Yes, thank you, Ryan. Good afternoon, everyone.

On behalf of Nuvama Institutional Equities, we are glad to host the senior management of KEI Industries Limited to discuss the Q3 FY26 earnings. We have with us Mr.

Anil Gupta, Chairman cum Managing Director of the company, Mr. Rajeev Gupta, Executive Director Finance and CFO.

We'll start the call with the opening remarks from the management and then move to Q&A session. Thank you, and over to you, sir.

Good morning. Thank you for joining this conference call.

I am Anil Gupta, CMD of KEI Industries Limited. The brief of this quarter, that Q3 is net sales—you must have reviewed the numbers, but I'll just brief it.

Net sales in Q3 is 2,954 crore with a growth in net sale is 19.51%. EBITDA in this quarter is 350- 354 crore against 254 crore last year with a growth of 39%.

EBITDA/net sales margin is around 12% as against 10.29% in the same period last year. Profit after tax is 234.86 crore against 164 crore last year.

Growth in PAT is 42.5%. Profit/profit after tax/net sales margin is 7.95% versus 6.67%.

Domestic institutional cable sale, wires and cable is 592 crore, and domestic institutional cable sale, EH- extra-high-voltage cable is 127 crore. Export sale in this quarter is 544 crore, and overall growth in the wire and cable export is 95% in this quarter.

Total institutional cable sale contribution is 41% as against 45% in previous year same period. Sales through distribution network that is B2C was 1,612 crore with a growth of 29%.

B2C sale contribution is 55% in the third quarter as against 50% in the previous year same period. EPC sale other than cable is 50 crore against 60 crore last year.

Stainless steel wire 53 crore against 54 crore last. For nine months period from April to December, net sales is 8,471 crore with a growth of 21.26%.

EBITDA nine months, 963 crore. The growth in EBITDA in nine months is around 33%.

EBITDA/net sales margin is 11.64%. Profit after tax in nine months is 634 crore.

Profit after tax/net sales margin is 7.67%. Domestic institutional cable sale is 1,884 crore, and extra-high-voltage sale is 371 crore.

Export sale in nine months is 1,390 crore. Growth, overall growth in the export is 79%.

Total cable institutional sale contribution in nine months is 42% as against 41% same period last year. B2C contribution is 4,413 crore.

The growth is 23%. The total active working dealer of the company as on 31st December is 2,140.

B2C sale contribution is at par at 53% in nine months period. EPC sale is 188 crore, and stainless steel wire sale is 157 crore against 166 crore last year.

Total order book position as on 31st December '25 is 3,928 crore, out of which EPC is 361 crore, extra-high-voltage cable 717 crore, cable domestic 2,426 crore, export orders 424 crore, and total wire and cable segment 3,567 crore. Future outlook and during nine months period company has incurred a total capital expenditure of ₹928 crore, out of which capex in Sanand is 769 crore.

Salarpur buying for buying a land, 72 crore. Sanand, another land has been purchased at a cost of 24 crore, and other locations other plants and locations for plant and machinery, ₹63 crore.

The total capex payment incurred for Sanand until now is total 1,353 crore. Another ₹200 crore will be spent in in this quarter, and balance will be spent in next financial year.

Company is hopeful to achieve 20%-plus growth in full full-year period, and also will improve our operating margin in FY25-26. Considering phase one commercial production at Sanand and strong order book of domestic institutional for cable sale, export orders, and extra-high-voltage cable as on date, after completing the Sanand project that and the strong demand in domestic and overseas markets, we are hopeful to grow more than 20% in next CAGR in next three to four years.

I would like to highlight that at present we are very strong in the institutional cable market, whether it is domestic or export. KEI is the KEI is the first Indian company to supply several projects of extra-high-voltage cables, 330 kV cables to Australia, and also supplied 220 kV cables to UAE and Spain.

KEI is the only Indian company to qualify in National Grid UK framework agreement for maximum voltages up to 400 kV. We we have expanded our reach to Caribbean islands and supplying to West Indies and many other neighboring countries.

In domestic market, we are supplying to entire solar power chain, including Reliance polysilicon factory at Jamnagar. In UAE, KEI has bagged three contracts for supply of 132 kV cables and gaining acceptance as a EHV extra-high-voltage cable manufacturer in Middle East.

This is my a brief summary about the results from my side. Now requested to put your questions, ready to answer.

Hi, sir. Very good afternoon.

Thanks for the opportunity. Sir, three questions.

Firstly, to understand the Sanand ramp-up plan, and if you could elaborate between the segments. I understand that LT/HT is going to be a larger portion of this plant, and EHV will add another 1,200 crore of peak sales.

Over '27, '28, '29, just wanted to know next three years, how do you plan to ramp up Sanand sales? What products come first?

What comes later? If you could just break it into three years, that will help.

That's the first question.

Okay. LT/HT, we have just started trial production in December, and gradually in this quarter, January, February, March, it will ramp up.

By April, we expect that our electron beam equipments to manufacture electron beam-cured solar wires will be commissioned, and that will add another boost to this plant. Far as extra-high-voltage cable is concerned, and we will also be ramping up our medium-voltage cable capacities further by July or August, and extra-high-voltage cable facilities will come up by March '27.

This will going to be the ramp-up. In next financial year, this project will be complete in all respects.

Got it, sir. Overall, should I assume that to achieve this, your plan is to spend 2,000 crores.

This should make at least three, three-and-a-half times asset turns. We're talking about 6,000 crore top line, should happen sometime in March '29.

By FY29, we should achieve this entire 6,000 crore incremental top line. Is that fair understanding?

Yes, yes. Absolutely.

Okay. Second question was on the capitalization of the capex.

I understand that as you said, LT/HT trial production started in December, and we've incurred a capex of about 800 crore in nine months on Sanand, right? The balance, 500 crore was last year.

About 1,300 crores of capex is done till date. How much is capitalized till December of '25?

Sir, this will be capitalized around 550 crore. Balance will be capitalized when this machinery will get start, as Anil ji had spoken about the control cable of the electron beam in April, and then more machinery in medium voltage in the month of July or August.

Accordingly, it will be capitalized in the books of accounts. The whole plant will be capitalized by March 2027.

Okay. Out of the entire 2,000 crores, how much would be the land cost, sir?

We will exclude that for capitalization.

Land cost was originally ₹140 crore.

Right. The balance will get depreciated on a full capex basis from fiscal '28.

Is that correct?

'28. Yes, yes.

Perfect, sir.

The depreciation load will not come in one year actually, next financial year, because it is in the phased manner. It will come only in '28.

That would be about 5% of 2,000 crore, right? About 100 crores.

Is that fair?

Yes. In '28, the top line from there alone will be close to 5,000 crore.

Yes, I understand that. Yeah.

Yes.

Third question was just to go back to the Anil ji's commentary. We're expecting 20% growth for top line full year.

I think we have done similar 21% in nine months, and we have seen very sharp rise in copper in December. Just to understand, why are we conservative here?

No, I think the growth in this quarter should be anywhere between around 25%-plus. We are trying to quantify it in a better manner.

Definitely because of the increase in the copper prices, it will be anywhere more than 25% in this quarter.

Right, right. Got it, sir.

Got it. Margins, you've already mentioned that two years' time you should see about 100 100 bps adding up at EBITDA level.

Do you retain that guidance?

Yes, yes. I think we have already given a guidance and next year we expect to achieve EBITDA margins of around 11% overall for the full year.

Got it, sir. Thank you so much and wish you all the luck for the next year.

I'll come back in the queue.

Thank you, Rahul ji.

Thank you for the opportunity, sir. Sir, my first question is on the hedging side.

Assuming that 50% or rather 40% of your entire raw mat cost is metal cost, and you're exporting approximately 20%, so that's naturally hedged. For the remaining 20%, I would like to know do we purchase it spot or do we hedge the entire exposure?

No,

we don't hedge. We are working under natural hedge.

We are carrying three to four months inventory three to three to four months pending order from the institution side, and we are carrying two-and-a-half months-plus inventory in our floor and one month inventory during the transit period, because we are importing.

Also we are mainly 80% of our metals we are buying from Hindalco and Vedanta domestically, the purchase is in rupees. Here the foreign exchange exposure doesn't come into picture.

We are working under natural hedge as we were guiding you in the past also.

Got it. Sir, now if I sequentially see your number, the growth has been moderate.

I understand there has been volume constraint. Then if I see your EBIT margin, sequentially also there's a sharp increase.

Now you have historically mentioned your EBITDA margin is usually in a range across your categories. If I then calculate the EBITDA just sequentially, the growth is still very high.

Could it be possible that because you just said that you have inventory for a longer period of time, did we also get a benefit of low-cost inventory in this quarter? Madam,

normally whenever we talk of a particular quarter in the past also, when the sudden movement of the price of the copper either upside or downside, there may be increase or decrease by 0.5% to 1%. For a full-year basis, as we have earlier guided, that we will improve our operating margin, which you are seeing from the last year.

Year after year, we are going to improve because of the capacity we are getting increased, and the product mix like extra-high-voltage and the segment like export is increasing. It is helping us to improve our EBITDA margin.

Understood. Sir, one last question.

In terms of wires, how do you see the channel right now? Is it stuffed to more than which is required, or do you think that fourth quarter will continue to see margin in growth for wires?

Year after year, in the wiring segment also we are growing more than 22%, 25- 23%. That will remain continue for a full-year basis.

Understood. Thank you so much, sir.

All the best.

Sir, thanks for the opportunity. First thing, what is the total inflation what we saw on the raw material side for the last quarter, and how much was already passed on to the cables and wires clients, if you can just broadly quantify?

Sir, as we said, that we always carry two-and-a-half month inventory in floor and one month inventory in transit as against that three to four months pending order position from the institution side, either from domestic or export. Practically old orders served with the old inventory.

With the retail market, in every 15 days the retail price will up or down depending on the price movement. Practically everything is passed on.

Okay. If you can just tell in the quarter which is currently going on, Jan, Feb, March, what are the kind of price hikes we've take in the retail markets, given copper is on an inflationary trend?

The required increase in the list prices of cables and wires has already been done. Now effectively the sale is happening at the current average prices of copper and aluminum prevailing in January.

It is a normal routine, actually. Whenever copper goes up, price goes up.

Copper goes down, price goes down. It's a normal practice adopted by all the industry player.

[Hindi speech] Rajeev ji, that I understand. Just want to understand [Hindi speech] kitna price hike ho chuka hai.

[Hindi speech] I'm not worried about ki price hike pass on hoga ki nahi hoga. I'm just trying to understand ki prices kitne badh chuke retail markets mein.

House wire [Hindi speech] ke jo agar price main dekhu, to pichle do mahine mein around 15 15% ke kareeb price rise hua hai in the selling prices. In cables, effective December actually major price increases have started from December.

The [Hindi speech] Haan ji. to December or January [Hindi speech] mein overall, I can see that 10% rise hua hai cable ke prices

mein. [Hindi speech] Cable ke price mein 10, wire mein zyada hai.

Sir, my last question is in terms of when you giving a 20%-plus guidance for next year and a 25%-plus for Q4, is this more of a volume guidance or a value, and broadly what is the copper price increase what we are building?

See, I can say that volume guidance will be there between anywhere between 16% to 18%, and plus the price inflation due to input price inflation in the inputs will be added. Perfect.

The actual growth should come far more than that.

Perfect, perfect. [Hindi speech] Theek hai, sir.

Thank you so much and all the best for subsequent quarters. Yeah.

Hi, sir. Good morning.

Sir, just one. Overall what we've seen in the industry of a growth of more than 20%, 30%, while our growth has been 20%, how do we see this versus the industry, and volume growth and value break up, how it is looks like, sir, in this quarter?

Sir, our capacities in cables was almost at the peak level. We could not grow much in cable segment.

We grew our volumes by around 10% in cables and in wires more than that. Maybe in the other peers like Havells, they commissioned their Tumkur new cable factory around nine months nine months or one year back.

They could increase their volumes from there. We have been able to commission our Sanand facility, and the contribution from that will come in this quarter from Q4.

Okay. Sir, if you can just quantify how much capacity has been added by the Sanand?

The capacity what we have commissioned is around at the moment is around ₹250 crore a month in Sanand. The half of the capacity has been commissioned, and this capacity will come into production gradually as we are doing the ramp-up with the induction of manpower in all the departments and also one-by-one machines are being commissioned and put into production.

Secondly, initial one or two months in any cable factory goes into the obtaining a lot of type tests conducted on cables by different agencies, visits by the customers, and also obtaining BIS license. The person you are speaking with has put your call on hold.

Please stay on the line. [Hindi speech] Aap ji

line connect ho gayi.

Sorry. Some question was there.

Hi, sir. Sir, capacity what we have added, you were saying about 250 crores a month, and the BIS certification, what is required, and would be ramp-up gradually as you were saying?

Yeah. We have already obtained the BIS license for low-tension cables already, which have come.

For HT cable, it is expected to be received by end of January. We are doing all possible things to bring the contribution from new facility.

I can assure you that with our experience of running a cable industry for last around 50 years, it will be ramped up very shortly. We need some basic approvals, which are bare essential to sell.

Got it, sir. Thank you.

Yeah.

Thank you for the opportunity. Sir, two questions.

First, on this 250 crore a month kind of capacity and that would get added gradually, and there would be some addition during FY27. Now just based on this 250 crore capacity, when do you think that you would be able to utilize a significant proportion by what time?

That is first question. Second, since the plant has come, or the opex may be upfront, and ramp-up may be gradual, do you think at the segment EBIT level, that is cable and wire segment level, our EBIT margin can come down because of the depreciation and some opex during FY27?

Next year also, from the Sanand itself we will have the turnover close to 2,700 crore from the Sanand itself. Whatever depreciation will be there, it will be absorbed.

We don't guide or we don't think that our EBIT margin will go down.

Understood. Just last question on the demand side.

Are you seeing any deceleration in T&D or any other large consumption industry capex? I am not talking about degrowth, but deceleration from either because of the past, high base of past few years or because of the high prices of commodity, not only cables, but even otherwise all the other raw materials?

Thank you.

See, as of now, we don't see any deceleration in the demand for cables. See, prices really do not affect the project.

If the project is going on, it's coming in, maybe for a one one month or so the decision-making may stop, but ultimately that product has to be purchased to complete the project. I don't think that energy sector will see slowdown because of the exceptional energy demand required by industries, households, and data centers, and other consumers.

We don't expect any letdown in the demand.

Noted. Sir, all the best.

Thank you.

Sir, just a quick clarification. If you could talk a little bit about the competition, like we have seen some of the new entrants in wires.

You also mentioned competition in your media interview in the morning. If you could a little bit give us some more sense on the competition for both cables and wires from the new competition?

Yeah. Okay.

I'll just brief you about that. You see, in last one year, we have seen few new entrants on pan-India basis like Torrent, Surya Roshni, Lucer, etc., and few other small companies entering wire segment.

Our present growth is in spite of all these competitions. Our major strength is product performance and brand image.

Any newcomer takes around five to seven years to build up that brand image and product performance. We are also price-competitive.

We are already operating in a very, very competitive market. We are having substantial capacities and hence we have good purchasing power and our fixed overheads are very, very low because of the large volumes as compared to the new players.

The demand itself is growing by around 13% to 14%. New players will also get adjusted in next few years, apart from giving existing players a growth.

Secondly, in this we are offering a full basket of products like cables, flexible wires, telephone cables for residential buildings, LAN cables, solar wires, and we are approved with leading consultants and architects. This kind of complete basket, whosoever new entrant is coming, for them to conceptualize all this will take a long time.

We will always have a edge over them, and we will be able to deal with this competition. The creation of network required to reach reasonable skill is at least four to five years.

Even the distribution network what you need, and the manpower you need to create this network, that also takes adequate time. The market is also growing.

Rest, what is in the store in future, nobody can see. In last 13, 14 years, even that KEI has reached only towards 3,500 to 4,000 crore wire sale.

It took us almost more than a decade to reach this level.

Fair point. Any comment on the cables front as well, sir, apart from wires?

Cables front, I don't see there is any new player coming into the cable segment, and with our strong presence with the projects and the exports, I don't see any deceleration in that.

The prequalification is required while anyone coming for the cable.

Sorry, just to hop on this wire thing, recently Bajaj announced a foray into wires, probably Crompton also is what there is speculation. Given these are electrical companies, appliances companies, they have an element of distribution already in place.

How do you defend or how do you see that laying out in terms of volume or pricing for the industry and us as well?

Sir, they are coming up with, I think, in my opinion, outsourcing model. Far as my experience is concerned, in wires and cables outsourcing model will not work.

Already there are three three, four company, those who have already come. Even though all the existing companies has grown very well, even after this competition.

Understood. I'll fall back in the queue, sir.

Thank you so much.

Sir, thank you for taking my questions. Sir, two of them.

Sir, first is in continuation of Achal's question, and you did allude to it. Why do you think the outsourcing model in wires will not work?

That would be the first question, sir.

This is my opinion. It has not so far been tested by anyone.

Let's see whether it will work or not. Because this market is very competitive and after paying the manufacturing cost, etc., and other profits to a contract manufacturer, I don't think that just by brand, you can earn too much of margin.

Even a newcomer will have to build up the brand in the wire segment, which is a good-case scenario for at least five to seven years. You can't build up brand overnight.

Sure, sir. Sir, my second question is on your margin guidance.

Just to sort of break it down, you have a large capacity that is coming on stream. I'm guessing there'll be some negative operating leverage because of that, plus you have a big focus on export, which is higher margin.

As a combination of all these, you're guiding for margins to improve. Is that a fair assessment, or is that underlying assumption something wrong?

No, no, it is a fair assessment, and we are giving a margin guidance based on the combination of domestic as well as export market.

Very clear, sir. Thank you.

Thank you so much for the opportunity. My first question is in your overall volume growth for this quarter, is there any bit of inventory stocking to your mind that has happened, or is it all pure growth?

It is normally pure growth, because quarter-on-quarter we are giving the numbers and quarter-on-quarter we are guiding. Inventory in the channel by dealer distributor does not kept more than 15 to 20 days.

That is for them also it is a routine nature of work.

Because the raw material prices went up exceptionally, do you think there has been some inventory stocking?

Sir, it is applicable to all the quarter, because in the second quarter also it was increased, in first quarter it has also increased, in third quarter it has also increased. If the pricing is increasing, this means it is automatically set up in the system.

Okay. My second question is on the export side.

You've done now four quarters of very, very strong growth. Is there room to do similar sort of very, very high growth for next few quarters, or you think you've reached a base and you've tapped more or less the opportunities to do more, 20% kind of growth that you're guiding for the full business, or should we still expect growth to be very, very fast like you've delivered over the last four quarters?

Sir, world markets are very, very big. From India what we are exporting is just a peanut.

It depends on how much we are able to explore and exert ourselves into larger economies.

In your mind, that number can continue into next few It can,

but I don't say that every year we can double, but we still see a strong growth for next few years until we reach a reasonable level of market.

Understood. That's very helpful.

Lastly, if you can give some sense of what is the existing capacity utilization for your various units?

The utilization of capacity is close to 76% in the cable division.

Okay. That's all from my side.

Thank you so much.

Hi. Hi, sir.

Thank you for opportunity. Sir, you said related to the volume growth 16% to 18% for a way forward you are looking at as a volume growth, and how has been in the third quarter?

Third quarter, Anil ji has said that close to 10%, 11% was the growth. Because if you see, sometime this volume get exchanged between the copper and aluminum.

The price of the copper is three-time more than the aluminum cable. Exactly replica, quarter-to-quarter can be gauged, because in some quarter aluminum cable orders are more.

Then the volume may see more, but in terms of value, it is a one-third. In terms of the copper, when we get the copper more like some export market, the copper is more.

Then the value will be high, but the volume will not be look like aluminum.

Right, right, sir. Got it, got it.

Sir, second, related to the HT cable, because the HT cable for a quarter, a couple of quarters we are seeing there is a dip in the revenue. Is that the I can understand there is a fungibility in the capacities, but is there a demand impact or is that the capacity impact in the HT cable?

Sir,

last year extra-high-voltage power cable capacity was utilized for HT power cable. That's why, comparatively, the reflection is like that.

Now the extra-high-voltage order is very high nowadays, extra-high-voltage power cable is being manufactured on extra-high-voltage. No high voltage is manufactured on extra-high-voltage right now, so that's why that is there.

Because the capacity was common.

Yeah. With the Sanand capacity, which is up and running, first phase, is there a possibility of a HT cable to improve from here?

Yes, yes. Absolutely.

Absolutely. It will be substantially improved.

Sir, you see, we are always talking about the growth of 20% CAGR growth, not for one quarter or for one year. Even in the '21-22, '22-23, when the prices of copper was not increasing, rather decreasing, or aluminum price decreasing, at that time also we were growing by 19%.

We are not related to the price increase or decrease, rather than we are more focused towards the value growth so that a disciplined growth we can maintain, actually.

Right, sir. Lastly, on the order book bifurcation if you can give, like EPC, extra-high-voltage, domestic cable, how is been?

Order book, just Anil ji has told, I will repeat that. Total order book is 3,928 crore, out of which EPC order book is 361 crore, and extra-high-voltage power cable is 717 crore, domestic cable order is 2,200 2,426, export cable order is 424.

Total is 3,928 crore order book. Right.

Thank you, sir, and all the best.

Hi. Thank you for the opportunity, sir.

Most of my questions have been answered. Just one clarification.

As export is concerned, do we a particular benchmark in mind in terms of we want to restrict it to, say, a 15% to 20% of sales, or we feel it's based on opportunity? Do we have any such number in mind?

Sir, we are growing depending on the capacity. As our capacity is increasing, we are growing.

That's how we have given the guidance originally 20% CAGR. If some prices are increased, definitely that impact will come in future.

Sir, I was referring more to export as a percentage of sales. Is there a number that we are looking at that we want to restrict export to a certain percentage, or

Export, Anil ji has earlier

No, no, there is no restriction that we will stop at that level. We will see where the sky is the limit, where we can go.

Ultimately the capacity we need to utilize, na? Whatever capacity will be there, either we can utilize in export, or in retail, or in domestic.

It cannot be that export should also increase, or domestic also increase, and retail increase, because we have to grow ultimately with the capacity.

Right, sir. Sir, realistically, what could be the share of export, say, in two years?

Close to more than 20% Anil ji has already visualized and

We will definitely be aiming for more, but as soon as we get more visibility, we can give better guidance. This year, we are hit by our exports to US, which was started last year.

Ultimately, in this uncertain times of geopolitics, it is very difficult to comment what a leader is thinking in other country.

Sure, sir. Sir, this quarter, which were the major countries that we have exported to?

We have been exporting to now Europe. We are exporting to Australia.

We are exporting to Middle East and Africa. US at the moment is on hold because of that tariff.

Sure.

Thank you for the follow-up, sir. Just one question.

If I exclude Sanand, could you please help me understand the existing capacity in terms of sales value for LT, HT, EHV, and housing wire? How much peak sales can we achieve out of the existing capacity?

No, no. We have already reached peak.

There's no more 12,000 to 12,500 crore capacity other than the Sanand.

Sorry, sir, I missed that number. 12,500 crores?

Yeah. That is the capacity.

Total. Other than Sanand.

Right. Any expansion brownfield are we planning apart from Sanand over the next two to three years?

That has already been planned, and after the Sanand, even the next financial year, we will be going to start in our Bhiwadi. That will be in the planning stage as of now.

A new project. New land.

New land, which we bought in the current financial year with an investment of ₹92 crore. After that, we are already acquiring the land in Baroda, around close to 70-acre land.

We are accumulating there. In next three to four year, our planning is to invest another ₹2,000 crore rupees apart from Sanand.

Got it. This

That's how we are targeting close to a 20% CAGR growth for next four to five years.

Understand that. This 12,500 is existing capacity plus the brownfield whenever they start and plus Sanand.

Is that correct?

Yes.

Thank you so much, sir. All the best.

Hi, sir. Thank you for the opportunity.

Most of the questions have been answered. Just wanted to know what's the asset turn in wires and what's the asset turn in cables?

In cable, asset turn is close to 1:4, and in wire, maybe asset turn is close to 1:5 or 1:6.

It will be more than that. It will be 1:7.

1:7.

1:6 or maybe 1:7 when the brownfield capex is going on, yeah.

Got it, sir. Thanks a lot.

Namaskar, sir.

Namaskar, sir. You can hear me?

yeah, yeah, sir. Just to summarize, sir, if you could just give us some color on the landscape, especially for the EHV cable segment, in terms of the current demand with respect to the renewable segment, growth is propelling in the segment, and the capacity in the country, and the key players who are participating in this journey, including KEI, and if you could just give us some more color.

Then there was some talk from some easing by the Government of India in allowing Chinese players to participate in government projects and in power utilities also because of some shortages in the power segment, especially in putting up this renewed infrastructure. How do we stand there, and any update you would like to share on these two aspects, sir?

See,

government had been talking of allowing Chinese in some segments like transformers or some high-voltage equipments where there is a real shortage, and delivery periods from existing manufacturers are very long, maybe two two years or three years. In cable segment, there is no such issue, and there are four or five significant players now in the EHV segment also like KEI, Universal Cables, Sterlite, LS Cable.

With the bulk of this product, I don't think that Chinese manufacturers can compete with us in Indian market because of the disadvantages there.

Okay. Sir, agar hum demand aur capacity ke vishay par agar dhyan de, to abhi kya demand hai in the annual and jo aap expect bhi kar rahe hain going ahead, and currently if we take you've mentioned four players' name, capacity-wise, sir, how do we rank and abhi further aapke jo competitors hain, unki capacity addition kya aa rahi hai aage?

See, we have almost 25% of the total capacity in line with other four. New capacity which is coming up, I don't think that anybody is putting up a EHV plant specially only for EHV.

There might be a dual purpose of manufacturing EHV and HT cable. Its quantification we will do, and we'll let you know.

Because what is there in the public domain that player like which you mentioned, Universal Cable, is also coming up with capex and setting up new capacity for EHV. That was the reason I asked you the question.

Sir, and then secondly, sir, in terms of the compounding part, the Synoplas compound or the PVC compounds which are required, are we sourcing it domestically, or are these imported, sir, especially in terms of the higher [unclear]? Sir,

some special high-voltage compounds we are importing, because nobody manufacture it in India. For medium-voltage and for low-voltage, XLPE and PVC compounds, we are manufacturing ourselves.

We have already done lot of backward integration in our company. We are almost manufacturing 3,000 tonnes of PVC every month, and close to 1,000 tonnes of XLPE compound, which is used in LT cables and solar wires and low-tension control cables within our plant.

Because they are also dominant players like Ddev Plastiks and are seeking empanelment from various players in the higher kV segment. Are we a customer to them, and thereby also as we ramp up to the higher kV in the EHV segment, they can be a prominent or a trusted supplier?

We are buying from Ddev Plastik our requirements for medium-voltage cables from 11 kV to 66 kV, but beyond these voltages, all the compounds are imported from Borealis or Dow Chemicals.

Right, right, sir. Lastly, sir, on the further capex which you just outlined for the 2,000 crore, can you give us some color which segments are you articulating the expansion?

Sir, if you could give me one one pending point was, sir, how is the demand-supply currently for the EHV capacity, which ever you are ramping up and other players also, how is the demand-supply gap currently and two years down the line also?

Sir, the demand for EHV cable is continuously rising for evacuation of power from renewable sources and new projects which are coming up in the power generation side and improving the transmission infrastructure. This really don't have, at the moment, any quantification of that, but we will try to compile the data and come back to you.

[Hindi speech] Theek hai, sir. Aur wo wala jo next capex hai, uska break-up agar batate, 2,000 crore ka?

It is on drawing board. It will be finalized in next six months.

[Hindi speech] Bahut dhanyawad, sir, aapka, and all the best to the team. Thank you, sir.

Thank you.

Good afternoon, sir, and congratulations for good set of numbers, and thank you for the opportunity. Sir, with over 2,100 dealers, what is the optimal dealer count, and how do you ensure dealer productivity rather than just expansion?

Sir, we are definitely not expanding the dealers too much. In this 2,500 dealers, the 2,100 dealers, I think around 100 dealers are very big.

Rest of the dealers, they operate in the small towns and small market B2C B and C-type cities. There the dealer size is are anywhere between 1 crore to 3 crore or 5 crore.

That is why the number of dealers looks like it's a But the significant dealers which, contributes 80 70% or 80% of the sale is within 100. We are trying to ramp up those dealers so that our distribution chain is improved.

Sir, how much incremental branding or advertising spend is planned to strengthen the retail push?

I think anywhere between 75 to 80 crore is our ad spend in this financial year.

Sir, last question from my side. The order book I think so you said is 3,928 crore.

What is the execution timeline, and how much will be converted in FY27 revenues?

Within three to four months is the timeline to execute these orders. These orders are quickly replaceable.

We just execute most of the orders in three to four months period, and only a few of it goes up to five months. Most of it are over in maximum four months.

These are replaced every month by new orders.

I appreciate you answering my questions, sir. Thank you and all the best for the future.

Thank you.

Hi, sir. Thank you for the opportunity.

Sir, my first question is on the domestic institutional sales for nine months, which includes 1,880 crores for cable and wire and 370 for EHV. When I'm

Hello. Sorry.

Is it clear now?

Yeah. Sir, when I'm looking at this domestic institutional sales number, which includes 1,880 crores for cable and wires and 370 for EHV in nine months, I'm looking at a 3% growth on a year-on-year basis.

Just wanted to understand that why are we seeing this low number for the domestic institutional sales, especially when our utilizations are also at around 75% for cables? What explains this 3% growth on the institutional side?

Actually, once the export is increased, the capacity is limited. These capacity has gone to the export market, actually.

Sir, why is utilization still looks

Utilization comes on the basis of the volume. As I said, that when we take the order of the copper, copper is three-time priced than the aluminum price.

That's why it does not reflect the true picture, actually.

Okay. Understood, sir.

Sir, secondly, just wanted to check, when we say the peak revenue potential of 12,500 crores on our existing capacity, this is based on the spot prices of copper and aluminum?

Copper price is close to 9,000 LME base price was there. At that time, 9,000 to 10,000.

See, copper price does not stay at one place, actually. Sometime it goes up, sometime it goes down also.

We understand your concern, and we are also using our maximum capacities in volume terms, and whatever reflection on the turnover comes by way of the prices, it will be reflected in our results also in the coming quarter.

Right. No, sir.

That is understandable. I just wanted to check that what is the risk to this 12,500 on either side.

As you mentioned that this is on the basis of $10,000 LME, this 12,000

Sir, first of all, I would highlight, since last five years, every quarterly or yearly concall, we are always giving the guidance of a 20% CAGR based on the capacity. Prices whether goes up, or even the goes down also.

As I highlighted that in '21 and '23, the prices were going down, still we were growing by 19%, 18%. In future also, it does not matter to KEI.

In last 15 years, our growth was close to 17% CAGR. In last 15 years, number of times prices has gone down, number of times the prices has gone up.

None of the year where we have not grown, except the COVID year of 2020-21. That's way we are maintaining a disciplined approach, irrespective of the price down also, we were growing in the past also.

In future, whenever we are talking of a CAGR growth, we are talking of a 20% CAGR growth irrespective of the copper going down, irrespective of anything. Because whatever capacity we are creating, whatever new market we are creating, like Anil ji to the start of the year has visualized that we should reach to the 20% export within one to two years' time.

We have already reached close to 17% in this nine-month period. We are working on our strategy.

We are not working on the somebody else' strategy. You see, it is not possible to grow quarter after quarter.

If you see, if somebody has grown in this quarter 50%, can he grow in the next year third quarter 50% or even he can maintain a 20% growth? It will not be possible, sir, because we are in industry since last 50 years.

We are growing this copper going up and down. We are continuously working towards the growth of the company, and we are participating in the industry.

We are the topmost company from the country, those who are exporting more in so many countries. We will remain focused with a growth rate of 20% CAGR, not for one year, but for five year.

That is from our side. Demand has no issue in the country, and neither demand has issue in the overseas market.

Sure. That's helpful.

Thank you so much and all the best.

Thank you, sir.

Sir, thank you for the opportunity. Hi, sir.

My question is on EHV segment. Once the VCV tower is commissioned in FY27, that will still be the prequalification period, right?

Very, very less, because we are already having experience of last 15 years in extra-high-voltage cable, it will be only a type test required to be carried out in the new plant, new facility.

Okay. Just a follow-up, and I'm seeing a shift towards the complex urban underground projects, like Universal Cables is doing that.

Currently, KE is focusing on this segment or only in high-volume exports?

Can you repeat this question, please?

Universal Cables is competing on urban undergrounding projects currently

Yeah.

underground cables, 400 kV cables.

Yeah.

Now KE is focusing on this cables or just

Yes. We have already executed more than 30 to 40 such big large projects all over India in last 10 years, and still executing in Mumbai, in Karnataka, in various states.

We are very well there, and we are already focusing on this. It's not that our focus on domestic market is not there, or an urban underground is not there.

We are executing a lot of such projects.

Okay. Thank you, sir.

Thank you.

Thank you very much, our investors, for participating in this conference call. I can reassure you that with the kind of business KEI has built up, and in terms of product approvals, product capabilities, and our strength of our management in terms of production, quality control, marketing, and our worldwide network, we will be growing substantially.

It was only the capacity constraint which was hampering our growth for last two years maybe as compared to our peers. With the Sanand facility now getting commissioned and getting ramped up, we will see substantially good results in fourth quarter and in the next financial year.

As each machine is commissioned one by one in a cable factory, it may take another one to two months to really ramp up the capacities, but we are on the track, and we'll be giving a very strong growth in this business in coming next three to four years with this new capacities coming up. Thank you very much for your participation.