Thank you, Eldrid. Good morning, everyone.

On behalf of Elara Securities, we welcome you all for the Q3 FY '26 and 9-month FY '26 conference call of Schneider Electric Infrastructure. I take this opportunity to welcome the management of Schneider Electric Infrastructure, represented by Udai Singh, Managing Director; Omkar Prasad, Chief Financial Officer; Mohit Agarwal, Head - Investor Relations.

We will begin the call with a brief overview by the management, followed by Q&A session. I will now hand over the call to Udai sir for his opening remarks.

Over to you, sir.

Thank you, Harshit, and very good morning to all of you. I would like to take your company's performance in few slides, which I'm sure you've got a chance to have a look, the one which we shared yesterday.

If one of the number, one of and the slide and go on the slide two, which clearly states what your company vision and mission is, I just want to reiterate for better clarity. Your company will lead the new digitalized energy world by offering our customers and partners alike the innovated connected products and solutions, which will be ready for the emerging power distribution elevated expectations at any point in time in future.

Now, how we do this? The vision is that we do this through our balanced business models, maintaining consistent, superior quality and a very efficient supply chain, which will keep the growth and profitability resilient and sustainable.

Now, at this point in time, I would also like to share about our mission. We now are your energy technology partner for all of our customers and partners.

What it means is this: we electrify, we automate, we digitalize each and every industry, business, and homes aimed at driving efficiency and sustainability for all. This is the mission which we would be now working at with the above vision which I had just stated.

Now, I just want you and request you to go on the next slide, which actually just stipulates and showcases our awareness about the company with the customers and the stakeholders, and what is it actually leading it. I just have a few pictures on this to be shared.

The first picture, which you see on the left, is a CUCÓN picture, which is a CUCÓN event which was held in this quarter after a gap of 10 years, and this is by far a flagship event conducted by EMA, where your company represented very well. The right 400-odd people corporations got participated in this and had an active display of what your company does, and this was a grand success.

What we also keep on representing ourselves, our thought leadership, our supremacy in the market by participating in events of repute. Like the couple of pictures which you see is a IFQI event and EU chambers event where we got a place to really speak about as to what your company does for Indian customers and Indian stakeholders.

On the right is a picture which is by Mr. Shriram Singh.

There's a small video, and I encourage to actually see on our website. This is a 2-minute video, which actually just establishes as to what we, the company, has done in state of Bihar, especially in Patna, in terms of really digitalizing the city by providing the most efficient systems which the company has in terms of maximizing the uptime of the DISCOM which runs South Bihar.

I would now take you on a slide which is a bit heavy slide. I'm sure you would have seen is a market outlook what your company sees.

The headline message which I would like to communicate here is that the government is pushing growth despite the global or geopolitical uncertainties or headwinds which we face. Just to elaborate on this further, the GDP forecast for next year is supposed to be anywhere in the range of 6.8% to 7.2%, which is consistent.

What is also being done by government is to infuse more capex. We are expected to end the year, revise the estimate close to ₹11 lakh crore, and the next-year capex is slated to be about 11% more at about ₹12.2 lakh crore, which means that government is really trying to push demand.

This is also coming out by various initiatives or policy decisions which have been taken by the government in last few quarters, like the continuous repo rate cut. We're now sitting at 1.25% cut over what we were in December '24.

The tax reliefs which has been given, the GST rationalization which has come up is all a booster for domestic demand. When the demand goes up, the supply also has a rightful reflection, and that's the reason why we see that this is good for the company.

What we also heard our honorable Finance Minister said on the 1st of this month is a Infrastructure Risk Guarantee Bond. We are not fully aware about what this details of this fund would be, but this typically is aimed in mitigating the risk which a developer might see in putting up infrastructure projects, which is again positive.

We are talking about the other investments which are in emerging segments like data centers, semiconductors, and in the renewable space where there is a robust public investment plan in '27. Just to give you a sense, we are talking about close to 20,000 in data centers, maybe about 15,000 to 18,000 in semicon, and maybe about in excess of upwards of 2 lakh or 1.7 1.7 to 2 lakh crores in and renewables.

PLI scheme also stays because 3/4 of PLI is on the manufacturing 2.0, which is manufacturing cycle, and this is where people will put up more manufacturing setups and those sites and where we can supply our products and services. Now, I also want to take about 3, 4 minutes in terms of really telling you about the four pillars which are very pertinent to us and which would carve our future.

These I would call them as energy transition which the country is witnessing, the huge growth which is anticipated in AI and digitalization, the urbanization and therefore transportation, and of course last being the manufacturing resilience of the country. Just to give you a sense as to what we are talking about, 5 years down the line, we are talking about a renewable target of 500 GW.

We are talking about EV penetration rate to go to 30%. This all we know, despite the fact that we are still at 8-ish now.

More importantly, we are also talking about energy storage systems, which are battery-based, just to make our grids more resilient and powerful. Is the case in data centers.

We, today as we speak, we are at roughly about 1.7 GW of IT commissioned load, which we see that in next 5 years down the line this will go up to at least four times, if not more, to about anywhere number 7 to 8 GW. Now, this is important because the way data centers have been coming up, the way country needs it, the way population is using and leveraging the AI and digitalization, it is evident from the fact that we expect the digital economy, which today is roughly about 12% to 13%, will contribute to about 20% of GDP in 2030.

You heard on the transportation about what is happening. We have actually come up from 17% when we got independent to about 41% urbanization, which is slated to happen by 2030.

We heard the Finance Minister speak about the high-speed rail corridors, which are seven which are getting announced, which will cover about 4,000 km, the ₹16,000 crore investment, and also an additional dedicated freight corridor which will be 2,000 km connecting Danuni to Surat. Manufacturing resilience stays as very important because we are driving Viksit Bharat 47, and we are witnessing the merit of these schemes which are getting launched by government, especially the ECMS scheme, where the investment has been doubled.

We're talking about the dedicated rare earth corridors in two states, which will sort of bring in a lot of localization capabilities in making permanent magnets, which will be required in EV space and aerospace and industries like that. The last is the Indian Semiconductor Mission 2.0, where another ₹1,000 crore have been allocated in the budget, which will actually drive the semicon mission of the country by becoming self-resilient.

Now we, the company, if you look at and you focus in the last line, we are getting ready for leveraging all these waves which the country will witness, and I would say at this point in time that we are at right inflection point to actually capture the growth coming in this industry. I'm also happy and proud to share few of the wins which we did in this quarter which went by.

Speaking about the sunrise segments, which is essentially data centers, renewables, and semiconductors, we supplied entire end-to-end solution in one of the data centers in this Q3, where the order was taken for the entire value chain, including power transformers, the digitalized AIS panels along with a subscriptive maintenance contract. We are talking about the breakers and the transformers which we keep on supplying in the segment of solar, and we are one of the largest orders we secured for transformers in '25 in this quarter which went by.

Of course, the last is the biggest order which we won from one of the leading semiconductor manufacturers who's putting up a front-end fab in state of Gujarat. Continuing, we also witnessed major wins in the core segments where we actually have been working for quite a while, and these are what we call as electro-intensive segments, typically being the metal, mining, and minerals, the mobility, and also the power and grid, which is nothing but the utilities.

We supplied here GIS panels, and this is one of the steel plants where we have supplied the high-end, high-rated, digitalized GIS panels. Was one of the plant in Central India where we supplied this connected panels, which are for power distribution.

Of course, one of the large orders which came in from a North utility, which is for the ring main units, which are used for secondary distribution. As I said, we are highly digitalized, technologically advanced people, and that's the reason we prescribed in the TBCB tenders, and we actually got 765 kV modernization and digitalization win where we are supplying the control and relay panel and substation automation SCADA.

The digital journey continues where we are supplying full SCADA system in one of the leading metro network in Western India. I would also be very happy and proud to share as to what your company has been trying to do on the CSR angle, where the core and underlying principle remains as how do we build skill around us, how do we give something which is the basics and necessity, and also how do we earn trust as a good corporate citizen.

Now, if you look at under these three buckets, the skill development, we actually have established 10 skill centers in government ITIs, and we tell these students as to what they should be doing and how they can actually flourish and make their careers out of the contemporary technologies which India is witnessing. We are talking about community electrification.

We electrify what we call as community health centers, the public health centers, and few anganwadis with solar energy and solar LED power systems. We, in fact, have been also trying to provide and reach out to about 2,500 underprivileged families in remote and slum areas by providing them portable lighting and charging solutions.

Therefore, we actually have been recognized by FICCI and by FE. Green Saathi Award is something which we took in this quarter which went by.

Now, just continuing as to what we have been trying to do in the manufacturing plants which we have in the company, and the pictures which you see here on this slide, which is slide number 10, is the work which has been done by us in our plants in Baroda, where we are now attempting to really see as to how do we measure and optimize the scope 1 and 2, which is a very primary, fundamental, basic of being more sustainable. I have installed an on-site 1 MW capacity at both Baroda plants.

Just to tell you and give you a perspective, a 1/4 of the power which we do is actually sourced out of renewable sources in our manufacturing sites. If I speak about water management, which we are very conscious about, we have been taking measures to reduce water consumption 30%.

Few examples: if you see the picture, I'm sure you would have seen there's a pond which you see, which is the rain harvesting pond, and we actually leveraged this pond which we have made for using 30% of water consumption in plant in Baroda. We actually have also installed the zero-liquid discharge at all the plants.

All the right usage by using treated water for our washrooms, etc. is what we have implemented in the plants.

Now, we have kept safety at top of our radar, and that's the reason why we have sort of bettered our rooftop safety, and there are many things which we have done in terms of foolproofing our manufacturing operations by using solutions which are deeply engaging AI detection systems in terms of safeguarding our operators and people who actually are running operations. Now, I'm also very happy to announce and declare that we have launched, and I would urge you to go to page 12, which speaks about the latest in the block, which is GMset, which is a primary distribution gas-based equipment which is made fully in India.

It has got all the global technologies of Schneider Electric sitting inside. This is absolutely modular and digital switchgear is what we have done.

Now, the key benefits is that you get being modular and digital, it is more safer and reliable. It is digitalized.

It can give you all those elements of maintenance, whether it's predictive or condition-based. It has got better life because you can always predict what is going wrong in the asset.

Of course, because it is all indigenously made, localized in India, it is faster in delivery in terms of addressing the growing and agile needs of the country. End markets for this are plentiful.

To name a few are the power and grid, which we are calling as utilities; the transportation, which is metro network, airports; buildings, which are high-rise buildings, commercial buildings or office spaces; and of course, the data centers, which are going to be booming in times to come. Now, at this point in time, I would request my CFO, Mr.

Omkar Prasad, to share with you the financial performance. I'm also happy and I encourage you to go on the site where, first time, we have issued a press release for the performance of the last quarter, which is available on NSE, BSE and also at our own site.

Over to you, Mr. Omkar.

Thank you, sir, and good morning, everyone. I really want to thanks everyone to taking out time to join this earning call.

I just want to give you the update on the finances performance of the quarter and 9 months. I urge you to just go to slide number 14, where we have a highlights of 9 month and Q3.

This quarter, I have to tell you that this is the first time a quarter we crossed ₹1,000 crore. We just clear performance that in one quarter we are crossing ₹1,000 crore.

This has come with very good news with the strong order backlog. If you see in the slide, we have order backlog growth around more than 50%, and we have order backlog for ₹1,700 crore in our company.

I just reiterate that what we have explained in the earlier quarters that our focus continue to have more efficient order executions and focus on profitability. This will remain continue, and we are continue to make sure that we execute very efficiently going forward as well.

In brief, for 9 months, our order booking, if you look at, 37% growth, and now we have an order for 9 months is ₹2,657 crore. For quarter, we have a 60% percent growth, which is ₹909 crore.

Sales, we are at 12.3% growth, around ₹2,300 crore, and quarter we have ₹1,000-plus, which is 20-plus up movement from the last same period. Profitability, I'm just calling it out before exceptional expense.

I will clarify you what is the exceptional expense in the next slide. Profitability for 9 months, we have crossed to ₹281 crore, which is 8.2 crore YoY growth, and quarter ₹155 crore, close to 20% YoY growth.

If I move to the next slide, number 15, where you can see the P&L, it is all already published yesterday. I give a little bit detailed analysis that sales, we grew around 12%, as you know.

We continue to leverage our fixed cost, which is employee cost, other expense, and depreciation, if you look at. If you look at, percentage to sale has reduced from the like-to-like last year's 9 month.

In finance cost also, if you look at, in terms of the percentage is low, and we have a good cash in the company. You must have seen the balance sheet in September, and that also we are earning now certain income in the finance on the FDR.

Exceptional item, important to call out. This 9 month, we have a gratuity impact due to the labor code change.

One-time impact, which is cumulative impact till December, it's coming close to ₹25 crore, is what you see in exceptional item. This is every company making a provision in the December.

Last year, if you look at, we had an income here. If you recall that we explained that last year there was a litigation, direct tax litigations, where we opted the Vivad se Vishwas scheme of the Government of India, tax scheme, where we opted and filed the settlement.

Because of that, there was a provisions done in previous years got reversed. We had an income in the last year, and then expense due to the labor code change, we have an expense.

That's why, look at the YoY delta, it's making a negative in the PBT level. That's only one-off.

Otherwise, our profitability before exceptional item, we have grown 8.2%. Other tax expense and other comprehensive numbers as normal, nothing to specify here.

If I take you to quarter performance in the slide number 16, again here the quarter sales is 20% growth. In all the overheads like employee cost, other expense, and depreciation and finance cost as normal, but we are able to leverage this because of the very good sales growth.

Again, all the exceptional item what we call out just in the previous slide, it's actually impacted the same this quarter. Also the income was interest on reversal of DT litigation on Vivad se Vishwas.

It happened in the exactly the same quarter in previous year. This also come in the quarter moment.

That's why we have a normal tax expense, and we have grown the profit again before exceptional, even for quarter, it's around 15% before exceptional expense. Now, I hand over to our moderator to get your questions to respond back to you.

Thank you.

Hi, sir. Thank you so much for the opportunity.

Great set of numbers, execution, and order booking. Sir, very, very impressive order booking.

We have booked around ₹900 crore of order this quarter. How the order pipeline looks going forward?

Is it as strong as what we have witnessed in this current quarter?

Mahesh, thank you for the appreciation. We are sitting at ₹1,700 crores is the order book which we have currently, which has grown upwards of 50% YoY.

These orders we also grew 60% as you appreciated. We see going forward these schemes which have been getting rolled out will boost the requirements, because government is pursuing that there has to be demand push coming, and which we see that we will be able to maintain a healthy, I would say, order intake in coming times as well.

Okay. Sir, in presentation you have mentioned that we have launched the GMset, a modular and digital switchgear.

Is this a unique product for data center?

No, is a unique product, but not limited to data centers. It can apply wherever you need to distribute power at 33 kV in a most compact and highly digitalized way.

Just to give you a brief about this, Mr. Mahesh, these are embedded with sensors which are really state-of-the-art and can give you the entire health of the asset.

Also those type of healths which were conventionally in the past was never available. I don't want to get into technicals, but this is something which is really out of the class.

Will be the only company offering this product in India?

I would not like to make a comment on it. People are trying to do something in their own ways, but from our side, this is very unique.

Sure. Thank you.

Thank you so much, sir.

Hi. This is Aniruddh from ValueQuest, and congratulations on a strong quarter.

First question was to understand the gross margins this quarter. There seems to be a contraction in our gross margin in this quarter.

How should we look at it? What are the factors that led to it, and how should we look at the margin trajectory ahead?

Thanks, Aniruddh, for questions. When is a gross margin, yes, if you look at in terms of the percentage, there's a dilution.

What we have, the sales growth, it's coming largely the impact of the mix. As you know that we have a multiple segment in terms of transactional, where we offer standard product, we have services, then we have a projects and equipment, and IG.

It is just the margin dilution what you see that the way the last 9 months versus this 9 months and quarter-to-quarter mix has only changed the margin mix in the gross margin. Nothing unusual, I will say, but that's only a mix impact.

Right. Sir, any impact of this commodity cost inflation that we're seeing on our margins going ahead, and how are the contracts structured in terms of price variation clause, etc.?

For commodity inflations is not impacted in this quarter largely because generally our projects tenure to execute it's 3 to 6 months. We had RM already on hand, and process was in WIP stage.

That's why we don't see the much impact of commodity in this quarter for sure. Obviously, as different industry are getting impacted, we also foresee such impact may come.

How do we hedge against that, sir, going ahead? Are we able to secure some back-to-back contracts for commodity, or is the position open?

If you look at in the P&L, in the last line, other comprehensive income, this includes the hedging unrealized gain of commodity. Yes, we do hedge, not 100%, but we do hedge the commodity, some key component.

Understood, sir. Sir, final question was on the data center opportunity.

How large a component in our order inflows now would data centers be contributing?

Data centers till date, sir, has been roughly about 10-ish, and we are trying to see as to going forward how will this contribute more for your business.

Got it. Thanks, and all the best.

Hello. Good morning.

Can you hear me?

Can you hear me now?

Yes, much better, Mr. Parimal.

Yeah. Sir, just I wanted a clarification in your opening remarks with reference to slide number four, you mentioned you're at infection point.

Can you tell what do you meant by in terms of opportunity for us? Second question is any timeframe of coming to dividend distribution, sir, for the shareholders?

I can take the first question. My colleague will take the second question.

See, why, Mr. Parimal, I said we are at inflection point, because today we do things which are around energy and energy management.

Now, for us, the energy stays as electricity. All this what you see is on the slide four are the drivers of electricity demand.

Coupled with it, as you generate more and more electricity or energy, which is either from fossil or non-fossil, you're also going to witness very strongly the management of this energy, the multi-directional flow of this energy. The manufacturing in India will boost the demand of capex equipment which the company makes.

All in all, because there's a thrust coming in, which is getting witnessed and supported and reinforced by government policies, we see a pretty stable and strong future for the company. That's the reason why I said it is more of an inflection, because everything seems to be moving in almost the right direction.

Can you quantify the addressable market size for us? I know the budget figure is quite high, but what is the addressable market size for us in this?

Very difficult to answer, sir, because these are all different basis the segments and basis many other variables which come in picture. Typically speaking, for example, if you pick up power generation, it is something else.

If you speak about distribution, it's something else. If you come to data centers, it really depends on where is the data center being put up, what are the voltage class, the distribution, the mirroring, the redundancy, the mode of data centers, and many things.

It'll be highly incorrect of me if I can give you a ballpark number which actually as percentage of investment being done by the developer and saying this is the addressable market size. Really is different for different segments.

Sir. The second question, can you answer?

Yeah. On your question on dividend, your company has a dividend policy is there in our website.

Rest assured that the company is taking up the necessary step to take care of the board of directors, considering all operational and strategic strategy, and then accordingly, we'll come up and will let you know in coming time. Rest assured, and we know that this questions are coming from the last couple of times.

It's there in the policies, and we will work it on that.

Sir. Thank you.

Congratulations on very nice quarter, very successful quarter. Going forward, could you share what sort of capex we have planned for the remainder of this financial year and the next financial year?

Sanjay sir, thank you. Omkar, you'll take this question.

Yes. As per I think SEBI, whenever we take a capex budget, anyway, it will get announced publicly.

I think last time what we have announced somewhere in mid of last year in '25, and updates are there in the balance sheet in September. Accordingly, we'll have the update status also in the March.

Definitely, if anything get approved internally, you will come to know through the announcement.

Okay. This quarter being the strongest quarter seasonally, going forward, are we to see some sort of smoothing out of the seasonality now in the business, now that there is quite a bit of diversification across different applications, different end users?

Sir, I wish I could have answered you this with certainty, but we are hopeful. We are hopeful for the infusion which is being done by the private sector and also by the government sector in terms of really infusing and putting up capital.

We are hopeful that it will become more stable, slightly more predictable than what it was. Then when I say this, I say this the situation which we see today.

As all of us will appreciate that because of the geopolitical situations, things may go slightly off track. Then, what we are trying to do is how do we mitigate and course-correct ourselves in case that those things happen.

So

Yes. One would imagine, because of the strong order inflow that you've got, would give you quite a bit of visibility now going forward for the next year or two.

How this is going to be spread over the quarters and thereby get a little more evenly spread.

No, we could secure certain high-value orders, few of them, and that's the reason why you see a 60% growth in the quarter on ₹900 crores number. It really depends now the way these manufacturing requirements are going to be coming up and being seen by us.

The company is trying to see as to how can we really stitch together a solution and adopt a solution approach so that we can maximize on orders. It's actually and that's the reason why I said we are hopeful that perhaps we will be able to see a stable growth in times to come in terms of orders.

Okay. My second question's on item in the other expenses.

Basically, do we have scope to leverage the fixed element of warranty expenses and management support expenses, because these are fairly significant items? Going forward, are we going to see some operating leverage around these expenditures, basically see them go down as a percentage?

See, warranty expense, it's not a fixed component. Warranty expense depends on the volume and the value.

Yes, territory allocations and other cost, which are there, obviously, we will see the leverage for sure.

Right. Okay.

Thank you. Excellent work.

Thank you. Thank you.

Thank you.

Yeah. Good day, and congratulations for outstanding numbers.

Sir, my question is we had a product called E-House, and I think that something like that is being used massively in data centers. Do we still have this product or

Viraj, of course, we have this. We are one of the pioneers who established this technology in the country, and we continue to have this, and it's going strong.

This is, just to clarify, this has got multiple usage, not limited to data centers. It is primarily a solution which is where you are killing speed and you don't want to get into a civil construction of a substation, where you box it up in a steel enclosure and put everything, and thereby making it mobile at times.

This is seen by a lot many people, including power and grid. Data centers, of course, have this at times, because a success in data centers in India is how quickly can one make an infrastructure for hosting data.

What it also use, just to elaborate, is something which is not an E-House, but is a skid. A skid is where you put everything on a platform, make it one composite structure, you install it as one composite structure, and it actually gives you a plug-and-play advantage.

There are many things which are evolving, and let me assure you that we are on top of all of them.

Okay. What is the scope, can you give some market numbers on this E-House?

Or is it possible?

There is a very thin line. I would not be able to give you some numbers, but there's something which goes as E-House and a power substation or a compact substation.

These are usually a mirror term which is used. The E-House or stroke CSS or PSS market, if I may say, my sense is about ₹1,400 crores in the country.

We directly or through our partners are at a rightful share in this.

Okay. Sir, when in your slide you referred to the word digital, are you referring to EcoStruxure?

Yes, of course. EcoStruxure stays as the core, the basic fundamental.

Thank you for reminding us of EcoStruxure, that if you remember there's something which we call as connected, then there's something which we call as edge, and there's something which we call as analytics. The connected is the one which is the digitalization and sensorization, because you provide these sensors which give input to a simulator and accumulator, which therefore is topped by a layer of software which give you far more insights into anything which you would like to seek.

Yes, digital is the basic backbone of EcoStruxure. How's the revenue share with the parent?

Congratulations on very great set of numbers. I wanted to understand, currently, what is the percentage of exports that we have?

Will any of these free trade agreements that have been signed, in particular the EU FTA, have any benefit to us?

Okay. If you look at exports today in 9 months, if I give you the number, it close to 11% to 12%, okay?

We also have a certain recharges. That's a mix we have in exports.

Just to what Omkar said, these are very positive movements, which we are trying to do a free trade agreements with EU, which we all saw. We are still trying to see as to what additional business will it translate for us, because it is not yet out in great details as to what will it facilitate.

Overall, there is a positivity between India and European nations.

Okay. My second question is, do you have any kind of guidance that you can give for Q4 generally being the strongest quarter?

Is that something that we can continue to think of in this FY as well?

I cannot be telling you any numbers, but be rest assured that your company is trying to do the best we can under the given confines of operations which we have.

All right. Thank you.

Yeah. Good afternoon.

My question is to Mr. Udai Singh.

We heard your opening remarks, which talks about a very strong footing of the company, and it is well supported by your financial numbers. My question is what are the challenges or concerns which you see, which makes you worried?

Mr. Bansal, thank you for asking this.

Today, if you really ask me, the topmost priority of us is how do we have a profitable growth, which means that we have to pick up the right strategic contracts. Two, as I think in just few minutes ago, there was another gentleman asking, how do we mitigate the risk of raw material impact which we might see in times to come?

At this point in time, I want to say that while there can be an impact, but the internal actions taken by us is how do we mitigate that impact to the least. If you really ask me today, Mr.

Bansal, we're trying to see as to in this geopolitical situation, in this absolutely volatile raw material scenario, in the growing demand, which is challenging capacities of manufacturer, number one, how do we pick the right contract? Number two, how do we execute it profitably, mitigating the risk and volatility of raw material which those contracts might offer?

Yeah. Thank you.

I think this is helpful.

Yeah. Thanks for giving me a chance to ask a question.

Many congratulations, team, for a splendid set of numbers. A couple of questions from my side.

One is which are the sectors which you are seeing a good growth or positive tailwinds currently and from next couple of year point of view? The second question is we have a lot of our products in the distribution capex side as well.

What's your understanding in terms of potential DISCOM-related opportunities going ahead for our products?

See this RDSS scheme is a booster. I can rattle out many views on segment-wise, but for us, what stays important is the power and grid, and you rightfully mentioned in terms of how do we maximize our presence in the distribution sector of power and grid.

There are many states which are augmenting their infrastructure, modernizing their infrastructure not only tangibly by putting up the capex equipment which we can offer and supply, but parallely there's a lot of push which actually has been happening in terms of how do they modernize the localized and the national grid. Now, just to give you some insight, even the Ministry of Power has been actually advocating extensive usage of AI and ML for making the grids more resilient and transparent.

We see this as a major booster. We see the mass rapid transport in the country is going up.

We are talking about airports being made, the new ones. We're talking about metro networks being getting established besides the four metros to other cities.

We know that data centers will see a spike, which will again fuel the power demand. All in all, if you ask me, there are many segments which are really clicking.

Hopefully, if everything is going right as planned, it will give us a stable environment to operate in times to come.

Sure. Just a follow-up on that.

Considering a lot of levers for growth for our company, there are scope for also operating leverage to kick into our business. Are you happy with the current margin band, or over time do you see there is opportunity to get better on the margin side as well?

As I said, sir, we are trying to do business profitability. We are always in constant search for which areas do we optimize the cost, which areas can we get better prices.

That's a continuous rigor which we have in the organization. The leverage of volume will certainly come, because as you know is there on our website, the capex which we're infusing in all our three plants in terms of getting ready for the future, with those volumes, certainly, there will be some advantage and some leverage which will come on the profitability.

Got it. Thanks a lot, and wish you all the best.

Thank you.

Thank you. Sir, do we provide the break-up between our central government deals and the state government deals, the percentage?

For instance, this South Patna DISCOM case study which you've highlighted in the presentation, it's a related question. Is this a recent relationship, and going forward it would probably extend to number of years?

How significant, in particular, if you can give some sense of some kind of number to this sort of thing, and the division between the center and the state. Some sort of elaboration of this case study.

Yes.

Sanjay, I'll try to answer this, and I hope that I'll be able to clarify. I have not greatly understood the split which you are seeking between center and state.

If there's any distribution company which is government-run seeks funding, they have two options. Option is it is done by the state.

As you rightly said, it is funded partially or fully by center, and there are two nodal agencies, which were REC and PFC, who used to do that, which are getting merged, by the way. Now, that really doesn't matter to us as to who's the funding agency.

Eventually, we need to have clear right of way, we need to have clarity in what we need to supply, we need to have clear support from the state coming in to implement our solutions and hand over. If that is there, to answer your question, we don't track as to how much is state- and central-funded.

Now, two, you're asking about Bihar. That's something which we have actually commissioned to the last mile long time ago, and recently.

What we're trying to showcase is that there are certain cities which have ambitions to become smarter, and a very important piece of this is how do you make the basic necessities available 24/7. This is just a showcase of that which Patna has done, where I do not know whether you got a chance to visit Patna 25 years ago and what you see Patna now in terms of availability of power and the support which the DISCOM is able to give, which is being getting possible because of the solution.

Huge difference, obviously. All right.

Hello.

Thank you so much, sir.

Thank you. Thank you.

Thank you so much. I really would like to extend thanks for the appreciation which you have given to the team here along with me.

I have Mr. Mohit and Mr.

Omkar, who has joined for this. I wish you a great day and lots of health and wealth in coming times.

Thank you so much. God bless you all.