Ladies and gentlemen, good day and w elcome to the Finolex Cables Limited Q4 and FY 2026 earnings conference call. As a reminder, all participant lines will remain 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 the operator by pressing star then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Pranay Premkumar from Dentsu One Investor Relations team for opening remarks. Thank you, and o ver to you, Pranay. Thank you, Ryan. Good evening and thank you all for joining us on the Finolex Cables Q4 and FY 2026 earnings conference call. Today we have with us Mr. Mahesh Viswanathan, Deputy CEO and Chief Financial Officer from Finolex Cables Limited. We will begin the call with the opening remarks from the management, after which we will have the forum open for the interactive Q&A session. I must remind you that the discussion in today's earnings call may include certain forward-looking statements and must be viewed therefore in conjunction with the risk that the company faces. Please restrict your questions to the quarter performance and to strategic questions only. I would now request Mr. Viswanathan for the opening remarks. Thank you, and over to you, sir. Thank you, Pranay, and welcome, ladies and gentlemen, to this call. I'm sure you, by now, have seen the results, analyzed, and dissected it at your end. Briefly, I will go through the highlights as I see them. Revenue for quarter four was up by about 22%, both year-on-year and quarter-on-quarter. For the full year, revenue was up about 19%. EBITDA for quarter four, there was 7% improvement year-on-year and 22% quarter-on-quarter. For the full year, it was about 14% better than last year. PAT for the quarter was approximately 6% better YoY and 19% better quarter-on-quarter. PAT for the full year was about 14% better than last year. These are broad numbers. Of course, quarter four, towards the end of quarter four, we had the shock from the Middle East, which resulted in cost increases across the board. While the LME copper did stay low for a couple of weeks, the rupee depreciation as well as cost hikes in most other raw materials meant that at the end, we were left with a higher cost of production than before, and therefore, margins were slightly under pressure. If I go into the individual segments, for electrical sector, revenue was at INR 1,697 in the quarter, was the highest that we've achieved, and i t was about 22% higher YoY and 21% higher quarter-on-quarter. For the full year, about 22% higher than the previous year. EBIT numbers were also fairly strong, 30% higher on quarter-on-quarter basis and 17% higher YoY. For the full year, EBIT was about 18% better than last year. Some comments on the sector. There were certain product lines which did extremely well and certain product lines where the growth was slightly lower, and one product line where the growth was actually lower. Auto, batteries, industrial flexibles, and power, all these sectors did extremely well, generating approximately high double-digit growth in volume terms. Auto was about 30% higher, flexibles was about 17% higher, and power was about 21% higher. Solar cables, which we introduced last year in the fourth quarter, has been very well- accepted, and we are nearing capacity utilization at this point in time. We are looking at increasing the capacity going forward. Building wire was steady but had been impacted through the year because of constant copper price increases, which meant that we had to pass it through to the customers. There were times when there was resistance from the market, but o verall, in the year, a very marginal volume growth. Agricultural applications was one area where there was an issue. The pre-seasonal monsoon plus continued monsoon both impacted the volumes here. It was down by about 15%, 16%. The year-end Middle East disturbances, like I mentioned earlier, had some impact in terms of increased RM cost, and together, coupled with INR depreciation, meant that the overall cost of production was higher. Inventory costs crept up a little bit, and that, of course, impacted the end-of-the-year margins a little bit. We had, during the year, close to 14 price changes, all upwards. The effective price change at the market was about 24%, 25% in most of the [audio distortion]. This is on electrical. Coming now to communication side. Revenue, if you saw, was kind of flat for the year, whereas quarter four, we did well. We were up by about 30% YoY as well as quarter-on-quarter. Some background to this, fiber prices during most of the year, at least for the first nine months, for seven, eight months, were pretty low, but started hardening towards the end of quarter three, and since then, have continued to climb. Some of the reasons behind this, there is an explosion of data center applications in the U.S. and in Europe, which is practically eating up all available fiber supply. Currently, raw material availability is a constraint for everybody. Most capacities in China and Japan are locked completely. Added to this is the newfound military applications that have also pulled in a lot of fiber. Both the wars in Russia and in the Middle East have triggered newer applications, and apparently, fiber is getting consumed there. That has resulted in a short supply kind of a scenario at this point in time, which has helped the fiber prices harden. I think the advantage to us in terms of improvement in revenue, we should see some during the second half of this year. Our commitments locally, domestically, have been long-term yearly contracts, and those were at fixed prices. Until those contracts run out, we will not see the benefit coming into our financials. Hopefully next year, when we renegotiate the prices, that should change. On the fiber-related expansions part, we have commissioned the preform plant. I said in the last call that trials were likely to begin from February and end in a month's time. Mid-March, we commissioned the plant, and the plant should take another two, three months to settle down and stabilize. As of now, the performance is quite encouraging. The second part of that program, which was the fiber draw capacity expansion, that should get completed by, I think, July or so. Some CapEx will still come in the current year, but t he preform- related CapEx Phase 1, where we were setting up the plant for 100 metric tons, that has been completed now. Coming now to CapEx. Overall, we have spent about INR 240 crore last year, including infusion into the JV with Sumitomo. In the current year, that is 2026-2027, we expect to further spend another INR 200 crore on capacity expansion plans and complete the optic fiber preform- related CapEx, which is remaining. That will be another INR 100 crore. That will be the total spend in the current year. On cash flow, the cash flow from operations was about INR 50 crore lower than last year, but t owards the end of the year, like I mentioned earlier, after the disturbances started in the Middle East, we had to take additional inventory coverage. If you looked at our balance sheet numbers, the inventory is up by about INR 300- odd crore. Part of that investment has gone in there b ecause at that point in time, nobody was sure how long this war would last or what impact it would have in the medium or even short term. We needed to protect ourselves to be able to run the plants in April, in May, so s ome amount of pre-buying, but at higher expenditure, was done. I think we should be able to pass on the costs over a period of time to the end customer, so it should not be a very long drag on the margins. The other piece of information that I have is that the JV with Sumitomo, the extra high voltage JV with Sumitomo, that turned profitable this year. On a revenue of about INR 450 crore, we generated a profit of about INR 21 crore. The outlook is decent. We start the year with an order book of about INR 380 crore, and so I think, we have turned around the corner there. This is broadly the comments that I had to make before giving the floor to you. I'm now free to take questions if you have. Thank you. Ladies and gentlemen, 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 their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Manoj Gori from Equirus Capital. Please go ahead. Yeah. Thanks for the opportunity. My first question, obviously, I would like to congratulate you on your new role. Thank you. My first question is on the communication cable segment. Obviously, when we look at the quarter, this was the record quarterly performance on the revenue side, and even we saw some improvement on the margins, which could have been because of the scale benefit also. Now, preform benefits are yet to kick in, and we have seen relatively better improvement on the margins. As you highlighted in your opening remarks, that given the demand, especially from the west markets and some supply challenges, there is a huge scope for business into communication cable segment. For our purpose, how should we look at the growth from here on, and probably where do you expect, given the current prices, where should we expect that the margins probably by FY 2027 should settle for communication cable segment? That's my first question. Okay. At the moment, like I mentioned, supply chain, there are still some challenges. One is on the regular business side, there is extremely high demand towards data centers. Beyond that, there is this military application, defense application, which is also pulling in a lot of material. There are some restrictions in being able to participate in that because your raw material supplier also puts in covenants saying this cannot be used for military applications, so and so. The opportunities then get a little limited on that side. I think we will get a little more clarity once there is some finite information about what's happening in the Middle East. That keeps spooking the markets every other day. To predict what we will end up with at the end of 2027, even though it is not a long-term prediction, is a little difficult at this point in time. Also, because of the exposure to defense applications, some governments have put in embargoes on export of certain raw materials. We need to work around and see how those challenges are overcome. While there is a big opportunity at this point in time, and the prevailing fiber prices are fairly high, at the same time, securing the required raw material also poses certain challenges, so w e need to work around it. At this point in time, I'm not able to really commit to a number or even predict a number. But I think it should improve beyond what we have seen this year. This year, we ended the year with about, I think, EBIT numbers were about 6%. I think we should do better than that. Sure, sure. Got it. My second question is on the JV. After a long period, we have taken a lot of efforts on the EHV side, and probably, this is the first year where we have finally seen some numbers actually flowing in. Right. Can you highlight what are the steps that we have taken? How should we look at this business from a two-year, three-year view, where we can actually end up by FY 2028 or FY 2029 in terms of revenue? Because PBT, when we look at INR 21 crore at INR 458 crore of revenue, close to around 5%. Probably, the things are looking relatively brighter here. What's the overall thought process on this business? Okay. It has been a challenge for us over the last several years that we've been invested in this JV. Challenges were mainly around getting credentials for participation, showing experience, and some of the voltage grades becoming commoditized in the meantime. In the last year, our focus was more on the higher voltage grades, and also a mix of projects where there were only supplies and projects which were turnkey basis. That gave us a little bit of the, o nce we started getting in purely supply orders, then the cash turnaround times became smaller. Whereas when you get into a project-based business, then the turnaround times are much longer. Typically, you are unable to clear your receivables until the entire project is completed. On the EPC part involved, getting clearances and right of way in many of our cities or even sometimes in villages becomes a time-consuming issue, which drags the project for longer periods. This year, we've been able to get an order blend of both pure supply as well as full turnkey solutions, so t hat improved the operations quite a bit. The second part was to ensure and see that the key equipment, the capacity utilization improves further. At this point in time, the most key machinery there is occupied more than 80%. In fact, we are planning to enhance capacity there so that that would help us in increasing the overall plant capacity towards the 70%-75% promise. Utilization of capacity has been better this year and that means fixed cost absorption is, obviously, better and a focus on the blend of orders that we were getting. I think that is going to continue to drive the strategy. On the market side, there is a very large market. Currently, I think the size is about $500 million- $750 million, but the requirements that we are seeing when we talk to utilities across the country, eventually in three to four years, that size could go up to $4 billion-$5 billion. That's the kind of market expansion that we are seeing, or we are likely to see. It is also backed up by the fact that many in the competition are, today, some are adding and some are trying to add capacity of similar technology that we have. Until last year, they were not willing to spend that money, but o ver the last year, we have seen many more from the competition follow the same technology that we have in terms of the vertical insulation. That is something that is catching up. Both from the market side as well as from our own experience, we see that there is scope for growth. Sure, sir. Manoj, I would request you to please join back the queue for follow-up questions. Sure. Thank you. Participants, we request you to restrict to two questions per participant and rejoin the question queue. We take the next question from the line of Veenit from Investec. Please go ahead. Hi, sir. Good evening. I had one question in particular. When we look at housing wires, that hasn't been doing well for us as well as the industry as much as we would have liked. Particularly considering how real estate cycle has been over the last few years, particularly post-COVID, it had picked up quite sharply. What is stopping wires as a segment to grow, at least let's say in high single digit in terms of volumes? I think the runaway price escalation on copper, probably in terms of trade stocking, is not at conservative levels. They are looking at it fairly tightly because like I said, we've had 14 changes over the last year, and we've had one more this year. I think that's been an issue. Where the material is going to projects, we don't seem to have a major issue. It's the retail part of stock and sell which is I think a concern. For a distributor or dealer to invest fair amounts of money and hope that the price holds, I think that would be a challenge. That is a risk that less people are willing to take at this point in time. Sir, I meant the tertiary demand. Now, given wires as a proportion of doing up a house is so small, why are we seeing volumes not picking up or people deferring their purchases as far as the tertiary sales and housing wire is concerned? Which is what I responded saying when I meant project sales, those are the sales which are going into builders or contractors or developers. Okay. That is still stable. That has not dropped off. The retail one where you go to the hardware market or the electrical market and where the distributor is selling it or the dealer is selling it, t hat has taken a hit. Understood. Do you expect a similar phenomenon to play out in FY 2027 as well given price increases or we should see some bit of improved demand, let's say, in the next 12 months or so? I am not going to put my neck out there. I do not know how to predict that part. It depends all on the price movements, finally. Okay. Understood, understood. Thank you so much, sir. Thank you. Okay. Thank you. We take the next question from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please go ahead. Hello, sir. Thank you for the opportunity. Congrats on your new role. Thank you. I have two questions. Firstly, we showed improvement in terms of margins for our communication cables business, so c ould you explain as to what caused this? Is it like a product mix or a pricing? What is the reason for this? You had also mentioned in your opening remarks that we have some contracts with customers, so the pricing may not change. Will we benefit when the fiber prices have improved, or will we not get a meaningful benefit there? We should benefit, except that the timeframe is probably around second quarter. Got it, sir. And the first question? First question was how did we get 6%? Correct. There were a few orders besides the long-term contract which were taken at current prices, so that improved the numbers. Okay, sir. Just one last question related to this. With our future orders, when we say we have contracts, what proportion of our business is contracted and what will be like unutilized or uncontracted capacity? And preform started only in this quarter, so we'll start getting benefits from that only in this quarter. We also have Q1 additional capacity coming for fiber. So, will all these things change our overall revenue base in a meaningful way? Yeah, it should change, but you will not see it in quarter two. The preform part of it, like I mentioned, we commissioned it in March. For any plant with this technology to settle down, it takes about three to four months, so I expect that benefit to kick in from, the earliest I can talk about is end of quarter two or maybe quarter three. The draw fiber, draw capacity, which will get increased, will get commissioned towards the end of quarter two. Any benefit that we would get from that will only be after that. The second half, provided there are no other hiccups on the supply chain part, should be much better than last year. Got it, sir. The last quarter, you had mentioned that your revenue potential can be around INR 650 crore after this entire capacity comes. But this quarter. Right. You're clocking some INR 160 crore of revenue. Is this largely price-driven? At current prices, can the revenue be like ballpark of INR 1,200 crore-1,300 crore? Again, depends at the SKU level, depending on how complicated the construction of the cable is. For example, a cable which has got two fibers or four fibers, you're basically just paying for the, it's not a very difficult design to make, y ou are just paying for the raw material. As it goes into multiple fiber counts or higher fiber counts, 144, 288, or even beyond that, then the revenue per kilometer changes and changes substantially. It depends on what that order configuration looks like. Yes, given the price levels that are existing today, it can be beyond INR 750 crore. Got it, sir. Thank you so much. Thank you. We take the next question from the line on Tushar Dhonde from Shanghavi Family Office. Please go ahead. Hello. Hi, team. Thank you for the opportunity. Am I audible? You are very clear. Yes, sir. Hi. First of all, congratulations on your induction to the new role. Thank you. I have a few questions. First one being, sir, if I see the communication cable segment has showed a good growth in this quarter YoY basis, I was just asking you to what's our outlook over here in next few quarters. Could we expect similar or such growth coming over the next few quarters as our preform capacity is live? On the preform capacity, you did mention that we will try to consume it internally, and then, if we are left with the capacity, we will also try to sell it outside. How are we thinking on that? Do we have tied up with the customers for the selling of that capacity? Then, I have a follow-up. No. At this point in time, right now, the situation is that, like I mentioned in my opening remarks, fiber availability is a big issue at this point in time. There is no fiber to be had anywhere in the world. Any fiber that I can draw from my preform, I would use it myself. Selling a preform at this point in time, probably not the right idea. So, that is today's case. How it might change three months from now, five months from now, that is something that we will have to look at that point in time. The second part of your question was? On the growth in the segment. Sorry. Growth in the segment. Yeah, growth in the segment. Look, as you are all aware, like in the West, there is an explosion of data centers coming into our country as well. I think the government is also pushing to ensure that our data is hosted within our country and not outside, so I'm guessing that will add to the number of data centers that get installed here over a period of time. Yes, there is going to be growth. There is also going to be growth with applications around AI and similar technologies. It is, I think, the right time to be in this industry. Barring these hiccups around war disrupting supply chains, I think it should be a period of reasonably good growth over the next few years. That's great to hear, sir. I just had a clarity from the EBIT margin, segmented EBIT margin that you calculate. I did see that communication cables has seen a significant jump. I just wanted to make sure that have we included other income as a part of our EBIT margin calculation as well? No. Sir, I couldn't hear you properly. No, other income doesn't get included in this. Other income is not included in this? No, no. That is shown as unallocable items, no? Okay, okay. At a company level, it gets included, but at a segment level, no. Okay. Is that clear? So, at company level, other income is around INR 32 crore, and at unallocable level, it's coming to be around INR 6 crore. I'm guessing the INR 24 crore would have been already included in above? No, no. You're talking about the other income on the top line, right? Yes, it is. For this quarter, it's around INR 32 crore. If you look at the total, that is around INR 237 crore for the year. Yeah, right. If you look at the unallocable total, that is about INR 224 crore for the year. Thank you. We take the next question from the line of Nikhil Purohit from Fident Asset Management. Please go ahead. Hi. Thanks for the opportunity. Am I clearly audible? Very. Sir, first question, what is our maximum revenue potential from the electrical cables segment? Currently, what is our utilization rate and what is our target utilization rate for next year? Well, we keep enhancing capacities by rebalancing almost every year. Within the CapEx that we spend, there is a certain amount which is spent every year on adding two different lines. Basis the capacity that was available, let's say end of March, utilization would be around the mid-60s. There is some ability to grow further. The maximum revenue potential? The revenue potential can be at about 80%-85% if somebody is operating, they are doing a good job because none of these lines, this is not a single machine, one process. These are multiple machines with multiple processes. Not all of them are equally balanced. There will be always some bottleneck, either at the beginning or at the end or in the middle. Therefore, if someone is able to achieve 80%-85%, I think they are doing a fairly good job of running their plant. There is a headroom of about 10%-12% at this point in time. Sorry, 66% is where we're operating, so a bout 15% headroom is still available. Your revenues at current prices can go up by another 15% without major investments. Got it, got it. Could you give the retail versus project mix this quarter? Where do you see this going again because of the margins that play out because of the share? The retail versus project, you're talking about electrical wires? Correct. I think in the past, our retail- to- project ratio would have been 80:20. Now, probably it's around 2/3: 1/3. Okay, okay. Just last question on the communication side. What is our utilizable capacity for OFC right now, and when will we hit the 8 million fiber- km mark, and our target utilization rate? Because you said the fixed contracts should get over by quarter two, I think. If you could just throw some light there. The raw capacity that we have currently is 4 million km. That should cross to 8 million km by, hopefully, by end of second quarter. Okay. That means 8 million capacity will be available from beginning third quarter. 4 million is what is available for us to operate at this point in time, and w e are close to 3.25 million, I think, at this point in time. Sorry. Our utilization rate, you said is, in optic fiber cables? It'll be about 3.2 million out of the 4 million. Okay. If we hit the 75% rate, we had guided like 8%-9% EBIT margins, y ou already hit 6%, so i s it right to assume that, earlier you said that it should improve going into FY 2027, we hit the 9% mark? Yeah. Subject to no supply chain constraints being there. There are supply chain issues at this point in time. Things that we import, especially things that we import either from Europe or China, there are difficulties or time lags in getting those, so t hat needs to be resolved. But the fixed contracts problem should not ideally stop our growth, right? Apart from quarter one. No, that should not. We will renegotiate with, if the contract is valid until June, and the next contract, when they come with the tender and the bids, we will renegotiate. Got it. Within FMEG, what kind of growth did we see in the PVC conduits and fans business for FY 2026, just to understand? Fan has been a difficult product line this year, because in the initial part of the year, you had unseasonal rains, and towards the second half of the year, there were changes to the BIS norms, which meant that people were destocking any inventory that they had, and they wouldn't want to take fresh inventories. That has been an issue. Fan actually did not grow in volume terms. Conduits has done very well. Conduits, we are now operating at close to 85%, I think. Thank you. We take the next question from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead. Yeah, sure. Can you just help me understand in the communication cables, how much is coming from optic fiber and how much is coming from other communication cables on a rough basis? [audio distortion] percent would be optic fiber- related. Sorry, I could not hear it. Can you repeat it, please? About 3/4 would be optic fiber- related. 3/4, okay. Sir, just wanted to understand, since you just started, it's been two months since you started the preform plant, w here are we getting and how easy it is for us to get the germanium? That is the challenge. I kept referring to supply chain difficulties. That is the challenge. Fortunately, we do not require massive amounts, but it is a challenge that we need to overcome. Currently, how much inventory of germanium would be there with us? For how many months? I think that is sufficient to run a few months. Okay. Any kind of plan that you have for the FMEG segment as well that we're going to grow, or we are focusing right now on optic fiber more as a whole? No, sorry, I didn't get your question. I just wanted to understand if there is any growth kind of outlook that you can give on the FMEG business as well. Yeah, okay. Our performance has been under par there. That is something that we realize and appreciate. We are relooking at the portfolio in terms of what kind of products are we having there, do we need to modify some of those. We are also looking at how to strengthen the teams. Distribution is something that we've been working on, and that we will continue to engage with the distributors to ensure that both geography as well as products are fully covered. It is going to be a continuous exercise this year, and we definitely want to make this a success in the same manner as the other product lines. Okay. Thank you. Thank you. We take the next question from the line of Vidit Trivedi from Asian Markets Securities. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Most of the questions have been answered. Just one clarification. I remember we met you in the month of December last year, and you have said, we are working certainly something in the exports area. How the exports are shaping up for us, and what is the exports percentage this year? Okay. This year, our team was completely revamped. I think we've had our team in place for about six months of the year. Yes, they have made certain inroads, and they've done well. Earlier year, 2024-2025 export performance was about just around INR 30 crore, which went up to INR 52 crore this year. I'm looking at much higher numbers for the current fiscal. The team is a completely new team who are better prepared, I think. I think we should be able to show a larger revenue share from the export side. Until last year, the revenue share was, let's say, about 0.5% to just under 1%. I see it climbing to about 2%-3% over the next two years. Got it, sir. That's helpful. Thanks a lot. All the best. Thank you. Thank you. We take the next question from the line of Sushil C. Choksey from Indus Equity Advisors. Please go ahead. Sir, congratulations on your new designation and very good result. Thank you. My first question is, given the situation, boom in solar, not only in India but outside of China also because of the energy crisis, and led by data center, defense, and other optical fiber also, what is the potential to maximize capacity what we have, but double the capacity or enhance our capacity, and how much time will it take, and what kind of CapEx is required for that? And current CapEx, which you announced, what is the breakup of that? The current CapEx that I announced includes doubling the solar capacity. Okay. We are cognizant of the potential there, and we are going to double the line there. [audio distortion] that would be helpful for us, not just on the fiber side, but also on the power cable side, both for ourselves as well as for the JV. We are engaging with all those customers. The gestation time for these orders is pretty long, so you need to [audio distortion] the resources there before the order book starts. I think both the JV and us have a certain amount of capacity to cater to the data center needs and power cables. As I mentioned earlier on, when I was talking about the JV, we are seriously looking at expanding some of the capacities there also, so [audio distortion]. Okay. What is our potential or capability to go further backward where communication optic fiber cables are concerned, from where we are at preform? We are at preform. The next stage, if I have to go back, then I have to make silicon tetrachloride or germanium tetrachloride, w hich I think is, at this point in time, which is moot. I think we are stopping here for the time being. Okay. Sorry, sir, I could not hear you. What you said? No, I said that going beyond preform means that we will have to produce the silica. At this point in time, that is not in our plans at this point in time, yeah. Thank you for answering all my questions. Sure. Thank you. We take the next question from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please go ahead. Hi, sir. Thank you for the opportunity again. Just to confirm two things, sir. One is, you mentioned that the revenue potential from the expanded line can be around INR 750 crore. I think, right now, based on [crosstalk]. I meant including the existing stuff, the overall capacity. After we expand, then the capacity could be, the potential could be around INR 750 crore. Correct. That is for 8 million km, i s that correct? Right. Okay. How will the benefit of preform show up, sir? Will it show up as lower cost of production or how will that show up? Okay. One of the earlier questions also was, are we going to earmark a certain capacity to sell preforms outside? That is a possibility. It depends on what the market conditions are at any point in time. It's a flexibility that we will have. If I am short on cable orders or on fiber orders, then I will sell the preform. It gives us flexibility. I think overall the intention is to use the preform to convert it into fiber, which again, to convert it into cable and then sell it, which means o ur ability to participate in tenders where pricing sometimes becomes aggressive is available to us. Depending on situations like today where the fiber prices are extremely high, we don't have to sell the preform. We can convert it into fiber and take that profitability into the books. It is not a static one-time chart that I will have. It will be dynamic as the market demands. Got it, sir. Just a related question I have, sir. Here, when you mentioned that if we use it internally, versus previously we would have been buying from outside, what would the margin benefit be there from this? I don't have the exact numbers in front of me. Typically, once your production line stabilizes, you should be able to get it better than market. Whether I'm able to get it better than market at 5% or 10%, that would depend on how quickly I'm able to stabilize operations. That's about as much as I can say at this point in time. I don't want to stick my neck to a single figure. No, sir. I was expecting only a range. I am not trying to get a very specific number. That's what I'm saying, sir. Depending on how quickly we are able to stabilize the operations, I think we should be better than market by anywhere between 5% and 10%, because the preform seller is also making some money. Right. Got it, sir. Thank you, sir. Congrats on good set of numbers. Thank you. Thank you. We take the next question from the line of Miraj Shah from Sameeksha Capital. Please go ahead. Thank you for the opportunity. Sir, if you could just repeat the CapEx figures that you mentioned. Is it INR 200 crore or INR 300 crore? That's my first question. Secondly, if you could also let me know what is your guidance for the coming years in terms of revenue and margins. Lastly, my final question is that, if you could, this quarter we have seen our operating expenses as a percentage of sales come down, and w hen I look at the past 12 quarters, we are in one of the sweetest spots. We are currently at employee expenses as a percentage of sales and other expenses as a percentage of sales. Both are lowest in the past 12 quarters. Do we expect them to continue in this range or do we expect it to revert back to normalcy? Okay. Let me answer your questions one by one. Your first question was on the CapEx. I said capacity enhancement is about INR 200 crore. Additionally, the plan of the expansion on the optic fiber, optic fiber cable side, which we had announced two years ago and which is ongoing, there is a balance of about INR 100 crore to be spent. Like I said, the expansion to 8 million km of fiber will get over in July or August. All that will cost another INR 100 crore, so t otally, INR 300 crore, out of which INR 200 crore is completely new, which is for capacity enhancements. Is that clear? Yeah. Clear, sir. Okay. Your second part was on guidance. I actually do not give out any guidance. Especially in a situation like today, where you do not know whether the war is ending tomorrow, because you keep hearing that today it's ending. No, that it's not ending. Tomorrow, I have an agreement. No, I don't have an agreement. It is a very volatile situation, so I don't think I should be predicting anything. All we do is, internally, we have targets that we are working towards, and that is subject to certain constraints not being there or certain level of constraints not being there. At this point in time, I would not like to make any, to talk about any guidance numbers. There was a third point that you wanted. What was that? Our other expenses and employee costs as a percentage of sales. I think on an annual basis, it should be similar. In between quarters, you might see differences, but overall, at an annual level, we should be similar to what we have today. To what we did in FY 2026? Yeah, yeah. Perfect. Great. Thank you and all the best for the future, sir. Thank you. Thank you. We take the next question from the line of [Pratik Shrivasta] from [Nivesh Wisdom]. Please go ahead. Yeah. Thank you for giving me this opportunity, sir. First of all, congratulations on your promotion. Thank you. Yeah, sir, my question, I'm sorry, again, on the OFC side of things. Sir, if I see it from the first half of overall FY 2025 and overall FY 2026, I see the revenue from our communication cables staying the same, around INR 500 crore. Correct. I understand that sir, that you are saying that in the first half of FY 2026, prices were depressed. They only started recovering towards the second half. Can you give, in terms of volume, what was the volume growth between FY 2025 and FY 2026? About 7%. About 7%? Okay. Yeah. What are we targeting, sir, moving into the next year in terms of volume growth? Again, we made our budgets two months ago. At that point in time, the expectation around what is happening in the Middle East was that it should settle soon. It's been three months since that act started, and no two days are different. You go back and forth, back and forth, back and forth. There is no clarity as yet, which means quite a bit of the supply chain is impacted. Then you heard someone ask a question about germanium. Again, the supplies have to come either from China or from Europe, and b oth have put serious restrictions on exports from their side because they themselves have extremely high demand, and the fact that it can be used for defense purposes is, I guess, worrying most people. To be able to predict which way things will move at this point in time is kind of difficult, and I think I would like to avoid making that prediction. Is this problem, sir, faced by the entire industry, or is it just with Finolex? No, it is faced by many people in the industry. Anybody that is producing preform would face it. Anybody that is buying preform and drawing the preform would also face it because glass is not available for any kind of money. There are very few people who are able to get glass from outside, and only those that have signed on long-term contracts, where, again, the price is going crazy. It is a problem that is being faced today. Now, how it will pan out in three months, I hope it turns out for the better, but at this point in time, I'm not able to say. Yes, sir. That we can understand. My last question, sir, on the order book on this side of things, can you throw some light on the order book we have? The order book, like I said, there is one major contract which will come up for renewal in, I think, end of June. I don't see why we should not be able to renew it because we've been their suppliers for the last eight years. Product-wise, they are very happy with us, and quality-wise, they are very happy with us. I don't see why that should not repeat. Beyond that, and that takes up about slightly more than half of the capacity. The balance is sold to other customers. In terms of volume, I don't see why we should not do something similar or better than last year. The size of the order book, sir? I don't have that number in front of me, but I am quite comfortable with saying that it should be better than last year. Okay. Got it. Thank you, sir. Thank you. Ladies and gentlemen, we take that as the last question and conclude the question-and-answer session. I now hand the conference over to the management for their closing comments. Thank you. Thank you f or all your good wishes, and thanks for participating in today's meeting. Thank you. Thank you. On behalf of Finolex Cables Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.