Thank you, Huda. Good morning, everyone.

On behalf of Elara Securities, we welcome you all for the Q1 FY27 conference call of Schneider Electric Infrastructure Limited. I take this opportunity to welcome the management of Schneider Electric Infrastructure represented by Mr.

Udai Singh, Managing Director and CEO, Mr. Omkar Prasad, Chief Financial Officer, and Mr.

Mohit Agarwal, Head of Investor Relations. We will begin the call with a brief overview by management, followed by a Q&A session.

I'll now hand over the call to Mr. Singh for his opening remarks.

Over to you, sir. The

Thank you. Are you able to hear me?

Thank you, Harshit, and good morning to all who have joined. I just wanted to take you to the presentation which we had shared last week, and just wanted to take you along a few slides which we had shared.

I would take you to page number 2, wherein we are so proud to share with you that we have been ranked as number 1 as the most sustainable companies in the world third year in a row. This is something which actually we are extremely proud of, and something which we very very truly relate to being sustainable company.

Now, I would like to take you through the next slide, which enumerates our vision and the mission. Our vision, as stays as that we will lead the new digitalized energy world, offering our customers and partners the most innovative connected products and solutions, which will be ready for the power distribution's elevated expectations.

We do this by our balanced business models, superior quality and efficient supply chains, which will keep our growth and profitability resilient and sustainable. What you would also notice at this point in time is that we have slightly modified our vision now, and we say that we are your energy technology partner through which we electrify, automate, and digitalize every industry, business, and home, driving efficiency and sustainability for all.

Taking you to the next slide, which is page 4 of your presentation, where we are seeing as to how the company has a macroeconomic outlook. What we see is that India 2030 is inflicting on the new infrastructure cycle, where the macro outlook is strong.

If you look at, there are three basic pillars which we are trying to capture for you. One is a GDP forecast itself, which is expected to be anywhere between 6.5% to 7% for next 4 years.

This is also being driven by two fundamental levers, which is the per capita GDP, which will grow, if not less, at least 1.5 times by 2030 by taking it to about close to 4 lakhs is something which we expect the GDP to be at per capita level in 2030. Also a very positive for the company, which is the per capita electricity consumption, which is going to be typically anywhere between 1,800 kWh to 2,000 kWh by 2030.

This itself, just to set a perspective, this in 2014 was about 1,000 or less than 1,000 kWh. At the same time, there are certain headwinds which all of us are facing and our company is also facing, is the devaluation of rupee, which has gone down, and also is about 8% is where the rupee has depreciated since the time we started this year.

Also the commodity prices, if you notice, has actually also been going up, copper, aluminum, steel, and the labor which we use actually has been going up, and we are trying to see as to how do we mitigate this. We also, at the same breath, would like to speak about, while there is a near-term volatility which all of us are seeing, India long-term investment remains intact, which are primarily driven by four basic fundamental levers.

One is electrification, and when I say so, I am talking about these levers which are pertinent and relevant to the company. The basic electrification need where we see that the non-fossil fuel is going from, say, 300 to 500, that's a vision for the country, and the nation is going great here.

What I would also like to call about typically, one typical example is energy storage systems, where today it is about 13 GWh, which is expected to be 200-plus by 2030, is the number which we see. Another topic which I think all of us are very very reading it every day is the data center and the AI and the digitalization which the nation is actually embarking on.

Data center capacities, as is going to grow up from 1.6 to about 8 GW by 2030, if not more. The e-com users, which nation is being very very vibrant about with the young population which we have, is going to be about 450 million by 2030.

The digital economy itself would contribute typically about 20%, as we see it, by 2030. Now, these are the ones which will propel more and more data centers being put up, and I am sure you must be reading many announcements which are coming in the news in recent times.

These are all supporting and getting driven by this wave which we see here. Another element is the urbanization, wherein I'm talking about just two things on the slide which you have, is the EV penetration, which is expected to be about 30%, and we are today at about 8-ish, but if you read in the papers, you read the auto story, you'll find that this is something which is going to go up, and this will bring in a lot of things which has to be made for the nation by us in terms of setting up the EV infrastructure to support this EV momentum.

The second is the Vande Bharat trains. Now, why I speak about it?

Because today we have about 160 trains which are plying in the nation, where government has actually plans of making it about 800. This becomes important for us because we power these trains by our circuit breakers, and that's what we make in Calcutta plant.

Another, and the last element, being is the Make in India drive, which you heard the honorable Prime Minister yesterday, is the focus which has also been coming on the Make in India initiative, and that's the reason why a lot of people will start manufacturing in India itself, which will open up capex requirements, and where the company can perhaps do well in leveraging those conditions which are going to be there. We are trying to see as to how all of us put together can make many things in India for not only in India, for outside and exports, and the goods export expected is supposed to be about $1 trillion by 2030.

Now, there are various schemes which I'm sure you are aware, a few we have written down here, which is supporting all these four levers which I spoke about, the schemes like the RDSS scheme, the Green Energy Corridors, the new energy policy, the VGF schemes for BESS, the interstate transmission waivers, the DPDP Act, the national data center policy, which came out about 6 months ago, which you must have read, the IndiaAI Mission, the AI conclave which we had in Delhi, Yashobhoomi, in April, the railway capex, the high-speed rail, the FAME schemes, the e-Drive, and a lot on PLI schemes, which are enabling this, especially the ISM, which is India Semiconductor Mission, and other rare earth corridors which the country has been able to establish. In nutshell, what does it mean?

It means four growth engines, which are driving demand for power infra and for us, and which means that more power, which requires smarter grids for better reliability, and that's also another area where we will be able to position ourselves positively. Now, while we do this, what we are trying to do in the company itself is trying to finally leverage three strategic pillars for growth.

One of them being technology leadership, which you must have read in the slide before, where I spoke about the new mission statement, where we want to be for our customers a technology leader and partner. How do we differentiate ourselves in eyes of customer?

That's a customer differentiation where customer stays at the core, and our value add would be only how do we prove our services and solutions differently, as perceived by customer. Of course, staying cost competitive, so that we can not only bring in those technological differentiation, but at the right cost so that we can make the company more profitable.

I would request you to go to page number 6, where we are trying to share with you as to a few of the wins in the quarter which went by, especially on starting off with the high-growth segments, which are semiconductors and data centers. If you look at, there are two wins which we have captured in this slide, where the left one is a win in the semiconductor area in one of the states in Central India, where we have supplied transformers, which are fully enabled with digital solutions, and this is the largest front-end fab order which we have received from a customer which is into this area.

We speak about data centers. Data center, again, if you look at the right slide, is the medium voltage panel, transformer, and automation devices and panels which we have supplied.

This has come in from a data center customer where he preferred us being we as a partner who are able to technologically differentiate what we are going to provide to them. At the same time, I would like you to go to next page, which is page 7, where we are trying to retain as to what strategically is good for the company.

If you look at, we have actually put on three basic areas where we have worked. First being renewables, where we have supplied transformers in a solar segment, and this stays different because of the volume and the intricacy of the transformer which we have supplied.

The center one is a cement plant put up by one private entity here in India, wherein we have supplied, and this is one of those first ones which are in their one of the prestigious slurry pipeline project where we are doing it. The third is essentially in an airport in South India, where we have supplied this SF6-free RMU pilot, which is an outdoor, first of its kind, being done in the airport in India.

If I take you on the page 8, which specifically speaks about our technological nuances, is the digital wins, where we're talking about two segments, one of being energy and chemicals on the left, and on the right being utilities. In energy and chemicals, we have supplied the integrated energy management system, which is very critical for strategically bundling our digital solutions to enhance reliability and the asset performance.

When I say asset performance, this is one of those differences which really customers do consider us favorably in terms of bringing the end-to-end life cycle of the product to the customer. On the right, the smart grid and transformer monitoring solutions.

This is something which we have done as one of the attachments, if I may say so, which has gone in something which we had supplied earlier on, where customer came back to us, asking us for the digital enhancement which the product might have for better visibility and better preventive maintenance and predictive maintenance. This is one of the successes which we would like to share with you, and we're very proud of.

I will now go on to page number 10, which is we speak about our company's ESG commitments, and you see six tiles here. The top three is on CO2 emissions, which our four manufacturing sites have.

We are at 100%. We are at 100% in electricity sourced from renewables for plant, including onsite solar and the I-REC papers which we have bought.

We are super safe: zero workplace safety, zero recordable incidents in all the sites. The gender diversity, which we have been working on, is close to 20% of the workmen which actually comprises our women colleagues, we are reaching.

I'm very proud of actually sharing the fourth tile, which is on skill development. We have actually trained close to about 1,900 skill youths with the skills in state of Gujarat with our 16 skill development centers which we have made.

At the same time, we are also talking about rendering and supporting people in areas, and we have established anganwadis and PHCs, health centers, public health centers, where we have done close to about 2,20,000 beneficiaries is where we have been able to reach and help and support them through this community center electrification programs. The last tile, before I hand over my financial performance to my friend, colleague, Omkar, is the CRISIL rating, where we have been awarded as a strong-rated organization with a score of 60-plus as 63 out of 100 just about 3 months ago in 2025 for the 2025.

I now would like and request Omkar to take you through the financial performance. Over to you, Omkar.

Thank you. Thank you, Udai.

Good morning, everyone. Thank you for joining this call.

I will begin with our quarterly performance and the key factors behind the results. I will start with a synopsis of the the key highlights.

I will start with the order. The order is what you see that here the number is 915.

The good part here, the 915 is the highest ever quarter been booked order as in in any of the quarter. While you see the growth year year-to-year is 0.5%, but if you look at sequential quarter, the growth is in double digits.

The sales is a soft start, as we say. We started, from Y-o-Y is around close to 5% growth.

If you look at again sequential quarter, it's in double digits. This is, if you look at historically in our company, the linearity the Q1 is average of in the same range that we do almost, the soft start in the Q1.

Very good news that we still have very strong backlog, which is growth is 30 close to 33%, and around 2,100 crore-plus backlog we are going in entering into the Q2, which is a good thing. EBITDA, I will give you the more clarity.

It's lower than, last year, the number is 32 crore. I will give you a little more clarity in the next slide.

The profitability and the PAT, no exceptions. I will move to the slide number 13.

The sales we talk about, it's a 5% more moderate growth at the Q1, and we see in the historically linearity that, yes, it's the Q1 always a soft start happen after the financial year close. Other income, no surprises, is a very linear and nothing to specifically call out.

When I come to the gross margin, and if you remember we discussed this in our Q4 earning calls, and this is the external factor where we have a Southeast Asia crisis, commodity inflations. This is impacting our the gross margin, and largely because that these order the orders which we executed in Q1 is largely coming from last year because the turnaround time of this order, it takes close to average of 6 months.

Hello? Hello?

Am I audible?

Can I continue?

Thank you. Gross margin, we see that the little bit dip, and it is, as we said in the Q4 earning call, that it's continued, the external impact continued.

We are taking a lot of internal actions. Udai sir also talked about we are taking more on the cost consciousness and competitiveness and that actions have been taken up by the company.

We'll see that how we can mitigate those things. However, still I want to just highlight that these are the certain things which are very external factor, specifically on the commodity market.

When you look at copper and transformer oil, which is something we buy and then the pricing are not in our control. That is on the gross margin.

When I talk about the fixed cost, employee cost, and other expenses, while you see the percentage increase is high, but it's a normal in Q1 where we do normal salary increment and all cost inflations happen in the Q1. Just because the sales growth, we are at soft and moderate at 5%, there is something in the Q1 has negative operating leverage, but for sure that is not going to be there, and you must have saw in the last year that it's get evened out throughout the year.

It's just because of linearity of the sales, you have a higher expenses into the employee cost and other expenses. In other expenses, all what I also see, there's one factor of FX because FX also contributed to certain more increase into the other expenses, because certain recharges and the imports what we do, which is in USD, which has actually INR value has depreciated, and that is also impact coming here in the other expense.

Depreciation is in line as you all approved as a capex. Now we started having capitalization in Calcutta plant.

The plant started operationalizing from the early this year, and most probably the growth from that plant is over the period it will anyway get accelerated. Finance cost, no change.

We have not taken any exceptional loan, but this is just a difference in accounting. When you look at the finance cost with sequential quarter, no change, but there was some accounting change in the last year Q1.

There was a gain coming because of modification of accounting fair value, and there was a gain sitting in the last year quarter, but in current year it's normalized interest cost. There is no exceptional loan been called out here, just want to highlight that this increase is just because of the non-cash accounting adjustment.

We have a normal tax expenses, and then we have a total income, which is 1.9%, which is in the Q1 because of the impact on the GM, and also we have a negative operating leverage, which will try to catch up in the subsequent quarter. Now I just give it back to operator just to your questions to clarify further.

Thank you.

Yes, please.

Hello, sir. Good morning.

My question is regarding the transmission capex. We know that the solar and the renewable share in the transmission or generation has gone up to more than 40%, and there are challenges in terms of transmission, especially on the evacuation side.

What all products and services, especially under our electrox platforms, do we have? Can you just throw some more light in detail on that?

Thanks, Dhruv. Good morning.

The products which we have, as are transformers. We have equipment which handle and distributes power up to 33 kV range.

Then we have the control and relay panel, which also becomes an essential part of any power system, I would say, which we could go to any class of voltage. Now, especially what we do not have is transmission line, conductors.

We do not have transformers which we call as a high-voltage transformer or extra-high-voltage transformers, which are 400 kV and above. The transmission sector, if I may say so, is not the real work for us in the transmission space.

When we go in and speak with IPPs who are actually making this solar farms, we do a lot there. What we do essentially is the 33 kV air-insulated and gas-insulated switchgear, which makes a substation.

We do about the energy storage system, which is going to get mandated where people have to have a 24x7 reliable supply, and energy storage systems which are battery-based. We also have a set of softwares which actually give you visuals and also enables you to control the power plant.

These are the things which the company does. What the company do not do is the evacuating high-voltage transformers, which is not in our product range.

Thank you, sir. Thank you for that clarification.

Hi. Thanks.

Would it be fair to assume that the miss is largely driven by lack of operating leverage if I compare Q-on-Q rather than Y-o-Y? The gross margins are largely flat if I compared Q-on-Q, and growth in other expenses is almost 20% Y-o-Y.

Is that mostly driven by FX or any other parts over there? That's the first one.

It's just... Thank you, Sameer.

This is largely because of operating, because our expenses, all the GSR, what we call this inflation cost, salary, and other cost and charges increases from 1st April. Largely because of operating, it has started from Q1, and mostly it will get evened out throughout the year.

The operating expenses, that's largely driven by FX or any other thing here?

No, in operating cost, in other expenses, whatever the cost we deal with the out of the country, we have a dent of the FX for sure, but also there's a incremental inflation and regular increase, which is approx 8% to 10%, that is also there. It's a mix of both in other expenses.

Okay. Now, if I just Now half of the quarter is over for Q2.

What are you seeing this quarter so far in this quarter?

If you look at historically, when you look at the quarter-to-quarter growth, okay, the Q1 always been soft start, okay? The Q2 will be a forward-looking statements, we are not giving you the right thing, but the idea is here that historically we always do better than Q1.

Okay. Okay.

I know you're not giving any future statements, but given the backlog growth, what ballpark revenue you have in mind, like any range or something we can expect this year?

I can take that question, Omkar. Thank you for raising this.

Now, the number which you see in this Q1 historically, that's been the case if you compare the other Q1s as well as in terms of whatever we do typically for the full year. Now, what we have done is we also had some headwinds which impacted this quarter.

What I would like to assure you, without giving any forward-looking numbers, is all the actions which are necessary and required for retaining and really doing well for the fiscal, we have already initiated. What we see is the underlying demand environment and opportunity pipe is healthy for us.

The pricing actions in the market has been initiated. It will take some time to really fructify and have an impact.

What I can see is that we are seeing the forward-looking three quarters, including the one half of which has gone by, is good for us.

Thank you for that. Just a last one from my side.

If you can comment by end markets, what is the exposure we have in data centers? I think last time you had highlighted that 10% to 12% comes from data centers.

I think backlog is again around the same region, power and grid around 40%. If you can comment by end markets, if possible, that would be great.

What I can state here at this point is more than 1/5 of what is coming is from this new emerging segments is what we hold in our order backlog. That's what we are trying to do as to how do we really manage this mix and try to increase selectively and strategically this mix of orders coming in from the emerging segments, while staying our focus on the core, which stays.

Thank you. That emerging would be data centers, semi, solar?

Emerging would be at this point in time would be data centers, would be semiconductors, because India is in a very nascent path in terms of semiconductor, the companies who are investing huge money supported by government's PLI. We are engaging with them pretty fruitfully.

Those would be the emerging segments. While solar stays as is, solar we have been listing for 5, 6 years.

We are trying to see it is an emerging, but it is already emerged a few years ago. We are trying to see as to how do we really make inroads and stay afloat there, and then bring in the really new emerging segments which we see today for the country, which are especially semiconductors and data centers.

One more if I can squeeze in. In metals and mining, we see many companies are putting up capex, and the capex growth rate for FY27 looks pretty high for those companies, which are basically your customers.

Are you seeing traction on that as well in metals?

Yes. Yes, we are seeing a traction.

As I said, opportunities which are in front of us, that pipeline is healthy and which has got a good mix of metals and mining, MMM segment, as we call it.

Thank you. Thanks a lot.

I'll get back in the queue.

Yeah. Thank you so much for the opportunity.

You just mentioned in your opening remarks that FX contributed to the growth in the other expenses. If I have to look at Schneider as a whole, say, on a 12-month basis, how much is imports as part of our COGS?

Thanks, Vinod. This will be in the range of 10% to 15%, not more than that.

There is a natural hedge against that in terms of exports? Exports should be a similar number?

Yes, yes. When we talk about the FX currency, yeah, it's get naturally hedged because we do our export as well in the same range.

Okay. Thanks.

The second question I had is in your press release you mentioned that while we understand the commodity headwind and the impact on margins, you also mentioned something about legacy orders. Now, Schneider, as I understand, is a company with a book-to-bill of 0.5, 0.6.

Effectively what you're executing today would be at best orders booked maybe 1 or 1.5 years back when pricing was pretty good. Why would these legacy orders impact margins in that sense?

Can you clarify on that legacy orders, please?

Okay. When we said legacy orders, means the order which booked before December last year.

This,

all contracts has a price which we offer to the customer is kind of the firm price, okay? Because execution period was somewhere close to 6 months.

When we have a customer firm price and then price of the raw material like copper, oil, and all the other costs has increased, we unable to go back to customer and ask for the revisions, okay? That's why we're talking about that this is impacting.

While some of the contract which we have a large execution period, there we always embed the price variation clause with the customer. That's what we are trying to say that wherever we can't contractually go back to the customer to revise the price or seek for the price revisions, and that's impacting our GM.

If I divide your order inflows, pre-December it would be fixed-price contracts and post-December you would have price variation clauses, and that will somewhere show up on execution going forward. Is that a right way to look at it?

Yes and no, because it's internal policy we said that we've taken a corrective actions. We are started putting mandatorily as a price variation clause into the all the contract.

Wherever we have a tender where the price variation itself it's not one of the ask, or we can't bid if condition is not there, specifically in different utilities. We can't go and have deviation in their tenders.

There again what we are giving is a price again with a certain validity, okay? I will say still we have a risk there if there's a delay in execution of the projects of the customer, we may have impact in the GM again.

While we've taken an action, we can't enforce the price variation in all the government tender backed by EPC and others. We have a challenge there.

Understood.

These legacy orders typically would be distribution orders or discom orders?

It's all mix, largely I would say more on power and grid segments, yes.

Okay. Finally on the discom capex, what kind of a capex run rate you have internally for this year in terms of discom capex?

You're talking about the discom capex, our capex for the discom, is it?

No, not your capex, but basically the TAM that would be available in the distribution capex segment. Okay.

Yeah.

Udai, can you... I can take this question.

Thank you, Vinod-ji. See, I am sure you would have seen the capex which the company has embarked on.

In last 3 years, if I may say so, we have actually taken on a capex of roughly about 500 crores in our three plants which we have. The basic idea is how do we enhance our capacities, number one.

Number two, how can we cut on the import for which we do from other Schneider factories outside of India. To answer your question, the items which we make and the products which we manufacture are not exactly for a specific segment.

They serve a specific segment. For example, power and grid, which you have asked, in a certain way.

For example, secondary distribution equipment is mainly for power and grid, and we have been trying to see as to how do we bring up those capacities which can cater to power and grid, especially in the secondary distribution, and also in the transformer range if you have, which also particularly in large amount goes in power distribution. Now, we are in sync with the capex which government has been planning, and especially RDSS, 300,000 crores which have been put.

We're trying to see as to how do we leverage this by these items which we produce ourselves in our factories. Now, at the same time, I think you very correctly asked because your question was how many orders were booked before December and what exposure do we have.

We are a bit selective in terms of engaging ourselves in those strategic accounts wherein the site is clearly visible, the project cycle is known, and there are lesser ambiguity in terms of execution ease of the contract. If the TAM is, say, 100, we may decide to engage in only, say, number which is less than 100, depending on this situations and the lenses which we apply on any available TAM.

Difficult to answer, but we are a bit choosy and selective, depending on which all contracts we enter into.

Sure. What is that TAM likely for FY27?

How much do you expect distribution companies to spend this year?

Sir, distribution companies, if they spend 100, doesn't mean that 100 is open for us. If someone who's actually uplifting the underground substation, underground cabling, really we don't get into that contract.

Okay. Okay.

Because

the RDSS scheme, it is primarily aimed at reduction of AT&C and losses, that has been the primary objective,

and

which is going to get fulfilled by basically two fundamental actions. One action is to strengthen the power distribution infrastructure, which means that either replacement or putting up new devices and products and/or going in with more structured cabling of distribution network.

That's one part. Second part is how do we really digitalize the distribution infrastructure.

That's the second part. The first part, we supply.

We don't undertake something which is underground cabling. We supply our equipment, which are technologically differentiated.

In the second part, we get into where there's a grid modernization, if in a very layman terms I would say. When someone is trying to modernize a grid or distribution architecture, that is where we step in and we give our solutions.

Now, for example, if the TAM is 100, the 100 may perhaps pertain to any number which is, say, 10, 15, 20, 25, depending on the nature of the job with the state entities or the circle entities. It is very difficult to actually speak about a number, but we are there where we should be there strategically.

Sure. Just continuing on that thought, sir, I think Schneider...

Okay.

Hi. Am I audible?

Jaineel-ji, you

Great. Thank you for the opportunity.

My first question is that last quarter we had said that the order growth was tepid because of conscious decisions made by the management due to extreme volatility in commodities. This quarter we have posted a healthy order growth.

I just wanted to understand how much of the order growth would be fresh for this quarter and how much would be a spillover from the previous one?

See, this year this quarter we have done the highest order intake at 915. With a large prior of the same quarter, if you look at quarter-over-quarter.

Now, it is we are not tracking. We will not be able to see what should have been decided by 31st March spilled over to April.

That's a typical thing which always happen. There there's a cutover which where, the the order or the contracts moves into next quarter.

That really is not impacted, because that's that's something which which is delivered out in each quarter. It is not that there's a great influence of time phasing in orders which happen.

Sometimes it is 15%, 20%, sometimes it is lesser. It is very hard to answer you that question.

Understood. My next question is that would you be able to quantify the magnitude of price increases we have taken to mitigate the commodity inflation?

We have done very aptly whatever we had to do, sir, so that we are mitigating the impact of raw material intake. It depends on item to item.

The impacts of raw material is different because the composition and the constituent of the product and the commodities are different. What we have done as a practice is trying to see as to how do we recover those inflations which we have seen in the product cost in various products.

Difficult to quantify, but we are trying to see how best it can be mitigated.

All right. My last question would be that how much of our current backlog would be guarded by price variation clauses?

In the future, would we prefer taking orders where we get price variation clauses or would it be decisions on a case-to-case basis?

I'll take this question. Yeah.

Historically, I think we given this heads-up that on price variation clause in the contract, it's in the range of 20% to 25%, not more than that. Which are large execution cycles project, which is more than 6 months to 1 year, more than 1 year.

Second, I think when we do tendering, the costing sheets are always refresh on the current costings, okay? Jaineel, when you say price revision, we do have the transactional.

Most of the projects and equipment, we do costing on case basis on every tender, and accordingly the pricing are get revised now every month. When we do the costing, we consider always latest price.

All right. Okay.

That's it from my side. Thank you so much, and all the best.

Thank you so much, and very good morning, sir. Continuing on the impact on the regarding the material cost, would like to know is there a change in your revenue mix between systems and transactional products and services, which could also have impacted your current quarter as well as maybe the similarly last quarter also we had seen a impact?

That is the first question. Yeah.

Yeah. Not big mix change, but the one change what is happening that emerging segments is coming with the the higher scope, including installation and commissioning.

Mere supply, we are also getting to the larger, the project execution cycle where the mix is changing in terms of not supply, it's also coming with a more longer gestation and execution period, including installation and commissioning. Services, transactional mix, I think we are maintaining with the similar, the linear growth, the way we expect.

Nothing, not much change in that.

Would it be possible to just give us a mix, because ideally a couple of years back we were expecting our transactional products and services contribution doing big, and so somehow we don't have those data points. Maybe if you can give us where does it stand today, and within the order book also?

We take your question. I think we can try to give you from next quarter, I think, some clarity on this.

Okay. Also when we talk about emerging segments, and maybe some of this also I would relate this that digitization has been improving under our EcoStruxure platform.

Is it that a lot of this new orders or the systems orders what we would be getting would have a higher import content and even GIS, I understand that we don't manufacture, it's not localized here, and then so some of these products like GIS where there is probably higher imports, so that would also have impacted your margins?

I think import content, as mentioned I think before, we do have import content, and because of forex, it has impacted. Even the cost of the imported component cost also has increased, because it's not only in India, everywhere cost and commodity has impacted.

What I'm buying it, last year, which is now actual cost also increased, and the cost of import, which is FX, also has INR depreciated. Both has impacted.

Appreciate that, sir. Where I'm coming from is that has the import content, the raw material or the finished products or has that content increased in your overall basket?

Not really. In fact, Udai sir can talk about more I for I, where we are focusing more on India for India and more indigenous inputs increase, but we are not increasing import dependency.

Okay. Then on exports, sir, what would be our export revenue contribution now?

Also, I would like to probably put it in the context where we have put up new facility and we were looking to probably also make it as a export-focused unit. Maybe if you can just give us a perspective what is the current export revenue of the total revenues and how do we see it going forward, because for a lot many MNCs operating in power equipment sector, we have seen that exports have now reached 25%, 30% on persistent basis, both on the revenue contribution side and overall order book.

Would appreciate if you can give your thoughts on export segment. Sir,

today our export revenue is in the range of 10% to 12%, okay, in the revenue. That the capex we invested in Calcutta largely will cater the export market, which is just starting, okay?

We are still at more on ramp-up stage. It will take some time to reach and accelerate the export growth.

Okay. Would you like to share any medium-term targets as to where we want to take this 10%, 12% to, and with this new facility with large capex what we have done, how should we look at it over a period?

Because that would provide a lot of natural hedge to us for going forward.

Yes, sir. I think we'll not able to give you the number, and percentage will also vary depending on my overall growth, okay?

It's unfair to estimate in terms of percentage today. I can assure you that in terms of the value, absolute value, it is there in the strategy when we infuse the capex in the Calcutta plant.

It will increase for sure. In terms of mix, because you are also growing in emerging segment and other words, so that is difficult to tell you at this stage.

Okay. Last question on Vande Bharat, would it be possible...

Okay. Thank you.

Good morning, Udai sir and Omkar. My query is with respect to the expansion that we have announced previously.

Is everything means as per plan or is there any change in the plans with respect to the target completion timeline?

Hang on a second. Everything is well on track.

I can assure you that the latest discussion what we did with the board also, we updated status, it's going on track.

We should have additional capacity available in the second half of this financial year with respect to the expansion?

Yes. Aditya, morning, yes, it will be there.

We have multiple programs, I'm sure you have seen them. Yes, the programs are in our medium voltage factory in Baroda and transformer factory in Baroda, and the new plant which we are making in Calcutta.

They are multiple capsules which we have actually embarked on in terms of capex infusion, and they have a staggered completion timelines and a ramp-up plan. What Mr.

Omkar was saying, that all those programs are being tracked by the management and they are well on track as we see today, and we don't see any hiccups coming on the way of their completion. The answer to your question is yes.

Since it is going as per plan, there are many things which are going to happen in calendar year '27, there are a few which is going to get over by '28, and thereafter a ramp-up plan. It is all on track.

My second question pertains to the sticky inflation that we are watching or we are seeing with respect to the commodity prices. What is our plan to deal with it?

I know we have taken some price hikes of late. Why weren't these price hikes taken maybe a quarter back or something like that, or taken when the prices were going up?

As compared to many of our competitors, our margins are a bit subdued over last 2, 3 quarters. Why have we fallen back with respect to taking price hikes with respect to our competitors, maybe?

Aditya, to answer you, we have not delayed the price hike action. We have initiated the price hike action right the time when you started witnessing it.

That's the reason why I would not like to comment upon how the competition is doing and what they have been doing. From our side, we can assure you that since the time and we are pretty much advanced with our tools in the factory to really engage and quantify the cost increases which are being seen and are impacting our product manufacturing.

We have been pretty much on time in terms of quantifying it and communicating it in especially those standard products which we sell, which are governed by a price list. We have been able to draw and share with the marketplace on the right time.

We haven't delayed this action if I may answer you, number one. Number two is the fall in this quarter margin, as what Omkar has said, this is nearly more on the operating leverage, and the RMI impact which has happened, which is I would say that it is more on this quarter.

We have plans in place to overcome this, because we also anticipate, like you, that this condition and the tailwinds which we had will get muted and will get ironed out in coming times.

Fair enough. Thank you, sir.

Thank you for the opportunity.

Yeah. Thank you for the opportunity again.

I think since Udai talked and did on digitalization in state discoms. I think Schneider is one of few companies which is present across the entire chain, from the hardware to the automation to the software.

Are you seeing tenders coming in that fashion or are tenders getting broken down into the substations separately, the automation tenders separately? Are discoms now giving integrated packages as well?

Are you seeing that at the ground level?

It's a mix, sir. It's a mix which we witness.

There are two ways in which we deal with. If it is something where it's just a pure digitalization package, upliftment and upgradation of a facility, we undertake ourselves.

If it is anything wherein we do not really add any value in terms of, as I was mentioning sometime before, where, it's more of, making a new substation and doing a civil work and then also putting a upgraded digital infrastructure there, we do not undertake it directly at times, and we, is normally quoted by large EPC houses of the country who actually

have

are good in taking civil infrastructure, where we support them in terms of the solutions and systems which we have around grid modernization. That's how we do it.

There's there is no one one one way to actually address this upcoming need of India. We really see as to how the content is, and different states, as you have rightly put it, have different formats in which they try to get their requirement, obviously because the reasons and the situation in which they are are different.

We decide, depending on the quantum of work, where we can really add some value to the partner or directly to take a call depending on when the tender is sighted, and we we start engaging with the tender.

Sure. Thank you so much for that reply.

Hi. Thanks again.

If I understand correctly, your tilt is more towards private utilities. Obviously you have some business on public as well.

If I talk about particularly one large private customer who is putting up large capex in Mumbai, are you seeing any more inquiries in the pipeline? That's where more visibility on power and grid side?

We do have, because we see this, the utility which you're talking about, and especially on all the private players, well, not exactly private, has got some government of India infusion as well. We are witnessing this flow of inquiries, and that's the reason I said that we do see a good pipeline in front of us, and that's the reason why I am reasonably confident that we'll deliver what we plan to do for the fiscal year.

That is volume growth and plus price increase as well? Or it's just driven by pricing or pricing plus volume?

We should expect both growth on both the fronts, right?

You're right.

Thanks. One more question if I have.

Comparing business of...

Thanks, Huda. We would like to thank the Schneider Electric management team for giving us the opportunity to host this call.

We would also like to thank all investors and analysts for joining this call. Any closing remarks, Schneider team, that you want to share with investors?

Thank you, Harshit, and thank you all who actually took out time to join this call. On behalf of the company, what I would like to comment upon is that we are sitting in front of a good and healthy pipeline.

We assume that the pricing action and the execution plans which we have, which has already been initiated, will make our way through. We also see that as we progress, these uncertainties will die down.

Under the backdrop of the pipe which we have and the actions which we have initiated, I am confident that moving forward, the year which are balanced three quarters will be good for us. Thank you again for joining, and have a great day.