Apar Industries Ltd — Call Transcript 2026

Feb 4, 2026

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SEC/0402/2026	By E-Filing February 4, 2026	By E-Filing February 4, 2026
National Stock Exchange of India Limited “Exchange Plaza”, C-1, Block G, Bandra- Kurla Complex, Bandra (E), Mumbai – 400 051. Scrip Symbol : APARINDS Kind Attn.: Listing Department		BSE Limited Corporate Relations Department, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001. Scrip Code : 532259 Kind Attn. : Corporate Relationship Department

Sub. : Submission of Transcript of the analysts and investors conference call on Un-audited Financial Results (Standalone & Consolidated) on Q3FY26 (2025-26)

Ref.: Reg. 30 read with Schedule III & all other applicable Regulations, if any, of the SEBI (LODR) Regulations, 2015 (“Listing Regulations”), as amended from time to time

____________

Dear Sir / Madam,

Kindy refer our letter dated January 29, 2026 under Ref. no. SEC/2901/2026, w.r.t. submission of Audio Recording link of the analysts and investors conference call on the Un-audited Financial Results (Standalone & Consolidated) of the Company for Q3Y26 (2025-26).

Pursuant to the provisions of Regulation 30(6) of the Listing Regulations, we are submitting herewith the transcript of the conference call made on January 29, 2026 on the Un-audited Financial Results (Standalone & Consolidated) of the Company for Q3FY26 (2025-26).

The aforesaid transcript is also made available at the website of the Company viz. www.apar.com.

Kindly take note of this.

Thanking you,

Yours faithfully,

For APAR Industries Limited

SANJAYA Digitally signed by SANJAYA RAJU RAJU KUNDER Date: 2026.02.04 KUNDER 13:04:25 +05'30' (Sanjaya Kunder) Company Secretary

Encl. : As above

APAR Industries Limited

Corporate Office : APAR House, Corporate Park, V. N. Purav Marg, Chembur, Mumbai - 400 071, India +91 22 4957 2100/6780 0400 corporate@apar.com www.apar.com Regd. Office: 301/306, Panorama Complex, R. C. Dutt Road, Alkapuri, Vadodara - 390007, India +91 265 6178 740 apar.baroda@apar.com www.apar.com CIN: L91110GJ1989PLC012802

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“APAR Industries Limited

Q3 FY '26 Earnings Conference Call”

January 29, 2026

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MANAGEMENT: MR. KUSHAL DESAI – CHAIRMAN AND MANAGING DIRECTOR – APAR INDUSTRIES LIMITED MR. CHAITANYA DESAI – MANAGING DIRECTOR – APAR INDUSTRIES LIMITED MR. RAMESH IYER – CHIEF FINANCIAL OFFICER – APAR INDUSTRIES LIMITED MODERATOR: MR. AMBESH TIWARI – S-ANCIAL TECHNOLOGIES

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APAR Industries Limited January 29, 2026

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Moderator:

Ladies and gentlemen, good day and welcome to the APAR Industries Limited Q3 FY '26 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 zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Ambesh Tiwari from S-Ancial Technologies. Thank you and over to you, sir.

Ambesh Tiwari:

Kushal Desai:

Good afternoon, everyone. I welcome you all to the Q3 FY '26 earnings call of APAR Industries. To discuss the business performance and outlook, we have from the management side: Mr. Kushal Desai, Chairman and Managing Director; Mr. Chaitanya Desai, Managing Director; and the CFO, Mr. Ramesh Iyer. I would now pass on to Mr. Kushal Desai for the opening remarks. Thank you and over to you, sir.

Yes. Thank you, Ambesh. Good afternoon, everyone, and welcome to the APAR Industries Q3 earnings call. I would like to start by giving a quick overview of our performance and then follow it up with a short industry update. Post that, I would like to get into the specific segmental performance of the 3 major businesses and then finally throw open the floor to questions.

Our consolidated revenue in Q3 came in at INR5,480 crores, representing a 16.2% year-on-year increase. This was particularly characterized by a resilient domestic business performance and a favourable product mix across all business verticals. The export business was affected due to the U.S. tariff situation. If you look at the domestic revenues, it grew by 30% in Q3 FY '26 versus the previous year and 26.9% if you look at it in the 9-month period.

Exports for the quarter were down 11.2%, contributing towards 25.6% of the company's overall revenue compared with about 33.5% a year ago. The U.S. business performance remained quite subdued in Q3. This was related obviously with the tariff-related impacts and especially with an announcement that took place during the quarter of what is called Section 232 where almost 400 product categories were added under Section 232.

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And this covered pretty much most of the cable and conductor products and resulted in an order booking, which was very low in Q2 and the subsequent impact of that has happened in Q3. However, in Q3, the order booking has been better and I will cover that under each of the individual segments.

If you look at EBITDA, the EBITDA is up 20.4% year-on-year to INR483 crores. The EBITDA margin stands at 8.8%. Due to the enactment of this new labour code, we have had to recognize a provision towards past service cost of gratuity and we had to increase the provision amounting to approximately INR25 crores based on the best possible estimates and this has been accounted for under an exceptional loss.

Profit after tax post this exceptional loss came in at INR209 crores, which is 19.4% higher than the same quarter of the previous year. The profit after tax margin is at 3.8%, which is about 10 basis points higher than in the same period previous year.

Now comparing the 9-month figures. The consolidated revenue has come in at INR16,299 crores, which is up 22% year-on-year. The export revenue has grown by 12% and this was on the back of strong export revenues, especially U.S. billing in the first half of the year. We billed in the first half about INR1,600 crores, which is equal to the entire volume that we had done in the previous year.

So EBITDA for 9 months is up by 23.8% and stands at INR1,483 crores. Profit after tax at the end of 9 months is INR723 crores, including the INR25 crores exceptional item, and is up 26.6%. The top line as well as the bottom line are both all-time highs for a 9-month period. In terms of some general industry highlights. India has achieved its highest ever annual renewable energy capacity addition in the calendar year 2025, which is nearly 38 gigawatts of solar and 6.3 gigawatts of wind capacity.

Compared to current year 2024, the solar installations have increased by about 55% and the wind capacity additions have increased by almost 85%, underscoring a sharp escalation in the country's clean energy deployment and also the amount of hybrid installations coming in, which is a combination of wind and solar.

As of December 2025, India's total installed renewable energy capacity has approximately reached 258 gigawatts. Solar energy continues to be the dominant

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contributor accounting for about 53% of the total renewable energy mix. Wind power follows with 21% share and large hydro is at 20%. Bio and small hydro put together form the balance of approximately 6%.

If you look at additionally, India's power sector achieved a historic milestone in energy generation, transmission and distribution as well in 2025 with a maximum power demand of 242 gigawatts during the year and it has reduced the national energy shortage to almost Nil.

On the transmission and substation addition, there is a growth momentum in this regard. According to the latest statistics released by CA, a total of 60,260 megawatts of new substation capacity was added during the April to November time frame, which reflects approximately a 55% increase compared to the corresponding period of the previous year. However, this achievement is only 75% of the planned additions in the period.

With regard to transmission lines specifically, the pace of additions still remains well off the plan. It has improved compared to the first half where 5,077 circuit kilometers have been added in the April to December time frame and as a consequence, it is approximately 15% lower than what it was in the same period previous year.

Now this figure up to 30th September was about 27% lower. So clearly there is some catch-up to be made and the expectation is that in the fourth quarter and onwards, there will be a certain amount of catch-up taking place.

Coming to the specific segmental performances of our businesses. I would first like to start with the largest business division, which is the Conductor division. In Q3 FY '26, revenues were higher by 25.1% on the back of a good product mix. There was also an increase in commodity prices, which provided a tailwind.

Volume actually de-grew by about 5.9%, which was largely on account of some of the delayed clearances and emanating from right of way as well as delays in transformer deliveries that are coming out of a lack of supply of bushings, which is resulting in some of the substation work getting delayed and in turn, the transmission line work getting delayed.

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However, we have been working towards adding several new customers and approvals from utilities overseas. The domestic revenue grew by 37% versus Q3 of FY '25. The export revenue for the Conductor division de-grew by about 11%. The export mix is about 18% compared to 25% in the previous year.

The premium product mix remains healthy at 44.2% and this has grown compared to 37.4% in the previous period. If you look at EBITDA post open forex, it has grown to INR251 crores for the Conductor division. The EBITDA post forex per metric ton stands at INR44,195 as opposed to INR29,593 per metric ton in the same period previous year.

Our order book is reasonably strong at INR7,396 crores, of which exports is contributing approximately 32%. The total new orders received in the 9-month period is at about INR8,052 crores. Coming to the 9-month performance. The 9- month revenue stood at INR8,948 crores, which is up 34% versus last year. Physical volume grew 8.4%.

The export mix came in at 21%. The EBITDA post forex was up 31.2% to INR748 crores and the weighted average EBITDA margin is at INR42,311 per metric ton, which is significantly higher than the INR34,949 per metric ton in the 9-month previous year period.

Coming to our Oil business. The revenues from operations grew 18.4% with a volume growth of 21%. The transformer oil volume was up by about 10.6% and some of the other areas also contributed well. The automotive oil grew 14.6%. The industrial lubricant part of the business grew 15.7%.

Overall, exports contributed 42% to the division's revenue as compared to 43.8% a year ago. EBITDA per KL came in at INR5,331 per KL against INR6,364 a year ago. Foreign exchange depreciation did affect the profitability for this quarter.

On a 9-month period, you are looking at a revenue growth -- a volume growth of 12.3% versus a revenue growth of 5.9%. The revenue growth was a little bit lower because the price of base oil was lower in the first 6 months of the year.

Overall, revenues came in at INR4,062 crores. The domestic transformer oil business grew by 13.4% in this 9-month period. In the same period, automotive

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oil is up 8.9%, industrial lubricants is up 16.8%. And the export mix stood at 41% in the 9-month period.

Coming to the Cable division. The revenue in Q3 FY '26 was up by only 7.6% to reach INR1,362 crores. However, the domestic business had a strong performance and it grew by 34.6%. Overall, exports de-grew by 44.3%, which was basically because the U.S. revenues were down 65% in the third quarter over the previous year.

As I had mentioned in the opening remarks as well as in the last earnings call, we had practically no new order booking that happened in Q2, which resulted in a relatively lower execution in Q3. However, having said that, we have received approximately INR500 crores of new order inflow in Q3, a large portion of which will get billed in Q4.

So we expect the export business to have a comeback and a large portion of this is actually U.S. business. The export mix came in at 17.6% versus 34% in the 3- month period. The EBITDA post forex came in at 8.7% to reach INR132 crores.

And the EBITDA margin is at 9.7% due to a favourable product mix as well as there were some gains on the cable side with respect to foreign exchange as the receivables from previous periods were collected. The pending order book is at approximately INR1,700 crores.

In the 9-month period, the Cable business grew 22.1% to reach INR4,316 crores. Domestic revenue is up 18.6% year-on-year. Export revenue grew by 30% year-onyear especially given the fact that we had a very strong first half. The U.S. revenue actually for the 9-month period is 44% higher than in the same period in the previous year and our expectation is that overall in the year, we will be equal to or greater than what we did in the previous year.

Export mix stands at 34% in the 9-month period versus 32.2% in the previous year. EBITDA post forex grew by 24% to INR431 crores with an EBITDA margin of 10%. So in terms of just concluding remarks, I would like to mention that the 9-month numbers have been reasonably strong.

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The Q3 was affected because of the Cable revenues, which are largely accounted on a DDP basis so they have a lag of approximately 60 to 70 days depending on where the client is located. We continue to see as we enter Q4 geopolitical issues characterized by global tensions and even there is a certain level of commodity price volatility. However, the domestic business continues to remain strong.

The Cable business and orders in the U.S. have also improved to over INR500 crores in the quarter. The trade deal with the U.S., the discussions are still going on, but there is not enough clarity in terms of which way and when the wind will blow favourably. We just heard of an EU trade deal, the details of which are -- the fine print and the exact BTN classification numbers are still awaited.

But our expectation is that it would generally be favourable for both our Cable and Conductor business. So on this note, I'd like to conclude my presentation and would like to open up the floor to questions, please.

Moderator:

Amit Anwani:

The first question is from the line of Amit Anwani from PL Capital.

Sir, first question on the kind of positive surprise on the EBITDA per ton of INR44,000 and I can see on a 9-month basis, we have done roughly about INR42,000. Just wanted to understand you have highlighted better product mix. So, despite there was a challenge in U.S. also for conductor, the growth was kind of hardly 2%, 3%. So what do you mean by product mix?

Is it the premium product where we have seen the contribution of 44%, 45% in 9M versus last 9M was about 37%? So would you be able to explain more in terms of what is driving the strong EBITDA per ton for conductors?

And also would like to understand the volumes growth. So you did highlight it that there's some comeback which is happening. But what is the volumes growth expectation for conductors for 4Q and probably in medium term?

Ramesh Iyer:

Yes. You're right, Amit. In terms of the EBITDA per ton, it is largely because of increase in the premium mix as compared to the total sales of the conductor. As we have discussed earlier also, U.S. is always one of the reasons for the higher EBITDA. But as we have been premiumizing our portfolio over last several years,

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this has made a big impact in terms of increasing the EBITDA margin on a per metric ton basis.

Overall, last quarter 3, we had a premium mix of about 37%, which in this particular quarter has gone to 44% due to which our EBITDA margins have been higher. And of course as you compare it with last year, last year was the lowest EBITDA margin on a per metric ton basis that we saw in the last 4 quarters of the year and this quarter because of the favourable product mix, the margins have been higher.

And also as we have discussed earlier, some of the nonpremium mix also because of the shift from ACSR to AL-59 has been giving a higher EBITDA per metric ton. All of that has contributed to a higher margin in this particular quarter. In terms of volume, overall if you see last year, Q3, Q4 was heavy and we expect that full year should be around the YTD range that we have been getting till now on the volume growth front. That's what we expect as of now to end the year.

Amit Anwani:

Which is kind of 8% to 9%?

Ramesh Iyer:

Yes.

Amit Anwani:

Right. Sir, second thing, so is it fair to assume that since premium is, as you rightly said, even on the EBITDA per ton basis is doing fairly well and I can understand that premium large portion of contribution is coming in the domestic market. And we are growing very strong in the domestic market. So the sustainable EBITDA per ton, are you revising that guidance of INR30,000-plus because we have been delivering exceptionally well on EBITDA per ton still despite the U.S. challenge?

Ramesh Iyer: We'll continue with the same guidance that we have been giving in the past. Of course we have been saying the tailwinds are always not so easy to predict given the various macro challenges and domestic competition that comes. But within that tailwind, as we have a more profitable order, the tailwinds are expected to be higher. But for now, we'll continue with the same guidance.

Amit Anwani:

Right. Sir, in terms of commodity impact, how one should read it? So you have been highlighting that this is a pass-through and I think in the last call, you did highlight that probably the customers might be putting project or inflows on hold

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because of high commodity price, especially copper, aluminium. So if at all there's an impact, is there a chance that we might also have to take a hit or what exactly are you anticipating for 4Q and Q1 in terms of commodity price impact, whether on the business or the margin, conductors and cables both.

Chaitanya Desai :

So you're right. Our business model is a pass-through so we are not taking any risk on the commodity prices per se. However, you also are right what you said that if the clients who have taken the risk of the commodity prices are sort of off compared to the assumptions they have made when they won the business, then sometimes they are waiting for the commodity prices to come down in order to go ahead with the deliveries. And to the extent their projects can afford to delay a little bit, they are exercising that option of delaying some of the supplies.

So right now, we have seen a little bit of that affecting us in this Q3 and it is possible in Q4 also, there could be some. Although as of now as things stand, we feel that Q4 will be as per our original expectation. But again if the commodity prices go up the way they have been going up since the last couple of months, then there is a possibility that some customer may face some difficulty and postpone some of the deliveries. However, at some point, those customers will have to take the deliveries to complete the projects.

Amit Anwani:

Right. Sir, in terms of tariff, which is still 50% and you did highlight it in the past calls that conductors value I think 25%, 30% is affected and for cables, almost 50%. So what is the view now? Are we back on track in terms of better performance in 4Q? You did highlight it that I think we got INR500 crores orders.

So what is the status now, assuming that 50% tariff still continues? Is it Q4 or Q1 when we see the normalized business? And how is the customer response now after the ongoing projects, which might have saw they taking the hit in terms of increased tariff?

Kushal Desai:

So the current tariff situation remains the same at 54%. So whatever order inflow we have got in Q3, which is approximately INR500 crores for the cable business, where we have had to adjust the prices down to some extent to keep the order flow going. So mind you, there's also been some increase that has happened across the board because other countries also have had some increase in tariffs.

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And the Section 232 has also raised the prices of products in the U.S. So that has provided some amount of cushion. But overall, we have had to reduce prices to some extent in order to book fresh product. I had mentioned in the last earnings call as well that for us, the U.S. market is a very strategic market. We've spent several years building access to customers.

We've got approvals now coming in from some of the data centers and critical clients, which takes a very long cycle to get approvals from. So our strategy is to continue to ride this period by making sure that we service customers there even though it means at a slightly lower margin, but that strategy is something that we will continue to follow.

And given a period of time, we are hoping that there will be some normalization that comes on the tariff front. Having said that, we've increased our efforts to pick up business from other areas. And the domestic market has been reasonably strong, which has offset at least in Q3 some of the deficits that we had on the export front. So I hope that answers your question.

Amit Anwani:

Ramesh Iyer:

Kushal Desai:

Sure, sir. Sir, lastly, just clarification on U.S. revenue. You spoke about INR1,600 crores last full year and INR1,600 crores H1 and I think you did highlight it that this year, we are looking for equal to last year. So does that mean 0 U.S. revenue for H2? Is it the right understanding?

It will be higher is what we said.

No, no, no. What I was saying is that in the last year, the U.S. business in the first 6 months, as you rightly said, was equal to approximately what we did in the previous year. So with the gap that we've had in Q3, as we get into Q4, you'll get back into this. INR500 crores order book which we have, a significant portion of that will get executed in Q4.

And plus we are still in discussions for additional business to come in. And depending on -- most of that will get then picked up in the first quarter of 2027. But you will see close to INR500 crores of revenue that will come into Q4 of this year.

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Amit Anwani: Sure, sir. Sir, possible to share the U.S. revenue for 9 months basis for conductors and cables.

• Kushal Desai: We don't have that number handy right now. I have the 6-month number, which was equal -- INR1,600 crores is the 6 months. I have an overall export number, which is what I gave out. Yes.

Moderator: The next question is from the line of Umesh Raut from Nomura.

• Umesh Raut: Congrats for a very good set of results against I think more of a softish quarter what you guided last time for Q3. I think it was more of a positive surprise. So my first question is on recent FTA between India and EU. And I want to understand how big EU market is in terms of conductor and cable and how competition is also running over there? Are there any duties against Chinese players from EU countries and how we can approach approvals from EU countries?

• Kushal Desai: Okay. So the fine print of the EU deal is still something that we need to go through. Our sense is so you have to actually look at each BTN number to see whether the specific product that we manufacture and are exporting to the EU are covered under a 0 tariff or a lower tariff situation. The European market otherwise is very large, but the access to the market has been very restricted because the utilities there tend to prefer to buy EU manufactured product locally.

• So I think the assessment of this European deal and the consequence to us, it will still take us a little time before which we can really put this together. I mean it's bound to be more positive than what it was before, but to what extent, I think we still need to gauge that.

Umesh Raut: Understood. And currently, how much of your export revenues are from EU?

• Kushal Desai: About 5% of our revenues have been coming from there. Umesh Raut: Understood. Now if I look at our Conductor segment, I think if I look at domestic market since last, say, 1 year or so, there are I think delays happening in terms of transmission projects. And if you look at our volume trajectory as well, maybe for this year we will close with about 8%-plus kind of growth on volume side. So I think going into FY '27 considering that there were delays in '26 and there were also

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issues in FY '25 as well. I think how can one factor in volume growth for Conductor business in FY '27?

Kushal Desai:

So currently, there is a backlog which is there because of, as I mentioned in my opening remarks that there is a problem of transformer deliveries because of the lack of bushing and the bushing capacity that's available. So the government is actually making a concession for import of bushings, which will kick in very shortly within the next week or so. In the meantime, the bushings capacity in India is also getting increased.

Several new plants and brownfield expansions in place. So in about 6 months' time, we expect that the domestic side will also increase. But as this import clearance comes in, you will start seeing the execution of some of these pending orders getting cleared. Some of the transformers are in a half made not a completed sort of form of situation.

So that itself will end up driving demand for transformer oil as well as some of the transmission lines which have been stalled, they will also start getting accelerated. There are some right-of-way issues also which have added to this. Our understanding is that there is some movement in that direction as well. So overall Q4, as I mentioned earlier, we expect a much better situation on the ground.

Umesh Raut: Yes, correct. That I understood. But going into FY '27, as you mentioned correctly, I think lot of these legacy issues are kind of getting resolved. So at an industry level, we will see much faster ordering.

• Kushal Desai: Yes, our sense is that because if you see the plan which is there, we are still 15% behind the plan. And you also have a lot of new solar installations likely to be coming in both from the big business houses from the Adani side, from the Reliance side, etcetera. So the transmission line demand should continue to be there. Difficult to track it quarter-by-quarter because of these various approvals and things like that, but there is no slowdown expected in the trend.

• Chaitanya Desai: As I mentioned earlier, that some of the delays which the client could afford to do they have probably been utilizing that leeway this year. But next year, it is possible they may have to catch up all that.

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Umesh Raut: Understood. So is it fair to assume that we will return back to double-digit kind of volume growth for…

Kushal Desai: That's clearly the target. And actually if you look at the 9-month period, the growth is still pretty strong. It's still at about 8.5% volume growth if you look at the 9-month period. But yes, we expect next year volumes to again be back double-digit.

Umesh Raut: Understood. Understood. My last question is on cable side. I think a couple of years back we guided for our strategic endeavour to grow at about 20% CAGR till FY '28 and reach at about close to INR10,000 crores. So where are we on those plans on the top line growth side for Cable business?

And second, I think on the EBITDA margin side, our endeavour is also to get into double-digit range more closer to 11%. I think for this year at least, we are slightly falling behind. So how you are planning to approach margin trajectory for this particular business?

• Kushal Desai: So if you take the 9-month period, volume -- I mean our revenue is up 22%. So we are tracking on a 20%-plus CAGR growth. Given the 9-month performance and what we see in terms of visibility for Q4, we should definitely be in that 20%-plus growth range. In terms of EBITDA, 9-month EBITDA is at 10%. And of course the U.S. business actually and having to make some sacrifice on pricing in the U.S. is going to have some impact on the EBITDA in the Cable business.

But as I said, it's a strategic call we've taken and our belief is that in the long term something or the other will come up to iron that out. In the meantime, we don't want to lose access to the market, which we've developed. So overall, I mean we've been managing between other markets, domestic etcetera, to maintain both top line and bottom line so far.

Moderator: The next question is from the line of Kunal Sheth from B&K Securities.

• Kunal Sheth: Congratulations on a good set of numbers. Sir, first question is around this new line of business announcement that you have made, that INR156 crores order. If you can talk more about it, our scope of work and how big the opportunity is for APAR?

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Kushal Desai:

So actually it's really an extension of what we're trying to do in the Cable Solutions space around telecommunication and the telecom products. So really, we won 1 package in the Kavach project, which is basically increasing the security and safety in the railway lines. So that package is about INR153 crores. It will take approximately, we just formally received the order today. We received an LOI earlier.

Execution and time frame is approximately 22 to 24 months and it entails setting up signalling for improving the safety in the railways. Now Kavach projects, actually if you see, totally the railways will be spending upwards of INR40,000 crores, INR50,000 crores in upgrading safety standards. So this is like our initial foray into that.

Kunal Sheth:

Kushal Desai:

Sir, my second question is related to export and this is for both Conductors and Cable business. Sir, what is the kind of conversations that customers are having now especially in the U.S. market given the commodity volatility, this tariff has continued for too long now. Do they still continue to believe that they will keep sourcing from where they were sourcing or how are they thinking about of this situation?

So on the tariff front, you have 2 sets of products. You have products which are aluminium-based and copper-based. So the copper-based products for somebody exporting from India, the effect is very big, very huge because there is a reasonable amount of copper production within the United States and, as a consequence, the local producers are not picking up that 50% tariffs.

On the aluminium front, 90% of the U.S. aluminium is actually imported and as a consequence directly or indirectly, whether it's in the form of an ingot, rod or whatever stage, you're picking up the 50% tariff on an aluminium-based product.

So the conversations that we have with clients are also varying depending on the nature of the products that we have. So for aluminium-based products by making an adjustment in the price, we are still in a position to make a positive margin and continue the access to that business. Whereas on the copper side, things are very different because the U.S. copper rates are quite competitive and if you have to pay the tariff to export to the U.S., then there will be a problem.

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Now having said that, most of our volume so far has been aluminium-based. And so our market access will get a little bit reduced, but it's still there and customers are still having conversations with us. We've been exporting to that market now for several years and our products are very well received in the U.S. by EPC players, by asset aggregators, etcetera. So conversations are still happening. That's how in spite of everything, we did pick up almost INR500 crores of business, new order book in Q3.

• Kunal Sheth: Sure, sir. And sir, if you can quickly also give some update or status of the capex on both conductors and the cable side, where are we on that?

• Kushal Desai:

• So we are pretty much on plan. We've already completed about INR500-plus crores worth of capex as of Q3 out of a total plan of about INR1,400 crores. We expect that in Q4 and Q1 of FY '27, a large portion of that remaining capex will actually take place. And by September, I mean by the mid of FY '27, we'll pretty much have all the facilities up and running.

• Moderator: The next question is from the line of Vidit Trivedi from Asian Market Securities.

• Vidit Trivedi: Congratulations, great set of numbers. Most of the questions have been answered. Just a few clarifications I wanted to know. First, you have mentioned that your share was hardly 5% from the European Union. Just wanted to know, this was as of last year or for the 9-months period?

• Ramesh Iyer: It was for the last year and it's an approximate number for the last year.

• Vidit Trivedi: Okay. And sir, what's the situation before the tariffs and after the tariffs? I mean how does -- what difference is there? What's the tariff situation?

• Kushal Desai: So the European tariff varies between 4% and 7.5% and there was also an antidumping duty on Indian players for fiber optic products -- fiber optic cables. So we have to see, as I said, in the fine print that where does this actually finally land up. It's definitely going to be more favourable than what it was before, but what will be the exact percentage for the different classes of products. That information we don't have yet. It should be something that will come out shortly.

• Got it, sir. And sir, what will be the margin profile?

Vidit Trivedi:

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Kushal Desai:

The margin we have added and we were fully aware that this whole conversation was happening between India and the EU. So we have been working on getting more utility approvals in Europe and that process is also underway. Our sense is that with the EU deal being signed and if the tariffs actually fall. The utilities and other players will start taking Indian manufacturers more seriously because if you sign an FTA, it is not a short term.

It's a much longer-term sort of arrangement. So it gives much more stability in terms of what the tariff situation will be over the years. So I mean we will be able to lay our hands on this and be able to answer some of these questions in a couple of months once data is more clearly available. But all of this is positive.

• Vidit Trivedi: That's helpful, sir. And sir, what will be the margin profile in the new line of business, the Kavach project?

• Kushal Desai: In specific, yes, we don't want to comment on specific projects because then that opens up. We have so many other projects which are running on the conductor side as well. But it's a profitable order and it's something that I think is very strategic because a lot of business is going to come fundamentally in that direction.

• Vidit Trivedi: Good, sir. Sir, just last one. Would it be possible for you to give a breakup in terms of volume and value growth in the Cables division?

• Ramesh Iyer: Cables division, we actually report the value numbers because there will be too many products involved. So we have historically always been giving the value numbers.

• Kushal Desai: We have thousands of different varieties of cables. We have the largest variety of cables being manufactured by an Indian manufacturer. So the only common denominator really is value.

• Moderator: The next question is from the line of Sanjeev from Antique Stock Broking.

• Sanjeev: Sir, my question was regarding the demand drivers for the cables in the domestic market. I also wanted to understand what is the demand mix from the various sectors that we have in the cables.

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Kushal Desai:

So we have continued to see for us strong growth coming from the renewable energy side, especially given the fact that APAR Cable division is the major supplier to all the windmill manufacturers. So as the wind installations are increasing, we clearly get a benefit out of that. So renewable side has grown. The railway business also has grown year-on-year. We are the main supplier to Medha, who is currently executing the first set of Vande Bharat trains.

So again the growth from the railway side has also increased. We are accessing and supplying to a number of data centers in India. So we've seen growth in that channel as well. There has been some amount of growth on the defence side. So these are the channels where we've seen most of the growth taking place.

Sanjeev:

Kushal Desai:

And sir, how is the affordable housing and the real estate sector doing for you in terms of demand driver?

So most of that is being serviced through a dealer distribution network. And APAR compared to some of the larger cable companies in that space, we are still relatively smaller and we are offering premium products in the wire side. So our emphasis has not been on the affordable housing.

It has been actually on more large commercial installations, bungalows and wherever people have laid a premium on safety because our products are all focused on a higher performance level with respect to safety. So we are really not very focused on the affordable housing market as much as on the more premium wires that go into commercial and residential, industrial I mean real estate.

Sanjeev:

Kushal Desai:

Okay. And any pricing actions we have taken in the cable side, on the wires side as well as on the cable side post the strong run-up in copper prices?

So we've actually increased prices to cover the delta in copper. So the entire copper pricing has been passed through. All the B2B orders that we take, we'll take it only on a back-to-back basis. So any order which is 25 metric tons or higher of copper that's involved or aluminium, we would take a specific hedge. In the case of smaller orders, we accumulate it until it reaches that number and then take a hedge.

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So the book is largely hedged. And new business, we have increased the pricing to the extent of that. So it's not only the commodity increase, but it's also the exchange rate. So the effect is the dollar increase in aluminium and copper multiplied by the exchange value. So that entire thing has been factored into the pricing.

Sanjeev: And sir, on the premiumization on the conductor side, it's largely now around 45%-odd level. To what extent it can potentially go in the medium term?

• Kushal Desai: So I mean we are already in the mid-40s. It all depends on how much reconducting work keeps coming up. And our sense is that if you look at it in the medium term, there will be a lot of re-conducting required. As you have data center projects that are coming up, even in India even though we have few projects which are in the gigawatt category, there are several projects which are in the hundreds of megawatt category. So these require a lot of energy. And so when you add that to whatever other growth is taking place, re-conducting is bound to be a larger business.

• Chaitanya Desai: Also, our capex’s are going more in those categories where there's more premiumization. So as the phase-wise expansion happens, then some of these premium products will increase in the volume for us.

• Kushal Desai: It can cross 50% in revenues. But it's all a question of how the adoption of these things come. We are ready with our capex. We are ready with our capacities, with approvals and everything. So moment tenders come in and the spending takes place, we are right there to be able to pick up our share.

• Chaitanya Desai And some of these premium products that we are making are in the copper category. So value-wise, they will have a higher pro rata value.

• Moderator: The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund.

• Nikhil Abhyankar: I've got couple of questions. Sir, you mentioned that the order book has improved significantly from U.S. in Q3. But on the Cables division, we see that there has been a dip Q-o-Q. So just can you clarify on that? And also can you highlight how has been the ordering trend in Q4?

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Ramesh Iyer:

Sorry, can you repeat your question?

Kushal Desai: I think Ramesh, the question was that the order book has improved whereas the numbers for Q3 are low. Nikhil Abhyankar: I was saying, sir, you mentioned that the order book, order inflow has started to improve from Q3, but we see a dip in the order book for the Cables division Q-oQ. So just some clarity on that. And how has been the order inflow trend in Q4 if you can tell us?

• Ramesh Iyer: What we mentioned is that the U.S. orders dipped in Q2 due to which there was less sales in Q3. So what we mentioned is that the order inflow in Q3 has gone up as compared to Q2 in the U.S. market. And cable business typically operates on a low order book period so even if there are a lot of orders that comes during the quarter and also gets executed in the quarter. So even if there are quarter-onquarter order book reductions, typically it gets made up from the new orders that comes and gets executed in the quarter.

• Kushal Desai: So these days from order to delivery, the expectation is a bit shorter. So you will find that the order book may vary especially when you've got things like windmills coming up and solar, every month you keep getting orders and you execute fundamentally in 3 to 4 weeks. So I would not be very bothered about the pending order situation on the cable side. On the conductor side, it's a much longer cycle business and I think that number then is far more important.

Nikhil Abhyankar: Understood. And sir, on the domestic side, are we seeing some kind of slowdown in ordering? Kushal Desai: Not really. If you see our domestic Q3 number is up 33.4%.

Nikhil Abhyankar: Going forward, I mean in terms of inquiry and the pipeline?

Kushal Desai: Sorry? Nikhil Abhyankar: In terms of inquiries, future inquiries and pipeline? Kushal Desai: We are reasonably well placed on the domestic side. In fact we see the domestic side on the cable business particularly being quite strong.

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Nikhil Abhyankar: Okay. And just a final question. You mentioned that you have also -- you're also getting orders for data centers. If you can share what is the ticket size of these orders?

Kushal Desai: So in India, the data center sizes are varying very dramatically. So you have right from smaller data centers, which are in the 10 megawatts, 15 megawatts. These data centers are measured in terms of the amount of power they consume. And you've got in Ghansoli, Adani setting up a 1 gigawatt data center, which is New Bombay. So it's really rarely in terms of size. But there's a lot of more data centers coming up and the requirement of cables has been continuously increasing for that application.

Nikhil Abhyankar: I mean in terms of wallet share, what would be our wallet share in total project cost for data center?

Kushal Desai: It's in the same range as what you would see in renewables and stuff where you're looking at it at around 3%, 4% or so. Moderator: The next question is from the line of Mahesh Patil from ICICI Securities. Mahesh Patil: My first question is on the cables exports. So if you see the exports were down 65% from the U.S. market. However, the overall exports are down 44%. So clearly there is some increase in other markets. So if you can highlight how we have grown in other markets and how is the growth sustainable?

• Kushal Desai: So we have -- besides the U.S., we've been exporting products to Latin America, some products to Europe and Australia. We also have a presence in some of the African countries. So that presence continues. There is Chinese competition in all the geographies that I mentioned. But there are pockets where we have the products, we have the approvals and we continue to grow in those areas. Some of them are utilities like NL where we would be supplying directly to the utilities.

Mahesh Patil: Okay. So nothing extra in this quarter that has happened, right? I mean this is just business as usual?

• Kushal Desai: This is a relatively steady business. The U.S. piece is relatively large. As you can see, there was less business in 1 quarter, the number fell. In the next quarter, we

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started getting a new order inflow. And so in Q4, you will see that INR500 crores is approximately the order book signed up in Q3, which will be largely executed in Q4 of this year.

• Mahesh Patil: Okay. And sir, second question is on the conductor side. So if we see various premium conductors, HTLS, AL-59, etcetera. So if you can highlight -- so as far as I understand, HTLS is mostly going into re-conducting, AL-59 is used in coastal areas. So if you can highlight the demand trend for these conductor types?

• Chaitanya Desai: So AL-59 is also used in TBCB not just the coastal area. So it is almost currently along with the conventional ACSR conductor comprising of maybe 98% of the market in India. 2% right now is almost like the re-conducting, very small right now. It's more of a niche area.

• Mahesh Patil: Okay. And sir, there were some news around many of the states going for premium conductors compared to replace the existing ACSR network. So how do you see the opportunity?

• Chaitanya Desai: AL-59 is what people are using nowadays in India in a major way. So it is relatively better than the ACSR, but it is still in the category of conventional, this AL-59.

• Mahesh Patil: Okay. So AL-59 is categorized -- when you say premium products, AL-59 is not part of that, correct?

• Kushal Desai: Correct. It is also getting very competitive.

• Mahesh Patil: Okay. And sir, last question on the cable side. If we are saying that the Cables business is likely to grow at 25% rate year-on-year. Just wanted to understand if we look at sub-segments like power, cables, RE cables or the domestic cables, etcetera, I guess power cables is the majority part of the capex in that sub-segment. So just wanted to understand, sir, sub-segments will be growing at -- 15%, 20% sub will be growing at more than 30%. So if you can highlight some of the key growth drivers in Cables business?

• Kushal Desai: So as I mentioned earlier, for us the key growth drivers really are coming from the addition of renewable energy, the addition in the Indian Railways, some of the growth that's happening on the defence front. And then if you look at infrastructure

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side, the presence that we have in MVCC and data centers. So these are the major areas where we see the growth taking place and our sense is that this is going to continue. These segments will continue into the next year and beyond.

Mahesh Patil: Okay. And sir is it possible to give the share of, let's say, power cables in our overall business?

Kushal Desai: We've not been actually giving the detailed breakup of that.

Mahesh Patil:

Got it. Thank you.

Moderator: Thank you. The next question is from the line of CA Garvit Goyal from Serene Alpha. Please go ahead.

• Garvit Goyal: Congrats for a good set of numbers. Just 1 question on the kavach side only. Despite it is our initial contract that we got, I just want to understand what is our exact role going to be here in future as well in the upcoming contracts as well as in this contract as well?

• Kushal Desai: So it's a complete turnkey so it's the supply and installation of the entire system. So there is a fiber optic and a cable portion, which is part of that and then you have towers, you have the installation, there are some passive components, some active components. So it's a complete turnkey. So all these projects are awarded on a full turnkey basis.

Garvit Goyal: Understood. And from whom we got this contract, sir?

Kushal Desai: Contract is from the Indian Railways. Garvit Goyal: Okay. Understood. That is it from my side. All the best for the future.

Moderator: Thank you. The next question is from the line of Nikhil from Kizuna Wealth. Please go ahead.

Nikhil: So my first question is like in our investor presentation press release that we uploaded, you stated that volume for the connectors were impacted due to increased competition from the non-U.S. geography. So can you elaborate more

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on that? As per your initial remarks, you said that it was due to the transformers. So can you elaborate more on that part?

Chaitanya Desai: Actually the line was not very clear, but was your question to do with the Chinese competition?

Nikhil: No, sir. Am I audible, sir?

Kushal Desai: Yes, now you're audible.

Nikhil: As per our investor press release that we uploaded, you have said that the conductor volumes were impacted due to increased competition from non-U.S. geographies. In our initial commentary, we stated that we also have the volume problem due to -- in the domestic market due to transformers. So can you elaborate more on this volume? How are we looking at the trends going ahead too from both the non-U.S. geography perspective and domestic perspective?

• Chaitanya Desai: There are two different matters I think, which probably you have got mixed up in your question. One part is to do with the non-U.S. geographies, which are like the rest of Asia other than India, then Africa, Middle East, Europe, Latin America, et cetera. So there we have been impacted due to the Chinese competition. That is one part.

• And the second part is to do the transformers where we were saying that the transformer manufacturers were not getting certain inputs like the bushings. As a result, their delays were happening for the execution. And therefore, they were delaying some of the requirement of transformer oil and the CTC. So that had impacted in a different way the demand for us.

And the substation also is getting delayed because the transformer is at the heart of the substation. So there to relax this particular supply situation, the government is now allowing Chinese manufacturers bushings to be also used in the execution of transformers to alleviate this problem.

Nikhil: Okay, sir. That's really good to hear. Sir, my second question is also like we had the global approval from the Microsoft for data center cables. So are we also going

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to look at like the impact on the cable segment from the data center perspective in the U.S. geography?

Kushal Desai:

We have been looking at that. Unfortunately, for us, the U.S. data centers largely use copper-based cables. And as I explained earlier, the pricing of copper in the U.S. is very competitive relative to the rest of the world. It is competitive. In the case of aluminium, we import 90% of the aluminium. So the effect of the Section 232 is 50% tariff is much more on aluminium-based products and relatively less on copper-based products.

So as we try to export copper-based cables from India, we would face a significant tariff differential compared to in the case of aluminium. So we are not able to export very much of copper-based products at the moment until this tariff situation changes. And until it changes, we won't be able to access most of the data center requirements.

Nikhil: Okay, sir. So sir, now on the respect of our order inflows on the cable segment. So we saw like in the month of post September like there were 2 months that we had a muted order book in the Cable segment. So how does it look from the November, December, January perspective till now? And how do we expect the trend post July like you already said that post Q1, we will be able to normalize the business order inflows. So how has been the month of November, December and January, sir?

Kushal Desai: So last year, we mentioned that we had an order inflow of cables of about INR500 crores from the U.S. So there is an inflow of business that has started coming in now.

Nikhil: So sir, my question is like was it like a consistent business or it was lumpy one order flow or something like that?

Kushal Desai: No, several orders meaning from several different customers and different projects which are in involves. These are all project-related orders, which we've received and are executing or largely project-related orders. So it's not just one lumpy project.

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Moderator:

The next question is from the line of Swastik Ghadge from Ekvity Wealth Management. Please go ahead.

• Swastik Ghadge:

• Congratulations on a good set of numbers. So I have few questions. So the first one is time and again you have been alluding to or saying that we are looking to set up manufacturing in U.S.A. And if I recall clearly in the last call, you mentioned that U.S. utilities usually don't buy from exporters, they buy directly from domestic players. So what is stopping us actually? Are we still thinking what are the metrics that we are looking to so that it fits our thought process there? That's my first question?

• Chaitanya Desai: So basically we are doing our studies, but as you know, the situation is quite fluid. So we are also watching the situation and then appropriately we'll take decisions.

• Swastik Ghadge: Okay. Second question, sir, is more on the recent management change that we saw in the Cable Solutions business where the CEO sort of resigned and then we saw that the CEO joined our competitor. So currently who is heading the Cable Solutions division? Is it directly overlooked by you or are we looking to...?

• Kushal Desai: So we have -- Mr. Chandrashekhar Shrotri has joined the Cable business. He joined on the 4th of December so he's been in the role for almost a little over 1.5 months. Previous to this, he worked for Siemens for 30 years and was in charge of the low voltage business across 27 or 28 different countries. So very seasoned individual who has been involved not directly in cables, but very familiar with the customer base as well as the channels.

• Swastik Ghadge: Okay. And also, sir, on the wires and cable side so we have guided that we will grow 25% to be precise with 10% to 11% margin rate. So we have achieved that 10%, but 25% growth we fell quite short in this quarter and if we see 9 months, it is 22%. So do you think that this Q4 and whatever order we have from the U.S. because we are losing margins there so we will be able to suffice that growth? And of course we can't get both, but can we get the volume growth that we are looking or the revenue growth we are looking at?

• Kushal Desai:

• So that's the guidance which we've given that we will be for the year definitely 20%-plus on the revenue front. And we are trying to track an EBITDA, which is

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close to what we've delivered for 9 months in spite of having to sacrifice some amount of margins on the U.S. business.

Swastik Ghadge:

• And only 1 last question, sir, if I may. I think we have been developing good products and technical products over the years and now with this new capex coming up in cables as well as some part of it going to conductors, are we looking for more higher technical products like HVDC or HVAC sort of where the industry might go going ahead due to all the surge in energy demand? And also your quick comments on the new draft NEP that we saw that was announced by the Government of India?

• Kushal Desai: The expansions what we are doing are having a mix of the premium area as well as fungibility with the normal requirement, conventional requirements also. And our efforts will be always to use our assets for the more premium products. But with the backup that in case we don't get enough orders of premium, then we can utilize those assets for the general purpose type also.

• Swastik Ghadge: And your comment on the NEP, sir, if you could give some color?

• Kushal Desai:

• Are you talking about the announcement for the India EU deal you're saying?

• Swastik Ghadge: No, no. The new National Electric Plan that the Government of India announced wherein we have increased the guidance for FY '32 too -- I think we have increased that guidance on National Electric Plan?

• Kushal Desai: Yes. So we are generally positive that the demand in India will continue to be good. We've put in capex, which is if you see the commentary from some of the previous earnings calls, we've gone ahead and put capex 1 to 2 years ahead of the actual sale likely to take place simply because we are bullish on demand going forward.

And these days to set up the capex, the capex cycle itself is much longer especially if you go to some of the best equipment manufacturers. So the capacity is going to be in place for us to be able to take into account increased business flow coming in. So if demand exceeds whatever has been projected, we should still be in a position to pursue that opportunity.

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Moderator:

The next question is from the line of from Raman KV from Sequent Investments.

Raman KV:

It's not a question. It's just a doubt. From what I'm hearing, there has been -- with respect to renewables, the PPAs which have been signed, there is a -- how do I put it, decrease in the new PPAs that has been signing in terms of renewables mainly because of fearing overcapacity of modules and cells coming up in India. So how are you seeing the overall demand with respect to the renewables as the end user?

A follow-up on that is due to the recent increase in the silver prices, renewables are -- how do I say, are not -- are becoming expensive in terms of capex cost. So is that putting difficulties in terms of new renewables project, which the government plans to tender out? Or I just want to understand the entire current dynamics of the renewable energy ecosystem in India playing out?

Kushal Desai:

So we are seeing currently a demand coming in from wherever PPAs have already been signed and the executions are taking place. So that's 1 aspect. Second side is this rooftop solar is increasing everywhere. So even that is a segment that results in increased requirements of wires and cables. Thirdly, the wind side, as I mentioned earlier, is growing at a faster pace than solar simply because the base is currently lower.

But that forms the third sort of vertical where we are seeing growth on the renewable side. So overall, we've not seen any major slowdown, even the projections that we have for Q4 coming from solar and wind additions, both of them seem to be reasonably strong. So we've not really seen any major slowdown on this front.

Raman KV: Okay, sir. And sir, I just have just a follow-up on this. Among the Cable division, what kind of cables are you seeing a tremendous growth? Is it like a high voltage cable or a low voltage cable?

Kushal Desai:

So in our case, we are very focused on certain verticals, As I mentioned a couple of times earlier in the call that we've seen growth on the renewable side. We've seen growth in the railways. We've seen growth in defence and we've seen growth taking place in data centers and in our medium voltage covered conductors, in

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MVCC. So these are the areas where we are seeing growth. Overall, I'm sure there's growth even on the industrial and commercial side, et cetera, but we are not the strongest player in that category.

• Raman KV: Understood, sir. So basically solar and telecom cables -- telecommunication cables?

• Kushal Desai: All of these areas. As I said, railways, defence, data center has also got a lot of power cable requirement that's copper-based or aluminium-based. And MVCC is all aluminium, which is the upgradation of the last mile distribution -- overhead distribution lines. So these are all the areas APAR is seeing growth.

• Moderator: The next question is from the line of Amit Anwani from PL Capital. Please go ahead.

• Amit Anwani: Question on the INR500 crores order win, which you said has happened in the U.S. So what's the impact we took versus pre-tariff? Was there an impact on margin? What are the terms for these orders and what can we expect for upcoming orders? You last time highlighted that for the older projects, the customers are willing to absorb, but how about these newer projects which you have?

• Kushal Desai: It's a variety of cables and from a variety of customers. So depending on what the local competition is, we've had to make some adjustments in prices. So it's varying across the product categories. But clearly there is -- I don't want to specifically talk about how much is the margin hit, but there is clearly a compromise to be made on margins, but we've seen that as that compromise is made, the order inflow is taking place.

• Amit Anwani: Sure. But there would be some impact, right, pre-tariff impact?

• Kushal Desai: There is, but I don't want to comment specifically because it's a big variety of cables and orders. There is some impact. But overall, as we said, we are still targeting hitting what our guidance is for the year and this INR500 crores is going to help definitely achieve the top line. And as far as the bottom line is concerned, we are trying to be within the same range as we are in today.

• Amit Anwani:

• So is that the cables margin still will be impacted for 4Q?

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Ramesh Iyer:

Amit Anwani:

Kushal Desai:

So there are a range of products, Amit, as you know, that we sell in cables and different products will have different margin profile. So as we said that we don't want to divulge specific information on this U.S. project, how much the margins will behave. But overall, we have been like -- we've been guiding about 9.5%, 10% margin and we expect it should be around this level. YTD already we are at 10%. We expect that our margin profile should be in similar range more or less.

All right. Sir, more details on re-conducting. You said it's a big opportunity. So any color in terms of market whether in terms of maybe circuit kilometer or the value which came in, let's say, for F '20 -- current financial year and what is the expectation for next 2 financial year? Any data on that in terms of circuit kilometer or value? And then how APAR is standing? Are there a competition or what is the wallet share currently in terms of re-conducting? If you could explain more?

So unfortunately, there is no published data. In our own way, we are making our assessment. And our year-to-year slightly fluctuates also as to how much is the breakup between the conventional type and the HTLS type. But our current estimate is roughly 2% by volume. In HTLS though, there is a service component of the labour to actually put up the line and some designing aspects also, which is little more value-add for us.

And as far as the future is concerned, we expect that higher growth pro rata it has a low base or it may have percentage-wise little faster growth of the HTLS compared to the conventional. But it is a much more expensive product so clients are choosy when to use the HTLS and especially when there's some -- no choice is there due to ROWs, then they may go for that option. But if they find that there is another option, then they may go for a new line instead.

Ramesh Iyer:

And on the competitive strength, I think we have elaborated it more in detail in this corporate presentation. We've completed more than 175 projects in difficult terrains, et cetera and it's more appropriately elaborated there. So you may want to have a look at that to see what are our competitive strengths in this particular reconducting opportunity.

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Amit Anwani:

Sure. Sir, this MVCC, this is also included in re-conducting, the upgradation of overhead distribution through MVCC you highlighted? Is it also part of reconducting?

Kushal Desai:

The manufacturing of medium voltage covered conductors are actually done in the cable business because it's an insulated product. But if you take it on a turnkey basis, then our projects division actually takes it on a turnkey basis. So they do the execution of the projects. Today, bulk of our supply has been going through thirdparty APC players.

Moderator: Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.

Kushal Desai:

• Yes. I'd like to take this opportunity to thank all of you for joining our Q3 earnings call. And as I mentioned, we continue to remain optimistic in terms of delivering whatever guidance that we had for this year. We will clearly see a higher revenue coming in from our U.S. exports in Q4.

We also see that the fundamental demand drivers continue to remain intact. And the company is on track with respect to its capex plan and look forward to actually improved utilization of all the new equipment that comes in over the next few years as the demand for our products continues to increase. APAR is clearly the leader in carrying current in all different -- between conductors, cables, transformer oil, et cetera. And carrying current business is going to only increase as the years come by. So with that, I'd like to end and thank you very much for joining us today.

Moderator: Thank you. On behalf of APAR Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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