Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Balasubramanian from Arihant Capital. Please go ahead.

Good evening, sir. Thank you for taking my question. First question, HFCL has decided to discontinue the manufa cturing of polymer compounds. So what is the revenue and margin in that business? And what kind of impact we can see for these discontinuations?

Yes. First of all, there was no revenue from polymer compound. It was being used internally as a backward integration for manufacture of optical fiber cable. So it was remaining within the Company. So there was no revenue. The reason we have discontinued manufacturing, so worldwide, the major refineries like B orouge or Reliance and all such refiner ies, they have increased their production of this component and they are manufacturing huge quantities. So their cost of production is much lower. And what we are now seeing that these compounds are available at a lower price from these refineries rather than we manufacturing ourselves. The price difference has gone roughly about INR6 per kg. If you buy from market, they are cheaper by about INR6 per kg. So there was no point in continuing to manufacture this compound once we have ourselves being able to buy it from outside the market. That's why we have closed it. So there is no loss of revenue in this case.

Sir, like you have mentioned about electronic fuses, like which are the regions you are witnessing order inquiries for electronic fuses?

Yes. We have received inquiries and we are in advanced stage of discussion, mainly from European region, and we expect good results very soon.

Sir, in this army project side, like we have cleared User Trial Readiness Review. So what is the next step for this project as business opportunity?

Look, UTRR has been cleared up. Next step is flotation of RFP that is the tender, which is expected soon now, maybe one or two months, which is expected soon. Only fi ve companies have been shortlisted, as I might have informed you earlier, Tata, L&T, HFCL, government's own factory, and I think one more company, I don't remember the name, but only five companies have been shortlisted. And HFCL has cleared all kind of Us er Trial Readiness, night firing, missile firing, gun firing. I think we have been the most successful in UTRR.

Got it, sir. Sir, the final question regarding you have mentioned that slowdown has continued on optical fiber and optical fib er cable side. So what is the realization point of view in this quarter? And any changes in the capex, what is the progress? And is there any changes in the funding mix? And you have mentioned about this Noida plant eligible for PLI. What kind of PLIs we can expect?

Balasubramanian, if you ask me 10 questions in one row, then I would not be able to answer.

Okay. Got it. Sir, I'll come back in queue.

No, you can ask me question on optical fiber cable, but y ou asked 10 questions in that same question, so it is very difficult to be precise. So ask one by one.

Okay Sir

So first of all, we are seeing the slowdown in the optical fiber cable market. Yes, there is a slowdown globally, which I've been very transparent about and reasons also I've shared in my opening remarks. But one thing needs to be appreciated that we have taken steps to see that this slowdown does not impact our business on overall basis. One, it includes that, as I said, passive connectivity solutions where we are increasing our revenue to INR250 crores from something like INR60 crores, INR70 crores from last year, and we expect in two to three years' time to grow to INR750 crores. And in any case, by that time, optical fiber cable market in next two to three quarters would have picked up in any case. So this will add up to our revenue. Moreover, overall Company, as I mentioned, huge increase is there in the revenue of telecom products. From last year it's about INR140 crores. This year we will be going to INR2,000 crores. So within the various diversified product range of the Company, these ups and downs happen in different segments. But the important point is that the management has foreseen this, taken adequate steps to have such a product range that the C ompany's revenue is sustained and also grow . This year, for example, you will see a reasonable increase in the revenue of the C ompany from 25% to 30%, which has been possible despite of this slowdown in optical fiber cable business because revenue from other segments is increasing substantially.

Got it, sir. Sir, on the price realization side

Sorry to interrupt, Balasubramanian, sir, but we request you to return to the question queue f or the follow-up questions.

Sure, sir. Thank you.

Thank you. The next question is from the line of Siddhant Singh from Green Portfolio. Please. Go ahead.

Sir, so my first question is regarding ammunition fuzes. Like in last quarter you told us you are into the trial zone, like within a few months Indian Army will start trialing the ammunition fuzes. So what is an update regarding that?

Look, fuze, as I said, we are concentrating right now on the e xport market. And while Indian Army is expected to float some more tenders and which we will definitely participate, but export market has given us a good traction. And soon we expect to receive reasonable size orders from the export market. So our concent ration right now is more on the export market because Indian Army's tenders will come, they will be decided, it will take time, some amount of time, but export market order booking may start much sooner.

Okay, sir. So we can expect in this financial year itself we will start generating revenue from the ammunition fuzes from export market?

We will definitely start having good orders soon. Revenue, I would say that they would they may start from the first quarter of the next year because building of infrastructure and all that, we may take a little bit of time. We may be able to start at the end of this current financial year or may be in the first quarter of the next financial year. But there will be substantial revenues coming from the defense segment.

Okay, sir. And sir, my second question is regarding like in the recent Budget allocation, BSNL has got around INR83 ,000 crores of allocation from Budget. So sir, as we are getting many orders from BSNL, so what you are expecting? This huge amount of Budget will get benefited to our company? And how much order we can expect from the BSNL side for this financial year?

Look, I can't quantify what kind of orders we will receive, but we have good hope from BSNL. Reason being, one, government is making full effort to revive them and a good amount of budgetary support is being given to BSNL apart from their own revenues. Moreover, with this improved financial position, BSNL's payment situation for their own tenders have improved substantially. What we earlier had a situation where payments were not coming from BSNL, now BSNL is releasing payment twice a month, which is a very much improved situation what we had experienced last year or even in the beginn ing of the current year. So we have good expectations from BSNL, not only from their own requirement but from the BharatNet Phase III also, which is the tender which has been floated through BSNL where it's approximately INR60,000 crores of capex. The enti re funding is coming from Government of India through USO fund, which has got a substantial amount of money already with them. So payment would not be a problem in BharatNet Phase III. So BSNL, yes, it presents a good market opportunity and it is really be neficial to companies like us because BSNL always buy indigenously manufactured products through indigenous manufacturers. And that is a great advantage to us because with the preferential market regime where indigenous manufacturing is preferred. And also at the same point of time, improved payment position of BSNL, I'm sure HFCL will be able to get good order book from BSNL in the current financial year and following years also. It's just not possible to quantify exactly the amount, but I am sure that m arket opportunity with BSNL would be reasonable for telecom equipment as well as fiber optic cable.

Okay, sir. Sir, I have one last question regarding optical fiber. Sir, as we are expanding our manufacturing capacity in optical fiber, do w e have any future plan to install our in-house preform plant? Like if we will have our own in- house preform plant, then our operational efficiency will increase. So do we have any plan for installing that?

We are under discussions for this because it involves a reasonably large capex. So we are discussing at this point of time the capacity which we should install and the capex per ton or per kg, whatever you call it, of plant which should be there to make it economically viable against the purchases. So it's a make versus buy decision, which is under evaluation at this point of a time. And whenever this evolution is completed, which we expect should be near future, one or two months, we will definitely be working on this. And if we find it economically more viable to manufacture, substantially viable to manufacture, we will definitely do that. And moreover, it's not only economic viability, there's also the sustainability of raw material supply in the situation where the market demand goes ve ry high, and we have seen in the past that the price of preform also goes very high, reducing the margin for the manufacturers of fiber and cable, this plant kind of a backward integration offers more sustainability also. So all these things are being unde r discussion very actively. And maybe in next one or two months' time we will take a final decision. Once we reach to our expected capex per ton and also the sustainability aspect is also well understood and then we will take the final decision. But I ca n tell you, this is under active consideration at this point of time.

Okay, sir. Sir, can you like give any ballpark number on likely how much of capex we will need per ton, like, any ballpark number?

I would not really go ahead on that at this point of time. Let us wait for next call where I would be able to be in a better situation to tell that. Right now if I tell you any capex number, it's not good to divulge our position to our suppliers.

Thank you, sir. The next question is from the line of Aryan Oswal from Finterest Capital. Please go ahead.

Sir, what is the scope of margin uptake as we are anticipating the revenue to grow from INR143 crores to INR2,000 crores?

What was your first part of question?

Sir, what is the scope of margin uptake as we are anticipating the revenue to grow from INR143 crores to INR2,000 crores?

Look, this revenue growth is from INR143 crores to INR2,000 crores in the curren t financial year which is majorly coming from telecom products, which we are selling to private operators and BSNL both. And generally, the margin, net margin is around 8% to 10%, as you know. Added to that would be some benefit from PLI also. So this will definitely result in increase in the margin with the increase of revenue. Percentage and revenue you can calculate. These are my best estimate at this point of time. So it will be increasing profitability as the net profit before tax remains around 8% to 10% and some benefit from PLI would result in this.

Okay. Thank you sir. And sir, are there any plans or timelines in place to reduce the percentage of pledged shares in the near future?

Please say that again?

Sir, are there any plans or timelines in place to reduce the percentage of pledged shares in the near future?

There is no pledge and there is no plan to pledge.

Sir it is showing a 44.5%.

There is a misnomer at that end we have brought in the notice of the stock exchanges and the depository also, we have given a non disposable undertaking to financial institutions as against loans taken by the Company . They are shown under pledge column. So there's no separate column for non disposable undertaking. So it is a non disposable undertaking by promoters rather than any pledge. This is a completely wrong format by the stock exchanges and depositories. This format needs to improve and we have made several representation s that this gives a completely misleading information to the shareholders that there is a pledge of shares. There is not a single share of the HFCL which is pledged anywhere let me be very clear. This is only non disposable undertaking. There is no pledge.

Okay. Thank you for the clarification sir. One last question from my side, sir. Sir as we have a strong order book of INR6,700 crores what is the order execution time line?

This is different in different orders. They range fr om immediate one month kind of a supply and they range for a 1 -year supply also. In most cases it is something like one month to six months for products and in the case of turnkey projects about one year to three years . And for O&M operation and mainte nance that may be five to six years or maybe seven years also. So it's different. For the product and the turnkey ranges from one month to three years. For the O&M, of course, it's a continuous stream of revenue which goes from six to seven years.

And sir, can you throw some light on the status of capacity expansion?

Yes, capacity expansion is continuing for fiber. In Hyderabad the plant is under construction. Civil construction has already happened. Equipment installation is under progress and for fiber optic cable also it continues in each of the plants, of course, but we are also now working on as you have seen our announcement to produce internationally also. In Poland, for example, where roughly about 3.5 million kilometer s of fiber optic cable capacity we are looking to create. So that is a separate decision, but yes it is under progress.

Okay sir. Thank you so much. That is all from my side.

Thank you.

Thank you. The next question is from the line of Ketan Athavale from Robo Capital. Please go ahead.

Hello sir. Thank you for the opportunity. Sir out of our total BharatNet tender of INR60,000 crores, INR65,000 crores, how much will be the OFC component, how much will be EPC component?

OFC component we are expecting a total it is being under some bit of a revision by government itself, but assuming certain numbers we expect about something like 10 lakh kilometers of optical fiber cable. So if you take a price of roughly about INR50,000 per kilometer so it's roughly about INR5,000 crores to INR6,000 crores of fiber optic cable opportunity. Double that amount would be EPC part of that, double or maybe a little more than that. And then there will be equipm ent like routers and optical equipment and all those kind of things. They would also be there. So for cable itself I would say roughly about INR5,000 crores to INR6,000 crores. Similarly about the routers, routers and those kind of equipment would be simil ar numbers and then the EPC portion. And also certain equipment or products to be outsourced from other suppliers like ducts which we don't manufacture really sourcing from others, they will also have INR5,000 cores to INR6,000 crores. So INR60,000 crores is roughly divided in these kind of numbers roughly.

And I just wanted to confirm you expect 25% to 30% revenue growth this year. Is that correct?

Yes. We very much expect that. That is our best estimate at this point of ti me looking at the products we have and the market opportunities we have, tenders we have participated and orders we expect.

And sir can you have revenue guidance for the next two years as well so FY'26, 27?

So I will not give any guidance, but I can say the way we are planning our products and the way we are planning diversification into defense and those areas, our products have now shown a lot of maturity. We expect that every year we should be able to grow by some 20% to 30%. In three years' timeframe our telecom equipment business should be around INR3,000 crores. Similar number would be the fiber optic cables. Similar number would be the EPC business. So this is the kind of best estimation we have looking at the market and our product portfolio and the market opportunities we see in front of us.

And how much margin are we targeting?

As generally as I said profit before tax is 8% to 10%. But now if you ask me any guidance, there is no guidance. This is our best expectation.

And just one last thing. So what is our current capacity and how much are we expanding?

Current capacity for fiber is about 1 4 million fiber kilometers which is getting into 33.9 million. Cable was 25 million which is getting into 35 million.

Okay sure. Thank you so much for answering my questions.

Thank you.

Thank you, sir. The next question is from the line of Hardik Vyas from ET. Please go ahead.

Good evening, sir. I had a couple of questions. The first one being sir what is the status of the two orders that we had of INR623 crores on the FWA and the second one of INR1,100 odd crores? What is the execution in this quarter?

What was the second question? One is the FWA. What was the second one?

The other order that we had received of INR1,100 odd crores, what is the status of execution on that?

Okay. I can tell you. The FWA order I expect the supply to start either end of this month or may not be end of this month then August itself. The product is under final stage of some software changes as desired by the customer, some small application related changes which is being done right now. Production line has already been set up which has been approved by the customers and we expect the bulk production to start maybe another one or two weeks maybe two weeks that is our best expectation, in two weeks bulk production will be starting and we will be commencing our supplies from month of August itself.

So some part of this quarter will see some revenue coming in from that FWA order?

Absolutely, we will see.

Okay. And we have not had any execution on the F WA order in the June quarter that we have seen?

Say that again?

In the June quarter we have not seen anything from the FWA coming?

Okay. And do we expect that to get over in this financial year or will it be stretched?

Our best effort is to supply the entire quantity before the end of the financial year so we can get more orders.

Okay sir. And out of the INR400 crores of telecom equipment orders that we have had, could you split it up in Wi-Fi and other telecom equipment products?

I don't have exact split available now. If you send your query in writing I will give you the exact bifurcation of this number. But yes there are orders I can tell you which are the items we have order. Orders are for Wi-Fi access points. A lot of orders for UBR. As I said UBR has got a lot of traction. We have developed such unique applications, use cases for this UBR that all the operators are preferring it. BSNL earlier had no plan to install UBR for backhaul ing their 4G traffic. But once they saw commercial benefit and reduced capex and opex, they are now demanding more UBRs and much earlier than what they had asked us to supply. Our supply program was let us say by November, they have taken those supply by June, July itself and they want more. So we can even see that there is requirement for UBR, there is requirement for optical equipment, there is requirement for Wi-Fi access points. Those all orders are there.

Okay. Sir, my second question is on the services. We h ave seen healthy margins of roughly 20% range for our services orders. So is this a sustainable kind of margin or because we have booked our cost in the previous quarter?

No. Look, there's no booking of anything. This happens as they acc rue. So this may vary depending upon contract to contract. Some cases where there is a contract with highly manpower intensive or product intensive, in some cases margin is much higher. In s ome cases margin is just 8% to 10%. Some cases it is 20%, 25%. Depending upon contract to contract it varies. But on a longer term if you ask me that what's going to be the overall margin on turnkey contract I will keep it around 10%. And it may change. Sometimes it will be more, sometimes it will be less, but generally you should take it at PBT of 10%.

Okay. And sir I think we had stopped taking any lower margin orders on the services side.

You are absolutely right. We don't take any lower margin orders of EPC. We have left away a number of such contracts because we are not interested in wasting our resources, manpower, trained manpower as well as working capital on contracts which are of a lower margin.

Okay. Sir, my last question. Why are our product margins so less? I think they are in mid - single digits, and what happened to our consolidated numbers? I think that is because of the optic fiber cable business being a little slow, because I think on the consol basis, we are a little less EBIT than the standalone?

Look, basically, I tell you, the lower margin in the product business, in some cases it is mostly because it happens product to product and time to time depending upon competition. Sometimes strategically you like to take orders in the beginning of a pa rticular product at a lower margin also because of strategic reasons. So it differs from product to product and time to time. There is no long -term particular margin you can predict that this would be the margin. As I said, generally, you can say the 8% to 10%, and margin has been lower in OFC business definitively because of the reduced revenue and also decrease in the prices of the products globally. Because of less demand, the prices will go down. So there has been lower margin on OFC business also, whi ch I said is a temporary phase. We expect it to improve in next two quarters.

Okay. And are export...

Sorry to interrupt, Mr. Hardik...

Last one. Export thing is INR1, 500 crores revenue target this year?

No, it would not happen this year because, as I said, the global demand has gone down. So it will be considerably lower. And overall revenue from fiber optic cable business is expected in India and abroad both about INR2,000 crores, what we had about IN R2,800 crores 2 years back because of the lower revenue from the global market. But as I said, we have compensated it by increasing the passive connectivity solution market, which is part of optical fiber cable business only and we have also compensated i t by increasing our revenue from the equipment market substantially, so INR140 crores to INR2,000 crores. I think the C ompany's working management, my product heads and business heads deserve a great appreciation for diversifying the product range, which in spite of lower revenue in OFC , because of global circumstances, one of the major product areas, still the Company will grow its revenue and profitability both in the current year.

Okay, that's all from my side. Thank you so much.

Thank you. The next question is from the line of Hitesh K. Patil from Krish Associates. Please go ahead.

Thank you, sir for giving me opportunity to ask the question. Sir, my question is regarding that in the last month the European Uni on has exempted HFCL from any kind of anti -dumping duties. And HFCL is the only company from the India that has been given this exemption. So how can you capitalize on these things?

This is a very good question. HFCL and HTL, both compani es, both are our companies only, they have been exempted from anti-dumping duty by European Commission. There was a very extensive inquiry from European Commission. I think hundreds of pages of documentation we had to send them. Then their teams came down to India from European Commission sat in our factories in Hyderabad for maybe 10 days, around 7 to 10 days in HTL in Chennai, examined every piece of paper we had sent them by going into our SAP system to see that every information we have given is authen tic and correct. Documents were verified, including suppliers, their invoices, and our invoices to the customers. Finally, they came to the conclusion that HFCL has followed absolutely fair trade practices, HFCL and HTL both, and they have not dumped any material into European market, which means we have not sold at a lower price than what we are selling in our local market. And also, we have not sold below cost. And therefore, there cannot be any anti-dumping duty on us. Whereas on every other Indian manufacturer, anti-dumping duty has been imposed from 8% to 11%. So this opens possibility for us for a better competitive price to that percentages, as has been imposed on others, in the European market, in competing with our Indian competitors and also Chinese competitors who already faced a much higher anti -dumping duty in the European market.

Sir, my question is still that in the monetary term, how much of the benefits can we expect from the revenue from that European Union because of this anti-dumping exemption benefit?

This question has two aspects. Benefit, one, comes from competition. Second, it is the market position which is also very important, that what is the kind of consumption is there in fiber optic cable. Right now, there is a slowdown in the market on an overall basis. So it will be very difficult to tell you in a quantitative term that how much would be the benefit in the current fiscal year or the next fiscal year. But yes, at least I can expect increase in profitability to the extent the anti-dumping duty has been imposed on others. Maybe some competitiveness, half of the percentage of that 10% or 11% goes in increased competitiveness, and half of it comes as a profitability. So it will all depend how much i s the demand in a particular year, but it will result in increase in profitability and competitiveness both.

Okay. And my last question is about that service PLI scheme announced by the government. Sir, how much of the money will we be get ting from that PLI and from when it will be started, tentative dates or amount.

The total is about INR650 crores we are eligible for . We will start getting it from the current financial year itself because our is not PLI, but DLI. It is de sign-linked incentive, which is 1% higher than the PLI. Ours is 6% whereas others is 5% on average. So we will start getting it from this year itself.

Thank you.

Thank you, sir. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Yes. Namashka Nahataji and thank you for the opportunity. Sir, firstly, out of the total revenue from the telecom product of INR615 crores, what would be the contribution from OFC, sir?

Yes, VR, can you answer this? Where this INR615 crores number is coming up or.

Around 44% is coming from optic fiber cable and related businesses and 56% from telecom and networking products.

So Jain sir, the lower margins are attributed because of this higher percentage or even a competitively higher percentage of OFC, that is the reason why we have

No, margins on overall basis, it looks low because there has been extremely low revenue out of this optic fiber cable business. So that has a lot of pressure on the margin. So capacity utilization is just 45%, 50% this quarter. So that is impacting the overall margin of this product segment.

In the OFC segment, we have 45% to 50% total capacity utilization levels for the first quarter?

Yes, roughly 45%.

Yes, 45%, and as I said, it is because of globally the market has slowed down. And it is not only HFCL. It will be for every Indian company or every global company, this is the kind of slowdown is there. And looking at this slowdown, what we have done, as I said, one, increased our business on passive connectivity solutions, which will have multifold increase this year and multifold increase in years to come, at the same point of time, developing products for data centers and concentrating on data center market. So what we are losing in optical fiber cable revenue can be compensated by these two areas. Optical fiber cable revenue from telcos to be compensated from passive connectivity solutions, and data centers. But in any case, the demand for optical fiber cable from telcos is also expected to come back to its original situation within by next 2 quarters, because spending, which has gone down because of various reasons as I explained, possibly would pick up by the beginning of the calendar year '25. It is very well expected. All over the world, it will pick up because of higher FTTH deployment, higher disbursement of Government subsidies. US alone, the Government subsidies for fiber optic cable to home is $61 billion, which has slowed down because of the current political situation, elections and all that, which is expected to again pick up from the first quarter of the new calendar year. So demand will pick up for fiber optic cable at this time and our revenue from that will also increase. Capacity utilization will increase, but also at the same point of time, our data center product revenue and passive connectivity so lution revenue will also go up. So in long -term, this diversification and increase in product range is going to be highly beneficial to the Company.

Sir, as you are harpening on the point for passive connectivity solution and data center addressable market, what are our products which will be catering to these two segments sir, if you could elaborate?

For passive connectivity solutions, all products which are required to install fiber optic cable, either underground or over gr ound, all products, except the duct. Duct we don't manufacture. Distribution boxes, couplers, splitters, joint in boxes, all these kind of products which are required for installation of fiber optic cable, number one. When I talk of data centers, again, t his kind of installation materials which are of a different level of quality because of high- quality requirements of data centers and high capacity fiber optic cables. In telcos, you mostly require fiber optic cables starting from two fiber going up to 288 fiber mostly. Nowadays, some demand is there for higher count of fibers also for FTTH solutions by large telcos internationally. For India, mostly it is limited up to 288 fibers. But in data centers, the demand is for more than 1,700 fiber per cable in each cable going up to 3,400, 3,800 fibers in the same cable. So these are very high technology and high count of fibers in the same cable, which we are developing. From 1,764 fiber cable we have already developed. Some 3,400 fiber cable is under development and under trial also. So these would be the equipment for data centers. But again, as I said, this would be used by some telcos also. So telcos as well as data centers would use this. PCS connectivity solutions there will be a different grade of quality for data centers than the telcos which use for underground and over ground project.

Sorry to interrupt, Mr. Kapoor. We request that you return to the question queue for follow -up question as there are several participants waiting for their turn . The next question is from the line of Purva Shah from Perfect Research. Please go ahead.

Congratulation for the good set of numbers, sir. I just had two questions. One, looking at the numbers for the quarter, we see that the tax rates have fallen. What is the reason behind that, sir?

Our CFO would like to explain that. May be Mr. Vijay Jain, you can explain.

Please repeat the question

Tax rate has fallen quarter-over-quarter, sir. What could be the reason behind that?

Okay. And my second question was about the Poland capex that we are doing. What could be the completion guideline for that?

Look, we are right now working on acquisition of land and all that which is in advanced sta ge. The total capex anticipated from that facility for about 3.5 million fiber kilometers equivalent cable is about INR145 crores.

Okay. Sir, I wanted a time line about when could that capex be actually commercialized?

Project, we would expect this to be commercialized in within the calendar year '25.

So in about six, seven months it could be commercialized and...?

No, a little more than that. I would say a little more than that, nine months, something like that.

Thank you, sir. All the best for the future.

Thank you.

Thank you, sir. The next question is from the line of Dipesh Sancheti from Manya Finance. Please go ahead.

Yes. Most of my questi ons have been answered but I just had a query regarding this recently what happened with Cloudstrike all over the world. Do we see an opportunity here with our networking products?

No. This is a different thing which happened. Unfortunatel y, there is no opportunity lost or opportunity gained by us because of this, because this is a failure of a cloud system, which was Microsoft, as we all know. Either there is no loss of opportunity or no gain of opportunity because of this for us. Unfortunate, which happened. I was in U.S. I had to go to some place. Flight just didn't go. There are thousands and thousands of people in the airport. No place even to put your foot. So you had all to come back. This is one thing which tells you how good technologies are but how bad technologies can be. One person acting in one company got down whole world on the knees. Can you imagine that? But no impact on us either way.

Okay. So I had just this question. All the very best for the future. Thank you.

Thank you. Ladies and gentlemen, we will take this as the last question. I would like to hand the conference over to management for closing comments.

Should I give my closing comments if there are no questions?

Yes, sir.

Good. So friends, I have outlined our performance of quarter one , our expectation for future. Most important point I would again try to reemphasize to all of you that the C ompany is very optimistic about its growth in near term and longer term. And the basic reason of that is we have concentrated on developing products ourselves with our own IPRs, which results in lower cost. Though it needs a lot of effort, a lot of hard work, but with our own IPR it's not only the lower cost, we can modify the products as required by the customer. As I just now said before a few minutes, fixed wireless access customer wanted some modifications to be done to suit their installation practices and applications, we have been able to do that. If I w as taking technology from somebody else it would not have been possible to make sure of that. Now, most important point is that we have created a diversified product portfolio within our product area not that we have gone into products which are not relat ed to us. All are either telecom or like different electronic products. Now, in fiber optic cable business, interval slowdown, we have taken steps to go into passive connectivity solution and data centers. We have created good product range of defence products, good product range of telecom products. So with this kind of a diversified product range, we are insulated from any downtrend in any particular segment. Downtrends can happen on any of the segments at any point of time. That's a phenomenon in every business. But the good part is that management should be able to foresee all that and take steps to broaden the product range so that any downtrend in any particular segment does not impact the overall performance of the Company and the growth keeps on happening. So those are the steps we have taken in the last couple of years and now they are showing results. As an example, INR143 crores of revenue last year in telecom products is going to be INR2,000 crores this year. So in spite of slowdown in cable mar ket, our revenue performance would not be impacted. So these are the steps we have taken to make sure that our growth is sustainable as well as it's rather profitability and revenue both increasing. Now another important point is the defense products. We s pent a lot of efforts and money also to create a defense product portfolio, which is now showing results. I may be able to give some good news very soon in terms of acquisition of orders for defense products. So what I'm trying to say, we look towards future of very good optimistical manner because of diversified product portfolio, because of increased product range, our R&D and increase in customer base indigenously and geographically worldwide. Moreover, projects like BharatNet Phase III is also expected to give us much increased revenue in the next few years. Though that tender is yet to be b id and finalized but we expect good opportunity from that also. So good future lies for the Company as the management best expects in near future and longer term. And we will keep on our focus on R&D, development of a diversified product portfolio within our range of products so that revenue and profitability growth both are sustained. Thank you very much, friends and see you all again next quarter. Thank you very much.

On behalf of ICICI Securities that concludes this conference. Thank you for joining us and you may now disconnect your lines.

Thank you.