Ladies and gentlemen, good day, and welcome to the Transformers and Rectifiers India Limited Q2 FY 2026 earnings conference call hosted by Novama Institutional Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Subhadip Mitra. Thank you, and over to you, sir. Thank you, Vumika. On behalf of Novama Institutional Equities, welcoming you all to the Q2 FY 2026 results call of Transformers and Rectifiers India Limited. We have with us today the senior management of the company, represented by Mr. Satyen Mamtora, Managing Director, and Mr. Chanchal Rajora, Director of Finance. I will now hand over the call to Mr. Satyen Mamtora for his opening comments. Over to you, sir. Good afternoon, ladies and gentlemen. A very warm welcome to all of you, and thank you for joining us on our Q2 FY 2026 earnings call. It is a pleasure to connect with you, and once again, as we continue our journey of transformation and growth. Earlier on Saturday, our Board of Directors approved the financial results for the quarter ended September 30th, 2025, which have been submitted to the stock exchanges and published along with the investor presentation. Let me share some key highlights and developments of the quarter. During Q2 FY 2026, our revenue stood at INR 460 crore with an EBITDA of INR 65 crore. The revenue during the quarter was lower primarily due to temporary operational challenges. Firstly, there was a shortage of key raw materials, particularly CTC, and this led to clearance delays and impacted production schedules. Secondly, heavy rainfalls across several regions affected manufacturing sites and readiness, leading to deferred deliveries of high-value projects and resulting in elevated finished goods and work in progress levels. Margins were also impacted this quarter, mainly due to delivery of the last batch of older or low-margin orders and effect of fixed costs on reduced revenue. Despite these short-term challenges, the fundamentals of the business remain strong. The company continues to execute its capacity expansion and backward integration projects as per plan. The Morai facility is progressing well, while Changodar expansion is slightly delayed due to monsoon and equipment delivery issues. It is expected to be operational in the next quarter. We deliberately moderated fresh order intake in H1 to align with the extended delivery schedules and capacity planning. However, we expect a strong order inflow in H2 with a robust pipeline of opportunities exceeding INR 8,000 crores. For the full year, we remain confident in achieving at least 25% revenue growth over FY 2026, with a target of around INR 2,600 crore with an EBITDA margin of approximately 16%. Before I conclude, I would like to address the matter related to the World Bank project that has surfaced recently. The project in question dates nearly four years back and pertains to transformer supplies made to TCN, Nigeria, which was completed successfully with all payments received. This was a World Bank-funded project, and we have not received any communication from World Bank post-2023 in relation to it. We would like to reiterate that none of our current or under-discussion orders are funded by World Bank. As a process, we were organizing corporate governance and compliance remain at the helm of everything that we do. This commitment enabled us to declare our audited results within just eight days of quarter close, a testimony to our discipline and transparency. On behalf of the entire leadership team, I would like to thank all our customers, employees, suppliers, investors, and board members for the continued trust and support to the organization. Together, we are building a future-ready organization poised for global leadership in the transformer industry. I am pleased to inform you that Chanchal Rajora has been elevated as Director of Finance with a larger capacity. Chanchal has been elevated as Director of Finance, who will be looking after the finances of all our projects. With a larger capacity, I hand over to him now to take you through the financial details. Chanchal? Thank you, sir, and good afternoon to everybody. I know that today, when you all are here, you must be having lots of questions about the company and company's performance. I will be happy to address all of this. Thank you, Satyen, sir, for the strategic overview and the continuing leadership during what has been a period of steady execution and reliance. I'm also pleased to share that I have been elevated as Director of Finance with the company, and I would like to sincerely thank the board and management for the trust and opportunity extended to me. It's an honor to continue contributing to the TRIL journey and for the strength and sustainable growth. During the quarter, our standalone basis revenue operations stood at INR 428 crore compared to INR 46 crore of Q2 FY 2025. The moderation was primarily due to the temporary supply-side constraint and the deferred projects delivery. I'll be explaining them further during this call. EBITDA comes to INR 42 crore against the INR 76 crore Q2 FY 2026, with the margin affected by the execution of the lower margin orders and also the lower capacity utilization, as well as the delay in the deliveries to particular PSUs because of the non-readiness of the sites. Profit after tax is INR 57 crore, whereas in console basis, revenue from the operation excludes INR 460 crore compared to INR 260 crore of Q2 FY 2025. EBITDA comes in INR 65 crore in Q2 FY 2025, and the profit after tax excludes INR 37 crore. A very unique feature in this quarter is that all our subsidiaries are doing excellent results, and the profit from the subsidiaries are increasing year and quarter, which shows that the company's backward integration strategy is working very well. The way the manner the company is planned to come up with the backward integration facilities, that has been basically reflected in this particular quarter. Despite these near-term impacts, our financial position remains very strong. We continue to maintain healthy liquidity with a current ratio of 3.45 and efficient management of receivables and payables. Our focus on the cash flow generation, working capital optimization, and the cost control has enabled us to maintain sustainability even during a softer revenue quarter. The company's balance sheet remains robust, supported by the steady operating cash flow and the conservative leverage profiles. Investment in the capacity expansion and backward integration are progressing as planned and are expected to contribute meaningfully to the cost efficiency and marginal improvement from next quarters. Looking ahead, we expect a significant robust H2 FY 2026 driven by the normalization of supply conditions, improved plant utilization, and execution of our strong order book. For the full year, we are on the track of achieving at least 25% revenue growth over FY 2025 with an EBITDA margin of around 16%. Our commitment to becoming net debt-free within the next 18-24 months remains unchanged. Before I conclude, I would like to draw all of your attention to what just Envis has explained about the World Bank. I would like to add a little bit on this. This World Bank-funded order we have executed for the TCN, Nigeria. The order quantity was 70 transformers worth of INR 24.7 million, and all these orders have been executed in FY 2022, except the three transformers which got accidented during the discharge in Nigeria, which was rebuilt and resent to them in FY23-24. The 90% payment of entire transformers we had received in FY 2022 itself, and the balance 10% we had received in the first quarter of this year. At present, from our order book, we do not have any single order which is funded by the World Bank, neither in our inquiry book, any order which has been funded by the World Bank. As the company is focused on the India growth story, the company wants to contribute mainly to Indian growth. We do not intend to increase our exports also, and we do not intend to extend any of the projects which are funded by any of the authorities like World Bank or Asian Development Bank. In conclusion, I would like to thank our investors, board members, and the team members for their continuous confidence and support. We remain firmly focused on financial discipline, sustainable growth, and the long-term value creation to all our stakeholders. With that, I conclude my remarks and thank you all once again for joining us. I will now let the floor open for the questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Piyush Kumar from Magnus Hathaway Investments. Please go ahead. Yeah. Hi, am I audible? Yes, you are. Yes, Piyush. Yeah. Hi, sir. Good afternoon. My first question is regarding the inquiries under negotiation. Currently, as of Q2, we have around INR 18,700 crore of orders under negotiation. Can you just shed some light on which sectors and industries these orders are coming from mainly? These are mainly from national utilities and state utilities. Some of them are from GETCO, some of them are from Power Grid, NTPC, and the like. All right. So sir, currently, we have around INR 5,472 crore of unexecuted order book. Can you just shed some light around over the next two quarters, how much can we execute out of it? Piyush, I just addressed this issue that as we said that we are trying to basically achieve 25% over and above what we have achieved in last year. We are hoping that in this next two quarters' time, we will be somewhere around INR 1,600-INR 1,700 crore of execution. All right, sir. Just one last question on the World Bank debarment, sir. What TRIL is doing to clear its image? Because there is a lot of fear in the market around TRIL now that the World Bank has debarred. Are there any long-term consequences of this investigation? Look, this is no investigation. It is World Bank has basically debarred us for not participating in their tenders. As of now, as I told you, we don't have any inquiries or orders which are related to the World Bank. As you all came to know about this last quarter, last week, we also came in the last week. We are already taking up the matter with the World Bank, and we'll be shortly replying to the World Bank on these matters. As the MD has explained to you very well that if our corporate governance and processes are not that strong, we would have not been able to declare our results within eight days from the end of the financial years. So we are very strong on our corporate governance sides and our processes sides. We are taking up with the World Bank since we were busy in our quarter-end and H1 audits. Tomorrow only, we are taking up with the World Bank these issues. We are writing them on that, as well as we'll be sending a clarification to the exchange in this regard. I would like to ensure everybody on that that there is no business which is going to be affected because of this because we don't have any issues and we don't have any business. Also, I would like to add that if this order, which was also of 2020, we have concluded in 2022, last batch of payment we received in April, May 2023, it means this year only. If World Bank had any issue, they would have stopped our payment, but they did not do it, and they come up with this now in November. We also need to address it very categorically, very clearly. I would like to tell you in the past also, TRIL has come strongly whenever such issues have come up. This time also, we will rebounce greatly. Do not worry about that. Okay, sir. Thank you, sir. All the best. Thank you. The next question comes from the line of Balasubramaniam from Arihant Capital. Please go ahead. Good afternoon, sir. Thank you so much for the opportunities. Sir, regarding this World Bank, I think the World Bank. I'm sorry to interrupt you, Mr. Balasubramaniam, but your voice sounds muffled. Can you please speak through a handset? Right now is fine, madam. It's still muffled. Please speak through a phone. Now it's audible, madam? Yes, sir. Thank you. Sir, actually, World Bank and MD vice presidents gathered evidence and issued a notice of sanction proceedings in 2013, at which the final department. I just want to understand, these are the inquiry pipeline which is related to exports, nearly 25%. Is there any impact on those export-related pipeline last four to five months, and how is the current pipeline with that? What is our concrete strategy to balance both domestic demand with the higher margin potential of exports? Bala, first of all, I would like to tell you that the inquiry line what we have as of today is 85%-90% indigenous inquiries, right? All other inquiries, which are export inquiries, there is no government NTPC, or there is no World Bank funded, or any other funded projects involved in that. It is not going to have any impact on us, either on the value or on the margin side or any other side. Yes, it is a matter related to the image of the organization, which we are going to take up very, very aggressively with the World Bank. As they said that they have sent a letter to us, the mail to us in July this year, we have not received that. We are going to ask them that whatever the things are there, we are ready to work with them. If you see in that letter also, they have mentioned that we last cooperated with them in the past if anything has come up, right? We strongly believe that this will be resolved very soon. As far as the business is concerned, it is not going to affect at all on that. Okay. Sir, on the 35%-40% of revenue comes from spike in transformers, like farmers are acquiring these segments having higher margins. What are the strategies to grow in this segment, and is that a cross-selling opportunity to existing transformer customers? How does the growth outlook for steel and steel sector, like the major key consumers of farmers or transformers, impacting this segment profile? Sir, I would like you to address this, please. Sorry, Bala, I couldn't get your question clearly. Please can you come back again? Sir, he wants to understand that special duty transformers, which is our specialization, how is the outlook of that business? That business is currently looking very lucrative. There are a lot of projects that are coming up in certain countries which require these special duty transformers. Apart from one of our other competitors from Italy, we are the only qualified vendors for this. The inquiry pipeline for this is close to about INR 400 crore-INR 500 crore. Okay, sir. Sir, we have guided their 85%-90% kind of utilization by this year. These are grand utilizations. I think we are adding nearly 22,000 MVA of new capacities. If you could share, is there any risk of execution bottlenecks in terms of project delays? When can we ramp up this new capacity? The Changodar capacity is slightly delayed by one quarter. Once the Changodar capacity is up and running, I think by the end of this quarter, we should be very fairly placed at a very high level because we have orders on those also. We are currently holding ourselves not to take orders as long as the capacity is not completely up. There are certain unforeseen reasons because of which we have had some issues in completing that project. Okay, sir. My last question, we are expanding into CRGO processing unit and other factors. Bala, can we please allow others to have a question? Can you come again, please, sir? Sure, sure. Thank you. Because I am seeing on the screen that a lot of people are saying that why one person is having so many questions. I hope you don't mind. Yeah, yeah. Thank you. Thank you. The next question comes from the line of Gayathri from Amity. Please go ahead. Madre, can you please ask everybody one question at a time so that others can get a chance? Because we have almost 480 people in this call today. Sure, sir. This is a reminder to all the participants that please restrict yourself to one question only so the management is able to answer everybody's question. Please go ahead, Ms. Gayathri. Hello. Am I audible? Yeah. Sir, question is related to the business. I just want to understand, do we have any pipeline updated with World Bank for this INR 5,000 crores? Do we have any addition into this? No, there is nothing. [Crosstalk] There is nothing in our order pipelines related to World Bank. Nor in our inquiry. We can say that the entire 18,000 belongs to India only and some other locations apart from World Bank. Yes. Okay. Sir, do you have any update? [Crosstalk] Yeah, I got it. I got it. Sir, do we have any other update related to this quarter as our profit has been reduced drastically? Will it be covered in the next quarter for October-November-December? Do you think it? Or still do we have some issues with these books? One of the reasons why there is some downturn in the profitability is because we have given ESOPs to our people. That is one of the reasons we wanted to make sure that everybody is now aligned in the growth of the organization. Organization-wide, we have taken a decision that we will give ESOPs to everybody so that everybody is aligned. That is the reason why you see some downturn in the profitability. Okay. Gayathri, Gayathri. I remember one last question. Can I go? Gayathri, just to add up what MD has said and what is your question is that, look, this is one of the quarters. In a long-term, when we're talking about a long-term growth and long-term business, one quarter can come like this where we have a less margin and less profits. In coming quarters, the profit will again bounce back onto the levels what we have been achieving last three, four quarters. I assured that in these quarters, the profits will be much, much higher. You don't need to worry about that, right? There is one addition that has started from this quarter in our company's books is that which may have the impact on the bottom line is that earlier August, the company had issued some stock options to around INR 26,000, 26 lakhs + stock options to its employees. As per India's guidelines, we have to make the provisions for the expenses which will be having once the options will start getting restricted. Around INR 3.76 crore impact will come on the is coming into the bottom line on that. Every quarter, it is going to come up. We will be from next quarter, we'll be working on that because of some good operational efficiency and some good other returns. We should be able to minimize that one. Thanks. Thanks. Hope so because I'm invested in TRIL since it was trading around INR 50. But today, I'm getting some fear. Apart from that, we had some issue with the government body last around three or four years back with some certification issue. I am pretty much sure that company will come up with this issue again with the profitability. Hope so that should come up on the early basis by next quarter. Thanks, sir. Thanks team for your support and help. Thank you. Yes. Thank you. The next question comes from the line of Subhadip Mitra from Novama Wealth. Please go ahead. Yes, sir. Just wanted to understand that you did mention that the guidance for this year, we are now looking at a number of around INR 2,500 crore, which is a cut from what we were expecting earlier. How much of this guidance cut is because of the delay in the Changodar facility? How much is because of the deferment of certain projects that you mentioned earlier because of shortage of components, etc.? How much of this do you think can be recovered over the rest of the year? On similar lines, if you can also talk about some color on next year, which is, let's say, financial year 2027 and 2028, how do you see those numbers turning out? Thanks. Okay. Subhadip, very well asked this question. Let me tell you that first of all, because of the Changodar facility, not much impact has come on the revenue guidance of earlier. Say around 10%-12% should be the impact of that. The majority of impact what has come has come because of the short supply of the raw material, particularly on the CTC and bushing side. Look, when last year we were not getting the CTC from the indigenous customers, we started importing them, right? And we were the first company to start importing the CTC and using it here into the indigenous customers. What has happened only this quarter, the government of India has come up with the requirement of that since the touch copper has come up. Then copper, whatever is importing, needs to be basically have the BIS certification. It took some time for us to make the customs authorities understand that the material we are importing does not come under that purview. Because of that reason, almost 12 jobs of ours were stuck for quite some time in customs clearance. With the help of the other authorities, with the help of the power, later we should be able to convince these customs to clear them up. That has impacted the business side. This is going to be basically said, not that much of the train into the requirements into system is coming up. We are trying to recover as much as possible in the have to, but you should understand the jobs are jobs which have been made. If a job is not, this product is not one day made, it's required 35 days to make the product. That is the reason we are saying that we will be losing some business this year. As far as the next year is concerned, we are very optimistic about the next year. I don't think that anything going to be changed in the next year. We will be completely on track for the next year's business. Can I assume that next year's number, if I remember correctly? Sure. Sure. Subhadip, I think next year's numbers will tell you in this quarter's board meeting first. Secondly, adding to what Chanchal has said, from what I have seen, the Changodar plant has made a dent of about 25-30% in terms of loss of production, which we will be able to make up in this month because the plant is getting much larger. We will be able to make some of it in this quarter, in the next quarter. Understood. Understood. With regard to the bushings and the CTC short supply, because since that supply is not in our hands, can that remain a challenge going ahead? Subhadip, by December or I think September next year, we should have our own CTC plant, which would be doing about 1,500 tons a month up and running. Our RIP and bushing plant also should be in June. First production should be starting in June. With all that in place, we should have relatively less issues about CTC and bushings next year. Even our tank manufacturing unit should be up and running in August. All our new projects will be up and running very soon. Understood. Thank you. Thank you. Thank you. The next question comes from the line of [Ashish Soni from Family Office]. Please go ahead. Sir, we are one billion aspiration target by FY 2028. What are we doing to achieve that? Any risk mitigation plan, like as you said, your current expansion circumstances were there. What mitigation steps are we taking? Can you highlight on that? Ashish, the 2028, 2029 target still remains the same. We are 100% sure that we will be achieving that target. Right. Look, whatever risk we have foreseen, we had already started working on them with having the backward integration facilities that every year in that way, right? We hope, as I just explained, that by quarter three of next year, all these facilities will be in place. To achieve that target, there is no problem we will see into that. Yes, this quarter, I would like to add that why the Changodar facilities got delayed in the results. One very, very important aspect of this is that in this year, the rains are so huge that almost for two months, we did not have any work in that plant. Then the equipment got supplied because of this rain and all these things, which is basically not in our hands. We are trying that as soon as we should be able to conclude those bottlenecks, and we are working out on that. Regarding the material mitigation is concerned, whatever CTC problem we had faced, we have overcome that. Now, customs understood our things, so we will not have any other problem. Bushing is that we are trying to overcome with finding a new market, new customers, new suppliers of that. We are making that the government utilities should accept those products. That way, we will be able to mitigate that. For 2028-2029 guidance, we do not see any problem yet. Just to add on to this, do you think you can achieve INR 5,000 crore revenue next year if your guidance holds based on whatever you are telling customers? I'm optimistic on that. Just now, MD sir has said that when we come up in the next quarter with you, we will give you the firm numbers of next financial year. Okay. Thanks for all this. Thank you. The next question comes from the line of Mayank Chaturvedi from HSBC. Please go ahead. Yeah. Hi sir. Thank you for the opportunity. On the revenue guidance cut, may I ask, due to these dispatches getting delayed, what are the liquidated damages that we might be looking at from the customer due to these delays? Mayank, my apologies. I missed you in the morning. First of all, I was in a flight, actually. Mayank, look, what has happened that this delay is not because of the other issues. Particularly, delays are there because of the site readiness and all other issues, right? And the liquidated damages wherever the delay is there, particularly with the Power Grid. As we are basically under, we are already accounting for them. We are also in touch with them to basically come out with a solution where if there is a product delayed from our side, there is a product which is getting delayed from their side also for the site which is there. Some reasonable solution will be there. The liquidated damage is not that much. We are already providing them for, right? It will not have any impact on our profitability side. That much I can assure you. When you say you're providing for them, you mean you've taken provisions for it in this first time? Yes. As per the interim guidelines, our auditor insists us on for any delays, supplies, provisions. Also, we are a company. We have a practice to take care of those provisions. Also, when we go to the pricing and when we go to the customers, we already take the risk alignment in discussion. That is already inbuilt with the price what we give it to the customer. Okay. On the fees of cost, can you tell me how much effort was recognized for this quarter? INR 3.76. Okay. Sir, I've seen the balance sheet. There is a reclassification between non-current trade receivables and current trade receivables. It was about INR 340 crore in non-current. That margin, can you elaborate on that? Mayank, all these non-current trade receivables are basically the retention money which is lying with the customers, which they give us in project completion. Whatever retention money is beyond six months, it has been taken into the non-current trades. Okay. I see that it has been reclassified for margin also. That's why I asked. Yeah. Yeah. Okay. So you expect that to be realized. Okay. Last question, sir, on this rebalancing department, they also noted, also say that any NDB funded projects, I mean, this department will be followed by other NDB funded projects also somewhere on those lines. Do we have any projects in our world of the core in the pipeline right now which are funded by any development bank? Mayank, basically, let me explain to you and all, right? World Bank or these kind of the NATTs are basically mainly funding to the projects which is of the African countries, right? Where the African country does not have the money with them, and they go to the World Bank or ADB or anywhere, right? Most of these projects are either on the site delivery basis or delivered at the client side or the execution, everything involved into that. If you have been following it up, say in the last three consecutive calls, we affirm that we have stopped putting on the delivered site businesses on the export orders. Any inquiry which is coming to that manner, we have stopped that. Because it takes a lot of time, our capital gets involved into that. Whatever export opportunities we are offering, we are either offering on the export basis or FOB basis. This is basically, this will have no impact on us at all. In our present order book, there is no business which is of the government entities of any of the African countries or any of the countries, right? In inquiries also, there is no such inquiry which is of this kind. Fundamentally, the company has decided that we will not go beyond 15% on the export sites. Fundamentally, we have decided we will not put any CIF or FOR delivery export orders. Fundamentally, we have decided that we will be more focused on the payment cycle rather than on the volume of the business. This particular department will not affect anything on us. In fact, we are surprised at why World Bank has come after two and a half years for that. That is the. Okay. Okay. Thanks for the clarification. Thank you. Those are my questions. Thank you. The next question comes from the line of Anupam Goswami from SUD Life. Please go ahead. Hi sir. First question on the revenue guidance that we have had, how does the possibility falls into that? How much of a volume we can make out? Anupam, there is background sound for you. If you can just mute it down and then somebody's talking, I think, around you. I cannot hear you. Yes, sir. Sorry, sir. Is it better now? Yeah. Okay. Sir, on the revenue cut, how much of a Changodar facility revenue are we building in the second half? And about another 22,000 MVA that we are targeting, what sort of expansion timeline we can see? Anupam, the 22,000 MVA we are coming up in the Morai plant, right? That 22,000 MVA, I just can say that it is in line. We can say that from fourth quarter, by fourth quarter, this will be completed. Revenue impact will start coming from the quarter one of the next year, right? As the Changodar side is concerned, as presently around, as he said, around 20%-25% revenue loss is there because of the delay. In coming months, that is going to be mitigated on that line. From next year onwards, both these things will be into the line. Okay. And sir, when second half, how much of a margin are we looking at targeting? Because this time, the execution also was lower and some deferment has happened. I'm guessing from now onwards, it will recover. Hence, should we go back to our margin what we delivered in the previous quarters? Definitely. We will be near there. We will try to better that up. Okay. Okay. Thank you, sir. I'll turn back. Thank you. The next question comes from the line of Samarth Khandelwal from ICICI Securities. Please go ahead. Hello. Am I audible? Yes, Samarth. You are audible. Yes. Thank you for the opportunity. Sir, my question is on margins. To exit FY 2026 on a 16%, I'm looking at around INR 300 crore EBITDA we'll have to do in the next quarters. What factors make you confident in achieving? Could you go over the factors that help you be confident about achieving this number? Also, secondly, what order book do you look at when exiting FY 2026? Thank you. Samarth, order book, I think the MD in his speech has addressed this issue. From the beginning of the, rather from the beginning of the first board meeting of this year, which was related to the Q4 of last year, we said that when we close this current financial year, we should have an order book somewhere close to INR 8,000 crore. We are hopeful that we will be, rather we are sure that we will be having that order book. Coming to your second question, is this Samarth, there are the two fundamental things I would like to address here. First of all, the confidence of getting that margin is my order book. The order book what I have is on a very significant gross margin. That will be the first parameter. Second parameter is this, that the operational efficiencies. If I build more and if I supply more transformers, my operational cost is going down, right? My fixed cost will go down on the MVA basis. That will automatically add up into my EBITDA margins, right? I'll just give you a small example here that almost INR 800 million of the transformers, we could not be able to put into the revenue in this quarter because the government sites were not ready because of the heavy rain. If those were into my revenue in this quarter, my EBITDA margin would be somewhere near to close to 16%. Because these are the high volume business and my operating cost goes down because of that. The same levels, the same thing which is I am confident in this quarter, right? The more I will produce and supply, the more I will have the margin into that. Presently, we are, as Sir, as MD has expressed in his meeting, that last batch of old orders has now almost finished up. Now whatever order book we have is on a significant good margin. That will be the biggest confidence for us to have into the, to reach into the old margins, rather bettering up. Okay. Okay. Sir, any anticipated, because of the raw material which was unexpected in this, why would that not happen again if I have to factor that? Samarth, we have already worked on it. As Chanchal had explained to you earlier, we had imported CTC for a few reactors and transformers. Because of the delay in customs and explanation to the customs why we needed it, this issue had occurred. Now since it is a process, now the customer is also aware of why it is and how it is, the delay should not be there any further. Okay. Okay. Understood. Thank you. I'll get back in the queue. Thank you. The next question comes from the line of Viren Deshpande from Alphap eak Investments. Please go ahead. Hello, sir. Hello. Hello, Viren Deshpande. Hi. See, actually, the inventory in this quarter, as you rightly mentioned, is about INR 155 crore. And normally, we have an inventory hardly of INR 2 crore or about INR 15-20 crore. At the end of the way, also we had an inventory of INR 49 crore. As you mentioned that there were delays in execution and the billing. Can you quantify the impact of this in this quarter sales had we had the normal inventory? Mr. Deshpande, just let me explain you or elaborate it more further, right? If you see my inventory, in my inventory, we have INR 226 crore of the advanced WIP. And we have around INR 79 crore of the INR 80 crore of these finished goods, right? We generally do not have any finished goods or hardly any finished goods at the end of the quarter because we planned it accordingly so that our FD does not line where it got built, right? That is a very detailed process of planning from our side that if it is an FOR delivery, the longer distance supply job should go first. That way, by the end of the month, it should reach to the site and we can recognize the revenue, right, sir? If that case, if that case would have been not there, my inventory of WIP as well as the finished goods would have been around INR 225 crore instead of INR 310 or INR 320 crore. Would have been INR 100 crore would have been add up into the revenue [crosstalk] w hich is immediately getting added in this quarter. Sorry, sir. Yeah. You expect this INR 100 crores turnover which has been postponed in this quarter, which will be built in this quarter apart from the normal growth you will be having in the third quarter and fourth quarter? Yes, sir. Yes, sir. Yes, sir. Now, actually, the capacity utilization last time you mentioned was hardly 65%. And this year, due to these delays, the capacity utilization must have fallen further, no? Yes, sir. As of particular in this quarter, it has gone down. It has gone down. We are targeting that once we close this year, we should reach around 70% level. The other thing is we have already manufactured these transformers. These are either in transit or lying somewhere close to the site. Because of non-availability or because of the infrastructure issue that the roads to the site or the roads to that specific substation have been washed away, there has been an issue. If you look at it operationally, we have made these transformers. It is just that because of certain processes and certain rules and regulations, we could not build these transformers, right? The operation is still at 65-68%. Because we could not build this, it is showing less. By the end of this quarter, you should actually see whatever we lost in the last quarter will come up in this quarter. Yes. That INR 100 crore or something more than that will get added. Operationally, the efficiency or the plant utilization has not gone up or down. It is just that there are certain issues which we could not address or which could not have been avoided. We are having this issue. Another thing. Overall, the whole year would look approximately at INR 2,600 crore-INR 2,700 crore. Okay. So on that only, you mentioned that currently our order book as of 30 September is about INR 5,500 crore, 30 September order book? Yes. Yes. Because in the presentation, 30th June is mentioned, 5,400 something. So on September end, also the order book remains the same, INR 5,500 crore? Yes. No, no, no. Let me clarify. I think presentation, maybe it is instead of 30th June, it might be 30th September, it might have returned 30th June. I need to see on 30th June, our order book look, the thing is my order book as on 30th June was something around INR 4,400 crore. I have executed around INR 4,500 crore of the orders. And I got new order of around INR 600 crore. So INR 100 crore difference has come up into the system. The order book as on 30th September will be how much? INR 5,500 crore. About INR 5,500 crore. We expect to end the year with an order book outstanding of about INR 8,000 crore. We expect almost INR 3,000-plus crore orders in the second half. Is it correct? Sir, yes. Sir, if you see my last. Wait a second, Chanchal. Viren, see, this quarter also, we have executed some orders of the previous years that have come with low profitability. And we have learned a lesson that nothing beyond 16-18 months we want to book. Right. [Foreign language]. Correct. We are taking a conscious call that we do not want to book anything which is beyond 18 months. Eighteen months is also the fastest. Right. So about INR 5,000-6,000 crores. We have to take some conscious calls so that we are efficiently running the organization. Right. Right. So around INR 6,000 crore order book will be a good target to have order book because that will be about two years or one and a half years. That will be the reasonable thing. Because the margins is very important instead of only having the orders. Yeah, exactly. Exactly my point. We want to curtail our order taking right now so that we are sure that whatever we are taking is executable and there are no LD charges on those orders also. Because the delay leads to inflation and again, if you don't get escalation in your orders, then that becomes a problem and then disappointing thing. Instead of that, it is better to have reasonable order book instead of having very large order book and not executing anything. That's right. That's right. This backward integration project of CRGO, which we had initiated about six months back, that is going to help us in increasing our operating margins by about at least 2%, it was mentioned. Is it likely to happen in this year or will it happen sometime in next year? Mr. Deshpande, it is not only the CRGO. It is basically all the backward integration activities are going to add up 200-250 basis points in our business. When is it likely to happen? Sir, sir, say next year effect will start coming up. Next year from Q1, etc. Yeah, sir. Okay, sir. Thank you and all the best. Thank you. Thank you. Chanchal, we'll take last few calls and then we'll end the meeting. Chanchal? Yes, sir? We'll take last few calls and then we'll end the meeting, please. Yes. Yes, sir. Thank you. The next question comes from the line of [Roy Manez] from Flatpoint Capital. Please go ahead. Hello, am I audible? Yes. Just a very basic question. I just wanted to understand that what was the reason behind letting go of a Big Four auditor and appointing an internal auditor as your main statutory auditor? Any plans of going back to a Big Four or a more reputed firm? Sorry, I did not understand your question, sir. I'm just wanting to understand what was the rationale behind going from a Big Four auditor, strategy auditor, to your internal auditor who has now become the strategy auditor? Any plans on going back to a Big Four strategy auditor? Sir, my internal auditor is Andersen, right? And my statutory auditor is one of the largest audit firms of this country, right? The Big Four, we had long back with us. On a rotational basis, we keep changing the statutory auditors, right, sir? The present statutory auditor is one of the most reputed auditors in this country. And internal auditors, as I told you, we invite. There is no basically leeway from the company that we have moved away from our part. Thank you. Thank you. Ladies and gentlemen, we'll take that as the last question for today's call. I would now like to hand the conference over to the management for closing comments. Chanchal? Yes, sir. Closing comments, please. I would like to thank you, everybody, on behalf of Transformers and Rectifiers India Limited. I would like to also assure all of you that the company is in the very right direction. You do not need to worry about a small hiccup which has come in this quarter. This is in a long journey. These kinds of small hiccups keep coming. I would like to make you, all of you, comfortable that the organization is working to build up a great organization which is going to come up in the very near future. I would like to thank you, everybody, for supporting us and request you to keep supporting us in this entire journey. Thank you very much. Looking forward to seeing you soon. Thank you all. On behalf of Novama Institutional Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.