Right, sir. Sir finally, any guidance you would like to give for EBITDA per ton growth or maybe also for the oil business EBITDA per KL, any guidance you would like to give for FY '26? Ramesh Iyer: So in terms of oil division, the volume growth we are looking at about 6% to 8% and EBITDA guidance is about Rs. 5,000 to Rs. 6,000 per KL. In the conductor division, we are looking at a volume growth of about 10%, and EBITDA per metric ton of Rs. 30,000 plus tailwinds on a 12 months basis. In case of cable business it would be value growth of 25% and EBITDA range of 10% to 12% on a 12-month basis. Amit Anwani: Thank you, sir. Thank you so much for taking my questions. Moderator: Thank you. The next question is from the line of Jayesh Sundar from Axis Mutual Fund. Please go ahead. Nitin: Hi, sir. This is Nitin here from Axis Mutual Fund. Sir, just one question on the non-US business. You articulated your context, I think, over the last two, three quarters that competition is really increasing from the Chinese players in the non-US market. But how are you thinking about it? Because it's also a very decent piece which is coming down quarter-by-quarter. So is there something backward integration or localization or putting a subassembly there helps you? I just want to know how as a promoter you are thinking about it. Will it structurally keep perennial issue? It keeps coming down only now. There is no chance of recovering back. How one should think about this business, if you can throw some light on the non-US part. Chaitanya Desai: So the thing is, with the Chinese government policies, we have seen in the past also, at times they have kind of subsidized the aluminum and steel in China. So that has given the advantage at that time. But these things go in cycles and cannot be predicted. So, we do not want to kind of do any backward integration or any such thing in China because, again, we may not be able to have that sustainable advantage. It's all dependent on how the Chinese government policy is from time to time. Kushal Desai: On the contrary, we are looking at, and we had mentioned this in the previous earnings call as well, and we have gone ahead to appoint advisors to look at manufacturing in the United States. And so that exercise is actually going on. Because not only do you have tariffs and a potential tariff overhang, but there are certain projects which are being executed. And there are certain public utilities in the US who want to buy only US-manufactured products because of the way in which they get compensated etc., etc. It's a very complex sort of network in the US. And there are customers who pay a premium for immediate delivery, very short notice delivery. So that exercise is going on. So rather than looking at backward integrating and doing anything in China, we are looking more in terms of wanting to produce and expedite production in the United States, given that market is such a large market, and will continue to be a large market over the next decade or so. Nitin: Sir, the CAPEX which you have announced, does that entail a picture of putting something in US as well? Or that will be fresh investments that we should look this year announcement should come, or how are you thinking about that? Kushal Desai: So this current investment is all the investment that's going into our existing manufacturing plants in India as well as there's a piece in the UAE for our oil business where we are putting in some new tankage and stuff over there. So it's all in our existing manufacturing facilities plus this greenfield facility coming up in the cable side. So the US will be something that will be over and above this. And then the growth numbers would be also different, wherein there will be additional growth to support that investment. Nitin: Okay. Now why I am asking this sir, sorry for again now pressing on this because there's a recent agreement that happened with China as well, the FTA between the US and China. Can you throw some light, because now the articles are not out yet which product gets about 25% or a 30% duty versus us. Can you throw some light if when we send a conductor from here to US versus what China now will send to US, has the duty arbitrage has become very narrowed down or still the arbitrage is 20% to 30%? Kushal Desai: So if you see, what has happened is that everything has reverted back with a 10% delta to what was existing. So there is an additional duty of 10% which is put on every single country, right? And in the case of China that additional is 30%, because previously the delta between others and China was 20%. So what the Trump administration has done is, they have recalibrated back to whatever deltas were there with a 10% increase. So that is what is happening in this 90-day period. I guess the Chinese 90-day period is a little bit different than the rest of the world because we were from maybe 9th of April onwards to put this in place. But otherwise the economics, I do not think that there is anything more favorable going to come into China relative to India, that Delta will probably remain, and the signaling is that it's going to remain at 20%. Nitin: So basically I was asking this only that going forward the US itself will become very important for us and non-US will now face a perennial issue until unless you feel that you set up a plant in US, which can cater to the other parts of the world at a less cost. Kushal Desai: So the plant in the US, will look at catering to the US, and especially those utilities which buy US, products and which work on short deliveries. What Chaitanya has mentioned is that, even in the past the Chinese have done this, in the last 15 years, this is the third time that they are subsidizing by this time a lot more by 8% to 12%. But that adds up in multiple billions of dollars. The way they do that is they subsidize the price of the metal for our industry, there are other ways of subsidizing for other industries. So that bill becomes a massive bill over a period of time. So they have after doing it for X number of months or up to a year or year and a half then they pull that off and then again you have a period where the Chinese people then, are not in a position to compete as much. So we believe that these sort of cycles of subsidy are there to meet a certain objective and when the bill becomes too hefty then it gets reduced. And we have seen that happen twice before in the last 15 years at least. Chaitanya Desai: I will also add there that a lot of this is because the Chinese government has tried to help their manufacturers who earlier had a decent market in the US, and then finally they were out of the US, market. So then to help them to penetrate the rest of the markets this kind of subsidy is being given. So if suppose things may at some point not be, so difficult for the Chinese manufacturers in the US market, then it is possible that subsidy may also get reduced out. But we can't say for sure what will happen exactly as of today. But this is one of the reasons we were given to understand from people that we have been talking to in China. Nitin: Got it. And sir this last question on the guidance of EBITDA per ton, I mean, this has become the very difficult number for us to predict but given the Rs. 30,000 per ton kind of a guidance next year, plus the tailwind, what Ramesh said, generally you know your order book of conductors from the very first day. It's just when what gets executed becomes difficult, right, to assess in which quarter. And in the current order backlog, is it safe to assume that 40% to 45% is still premium? And that's where, at that premium level, this guidance of Rs. 30,000 per ton is given on an annualized basis. Ramesh Iyer: Yes. So the way the guidance has been given is based on an estimated number for 12 months. And a lot of it, we do not have an order book as of now, but it's more of medium-term guidance that we have given, because the pending order book that we have also has some deliveries that may fall beyond FY '27. About 20% of the pending order books are those deliveries that can happen after FY '26. And we, at the same time, we also get a lot of orders during the quarter, and that has to be executed in the quarter. So typically, it's very difficult to estimate EBITDA for our line of business, and we have always been saying that we need to look at this EBITDA on a 12 monthly basis rather than on a quarterly basis. But based on the premiumization and the mix changes that we have worked out, we feel that any time it could be anywhere about Rs. 30,000 plus tailwinds. That depends on the kind of product mix and the geography mix that we do. Kushal Desai: So you see last year also, there's been, because of the election year and things, a lot of HDLS and upgrade projects did not happen. They are also in the process of various tenders have come up, etc., etc. So if these premium things keep on happening, then if you saw, we had said that if you take a five year period or an average, we were talking about Rs. 25,000 to Rs. 26,000, then we upgraded it to Rs. 27,000 to Rs. 28,000. Now with the mix of products and what we see, we can further upgrade it to Rs. 30,000. So as more and more time passes by on the execution of these things and the visibility on these things, then I guess we would be in a position to then keep revising the guidance. But Rs. 30,000 is a guidance which, as Ramesh says, it's a medium-term guidance that you can work on.

Got it. That's very helpful, team, and all the very best. Kushal Desai: Yes. Thank you. Moderator: Thank you. The next question is from the line of Sagar Dhawan from Valuequest. Please go ahead. Sagar Dhawan: Yes, thanks for the opportunity. A question on the domestic conductors business. So we have seen a strong growth in the domestic business, about 64% growth in FY '25. Just wanted to understand going into FY '26, what is the outlook and what could be the drivers for growth to be able to grow from a very good growth we have seen in this year already, the domestic conductors business? Kushal Desai: We look at the growth thing more from a blended totality point of view. The domestic business has grown 64%. What we look at, what is the higher EBITDA per metric ton, whether it be domestic or exports. And based on this thing and also based on our factory utilization, we are kind of executing the orders. So I would say that we will more be guided with a blended growth rather than looking at domestic and exports for the division. Sagar Dhawan: Understood. Just a follow-up. Just based on the demand environment that you see in the domestic market today, would it be fair to assume that next year as well there could be a double-digit sort of a growth or any number on the, purely on the domestic growth outlook? Ramesh Iyer: Yes. So the market outlook looks positive with the kind of transformation capacity and transmission line that is needed. And based on various documents that is there for 2030 till 2031 onwards, the market outlook is positive. Our growth will largely depend on where the higher margin for your metric ton is there. And accordingly, we will allocate capacity either to domestic or exports based on the profitability that we get out of the orders. Kushal Desai: If I may just add to Ramesh's, like, we have grown by this percentage. As you saw in the opening remarks, that the transmission network has grown only by 2%. The transmission line network, because of various right-of-way issues, the election period, there's been a lot of manpower shortage also. During that whole election period, there was a big manpower shortage, etc. So if these plans are executed, and we can see that several very, very mega solar projects are coming up. Solar, wind, and hybrids are coming up. If the pace of the transmission line additions start increasing, then you will see even further levels of growth. That's one of the reasons why we have been quite aggressive in terms of wanting to add the CAPEX in place so that we can proactively get after the demand rather than react to the demand. Sagar Dhawan: Understood, sir. Just in terms of the CAPEX that you are adding on the conductor side, you said Rs. 300 crores. How much of capacity are we adding in terms of metric tons per year by the CAPEX? Kushal Desai: It could be about 10% will get added. So about 25,000 tons, but this 25,000 tons is capable of being made for all the premium type products as well, so you have HPLS, you have CPC, all of those high-end products can be made with this 25,000 ton expansion. Sagar Dhawan: Got it. And one last question from my side, what would be our market share in the domestic conventional conductors market and in the AL-59, if you have the numbers off-hand? Chaitanya Desai: It's about 25% or so.

Understood. Thanks. Thanks for the taking my question. Kushal Desai: It would be much higher than the HPLS and those premium types. Yes. Sagar Dhawan: Okay. Thank you. Understood. Thank you. Moderator: Thank you. The next question is from the line of Maulik Patel from Equirus. Please go ahead. Maulik Patel: Yes, thanks for the opportunity. Kushal bhai, I have never seen you so much bullish in the last 15 years of tracking you. Given that you are spending close to Rs. 1,300 crores over the next 18 months, almost 50% higher than what your current gross block is at, and you have summarized your optimism that various government schemes and the CAPEX which is driving that. I have just one question on that. How are you going to fund this CAPEX of Rs. 1,300 crores? Because we have never done this kind of CAPEX in such a short period of time over in our history. Kushal Desai: So, we just had discussions at the Board level itself on that. And the plan is to do Rs. 650 crores coming from our equity and Rs. 650 crores coming from a long-term debt. So, we will use a one-to-one equity-debt combination to fund this. Maulik Patel: Got it. And the second question is that, in terms of, see, look at that when you had hardly any margin in Cable, 10, 12 years back, now you are almost Rs. 5,000 crores of top-line and 10%, 11% margin. Cable was hardly contributing anything to the operating profit at that point of time and now almost 30% plus. Where you are at and the way your CAPEX plan is that you want to bring Cable from Rs. 5,000 crores to Rs. 10,000 crores. Are we going to see more and more of a Cable Company in the future than the other two? Obviously, today, the conductor EBITDA is relatively on the higher side and probably sustained for the next one or two years. But eventually, in the next three to four years, the mix will be much more towards Cable and less towards other two businesses. Is that what you think about the business? Kushal Desai: So I think, Maulik, our position is that we want to support all the three businesses, be agnostic to supporting one business more versus the other. I think we did that raise, the equity raise in November of 2023, simply because we wanted a stronger balance sheet in place to allow all the businesses to grow on their own merit. So, whereas we see that the cable business has the largest addressable market, and as a consequence, as we are also growing from strength to strength in terms of all those specialty products, specialty applications, the conductor business itself, being 50% of our revenue, is also growing at a fairly rapid pace, all over the world, transmission lines are to be added. So, we are equally bullish on both of those businesses. Within the oil business, the transformer oil business is also growing at double-digits. It's the other lubricant pieces which are growing relatively slower, and we are quite happy with that, let it be at whatever, and this still growing more than the market is doing. So, I do not think, as a management, I do not think we are looking at supporting one business more than the other. We would like to support each of the businesses on its own merit, and as long as it makes economic sense to invest in that and grow it, we are going ahead and doing it. So, you will see the cable forming a larger percentage of the total revenue because it is going to grow at a faster pace than conductors, and the oil business will probably be at the slowest pace of the three. Already, in FY '26, you will find the cable business being larger than the specialty oil business in terms of revenue.

No, I think profit it is already much larger than the TSO segment. Just one question on the net earned balance sheet. What is the acceptance on the books at the end of FY '25? Ramesh Iyer: It's about Rs. 3,500 crores, Maulik. Maulik Patel: We remain the same, right? I think, compared to last year, the number has been pretty much stagnant. Ramesh Iyer: Yes. Because we have deployed a lot of cash into cash purchases, the available profits have been deployed into cash purchases, and that's where as you know. And also, the earlier statement that we talked about the funding of that, half of it will be debt and half of it will actually be internal accruals, just instead of equity. Equity actually meant already the internal accruals or internal cash that we have on our books. So, currently, all this cash has been used to pay more or get purchases on cash basis. And therefore, as you rightly said, the acceptance level has increased. Once we deploy money of this cash into CAPEX, we will see a higher acceptances going forward. Maulik Patel: You really see the higher number on the acceptance side next financial year? Ramesh Iyer: Yes, as the money will get deployed into CAPEX, that is where it will get funded from. Kushal Desai: But you will also see in the actual working capital management that we have grown the business and reduced the number of days that we use the cash. It's almost down by a week, seven to eight days, overall. So net working capital is also down seven to eight days.

Got it. And just last question, if you allow me to, we heard earlier that some of these EPC players like KEC which has gone into and set up the conductor plant, right, own captive consumption. And I think Adani was looking to, and they acquired the Diamond Power, and they are also adding it. Why do you say this new conductor capacity is coming up in the domestic market and do you think that that will have any kind of bearing on a longer-term conductor margin? Because you have, I have seen that you keep adding your value-added products, you keep investing in R&D and stuff coming out with a new product, which has been your niche over the last seven, eight years. And that has reduced volatility in the conductor margin at a large extent. But these upcoming capacities, are they more for the traditional conductor or are they more for the specialist, I mean premium conductor? Kushal Desai: So the thing is, Maulik, that the kind of investment, which is being made, for example, KEC in conductors, they will produce the conventional type of conductors, ACSR, AL-59. I think we not only produce that, and I have produced it quite efficiently because we are fully integrated, including doing our own alloying, etc. So they have developed their alloying technology for AL-59, but we have developed the alloying technology not only for AL-59, but we do gap conductors, ACSS, ACCC, we do a whole range of copper products. Next year, our copper business will be over Rs. 3,000 crores, which will be, if you just look at the cable companies, we will be in the top 10 cable companies on copper. Not even 10, maybe the fifth or sixth largest. If you just look at it, copper has been produced on the conductor side. So, the business has evolved quite a lot. We do a lot of specialized EPC as well, which supports these premium products. So I think, for us, we are playing an infinite game. We are interested in increasing our own product mix, figuring out what are the products. So, you have got people like the large developers who are also bidding on TBCB lines to evacuate power from some of the generation sources that they have. We are in dialogue with them, saying that, why are you looking at only conventional conductors. We can offer you a full range of other products, which can reduce your losses, your cost of ownership, etc. So the game that we are playing is now completely moved away from just producing a conventional conductor. The same thing is there on the cable side. On the cable side if you want to get into renewable energy, so on the renewable energy, there is a certain Indian standard, but there is a much higher standard that exists in Australia and in Europe. There is also a higher US standard that exists in the United States. So we are making products of all those standards. We are now pitching those products, and we supply thousands of kilometers to these countries. Why do not you look at upgrading in India to those standards? Because they are all meant for being able to weather the weather. Temperature fluctuations, the hostility in terms of wind, sunshine, all those things. Water. You see, there is a lot of stuff going into deserts and into probably into the Rann of Kutch and those areas. So that's all salty terrain or it's desert terrain. So there are different types of products that can come up to better manage the application. Because these panels are supposed to last for 35, 40 years. We have just launched a new, we were the first to do APAR Anushakti in the country, the E-beam house wire. Now today, you have RR Cable has come in, Finolex has come in, Polycab has come in, V-Guard has come in. Everybody is trying to follow. We have come up with an upgraded product that instead of carrying 50% more current, it carries 100% more current. Instead of having 50-year life, it has a 70-year life. And this is zero-halogen product, so it's less toxic in case an accident does take place. So I think we are constantly in a position to keep upgrading and that's the game that we want to play. So whether Birla enters this or whether you have Adani entering the wires business, I think there's enough and more business available for players like us to continue to innovate and sell in different segments and different geographies. Maulik Patel: What kind of growth you delivered in FY '25 on the Anushakti side? Kushal Desai: 37% growth. Maulik Patel: That makes close to around Rs. 350 crores top-line on that? Kushal Desai: Yes, about Rs. 375 crores. Yes. Maulik Patel: Got it. Thanks. Thanks, Kushal bhai. Thanks very much. Thanks for taking my questions. Thank you. Moderator: Thank you. The next question is from the line of Nikhil from Kizuna Wealth. Please go ahead. Nikhil Poptani: Yes. Hi, sir. Congratulations on a great set of numbers and thank you for giving me the opportunity. So my first question is like, in network Vodafone, there were a lot of companies that were front running due to the US search. So have we seen searches value in our clients? And second, sir now with this, so much tariff wars in Q1/Q2, so are we expecting that companies will pilot in UK and then we will see an increase of inventory de-inventorization phase again? Kushal Desai: Sir, your first question we did not understand, can you repeat?

Sir, like in Q4, we have seen a lot of companies front running their tariffs. Like a lot of companies started building up their inventory, so have you seen the same phenomenon? In the secondary, now with the tariff pause, so our companies start building their inventory and now are we seeing inventories being built up and then we will see a phase of de-inventorization in Q2 or Q3? Kushal Desai: So, it's a good question. I do not think, Nikhil, that's not what we are seeing at our end. We have a significant amount of our shipments which are going in directly to EPC players and project sites. So, those are against specific requirements which are there. We are not really seeing a big inventory build-up. Also, many distribute, import distributors wanted to place much larger orders on us but we had already booked out our capacity. So, we were not in a position to take on, we did not have any spare capacity. Everything was already allocated, and orders were booked. So, those are getting executed. And the kind of client mix which we are looking at because now we have got a bunch of, we have got a sales team on the ground and working with manufacturing reps. We are no longer looking at being overly dependent on an import distributor. We are the ones who, actually stock up. They also sell a lot of cables in their own brand name through multi-listing on the US, whereas the APAR focus is to sell also a lot of APAR branded products with approval from end customers. So, I think for us the overhang is just basically in terms of the tariff and clarity on that so that people can price their product, correctly. And our sense is that hopefully it will get resolved within the period of these 90-days. And then as the business, the new orders start coming in, they will come in from a much larger set of customers. So, we are not worried about any front-loading or, front-running, etc., or an inventory overhang. At least as of now, that does not seem to be the case. Nikhil Poptani: That's great to hear. That's absolutely great to hear. Sir, my second question is, like, how were the inquiries in the month of April and May? And now, as you said that China is providing 8% to 12% subsidiary. So, are we expecting price wars in the US, market too? Kushal Desai: So, the serious buyers have actually been quite wary of wanting to, sign things up. The US China relationship, as you can see, is extremely volatile. And, the 90-day truce, as I mentioned just a few minutes earlier, which is there, is keeping the same delta as was one existing before. So we do not see anything like substantially changing as such. In fact the Chinese competition is hurting us in non-US markets, we are not so worried about China in the US market. We have to compete with them in other non-US markets. Nikhil Poptani: Okay. That's great to hear sir. And sir now as we have upgraded our guidance from Rs. 28,500 EBITDA per ton to Rs. 30,000 EBITDA per ton. So are you assuming that EBITDA per ton has bottomed out. Now there's only upper credit trend going forward? Ramesh Iyer: No, we have been saying this earlier also, we need to look at it on a 12 months basis and that is how we have given this guidance. So there will be some quarters where EBITDA is low, some quarters EBITDA is high, because of the nature of the business is such that it is all made to order business. And therefore we need to look at a long-term 12 months or even beyond that to get a good feel of the numbers.

But as things are as you have premiumization being played, as you move from conventional ACSR to AL-59, all that, so fundamentally the product mix should drive it upward. Nikhil Poptani: Okay. That's great to hear, sir. My last question is on the new Trump administration is not the plan of renewable energy, they are moving to coal-based. So have we seen any kind of clients having lower confidence in renewable energy, renewable energy CAPEX, something like that? Kushal Desai: So, the point of view that we have been able to gather through various customers and whoever we are in touch with, including developers in the United States, is that solar and solar including the energy storage, the ESS system, is the cheapest form of energy available to add in the shortest period of time. So the solar side of the business is going to continue. You have more and more US manufacturing also being set up, Waaree, for example, has set up US manufacturing. I think other manufacturers from India are also exporting panels to the US. So the solar side looks very much intact. The wind is a mixed bag. There are certain corridors in the US which are extremely windy and can carry a high plant load factor. So those corridors you can continue to develop. What is likely to stop is the subsidy that is going on, on the wind side. And the offshore wind, which is being built only with subsidies pretty much for making it viable, that is to be forgotten as far as the US is concerned. So we do not see the renewable story completely ending. We see the subsidy story ending. So the renewable that is actually able to stand and expand based on its own economics will continue to expand. And see, today the permitting in the US, is very, very tedious and whatever direct information we have, it takes 10 to 12 years to get permitting to build a transmission line in the US, versus three years in India. So there are similar issues are there for building power plants and power sources as well. So you will see solar addition happening because that is the fastest way of being able to actually get power. If you add it along with battery storage capacity, then you are able to deliver power 24/7. Nikhil Poptani: Okay, sir. That's great to hear, sir. That's it from my side. Thank you. Moderator: Thank you. The next question is from the line of Vimox Shah from Goyam Luxy Fintech Private Limited. Please go ahead. Vimox Shah: Thank you for the opportunity. And congrats for the good set of numbers. So most of the questions you have answered, I have just one follow-up question, sir, like in the last quarter, you were mentioning that companies are supplying the cables to the major data centers, like you were mentioning, like Microsoft, right? So you are actually the liquid cooling solution, right, but making a test site. So has there been any progress on this development? Kushal Desai: So we, at the moment, I am not we have developed a product here. We are still looking at how to test market it, etc., because, the liquid dielectric, first of all, most of the data centers today do not use liquid. There are a few companies overseas that have been, supplied as a system. So we have not really made any progress on that front. We are still working, knocking on doors and trying to figure out how we can get a trial for that to happen. In the meantime, the cables which are being supplied are being supplied on, basically in the substation and substation to connecting to the data center equipment. That side of the business is what we are covering today. Vimox Shah: Got it. Thank you.

Thank you. The next question is from the line of Avnish Tiwari from Vaikarya. Please go ahead. Avnish Tiwari: My first question is, what is the tariff on the US, exports you are doing for the cables? Say, in May, you are paying compared to what were you paying in February or March. And the delta which you are experiencing now, how is it being shared between you and your end customers, whether it is importer or whether it's an actual customer in the US? Kushal Desai: So the basic duty remains intact. So the basic duty that we were paying on cables is 4.9%. So for argument's sake, you can take it as 5%. Now whatever has been put here is a reciprocal tariff. So that applies over and above. So the 10% or 26% or 46% or whatever it is, is over and above the basic tariff which is in place. So currently it is at 5% plus 10%. Avnish Tiwari: And the additional 10%, how are you sharing it between the importer and yourself? Ramesh Iyer: So there are different contracts with the customers. Some contracts are on FOB, some contracts are on DDP. Some are deliveries below, before July 9. Some are deliveries after July 9. In some cases, we are talking to some of the customers who are agreeing to share a part of the duty. So those all mix and combinations are actually happening at the moment. Kushal Desai: So all the FOBs is absolutely no problem. The DDPs, we have had to sit and negotiate with customers. So there's been some portions where there's been a combination. We have picked up part of it. Customers have picked up part of it. Some of the contracts have allowed us to pass the whole thing on. So overall, we would not see some major impact, at least for this 10% tariff field.

Okay. That's good to hear. So basically, the dominating part is FOB or where most of the pay is shared by the importer. You only take part of it, a small part of it. Kushal Desai: Yes. So the bulk of the business which we are executing right now is in that bracket. Avnish Tiwari: Right. The second question is that what are the dominating types of cables you export to the US? Are these less than 1,000 V or higher, more than 1,000 V? And what is the key raw material in this thing, aluminum or copper? Kushal Desai: So the bulk of what we export is all aluminum alloy. So there's a special alloy which is used in the United States, which is an 8000 series aluminum alloy. So we produce the alloy ourselves, the rods that is from our rolling mills in the conductor division. Then they are aged and then made into conductors and then finally insulated to make the cables. So there's a whole section on our website. If you go and see, you will see a set of UL approved products. So those are the products which are being manufactured and shipped to the US. There are a few copper products as well, which is a relatively very small volume. The bulk of the volume is aluminum alloy. Avnish Tiwari: And these copper products would be cables of less than 1,000 V or more than 1,000 V? Kushal Desai: So the copper products which are being exported right now are basically medium voltage cables which are with copper in. So we are not doing any lower end copper because there's the US has zero duty on import of copper even today. There is a 25% duty on import of aluminum. So aluminum has been a strategic manufacture in the US, whereas copper is something that even today the government believes that it should be imported in the US, without tariff. So our whole strategy is to focus more around products that are aluminum based where APAR has always had strength. Avnish Tiwari: So in less than 1,000 V are they typically using copper or aluminum if you want to do in future? Kushal Desai: So the US, is largely an aluminum market. Aluminum alloy market. Avnish Tiwari: Less than 1,000 V, no, I am just talking about normal cables. Kushal Desai: Less than 1,000 V, above 1,000 V only special applications you use copper over there. Otherwise predominantly it's aluminum. Avnish Tiwari: Got it. Mostly it's the aluminum market then, okay. Kushal Desai: Yes. Avnish Tiwari: And last question I have is that you talked about Mexico also having the duty. But my understanding was most of the cables are under USMCA in Mexico. Is that, like, you are talking about mostly alloy which is not part of this USMCA, or you think cables are also not part of MCA and they are attracting duties? Kushal Desai: Right now, from our understanding is that unless and until Mexico comes up with anything different they are also facing the same tariff situation as India. The minimum tariff is 10% whatever you want to bring into the US. Unless there is a very specific FTA in place which is like the first one that they signed is with the UK. Nobody else has signed anything specifically as of now. So we are in the same boat as Mexico as of today. Avnish Tiwari: Okay. So your understanding is that these cables or alloy you are exporting are not part of MCA, USMCA in Mexico?

Yes, I mean whatever we hear from our customers is that there is nothing advantageous currently in Mexico other than the short delivery cycle that is there. Avnish Tiwari: Okay. Great. Thank you very much. And if just a last question I can pitch in. How much extra either margin at the contribution level or EBITDA level you make or better margin capital comes in that same cable or you are selling to US, export versus in India? Kushal Desai: The US is very tricky to just put a number because it is a combination of FOB and DDP. So it's not a number that I would like to hazard any guess. It keeps changing depending on who wants to buy FOB versus on a DDP basis. So EPC players normally want it on a DDP basis, but actual users are very happy to buy it on an FOB basis. So they have the full transparency of freight. Avnish Tiwari: Right. But you make higher margin in US export versus India sales. Is that fair to understand? Ramesh Iyer: So it depends on different products and mixes. So on an apples-to-apples basis, we cannot actually compare this because different products go for the US market and different products are there for Indian market. And we do not actually give out geography-wise margins for the division. Avnish Tiwari: Okay. Great. Thank you very much. Moderator: Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Amit Anwani: Hi, sir. Just a follow-up. Is it possible to share the annual US contribution in overall and as well as within the conductors and cables this year, FY '25?

So the margins we do not share, Amit. Kushal Desai: Are you talking about the revenue that we have done? Amit Anwani: Yes, yes. Revenue contribution. Ramesh Iyer: Overall, the US would be slightly on a higher single-digit compared to the total consolidated turnover. Amit Anwani: And sir for cables and conductors? Kushal Desai: We have done about Rs. 1,000 crores in cables. About Rs. 1,000 crores in cables and -- Ramesh Iyer: Rs. 600 crores. Ramesh Iyer: Rs. 600 crores on conductors. Kushal Desai: Rs. 600 crores on conductors. About Rs. 1,600-odd crores approximately overall. So that's why, Amit, it's lower. Amit Anwani: How much was this last year? Rs. 1,600 crores on what base, FY '24? Ramesh Iyer: We have given that in our corporate presentation. It was slightly degrown still compared to last year on an annual basis. But sequentially, things have improved. Every quarter has been better than the earlier quarter when it comes to the US Amit Anwani: Yes. Sure. Thank you so much. Moderator: Thank you. The next question is from the line of Raaj from Arjav Partners. Please go ahead.

Sir, I would like to start on the outlook part. For FY '26, you are intending to grow. And I couldn't hear that. So, can you please repeat it? Kushal Desai: Sorry, your line is breaking up. We are not able to hear you. Raaj Macwan: Sir, for FY '26 outlook, I just skipped your comment. So, can you repeat it again? Ramesh Iyer: Yes. So, on the oil division, we are giving a top-line volume growth of 6% to 8%. EBITDA level margin, Rs. 5,000 to Rs. 6,000 per KL. Cable division, top-line value growth, 25%. EBITDA percentage, 10% to 12%. And conductor division, volume growth, 10%. And EBITDA per metric ton, Rs. 30,000 plus tailwinds. Raaj Macwan: Rs. 30,000 plus? Ramesh Iyer: Tailwinds. Raaj Macwan: All right. All right. And also, can you repeat on the CAPEX part? How much? In what division? Ramesh Iyer: About Rs. 1,300 crores of CAPEX. About Rs. 200 crores coming from oil division, Rs. 300 crores in the conductor division and Rs. 800 crores in cable division. Raaj Macwan: Okay. And how much time will it take for all these three to come on stream? Ramesh Iyer: 15 to 18 months. Raaj Macwan: Sorry, 15 to? Raaj Macwan: 15 to 18 months, all right. And how much will be your expended capacity percentage?

So, it will grow for the conductor division it may grow by about 10% in terms of capacity. For the cable, as we already mentioned once the entire plant is commissioned then it will have capacity to generate revenue of about Rs. 10,000 crores once it is fully commissioned. Raaj Macwan: All right. And for the oil part? Kushal Desai: So the oil, there is no real capacity constraint other than on the auto-industrial side where today we run two shifts and we can just add a third shift in place. So this investment is going in largely in terms of building a storage facility in the port in JNPT and expanding our storage capability in Hamriyah as well in the UAE. So right now, almost 24 million liters of storage space we have on a rental basis from third parties in Mumbai. So that is going to get collapsed into about 30 million, 35 million liters storage which we are building out in JNPT. That also has a big productivity boost on the supply chain side because the ship will directly be able to unload from a ship in those tanks. Raaj Macwan: All right. Understood sir. Okay sir, thanks. All the best. Kushal Desai: Okay. Moderator: Thank you. The next question is from the line of Mayank Bhandari from Asian Markets Securities. Please go ahead. Mayank Bhandari: Thanks for the opportunity. Sir, I just wanted a few data points if you could provide. In the cables revenue how much would be the B2C revenue? How much would be the defense telecom cable revenue, EHV revenue, and of course railways revenue? Kushal Desai: We do not give out so detailed revenue break-up for the division. But I can tell you about this B2C is about Rs. 375 crores that I have mentioned earlier. Apart from that the nitty-gritties of revenue coming from each is that something we do not give out. Mayank Bhandari: So have we started supplying to defense telecom? Kushal Desai: You mean defense telecom? For us there are two separate verticals. One is defense and the other one is telecom, so it depends. Mayank Bhandari: Cables that we are supplying to the defense. Kushal Desai: Yes. So that is something that is ongoing, we would see that in the future as more and more localization is taking place, the volume should start increasing as I mentioned in my earlier comments that we are bringing in additional equipment as well which can help produce larger quantities of some of the sophisticated cables and so on, for the Indian Navy particularly. Mayank Bhandari: What about EHV, sir? Are we doing any evaluation in EHV? Kushal Desai: So, as we complete our expansion in the cables side, currently we are able to produce up to 66 kV. So this will go up to 220 kV that we will be able to produce. Mayank Bhandari: No, does this contribute any revenue in FY '25 EHV? Kushal Desai: No. Because by the time the capacity goes in place and gets implemented, then post that we will start hunting, we will start working on getting approval. So, you will see that revenue not coming in FY '26 at all, you may start seeing small portion coming in FY '27 but a larger portion coming in FY '28. In the meantime, that same equipment is capable of producing up to 220 kV. So you will produce the other voltage levels until those approvals come in.

What about the wind, sir? Wind cables? Kushal Desai: So, wind is produced on totally different equipment where we are also looking at doubling our capacity. And those are elastomeric cable or rubber cable. So, that production is also going to be doubled in the same time frame. And that's part of the Rs. 800 crores CAPEX. Mayank Bhandari: No, I am just checking if we would give the contribution of the renewables cable revenue in the total cable revenue right now. Kushal Desai: So, we are not giving these detailed breakups as such pertaining -- go ahead. Mayank Bhandari: And last, what is the interest on the interest-bearing acceptances in FY '25? Interest number? Ramesh Iyer: It's about range from 6.5% to 7.5% over a period of time. Mayank Bhandari: 6.5% to 7.5%. No, I am asking the absolute number out of the total interest expense. Ramesh Iyer: Out of total interest, you see about 90% would be on the acceptances only because we have very less debt on the balance sheet. Most of it would be out of acceptance only. Mayank Bhandari: Last year, FY '24, this number was around Rs. 240 crores. Ramesh Iyer: Yes, large part, almost everything would be out of, we have just one ECB loan on the balance sheet. Apart from that, everything else is actually the interest on the acceptances only. And that disclosure is there in the balance sheet, the interest part of the ECB loan. Mayank Bhandari: Okay. Any guidance on FY '26 for the interest expense?

So it will go in line with the volume of the business as all of this is relating to acceptances as the volume of business growth. The interest cost will go up. Also, the interest cost depends on the price of aluminum and copper, on the value of that purchases. So, depending on the price of the metal, this fluctuates. Mayank Bhandari: Okay. Thank you. That's it from my side. Moderator: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Kushal Desai for closing comments. Kushal Desai: Yes. I would like to take the opportunity to thank everyone for participating in our Q4 and financial year FY '25 earnings call. Just to summarize, we do have a few overhangs like, the US, tariff situation, which will hopefully get clarity and sorted out in the next few weeks. But overall, as a management, we continue to remain very bullish on our business. We are putting in Rs. 1,300 crores of CAPEX, which will go in over the next 12 to 15 months and then get commissioned thereafter. This is in addition to Rs. 500 crores which we have put in FY '25. All the three businesses are poised to be able to grow. The product ranges also as well as the premiumization of product and customers is something that we are working on. And whereas, it's always difficult in our business to predict quarter-by-quarter, but if you take a medium-term view, we continue to remain very bullish on the growth of the business. So once again, thank you so much for attending our call and goodbye. Moderator: Thank you. On behalf of APAR Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.