Thank you. Good morning, everybody.

Thank you once again for joining us on today's call. I trust all of you would have received our results and investor presentation.

Now let's move on to discuss the financial performance of TDPS for the year ended 31st March 2026. Standalone: our full-year total income on a standalone basis was ₹17.37 billion versus ₹12.88 billion over the same period in the previous year, an increase of 35%.

EBITDA on an annual basis is 18.14% including other income, excluding exceptional and treasury incomes, versus 17.46% over the same period in the previous year. Profit after tax and comprehensive income is ₹2.18 billion versus profit of 1.53 billion in the same period in the previous year, an increase of 42%.

During the year, the company has provided for the investment in the for the value of 30 million sorry, 30 million from the subsidiary DFPS, and with this the company has provided for 100% of the investment value in its subsidiary. Order book for the manufacturing segment is 19.73 billion, out of which 16.77 billion is the generator business, 2.47 billion is railway business, and spares and aftermarket business is 0.2 billion, Turkey is 0.29 billion.

Export and deemed exports, excluding railway orders, continues to be around 76%. Order inflow statistics: order inflow during the quarter is 6.66 billion INR, an increase of 61% on a Q-o-Q basis on the previous year.

Current year, the order inflow is 2 2000 sorry, 22.38 billion versus the previous year 14.78 billion, which is an increase of 51%. Export order inflow including deemed exports in the quarter is is 80% of our total, which is 5.28 billion.

Full-year order inflow from direct and deemed exports is 17.33 billion compared to 9.85 billion the previous year, growth of 76%. 79% of our total order inflow for the year is exports, while 24 21% is domestic.

An important point to note is the growth in the pending order for the year FY26 for generators and motors is 66% compared to FY25. Consolidated basis: our total income on a consolidated basis is 18.78 billion versus 13.02 billion, an increase of 44%.

Profit after tax and comprehensive income for the year is 2.36 billion versus a profit of 1.73 billion, an increase of 36%. We continue to maintain a strong cash position of 1.99 billion.

Now, they come to the market order book, market situation, and guidance. Market conditions and guidance: in general, we see a very buoyant market for TDPS in all segments of the business.

The basic factors that are driving growth continue to play out: AI data centers, grid stabilization, basic power generation, push towards renewables, which drive demand for geothermal, hydro, and waste-to-energy, etc. With all sectors in full force, we see a very strong order inflow situation continuing, and the focus right now is on execution.

While our manufacturing plants in India are not affected by the war, since we do not import from the Middle East and most of our contracts for our completed products are exports, unfortunately, one of our contracts in Turkey got affected by severe shipping delays of one lot of components on one ship from India to Turkey, and we had to take a high LD penalty on one of our contracts. This has reduced the margins for our console.

This is a one-off event where the customer also was exceptionally brutal with us. However, we put that behind us, and now we are heavily focused on Q1 execution, where, based on the progress so far, we see that we will do better than Q4 of last financial year.

Now let me come to the segments one by one. Steam turbine: the market continues to grow at the rate that we that we predicted, with no surprises both on the upside or the downside.

The market is steady, with around 10%, 12% growth taking place in captive power plant business, biomass, and waste heat recovery. Gas turbine and gas engine business: the massive growth in this segment continues to roll on without pause.

As mentioned in the investor presentation, we're getting large volume orders, and the forecast for next year continues to throw strong upward growth. When I say next year, I mean not just this year, but also for next financial year, which is FY28.

Growth is expected since our engine and turbine customers are also adding capacity, and these incremental numbers are resulting in demand for more generators. Notable orders are delivery to projects such as SpaceX, amongst others.

Hydro: we have a busy year ahead of us. This year will be one of the highest years for TDPS in hydro.

TDPS is very active in the refurbishment business in India and abroad. This segment will result in some high-value order wins for TDPS in this quarter and next.

Motors: the motor business remained a key focus area for us. However, during the year, last year, we prioritized our high-volume generator opportunities, given strong export demand.

We are now separating manufacturing lines, which will export which will improve focus and execution. We expect the motor segment to stabilize, and we see improved traction going forward.

Railway: we have nothing new to report. We have orders from the US market, Europe market, and Russian market, in addition to the Indian market.

We'll be supplying to all the three markets next year, and if one includes India, it's four markets. Finally, I come to the guidance.

We revise our guidance for FY27 at 2,400-plus crores, with an extremely high probability to increase our guidance further to match the rate of order inflow that we saw in Q4 and that what we expect in this financial year from Q1 to Q4. This brings me to the end my end of my initial remarks.

I'll now be happy to address any questions that you may have. Thank you.

Yeah. Hi.

Thanks for giving the opportunity, and congratulations on great set of numbers. Really fantastic numbers.

Mainly wanted to understand on the generator side, large generators. We are talking over here We have talked about capex expansion over here.

If you can provide some details as to which will be the end user application areas and what sort of customers would be there? Would this business be having higher margins?

Because typically large generators could end up having lower people on the competition side. From all around that will be helpful.

When we say capex, how large could be this capex and what kind of potential revenue can one expect from large generator business?

These are very good questions and I'm afraid I'm not going to be able to give you detailed answers for all these questions, but all the questions are very valid questions. I think in about two or three months from now, I will be happy to answer all these questions in full detail.

In general, what I can say right now, and that also alludes to the comments that are made in the investor presentation, is that we are now putting a lot of focus on the large generator business where we see our projections and our demand situation and our positioning in this market improving to the point where we need to take decisions to add capacity. When I say this, when we put up the large generator capability in 2012, '13, we had put up the complete capacity for manufacturing the stator line, but we had limited the investments in the rotor side because of the drop in the market demand 15 years ago.

Now, the we need to make up that gap. We are now ready to We need to invest heavily in manufacturing the rotors completely.

We need big machining capabilities, especially for larger machines, maybe all the way up to 200 MW size. This total amount of investment will we will we will discuss it in about two two or three months.

We're putting together the business plan, the numbers. We just wanted to give advance in- intimation to the market that this is going to happen on TDPS per side.

It's the initial intimation this is going to happen. Details will be given later.

End-user markets, I can just generally talk about it. It's going to be mainly export.

This would range once again, the basic end markets will be the same as what it is for our larger generators, let's say 40, 50 MW size. Once again, we'll be focusing on power generation.

We'll be focusing on larger AI data centers where we see a lot of demand now will be, in the future, it will shift to the larger sizes because it's definitely it's more efficient. We're also looking at combined cycle applications where large gas turbines would need steam turbine for the for the combined cycle for higher efficiency.

We are in a position now, we are in a fairly strong position in terms of taking those decisions that yes, we need to take put the money on the table to put up the capacity, and the market is is large. I'll I'll, what we can do exactly, what we can do and what we expect in terms of our ramp-up on the business plan, all these questions will be answered in the next quarter.

but yes, as I said, all the questions are good ones, and I'm I'm sorry today I'm not going to be able to address this with explicit answers, but the situation is looking good for the company.

Sure. No, fair.

Fair point. Just last question on the gross margin side.

Gross margins contracted QoQ, YoY. You mentioned there was some one-off.

If you can clarify it and will we see reverting that margins, gross margins once again to 35%, 36% kind of levels? See,

our gross contribution margin on a console basis has been hovering between 33% and 34% on an average, let's say 34% on an average. We are about 3% down from that in this last quarter.

We had a one-off event where we had a big contract from Turkey where we delayed generators because of component deliveries from India, which got stuck midway and could not get delivered for almost 1 and 1/2 months. We took a big hit.

We put that behind us. The customer also was pretty brutal with us.

It's a one-off event. We don't expect we don't have this kind of shipping in our scope in the future, we don't expect this to happen once again.

You can expect gross contribution levels to move back to the average historical levels.

Sure. Fine.

Thanks. That is from my side.

Thank you very much.

Just one follow-up question to the previous one. Sir, which are the large players already in the global market who are manufacturing these larger capacity generators?

There is The

Siemens is the global leader, by far. Then you have Baker Hughes after the acquisition of BRUSH.

They are very big in this business. Then these are the two big players on the Western side, and then you have on the Japanese side, of course you have Mitsubishi, Fuji Electric, Toshiba.

It's all these players are big players. The big [unclear], big energy companies, yes.

Got it. Sir, our move to enter into this larger capacity generator will this also serve the nuclear power segment as SMRs, small modular reactors, where the generators will also be required?

Will this cater to that segment as well?

It will definitely. The sizes would be appropriate to that segment.

It depends what you classify as being small. Right now, people are talking about 250 MW to be small.

We are focusing our business around let's say we're capping it around 200 MW range. If SMR comes in 200 MW range, yes.

All right, sir. Sir, that's it from my side.

Thank you so much, and congratulations on the good set of numbers.

Thank you.

Thank you for the opportunity. Sir, just one question on the capacity front, considering our order book has been growing more towards export piece of it and focusing on gas side.

Considering that, from the current capacity, how much of say peak revenue would the current facilities generate?

This year, we have a plan to invest around another 50 crores in capex, okay, in addition to whatever we did previously. This 50 crore, once again, will go towards adding incremental capacity in certain areas which we consider to be bottlenecks.

We'll be do investing approximately the same amount next year also in more a little bit more automation and again debottlenecking certain capacities and adding if adding small capacities in certain areas. So, 50 plus 50, say this year and next financial year.

This is not including the investment that we will have to make for the larger generators. That will be taken as a separate piece.

Coming to your question, we believe that we can go up to about 30 to 32 billion INR with our current capacities and with these investment incremental investments made this year and next year. We are basically covering what we believe we can do as sales for up to FY28.

Sure. Thank you.

Thanks.

Hi, Nikhil. Thanks for giving the opportunity.

Just on the supply chain part for example you gave, one of your plant example. On the data center opportunity, where are you seeing the execution delays?

Let's say from a turbine makers, I'm just trying to understand that given the demand is so high and you have given the guidance for this year, but generally, where is that do you see any supply chain challenges, any issues from the turbine makers, it's taking more time? Eventually, one, two quarters, there might be some delays in the, revenue side or the supply chain challenges side.

If you can throw some light on that.

It's actually just the opposite of what you're saying, completely the opposite of what you're saying. It's been 180° reverse.

We have our turbine customers and our engine customers monitoring on a weekly base twice a week basis our deliveries, and are taking the machines as soon as they're ready. We are being very, very stringently monitored on execution.

Even a three-day delay, four-day delay is being severely questioned by us by our customers. It's a totally reverse situation.

There's a lot of execution pressure from our side. We are not having a single machine sitting in our shop waiting for it to move to the customer on this on the gas side.

Got it. Great to hear that.

Just last question from my side. On the client addition part, barring let's say the Baker Hughes or GE, how do you see the pipeline here?

Do you see more outsourcing going forward, given global guys are getting choc-o-block completely? Do you see that case of upsizing only over the next two years, or do you think now whatever the orders have been come have come, they will also see how the ramp-up happens and the next cycle of ordering starts happening after one year, just on the direction side for the next two, three years, how are you seeing it?

There are limited number of prime mover manufacturers in this business, right? It's not and there's no possibility for new entrants in this business.

This market is now completely determined by the capacity on the prime mover side. When I say prime mover, I mean engine and turbine side.

If let's say there are x number of engines, then you need x number of generators. If it becomes x plus something, then you need x plus something on generators.

This is what's happening. Now our customer turbine customers, engine customers are, on an average, planning to double capacity by 2030, some a little bit more, some a little bit less.

You can say everyone's doubling capacity by 2030 and doing it in steps. We've we're seeing this incremental From this point of time, we've be seeing incremental improvements in our outputs also to match with the larger number of turbines and generators which are coming in sorry, turbines and engines coming into the market.

This is in general as what I can say is the is a trend. Of course, on a year-by-year basis, there could be a little bit ups and downs.

In terms of the investment decisions and the momentum of the and this this this whole capacity addition from our from the prime mover side, that's something which is already in play. I don't think that that's going to come to an end because or that's not going to stop because it's such These are These huge companies, large very large organizations, and once they start doing something, they don't stop.

They just go through it.

Getting it. That's helpful.

Thank you, Nikhil, for this.

Thank you for taking my question, Nikhil, and congratulations to the team on the performance.

Hi, Ganesh.

Hi, sir. Yeah.

Nikhil, just to be clear because of the escalating commodity prices and we because of in certain geographies, for example, there have been some disruptions because of gas availability, etc. Just to be sure, we have are we facing any impacts from this and did we have to do anything to mitigate it?

One is increase in commodity prices. It's been pretty drastic on copper.

Our hedges are normal now running out. There is this We are in this phase-over period where new prices with some of our customers are kicking in, some of the prices are not kicking in.

Overall, I think our margins are going to be generally stable because we are also with, the high export exposure that we have, there's a certain amount of benefit that we also get from the devaluation of the rupee to the extent of maybe the evaluated addition that takes place in India, because we also import a lot of materials. Those are kind of currency neutral from our point of view, because we import in dollars and euros and then we have to export in dollars and euros.

so, overall, I would say neutral, Ganesh. There is no doubt that there is the commodity prices are copper at $14,000 is high.

The increases in prices that we have now, talking to some of our customers are also now approaching double-digit levels. Let's see how it plays out.

I see for the next two, three quarters, I don't see any major disruption to our margins guidance.

Nikhil. That's very helpful.

We've already ramped up production to about 590 crores this quarter. When I look at the employee expenses, they've been largely stable quarter-on-quarter.

I just wanted to get an understanding on how we should expect this to move next year as you ramp up.

We have largely employed everyone that we want to. There could be incremental increases, but no major increases taking place from this point onwards.

Okay. That's clear.

Just my last question is I think the last time we've discussed that we were in conversations with a larger OEMs, and there were also prototype submitted on the higher megawatt. I know we're not expecting revenues anytime soon.

Any updates on how the prototypes are performing and how the conversations are evolving?

No, I I'm not going to answer that specific question, but I think you have to refer to the overall remarks that I made about the large generator business in the earlier part of this call, Ganesh. I think you need to look at it from that perspective instead of a specific customer perspective.

We are taking those We are going to be making the investments to get into this market in a big way and start supplying into this market in a big way. The only only thing I can say as much as I did not say a little bit earlier, which I have to give a little bit of caution, is that the investments that we have to put in for these large for large machining capabilities, let's say large lathes or large machining centers, and so on and so forth, those will take 15 months right now under the current under the current environment to to buy and to install, between 15 to 16 months.

Because as I mentioned a little bit earlier, everyone's expanding, right? Everyone on the prime mover side is expanding.

All the machine tool manufacturers worldwide are full with orders. We are basically coming into this capacity expansion thing on our larger generators a little bit late compared to others.

We have to wait. The earliest that we can put in our complete capacity would be something like end '20 end calendar '27.

We'd be looking at the big ramp-up taking place in our large generator business only in calendar '28. Being Meanwhile, we'll continue to supply with whatever existing capacity that we have.

We have started making commitments to the market on our larger numbers from calendar '28 onwards, which would basically be FY29.

Got it, Nikhil. Thank you, and good luck for the rest of the year.

Thank you.

Thanks for the opportunity, Nikhil, and congratulations for a great set of numbers. On this large generator piece, is the technology and the capability being driven by the UK R&D center that we had set up, started set up a year ago?

Very much so.

Okay. Will there be any royalty or any sort of payments to that entity?

Just thinking out loud there. No,

it's our subsidiary company, 100% subsidiary company.

All right. Does the customer profile change with this larger generators?

Yes.

yes and no. it's the same set of customers buying larger machines.

See, everyone prefers to buy larger Basically, end users prefer larger machines because they are more efficient. Today, with there's a limited number of larger machines available, so that's why they are forced to buy the smaller machines.

In general, larger machines are more efficient, far more efficient than smaller machines. That's the preference from the customer's side always.

All right. That's it from my side.

Thank you.

Hi, Nikhil. Sir,

Thanks. One of the large customer for generators being INNIO that works with Waukesha, recently filed prospectus in that prospectus they said they want to triple capacity.

I can hear him. It's fine.

He can continue.

They said they're going to triple capacity. I just wanted to understand how that dovetails with your plans.

I think you said double capacity by 2030, but I said

what I said exactly, Karan, was I said that on an average it is double, some more and some less is what I said, okay? I knew I know about INNIO's plans to triple, but I didn't mention any specific customers.

I said on an average it's double, and I said some are more and some are less.

Your share of wallet on average across the doubling of capacity that is happening, is it assumed to be going up?

We have a very specific forecast and a capacity agreement signed with INNIO where it goes up to 2030. I'm not going to disclose those numbers with you, but it's extremely exciting for us, and we are very deeply plugged in with this customer.

I guess my broader question is are you gaining share across the group and if so, why?

What would be the I'm not going to answer that question. We are deeply plugged in with INNIO in their capacity expansion.

We have a capacity commitment agreement signed with them, and the numbers are extremely good for us.

Got it. Congratulations.

Thank you.

The question I had was that with global gas turbine you know all the gas turbine OEMs taking price hikes given the kind of demand that they have in order backlogs, are you seeing that kind of pricing power in large in the specialized generators and could that lead to sustainable gross margin expansion for TD Power? We have it's difficult to

it's difficult for us to get better pricing than what we currently have, Aditya. We have decent pricing.

We have currency tailwinds. We have price variation clauses for raw material variations.

We're not going to make the same kind of money that the turbine guys make. That's clear.

Okay. Another question I had was on the nuclear side.

Y'all have got orders from NPCIL for induction motors and India pushes 100 GW nuclear target by 2047. What is the competitive landscape in terms of OEMs that are qualified to supply induction motors to NPCIL, and do you see this as a big revenue growth vector for TD Power going forward?

NPCIL ordering is while there's a huge number of number, in terms of gigawatts which is planned, the actual ordering and implementation is slow and it tends to be choppy. I can't put a number on it, because the process for nuclear power plant construction is very slow.

New capacities will come online, it's not going to happen in a with a big-bang approach. Market is large.

There are also domestic competition. There's BHEL, there's Crompton, and there are also imports.

It's not like we are that we have a monopoly in this sector. It's competitive.

Okay. Got it.

Thank you. That's it from mine.

thank you for the opportunity. sir, congratulations on a great set of numbers.

sir, what I wanted to better understand you spoke about aeroderivative engines or you wrote about it in the last presentation on a you know prototype version with one of the customers. could you give some update on what's happening there in terms of what is the progress we have made?

I think Ganesh asked the same question a few minutes ago.

Oh, my apologies. It was Apologies, I I I Oh, okay, sure.

No, thank you so much,

yeah. Thanks.

I just answered the same exact question,

Yeah,

I So, I stick to whatever I told Ganesh a little earlier.

Sure.

Thank you. That's it, yeah.

Hi, am I audible?

Hi, good afternoon and congrats for a good set of numbers. First question is on the trade receivables part.

We are seeing the growth in the trade receivables is outfacing the top-line growth. Is there any specific reason for that, and how much of the outstanding trade receivables on 31st March are recovered till now, sir?

Subhashree, can you take this question, please? Yeah.

the outstanding trade is has been completely covered.

700 cr receivables are completely covered till 14th May?

Yes.

Understood. Secondly, on the cash flow conversion, how it's going to be going ahead?

Most part of the billing will be see end of the financial year itself, or we will be looking to improve that thing?

No, actually, can you clarify your question?

Because your question is

I don't understand your question.

Conversion of EBITDA into CFO, and it's nearly 21%. How we are looking to improve the things?

That's what I'm asking.

Improve the?

Conversion of EBITDA into CFO, cash flow from operating activities.

That will happen. See, we are growing, we need to build in inventories and all, and those inventories will get built during the quarter, and these are short-term orders, we need to have a lot of inventories.

They'll convert it into cash flows in the next quarter.

I think we just had to look from the perspective that we did 18 billion 18 billion last year, now we're projecting 2,400 24 billion plus, at least 33 So, it's taking in All our retained earnings are basically going into working capital.

Understood, sir. Understood.

I think that is from my side, and thank you, and all the best for the future.

Hi. Congrats on a good set of numbers.

I just had one question on the domestic steam turbine segment. If you could just give us some color on what would be the growth for this year in terms of the commentary you've had with your customers.

Vinay, can you take this question, please?

Yes. Hi, Ayush.

I'm Vinay. Domestic steam turbine market is growing steadily, and as we have told in the presentation, we are expecting 10% to 12% growth.

The sizes of the machines are shifting to the larger from 30 MW up to 60 MW range. We are seeing a steady growth.

12% for the

Hello, Ayush. Are you

Yeah. Also, if you could just help us with what percentage of revenue comes from this segment?

This segment on the overall turnover of TDPS?

Yes.

Steam turbine is around 25%.

Understood. All right.

Thank you so much. All the best.

Welcome.

Thanks for the opportunity. Just a clarification, did you mention that 25% of revenues come from steam turbines?

to be repeating on this.

Yes. That's right.

Okay. Could you give similar numbers for gas turbines and gas engines, each of them?

I don't know whether we

actually, generally we don't give Vinay Generally, we don't give split out because it changes year to

year,

quarter to quarter, and we could have something more from the customers, we could have it skewed. We don't want to give explanations every quarter as to why something we did more or something we did less.

It's Generally, we don't prefer to give these numbers.

Absolutely. On the large generator side, is there a particular anchor customer that, you have very high confidence on

All questions after three months, please. I'm not going to be able to give more details than what I gave, except that we are going ahead with this plan.

Sure. On the presentation, you've mentioned that you've received volume orders for gas turbines.

Is that this will be small generator range?

These would be below 50 MW range, yes.

Okay. Finally, can you give us a broad sense of what your typical RM basket looks like, just a broad sense?

RM what? Copper, forgings, electrical steel, mild steel, insulating materials.

What would be the share of copper in our

can't?

Okay. Thank you so much.

Thank you for the opportunity.

Thank you.

Congratulations for excellent numbers and there are many investors who have just started tracking the company, don't mind the questions, sir. Just wanted to understand the opportunity size and for our sector, especially in AI and data center space, and how long can it go up, and how sustainable are the numbers, sir?

Our differentiator, sir, especially this JV's collaboration we started out and how is it differentiating us, sir? Thank you.

The AI data center market, power requirement for the AI data center market for the US alone is projected to be somewhere around 100 100 around 100 GW in size. The expected time frame to address this installation of this capacity is going to take five to seven years.

This was only the US market, and there's other parts of the world which are also going to be adding data center capacity, this number could well go up to at least double the size. There's going to be a fairly long cycle in terms of capacity or the power requirement from the AI side.

This is only AI. Of course, there is traditional power generation, there's oil and gas, there's renewables, waste-to-heat energy, there's hydro, there's geothermal.

There are a lot of opportunities right now for the company in different segments of the business. Today, of course, AI is the most exciting part of the market, but we're not ignoring other parts of the market.

Our differentiator,

We have been working with these engine and turbine OEMs for a long time. This is not something when this boom started and our turbine and engine customers were in the middle of it, getting large amount of orders, since we had established long relationships with them, we also were in a position to get benefited from this boom.

Let me put it that way. What is our differentiators?

We have had long relationships with these customers, and our differentiator is high quality, extremely on-time deliveries, extremely good service network, and of course, we offer very competitive pricing. We built these relationships over a decade or more, and we continue to grow and deepen our relationships with these customers.

About Turkey plant, is it anything about in any way due to the demand, big demand? Are you planning to

Turkey is only for Turkey, and we have small orders over there, and we continue to use that plant primarily to make these small machines only for the Turkish market. As a backup, it also serves as a service shop for us in case we need to use that facility to address our larger population of machines in the European market.

I remember there was an incident

Yes. Hello.

I had a question on the order book. Currently we have around 19.7 billion worth of order book.

What will be the execution timeline for this, and how do we see order book growth in FY27?

Vinay, take this question, please.

Then I will All the 2,000 crores or whatever is there in the pending order will be executed this year. Order book growth, we have not given the guidance for next financial year, which is FY28 as yet.

I will give the We're seeing a growth in our quarter-on-quarter inflow numbers. They will grow.

Maybe, I think on an average, we can say conservatively we'll definitely be able to grow 20% to 25% even next year over this year.

Understood. The next, I just wanted a clarification on the revenue guidance.

I don't know whether I heard it correctly. You mentioned that in FY27 we can do around 24 billion of revenue, and by FY28 we can reach 32 billion.

Is that correct?

I said that we have a capacity to address 32 billion for FY28, yes, but that is where management is also expecting numbers to be. On a conservative basis,

yeah. And 24 billion for FY27, right?

Yes, that's the number for '27, 2,400-plus. All right,

and our margins would be in line with what we've done in FY26, just better because excluding the one-off event in Turkey?

Yes.

Perfect. Thank you so much, sir.

Thank you so much for the opportunity. Really congratulations for great set of numbers.

My only question would be, what are the major challenges you've faced in the business? What are the major risks you see going forward that would be detrimental to that us achieve the numbers?

We are under tremendous execution pressure at the moment, the factory is running very full. This kind of very high capacity utilization always presents the risk that if there are breakdowns in any of the production equipment, then you would have production delays.

Of course, we have a lot of total preventative maintenance, and we have a lot of things that we do in our factory to avoid those kinds of things. If you ask me about the risks, high factory utilization is always a high-pressure event for everybody.

That's where we are, and that's where we will continue to be. We don't see the situation changing for us at all, this is a new normal for us, and we have to deliver, and we will deliver.

Nice. Another question would be that's all.

That's all for now. Thank you so much.

Thank you.

Sir, one basic question with respect to how many generators are required per turbine? Is it always a 1:1 ratio, or one turbine can have, say, more than two, three generators?

What's the general industry trend?

One turbine, one generator. One engine, one generator.

Understood. Sir, next question is with respect to your hiring of a new CEO for the first time in TD Power.

Sir, what capabilities he brings to the table and what kind of vision we have? I think it's mainly with respect to the larger capacity generators, right, if I'm not wrong, sir?

Deepak is there on this call, maybe it's a good time to introduce Deepak. Deepak has joined us he's on this call.

He's joined as the CEO of the company. He is not been brought in just to look after the large generators.

Of course, he's come from L&T-Mitsubishi, which makes the large generators in Gujarat. They has a strong background with the large rotating machines.

He's previously worked in GE, and he's got extensive experience also with smaller machines. Deepak is going to come in as a number two in the company, and his role is to be in charge of all the activities of the organization and to assist me with the growth of the organization.

I'm really happy to have him on board. Deepak, if you would like to say a few words right now, it's a good time, since people have asked about you.

Hello?

Sir, I cannot see anyone with the name of Deepak connected. Oh,

okay. Deepak's not on the call.

Right. Maybe he logged out.

That's the background about Deepak, and as I've been saying this in various investor meetings, one-on-one basis, TDPS is definitely moving towards professionalizing its management. As we grow, as we scale up, as we get into different kinds of businesses, we need to have top professionals in our organization to manage the business in the future.

Increasingly, we will see more professionals coming in, high-quality, highly capable people coming in at the senior management level to take on larger roles in the organization, to build the systems, to make the company more efficient, and to organize ourselves better for the growth that's taking place. This is a process which is going to accelerate as far as we're concerned, and you will see in the future that we'll be doing this more.

That's the direction in which the management is going to go. It's going to become a professionally managed organization in the future.

Perfect, sir. Thank you so much.

That's a great strategic move and very happy to hear this. Wish you all the best.

Thank you.

Hi, thanks for the follow-up. Sir, although you answered it before, but maybe I missed that.

On the margins front, considering the cost impact we are seeing right now on the commodities side, although you mentioned two to three quarters we will not be seeing any impact, but structurally how is it going to impact our margins? Have you any view on that, sir?

Look,

we have built-in protections into our margins as much as we can. That means one is through hedges, raw material hedges, through price variation clauses with our customers.

Everything, but when there's a sudden spurt in commodity prices, say in a week or 10 days it goes up by let's say 10% or 15%, whatever you do is not going to be enough to protect yourself against those spurts. Customers are not going to react by changing prices in a week or 10 days, but you have to start but you have to buy materials.

If the hedges will give you some kind of buffer for some time, but then at some point of time, if those prices persist in the market, then once those hedges run out, then you need the higher prices from the customers. As I said, that there could be some small lag, but I also said that we have some tailwinds from the foreign exchange side.

Overall, I expect us to be fairly neutral, and I don't expect a big impact on the margins. If the commodity prices again go up in a big way, another 20%, 30%, then we have to see what we have to do.

Current situation is manageable, that's

the thing. Current situation is manageable.

Thank you, sir. Thank you very much.

Yeah. Thank you, everyone, for joining us on this call.

If you have any further questions, please feel free to get in touch with our management team. I look forward to interacting with you and meeting many of you face to face in some investor conference.

Thank you very much.