Transrail Lighting Limited (TRANSRAILL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Transwell Lighting Ltd. Q2 FI27 earnings conference call hosted by Nuama Institutional Equities. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference for Ms. Bhakti Shewade from Nuoam Institutional Equities. Thank you, and over to you, ma'am.

Thank you, New York. Ladies and gentlemen, good day and welcome to the Transrail Lighting Q2FY27 conference call hosted by Noama Institutional Equities. 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 any assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. I now hand over the conference to Mr. Randeep Narang, Managing Director and CEO. Mr. Rajesh Neelkant. Group CFO and Chief Strategy Officer, and Mr. Deepak Andilwal, CFO from the Transrail Lighting. Thank you, and over to you, Mr. Narang.

Thank you very much, and welcome to all. Good afternoon. I am joined here with Mr. Rajesh and Deepak, as already mentioned. So, I'm very pleased to share that Translator has delivered very strong Q2 27 performance regarding the highest ever revenue and EBITDA. This robust performance is achieved despite the continued impact on supply chain and logistics due to the Middle East Asia crisis. This reflects better execution momentum across our projects, sharp focus on cash flow management. With this, the company's overall H1 performance is backed on track to achieve the annual growth guidance. In the listing, we have not missed any of our revenue or margin guidance, and we continue to be confident to achieve the same trend this year. Our focus remains on sustaining this growth while striving for industry-leading profitability and cash generation. Speaking of the numbers, the revenue for operations for quarter and September 30th has grown to 2056 crores, which is a 32% jump year-on-year. Similarly, bender stood at 238 crores, which is a 28% jump year on year, quarter two. Alongside our operating performance, we have continued to strengthen our balance sheet. Our cash flow from operations was impressive, 435 crores in H1, while the net working capital cycle days is sustained at 82 days from the same period. It reflects our continued focus on collections, project execution milestones, efficient working capital management. Going forward, improving cash conversion will remain an important priority as we scale-up of operations further. On manufacturing front, we have had meaningful progress in expanding our capacity. Our tower manufacturing capacity currently stands at 1,84,400 metric tons per annum, while completion of phase 1 of conductor expansion has increased our installed conductor capacity to 40,800 km per annum. We have progressed well with our planned CapEx investments to further strengthen our manufacturing base. The expanding capacity will enable us to support larger and more complex projects, improve supply assurance, and have greater control of quality and delivery to meet the customer expectations. Our order book stands at 14218 crores as of September 30. While post the quarter got over, we have already declared orders of 1747 crores, providing strong revenue visibility. With this improvement in order momentum, we are confident to achieve an annual order intake of 10,000 plus crores, while maintaining a healthy book-to-bill ratio. The auto win is also encouraging from the business diversification perspective, fanning, transmission, substation, conductor, and reconducting opportunities. An important development is the auto win we have had, and we have got awarded five conductor jobs in India. While we will use our own manufactured carbon-coro HTLS conductors. We see this as an important product breakthrough for our transfer. Reconducting provides an opportunity to enhance the existing transmission corridors without requiring the development of entirely new transmission routes. Our entry into these projects with our own manufactured HTLS conductors senses our presence in the conductor segment and offers additional opportunity in transmission infrastructure market. Further, we have also started booking small quantities for U.S. and other developed markets. We have also recently secured Greenfield GIS project in Jordan, which is 400 to 765 fuel transmission lines in India. Looking ahead, we believe the structural opportunity in India for our transmission and distribution sector remains strong. Rising electricity demand, renewable energy capacity additions, increasing electrification, and need to strengthen and modernize the national grid. has created a sustained requirement for transmission lines, substations, HVDC infrastructure, and associated power infrastructure. We believe that not merely a near-term opportunity, but multi-decadeally grown drivers are available in the power infrastructure industry. The scale of investment in MSR across the sector provides encouraging visibility for experienced EPC players like Transrail, with meaningful opportunities in the next five years up to 30-32. With the broader growth opportunity program, Green Energy Corridor, Phase 3, GEC 3, we expect to play an important role. The program and massages and outlay are approximately 1,86,000 crores, including 1,36,000 crores only for state-interstate transmission, and 50,000 crores for battery storage. Most of this is expected in TBCP model, and hence we expect our existing large clients will be well positioned for such projects, and hence the addressable market for us will improve over the years. As part of strategic diversification and leverage our core T&D expertise, we are evaluating opportunities and complementing our existing capabilities. In this context, the board has approved to acquire 49% stake in project SPV, which is a development of approximately 990 MW EC of solar projects in Maharashtra. This will allow us to leverage our scale, expertise, and power sector, generate long-term steady returns and cash flows while continuing to maintain our primary focus on our core EPC business. As we look ahead on our priorities, remain clearly defined, accelerate execution of a strong order book, maintain our order intake momentum, complete planned capex, manufacturing facilities, strengthen our product market, and consistently improve profitability and cash conversion. We believe Translate is entering an important phase of further growth. The power transmission and distribution sector is poised for multi-decadell investment cycle with strong industry visibility extending beyond 3032 and beyond this, we believe the structural opportunity will be a significant growth driver of Translate in the coming year. Our focus to Translate is the opportunity to sustainable growth, stronger financial performance and long-term creation of value for our stakeholders and shareholders. With this, I request our CFO, Mr. Deepak, to go through the financial numbers for quarterly. Thank you, M.J.

Sir. Good afternoon, everyone. I will take you through our financial performance for Q2 and H1 financial year 27. Revenue from operation for Q2 financial year 27 stood at 2056 crore, representing a year-on-year growth of 32%. EBITDA for the quarter was Rs. 238 crore, up by 28% year on year, translating into a margin of 11.6%. Profit before tax stood at 158 crore, up 26%, while profit after tax was 104 crore, representing growth of 12% year on year. For H1, financial year 27, revenue from operations stood at 3,792 crore, EBITDA was 441 crore, and EBITDA margin was 11.6%. Profit after tax stood at 212 crore. On the balance sheet, our priorities remain improving cash conversion, managing receivables and inventories, and deploying working capital efficiently. We have showcased improved receivable management with a reduction in trade receivable translating into higher cash and bank balances while maintaining working capital days at 82 days. Operating cash flow from operations during H1 stood at 435 crore compared with Rs. 29 crore during the corresponding period last year. Net debt stood at Rs. 143 crore. The companies were positioned to capitalize on future growth opportunities. Supported by strong acquisition capabilities, a healthy order pipeline, and expanded manufacturing capacity, our focus remains on ensuring that growth is profitable and sustainable, while maintaining margin discipline and strengthening cash flow generation. With that, we can open the floor for question and answer.

Thank you, Deepa. Thank you very much.

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 attached phone 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. Participants, you may press star and 1 to ask a question. I request to all the participants, kindly limit yourself to two questions per participant, and rejoin for a follow-up. First question is from Nanof Harshid from Robo Capital. Please go ahead.

Thank you for the opportunity, sir. Am I ordering?

Yes, very much. Yes, go ahead.

Yes, sir, thank you. So, sir, we have increased our capacity substantially, right? And also there are some ongoing KPIs happening for construction equipment. So, just wanted to understand that once all the capacities come live, what is the peak revenue that we can achieve?

So, you know, that's an interesting question. We are in EPC, so most of the production goes into our own projects in terms of requirement of towers and conductors, and we look at pacing the requirements based on the execution on the ground. Now, with the 200,000 capacity by end of the year, and currently it is at 1,000,000 tons for towers per annum, We believe that this is good for us to look at an order book of 16,000 odd crores when we will look at this by end of the year. And we will also have this backward integration which is already in place to support the execution of this project and project duration is normally 24 months to 30 months. So when we have looked at backward integration, it is to meet the peak order book and plans for the next three years.

Okay, and so this 20 to 25% growth, so this growth will continue for how many years?

So we are looking at a 20% growth for at least the next three years, and based on the current plans and the order book, and this can improve also depending on how we close the year, and the further guidance on this we can give you by, let's say, March or April or next year.

So, sir, this 20% growth takes us to, let's say, 12,000 crores of revenue in FY29. So, do we have the capacity and, you know, do we have the ability to achieve the 12,000 crores of top line?

Yes, not a problem at all.

Okay, sir. And the margins would be around 11-12%.

Thank you. Participants kindly limit to two questions per participant and rejoin for a follow up. Next question is from Lainov Repal from Swan Investments. Please go ahead.

Yeah, hi, thank you for the opportunity. Sir, we have recently won new order 770 crore for multiple This is a typical reconductoring project using HDLS conductor. If you can give more detail on this project, also in terms of the technology partner, who is a technology partner in technology type, and how do we see opportunity in this? And also, this would be the, again, EPC kind of opportunity or this would be purely a conductor kind of opportunity? If you can share your perspective on these, what do we see future in this? That would be the idea.

So, this is product and EPC both, product manufactured in a factory on carbon core with Epislon, and this is a French company who is supplying us carbon core. We are looking at not only supplying the product, but also looking at reconducting. We have jobs with power grid in West Bengal and Tamil Nadu. So, we have the technology partner, and a technology partner is also putting up a factory in India. So, this is good to go. Potential of this for the next 12 months will be more than 10,000-odd crores, and we have the early mover advantage.

Thank you and wish you all the best.

Thank you. Next question is from Nanofyash Kabra from Nirmal Bang. Please go ahead.

Hello?

We can hear you. Please go ahead.

Just wanted to ask firstly, continuing on the previous participants' question, just wanted, like, can you give me, like, because you've told about 20% revenue growth for the next three years, so what are the EBITDA margins we are looking at? Can you also give some color on that?

So we are talking about 11% plus EBITDA margin. The guidance given for this year, we are on track, as you see. And similar EBITDA margins are planned for the following years. So the quality of our order book is what gives us confidence that we will maintain 11% plus margins.

Got it, sir, got it. And sir, just wanted to ask regarding the revenue growth is 32%, EBITDA growth is also 28%, but if you look at the past growth in this quarter, year-on-year it is just 12%. The factors relating to it is depreciation has increased by 35%, and interest costs have also increased, and taxes have increased a lot. So just to color on all these three factors, like depreciation, I think because of the CAPEX which you are doing, it has increased. But on the interest and the taxes, because the tax rate has also gone up. So any color and reference to that, please?

So, I'll request Mr. Rajesh, our group CFO, to address this question. Principally, you already answered half of the answer. We can only add a little bit more.

So, on the interest component, since the whole of working capital funded limits, the interest component has marginally gone up on an absolute basis compared to our revenue. As we continue to grow, our interest costs will also marginally grow, but as a percentage, we see it coming down to revenue. On the taxes, it's a one-off case which we have provided in September, and that's about it. For the future, we see the tax rate coming back to what it normally is, around 25-26%. This was a one-off scenario for this quarter, and going forward, it will be normalized.

Got it, sir. On the pad margin, so we can expect around 6-7% going forward?

Yeah, the margin will definitely come back between 5.5% and 6% going forward.

Got it, sir. Got it. Thank you so much. All the best.

Thank you. Next question is from the line of Balamurali Krishna from Oman Investment Advisors. Please, go ahead.

Hi, good morning, sir. Congratulations, good setup members. So, why did you start the guidance of performance? This is one of the kind of things in this presentation. We were benchmarking yourself and also showing that how you performed against the guidance. That's a good sign. First question is regarding HPLS conductors. So, if the HPLS conductors are carrying more load and this kind of trend continues, then is there any chance to reduce the new lines tendering? Is this possible or this will also grow at the same phase like new lines?

So both are independent of each other. This is basically strengthening of the grid in different parts of the country, as in this case West Bengal and Tamil Nadu. And this will carry 30% more electricity through the HDLS conductor. So therefore it is grid strengthening without investing heavily into capex for new line. Whereas we have a lot of new opportunities through solar power generated transmission line requirements. And both will run independently. Of course, new line potential is much higher. We're talking about going up to 9 lakh watt cross by 3032. This is smaller and this is going to keep on coming. And for us, it's a good opportunity because we do make the conductor ourselves and we also do the EPC that is the reconductor.

Just a follow-up on this. So, when you did this, you were talking about the French supply, who is supplying this core. So, do you have any plans to make it all in-house, maybe in the coming future?

So, we, our partner, Episcelon from France, is putting up a manufacturing facility in South India, which will come into stream, maybe in the next six months or more. So therefore we don't have to put it in the house and we have a steady supply and a very good understanding with them.

And on margin pressure, is there any difference in normal?

These are quick jobs, and I would say they are better margin jobs.

So the second question is regarding this solar energy for effort. So what is the thought process behind this, and how we are going to fund this one? So how is the margin profile of this segment?

I request our group CFO and Chief Strategy Officer Rajesh Neelakantan to put some light on this.

So basically, as we have been focusing on... Businesses which are adjacent to our core T&D business. We are looking at offices which will help us become an integrated energy solution provider. So solar power generation was what we found the most natural fit where using our strengths in procurement, execution of large projects, we'll be able to add a lot of value and build our book as a long-term

Good morning, everyone. So the project

is about 3,900 crores, which is obviously funded substantially by debt, which has been already closed with a large financial institution. So there is an equity component. There is about 500 crores is what we have to put in. Next year or so, most of it will come from our internal cash accruals, which we will use, and there will be some out of debt.

So, the margins, I think, this solar generation would be around 70-80%. Is it understanding, right?

Yeah, yeah.

Broadly, yes. Thank you. Thanks a lot, Amalya.

Thank you for your questions.

Thank you. Participants, you can press star and one to ask the question. Next question is from Lanos Tahil Patani from Stokes Capital. Please go ahead.

Thanks for the opportunity. I wanted to understand over the next two or three years, how much of a business will be export-led and how much will be domestic? Is there a target in mind you're looking at? Because currently we're doing 60 to 30 years. So will that split remain the same or are you looking at more export-led growth?

So, we are looking at an opportunity which is 60-40, 60 domestic and 40 international. The India growth story is amazing, and so is the international. We will pick and choose our spots depending on the opportunity of the project, the margin profile, the country, the country funding agency. So, all those factors come in play. When we go international, we work only with multinational funding agencies. So, the quality of the job matters. So, at this stage, 60-40 is a good bet going forward in the next 2-3 years.

Okay. And my second question is on your entry into, like, you know, handling of solar EPC projects. So, I wanted to understand, because there are synergies, do you have the expertise or will you need to, like, you know, let's say hire more consultants or bring in such expertise or, you know, how are the synergies going to work around that?

So, I'll answer the first part. We are doing solar EPC anyway. We also do solar rooftops. So, we are in this segment, but now getting into solar generation-led opportunity, I had a request, and our group CEO has already addressed it, but he'll give you a snap gist of it.

So, we have got into this business as we find this business. We have been doing solar projects in the past and currently doing solar EPC projects also, and as we speak, we are building our teams currently, and today we are working with a partner, and together, on this project, we are building on, and later, going forward, we obviously will be building up a team to take up some more projects as and when it comes in.

Okay, and by when can we expect this, like, the numbers to come and flow into the P&L from this new initiative?

Partly, it will start flowing in from next year, so we are targeting about 400 or 400 megawatts approximately by March or so, March-April. So part of it will obviously flow in from the next year, and substantially, we expect to commission by March 28th the whole project.

All right. Thank you so much.

Thank you.

Thank you very much. The next question is from the land of Aditya Velekar from Fires AMC. Please go ahead.

Yeah, thank you.

So, my question is with respect to our top-line growth, you have said 20% for next couple of years. So, will our back means capacity which we have currently, will it suffice for that or we will need to invest more in terms of capacity expansion?

So, as I have already informed, we are building our capacity from 84,000 to 1,84,000. And this is further under, further expansion up to 2 lakh tons by end of this year. Similarly, same is for conductor from 24,000 km, we are going to 40,000 on kilometers. And this will go up to 49,500 by end of the year. So this is good to go because this will take care and as I had explained in the last communication. We are an EPC player who can stagger. Based on the need of the project, we will supply our towers and conductors. And this is sufficient for us for the next three years based on our 20-22% growth plan.

Understood. And, sir, there were some discussion regarding QIP in respect to raise some fund for BESS. So, any color or any thoughts on that?

So, we have yet not finalized the QIP content. It will take at least six odd months more. And our cash flows today are healthy. So, the timing of the QIP would depend on when we need funds and the opportunity to invest. So, right now, it's an enabling resolution from the board and we will wait and watch when to bring it.

Okay, got it, sir. Thank you. Thank you.

Thank you. Next question is from Nainaf, Arvind Sharma, individual investor. Please go ahead. Arvind, your audio is not clear. Can you speak through the handset, please?

How is it clear or not?

No, sir, it's still muffin.

Arvind, speak to clarity.

Arvind, sorry to interrupt you, but again, your audio is not clear. Can you speak through the handset, please?

Thank you very much.

Arvind, I'll request to come back. Next question is from the line of Akshay Jhavar, individual investor. Please go ahead.

Thank you for the opportunity. I wanted to know that the new order that we won in the last quarter, are they on a fixed price contract? Are they fixed price contracts? Are they cost plus contracts? What is the terms around those?

So, principally, our international jobs are with price variation. We had a mix of jobs. As you said, 60 is domestic, 40 is there. But for the domestic jobs, when we look at bidding, we form up the requirements of the commodity and we hedge immediately. So, as of now, we are fully hedged for the year, and there is no risk in terms of our... Change if there is in any commodity pricing, particularly for domestic

contract, whatever will be any price variation on account of fluctuations or materials, we have covered for that, right?

We have already covered for Conductor Immunium and also covered in terms of our cost management approach, and that is all inbuilt into our margin profile.

And just on the tax demand, one, is the final order, has that come in, and is there any other open ongoing tax litigation matter which is there, or has everything been addressed now?

Assessment is in process today as you speak. We have just filed our returns a couple of months back. The assessment is in progress and it will take its own due course and that's about it. The assessment is something which is in the normal course and that's something which will take up a bit when it comes.

Okay, so this 14.3 does not include any interest or penalty, right? Or has that also been factored in and paid?

It has been factored. So, this was a filing of a block return. So, there was no penalty as such. The tax has been paid as per the rates specified in the income tax tax. Okay. All right. Thank you.

Thank you.

Thank you. Participants, you may press star and one. To ask the question. Next question is from the line of Rohit Singh from Invest Analytics Advisory. Please go ahead.

Hello.

My question is on the industry side. Could you please share your perspective on the current industry scenario, particularly in terms of go-trends, ordering flows, and competitive industry?

Right. Sorry to interrupt. Can you repeat your question once again a bit louder, please?

My question is on the industry side. Could you please share your perspective on the current industry scenario? Particularly in terms of demand and ordering flows and competitive intensity.

So, if you see the industry is in a very good buoyant movement. We talked about 9,15,000 crores of opportunity till 3032. And we will address at least 50% of that opportunity in India. Internationally also, there is a huge opportunity. In terms of the growth drivers for international markets, particularly Africa, so we are in a good state of growth because the markets are growing. Competition intensity, yes, it is there. There are big players and smaller players are coming in, but when we talk about HVDC projects in transmission, people who have done this before, who have backward integration, who have tower test stations, Who have a full chain of backward support system to execute projects on time will be people who will thrive better than people who are not fully equipped. So competition happens everywhere, wherever there is a growth. And we have absolutely no problem in looking at the opportunity. We as a company look at how and when we should pick the project. We have a risk assessment system matrix. And we believe that we will pick and choose the job which will give us immediate opportunity to execute, better margin profile, good client, funding which is either domestic or international. International must be multilateral. And last but not the least is the ability to execute the project on time through the utility or through the consultants who support the utility to execute the job. So, principally, what we are saying is, we are in a zone of growth and Transail is well positioned for the next 5-7 years to grow well with the industry.

Thank you, sir. That's all for my sake.

Thank you. Participants, you may press star in one to ask the question. Next question is from land of Mahima, from Philip Capital. Please go ahead.

Hi, thanks for the opportunity. My first question is on the bidding pipeline. I understand that we have already bid for projects worth 18,000 crore. Can you show some light on how the bidding pipeline looks like from here on?

We have a good five months to go. We are looking at another 30,000 crores of bids to be done. Work is happening as we speak, and November itself is a good pipeline. So, we are looking at a 10 to 12% wind ratio, which is what we have been doing over the years. And we are fully confident that the order intake plan, what we are... Giving guidance for will be 10,000 plus crores is in the process of getting fructified. Already three and a half, so 4,000 crores is in the bag, and we believe that this is achievable, and which is something which gives us the future growth guidance for next year.

Got it. And what would be our L1 position currently?

L1, we don't have. All orders have come.

Okay, got it. Lastly, on the product side, we mentioned that we have booked some small quantities from U.S. and other developed markets. We had mentioned about some monopole supply in Australia also. So, can you please quantify the orders that we have received and how is the margin profile there?

So, these are seed marketing new country entry jobs. The margin profile is equivalent to what we are quoting today in terms of our guidance. And we are developing this market, be it US or Australia. And we have a sales team who is pursuing relationships and building these job opportunities. So this is a work in progress. And these jobs are small at this stage, but we hope to look at bigger market share going forward.

Okay, got it. Thank you for all my questions.

Thank you.

Thank you. Next question is from the line of Anurag from Indira Securities. Please, Gohan.

Hello, sir. Am I audible?

Yes, very much.

Okay, okay, sir. Congratulations on the good number, sir. My question is with regards to like we were doing around like 5,300 crores of revenue in around 2025, right? And since then, our capacity has doubled, but like you're guiding around 20 to 25% growth from here. So, like, what is the reason for the same?

See, we have put in the increased capacity a new plant looking at our growth plans in the next five years. When we got listed in the year 24 December, we are very clear that we have enough opportunity and autobooks. And the planning has happened since then in our three-year vision plan. So, the current capacities are good to go for the next 2-3 years, and if we feel that there is a need to further expand, we will do so, and that's not a problem, because we have the expansion capabilities, the engineering capabilities, and the execution capabilities.

Okay, sir, got it. And one more question in regards to this only, that how much is capital of our own capacity, like how much do we use, and how much do we sell outside?

So, today, 95% is internal use, 5% is what product marketing we are doing, and we want to improve this portfolio as the expansion of factories happens.

Okay, and sir, do we do any projects without this backward integration coming in?

No, not really. We look at our own products to be supplied for execution.

Okay, so, like, you are saying, like, we can generate around 20 to 25% more with this capacity.

Yeah, as I mentioned in the last person's query, we can stagger the execution for at least 24 to 30 months. When to supply towers and conducts to which project, we can plan that because that's the facility and the importance of backward integration. You're not dependent on anybody else to give you supplies. So within our own factories, we can control the supply chain.

Okay, okay. So, just one last question, please. Like, can you just tell me a little bit of the economics on the towers? Like, how much do we generate, like, per tower, like, per metric ton of tower, and or per kilometer of circuit provided?

No, that cannot be answered because it is part of an integrated EPC project. They are all, when we build, it is all done on a turnkey basis, and it is all together. We don't talk about towers and conductors individually.

Okay, sir, I got it. Thank you. Thank you.

Thank you. Participants, you may press star and one to ask the question. Next question is from Nanav Deepak Purswani from Swan Investments. Please go ahead.

Yeah. Sir, I just wanted to check it, continue on this reconductoring opportunity using the STLS conductor. Firstly, with the French players, do we have the exclusive IO for this is going to be, this is also available with the other players?

No, we are using some other manufacturer. Currently, we are with them in India, and if there is a further growth or opportunity, Episilon or our suppliers may choose to have maybe one or two more partners, which is absolutely fine. They are putting capacity expansion here, and we are a preferred customer, and we will be given preference.

Okay, and you also mentioned about the conductor, we have 49,000, we are looking to expand the capacity to 49,000-odd tons. Out of this, how much would be the HDLS component?

HDLS, you know, it depends on the job we get, and then it's need-based. So, we have supplied to Cameroon, we supplied internationally also HDLS, we are now doing it in India. So, the product mix can change from ACCR to AL-59 to HDLS. There is no fixed formula. If we have a job, we will make it.

Okay. So, the plant is fungible across all the products?

Yes.

Okay. And also, like you did mention about the build, I just wanted to check it out. Would it also offer some kind of export opportunities? Yes, very much.

With our partner who is a global player, a French player, wherever there is an opportunity to support us, they do that. We also bid internationally with HDLS conductors for 20 projects. So, there is an opportunity, and if there is an opportunity further in US, because they are also doing grid strengthening and looking at improving the grid structure, we may supply there also. These are all plans right now.

So, particularly for this particular, this segment of the business, what would be the kind of the margin or EBITDA part-time for this conductor?

So, this is aligned with our margin strategy as we go currently. This is something which we believe that is a margin enabler and cash flow enabler. So, we are happy that this product opportunity has come up for us and we won five jobs.

Okay, and this would also include the EPC installation along with the conductor?

Yes.

Production... And, sir, what will be the typical cost of per circuit kilometer installation of this STLS conductor using this technology?

I will not be able to answer that. It is the first few jobs we've taken. Maybe after 6-12 months, I can answer this question.

Thank you. Deepak, I would like us to come back for a follow-up question. Next question is from Man of Science Patani from Stokes Capital. Please go ahead.

Hi. It's a follow-up from me. So, sir, I wanted to understand you said that we'll be growing 20% over the next two, three years, right? But historically, also, we've mentioned that we kind of grow at 20%. But now with us pouring into solar power generation, shouldn't, like, our growth be more than that? Because we are having, like, a new avenue of growth that we are entering. So, I wanted to know your thoughts on that.

So, so, I think it's a very interesting and a good question. Right now, these... By entering into solar power generation, we have just started that process and the revenues will come in next year.

Okay, so from FI 28 onwards, we should be seeing that.

Yeah, this is long-term strategic investment.

All right. Thank you so much.

Thank you.

Thank you. Next question is from Nanav Rahul from HL Technology. Please go ahead.

Hi, sir. Can you throw some light on the pledging which you have done? Like, pledging of shares?

Pledging of shares. So, this was a small pledge done with a promoter for some borrowing visited. It's a normal 2-3% pledge only for some borrowing visited for a short-term purpose.

So, when do you plan to like re-buy those shares or remove the pledging?

It should take about 6-9 months.

Within the period we've just mentioned, it will happen.

And, sir, your plans on BES and data center, do you see any progress for anything materializing at this point of time?

So, we are building a team. We are now building engineering and costing estimation teams. We are bidding for some jobs in data center. BES is still a little bit far away. Because we have to look at the complete supply chain. So, work is in progress, and we are hopeful that by the end of this year, in the next financial year, we will see results from it.

Thank you. Rahul, I will request you to come back for a follow-up question. Next follow-up question is from man of Marla Maruli Krishna from Oman Investment Advisors. Please, go ahead.

Thank you, sir. Thanks for the opportunity. From the best-time data center part...

Malala, sorry to interrupt. Can you speak louder, please?

Yeah. So, question is regarding best-time data center part. So, data center you told next year things can be like. So, what kind of show visibility is there on top and front of you?

See, we are looking at best investment announced by the Government of India in GEC3. Around 50,000 crores in the next five years. We also see data center with predominantly private players to be more than 10 to 15,000 crores per annum. This is work in progress as we are expanding to understand the market potential, understanding by meeting clients. So we feel there is good enough market opportunity and we as a company plan to go slow, look at one or two jobs first. Strengthen our capabilities before we go full on.

So historically, we have around 10-15% pie in the opportunity. So, do you think that we can have a trend of trends here?

10-15%. We are talking about maintaining our core T&D capabilities. These are new businesses we are getting into, and I talked about the market potential of BES and data sets. This is potential, not our order intake plan.

Secondly, on product sales, as of now, I think 2-3% revenue coming from product sales, so in long term, do you have any plan to engage the sales to maybe 20-30% to reduce the exposure to our EPC side?

No, we are from current 2-5%, we intend to go to 7%, and then see how and what other products we can bring in. So as of now, product positioning, standalone products. It's going to be 5 to 7 percent. Thank you.

Lastly, I'm disabled. So, I think, the receivables for more than six months are 200, 300 range. So, do we see any stress or other? All those are retrieval.

Yeah, there's some increase in more than six months receivable, but we are focusing on the same, and it will be reduced in the ensuring quarter.

Okay, thank you all.

Thank you, Jay.

Thank you. Next question is from the line of Anurag from Indira Securities. Please go ahead. The line for the participant dropped. We move on to the next participant. Next question is from the line of Rahul from HL Technology. Please go ahead.

Like, you answered my previous question. One last question. Like, as a vision, where do you see yourself as market cap in the next six years?

Market cap in the next six years. So fast. I think both my finance leaders are scratching their head how to predict this, so I think one of them can answer.

See, market cash is something which is not something which we can predict. What we can predict is what we'll deliver as a performance and continue to focus on our guidance and our focus. Market cash is something which the market will determine or the industry will determine.

Please, can you guide where would be your EPS in six years, like around 55, 60, or?

EPS in six years, I think these are two forward questions. I mean, you see our results and the trajectory we are planning. You will see all the numbers in line with what we are saying. And if you've seen our previous guidance, we've maintained that for the last two years. We intend to maintain the same for this year. So, use that as a surrogate to predict the next three years.

All right, sir.

Thank you.

Thank you very much. Is there no further questions? I would now like to hand the conference to the management for closing comments.

So I thank everybody on the call for giving us this opportunity to explain our results of Q2 and the H2 thoughts on how we plan to go forward and our guidance. Our investor presentation also has all the details. And all I can say is we've brought up on our requirements for H1, very much there, and we have had a very good Q2. So, it's also something which is a very opportune time that this is, you know, Diwali, happy Diwali to all of you and our investors. The company is doing well and strong. So, wish you bountiful of sweets, and thank you for joining the call.

Thank you very much. On behalf of Nuama and Social Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you.