Good evening, everyone. Welcome to the GE Vernova T&D India Limited earnings call for Q3 of financial year '25-26.

I am Megha Gupta from Investor Relations team, and I am joined by Mr. Sandeep Zanzaria, CEO and MD of the company; Mr.

Sushil Kumar, Whole-Time Director and CFO of the company; Mr. Abhishek Srivastava, Head Business Operations; Ms.

Kanika Arora, Communications Leader; and Ms. Shweta Mehta, Company Secretary of the company.

During the call, we will discuss company's financial performance, including operational highlights. After the presentation, we will have a dedicated question-and-answer session.

Before we begin, I would like to highlight that today's discussion may contain few forward-looking statements, which are subject to risk and uncertainties. These statements are based on our current expectations, and actual results may differ materially from those expressed or implied.

We encourage you to refer to our public filings and documents for comprehensive understanding of the factors that could impact our future performance. Now I'll turn the call to Mr.

Sandeep Zanzaria to initiate the discussion. Thank you.

Thank you, Megha, and thanks, everyone, for joining the call. India added nearly 38 GW of solar and 6.3 GW of wind capacity in calendar year 2025, marking the country's highest-ever annual renewable energy additions.

RE now accounts for about 50% of India's installed power capacity, underscoring the structural shift underway in the generation mix. What does that mean for transmission and distribution infrastructure?

Every megawatt of renewable capacity added demands robust T&D network to evacuate power, ensure grid stability, and deliver reliable electricity to homes and industries across this vast nation. The draft NEP 2026 sets a target of 2,000 kWh per capita electricity consumption by 2030, rising to over 4,000 kWh by 2047, a significant leap from the current 1,460 kWh.

The peak power demand is projected to touch 446 GW by 2030. These target reflect India's growing energy needs driven by industrialization, urbanization, and economic development.

Renewable energy is increasingly being generated in remote locations: solar power in Rajasthan deserts, wind farms of Gujarat coast, hydropower in Himalayas, far from urban and industrial centers where power is consumed. This is where HVDC transmission comes not just useful, but essential.

With our HVDC solutions, we are well-positioned to support India's renewable evacuation backbone. Now turning to our financial performance, we had a productive, strong quarter of robust demand, significant revenue growth, and EBITDA margin expansion.

Our order book remained strong in Q3, and we saw bookings of INR 29.4 billion, up by 41% year on year compared to 20.8 billion in quarter ended December 2024. The numbers exclude the Adani Khavda HVDC project, which will be reported in subsequent quarters on achieving defined commercial milestones.

Our Q3 revenues stood at 17 billion versus 7 10.7 billion in Q3 FY '24-25, up by 58% year on year. New orders outpaced revenue, further expanding the order backlog to 143.8 billion as on December 2025 versus 131.1 billion as on September '25, up by 20 10%.

Our profit before tax and exceptional items for the quarter ended December '25 was at 4.6 billion compared to around 1.9 billion in the corresponding quarter of the previous financial year, growing by more than 2.4x. The cash and cash equivalent balance was at 15.9 billion as on December 31st versus 15.2 billion as on September 30th.

The cash generated in Q3 was 0.7 billion. This was our financial performance snapshot.

I would like to convey that the Board has recommended the appointment of Ms. Rashmi Joshi as an independent director of the company for a period of 5 years, subject to shareholders' approval.

In conclusion, as India races towards the target of 500 GW of non-fuel capacity by 2030, we're building the network through which this energy will flow. We are enabling grid modernization, supporting renewable integration, and ensuring that India's growth story has the power infrastructure it deserves.

Our strategy is clear: execute with excellence, pursue profitable growth, and be India's trusted partner in building the energy infrastructure of tomorrow. On behalf of the leadership team at GE Vernova T&D, our sincere thanks to our valued customer, our dedicated investors, our exceptional teams, and our partners.

Now I'll request Abhishek to share further insights.

Hi, good evening. As Sandeep just mentioned, our commitment towards strengthening of the transmission infrastructure of the country.

We had added some new strengthening projects to our electrical network in the last quarter. For our customer Renew, we commissioned 400 and 220 kV bays strengthening the evacuation of wind and solar power from the state of Karnataka.

For our customer JSL, we commissioned 132 kV bays along with 50 MVA transformer. For our customer WBSETCL, we commissioned 132 kV GIS.

Similarly, we continued addition of transformation capacity through commissioning of transformers, shunt reactors. For our customer Power Grid at Bhadla, we commissioned six number 80 MVAr single-phase 765 kV reactors.

Similarly, for our customer ReNew at Khavda, we commissioned 400 kV single-phase shunt reactors, three numbers, at Power Grid Dausa and Power Grid Narela. Similarly, we added three number 500 MVA 765 kV single-phase reactor and 10 number 110 MVAr 765 kV single-phase reactors.

The transmission network was further strengthened through commissioning of gas insulated substations. Some notable mentions for the last quarter was GETCO, where we commissioned 15 number bays of 400 kV; for KPTCL, where we commissioned 66 kV GIS 41 bays; then we had a export project for Elecnor, Dominican Republic, where 400 kV CBs were commissioned; and then for Godrej Power Grid substation, we commissioned 10 numbers circuit breakers and CSBs.

Our commitment towards this strengthening continues, and we will try to keep up this performance and keep on adding to the electrical infrastructure of the country. I hand over to Sushil to take it forward.

Thanks, Abhishek, and good evening, all. We delivered a robust growth in revenue and profitability due to our strong operational performance during the quarter as well as for the 9-month period.

As highlighted by Sandeep earlier, we booked orders of INR 29.3 billion in the quarter 3. This was the highest quarter for orders in this financial year.

This quarter order performance includes the refurbishment of Chandrapur HVDC order from Power Grid. As Sandeep mentioned, in addition, we won HVDC Khavda-South Olpad VSC order from Adani Group, and the same is expected to book in subsequent quarters basis the commercial milestone achievement.

On a cumulative basis, we have booked orders of 61.6 billion in the financial year '25-26. Out of this 61.6 billion orders during the current financial year, 15% orders are from export market and about 85% orders from the domestic market.

New orders continuously exceed the revenue execution, and this has led to further improvement in our order in hand position to 144 billion INR. Due to disciplined underwriting process at the company and phasing of the old low-margin orders, the margin on order in hand has also improved over the last financial year.

98% of the orders in hand are from private customers, central utilities, and public sector enterprises. The exposure to state utilities is limited to less than 2% of our orders in hand.

Healthy order in hand gives us a strong visibility of continuing strength in our business. Our execution has ramped up, and this has led to the strong revenue growth as well.

We delivered revenue of 17 billion INR, representing a 58% growth during the quarter. On a 9-month basis, the revenues were 46 billion INR, representing a strong 46% growth versus the corresponding period in the previous financial year.

In this quarter, about 28% of the revenues were generated by execution of export contracts and whereas 72% revenues were generated by execution of domestic contracts. On profitability side, we delivered another strong profitable quarter with the EBITDA of 26.7%.

On a 9-month basis, we delivered EBITDA of 27.1%, which represents 80 basis point improvement over the last financial year. The significant increase in EBITDA was driven by increase in volume, price improvement, and execution productivity.

During the quarter, we made a provision of 693 million on account of impact in the retiral benefits due to the new wage codes, and this was reflected or reported under the exceptional item in the profit and loss statement. We continue to generate or convert our profits into cash, and during the 9-month period, we generated 6.7 billion INR cash operationally, and end of December, we have healthy cash and cash equivalent of 15.9 billion with no debt.

We are now happy to answer the questions.

Yeah. Good evening, sir, and congratulations on a very strong quarter and the end of 9 months.

First question is, can you help us with the reason for not including the HVDC orders from Adani in the current quarter? Does the Adani HVDC orders also include transformers for the project, or is it only for the terminals?

Thanks, Mohit. As per company's processes, there are certain milestones defined on which the orders are booked.

Once we reach that milestone, that order will be booked. Yes, the transformers for the HVDC are included as part of the order scope.

Understood. My second question: how do you think about the impact of the FTA with Europe?

Does it make our product more competitive for the European region, thereby improving our export chances? Or does it anywhere reduce our cost of raw material, since you I think import a significant part from Europe?

Mohit, we are yet to get the details of FTA. Once we have the FTA details available with us, then only we will be able to make a judgment on what is the impact both on export side and also on the cost side.

It will be too premature for us to comment on FTA.

Sir, how much exported in last 9 months to Europe? Is that number available?

I don't think that will be available that how much we have exported to the European country. I don't think that from India, the custom duty is so high that FTA is going to make a meaningful impact in terms of increasing the exports numbers in a big way.

Understood, sir. Thank you and all the best, sir.

Thank you.

Thank you, Mohit.

Yeah. Hi, sir, and congratulations for very good set of numbers once again.

Sir, my first question is pertaining to HVDC order win that we had in last quarter. Assuming that we will have commercial finalization by maybe next couple of months, what could be a delivery timeline for this particular project, and how it will span over a period of, say, multi-year in next few years?

Umesh, order is already with us. Zero date has already started.

It's only that once we reach certain commercial milestones, we are going to book it into the system and declare it to the market.

Timeline. Execution timeline

for the

Yeah.

Execution timeline is very near to what has been defined by the TBCB development requirement. It is very near to that.

About 4 years.

Okay. If I look at

Okay. Understood.

In terms of HVDC project, if I look at our current capacity, on the basis of existing capacity, are we in a position to execute this project immediately, or will we require to add more capacity and then we are thinking about execution?

Umesh, as a good governance process, we don't take orders when we don't have the capacity and thinking that we're going to add future capacity and then execute the project. Whatever capacity is required to execute this order is already available with the company.

Understood, sir. Thank you.

Last question on the HVDC project between Barmer and South Olpad. You mentioned during last interaction that probably that order finalization might happen by the end of fiscal year FY '26.

Any color on updated status of that project?

We expect that order to get finalized in Q2 of '26-27 for the developers and then whatever time additionally it requires for the OEM to take. This is as of today's visibility, but it might change depending upon the extensions and things like that, which is not in our control.

Understood, sir. Thank you so much.

All the very best.

Thank you.

Hi, sir. Thank you.

First question, sir, on the base order inflow for 9 months, which is about 6,100 versus 7,700, and we understand that there was an export order. Just wanted to understand the status of one export order we were expecting from the parent.

Is it expected in 4Q? On the base order side, what are the opportunities which are still there in terms of pipeline or areas, and what is our kind of estimate or confidence on the base order growth for 4Q and even for next year?

If you could highlight the pipeline there.

Okay. Thanks, Amit.

On the export order that was in the pipeline, it is still in the pipeline, but there has been some delay from the customer side in terms of the decision. Now we expect the order to move to quarter two of the next, sorry, H second half of the next financial year.

It will be from let's say September to March of the next financial year when we expect the order to be decided. I request Sandeep to order.

Amit, we are not seeing any major slowdown in the market. Today a number of TBCB opportunities coming up.

I don't think that we are seeing any slowdown in the ordering. Now with states also going for TBCB, for example, we have seen Maharashtra and Karnataka going, and few more states thinking of going or moving their pipeline towards TBCB.

I think we are pretty confident on achieving the growth in orders in the base order this year as well as next year.

Right, sir. Sir, next question on the Chinese news which was circulating.

Are you seeing any impact to you, any assessment you guys have done if at all the government reverses, relaxes that order which was there 4, 5 years back for Chinese players to bid for HVDC or T&D orders? Any color on that, any impact or any assessment?

Amit, one thing is there: it's a media reporting, the government has not issued any clarification on that. I think without any government clarification, if you try to do anything on that, it is purely a speculation.

I don't think that government is going to dilute its Make in India criteria. For example, since we have put up the manufacturing capacities, the teams have worked together in developing a lot of supply chain in the country.

I don't see a major impact coming in terms of even if the existing factories which are based in India are approved, of Chinese make which are approved, I think to reach that maturity level, it's going to take them a lot of time.

Right. Sir, lastly on the export opportunity, we saw a few companies getting orders for the US data centers on transformers and stuff like that.

Wanted to understand, I think GE Global also has been focusing there, any strong traction you guys are looking, which will be directly related to the data center space in global markets and also in India? Just a more color on the data center opportunity and what we are actually eyeing on that space, yeah.

I think, yes, definitely, we are working with the global teams, and India being a strong manufacturing base, whenever a capacity is required and it is not available, obviously Indian factories would be available, depending upon obviously the delivery slots, etc. I think if you look at the data center or the IT companies' announcement of close to about $80 billion of data center and AI factories by four major US companies to be invested in next 4 to 5 years, I think that itself is going to present a huge opportunity in terms of data center and AI for the Indian market as well.

We will be concentrating on those opportunities as well.

Right. Sir, lastly on the margin, for 9 months, we had 27% margin already.

Are we revising that upward for the full year? After this order win of VSC HVDC, what is the margin expectation at firm level for the upcoming years?

Will it dilute to certain level or some understanding with the execution of HVDC coming in for the subsequent years?

Amit. We talked about this year expectation of delivering mid-20s kind of EBITDA.

Now we expect with the first three quarters of good performance that we'll be kind of delivering in the higher end of this range. It's difficult to talk about individual orders.

Of course, the endeavor of the management is to continue to perform like this and to deliver good EBITDA in the coming years.

Amit, I think you would have seen that we have been constantly saying that improvement of commercial terms and conditions, better cash conditions, better margin, these have been the focus of the company in the turnaround what has achieved. This is the area we'll be constantly keep on working.

I think we don't expect a major dilution or things like that happening on the margin front in the foreseeable time.

Understood, sir. Thank you so much, sir, and all the best.

Yeah.

Yeah. Thank you so much, and great performance here.

If you can talk a bit about how are you really mitigating the negative impact of commodity inflation in your costs? It'll be very helpful.

Punit, for many of the products what we supply in the market, they are variable price. That means if there's an increase or decrease of the raw material cost, the impact is directly passed on to the customer.

Second, for orders which are on firm price, based on our global assessment, depending upon the delivery timelines, etc., suitable provisions are built into the costing to take care of any material price movement. Also looking into the order book, order backlog situation, etc., we keep on working with our supply chains to improve the cost on one side and to mitigate such risk if at any point of time they emerge into the business.

There is no hedging of commodity that you do then?

It's not required because we don't buy a commodity per se, because, for example, transformer, etc., where the commodity are very high, where variable prices are there. Other places, the components come into small forms only, you cannot actually hedge into that form.

Okay. If you can also give some sense of how much of your order book could be under variable price and how much would be firm price?

We don't give these details, Puneet Gulati (HSBC):

Okay. Just hopping on back to Adani Khavda, you talked about once you hit milestone, you will book the orders.

What are these milestone that they are looking at?

These are all commercial process-wise internal to the company, I think you'll have to wait for it for declaration when the booking happens.

Okay. Also if you can talk a bit about the scope of the project, what all will be a part and will right-of-way be your responsibility or will that be their responsibility?

Puneet, we are not doing the transmission line. We are just building the HVDC stations at both the ends, at Khavda and South Olpad.

We are not doing the civil, civil work is being done by the customer themselves. Obviously, the right-of-way for the terminal land, etc., everything is in customer's court.

Understood. Great.

Thank you so much, and all the best.

Thank you, Puneet.

Yeah. Hi, Sandeep.

Congratulations on a great quarter, sir. First question is, is this Power Grid order of 3,500 MVA included in this current order book?

Yes.

Okay. Just on the export, this quarter, we have seen a substantial jump in if I see for 9 months numbers, that exports have picked up, third-party exports.

Any color on what has driven this improvement in exports? Export order booking of 420 crores.

Yeah. Overall, export orders are at 15% of the total order for the period.

Yeah. I think these are of the

In the quarter also, it is around 14% of the order booking. See, earlier, we had higher order share as well as we did the large opportunity.

These are the regular order. As the domestic as well as export market are growing in our industry, so that's the reason of significant growth in the order in value terms, though percentage-wise it looks little less compared to past because the domestic order booking has been very strong due to large PGCIL and HVDC refurbishment order.

No, sir, I'm saying for 9 months, we have 918 crores, and in this quarter, we have booked 420 crores. Any particular reason why exports order inflows were higher this quarter?

Is it like we have

There's no specific trigger on this. It's just the regular orders what we are getting.

Sometimes it is high, sometimes it is normal.

Okay. The parent has been highlighting strong order wins in Asia, and I think they have been posting on social media and other places that our HVDC current expansion will supply to whole of Asia.

Just wanted to get a sense and color on how is the certification going around Europe. Now I think Europe is also signing the FTA.

It may come into effect next year. How are you progressing with the certification across these geographies?

Earlier there was a mandate, I think, in UK that there has to be a localization. How do you think now with the FTA in UK and Europe how the export opportunity unfolds for us?

I think you have to understand one thing is that HVDC is a big market in Europe, and today, we have European facilities which are catering to that HVDC market specifically in Europe. I don't see any big role what GE T&D India can play in European HVDC market.

Okay. [unclear]

Hi, am I audible?

Actually, my question is already answered, thank you very much.

Thank you.

Hi. This is Nitin from Axis Mutual Fund.

Am I audible?

Yeah. You're audible, Nitin.

How are you?

Yeah. Hi, Sandeep.

Good evening. Hi, team.

Sandeep, just first question on your international opportunities. I know you said that the order has been moved in the second half.

If you can highlight, is it more of a capacity-constrained issue that it moved to second half or not? Just a one-liner on that.

Giving the opportunity on the international side from the last quarter to this quarter, how you are looking at it, from the inquiry perspective? Also, I know you stated in the starting of the call that even states are looking on the domestic side, I'm saying.

Can you elaborate a little bit, how the opportunity pipeline are why I'm asking you this? Because street is getting very nervous, and a lot of narratives are being doing round.

Like, for example, the first narrative which came that China is coming to India, a lot of Chinese companies will suddenly start, and India will welcome them. That was the first narrative.

The second is, because solar addition has been lower for the rightly reason, you know much better, how government is now working on the battery aspect, which also get eventually lit up by solar only eventually. Just if you can articulate on the domestic side, how's the inquiry pipeline, how you're looking at it?

Because I remember times when you used to announce an order size of 400 crores or 500 or 600 used to announce to exchange, but today we are winning more than 1,000 crore a single order, we are not announcing. It looks like the ordering is strong.

If you can articulate a little bit on the domestic and as well as on the international side, that's my first

side. Nitin, on your first question that the large order on which we took the RPT approval, that is not a capacity issue, but that is primarily the delay at the customer end.

That is just one clarification, which Sushil talked about that we expect it to get deferred to the second half of next year. That is one thing.

I think second on, Nitin, on the domestic market, at least I am not seeing a slowdown happening. When I'm saying that there is a sustainable pipeline of projects.

Even if you go to PFC's website, REC's website, you see the number of TBCB opportunities which are there, and even states are coming up. Also, as I said at the start, of course, China policy needs to be clarified by the government, because till the time there is no government clarification, everything is a speculation.

For us to reach whatever position we have reached under Make in India of 60%, 70% in different products, etc., it has taken a lot of time where we have spent effort, energy to build local supply chain, qualifying vendors, because we are talking about these components being used in 400, 765 kV. It is not that just you develop in 2 months, and then you are able to use it.

It requires a rigorous process of testing and then it is goes under the implementation, first on a smaller scale, and then it is scaled up on a bigger scale. It's not a very small process.

Even the Chinese factories get locally qualified, they would still take a lot of time to reach those maturity levels. I expect that and also we are expecting the market to grow.

Today, for example, TBEA. TBEA is today a large part of the TBEA factories are blocked by Indian developers only, who be supplying to solar and all those things.

Suppose tomorrow, if TBEA gets qualified and it takes one order in Power Grid, then obviously the renewable capacity which he was earlier supplying in X, Y developer, that will be available for third party. What's the challenge in that?

Market is not going anywhere, no?

Got it. How you think about international opportunity?

International opportunities, I think there's a lot of traction which is happening globally. You would have seen that this quarter, the order numbers were better on export side.

We are constantly working towards improving the pipeline and also improving the order intake. Globally, the decision-making processes in many geographies are slower than what we see in Indian market.

Got it. Sir, just one comment of yours where you said that, look, you don't see issues to profitability or margins in the foreseeable future.

I can assume that the ordering which has done in the last 9 months for you or let's say for the industry, still no pricing pressure has come, and rather given the commodity has increased, there would be adjustment in pricing or rather sustainability. How one should think about that?

Yeah. Nitin, Sandeep talked about the pricing aspect as well as the costing.

In terms of costing, a lot of commodities in all the price escalation is passed to the customer, and also the cases where we have a firm-price contract, we mentioned that we build in the cost assumptions in our working basis our internal forecast, which is a very robust process. Sandeep also mentioned earlier that the pricing is stable.

It's not deteriorating. It's kind of in line as we had a few quarters ago.

Got it. Thank you, Sandeep and the team, and thanks for clarifying on the outlook.

Thanks a lot. All the best.

Yeah. Hi, sir.

Sir, my first question is on the export order book. Is export order book around 30% of our overall order book?

It will be in the range of 24% to 27%. It keeps changing depending on what kind of order we'll be getting every quarter.

The overall theme is that the domestic market is strong, the international market is also strong. We continue to see the overall order booking growing.

In few quarters, it could be the larger orders from the domestic, and in other, it could be the export market.

Okay. Sir, my second question is on the HVDC project.

For Khavda-Olpad and the upcoming order, South Olpad, what is typically the local content requirement for this HVDC project?

For Khavda-Olpad, there was no local requirement which was defined in the tender.

Okay. Sir, my last question is on the execution.

If we see sales numbers, right? In 9 months this year compared to 9 months last year, there is a sharp increase in the export revenue around 75%.

Is this because the large export orders that we received in Q2 FY '25 and Q3 of '24? Is this execution belonging to that order, and related question is, is the margin improvement partly because of these export orders?

Yes, you're right, Mahesh. The export order related revenue in the execution also includes the large order that we booked in the last year.

As we mentioned in the earlier calls, export volume gives us better margin. Those are the better price deals.

That is also one of the reason of the improvement in profitability. Of course, there are other reasons, as I mentioned earlier, which is the overall increase in volume gives operating leverage and also significant operational execution that we are having as a team gives us execution improvement.

Okay. This export order will continue throughout the next year?

The large order that we booked last year had a timeline of 5 years of execution.

Okay. Sir, anything on the CapEx that we had announced earlier this fiscal?

Any update?

We announced the CapEx of close to 1,000 crore all put together. They have respective timelines of execution implementation, which will go up to financial year 20 26-27 in some cases and 27-28 in other cases.

Okay. Thank you so much.

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

Sir, government of India has released the draft National Electricity Policy 2026, where they are given a lot of targets. For example, per capita electric consumption to go up to 2,000 kWh by 2030 and 4,000 by 20 2047.

For the same plant, they have envisaged, I think, investments about 50 lakh crore by 2032. Just wondering, from your viewpoint, out of this 50 lakh crore, what kind of investments you anticipate that will go into a transmission side?

Mahesh, we will have to make an assessment. I don't think that we'll be able to give this number offhand.

Okay. Sir, given this new target, earlier there's opportunity we talked about was a 9 lakh crore investments in transmission.

Because of this broad number, 50 lakh crore, does that change the opportunity in a larger manner compared to what we anticipated earlier?

It will change. Definitely, it will change.

Then it also requires there will be a lot of investment has to come in the generation side as well. Because obviously when you're generating, then only you are transmitting.

Generation CapEx has also to match the transmission CapEx.

Agreed. I'm not looking for a number as such.

I'm just wanted qualitative input on this. Given this such a large-scale investment government is looking to look out for next 15, 20 years, does that our plan for dealing with in terms of increasing capacity and adding new products and so on?

Are there any internally discussions about all this opportunity and how we are going to focus?

We are already investing, as Sushil said, we're already investing into a CapEx of 1,000 crores. This is something which we always keep on our radar, and there are always internal discussions which keep on happening as a part of the strategy.

Whenever we think that we are ready for another round of CapEx, we will go ahead with that.

Sure. Thank you so much, sir.

Thank you, Mahesh.

Hello. Congratulations for the excellent growth which the company has achieved consistently over the last 1 year.

The order book also 14,000 crore plus the HVDC order of Adani's, which will also be quite substantial, I hope, where the company has the order book full for maybe next 2 years if you consider the reasonable growth of about 20%, 25%. As you mentioned that Chinese competition also is just a speculation, and even if it comes, it is likely to face the issues like testing and various other things, and it will take a lot of time.

Our growth projections and all those things and the order booking continues to be good. It is good.

I would like to wish only the best for the company. I don't have any questions.

Thank you.

Thank you, Viren. I'm saying that Chinese competition is not speculation.

I said that the media news which has come in that, till the time we don't get a government clarification, this news and everything is a speculation.

Yeah. Because the government has not mentioned anything on that.

This news has been appearing for last 15 days or 1 month. Because there is some shortage in some transformer parts, etc.

As you mentioned, these things, even if they are clarified, there is only one manufacturing company which has to produce it in India, no? Normally the things government is mentioning for China is that you should produce here in India.

If that is the case, these people have to put up a plant and all those things, it will again be a matter which will be after 2, 3 years only. Is this understanding correct?

Yes.

Okay. That is good.

Thank you and all the best.

Yeah. Sorry, I got dropped out.

My question is on HVDC. Now we have one HVDC already in our kitty.

Do we have capacity to take more, one or two more HVDC projects? Will we be active in this market?

We definitely have capacity for more HVDC project, but it will not be possible for us to disclose on a open call that we have capacity for one, two, three, four HVDCs because these are commercially sensitive information. Yes, we have capacity.

Okay. You're open and exploring more opportunities in this segment.

Secondly

That was part of my opening statement as well that with the HVDC opportunities, we look forward towards growth with HVDC, more HVDCs.

Okay. The other question is related to the I was talking about US that time I got dropped out and the opportunity in Asia.

Are there further discussions on the recent project which the parent has won, I think in Iraq and in Middle East, so that we get a share of some component of related party for the next year?

It's something which we keep on working, and I think whenever there's an opportunity and if it is very large in nature, we will obviously go back to the shareholders for related party approvals.

Okay. Sir, just lastly on this current HVDC which we won, which is VSC project, what kind of localization we have for this and what will be the import content or the parent share of sourcing for the parts or the equipment in this?

These are very specific information, Parikshit, and these are commercially sensitive information, we don't share these information. I can only tell you that the whole order has been taken by GE Vernova T&D India Limited, and we will deliver the order.

Sir, the cash equivalent in the 9 months is 15.9. Is there a reduction in cash equivalents?

There has been improvement, Parikshit. Last quarter, we had, I think, 15.2 billion, and this quarter, we have 15.9.

Over the last 9 months, we have generated 6 billion. I think starting March, it used to be around 8 to 9 billion of cash, which has now gone to 15 billion, 15.9, rather 16 billion.

Okay. 6.7 is for the 9-month period.

Okay. Sure, sir.

Thank you and wish you all the best. I am done with my questions.

Thank you.

Yes. Thank you, ma'am.

Firstly, Sandeep, just a basic question. While I understand there's no direct impact of RoW because a very large chunk of the issue is really coming on the transmission line front.

Let's say because of that, is there any indirect impact that comes through as in, let's say, the pooling substation or the grid-level substation supply gets deferred if there are RoW issues on the transmission line that continues or, irrespective of that they would ask or they will have to take up their supply?

Definitely sometimes there is a impact in terms of lifting the material. Today the developers or the EPC companies, they make alternate provisions.

For example, they might take a land somewhere to store the material, etc. For few cases, we might see a delay of maybe a month or 2 months in terms of material getting dispatched, but nothing major.

Okay. Fairly large chunk is essentially being picked up and stored right now irrespective of the RoW line.

Is that fair?

No, but I'm not saying that there's a large number of projects where it gets delayed. For few projects where it get delayed, yes, it gets stored, and then subsequently whenever it is required or whenever the land is available, then automatically the EPC and the developer speed up the process of executing that project, the gap is not so much.

Okay. Fair.

The other one was just to understand on the margin front, right? It's now three quarters where we've been delivering almost 27% and above.

While you've partly given reasons, could you maybe elaborate on how much of this is really because of product mix, and how much of this is because of some of the legacy orders getting out of the system and we subsequently getting price hikes? It'd be good to understand just for us to think about how sustainable margins can be.

Aniket, it depends on what is the starting point, and the numbers change depending on which period you're comparing to. Overall, as I mentioned in my beginning statement, there are three major reasons of this increase.

One is the volume, because we have been growing 46% in this 9-month period and last year also we have grown by 25%. A significant volume growth has given us the operating leverage because we are keeping our fixed cost at a very minimum increase.

Besides volume, the other one is the increase in pricing, which has happened over last

Hello, Rutuja. We are disconnected on the landline number.

Can you please call back?

This is already added.

Yeah. We got dropped.

Sorry for that. Aniket, I'll repeat my answer.

The better EBITDA in the range of 27% is a result of multiple factors. Increase in volume by 46% this financial year and 35% in the last financial year, that is one of the primary reason.

Better improvement in pricing and execution of the high-margin contracts booked in the last couple of years is another factor. The third one is the execution improvement because the team has been working very strongly to make a significant execution delivery.

Difficult to give the breakup of this improvement. It's the result of overall coordinated effort of the company, and we continue to hope to work in this direction.

Fair.

If I can just ask one more question. The current order book that you have, how much of that would be products and how much would be projects?

As of now, the projects will be lower, less than 30%. As we are going to also book HVDC order, this mix is going to change significantly because HVDC is classified as a turnkey project.

Again, I would say that it's difficult for anyone to keep evaluating the company basis these further nitty-gritties. For us, we as a management team evaluate our company at the larger level as one company without going into these breakups like export and domestic or one particular business line versus other.

We have a very disciplined commercial underwriting process. Wherever we get the opportunity to fill in the volume and book orders at a better deal, whether it's domestic market or export market or turnkey project or a specific product, basis our commercial underwriting process, we book business.

As a result, the overall order booking is at a healthy level, and we are delivering with good result at 25% to 27% EBITDA.

Got that, sir. Okay.

Thank you for taking my questions.

Good evening, and thank you for the opportunity. Sorry, I got cut off in between, some of my questions might be a repeat.

Taking off from where Aniket left on the margin point, just trying to get a little bit more color on this. I think in the previous concalls, you had alluded to the fact that despite the operating leverage plays and all the other benefits that are there, maintaining a margin of 25% plus would be difficult.

However, what we're hearing now is you are saying that maintaining a 25%, 27%, or somewhere in that range of margins is something that is sustainable. Is that the right understanding?

Subhadip, I'll I'll start, and then I'll give it to Sandeep to answer. Subhadip, there are two parts of this question.

First, one of the question was that what is the expected margin for this year? I answered that we have been talking about mid-20s, and now with the first three quarters in a good because the results have been very good, we expect now to be the higher end of the mid-20s for the full financial year for this financial year.

The other related question was the expectations for the future. For that, I and Sandeep, we answered that our endeavor is to maintain this mid-20s kind of margin, and Sandeep answered in the other way round saying that he doesn't see a deterioration in the foreseeable future, a significant deterioration in the foreseeable future.

Sandeep, you would like to add anything?

No, I think you're right, Sushil. You have captured it well.

I think, Subhadip, as we said clearly is that, of course, at that point of time as well, we didn't mean that it would be a significant deterioration, we feel, but it was read or it was understood like that, this is the final position what we have.

Perfect. Perfect.

I think that makes it amply clear. Secondly, I think if I have to look at the overall ordering in the transmission space, right?

Now I think the current fiscal has been relatively slow. I believe last fiscal, ordering was in excess of 1 lakh crore.

We are significantly lower in this year so far. Do you anticipate a large pick-up in the forthcoming quarters because there is a lot of tendering activity?

Is it possible to kind of articulate what is the size of overall pipeline of let's say TBCB projects that are in the tendering pipeline that you are seeing?

Look, I think I don't have the ready numbers with me about the pipeline, but I expect that, yes, next year is going to be a much stronger year than what we had this year.

Perfect. Perfect.

Understood. Thank you so much, sir.

Thank you, Subhadip.

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