Aditya Infotech Limited analyst Q&A

Thank you. We will now begin the question-and-answer session. The first question comes from the line of Ankur Sharma with HDFC Life. Please go ahead.

Yes. Hi, sir, good morning . Congratulations on a great set of numbers. I had a couple of questions. One on the gross margins, you know, for Q4 where we've seen a very sharp almost a 900 basis plus increase in the gross margins to almost 31.8%. So just trying to understand, is this primarily driven by better mix, more share of IP Cameras? Or is there also an element of maybe low-cost inventory there, which also would have helped you expand margins? And then maybe -- Yes, so was it also an element of low -cost inventory which was utilized and maybe we don't get that benefit as, we start procuring inventory, obviously especially the memory side, at much higher prices? Just trying to understand what led to this big surge in gross margins and where do you really see this kind of settling down? Thanks.

Hi Ankur. Thanks for the question. This is Anup here. So, you're right. It's been a combination of stuff. Like you said, we took a price rise in Q4 and we had of course low-cost inventory that was lying with us. And like we had mentioned in our earlier calls also, the projects SKUs, got STQC certified in H2. So, the more high-end SKUs started coming in the Q3 and Q4. So, it's been a combination of all the factors that you said: low-cost inventory which was there with us, price rise in Q4, as well as the SKU mix that has happened. The second part of your question in terms of the margin sustainability, I think we already called that out in the call saying that , we have almost exhausted all , our low-cost inventory and there is price increases in our raw material. But in this year also, starting Q1, there is price rise which is already happening and this is a tapered price rise happening across the months. There might be a time lag in terms of how it is happening, but we thought it's our responsibility as market leaders to ensure that there is no sudden price rise and there is a gradual price rise which is happening into the market and there is acceptability on this. So, we think the margins are sustainable, but if you see our guidance, we have factored for that, our guidance for the whole year is higher than our last year guidance but slightly lower than the Q4. So, we have factored for that. And we are fairly confident of delivering the same.

And just on the price hike, on the last call you did say about 6% to 8% was taken in January. So how much -- so I'm assuming you need another 25% odd, is that correct? I'm just trying to understand , how much of price hikes have already been taken and how much more, assuming a status quo right now on the RM and the forex front, how much more …

So, Ankur, what we have decided is we're doing it on a monthly scale instead of a abrupt price rise. And we've been, securing semiconductors and memories much ahead of competition at a, better cost optimizations. So, we continue doing that. There are two things we are focusing: supply continuity as well as cost optimization and much ahead of the competition to source the semiconductor from different chipset makers as far as possible. So, we're doing monthly price rise of few basis points every month. So, this is helping us & the market is not getting a sudden shock and each month in this quarter also and maybe in the coming quarter we will see a price rise happening. So, people are able to pass it on gradually. And there is no shock given to the customers in a very big way. So, it will be a single -digit price rise every month sort of a thing. Again, it depends on product category-to-product category depending upon the input cost rise.

And Ankur, we have actually flagged it as an ASP increase, so that will also be contributed by SKU mix further enhancing , as further projects come into and also as the CP PLUS portfolio continues to expand. So , it's not 100% driven by only price rises, it's also be en driven by a brand mix and also by the SKU mix within the brand.

Understand, perfect. Okay. And just on the memory side specifically, given the global shortages and a lot of that memory being diverted away to AI data centers, how well -placed are you, in terms of memory, SoC, when you look at say the next 6-9 months? Or is it because we are the largest player we actually have a competitive advantage over some of the smaller players and we can actually increase our share gains given the smaller guys would typically struggle to get that?

So, see what has happened is memory DDR, there are 6 -7 large global manufacturers . I'm talking about outside China. And half of them have stopped making DDR3 because of these major AI demand leading them to shift all their capacities to DDR5 and above. So that is where the gap of memory is coming up. But any situation where there is a demand -supply imbalance, I have seen and we are seeing in our industry even now that, the big get bigger and the smaller tail is the large ly affected one. And that's what is happening here also. We are actually with the strong purchasing power that we have, the volume we have, and the relationships we have with all these guys, are securing our supplies much ahead of, as I said, competition. So we are, securing it from multiple supply chains, direct from the fab makers, the fab guys and the chipset guys, their distributors, open market, all kinds of places, so ensuring that we have enough supplies at the right cost to provide in the market. And I think that will be probably one of our advantage in this year because of the sheer market size and the volume that we have.

Perfect. And just one last one if I may, on market share itself. So , you said you're close to 46% market share, which I think is brilliant given where we started off m aybe a couple of quarters back. One, how much more do you think, have a target in mind where you can go? And who are the other sizable players? Just trying to understand, except you who are the other Indian large players? Obviously Chinese share has come down significantly, but something on that, yes.

So see, there are about 30 brands across as per the current certified list. A dozen of the global brands are certified, but their share overall is about 10% of the market, which is all the big names of the global brands. And then there are about one and a half dozen domestic brands. But nobody out of that plays in all the vertical market segments of home, consumer, small - medium businesses, enterpris e, government, all the sectors. So, in every sector we have different competition and most of them are probably one tenth of our size at the moment or even lower. So, they are all evolving, they're all scaling up, but I think it will take their own time to scale up on all fronts of R&D, manufacturing, localization, organization. Supply chain is again now a big deterrent in the current demand-supply situation because of the semiconductor and the memory. So I think, if you ask me a single large number two, I can't peg a one single large number two across the sectors.

And just to add, we are not targeting any specific market share, but like we called out, we plan to outgrow the industry growth rate. So of course, there will be a market share gains.

Yes.

But that will happen naturally and we are focused on more building our capacities and ensuring supply, but we are not targeting any specific numbers in terms of market share, but that will happen automatically.

Perfect, got it. Great, that's very helpful, and all the best.

Thank you.

The next question comes from the line of Dhruv Jain with Ambit Capital. Please go ahead.

Thanks a lot for the opportunity and congratulations to the team for great numbers. So, my first question is on margin side, right? So , with respect to backward integration, whatever initiatives that you're doing, my guess is that most of the -- I mean the full year annualized benefits would come in FY 2028. So just wanted to understand what kind of benefits, in terms of margins we'll see in FY 2028 with respect to the housing plant and, various other initiatives that you're doing.

So, Dhruv, I think valid point. we are right now, investing heavily. So , in terms of housing enclosures right now is third -party supply chain. With our own plant coming in, of course there will be, some addition to the bottom line. I can't peg exact overall basis points, but I'm sure there will be enough contribution on the housing cost itself. So does the cable, because same we are right now sourcing third -party or importing. Once we make in -house, and the two things or rather three things we achieve , when we do this localization in -house: one is quality consistency, second is supply consistency, third is contribution to the EBITDA basis points. So, all these things and then the lens , so these three things will definitely contribute in FY 2028. Marginally impact may come in later part of this year, but early times to say what level of, contribution will come. But yes, I can say yes, there will be contribution.

Sure, okay. And so, my second question is on market demand, right? So, in your presentation you mentioned that, you expect market volumes to grow by 15% to 17%. Now in categories like say mobile phones, laptops, we've seen that, the demand has fallen off because the ASP hikes have really hurt the end market demand. So just wanted to your sense in terms of what is the level of confidence or what are the factors that you still see that, despite the sharp inflation, we will see that kind of demand growth in the market.

So again, very good question , Dhruv. So , I think, see we were expecting a high pent -up demand in this year post the transition last year because we believe last year the growth wasn't that great in terms of market. We as company grew our market share, but the overall market consumption was muted because of the transition which happened from the pre -STQC to the post -STQC era. This year we were expecting a much higher market growth , because of the shift of the last year's pent-up demand coming in this year. We again brought it to a muted level of 15% in our, planning and guidance, factoring the ASP cost rise on the products. And here again, you see what is going to happen is the ASP cost rise on medium-to-higher end on the percentage side is not that high. So, in enterprise project sector is not going to be that bad. There will be rise but not that bad, but the entry-level market in the network cameras and recorders are higher. So, I think it will be a mix. Some places there will be some reduction in consumption, shifting to maybe some analog cameras where the cost rise is much lesser compared to the entry-level IP. So, we did all that simulation and then figured out that overall quantity of 15% may grow, which earlier we were expecting more than 20% with using the, keeping the pent-up demand in mind. So, we have factored that a little bit in our planning.

And also, if you're talking about mobiles and all, you're talking about generally the entry - level consumer spends. In our category, the consumer purchases are still less than 10% of the overall business. This is still essentially a B2B led businesses where like Aditya was mentioning there is pent- up demand from last year and there is still, supplies which have not been done. So we believe that will still be strong on the commercial sides with the new proje cts coming up and what we see the vacuum, the consumption will still be there. And, our growth is factored in it almost 25% -30% kind of unit growth and rest is due to the ASP rise. And we believe the industry will still grow in units in about 15%-16%, which like we just mentioned should have been higher considering the pent -up growth over if you consider the last year and this year.

So in that context, if I'm not wrong, there should also be, value growth which also helps your margins because I'm guessing there will be some bit of migration that happens from IP level cameras to premium-end cameras because the, ASP hikes if I'm not wrong in the premium - end would be lower.

Yes. So, the whole when we are saying that the ASP would be higher by about 25%, it's not coming all from price rise, it's coming from what you just mentioned, it's coming from the portfolio mix as well and the overall IP percentage of the portfolio constantly going up.

Got it. And sir, if you could just last question, if you could just call out the capex numbers for FY27-'28.

We had planned for INR200 crores odd plus minus few numbers, but I think as we are upping the guidance, we feel we might require a little more. Plans are being worked upon compared to the new expansions that we have planning, but I think it will fall in that range of INR 200 to 300 crores kind of thing and we will largely be funding it from internal accruals or some debt maybe say, for the plant and machinery.

All right. Thanks a lot sir and all the best.

Thank you.

The next question comes from the line of Nikhil Kale with Invesco Mutual Fund. Please go ahead.

Yes. Thank you for taking my question. Firstly, hearty congratulations on a very strong set of numbers and the upping the guidance. So , my question was more on the cash flow generation. So obviously we have had a stellar year and with the significant growth that we've seen, we've also seen increase in working capital which has imp acted our cash flow generation. So going forward, how should we think about it, especially you alluded to the fact that you might be procuring components in advance, so probably inventory days might inch up, you might also need to pay creditors more -- I mean you might need to pay your suppliers more quickly, so the payables might also kind of get impacted. So, considering these two aspects, how should we think about cash flow generation for the next year? And then will that be enough to kind of fund our capex plans and also the land acquisition that you're thinking about?

Yes. So, Nikhil you're right. We have been razor-focused on our operational efficiencies and we have improved on our inventory levels and the debtors have also improved gradually. But yes, the cash conversion cycle has slightly increased and like you rightly pointed out, that has mainly got to do with us, having to procure the chips and memory, some of it, we are blocking and we are having to make some possibly advance payments. So, the cash conversion cycle is essentially slightly gone up due to the creditors coming down because of what we are doing in terms of, securing our supplies. This at least in the shorter term we see this going, because our first priority is ensuring supplies and we, on the supply side we are consistent and we are secured. So, this will sort of continue, but we have factored that in our working capital s, working for this year. And we have already called out your capex numbers. And yes, we have upped our guidance in terms of revenue. So yes, there will be a working capital needs, but at the moment I think it's sort of pretty okay. We will see if there are further growth possibilities and if there are further c apex requirements, how to fund it , at the moment we are looking at funding it with mostly from internal accruals and some debt and we are pretty comfortable.

Got it. That answers my question. Thank you.

Thank you. The next question comes from the line of Neel with Equirus Securities. Please go ahead.

Yes. Hi sir. Congratulations for solid set of numbers. Sir, I have a couple of questions. So sir first is related to the chipset that we have almost now six suppliers on board. How are our agreements placed? It's a more of a volume -bound agreements or a time -bound agreements and if the prices of chipset let's say increase, how much time it takes to p ass into the customers?

Hi Neel, in the agreement you normally have supply agreements only and it's right now the situation is most of the agreements if you talk about across the industry are going haywire because the supply -demand is totally going haywire, the cost is rising on every fortnight, weekly basis. So, it's a question of even if you pay advances sometimes the contract gets invalidated sometimes because of the very sort of a force majeures kind of a situation. So , this is very unprecedented times, I have not seen these kind of things in the last two-three decades of my business career. But we are mitigating it . And we're mitigating it I think so far so well touch wood . And we hope that we can be, with this multi -supply chain, multi -sourcing strategy, multi -product R&D, we will be able to mitigate this risk. The price rise is a decision we are doing on a gradual phase. So again, we are averaging our sourcing and averaging the price rise and like I said we are passing it on a monthl y basis, every month raising it. So over the quarter I think the price rise can be easily passed to the market, but what we are more conscious of right now is that we don't want a shock in the market and the consumption or the flow of material and the sales out, cash flow, all that get affected too much. So, I think we are more bothering that and the market share and then managing the cost optimization and passing of the price.

Okay. And sir, last que stion is let's say in total FY2 6 numbers, if we were to bifurcate the volume-led growth and value-led growth, what would that be ratio?

You're talking about FY26?

Right sir.

Yes. So, we think the volume growth would be about roughly 18% -20% and rest would be the ASP growth. But that is again majorly driven by the mix. The price rise was essentially only in Q4. In the other three quarters, the post-STQC materials were at a higher price and the mix of CP PLUS to internally that mix has changed and IP-to-HD the mix has changed. So, if there's a 33% growth, almost 18% to 20% would be volume growth and rest would be the ASP growth.

Okay sir. And in FY27, I know sir it's very difficult to say but any kind of ballpark number you would like to put what kind of grossly price hikes we can see in FY27?

So, we have called out that the ASP growth will be roughly about 25%.

And the volume growth will be roughly between 25% and 30%. But it's difficult to do it category-wise, so that's why we've just called out the general ASP growth and the quantity growth.

Thank you.

Thank you. The next question comes from the line of Naushad Chaudhary with Aditya Birla Mutual Fund. Please go ahead.

Yes. Hi. Thank you and congrats on a very good set of numbers. Just one clarification on the margin side, sir, till last quarter we had a view of this business is expected to do 12% to 13% kind of margins for us and within a quarter it has, moved up to 14%-15% expectation. So, in last one year just wanted to understand last one -two quarter what has changed which is leading to this kind of expectation and this 14%-15% is a new normal for your business or could FY 2028 be different?...

So, I would say Naushad, this should be the new normal for this business. And you see , we were working on this only. We didn't want to speak early ahead of the situation. You know, many things of localization, cost optimization, the shift towards medium to higher -end products, enterprise business, premiumization, all that gradually was contributing and inching us towards this direction. So Q4 was a little higher than this, but that was a one -off. But I think 14%-15% should be the new normal FY27, FY28 as we move forward.

Perfect. And last, so initially on the export side we had a view that we are -- our hands are full and tight for the domestic demand, so we may think after two -three years we may think of export opportunity. Any thoughts and development that side, and how it could look like in next 3-4 years?

So, I think we will start some action hopefully in this year. At the moment with so much happening, Naushad, in capacity, R&D, localization, inorganic options that we are working on, and in the supply chain disruptions, I think the energies are all moving here to ensure that we first feed the demand, which is in the domestic market. But export will be the focus. The timing is something you know, we had thought of doing it in the coming year, but let's see if we can kick -off some actions in the coming year. Some thoughts are on underway, but how much will materialize is early time to make a statement.

Sure, Aditya. Thank you. All the best for the future.

Thank you.

Thank you. The next question comes from the line of Anuj Kashyap with A3 Capital. Please go ahead.

Hello. Am I audible?

Yes, Anuj. Hi. You're audible.

Let me start with a congratulations for your good set of numbers. Sir, just my question is with a caveat like it's a forward-looking in nature, sir. Just I wanted to know your head -- I mean like what do you think -- what is the thought process regarding like the cameras have become from omnipresent to omniscient , like the pure integration with the Qualcomm or your partnership with the Qualcomm is about AI or the cameras becoming the active decision makers down the line. So as in for organization, so how do you look at it? Just I want to know your thought process.

So, I did not understand the entire question, Anuj.

You're asking about the AI cameras, AI going into cameras is it?

Yes sir. Just as they were omnipresent before, cameras are everywhere now. Cameras have become decision makers also sir in some ways like due to the data processing by them.

So Anuj, let me explain. See basically the industry started as just a viewing, then it went into recording, then it went into intelligence a little bit of video analytics, which is already part of our current systems that we offer. Moving forward, you know, more and more video analytics and AI will come in. And let's say, whether you are in a hospital or an educational institute or a building, now in that the guys need a report, what immediate triggers, action -- call to actions. And camera is the sensing device which can capture the metadata, the AI on the other device can trigger the process, the data, trigger an action. And similarly call to actions can happen or a report can be generated. So, you can say, they are the eyes, ears, and sound now because the camera can have audio out, you can talk from the camera, you can hear the sound also, you can view. So, in a way, it has become the eyes, ears, and tongue . Now the brain has to be the AI , which is the edge boxes and the recorders and the processing of that , and then take the action with your arms and legs. So that's how the whole system will prevail. But cameras will be the integral part of the whole AI ecosystem as we progress.

Sir, you have exactly, means, you gave exactly the answer I was hoping for. Sir, I wanted -- I mean, I wanted to ask, sir, for an organization like ours, regarding our service component - - specifically, given that today we are solely a hardware company, so will there be some revenue that we can hope so that it can also be derived from our service sector -- that is, from the service component?

So, we are working on two things. We already announced cloud for our home market. So just as you currently record on-premises, if someone were to simply take away your recorder, all your data would be lost. So, one is a redundancy backup on the cloud, like just as you handle your SAP and ERP systems, you will handle video surveillance in the same manner . So, we are optimizing it to become a mass-market product. We are optimizing our platform to make it more and more cost-effective and affordable before we go mass scale to offer that as a redundancy backup. Post that, AI as a security and service model, SaaS model, is once you have that data you can start working and giving AI intelligence with edge devices on -premise and cloud AI on the back. So, we are also working on this SaaS model, which is where the Qualcomm partnership is working on, and as I mentioned the platform is under trials and development and hopefully, this year we might go to market very soon.

And sir, just add on to it, sir will that be margin accretive? That, of course, it will be margin accretive, do you have the numbers in your mind, how much margin accretive that component can be?

Too early, it's a new market creation, so it’s too early to.

But sir, that market is going to boom.

Absolutely it's going to boom, so we are investing on that cloud also and the AI SaaS model also. But if I look at 5 years, hence, yes, that is an investment we are doing today, it will pay off in the near future.

Okay. And sir, just one more question. Sir, like out of the total revenue, what percentage do you have the breakup like what is the B2C or what is the like government business we are getting? Is there some breakup we can get?

I think maybe later on the IR team can pass you some information on that, they will share you.

Okay sir. Thank you, sir. So, best of luck for the future.

Thank you.

Thank you.

The next question comes from the line of Vedanta Bhadania with Canara Bank Securities. Please go ahead.

Hello sir. Sir, first of all congratulations for great set of numbers.

Thank you.

And I have two questions. First question is regarding the two other brands which we launched. So, what is the status on that and whether we have received the STQC certification on those brands or not?

So, we announced two brands, Nexiv ue and Eyra. Nexivue is already certified for the first set of products and more are underway. We've already started shipping those products in the markets from last month, April. This is end of April we started shipping post certification and this month more products are getting produced and launched. And as we now progress month -on-month, more certifications will happen and more, you know, volume will keep growing. Eyra, due to the supply chain disruption, some reworking in the R&D had to happen. So hopefully , we'll get certified in another two months and next quarter that may go to market.

Understood sir. And the second question is regarding what kind of demand we are seeing from government-backed projects?

So, it's very difficult to say. Suddenly things happen, suddenly things go slow. But I think the market is 15%-20% government. So, we plan in our business also similar, nothing no rockstar situation on the government side. So , 15%-20% of our revenue come through govt or large government projects or through tenders via the System Integrators or PSUs. I think that should be the situation this year also.

Okay. Thank you, sir.

Thank you.

The next question comes from the line of Udit Gajiwala with Motilal Oswal. Please go ahead.

Yes. Hi sir. Good afternoon. Congratulations on a great set of numbers. Just one question in terms of, you know, competition. I believe that, you'll are way ahead of the curve, but just wanted to understand the certification process , which was going on very slow around October-November, that seems to have picked up for even some of your peers who have been pointing it out. So do you see any, you know, threat or any such thing maybe not this year but, you know, from 2028 onwards or something like that?

Udit, I think we are preparing ourselves for any eventual competition. This year seems slow because one is, you know, people are slowly getting certified, they have to scale up as I said, on various fronts. We are far ahead than most of them, be it localization or capacity or R&D or product range or supply chain. Second is the supply chain itself this year is a big deterrent for anybody to compete really. I think they were unable to feed their own demand at the moment. So , I think that's another one. And I believe this will continue till the next year. So . we have a good, you know, head start with respect to our preparedness. We are further consolidating on all fronts. We are further expanding on all fronts, multi-brand strategy is further augmenting market share growth and their position at different positions of, you know price positions so as to take on any possible threat , competition which comes on any level. So, I think we are fairly poised and we are quite cognizant of possible competition coming in. We have some head start of information, thanks to our connects with all the SoC guys of who's preparing products or not. So, I think we are fairly poised with respect to competition and all.

Fair enough, sir. Yes. That's it, sir. Thank you and all the best.

Thank you.

The next question comes from the line of Vivek Gautam with GS Investment. Please go ahead.

Congratulations, sir, on excellent set of numbers. Big wealth creation for the lucky investor who got the allotment in the IPO, so I just wanted to know about the opportunity size for us and the expected growth rate and the differentiator for our company, especially dash cams and other being made compulsory a sort of for preferred not compulsory at least but preference-wise also sir?

Vivek, yes. So, the industry, like we said, you know, has been growing at generally about 15%-16% CAGR and we as an organization, if you see before 2025, we have been growing at a CAGR of almost 21% -22%. So , we have almost beat the industry growth rate consistently. As per all predictions, this industry should continue to grow at 15% -16% in quantity terms easily. I think last year was slightly muted essentially due to the transitions to STQC and supply side issues. So, most of the market research agencies were factoring that, you know, this year and next few years should be higher than 20% in terms of quantity growth. But, you know, the supply side constraints still continue. But we don't see any challenge in terms of, you know, the industry sustaining growth rates, because these growth rates, I don't think, has factored in the upgrade markets from HD to IP, and also the penetration still there is a long way to go. And we believe that we will always beat the industry. And in line with that for this year, we have factored in a 25% -30% quantity growth. So , I think this should continue, we should beat the industry growth rate as well as us beating the industry should continue.

And what about the differentiator for us, sir, differentiating factor for us?

So again, there are a lot of factors, but mainly , I would say, first and foremost is the brand. You know, even if in this segment if you still go out and check, I think now we have become sort of synonymous with the brand CP PLUS. Earlier also it was, but now with our advertising campaigns on the airports, on IPL, and the film stars, I think this would possibly be the only brand, which is there right at the end consumption level. And even in the other segments, which is the consultants, large customers, and SIs, there also we have been doing lot of work, doing B2B shows. So clearly the brand's recall and presence is a big differentiator. And of course , then the other moats that we spoke about the manufacturing, I don't think anybody has such a large scale integrated manufacturing setups. Product range across all segments, you know . The market is a mixture of SMB, large enterprises, government, consumer, and again when you map out the competition, you will not see anybody relevant across all these segments. So that's again a big factor for us, we are possibly one of the only brands which are across all the segments. Then, we have been in business almost two decades and most of the teams have been with us for a long time. So experienced teams who are ground connected, R&D, I don't think anybody is invested such deep into R&D whether it's in India or offshore. So , it's a multiplicity of factors: our distribution reach, relationship with partners. So, all that is playing out.

Thank you, sir. Keep up the good work.

Thank you.

The next question comes from the line of Darshil Jhaveri with Crown Capital. Please go ahead.

Yes. Hi. Thank you so much for taking my question. Firstly, congratulations on a great set of results. Lot of my questions have already been answered. Just wanted to get your view, like we think we are doubling our capacity by FY28, so by when will we, you know, be at full utilization? Because if you are saying industry is growing at 20%, but if we are doubling it by next year only, so are we expecting like a higher volume growth than the --much higher growth than the 15%-20% that's happening, because that will only help us utilize our capacities better. So, what are your views, sir?

So see, we are building the capacity in next 2 years, FY 2028, not FY 2028 but 2028 and to double. So, right now we are in 2026, so 2028 we plan to double. So , looking at a 3-year horizon, we will see how much growth we will do in our quantity. But should we continue to grow at 25%-30%, we will see what capacity utilization will come. And we are building it should tomorrow our export market comes up or ODM-OEM market comes up, you know, people have been approaching us to make products for them. Right now we are saying, we are utilizing the semicons for our own needs rather than making it for them, because of the shortage. So, I think we are just building that capacity , keeping that in mind, we will see by when the whole thing will get into full utilization.

And sir, you're targeting over the next two years and like the amount of money that you're investing in this, so?

Yes. So, we mentioned the INR200 crores to INR300 crores this year. The next year ones are still the plans are underway. But the strategy is what I shared what we are doing. We feel that the capex plans should be good enough to and the growth plans should be good enough to fund from our internal accruals , and largely the company is at a very minimal debt -equity ratio. So even if some requirement is there, we could look at some debt and fund it on a temporary basis.

Okay, okay. Yes, yes. That's it from my side. Thank you so much, sir.

Thank you.

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for their closing remarks.

Just want to thank everyone for joining the call , and hope you have, sort of, you know, met up to the expectations, and we look forward to joining all of you guys joining in the next call. Thank you.

Thank you, sir. Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.