Ladies and gentlemen, please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to the APAR Industries Limited Q3 FY26 earnings conference call. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ambesh Tiwari from S-Ancial Technologies. Thank you, and over to you, sir. Good afternoon, everyone. I welcome you all to the Q3 FY26 earnings call of APAR Industries to discuss the latest performance and outlook. We have, from the management side, Mr. Kushal Desai, Chairman and Managing Director, Mr. Chaitanya Desai, Managing Director, and the CFO, Mr. Ramesh Iyer. I will now pass on to Mr. Kushal Desai for the opening remarks. Thank you, and over to you, sir. Yeah, thank you, Ambesh. Good afternoon, everyone, and welcome to the APAR Industries Q3 earnings call. I would like to start by giving a quick overview of our performance and then follow it up with a short industry update. Post that, I would like to get into the specific segmental performance of the three major businesses, and then finally throw open the floor to questions. Our consolidated revenue in Q3 came in at INR 5,480 crores, representing a 16.2% year-on-year increase. This was particularly characterized by a resilient domestic business performance and a favorable product mix across all business verticals. The export business was affected due to the U.S. tariff situation. If you look at the domestic revenues, it grew by 30% in Q3 FY26 versus the previous year, and 26.9% if you look at it in the nine-month period. Exports for the quarter were down 11.2%, contributing toward 25.6% of the company's overall revenue, compared with about 33.5% a year ago. The U.S. business performance remained quite subdued in Q3. This was related, obviously, with the tariff-related impacts, and especially with the announcement that took place during the quarter of what is called Section 232, where almost 400 product categories were added under Section 232. This covered pretty much most of the cable and conductor products and resulted in an order booking which was very low in Q2, and the subsequent impact of that has happened in Q3. However, in Q3, the order booking has been better, and I will cover that under each of the individual segments. If you look at EBITDA, the EBITDA is up 20.4% year-on-year to INR 483 crore. The EBITDA margin stands at 8.8%. Due to the enactment of this new labor code, we have had to recognize a provision towards past service cost of gratuity and had to increase the provision amounting to approximately INR 25 crores, based on the best possible estimates. This has been accounted for under an exceptional loss. Profit after tax post this exceptional loss came in at INR 209 crores, which is 19.4% higher than the same quarter of the previous year. The profit after tax margin is at 3.8%, which is about 10 basis points higher than in the same period previous year. Now, comparing the nine-month figures, the consolidated revenue has come in at INR 16,299 crores, which is up 22% year-on-year. The export revenue has grown by 12%, and this was on the back of strong export revenues, especially U.S. billing, in the first half of the year. We built in the first half about INR 1,600 crore, which is equal to the entire volume that we had done in the previous year. So EBITDA for nine months is up by 23.8% and stands at INR 1,483 crore. Profit after tax at the end of nine months is INR 723 crore, including the INR 25 crore exceptional item, and is up 26.6%. The top line as well as the bottom line are both all-time highs for a nine-month period. In terms of some general industry highlights, India has achieved its highest-ever annual renewable energy capacity addition in the calendar year 2025, which is nearly 38 gigawatts of solar and 6.3 gigawatts of wind capacity. Compared to current year 2024, the solar installations have increased by about 55%, and the wind capacity additions have increased by almost 85%, underscoring a sharp escalation in the country's clean energy deployment and also the amount of hybrid installations coming in, which is a combination of wind and solar. As of December 2025, India's total installed renewable energy capacity has approximately reached 258 GW. Solar energy continues to be the dominant contributor, accounting for about 53% of the total renewable energy mix. Wind power follows with 21% share, and large hydro is at 20%. The bio and small hydro put together form the balance of approximately 6%. If you look at additionally, India's power sector achieved a historic milestone in energy generation, transmission, and distribution as well in 2025, with a maximum power demand of 242 GW during the year, and it has reduced the national energy shortage to almost nil. On the transmission and substation addition, there is a growth momentum in this regard. According to the latest statistics released by CA, a total of 60,260 MW of new substation capacity was added during the April to November timeframe, which reflects approximately a 55% increase compared to the corresponding period of the previous year. However, this achievement is only 75% of the planned additions in the period. With regard to transmission lines, specifically, the pace of additions still remains well off the plan. It has improved compared to the first half, where 5,077 circuit km have been added in the April to December timeframe. As a consequence, it is approximately 15% lower than what it was in the same period previous year. Now, this figure up to 30th September was about 27% lower. Clearly, there is some catch-up to be made, and the expectation is that in the fourth quarter onwards, there will be a certain amount of catch-up taking place. Coming to the specific segmental performances of our businesses, I would first like to start with the largest business division, which is the conductor division. In Q3 FY26, revenues were higher by 25.1% on the back of a good product mix. There was also an increase in commodity prices, which provided a tailwind. Volume actually degrew by about 5.9%, which was largely on account of some of the delayed clearances and in obtaining right of way, as well as delays in transformer deliveries that are coming out of a lack of supply of bushings, which is resulting in some of the substation work getting delayed and, in turn, the transmission line work getting delayed. However, we have been working towards adding several new customers and approvals from utilities overseas. The domestic revenue grew by 37% versus Q3 of FY25. The export revenue for the conductor division degrew by about 11%. The export mix is about 18% compared to 25% in the previous year. The premium product mix remains healthy at 44.2%, and this has grown compared to 37.4% in the previous period. If you look at EBITDA post open Forex, it has grown to INR 251 crores for the conductor division. The EBITDA post Forex per metric ton stands at INR 44,195, as opposed to INR 29,593 per metric ton in the same period previous year. Our order book is reasonably strong at INR 7,396 crores, of which exports are contributing approximately 32%. The total new orders received in the nine-month period is at about INR 8,052 crores. Coming to the nine-month performance, the nine-month revenue stood at INR 8,948 crores, which is up 34% versus last year. Physical volume grew 8.4%. The export mix came in at 21%. The EBITDA post Forex was up 31.2% to INR 748 crores, and the weighted average EBITDA margin is at INR 42,311 rupees per metric ton, which is significantly higher than the INR 34,949 per metric ton in the nine-month previous year period. Coming to our oil business, the revenues from operations grew 18.4%, with a volume growth of 21%. The transformer oil volume was up by about 10.6%, and some of the other areas also contributed well. The automotive oil grew 14.6%. The industrial lubricant part of the business grew 15.7%. Overall, exports contributed 42% to the division's revenue as compared to 43.8% a year ago. EBITDA per KL came in at INR 5,331 per KL, again INR 6,364 a year ago. Foreign exchange depreciation did affect the profitability for this quarter. On a nine-month period, we are looking at a revenue growth, a volume growth of 12.3% versus a revenue growth of 5.9%. The revenue growth was a little bit lower because the price of base oils was lower in the first six months of the year. Overall, revenues came in at INR 4,062 crores. The domestic transformer oil business grew by 13.4% in this nine-month period. In the same period, automotive oil is up 8.9%, industrial lubricants is up 16.8%, and the export mix stood at 41% in the nine-month period. Coming to the cable division, the revenue in Q3 FY26 was up by only 7.6% to reach INR 1,362 crore. However, the domestic business had a strong performance, and it grew by 34.6%. Overall, exports degrew by 44.3%, which was basically because the U.S. revenues were down 65% in the third quarter over the previous year. As I had mentioned in the opening remarks as well as in the last earnings call, we had practically no new order booking that happened in Q2, which resulted in a relatively lower execution in Q3. However, having said that, we have received approximately INR 500 crore of new order inflow in Q3, a large portion of which will get billed in Q4. So we expect the export business to have a comeback, and a large portion of this is actually US business. The export mix came in at 17.6% versus 34% in the three-month period. The EBITDA post Forex came in at 8.7% to reach INR 132 crore, and the EBITDA margin is at 9.7% due to a favorable product mix, as well as there were some gains on the cable side with respect to foreign exchange, as the receivables from previous periods were collected. The pending order book is at approximately INR 1,700 crore. In the nine-month period, the cable business grew 22.1% to reach INR 4,316 crore. Domestic revenue is up 18.6% year-on-year. Export revenue grew by 30% year-on-year, especially given the fact that we had a very strong first half. The U.S. revenue, actually, for the nine-month period is 44% higher than in the same period in the previous year, and our expectation is that overall in the year, we will be equal to or greater than what we did in the previous year. Export mix stands at 34% in the nine-month period versus 32.2% in the previous year. EBITDA post Forex grew by 24% to INR 431 crores, with an EBITDA margin of 10%. So in terms of just concluding remarks, I would like to mention that the nine-month numbers have been reasonably strong. The Q3 was affected because of the cable revenues, which are largely accounted on a DDP basis. So they have a lag of approximately 60-70 days, depending on where the client is located. We continue to see, as we enter Q4, geopolitical issues characterized by global tensions, and even there is a certain level of commodity price volatility. However, the domestic business continues to remain strong. The cable business and orders in the U.S. have also improved to over INR 500 crore in the quarter. The trade deal with the U.S., the discussions are still going on, but there's not enough clarity in terms of which way and when the wind will blow favorably. We've just heard of an E.U. trade deal, the details of which are the fine print and the exact BTN classification numbers are still awaited, but our expectation is that it would generally be favorable for both our cable and conductor business. So on this note, I'd like to conclude my presentation and would like to open up the floor to questions, please. 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 touch-tone 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 is from the line of Amit Anwani from PL Capital. Please go ahead. Hi sir, thank you so much for the opportunity. Am I audible? Yes. Yeah. So first question on the kind of positive surprise on the EBITDA part and our INR 44,000, and I can see on a 9-month basis we have done roughly about INR 42,000. Just wanted to understand that you have highlighted better product mix. So despite there was a challenge in the U.S. also for conductor, the growth was kind of hardly 2%-3%. So what do you mean by product mix? Is it the premium product where we have seen the contribution of 44%-45% in 9M versus last 9M was about 37%? So would you be able to explain more in terms of what is driving this strong EBITDA part and for conductors? And also would like to understand the volume scope. So you did highlight that there's some comeback which is happening, but what is the volume scope expectation for conductors for 4Q and probably in medium term? Yeah, Amit, you're right, Amit. So in terms of the EBITDA part, it is largely because of increase in the premium mix as compared to the total sales of the conductor. As we have discussed earlier, also the U.S. is always one of the reasons for the higher EBITDA, but as we have been premiumizing our portfolio over the last several years, this had made a big impact in terms of increasing the EBITDA margin on a per metric ton basis. Overall, last quarter three, we had a premium mix of about 37%, which in this particular quarter has grown to 44%, due to which our EBITDA margins have been higher. Of course, as we compared with last year, last year was the lowest EBITDA margin on a per metric ton basis that we saw in the last four quarters of the year. This quarter, because of the favorable product mix, the margins have been higher. And also, as we have discussed earlier, some of the non-premium mix, also because of the shift from ACSR to AL59, has been giving a higher EBITDA per metric ton. All of that has contributed to a higher margin in this particular quarter. In terms of volume, overall, if you see last year, Q3 and Q4 was heavy, and we expect that full year should be around the YTD range that we have been getting till now on the volume growth front. That's what we expect as of now to end the year. Which is kind of 8%-9%, if I read it. All right. So second thing, so is it fair to assume that since premium is, as you rightly said, even on the EBITDA part and basis doing fairly well, and I can understand that premium large portion of contribution is coming in the domestic market, and we are going very strong in the domestic market. So the sustainable EBITDA part, are you revising that guidance of INR 30+ thousand because we have been delivering exceptionally well on EBITDA part and still despite the U.S. challenge? We'll continue with the same guidance that we have been giving in the past. Of course, as we have been saying, the tailwinds are always not so easy to predict given the various macro challenges and domestic competition that comes. But within that tailwinds, as we have a more profitable order, the tailwinds are expected to be higher. But for now, we'll continue with the same guidance. All right. So in terms of commodity impact, how one should read it? So you have been highlighting that this is passed through. And I think in the last call, you did highlight that probably the customers might be putting project or inflows on hold because of high commodity prices, especially copper and aluminum. So if at all there's an impact, is there a chance that we might also have to take a hit? Or what exactly are you anticipating for 4Q and Q1 in terms of commodity price impact, whether on the business or the margins? So you're right. And that's in favors both, yeah. Yeah, you're right. Our business model is a pass-through, so we are not taking any risk on the commodity prices per se. However, you also are right what you said that if the clients who have taken the risk of the commodity prices are sort of off compared to the assumptions they have made when they run the business, then sometimes they are waiting for the commodity prices to come down in order to go ahead with the deliveries. And to the extent their projects can afford to delay a little bit, they are exercising that option of delaying some of the supplies. So right now, we have seen a little bit of that affecting us in this Q3, and it is possible in Q4 also there could be some. Although as of now, as things stand, we feel the Q4 will be as per our original expectation. But again, if the commodity prices go up the way they have been going up since the last couple of months, then there is a possibility that some customer may face some difficulty and postpone some of the deliveries. However, at some point, those customers will have to take the deliveries to complete the projects. All right. So in terms of tariff, which is still 50%, and you did highlight it in the past calls that conductors value, I think 25%-30% is affected, and for cables, almost 50%. So what is the view now? Are we back on track in terms of better performance in 4Q? You did highlight that I think we got INR 500 crore orders. So what is the status now, assuming that 50% tariff still continues? Is it Q4 or Q1 when we see the normalized business? How is the customer response now after the ongoing projects, which might have seen them taking the hit in terms of increased tariffs? The current tariff situation remains the same at 54%. Whatever order inflow we have got in Q3, which is approximately INR 500 crore for the cable business, there we have had to adjust the prices down to some extent to keep the order flow going. Mind you, there's also been some increase that has happened across the board because other countries also have had some increase in tariffs. The Section 232 has also raised the prices of products in the US. That has provided some amount of cushion. But overall, we have had to reduce prices to some extent in order to book fresh product. I had mentioned in the last earnings call as well that for us, the U.S. market is a very strategic market. We spent several years building access to customers. We've got approvals now coming in from some of the data centers and critical clients, which takes a very long cycle to get approvals from. So our strategy is to continue to ride this period by making sure that we service customers there, even though it means at a slightly lower margin. But that strategy is something that we will continue to follow. And given a period of time, we are hoping that there will be some normalization that comes on the tariff front. Having said that, we've increased our efforts to pick up business from other areas. The domestic market has been reasonably strong, which has offset, at least in Q3, some of the deficit that we had on the export front. I hope that answers your question. Sure. Sir, lastly, just clarification on U.S. revenue. You spoke about INR 1,600 last full year and INR 1,600 H1. And I think you did highlight that this year we're looking for equal to last year. So does that mean nil U.S. revenue for H2? Is it the right understanding? It will be higher is what we said. Yeah. No, no, no. What I was saying is that in the last year, the U.S. business in the first six months, as you rightly said, was equal to approximately what we did in the previous year. So with the gap that we've had in Q3, as we get into Q4, you'll get back into this INR 500 crore order book which we have. A significant portion of that will get executed in Q4. And plus, we are still in discussions for additional business to come in. And depending on most of that will get then picked up in the first quarter of 2027. Right. But you will see close to INR 500 crores of revenue that will come into Q4 of this year. Sure, sir. So possible to share the U.S. revenue for nine months basis for conductors and cables? We don't have that number handy right now. I have the six-month number, which was equal INR 1,600 crores is the six-month. I have an overall export number, which is what I gave out. Yeah? Yeah. Thank you, sir. Thank you. And obviously, thanks. Thank you. The next question is from the line of Umesh Raut from Nomura. Please go ahead. Please go ahead. Hi team, and congrats for a very good set of results. Again, so I think more of a softish quarter, what you guided last time for Q3. I think it was more of a positive surprise. So my first question is on recent FTA between India and EU. And I want to understand how big the EU market is in terms of conductor and cable, and how competition is also over there. Are there any duties against Chinese players from EU countries? And how we can approach approvals from EU countries? Okay. So the fine print of the EU deal is still something that we need to go through. Our sense is, so you have to actually look at each BTN number to see whether the specific product that we manufacture and are exporting to the EU are covered under a zero tariff or a lower tariff situation. The European market otherwise is very large, but the access to the market has been very restricted because the utilities there tend to prefer to buy EU-manufactured products locally. So I think the assessment of this European deal and the consequence to us, it will still take us a little time before which we can really put this together. I mean, it's bound to be more positive than what it was before, but to what extent I think we still need to gauge that. Understood. Currently, how much of your export revenues are from EU? About 5% of our revenues have been coming from there. Understood. Now, if I look at our conductor segment, I think if I look at domestic markets and stuff, say, one year or so, there are, I think, delays happening in terms of transmission projects. And if you look at our volume trajectory as well, maybe for this year, we will close with about 8%+10% growth on the volume side. So I think going into FY27, considering that there were delays in FY26, and there were also issues in FY25 as well, I think, how can one factor in volume growth for conductor business in FY27? So currently, there is a backlog which is there because of, as I mentioned in my opening remarks, that there is a problem of transformer delivery because of the lack of bushing and the bushing capacity that's available. So the government is actually making a concession for import of bushing, which will kick in very shortly within the next week or so. In the meantime, the bushing capacity in India is also getting increased with several new plants and brownfield expansions in place. So in about six months' time, we expect that the domestic side will also increase. But as the import clearance comes in, you will start seeing the execution of some of these pending orders getting cleared. Some of the transformers are in a half-made, not a completed sort of form or situation. So that itself will end up driving demand for transformer oil, as well as some of the transmission lines which have been stalled. They will also start getting accelerated. There are some right-of-way issues also which have added to this. Our understanding is that there is some movement in that direction as well. So overall, Q4, as I mentioned earlier, we expect a much better situation on the ground. Yeah, correct. That I understood. But going into FY27, as you mentioned correctly, I think a lot of these legal issues are kind of getting resolved. So at industry level, we will see much faster ordering and then. Yeah, our sense is that because if you see the plan which is there, we are still 15% behind the plan. And you also have a lot of new solar installations likely to be coming in both from the big business houses, from the Adani side, from the Reliance side, etc. So the transmission line demand should continue to be there. Difficult to track it quarter by quarter because of these various approvals and things like that. But there is no slowdown expected in the trend. So as I mentioned earlier, that some of the delays which the client could afford to do, they have probably been utilizing that leeway this year. But next year, it is possible they may have to catch up on that. Understood. So is it fair to assume that we will return back to double-digit kind of volume growth for conductor business? That's clearly the target. And if you see, actually, if you look at the nine-month period, the growth is still pretty strong. It's still at about 8.5% volume growth if you look at the nine-month period. But yes, we expect next year volumes to again be past double-digit. Understood. My last question is on cable side. I think a couple of years back, we guided for our strategic endeavor to grow at about 20% CAGR till FY28 and reach at about close to INR 10,000 crore. So where are we on those plans on the top-line growth side for cable business? And second, I think on the EBITDA margin side, our endeavor is also to get into double-digit range more close to 11%. I think for this year, at least, we are slightly falling behind. So how are you planning to approach margin trajectory for this particular business? So if you take the nine-month period, volume, I mean, our revenues are 22%. So we are tracking on a 20%+ CAGR growth. Given the nine-month performance and what we see in terms of visibility for Q4, we should definitely be in that 20%+ growth range. In terms of EBITDA, nine-month EBITDA is at 10%. And of course, the U.S. business actually I'm having to make some sacrifice on pricing. The U.S. is going to have some impact on the EBITDA in the cable business. But as I said, it's a strategic call that we've taken. And our belief is that in the long term, something or the other will come up to iron that out. In the meantime, we don't want to lose access to the market which we've developed. So overall, I mean, we've been managing between other markets, domestic, etc., to maintain both top-line and bottom-line so far. Understood. Thank you. Thank you so much. I'll get back in a little. All the very best. Okay. Thank you. Thank you. The next question is from the line of Kunal Sheth from B&K Securities. Please go ahead. Hi sir. Congratulations on the good side of numbers, and thank you for the opportunity. Sir, first question is around this new line of business announcement that you have made, the INR 156 crore order. If you can talk more about it, our scope of work, and how big the opportunity is for APAR? So actually, it's really an extension of what we're trying to do in the cable solution space around telecommunication and the telecom products. So it's really we want one package in the Kavach project, which is basically increasing the security and safety in the railway lines. So that package is about INR 153 crore. It will take approximately. We just formally received the order today. We received an LOI earlier. Execution time frame is approximately 22-24 months. And it entails setting up signaling for improving the safety in the railways. Now, Kavach projects are actually, if you see, totally the railway will be spending upwards of INR 40,000-INR 50,000 crore in upgrading safety standards. So this is like our initial foray into that. Sure, sure, sir. Sir, my second question is related to export, and this is for both conductors and cable business. Sir, what are the kind of conversations that customers are having now, especially in the U.S. market, given the commodity volatility? This tariff has continued for too long now. Do they still continue to believe that they will keep sourcing from where they were sourcing, or how are they thinking about all this situation? So on the tariff front, you have two sets of products. You have products which are aluminum-based and copper-based. So the copper-based products for somebody exporting from India, the effect is very big, very huge, because there is a reasonable amount of copper production within the United States. And as a consequence, the local producers are not picking up that 50% tariffs. On the aluminum front, 90% of the U.S. aluminum is actually imported. As a consequence, directly or indirectly, whether it's in the form of an ingot rod or whatever stage, you are picking up the 50% tariff on an aluminum-based product. So the conversations which we have with clients are also varying depending on the nature of the product that we have. So for aluminum-based products, by making an adjustment in the price, we are still in a position to make a positive margin and continue the access to that business. Whereas on the copper side, things are very different because the U.S. copper rates are quite competitive, and if you have to pay the tariff to export to the U.S., then there will be a problem. Now, having said that, most of our volume so far has been aluminum-based. And so our market access will get a little bit reduced, but it's still there. Customers are still having conversations with us. We've been exporting to that market now for several years, and our products are very well received in the U.S. by EPC players, by asset aggregators, etc. So conversations are still happening. That's how, in spite of everything, we did pick up almost INR 500 crore of business new order book in Q3. Sure, sure, sir. Sir, if you can quickly also give us some update on status of the CapEx on both conductors and the cable side, where are we on that? So we are pretty much on plan. We've already completed about INR 500+ crore's worth of CapEx as of Q3 on our total plan of about INR 1,400 crore. We expect that in Q4 and Q1 of FY27, a large portion of that remaining CapEx will actually take place. And by September, that means by the mid of FY27, you'll pretty much have all the facilities up and running. So we are on track. Sure, sir. Thank you so much, and best of luck for the future quarters. Thank you. Thank you. The next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead. Yeah, hi sir. Thank you for the opportunity and congratulations. Great head of numbers. Most of the questions have been answered. Just a few clarifications I wanted to know. First, you've mentioned that your share was hardly 5% from the European Union. I just wanted to know this was as of last year or for the nine-month period? First, for the last year, and it's an approximate number for the last year. Okay. And sir, what's the situation before the tariffs and after the tariffs? I mean, how does the difference is there? What's the tariff situation? So the European tariff varies between 4%-7.5%. And there was also an anti-dumping duty on Indian players for fiber optic products, fiber optic cables. So we have to see, as I said in the fine print, that where does this actually finally land up. It's definitely going to be more favorable than what it was before, but what will be the exact percentage for the different classes of products? That information we don't have yet. It should be something that will come out shortly. Got it, sir. Thank you. And sir, what will be the margin profile of this? The thing is that we were fully aware that this whole conversation was happening between India and the EU. So we have been working on getting more utility approvals in Europe, and that process is also underway. Our sense is that with the EU deal being signed and if the tariffs actually fall, utilities and other players will start taking Indian manufacturers more seriously. Because if you sign an FTA, it is not a short-term. It's a much longer-term sort of arrangement. So it gives much more stability in terms of what the tariff situation will be over the years. So I mean, we will be able to lay our hands on this and be able to answer some of these questions in a couple of months once data is more clearly available. But all of this is positive. That's helpful, sir. And sir, what will be the margin profile in the new line of business, the Kavach project? We don't talk about specific. Yeah, we don't want to comment on specific projects because then that opens up because we have so many other projects which are running on the conductor side as well. But it's a profitable order, and it's something that I think is very strategic because a lot of business is going to come fundamentally in that direction. Good. So just last one, would it be possible for you to give a breakup in terms of volume and value growth in the cables division? Cables division, we actually report the value numbers because there are too many products involved. So we have historically always been giving the value numbers. Yeah, we have thousands of different varieties of cables. We have the largest variety of cables being manufactured by Indian manufacturers. So the only common denominator really is value. Got it, sir. That's all from my side. Thank you. Thank you. Thank you. The next question is from the line of Sanjeev from Antique Stock Broking. Please go ahead. Yes, sir. Thanks for taking my question. My question was regarding the demand drivers for the cables in the domestic market. I also wanted to understand what is the demand mix from the various sectors that we have in the cables. So we have continued to see for us strong growth coming from the renewable energy side, especially given the fact that APAR cable division is the major supplier to all the windmill manufacturers. So as the wind installations are increasing, we clearly get a benefit out of that. So renewable side has grown. The railway business also has grown year-on-year. We are the main supplier to Medha, who is currently executing the first set of Vande Bharat trains. So again, the growth from the railway side has also increased. We are accessing and supplying to a number of data centers in India. So we've seen growth in that channel as well. There has been some amount of growth on the defense side. So these are the channels where we've seen most of the growth taking place. And sir, how is the affordable housing and the real estate sector doing for you in terms of demand drivers? So most of that is being serviced through a dealer distribution network. And for APAR, compared to some of the larger cable companies in that space, we are still relatively smaller. And we are offering premium products in the wire side. So our emphasis has not been on the affordable housing. It has been actually on more large commercial installations, bungalows, and wherever people have laid a premium on safety. Because our products are all focused on a higher performance level with respect to safety. So we are really not very focused on the affordable housing market as much as on the more premium wires that go into commercial and residential industry, I mean, real estate. And any pricing actions you have taken in the cable side, the wires that are developed on the cable side, what's the strong run-up in copper prices? So we've actually increased prices to cover the delta in copper. So the entire copper pricing has been passed through. All the B2B orders that we take, we take it only on a back-to-back bid. So any order which is 25 metric tons or higher of copper that's involved or aluminum, we would take a specific hedge. In the case of smaller orders, we accumulate it until it reaches that number and then take a hedge. So the book is largely hedged. And new business, we have increased the pricing to the extent of the. So it's not only the commodity increase, but it's also the exchange rate. So the effect is the dollar increase in aluminum and copper multiplied by the exchange value. So that entire thing has been factored into the pricing. And sir, on the premiumization on the conductor side, it's largely now around 45% level. To what extent it can potentially go in the medium term? So I mean, we are already at that mid in the mid-40s. It all depends on how much reconductoring work keeps coming up. And our sense is that if you look at it in the medium term, there will be a lot of reconductoring required. As you have data center projects that are coming up, even in India, even though we have few projects which are in the gigawatt category, there are several projects which are in the hundreds of megawatt category. These require a lot of energy. When you add that to whatever other growth is taking place, reconductoring is bound to be a larger business. Also, our CapExes are going more in those categories where there's a more premiumization. As the phase-wise expansions happen, some of these premium products will increase in the volume for us. It can cross 50% in revenues. But it's all a question of how the adoption of these things comes. We are ready with our CapEx. We are ready with our capacities, with approvals and everything. So the moment tenders come in and the spending takes place, we are right there to be able to pick up our shares. Yeah. And some of these premium products that we are making are in the copper category. So value-wise, they will have a higher prorata value. Okay. Great, sir. And congratulations on a good show. Thank you. Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead. Thank you, sir. Sir, I've got a couple of questions. So you mentioned that the order book has improved significantly from U.S. and Q3. But on the KP's division, we see that there has been a dip in Q2. So just can you clarify on that? And also highlight how has been the ordering trend in Q4? Sorry, can you repeat your question? I think Ramesh, the question was that the order book has improved. So whereas the numbers of Q3 were. I was saying, sir, you mentioned that the order inflow has started to improve from Q3, but we see a dip in the order book for the cables division, QOQ. So just some clarity on that. And how has been the order inflow trend in Q4, if you can? What we mentioned is that the US orders dipped in Q2, due to which there was less sales in Q3. What we mentioned is that the order inflow in Q3 has gone up as compared to Q2 in the US market. And cable business typically operates on a low order book period. So even if there are a lot of orders that come during the quarter and also get executed within the quarter, so even if there are quarter-on-quarter order book reductions, typically it gets made up from the new orders that come and get executed in the quarter. So these days, from order to delivery, the expectation is a bit shorter. So you will find that the order book may vary, especially when you've got things like windmills coming up and solar. Every month, you keep getting orders and you execute fundamentally in 3-4 weeks. So I would not be very bothered about the pending order situation on the cable side. On the conductor side, it's a much longer cycle business, and I think that number then is far more important. Understood. And sir, on the domestic side, are you seeing some kind of slowdown in ordering? Not really. If you see our domestic Q3 number is up 33.4%. Right. And going forward, I mean, in terms of inquiry and the pipeline? Sorry? In terms of inquiry, future inquiries and pipeline. We are reasonably well placed on the domestic side. In fact, we see the domestic side on the cable business particularly being quite strong. Okay. And just a final question. You mentioned that you're also getting orders for data centers. If you can share what is the ticket size of these orders? So in India, the data center sizes are varying very dramatically. So you have right from smaller data centers which are in the 10-15 MW. These data centers are measured in terms of the amount of power they consume. And you've got in Ghansoli, Adani setting up a 1 GW data center, which is in Navi Mumbai. So it's really rarely in terms of size. Understood. But there's a lot more data centers coming up, and the requirement of cables will continuously increase for that application. I mean, in terms of volume, what would be your volume in total total cost for data center? It's in the same range as what you would see in renewables and stuff, where you're looking at it at around 3%-4%, 4% also. Sure, sir. Thank you and all the best. Yeah. Thank you. The next question is from the line of Mahesh Patil from ICICI Securities. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. So my first question is on the cables exports. So we see the exports were down 65% from U.S. market. However, the overall exports are down 44%. So clearly, there is some increase in other markets. So if you can highlight how we have grown in other markets and how is the growth sustainable? So we have, besides the U.S., we've been exporting products to Latin America, some products to Europe, and Australia. We also have a presence in some of the African countries. So that presence continues. There is Chinese competition in all the geographies that I mentioned. But there are pockets where we have the products, we have the approvals, and we continue to grow in those areas. Some of them are utilities like ML, where we would be supplying directly to the utilities. Okay. So nothing extra in this quarter that has gone right? I mean, this is just business as well. This is a relatively steady business. The U.S. piece is relatively large, as you can see. There was less business in one quarter. The number fell. In the next quarter, we started getting a new order inflow. So in Q4, you will see that INR 500 crores is approximately the order book lined up in Q3, which will be largely executed in Q4 of this year. Okay. And sir, the second question is on the conductor side. So if we see various premium conductors, HTLS, AL59, etc. So if you can highlight, so as far as I understand, HTLS is mostly going into reconductoring. AL59 is used in coastal areas. So if you can highlight the demand trend for these conductor types. So AL59 is also used in the TBCB, not just the coastal areas. So it is almost currently, along with the conventional ACSR conductor, comprising maybe 98% of the market in India. 2% right now is almost like the reconductoring. Very small right now. It is more of a niche area. Okay. Sir, there were some news around many of the states going for premium conductors compared to replace the existing ACSR network. So how do you see the opportunity? AL59 is what people are using nowadays in India in a major way. So it is relatively better than the ACSR, but it is still in the category of conventional, the AL59. Okay. Okay. So AL59 categorized when you see premium products, AL59 is not part of that. Correct? Correct. Yeah. It's non-premium. Yes. It is also getting very competitive. Okay. And sir, last question on the cable side. If we say that, and we are saying that the cable business is likely to grow at 25% rate year-on-year, so just wanted to understand if you look at the subsegments like power cables, RE cables, other domestic cables, etc. I guess power cables will be a majority part of it, and we are doing the CAPEX in that subsegment. So just wanted to understand, so subsegments will be growing at, let's say, 15%-20%, some will be growing at more than 30%. So if you can highlight some of the key growth drivers, cables business. So as I mentioned earlier, for us, the key growth drivers really are coming from the addition of renewable energy, the addition in the Indian Railways, some of the growth that's happening on the defense front. And then if you look at infrastructure side, the presence that we have in MVCC and data centers. So these are the major areas where we see the growth taking place. And our sense is that this is going to continue. These segments will continue into the next year and beyond. Okay. Sir, is it possible to give the share of, let's say, power cables in our overall business? We've not been actually giving the detailed breakup of that. Yeah. Got it. Got it. Thank you. Thank you. The next question is from the line of Garvit Goyal from Sireen Alpa. Please go ahead. Hi. Am I audible? Yes. Yes. We can hear you. Good evening, sir. Congrats for the good numbers. Just one question on the covered side only. This is our initial contract that we got. I just want to understand what is our exact role going to be here in future as well in the upcoming contract as well as in this contract as well. So it's a complete turnkey. So it's a supply and installation of the entire system. So there is a fiber optic and a cable portion which is part of that. And then you have towers, you have the installation. There are some passive components, some active components. So it's a complete turnkey. So all these projects are awarded on a full turnkey basis. Understood. And from whom we got this contract, sir? Contract is from the Indian Railways. Okay. Understood. That's it from my side, sir. All the best for the future. Thank you. Yeah. Thank you. Thank you. The next question is from the line of Nikhil from Kizuna Wealth. Please go ahead. Yeah. Hi, sir. Thank you for giving me the opportunity. So sir, my first question is, in our investor presentation press release that we uploaded, we have stated that volume for the conductors were impacted due to increased competition from the non-US geography. So can you elaborate more on that? As per your initial remarks, you said that it was due to the transformers. So can you elaborate more on that part? Actually, the line was not very clear, but was your question to do with the Chinese competition? No, sir. Am I audible, sir? Yeah, yeah. We are audible. Yes. Now we are audible. Yes, sir. So as per our investor press release that we uploaded, we have said that the conductor volumes were impacted due to increased competition from non-US geographies. And our initial commentary stated that we also have the volume problem in the domestic market due to transformers. So can you elaborate more on this volume? How are we looking at the trends going ahead from both the non-US geography perspective and domestic perspective? Two different matters, I think, which probably have got mixed up in your question. One part is to do with the non-US geographies, which are like the rest of Asia other than India, then Africa, Middle East, Europe, Latin America, etc. So there we have been impacted due to the Chinese competition. That is one part. And the second part is to do with the transformers, where we were saying that the transformer manufacturers were not getting certain inputs like the bushings. As a result, their delays were happening for the execution. And therefore, they were delaying some of the requirement of transformer oil and the CTC. So that had impacted in a different way the demand for us. And the substitution also is getting delayed because the transformer is at the heart of the substitution. So to relax this particular supply situation, the government is now allowing Chinese manufacturers' bushings to be also used in the execution of transformers to alleviate this problem. Thank you, sir. That's a look at two here. So sir, my second question is also, we had the global approval from Microsoft for data center cables. So are we also going to look at the impact on the cable segment from the data center perspective in the U.S. geography? So are we going to? We have been looking at that. Unfortunately for us, the U.S. data centers largely use copper-based cables. And as I explained earlier, the pricing of copper in the U.S. is very competitive relative to the rest of the world. It is competitive. In the case of aluminum, we import 90% of the aluminum. So the effect on this Section 232's 50% tariff is much more on aluminum-based products and relatively less on copper-based products. So as we try to export copper-based cables from India, we would face a significant tariff differential compared to in the case of aluminum. So we are not able to export very much of copper-based products at the moment until this tariff situation changes. And until it changes, we won't be able to access most of the data center requirements. Okay, sir. That's really true to you. So sir, now on the perspective of order inflows in the cable segment, so we saw in the month of September, there were two months that we had a muted order book in the cable segment. So how does it look from the November, December, January perspective till now? And how do we expect the trend post-July? You already said that post-Q1, we will be able to normalize the business order inflows. So how has been the month of November, December, and January, sir? So in that period, as we mentioned, we had an order inflow of cables of about INR 500 crore from the U.S. So there is an inflow of business that has started coming in now. So sir, then my question is, was it like a consistent business or it was a lumpy one-order flow or something like that? Several orders, meaning from several different customers and different projects which are involved. So they're all project-related orders which we've received and are executing, or largely project-related orders. Okay, sir. So that's it from my side. Yeah. Okay. So that's it from my side. Thank you, sir. Okay. Thank you. A request to all participants. Please restrict your questions to two questions per participant. For more questions, please rejoin the queue. The next question is from the line of Swastik Ghadge from Equity Wealth Management. Please go ahead. Hello. Yes. Good evening. Yes, we can hear you. Yeah. Good evening, sir. Actually, things are not good set up now, but so I have a few questions. Time and again, the first one is, time and again, you have been alluding to a thing that we are looking to set up for manufacturing in the USA. And if I recall clearly, the last call you mentioned that US utilities usually don't buy from exporters. They buy directly from domestic cables. So what is stopping us actually, or are we still thinking, or what are the metrics that we are looking to so that it fits our thought process there? That's my first question. So basically, we are doing our studies, but as you know, the situation is quite fluid. So we are also watching the situation and then appropriately will take decisions. Okay. Second question, sir, is more on the recent management change that we saw in the cable solution business, the CEO sort of resigned, and then we saw that Mr. the CEO joined our competitor. So currently, who's heading the cable solution division? Is it directly overlooked by you, or are we looking to? No, no. So we have Mr. Chandrasekhar Shrotri has joined the cable business. He joined on the 4th of December. So he's been in the role for almost a little over one and a half months. Previous to this, he worked for Siemens for 30 years and was in charge of the low-voltage business across 27 or 28 different countries. So a very seasoned individual who has been involved, not directly in cables, but very familiar with the customer base as well as the channels. Okay. And also, sir, under wires and cables side, so we have guided that we will grow 25% to be precise with 10%-11% margin rate. So we have achieved that 10%. But 25% growth, we fell quite short in this quarter, and if we see ninth month, it is 22%. So do you think that this Q4 and whatever order we have from the U.S., because we are losing margins there, so we will be able to suffice that growth? And of course, we can't get both, but can we get the volume growth that we are looking or the revenue growth we are looking for? So that's the guidance which we've given that we will be for the year, definitely 20%+ on the revenue front. And we are trying to track an EBITDA which is close to what we've delivered for nine months, in spite of having to sacrifice some amount of margins on the U.S. business. Okay. And only one last question, sir, if I may. I think we have been developing good products and technical products over the years. And now with this new CAPEX coming up in cables as well as some part of it, some part of it going to conductors, are we looking for more higher technical products like the HVDC or HVAC sort of where the industry might go going ahead due to all the energy demand? Also your quick comments on the new draft NEP that we saw that was announced by the Government of India? The expansions what we are doing are having a mix of the premium area as well as fungibility with the normal requirement, conventional requirements also. Our efforts will be always to use our assets for the more premium products. But with the backup that in case we don't get enough orders of the premium, then we can utilize those assets for the general purpose type also. Yeah. Exactly. And your comments on the NEP, sir, if you could give some comments. Are you talking about the announcement for the India-EU deal, you're saying? No, no. The new National Electricity Plan that the Government of India announced, wherein we have increased the guidance for FY32 to, I think we have increased that guidance on National Electricity Plan. Yeah. So we are generally positive that the demand in India will continue to be good. And we've put in CAPEX, which is, if you see the commentary from some of the previous earnings calls, we've gone ahead and put CAPEX 1-2 years ahead of the actual sale likely to take place. Simply because we are bullish on demand going forward. And these days, to set up the CAPEX, the CAPEX cycle itself is much longer, especially if you go to some of the best equipment manufacturers. So the capacity is going to be in place for us to be able to take into account increased business flow coming in. So if demand exceeds whatever has been projected, we should still be in a position to pursue that opportunity. Okay, sir. That's it from my side, sir. All the best and congratulations on that. Thank you. Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead. Hello, sir. Can you hear me? Yes, we can hear you. Please go ahead . It's not a question. It's just a doubt. From what I'm hearing, there has been, with respect to renewables, the PPAs which have been signed, there is a, how do I put it, decrease in the new PPAs that has been signing in terms of renewables, mainly because of fearing over capacity of modules and cells coming up in India. So how are you seeing the overall demand with respect to the renewables as an end user? Follow-up on that is, due to the recent increase in the silver prices, renewables are all the, how do I say, are becoming expensive in terms of CAPEX cost. So is that putting the difficulties in terms of new renewables project which the government plans to tender out, or I just want to understand the entire dynamic of current dynamics of the renewable energy ecosystem in India playing out? So we are seeing currently a demand coming in from wherever PPAs have already been signed. And the executions are increased. So that's one aspect. Second side is that rooftop solar is increasing everywhere. So even that is a segment that results in increased requirements of wires and cables. Thirdly, the wind side, as I mentioned earlier, is growing at a faster pace than solar simply because its base is currently lower. But that forms the third sort of vertical where we are seeing growth on the renewable side. So overall, we've not seen any major slowdown. Even the projections which we have for Q4 coming from solar and wind additions, both of them seem to be reasonably strong. So we've not really seen any major slowdown on this front. Okay, sir. And sir, I just have a follow-up on this. Among the cable division, what kind of cables are you seeing a tremendous growth? Is it like a high-voltage cable or a low-voltage cable? So in our case, we are very focused on certain verticals, as I mentioned a couple of times earlier in the call, that we've seen growth on the renewable side. We've seen growth in the railways. We've seen growth in defense. And we've seen growth taking place in data centers and in our medium-voltage covered conductors in MVCC. So these are the areas where we are seeing growth. Overall, I'm sure there's growth even on the industrial and commercial side, etc., but we are not the strongest player in that category. Understood, sir. So basically, solar and telecom cables, telecommunication cables. All of these areas, as I said, railways, defense, data centers have also got a lot of power cable requirement. That's copper-based or aluminum-based, maybe. And MVCC is all aluminum, which is the augmentation of the last-mile distribution, overhead distribution lines. So these are all the areas where APAR is seeing growth. Understood, sir. Thank you, sir. Yeah. Okay. Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Hi, sir. Thanks for the opportunity once again. It's a question on the INR 500 crore order which you said has happened in the US. So what's the impact we took versus pre-tariff? Was there an impact on margin? What are the terms for these orders, and what can we expect for upcoming orders? You last time highlighted that for the older projects, the customers are willing to absorb. But how about these newer projects which have won? So it's a variety of cables and from a variety of customers. So depending on what the local competition is, we've had to make some adjustments in prices. So it's varying across the product categories. But clearly, there is a—I don't want to specifically talk about how much of the margin hit, but there is clearly a compromise to be made on margins. But we've seen that as that compromise is made, the order inflow is taking place. Sure, but there would be some impact, right? Pre-tariff versus— In fact, I wouldn't want to comment specifically. It's a big variety of cables and orders. There is some impact. But overall, as we said, we are still targeting, hitting what our guidance is for the year. And this INR 500 crore is going to help definitely achieve the top line. And as far as the bottom line is concerned, we are trying to be within the same range as we are in today. So is that the cables margin still will be impacted for 4Q? So there are a range of products. Amit, as you know, that we sell in cables, and different products will have different margin profile. So of course, as we said, that we don't want to divulge specific information on this US project, how much the margin should behave. But overall, we have been like we've been guiding about 9.5%-10% margin. And we expect it should be around this level. YTD already, we are at 10%. We expect that our margin profile should be in similar range, more or less. All right. Sir, more details on reconductoring. You said it's a big opportunity. So any color in terms of market, whether in terms of maybe circuit kilometer or the value which came in, let's say, for FY20 current financial year, and what is the expectation for next two financial years? Any data on that in terms of circuit kilometer or value? And then how APAR is standing? Is there a competition, or what is the volatility currently in terms of reconductoring, if you could explain more? So unfortunately, there is no published data. In our own way, we are making our assessment. And our year-to-year slightly fluctuates also as to how much is the breakup between the conventional type and the HTLS type. But our current estimate is roughly 2% by volume. In HTLS, though, there is a service component of the labor to actually put up the line and some designing aspects also, which is a little more value-add for us. And as far as the future is concerned, we expect that higher growth rate. It has a low base, so it may have percentage-wise a little faster growth of the HTLS compared to the conventional. But it is a much more expensive product, so clients are choosy when to use the HTLS. And especially when there's no choice there due to ROWs, then they may go for that option. But if they find that there is another option, then they may go for a new line instead. And on the competitive strength, I think you've elaborated it more in detail in this corporate presentation. You've completed more than 175 projects in difficult terrains, etc. It's more appropriately elaborated there. So you may want to have a look at that to see what are the competitive strengths in this particular reconductoring opportunity. Sure. So this MVCC, this is also included in reconductoring the upgradation of overhead distribution through MVCC you highlighted. Is it also part of reconductoring? The manufacturing of medium-voltage covered conductors are actually done in the cable business because it's an insulated product. But if you take it on a turnkey basis, then our project division actually takes it on a turnkey basis. So they do the execution of the project. Today, bulk of our supply has been going through third-party EPC players. Yeah. Understood, sir. Thank you so much. Thank you. Yeah. You're welcome. Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir. Yeah. I'd like to take this opportunity to thank all of you for joining our Q3 earnings call. And as I mentioned, we continue to remain optimistic in terms of delivering whatever guidance that we had for this year. We will clearly see a higher revenue coming in from our U.S. exports in Q4. We also see that the fundamental demand drivers continue to remain intact, and the company is on track with respect to its CAPEX plan and looks forward to actually improved utilization of all the new equipment that comes in over the next few years as the demand for our products continues to increase. APAR is clearly the leader in carrying current in all different between conductors, cables, transformer oil, etc. And carrying current business is going to only increase as the years come by. With that, I'd like to end, and thank you very much for joining us today. Thank you. On behalf of APAR Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.