Ladies and gentlemen, good day, and welcome to the Syrma SGS Technology Limited Q2 FY25 earnings conference call, hosted by DAM Capital Advisors Limited. As a reminder, all participants' 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 Ms. Bhumika Nair from DAM Capital Advisors Limited. Thank you, and over to you, ma'am. Yeah, good morning, everyone. A warm welcome on behalf of DAM Capital to the 2Q FY25 earnings call of Syrma SGS Technology Limited. The management will open up with opening initial remarks, post which we'll have a Q&A. At this point, I'll hand over the floor to Nikhil Gupta, head Investor Relations, to take the proceedings forward. Over to you, Nikhil. Thank you, Bhumika, and hi, a very good morning to all. Welcome to Syrma SGS Q2 and half year FY 2025 earnings call. We have with us today Mr. Jasmeet Singh Gujral, Managing Director, Mr. Jayesh Doshi, Director, Mr. Satendra Singh, Chief Executive Officer, and Mr. Bijay Agrawal, Chief Financial Officer, Syrma SGS, to discuss the performance of the company during the second quarter and half year 2025, followed by the same question and answer session. Kindly note, during this call, certain statements that will be made are forward-looking, which involve certain risks, uncertainties, assumptions, and other factors that can cause results to differ materially from those in such forward-looking statements. All forward-looking statements made herein are based on the information presently available to the management, and the company does not undertake to update any forward-looking statements that may be made in the course of this call. In this regard, please do review the disclaimer statements in the earnings release and all other factors that can cause a difference. With this, I will now hand over the call to Mr. Jasmeet Gujral, Managing Director, Syrma SGS. Thank you. Hi, ladies and gentlemen. A very warm welcome to the Q2 FY 2025 earnings call of Syrma SGS Technology Limited. I take this opportunity to wish all of you and your families a very happy and safe and joyous Diwali. I'll in brief delve on the numbers for the Q2 and H1. We achieved a sales revenue of INR 83.56 million, a 17% year-on-year growth. Operating EBITDA of INR 7.38 million versus INR 5.46 million in Q1 and INR 5.04 million in Q2 of FY 2024, representing a growth of 35% quarter on quarter and 46% year-on-year. Operating EBITDA margins for the quarter stood at 8.8% and for the half year at about 6.4%. In Q2, PAT stood at INR 396 million versus INR 203 million in Q1 and INR 305 million in Q2 of FY twenty-four, representing a healthy increase of 94% Q on Q and 30% year-on-year. The second quarter saw a partial recovery of exports. Exports accounted for 23% of our revenues in Q2 versus 16% in Q1. We expect this momentum to be further strengthened in the second half of the year. Net working capital came down to below 60 days. Bijay will tell with the numbers in detail, and we generated a healthy operating cash flow. Bijay will tell all the numbers. The order book stood at a healthy 4,800 crores with sectoral breakup between the various verticals. We stand by the full year guidance of 40.5% growth and INR 310-320 crores of EBITDA, which translates into 7%. During the quarter, we commissioned our design center in Pune, dedicated to the MedTech business, and the initial response from the customers from Europe, Japan, and America has been very encouraging. We've also commissioned our first campus-level manufacturing facility in Pune. Satendra Singh, our CEO, will tell more this in detail in his comments. During the quarter, we have received major orders in smart meters and expect this segment to contribute significantly to our revenues in the coming this year and coming years. Another significant milestone is that we have received PLI approval for two segments in the MedTech business, which is cancer care, radiotherapy devices, and anesthetics and cardiorespiratory devices, including renal care. We believe with this PLI in our hands, it opens up avenues for targeting this business both in India and globally. The business funnel continues to be strong, with onboarding of new clients in the power supply, smart metering, fuel dispensing, IoT, and auto vertical, and also expanding the portfolio with existing customers. We onboarded nine new clients in H1, which have a potential of giving INR 500+ crores of revenue in the coming year. Five customers which were onboarded last year or earlier this year have gone into commercial production. I now hand over to Satya to delve on detail on the expansion plans, which we have now initiated at Pune. Over to you, Satya. Thank you, Gujral, and good morning, everyone. I think, as Gujral shared, and you might have seen our announcement, so we commissioned our first campus in Pune. This is a shift in our strategy. So far, we have always built the factories which were exactly mapping the requirement from the customers, which we saw in the near term. This one is a shift, wherein we are investing ahead of time. It's a large campus with 26 acres of land, and our first building, with 130,000 sq ft, has been commissioned. It fills in the gap which we had in our offering so far. Geographically, we have always been very strong in north of India, with multiple factories and likewise in south. But in west, we were missing the ability to offer solutions to our customers. So, this innovation has been met with a lot of excitement. We have very positive response from our customers, and we expect this factory to help us increase our revenue and the offerability to offer to our customer solutions closer to where they are. So, we are definitely looking forward to a growth in this year as well as in next year. This campus, when it's completed, would have the possibility of about 1.2 million sq ft space, and that would be done over next years. And to start with, we have put investment of INR 100 crore, but we'll keep increasing the investment as we go along. With this, I think I'll turn it over to Bijay, to run us through the detailed numbers for the quarter. Over to you, Bijay. Thank you, Satya. Good morning, everyone. I'll now take you through the brief financial performance for the quarter and the half year FY 2025. Our operating revenue for the half year is INR 2,003 crores. That grew strongly by 52% on a year-on-year basis, and for the quarter, it is INR 834 crore rupees, with a 17% growth on year-on-year basis. During the half year, the growth has been mainly contributed by a stronger demand growth on the consumer, healthcare, and IT railway side. And similarly, during the quarter 2, the strong growth has been supported by auto and industrial sector, primarily. This quarter, we had a strong rebound on the margins also, led by expansion into the gross margin on the back of change in product mix, business mix, our continuous effort on the operational efficiency and also stable overhead costs. Our gross margin for the quarter is about 25%, with an expansion of almost 180 basis points on year-on-year basis. For the half year, the gross margin is approximately 20%. Our operating EBITDA for the quarter is 73.8 crore, with an operating EBITDA margin of 8.8%, growing 46% year-on-year. For the half year, it is 127 crore, with 6.4% operating EBITDA margin, again, with a growth of almost 37% on year-on-year basis. Same way, PBT for the quarter is approximately 49 crore, and for the half year, it is 78 crore rupees. Coming to PAT, PAT for the quarter is INR 38 crores, with a PAT margin of 4.5%, and for the half year, it is INR 60 crore rupees with a PAT margin of 8% for the half year. Coming to order book visibility, we have a very strong open order book as of now, as of September end is approximately INR 4,800 crores, which comprises almost 24%-26% of auto sector, 25%-28% of industrial sector, about 35%-38% of consumer sector business, and balance is IT and railways. Near about 6%-8% is healthcare also in this. Coming to our working capital performance, we have been successfully able to bring it down to 56 days of net working capital, from a 70 days of net working capital days investment from the start of the year. Again, we target to keep it below 60 days on a sustained basis going forward. Moving to our debt position, we have a gross debt of INR 603 crore rupees as on September end, September 30, 2024. Which includes mainly working capital debt of approximately INR 500 crores and balance INR 100 crores of term loan, primarily. We continue to hold INR 423 crores of treasury as on September end, and with this, the net debt position for the quarter end is INR 180 crores. Our operating cash flow for the half year is INR 211 crores, largely on back of better working capital efficiencies and better profitability for the half year. Coming to CapEx, during the year, we had spent almost 175 odd crore rupees, with a large part of being utilized in readiness of our new campus facility in Pune, that was inaugurated last week. With this, we expect large part of our CapEx is already behind us, and again, we may, we may incur another 30 to 50 crores in the H2 of this year, broadly. Coming to our ROC performance, for the quarter, it is at about 11% when we calculate it after adjusting for unutilized IPO proceeds and goodwill. Regarding our guidance for the full year, financial year FY 2025, we continue to maintain same guidance as was communicated last quarter also, with a 4,500 crores of revenue target for the full year, and again, 7% of overall average EBITDA margin. We still continue to focus on working capital efficiency, operational efficiency improvement, and deliver on the guidance. With this, we thank you very much, and I'll hand over this call to Ravi, just for the question answer session. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset 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 Rahul Gajare from Haitong Securities. Please go ahead. Yeah, good morning, gentlemen, and congratulations on good performance in this quarter. I have two questions. One of them is a bookkeeping question. You indicated, you know, the CapEx that you have planned for FY twenty-five. Can you talk about the likely CapEx over the next two, three years? You know, what are the things that you have in your mind in terms of expansion? We have approximately 130 crores of IPO proceeds still unutilized, which we will be spending in the next one and a half years, broadly. This will be going towards furthermore upgrading the Pune facility and also developing our facility there in Hosur, which was planned at the time of IPO. Okay, so INR 130 crore over two years, twenty-six and twenty-seven. I think that is how we should read this. Okay. My second question: normally, you know, you in this particular quarter, we've seen you know, consumer has gone down, you know, and industrial also picked up, healthcare has also picked up. You also typically gave breakup in terms of PCB, box build, RFID, share of ODM. Can you give that? And also, I mean, since you specifically said exports are expected to see strong growth in the second half, which are the segments that are expected to contribute towards the export growth in H2? Thank you. Sure. So just to give you a break up here, RFID plus magnetics for the H1 is approximately 7% of the full year revenue. And same way, when we talk about ODM business, ODM business is almost 11% for the H1. Again, when we say here, considering the seasonality for the H2, we expect better healthcare business and the export business, which will improve the overall ODM and RFID capability or mix in the second half. And any particular segments that you have in your order book, you know, for exports that you want to call out? In exports, primarily, the segments which we service are industrial and healthcare, primarily. Okay. Thank you very, very much. All the very best, and happy Diwali to you all. Thank you. Thank you. The next question is from the line of Girish from Morgan Stanley. Please go ahead. Yeah. Hi, sir. Sorry if I missed this comment earlier. I just wanted to understand the guidance for this year and next year on revenue and margins. This year, we have guided growth of about 40-45%, which translates into a top line of about INR 4,500 crores, with a mid-term operating EBITDA of about INR 310-INR 320, which translates into 7% growth. For the coming years, as I had shared in my Q1 earning call, we maintain EBITDA at 7% and top line growth of 35, 40 odd percent. Any positive impact bump in the EBITDA in the coming years, we'll share with the street after it has been delivered, rather than sort of estimating that it will go up. So we maintain a conservative guidance of 7% EBITDA with a 40 odd percent growth in the revenue, 35, 40, 42 percent growth in the revenues. Okay. Just a follow-up, in terms of your business mix, from exports, into next year, and also, consumer, as you guided earlier, as a percentage of revenue, might come lower. Isn't it natural to assume that at least there'll be a fifty basis point margin improvement next year? See, I think we'll count the chickens when they are hatched. I'm being on the conservative side. Logically, what you allude to is a distinct possibility, but we hold our horses at 7%. Okay. Just final question on exports. Can you help us with where you're getting traction, the new set of customers or which specific segments, if you can call out a few names, which can actually improve H2? I would not be able to call out the names because of confidentiality clauses with the customer, but I can broadly or in detail share with you, we have a very strong traction of exports coming in from Europe, though Europe as a market is seeing a very subdued half year. Europe is not growing. In fact, the major economy of Europe, which is Germany, is almost into a recession. Despite that, we expect our exports to grow this year by about 20%. We did about $100 million last year. I expect, on a conservative basis, that I should be doing $120 or maybe more on the exports. America, we were not significantly present in the EMS space. What we were exporting to America was RFID. EMS, we have got the toehold. The customer which was onboarded last year has gone into serious production as they peak in October, and we expect that this would significantly grow in the coming year. Current year, it could be forty, fifty growth against the original estimate of about sixty-five, seventy growth. MedTech business is seeing a strong traction across continents. We have won significant contracts from Japan, Europe, and America, and the pipeline looks very, very healthy over there. So total exports, this year, if I can just ask ballpark, would it be like 20% of revenue? 1,000 crores, we said. I had alluded to 1,000-1,100 crores. I am very confident that we should be able to cross the 1,000 crore mark. Some of the customers had a delayed takeoff because of new product approval, but it would be a 20%. If it's a 20% jump, it will be 960, it will be 1,025, it will be 1,000. So I'm very confident that it should be closer to 1,000, which I think is a very positive sort of commentary on our team's efforts, that neither America nor Europe is growing at that rate, and if still we can grow at a very healthy 20-25%, 22% growth rate in these two sort of continents. I think it's a testimony of what we offer, the value we offer to the customers. Based on the visibility that you have in the pipeline, next year, as you rightly said, you'll probably grow at 35%-40%. Fair to assume that exports will be growing in line or ahead of that number for FY 2026? See, okay. Our long-term vision is that exports should constitute one-third of our revenues. Now, if the exports have to constitute one-third of our revenues, it is very, very imperative that we at least grow by 20-25%, or maybe in one year we have a bump up. But a 20-25% growth in exports in the coming years would be a distinct possibility, and we are planning and aiming for that. Thank you, and best wishes, sir. Thank you. The next question is from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead. Hi, sir. Am I audible? Yes. Yes. Just wanted to sort of clarify, I think in one of the media interactions you had indicated, you know, potential 12-15 crore of PLI incentive with this quarter. Just wanted to know the actual number, and given that we have sort of booked 4 crore in 1Q, and we had said about 16 crore of, you know, PLI incentives, are the incentives as such done for the year? Or because we have seen strong growth over the last one year, you know, the incentive numbers can be even be higher. See, the PLI number, as we have continued to share in our earlier interactions, also is based on the PLI policy scheme, which approval, which you have got with the government, and we believe that it would be around the figure which you have just mentioned for the year. And this is only the telecom PLI. The IT PLI has yet not kicked in, this being the first year. I think closer to the end of this year, we'll be in a better position to share with the street what volumes we expect or don't expect in the IT business and the impact of the PLI in IT. The third PLI, which we have got, is on the consumer business, which the current volumes do not attract activation of the PLI. That's currently dormant, what you call approval, which you have got. However, as I shared in my opening comments, we have got a PLI approval for MedTech business, which again, like the IT business, we would be in a better position to share with the street, the impact of the PLI business, which will be only in 2025, 2026, and not in 2024, 2025. Sure, sir. So fair to assume that all the PLIs are sort of booked in one year so far. Maybe just, sort of- PLI and everything as per the industry practice. Sure. Maybe just wanted to understand, given the Pune expansion and the INR 130 crore sort of expansion that you've sort of, you know, planned for two years ahead, what is sort of the peak revenue potential we can do after all of these CapEx expansions undertaking? Okay. You see, for the half year, we have done a revenue of about INR 2,000 crores, and this is based on less than 70% capacity utilization without considering Pune, because Pune has been commissioned in October. So whatever plants we had commissioned in September, it was less than 70% average capacity utilization. Now, if we do the back of the hand calculations, the capacity installed till September was good enough for us to cross the INR 5,000 crore mark. Whatever we invest in Pune would be beyond that. So I think with Pune expansion being in place, we are well, sort of the capacity we have created should enable us to cross the INR 6,000-6,500 crore mark. The variation of 400-500 crores would depend upon the product mix. Sure, sir. Maybe just one final question. Just on industrial, wanted to understand how big is smart metering today in terms of, you know, overall revenue potential, and is it a complete domestic opportunity, or do we sort of do substantial exports as well on the smart metering front? Sorry, I couldn't get the question. Can you repeat it, please? Just wanted to check on industrial smart meter. How big is that within the industrial revenue, and how much of that is domestic, and how are we also exporting to any countries? Great. Now, for the benefit of the street, we have been present in the energy or utility metering business for the last 19 years, and we are one of the largest contract manufacturers in this space. When I say contract manufacturers, we make it for the energy metering companies. We are also one of the largest players in the smart metering business, and we have got formidable clients. For your consumption, during the first half, we sold 1.3 million smart metering units, the electronics for smart meters, to our customers in India. We have just started the export of utility metering systems or modules to USA. This has started last month, and its series production will go from October onwards. I expect this business in this particular year, the export business from the utility metering business to contribute approximately 35-40 crore. Next year, it has a uptake of crossing the 100 crore mark. Domestic utility metering business is strong, and we expect that it will be approximately 250-300 crores. Sure, sir. Those are my questions, and best of luck for future quarters. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address the questions from all the participants, please limit your questions to one per participant. I repeat, please limit your questions to one per participant. Thank you. The next question is from the line of Madhav from Fidelity Investments. Please go ahead. Hi, good morning. Thank you so much for your time. I just wanted to understand on the PLI, you all mentioned that, on the consumer PLI, you said volumes may not lead to us crossing the threshold. Just wanted to understand why, I mean, what's changed there in terms of when we applied for the PLI versus now, just to understand that. Thank you. Yeah. You see, the consumer PLI is essentially for electronics, which is the indoor, outdoor, and the display units for air conditioning. Till now, bulk of these are being imported, and the threshold limit in that component PLI, our CapEx and, the revenues are pretty, large. Now, if I make the investment and I'm not able to achieve the additional revenue, because I have a certain revenue on the base year, so it has to be the incremental revenue on the base year. Based on the current, order profile which we have got, we see that we will not be able to do that, incremental revenue. Until we do the incremental revenue, we are not able to get the PLI. Now, if the situation changes in the coming quarters, if we are able to sort of, get the business, and there are certain policy, initiatives of the government of India, like BSI certification and blah, blah, blah. If they kick in, then the imports would take, sort of a negative impact, and it could have a positive rub-off on domestic manufacturing. Currently, the situation is we are not able to cross that threshold delta limit of incremental revenue, and hence we are not eligible. Bijay, you would like to add something? So that is where we are still working on this consumer PLI piece, and gradually, maybe once we get the desired volume, then only we would be able to claim for it. But, and on the IT PLI also, if you could explain what kind of opportunity are we targeting and, yeah, basically, what would sort of drive us to sort of target that PLI? Yeah. See, IT PLI, we are still in discussions with some major companies. The products which we are manufacturing thus far do not qualify for the IT PLI. I hope, as I said in my opening statement, we would have clarity maybe closer to the December or March quarter, once we are able or not able to tie up with the manufacturer for the products which are for the eligible products. Now, clarity will emerge in the coming months, and hence I will refrain from hazarding a guess on the figures and the quarter. It's still in a nebulous state. We have not been able to tie up for the eligible products with credible ODM partners. Okay, understood. Great, thank you. ... Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go ahead. Hi. Thank you for the opportunity. I have a question on margin. So as we head into the second half, which is a seasonally stronger period, in addition, we will have a much better proportion of exports, somewhere close to 26-27%, if I go by your guidance. And the order book looks more geared towards a higher margin product. So what makes us from about 8.5-9% margin this quarter, what makes us conservative on the full year margin guidance? Why can't we do, say, closer to the current trend rate? See, we still, again, hold by the 7% EBITDA margin. We may call it a conservative estimate. We believe that, we are currently sitting at about, 6.4% or 6.36%, margin for the half year. So to achieve the 7%, I will have to achieve 7.5% or 7.52% or 7.6%. So whether I achieve 7.6% or 7.8% or whatever, I still hold the guidance which you have given, which is a 7% EBITDA margin for the year. By December, we'll be in a much clearer position whether there is a uptick on it or not. But today, I will hold my horses, as I keep saying, at 7% EBITDA margin. Sure. For the full year. Okay, thank you, and secondly, when we look at the CapEx from here on, right now, whatever is remaining in Pune and then the IPO proceeds, with that, we could do somewhere close to maybe INR 6,000 crore-INR 6,500 crore, so post that, what kind of asset turnover can we look at from the medium-term basis? Vijay? So on a maintenance CapEx basis, there is not much of maintenance CapEx we need to incur. It will not be more than INR 10 crore that way. But yes, depending upon the new business additions, we may keep on adding a few more SMT lines into the currently developed infrastructure. So that way, that will be all incremental linked with the new businesses. On an average basis, we can still consider INR 50 crore per annum basis. That could enable us to grow at 30%-35%, at least for the next few years? That's what we are targeting, yes. Okay, thank you. That's all from my side. Thank you. The next question is from the line of Sonali Salgaonkar from Jefferies India. Please go ahead. Good morning, Mr. Gujral, and congratulations to you and the team. So my question is regarding the consumer business. Now that it has gone down in our overall mix and the industrials has come up, where should we assume the consumer business percentage in the overall mix by FY 2025 and going forward across in 2026, 2027? And secondly, I might have missed the PLI incentive number that you would have talked about. So what is the PLI incentive expected in FY 2025, and are you planning to share it back with the brand owners or utilize it for our own growth? Thank you, sir. Okay. Now, on the consumer mix business, Q2 saw it dipping to 33%, and Q1 it was 54%. Based on the orders in hand and deliveries which we have to make, I believe we would be hovering around 40% for FY25. It could be a couple of percentages up or down, but it would be hovering at about 40%, and that's what we had started off the year with, with a consumer mix of about 40% in our overall basket. The endeavor of the management is to bring it down to below 35% or to bring it down to one-third. I don't see that happening in the current year. It could be a possibility going forward next year, so this year, we should hold it at about 40-odd%. On the PLI, we have different arrangements with different customers on sharing, and whatever figures we share are what comes to us, not the gross figures. The gross figures could be much higher, but what affects my PNL is what I share with the... We share with the street. We only consider net basis. Net basis. Whatever has to be passed through, we don't consider that. Sure, sir. So on a net basis, what is the kind of PLI incentive you expect in FY twenty-five, and will it mainly come from telecom and IT businesses? We expect around 50 odd crores, and it will primarily be from telecom. I don't personally foresee any amount coming in from IT. If it comes, it will be very, very small. I don't see an IT PLI kicking in in FY 2024-2025. Very clear, sir. Thank you, and best wishes for the festive season to you and the team. Thank you. Same to you and your team. Thank you. The next question is from the line of Suman Kumar from Motilal Oswal Financial Services. Please go ahead. Hi, sir. So in last five quarters, we have seen a significant growth on the top line side, ranging from 30% to 90%, and but margin was under pressure. And this quarter we have seen a 17%-18% kind of growth, but margin is better. So going forward, what is our strategy? so have a decent margin with decent growth or higher growth with, maybe compromising on margin. So what is our key strategy going forward to for the earning growth going ahead? See, the past quarters till FY 2024, the margins was subdued because we didn't have a high volume consumer business in the preceding years, which were kicked in last year, and there was a very high CapEx cycle and expansion, which led to an increase in the overheads. Going forward, as we have indicated for this year, we're very confident of growing at 35%-45% and maintaining EBITDA at about 7%. This would largely be driven by growth in my exports, my MedTech business growth, my industrial growth, so overall, it, it's not that we sacrifice one segment for the other segment. It is a customer need which has to be satisfied, and if a consumer, high volume consumer customer has a high need, I, as an entrepreneur, would not say no just because it depresses my margins. But the portfolio mix which we have, we are very confident of delivering the 7% EBITDA margin this year and going forward next year also. Okay. Thank you. Thank you. The next question is from the line of Pravin Sahay from Prabhudas Lilladher, India. Please go ahead. Mr. Pravin, your line has been unmuted. Please go ahead with your question. Yeah, sorry. Hi, thank you for the opportunity. So my question is related to the export. As you had mentioned that the second half expected to be around 35% of the growth, like, by calculating what numbers you have given. So if you can give some highlight on the order book, how much of the export order book you have, and also on the segment-wise would be helpful. Thank you. See, as I mentioned earlier in one of the earlier questions, our exports are primarily into the industrial and med tech segment, apart from RFID. So these three verticals constitute the backbone of our export revenues. Industrial, which would include utility metering, which would include power supply management, which would include industrial cleaning, which would include renewable energy, solar, we'll have products related to solar and box build for other applications, apart from med tech devices and RFID. The growth which we are projecting for the current year is based on the orders or the visibility which we have from the customers. So when I say our exports could grow or go up by about 20-25% to about INR 1,000 crore, which is a delta of about INR 200 crore over last year, it is based on the orders and the visibility and the agreements which we have with our customers. So INR 4,800-odd crore of order book, so how much is the export order? Broadly, around 22%-25% will be export in this thing. See, if my export is about 25% of my revenues, my order book, by and large, on an annualized basis, would have that percentage. Quarter on quarter could be marginal variances. So if I'm committing a thousand crore revenue, I'm committing it based on the orders which I have in hand for execution in this year. And Bijay has shared the figures with you. Right, sir. Anything on the Johari, how much, in the first half, the revenue you have done? The Johari typically takes off in the second quarter and third and fourth quarter. Second half for MedTech business is typically much higher revenues and margins. The first half is comparatively subdued as per the previous year experiences. Okay. Thank you, sir. Thank you. The next question is from the line of Keyur Pandya from ICICI Prudential Life Insurance. Please go ahead. Thank you. The first question is on the asset turnover side. So what would be our Gross Block, say, ex of Pune, including Pune? And do you think our revenue, I mean, ex asset turnover potential has gone up? I think earlier you have talked about anywhere around four, four and a half, four point five X kind of Gross Block asset turnover. So where do we stand on that number, Gross Block and asset turnover? And second is for last couple of quarters, we are seeing payable days significantly higher than what it used to be earlier. So is there a change in policy? Should we consider it more of steady-state number, or there is some tactical call that we have taken to have lower payables? Vijay? So my asset turns currently are in the range of around 5.5 times, and when we talk about gross block, it is about INR 800 crore plus, which includes Pune number also, Pune facility, maybe about 100-odd crore rupees, and maybe a few other, Manesar expansion and all other CWIPs are including in this thing. So broadly, those assets or maybe just those CWIPs may result into final profitability next over two years, and once we achieve that thing, I think we should be able to achieve a 6.5 times plus kind of asset turn on an average basis. On payable? Current payable day. Payable day. Yes, that is primarily depending upon the business mix. There are different businesses which we do. So just like consumer business, when we talk about consumer business, has a different payable and different industry or maybe inventory metrics. That's how it is, based on the business mix there. As of now, it is around 100 days plus of payable day, and we considering if we like full year also, we will be doing around 40% of the consumer business, and the payable days will be exactly almost similar in the similar range going forward. Okay, noted. Thanks a lot. All the best. Happy Diwali! Thank you. The next question is from the line of Parth Galiya from HDFC Securities. Please go ahead. Hi, gentlemen. Good morning. Just one question on the material margins. So for the past couple of quarters, you know, consumer business, the material margins were hovering in single digits, probably high single digits, but is there any change in this quarter? Because I mean, the sense I'm getting is that it's gone back to a double digit kind of a trajectory. If you can shed some light on this, that would be great. See, as I've been sharing all along, what we monitor is the margin profile of each vertical, and there we don't see any depreciation or decline. The consumer, the high volume consumer business, the consumer business is split into two, the high volume consumer business, which is the backbone and bulk of the consumer segment, and then it's the low volume ODM other consumer business, which is in line with my other verticals in terms of margin. We have not seen any accretion of margins in the high volume consumer business, and they continue to hover with the figures which we had said was about less than 10%, or 9%-10% gross material margin. We have not seen any depreciation nor any accretion in this segment. Other segments have seen a small positive uptick, which has been because of better buying, better negotiations, better realization from customers and better product mix. Understood, sir. So would that mean that the second quarter had a higher share of the low volume ODM business in consumer? And what would the mix stand, if you can, for the second half as well? See, for the Q2, my consumer as an overall basket came down from 54% to 33%, and this decline was primarily driven by the high volume, low margin consumer business. The low to medium volume, normalized margin consumer business grew at its normal pace, at which it was there. Going forward, this year, we believe that our consumer business would constitute approximately around 40% of our revenues, and this is what we had factored in our annual plans, which we had shared with the street, when we said that we'll be doing about 4,500 odd crores of revenue and 310 to 320, in fact, 315, to be precise, EBITDA numbers. Now, if going forward in the next six months also my consumer business does not go to 40%, it hovers down, then it'll have a positive impact on the EBITDA. But based on the orders and the delivery commitments which our customers are asking, we believe it will be around 40% only. This is very helpful. Thank you very much, and best wishes for the succession. Thank you. Thank you. The next question is from the line of Hardik Rawat from IIFL Securities. Please go ahead. Thanks for the opportunity, and, congratulations on a good set of numbers. The question that I wanted to ask was with regards to our margin expectation in the second half. Now, going by the guidance, second half should see an uptick in both exports and medical revenues. So what could be some realistic reason as to why margins should dip in second half versus the first half? For the first half, we are looking at EBITDA margin blended of about 6.4%, and the second quarter, we ended at 8.9%. So largely not from a blended 2H perspective, but from this 8.9%, why should the margins in second half, you know, be materially lower than this? Because our current guidance about 7%- Okay, we achieved 6.4 odd% for the first half year. Quarter two, with the high volume consumer business at 33%, we touched 8.8-8.9%. We believe that for the second half, with consumer bouncing back to about 40% of all my revenues, I should be comfortable at about 7.5-7.6% EBITDA margins, which will enable me to give 7% blended margin for the year as a whole. Now, whether this 7.5 goes to 7.7, I think we are not doing that hair splitting right now. We'll share the results once we count the chickens when they are hatched, as they keep saying, but we're very confident of achieving the 7%. Any uptick on that, I think we'll share with the street once it happens, rather than alerting our guests in advance. Yeah, we understand that you're being conservative with the guidance, but like you mentioned in the team interview that you were there, so this 7% margin expectation is the lower end of our expectation. Yes. Correct? Exactly, said that we hold 7% this year. It's the bare minimum which we have to deliver. Anything above that, I think, we should have the patience to see when the results are out. It makes sense. That helps. Another thing was with regards to the PLI figure that you gave out. You mentioned this 150, INR 15 crore of PLI is cumulative PLI for first half? This is the accrual PLI for the sales done during the period and expected to be done during the year. Expectation is 15 crore rupees of PLI in FY 2025? Approximately thereabout, yes. Approximately. Got it. Okay, those are lastly my questions. Thank you so much. Thank you. Thank you. The next question is from the line of Vipral Shrivastava from PhillipCapital. Please go ahead. Mr. Vipral, your line has been unmuted. Please go ahead with your question. Due to no response from the current participant, we'll take our next question from the line of Soumil Shah from Paras Investments. Please go ahead. Hi, thanks for the opportunity. My question is on the CapEx side. You just mentioned that, we, we'll be doing 130 crores of CapEx for the next two years. And, as we are growing at the 35%-40% CAGR growth, so, back of the envelope calculation, by FY 2027, we should be reaching about 8,000 crores of revenue, approx. So will this CapEx be enough to generate that revenue? Again, apart from that INR 130-INR 150 crore, we also mentioned, depending upon the incremental business, wherever we need to stuff more SMT lines, we'll keep on doing it. So once we reach that 8,000-8,500 crores of revenue, if there is any additional plant and assembly related CapEx would be required, we will be incurring that thing. So maybe INR 150-INR 200 crore we require to reach to that level, in a way, broadly. See, again, whatever we have achieved in this half year, it is, as I shared earlier, we're at about 65%, less than 70% capacity utilization. Now, the capacity which I have installed till September of 2024, which will not include Pune, that itself, if it was typically working at 90%-95%, would give me a revenue of closer to INR 5,000 crores. So Pune is in addition to that, and with the figures which Bijay has mentioned, I think we are on track to achieve the figure which you mentioned for FY 2027. And, a lot of it will also depend upon the product mix, how much is the Box Build, because a Box Build has a lower CapEx. It's a very high asset turnover ratio than plain vanilla PCB board, because the major CapEx goes into the PCB assembly, not in the box build. So as we move forward and the product mix changes, I think with the figures which Bijay has shared, we are on well track to achieve the long-term objectives of the company. Yes, so you just mentioned INR 130-INR 150 crores of CapEx, no, Bijay? Yeah, that's right. That is from the balance IPO proceeds, and beyond that, we may have to fund from internal accruals. So broadly, INR 150-INR 200 crore is what we are saying in total. On a higher side, next two years, INR 200 crore CapEx, on a higher side? Yes. Okay, okay. That's it from my side. Thank you, and all the best. Thank you. Ladies and gentlemen, we'll take this as the last question. I would now like to hand the conference over to Mr. Gujral for closing comments. At the outset, thank you very much for all of you for participating in the call during the festive season. We at Syrma SGS, as I'm all the time being saying in my closing remarks, are very focused on building an institution which is sustainable, profitable, and takes care the interests of all the stakeholders, investors being the most important, but there are other stakeholders as well. We have expanded our capacities, we have expanded our footprint, geographical footprint, and we have also expanded our marketing presence over the last two quarters by having dedicated sales teams in USA, which till now were being serviced from India. In addition, the MedTech business continues to be a strong driver, and we have entered into new services which are quality assurance, regulatory approval services, which in the long run, I think will form a significant portion of our revenue streams, at least from the EBITDA margins. The pipeline of orders from existing customers and the dialogues with the new customers continues to be healthy, and we are exploring other areas for growth. Overall, the management is very, very confident that we are on track, to building a one billion organization, in the next few years. Thank you very much for the support and wish you all a very happy Diwali to all of you and your families. Thank you. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.