Dynamic Cables Limited (DYCL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Dynamic Cables Ltd. Q2FY27 earnings conference call, hosted by Philip Capital India Private Ltd. As a reminder, all participant clients will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation continues. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Natasha Jain from Philip Capital India Private Limited. Thank you and over to you, ma'am.

Thank you, madam. Good afternoon, everyone. On behalf of Philip Capital, I welcome all of you to the second quarter FY27 earnings conference call of Dynamic Cables Limited India. From the management today, we have Mr. Rashish Mangal Managing Director, Mr. Murari Lal Poddar, Chief Financial Officer, And Mr. Govind Sabu, IR Advisor. I request the management to give their opening remarks, post which we will open the floor for Q&A. Thank you and over to you, sir.

Good afternoon, everyone. I, Ashish Mangal, Managing Director of Dynamic Cables Limited. I extend a warm welcome to all of you to our Q2 and half-year-1 FY27 earning calls. We have continued to build our growth momentum during the first half of FY27, supported by strong industry demand, disciplined execution, and our focus on operational efficiency. Our performance reflects the resilience of our business and our ability to navigate a dynamic operating environment. A key milestone during the period was the installation of our plant and machinery at our new manufacturing facility. We expect this facility to start contributing from the second half of the year. Strengthening our manufacturing capabilities and supporting our next phase of growth. The outlook for the power infrastructure sector remains encouraging, driven by investments in transmission and distribution, renewable energy, and industrial development. We continue to focus on expanding our market reach, strengthening customer relationships, and capitalizing on emerging opportunities across domestic and international markets. The export market is also expected to gain momentum as global macros normalize. While commodity, price, volatility, and geopolitical developments continue to influence the business environment, our emphasis remains on disciplined execution, prudent working capital management, and operational excellence. With a healthy order pipeline, expanding manufacturing capabilities, and favorable industry tailwinds, we remain focused on sustaining our growth momentum and creating long-term value to our stakeholders. With that, I would like now to invite our CFO to take you through the financial highlights for the quarter and IPR.

Thank you. Thank you, MD, sir. I will take you through the financial highlights from H1FI27. Revenue grew by 31% Y1Y2 to Rs.712 as compared with Rs.543 in H1FI26. Operating profit increased The customer-wise contribution to revenue in H1 FI 27 was as follows, government 23%, private 69%, export several days as on 30th September 2026 were at record low, less than 60 days on come GST sales. Thank you very much.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Vidhi Trivedi from Asian Market Securities. Please go ahead.

Hi, sir. Thank you for the opportunity. I've got a couple of questions. First, on the finance cost. So, our finance cost has increased almost to 4.2 crores, despite our borrowings declining on a quarterly basis. So, I just wanted to check what's driving this increase and how can we expect the finance cost to move forward from here once our new facility ramps up?

Yeah, so basically finance cost is the debt figure which you are talking about is a date figure actually. And finance cost is generally levied on the average working capital utilization. And also there are some vendor financing levies which we get under the finance cost. So all in all, the finance cost should remain below 15% is what we have guided. And we have always maintained that the cost 15% of the EBITDA. So, just to clarify, as a matter of fact or as a corporate discipline, it should not increase to more than 15% of the EBITDA. That is what is the philosophy of managing the finance cost.

And, sir, with respect to the new facility, it will again remain, say, 15% of the EBITDA. Is my understanding correct?

Yes, absolutely. Absolutely. So, I think currently on a six-month basis, it is hovering around 10-11 percent, or maybe a little more, but it could be sub-15 percent.

Got it, sir. That's helpful. And, sir, secondly, on the new facility part, as you explained, so we're expecting it to start contributing from second half. So, just wanted to check, you know, if you can quantify its installed capacity and potential revenue at the optimal utilization, and, you know, what are your expectations from the facility to achieve in FY27 and FY28?

So, basically, in cable industry, generally, it is very difficult to have a quantitative capacity guidance Because it's a customized product, and cable-to-cable, order-to-order, the capacity differs, or the machine time differs. But in general, for the sake of revenue guidance, we generally give a 6-7x asset term, which we do on our investment. So the total investment in the plant is around 40-45 crores. And so if you do six, seven times, you get a number of around 240, 250 crores, kind of, is what is the revenue potential initially. And the ramp-up should happen in the next three, four quarters.

Got it, sir. That's helpful. If I may squeeze just one quick question on the exports part. So, just wanted to check, you know, your overall sense on the exports, how are the geographies picking up, especially on the Middle Eastern part. If you can shed some light on that, that would be very helpful. Thank you.

So, I mean, export scenario, so, first of all, I mean, the scenario on the export side or entire international side, The business side is a bit tricky at this moment because of the seafree, the lack of insurance covers, or high premiums on the insurance covers, and a lot of other factors which are impacting because of the geopolitical situation and everything. Over and above that, there has been the entire tariff fear, I would say, which keep on emerging in the last few quarters. So, yes, but I think overall the opportunity size in the export market is very, very huge and very, very encouraging for companies like us. And we believe that once these transient factors settle down or normalize, I think it's a good, we should be back in the game.

That's very helpful, and thanks a lot for that. All the best.

Thank you. The next question comes from the line of Abhishek Maheshwari from Skyrich Fund Managers LLP. Please go ahead.

Thank you for taking my question. Sir, only one question regarding raw materials. Do we use scrap portion of copper also that we import from the European Union?

Come back again, please.

No, in terms of raw material, do we use the copper scrap also, which is generally imported from the European Union?

Sir, we largely use aluminium, so not copper as such, in our raw materials. And recycled aluminum is generally not used in cable manufacturing.

Okay. So, for aluminum also, now, European Union, and even for that matter, metal is, they've been imposing restrictions on exports. Especially European Union, they're saying that they'll be banning export of metal scrap to non-OECD countries. The cost inflation of it is not very small for that.

No, but we are not using recycled aluminium.

Okay, understood. Thank you.

Thank you. The next question comes from the line of Sangeeta Purshittam from Cogito. Please go ahead. Yeah.

Hi. Good afternoon. I just wanted to get some color on the EBITDA growth. Is it possible for you to tell us how much has been the growth in volumes that you have seen in this quarter and how much of it in the sales has come from the pricing increases? And secondly, we've seen a fairly sharp drop in the other expenses. Is that something which is sustainable going forward, and what has led to it, if you could just explain that?

Yes. So, good afternoon, ma'am, first of all. So, the volume growth number is around 6% for the quarter. So, basically, this kind of volume growth we have delivered. And on the basis of other expenses, so basically, I just want to highlight that the other expenses and this gross profit largely, they kind of are, there are some interchangeable items which keep on varying on a quarter-on-quarter basis. I think if you look at our company, I think you should look at the operating profit levels, which is typically the agenda margins, which may be the right context to look at our margins, based on the business where we are operating. Because there are some freight costs, some orders are come freight, some costs, some are excluding freight. So, all these things keep on happening as per the terms of the trade. On operating profit levels, we have always maintained our guidance of 10 to 11% EBITDA percentage. And yes, I think that is maintainable going forward. Okay.

So, if, you know, we've had an EBITDA growth of about 18%, and the volume growth has been 6%, so on a volume basis, per tonne or whatever we wish to define it, does that mean that actually the EBITDA per tonne has, in fact, gone up by about 12%? Yeah, so how does one actually interpret that, and how does one project that?

So, ma'am, this is in the cable business, I think EBITDA per ton is not the right context to look at our business because the business is on a percentage will always increase when the value growth is more or the price growth is more. And this EBITDA per ton or per volume, whatever, will decrease whether the commodity prices are low or the value growth is low. So, this is yield and price data to the investors. But we always also give a disclaimer that the right context of looking at our business is the absolute growth, value growth, and not the price and volume breakup. Because typically in our business, whenever there is a price degrowth, it is made up by volume growth, and wherever there is a volume degrowth, it is paid, vice versa happens. Budget is value-based, not volume-based. So, the business or the market size, everything is driven by value.

And there

is unlimited latent demand in power T&D infrastructure. So, it's not that it is, or the demand is concise by some volume data or some volume number.

Right. Okay. And I also wanted a clarification on your guidance for the exports. Would it be fair to interpret that the long-term outlook for exports is very strong? However, in the near term, which is, say, maybe the next six months or, you know, maybe a year, given the geopolitical disturbances, it is hard to predict how strong that growth may be.

Yeah, so basically, yes, you are right. That's what we also think about our business, and your assumption is fair enough. But just to kind of help through this question, I mean, we would also like to say that the domestic demand is very, very strong itself. So, I mean, we don't want to leave our stronghold over the domestic market for growing into export markets. So, for us, it is important. Domestic market is equally important, and to keep up the growth momentum in the domestic market along with the market demand is also equally important along with the export growth.

Right, that. Okay. And does the increase in either the finance cost or the depreciation have anything to do with the new facility? Have you capitalized it yet, and that's why depreciation has gone up, and is the interest cost up because some funds have been utilized for the new facility?

No, no, no, ma'am. So, basically, it's nothing to do with the new facility. It's completely on the working capital borrowings. We don't have any specific debt for the new plant which is coming up. So, in that fashion, it's a debt-free company on a long-term debt basis or a term debt basis. It is just that the vendor finance, I mean, the raw material, if you look at our The price growth has taken place during, I mean, as you compare, so the prices have been grown, and so the vendor financing facility, which is a part of our working capital cycle, that levies do come up and go. So, the best way, again, I am repeating the same thing, that the best way to look at it is that as a percentage of sales or as a percentage of EBITDA, we have guided that our finance cost has remained sub-15% of the EBITDA. That is what we aim for.

Right. Okay. Thank you. Thank you so much.

Yes, yes, yes.

Thank you, ma'am. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Kostav Bhumna from Kamana Holden. Please go ahead.

I understand what you replied to the previous participant, but color and why, free and those matters?

So, yes. So, gross profit is basically, there are two, three factors if I have to kind of explain you the movement in the gross margins. So, one is that there are some product mix which differ from quarter to quarter. So, the revenue mix keeps on changing, and each order has different gross margin. So, the orders which got executed this year might be carrying some lower gross margin. Even in a particular order, there are various items of different gross margin. So, I mean, basically, the revenue mix keeps on changing on quarter-on-quarter basis. So, it is actually unfair to judge us on a one-quarter basis. Secondly, I would say that because there was sharp volatility in the commodity prices, which we have seen, so there is some impact of that also. So this war disruption and everything does play a role, but a very minor role because largely it's a pass-through for us. So, major raw material volatility is passed on to our customers. Only there are 10-20% contracts which are on fixed price basis. So, that gets impacted. But 80-90% of our contracts have a price variation clause. So, we are protected on that front. Yes, largely, basically, these are the two major factors. And thirdly, as I explained, that our business is more to do or should be looked at an EBITDA percentage basis or operating profit basis and not gross profit basis in isolation. So that is my last submission to all the investors. Fair enough.

And on your capacity, I just wanted to understand your longer-term capacity constraints because you now have an additional 250 crore revenue possible, you said, from this CAPEX, which has been done. So I wanted to understand what your current capacity is based on your first half balance sheet, right, because this capacity has come up in October, I think. ... and scope to grow business from your existing capacities apart from this 250 crores of revenue potential from the new capacity. I'm just trying to understand your capex needs in the future also from this answer that you give and the longer-term capex plan to keep capacities, you know, increasing while demand is there.

Yeah, so basically, as we discussed that, on a long-term basis, we generally do six, seven times of our capex investment. So as of March 26, our gross block was around 184 crores, plus we did some capitalization of, I think, 10, 15 crores during the first half. So, broadly, our gross block is around 200 crores, and if we take our long-term averages of 7x or whatever, so our capacities turn out to be 1,400, 1,500 crores from our current plant setup. Now, because of the price inflation and deflation, this may go up or come down by 10-15% quarter-and-quarter year-on-year. But largely, this is what is our long-term average is suggesting.

So, which means that you will have to do some feedbacks again next year? We may request that you return to the question queue for follow-up questions. The next question is from the line of Amkit Shah from Anandrathi. Please go ahead. Sir, you are not audible.

I am audible now?

Yes, you are audible.

Yeah, thank you for taking my question. So, I have a couple of questions. So, starting with, you just spoke about the volume growth of 6%. So, when can we see the normalization of volume growth, like in low double digit or maybe in mid double digit or something? Because the majority of the growth, revenue growth, is coming from price increase. So, what's your see on that?

We can't kind of predict the normalization of value growth versus volume growth, price growth versus volume growth. But what we can say is that whether volume growth is 5% or something else number, But overall value growth of the company, what we have guided, are of around 20% on a long-term CAGR perspective, that we don't see any challenge in that.

So you expect 20% price growth going ahead?

No, no, no, not price growth. Overall value growth. Overall sales growth of 20%.

Okay. So if you can break down into volume growth and price growth?

It is difficult, because that all depends upon the macros which are not in our hand.

Okay, and what's your guidance on margins? Like, in current quarter, there was a decline in margins. So, what's your say on that?

So, margins, we believe that this is our business model. We generally, typically do 10 to 11% of EBITDA percentage for operating margin.

Okay, okay. And what will be the...

I'm sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Akash Dube from Amrapali Capital and Finance Service Limited. Please go ahead.

Yeah, thank you for the opportunity. I'm taking my question. Sir, I have a question. As earlier, the company has entered in the US market. So, what kind of further you are getting from the US market, and how the present, and what kind of situation of the import duty from the US side? Can you use some color on the particular question?

We don't give exact sales number of a particular geography. The U.S. market, I mean, the last quarter was a challenging quarter for the U.S. shipments, largely because of high seaf rates and high insurance rates. So once I think these things settle down, we should be back in the U.S. markets.

Okay, and what kind of weather we are getting? What is the duration for the completion of the product? And what is the current weather from the U.S. market?

Again, that's, again, reiterating that we don't give figures or numbers of particular geographies. Export market as a whole, around 7-8% of our order book comprises of export market, by export order book. Can you increase the distance between your, with your speakerphone, we can't hear you.

Not audible, clearly. I think there is some technical issues.

Hello, sir. Now it's suitable?

Better, but if you can just go a little slow, it will be better.

Now, so my question is, earlier the aluminum prices have suited up. So the customer has shifted from larger order to order to 2,000,000 kind of order. So what is the current scenario? And second, the question is, how does the total pair of orders impacting our current inventory?

Very sorry, we can't actually understand what you are asking. So, I think if you can... There's a lot of ego in somewhere because we are not... If you can just email your question, I think we will get back to you, please. Yeah, sure.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question comes from the line of Chintin Jain from Sagun Capital. Please go ahead.

Hi, am I audible? Yes. Hi, sir. Thank you for taking my question.

So, my first question is regarding if you

could give us a product breakdown of the different kind of products we have, which were sold in the last quarter.

So, typically, we kind of divide our product range into high-tension cables, low-tension cables, conductors, and a few other miscellaneous products, miscellaneous cables. So, if you look at the breakup of our sales, around about two-thirds of our sales comes from high-tension cables. Balance, 25% to 30% sales come from low-tension cables. And balance, 8% to 10% sales come from conductor and other products. So, this has been our broad breakup in our sales.

Okay, sir. Understood. And, sir, I wanted to understand, apart from the commodity what we discussed with earlier participants, is there any other factor which can be attributable to the decline in the operating margin?

I think the attribution is not because of the commodity price increase, because generally we get a pass-through in 80-90% of our contracts. Whatever is the escalation in the commodity prices or our input cost, we are able to pass on to our customers in most of our contracts on our sales contract. It is largely to do with some kind of product mixes or the revenue The new mix, I mean, order to order, the margins keep on changing and are different. So, largely, there were some shipments which were, or there would be some aggregation which was, which were having a lower margin relatively as compared to the, as compared to previous quarters. So, that's the whole reason. So, nothing specific to do with commodity price I'm sorry to interrupt.

We may request that you return to the question queue for follow-up questions. The next question comes from the line of Nikhil Purohit from Fident Asset Management. Please go ahead.

Hi, thanks for the opportunity. Just two questions. Like you mentioned multiple times about the product-wise, the product mix. Can you just give the product-wise mix? What was it for quarter two? So, it wasn't very different to how we've done earlier, right?

In this range only, 2-3% here and there.

Okay, so for H2 end of full year, do we see our EBITDA margins returning back to the, you know, the upper half of the 10 to 11% margin that we've been doing, given you will have clarity on the kind of product mix to be executed in the next six months?

I mean, we don't give exact margin guidance or quantitative guidances. Yes, but we are confident of maintaining the, for last so many years, which is 10 to 11 percent. Unless there is some deep macro instability or something which is not predictable, which is not in our hand, actually. So I think, I mean, since last four years or so, we have kind of maintained these margins, margin range.

Understood, understood. And also, we had said in the last phone call that quarter one saw volume moderation due to sudden increase in input prices, right? Aluminium today, as we talk, is, I think it's down from 3,800 to 3,000. What is our outlook for ordering from here on? Do we expect growth to be volume-led going forward?

So, I mean, again, coming back to the same answer that probably you would like to kind of look at the business in volume and price terms. But for us and for the cable market as a whole, it is like the whole value driven. Because the entire demand is value-driven, not volume-driven. So, the thing is that around 20% long-term growth guidance, which we have always maintained, we still maintain. Got it. Thanks.

Thank you. The next question comes from the line of Vidant from Kanara Bank Securities. Please go ahead.

Audible.

Yes, you're audible. Thank you so much for the opportunity. My first question is regarding, historically, our order book was growing at a target of 35%. So, with the new capacity addition which we are doing, what can we expect as a closing order book? What are we targeting?

Closing book, I mean, closing order book is, again, a tricky thing to tell you or to guide you, because the new order booking of the new plant will just commence. So, but yes, over a period of next four, five quarters, we are confident of kind of reaching the optimum or ramping up the production of the new plant. So, I think the order book in next 4-5 quarters would see a meaningful growth when the new plant orders optimize.

Also, sir, one more question on margin side. So, on the previous call, it was mentioned that for the fixed price contract, we generally buy raw material on the same day to protect the margins. So, just wanted to understand, on terms of raw material side, so how has impacted?

I mean, there is, so there are multiple raw materials which are there. So it's, I mean, 100% of the raw material is practically impossible to buy it on the first day. So there is some impact, but as I've been telling you that it's a very minor impact on our margins, even in our fixed price contract, because first, the ratio of fixed price contract is very low. It is less than 20%, I believe. As compared to the price variation, and out of that, the majority of the material is booked. So, yes, there is some impact, but the impact is not that material.

I think we can add one more question. So, is there anything?

I am sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Kevin Shah from Aditya Birla Capital. Please go ahead.

Yeah, I have to thank for your question, please.

Sir, you're not audible.

I'm audible, no?

Yes.

Yes, we just wanted to get your thoughts on the volume this quarter. Is it like, are we seeing, given the sharp volatility in commodity prices, so are we seeing a moderated demand environment or deferment in demand and as well as order execution, order delays, or is it a deliberate attempt to keep the value growth within the range, Given the working capital requirements, and how would you see the volume moving ahead once your new plant comes in? And if we are seeing a stable environment, what would be your guidance on that?

So, generally, typically, volume demand always follows or offsets the volatility. So, if the decrease has been the trend in our industry for demand in the market, So, basically, there is no volume limitation in the transmission and distribution state.

Excess supply available from H2 onward. So, how would you strategize your volume growth? Would you be willing to move on more volume growth even in case of volatile commodity environment?

Volatility doesn't have any impact protected by the price variation clauses. And, but yes, if the new capacity is there, new plant is there, there will definitely be additional volume which would be, which would be getting produced from that plant. And there are different products, different markets, which we are also exploring from the new plant. So that, that will increase our time. So I'm just trying to get at the point.

We may request that you return to the question queue for follow-up questions. The next question comes from the line of Shikhar Tiwari, an individual investor. Please go ahead.

Thank you for your opportunity. Am I audible?

Yes, you're audible.

Yes. So, in the previous quarter, the management said that there was a slowdown in the order booking momentum because of course a sudden spike in raw material prices. So, how is the momentum as of now? And is it possible to give a proportion of what percentage of the orders are from repeat customers and who are newly acquired customers?

So, yes, it has improved. The order booking scenario has improved. But again, since now we are into a dipping raw material kind of scenario, it will kind of improve further as we go ahead, if the prices, aluminum prices or the commodity prices correct further. So that is the first question.

Is it possible for the management to differentiate between what percentage of revenue comes from newly acquired customers and what orders are repeat orders?

Repeat orders? I mean, most of our customers are repeat customers only. The only thing is that the proportion of each customer keeps on changing on quarter on quarter, year on year basis. But largely, I think 70-80% of our sales comprise of, I am talking about the long-term things, not on the quarterly basis, but on an yearly basis, if you look at it, I think more than 80% of our, 70-80% of our sales comes from the repeat customers.

So, are there any customers where a large portion of the revenue

is concentrated on that particular customer? Like top 5 customers contribute to 30% of their revenue?

Not really. Typically, top 10 customers contribute around 40-45% of our sales, but those top 10 customers are also churning out. So, the concentration is not that kind of a worrisome thing for us. Okay, thank you.

Thank you. The next question comes from the line of Ankit Shah from Anandrathi. Please go ahead.

Hello.

Am I on the right? Yes, sir. Sir, if you can say something about the competition, because Ultratech have entered into the business, and I understand that we are more into B2B business, and they are into B2C business, but how it is impacting the competition across the value chain?

We have not seen any impact on our business because of ultra-world per se, only comments which I can kind of share with you with certainty. Then there are a lot of other factors which would be coming in and the competitive intensity would be evolving, but with the growth or the evolution of the industry. But this has been happening for the last 20, 30 years, 40 years, and will continue to happen.

But Altadack being a bigger player, so it might be having some impact, like maybe smaller impact, but it might be having some impact, right?

I mean, nobody is certain of this question. Nobody can answer this question with certainty. I think the house buyer market has seen the impact or would be the first one to be impacted. We would be impacted, we won't be impacted. Nobody is certain about it. And till now we have not seen any impact.

Okay. And my second question is like a...

I'm sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Sahil Patani from Strokes Capital. Please go ahead.

Hi, thanks. Yes, please. How much business do you see coming from exports versus how much of it will be domestic-led? Like, do you have...

I mean, it's difficult to predict and how much would be export-led, how much would be domestic-led Because it more depends upon the macros rather than the micro factors. We are agnostic. Wherever we find good business, good margin, good terms of trade, good customer, we are happy to do business. So that has been our philosophy of doing business.

And my second question.

I've got a new call.

Sorry? Sir, you're not audible.

Sorry. Can you hear me now? Yes. Yeah, just wanted to understand, are you foreseeing CAPEX 18 to 24 months?

Half audible, new CAPEX.

Hi, sir, am I audible? Yeah, just wanted to understand, do you foresee any upcoming CAPEX in, like, let's say, the next 18 or 24 months?

Yeah, yeah, definitely. So, CAPEX will be an ongoing thing. So, we will be expanding our capacities as we go forward. And from time to time, we have been announcing our capacity expansion. Largely, it would be on a brownfield basis or a greenfield basis. But expansion is inevitable.

Got it. Cool. Thank you so much, sir.

Thank you. The next question comes from the line of Divi Gosar from Shubkham Ventures. Please go ahead.

Hi, sir. Thank you for this opportunity. Sir, my first question was, in the first half, we have grown by, our revenue growth has been more than 30%. So, given your long-term guidance of 20% revenue growth, will we do higher than 20% in FI27?

It should actually be given by the H1 performance. Because this year, price growth was quite high in the first half. So, we got a little extra cushion.

Can we expect 30% growth in FY27?

I mean, giving us quantitative short-term guidance, we have not been doing it for now. So, I would, again, avoid it.

Okay. And given the higher base in FI27, do you expect 20% growth in FI28 as well on the base of FI27?

Again, I mean, I should not give any quantitative guidance. Let's see, let's see, let's first close this year, and probably we'll have a better visibility of the next year.

Okay, thank you so much.

Thank you.

The next question comes from the line of Hoshong from Elios Financial Services. Please go ahead.

I just had two questions. So, one thing, sir, when you look at the cash flow statement, I think the inventory has gone up significantly for the time. So, can you just maybe throw light on it? Is it mainly because of more sales or any other particular reasons?

So, there are two aspects for inventory going up. One is that in number of days, if you look, the inventory has not increased very significantly. I think it is within the range. And H1 inventory or September inventory is typically a little higher than the annual inventory because we are an H2 heavy business. So basically we need to keep inventory in order to capitalize on our seasonality, the H2 seasonality.

One last

thing regarding the inventory part is that the value of the material has also increased. So that has also impacted the overall inventory levels. Because the price of raw material has gone up.

Okay, understood.

Just one last question. This is, you know, regarding the new facility. I think you mentioned that in that we are, like, the firm is making, like, a new type of, like, maybe a more durable form of solar cable, the electron beam solar cable, and the company is also looking to get into data center cases as well, right? That's still in product development stage. So, just if you could share your thoughts with regards to electron beam cable, have you, you know, gotten any type of orders or any kind of customer commitments or interest regarding that? And when would you be planning to phase out or, sorry, bring in the data center related cable?

So, yes. So, basically, regarding the solar cables, the sales team is out there in the market and engaging with the customers. So, we should soon see the results in place. On the data center side, I think the product readiness is still underway. So, once we are ready with the product, probably then we will go into the market for engaging with our customers and doing the type testing and all the technical tests for getting the orders. But, yes, data center is a huge opportunity, and for, I mean, all the cable manufacturers, even the power cable manufacturers, it will become a sizable opportunity. That's what we believe, going by the industry reports or the research which we all are kind of reading through.

Sir, any timeline you can maybe share with regard to when you will be coming out with that, the data center field?

I mean, there is, it all depends upon, we are kind of serving the market, data center market, and data center market itself is under the stage of a lot of evolution. So, probably we'll have to wait some time to get clarity on how this opportunity shapes up.

Thank you.

Ladies and gentlemen, we will take this as the last question for today. I now hand over to Ms. Natasha Jain for closing comments. Over to you, ma'am.

Thank you. I request the management to give their closing remarks, if any.

Thank you. Thank you, all the investors. I think there are a few investors more in line, so they can connect with us, email with email, or call us. We'll surely address all the unaddressed queries of all the investors in the queue.

Thank you. On behalf of Dynamic Cables Limited and Philip Capital India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.