Ladies and gentlemen, good day and welcome to the KSH International Limited Q2 and H1 FY27 earnings conference call. 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 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you, and over to you, sir. Thank you, Shruti. Good morning. On behalf of ICICI Securities, I welcome you all. to call to KSH International Q2 FY27 earnings conference call. today. we have with us from the management, Mr. Rajesh Hegde, Managing Director. Mr. Kunchan Lakhhotia, Chief Executive Officer. Mr. Amod Joshi, Chief Financial Officer. Mr. Dhruv Chopra, Head of Investor Relations, and Mr. Nakul Patil, Company Secretary and Head, Secretarial and Legal. Now I would like to hand over the floor to the management. For their opening remarks, post which we'll open the floor for Q&A. Thank you, and over to you, sir. Yeah, good morning. This is Rajesh Hegde. Welcome to our 2nd quarter fiscal 2027 results call. As we reach the halfway point of the financial year, I am pleased with the progress we have made across several important areas of our business. Number one being we have continued to grow volumes while maintaining our focus on profitability and utilization. The second point being demonstrated improved penetration to expand the scale of our exports. Thirdly, our Phase 2 capacity expansion at Supa is largely complete, providing the manufacturing capacity needed to support the next phase of growth. And lastly, improve the efficiency of our working capital cycle. These developments are closely linked to the investments and operating initiatives we have undertaken over the past few years, and I will discuss with them— discuss them in more detail during today's call. Our second quarter financial results along with supporting information have been submitted to the exchanges and have been uploaded to our website. On today's call, I will focus on the industry and trends, operating performance, and finally our capacity utilization and expansion plans. Amod will then discuss the financial and operating metrics. KSH International, as you know, is a 45-year-old manufacturer of magnet winding wires, which is the most critical component of coils used in electric machines. From power transformers down to AC compressors and everything in between. We are the leading manufacturer of specialized magnet winding wires in India and the largest exporter of winding wires from the country. Our installed capacity as on September 30th, 2026 was 57,845 metric tons, which includes 96% of the total capacity B2B company servicing over 120 leading domestic and global OEM customers and maintain long-term relations with these customers with repeat revenue in excess of 95%. Additionally, our business is make-to-order, which means we procure the copper or the metal and begin processing only after receiving a purchase order from the customer. LME copper price and exchange rate is a direct pass-through. Roughly 75% of our revenues comes from special— supplying specialized magnet winding wires for T&D, renewables, railways, and data centers, driven by our core continuously transposed conductors, or CTC, for transformers. In which we are the market leaders in India. CTC is a complex engineered product and all of our exports are exclusively to T&D customers across 5 continents. Let me briefly share some of my thoughts on the industry environment. We see sustained growth and investments across power generation, transmission, and related equipment-driven by grid infrastructure development, renewable energy integration, electrification, and growth electricity requirements from industrial and digital infrastructure. OEMs are still growing order flows and are investing in manufacturing capacity, particularly across all premium transformer and motor applications. Overseas, equipment manufacturers are also increasingly highlighting the importance of strengthening their manufacturing capacity and supply chain resilience to meet evolving customer requirements. An important aspect of this environment is the increasing emphasis on technical capabilities, product qualification, delivery reliability, and long-term supply availability. For specialized component manufacturers, these requirements create opportunities to deepen customer relationships and participate in more technically demanding applications. Now against this backdrop, our focus remains on expanding our engagement with domestic and global OEMs, progressively using our available manufacturing capacity and ensuring that our capabilities and the investments remain aligned with the long-term requirements of our customers. Over the past few quarters, we have, we have talked about having capacity available to expand our export business given the supply constraints we faced previously. We spent the last 6 months fulfilling various technical qualifications and test shipments, and in Q2 we saw the export volumes begin to increase from both existing customers as well as new OEMs. Export revenue in Q2 grew 108% year over year and 44% higher than last quarter. As a result, exports represented almost 32% of our revenue in Q2, up from 26% in Q1. Specialized magnet winding wires revenue overall grew at 87% year over year during Q2, which— with much of that growth driven by exports. CTC contribution in Q2 remained elevated as a percentage of the total revenue as standard wire volumes begin to pick up late in the quarter. As the newly commissioned standard wire capacity ramps up, we expect the overall contribution of standard wires to increase and our product mix to progressively move closer to historical levels heading into H2 of FY27 and FY2028. Last quarter, we received a trial order to supply specialized wires for 2 HVDC transformers overseas. Which demonstrates that our HVDC opportunity is not just confined to India alone. And lastly, 2 weeks ago, Power Grid also approved our Supa facility to supply magnet winding wires up to 765 kV transformers and reactors from our newest facility. The majority of our standard winding wire capacity has now come online and available going forward. Standard wire growth was 119% Q2. in Q2 compared to a year ago and outpaced specialized magnet winding wire growth. But important to note that the growth is off a much smaller base than specialized wires. As we have stated, our focus for standard wires is predominantly in selected— select end-user industries such as EVs, AC compressors, motors, alternators, where precision technology plays a critical role. Overall sales volume was 8,842 metric tons in Q2, was up from 7,969 metric tons in Q1. and 7,037 metric tons a year ago. This represents 26% year-over-year volume growth and 11% higher than Q1 of FY27. Moving now to our EBITDA per ton performance. In Q2 FY27, we reported EBITDA per ton of approximately ₹1,01,400 per metric ton. Up from roughly ₹93,000 per metric ton in Q1 and ₹65,500 per metric ton a year ago. Similarly, similar to Q1, the key drivers for this improvement were number one being the CTC contribution during Q2 remained elevated given the timing of when that capacity was installed, through the mix percentage— though the mix percentage should moderate as we head into H2 of FY27. Secondly, higher export contributions and volume growth volumes during Q2 which are all specialized magnet mining wires, showed a meaningful improvement compared to last year and last quarter. The third point being an increase in consolidated utilization rates to 76% in Q2 of FY27 versus 73% in Q1 of FY27. Based on available capacity for the quarter. Fourth point being a persistently weaker rupee, and finally incremental benefit from commencing our upcast recycled plant and rooftop solar plant, which are now operational. Amod will go into the financials shortly, but I want to briefly address the improvements in our working capital cycle that we have systematically been focused on for the last few quarters. As a result of these efforts, we were, we were able to deliver roughly ₹43 crores of positive operating cash flow during H1 of FY27. While also reducing outstanding debt by approximately ₹140 crores. by September 30th, 2026, from Q1 of FY27. Turning now to capacity, based on available capacity, total utilization in Q2 of FY27 improved to 76% from 73% last quarter. We are very pleased to have completed 96% of both Phase 1 and Phase 2 of our super capacity expansion as on September 9th, 2026. Roughly 6 months ahead of schedule. Period-end capacity stood at 57,845 metric tons and is now available for H2 of FY27. The board has approved a new Phase 3 expansion of— to add specialized magnet winding wires capacity, manufacturing capacity, and which is expected to increase the company's total installed capacity to approximately 72,200 metric tons by Q1 of FY2029. This investment is aligned with our long-term strategic plan and is intended to ensure continuity of supply, continuity of supply capacity as the business scales up further and fulfills our abilities to service the transformer, renewables, railways, and the EV markets. If we look at our overall available specialized magnet winding wire capacity, our Q2 utilization has exceeded 80%. Which, as we have previously mentioned, is also an important threshold for when we start looking at adding new capacity. The company intends to spend up to rupees 185— uh, 1,850 million rupees or 185 crores to finance this expansion, which also includes the purchase of an additional 10 acres of land in Supa. And it will be funded with a combination of internal accruals and long-term debt. We do not anticipate this expansion to have any material adverse impact on our liquidity ratios and to be accretive to our profitability and ROCE. when optimally utilized. So to conclude, I would like to touch on 2 finance— 2 key financial metrics as we look ahead. Firstly, we believe that 26% volume growth for this year continues to be sustainable. and will benefit from having our expanded capacity available in H2. Secondly, looking at our overall long-term profitability, long-term portfolio and capacity mix. And the additional traction with exports and improving operating leverage, we believe post-phase 3 expansion, a long-term EBITDA per ton of approximately ₹85,000 per ton should be sustainable. Having said that, it is possible that individual quarters may exceed this level depending on the product mix, exports, and currency impact. So in summary, our key strategies to drive sustained growth are number one being to grow volumes in our ultra-precision, higher value-added products. In segments like T&D, EV motors, and exports. The second point being to expand our international presence and to also increase our wallet share with existing customers. Finally, we would like to drive operation— operating efficiencies through scale and backward integration and also work on improving our sustainability efforts. I would now like to ask Amod to go over some of the financial and operational details. Over to you, Amod. Yeah, thank you, Rajesh. Uh, good morning everybody. I will discuss our second quarter FY27 financials and operating performance. During Q2 of FY27, our revenue from operations were ₹1,320 crores, 85% higher compared to the same period last year. Specialized winding wire revenue in Q2 increased 87% versus a year ago, driven by ongoing demand from our T&D clients locally. Standard winding wires accelerated to 119% year-over-year growth in Q2, though of a smaller base. Revenue from exports grew 108% compared to Q2 FY26. Volume mix, volume mix and material prices were key drivers of top-line performance. Now Q2 EBITDA of ₹90 crore improved from ₹46 crore last year and ₹74 crore last quarter. EBITDA per ton for Q2 was approximately ₹1,200 crore. ₹1,01,000 per ton on consolidated basis, up from approximately ₹65,000 last year and ₹93,000 in Q1, and benefited from quarter. stronger export volumes, favorable currency, and to some extent from our recycling and rooftop solar initiatives. During Q2 FY27, we reported a quarterly record PAT of ₹48 crore, which increased 62% versus ₹30 crore last year and ₹42 crore last quarter. Turning to the balance sheet and cash flows, we generated positive cash flow from operations of ₹43 crore in H1 FY27, driven by improved profitability and working capital cycle improvement. This also led to a reduction in total outstanding debt to ₹341 crores, down from ₹481 crores in Q1 of FY27. Working capital days calculated on average balances improved to 52 days from 60 days in Q1 and from around 70 days last year. Lastly, let me address our new Phase 3 capacity expansion. As we mentioned, we expect to spend up to ₹185 crores over the course of the next 18 months to purchase 10 acres of land in Supa, as well as for bidding and plant and machinery for Phase 3 facility. This project will be funded by a mix of debt and internal approvals. We expect, expect the majority of these expenses to be incurred in FY28, though a smaller upfront portion would likely be spent during H2 of FY27. We do not anticipate any material changes to our existing leverage ratios as a result of this expansion at optimum utilization levels and expect the investment to be accretive to our profitability, asset turns, and return ratios. With that, I'd like to hand, hand the call back to the moderator and open up for questions. Thank you, everyone. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shubham from ICICI Securities. Please proceed. Uh, hi sir, thanks for the opportunity and congratulations on a very good set of numbers. So I think, uh, we delivered exceptional EBITDA per ton for the quarter and H1. But what explains the strength in margins? And is this mix tilted heavily towards high voltage? And do you expect this mix to correct in H2? And second question would be, you have announced CapEx for third phase, so is it towards CTC mainly? And for that, where is the incremental demand or strength coming from? Is it a high voltage, domestic, or export? Thanks. And So let me answer the first. Uh, this is Rajesh. Let me answer the first. Uh, you know, what drove the EBITDA per ton performance, right? I mean, you, you were asking, and as I, as I said earlier I mean, the CTC contribution from, uh, in Q2 was elevated, so that obviously, you know, CTC is the more higher value-added product for us. And that, uh, the skewness in the EBITDA per ton was partly because of that. Secondly, of course, the higher export contributions as we have maintained Exports is normally about 3 to 4% higher in terms of value addition, uh, as opposed to local. So that, that was it. The third point was the persistent— the weaker rupee also helps when we are exporting. And the, uh, you know, overall the incremental benefits which were there for the recycled, uh, you know, copper plant and the rooftop solar as well. So these were some of the things that drove EBITDA per ton on a, uh, you know, for, for last quarter. I think the second question you asked was, will it be sustainable for the next quarter, right? Capacity expansion, whether it is more CTC and what is the demand. The new, the phase— no, I think he was talking about phase 2, I think. Can you please repeat your second? Yeah. Yes. Yeah, so the second part was, do you expect this EBITDA per tonne mix to correct in H2? And second one was, uh, announced CapEx for the third phase Is it towards CTC mainly? And for that, where is the incremental demand— demand is coming from? Is it high voltage? Is it domestic or exports? So, so that's, that's the second one. Yeah. And, uh, on your specific question on whether this EBITDA levels are sustainable, so what we maintained is, see, we are in a growth phase right now. We planned a Phase 3 expansion. And, uh, we feel that on an optimum utilization levels of the overall capacity, 85,000 per metric ton would be a more sustainable EBITDA as against what we have right now. Within quarters, obviously it can be higher and lower, but on a longer-term basis, we feel 85,000 per metric ton is a better measure of our EBITDA. Okay, so, uh, you know, when it comes to Phase 3, as we have said, it's specialized wire capacity that we are adding. We've not yet, you know, we've not, uh, and this specialized wire is being used not only in transformers, it's also in EV motors, renewables, railway applications, etc., also. And, uh, Yeah, within quarter, you know, it's also because of the reasons we maintain. I mean, if, uh, it's, you know, if the product mix is more skewed towards CTC exports, etc., that drives the EBITDA per ton higher also. Yeah, just to add one other thing broadly, whether it is, uh, transformers, railways, or renewables very heavily reliant on qualifications, track record, and, and, uh, and scale. For sure, sir. Just, just one last question from my side. So how is the Middle East as a geography doing for us? EVs. I think, you know, broadly we have consistently said that our focus is always on the, you know, predominantly on the premium segments, which are significantly as compared to earlier times. Yeah, and also some transport costs have increased when it comes to the Middle East, you know. Yeah, so, uh, as far as the business at Middle East is concerned, we have not seen a significant drop in the business from Middle East, though, you know, because of the disturbance, the transit times have increased Thank you, thank you. That was very helpful. Thank you and all the best. Thank you. Next question is from the line of Abhi from AJ Capital. Please proceed. Hi, good morning, sir. Uh, hope I'm audible. Yes, you are. you know, it's a fairly hygiene question for the CFO and, uh, which is— can throw some light. I just want to understand that despite the debt going down this half year Uh, first of all, congratulations on a great set of numbers. Uh, and secondly, uh, a small complaint that you lowball your EBITDA for earnings guidance and you always beat So congratulations on that, and you catch investors off guard. So congratulations on that. Uh, so my first question is, uh, just to understand, uh, the finance costs have risen. My understanding or my working is that maybe, you know, it is coming from trade payables and some of it is backed by LC supplier credits. which is now building into the finance cost. So is that understanding correct, or is there some other lever because of which the finance cost was higher this quarter despite the overall debt going down? No, your understanding is correct. The finance cost includes cost charged by the bank as well as finance cost charged by a supplier. All right, okay, so fine, that is okay. So my second question was, uh, obviously now that you have increased your guidance, and I'm pretty sure that it is still a lowball number, But as your yearly contracts are coming up for renewal at the end of FY27 and Q1 of FY28, I just want to understand, are you getting a higher conversion charge per tonne than last year? And by roughly how much? Because last year I think you were at about 55,000-60,000. So how are they getting repriced? Are your legacy customers okay with the higher repricing because you've already reached 1 lakh ton per ton in this quarter. So can you just give us some idea, some flavor into that? So, so let me first answer, you know, all our contracts, you know, we have different types of contracts with different customers. Not all of them come at the same time at the end of the financial year. In some cases, we might have, say, even a 2-year contract also. So, so that, that's That's the number one, uh, this thing. And then, uh, when it comes to the conversion charges, uh, Amod, you want to touch? Yeah, so, uh, look, the increase in the EBITDA per metric ton, like, uh, you know, Rajesh had mentioned earlier, is on account of the factors, uh, like CTC going up and exports going up and utilization going up, so on and so forth. Uh, there's a contributor to the increase in conversion, uh, you know, rates is not, you know, that significant in the overall increase in EBITDA per metric ton. Yeah, Abhi, this is Dhruv, just to add. Um, so I mean, we've said in the past also we maintain long-term relationships with our clients. And therefore the pricing mechanisms we have with them are, you know, fairly measured irrespective of the demand-supply environment. However, you know, the moment you start supplying higher complexity products, the, uh, the value addition rates are higher, and that plays a larger role than, uh, than a like-for-like sort of price increase. So I think you have to keep that in mind, which is why we keep talking about the mix. Yeah, no, I— so just the sense I'm getting is that, uh, for KSH, their, you know, their pricing power and their bargaining power is sort of incrementally increasing with respect to the customers and the ecosystem. Is that a fair understanding of how the next 2-3 years look like, that your bargaining power is increasing, or do you think that, you know, that is not the case? that helps us in, uh, the EBITDA per ton as well. So that's how we— yeah, no, no, fair. Yeah, I know a lot of people who try to squeeze out the customers on pricing, you know, don't end up in a very good situation. So I completely understand your strategy and that's fair. Just last one question, sir, if I can squeeze in. After this Phase 3 capacity, FY29, what sort of a capacity utilization are you looking at? which will be the main driver of the, of pushing the EBITDA per metric ton up. Yeah, and more of exports, you know, you know. So that's, that's the— I mean, the message here is, of course, I mean, you know We are not trying to increase prices on, you know, we are looking at the product mix, the markets that we, you know, obviously if you have, as our export percentage increases So while, uh, this is Amod here. So, uh, while building an EBITDA per metric ton, honestly, we do not, uh, we'll not factor in an increment bargaining power and increase in the prices on a like-to-like product going forward. As much as the importance we give on supplying higher value-added products within the specialized winding wire, like for HVDCs and 765, For the overall capacity including the incremental capacity? Because you're carrying that 61-62, I'm pretty sure that you'll be, you know, this will be maxed out in the next 12 to 18 months. So with the increase in capacity, what sort of capacity utilization are you projecting or forecasting for FY29, if you can Give us some flavor. I know it's, uh, 24 months out there, but it's— yeah, some— yeah. See, for any— you know, in the past also we've mentioned that any greenfield or say any new capacity that comes in, normally an optimum capacity utilization is about 85% of the total capacity that you install. So here I would say, you know, between FY30 to FY31, somewhere in between, we would be at an 85% optimum capacity utilization on the 72,200 capacity installed. You know, that's the, uh, that's what we would expect. Perfect. Uh, thank you so much for your time. Uh, thank you for always beating your guidance, and I'm pretty sure that this lowballing will continue. So congratulations and all the best. Thank you. Thank you. The next question is from the line of Dikshi Jain from InCred Research. Please proceed. Hi, congratulations on very good numbers. I wanted to understand the demand and the supply scenario for CTC, uh, and specialized wire in general. So now we have orders, uh, test orders that we've received from Europe. What kind of orders can we expect from them? One, and what is the current demand scenario in India? Because a lot of our customers, a lot of the transformer companies themselves are putting up capacity for CTC. So what we have said in the past also, you know, like say around by FY30, we expect the overall CTC, uh, you know, volume— I mean, the demand to be approximately around 120-odd thousand tons to 130,000 tons in India. Now that's of course not taking the export piece into account. Export is of course much larger. Which goes out of India. A bulk of this demand obviously, you know, comes from the power transformer segments. And as you go into more of HVDC, then HVDC will also add incremental. 765 will also add incremental, uh, you know, uh, demand. Now I think one thing that you were talking about is what if customers within India are also backward integration I mean, we've heard of one or two players, but I mean, we are quite diversified that way. You know, we have, uh, you know, almost, uh, I would say, uh, 40% of our revenues for specialized wires or CTC comes from exports, and we are quite spread out when it comes to that. Okay, uh, another question was regarding Another question was regarding— so earlier we mentioned that we have some extra land on the existing capacity where we can do a brownfield expansion. Is the same land being used for the expansion currently? And there is an increase in the lease liabilities on the balance sheet. What is this regarding? Is this the, uh, is this regarding the new CAPEX? Right, so this is Amod here. To answer your first question, uh, the new capacity, yes, is planned in our existing land, and the additional land, 10 acres, that we are purchasing is for further capacity expansion. that we may plan going forward. And the second question on the lease liabilities is the upcast plant is on a leased, uh, you know, premise, and that is what has caused the increase in the lease liability. Okay, thank you so much for taking the questions. Thank you. The next question is from the line of Pratik Dharamshi from Union Mutual Fund. Please proceed. Yeah, thanks a lot for giving the opportunity. Many congratulations, Rajesh ji, for stellar set of numbers. Uh, my question— thank you— was around— yeah, my question revolves around the demand scenario. We are putting, um, more capacity coming on stream by '29 to 70,000. Uh, in the past call you had mentioned, uh, you had signed a 5-year agreement with Hitachi. And also potentially more, uh, your customers may think through. So any update, how is this development evolving into, uh, in terms of long-term agreements? And, and not next 2-3 years, but how do you see next 4-5 years based on your engagement with the customers in terms of the demand environment? For CTC. Yeah, so when it comes to the transformer business, you know, as you know, as you said, there are several customers who are in expansion mode. Some of the capacities already come in, some of it will come in phases, uh, you know, in different geographies that we see right up to 2032. And of course, all, you know, a lot of our customers have order books up to 2032, or say, or beyond also. So in this environment, what happens, you know, with these transformer companies is that one is, if you are a qualified supplier they want to ensure that you— there is a continuity of supply when their capacity comes up. And, uh, you know, qualifications in this business obviously takes a long time. So they would rather, you know, if their current suppliers are, you know, uh, they should have the visibility to expand their capacity also. So, uh, Your Hitachi, you know, that's, uh, we have a 5-year framework agreement. We are still putting, uh, you know, that in terms of volumes and everything, we are still to get that in place. Similarly, with, you know, a few other, uh, you know, customers also, this discussion is there, and this you know, we would be able to really, uh, come to a— I mean, we would be able to really— maybe in the next 2 quarters we'll be able to give you an answer on this long-term agreement part of it. But yes, The general tendency is to now have a longer-term agreement, but then in the past, which was about, say, every year, there was a renewal in the agreement that was coming up. Yeah, that's really heartening to hear. So my question, so this is around, so what's happening with US, which happened yesterday, and talks about some slowdown on the AI data center CapEx-related stuff. So the orders we have on hand are the order books are full. Do you reckon any impact potentially coming through from any sort of a slowdown which happens eventually on data center side in the US, or we are relatively comfortable at this juncture that this may not have material impact on us if at all this, this pans out? And lastly, the margin profile of this long-term agreement, are they in terms of return terms, are they similar to what we enter into shorter-term contracts as Dhruv, you want to answer that question on the US part of it? Yeah, so, um, whether it is the US or Europe or even in India— India is obviously much earlier stages. AI data centers, etc., is one of the newer, uh, additions to the T&D story. The T&D story is well and truly established with or without it. So when you're talking about, you know, grid infrastructure build-out renewables, etc., that is very much still in play for us. You know, the power generation, transmission, etc., plays on, uh, Um, you know, this is still work in progress, and the idea would be that just as we have, uh, the ability to provide visibility on supply they would have the ability to provide visibility on demand as well as unit economics. Could you remind me again? Yeah. Hello, the second question was on prices. Yeah, yeah, yeah. So I, I think, uh, Rajesh, you can take this, but I think broadly a much larger role, as I said, with the existing drivers at play. For the AI data centers, there is special types of transformers which we do supply, but today is a very small component of our business, so we don't really anticipate any significant change, uh, you know, if it was to reverse. Obviously, if there is ultimately long-term growth, then we would benefit from that. Um, and the second question was So that's still being worked out. But clearly that the intention would be to be mutually beneficial to both parties. Great, that was very helpful. All the best and wish you a happy Diwali in advance. Yeah, thank you. Yeah, thanks, Pratik. Same to you. Thank you. The next question is from the line of Surya Narayan Nayak from Sunidhi Securities. Please proceed. Yeah. Uh, yeah, thank you. Uh, congratulations for the great set of numbers. So, uh, most of the questions have been answered. So a couple of questions like, uh, is there any, uh, change in the, uh, you know your application needs, uh, you are seeing, or it is heavily tilted towards, uh, you know, the high end of the T&D segment? Because, uh, during the plant visit, we were actually told that, you know, some of the Uh, you know, AC component makers, you know, we got inquiries. So any update on that? So, uh, so as we approach towards the summer part of the year So can we expect some, some sort of increase in those segments? If you can broadly give, uh, the E&D and other applications, one. And secondly, Is there any inquiry coming from, uh, the GCC geography, uh, I mean, during the period which you— we have not entertained? You know, so, uh, in terms of revenues, what was the capacity? So, no, sorry, can you just repeat your first question? And one question, yeah, basically, basically I'm asking the application split if you can provide. So you have the capacity? No, the first one is saying AC compressor. We have— no, no, in terms of the capacity split, right? I mean Between specialized, standard, we can give you that answer. Uh, between specialized and standard, our revenue split is 75-25. It remains the same. You know, uh, specialized and standard. And standard wires is something that goes into the AC segment, uh, and, uh, the segment, you know, we don't see any big change coming in terms of the standard versus specialized revenue going forward also, uh, and Um, you know, I mean, the seasonal impact that you were talking about, I mean, that's something that, uh, we are— it's still work in progress for us when it comes to the standard wire because the standard wire capacity we have just increased. So now we will focus on that utilization going forward as well, you know. And so any new geographies we have, because, you know, we— our objective is to raise the export component from 30% to 40%. Which is well on track. So, uh, have we received any, uh, or let's say any new orders from the new geographies? Yeah, so I, I mean, in Europe, of course, you know, we are adding a few more countries. Then in the Americas, you know, we have added a few more countries as well. And Middle East, of course, is a traditional market for us. And I think one of the questions you asked about was in the GCC, you mentioned that has there been anything that you refused? Is that— isn't that what you asked? Yes, yes, yes, yeah. But I mean, GCC is still, uh, you know, if you look at it from an overall, uh, revenue split Uh, in, uh, you know, Middle East is still around the 10-11% mark itself, you know, for us. So we've not really seen any reduction or an increase in the Middle East side of it. Okay. Okay, okay, thank you. Thank you. The next question is from the line of Mayank Chaturvedi from HSBC. Please proceed. Yeah, hi gentlemen, thank you for the opportunity. Um, on this, uh, export, um, HVDC transformer trial order that you've gotten, uh, can you confirm, is it from the same group that you're currently working with on the HVDC Uh, side of things, or is it a different group? So HVDC, I mean, if you see globally, there are— rather, within India also, there are 4 major manufacturers, which is your Hitachis, your GE, or the Siemens, and say in India it's about BHEL. So it's, you know, one of these 4 itself, uh, and this is of course a trial order that we are working on, uh, but once that gets, uh, you know, that's proven, then it opens up the possibility for future HVDC transformer orders as well. Okay, and, and, um, what is the delivery timeline for this order? I think within this financial year. Okay. Okay, and, and would you know any customer— would you know the customer demand for HVDC transformers that is there within their order book, and would you be able to share that? I mean, we only know right now, I mean, you know, what's already been ordered by the Hitachi and BHL, that's already out. But, uh, the new one, of course, you know, as of yesterday, what I understand is now GE has been awarded the contract, although the last time around it was more. So I mean, that would, uh, I don't have the exact number of transformers on me right now, but we can maybe share it. No, on the India piece, uh, I'm aware of what the ordering is, but this— for this particular European HVDC transformer order that I've gotten, so how is that customer, uh, order book is looking like. I don't, uh, right now, you know, it's a trial order for 2 transformers, but once we, uh, you know, have that qualification then I think it opens up the possibility for all the HVDC transformers that they are currently executing as well as in future that they would execute for us. All right, all right. Yeah, that's it from mine. Thank you. Thank you. The next question is from the line of Ishaan Modi from AMC Asset. Please proceed. Uh, thanks for giving me opportunity and congratulations on good set of numbers. Uh, my question is more on a beta part, and I know you answered many times, but my question is like for H2FI27, and before our Phase 3 capacity comes in a picture, like Between those timelines, what can be the sustainable EBITDA pattern? Are we revising our guidance upwards from the 75,000 metrics per ton here? Look, correctly mentioned. Okay, one second. Let's do it. Yeah, yeah, go ahead, Dhruv. You, sir. Yeah, so, uh, Ishaan, I think again Like we clarified last time, uh, the 75,000 to 85,000 is a long-term sustainable rate, we believe, given the overall mix of the business. It is not intended to be a guidance for any quarter or specific year. Um, quarter to quarter, we've said that there could be points in time when it exceeds that. Given the various factors that we've called out, whether it is a specialized mix or exports or currency or whatever else. So beyond that, we are not in a position to give you know, specifics around, uh, second half or any specific year. All right. And for the, like, whatever the current order trajectory you have, are you— what is the— how are you seeing the export revenue mix improving and the specialist wire mix improving? राइट पर द करंट ऑर्डर बुक For the current quarter, what future he's talking about, is it improving? We said that our objective over the next few years is to return exports to its historical average of around 40% of total revenue. Um, so that is a multi-year sort of process that we will Uh, pursue. And in terms of specialized and standard, clearly with ultimately more specialized wire capacity being added in Phase 3 Once that is complete, the mix will skew more so towards specialized wire than it is today. All right, and my last question is around the AI data center in the US. So, uh, like, as per your client communication, after the new election result, are you seeing any kind of possibility that AI data center uh, CapEx can slow down over there, or like, how is the visibility for that particular segment? See, when it comes to the US, you know, we have a number of our own customers adding capacity. In fact, some of them are greenfield facilities. Which will come up in the next maybe 1 or 2 years as well. So we have not seen any slowdown as such from these customers. Of course, but, uh, you know, I— and, uh, not, you know, as and when that happens, we would really want to look at that. But, uh, as of right now, you know, US anyway in terms of overall contribution is less than 10%, you know, of the revenues for us. Okay, so as of now there is no hint that CapEx is slowing down, right? Sorry, no, you don't, don't lag. Thanks. Okay. Uh, yeah, so therefore from my side, thank you very much and wish you all the best for future quarters and happy Diwali to all the team. Thanks, Ishanya. Thank you. Next question is from the line of Rutu Chavan from PhillipCapital. Please proceed. Hello. Yeah, hi, hi, sir. Thank you so much for, uh, giving this opportunity and congratulations for excellent set of numbers. Uh, sir, I wanted to understand, uh, what is the update on the T-Wire that we were doing a pilot, and is there any sort of capacity addition in this additional 13,000 that we are adding? So the peak wire is still, you know, as we have said, see, EV is the longest, uh, development cycle for us. That means whatever investments we are making on the EV side right now The real, uh, you know, for it to truly translate into a volume business, I think it would be somewhere in FY29 onwards. Because I mean, we have to, you know, we have to qualify for these programs, etc. Peak, of course, you know, it's a— in the overall grand scheme of things, it's a much smaller capacity as of right now. But, uh, and this is something where we have to educate the customer and, uh, you know, spec the product in, uh, with the, uh, within the local market. So I think, you know, right now the trials are through, we have got samples made, we are talking to several customers, uh, But I think really, uh, for it to make a meaningful difference, I would have to say it will be post-FY29. Understood. And sir, in terms of, uh, our capacity that we have right now and the additional 10 acres of land that we've bought, How much additional capacity can be added over there? Yeah, so, so with this 72,000 metric tons, that pretty much maxes out on our current land footprint, right? And that is why with the 10,000, uh, I mean, 10-acre land parcels that we are taking that would give us approximately, say, about, uh, 20,000 tons of capacity additional if required. Understood. And, uh, as we can see, we've already done 16,000 tons of, uh, I think, uh, volumes in just H1. So is it fair to assume that H2 would— is slightly better than H1 and would have higher volumes than what H1 had? So, um, yeah, this is Amod here. So like we have said earlier, uh, the current year we are expecting, you know, uh, the around 25% increase in the quantities, 25-26% increase over the last year. If you take that into account, our second half is expected to be better than the first half. Understood. And that's it from my side, sir. Uh, congratulations again and happy Diwali to all of you. Sure, thanks. Same to you. The next question is from the line of Ashish Seth from Venture Securities. Please proceed. Good morning, sir. Uh, congratulations firstly for wonderful set of results. Uh, we have been performing, uh, well continuously, so I wanted to, uh, ask a question on the export side. So we are confident that the export Uh, export revenue should scale up in the coming future. So can you give us a visibility on this? Realization and EBITDA per ton for, uh, export versus domestic, and how do you see the geographical revenue mix influencing the company's blended EBITDA going forward? and the profitability, uh, few to 5 years down the line? So, uh, as far as the export business is concerned, we've, you know, said earlier that the profitability is 3 to 5% better than the domestic. And, uh, that has been the historical trend. Considering the strong tailwinds that we are having in the export market, we do not see much difference in that, different, uh, that premium that we get in the export market. Uh, within markets, uh, how the sale is going to be, uh, going to be there. If you see Middle East, we are not seeing any slowdown in the, in the business. And, uh, Europe, you want to just— yeah, so, so I mean, uh, let me just— I think your question was also that going forward, uh, what's going to be the geographical mix, right? I mean, that's what you were asking for. So we, you know, like roughly I would say, you know, about less than 10% of the business of the revenues come from Europe and the Americas. Middle East is also approximately around 10%, and about 73% is, uh, the India— within India is what we supply. So overall, uh, if you were to further break down that exports, then in terms of revenues, I mean, I just— let me just look up this number. All right, yeah, so I mean, so, so going forward, but you know, your, uh, your question was on the EBITDA per ton. I mean, as Amod said, uh, you know, there is a When we export, obviously it's a higher margin, and we've been working on with several customers in different geographies. So far. And, uh, in the past few quarters where we were supplying the test, uh, you know, on a test basis, and now we are seeing that those volumes to be going up incrementally higher. And of course, you know, we would like to see above— I mean, right now we are at about 32% of our revenues comes from export. Going forward, we'll try to inch it up to over the next, say, 1 or 2 years bring it back to the historical 40% of the overall revenue as well on an expanded capacity basis. Okay, got it. So, and these exports, uh, as these OEMs expand their global manufacturing capacity, so, uh, we think we have Uh, we tend to use it as benefits of our existing vendor approvals, or fresh qualifications would be required. Wherever we are approved already, we don't need to get approved once again. So, you know, there is an element of, you know, increasing the wallet share with the customer. So let's say if I have a customer in export and he is adding capacity as well, I mean, you know, the first primary objective is to keep that wallet share. That you have with that customer. And if you see, almost all of our export customers are basically— I mean, what we export is basically to transform companies around the world. And all of them are expanding capacity, and the idea is to keep that wallet share. And then the second thing is, of course, to gain market share in the export exports because obviously, you know, India is a— has an advantage when it comes to, uh, you know, we have the advantage of supplying quantity as well as the quality. And once we have these qualifications, I think, you know, we would be adding more geographies and more customers also going forward. Okay, got it, sir. And one last question on the internal threshold side. So as KSH scales up, what internal thresholds we have set for our ROC leverage and gas emission. So, uh, as far as ROC is concerned, we, uh, would expect— our target is always to have an ROC that is about 20%, inching closer to 25%. As far as the cash generation is concerned, our first target was to have— be cash positive from operating activities, which we achieved in this first half year. Now the question is how much more we can inch it closer to the gross cash accrual, which is your PAT plus depreciation. And our— it's a multi-quarter effort, and we'll try to be as close to the GCA as possible going forward. Leverage also. And as far as leverage is concerned, currently we are at 0.38x and we were at 0.51 in the last quarter. Uh, we do not really— our target is to not have the leverage beyond the existing levels too much. Obviously, when the long-term debt comes, it is expected to slightly go up in the interim period, but on an optimum utilization on the entire capacity of 72,200 metric tons. We do not, you know, our target is not be very high as compared to where we are today. Oh my God, sir, thank you for answering all my questions. Happy Diwali in advance. Yeah, thank you. Thank you. The next question is from the line of Darshan Pandya from Vintra Capital, please proceed. Yes, that's it. Yeah. Yes, sir. Good morning and thank you for the opportunity. Uh, so my question revolves around, uh, are we using, uh, the new capacity of Supa? That is, you know, now the capacity is around 57,000 tons. So, uh, this H2, we will be seeing some, uh, capacity being utilized in this H2, or we will see everything coming in the next year only? No, there will be some capacity utilized in H2 of this additional capacity. Okay, and the rest will come to this, and this 75% capacity utilization is the peak that we can do, right? Or we can even pinch, uh, more towards 80-85%. Mark. At optimum levels, we've maintained that we can go up to 85%. Over a period of time. Okay, fair. And, uh, so we've been hearing that, you know, you have given this 85,000 per ton guidance. Uh, just to understand, sir, uh, from last quarter it was 93,000, then it went to 1 lakh 1. What changes in between that, that, you know, our EBITDA per ton increases? And what, as per you, if even we can go beyond this to probably say 1 lakh 10 or 1 lakh 20,000 tons, just to understand what is happening in there. Look, I think we mentioned in the earlier discussion, so what is, you know, caused this EBITDA per metric ton to be as high as 1 lakh is one is export percentages. If you see in this quarter is as high as 32%. Earlier, it should be 26%. That's maybe— yeah. No, no, no, I think not. Yeah. Go ahead. Yeah, within specialized winding wire also, you know, our sale to, uh, you know, higher higher value-added wires within the specialized winding wire was also higher in this quarter. A weaker rupee also helps us. So all these are multiple factors that, you know, uh, yeah. help the EBITDA per metric ton to go up. Now again, I'll just repeat that, you know, this EBITDA per metric ton can vary within quarters basis, these factors. It may go up or go down, but, uh, I'll only caution that we should— what we are comfortable on a longer-term basis at an optimum utilization level is ₹85,000 per metric ton. Sir, and, uh, one last question. Have we given any guidance for next year's volumes that we are anticipating? No, correct. No, we have not given any guidance as such. Okay, sir. Uh, thank you so much and all the best to you and your team. Happy Diwali. Thank you. Thank you. The next question is from the line of Rohan from Spark Capital. Please proceed. Yeah, thanks for the opportunity. Uh, most of my questions have been answered. Just one clarification. I do understand that the incremental volumes we do hereon will have a more standardized wire component and hence will bring down EBITDA per ton versus where we are. But when I look at the specialized absolute volumes or CTC within that, that we've done in Q2, is that absolute volume also likely to come down hereon, or it will grow but just lower than standard, and arithmetically our EBITDA per ton will come down, but absolute EBITDA will be defended at the Q2 level. So, uh, this is Amod here. Uh, so, you know, we have in the specialized winding wire and the T&D space, there are strong tailwinds that are there. The demand cycle we are not seeing to go down over the next few years. So we do not anticipate a decrease in the volume sold in absolute terms going forward, but like you correctly mentioned, when the standard winding wire quantity goes up and the share increases in the overall volume, the EBITDA per metric ton will rationalize to some extent. Okay, so I got my answer. Yes, so it is only an arithmetic calculation, numerator-denominator effect, that brings down EBITDA per ton, but it does not actually bring down, you know, the absolute EBITDA that we've been delivering. Yeah. That's right. Yeah, so the, uh, the EBITDA per ton is a blended rate that we, uh, we report, and that will be dependent on the mix contribution, but growth in standard wires doesn't have any bearing in the profitability of specialized wires. Understood. Yeah, thank you and all the best. Thank you. Thank you. That was the last question for the today. I now hand the conference over to the management for the closing comments. Over to you, sir. Yeah, thank you everyone and, uh, for participating in this conference, and we are happy, we are happy to answer any questions at any point later on in time. So thanks a lot and happy, happy Diwali to you as well. On behalf of KSH International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.