Ladies and gentlemen, good day, welcome to Hitachi Energy's India's Q1 FY 2024 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 zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. N. Venu, MD and CEO, Hitachi Energy India Limited. Thank you, and over to you, sir. Yeah. Thank you, Jico. Good evening, ladies and gentlemen, and thank you for joining us for today's analyst presentation call. I hope you're all doing well. Today, we announce our results for first quarter of the financial year 2023, 2024, and in the next 20 or 25 minutes, together with our CFO, I'll take you through our performance during the period ending June 30, 2023. I'll also read out the slide numbers for ease of reference. I hope all of you are. We already uploaded this presentation in the website, and I'm also sharing with you. With me today, I have our CFO, Ajay Singh, and Company Secretary, Poovanna Ammatanda, and Manashwi Banerjee, Head of Communications and Investor Relations. As we entered, the first quarter of financial year 2023, 2024, our focus remained on balancing the operational complexity and the supply chain issues, efficiency to preserve Hitachi Energy India's growth momentum. Whilst persistent delays in chips and electronics led to lower revenues in the quarter, sustained operational excellence efforts provide visibility in the, in the near term. We continue to convert opportunities emanating from energy transitions across India and also the rest of the world. If I move to the next slide three, as we review the quarter, I want to recognize and express our gratitude to our most valuable assets, that is our employees. Our commitment to their safety has been unwavering from offices to factories and on-site locations. They returned this with their ownership on safety matters. From subcontractors to trainees, continued immersive training for cascaded through the teams by specialists to continually retraining our license to operate. When it comes to safety, you all know that, you know, these are the basic license to operate. We never look the other way. Our consistent efforts were acknowledged and recognized for excellence in health, safety, and environment practices by our discerning customers across verticals. We have received a certificate of appreciation for our contribution towards improving virtual culture in one of our project sites, MP Power Transmission Package. Also received letter of appreciation for our good HSE practices during warranty period of HVDC station, Raigarh. These are just a sample, and we have several of these to show how we drive safety in letter and spirit in all our workplaces, be it factories or project sites or our offices, et cetera. Moving to the next slide. The journey to net zero 2030 requires consistent efforts, and it's encouraging to see various teams initiate considered programs. In addition to company-wide actions, at our largest manufacturing location, Maneja, some of you have visited during our, you know, physical analyst meet. We conducted sustainability master class for developing a larger pool of specialists who can advance net zero in our operations. At our HVDC project site in Mumbai, which we recently started the site, as you can see from the picture on the right side of the PPT, we have installed 15 kW rooftop solar, which will help us avoiding close to 500 tons of CO2 per year. We have also installed solar-based mobile charging facilities in rest sheds of the workforce colony at the site that can power multiple devices at a time. We are transitioning to the services of EV care provider, starting from our Delhi NCR region. We have placed sustainability at the heart of our purpose, advancing sustainable energy future for our partners and customers. With all these initiatives, some of these examples, since embarking on our journey towards net zero in 2021, we have achieved 45% reduction in our carbon footprint to enable a sustainable energy future, not only for today's generation, but those to come. Moving to the next slide, during the quarter, we received orders worth INR 1,147.5 crore, which is up 6% year-on-year without considering the HVDC order, which we have booked last year, corresponding last year, same day, same quarter. Some key order wins in this quarter include over 200 traction transformer by BLW, CLW utilities and new industries led orders for various ratings of GIS, dry-type transformers in India and also in the region. Power transformer orders from data center and other EPCs, traditional power and renewable integration, utilities continue to drive orders for AIS substations, and the GIS orders for some of our export orders. While a focus on portfolio led to a diversified order growth, revenue was INR 1,043 crores for the quarter ended June 30, 2023. Performance in this quarter is primarily affected due to continuous delays in chips and electronics, a lower revenue base, and operating fixed costs impacted profitability. Profit before tax to INR 3.4 crores, and profit after tax is INR 2.4 crores. Despite the short-term challenges, we remain optimistic with the continued order momentum, and stay focused on increasing operational efficiencies while expanding our portfolio in high growth segments. The accelerated energy transition presents a medium to long-term opportunities for power technologies, particularly in our high growth segments, including renewable data center, HVDC, transport, et cetera. At the close of our quarter, order backlogs stood at INR 7,024 crores, providing a revenue visibility for the coming quarters. Moving to the next slide, the energy transition represents one of the most significant opportunities of our time. We are championing the urgency and the pace of change needed to reach net zero. With our pioneering technologies and solutions, we are helping to accelerate the carbon neutral future, improving quality of living for today's generation and those that to come. By applying the intelligence of digitalization, we are enabling customers to plan ahead, make better informed decisions, and create more value in a rapidly evolving landscape. During the quarter, we saw a significant rise in demand for our digital services. Also, staying ahead of the curve, we successfully type tested our prototype unit of 765 kV, 500 MVA transformer to meet new specification criteria by Central Electricity Authority. Collaboration is central to making the energy transition possible. Throughout the quarter, we continued to partner with various industry stakeholders, from technology interactions with customers and stakeholders, to them visiting our factories to understand our capabilities, leading industry discussion not only on technology, but also highlighting the importance of diversity to tangibly contribute to Indian energy industry. We also conducted training and learning programs for over 50 students from Industrial Training Institute at our Maneja facility, ensuring that all stakeholders are working in tandem towards the same goal. Our continued efforts have further cemented our reputation as a reliable partner and a pioneer in power technologies, which was recognized by ET Energy Award this quarter. Moving to the next slide seven. India remains, you all know better on the left-hand side, but let me also dwell a little bit more on the right-hand. India remains one of the fastest growing major economies in financial year 2023-2024. RBI predicts that country's GDP is expected to grow at 6.5% for FY 2023-2024. The inflation will also drop two-year low in May 2023. Furthermore, GST collections for June rises 12% year-on-year to INR 1.6 lakh crore. There is a decline in IIP's electricity index for the period of April to June 2023. The growth drivers for the industry remain intact and tracking upwards. For example, the planned investment of INR 1.5 lakh crore as incentives to 12 states for sectoral reforms. We have discussed before, the long-term growth drivers are intact. On the renewable front, 30 GW has to be added annually to reach 290 GW solar target by 2030. In the transmission segment, one HVDC project expected every year. For industry, their revival of private CapEx is likely driven by government policy and various schemes, PLIs, etc. Metro, high speed rail electrification, cross-country electrification, rolling stock upgrade, fueling the growth of transport segment. Tremendous opportunities in data center segment as the industry is expected to doubling its capacity by 2025. DISCOM upgradation and modernization, and RDSS schemes will lead to distribution growth over a period of time. Moving to the next slide number eight. Just want to provide some color on the orders received in this quarter. Various solar power plant of projects under the final gigawatt renewable generation capacity by 2030, are generating demand for grid integration technologies. This is complemented by a comprehensive plan to strengthen the nation's transmission system with green energy corridor to bring clean energy to households and industries, have been driving robust growth opportunities for the company during the quarter. We are already contributing to various projects. Have made significant strides in this direction, securing cumulative orders for the integration of 1 GW of solar power during the quarter, and a 130% rise in the orders from the previous quarter. Data centers remain a high growth segment in our strategy. Year-on-year growth has shoots up to over 200%. Thanks to push for 5G in India, data localization regulation, data center policies has drives the growth. The sheer potential of the market, we see the trend continue for a couple of more quarters and years. Moving to rail and metro, Indian Railways' commitment to achieve net zero by 2030, along with the electrification of high-density corridors, and also the rolling stock modernization, have been another significant area of growth for us, with a 79% year-on-year growth in that. Reflecting the nature of customers' order this quarter, we saw an uptick in direct to customers and also the split is equal between utilities, industries, and transport infrastructure. Moving to the next slide, as we are talking about, service and exports are two growth levers in addition to the domestic, various high growth segments. Our order mix reflect our diversified portfolio across our installed base, and our focus on leveraging our key growth markets and capitalizing on market opportunities. We successfully secured, you know, key market wins, providing us with a solid and steady momentum, especially in services and exports. Service orders have continued to hold a positive trajectory as we posted 40% year-on-year growth. One of the key wins are field study orders for our upcoming Leh- Ladakh HVDC project. We won the HVDC spare order from the state utilities and GCP spare order from a mining giant. We also secured our first order for a digital surge counter and leakage current monitoring system from a steel major. When it comes to the exports, in this quarter, our exports contributes, contribution grew to over 30% of total orders. Orders from renewable and rail segments in Africa, and demand of Power Quality Products from the U.S. and Chile to Iraq, illustrated a world in energy transition. Some of the key wins during the quarter were for GIS orders of 400 kV from power utilities in Singapore and Hydrotech Industry in Greece. We also received a 245 kV switchgear order for Tanzania Rail, and transformer order for wind farm in Morocco. Our newly established factories in Doddaballapur for HP power quality and Chennai for HVDC are expanding their export order contribution. With that, now I hand over to Ajay Singh, our CFO, to walk us through the next slides on the financials. Over to you, Ajay. Thank you, Venu, and good evening all, and hope you all are doing well at your end. Well, we have been navigating the unstable market conditions using our long-term strategy in place to manage the impact of the global macroeconomic challenges. During the quarter, the company booked orders worth INR 1,147.54 crore, which is a modest increase of approx 6% YoY, without HVDC order in the corresponding quarter. Revenues for the quarter was INR 1,043 crore, which is again 5% growth YoY. However, the profit before tax, basically stood at INR 3.4 crore, and profit after tax, basically INR 2.4 crore, which also demonstrates that double-digit YoY growth on the low base. Operational EBITDA, if you see, it is INR 9.4 crore for the quarter. Compared to the last quarter, revenues have come down, which has impacted the bottom line. Even in the face of the persistent difficulties with consistent order growth, the order backlog stood at INR 7,070.9 crore, providing us a visibility of 20 months of revenue, and we are optimistic of the stronger growth in the long term. If you go to the next slide, we see that we have been discussing the ongoing macroeconomic issues over the past several quarters. I will share an update on how the numbers fared during the last three months. Let me take a moment to walk through this slide, specific slide in further detail. If you see the table, it gives a clear picture of our relentless pursuit for improving the bottom line and a progressive margin recovery. If you see the material cost, it is around 16.9%. The personal expenses is 111 crore, which is lower than the last quarter. Other expenses has increased to 60 crores. Depreciation, there is a slight increase in depreciation, and interest cost basically is more or less, I will say, at the same level. The chart on the right side of the table serves as a bridge, breaking down the change in the PBT quarter-on-quarter, the main elements affecting our profitability, if you see, were continued delays of chips and electronics, along with the fixed costs on the low revenue base. If you see the bridge where you will see roughly, we have been impacted in this particular quarter, approx 20 crores on account of the shortage of chips. We have a further delta on account of the lower base, where we got impacted with the base volume mix, and the material cost impact is around INR 29 crores. This is how we have reached to INR 3.4 crores in this particular quarter. With this, I'm handing back to Venu for the closing slide. Thank you. Thank you, Ajay. Going to the next slide. As we move ahead, this is my last slide before we open the floor for the questions. As we move ahead, our growth levers remain consistent, and we will continue to focus on high growth segments, which we have been talking about. High growth segments is renewable, transmission, data center, HVDC, industrial, et cetera, that align with our core competencies and the evolving needs of the sector. We continue our investment in talent and capacity for the high growth segments, leverage our newly established factories to strengthen footprint and grow market for service digital through pilot and adoption, POC adoption, and familiarity, et cetera. In our operations, we continue to reinforce the culture of health, safety, and environment sustainability in all our spheres of our business. These remain what we call our license to operate, through which we deliver significant technology progress and value creation for our customers, bringing strong societal, economic, and environmental impact. In our view, we are all well positioned to capitalize with bringing operational agility and productivity by continuously optimizing our operational efficiencies, focusing on cash over revenue and building business resilience. As we enter the final phase of the ongoing shortage of chips and electronics, we are well positioned to capitalize on the pent-up demand, sequentially improving our performance on the revenue and on the bottom line. Our purpose remains to advance a sustainable energy future for all. We look forward to delivering this with a profitable and sustainable growth. With this, I close my presentation and open the channel for the questions. Thank you very much, ladies and gentlemen, listening to me. Operator, please open the floor for the questions. 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. Our first question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Yeah, hi. Hi, Venu. My first question is on chip shortages. I just wanted to understand contractually, how with the customer, how is this issue taken care of? In case of a chip shortage, is the cost taken on us or does the customer invoke any liquidated damages or LDs, and we have to bear the losses? Thank you, Parikshit. I think, if I understand you correctly, how our customers are treating on these delays, right? No. Yeah, as you know, you know, this issue is, in our view, across the industry. You know, some people may be, some companies may be, you know, slightly better or lower, so that's what is the thing. Otherwise, this is an industry-related issue in that. We have been very open and transparent with our customers, and we have been always notifying to them about their thing. Fortunately, most of our customers do understand, and we are also trying to prioritize it wherever the customers are really requiring this commissioning purpose, et cetera. That way, we are able to manage in a much more orderly manner, I would say, in that. So far, we have not seen any major LD on account of this, by imposing the customers. We are very open up front with our customers, transparently telling them and wherever the customers are requiring, then we are able to divert some of those chips, make those panels ready, and ship those substation automation system, et cetera. It is INR 20 crore, negative impact on profitability on chips. What is it? Is it more of an accounting treatment, the cash, purely a cash treatment, cash on account of cash now? Maybe I think Ajay want to answer that? Thank you. See, this INR 20 crore impact on profitability is mainly because of this chip shortage. We have lost roughly revenue of around INR 68 crore, which has impacted the bottom line. As Venu was mentioning, the chips, basically, in the industry market, we still see that on the supply side, there is a strain, basically on the analog and MCU part, where we see the chip shortage still continues, and that is where we have got impacted, and that is how this impact has come in this particular quarter also. Basically, it's a lot of revenue. We could not revenue that, and that's the reason it has come in. It is not a cash loss, right? I mean, it's not actually a cash loss, so we will recover that as and when we supply those. It is not a cash loss, not a cash loss. It's a timing, basically. Okay. Okay. My second question is on demand side. You said on the slide, you have given various segments where the demand continues to remain very strong. On the supply side, if you can help us understand how is the industry capturing the capacity utilization right now? Given such a strong pipeline, across all these segments which you operate in, when do you think the industry will run out of the capacity, and maybe some pricing power will then come, which can help us reach our maybe 15% kind of a long-term EBITDA margin? Yeah. Again, we've been, You're talking about the capacity utilization of our factories, Parikshit, if I understand you correctly? Yeah, industry as well as your factories. Given the context of how the industry capacity and your capacity, when given the demand scenario, which seems to be very robust, how will the pricing power and the margins play out in mid to near to midterm? Right. I don't give you any, you know, forward-looking for our company, but let me give you a little bit of industry, back, so that you understand it, correctly in that. You know, you probably, all of you would have read the recent, you know, Central Electricity Authority revised, targets, where it has set, you know, 777 GW of, installed capacity by 2030, and they very clearly, quantified out of that 290 GW of solar, presently 68 GW. We basically want to do at least more than 4 times to do that, okay? On, on a wind standpoint, from 43 GW to 100 GW, and that is 40 GW of, battery energy storage, and 500 GW of interstate transmission thing. These are all quite a big, you know. To reach that, you've got to do, depending upon what, whether it is a wind or solar or other transmission, anywhere between two to four times what we have been doing it now. That's the bigger picture of that. Taking from that, you know, some of our factories, for example, you know, some of our lines for our large power transformers, we are full in more than, you know, 18, 20 months in that. We are also looking at expanding it organically, to, you know, to remove some bottlenecks in our production processes, et cetera, and doing some quick investments, you know, in improving our capacities. That's the one part. As you know, we have seen this picture at least, much ahead of the curve, and that's why we have, you know, inaugurated three new greenfield factories in the last financial year. Those things will come handy in handling those kind of, those kind of, requirements in that, right? We have been, we are a... If I talk about ourselves, we are a, we have been in India, we are investing in India, and we remained committed to that, for a long run, and we have been continuously, looking at both, setting up a greenfield factories versus, also, you know, expansions of the brownfield factories. Sorry to interrupt, Mr. Parikshit. May we request that you rejoin the question queue for follow-up questions, as there are several participants waiting for their turn. Thank you. Participants connected on webcast, please click on the Audio Question button below the media player to ask a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. Our next question is from the line of Renu Baid from IIFL Securities. Please go ahead. Good evening, team, and thanks for the opportunity. My first question is, you clearly highlighted a very strong jump in services, and probably that is reflecting in high gross margin this quarter. Can you also share some light in terms of how is the status on some of those projects which were on a higher cost basis and carrying lower margins? Are all those old orders behind in terms of execution, and can we incrementally expect on an annualized basis, gross margin improvement to sustain? No, I think. Can you repeat, Renu, first of all, good evening. It's not very clear. Can you please repeat, if you don't mind? Sure. My question is, first, if you look at this quarter, services, as you mentioned, have seen a very sharp growth, which probably is also reflecting in higher gross margin profile of almost 39%. I was wanting to ask, are the old low-margin orders completed in terms of execution, or do they still continue in the backlog? On an annualized basis, can we expect the gross margin mix to start improving from last year's low? Let me answer in two parts. What we have shown on the services and exports is basically those are the orders we have secured in this quarter. Revenue of that will come, you know, over a period of time. That was the thing. As you recall, our focus on exports that, you know, in the beginning of our company, we started with a 15%, then we set ourselves a target of 25% of exports, and then you recall we already reached last financial year, and we continue to maintain that, even though this quarter is slightly higher. We believe that we will be in the-- If you take as the overall year, we will be in the 25%. Same is the case on the services part. We said, you know, services, we were having a high single digit as part of the thing, so we are moving towards a double digit, close to 15% over a period of time. That was our strategy, and we are working towards that strategy, and you can see the results of that. The revenue of that will follow through over a period of time in that. Sure. Secondly, in terms of, can you share the status of the HVDC order execution? You have mentioned that it started mobilization at the site, but by when do we expect the timeline for the hardware and supplies and the EPC construction at site, in the subsequent two years? Any clarity on that will be helpful. Right. As you know, HVDC project, which has, you know, it will take more number of years to complete. We have started after completing our engineering, and of course, engineering is going on, and the project, as we speak, the project site is, you know, a lot of civil work, et cetera, is happening in that. We will see end of this, or the last quarter of this financial year is where we see a lot of our equipment, like a transformer, GIS, start coming in that. We do a lot of services, now, completing the civil, et cetera, auxiliaries and other things, the equipment will start coming end of this financial year onwards. Got it. Lastly, if Ajay can also throw some inputs in terms of how has been the net working capital at the end of the quarter and updates on the date of the cash position on books? Well, thank you, Renu, for the question. Net working capital at the end of the quarter, roughly, we're getting around 21%, 21%-21.3%. That is the number that is varying. If you talk about the cash, basically, we are sitting around INR 150 crores, roughly, is the cash that we see in our balance sheet. That is where we are placed on overall. Since you talked about the net working capital, yes, we continue our drive on our receivables. We are focusing, and as a management, we are taking all the actions that we need to drive the receivables, and that is on the clear focus on the management. That is how, basically, and also, we are collecting advances from our projects. All these elements, you know, are, you know, supporting us in driving the net working capital on the overall basis. Also, just to add to Ajay, we also consciously, we are also stocking up something. Like, for example, we created a feeder factory. The feeder factory model is that, you know, we should be in a position to, you know, complete and sell the revenues at a quickest possible time, which we need inventories slightly higher than the normal level of the inventory. That's the one. Then now we also have started ordering all the chips, which is required for us on a yearly basis, which will also add up to all those things. It's a combination of that, while we continue to drive on the rest of the things, but we're consciously keeping the demand in mind. W e are also, you know, increasing our inventory. Thank you. Sorry to interrupt. Ms. Renu, may we request that you return to the question queue for follow-up questions, as there are several participants waiting for their turn. Thank you. May I request all participants to use handsets for optimum audio quality while asking a question? Thank you. Our next question is from the line of Mr. Mohit Kumar from ICICI Securities. Please go ahead. Good evening, sir. Thanks for the opportunity. My first question is on the order inflow. Order inflow for Q1 was a little subdued, especially QoQ and YoY, if you exclude the HVDC, if you include the HVDC. While you believe that outlook of investment in underlying industry is improving materially or has improved, my question is: Are you seeing the inquiry pipeline, especially in the transmission, especially for the upcoming tenders? I believe the tender pipeline has moved to INR 500 billion as we speak today. Yeah. No, I think. Thank you, Mohit, for your question. We are talking about orders, you would have seen, yeah, you say subdued if you consider HVDC project, but you know that we can't get HVDC project every quarter because these are the large projects. That has, that's the reason, you know, we always track our order inflows without this kind of mega orders. These are not large orders, these are mega orders. If you consider, without that, we have a 6% growth on year-on-year. Yeah. We could have done better, I understand that. If you really look at our pipeline, our order pipeline is very robust. Okay, order pipeline, one is around the renewable. That's where where we do a lot of grid connections of renew, of solar and wind. Solar especially is a very, very solid pipeline. The second one is the transmission. The transmission is not only the traditional transmission, like 765 kV, AC, 400 kV, GIS, et cetera, but we see a lot of tariff-based biddings are coming with the STATCOM tenders, and that's where, you know, we have a huge play there. The third one is we also see a very good pipeline on the rail and infrastructure standpoint, where the rail is not only like a high-speed rail, also the cross-country, regional rail electrification, metro electrification, and then a rolling stock modernization like Mumbai local trains, et cetera, are also seeing a very good growth of opportunities there. Okay. My second question is about the signaling, investment opportunity, railway signaling. My question is: Are you qualified for electronic interlocking and automatic block signaling? If you are not, are you trying to build that capability over next 12 to 18 months? No. No, we are not into the railway signaling at all, okay? We don't have a railway signaling portfolio as part of that, nor we want to enter into the railway signal portfolio. When you say you're participating in high speed rail tenders, it is for electrification. Am I right in saying that? Yeah. High speed rail tenders is basically electric, electrification, our transformer, our GIS, our substation automation, et cetera. If I'm not wrong, the electrification tender is out, right? It's the bid is bidding is happening. Am I right in saying that? Right. Right. Okay, sir. Thank you. Yes. Thank you. Our next question is from the line of Mr. Vinod from BOB Caps. Please go ahead. Yeah. Hi, am I audible? Yes, sir. Please go ahead. I had one question regarding the high speed rail. What we understand is JICA has specified that the high speed rail contract should go to Japanese companies. I guess Hitachi is one of the names which is being talked about. Will there be any rub-off impact for us, any benefit coming from, you know, Hitachi winning some of those high speed rail orders, which can, you know, accrue to Hitachi Energy, the other local entity here? Yeah. Thank you, Vinod. The, see, I go based on the qualification requirements put in the high speed rail tenders. Based on that, we have seen, you know, we do qualify for, you know, major portion of the power technology, which go as part of the electrical tender in there. We have submitted our bids to the EPCs and other people, and we will wait for that. Since the tender is on, we don't want to discuss more on that. Okay. The other thing we learn is the train sets necessarily has to be sourced from the Japanese players. Three names came out, Mitsubishi, Kawasaki and Hitachi. I was just thinking, if the parent wins this high-speed rail contract, would there be anything percolating down to the Indian entity, the listed entity here? What we are saying in that particular tender is that, you know, Hitachi Energy products do qualify for that, certain products, not all of them, for sure, certain products, and basis which we are giving offers to whoever is participating on a turnkey basis. Okay, sir. Thank you. Thanks a lot. Yeah. Thank you. Our next question is from the line of Bhalachandra Vasant Shinde from Kotak Life. Please go ahead. Good evening, sir. Sir, regarding this chip shortage, this EPC peers wise, we have not been, that has not been reflecting into their execution. Where exactly we are getting constrained on the supply? Based on this, your earlier target of reaching to double-digit margins, by FY 2024 end or FY 2025, will it be shifted by one or two quarters? How you see, because we have been seeing the slippages in execution for last two, three quarters continuously. Yeah. You are right. Actually, the chips and electronic shortages, which are primarily an industry relevant topic, we are also facing. You know, most of them, you know, we also import, and we are, you know, tier two or tier three. We don't directly import from the chip manufacturer, right? They will give it to someone else, they will add value addition, and that's where the thing. The focus in the beginning, it was or there was a shortage across all the things, there has been improvement, for example, in the auto industries, et cetera. Whereas the chips pertaining to our industry, especially the substation automation, the IED, relays, et cetera, has impacted. The volume globally, if somebody is manufacturing, the bulk of that is going to the, let's say, auto sector or some other sector, but our industry sector is low. We have taken a several action. For example, we had a cadence with the CEOs of those companies. We have started ordering at once. We also have looked at alternative manufacturers. We also looked at, you know, what you call, you know, redesigning about things. We looked at both, you know, in the short term, maximizing output, in a midterm, you know, securing the supplies, advancing, ordering, et cetera. Long term, also, we are looking at the de-risking of that. That's the reason I've said, now, we are seeing the visibility. We are still not, say, 100% we're going to, you know, out of that, but I think it's now becoming better, I would say. That's where we come back on that. If I come back to our long term, as I told you, we have several, you know, initiatives on the demand and also exports and the service and also operational exercise, and based on that, we said we will reach 10% EBITDA by end of financial year 2025. This is what we said, and we are sticking to that. We will sequentially improve from now to reach that level, whatever we are, we have been committed. Got it. Got it. Challenge is, as per earlier interactions, as we said, that every year one HVDC order is likely to happen. Yeah. Based on that, growth trajectory-wise, how you see, will we be able to continue with that healthy growth, or execution-wise, it will be like spikes and then plateau, then spikes, something like that? Sorry, execution-wise, you said something? It's like execution will be a normalized growth, or it will be like a intermittent growth happening over a period of time. No, as I said, you know, we have a very robust portfolio of INR 7,000 crores for all of our industry segments where we talked about. We also said that the market is opening up with the energy transition-related demand, including HVDCs. Like, for example, one HVDC project has already come into the market for bidding, so we are also acting on that. On the execution side, you know, barring these chips, I think, more or less our portfolio is very stable, and we don't see any issues on that. That's the reason we said our growth story going forward will be profitable and sustainable, and we want to grow ahead in the market. These are the three things we have been consistently saying, and we have been also following on that. Got it. Thanks, sir. Thanks. I'll get back to you. Yeah. Thank you. Our next question is from the line of Apoorva Bahadur from Goldman Sachs. Please go ahead. Hi, sir. Thank you for the opportunity. Hi. Sir, two questions, actually. Firstly, on the export side, if you can share, what were the export sales for this quarter and last quarter, and also, how are the export markets tracking? Secondly, sir, on the benefit of the commodity downcycle now, by when should we expect that to start kicking in into our margins? On the first one, Apoorva, thanks for the question. If you, if you recall, you know, when we started our company after carving out, our exports were in the range of, you know, 15% of our total portfolio, total orders. We set ourselves as a, as a strategy. As part of that, we said we will take from 15% to 25% by 2023, and then we have reached this target at least one year ahead of the curve, and we are continuing with that thing. Our export strategy is a three-pronged strategy. The first one is we have certain products within Hitachi Energy, where we have global feeder factory. That means those products we only manufacture in India for the rest of the world. That's number one. The number two strategy is that we have certain allocated markets, and that markets are growing up, and then those markets, we will nurture, we will take care, and we will develop those markets. We have a go-to-market strategy together with those countries, et cetera, and then we sell our products. The third one is we also have the feeder factories. Some of the components we manufacture here, those components are meant for our factories around the world, and that is what. This three-pronged strategy will take. We are in 25%, and then we will continue to remain in that level, even though this quarter, that means the quarter which we are discussing, last quarter, we have a slightly higher export orders. Overall basis, if you take a one-year basis, we are saying we will be in the range of 25%. Can we share the percentage or the absolute revenue amount in terms of exports, please? I think that we have not been giving that as part of our thing. Generally, you know, you can say this will follow the same trend going forward. Understood, sir. Sir, how are the export markets tracking, given the slowdown that we are seeing in certain economies? I think on energy transition opportunities, Apoorva, I can say that in every market we are talking about is they're all committed in the investments. At least we are not seeing a slowdown of our exports. While I understand where your question is coming from, there's a slowdown of exports in the country as an overall basis, but when I see our pipeline of exports, projects, our pipeline of things, we have not seen yet. Right, sir. That's very useful. Lastly, on the commodity benefit, sir, when do we expect that to start coming in our margins? Maybe, Ajay, why don't you answer this? Commodity, if you see this quarter, we do not have any impact per se, as far as commodity is concerned. Already, if you see in last quarter and previous quarter, we were discussing on the commodity impact, but, we have our projects are basically hedged. That is how, at least in this quarter, we don't see any commodity impact that we are facing. Thank you. Sorry to interrupt. Mr. Apoorva, may we request you to rejoin the queue for follow-up questions, as there are several participants waiting for their turn. Thank you. Our next question is from the line of Mr. Aakash from Dalal & Broacha Stock Broking. Please go ahead. Mr. Aakash, your line has been unmuted. You can go ahead with your question. Yeah. Hi, sir. Hello. Hello, Aakash. Sir, my question is from the point of view as to how is the industry outlook currently, sir? I mean, how do we so see the orders, order flow coming in in the let's say next 4-5 quarters for Hitachi Energy? Yeah. Aakash, thank you for the question. As you know, that we don't give a guidance on the forward-looking information, but what I can definitely tell you about the industry thing. I just talked about a couple of pointers for you to, you know, understand how the market is going up in India. Energy transition demand is quite robust in India and also in some of the export markets where we operate in that. As you know, the recently, the Central Electricity Authority has, you know, announced that 777 GW of installed capacity by 2030, and out of that, 290 GW from solar and 100 GW of wind, and another 40 GW of battery energy storage. All those things, to reach that, you know, one needs to do at least two to four times, depending upon what. Suppose, for example, wind means from 43 GW to 100 GW, which is more than two times. Solar, 68 GW to 290 GW, which is more than four times what we have to do that. Yes, there are certain constraints, supply chain constraints, for example, on the solar standpoint, modules availability, et cetera. We'll have some limiting thing in that, but by and large, we see that. Same is the case on the transmission standpoint. For example, TBCB, you take a year before, there are 11 projects have been awarded. Last year, there are 22 projects have been awarded, and we see the pipeline is very robust now. Already, you know, a huge amount of tenders pipeline has already come for a bidding or in the process of bidding. All those things would definitely, in addition to the, your traditional infrastructure, pro- rail projects, what I talked about. Those things should get us, you know, a good, ordering flows. Got it, sir. Also on the, one more question on the, from the execution point of view. You said, there's a three-point strategy that you are basically focusing on. First, focusing on the exports. Second, now that we have the feeder factories and all the expansion that we needed to do on the Greenfield CapEx and all is also done. Thirdly, we already have the demand and order book in our hand. Going forward, our execution should only be, better and upwards, right? I mean, do we see any further execution challenges or blips going forward? No. Yeah, our endeavor, all our management and our endeavor is to see that we execute what we have it. Whatever the constraint we have within our reach, we will do it, but some of the constraints beyond our control, for example, in this case, the chips, which is beyond our control. Those things, you know, we also have some challenges to that. We will definitely, if you really look at the outlook of the chips, we see a good visibility of that. Same is the case, we expect to improve our performance. Okay, sir. All the best. Good luck. Thank you. Thank you. Our next question is from the line of Venkatesh Subramanian from LogicTree Investment Advisers Private Limited. Please go ahead. Yes, sir, good evening. Thanks for the opportunity. two questions, sir. One is, I have been reading a little bit on Hitachi India and its strategic plans, so what kind of synergy is there between Hitachi India and Hitachi Energy? That, is there, I mean, if you could just highlight a little bit on that. Number two, in terms of the opportunities globally, if you see Hitachi Energy globally, they would have a growth plan. What is it where do you think we could be, as a share of the global revenue, let's say, in five to seven years' time, sir? First of all, you know, ever since we become part of Hitachi ownership, we continue to look at the synergies between the Hitachi various entities with Hitachi Energy. For example, you know, Hitachi is the old T&D in install base. For example, they used to have the GIS transformer, we started serving them in the wherever it is there. These kind of things we started. We are also looking at Hitachi Rail, working together with Hitachi Rail wherever it's possible. The third one is where we are really working together with Hitachi, is that Hitachi has a digital portfolio as part of their GlobalLogic. We are looking at, you know, to offering some of our solutions together with Hitachi digital platform. Hitachi has, you know, very well-known IoT platform called Lumada, so where they have invested a lot. Those things we are working and doing some of the pilots with some customers to see that, you know, how can we scale it up, et cetera. Those are the synergies we are looking at it. Thank you, sir. Question on globally, where do you think Hitachi Energy can be, let's say, five, seven years down the line? Say 2030, if that's the big number that you're looking at. Globally, from a global Hitachi Energy standpoint, India is the center of the strategy, right? It's not only from the demand standpoint, but also the supply standpoint. We have, as I told you, we have a lot of feeder factories which are feeding to the global organization, global factories, like that's the one way of doing it. A lot of engineering happens here. The second is, from the market standpoint, India is around at least the top fifth or top sixth globally for Hitachi Energy in that. It's both from the demand and supply and availability of the skills, resources, et cetera, is quite an important market, important entity from a global lens standpoint, is that? Sure, yeah. Thanks, sir. A quick one, sir, if you can squeeze in, again, on chips and electronics. Considering that India is building an eco-structure, ecosystem of fabs, semiconductors, quite a lot of attention is being given, while I'm sure you're looking at a lot of alternatives and all that. Do you think at some point of time, we will broadly be self-sufficient in this area, where this does not continue to be some sort of a weakness for us? Yeah. Yeah, I think, I'm not sure, you know, what kind of chips they're going to manufacture. At least, you know, that's quite a long story in my view, you know, manufacturing those things, which are required for, you know, this, our kind of portfolio, you know. It's quite possible also. Right. Okay. As a company, we are looking at self-sufficiency somewhere? Yeah, you know, some of the, you know, very important semiconductors, for example, HVDC, a lot of semiconductors. That we have our own in-house factory in Switzerland, so that we have a full control. Whereas, you know, some of the grid automation, the electronics, those things are very small components, electronics, so that we depend on things. There we are not looking at manufacturing our own chips and electronics over there, because the volume, all those things will not make a business cases, you know? Thank you, Mr. Venkatesh. We move to our next question. Our next question is from the line of Miss Renu Baid from IIFL Securities. Please go ahead. My questions have been answered. Thank you. Thank you. Thank you. Operator, you can close now. Thank you, sir. That was the last question of our question and answer session due to paucity of time. I would now like to hand the conference over to Mr. N. Venu for closing comments. Thank you very much, operator, for moderating nice way. Ladies and gentlemen, thank you once again, for attending to our conference call. Appreciate very much. If you need anything more or anything you want to talk to us, please write to us. We are happy to engage with you, and please take care and stay safe. Thank you. Thank you. Thank you. On behalf of Hitachi Energy India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.