Ladies and gentlemen, good day and welcome to Kaynes Technology Q2 and H1 FY2026 earnings conference call, hosted by Axis Capital 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Deepak Agarwal from Axis Capital Limited. Thank you, and over to you, sir. Thank you, Ikra. Good morning, everyone. On behalf of Axis Capital, I would like to welcome you all to the Q2 FY2026 earnings con call of Kaynes Technology India Limited. We have with us the management today being represented by Ms. Savitha Ramesh, Chairperson; Mr. Ramesh Kannan, Executive Vice Chairman; Dr. Muthukumar Narayans wamy, Managing Director; Mr. Rajesh Sharma, Chief Executive Officer; Mr. Jayaram Sampath, Full-time Director and Chief Financial Officer. Now, I'll hand over the floor to the management for their opening remarks, post which will open the floor for Q&A. Thank you, and over to you, sir. Good morning, everyone. This is Ramesh Kannan here. On behalf of Kaynes Technology team, I would like to welcome everyone to the earnings call for Q2 FY2026. Mrs. Savitha Ramesh, Chairperson of our board. Dr. Muthukumar Narayans wamy, our Managing Director. Mr. Jairam Sampath, our Full-time Director and CFO. Mr. Rajesh Sharma, our CEO. Mr. Sumit Varma, Investor Relations. And MUFG IR, our Investor Relations Partner. Let me begin with a brief overview of our financial performance for Q2 FY2026. Our total revenue stood at INR 9,062 million, reflecting a year-on-year growth of 58%. Operational EBITDA for the quarter was INR 1,480 million, registering a growth of 80% over the same period last year. This translates into an EBITDA margin of 16.3% and expansion of 190 basis points year-on-year. Profit after tax came in at INR 1,214 million, representing a PAT margin of 13.4%. These results reaffirm that meaningful growth comes from the alignment of vision, strategy, and disciplined execution, a balance that enables us to build capabilities, deepen partnerships, and shape the future of electronics manufacturing. As we are successfully transforming from being an electronic manufacturing service EMS player to a fully integrated electronic system design and manufacturing ESDM company with enhanced ownership across the product lifecycle. This integrated approach allows us to build deeper, longer-term relationships with global customers and deliver differentiated values. This quarter was a defining one for Kaynes Semicon and for India's semiconductor ambitions. At our Sanand OSAT facility, we reached an important milestone by successfully delivering India's first commercially manufactured multi-chip module, IPM5, in collaboration with Alpha and Omega Semiconductor and Mitsui & Company. This achievement is not just a technical breakthrough, it symbolizes India's coming of age in high-value semiconductor manufacturing. Our anchor customers, AOS and L&T Semiconductor, represent the trust and confidence global and domestic leaders have placed in Kaynes' capability to deliver world-class solutions at scale from India. These partnerships span multiple geographies and business ecosystems, underscoring our role as a bridge between global innovation and India's manufacturing strength. Further, our strategic collaboration with Infineon marks Kaynes' entry into MEMS-based true wireless stereo packaging, strengthening our participation in the fast-growing consumer and IoT electronics segment. Together with Infineon, AOS, L&T Semiconductor, and Mitsui, we are creating a powerful collaborative ecosystem that combines technology leadership, operational excellence, and trusted global relationships. Such partnerships are not just commercial alliances, they are building blocks of a new semiconductor ecosystem in India. They position Kaynes at the forefront of this transformation, enabling us to play a central role in making India a credible, competitive, and sustainable semiconductor hub of the world. With the Sanand OSAT facility now operational and ramping up capacity, Kaynes is not only contributing to India's goal of semiconductor self-reliance but also helping shape its journey to becoming a new global leader in advanced electronic manufacturing. In continuation with our semiconductor journey, I'd like to highlight the equally strategic progress we are making in the PCB manufacturing, the next cornerstone of India's electronics value chain. The recent Government of India approval for our advanced PCB manufacturing projects, including Kaynes, marks a watershed moment for the nation's industrial and technological ambitions. It signifies not only policy support but also India's readiness to lead the high-value manufacturing of critical electronic components. Globally, the PCB market is projected to cross $100 billion by 2030, and India's domestic market alone is expected to grow at a 20% CAGR, driven by demand from EVs, industrial automation, defense, and telecom sectors. Within this landscape, Kaynes' upcoming multi-layer HDI PCB facility in Chennai will position us to capture a meaningful share of its growth. This expansion will not only reduce India's dependence on inputs but also enable domestic value addition across the entire electronics chain, from chip packaging to system assembly. The PCB, often referred to as the backbone of electronics, determines the reliability, efficiency, and life of every device, from a medical monitor to a satellite system. By localizing this capability, Kaynes is directly contributing to India's self-reliance and global competition in advanced electronic manufacturing. As we stand at this inflection point, it is important to acknowledge that India's manufacturing journey has never been without challenges. There were times when global supply chains moved faster than our own, when policy and infrastructure were still catching up, and when the world looked at India as a market, not yet as a manufacturing power. Time and again, India has proven its ability to adopt, innovate, and rise stronger. Today, India is not only following the global trends; we are shaping it. We are moving from being participants in the global value chain to become architects of it, powered by policy support, engineering excellence, and the new generation of companies that believe in India's potential. At Kaynes, we see the transformation not just as an opportunity but as a responsibility to prove that world-class innovation and manufacturing can thrive in India at scale with global quality standards. The India story is no longer a promise; it is a performance, and its momentum is only beginning. As we reflect on another strong quarter, it is clear that growth becomes meaningful only when guided by vision and purpose. At Kaynes, our journey is driven by a single ambition: to build a globally respected technology enterprise that powers India's transformation into a deep-tech and manufacturing leader. Before I conclude, I extend my heartfelt thanks to our investors, partners, employees, and customers for their trust and support. With that, I would like to hand over the call to Dr. Muthukumar Narayans wamy, our Managing Director, to express his vision for the company. Thank you. Thank you, Mr. Ramesh. Good morning, everyone. It's really my privilege to join the Q2 earnings call on the back of yet another stellar performance by the company under the leadership of our Executive Vice Chairman, Mr. Ramesh Kannan, and the Kaynes team. I wish to brief about some of the important initiatives that we have undertaken to bolster the performance of Kaynes Technology as an excellent organization. Our focus will be driving the company's transition from a service-led EMS model to a product-led ESDM-driven enterprise, as indicated by our Vice Chairman. As we look ahead, our focus will be on strengthening the execution backbone of the company through enterprise-wide systems, process harmonization, and transformation frameworks that enable scale, agility, and consistency across every Kaynes facility. We are entering a phase where execution excellence will define leadership, and Kaynes is poised to lead from the front. Our priorities are clear: to drive significant improvements in productivity, cost, and delivery while embedding a culture of total productive maintenance across all sites. This will not only enhance asset reliability but will also instill a mindset of ownership, discipline, and continued improvement at every level of the organization. TPM is not just a process initiative; it's a way of thinking. It's a culture that ensures operational precision and sustainability. In parallel, we'll undertake a structured program of business process restructuring and digital transformation, redesigning the workflows, integrating systems, and leveraging the data to build a truly connected enterprise. The next frontier for Kaynes lies in IoT 4.0, a low-cost automation and advanced quality management system where real-time insights drive smarter, faster, and more consistent decision-making processes. As the cost of employee continues to rise, automation and data-driven optimization will be the key to maintain the competitiveness of our organization. Our approach will combine digitalization, predictive maintenance, and process visibility to deliver better productivity, quality, cost, delivery, safety, morale, and environmental performance, the seven pillars of sustainable operations. Importantly, quality today is no longer a differentiator; it's the base and being taken for granted. What will set Kaynes apart is our ability to deliver quality with speed, reliability, cost efficiency, and intelligence. We'll continue to invest in next-generation information systems, enabling better integration between manufacturing, supply chain, and ensure agile customer delivery. As we advance this transformation journey, our aspiration is clear: to make Kaynes synonymous with operational excellence and execution leadership, setting the standards that others in the industry aspire to reach. People define the strength of any organization. At Kaynes, we'll focus on developing our talent pipeline and enabling more individuals to take on the leadership roles that shape the company's future. As the Chairperson and Vice Chairman continue to tell, Kaynes' focus will continue to be on customer. We'll stand as a customer-focused company. We'll continue to focus on innovation and make sure that we constantly make improvements in every process, people, and product. Of course, people are our key. A focus on customers, focus on innovation, and focus on people will make this truly a world-class organization. I'm confident with our talented team, shared purpose, and commitment to excel, Kaynes will continue to define the future of Indian manufacturing on the global stage. With this, I'd like to hand over the call to Mr. Jairam Sampath to take you through the detailed financial performance. Over to you, Mr. Jairam. Thank you, Dr. Muthukumar. Thanks to everyone for joining today's call. As we start a new quarter, I'm happy to share Kaynes Technology's financial results for the second quarter of FY2026, and I will share with you the highlights of the same. Revenue stood at INR 9,062 million, reflecting a year-on-year growth of about 58%. Operational EBITDA for the quarter was INR 1,480 million, registering a growth of about 80% over the same period last year. This translates into an EBITDA margin of about 16.3% and an expansion of 190 basis points year-on-year. Profit after tax came in at about INR 1,214 million, representing a PAT margin of 13.4%. Our current order book for Q2 FY2026 stands at INR 80,994 million compared to INR 54,228 million in Q2 of FY2025. Let me take you through our robust half-yearly financial performance for the first half of FY2026. The total revenue for H1 FY2026 stood at INR 15,797 million, demonstrating a year-on-year growth of 47%. Operating EBITDA came in at INR 2,610 million, making it an increase of 75% year-on-year and resulting in an EBITDA margin of 16.5% and an expansion of 270 basis points for last year for the first half. Profit after tax reached INR 1,960 million, corresponding to a PAT margin of 12.4%. These results underscore Kaynes' unwavering focus on maintaining industry-leading growth rates and best-in-class margins. Efficient working capital management and strategic supplier collaboration continue to drive the cash flow improvements and operational resilience, keeping us ahead in a dynamic industry. Kaynes' journey in Q2 of FY2026 is marked by powerful synergies we continue to unlock through our backward integration into high-density interconnection PCB manufacturing and parallel integration into OSAT and semiconductor packaging. These moves not only streamline our production process and enhance the supply chain control, but also create margin-accretive opportunities and deliver sustainable value to our stakeholders. By connecting PCB and OSAT capabilities, we amplify innovation, operational efficiency, and product quality, yielding cost advantages and enabling Kaynes to serve end-to-end requirements for high-growth verticals. Inorganic expansion continues to be part of our strategic toolkit. Our integration of global businesses, especially August Electronics, further adds synergy, accessing new talent pools, customer bases, and high-margin markets. Kaynes is envisioning the future of the Indian EMS and ESDM industry, positioning itself not only as a leading manufacturer but also as a core innovation partner driving technology transformation. We are building capabilities that extend beyond traditional manufacturing to encompass embedded systems design, advanced prototyping, and seamless integration across electronic systems. This forward-looking approach enables us to co-create the next generation of products with customers, delivering holistic end-to-end solutions that are agile, scalable, and innovation-led. With our expanding expertise and technological depth, Kaynes is set to shape the future landscape of India's electronics sector, empowering it to be a global hub of engineering excellence and product innovation. With this, I complete my initial remarks, and I would like to place on record my heartfelt thanks to the Axis Capital team for hosting this earnings call. I'd like to thank all the participants for committing their valuable time. On a holiday, especially, for attending this call. I hand it over to the team, to the Axis Capital team, for creating the question list, and then we are all here to answer them. 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 press star and one on their touchstone 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. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to one per participant. Should you have a follow-up question, please reach out on the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Deepak Krishnan from Kotak IE. Please go ahead. Hi, sir. This is Deepak Krishnan from Kotak. Maybe just a couple of questions from the cash flow perspective. We still see receivables are up, say, INR 600 crore and in the other current assets, we have not seen a major decrease. Just wanted your thought process in terms of how you see operating cash flow by the year-end and also the status of the INR 300 crore Smart Meter receivables. Maybe just two other bookkeeping questions. We have seen a substantial jump in other income this quarter and other expense going down. We understand part of the other income is the QIP income, but other than that, are there any gains in other income or any sort of reversals in other expenses if you can clarify all these three points? Sure, Deepak. Thank you. Thank you for attending the call. Firstly, regarding the cash flow, we're completely aware. One, we made a small breakthrough of which we have been talking about whenever we have met you all, which is the other non-current assets which represents receivables, not due, but to be paid over a longer time frame by the customer. We have done experimentally about INR 60 crore of such discounting this quarter, and we've been successfully able to do that and documentation, etc. That's off our books right now. Hopefully, next six months, we will remove the remaining old legacy receivable which is not due, and we will take it off the balance sheet. That's one thing which will give us a good, close to about INR 300 crore million of money into the system. If you see the operating cash flow is negative at about INR 180 crore million or so, it could have been perhaps mitigated if you had done this exercise this quarter itself. We are pretty confident that as the second half goes by, the volumes also will increase dramatically, more than 50%, 60% of the first half volumes. We think that we'll be able to give you a positive OCF, a significant positive OCF by the year-end. As far as the other income is concerned, these are the QIP proceeds that are yielding some interest. Other expenses, there are no major things to report by. It is just part of normal course of business. These are the few clarifications to your questions. Yeah. Yeah. Just on the copper-clad laminate, if you could sort of help us with the unit economics of that, how much of that would be sort of captively used, how much are we looking to sell external? If you have a follow-up question, please rejoin the queue. Okay. We will come back to you, Deepak. Anyway, thanks for this question. Sure. Next question. Thank you. The next question is from the line of Saksham Mongia from Dymon Asia. Please go ahead. Good morning, sir. Thank you for the opportunity. I hope I'm audible. Sir, I have just one question. We were not able to maintain the guidance for this quarter. The same situation occurred in one of the previous quarters last fiscal year as well. Could you please share the full year guidance and what gives the company the confidence to achieve it? Also, what are the strategic steps that are being taken to ensure that we meet our guidance? This is from. Thank you. Thank you for this question. It's an important question. See, fundamentally, we look at ultimately, at the end of the day, what matters to us is long-term sustainable profit. And that is driven by long-term sustainable profitability of all products across all verticals and also a good, healthy order book. Yeah, there are between quarters, there are some small, let's say, ups and downs in the execution of orders, which is driven more by some supply chain-related problems and so on and so forth, which we are also nailing down. If you look at our order inflow, see, the total order stood at about INR 8,000 crore or so. The monthly order inflow has gone up compared to the first quarter, which is what defines actually the health of the business. An upswing in that essentially means that there is good, strong traction with the customer. If there are some small peaks to be done with our supply chain and all that and make sure that we start delivery, on a quarterly basis, we might see some little dips here and there, but we are pretty confident that we will hit the annual number for our profits as well as operating EBITDA and broadly reach the revenue targets also that we have mentioned. As you know, this quarter, we have also integrated August Electronics. I'm happy to tell you that they also have a very, quite as expected, a robust business with profitable customers. As I speak to you today, one of the very large companies in the world, they are visiting our facility in Chamarajan agar to qualify us. Those of you whom I have met earlier, I have mentioned to you that we will do Industry 4.0 equipment, which is RF Testing Equipment for these chips. The business is pretty strong. Profitability is on the upswing. It is not merely in one particular area. It is in all the areas. In fact, across the verticals, we have had gross margins sustaining up and shoring up. In fact, this year, this particular quarter, we had a somewhat smaller percentage of industrial, and still the total profits went up because of operating leverage. We continue to do that. In the second half, also, you can expect this trend to continue. Next question. Thank you, sir. Thank you. The next question is from the line of Pranjal from Morgan Stanley. Please go ahead. Thanks for taking my question. Sir, my question is on the recent projects that we have won on the bare board PCB. If you could just kind of highlight in terms of are we looking for any technology collaboration here and what the indicative equity proportion could be with the tech partner, and any ballpark margin guidance that you could kind of elaborate in terms for the HDI capacity that we are kind of setting up? Yeah. Firstly, margin guidance, I cannot give you at this point in time. The factory is just coming up. Suffice it to say that it is definitely going to be higher in terms of whatever the total consolidated margins there are. In fact, significantly higher than this. Also, the approval that we have got is for the second phase of our expansion into the PCB, for which we are in the process of. We have received the Government order for the subsidy, capital subsidy. The first phase of this particular thing, we are doing it in Chennai, Oragadam. The second phase for the balance for which the Honorable Minister for Information Technology and Railways had issued us the Government order. That is being done down south. We think that this also represents this has been done after scrutiny of our proposal by the Government, both in terms of technology as well as in terms of its ability to deliver fast. We are happy to tell you that on both counts, it has worked very well. We are attempting a largish scope in the PC board, especially in tune with the PCB requirements of the future, which are likely to be high-density, multi-layer, flex boards, and so on. From that perspective, we have put together a CapEx for the first plant. Firstly, we will start with multi-layer boards. We are attempting to do up to about 76-layer boards. Then, we will implement HDI. Concurrently, we will implement the flex board and then, of course, the high-density interconnection. There are many customers. We have about 16 customers who have been strong interest. We think that by the end of this year, the plant should be ready, at least the phase one in the Ora gadam area. Once that is ready, then maybe some customers' approvals also will be there, and we will start shipping, like I have communicated earlier, from the month of April onwards. We are also covered under, as you know, PLI scheme. We will have clear six years of coverage under the PLI. As we get a little more confident and the capacity ramps up in the Aurigadam phase one plant, we will start off the phase two plant. We have about three years' time frame to complete that activity, and we are pretty confident that we will do that. With this, what happens is we hold, let's say, the distinction of being able to be self-sufficient on copper-clad laminates, pre-preg, as well as PC boards, especially in the high-tech area. As you know, Kaynes Technology is also a user of PC boards. Almost 10% of our total sales money is spent on PC boards. We hope to get some important cost down because of being able to manufacture the high-tech PCBs ourselves. As far as the collaborators are concerned, there are two ways in which we are handling this. One, the machinery manufacturers, already we have placed orders on the machines, and they are setting up the line. It is pretty much like we set up the line, we achieve the process parameters off-site at the machinery manufacturer's premises in whichever country they are, and then we just ship that entire thing. We do not do a development of the process here. We do development of process under high-tech conditions with experts, material science experts, and machinery experts. What we focus here right now is to do the design and all of those things. Once we become experts in reading the customer's drawings and making sure that we can make the valuations as required, all the machinery is getting transplanted here to Oragadam in the phase one. From day one, we are pretty confident that we will have a very high yield, and capability-wise, it will not require several years to actually develop. This is the method that we are using: developing the technology with the experts and then transplanting the technology. Also, in the process, we are making sure that we do the software part of it. Sorry about the longish explanation, but this is a technical subject, so I did not want to miss out on any details here. Thank you. Next caller, please. Yeah. I'll just fall back into queue for more questions. Thank you. Sure. Please. Thank you. Thank you. The next question is from the line of Naushad Chaudhary from Aditya Birla Sun Life Mutual Fund. Please go ahead. Yeah. Hi. Thank you for the opportunity. Just one clarification, sir. This quarter, margin has gone up. At the same time, we can see the working capital parallelly has gone up for us. Given the nature of the business, should we see this going forward? If we try to push or optimize working capital, we have to compromise on the margin as well. This is the clarification just wanted. Yeah. Thank you, Naushad. Thank you for the question. This is the question that all of us after the call will actually be addressing 24/7. We look at this particular issue. It is good news also because most of the inventories have been acquired during the latter half of the quarter. As you know, the order book is also kind of filling up quite fast. We need to make sure that because of supply chain glitches, we do not miss on delivery. We are going a little more cautious here. We do more than required amount of inventories somewhat, and we do not curtail. Of course, we are trying to look at the optimization through vendor-managed inventory, for which our President of Supply Chain has been tasked with this job. This quarter, he will come out with a definitive plan. I have been talking about it. I think last time I met some of you, and you also have mentioned to you. We have not taken any benefit of the vendor-managed inventory, which is basically the distributors keeping stock on our behalf in India so that we can rid the burden of us for at least a reasonable period of time, two to three months kind of thing. Hopefully, we will succeed there. We are quite pleased with this thing. The increase in inventory is a reflection of strength of the business, actually, at this point in time. Hopefully, by the end of this year, we will bring it down to the kind of numbers that we are talking about in terms of working capital days, networking capital days. We have two items which we focus on, of course, inventory and receivables. In answer to the first question from Mr. Deepak, I had mentioned to you that some small portion, about INR 300 crore, we will try and get rid of by discounting and getting it off the books. That plus this VMI vendor-managed inventory nearby, you will see a significant improvement by the end of this year on our working capital performance, which has been of concern to a lot of people saying that, "Are you consuming more resources than generating the cash?" We will have positive OCF, and we will have lower networking capital by the end of this year. Without compromising on margin. No, no, of course not. Of course not. We ultimately have to make money. Yeah. All the best. Thank you. Thank you, Naushad. Thank you. The next question is from the line of Siddharth Verma from Nomura. Please go ahead. Hi. Thanks for the opportunity. Sir, first question is on the order book. This close to INR 8,000 crore order book, does it include any orders from the OSAT and PCB segment as well? This is purely EMS. First, clarification on that. Second, sir, on the investments on the OSAT and PCB side, would you probably broadly highlight how should we expect the investments to be over the next three years? By when is a subsidy element expected to be sort of received both from sector and state? Yeah, Siddharth, thank you for the question. See, firstly, this order book does not yet contain the orders that we have, the LOIs and orders and contracts that we have executed in OSAT. Once we start commitment of operations there, we'll certainly start maintaining that and start reporting that too. Suffice it to say that almost 60% of the capacity is already committed by large players, and they have actually gone on record in public itself to say that. There are people like Alpha and Omega Semiconductor, L&T Semiconductor, also Infineon. Like I said, there is a list of another 14 people who probably want to work with us. We are being a little selective because, as I have been explaining earlier, we want our product portfolio to be profitable. We do not want to fill it up with just the legacy or low-end work. We want to also add a medium range of advanced packaging as well as the cutting-edge or bleeding-edge technology of silicon photonics, co-packaged optics, and things like that. That is the thing. We will add the order book. Maybe by the end of the year, we will probably talk about the order book on this business. As far as PCB is concerned, the INR 1,400 crore was taken care of by the QIP. The expansion of that basically will lead to copper-clad laminates and pre-preg, plus one more PCB factory down south near Tuticorin. For that, we are preparing the detailed project report right now because now we are clear about the Government incentive and the Government's capital subsidy that is coming in. We should probably shortly have that ready. As a broad guidance, I can tell you that the PCB factory in Chennai will start generating cash in a couple of years' time, and that cash will be sufficient to start our equity infusion into this particular project. With some small bridge loans, I think we should be able to complete this project unless we increase the scope further. That is, as this Government has given us approval for about INR 3,700 crore of CapEx. I think we should be able to do this on our own steam with a mix of internal generation of cash as well as some small bridge debt. That is how we look at it, Siddharth. Got it, sir. Thanks a lot. I'll come back in the queue. Thank you. The next question is from the line of Bhavik Mehta from JP Morgan. Please go ahead. Thank you. This transition, we're doing CapEx of around INR 1,400 crore in one edge. I'm thinking about a full-year CapEx this year and next year. Just a clarification on that, is this a gross CapEx, or does this include the subsidies issued by the Government, or is this a net number? Yeah. The subsidies issued by the Government, as for the ECMS scheme, as you know, it's about 25%, and the state Government also gives. The state Government number is broadly confidential between us and the state Government because we enter into an agreement with them. Let me put it this way. The total equity that we have to bring in is about 30% of the total CapEx only. For INR 1,400 crore, we have already done the finance planning for the remaining INR 2,300 crore, and perhaps there could be scope increases later. We have to bring in about INR 600 crore-INR 800 crore of money from the equity perspective, which we are quite confident that from year three onwards of Kaynes Circuits, every year, we do about, let's say, about 15% of our sale as probably the operating cash flow, if not more. These are mostly large customers, export customers, and high-yielding products, so we should be able to finish our equity contribution in a two to three-year time frame at about INR 250 crore-INR 300 crore per annum. That will give us also compliance with the Government's requirement that we should complete the project when, let's say, we start with next three years and then complete it in the next three years thereafter. From that perspective, we don't see any challenge in terms of being able to fund this. Of course, this is all assuming that the scope remains the same. Supposing scope considerably improves, then we'll have to think about how to do this further because the demand is pretty strong. We have not yet completed full assessment of what customers require. Many of our customers by themselves are willing to underwrite the entire capacity. We are contending with a different type of an issue. On an as-is basis, we don't have any financing issues at this point in time. Next question, please. Thank you. The next question is from the line of Sumit Sinha from Ma cquarie. Please go ahead. Yes. Thank you. I just wanted to put a near-term perspective. You're talking about INR 4,500 crore in revenue for the year. Can you talk about the interplay between the different verticals? It seems like autos were probably a little lower than what we had expected. How do you think about railway? Where does that play? We saw some news stories yesterday about some rollout of Indian Railways, when they've had trains being slowed potentially. If you can also, in that same context, talk about smart meters and aerospace, which is supposed to be a big second-half driver. Thank you. Yeah. Hi. Thank you. Sorry, I was on mute. The post-listing, our growth was driven by automotive and electric vehicles and industrial now. As we prepare to start serving customers in aerospace, defense, and also our own products in railways, the quantum of, let's say, business in these two segments will go up, railway electronics as well as. The Kavach program has already been announced by Government, and they cannot do it. As you know, 68,000 route kilometers are there. The TAM, if I were to make an estimate of TAM, is about INR 50 lakh per kilometer. It is about INR 34,000 crore of business out there. Not all of it will get done immediately. It may take five to seven years' time frame for the Government to identify the priority sectors, trunk lines, based on passenger movement, etc. We expect Kavach. Our own product actually has been made, and then we have supplied, it is approved, and so on. Hopefully, we will do some reasonable amount of business this year itself. There are other things like we are working on the railway network safety, etc. That has also made some good progress. We probably get some traction there. Also, our traditional business, which is the electronic interlocking through our major clients, has also seen an uptick during this quarter. We think that will continue further. We do not see any slowdown. In fact, as a percentage of total revenues, the railway percentage will be much higher this year compared to last year. Similarly, for aerospace defense also, we had made just a small beginning in terms of getting approvals, etc. Hopefully, by the end of this year, when the final approval comes from our major customer in the U.S., we should probably, that percentage also will see an upward trend this year. Next year, it will be a significant increase. A similar thing has happened in the IT space. We are getting more orders on the high performance computing servers. That is also likely to be a bigger chunk of business. As you know, in the industrial area, we do have smart meters, but smart meters is kind of a steady run-rate business. In terms of percentages, the other businesses, once they start picking up, the smart meter will kind of remain steady. We do have fairly good, let's say, order coverage in this area. Over the next five to 10 years' time frame, of course, we plan to do a significant amount of business in this particular area. Suffice it to say that. The automotive, as you correctly pointed out, automotive sectors are sectors which are response, let's say, they respond to the cyclicity in the market. Fortunately for us, due to the rationalization of GST and all that and that slip that was given by the Government recently. We got benefited. In fact, now there is a lot of traction, and there is a lot of caution. Most of the customers are here at our doorstep trying to make us supply material. As you know, we had acquired one of the largest, I think he is top 10, maybe third largest tier one in the world. I had talked about it earlier on. We have now very good demand from that particular company. Similarly, there are new companies with whom we work in the areas. Domestic companies also. The other advantages I want to bring to the attention of people is that many of these companies are also asking us capacities for indigenous component manufacturing, starting with PC boards and so on. As I see, there is a real benefit here. One, better, let's say, bonding with the customer in terms of larger valuation, and then also better profitability for us because we go deeper into the valuation. As we go forward, we expect automotive to grow at the rate of growth of our company's growth rate, which will be anywhere around 50%± you can take. Similarly, industrial will also grow. In the industrial segment, there are other segments other than merely the industrial and EVs. There are other things than the smart meters, etc. They will also start going. We have started getting orders in those areas too. Suffice it to say that I think that will also remain a primary sector, around 40% of our total. Similarly, our automotive is about 26% of our total. We hope to get into a two-digit number for railways, electronics, and then, of course, for the aerospace defense, we will come nearer to this 10% number in a couple of years' time frame. We are about 12% in the IT and IoT space. We are also doing some high-end consumer work, which is not the appliances of like the TVs, etc., but something else, something a little different, which is more high-tech for export markets. We think that this portfolio is reforming itself back to the original number so that the combined profitability or the blended profitability will also get an upward trend in addition to getting operating leverages. We are pretty confident that we should be able to match not only revenue growth but also the profit growth. Got it. Thank you. Thank you. The next question is from the line of Akhilesh Bhandari from North Rock Capital. Please go ahead. Hi, sir. Thank you for taking my question. Firstly, on the receivable part, even if I adjust for INR 300 crore of the financing which you're looking to do, on a 10-month basis, still the receivable days would have increased by around 15-20 days. Even except that, we are seeing a receivable increase. Any thoughts on this, please? You're right. There is a skew of billing towards the end of the quarter, typically. And it's like one, two, three. So if the billing within a quarter and then one, two, three, four is within the year for the respective quarters, these are affected by two things. One is cyclicity of business and orders, etc., and also pushed by our customers. So everybody wants to achieve quadrant numbers and so on. A lot of business gets done in the last month. We are trying to work on two fronts. One front is, of course, taking care of the older numbers so that we free up some cash. The second one is we are also working with the customers themselves for some kind of an invoice assignment and discounting so that the burden on the customer company comes down. That means the moment we deliver, we would like to collect that. This also helps us in terms of making sure that all monies are collected and there are no troubles. We are aware of this. We are trying to get rid of this extra 10-15 days. There will still be cyclicity always quarter-end, especially as we go forward. The March end will be probably pretty strong billing. You will see this little bit of trend for the next couple of years or so. Having said all of that, we still want to bring down the networking capital. We'll make sure that we will have financing solutions, plus also we'll make sure that the vendors chip in so that we can control the inventory. As a bucket, inventory, receivables can be controlled. Payables, I think we have maximum whatever we can extract is there. We don't want to do an additional, let's say, extraction of a number of days from our suppliers because, as you know, price sensitivity comes into the picture. Whereas many of our peer group companies, etc., they all talk about six months payables, etc. We don't do that. We are sure that even though there are these infusions and receivables, we will compensate by reducing inventory. By the end of the year, we will make sure that we get to a lower number than even FY2025 number, much lower number in terms of networking capital days. Your cash flow statement shows a— Sorry to interrupt, Akhilesh. Please rejoin the queue. If you have a follow-up question, please rejoin the queue. Thank you. The next question is from the line of Aditya Bhartia from Investec. Please go ahead. Hi. Good morning, sir. Just following up on the question on receivables. I understand that the receivables that we are seeing on the balance sheet are not including this INR 300 crore, INR 350 crore of deferred receivables because that is residing in other non-current assets. In that context, there has been almost like an INR 550 crore-INR 600 crore increase in receivables, even higher than the revenue increase that we have seen. I just wanted to get your take on that and how should we think about it going forward. Also, just a related question. In the cash flow, we can see that there appears to be a provision for doubtful debts of around INR 55 crore. What is in that in respect of? If we adjust for it, then margins look even better. What should we think about margins, as well? Yes. See, about receivables, I gave a kind of detailed qualitative approach to the previous question itself. Like I said, the last month of any quarter is a bit heavy. What happens is most of the customers give us 60 days and plus, 60-90 days kind of payment term. Some are 30 days, of course. So 30-90 days payment term. The profile of customers we are billing in the last month of the quarter is towards 90 days, then you will have larger than usual amount of receivables coming in. Two methods we are using. One method is, like I said, all the new customers which are coming in, which are larger customers, whether it's a large tier one guy or large US customer or something, they have already designated bank. Sir, your backup line is unmuted. Please go ahead. Yes. Sorry. Am I audible? Yes, you are audible, sir. Okay. Like I said, all the large customers and large businesses going forward, we will make sure that it is discounted with the customer's bank or customer's financing agency. We have registered with JP Morgan. We have registered with other banks, etc. Hopefully, by the time FY2026 is completed, I think we will have onboard at least 20%, 30% of very large customers whose receivables will probably not stay there. One is, and then second is, of course, the legacy receivable, which is receivable but not due, which is sitting on other non-current assets. We are trying to make sure that we have found a method now. We should probably, by end of the year, discount it off and get it off the balance sheet. These are the two methods we are making sure that we. On the improvement front, what happens is if we shift the customer evenly. That has something to do with improvements in terms of our ability to shift evenly. Even within a month, first week to fourth week, there is an increase, right? We are trying to see whether from day one, we can shift material, which is, let's say, required by the customer rather than wait for the end of the month. These kinds of things will probably reduce our receivables and also inventory directly by about five to 10 days net. In addition to that, of course, the other methods of VMI plus customer-led bank discount, and then, of course, factoring of our books. These three, four methods we have to make sure that by the end of the year, you will probably see some reasonable improvement in this front. Sure, sir. And provision for doubtful debt that we are having of INR 55 crore? Yes, hold on. I will shift to the main line. Let's see. Yeah. Am I audible now? Yes, sir. You're audible. Yes, sir. You're audible. Please go ahead. Yeah. What was the question on the provision? I missed that during this. Sir, on the cash flow side, in the cash flow statement, we can see that there is a provision of doubtful debts of around INR 55 crore that we have created in this first half. I wanted to understand what that is in respect of. If we adjust that, then it means that margins could have possibly been higher by even another 3%. I just wanted to get your perspective on margins as well. Yeah, yeah. No, no. Obviously, the conclusions are right. They are arithmetically correct. The fundamental thing is the provision is driven by accounting policies, okay? Whereas just because we provide for it does not mean that we do not go and collect it. We have done a lot of old collections and so on too. Though we may have provided for it and so on, our auditors will have us provide for debts which are aged and for some reason. Uncollected debts, etc., etc. That is the thing. Going forward, we will reduce this also. See, the improvement in receivables means essentially current collections should be highest, and the old collections should not be there at all. Old collections should have been collected. That is possible, like I said, through systemic method. One method is, of course, you improve the evenness of billing. The second method is you make sure that you discount it with the customer's agency because then there is nothing. It just goes off the books. He has received the material. He pays us the money. Of course, we have to provide for some little cost of that in our costing, which we are able to do. Third is, of course, some of these things, odd cases like the other one, which was there, we have to approach some financing agencies, which we have done. We have done about INR 60 crore of such discounting, and it is off the books right now. Similarly, we will do that for the remaining legacy, which is receivables not due, but sitting in other non-current assets. That also we will do. Yeah, you are right. I mean, it is like an accounting treatment, let me put it this way. Once we collect, anyway, we write back the provision. Instead of getting the profit today, we will get the profit tomorrow. There is no loss because of that. No, no. Completely understand that, sir. Thank you. Thank you. The next question is from the line of Neeraj Jain from BNP Paribas. Please go ahead. Yeah, sir. Thanks for the opportunity. Sir, one clarification. The documents said that we have fully utilized the INR 50 QIP proceeds for the debt repayment. Why is it not getting reflected in our debt reduction in the balance sheet and cash flow? Secondly, wanted to check on the revenue guidance. Do we still hold at $1 billion revenue guidance by FY 2028 and $2 billion by FY 2030? If we have a rough breakup of this incremental $1 billion we expect over two years in FY 2029 and FY 2030? Thank you. Yeah. The second question is easy to answer. There is good traction, and there is good momentum in the business. So $1 billion by FY2028, certainly visibility is there. And we are sure we'll do it. And you and I will discuss. Of course, the profile, etc., I can't tell you without. I mean, there are lots of confidential agreements, etc., but you can look at the way in which the order inflow is there. No, sir. You really think that you must always? Yeah. Hold on. Let me. You're able to hear me? Yes, sir. Okay. That is the first. Second question. The first question is whether debt reduction, etc., what has happened, etc. Why it is not reflecting. I can probably write to you, Neeraj, the full math and share it. It is all there, actually, but I probably need to point out, point to you exactly where it is and so on. There is a reduction in debt. Of course, the increase in debt is corresponding to the increase in inventory. That is what we are saying, that we will make sure that the inventory increase does not happen at our end, but we ask the supplier to keep it so that we do not have to borrow and fund it. That is something that we are working with our President of Supply Chain, and he has promised that this year-end, we will have a significant amount of material being kept by suppliers. Otherwise, there is nothing. Until what? We will probably send you a calculation on this. Not a problem at all. Sure, sir. Thank you. Thank you. Ladies and gentlemen, due to time constraints, this is the last question for today. I now hand the conference over to the management for closing comments. Yeah. Thank you. Thank you very much. Very nice questions. We will get back to you. You can always call us, me or Sumit, and if there are some substantive issues, questions, some calculations, we can always share with you. Of course, those in the published domain only I can share. We will try and explain to you through data which you already have. Thank you, everybody, for taking time off during the holiday time. Look forward to meeting all of you sometime during this quarter. Thank you. Bye-bye. Thank you. Thank you very much, sir. On behalf of Kaynes Technology, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.