Thank you v ery much . L adies and gentlemen, we will now begin with the question -and-answer session. We take the first question from the line of Suraj Malu from Catamaran. Please go ahead Sir.

Thank you for giving me this chance . Sir I had one question refe rring to the page number four of the investor presentation so on the power and grid segment, it is mentioned that the implication for the listed entity is smart meter as well so just wanted to understand if smart meters is a part of the listed entity or not.

It is actually a solution wh ich is driven it can encompass the smart metering as well so it is the entire end to end solution where smart metering can be part of the scope of the contract wh ich the buyer may decide and smart metering when the solution is done from us it is part of us.

So, it is a software solution and not the physical product of smart metering.

No, it is a smart meter as well so you have a smart meter then you have the connectivity then you have the so ftware as you are saying you right so when it is done like that it is actually taken as a project job many times in times to come it may happen then it will be under us.

Got it okay thank you.

Thank you. The next question is from Man ish Goyal from Thinqwise Wealth Managers . Please go- ahead Sir.

Yes, Sir thank you so much. I have couple of questions . Sir first on the gross margin side like for the third quarter in row we had seen gross margins at 36% and congratulations f or that. I would like to know how do we see going forward, do we see it maintaining this levels.

Thank you for your question. G ross margin it should be of similar nature unless and until there is a significant change in the raw mater ial cost which is practically not in our co ntrol so we will try to definitely maintain such kind of gross margins and hope to see that we do not deviate much on what we are already anticipating.

Yes, as of now because we have gathered a significant amount of orders to be executed during the remaining part of the year. We are in control of the margins.

Great madam and historically Q2 we always used to see within employee expense a certain element of ESOP cost involved so is there any element in this quarter as well or in first half.

Yes, it has been there in this first half and between last year and this year it is timing difference, but it has been factored in H1.

So is it in Q1 or Q2 madam and how much is the number.

It was in Q1.

And what was the amount madam.

We cannot give that exact number because it is related to the compensation of people.

Sure, and madam would it be possible to share the breakup like revenue in terms of projects in services and our transactional products if you ca n please share the numbers on revenue side , order inflow side, and order book side and maybe if you can give us the order book number, outstanding order book.

So, we do have an outstanding order of close to Rs.1 200 Crores. I am giving you a round figure or maybe precisely it is 1215 if I have to say, so we are quite loaded in terms of the order executions that have to happen during the remaining part of the year and you also wanted the breakup between the different kinds, so for Q2 of this year our system business was 64%, transaction 23%, services 13%.

This is you are giving me revenue or order flow.

This is the sales breakup.

Okay and how much is IG madam of the total revenues.

IG is close to 19%.

Okay that is included in the projects.

It is included in the system revenue.

S o, the order breakup is equipment is 42%, projects are 17%, transaction is 22%, and services 19%.

A nd the IG number please madam.

S o, IG I can tell you the value, so this is about 100.2 Crores.

S ure, madam last question on the status for our Kolkata plant how is it progressing. I believe we were expecting it to probably start it by the year end and what I see from the cash flow statement is that there has been a capex of 23 Crores in the first half so maybe if you can e nlighten us on the capex plan and the progress on the new Kolkata, thank you.

So, we are moving on the right track in Kolkata and things are moving as per plan and we expect that that should be happening and going live sometime next year.

Sure Sir. I have few more questions I will come back in the queue. Thank you so much.

Thank you Sir. T he next question is from t he line of Apoorva Bahadur from Goldman Sachs. Please go ahead Sir.

T hank you for the opportunity . Madam you provided the breakup for revenue into systems , transaction services can you also break up the system revenue into equipment and projects.

S o, equipment is 33% and projects 12%.

P erfect and madam the order book break up please.

O rder book so we have systems at 66%, transactional 17, and services at 17%.

Pe rfect that i s very useful . Secondly, I also wanted to know about the RDSS scheme firstly what would be the 32:35 audio cut in this scheme and secondly by when should we expect the materialization of orders here.

See RDSS schemes involves lot many things which we can do now because RDSS I am sure you may be aware that is an investment which is announced by the government which runs into 3,0 3,000 Crores supposed to be getting done by FY2026. Now there i s a dashboard which government runs which talks about the status of all the discip lines, how much money has been infused and what is the project status where they are reaching , you can always get to that which will give you some idea about as to how the project has been moving and how much of investment we typically would like to have from th e government in coming times but from our side we have multiple offers and s olutions which can be worked upon depending on how strategic they are to us we can do in the risk scheme and project but the status I think more than me the government side i tself will give you the overall spend and everything in very elaborate and very illustrative dashboard which has been made by government.

Sir this dashboard you are talking about is the smart metering dashboard.

No, I am talking about the usage and the status of the RDSS scheme by itself.

Okay sure Sir thank you so much. That is all from me.

Thank you Sir. We take the next question from the line of Raj Rishi from DCPL. Please go ahead Sir.

By when can you scale up your software and services related business as a percentage of total revenue significantly.

We are working . T his is a continuous effort which has been put . T his is not which will happ en overnight it involves a lot of field wo rk as you may understand, lot of concept, lot of realization and value addition which needs to be proven but let me assure that we have been working on this and this transformation will happen in times to come.

I believe Schneider globally had t aken over a company and that particular company has a subsidiary in India which is also into this medium voltage, so I believe in the previous call there was some talk of merger between getting it all in the listed entity any comments on that.

We have no visibility around that.

Okay thanks.

Thank you. We take the next question from the line of Viraj Mithani o f Jupiter Financial. Please go ahead Sir.

Good afternoon and congratulations for the good set of numbe rs most of my question are answered. You talked about all this new segment, this airport, e-mobility does it mean we are shifting from more products to solution based company that is why the transition ing happening there and also would it mean that our mar gins in days to come would be much higher because if you can give some opportunity size on all the segments you talked about emerging market, green growth, mobility it will be helpful.

See why we choose to talk about this there is nothing that we are leaving behind where they traditionally were. We are always there in that . We are trying to give a perspec tive as to how your company is trying to shape up with the emerging segment and that was a good idea which we thought that perhaps we can tell how the company has been shaping up and our ambition is to keep on driving profitability and this is something which we will be between the technology and the selection of projects and things like this which will h appen and evolve so it is not that we are coming out and we only talking about these new emerging sectors but as a matter of fact we thought that it would be relevant for you all to actually understand as to what the c ompany is trying to do but these things which we are being talked about and being spoken about every day.

So, we are becoming more solution -based company. We are probably moving towards a higher trajectory margin side that is what is the attempt is it correct to think that way.

With a limited audibility which we have today here I think answer to your question is yes.

Okay and Sir airport project you talked about what do we do there do we offer some medium voltage transformers, or we give some solutions to them like what was the project.

Yes, the basic bricks are these and then we try to evolve the solution around depending on the customer needs , if somebody is asking something which actually is as the product which you mentioned something on top of it, we do that as well so that is what we call as a project.

Okay and Sir the projects with the government side the money , the receivables are okay right , there I not an issue there because lot of problem before had happened in that cases.

So, on the re ceivable side we are doing much better, and we can see a good cash amount which is being generated in the organization. W e are working very closely with business and everybody and also customers to have the old rec eivables collected and now it is a much, much smaller amount as of today with respect to the old ones so we are seeing good efficiency in the collections as well.

Okay that is it from my side madam. I wish the team all the best and very best for the future.

Thank you. We take the next question from the line of Aditya Deorah from Divisha Investments . Please go ahead Sir.

Good afternoon, Sir. Sir in the notes to accounts we have mentioned about an exceptional item regarding the shift of existing plant located at Salt Lake to a new place in Kolkata so are we shifting everything to the new factory we are setting up at Prospace or are putting up a new plant in Kolkata.

Okay and we plan to dismantle the unit in Salt Lake.

Yes.

Okay and like madam what is the percentage of our revenues right now , digital revenues like how much percentage of our revenues is digital revenues right now.

So, we do not have that kind of a split with respect to digi tal because we often give a complete solution to the customers so that split is not available at the moment.

Madam a few years back in one of the slides in the presentation you had mentioned that our targeted digital revenue percentage would be somewhere around 25 from maybe around 10 -11 something like that so are we moving in the correct direction or in that particular direction at this point of time and where have we reached in the journey this is my basic query.

Yes, we are mov ing in that direction itself . W e are trying to see because with more and more digitalization happening with advent of AI which we are trying to bring i t in the system and trying to prove some worth to the customer wh ich we are doing so we are moving in tha t direction and that is what we are trying to do systematically and strategically as well.

Perfect. Thank you, Sir. Your results were very, very pleasant. Thank you.

Thank you. W e take the n ext question from the line of Mr . Sanjay Kohli from Goldstone Capital . Please go ahead Sir.

Good afternoon thank you for the opportunity. J ust wanted to know the breakup between sales to the public sector versus the private sector.

We do not have that with us because we do our business mainly through the EPC s and where they further bill it to their end customers, so we are not monitoring that kind of a metrics as such at the moment.

The customer end you are not monitoring whether you are selling to the division between government.

So l et me take this . I think perhaps what you meant was that how many is being end used by government of India or whether are you interested in knowing the buyer profile whom we are selling.

So that is there in the transactional piece which I think Suparna just mentioned some time ago transaction is sort of channelizing it through p artners which is typically if you see the sale which we have done in the quarter which just went by was typically about 2 3% a quarter of what we did and if we tr y to reach out to the end user which is government by either direct or channelizing it and typically the o ne which is coming from utilities of whatever we do which is the products which are being used up by utilities most of them is government is typically about 40% if I were to say this.

So, 40-60 mix, the 500 Crores of sales in the quarter will be 40% to government and 60% to the private sector customers.

What I was telling you Sir was a high-level number because it is not that we follow the same numbers depending on this is a project business so typical if you take a larger time window then typically about 40% is coming from utilities and rest are coming from other segments.

Okay thank you.

Thank you Sir. The next question is from the line of Sanjaya Satapathy from Ampersand Capital . Please go ahead Sir.

Sir thanks a lot for the opportunity . C an you just clarify that how much of your order book and revenue is to the group company and to the outsider.

It is roughly 20%.

The order book number that you gave that is 1215 Crores does that include sales to group company or not.

No, it does not include.

I mean this order backlog that you have that is of 1215 Crores what was it at the same period last year that is year on year growth is how much.

So, year on year growth Mr. Sanjaya is 24% last year in the same quarter ending on 30 September we were having 978 Crores of order backlo g and now what we are having is 1215 Crores, so it is 24% increase to be precise.

It is a little difficult to comme nt at the moment but as I mentioned we would try to maintain similar gross margin and keep a good control on the expenses so that is the outlook that we have.

Is there any update on the acquisition of the switch gear related business of Schneider.

There is no visibility at the moment on this.

Thanks lot.

Thank you. The next question is from the line of Suraj Malu from Catamaran. Please go ahead Sir.

Sir of the government cap ex that they have announced in the RDSS sector which is roughly 2.5 lakh Crores what will be the relevant market for the products that we offer the medium voltage product.

It will be for most of the offers which we have . T here are jobs where di stribution companies are trying to revamp their existing structure or augment it or make it more reliable so and then make substations for better distributions involve something which is high end technology move away from the more compactor solutions for d riving carbon footprint so we have actually even the ring main units or the AIS or the GIS everyone actually can b e sold depending on what sort of utility , what are the plans are because speak about what is happening in AP what is happening in Goa they are different because the charter what they are working on is different but then the good news is that we have some things to offer at each of these Discoms.

So, like any number out of 2.5 lakh Crores like 50% will be relevant addressable market for the products or like a sense of proportion.

Difficult to comment on that on a number perspective but I think I did mention sometime in the beginning that it is very good work done by government in terms of putting up a dashboard which tells you actually what the pr ojects are what the tenders have been closed what are they trying to do somebody is trying to put up a transmission line we have nothing to do the re, things like this . So, some state takes up 230 Crores for example and they say 130 Crores coming for putting up additional overhead lines so we have no work there but if someone says no, I want to go underground and then I need a distribution which will actually help support the underground over at present setup we have an opportunity there for supplying ring m ain units so it depends . It is difficult to quantify as of now if you ask me.

So, when you typically do it you actually do talk about having a separate n etwork which handles it and there are a lot of people as I mentioned. One of the drivers of RDSS is how do you make SCADA adaptability etc. come up, so we are talking about smarter ring main which speak to each other so that the outages can be curtailed and managed better so those are the areas where we can actually help the city to do what they want to do.

Okay thank you Sir.

Thank you Sir. We take the next question from the line of Mr . Manish Goyal from Thinqwise Wealth Managers. Please go ahead Sir.

Thank you so much for providing another opportunity so as far as the old plant is concerned at Kolkata has it been shut down completely or it is a phase wise movement what we are doing.

So, it is working it has not been shut down and we have a robust plan of actually moving it at what Suparna was saying some time ago. All disruptions will be planned disruption.

Okay great Sir. Sir any timeline would you like to specify next year by when the new facility can start Sir.

So, it is complex infrastructure which we are trying to make which is going to be a state of a rt and there are multiple parties who are helping us to do . We expect that this should happen sometime next year as I say and as we move on, we will keep highlighting the status as to how we have been doing there.

Sir how are export revenue shaping up. In Q1 we had a 28 Crores revenues and ideally, we are seeing that export revenue share has been 12 to 15% for us so in this quarter what is the number and how do we see it going forward and related question Sir are we seeing any disruption due to geopolitical situation in Middle East and Europe both for in terms of s ourcing material from there or even our export sales.

So, the export sales for this quarter is 3 1 Crores and regarding disruptions we are not seeing much of disruptions. We have some mitigating actions also lined up so there will be no critical bottleneck as for the current situation as of today.

So, supply chain has been more or less normalized for the component what we have been semiconductors and component.

Last question on the order pipeline growth like how are we seeing, you did elaborate various segments in your opening remarks but like if you probably want to get a more handle on the number side like how do we see the pipeline number growing and second related question in terms of do we see any challenges in terms of slowdown ahead of general elections next year thank you.

You see the pipeline is supportive of what India looks and that is not onl y true for us it is true for everyone, and I think your point is valid there may be some embargo on certain government decision which will happen as we move on going to the general election in this five states and it is difficult to predict. We can anticip ate there will be some deferment of closures which might be there but at the same time because of a business as I answered some time ago that this is not directly from government as well and there are a lot of EPCs who actually keep on patronizing us and giving orders so that will not get impa cted by elections any way but we do see that there may be certain exposure which we directly have with government and something which was related to get orders sometime just after Q4 and early Q1 that may get shifted know for a while so we are not able to quantify we are actually gearing ourselves so that we can see and we can have a consistent orders.

Great Sir thank you so much.

We take the next question from the line of Mr . Akash from Dalal & Broacha Stock Broking . Please go ahead Sir.

Yes, thanks for the opportunity, madam just one question if you could elaborate more on the exceptional item that is reflecting in this quarter.

So, the exceptional item is basically we have taken some p rovisions to take care of the shifting of the factory from the current location in Kolkata.

Okay so have we reversed the provision, or have we made additional provision , we have made addition right.

The first time that we made this provision.

Okay and how do you expect this item to I mean recur in the books in the coming quarters.

We have not yet made any analysis on that for the coming quarter so as and when ba sed on the progress of work etc we will take a call and then we will put into our book.

Thank you. We take the next question from the line of Vi raj Mithani o f Jupiter Financial. Please go ahead Sir.

Just one question I just want to know what level of capacity realization we are on right now.

So, we have different factors for different lines which we have. Typically, we are working at an optimal level I would say. F ew lines plus few lines minus but on average we are at optimum level or shade more than that.

Okay thank you.

Thank you. Ladies and gentlemen that was the last question for the day . I would now like to hand the conference over to Mr. Harshit for closing comments.

Thank you Seema. We would like to thank Schneider Electric Infrastructure management for giving us an opportunity to host this call . We would also like to t hank all investors and analysts for joining for this call. Any closing remarks Schneider Electric team.

I would first like to wish a great and happy Diwali to everyone who is on the call to them , their families and want to give an assurance that we are working and trying to take your company to the right direction all put togeth er so thank you again for joining this and wishing you great success ahead.

So, wishing everyone a very Happy Diwali and again thanks to everyone for your confidence in the new management and your support and we will live up to your expectations and we will try our best to achieve. Thank you very much.

Thank you. On behalf of Elara Securities Private Limited that concludes this conference. T hank you for joining us and you may now disconnect your lines.