Ladies and gentlemen, good day and welcome to Aditya Infotech Q2 FY26 earnings conference call hosted by ICICI Securities. 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 this 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. Aniruddha Joshi from ICICI Securities. Thank you, and over to you, sir. Yeah, thanks, Niro. On behalf of ICICI Securities, we welcome you all to Q2 FY26 results conference call of Aditya Infotech Limited. We have with us today senior management represented by Mr. Aditya Khemka, Managing Director, Mr. Anup Nair, President, Strategy and Business Development, and Mr. Yogesh Sharma, Chief Financial Officer. Now, I will hand over the call to the management for their initial comments on the quarterly performance, and then we will begin the question and answer session. I also heartily congratulate the management team for posting a stellar set of numbers in Q2 FY26. Thanks, and over to you, Aditya sir. Yeah, hi, thank you, Aniruddha, and good afternoon, everyone. Thank you for joining us today. Aditya Infotech has delivered another quarter of strong performance in Q2 FY26, building on the momentum from the previous quarter. Our results reflect our aggressive growth strategies, continued market share gains, and an integrated approach combining strong brand recall, industry-leading manufacturing capacity, extensive distribution reach, and sustained investments in R&D and strategic collaborations. The implementation of STQC norms in April 2025 marked a significant regulatory shift for the industry. While the first quarter was a period of adjustment characterized by temporary supply chain disruptions as well as certification backlogs, the second quarter witnessed a return to normalized growth. This recovery has been led by CP Plus, which now offers the most extensive STQC-certified portfolio in the market, underscoring our agility, regulatory readiness, and commitment to maintaining market leadership. With respect to manufacturing capacity expansion to fulfill the growing demand, we continue to invest significantly and have increased capacity to 1.8 million units per month in this quarter, and growing further to 2 million units in the coming Q4 2026. Most of this has been funded entirely through internal accruals. Our housing and molding plant was kicked off this week, and the same is expected to be operational by middle of next year, further supporting in-house backward integration. On the R&D side, we continue to expand our investment, adding more engineers on a constant basis and aligning with critical components and semiconductor companies to deliver cybersecure CCTV products. We opened a new R&D center in Ahmedabad and are on track to open a subsidiary in Taiwan, all for R&D purposes. This quarter, we also announced a definitive agreement with L&T Semiconductor Technologies to manufacture nine million IP cameras over the next three years as soon as the chip gets ready. Together, we are co-designing India's first IPC SoC with Vision AI technology, enhancing energy efficiency, data security, and AI-driven surveillance. This collaboration further strengthens CP Plus' position as a global brand, proudly building in India for the world. Let me walk you through briefly now on our financial performance for Q2 2026. Q2 FY26 revenue stood at INR 919.6 crore, growing 37.5% year-on-year, driven by robust traction in CP Plus-branded IP cameras and record shipments of certified models. EBITDA stood at INR 111.1 crore, up 157%, with margin expanding to 12%, supported by favorable brand and product mix, increased localization, and operating leverage. PAT rose 239% to close to INR 70 crore. If you look at the first half of FY26, revenue has touched close to INR 1,660 crore, and growth has been about 27% year-on-year. On the EBITDA side, we have increased over 102% and standing at INR 176 crore, and H1 EBITDA looks at 10.6%. On the PAT side, we are also growing at 138% year-on-year, crossing INR 103 crore in the H1. We have also made significant progress in strengthening our balance sheet. The use of the IPO proceeds for debt repayment has resulted in a meaningful reduction in the net debt and finance costs, thereby enhancing profitability and providing financial flexibility for future growth. Also, our consolidation of the subsidiary AI Dixon is showing gains in H1 FY26. CP Plus is gaining market share across all segments, reinforcing our leadership in the Indian video surveillance market. As per independent source, our market share stood at 31.4% in Q1 of FY26 and has further consolidated in Q2 FY26. Report yet to come out. CP Plus brand share in India and overall revenue has grown to 86% in Q2 and is expected to grow further in the second half of this year. Also, the share of IP products in overall CP Plus portfolio has grown significantly to almost 70% in the last quarter. We now plan to launch a multi-brand strategy to maximize our market shares, serve diverse customer needs, and reach into the roots of Bharat. At IFSEC 2025 next month, we will unveil two new brands, Eyra and Nexiview. Eyra will offer an alternative to partners currently serving Chinese brands, while Nexiview targets the Indian interiors market and aims to organize the unorganized segment. The impact of these brand launches will be seen in the last quarter of this financial year. In CP Plus brand, we are also focusing on multiple series to capture the value and SMB market, as well as launching soon the Pro Series next quarter to target global brands, which will go live in the coming quarter. The market in India is undergoing a complete reset, driven by strong sector growth and a clear preference for Indian brands, and CP Plus holds a distinct advantage in this transition. We have secured key customer acquisitions in private enterprise as well as government sector and continue to increase our feet-on-street presence to strengthen engagement with consultants, architects, and system integrators. Globally, we are witnessing a shortage in chipsets, sensors, and storage, largely driven due to the DDR and flash prices going up, as well as the supply constraints. While this may sound disruptive for smaller players, it also will lead to supply consolidation, which will further benefit CP Plus to consolidate its market share. We also expect price rise across various categories in the coming quarter. All these developments, combined with operational efficiencies, position us well to sustain growth and create long-term value for our shareholders. Looking ahead, we remain confident of meeting our FY26 guidance of 25%-30% revenue growth, EBITDA at 10%-11%, and PAT margins of 6%-7%. The organization will continue working to meet or beat this guidance in the coming half year. Thank you once again for your continued support, and we now can open the floor for questions. Thank you. Thank you very much. We'll now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on the 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. Participants, you may press star and one to ask a question. First question is from the line of Dhruv Jain from Ambit Capital. Please go ahead. Thanks for the opportunity and congratulations on great results. My first question is, if you could just split what has been the volume and the value growth in this quarter for the entire revenue? So I think it's pretty much at par volume and value. See, basically, the analog market is more or less going flat, and the major growth is coming from IP cameras. So if the market in India is growing 15%, 17%, IP is growing almost 2X because earlier market was literally half of 40, 60. And we, being the largest certified portfolio and the largest Indian brand, are actually growing much faster. Some of the brands are still grappling in the process of certification. So our growth of IP camera is very high, and on the value side also, it's at par, more or less. Yeah, and we haven't taken any price rises at the moment. Like Aditya was saying, we are expecting price rises from next quarter onwards. So essentially, this revenue growth has come from the volume growth and by market share increases. Sure, and if you could just quantify what kind of price increases do you envisage in the coming quarters? So I think the teams are working on that. They're trying to see how much minimum we can sustain and pass to the Indian consumer. So I think we probably would announce in the first week of January. Sure. And my second question is, in your presentation, you mentioned that you're going to start lens and PCB module manufacturing from the fourth quarter onwards. So just want to understand what kind of margin impact would it have in terms of improvement for the next year? So I think initially, I don't see major margin impact because there will be a sustenance period of learning curve, and we will first localize it and try to get more and more localization done on the lens and PTZ module side. But yeah, in the mid to long run, there will be a few basis points in per camera cost as we gain efficiencies and scale. So hard to say right now, but yeah, I think maybe in the coming quarters, we'll have a better visibility on that question. Thank you. Those are my questions, and all the best. Thank you. Thank you. Next question is from the line of Manish Poddar from Invesco India. Please go ahead. Hello. Yeah, hi, Manish. Hey, hi. Just one question, so can you help me understand, do you guys have the distribution infra for these new products which are launching or planning to launch, and how should one look at, let's say, from a margin perspective when one is trying to think of this new opportunity? Thank you. Yeah, that's a great question, Manish. So I think margin side, we are very cognizant. We'll keep it at par with our own brand. What we are trying to do is create different products, different SoCs, working with every semiconductor company so we are having foot in the game across the board and position these brands in a different strategy. So there is a set of channels which have been serving the Chinese brands, which has created a vacuum where, of course, a large chunk of that is coming to CP Plus, but there is a chunk which is still scouting other areas. So we thought we'll launch a second brand alternative because these guys work largely on a depth model rather than a breadth model where CP Plus functions. So that model, we are going with the Eyra brand. On the Nexiview side is a more product, let's say, for rural market, more mass market, the unorganized sector, those kind of players to attack that segment and have an answer to that price points. May not be exactly that price point, but slightly higher for the market. So that's there. Margin side, we are keeping it more or less at par with our own brand, CP Plus. And we have the distribution infra because most of them were connected. And in the past, if I can tell you, we were doing a two-brand strategy. So that one brand is already a vacuum. So that channel is still there with us. Some have come to CP, some will go to Eyra, and then we will look at the newer category of channels with Nexiview. Okay, and can you also talk about, let's say, from a capacity perspective? Manish, sorry, can you speak louder, please? Sorry. Yeah. Also, can you talk about, let's say, from capacity per se? I understand you all are increasing capacity in the plant, but can you also talk about, let's say, backward integration in any components as such, which will be critical, let's say, from a thought process, let's say, in the next 12-18 months? How are you looking at those areas? Thank you so much, and congrats for the result. Thank you. Thank you. I think on the capacity side, we are expanding quarter on quarter, and we are preparing ourselves for the next year's market demand also, keeping some market share in our mind. With respect to components, yeah, whatever. Like I said, even in my earlier calls, whatever is locally possible in India, as of today, we have already kickstarted that work, either third party or in-house. Things like housing, power, cable, we are going in-house more or less. Things like lenses, we are going in-house. But stuff like a semiconductor or very basic passive electronics, we are right now not putting our foot in the component ecosystem because that's a different business model. I mean, I can't set up a component ecosystem for only serving myself. So that, we are partnering or collaborating with the global giants. Some of them are setting shops in India, so we'll look at localizing. Those who are not, we'll look at Taiwan or Korea or U.S., whichever countries. The passive, maybe we may continue buying from Taiwan and China. So that's what we are doing. So I think a sizable chunk will be localized. The goal is that at least half or more than half in the next 12, 18, 24 months, we are able to do majority of our products locally. Got it. Thanks. Thank you. Next question is from the line of Krishnan Swarath from Samriddhi FinServ. Please go ahead. Hi. My first question is on the inventory and the debt level. While we are increasing our top line, they seem to be inching up as well. So just wanted to understand, is this something we expect going forward as well due to, say, the nature of the industry, or do we have something in mind to sort of stabilize at these levels? Hi, this is Anup Nair. The data and inventory, it's actually stabilized now. If you see, it's actually improved. From a cash conversion cycle perspective, there has been improvement this quarter. I think the net working capital cost possibly is looking up because we retired debt. I think we are working on improving efficiencies on this level, and I think you should see the efficiencies quarter on quarter. Got it. Got it. And the second question is on the supply side gap. So while in the previous quarters, we were seeing a supply gap at the ground level, but now, do we still see that persisting going into, say, October, November as well, or? It's difficult to say how many more brands are getting certified, but on the ground, we are still seeing sort of status quo. Like we were mentioning, we have gained significant market shares in IP, and we expect this to improve. There are a lot of players who have applied for certifications, and they are underway, but difficult for us to predict how much of them will get certified in the next two quarters. More so, how much of them will have scale to catch up soon with the pent-up demand? So I think from that perspective, CP Plus has a clear sustained advantage. Got it. And the last question was on the margins, the gross profit margin. So there's a 9.4% year-on-year expansion. Out of this, is the margin due to consolidation roughly like 4%-5%? No. So the major driver has been the change of the mix within the company. So CP Plus revenue in the quarter past has risen to almost 86%. So this was standing at around 70% last year. So this has risen to almost 86%. And we see that possibly next to this can even rise further to possibly 90% level. And within the CP Plus portfolio, the share of IP cameras, that's also improved significantly. And in Q2, it was closer to about 65%, and we foresee this being at these levels. So these have been the major margin drivers. And then, of course, the finance cost saving and the consolidation benefits. And the localization benefits. But the major drivers have been the CP Plus mix and the mix within CP Plus. Got it. Okay. Thank you so much. All the best. Thank you. Next question is from the line of Nikhil Kale from Invesco. Please go ahead. Yeah. Thank you for taking my questions. Congrats on a stellar set of numbers. So just want to kind of dive deeper into the gross margin expansion. So you mentioned that it's largely being driven by the product mix. Now, whatever localization kind of efforts that you're taking, first, we just wanted to understand what percentage of BOM are you kind of trying to localize over a period of time in India, and then what kind of cost benefits do you see coming in because of that? Yeah. So I think I just answered that, the previous one. So basically, as I mentioned, whatever stuff like all kinds of mechanicals, power, cable, all these things are getting localized either in-house or third party. And in the mid to long run, mostly in-house only. Some of that work has already started. And in any case, we have localized all of it, whether it's third party or in-house. Then the lens is starting in the coming quarter. But the only thing which will still be dependent on global brands will be the semiconductor memory flash DDR, which is SoC sensor memory flash, and basic passive components, capacitors, resistors, diodes, these kind of things, which we will continue to buy from global brands or Taiwan, China, depending for the passive components. So I believe in the next 12 to 24 months, gradually, we'll see more than half localized and half import in terms of the value of the model. Okay. Understood. Understood. And this mix benefit that you're talking about, so that will kind of continue. And you're also talking about possibly pricing increases kind of coming through the next few quarters or starting from the next quarter. So from that perspective, would it be fair to assume that your gross margin should ideally inch upwards from the current levels? Yeah. We hope to achieve that, yeah. Okay. Understood. And secondly, just on the other expenses, right? So I think other expenses, there has been a pretty sharp increase, 60-odd% kind of YY increase there. Just any bunching up or any one-offs to kind of follow there? IPO expense, maybe? Other expenses. There's no one-offs, Nikhil. I think there are investments going into manpower, into R&D, and more or less all in the line of business. There must be IPO expenses. And other than that, there are no one-offs. Okay. Understood. INR 25 crore of IPOs. So that is what was the IPO expenses? You could just qualify that. No, it's not. We believe it's about INR 25 crore, but I think it's netted off within the share reserve. Share premium? It's not part of the expense. No problem. Okay. Okay. Understood. Thank you. Thank you. Next question is from the line of Mitul Shah from Path Pinnacle. Please go ahead. Hello, sir. Congratulations for the very good set of numbers. Sir, I have two questions. First question is, there is a notification yesterday came from the government of India that they want to increase surveillance for all the critical places, and they want to have a surveillance mechanism for like of China and every other country has. India doesn't have right now the surveillance mechanism. So how much order book you are expecting from the government that and second, there are two parts of it. One is software part, and one is hardware part. Hardware part, yes, we can cater to it. But software part is the surveillance for AI-based surveillance. So how much we are prepared for that, and how much demand you are expecting from the government? See, government in India has a long gestation period. We have seen cases which are going on sometimes for years. Sometimes they close very fast. So it's very hard to predict government business. It's still about 15% of our revenue. We feel there are certain sectors of the government which will propel demand in the government space, one being railways, where it's quite hot and a lot of work is going on. And probably one of the biggest ever supply of CCTV will happen in railways in the next one-to-two years. And we stand as a major contender, being the largest Indian player, all made in India here. On the public safety side, pockets here and there, smart city, safe city, critical places, these things are decentralized, very difficult to predict each project. But yeah, what I can say is we are one of the largest contenders at this moment, even in the government space. And we are well prepared with respect to hardware or even a lot of AI solutions also. From the software side, how much we have for surveillance system, how much we are prepared for the surveillance system? As I said, for AI solutions, we are quite prepared, and a lot of work is further going on. We will soon have some more information once we go live on those, probably in the coming quarter. Sir, I want to understand one thing. We have almost this product is made by us. So why our operating margin is at 10% and EBITDA is 5%, 6%-7%? So what is the reason for that? Even though you have all the channel partners with you, everything is there of your own side. And this product has also been developed by you. So why it is like that? Why do you have 6%-7% PAT level? I think we have to understand that we were the only company fighting the might of global brands, and especially global giants of China, which actually in many electronics eroded local brands. We have come out stronger. Now, thanks to the global leaders, right, from U.S., U.K., and now India, Australia, where they have given backlash to critical sectors, to Chinese companies in critical sectors like telecom, drones, and CCTV. I think now we have a great opportunity to improve the margins. Like we have already seen a 12% EBITDA last quarter, 7.5% PAT already. And as I answered just before in this question, we see improvement, hopefully, in the coming future from this side. And I have done the channel check, sir. Almost all of the brands don't have any portfolio for the STQC completed. Even the biggest of the players has only like one indoor and one outdoor unit has come. So for another three months, there is no major player. So how much market share you are going to gain in that case? Will it be continue like last three months? This three months will also we see that you'll have a tremendous market share gaining from the other players? So that's what the organization is working on. It's a solid platform we have and the readiness also. Plus, we already are sitting on a large market share of almost over 30%. We feel our market shares have further consolidated. And even in my guidance speech, which I gave, a lot of factors I mentioned, I ended stating that we are at the best position to further consolidate our market shares. Even the chips shortages are going to probably help companies like us to further consolidate because past experiences, the big gets bigger, and the small, medium, unorganized face some challenges, and there are shortages or price rises. So we are preparing ourselves for a sharp increase in market share in the coming H2 of this year. And we believe the readiness of others, we can't comment, but we believe they will all take time. Yeah. That's what they are saying. So that's why I'm saying that for the next three months, all of them, maybe they come in after January or March. They are expecting approximate around March. I've talked to each and every player. So that is the feedback I've got. And another feedback that I've got that only yours have the promotional event going on this time, but Tesla event. Due to that, a lot of people have bought a lot of camera. So do you see for the next three months the sale coming down because they have advance booking they have done to just get to qualify for the events, promotional event that you have done? So, Mitul, good. I think you have done a lot of channel checks. So the scheme that you were mentioning was for last quarter. It's already closed. And these are ongoing schemes which we do for every quarter. So there's a new scheme already announced for this quarter and for H2 as well. So these are periodical schemes. There is nothing exceptional here. These are incentive schemes that we run for the channel quarterly. Okay, so channel has. Mitul, there are others waiting in the queue as well. So I think we have taken quite a few questions. So if you could just join the queue again if you want any more questions? Yeah, yeah. Sorry, sorry, sorry. Thank you. Thank you. Next question is from the line of Herman Mehta from Kotak Mutual Fund. Please go ahead. Yeah. Thank you. Two bookkeeping questions from my side. Most have been answered. In terms of how I see a sustained improvement in the gross margins, you also highlighted that contribution of CP Plus is only going up, so ideally, that 23%-24% gross margins have started to move up, and obviously, as quarters go by, we'll see a much higher level than what we saw in the past quarters. In that context, how should we look at EBITDA margins on a sustainable basis? Should EBITDA teens, once the new plant stabilizes and operating leverage comes in, be something which is a possibility given the stellar traction and several business tailwinds what we have today? Yeah. So Mehta, I think you're absolutely on the right track. We are also working on those that early teams would be a good position to be in for the EBITDA moving forward. We are working strongly to look at that in the H2 of this year only. Okay. And in terms of the second question, should one I mean, can you just quantify? Are there any price hikes already taken in the last four, five months? Because our channel check suggests that there is already INR 300-INR 400 on a blended basis in various products already price hikes which have been there in the market. So I mean, are these already being taken or? So let me explain. Price-wise, we are planning from next quarter. This is a product change. What happened was pre-STQC, there were products made on a different SoC. Industry was using Chinese Semicon also and making products. Some of them, as per the Indian government, new norms might be vulnerable for backdoor surveillance or something like that, which they believe. We have not come across any such case in the last 18 years of our history, but people believe. Then the government came out with stringent norms to basically elbow out the neighboring country brands on this critical sector, like they did in the Press Note 3 or other things in other sectors, and very strong cybersecurity checks, cybersecurity norms, which is what the STQC test labs is. Now, when you develop products for certifying those, you can't develop first on a Chinese SoC because that is not allowed. You have to look at a Taiwan, Korea, Japan, or U.S., which, where the, of course, the costs are a little higher because of the meat which puts in the SoC. The memories on those SoC are required much higher, which jacks up the further input cost of the product. And so are the certain other components. Only then you can put in the right algorithm, the software, the code to fortify the product. So that there is no backdoor, nothing possible from anywhere as long as people don't know your password. So that is a change of product. It's like this gear of Apple or Orange compare [Foreign language]. Now. Fair point. Fruit to fruit here. Fruit as a camera here. But Apple [Foreign language] Apple [Foreign language] allowed [Foreign language] mango [Foreign language] mango [Foreign language] cost [Foreign language]. No price was raised. Moving on, there will be a price rise, which is evident because of the component shortage, the foreign exchange, a few other things. They'll pass it on to the market. We are working on that, what is the percentage to pass on to the market from January. So it's a reset of the market. It's not still the market absorbed that old inventory which was lying in the market at old prices in the H1. Sure. Sure. And continuation to this, between market share and pricing, will market share be a clear priority, maintaining margins at healthy levels, maybe about 9%-10%? I think you can say so, but yeah, I think we'll have to strike a right balance on this. But at this moment, I think for us, of course, market share will be a priority because it's a great opportunity to sit at a very high market share opportunity in the coming quarters. Got it. Thank you so much, Aditya. Wish you all the best for subsequent quarters. Thank you. Thank you. Thank you. Next question is from the line of Anuj Kashyap from A3 Capital. Please go ahead. Hello. I'm audible? Yes, sir. Yeah. Maybe a little louder, Anuj. Yes. Congratulations for the good set of numbers. So last time we discussed. Anuj, sorry to interrupt you, but your voice is coming a little muffled. Okay. Hello. In the last conference, we discussed about the traction in the exports of the surveillance systems. Are we seeing anything on that front? So I think last call, people had asked me about it. I said, "Right now, there's so much handling happening here in the domestic front. We want to further first consolidate our position here, our market shares here." So we stand by that. While on the parallel, we have started our work, but I think we will look at it with more seriousness and focused approach in some time later. Right now, I think too much is happening here. There is multi-brand, multi-series strategy, backward integration, localization, capacity expansion, R&D expansion, so much of work and market share expansion. So I think we'll first focus in the coming maybe few quarters in the domestic front, while we will, on the parallel side, prepare ourselves for the export market. But I think that will be probably a few quarters down the line. So you're right. So there's too much on the plate right now. Yes. Too many fronts. Yes, so thank you. That's all. Thank you. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Mulesh from Shah & Savla. Please go ahead. Thanks for taking my question, and really, Aditya, congratulations on excellent numbers. Sir, can you please help us understand a little more about our JV with L&T Semiconductor Technologies for chips and all those things? What will be the scope of work we will be doing, or what will L&T be doing, and what kind of revenue generation can we expect out of that? That's my first question. Sure. So let me take that. So see, first of all, there is no JV with L&T. It's an MOU with L&T. It's a definitive agreement. So there is no joint venture. So L&T has invested into semicon development, and they came to us probably a year or two ago to co-develop IP camera chips, and we being the anchor customer to work. So our R&Ds and them have been working closely to define the right BOQ, right chip, right semicon, right parameters, what is going to be the solution, what kind of cost, and then start developing. The development is being done by their engineers. Our teams are supporting that. We have then signed that we will buy nine million chips in the three years once the development happens and use it in CP Plus products and develop products on those chips, which even the Indian government, Ministry of Electronics, the minister is wanting that India's chips nikalne or India's chips kam ho. Of course, these are time-taking activities. The development of a chip is a two-year process. We already passed one year. Hopefully, in the coming year, we should be able to roll out something. Then product development hoka us pe. That is the arrangement. One second. Yeah. Sorry. That's the arrangement with L&T, and I believe they are doing similar such things in other categories of semicon also. Okay. So basically, we will be sourcing chips from them rather than importing it or buying it from other vendors? A part of our requirement, so we can't shift everything to a new chip. We will look at once the chip is passed our stringent quality tests and our product development. A part of our requirement, we will use the locally made chip, and we will have, of course, preferential pricing, preferential benefits, preferential lock-in at the initial year, those kind of things are there. Great. Great. And sir, how do we see still the competition from our competitors like Matrix and other China brands are now with these STQC norms? Other China brands are no more sold in India, or what is the status, sir? So most of the Chinese brands are not qualifying because the norms are not allowing those Chinese brands to be playing the IP camera field because of trusted supply chain and the cybersecurity norms. So they are not active in this field. We mentioned Matrix. Matrix is having some products qualified, but we don't see them in the retail distribution space, which is our largest place. We see them in certain cases somewhere in enterprise and government. But I think it's more of a regional player based out of West and few places here and there. So off and on, we have them, but not something which crosses our boardroom talks. Right. So basically, we are the market leaders so far as local production is concerned. You can say so at the moment. Yeah. Great. Great. And just if I can squeeze in one, Dixon is our equity holders, and one of the subsidiaries where they were also joint partners have become now the shareholders of our main company. So what kind of involvement or role they play in manufacturing activities, and do we look at something more also to be produced locally and sold in collaboration with Dixon? So I think Dixon has been a great partner over the last seven, eight years of relationship as a joint venture. Then we bought over the stake and became a subsidiary, and it was a share swap given to them. So they are a shareholder. The Managing Director of Dixon is a Director on the board. So they play an active role on the strategy side with us and very valuable insights. With respect to manufacturing, we have a service agreement in continuation with them. So for running the plant, while we have already put in our own teams and our teams are driving it, but they are always there for any kind of support should we need any due to the agreement we have and the relationship we have. With respect to other products, if any, I think if we take a call to look at another product category, and if Dixon is the right bet, then we look at that. Or otherwise, I think it's hard to say today about whether Dixon will be the right bet or not for that product category. So it all depends in the future which product and who's the right EMS, or we do it in our own plant. We'll take a call. Great. Great, sir. That's very helpful, and thank you so much and all the very best. Thank you. Thank you. Thank you. A reminder to all the participants, you may press star and one to ask a question. Next question is from the line of Aniruddha Joshi from ICICI Securities. Please go ahead. Yeah. Sir, if you look at the large player from China was extremely active in southern markets as well as Mumbai City. And now with that player getting out of the market, what are the strategies we are trying to implement to gain more market share in southern markets as well as the Mumbai markets? I mean, if you can elaborate in terms of what are the new initiatives we would have implemented to gain market share. That is question number one. So secondly, in terms of we keep hearing that a lot of schools are likely to. CBSE and ICSE both have made it mandatory. Even Maharashtra also, I guess some of the schools have been asked to, in a way, implement CCTV cameras. And I guess in UP, school buses are asked to implement CCTV cameras. So what are our initiatives on this side, and how do you see the market progressing on this front as well? Yeah. Two questions. So thank you, Anuj. So I think you pointed out well. The west and south were stronghold of some of the global brands and the Chinese brands. We also are strongly present, but market share relatively was smaller. We have seen great traction in the last quarter itself from some of these markets. And what we've been doing over the last few quarters is investing heavily in feet on street in all the west and south regions. And we've fairly gotten a lot of trained manpower, experienced manpower, right from government to enterprise to private sector or to distribution space to cover maximum of this market share. On the other side, we are also in plans to have a south-centric extensive 360-degree marketing campaign. So far, if you see, our brand has been very strong brand recall in the Hindi-speaking belt with our tagline, "Uparwala Sab Dekh Raha Hai," and then the brand ambassadors and stuff like that. We've now planned a very strong south-centric campaign, picking up brand ambassadors from all the south three states and looking at a very comprehensive strategy so that it becomes a household name known to every person right in the village in the South of India also. I think that will help us a lot along with the product portfolio and the offering, the feet on street and the maximum investment going in those regions. A part of that we could see in the last quarter, and we believe in this quarter and moving forward, we will keep seeing our market share growing in the West and South of India. Regarding the second question of schools, Government of India came out that all the schools should have cameras. We are seeing results here and there from most parts, and our teams are working with all the private sector or the government schools to ensure that maximum of the coverage and the pie comes to us, and so on and so forth in almost every sector, so manpower expansion, touchpoints expansion, marketing expansion, specifically dedicated to pockets where we need more is all coming, and it's all on the cards, so the teams are working on that here. Okay. Sure, sir. One more question. What is the strategy of the global players like Bosch or even Honeywell, which are non-China-based players? So logically, they may be successful eventually in getting the certifications across the product range. But eventually, I guess they are still not in the channels or the retail markets. So it's difficult to understand the strategy from a retail perspective. So how do we see these players in a way changing the stance, and what is our strategy again to counter these brands also? Yeah. So, the global brands, most of the DNA has been enterprise and government in the past two decades or more. I believe they will still remain there. One or two brands may try to enter the distribution space, but it will take a lot of time. And I don't think they can cover up the mass scale distribution with the scale, size, the DNA, and other things. So some brands, like I believe Honeywell has some certification already there, but we don't see any products out. So I don't see that as a major market share play from any of them because, first of all, those who can do that are not having their own products. They only source from others. Those who have their own products only play in the large scale, the very, very higher end of the market globally. So I think it's hard to comment if somebody like Apple would come down to a Vivo or even below price in a mobile market. So I think we'll have to see. At the moment, I don't see anything like that happening or any major traction from most of these brands. Okay. Sure. So last question. We also do some of the contract manufacturing for some of the brands like Qubo, etc. So are we going to continue on these lines or to use the excess capacity, or we would be completely using the capacity only for the CP Plus products now? So I think without naming anyone, I would say we will continue OEM, ODM, EMS work for anyone who we feel is strategically okay and not too much of a competing. It only strengthens the manufacturing facility. And we'll continue to expand the capacity to keep feeding that also, of course, without compromising any of our own brand or brand's capacity utilization needs. So first and foremost will be our own brands, and then whatever excess is there, we are okay to manufacture for others, whether Indian brands or global brands. Okay. Sure. So this is very, very helpful. And congrats to you and the entire team for posting such a stellar performance. Thanks from my side. Thank you. Thank you. A reminder to all the participants, you may press star and one to ask a question. I mean, this will be the last question, so. Sure, sir. Next question is from the line of Nikhil Kale from Invesco Mutual Fund. Please go ahead. Yeah. Thank you for the follow-up question. So you talked about Matrix Comsec. So I think on the STQC side, we see a lot of certification for, say, Prama as well. So just wanted to understand your views on how are they kind of spinning up in the market. And from your perspective also, I mean, what is now the entire product portfolio that you had now kind of STQC certified? How are you placed there? So I think Prama has got certain certifications which we are seeing on the website. They have also launched certain products in the last quarter. Supplies were a bit limited. So far, midway of this quarter is very same similar stage. We hope to see some more supplies coming from them in the coming future. But I think that's good enough for the gap fulfillment in the market. So they will have their own space. And I think that's fairly okay for us. Yeah. Understood. And just your product portfolio, is it now completely? I mean, all the kind of SKUs or different? No. We are still on the way. Yeah, we are still on the way. But a larger chunk is there, and every fortnight, new certification keeps coming in. So it's an ongoing process, and I don't think this will finish ever. It will keep going on, and then new models again will launch and new certifications will go on. So it's become a full-on department now in the organization to keep doing this. Understood. And just I think there was a lot of inventory that had kind of come in before the certification kind of set in at the industry level. So how are we placed there at the industry level? I mean, how do you think now it is kind of normalized or things will start? I think it's more or less dried up now. I think it's all consumed more or less. Now, if there are some leftovers here and there on certain pockets, INR 1 lahk, INR 2 lahk, INR 3 lahk cameras across India, that might be there, I believe. But I'm not sure if any major chunk is lying with anyone. I think it's more or less dried up. Got it. And just last one. Last quarter, a lot of that got consumed. Last quarter. Understood. Understood. Just one last bookkeeping question from my side. What was the ad and sales promotion spends in this quarter? Devesh we have the marketing spend for the last quarter? Just one minute. Just opening this. It's 29, sir. INR 29 crore. Okay. Thank you. Thank you so much. Thank you. Thank you very much, and I'll hand the conference over to the management for closing comments. Thank you. I'd like to thank everyone for taking out time and joining this call, and thanks all everyone for all the support, and looking forward to hosting you on the next conference call in the next quarter. Thank you. Thank you very much. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.