Ladies and gentlemen, good day and welcome to HFCL Limited Q1 FY 2022 earnings conference call hosted by Prabhudas Lilladher Private Limited. 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 to an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saumil Bhatia from Prabhudas Lilladher Private Limited. Thank you, and over to you now. Thank you, Aisha. Good afternoon, everyone, and a warm welcome to you all for the HFCL Limited first quarter FY 2022 results conference call. My name is Saumil Bhatia, and I'm from Prabhudas Lilladher. At the outset, I would like to thank the management for giving us the opportunity to host this call. Before we begin, I would like to mention a short cautionary statement. Some of the statements made in today's conference call may be forward-looking in nature. Such forward-looking statements are subject to the risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and a financial overview of the quarter under review. Now, I would like to introduce you to the management participating in today's earnings call. We have with us Mr. Mahendra Nahata, Promoter and Managing Director. Mr. V.R. Jain, Chief Financial Officer. Mr. Manoj Baid, Company Secretary. Mr. Amit Agarwal, Head Investor Relations. I will now hand over the call to Mr. Mahendra Nahata for his opening remarks. Thank you. Thanks, Saumil. Thanks a lot for your introduction. Good afternoon, ladies and gentlemen. Thanks to all of you for joining HFCL's earnings call for the first quarter of financial year 2022. The quarter one of financial year 2022 results, press release, and investor presentation are all available on the website of the company and on the stock exchanges. First of all, I hope you and your loved ones are healthy and looking forward for better days ahead since vaccination drive has intensified, and also with the beginning of relaxation of lockdown restrictions in many parts of the world. The pandemic had brought the entire country in severe difficulty and had forced governments and companies to re-look at the traditional ways of doing business. I am humbled to inform you that HFCL has withstood the test of time with sustained business operations, for which I am grateful to all our stakeholders, especially to our employees, for veering the situation and managing to keep the operations going without any disruptions. Our actions have not only helped in ensuring smooth business operations, but has also led to the steady performance reported this quarter despite COVID-19 restrictions. Friends, as you all know, India is the second-largest telecom market globally. Telecom is also the backbone of a digital economy and digitally connected India. Initiatives taken by Government of India, such as Production Linked Incentive scheme, Augurs very well to boost the indigenous telecom businesses. This will help our country a long way in making the country a global hub for telecom innovation and telecom manufacturing. The scheme has been introduced at the most appropriate time, when not only the domestic industry is geared up for starting manufacturing operations at increased pace within India, but also large manufacturing giants from across the world are increasing their presence in India. HFCL, through its wholly owned subsidiary, HFCL Technologies Limited, has also submitted its application under PLI scheme. Coming to our growth drivers. Friends, the Department of Telecommunications has allotted additional spectrum for 4G wireless services to telecom operators in recently concluded auction. This will benefit HFCL, as growth in optical fiber deployment would be critical to further improve the quality of telecom services and support the surging mobile internet demand as well as have potential to bring substantial social and economic benefits to consumers, businesses, and State Governments. Currently, India has a fiber-based network spanning across 28 lakh km as against the target set up by National Broadband Mission to deploy as much as 50 lakh km of optical fiber by 2024. Union Cabinet has recently approved BharatNet to be implemented on public-private partnership model. The tenders for the project are to be floated very soon. This network is projected to have demand of 12 lakh km of fiber optic cable, comprising of both overhead and underground cables. This massive demand of fiber optic cable, coupled with the demand of associated transport and access equipment like Wi-Fi and optical access equipment, presents tremendous business opportunity for the company both in equipment and project segment. Secondly, Union Cabinet approving 5 MHz 4G spectrum for Indian Railways is a great opportunity for us. With estimated investment of INR 25,000 crores. The project entails to provide secure voice, video, as well as data communication services for operational, safety, and security applications of National Transporters Network. A 4G Long-Term Evolution technology specific to railways, which is called 4G LTE-R, R means railways, will be used for modernizing signaling and for ensuring train protection, safety, and while also maintaining constant communication between loco pilots and guards. This presents tremendous opportunity opening for us from this modernization campaign of the Indian Railways. As you all know, trial spectrum for 5G has already been allotted to telecom operators. Auction for commercial use of 5G spectrum is expected to happen in the beginning of 2022. Rollout of 5G networks will result in massive increase in demand of optical fiber cable, related radio access network, and other required equipment. This again presents an excellent market opportunities for the company. Your company will be present in large number of equipment and services segment required for 4G network. To name a few, as you all know, we are one of the largest capacity of manufacturing optical fiber cables in the country, which will see huge upsurge in demand when 5G networks are implemented. Secondly, we have started development of 5G Radio Access Networks, both for microcells and small cells, which will be required in very large numbers in the 5G network. We are in process of starting development of transport network equipment like routers, central gateways, and switches, which are also required for 5G networks in a large quantity. In short, 5G network implementation presents a very attractive and large opportunity for your company, both in domestic and international markets. As I have been maintaining over the previous earning calls, it is imperative for HFCL to keep pace with capacity and capability build-up ahead of these opportunities. Having made significant strides towards advancement of technological and R&D capabilities, we have gone ahead with ramping up of our manufacturing capacities across our optical fiber and cable businesses. We are on course to increase our capacities across optical fiber, optical fiber cable, and FTTH cable by 25%, 22%, and 20% respectively. These capacities are coming up at our Hyderabad, Goa, and Chennai plants. Estimated commissioning dates range from Q2 to Q4 of financial year 2022 for various products. The Hyderabad facility expansions shall be manufacturing new types of cables including micro duct, micro module, advanced ribbon cable, aerial cable, armored and unarmored cable, amongst others. Furthering our quest of technological leadership, we did inaugurate our new R&D center at Bengaluru during this quarter. With a view to accelerate development of new technologies and next-gen products and solutions, this is our dedicated R&D center for 5G and Wi-Fi products. Riding high on success of first PM-WANI model village in Haryana, we are pleased to update you on our next project in Baidebettu in Karnataka. This demonstrate a strength of our indigenously developed Wi-Fi products, which are PM-WANI compliant. The project will connect the residents of this remote village to slew of digital services in affordable and accessible manner. We plan to implement such network in many more villages. We continue to enhance the quality of our order book with a desired tilt towards products and focus on bettering our margin and cash flows. As of June 30, 2021, our consolidated order book stood at INR 5,884 crores. New orders for fiber optic cables and equipment are being received regularly by your company. We have participated in tenders worth more than INR 6,000 crores, which are mostly for products, which will get finalized in due course. You will be happy that 75% of pledged promoter shares have already been released on 5th July 2021. We are fully focused to get the remaining 25% to release in next couple of weeks. Let me now brief you on key performance metrics for the quarter. Revenue for Q1 FY 2022 stood at INR 1,206.87 crores as compared to INR 699.76 crores in quarter one of financial year 2021, thus recording an year-on-year growth of 72.46%. EBITDA for the quarter stood at INR 191.54 crores as compared to INR 83 crores in quarter one of financial year 2021. In fact, EBITDA margin increased by 403 basis points and today stands at 15.88% for quarter one of financial year 2022. For Q1 for FY 2022, profit after tax rose to INR 90.69 crores as compared to INR 21.34 crores for quarter one of financial year 2021, recording a growth of 325.82%. PAT margin also improved by 442 basis points to 7.52% in quarter one of financial year 2022, as compared to 3.04% of quarter one of financial year 2021. Segment revenue for telecom products during the quarter stood at INR 375.40 crores as compared to INR 205.41 crores of quarter one of financial year 2021. We expect revenue from telecom products to continue their uptrend. Our other performance reflects sustained growth and strengthening of our value proposition that we have achieved over the last few years. Looking ahead, our constant focus on innovation, steady expansion of our product booking, margin focus shift of the product mix, alignment of our offerings with emerging and future market opportunities, deepening of our market engagement in export geographies, and then contribution from our under development capacities and pursuit of new products and opportunities by our recently constituted dedicated 5G division shall keep fueling our journey to our sustained growth in revenue and profitability both. The order and inquiries flow from domestic and also overseas markets remain healthy. I am confident that we have done our homework well and laid a strong foundation for an exciting future. We're focusing on achieving the targets we have set for the next few years and are confident to keep that growth momentum continue in the years to come. Thank you very much once again for your keen participation in our growth journey and wish all of you good health. With this, I conclude my opening remarks and open the floor for question- and- answer session. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star 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 Ashish Dhawan from Ashish Dhawan and Company, p lease go ahead. Good evening, Mr. Nahata? Thank you for this opportunity. Hello? Yeah, please go ahead, Ashish. Yeah. My first question would be as to your order book. Can you elaborate a little bit on your order book, how much you've received this quarter? Current quarter order book, Ashish, orders keep on coming in bits and pieces for- Why is your order book amount reducing? Like in every presentation, it's coming down every quarter. You have to understand one thing. I have been telling in every earnings call that we are going to increase our revenue from products rather than EPC projects. Products orders are not received in a huge quantum as such. As an EPC project, you'll receive one order in a big quantum, and then no order will come for two years. Products orders you keep on receiving, which are to be delivered in next two or three months. If orders are to be delivered in two months or so, they are received in smaller quantities, not in a larger quantities. When you see the revenue shifting towards products from EPC, you will find that order book at one point of time is not very large compared to what you would have got from EPC. Overall order flow in the year and overall revenue will keep up its momentum of growth, as we have already projected that we are going to have a growth of 15%-20% in the current financial year. That is what we expect, that our growth will be 15%-20% in our revenue in the current financial year. EPC orders going down because of execution of the project does not mean that overall revenue will go down in any case. As I said earlier, we expect in the current year, 45% of our revenue will come from products. The product orders are not received, as I said, for a year or two. They are received for two months, three months, one month kind of a situation. Therefore, you would find order book reducing but overall revenue growing. You said that 15%-20% growth of revenue you're looking for this year. That's what we expect looking at order book. For the coming years? Looking at the market and looking at-. For the coming years. We expect 15%-20% growth. 15%-20% growth every year? I'm talking about the current year. Sir, a little forward-looking statement for three to four years, if you have. I cannot give forward-looking statement, Ashish. Looking at the market situation, the way the market is growing, 5G, FTTH, BharatNet, I expect this growth momentum will continue. Not only India. As we are developing our own products and technologies like 5G, like Wi-Fi, like optical access network, like for example, transport network for 5G. These are our own IPRs, our own technologies. They have a huge market abroad also. Not only these technologies and products, we are exporting fiber optic cable also. All this put together, there's a huge market opportunity, not only domestically but internationally also. There's no reason for me to believe that this current growth momentum will be kept up in future also. Yes, sir. My last question would be, please can you throw some light on BSNL's current position, and are you again participating in BSNL tenders? Look, BSNL's current position has improved. Our receivables from BSNL have come down considerably. As far as participating in BSNL current 4G tenders are concerned, we applied for doing proof of concept. Now, first let the proof of concept be completed, let us qualify in that, then we will decide how to move ahead in that. Okay, sir. In this quarter, sir, investors always complain about mutual funds not buying shares of HFCL. This quarter, do you think there is mutual fund buying that has come about? Do you have any knowledge about that? I cannot comment on that, who will buy or who will not buy. It is for the mutual funds. Do you have any knowledge where some investors have come in or mutual funds have picked up stakes? Pardon me, I couldn't get your question. Are you aware of any mutual fund buying? Some mutual funds have bought, but I'm not remembering the names right now. Yes, some mutual funds have bought shares. Thank you, sir. Thank you. The next question is from the line of Saket Kapoor from Kapoor Company, p lease go ahead. Yes. Thank you for the opportunity. That's a steady set of numbers, sir. As you have articulated to us investors that the mix is going to change and it will be more skewed towards the product side. How is that half going to change? Is the first quarter numbers reflecting the same? Correct me on that, sir, because when we see the Turnkey contracts and services, there I think show the revenue has declined on a quarter-over-quarter basis, but the margins have improved. On the purchase of stock in trade, there we see a figure in the vicinity of INR 400 crore to INR 500 crore. How should one look at this revenue from operations part when we have a large sum in the stock and trade portion? If you could explain this mix and the way forward, when are we going to see that change of 45/55 happening? As far as products are concerned, this quarter, we had a 31% revenue from the products. If you compare with financial year 2021, it was 27%. This quarter has increased to 31%. Overall, as I said, our endeavor is to take it to 45% on a yearly basis. Why would it increase? Number one, our capacity for fiber optic cable is getting expanded, as I have informed you in my presentation earlier also. That revenue coming up will show increase in product revenue, number one. Number two, as the new products which are being designed are getting completed, they will start giving us revenue. Number three, Wi-Fi products, which have already been designed, they will have increased revenue in the remaining of the year. This last quarter also, that could have had higher revenue. But for, I don't know whether you people are aware of semiconductor shortage worldwide. Worldwide, there has been a huge shortage of semiconductor, which is the chips. Because of that, production of all kind of telecom equipment has suffered all around the world. This is expected to ease down from the mid of the quarter two, and then you will find the Wi-Fi and microwave radio products, point to point and point to multipoint, which we have designed, will also show increased revenue. All this put together, as I said, there will be increased revenue from the products during the current financial year. Thank you. We would request the current participant to please come back in the question queue for any follow-up questions. The next question is from the line of Hardik Vyas from ET, p lease go ahead. Good afternoon sir? Good afternoon, Hardik. My first question was pertaining to the PPP that we are seeing. BharatNet project is likely to take off the phase two. Is it likely to take off anytime soon in the second half of the year? Look, BharatNet phase 2 has already been approved by the cabinet under PPP model, and we expect the tender to be floated very soon, maybe within a week. The target of the government is to finalize this in next two, three months time frame. Once it is finalized, it has to take up very fast because there would be set timelines given to the PPP players who come and get business out of this tender to implement the network in a defined time frame. As you would recall, the Prime Minister has already announced that in three years time frame, every village of the country would be connected over fiber optic cable. I expect this tender to be announced soon, to be decided soon, and to be implemented with a faster speed because there will be set guidelines for the parties which are working under PPP model. I expect not only early finalization, early implementation, but as I said during my presentation, huge demand opportunity is coming up for fiber optic cable and all kind of associated equipment. I am looking at BharatNet PPP tender as a huge business opportunity for the company as a supplier of not only fiber optic cable, but all kind of equipment which we are going to manufacture or we are manufacturing. For example, Wi-Fi equipment. Whole reason for this broadband optical connectivity to the villages is to give broadband connectivity to the villages, for which Wi-Fi would be required. Some cases, fiber to home would be required, for which we are preparing our equipment. Transport network would be router and all these things would be required, 40 GB router, 100 GB router, we are designing that. All put together, BharatNet presents a huge market opportunity to the company, and this opportunity would start fructifying from next calendar year, maybe quarter two of next calendar year or maybe little earlier also. Okay. sir, follow-up question on that is after the 4G options, are we also looking at private telcos giving us orders on the services front? Services front, we have been doing services for private operators in terms of optical fiber network being laid down by us. As I've told you many times, optical network for Jio in North India, including for mobile services and also for FTTH services, is being laid down by us. Not that we will see revenue. We are already having revenue from 4G service providers currently in form of laying their optical fiber network and FTTH network all across North India. Yeah. Okay. We are currently in services. We are not having any BharatNet contribution, which will grow only from next year, second quarter onwards. In the BharatNet phase 1, as you would recall, we have implemented Punjab network already. Yeah. Jharkhand network is getting implemented. Okay. In the current quarter, which is going on, we see that there will be some reasonable revenue coming up from the Jharkhand implementation schedule, which should be somewhere around INR 100 crore plus. Okay. Sir, last question on the product front. As compared to the last quarter, that is the fourth quarter of last year, what is the volume of products that we have sold? I'm asking this because of this being a COVID-hit quarter, so the product revenues were at par, but in volume terms, what is the difference that we have sold? Last quarter, our revenue had 28% mix of products. This quarter, we have 31%. In terms of volume, it is almost the same. This quarter, we had INR 375 crores. Last quarter, we had INR 388 crores. This quarter, as I said a little while earlier, could have been higher because of shortage of chipsets, which were to be imported from Qualcomm. From their committed supply, they expressed their inability to supply that quantity in the current quarter because of shortages of chipsets worldwide. Which we are expecting the supply to increase in the current quarter, and therefore the increase in the revenue. Okay, sir. More or less price increase that we have seen in the first quarter because the volume being sold has been more or less the same. Price increase, I couldn't follow you. Optic fiber prices have strengthened, and that is how. Yeah, that is on the fiber side. Optical fiber prices have definitely strengthened, and it continues to strengthen further. Yes, there it is more or less level now. Okay. Thank you so much, sir. I will be back in the queue. Thank you. All the best. Thank you. The next question is from the line of Abhishek Jain from Arihant Capital, p lease go ahead. Congratulations on a good set of numbers, sir. Thank you. Yeah. Thank you. Sir, can you throw some light on the margins? We are actually quite surprised positively by the margin performance. How you see the margins are going to remain in what terrain? Like what is the theme or what's your outlook on the margins, sir? Let me first tell you the philosophy of the company. Okay. Philosophy of the company is to go for more of the product revenue, less of the EPC revenue, the turnkey revenue. Reason being, one, when you sell products, it has involvement of less working capital. Number two, it has better margins also. Number three, you are able to sell worldwide because you are having IPR and your market segment increases. As we go for more of our product revenue, the overall philosophy that margin percentage should improve would be there, it would continue. In the current quarter, what you see as a margin increase is again because of product mix. In EPC contracts also, some products have a higher revenue, higher profitability, some have a little bit less than that. Quarter- to quarter, you would find some variation. Quarter- to- quarter, some variation would always be there. Every quarter cannot be same, or every quarter cannot have an increased trend or a decreasing trend. On overall basis, you will find margin percentages improving year-on-year basis. We cannot be categorical about quarter-to-quarter, because quarter-to-quarter there may be slight changes, but on year-to-year basis, there will be increase. Okay. Second question, sir. On the PLI side, are you applying for any update you want to do? Sir, we have already applied, as I said during my presentation, we have applied for our 100% owned subsidiary, Axess Cable Technologies Limited. We have already applied, and reason of framing this 100% our own subsidiary is that, as you would know, under the Income Tax Act, the tax slab comes down from 25% to 18%. If a company is formed after a particular date, which was April 2019. If a new company is formed and profit comes into that company, then the tax slab is 18%, than the current other slab of 25%, which we have incurred. Because of tax rate coming down by 7%, we have formed a wholly owned subsidiary under which we have applied for PLI scheme. Sir, last question. If you can throw some light on the new products which are being mentioned in the house, what kind of opportunity is there, like small cell for 5G, in-vehicle ground services, radar, EO products, software-defined radio. What kind of opportunity is there, sir? Look, all these products have a huge opportunity. I'll come one by one. First coming to this fiber optic cable, first of course, which is new product in a sense, the newer type of fiber optic cables we are now designing and going to produce, which includes newer type of ribbon cables, bonded cables, all kinds of cables, high-capacity cables. These are various new market opportunities where we have not been there. Like very high-count cable, fiber-count cable, which you require in data center. IB, intermittently bonded ribbon cable, which is required in European market. Micro cable, which is a lower diameter, which is again required in European and U.S. market. These are the new products we are coming up with, and these new products will, of course, have a huge demand opportunities coming up in future. New kinds of cables. Coming to other telecom products. One, for example, I would start with 5G. 5G macro cells and small cells. As the 5G networks come up, the demand of radio access network, which is the macro cell or small cells, will be in huge market, huge in numbers. Whether it is a mid-band of 3.5 GHz or whether it is a millimeter band of 28 GHz. It is also a huge market opportunity because these will be required in lakhs and lakhs of numbers in India and abroad. We are designing macro cell as well as small cell for this mid-band, this is 3.5 GHz band and 28 GHz band, which is a millimeter wave band. Demand is in lakhs and lakhs. It will reach in the millions all over the world. It's a huge market opportunity. Similarly, the transport network, which is routers or front- haul gateways for 5G networks and also the routers for BharatNet kind of networks will also be required in huge numbers. 10 Gb routers, 40 Gb routers, 100 Gb routers, which are also partly already designed by us, undergoing now some modification to suit to BharatNet requirement, are also required in huge market numbers, 5G networks as well as BharatNet networks. Wi-Fi. We have gone into Wi-Fi 6 already, which is a new generation of Wi-Fi, which is comparable to 5G. That is again, if a 5G traffic incoming and it has to be distributed to a subscriber, it needs that kind of a capacity as much as 5G. Wi-Fi 6 would cater to that demand. Backhaul radios. Again, high capacity backhaul radios would be required to do the backhaul for Wi-Fi 6 that we have already designed. Likewise, if you go on and on, these all products have a huge market opportunity domestically and internationally because of new kind of technologies, new kind of networks, new expansion of optical fibre networks, and FTTH networks happening in the world. Thank you, sir. Thank you, sir. I have two more questions. I'll come at the queue, sir. Sure. Thank you. The next question is from the line of Saral Seth from Indsec Securities, p lease go ahead. Hi, sir. Congratulations on good set of numbers. My first question pertains to what would have been the second wave impact on the revenue as well as bottom line? Look, as I said, there has been some impact, not like the first wave. Impact has been about, I would say INR 150 crores-INR 200 crores. Reasons are simple. Most of this impact came from different side of our business. Entry into cantonments were restricted to a very large number of cantonments. Entry was restricted because of COVID situation, and rightfully so. Army did not allow entering of outsiders in the cantonments for the fear of forces getting into the grip of COVID. As a result of that, about a couple of months, when this pandemic was surging in a huge number, as we have seen in the country, unfortunately, restriction was there in entry of our people in cantonments. As a result of that, some supply could not take place. Mostly services could not be rendered to get into the milestone of the projects which are required to be completed to us to bill for the services. We could not do that for a couple of months. That impacted, number one. Number two, the second impact, but a smaller one, was that our customers, the operators, were not able to execute large portion of their networks, optical fiber networks in the cities because of COVID restrictions. Construction was not allowed in the cities. As a result, demand for optical fiber cable came down a bit because customers were not able to install the network, so they were not able to lift our products. Though the orders were there, but revenue could not be achieved because the customers were not able to lift the products for their requirement because cities were not able to implement their networks. Some impact happened because of that. I would say something like INR 40 crore-INR 50 crore impact was there. INR 150 crore impact was there on account of services part of it. There would be, I would say there was about INR 200 crore impact. If I see the profits, I would say if you take the PBT margin of INR 10 crore or so, PBT margin could have been higher by about INR 20 crore or so if that revenue had been achieved. All right. Thank you, sir. My second question would pertain to, sir, with regards to PLI benefits. Would we be funding through internal accruals or would be requiring debt for the PLI benefits? Sir, this would be partially through internal accruals and partially through debt. Right, sir. Thank you. I'll fall back in queue. Thank you. The next question is from the line of Chetan Shah from Jeet Capital, p lease go ahead. Hello? Yeah, Chetan. Please go ahead. Yeah, hi. Sir, just two quick question from my side. One line in your opening remarks you are explaining about the ongoing CapEx and the timeline related to the CapEx, could you kindly share the CapEx for next two years, 3 years, how much we are spending current financial year, which is FY 2022, and how much FY 2023 and FY 2024? Following question to that is, once you're done with this CapEx, which is a capacity expansion, after that, how much you think we will be able to take our revenue to? I'm just trying to understand the growth of revenue mix. What is our asset turn possibility, non-EPC side of the business? If you can give some sense, that will be very helpful. Chetan, the current year's CapEx estimated to be about INR 210 crore, out of which INR 25 crore has already been incurred. Rest INR 185 crore is to be incurred. Out of this INR 185 crore, INR 145 crore is expected on enhancement of cable manufacturing facility, which I have described a little while ago, which is taken in Hyderabad, Chennai and Goa, all three places, including some backward integration and including expansion of fiber facility, fiber manufacturing facility also. Fiber, what we have a capacity of 8 million fiber km is being expanded to 10 million fiber km. Similar expansion in the capacities of cable expansion is going on. Some backward integration is also happening to reduce our cost and competitiveness in fiber optic cables, number one. Number two, balance INR 40 crores is going to be incurred on creation of manufacturing facility for defense products, for which a separate facility is required as per the regulations. Which we would be doing in Hyderabad. Land is almost allotted to us, maybe another next couple of weeks or maybe earlier than that. This manufacturing facility will come up in Hyderabad, which would cost us about INR 40 crores or so, around INR 40 crores. CapEx plan for manufacturing facility is INR 210 crores above, out of which INR 25 crores have already been incurred. Now, revenue, as I said, we are looking for a growth of about 15%-20% in the current financial year, wherein entire year would not be utilized for increased capacity to earn revenue. It's only the part of the year, because from quarter two onwards, this capacity expansion is happening. As a matter of fact, the first phase of capacity expansion in Hyderabad is getting commercial in next couple of days. In next couple of days, it is going to go commercial, first phase. Second phase, third phase will go commercial consequently. The full impact of this capacity expansion of cable as well as fiber is going to be seen in the next year. Current year, no, half or less even. In spite of that, we expect we'll see the revenue at 15%-20%. Now, in future, if I keep the capacity constant, what it is just now, still we've seen the revenue will see a growth of 15%-20%. This trajectory will be maintained with the growth in the revenue of cable and also the defence products. This trajectory will be maintained to 15%-20%. Coming to what would be the CapEx for next years two, three years. Chetan, we have still not planned. We are in the planning stage of that. We will come up back to you in the next earning presentation that what could be the CapEx for the year two and three. We are certainly working on that, planning that, looking at the market size, looking at the future potential of different products we have. Certainly, we would need some more capacity expansion to cater to the demands we are experiencing from our customers. Some more would be required. Right now, I would say, yes, we are looking at that. Next earning call we'll come back to you for that. Current year, INR 210 crores, of which INR 25 crores is already incurred. Sir, one follow-up question on the same. Sir, while answering the question to a couple of previous investors who conversed, you talked about shifting your revenue mix to product side to about 45% in a year to come. Could you just help us understand how does this mix change in revenue will help to improve our working capital cycle? What I've been understood, looking at our past financials, that due to more tilt towards EPC side of the business, it not only reduces our margin, but also strain on our working capital. Does this mix change once we have a almost close to 50/50 EPC/product mix in revenue? Just one more question added to that. If I see our FY 2021 balance sheet, our receivable numbers are pretty high. It may be due to end of the year number. If you can just tell us that how much does that improve in the first quarter, and what is the trajectory? You explained about BSNL receivable is improving. How about other receivables too? Look, first of all, coming to the second question first. You're right. Last financial year, last 100 days, we had 45% of revenue. As a result of that, you could see that the numbers of receivables are higher. That is number one. Number two, product and EPC. Let me tell you the differentiation. Product, when you supply a product, you start getting paid depending upon the terms and conditions, 60 days, 30 days, 90 days. In EPC contracts, you get paid on the basis of milestones. That having achieved the particular milestone, you get paid. Irrespective of the fact that you could have supplied earlier, but milestone has not been completed, you don't get paid. What has happened in this defense EPC contracts, though their profitability is reasonable, there's no problem with the profitability. The problem is the payments. What happened last year and this year? Last year pandemic, three months, no work. Absolutely zero work in those EPC contracts, and as a result, you could see the revenue was just INR 700 crores. Complete lockdown, nobody was allowed to enter into cantonments, and particularly you would recollect at that point of time, there was a flashpoint with China in our northern borders and our majority of work was in the northern borders. As a result of that, we could not do any work. As a result, you could see the revenue was only INR 700 crores. Correct. Milestones could not get completed. Number of cases, what has also happened, and which issue I am taking up constantly with Indian Army as well as BSNL. A network gets completed when all the aspects of the network, all the issues involved in the network are completed. What happens? Certain part of work is the responsibility of the customer, BSNL or Army. What happens? For example, construction of buildings where network equipments are to be installed. Construction of fiber, on which our equipment will be stored and connected. If buildings are not there, if fiber is not there, irrespective of the fact that I have done my work, installation, commissioning of equipment, milestone would not be completed because the entire network has not been tested. How can the network be tested in absence of fiber or in absence of a particular building where equipment has not been installed because the building is not there? If there is a link of 1,200 km, let me just give an example, which has 20 substation in between, and one substation has not been constructed by the army in between where I have to install my equipment and I could not install, the entire link is not complete. In a chain, if one link is not there, chain is broken. It's just that kind of a situation. I have done 90% of my work, but milestone is not getting completed without any fault of mine. We have taken this issue up very vehemently with customer, Army and BSNL both, and told them, please complete this as soon as possible so that my billing is completed and my payment is received. We have taken it up very strongly. I had meeting with BSNL, combined meeting with BSNL, Army, Navy, Air Force, all of them, where I have insisted on this point and I'm having now regular meetings with them so that the milestones are achieved and payments are received. You're right. EPC contract, because of these issues, see higher receivables because supply has been made, but services have not been done and the billing is not complete for services. As a result, the supply payment which has been billed is also pending. That is the problem in EPC contracts. Apart from that, working capital investment, you have to really work in a completely different manner in terms of working all over the country to implement such contracts. What we are trying to shift the revenue more toward products. Does not mean that we will be stopping EPC contracts. We will still be going for EPC contracts, but on a very selective basis where we believe that payments could be realized in a much easier manner. The payment cycle is better or where we see customers' ability to complete their side of the work quicker. We will be going for EPC contract, but revenue mix, we would like to shift towards products which have higher profitability because of your own technology, higher catch-up area for customers because technology is having been your own, you are able to sell it worldwide. This is the reason why we are shifting our revenue mix, which you see lower working capital cycle and higher profitability. Sorry for the long answer, but I thought you must understand the whole thing. Thank you for such a detailed explanation. Sir, just one last question? In your opening remarks you were explaining about the new R&D facility at Hyderabad. No, Bangalore. Sorry. My apologies, sir. At Bangalore, and you also spoke about the focus on developing a new product opportunity. Just wanted to get a sense that what kind of annual budget or outlay are we looking at? Is there any ballpark number you have in your mind that we spend INR 10 crore, INR 20 crore a year or maybe more? Current year, our R&D expense is going to be INR 150 crores, out of which INR 15 crores has already been spent in the Q1. Q2, Q3, Q4 would see around INR 135 crores, which would be spent on R&D. Some part in the fixed assets, buying test equipment and all that would be capitalized. All salary and all are being written off as normal expense. Thank you. We would request the current participant to please come back in the question queue for any follow-up questions, as we have several participants waiting for their turn. We would request all the participants to please limit your questions to keep the participant. The next question is from the line of Neerav Dalal from Mayb ank, p lease go ahead. Thank you for the opportunity. Couple of questions. one, we disclosed that product revenues are about 31%. What would be the breakup in terms of optical and non-optical of this? Of the 45% that we are targeting, what would be the split? Okay. In optical, non-optical in the current, this last quarter of the INR 375 crores, optical was about INR 290 crores, INR 295 crores, and about INR 80 crores have been from non-optical, which is Wi-Fi and all that. I may be wrong by INR 1 or INR 2 crores, but it is more or less. That is fine. Yeah. This non-optical could have been higher, as I explained. Okay For the shortage of chipsets, which happened in the last quarter, which is expected to improve from. Second half. August, September of the current quarter. This could have been higher, but unfortunately could not happen because of worldwide chip shortages. Yes, the revenue itself is INR 295 and it occurs. When we say the 45% would go up to 45%, would the mix be broadly the same for the year? No, the mix would change. I think numbers would go higher for non-optical. Non-optical. Optical will also go higher because new capacities are being added. Generally, I would say it would be 70% for optical products and 30% for non-optical products in the current year. Got that. One last question on the PLI. I don't know whether you disclosed any CapEx plan for the PLI scheme, just wanted your comments on that. No, we have given it for approval, not really disclosed the CapEx plans. Okay. As the approvals come on in our next earnings call, as I said, we will come up with the exact numbers and come up with the CapEx plan. Great, sir. Thank you. Thank you. Thank you, Neerav. Thank you. The next question is on the line of Ankit Babel from Subhkam Ventures, p lease go ahead. Good evening, sir? Sir, a couple of questions. You did mention that the revenue from product business would be around 45% in FY 2022, and your focus is also to continue to increase the share of product business in total revenue. Sir, I just wanted to know, where do you see the share of product revenue to your total revenue in the next two years, three years, say by FY 2024? As I said, this year it would be coming to about 45%. With the increase in defense products revenue like software-defined radios, fuses and all that, this is expected to increase further. In my opinion, it should reach to about 60% in next two years-three years. At that level of contribution from product business, that is 60%, where do you see the operating margins of the company? Well, they would increase significantly. I won't make a forward-looking statement that how much percentage that would be. Generally, as you see, the margins in this product business is higher than the EPC margins. Profit before tax, I would say PBT percentage in product business would generally be 13%-15%, generally, depending on product- to- product. It would generally be 13%-15%. Okay. Sir, what is the current debt on the books, and where do you see your debt by the end of, say, this year and next year? Current debt in the books, we have about working capital facilities and term loan and all put together is about INR 900 crores, little less than INR 900 crores. Where do you see it by the end of this year and next year, considering your CapEx plans and working capital improvement and everything, and internal accruals? For FY 2022, we expect it to become INR 800 crores. Okay, next year also we can expect a reduction in that? Next year there would be some repayment and there would be maybe, as I said, we have not framed up the plan for next year's requirement. If we have CapEx, it may go up by a little bit again, so it may be around the same level or it will be a little bit down. Okay. My last question is, sir, you did mention about this INR 200 crores of CapEx in this year. This is only for the existing business. If you get any approval in the PLI scheme, so any CapEx there would be additional CapEx, right? That would be additional, of course. We do not know when the approval will come and when we'll be required to spend. That spend is also to be done in three years. It's not required to be done in one year. It is 20% and then 40% and then 40%. It's something like that in three years time frame. Once the approval comes, then we'll frame up the strategy, how much of that 100% is going to be in the first year, whether 20% and then 40%, 40%. Once we know that approval is coming, then we will be able to frame up the plan. Right now, large number of people have applied. We have to wait for the approval to come. Your internal assessment, I mean, what kind of investments you are ready to make in that PLI scheme if you get the approval? I mean, is it like a very big like INR 500 crores, INR 1,000 crores of investment, or what is the quantum you people are looking at in three years? As per the scheme, minimum investment required is INR 100 crores. Minimum. Okay. How much we will make, we'll come to know once the approval comes. The minimum required is INR 100 crores. Whatever we do, if the approval comes, it's going to be more than INR 100 crores. Once the approval comes, which I expect in the current quarter, we'll definitely come back to you in the next earnings call. Okay. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Rishabh Makhija, an Individual investor. Please go ahead. Hi, sir. Thank you for the opportunity. Most of my questions have been answered. Just one question, sir. Can you just give some color on how the optical fiber and optical fiber cable prices have been shaping up, and give a sort of a comparison with respect to how they were last year at this time, quarter one of FY 2021? Look, optical fiber prices, if I take, they have firmed up worldwide because of the increased demand of fiber optic cable and consequently fiber all over the world. I would say that earlier when we started it this year or a little before that, it was about INR 250, INR 255. It was going around INR 250 or so. INR 250. Before that it was about INR 280. Starting of the year it was INR 280. It came down to INR 250 or so. It has again gone around INR 300 at this point of time. Around INR 300. Sometimes little bit more, little bit less, but around INR 300 per fiber km. Understood, sir. About optical fiber cable? Optical fiber cable, it's a different price for different kind of fiber cable. Depends upon what kind of fiber it is, 12 fiber, 48 fiber, whatever. Generally I would say they have gone up by roughly, earlier what it was about INR 850 per fiber km of cable, it has gone around INR 900 or so. Okay. This would be different in different count of cable. I cannot generalize that, but it's more or less. No, that's very helpful. Thank you, sir. That's it from my side. Good luck. Thank you. Thank you. The next question is from the line of Sneha Jain from SKS Capital. Please go ahead. Hello, sir? Thank you for the opportunity. Thank you, Sneha. Thank you for the question. Please, go ahead. Hello? Yeah, please go ahead, Sneha. Yes, sir. I was a bit late to the call, so I wanted to ask, what is the order book currently? What is the pipeline you're expecting? Sir, one more specific question would be, there's a big order that Mazagon got recently of INR 45,000 crores in the submarine. We have previously supplied, so do we see an opportunity there? Sneha, Mazagon Dock order is for submarine, which is not part of our anywhere near our product range. We don't see any opportunity in the submarine kind of products. Yes, we are in discussion with Mazagon Dock and we have signed an MOU also. Let me tell you, since it was not a major issue, we did not make any public information on that. Yes, Mazagon Dock, and we have signed a MOU from our subsidiary company, HTL Limited, for development of wire harnesses for the ships. That MOU has already been executed, and our people are in process of development of such wire harnesses. These wire harnesses are made out of either fiber optic cable, fiber or copper. We have set up a facility in Chennai for manufacture of wire harnesses. Very low CapEx, expected high revenues. This is going to happen for wire harnesses for telecom sector, which we are already doing. We are producing wire harnesses for telecom sector for connecting radio head to this base- band of a base station, and these are made of fiber. Which are already being produced by us. What we have also done, increased our production range, going for wire harnesses for automobiles, for ships, and submarines will also come later, but for aerospace also. Mazagon Dock MOU has been signed for designing wire harnesses for ships, which would be required in a very large quantity. Because ships are very large. We expect revenue to start flowing from wire harness business in the current year. The very low CapEx, we have already executed this, and we expect about INR 50 crore plus revenue in the current year, which is just starting year. Very starting year for just few months of working, couple of months or three months, four months of working. We see this revenue would go up in the next few months. Reason one, as you know, the automobile industry is turning towards electrical. Most of the automobiles are going to be electrical in years to come. A huge amount of wire harnesses will be required because this will electrical working and you need wire harnesses in that. Similarly, we are working with aerospace industry. We have already signed and had a discussion for development of wire harnesses for, I cannot name the projects right now because this is a confidential, for which is being developed for Indian forces. Our HTL is already doing that work, designing wire harnesses for that application. Coming to that, these wire harnesses and this business is going to show a significant growth in future to come. Thank you. That was very helpful. Not Mazagon Dock INR 45,000 crore. That's a separate project. Yes, with Mazagon Dock, we have another MOU. Yeah. That was helpful anyway. Sir, what is the pipeline that you're looking for? For this kind of order? For the entire, like HFCL. Sneha, right now we have an order book of about INR 5,800 some crores. About INR 5,900 crores. Which will keep on increasing. What is happening, as I said earlier, since you joined late, we keep on receiving orders for products on a very regular basis. They don't come in a big order like INR 1,000 crores. They come INR 50 crores, INR 80 crores, INR 70 crores, INR 100 crores. Such kind of orders are received regularly and supply is made regularly. That is number one. We have participated in tenders for more than INR 6,000 crores already, and which are to be decided one after another. We will receive orders from that also. A large number of opportunities are coming up now. BharatNet opportunity. There are opportunities railways, there are opportunities coming up in various other segments where we are going to participate. Orders will keep on flowing, and with those orders and this market, what is there now with the increased market, I expect our revenues will also keep on growing with a steady state at the same pace which it is going now. Yeah. Thank you, sir. That was very helpful. Thank you, Sneha. Thank you. The next question is from the line of Mangesh Kulkarni from Almondz Global, p lease go ahead. Sir, thank you for taking my question. Thank you, Mr. Kulkarni, for coming up and asking questions. Please go ahead. Yeah. I just wanted to know about the plans for releasing the remaining pledged shares. Remaining pledged shares. In fact, this whole 100% could have been released instead of 75%. One bank said 75%. All banks said 100%, one particular bank said 75%. We have to go pari-passu with every bank. Unfortunately, we didn't have the time to go back to the bank and stop every pledge to be released till the time entire 100% happens. We said, okay, let's release 75%. 25% to that particular bank, we have gone back again, and we hope that within a month or so, or less than that, we will get that release of 25% also. I had promised to all my investor shareholders that pledge of the shares should be released. 75%, which is a very large quantity, has already been released. Mind you, even this 25%, there is no loan taken by promoter or the company against shares. These are all collateral against the working capital loan or term loan which had been taken by the company. Right, sir. Thank you very much. Thank you. The next question is from the line of Sapna Kamath from Narotam Family Office, p lease go ahead. Yeah. Good evening sir? Yeah, good evening. I just have one question. Your presentation was very insightful, most of the questions are answered. This turnkey contracts during the quarter, we have seen a very sharp margin jump. Was this a milestone achievement that led to this EBITDA margin improvement for that particular segment? Sapna, it is more of a revenue mix. As I said earlier, some products have a higher profitability, some have a lower profitability. If you have delivered more of software products in a particular month or particular quarter, they have a higher profitability than a hardware product. The revenue mix keeps on changing, and consequently, there is always some variation in the margins also. Every year, every quarter, they cannot remain constant. One thing is sure, with our stress on more products, higher profitable business, margins will keep on growing at a steady rate. Quarter- to- quarter, it can be different. Sure, sir. I understood about your product division, but I was little curious about this Turnkey contracts, because there, the jump is almost 400 basis points, from 10% to 14% or 14.5%. That's why I was a little curious as to what has led to- It's a product mix. Sure. Okay. Nothing else than that. Okay, thanks. Thanks a lot. Thank you. The next question is from the line of Ravi Mehta, an Individual investor, p lease go ahead. Sir, I want to ask you about the defense order. When do you expect some sizable orders from your defense electronic fuses or software-defined radios? Software-defined radios are in development right now. Any order from them will take time. It will take time. Electronic fuses tender has already been participated. Samples have arrived for offering to the army. We expect army to come back and asking for samples anytime soon. I think it is being decided at the highest level. Once the samples are asked for and they're tested, then the order would come. Any sizable, big order is expected only after few months. Yes, some other products like night vision devices, which we have already participated in the tenders. We expect those to be rolled out sooner because the testing is currently going on. Tests are going on in different army facilities, we expect those orders to be received a little sooner than the fuses. In this year, we can expect night vision order? Yes, this year we can expect. Yes. Okay. Some small orders have already come, but the larger orders we can expect this year. Absolutely. Okay, sir. Thank you, sir. Thank you. The next question is from the line of Deepak Mehta, an Individual investor, p lease go ahead. Thanks for the opportunity. Good evening sir? Good evening, Deepak. Yeah. I want to congratulate, first of all, management and you for walking the talk. What you have been talking, I think we have been executing very well. Our company is on the interaction point, and we can say that we have already started the HFCL 2.0, and it will go long way. My question is around the 5G, sir. For 5G, what kind of products we will be offering? I think we have optical cable which will be used in 5G. Second, we have 5G cell points. If you can throw some light on the product and service offering, what will be the role of R&D offices and how we are attracting the right talent for right execution, sir, on 5G point? A lot for your phrase, walking the talk. I really appreciate that. I said that product mix will change, it is changing. I said that margin increase will happen, it is happening. I said from the pledge of the shares would be released, it has happened. It's walking the talk, it's really a right word. Thanks for saying this phrase. I thank you very much, number one. Number two, for 5G, as I said earlier, optical fiber cable is one of them. What we have done in the company, tried to create a range of products which would be required for 5G business, 5G network. Number one, optical fiber cable, which will be required in large quantity. Number two, cell site radios, which is Radio Access Network, what you call it, which is fitted in the towers which you see in different places, which includes macro cell, which is a large cell, which will go to a small cell, both indoor and outdoor. Those will be required in huge numbers, as I explained earlier. The routers and the cell site routers, which we call front haul gateway. These are some of the products which we are designing, which are required in large number in 5G networks. This is on end of the list. There are many more products required, these products would require in huge quantity, and this is what we are working on. This is what we will be offering to our customer. That is number one in terms of products. Second, we are also going to do, which I did not talk earlier in my presentation, but let me tell you now. We are also going to develop a system integration division totally devoted to 5G. Now, let me tell you. Just 1 second. Sorry, something stuck in the throat. No problem. Again, why this system integration division now? As you would have read in many newspapers or the magazines or internet, 5G network is going towards Open RAN, open radio access network. Earlier, it used to be same supplier supplying core and the access network. This has been disaggregated. Networks are disaggregated. Radio access network can be from one supplier, the core could be from another supplier, transmission could be from third supplier. If you have multiple supplier in a network, then you need a good system integrator to integrate the entire network and make it work as a singular network. That capability we are developing now because we believe in an Open RAN environment of 5G. The very large amount of services will be required for system integration. Let me tell you, I am already in touch with number of multinationals also, who want that kind of system integration services from us, in India and abroad. We would be in touch with operator also in the coming time to offer this SI services. This SI services right now, I'm not projecting any number, but I have very high expectation from this division, which will start operational by the Q3 or the beginning of Q4 of this year. Though we have not projected any number in our AOP from this division, not in this year, definitely we do not know what it will be in the next year. I have good expectation from my SI division to get reasonable revenue and profitability from India and abroad, both particularly dedicated to system integration business of 5G network for the reason which I explained to you, open networks, where there are multiple suppliers. You need a good system integrator. Thank you so much, Sir. My last question is around the product side. We have seen that it's around 50% of our total revenue. I'm not sure if you can address me what is the total addressable market for our products? Addressable market in thousands of crores, I can tell you. Thousands of crores. Addressable market worldwide would be $ billions. That's not relevant for us, that we are not looking for that kind of a market worldwide or that. India also, it's thousands of crores. Okay. I believe that we will be competitive in terms of globally- Yes In terms of price and product quality. Absolutely. I'll give you example. This cable business, we are competitive. We are exporting, we are selling in India, most competitively. Wi-Fi, for example, we have designed. We are selling in good quantity in India. Good quantity and competing with multinationals, no problem. Sir, what will be the role of Qualcomm partnership in the 5G business? Qualcomm partnership or technology in shape of chips and all that all means the basic chipset, the basic semiconductors comes from Qualcomm, and the entire product is designed around that. In some cases, it could be some other suppliers also, not necessarily Qualcomm. Yes, Qualcomm is being the main developer in the wireless technology. Chipsets and the semiconductors come from Qualcomm, around which you build up the entire box or the equipment, where Qualcomm gives you a help and support. Okay. Thank you so much, sir. I wish you best of luck and best of health. Thank you. I also wish all of you best of health. Thank you. The next question is from the line of Ankit Pande from Quant Money Managers, -p lease go ahead. Hi. Thank you for taking my question. Many congratulations on a good quarter. Sir, just taking a step back, if you could just tell me what is the underlying growth rate that we are experiencing right now within the last. I could not follow your question. Voice was not very clear. Can you say it again? Yeah. I was just saying that if you could just talk about the underlying growth rate that we are experiencing in the business right now. Of course, comparables for us are a bit difficult to decipher. But let's say in the month of June and through this month of July, what is the underlying growth rate are we experiencing, like 10%, 15% or higher growth rates? What is the growth rate in the business right now? Look, overall year-over-year, this is as I said, 15%-20% growth rate would be there. Quarter-over-quarter, it could vary. Reason being, for example, it's a rainy season. Some part of the country would have monsoon rains and execution of networks may suffer. Growth may not be as much as you would be able to see in quarter three or quarter four. Quarter four normally sees higher revenue because at that point of time, the working conditions are much better and work happens all around the place. Quarter-over-quarter, they may be somewhat less or more, but on overall basis, you would find, this year we expect to get a growth of 15%-20% in revenue. Thanks for that. Also, sir, what is the receivables position right now? Do we expect to significantly improve upon the situation by the end of the financial year, let's say? I can tell you. Receivable right now remains at about INR 3,053 crores as against what we had INR 3,056 crores at the end of March. Practically, you can say whatever was the revenue of this current quarter has been realized. Not the same revenue, but last quarter or before that quarter, it has been realized. Current working capital cycle, what we have is right now is about 90 days. As I said, the milestones need to be completed for realizing revenue. Now we are in that phase, trying to complete the milestones as soon as possible in the defense contracts. I cannot name the commands and the course for security reason, but I can tell you, we have set up our targets 15th hour, 30th hour, September 30, October 30, up to December, to complete various parts of the network for the defense forces and realize our revenue out of that. I think from quarter three onwards, you would see significant amount of receivables coming down because of these milestones getting completed and money being received. Significant amount of receivables will start coming down from Q3. That is much appreciated. Thank you. Could you just repeat the receivables number exactly now versus March? It's almost the same. INR 3,053 crores now, which was INR 3,056 crores in March. Oh, makes sense. Whatever is the revenue of the current year has been realized. Not the same deliveries, but last quarter or before that quarter. Realization is about INR 1,200 crores in the current quarter, you can say that. Yeah. If you could just talk a little bit about the receivables situation in standalone BSNL account, and also the traction that we're receiving in exports, and whether we can meet the targets that we have stated before in exports for the financial year. Yeah, I can talk about that. Current receivables from BSNL is around INR 50 crores. To be precise, it is INR 53 crores. Which was earlier about INR 160 crores, it has come down to INR 50 crores. That is one. This INR 53 crores, I think this quarter we should be able to realize most of it. Thank you, sir. Coming to export target, current year, we have set up an export target of INR 300 crore for us, out of which I believe we have already done export of about INR 66 crores. INR 66 crores has already been exported. We are well on way of achieving our target of this INR 300 crores from the current financial year because there is a good demand of fiber optic cable as well as other products which we are producing like, Wi-Fi radios and accessories and including railway communication network which we are executing in Dhaka and Mauritius. Current year's target of INR 300 crores, we are well set to achieve that target. I don't find any problem in that. Next year, financial year 2023, we have set up a target of INR 500 crores. I also believe we should be able to achieve without much of a problem because the expansion for the fiber optic cable which we are doing in Hyderabad, large part of it is dedicated towards export products. We should be able to increase our exports out of that. Number two, our new products coming in shape, which we're designing. That should also be able to export. INR 500 crore, I also believe we should be in a good position to achieve in the FY 2023, but the current year's INR 300 crore as against about INR 125 crore or so, which we did last year. No, I think we did INR 200 crore last year. We should be able to achieve INR 300 crore without much of a problem in the current year. Thank you so much. Very positive. Thank you so much, and all the best, sir. Thank you. That was the last question. I would now like to hand the conference over to Mr. Saumil Bhatia for closing comments. Thank you, sir. Thank you for giving us this opportunity. Thanks to you. Thank you. Thank you very much, Saumil, Mr. Bhatia. Thank you to all participants for spending your time and being with us in this earning call. Let us all meet again in the next earning call after the Q2, wish you all very best for health and well-being. Please take care, get vaccinated. That is most important so that even if any third wave is there, none of us are impacted. Thank you very much. Thank you. Thank you. Thank you. On behalf of Prabhudas Lilladher Private Limited, that concludes this conference. Thank you everyone for joining us, y ou may now disconnect your lines.