Ladies and gentlemen, good day and welcome to the earnings conference call of Kaynes Technology India Limited, hosted by Emkay Global Financial Services 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 an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag Jain from Emkay Global Financial Services Limited. Thank you, and over to you, sir. Thank you, Alaric. Good morning, everyone. On behalf of Emkay Global, I would like to welcome you all to the Q4 and FY 2025 earnings conference call of Kaynes Technology India Limited. We have the management today being represented by Ms. Savita Ramesh, Chairperson of the Board, Mr. Ramesh Kannan, Managing Director, Mr. Jairam Sampath, Whole-time Director and Chief Financial Officer, Mr. Rajesh Sharma, Chief Executive Officer. At this point, I will hand over the floor to the management for their opening remarks, post which we will open the floor for Q&A. Thank you, and over to you, sir. Good morning. I am Ramesh Kannan, Managing Director, Kaynes Technology India Limited. Good morning, everyone, once again. On behalf of Kaynes Technology team, I would like to welcome everyone to the earnings call for quarter four, FY 2025. I have, along with me, Mrs. Savita Ramesh, our Chairperson of the Board; Mr. Jairam Sampath, our Whole-time Director and CFO; Mr. Rajesh Sharma, our CEO; and Mr. Sumit Verma, our Investor Relations; and MUFG Capital, our investor relations partners. I am pleased to inform you that we have been able to achieve a consolidated revenue of INR 27,218 million for FY 2025, which represents a strong growth of 51% year-on-year. The consolidated EBITDA of INR 4,107 million for FY 2025 and EBITDA margin, excluding other income for the year FY 2025, was at 15.1%, and PAT margin was at 10.8%, which were higher by 101 basis points and 62 basis points, respectively, on year-on-year basis. Coming to our performance for the quarter-end Q4, FY 2025, our total revenue was INR 9,845 million, which signifies a growth of 54% year-on-year basis. Our Q4, FY 2025 operational EBITDA was INR 1,679 million at 76% year-on-year, corresponding to the quarter of the last year. Similarly, the PAT was INR 1,162 million at 43% year-on-year basis. We are projecting a significant acceleration in revenue growth in the coming years, as mentioned in our previous quarter earnings call, positioning us to be a leader in the industry growth. The same can be reaffirmed from our consistent order book growth from INR 41,152 million in quarter four, FY 2024, to INR 65,969 million in quarter four, FY 2025. We expect to sustain this profitable growth and continue to work towards improving efficiencies. As we move forward, we expect all-round growth in all business verticals, especially with newer clients in EV and aerospace verticals. This reflects our commitment to a business portfolio with robust growth, profitability, and diversification. Our construction for OSAT plant in Sanand, Gujarat, has already started, along with construction for HDI PCB plant in Chennai. Both the plant construction is in full swing, and we are in line with meeting the deadlines of completing the construction by year-end. Our majority stake in Sensonic, a global AI-based rail network safety solution company, positioned us to capitalize on the electronics and technology upgrade in the railway sector. Kavach development program is on schedule, with POC completion expected by mid-year. With our recent acquisition of August Electronics in Canada, we have strengthened our North American footprint, added manufacturing capability in Canada, and large high-margin customers. Following this acquisition, we are well-positioned to present a compelling opportunity to these customers more comprehensively, positioning the Canada-India alliance as a strategic alternative to China-based sourcing. We are continuously looking to add new capability and geographies through a mix of organic and inorganic strategies. With this, I would like to sincerely thank each and every one of our excellent investors for their encouragement so far in our journey and expect continuing support in the future too. Thank you all once again, and we look forward to exciting times ahead. I will now hand over the call to Mr. Jairam Sampath to take you through our financial performance. Thank you once again. Jairam, over to you. Yeah, thank you, Ramesh Ji. This is Jairam Sampath here, Whole-time Director and CFO of Kaynes Technology. Thank you all for joining today's call as we start a new quarter. I'm quite excited to share Kaynes Technology's financial results for the period ending FY 2025 and share with you the highlights of the same. For the quarter ended March 2025, our consolidated total revenues from operations were INR 9,845 million, representing a 54% year-on-year growth. For the 12 month ended March 2025, consolidated total revenues from operations were INR 27,218 million, representing a 51% year-on-year growth. The consolidated EBITDA at the end of Q4, FY 2025, was INR 1,679 million, showing a 76% year-on-year increase, while for the full year, FY 2025, it was INR 4,107 million, which was up 62%. The EBITDA margin for Q4 FY 2025 quarter and FY 2025 stood at 17.1% and 15.1%, respectively. This trajectory of expansion in margins is expected to continue during the coming years too. Our consolidated profit after tax for the quarter was INR 1,162 million, up by 43% year-on-year. The PAT margin at the end of the quarter stood at 11.8%. Our consolidated ROE, consequently, our ROE and ROCE adjusted for unutilized portions of proceeds of Q4, FY 2025, is at 19.4% and 19.2%, respectively. Our order book surged from INR 41,152 million at the end of Q4 of FY 2024 to INR 65,969 million at the end of Q4, FY 2025. On a sequential basis, the order book grew from INR 60,471 million in Q3, FY 2025, to INR 65,969 million in Q4, FY 2025. The average monthly order inflow has grown handsomely from INR 4,285 million per month in Q3, FY 2025, to INR 5,114 million per month in Q4, FY 2025. The net working capital days for the year 2025 were at 87 days, while the inventory days improved from 97 to 91 days. We are committed to improve the net working capital this year with a long-term plan to work with our suppliers to have lower inventory days. We are working with different long-term strategies like supplier-managed inventory, receivables recourse-free factoring, and better production planning and scheduling, and we hope to improve the working capital days significantly during FY 2026. The construction of our OSAT project in Sanand, Gujarat, and our HDI PCB project in Chennai is in full swing, and we are projecting for the construction to get completed by the end of the 2025 calendar year so that this year we will have some revenues coming in from both the new investments. We are also signing up clients for significant capacity utilization in both of these subsidiary entities. Also, our acquisition of companies like Sensonic and our new subsidiary Kaynes SpaceTech are a few steps for our company to lead the sector into newer technologies from electronics space. We will continue to identify opportunities which can keep Kaynes evolve, which can help Kaynes evolve as a global player in the electronics sector. Our key strategies include growth in new geography through inorganic acquisition, strengthening our ODM capability, and deepening our technology footprint in manufacturing. During the year FY 2025, we have taken significant steps to further our strategy implementation. We once again place on record our deep appreciation for the support of our customers, shareholders, analysts, and governmental agencies for providing us with a good growth platform. We would like to thank Emkay for hosting this earnings call and would like to thank all the participants for committing their valuable time for attending this call. Now I hand over the mic to the company so that we can ask questions. Thank you. Thank you, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Participants are also requested to restrict themselves to one question. If you have any more questions, kindly rejoin the queue. The first question comes from the line of Vipraw Srivastava from PhillipCapital. Please go ahead. Hi, sir. I'm audible, right? Yes. Yes. Sir, firstly, on the cash flow from operations side, the one line item which is other non-current assets has gone up, and that's why CFO has become negative. What's that line item dealing with specifically, and how do you plan to tackle it in next year? Yeah. So if you notice, our working capital, net working capital, also has gone up from. I mean, it has not come down as much as we expected despite reduction in inventory. So this is a business that we acquired in our subsidiary in the industrial area, and they had orders with pre-agreed contract conditions which we have to honor. So the total quantum of this is not very significant. Future orders in that subsidiary are all going on a full payment basis. This particular thing has got delayed payment, so the way we have found a way for funding this through annuity funding through some of the banks, which we'll implement in the coming quarter. So going forward, the effect of this will slowly reduce, and over time, maybe by the end of the year, this will not be any significant number. So these are the other current assets? Yeah. Why other current assets? Because the payment term itself is deferred for this particular order. So over time, when we start getting newer orders, which will have a clear payment term, which are within, let's say, 90-120 days, so in which case this quantum will keep reducing as the percentage of total. Right, sir. And sir, a follow-up on this. So this payment we have made, we have made to DISCOMs or to whom we have made these payments? No, no. These are all AMISP payments only. The terms were different. Once we took over this company, we have now shifted. Right. Yeah. We don't anymore work as AMISP, but as a device manufacturer. So this transition has taken a little bit of time, and we have to honor all the orders that are already there. So I think from that perspective, we're stopped. Right, sir, so secondly, sir, since March mid-year. I'm sorry to interrupt, Vipraw. That was your question. If you have any more, please rejoin the queue. Sure. Thank you. The next question comes from the line of Praveen Sahay from PL Capital. Please go ahead. Yeah. Thank you for the opportunity, and many congratulations on a good set of numbers. My question is related to the order book. So the order book has increased to around INR 66 million. If you can give some indication from which segment the order flow intake were on the higher side, and secondly, that's the sustainability of the high margin which you reported this year or this quarter, how that will be with the new order flow? No, no. Absolutely. So this INR 6,500 crore order of orders, which is staying in the order book, the increment has come in aerospace, industrial, and automotive. And these are margin accretive orders. Unable to give you exact details, but suffice it to say that the order book today contains orders which are a higher margin than what we are delivering right now. The only thing to note is that this order book will get executed over a one-and-a-half-year time frame, so not all of the orders will get executed in the coming FY 2026. So the order in flow, to tell you honestly, is very, very healthy, and most of the orders that come in are at a margin accretive kind of situation. Okay. So margin, whatever you delivered, is going to continue or improve from here, the type of orders or decisions? Yes. Yes. We have already made our operating plan for the coming year, and we hopefully will grow better than last year in terms of growth rate, and we also computed the kind of margins that are likely to be there, so we want to have also margin expansion. Okay. Thank you, sir. I have more questions that will come in the queue. Sure. Thank you. Thank you. The next question comes from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead. Hi, sir. I'm Vipraw Srivastava. Just wanted to check two things. On the PCB front, we are going for the expansion on our own. Will we also participate in the component PLI for this? And the second thing, if you could sort of highlight the financials of August Electronics, what you've acquired, as well as your venture into space, what is the thought process of getting into payloads and all of those aspects? Yeah. Yeah. Sure. So as far as the high-density PCB is concerned, we have applied into the PLI 2.0 as it were, and we are likely to get the PLI there. But we depend more on the capital subsidy. And as far as PCB board business is concerned, our profitability does not depend on the PLI, but on the kind of quality of customers that we have. And we already have at least five customers who are in serious talks, and one of them has given RFQ, which we are responding to. And a significant portion of our capacity once it is formed will be already booked by the time the plant comes on stream. So as far as August Electronics is concerned, sir, without giving you an actual breakdown, the margins are better than in terms of EBITDA, are better than our consolidated margins. They have a business which is quite large, say about CAD 57 million or so in Canadian dollars is the kind of business, and they are likely to grow also very well. They are one of the premier vendors in Canada, and Canada itself has got a huge potential to grow this particular business. We expect that the growth will be margin accretive and also significant, and it will strengthen our presence in the North American geography. As you know, a lot of, let's say, encouragement is given by local governments there in North America to do production in North America. This is adding to our ability to get orders either through going to China because of these kinds of connections. These set of customers that we will be serving are completely new, and there are no common customers at this point in time. Just on the space venture, is that it? Just on the Kaynes SpaceTech? Yeah. Kaynes Space subsidiary, this is we've been a strategic partner for ISRO for more than a decade, and we have participated in most of their prestigious missions and all that. So there are two parts to this. One is our ambition to really be part of the technology revolution that ISRO is bringing in. As you know, even in recent defense technologies and other things, ISRO is at the forefront. So we wanted to strengthen the partnership. Second thing is space by itself offers huge opportunities in terms of satellites, which can be micro, mini, or regular satellites, and even launch vehicles and so on, and components thereof. We've also set up a significant capacity and a subsidiary called Kaynes Mechatronics. So our objective is to make sure that the space tech will become a premier vendor for supply of all the parts, and also we probably can also attempt to launch satellites into the space. But we restrict ourselves to high-tech manufacturing, which is our area of interest. And we think that this will also grow at a high rate, and these are, of course, a reasonably good margin compared to the current consolidated EBITDA. Sure, sir. Those are my questions. Thank you. Thank you. The next question comes from the line of Siddhartha Bera from Nomura. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity and congrats on a good set of numbers. Sir, first question is on, given the very strong traction in the order book, would it be possible to highlight, given this traction, what is the sort of numbers you are targeting now for the next two years for the EMS business as of now, and what segment will be the key driver? Will it be, again, smart meters, and what will be the contribution, if you can share? Yeah. Yeah. Sid, thank you for your question. So in terms of growth numbers for our consolidated numbers this year, we can safely say that minimum 60% growth will be there in operating revenues. W e also expect about 50 basis points expansion in our EBITDA numbers too. Now, the basic reason for this is that the orders that are coming in are in areas such as industrial, which is, of course, smart meters, then aerospace, and then also areas like automotive. Especially, we now have orders from some of the top-tier one companies, and a significant amount of export is also likely to happen. So over the next two years, you will see quality of our portfolio increasing, and the bulk of the order book that today has an EBITDA profile likely to beat our consolidated EBITDA, what we have done this year. So hopefully, the trend will continue. As you know, over the last quarter to this quarter, there has been a significant increment in the monthly run rate of orders being booked. So we think this trend will continue too. There are many orders which are there in the pipeline. So answering your question, I think we can expect strong growth in business over the next several years. Got it, sir. And second, sir, on the CapEx side, we are doing close to INR 950 crore last year. So what is the CapEx you're looking at for this year, and within this, what will be for the EMS business, and what will be for the OSAT and PCB segments, if you can just break it down? Sure. So for EMS business, I think we will do whatever maintenance CapEx that's required, and there are a few lines which have to be completed, etc. We already have all the capacity. It's just a matter of making them work more efficiently so that we can have better asset turns, and we are aiming to do that. As far as the bulk of the CapEx concern is going into new projects, which are Semicon and HDI PCB. And so without putting a specific number, I think we will try and finish the first phase in both the areas. It will be a significant amount of CapEx. We will probably share that separately. And so this year's plan, the CapEx will make sure that we start doing business in HDI PCB in the last quarter as well as the Semicon in the last quarter of this year. So that's how we are thinking. And then, of course, FY 2027, we will complete all the CapEx for Semicon and PC board. So just to remind you, the total CapEx for Semicon is like INR 3,400 crores, and total CapEx for PC board is about INR 1,400 crores. So between this year and next year, and maybe some little spillover will be there, we will complete this CapEx. And then so that by FY 2028, we can have significant capacity utilization in the newer businesses. As far as EMS is concerned, I think it's almost now on a self-sufficient mode, and whatever we generate from the operations, that is sufficient. This year, we will, of course, figure out more sales out of the assets already established. And for the coming year, we will probably in the second half add some little listing. And then, of course, there are subsidiaries that have been added and so on. So I think in terms of capacities, I think we are somewhat ahead of the demand so that we will not have trouble in execution. Got it, sir. Thanks, sir. I'll come back in the queue. Thank you. The next question comes from the line of Nitin Arora from Axis Mutual Fund. Please go ahead. Hi, sir. Sir, just one question on the recent acquisition what you did. Can you throw some light on how scalable this business is? What are you thinking about the potential of revenue and profitability from this business? And also, if you can talk about any further acquisitions what you are articulating in this space. Nitin, thank you. Thank you for your question. As far as the August Electronics acquisition is concerned, this is one of the premier vendors and quite healthy and so on. EBITDA numbers are always, in terms of percentage, better than our consolidated as of now. We have seen their plans for the next five years, and they are likely to grow at about 15%-20% on their own. With us taking over and putting our bite into it, we might get a spillover business from Chinese business transfer to India because most of the customers who do business with August Electronics, they have significant purchases from China too. Already, some of the customers have looked at our facility and so on, and they are quite convinced that we can be a good supplier for them. So broadly, upward of 20%-25% growth, you can expect 20% growth, at least you can expect in the geography there itself, and another 5%-10% spillover effect to our business in India. And these are all customers qualitatively pretty good margin and large customers, global players. They belong to areas like petrochemical, energy, medical, instrumentation, and those areas where we don't have huge customer base. So they are going to be both in terms of quality of business, revenue activity, as well as the margin activity in their approach. So this is what we expect. Yeah. What was the second question, Nitin? So any further acquisitions you are looking at? And given this acquisition, you think you'll be able to fund internally? And for the further acquisitions, how are you thinking about it? And one comment on the OSAT, if you can also talk about what are the developments there? Sure. So as far as first acquisitions are concerned, it's our stated position that we have a three-pronged strategy. One is geography expansion with local base of production, and then, of course, we take whatever collateral benefits into India wherever those customers have some manufacturing going in China too. So this is like China plus one will become India plus one kind of strategy, and we will certainly acquire. Financing, we don't have any tension right now. We also announced our approval from our shareholders for the QIP. So some of those proceeds can be also used. So we are looking at what we can, let's say, synergize and chew and digest. So that's the important part of our business. So whichever gets straightaway added synergies to our business is what we are taking. Some of these acquisitions will be short gestation period, and they'll start yielding revenue and profits immediately. As far as the OSAT business is concerned, I think the building construction is going on. We've got signed all the agreements with our collaborators, etc. Very shortly, the agreement with the government also gets signed. Of course, approvals have been also in place. So we will have probably the first chip coming out sometime, if I'm not mistaken, in the second quarter or at least early third quarter. Third quarter, I think we can fairly expect the first production to happen. Then fourth quarter, we'll have reasonable production happening. We have a couple of customers who've committed capacities too. When we exit this year, we will have a significant amount of capacity committed by some reasonably good customers. Great, sir. Thank you very much and all the best, sir. Thanks. Thank you. The next question comes from the line of Aditya Bhartia from Investec India. Please go ahead. Hi, good morning, sir. So my first question is on CapEx, wherein we have spent almost INR 8 billion in the standalone entity itself, which compares to roughly INR 1.3 billion last year. So just wanted to understand what was the nature of this investment, where exactly was it spent, and how much incrementally would have gotten spent on OSAT and HDI PCB, given that out of the QIP proceeds, it appears that quite a bit is remaining unutilized. Correct. So fundamentally, for OSAT and PCB, we basically bought the land, and then some initial building work was done, land development, etc. So that's the extent of money that went into that. Of course, we have committed some more money in terms of ordering, etc., of these things. As far as the existing business is concerned, we have completed our Chamarajanagar facility, which is a fairly global facility wherein we have got a couple of exclusive zones for some large customers. So they had made some specifications because they are looking at us for a billion-dollar-plus kind of businesses over the next five to 10 years' time frame. So we have completed that. So bulk of it has gone into basically developing customer-exclusive EMS facilities. So they are fungible facilities, but they will be a little higher grade because most of these customers deal with aerospace and some other high-tech sensor electronics and so on and so forth. And we also probably this year will further augment this by adding one more very large global client, which we have acquired, which we are in the process of acquiring as a result of our acquisition in Canada too. So yeah. So these are all going into EMS business, traditional EMS business with high-value, high-tech, high-margin products. That does mean that the initial capacity that we had planned at Chamarajanagar, for which we had raised around INR 1.5 billion at the time of the IPO, the current shape is much, much larger than what was initially envisaged, and does that also mean that incrementally, our asset turns are going to be lower, given that if we look historically, we used to have a fairly small gross fixed asset base, and asset turns used to be extremely high? Yeah. Yeah. So as far as the original IPO money was concerned, part of it went into clearing debt and so on and so forth. Not all of it added to the gross block, actually. So answering your question, yeah, earlier, we were very efficiently using because we lacked the capacity, let's say, capital to actually deal with large clients. So the way in which large client business works is that you discuss with them and then make the facility work, and then they come and audit the facility, and then they satisfy themselves that they can build all their global purchases. They can build it here. And all of those are all targeted investments. Since now that we do have a slightly easier access to funds right now, so that's why we are able to cater to larger clients, larger clients with more high-tech, more long-standing businesses, and better margins too. So in the interim, maybe a couple of years, the asset turns will appear to be lower, but then that's cost of business, right? As you see, the order book is increasing. So this order book increases primarily due to the fact that we are now getting recognized by a lot of large guys who give us long-term business. In fact, the order book that we have published is only five years' order book, and we do have a significant amount of orders beyond five years, but we don't normally publish beyond five years. So beyond five years, also, we have confirmed orders from customers. So obviously, when customers start taking a long-term view of you as a supplier, then we also need to reciprocate by building capacities and then those specific things that they require. Suffice it to say that in EMS, most of the infrastructure, 90%, is fungible, but they still need to see it available for them because when they ship significant capacities from places like China, et cetera, these are all, let's say, hundreds of millions and billions of dollars of contracts. So obviously, they would like to be sure that we do have not only the intent and not only the ability, but actually the competence and the capacity on ground. So that's when they will ship to them. Understood. That's helpful. Just one last question, if I may. When you had acquired the smart metering business, you had indicated that that should be contributing roughly 10% of revenues. And from that context, the increase in other current assets that we have seen appears to be fairly large. So how's the accounting being done? Is it in respect of some of the revenues that have been recorded in the past as well that we have assets that are recognized on the books? Yeah. So basically, the other current assets are those receivables which are termed to be received later. They are not overdue, which we have agreed for later. So when we acquired this subsidiary company, we had two parts of business. One was the metering business as a device business, and then there was something like AMISP's business wherein the installation, etc. And also one more part of the business, which we have not talked about yet, but then that is going to add margins to us, is software because this company has a significant amount of software solution in both meter data management as well as head-end software, wherein there is no cost associated. So we made a reckoning thinking that, yes, when we acquire an order, we have to service those orders, and those orders had certain clauses of money being collected over extended periods. But future orders, we are making sure that we become more device-centric, and our orders will be like 90-120 days kind of collection period. So we don't think that this will balloon up significantly. And for whatever amount of other current assets that you're talking about, we are also trying to fund annuity funding. We're looking at if we can do it without recourse by factoring it on the customer because our contracts are clear and clean. So we will let you know maybe second quarter or so. We are working with a few banks and NBFC, so let's see when we will get there. So this is not going to cause us any distress, but this was necessary part of the activity. Understood, sir. That's helpful. Thank you so much. Thank you. Thank you. The next question comes from the line of Keyur Pandya from ICICI Prudential Life Insurance. Please go ahead. Thank you. So two questions first on their PCB and OSAT business. You talked about OSAT first in Q3. When should we see for both of these business, say, more commercial kind of revenue flowing through? If not, say, full utilization, but say, 25%-30% kind of utilization, when should we see that? So what are the timelines? Just want to understand for both of these business. And second question on the core business, FY 2025 gross block, ballpark should be around INR 650 crore. Now, in that backdrop, there's around INR 700 crore-plus kind of CapEx in the standalone entity. So is it at a more higher cost, or it is going to increase your capacity by 2x? Just want to understand basically in the core business, what would be our gross block, say, by end of or mid of FY 2026, and what kind of revenue it can generate? Any change in asset turn, et cetera? Yeah. So as far as FY 2026 is concerned, even if we did not add any further. The first question I will take. The second question you take. Immediately, please. Yeah. Yeah. The first question, let me answer, Keyur. What we are planning to do is get all the validation done, the real building start from next financial year. Why? Because for validation itself, they'll take around three, two, four months. Our plan is to do the trials in the pilot lot building by July, August. From there, one after the other, one semiconductor at a time we wanted to do. And then this year, we are planning to take around six models. Towards the end of the year, there is a likely chance of some building happen, but otherwise, the next year will be a full year for building. When it comes to PCB, same problem. These boards, after doing our trials and everything, this factory should be ready somewhere in November, December for full production. And then we need to do all the trials. So it will take two to three months. So basically, the last portion of the building we can get only next year. Considering all the timing required for validation, we have scheduled it like that. Thank you. Yeah. Thank you. Regarding the gross block, I think this year we will improve our asset turns because most of the facilities like the Chamarajanagar one will all start working at much higher capacity. So even if we did not add any more capacity, this year's numbers, we can very easily do FY 2026 numbers. By actioning this, we will have some spare capacity. As you know, earlier also we have said, the moment we reach a 70% kind of capacity utilization, we need time to go for newer capacities because global players would like to see free capacity for any business that they transfer from other places. So this is good news only. A little bit of lower asset turn is good news in this business because that means that we have committed customers who are likely to give us business. And that's when we keep it. Earlier, we could run it chockablock, almost six or seven times of assets we should do. So maybe three, four years' time frame, we will get to that number, a little higher number, let's say, five or six times the asset turn. Till that time, we'll do some minor capacity additions every year. So in this business, about 7% of turnover of EMS typically can give us the kind of number to grow at about 50%. Maybe so FY 2027 onward, 7% of turnover. So whatever that number is, let's say, four, three, or whatever. So about INR 300 crore-INR 400 crore of investments we do during FY 2026 second half and first half of FY 2027. So that will grow at about 60% the EMS business and so on. Okay. Just one question if I can interrupt? I'm sorry to interrupt, Keyur. Those were two questions. I would request you to join the queue back. Thank you. Sure. Thank you. The next question comes from the line of Akshay from ASK Investment. Please go ahead. Hello. Please go ahead, Akshay, with your question. Sir, what led to our shortfall of our previously stated revised guidance of INR 2,800 crore? Are we confident of achieving INR 4,500 crore in the current fiscal year? Also, our other expenses in this quarter should sharply jump from INR 31 crore to INR 101 crore. It was INR 52 crore in the previous quarter. What led to the sharp jump in other expenses? Yeah. So I'll answer your first question first. So fundamentally, I think in our Q3 call, also we had explained that there was a delay in execution of our smart meter business because we had a large number of orders, and this is a new facility in Hyderabad. So now we have overcome that, and we are quite confident. What we are saying is 60% minimum. So 60% minimum growth will take us to about 4,350 or so. And if everything goes well, we'll certainly exceed that number with a much expanded, at least 50 basis point expansion in our data numbers. So that's the kind of planning that we have for FY 2026. Now, what was the second question that you asked? You asked about other expenses, if I not misheard. Yeah. So some of the other expenses could be due to reclassification of certain consumables and so on and so forth. So maybe over the last four quarters, some reclassification of consumables, which normally should be part of bill of material, was not like it was shown separately and so on and so forth. More detailed one, I can probably ask somebody from finance to share with you because more to do with reclassification than to increase in cost. Yeah. Of course, employee costs have gone higher because, like we said, we are currently building up the capacity, preparing for some two or three global engagements in the FY 2026. So in terms of other costs, there are no major cost increases. It is just some reclassification. Sure, sir. And sir, recently, government ordered some fast-track deployment of new satellites after the India-Pakistan conflict. So does it provide some opportunity for us because the timeline was three to four years? But now they have reduced to just one year. Yes, sir, so we have, of course, formed a space tech venture, and we'll keenly look at in what way we can contribute towards national security and capabilities in that space, and we have got some very good scientists who worked earlier in government, ISRO, et cetera, to spearhead this thing, so keep yourself tuned to our announcements. I think we are working very hard to make sure that we participate in the next generation of technology development for the country. Sure, sir. Thank you so much, and all the best for the upcoming fiscal. Yeah. Yeah. Thank you, Akshay. Thank you. A reminder to all participants, please restrict yourselves to one question. If you have any more questions, kindly rejoin the queue. The next question comes from the line of Deepak from Sundaram Mutual Funds. Please go ahead. Yeah. I'm audible? Yes. Yes, sir. Yeah. So Jairam sir, my question is regarding your margins. So what would be our core EMS margin, let's say, for Q4 FY 2025 and for the whole year FY 2025? Because if my understanding is correct, there would be some employee expense and other expenses which will be related to OSAT and HDI PCB business as we are expanding that too. So we just wanted to understand what is our core EBITDA margin for FY 2025 and Q4 for base PCBA business. Our core margins, sir, are reflected in our cost only. See, the expenses which are incurred in development of the project, et cetera, pre-op expenses, they get capitalized, actually. Okay? So major amount of course, they have corporate-level expenses. Supposing we do have some people joining in the corporate level, so that increases there. And like I said, I think in answer to some of the questions earlier, we do build capacities ahead of time. So constantly, we'll have a quarter worth of additional capacity before the work starts because global players don't want to risk giving orders to a company which does not have ready capacity because for them, INR 100 million, INR 200 million, INR 300 million kind of dollar kind of businesses, they don't want to take any risk with the new suppliers. So to that extent, this year, FY 2026, we are saying that core business will yield another 50 basis points, so about 15.6% EBITDA. So maybe the seed number is somewhere there, maybe another 40 basis points-50 basis points over time. But I'm afraid that we'll keep building capacities and incurring slightly higher expenditure for the future growth of business. So you can take around 14.5%-16% as the kind of number in the core business. And of course, the subsidiaries, et cetera, which we acquire, yeah, they may add. We are making sure that we take an augmentative kind of addition and not any business which is lower than our existing EBITDA. So they may also pull the vector upwards in three, four years' time frame, and the quantum of business is significant. Okay. So 15%-16% is for. Deepak, t hat was your question. I would request you to rejoin the queue. Thank you. The next question comes from the line of Sumant Kumar from Motilal Oswal Financial Services Limited. Please go ahead. Yeah. Hi, sir. So assuming current scenario, global scenario, can you talk on export opportunities? How is the inquiries currently? Yeah. So if you I think we have talked about this in earlier calls too. So fundamentally, the aerospace business and some of the automotive, etc., now we've got global clients. So they don't not only take requirements for Indian requirements but also requirements for production outside of that. So we think that so let's say we have now three businesses fired up. One is EMS. The other one is OSAT and PCB. So OSAT and PCB, a significant amount of business will be in export. Maybe from FY 2027, you'll start seeing its impact. FY 2026 may primarily these three sectors like automotive, aerospace, and some portion of industrial would see some increase in exports. So maybe out of the total of, let's say, 4,350, maybe you can expect at least 15%, roughly 5,000, I guess, at this point in time of exports. And the other thing is we must remember that we are also doing a geography strategy. So they are not considered export but as business done within that country. So for instance, the Canadian entity will be shipping in Canada itself. So we can take that as an export, in which case over time, four, five years' time frame, 20%-25% minimum of our business will come from outside, let's say, clients. So some will be exported, some will be done there itself in the geography where we are. So we have this three-point strategy of acquisition and so on. So basically, export orientation will increase. Some of it will look like exports. Others will look like a subsidiary building. So, current scenario, the tariff war, we are getting some inquiries and more engagement with the client. I'm asking. Yes, sir. No, no. Sumant, actually, what we are getting is a lot of big OEMs are seriously considering alternative to China. In the sense, they may not replace the entire thing. Obviously, that's a little difficult. But all the new products, et cetera, they will bring to places like India because I think the U.S. is very much cautious in providing new technology to Chinese vendors. So they know that that gets compromised. So I think we can look forward to see tariff wars will also kind of cool off at some point in time. And India has played that middle path very well. And also, we are also having a geography strategy. We are going to have places in North America producing. So from that perspective, I think tariff war will benefit our company. Thank you. Thank you, sir. Thank you. The next question comes from the line of Girish Achhipalia from Morgan Stanley. Please go ahead. Sir, I just wanted to understand the rationale of the Canadian acquisition more better. And is it also having some ODM capability, or is it more just a geographical and business diversification? And just in terms of working capital intensity of that business and profit margins, if at all, if you can just help us with that. Thanks. Sure. Sure. So, in answer to the previous question, I had mentioned that it's margin accretive with the EBITDA numbers are higher than what we have at consolidated level at this point in time. The rationale for acquisition was that they have global customers which we don't have access to right now. They do somewhat larger electronics in the area of instrumentation, in the area of energy. Energy means petroleum sector, then, of course, medical, and then IT, et cetera. Telecom also is one of those areas. So these are all high-value addition areas which are generally the province of companies sitting right in the North American geography to serve their customers for whatever reason. Maybe it's a reason of proximity. It's a reason of strategy. So we will benefit. And we have looked at their business plan. So a 20% growth organically is feasible. And this Canadian entity has got expertise in refurbishment and other areas. And they also are ready to expand into, let's say, other geographies like other countries like the U.S., et cetera, as you know, Texas and other areas are having a huge amount of business in oil, et cetera. Of course, they have some interest in Europe too. So with Kaynes' help, we would probably do the collateral benefit of helping this company expand and maybe increase their business a little beyond this 20% that they are currently planning. Plus, their clients have significant purchases from China. In addition to what they purchased from August Electronics, they purchased things from China too. So we are eyeing that portion of the business too. And then a couple of clients have already visited us, and they are happy to help us with new RFQs. So that is, A, India is a safe haven, especially for newer products. And B, it is also nearer than China is for their general acquisition and so on. So we will have collateral benefits in Kaynes Tech here for local business. We will have some, at least, seeding of growth in North American geography, possibly an additional facility in the U.S. in addition to already we have Digicom. So we can combine all of these, and then a critical mass will be there. And so that by FY 2028, when the company does $1 billion, we want a significant number to come from these areas too. So that is the rationale to put it plainly: new customers, new geography, and new business areas. Just a clarification, the 60% growth is including the Canadian part, right? Or is it only the core business? Right. Now we are saying consolidate because we'll have to see the entire year cannot be consolidated. They work from January to December. But yeah, broadly, we will make sure that we attempt to do this in the existing business itself. Okay. Thank you. Thanks, Girish. The next question comes from the line of Meet Jain from Motilal Oswal Financial Services Limited. Please go ahead. Hi, sir. Thank you for the opportunity. Sir, my question is regarding this quarter or last quarter as well. We have seen an increasing flow of our ODM business, right, but mix has increase significantly, almost 18%, including the product engineering business, and that also resulted in better margins, so can you throw some light on which kind of products are we manufacturing in that, on which segment? Also, we can see the IoT part of the business. IoT consumer has seen a very strong jump. Can you throw some light on that? Sure. And in terms of ODM, our ability is in the area of industrial. It's in the area of railways, with Kavach program and other things. And so those are, and of course, IT, IoT is another area where we have a significant amount of ODM activity. So that is definitely going to go up going into the future. As far as the IT, IoT is concerned, it's because of server production taking off. So that's why we don't do commercial laptops, etc., but we do high-performance computing servers. So that's something that we continue to do. And we have a few more clients in the pipeline, so that business will also increase. So in terms of our, let's say, trajectory of composition of our business, aerospace is on the up. Obviously, automotive will remain very strong with global clients and so on. And industrial will also be very strong, et cetera. Medical, we've been talking about an overseas client, so that is also shaping up well. And of course, the defense business, once I think government finalizes its strategy, we will get a good fair share of business for defense production in India. Right now, it represents a very small portion of our business. IT, of course, will keep growing. Aerospace will, I think, become much larger than what it is today in our portfolio. Sir, some follow-up on that. So how much delta in terms of margin can we see if the ODM, because ODM is a high-margin business. So if the mix is going up, so what kind of delta can we see on our margins down the line in the ODM as well? Yeah. So see, margin is a mix of a lot of blend of customers and different areas, etc. So this year, we estimate safely that at least 50 basis points increase in margins will be there on a constant basis. And this is in existing businesses. If there are new businesses acquired, we make sure that it is at least minimum it gives you this kind of a margin. So short-term, 50 basis points, yeah, maybe up to 100 basis points are feasible over time. So because high-margin businesses generally carry some kind of working capital with it, and we target to reduce that. So can you throw some light, see how is it possible? I'm sorry to interrupt. Meet, you're done with your two questions. I will request you to rejoin the queue. Thank you. Ladies and gentlemen, in the interest of time, we'll take the last question from Indrajit Agarwal from CLSA. Please go ahead. Hi, sir. Congratulations on a good set of numbers, and thank you for the opportunity. I have just one question. Of the CapEx that you announced or highlighted for OSAT and PCB, 3,400 and 1,400, how much will come from the government, and what would be the timeline of receipt of that amount? So is it that we pay out the initial amount totally by ourselves, and there's a lag in when we get it from the government? Yeah. So the policies anyway are published by government. So in case of, let's say, OSAT, it's Indian Semiconductor Mission, which has published its policy, 50% of eligible CapEx, which is excluding land and some parts of buildings. So in INR 3,400 crores, about INR 2,700 crores, we will get 50% from central government and another 20%-25% from state government, okay, of 2,700. Remaining, we have to put it as is. It contains land, buildings, plus it contains also some high-tech investments, which in government opinion does not require subsidy because it's a high-tech area and wherein there are already clients and so on. As far as the PCB is concerned, 1,400. And the central government money comes very promptly. That means when we pay the supplier, at the same time, government does its contribution. State government comes with a lag of about six months when the machines come here and then we install. And then what is known as startup of operations is the kind of thing. So first, let's say, capex will be six months delayed. After that, it will become a routine cycle. So that's as far as the OSAT is concerned. As far as PCB is concerned, we get a significant amount, about 40% plus 25%, roughly. So about 65% capital subsidy. These all come after the machines come here and we start up the operations. But within the year, the state government, which is 40% roughly, they will dispense within the year. So there will be no major lag. There will be, you can say, an average six-month lag. And central government will come again with the same six-month lag. So we may use certain bridge loans for this, which are self-extinguishing. The moment the subsidies come, we can pay them off. So out of 1,400 crores, roughly 65% is something which is capital subsidy. Remaining, we have to foot the bill. Sure. Thanks, sir. That's all. That's all. Thank you. Thank you. Ladies and gentlemen, in the interest of time, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks. Yes. Thank you, everyone, for joining this call, and we greet you all with good tidings and strong business growth, and like we discussed in detail about what our plans are and so on and so forth, look forward to meeting you next quarter with some more good news, so in the meanwhile, have a good time and see you later sometime. Thank you, sir. Ladies and gentlemen, on behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you very much.