and economic benefits of the ETS conductor platforms are demonstrated, consistently on the field, we believe this technology can reach an important infection point and support a wider adoption. Early entry into 220 kV underground transmission. CESC. Alongside our advanced conductor, we have also entered into specialized ETC. During this period, we received 44 crores ordered from CESC Ltd. for ETC burn involving 33 kV and 220 kV underground cabling. This is laser's first 220 kV underground transmission project and its strategic value goes beyond the order size. Extra high-voltage underground cabling is increasingly needed in dense land-constrained cities where overhead expansion is difficult. Successful execution will add to an important specialty, specialized credentials, and our position for similar projects. These orders broaden our presence in transmission across specialized products and projects execution and provide operating references needed for completion for large opportunities coming ahead. Capacity Enhancement Kharagpur Facility To support the next phase, We are also expanding our manufacturing platform. During the quarter, we have received provisional letter of intent and in principle approval from West Bengal Industrial Development Corporation Limited for allotment of approximately 40 acres of land at Midyashagar Industrial Park in Kharagpur on long-term leave. The site is intended for an Integrant Power Cable Conductor Manufacturing Facility. Kharagpur is intended to expand our manufacturing capability and broaden our product range, including higher value transmission products that our recent order calls for. Our approach will remain fave and disciplined. The timing and scale of investment will be aligned with demand visibility, product strategy, customer requirement, and expected returns. Q2 and H1 financial year 27 performance. Coming to our performance during quarter 2 of FY27, stand-alone revenue from operating stood at around 628 crores, growth of around 2% over quarter 2 of FY26. EBITDA was 76 crores with an EBITDA margin of around 12.1% compared to 13% in the corresponding quarter last year. Profit stood at 31 crores for H1 FY27 and standalone revenue from operations stood at 1150 crores with EBITDA margins at 140 crores with a margin of 12.3% and profit of tax off tax at 52 crores. Amidji will cover the financial and key drivers in more details. Order book and execution visibility. As of September 30, 2026, our order book stood at approximately 2,543 crores comprising approximately 1,303 crores from manufacturing, 1,240 crores from EPC. During quarter 2 of FY27, we secured new orders of approximately 357 crores and taking our inflow of H1 financial year FY27 to approximately 449 crores. To sum up this half of the year, mass lasers entry into transmission. With commercial HDLS and 220 KV underground credentials, supported by a clear plan to enhance capacity. In the second half of our priority year, execution of PowerGrid and CESC projects successfully, converting these references into further transmission opportunities, progress in the Kharagpur facility in a phased manner. Increase the contribution of specialized higher value products, and we will bring selective orders we pursue and discipline on the working capital and capital allocation. I thank employees, customers, suppliers, bankers, and shareholders for their continued trust and support. With this, I will hand over. to Amit Ji, who will take us through the quarter to H1 FY27 financial performance in details. Amit, over to you.

Amit Kumar Goyal, CFO

Ambassador has outlined how laser power has entered the transmission business. Through our first HDLS order from Power Grid, our first 220 kV underground project from CESC, and the planned expansion at Collector. My remarks will cover how this quarter reflects in our financials and how our balance sheet is being positioned to support the next phase. First, revenue and profitability improved meaningfully on sequencing basis. Second, finance costs had a started come down following the IPO-funded repayment of borrowing, with only partial quarter benefits so far. Third, working capital rose in absolute term to support higher education and converting into cash. This is our main financial priority for second hour. Let's begin with our financial performance. A standalone revenue from operations for Q2 is due at 628 crores, registering sequential growth of 20.5% and YOY growth of 2.1%. Of this, manufacturing revenue is due at 524 crores, compared with 404 crores in Q2, FY26, representing a YOY growth of 29.9%. This reflects the higher level of manufacturing activity and the status during the quarter. EPC revenue is true that 104 crores compared to 212 crores. I'm presenting a death. And peace be with you. Thank you. Thank you very much. which is true that approximately 33 crores compared to 36 crores in Q1 and 34 crores. Transports received at 68 crores compared to I'm going to take six. On September 30th, the total borrowing is due at approximately $4.99. Our focus is to maintain student leverage while progressively realizing the financial benefit from the agreement of borrowing. Working capital remains an important financial focus for us. As on September 30, 2026, working capital stood approximately at 1159 crore, compared with approximately 1059 crore at the end of Q1. While the absolute working capital increased approximately by 100 crore, working capital did reduce. to 166 days from 183 days in Q1-527, mainly reflecting by the higher revenue days during the quarter. The main movement of inventory was in inventory, which increased approximately to 946 crores from 710 crores. Inventory levels are Temporarily elevated due to the execution delays caused by the heavy rains and during the period. Trade receivable, however, reduced to 382 crores from 1416 crores at the end of quarter months. The increase in working capital, particularly inventory, affected our operating cash flow during the period. However, we have already started seeing the improvement in working capital position as execution and billing have picked up. The manufacturing orders are completed and dispatched. EPC projects could... Progress through installation, certification, and billing, we expect the related inventory and receivable to progressively convert into cash. Accordingly, we expect operating cash flow to turn positive for FY27. We are also targeting improvement of approximately 25 to 40 days in working capital days by Q4 FY27. This will be driven by discipline procurement, improvement education, faster certification, and timely billing, and stronger collections. On December 30, 2026, our total order book is to approximately 2,543 crores, comprising approximately 13 crores from our manufacturing and 1,240 crores from APC. The order book provides a healthy visibility across both the businesses with recent power grid and CAC wins. We are also adding to the contribution from the specialized transmission opportunities. The timing and scale of capital expenditure will be aligned with demand visibility, the utilization, and capabilities of our existing facilities. The proposed product mix and Thank you.

Sidhan, Head of Investor Relations

We will now begin the question and answer session. Anyone who wishes to ask a question may press tab and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press tab and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead.

Vidit Trivedi, Analyst — Asian Market Securities

Hi, sir. Thank you for the opportunity. My first question is with respect to the margins. So, you know, with the increasing contribution from the specialized conductors, STLS products, and higher voltage cables, I just wanted to check what is the potential margin improvement we can see over the next two to three years, and can the company structurally move towards a 13-14% kind of EBITDA margin?

Amit Kumar Goyal, CFO

Yeah, sure. So, we see that improvement will happen as we were discussing that we are coming into that specialized product, which is a CLF and underground cabling. So, those products are definitely a high-margin product, and as the mix improves, we can see that improvement in our panel going forward. Yeah.

Vidit Trivedi, Analyst — Asian Market Securities

Got it, sir. So, secondly, you know, you've recently secured your first 220 KV underground transmission project from CSE. So, just wanted to check what's the project value execution period and the expected profitability. And does this provide us an entry into larger EHE underground cabling opportunity? And secondly, could you please give us the order book split between government and non-government projects?

Amit Kumar Goyal, CFO

So, as far as I said, Our typical revenue mix is 50-50% on manufacturing side between government and private sector, and other goals also affect the same, but EPC is the... Yes, sir, executed for comment only, miserably for comment. Thank you. Coming to a 220 KB.

Deepak Goyal, Other

I think it's around 44 crores, Amit.

Amit Kumar Goyal, CFO

Yeah, it's around 42 crores, 44 crores, and the education timeline would be one year roughly from today, so as we start.

Vidit Trivedi, Analyst — Asian Market Securities

And sir, what's the expected profitability?

Amit Kumar Goyal, CFO

So, expected profitability will be very, like, at this stage, we expect any, you know, any EPC project typically can provide us somewhere a better range between 14% to 16%. And as the project progress, we'll be able to, and it's very difficult to identify because there are a lot of common resources being used for a single project. But these are going to be a little bit better margin projects for sure.

Deepak Goyal, Other

This project is actually going to qualify the company for the next phase of expansion that the company is planning. So today, if I have 220 KB underground experience, it does help me in the product side and in the execution capability side going forward.

Vidit Trivedi, Analyst — Asian Market Securities

Got it, sir. Thanks a lot, and all the best.

Sidhan, Head of Investor Relations

Thank you. A reminder to all the participants that you, my Prashtar, Anwan, do ask a question. The next question comes from the line of Shidhan Lodaya from Sanchi Fund. Please go ahead.

Speaker 10

Yeah, hi, sir. So, as you mentioned, we do 42%, approximately 42% revenue in H1. So, assuming 58% in H2 would be, would take our entire year revenue to somewhere around 2700 crores. On that, if we, is

Speaker 5

it right to assume a 340 crore rebid the number for FY27?

Amit Kumar Goyal, CFO

So EBITDA range, as I mentioned, it is like 12.5 to 13 percent, and that's fine. So that will remain like that.

Operator

Okay. Thank you.

Sidhan, Head of Investor Relations

Thank you. A reminder to all the participants that you, my press staff, I want to ask a question. The next question comes from the line of Divya Shait from Walbur Trading and Consultant Private Limited.

Operator

Please go ahead. Mr. Shade, please go ahead. Mr. Sheik, please unmute yourself. Are you audible?

Sidhan, Head of Investor Relations

Yes, you're audible now.

Speaker 10

Yes.

Sidhan, Head of Investor Relations

Please go ahead.

Speaker 10

Good afternoon, team. I just had a conversation on a good set of numbers as well. I just had a few questions regarding what would be our utilization and volume growth this time within manufacturing, and our previous year cable utilization was around 80%. So, has there been more improvement in the conductor business, more volume growth in conductor business, and if so, what would be EBITDA per turn in a conductor business?

Amit Kumar Goyal, CFO

So, currently, we don't measure our conductor division separately for a particular purpose, because, you know, conductor and cable are quite integrated. For any cable to manufacture, you have to manufacture conductor first. So, it's very difficult for us to measure the profitability of conductor separately. But overall basis, if I have to talk on our business side, our continuous aim. And lowering the base of the conventional conductor, which fetch very less amount of EBITDA. We are bullying.

Speaker 10

So, sir, what would be the utilization this quarter and volume growth in this quarter, if I may understand that?

Amit Kumar Goyal, CFO

The utilization of capacity, as we mentioned in previous calls also, so we keep TAP at roughly 70-75%, and as soon as we achieve and we try to expand our plant, this year also we have enhancement plant. So, on fuller basis, we can see the utilization of... The production would be roughly at 70% and that's the way we will keep it.

Speaker 10

70% and volume growth, sir, volume for this quarter?

Amit Kumar Goyal, CFO

So, volume growth would be similar in that, because what happens in our case, since most of the contacts are pursue, so whatever we see in our top line, and the aluminium metal prices are very stable during the quarter. So, it's a similar growth in volume as well, what we have reported in our numbers.

Speaker 10

So, because of stable, RM calls, the volume growth is in line with our revenue.

Amit Kumar Goyal, CFO

Yeah, yeah, yeah.

Speaker 10

I also just wanted to understand, moving forward, are we more focused on conductors and cables, or there would be a similar mix moving forward? In last conference, I guess you've given an understanding that currently, within manufacturing, 90% is cable and 10% is conductors. So, we will let conductor part grow and that mix will evolve over the period of time. If you can give that understanding.

Amit Kumar Goyal, CFO

So, our mix will be dominated by cable, 90% cable, it should remain 90%, the cable should remain between 80% to 90%, and conductor will remain between 10% to 15%, and as I mentioned that gradually, though all those conductor business will be, you know, contributed by our specialized conductor instead of conventional conductor. So, our call endeavors towards reduction of conventional conductors and picking up the specialized conductors. I mean, cable and conductor should remain right.

Speaker 10

And also, I just wanted to understand, we did a tie-up with TS Conductors, one of our related companies also were listed recently. They went for ACCC. Why the tech difference that we chose? And also, what is the competition are we seeing within these conductors in tenderiness? Many have received this licensing in recent years. Are we seeing some price competition at tender levels as well within these conductors?

Deepak Goyal, Other

So just to tell you a bit, see the technology that we have tied up with has been a new generation technology. So we would not be able to comment on the earlier technology, but we would definitely be letting you know that the newer generation of this technology has a lot of advantages. And those advantages, as I already told you in my opening statement, those advantages are yet to be recognized by the utility. As and when the project goes on flow, and as utilities start recognizing the advantages of the new technology, it will bring about a better acceptance. And a better margin for the company and we do see utilities adopting the newer technology because of its advantages. That's the basic reason.

Speaker 10

Okay, so currently the utility is more inclined to AECC, but you are saying there would be a lot more adoption in AECC. Yeah, what does that presently recognize the advantages?

Deepak Goyal, Other

Yeah, this is the second generation of the same technology. So, of course, every technology coming up in a new generation has its advantages. So, that's something that needs to be recognized by the utility.

Speaker 10

Understood, sir. Understood. And do we see some price competition at that level? Because earlier, a very limited set of manufacturers had this kind of technology, but now there have been a lot more licensing. So will we see some competition at price level during L1? I will put it in another way.

Deepak Goyal, Other

The newer generation technology and comparing it with the earlier one. As we go forward, there are also cost advantages attached to the new technology. So even if competition is there, the new technology is giving us an advantage, an edge over the earlier technology as far as cost is concerned. So those advantages we still hold, and we feel with those advantages, the earlier generation technologies will always be able to compete with us. I understood, sir.

Speaker 10

Any outlook for exports that we are looking in a bit longer term as well, after two years, or will be more to domestic business itself?

Deepak Goyal, Other

Yes, yes. We are looking at that opportunity as well.

Speaker 10

Okay, sir. Thanks, Sam.

Operator

Thank you.

Sidhan, Head of Investor Relations

Thank you. A reminder to all the participants that you, my press staff, and want to ask a question. The next question comes from the line of Nishtha from Sapphire Capital. Please go ahead.

Nishtha, Analyst — Sapphire Capital

Hello, am I on mute? Yeah, so I just wanted to know, so are EPC revenues, so it's down just even percent, so I just wanted to understand why that is, and are we consciously trying to reduce revenue contribution from EPC and increase revenue contribution from manufacturing?

Amit Kumar Goyal, CFO

So, Nishita, both things are there. So, as far as our mix is concerned between EPC and product manufacturing, so we foresee that it should remain between like 75-25 kind of ratio, because that is an optimal, you know, mix for us, where we can fetch, maximize our profit, and we are using our, and to add it, like, we use only our own produced cable and conductor for EPC. So, those kind of EPC we are taking, and we see that as a forward integration to our business, so which is helping our business. So, as far as mix is concerned, we see we try to drive at 75-25 level. As far as the revenue drop is concerned in EPC and Q2, as I was mentioning during my speaking speech, it is mainly due to heavy rains in the affected areas where our projects are going. So, there are a lot of supplies happening, but it actually could not happen because of those calamities. Now, those will be speed up, and those can be covered in Q2 and Q3. So, that's how we expect.

Nishtha, Analyst — Sapphire Capital

Right. What sort of revenue delay, if you could quantify the revenue delay from this in H1?

Amit Kumar Goyal, CFO

So at least my revenue were deferred for roughly 100 crores, 100 crores EPC revenue, which were deferred with all these delays.

Nishtha, Analyst — Sapphire Capital

Okay, okay, understood. And I wanted to ask, so, this new manufacturing facility that we are progressing in Kharagpur, what sort of capacity will we have there, and what sort of case pegs do we require for the capacity?

Amit Kumar Goyal, CFO

So, we just got the land approval from the government, and we are having an existing facility at Kharagpur, and we have enough land bank available in that piece also. Thank you. So this is not completely planned yet. Thank you. We will discuss about it properly.

Nishtha, Analyst — Sapphire Capital

New capacity is going to be at our existing plant or at the new land parcel that we got approved from?

Amit Kumar Goyal, CFO

Both are existing land, actually. Both are existing. So, that's why we got there. Because these are existing to our current land. Okay, okay. So, we will make a plan to how to optimize that entire production capacity, and accordingly, we will comment on that.

Nishtha, Analyst — Sapphire Capital

Okay, I understand. And my next question is, so you mentioned that in EPC, we generally get EBITDA margins of around 14-15%. So, what sort of EBITDA margin do we get for a manufacturing segment?

Amit Kumar Goyal, CFO

Yeah, manufacturing segment typically remain between 10-11% and 11% roughly, and hence the mix land up to 13%. So, that's how we always speak. That's how we see our business.

Nishtha, Analyst — Sapphire Capital

Okay, understood. And so far, overall, F-527, what sort of revenue growth can we expect? Can we expect around 10, 15% revenue growth in F-527?

Amit Kumar Goyal, CFO

So, as I mentioned that we can, our typical seasonal impact where H-1 is typically 42% and H-2 is the risk. So, that's how it works. So, we can draw from that.

Nishtha, Analyst — Sapphire Capital

Okay, okay. And the order book that we currently have, what is the order book break up, if you could give, actually, I was not able to hear you properly when you gave the order book break up.

Amit Kumar Goyal, CFO

It's only 2500 code order book we have. Out of the 1500 code pertains to manufacturing and 1200 code pertains to EPC.

Nishtha, Analyst — Sapphire Capital

Okay, I understand that. Perfect. Yeah. Thank you so much.

Sidhan, Head of Investor Relations

Thanks. Thank you. A reminder to all the participants that you may press stop and want to ask a question. The next question comes from the line of Rahul Chako from Aquintess. Please go ahead.

Operator

Hi, I'm Arun.

Speaker 2

Thank you for the opportunity. My first question would be on the working capital. As you see, the days have been stretched to 181 currently in H1. What I try to understand is there is a change in the recognition of revenue for manufacturing and EPC. Is this why the working capital has been stretched and how should one look at it to be normalized by VRA? Yes.

Amit Kumar Goyal, CFO

So, working capital is stretched because, as I said, that since our operations are delayed in EPC and which hampered our inventory, you know, so we see that to be normalized by Q4, and that's how we expect our cash flow, operating cash flow, also to be positive by the event. So, and it already started normalizing. So, by September, it's picked out, actually, and now it started normalizing already.

Speaker 2

Could you give a range or any guidance of how a normalized working capital should be located?

Amit Kumar Goyal, CFO

So, from Q2, we expect 25 to 40 days lower by year end. Yeah, that's what improvement we can see.

Speaker 2

Okay. And my second question was regarding, there's an order pipeline that was discussed in the previous quarter around 1250 plus growth in order pipeline that is expected. If you could share some light of when one should expect this to be converted into the author book, like what timeline would this be?

Amit Kumar Goyal, CFO

So... So, there are various levers to it. You know, so order pipeline is there, but once the bid is open and there are various processes to be followed. So, once it is open, so we see this by year end, we should have further orders, and orders in flow also is a continuous process. So this quarter also we received roughly 350 crore of orders. So it's a continuous process. We keep bidding and we keep getting orders, especially on the manufacturing cycle, because manufacturing cycle is always shorter in tenure. It takes roughly six months to deliver the orders, and EPC cycle usually is between 1.5 to 2 years. So that's how order book also keeps replenishing every month, every quarter. And we'll keep updating you about the specifics whenever it comes.

Speaker 2

Okay. I got that, but currently, as you can see, I think your order recognition is currently slower than your execution and revenue. You're converting your existing orders to revenue much quicker than new order inflows that are coming in. So, my concern or what I'm trying to understand is, any bigger orders currently in the pipeline that we should expect within the H2?

Amit Kumar Goyal, CFO

Yeah, yeah. We will keep announcing, as I said, by the year end, this order book.

Operator

Thank you.

Sidhan, Head of Investor Relations

A reminder to all the participants that you, my press staff, and want to ask a question. The next question comes from the line of Ravi Mehta from 1UP. Please go ahead.

Speaker 10

Yeah, hi. Thanks for this call. Just wanted to check, when I look at segmental numbers, the manufacturing margins have dropped a bit, and EPC margins are very good, and it's kind of offsetting. So was there any one-off that explains this?

Amit Kumar Goyal, CFO

So, typically, what happens in our business, both are so well integrated, so we don't look at margins individually between the business. For the segmented reporting purposes, we have to do it for statutory purposes. But as far as KPI, we don't have to look at margins individually between the business. You know, plants are common and it's completely integrated business. We don't look at it separately. So at overall basis, we always say our EBITDA to be stable between 12.5% to 13%, and that's how we keep guiding our investors on this. Yeah.

Speaker 10

Okay. Thank you.

Sidhan, Head of Investor Relations

Thank you. The next question comes from the line of Devesh Hit from Walbert Trading and Consultant Private Limited. Please go ahead.

Speaker 10

Thank you so much for once again taking my question. Actually, my question was answered regarding the segment margin itself, which I was going to ask about manufacturing.

Speaker 2

But other than that, within our 2500 crore order book and

Speaker 10

1300 crore manufacturing, out of 1300, would you be able to give us a split between conductors and cables? Or is it the same angle 10, 85, 15?

Amit Kumar Goyal, CFO

Hi, it would be roughly like 85% would be cable and 15% connected. That's how the current order book reflects for manufacturing.

Operator

Thank you.

Operator

A reminder to all the participants that you may press tab and want to ask a question.

Operator

A reminder to all the participants that you may press down and one to ask a question.

Sidhan, Head of Investor Relations

Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. Sorry, we have one more participant before we conclude the call. It's Yash from Maveera. Please go ahead.

Yash, Analyst — Maveera

Hi, sir. Thank you for the opportunity. So, sir, my question was mainly broad-based with respect to the underground cabling. So basically what we have been hearing over multiple calls and multiple companies is that a lot of projects in multiple states are now underground cabling for transmission. So can you just explain what is changing? So generally what we have seen is that the transmission is generally the overhead transmission lines that we see. So, what is changing, and what is the technological change, and why is it happening now, if you can just throw some light on that.

Operator

I'll take that.

Yash, Analyst — Maveera

Yeah, yeah.

Deepak Goyal, Other

I'll just tell you a bit about how the transmission and distribution infrastructure has been built in our country. So over the past few years, most of the infrastructure that was built was built with bare, bare conductors which were running over poles. Gradually with natural cameramen, it is increasing. Their stability, their reliability was going down. So the need for more stable power distribution system arose. And ultimately, the utilities realized that underground cabling would be the right process in which we would be able to get stable and reliable power distribution networks across the country. That is the reason why gradually Every utility is now starting to adopt underground cable overhead distribution lines. As far as transmission lines are concerned, which are interstate, they are still dominated mostly by overhead transmission lines, only where there are right-of-way issues or issues where land acquisition is very difficult. There, we are able to provide specialized solutions. Those are the solutions which we have brought about with the technological tire from a company in USA, and that's the solution for which we've got one first order from PowerGrid for a transmission line in Assam. So, those are the kind of solutions that are going to get more value because right-of-way issues for transmission lines are going to become difficult in times to come to acquire land, to install new transmission lines. So, gradually, that business is also going to increase. So, this is how I would address it. I hope you are able to get a clearer picture.

Yash, Analyst — Maveera

Yes, absolutely, sir. So, basic understanding is that we will see more of the underground transmission projects slowly growing in terms of volume and value in the coming times. Correct?

Deepak Goyal, Other

Yes, sir. Yes.

Yash, Analyst — Maveera

Okay. Thank you. Thank you so much. That was very helpful.

Operator

Thank you.

Sidhan, Head of Investor Relations

Thank you. That was the last question for today. Ladies and gentlemen, we have reached the end of question and answer session and now hand the conference over to management for closing comments.

Amit Kumar Goyal, CFO

Thank you, everyone, for joining us today, and wish you all Happy Diwali from Laser, Power, and Infra team. Hope to connect with you all again in our Q3 earning call. Thanks a lot. Thanks for joining.

Sidhan, Head of Investor Relations

Thank you. On behalf of ICICI Securities Limited and Laser Power Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.