Sir thank you for taking my question. I have a couple. After the expansion that you've announced further in Rajasthan, which will take your capacity over 6. Where does the additional clinker for your Punjab plant get s sourced as and when the a pprovals and permissions come through in the Punjab plant? That's question number one?
Please go ahead. I'll ask the second one.
I have a couple of them. One is you spoke about server opportunity that looking at data center servers. Could you highlight like what stage of discussion are we in? Wh at is the kind of work that we could get over the next, say, 12 months, 18 months here? Or is it very, very initial stage?
Sure sir. This is clear. Sir, my second questi on is I'm referring to notes to accounts 11, which talks about INR1100-odd crores, which is receivable from PLI and INR730-odd crores that is payable. Could you highlight the reason why this is like mentioned in the note? Is it something where government has not given approval? Like if you could just highlight what's the status there in terms of both our receivable and our payout to the customer?
Just 1 question. You spoke about RS.3,500 Crore cooling opportunity right now for data center out of it, you can do RS.1,000 Crore as an MEP contractor. Can you highlight of those RS.1,000 Crore, how much equipment can we source internally?
Sure. So basically, as a contractor, we are doing RS.1,000 Crore, which is the part of market?
Sir thank you for taking my questions. I have just one question. You spoke about packaging cost increase of INR20 already done and another maybe INR80 to INR100 in Q1 and there's another INR150 to INR200 of fuel cost increase. Sir, would that be it? I'm just trying to understand what is the kind of inventory of fuel that we have right now at the plants and does it fully reflect in Q1 or Q2 will see further inflation in that?
Sir, I fully appreciate that. The reason I'm asking this question is some of your peers have highlighted that they maintain between 60 to 75 days worth of fuel inventory.
My first question is in continuation of the previous participant. In one of the previous conversations, I remember you had flagged that in the initial period of CPCB IV+, you obviously expect to get more of the services revenue, because the so-called unorganized channel is not prepared to be able to service those engines? But over time, as they learn, some of this market share could start going away. Have we reached that stage? Or how do you see basically the services business growth from here on, given that we've already doubled that number over the last 8 to 9 quarters? That's question number one, Shveta?
That is very clear. Secondly, in your presentation, there's a statement which says the consumer price index remains stable compared to last quarter, which shows rapid momentum. Are you referring to commodity prices here? And in that case, how should we look at margins going forward, Shveta?
My first question is in continuation of the previous participant. In one of the previous conversations, I remember you had flagged that in the initial period of CPCB IV+, you obviously expect to get more of the services revenue, because the so-called unorganized channel is not prepared to be able to service those engines? But over time, as they learn, some of this market share could start going away. Have we reached that stage? Or how do you see basically the services business growth from here on, given that we've already doubled that number over the last 8 to 9 quarters? That's question number one, Shveta?
That is very clear. Secondly, in your presentation, there's a statement which says the consumer price index remains stable compared to last quarter, which shows rapid momentum. Are you referring to commodity prices here? And in that case, how should we look at margins going forward, Shveta?
I have a couple of them. First is when I hear your commentary on data centers, given that 40% of your power gen contribution has come from there, why do you call it a one-off chunky order? Like why do you not see this level of growth sustaining, particular ly in light of the kind of commentary we are seeing from different data center companies in terms of their plans for India. So just wanted to first get your thoughts on sustainability of this kind of numbers or growing for the data centers business.
Sure, ma'am. No, that's very clear. My second question would be, if we assume that some of those data centers actually do come through, is there any capability building that you would need to do here in India or we can actually import some of those and be suppliers? How do you see the India business preparedness for that level of data center installation in India based on, again, the recent news flow for some of the large developers?
I have a couple of them. First is when I hear your commentary on data centers, given that 40% of your power gen contribution has come from there, why do you call it a one-off chunky order? Like why do you not see this level of growth sustaining, particular ly in light of the kind of commentary we are seeing from different data center companies in terms of their plans for India. So just wanted to first get your thoughts on sustainability of this kind of numbers or growing for the data centers business.
Sure, ma'am. No, that's very clear. My second question would be, if we assume that some of those data centers actually do come through, is there any capability building that you would need to do here in India or we can actually import some of those and be suppliers? How do you see the India business preparedness for that level of data center installation in India based on, again, the recent news flow for some of the large developers?
Shveta, when I look at the last couple of years, while we've done very well on growth, we've also been very tight on costs, whether it is employee cost, we've been -- we've had a few VRS, etcetera. Now as you chart out the next 3, 4 years growth trajectory for the company, how should we look at cost for you? You think you are rightsized or we'll have to sort of rebuild capacity? How do you think about capex utilization? So I'm just thinking about best margins and best growth for the company in the last couple of years. How should that trend from a cost perspective going forward?
And in that context, what should we build in for capex for the next couple of years?
Shveta, when I look at the last couple of years, while we've done very well on growth, we've also been very tight on costs, whether it is employee cost, we've been -- we've had a few VRS, etcetera. Now as you chart out the next 3, 4 years growth trajectory for the company, how should we look at cost for you? You think you are rightsized or we'll have to sort of rebuild capacity? How do you think about capex utilization? So I'm just thinking about best margins and best growth for the company in the last couple of years. How should that trend from a cost perspective going forward?
And in that context, what should we build in for capex for the next couple of years?
Sir, my question is you have been giving guidance on volumes and as you rightly highlighted, you are not too far from that. But on the revenue front, we are significantly lower. We barely do mid-single-digit revenue this year based on how we are tracking. So, I just wanted to understand what is really happening on realization, because it is not only domestic, but even on the EXIM side, our realizations have been fairly muted this year. And in your expectation, because you are guiding for a pretty robust number even for the next three years, what is the assumption of realization increase that you have taken?
Sir, can I take the liberty of asking one more question?
Sir, just one question. While a lot has been said for the last few years about JNPT connecting to DFC and giving huge volumes. One, what is our preparedness? All these large container orders that we've placed, is that with the idea that the volumes will come to us? Plus, is there any rough calculation on what level of volume growth would come to just not you, but rail operators in general after DFC connects? Because I'm sure when you are placing these orders, you are doing some calculation on what kind of growth you are likely to get. So just some qualitative guidance would be good enough. I'm not asking for actual numbers.
So my first question is, I understand the impact of a depreciating rupee on your services business. How should we understand the impact of a depreciating rupee on your core EPC business in the light of margins? I mean just some broad guidelines would be helpfu l. That's question number one?
Okay. My second question is, similarly, while we understand that you hedge commodities, etc. But even in the commodity market, the movement has been quite drastic in the last couple of months. Are we able to hedge all of that? Or we could expect some bit of negative impact of that in the next couple of quarters or so? Those are the two questions.
This is Pulkit Patni from Goldman Sachs. Sir, my question is on cable and wire. And in one of the previous questions, you answered that we'll continue to invest in more capacities for cables and wires. My question is, when we speak to all the companies in this sector, everybody wants to invest more and more capital because at this juncture, demand is strong. But some of your large competitors are also looking at export as a big opportunity, and that becomes the plan B in a scenario that there is some slowdown in India. I just want to understand for our portfolio, which is more wire heavy, assuming a scenario of some slowdown in the domestic market, is export and opportunity, a, that we are exploring? Second, have we done some work in order to get some approvals from various countries and their utilities, et cetera. So it would be helpful to just get some perspective on your cable and wire export opportunity and anything you are doing on that regard?
Sir, my question is on overall cost for the company. So when I look at employee cost, that looks to be the growth seems to be under check after quite some time. So until 2024, we were expanding that cost. Last 6 -7 quarters, obviously, growth is not there, but we've also seen employee costs, etcetera, come down. Now is there a conscious effort for the company given the fact that growth has been quite seeded to look at some of these costs? And in a scenario that consumption was to come back, do you think as a company, we are rightsized right now or do you think we will have to sort of build on some of those costs? So what I'm trying to understand in short is how do you see the organization placed today in a scenario that there's an up cycle in demand that comes back after so many quarters?
Sure, sir. Sir, my second question is, can you highlight what are the portfolio gaps that we have right now? I mean when we look at your product portfolio, it looks to be very, very wide across segments. But is there any obvious portfolio gaps that you feel that you could fill over the next 6 -12 months, which could drive incremental growth? Or you think we are, by and large, present across most categories?
Just a couple. Firstly, you mentioned that copper price increase has been unprecedented and which is why you took the active call of passing it on in a deferred way. Is it also true that customer in that case would have had significant sort of restocking which means probably what typically plays out for a few days could have played out for maybe a couple of fortnight, i.e., in case copper prices don't move much, our Q4 numbers may be slightly negatively impacted because of this massive destocking? Is that a fair assumption?
Okay. So, it's not that there's unusual stocking that has happened despite copper price increase. That's how I should read that answer.
I've got a couple of them. The first is there are 2 thought processes. One is, okay, let me add capacity because I have the benefit of fleet availability being the largest player having access to fleet. So, let me add fleet and passengers will follow? And the second is because you have access to data way better than us, are you seeing the passenger traffic growth all sort of picking up? And my question comes because at least based on what we are tracking the growth is still sort of subpar relative to what we've seen. So, I just wanted to get your thoughts on what's driving this optimistic capacity addition? Is it saying we want to just go and capture market right now and then traffic will follow or we are actually seeing traffic demand or bookings being so strong? That's question number one, sir.
Okay. I'll repeat my question. So, my question is your capacity addition guidance, which is very optimistic. Is it based on some data and foresight because when we look at hindsight and the data that we have seen, the classic trends are not as encouraging? So just wanted to know your thoug ht process on that?
Sir, thank you for taking my question. So, first is on aircraft rental. We have seen a pretty significant dip in the quarter. But parallelly, the other income number has not really changed much. Now, our understanding was that as the AOGs come back, both your other income as well as aircraft rentals will go down as the damp leases go away. So, just help me reconcile whether the current rate of airc raft rental is going to sustain? And parallelly, how does this play out in the other income number?
Sure, this is clear. So, my second question is on yield. When you guide for yield, which will be flat on a YoY basis in second quarter based on what you are seeing today, this is what you see today or based on the assumption that it will increase through August and September?
Thank you for taking my question. I've got three of them. So first is Panipat refinery expansion. When should we expect us to see the benefit of those in volumes?
Two years to three years from now. Okay. My second question is, since you've shown the breakdown of logistics across various sub-segments, and our margins are for the last two quarters at 18%, where should these margins stabilize as the mix changes furthe r towards trucking as a segment? So just for modeling purpose, what should be the steady state margins for that business?
My first question is already answered. My other question is regarding the international business. So, as we look through multiple segments and Chemicals, you yourself highlighted, the Chinese are very aggressive. But when we look at In dustrial Infra and Industrial Products in the international market, how do you gauge our competitiveness? How do you see our ability to generate decent margins in those geographies? If you could just talk about some of those qualitative points where we are confident that this business will be reasonably profitable? That will be very helpful.
Yes. Thank you for that.