Polycab India Limited analyst Q&A

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

Thank you for the opportunity and congratulations on a great set of numbe rs. Sir, my first question is on the domestic cable and wire segment. It seems to have grown at a very strong rate of 27% YoY. Could you quantify how much of that is volume growth and how much of that is value, and within that also possibly split between cables and wires?

Thanks a lot, Sonali. As far as domestic performance is concerned, it has been again one of the best quarters that we have seen. This is something which generally plays out that Quarter 4, we see a good pickup in demand and this is something that actually played out. Regarding the mix of value versus volume is concerned, the volume growth within the domestic cables and wires for the quarter YoY was around mid-teens, with the remaining growth coming from value. Within that, cables grew faster than wires. Cables volume growth was in the higher teens while volume growth for wires was in high single digit.

Ladies and gentlemen, we seem to have lost the connection of the participant. The next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.

Good morning, team. Thank you for the opportunity. Congratulations for great set of earnings. Just to expand on the previous question, if you could also give in the similar fashion for FY25 and if you could remind us for FY24? I am just trying to see what has been the volume growth trend for the last couple of years overall in the domestic market and also between cables and wires?

Sure, Achal. So, if you look at the entire year’s performance, again the volume growth for the cables and wires business has been around mid-teens. Cables has obviously grown a bit higher and volume growth for wires is again in high single digits. This is aligned with our guidance that we expect this market to grow between 1.5x to 2x of real GDP growth and us to outperform over that. We have been able to consistently do so and gain market share. We believe our market share now in the dome stic organized market is closer to around 26% to 27%.

And would you have, Chirayu, for FY24 also the volume growth for cables, wires and overall in the domestic business?

Achal, I don ’t have it handy, but we have disclosed it in our last year ’s call. So, probably you can refer to that.

Okay. The second question I have is with respect to the margins. For the 4th Quarter we’ve had strong margin performance. This is despite the relatively weaker performance in the export, which is the most profitable segment. So, I am just curious to understand in terms of the margins, has there any inventory gains, any one -offs here given 4th Quarter is the balancing quarter? I just wanted to understand your perspective on the same.

So Achal, there are no one-offs as far as margin improvement is concerned. The entire improvement is largely because of the operating leverage that we have got the advantage of. If you look at our margin trajectory of last three to four years on a quarter-on-quarter basis, you will notice a consistent improvement sequentially in every quarter and 4th quarter is always the best in terms of margins. This year has been no different and we have been able to improve on our margins in the 4th Quarter here as well.

Understood. And just the last question is in terms of the EBIT margin guidance for cables and wires, how do we look at that for the next three, four years?

Our guidance, as a part of Project Spring, is on EBITDA and we’ve given the guidance that over the near to mid-term we expect the EBITDA margins in the cables and wires business to be consistently in the 11% to 13% range.

This is only for cables and wires piece, right?

Yes.

And what was it for FY25? That’s my last question.

EBIT margins for cables and wires for the year were at 13.6%, so EBITDA margins would have been in the range of 14% to 15%.

Okay. Alright, I’ll fall back in the queue. Thank you so much.

Thank you. The next question is from the line of Renu from IIFL Capital. Please go ahead.

Hi, good afternoon team and congratulations for the strong performance. My first question is just to understand the 100 -bps margin expansion that we have suggested in the cables and wires, is it regionally driven or broad based and the key drivers here would be GTM and portfolio expansion or anything else? That’s the first question.

Sure, Renu. The margin expansion that we are seeing in cables and wires is on a sequential basis from Q3 FY25 to Q4 FY25. This expansion is a bit because of the operating leverage as well as because of the change in product mix. As referred in my initial comments, while on a YoY basis, cables has outperformed wires , sequentially, Q4 over Q3, wires has grown faster than cables and obviously since wires are a better margin business, it has also contributed in sequential improvement of margin. Although, our international business didn’t perform as well, has taken a bit of sheen of f that improvement that we saw. But the larger increase is because of these two reasons.

Got it. And the market share is also a resultant of GTM and regional approach or anything else?

So that is a continuous work -in progress. It obviously would have contributed in the improvement. But again, as I was mentioning, the larger part of the improvement would have been because of the operating leverage and change in product mix. Incrementally, if you look at a longer -term period, maybe over a period of one year, two years, three years, the other initiatives will definitely contribute much more meaningfully as far as margin improvement is concerned.

Got it. The second question here is on the solar portfolio, which is now the third largest category within the FMEG. So , what is Polycab value proposition here and our GTM strategy with entirely through system integrators, EPC contractors or we have direct revenue here from the end markets? And also, what are the plans for backward investment in manufacturing for this category?

So, Renu, largely we sell solar inverters in that portfolio. This are not manufactured in-house, we outsource the manufacturing and then sell it to the end custome rs. As of now, there are no plans of setting up an in -house manufacturing. So, we will continue with this model. We will obviously onboard more vendors through which we can increase our sourcing and then service the full range up-till 325 kW, which is what is the upper limit as far as the usage in India is concerned.

And any plans to get into solar EPC infra project?

Not as of now.

Sure. Thank you, team. That’s it from my side. I’ll get back with more questions if any. Thank you and all the best.

Thank you. The next question is from the line of Deepak Gupta from JM Financial Asset Management. Please go ahead.

Good afternoon, sir. Thank you for taking my question. My first question is on the export opportunity. If you could give us some perspective about how do you see export revenue shaping up for FY26 given the challenges that we are seeing in US regarding trade tariffs, etc.,?

Sure, Deepak. So as far as the performance on exports is concerned, we expect a material improvement going ahead every year. Under Project Spring, we have anyways laid out a guidance that we would want to increase the contribution of exports to the overall revenue to 10% from the current 6% that we saw in FY25. The lower performance or relatively lower performance in FY25 was because of various reasons. As you are aware in the first half, we were still going through our business model change in the US, which obviously led to a bit lower sale from the largest geography that we had over there, but that is now complete and behind us and we have our sales happening in the US t hrough the hybrid model. The other large geographies are something that we have tapped into. We have a very good order book coming in from Middle East, from Europe, from Australia and that is something that we will service over the course of next year and so on. Lastly, we don’t see any material impact as of now because of the tariffs which are being levied. As of the current status, 10% tariffs are levied across all these geographies which export to US and that means it’s status quo as compared to what it was a couple of months back. Even going ahead , post the completion of the 90 day period, if you look at the tariffs which are expected to get levied, India tends to benefit because the tariffs are relatively lower than the other larger cable exporters from Asia. So , we don’t expect any negative impact of tariffs. In fact, if you look at the current status, all our current orders which we had from that geography, we were able to pass on the increase in cost because of the tariffs to them. In general, if you take a mid-to long-term view, we are very positive on the exports opportunity. We keep on adding new geographies - as I mentioned, last year to this year we already added five new geographies wherein we are now approved as an exporter and we will keep on improving on that. In fact, what we are also doing is we are now setting up three different divisions within our exports wherein we will be catering to the OEMs, to the distributors and to EPCs through these separate teams. So, we are doubling down on execution, we are increasing the team and we ’ve also chartered out the geographies we’re going to want to expand to . We also have a list of the EPC contractors and end clients where we would want to increase our sales to and increase our throughput from the existing clients as well. So , we are very confident that we should see very good growth in exports going ahead and we should be able to achieve the FY30 target that we have taken within Project Spring.

So therefore, would it be right to assume that your EBITDA margins for full year, which is the 13.2% can only improve from here going onwards, given the fact that exposure will be increasing in your overall proportion of sales?

So, Deepak, there are multiple variables at play. Definitely, since exports business is a relatively higher margin business and if the mix improves, definitely that should help as far as the margins are concerned. But we should also look at the other variable s, which, for example let’s say we are also going to be investing a lot in capacity expansion over the course of the next five years. While in the initial phases, the utilizations are low, the operating leverage is something that goes away and that is where there can be a bit of a negative impact on the margins front. The other impact can be because at a Company level we will have to be invest a lot in advertising and promotion for our B2C business. A percentage of that gets allocated to the cables and wires segment as per the top line contribution and that can also have a bit of a negative impact. We are also going to be investing a lot going ahead on R&D and innovation and that , obviously, expenses can eat up a bit into your margin. S o largely there are positive variables as well as negative variables, and that is where the margin trajectory going ahead in spite of whatever will happen, I think we have given a guidance of 11% to 13% and we are reasonably confident that we should be able to deliver within those margin guidance.

Noted. Thank you so much.

Thank you. The next question is from the line of Sonali Salgaonkar from Jefferies India. Please go ahead.

Sir, thank you for the follow -up opportunity. Sorry I dropped off; my line got disconnected earlier. Sir, my second question is any pricing actions you have taken in the wake of copper movement YTD? And also thirdly is on the FMEG. FMEG margins I know this question had come up earlier, but what is the kind of sort of guidance that you would like to give on a sustained basis for FMEG margins going forward?

Sure, Sonali. So, as far as the cables and wires business is concerned, as you are aware, we pass on the changes in commodity prices on a monthly basis. That is the practice that we followed in the previous quarter and the month of the current quarter as well. Whatever inc rease or decrease in copper, aluminum or other commodity prices were there, we pass that on. Largely I think in the previous quarter on copper front as well as aluminum front a mid -to-high single digit pass on of the increase in commodity prices was done and again basis whatever changes have happened in this quarter, all those changes have been passed on to the end customer. As far as the FMEG margins are concerned, it is after almost 10 quarters we have seen a profitable quarter for the FMEG business. This is a result of all the initiatives that we ’ve been taking, wherein we have been able to improve the utilization of our manufacturing plants and hence we receive a benefit of operating leverage. We have also changed in the product mix that we have in the favor of higher margin products like switch g ears or a solar or conduit pipes wherein we are profitable. So that has led to this improvement. Going ahead, we expect that we should be able to continuously see improvement in our margins towards our guided range of 8% to 10% of EBITDA margins by FY30. So, every year we should see an improvement from the current margins that we have.

Ladies and gentlemen, the next question is from the line of Akshay Gattani from UBS. Please go ahead.

Hey. Thanks for the opportunity. My question is on the export front. I wanted to understand the profile of what kind of cables are going in the export like are these more of specialized cables or normal power cables, trying to understand like end user industry exposure in the exports market?

So, it’s a mix of both, but the higher proportion will be from low voltage and medium voltage cables, which has the maximum demand from across geographies. But having said that, we also supply solar cables or cables which are used in other specialized end-industries as well and that will obviously depend on the geography as well as the projects wherein we bid on. But to answer your question very simply, the larger contribution is from your low voltage and medium voltage cables with smaller part coming in from specialized cables.

Okay. Got it. Thanks. And another question is on the domestic front. What is driving the strong demand per se like end user industry like these are LV /MV cables or you’re seeing HV cables also doing reasonably well?

So, Akshay, since low voltage and medium voltage combined are almost 50% of the overall market, I think the kind of demand momentum witnessed over there will have the maximum impact as far as the industry growth is concerned as well as the growth of larger players like us is concerned. So that is obviously the primary type of cables which is driving the demand growth. But , even high voltage or EHV cables, the demand for those types of cables is also pretty strong. As far as industry is concerned, across all types of industry we have seen consistent good demand. Power industry is one such industry wherein we have seen an improvement in demand and we expect this to be a consistent phenomenon going ahead, especially the transition to renewable energy sources is something which is a very big opportunity in the country and for manufacturers like us and we are trying to tap as much of that opportunity as possible. Other industries, like real estate, it continues to do well and we expect it to do even better, going ahead looking at the kind of momentum we have seen over the past two to three years. We have the product categories which can be supplied to each and every type of industry, which is there in India, and we keep on improving on the qual ity of those products, the availability of those products, and that is where we expect that we continue to see the very good growth. In-line with our Project Spring guidance, we will target to grow the cables and wires business at almost 1.5x of the industry growth and continue to gain market share from the other industry peers.

Thanks, sir. This is helpful. One more question if I can. As you said, like R&D expenditure might go higher and this could have like near -term margins. So where will this R&D expenditure be going? And any guidance as a percentage of sales, what could be the range?

We wouldn’t want to give guidance on the percentage, but on an absolute basis, definitely it will continue to go up and it is not something which will just be a near-term phenomenon, it is something that we will do consistently. If you recall, one of the pillars within our Project Spring guidance is that we will increase our focus on innovation and R&D. So that is something that is within our “To Do List” and we will continue to focus much more or much more aggressively than what we have done in the past and increase our spends over there.

Okay, got it. Thank you.

Thank you. The next question is from the line of Praveen from PL Capital. Please go ahead.

Yes. Thank you for the opportunity. My first question is related to the EPC. As you had given ₹ 70 billion order book, is that only a BharatNet order book you have, nothing to RDSS? And also because now you had already given us a high single digit margin in EPC, so is that same kind of a margin we are going to expect from the BharatNet project as well? So that’s the first question.

Sure, Praveen. So, the ₹ 70 billion order book which I mentioned consists of two components. Of ₹ 70 billion, ₹ 40 billion is order book from the RDSS projects and the remaining ₹ 30 billion is from the BharatNet scheme. The ₹ 40 billion of RDSS order book is something that we have to execute over the course of next two to three yea rs. That will give us an almost consistent quarterly run rate of almost ₹ 5 billion from that and the BharatNet order book is from the Bihar order that we have won wherein the execution period is for three years. The capex part, which is roughly ₹ 15 billion and the remaining is something which is an opex part, and which will be accrued over a period of 10 years after the completion of the capex period.

Okay. Okay, that ’s helpful. The second question is related to the advertisement. That is down this quarter. So, if you can give what is the normalized number the way forward we can see and why that’s significantly 24% down in this quarter?

Couple of reasons, Praveen, over there. One of them is that generally in Q4 you do advertisement before the summer season and largely it ’s for the fans portfolio. As you ’re aware, this time , the summer season is a bit delayed and that is where our spends on A&P are also a bit delayed. We have started doing more on that front from April onwards and that is probably where you will see that cost getting reflected in Q1FY26. The second thing is we are also utilizing different mediums this tim e around. Last year we did a brand refresh and we had tied up with ICC , being an official partner for three of the World Cup events. That is something wherein we had increased our spend s materially last year. This year, relatively, it’s lower, but consistently every year you’ll see an increase over there. We are also utilizing different mediums for doing the A&P spend s. So , for us this year , digital medium is something that we have focused a lot on as well as on-ground activities with our retailers, distributors, etc., This type of A&P is relatively lower costing and hence you might have seen a bit of a dip as far as A&P spends are concerned. But again, going ahead, all the type of spends, both, above-the-line and below -the-line marketing activities are something that we will pursue and each year you will see an increase in the A&P spends that we will be doing for our B2C business.

Okay. Okay. So , we can assume this is a one -off, way forward and we will see the improvement there. Last question is related to the international business. So international business was down 24% and you had said that ’s a roll forward the next quarter. Is this nothing to do with the US tariff escalation or something is because of that as well?

So, Praveen, as far as the US tariff -related things are concerned, see the end clients obviously even for them there is as of now no clarity as what situation will persist, let’s say a couple of months down the line. So, whatever orders we have received that will continue to be executed. Whatever projects are ongoing in the US, obviously they wouldn’t get delayed, and they will continue to raise demand for whatever types of cables that they require. So , we don’t see any material change be cause of the tariff-related announcements as far as the demand from that geography is concerned. But, of course, post there is more clarity, let ’s say two months down the line , I think the demand momentum will improve even further and that is where I think the momentum from our sales to US will see further improvement and even for all the Indian players or exporters.

Okay. Got it. Thank you. That’s it from my side. All the best.

Thank you. The next question is from the line of Natasha Jain from PhillipCapital. Please go ahead.

Thank you for the opportunity and congratulations on strong set of numbers. My first question is on the export side. So, firstly, can you tell me the contribution from the US in our total exports for FY25 and ‘24?

Sure, Natasha. So as far as this year is concerned, the contribution of US to our overall sales would be in high teens, last year it was very close to 40%.

This you are saying share of total exports, right?

Total exports, yes.

Okay. And now that you’re transitioning and you said you’ve completed the transition process from B2B to B2C, and given that we’re sitting at a low base when the US is concerned and that market is the strongest for us, can we expect a very strong bounce up in the US export?

So, Natasha, as I just mentioned to Praveen, there is a bit of uncertainty because of the tariff -related announcement. Hopefully, it should get resolved very soon, in the next couple of months. Then, we believe there should be much better improved momentum as far as sales to US is concerned. So , as of now while obviously the improvement will be there because of our business model getting stabilized, much better momentum can be witnessed only after the entire tariff -related changes are implemented.

Understood. My second question is again related to wires and cables. You mentioned that sequentially your margin improvement happened also on account of favorable product mix. So, can you just throw some light as to what kind of product mix did we change in wires and cables that led to margin improvement?

So again, Natasha, as I mentioned previously, that if you look at sequential quarter Q3 and Q4, wires have done relatively better compared to cables, and since wires are of better margins, that led to an improvement in the margins of cables and wires segment.

Got it. So , it’s just more selling of wires and not really value -added products within any wires or cables category, right?

So, there would have been an improvement because of that as well, but it won’t be something which will be material in nature. The largest improvement will be because of wires versus cables mix.

Got it. And one last question. Your FMEG top line is definitely very strong, but like you mentioned, the seasons kind of moderated and further range can dampen the cooling season for this year. Can you tell us how is the secondary movement in the channel for your product specifically?

Natasha, we keep on receiving the benefits of all the execution steps that we ’ve been taking. Of course, the delayed summer is something that might have a bit of an impact as far as fan sales are concerned. But we have five other product categories which are also delivering very well. We have seen very good momentum on those product categories even in this quarter, and the month that has gone by, and we don ’t expect there should be any material impact on their sales because of whatsoever reason. So, I mean, on the fans sales, we will definitely have to see how the season pans out and the demand pans out. But otherwise, we don ’t expect the overall FMEG top line to be impacted as much on a yearly basis just because of whatever is happening right now in this month or quarter.

Understood. Thank you so much.

Thank you. The next question is from the line of Aditya Bhartia from Investec. Please go ahead.

Hi. Good afternoon, Chirayu. To start with, just clarification. This 11% to 13% margin guidance that you’ve given is at the EBITDA level and not at the EBIT level. Is my understanding correct?

That’s right, Aditya.

Given that we are having 14% to 15% kind of a margin this year, why are we kind of building in such a sharp decline in margins going forward -- is it just that we are being very conservative and actual margins are likely to be much higher than this guidance?

So, Aditya, if you see how we have performed historically, our performance has always been , and thanks to various reasons for that, we have been able to outperform our guidance. On the longer-term basis, we always believe that 11% to 13% of EBITDA margin is something that can be consistently achieved in the cables and wires business, and hence when we comment on guidance, we always give something that is achievable by us. In the near term or in the longer term, wherever opportunity arises and if there is a possibility that we can improve upon those margins through various reasons, maybe improve in the product mix or the various types of business mix, obviously we will go for that. But longer-term guidance for us will always be 11% to 13% of EBITDA margins, which we believe is a sustainable margin range for the cables and wires business.

Understood. Sure. My second question is just wanted to understand how relevant is power generation and power transmission and distribution related demand for us? And within power generation, if you could also split in case it’s possible between thermal and renewable, what proportion of our revenues is likely to be coming from cables that are supplied to BSNL?

So Aditya, it would be very difficult for us to quantify which industry is exactly contributing to what kind of demand for us since most of our sales are through distributors, but definitely , based on the kind of feedback that we are getting from various channel partners, we definitely know that this sector is something which is contributing very meaningfully as far as our sales are concerned. We are very actively present in power generation and distribution, wherein your low voltage and medium voltage cables are required and hence we are a big player over th ere. Power transmission is something wherein as of now our presence is very limited, but within a few quarters’ time, we should be able to start participating in that opportunity as well. So, with the power sector expected to do very well over the next thr ee to four years, we believe we should be in a very good position to take advantage of that opportunity and continue to grow our cables business through that.

And just a related question to that. Because a lot of orders that have gotten awarded, let ’s say on power generation side, especially on the thermal side, we will start seeing execution in the next few years. So is it that we’ve already started seeing the benefit of that or bulk of that benefit is yet to flow through to us?

So, I think, Aditya, this is going to be a consistent trend for the next many years. It is not something which is already behind us. We have seen an improvement as far as sales to the power generation side is concerned, but this is something that will continu e at least for the next few years. As we are aware, at least on the green power side, we have taken a very aggressive target of reaching 500 GW of power generation through renewable sources and we are roughly at around 200 GW of renewable power generation. So, definitely investments on that front will continue for the next many years and we will keep on supplying cables to that opportunity.

Understood. Thank you so much.

Thank you. The next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead.

Yes. Hi, sir. Thank you for the opportunity and congratulations on the great set of numbers. Most of the questions have been answered. I just wanted to know what’s your capacity utilization during the quarter and for the whole year? Any comments on the entry of new players? Any product launch in the FMEG segment?

Sure, Vidit. So as far as capacity utilization is concerned , at an yearly level, we are somewhere between 70% to 80% utilization rate. Quarter 4 obviously the utilization goes up because that is the quarter when you see the maximum demand. So , we will be north of 80% for the quarter, but on a yearly basis we are between 70% to 80%. As far as the entry of new players is concerned, see, I mean this is an industry which has done consistently well over the past three to four years and we have very good visibility of it continuing to do very well in the near future. The entry of new playe rs just reaffirms our thought process that this industry can continue to grow at a very good rate in the longer -term and that is why it makes sense for newer players to look at and the larger players to look at this as an industry. The positive impact of this also is that we will see the best practices of those players coming into this industry and hopefully the existing players can replicate that and improve on their businesses as well. What will also happen is that there will be an acceleration as far as the market share gain for organized players is concerned. We still have a very large unorganized market in this sector, and with newer players, larger players, organized players coming in, and a lot of improvement as far as the end customer demand for better quality products is concerned, this will all lead to much better acceleration as far as market share gains for organized players is concerned. Having said that, what we will also do internally is obviously we will double down on our execution. That is something which is a part of our Project Spring guidance. We have the experience of Project Leap with us. We know how to do the execution on the ground. Within Project Spring there are multiple areas of focus that we have chartered out for us. We are looking at capturing the various white spaces which are still there within the country. We are also working very deeply with our distributors to help them generate much more business. We will help them generate more leads so that they can reach more demand centers and can supply products to those geographies or to sectors where probably they are not as much present right now. On the institutional sales front, we are also setting up five different verticals through which we will be focusing on five diff erent sectors which are generating demand and that will allow us to not lose a single opportunity as far as all those sectors are concerned. So , all of these are in place, and we expect that for larger players like us, with established brand, established product portfolio, we will continue to see very good demand and we expect to continue to gain market share much aligned with our Project Spring guidance.

Thanks a lot, sir. That was helpful. Any new product launches in the FMEG segment?

No, we are not looking at any new product launches in the near future.

Thanks a lot, sir. That’s it. All the best.

Thank you. The next question is from the line of Shrinidhi Karlekar from HSBC. Please go ahead.

Yes. Hi. Thank you for the opportunity. Chirayu, may I ask how much of your business in financial year ‘25 deal from RDSS related project both cable, supply as well as EPC?

So, on the EPC front, you can assume largely the entire sales that we did for the year was from the RDSS project scheme related awards. Roughly , around 40% of th e order value is the cable supply component. So that is the kind of cable sales part that we would have done through the RDSS orders.

And are you seeing an incremental opportunity from RDSS-related project moderating? I am talking beyond FY26, I guess ‘26 you have order backlog already strong, but how should we think beyond ‘26?

So, as of now, the RDSS scheme is up till FY26, and tenders for various projects under that scheme are continuously awarded. So , we are currently looking at that for the near future. We will have to wait and see if that scheme is extended by the government, and if it happens, obviously then we will participate in that scheme going ahead.

Understood. And last one. I really want to understand your significantly superior margin profile. If you look at your close peers, it appears like you have at least 5% to 6% higher margins. So would it be possible to throw some light in terms of how would you attribute this superior margins to pricing, mix related scale, those factors and your own efficiencies?

I am assuming you are referring to the entire cables and wires segment wise.

So if I just look at your cables and wires margin versus #2 player, #3 player, #4 player, it appears you’ve five percentage point margin is higher and EBITDA, I want to understand how would you internally think is it how much is pricing led, how much is mix led there, how much is scale related, procurement, efficiencies, those kind of, how would you attribute that?

It will be a mix of all the reasons that you’ve mentioned. Definitely, one of the reasons is the business mix that we have, cables versus wires and the margins that we make on those products . The pricing of our products is relatively higher as compared to the other players in the industry, about 2% to 3% on the cables side, about 4% to 5% on the wires side and that definitely helps as far as margin improvement is concerned. The other thing is even in our exports business, the margins that we make are relatively much superior as compared to what our peers make on their exports business. So that definitely helps. The other part is also the mix within the domestic cables. So HDC versus LDC cables – LDC cables is a better margin business, and we have a relatively better mix of our product sales within our domestic cable sales and that also helps us in terms of the relatively superior margin that we make in the cables and wires segment.

Understood. This is really helpful. Thank you for answering my questions and all the best.

Thank you. We will take that as the last question. I would now like to hand the conference over to the management for closing comments.

Thanks a lot, everyone, for attending the call and thanks a lot for supporting us in our growth journey. We hope we will be working continuously together going ahead. At the Company level, we are very confident of the continued long-term growth, which is possible in this industry and the kind of growth that we are targeting for the Company, and we will be very happy if we will take this journey together. Thanks a lot and take care.

On behalf of Polycab India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.