RIR Power Electronics (BSE:RIR) Q2 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the RIR Power Electronics Limited Q2 FY 'twenty seven Earnings Conference Call hosted by Veritas Reputation. 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. Please note that this call is being recorded. I now hand the conference over to Mr. Abhishek Sawan from Merita's Reputation. Thank you, and over to you. Yes. Thank you, and good evening, everyone. On behalf of RIR Power Electronics, I extend a warm welcome to all participants joining us for the Q7 FY 'twenty seven earnings conference call.

0:53 We appreciate your time and interest in joining us today to discuss the company's performance for the quarter ended 09/30/2026. We truly value your continued interest and support. As you are aware, the financial results for the quarter have already been disclosed to the stock exchanges and are also available on our website. Accordingly, today's session is designed to provide deeper insights into our operational progress, industry outlook and the company's long term value creation journey. Following the opening remarks by our senior management, we will open the floor for a quick Q and A session. Finally, request you to keep your questions concise and relevant to allow a broader participation.

1:46 Before we begin, I would like to remind you that some of the statements made in today's discussion may be forward looking in nature. They are based on the company's current expectations and subject to various risks and uncertainties that could cause actual results and outcomes to differ materially. Joining us on the call today are Doctor. Harshad Mehta, Non Executive Chairman Mr. N. Ramesh Kumar, Managing Director and Chief Executive Officer and Mr. Rankit Shah, Chief Financial Officer. With that, I would now like to hand over the call to our Managing Director and Chief Executive Officer, Mr. Ramesh Kumar, for the update on the financial performance and overview.

2:35 Over to you, sir. Thank you, Abhishek. Good evening, everyone. Once again, I thank you all for joining us today for RIR Power's quarter two FY 'twenty seven earnings call. I'm Ramesh Kumar, Managing Director and CEO, and it is my pleasure to walk you through the company's performance for the quarter ended 09/30/2026, followed by key operational updates and the outlook going forward. On the stand alone basis, revenue from INR 33.98 crores compared to INR 27.16 crores in quarter one FY twenty twenty seven, making a 25.1% sequential quarter on quarter growth.

3:24 While on year on year, revenue grew from INR25.64 to INR33.98 crore, reflecting a 32.5% increase. Adjusted operational EBITDA for the quarter is INR5.66 crores versus INR4.36 crores in quarter two of FY 'twenty six, making it to 29.8% year on year growth. Adjusted operational EBITA margin is slightly decreased to 16.6% compared to 17% last year. The slight drop in percentage EBITDA is mainly due to increase in raw material costs by 2.8% due to geopolitical issues as well as we had a couple of good events where we have some that is semicon India as and so many things.

4:28 So these also added some expenses, so hence that small gap. Profit after tax came in at 4.45 crores as compared to INR 3.15 crore reported in quarter two FY twenty twenty six, a 41.2% year on year increase. The CAT margin improved from 11.97% quarter two FY twenty twenty six to 12.5%, reflecting a 53 bps expansion. As per share for quarter two stood at 56 compared to INR 47 in quarter two FY 'twenty six. Now going to half yearly performance.

5:14 On the stand alone basis, revenue from operations stood at INR 61.14 crore compared to INR 46.66 crores in H1 FY 'twenty six, making it 31.1 sequential year on year growth. Adjusted operational EBITDA for H1 is at crores versus INR7.25 crores in H1 FY 'twenty six, making it to 42.8% year on year growth. Adjusted operational EBITA margin stood at 16.9% versus 15.5 last year.

6:00 Is it strictly of this sorry, You were sounding muffled. Sorry to interrupt, sir. You sound a little muffled. You are sounding a little muffled. Can you just repeat the last line again? Okay. So adjusted operational EBITDA margin stood at 16.9% versus 15.5 last year, irrespective of cost increase as compared to the other expenses, income margins improved by 140 bps over last year level. Profit after tax came at 7.59 crore compared to INR 14 crore reported in H1 FY 'twenty six, making it 55.2% year on year increase.

6:50 Year on year increase. Liquidity remains mean, after backlog has improved 38.9% from 03/31/2026 closing at INR17.4 crores. This increase is giving us confidence for our future quarters. So liquidity remains comfortable and our balance continues to be strengthened. Looking ahead, we continue to see a strong demand momentum across industrial power and infrastructure segments and expected to maintain a healthy growth and profitability trajectory. Now I would like also to take you through few important business updates. As we already said about our Odisha plant, the upcoming facility in Odisha, just to repeat for the new people who have joined, the project will be executed in two phases, where Phase one consists of epitaxy and packaging and Phase two is the fabrication.

7:53 As you all know, clean room construction infrastructure for sourcing the power supply through 33 kV line has already been completed quarter one this year. Furthermore, this year, in quarter this quarter, we have completed the erection and installation of state of the art silicon carbide epitaxial wafer manufacturing reactors at our facility. This development marks a significant milestone in the company's plan to establish India's first vertically integrated SIC semiconductor inward, strengthening its commitment to developing advanced Uh-huh. Was also with system by Sorry. I'm sounding muffled again.

8:46 Okay. The the... From the the state the state government in September this year. Our objective is expected to commence commissioning the remaining statutory and regulatory formal. As mentioned, the key equipment required for SAC epitaxial wafer manufacturing process has been installed. The production release and the other cost are current and customer return cost structure elements represents an important step towards operationalizing the facility thereby delivering India's first SIC epitaxial wafers for domestic and global market.

9:43 Our focus on new product development in the existing business for railways and power sector continue to sustain the current growth trajectory. As I said earlier, the problem is now shifted from the market, the manufacturing and because the order backlog has increased almost doubled. So to ensure on time delivery without compromising the quality, continuous improvement in plan by identifying the bottlenecks in the operations is being done. Further, the dividend approved by the shareholders in the preceding Annual General Meeting have been processed and paid to all the shareholders on the record date.

10:35 For your patience listening, I'll answer any questions over to Abhishek. Thank you very much. Yes, Abhishek. Yeah. So thank you, mister Ramesh Kumar, for sharing the summary of our quarterly results and updates and other operational and development matters. I would now like to hand over the call to Doctor. Harshad Mehta, our Non Executive Chairman for his comments on the results. Over to you sir for your comments. Thank you, Abhishek. Welcome, everyone. Good evening, even though for me it's good morning. But I'm glad to see many people participating, and we are excited to share the growth, the continuous growth that we, RIR, has been achieving and we expect to do more.

11:32 Our Q2 FY twenty seven performance reflects steady progress. Since pandemic, we've been doing it 30% year over year with revenue from operations growing at 32.5% year on year. The profit after tax for of INR 33.98 crore and raising it to 41.2 to four to 4.4... Sorry. 4.44 per hour. Beyond our financial performance, the installation of silicon carbide epi, which is my... One of my favorite topic for last five years. I'm really glad to see it coming close and deliver product.

12:20 Odisha facility makes an important step towards advancing India's semiconductor ecosystem capabilities, strengthening the making India initiative as well as self reliance India initiative. Silicon carbide epireactor is the first only right now as as present capability in India, And we already have inquiries from, not only international, but also national labs as well as, defense and other other applications that we are looking at trying to have Epi grown domestically. Our focus on serving railways, defense, satellite technology sectors.

13:07 Data center, I think, is creating a lot more issues. And we had... Without realizing it for data centers, but in our technology development, we worked on the thermal management advancement way back in about twenty years ago, and and those are very useful as we go forward. Our commitment to building Indian solution capabilities in strategically important industries continue to be my focus. Government's continued support and enabling policy environment are further encouraging progress in this area. With comfortable liquidity, strengthening balance sheet, we remain focused on developing new products and creating sustainable long term values for our shareholder, our employees, as well as the nation.

14:02 Over to you, Abhishek. Abhishek, you're on mute. Yes. Sorry. Is that Yes. Yes. Sorry. I was on mute. Thank you, doctor Mehta. We will now be happy to answer any of your questions and hear your perspectives. Over to you so that we can open the floor for any questions that they have. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

14:48 Ladies and gentlemen, we will wait for a moment while the questions are assembled. We'll take our first question from the line of from Genuity Capital. Please go ahead. Sir. Thanks a lot for the opportunity. Just one quick question. Actually, the was not here at that time. So till when will be of... Like, the and if you can give the timelines? So from our side, almost everything is done. We are only doing internal testing of our reactors. We are waiting for certain clearances from the government of Odisha.

15:35 The building clearance and the the fire clearance, these things are in process. So as soon as it comes, then we can start. So there is no timeline. It all depends on the government's, you know, clearances as as as early as possible. So... No. No. Because I was seeing our balance sheet, so I think I guess PP was flat and PWR were increased. Right? So just asking on that thing. So can we expect it from next quarter, it will be operational? Yeah. This quarter. I hope so. Yeah. Yeah. We certainly hope so. And not only hope, not only that we are just waiting for government action. I have been and Ramesh Kumarji has been almost every week calling chief secretary and additional chief secretary, and sometimes we also send a message to the chief minister that these kinds of delays are not acceptable.

16:33 And if Aviso wants to become a growing leader in India in semiconductors, they need to, I think, get their actions in place. Okay. And and, sir, on the consolidate level, how much are we expecting, like, as in revenue and EBITDA dumping FY '24? For what is the plan you are talking or over... Overall? From and overalls. We don't give the forward looking statements, but if you see our first and second quarter growth are the numbers what we have delivered. Definitely, we are not looking at going back or tracking back. I'm sure we'll be doing better than what it is now or maybe it was.

17:24 Okay. Okay, sir. Thanks a lot, and all the best. Thank you. Thank you. Before we take the next question, would like to remind participants to ask a question, please press star and one on your phone now. Next question is from the line of from Shubla Research. Please go ahead. Hi. Greetings. Thank you for the opportunity, and I hope I'm audible. Ramesh, I think, probably, your magic is there in the p and l. I think after a long time, we are hitting 34 revenue on a quarterly basis. I just wanted to get some understanding that should we take this as a base case quarterly run rate and there should be improvement on top of it from here on? Or you think something has worked one time for us in this quarter?

18:21 I think, if you see in our results, we are almost close to 30 crores. And I have also mentioned in my remarks that the order backlog is at 39 crores. Okay? Okay. So there is a scope to increase this base, but at the same time, as I said, now I have... We have shifted our problem from market to the plant. So we are working at the back end to, you know, increase our productivity and also that we remain... Keep growing over these numbers what we are going to create this year or every quarter and quarter. Got it. So it's safe to assume that this is going to be the base case probably base quarter from here on.

19:14 Yeah. Yeah. It should be. Got it. No. No. That is very Yeah. Certainly, Mr. Munoz. Certainly. Yes. This quarter or last quarter, we haven't seen any onetime revenue. These are constantly operating routine revenue that we expect as we go forward. Yes. Yes. Yes, mister Manso. That's why I said probably Ramejji's magic in the p and l. And in fact, congratulations to the team. Just one thing, Ramejji, I think order book is not published in I think order book is not published in the press and media release, but I might be missing it. If you can do that also in the media release, that will be very helpful. Yeah. Maybe next time onwards, we will do it because I don't think we are doing it so far. So Yeah. Definitely, we will take your advice, the next time onwards, we'll keep it. That's the reason I have deliberately kept it in this meeting so that people understand better.

20:15 Got it. Got it. My second question is, Ramesh, that application process, I understand, probably we are very close to the completion. Now this phase one has probably two parts, phase one a and phase one b. The second one is packaging. I just wanted to understand, you know, what are the steps we have taken for that phase two probably start, you know, seeing some shape? Or are we yet to do the basic groundwork for packaging also? For the... See, as far as place is concerned, it is readily available. Now only the financial part which we have... We are in... I don't know why, like, why I call it as a decision, but it is almost through. We are at the, you know, closing stage from the bank for the term loan for packaging.

21:10 And once that is done, we are ready with the equipment and the supplier, everything. So the work will start and complete maybe in nine to twelve months time without much problem. So the base work is done. So it's just waiting for the finance final approval from the bank. Got it. Got it. Because, Ramesh, one thing we have realized that dealing with the state government brings a lot of delays in the system. So that is why I was asking. In fact, I had one follow-up also that if we try to understand for a fabrication unit also, because I'm sure when fabrication will be put, there will be certainly some other sort of delays, which probably we might encounter.

21:59 So it will be an impact commission that I can also check-in, you know, in this. If we can proactively start this probably as soon as possible because of the shareholders, probably it's already more than two years, and I understand things are not in our hand. But if proactively we can do something for the next phase to cut down the delays, that will save us a lot of pain, mister Mehta. I will I will just give you I will just... Sorry, sir. That... Sorry, sir. Just give me one minute. So I'll just give you update because, you see, this is for the... What is the government also? They have made the building, this flooded building work. They have leased it to us for the actual reactor as well as for the packaging.

22:45 So initial problems, the I think we are also learning. So based on our request, they're also learning. So I'm sure once the building approval comes, then packaging, there is no special approval is required. It is only extension approval that that will happen easily. As as your with respect to fabrication, it's going to be greenfield project. So once a greenfield project, these things will be taken care right from day one. See, for example, building layout. Once the building is made and then thereafter the layout, these things will not be there because, you know, the first layout will be made and the building will be made.

23:30 So the process will happen automatically and we... At least there's no way there for the fabrication plant because we have to do it for project. It is is treated as a project. And, Priti, on my side, at least, we have been doing proactively on the second half of phase one on the packaging, And we have been working on it in terms of trying to identify the right participant, right technology partner, right product mix because their product mix keep on changing in terms of the margins, specifically from China. We want to make sure that we stay ahead and make sure we pick the product that, you know, creates value, which which is our base business model.

24:20 So we are ready with everything. We we have the agreement in in hand, draft agreement, but it's not main... Many changes. And the... Once we are waiting for the bank's approval, which will happen and as soon as that happens... Because I think what we have now, after the first phase one, in terms of the money coming in, the facility and the agreements in terms of tri party agreement with the bank and the and the state, those are all the growing pains that have been taken care of. So I feel that we we should not see see any more delays. And and the only reason that we are cautious at this point is we want to make sure that we make investment then we can immediately and quickly begin implementation.

25:13 I don't want to do, like, what I... I learned by mistake. We invested $2,000,000 in in Epi in 2021, and now we are going to monetize it. So sometimes I I learn from mistake, but at the same time, I don't delay anything. But I want to be proactive. So we keep everything ready, and then we start move forward once we get comfortable that, okay, now is the time. We don't expect any issue. Got it. Got it. No, mister Mehta. In fact, we have been seeing you, you know, working hard for the past two years. And probably this is the first project in Odisha, which has seen the day of the light. So congratulations for that, mister Mehta. My last question before I joined the queue back is on bank funding.

26:00 So I understand earlier we wanted to have a equity mix also in this, but would that probably debt can also be availed. But mister Mehta, given the current, you know, company's size and strength, is it will it be a mortgage backed or an asset backed loan? If that is the case, then what is it that bank will probably identify as an asset to be mortgaged against that loan? Or... And why is it taking so much time for them to, you know, give us the approval, given that we are government approved and probably government funded also to an extent? I think I would have... Ankit answered the detailed question. But I would I would summarize it in terms of what I get. Meaning, I inquire with them, like, case and the rest of the almost every week, sometimes at middle of the night, what's the bank status. And we hear for last two months, we we have heard...

27:02 We have got all the approvals, and now everything is in paperwork time. So I'm in US. For me, it's very sometimes disappointing, but I said, okay. When in Rome, act like Roman. So we are in India. We we act with the Indian system. But, Ankit, can you please give the details? Sure. Thank you for your question. So, basically, this loan would be backed by certain immobile properties and some fees which would act as collateral and security for the loan, and these properties belong to the promoters. Secondly, on the loan approval part, we had a call today morning with the bank authority... Bank officers, and they have informed us that they have obtained all the internal approvals, and it is just a matter of time that they issue a formal sanction letter to us. So that is what the current status for the loan is. Now considering the size of the company, etcetera, on on the question of the size of the company vis a vis the size of the loan, we we feel comfortable even having this size of loan because we have a 5%

28:33 interest subsidy from the government, which would make this loan very cheap for the organization. And therefore... And if we currently see, right, that we have already raised equity, and there is a equal participation from the government. And having a certain portion of debt would definitely help us have an operating leverage on this. And that is the only reason why we have considered debt also to be a part of the portion, which will act as a as a funding source because this particular 5% interest subsidy will will not attend to the that that much, and it will help us build build this one... Phase one b very fast.

29:31 Got it. So just just one follow-up. So there will be some equity portion also apart from this debt, or we are still contemplating about it? No. For one b, we will not be having any more equity participation. It will be just of your At this point. Yeah. From At this point. Because one a, we have we already done one a, we have already done entire equity contribution, no debt. And one b, we are looking at debt contribution. Got it. Got it. No. This is helpful. I... I'm joining the feedback. Thanks a lot, Ramesh. Thank you. You. Thank you. Next question is from the line of Sumnath Pal from Relay Investments. Sir, sorry, I have not been an old follower of the company. I'm trying to understand the company better. So my question is more on a broader level.

30:29 So I think last couple of years, the challenges were maybe a dedicated CFO or CEO and government power line issues. So I think more or less that being sorted. So if you look at the broader trajectory for the next two, three years, how do you think that or when can be a period when you think we can go all guns blazing in the sense that semicon is picking up very well and now that we have all things in place. So can you just give a broader outline of how you think span up and we move from this current level to a different level with our leadership in technology? So I think we have been... Yeah. So we have been... I'm actually asking you about Yeah. Go ahead.

31:17 Wait. Please, sir. Please, sir. Go ahead. Ashish, sir, please go ahead. Okay. If we have been... Sometimes we have been up ready with the technology and and the and the product or the market is not ready. But this time, what we have seen and it's like nothing happens at that day, you know, like a straight line improvement with, you know, horizontal line and then you see a vertical line immediately. This is if you can see the first two quarters, you can see the trend and you can see that we are building the stability, we are building the infrastructure, Ramesh Kumar, we have done it a lot in terms of efficiency improvement as well as has been putting his experience in this... In situation as well. We may still require some people on the technology side because of the fact that right now government is looking... Government of India in the in the in the policy of making India the selfless India, looking for great kinds of things that India has never done. We have done it in US, but we need to have couple of good people from that perspective, and we already have identified them.

32:40 They are in India. They work for multinationals outside, you know, and and so forth. So I I do see that I've never seen it. I mean, sometimes except for retail or something in the industry, technology wise, we are ready. The the steps they usually go through in terms of becoming it a product, it goes to reliability as well as statistical failure analysis and so forth before... Because the product goes into railways, defense, and quite high value assets. So from that perspective, we are going through... We already have gone through... For defense, have gone through the field demonstration and test demonstration for last two and a half years for a electromagnetic aircraft launcher. We expect the RFP to be out anytime, and and we we will be the key part of it. So the things that in this situation, this is like a...

33:43 Becoming an industry electronics, it takes time. But the beginning from concept to technology demonstration, which is one of the very difficult part that we have done. Now from technology demonstration to get the product and go to reliability that we we can do a lot on paper, but it has to be proven in the field. And that's the point we are at. Right. I think so. But broadly, sir, how or when... In which if why do you think your vision probably comes to realization and the money goes into the company and the shareholders and the promoter as well? I mean, as soon as we start silicon carbide as the product, which will happen in in next three months maximum, we will start revenue. So we have revenue started coming not wait until the end of the project is done till we see the revenue.

34:41 We would see revenue in three phases or three steps. One, once the app is ready as a planned product, that would happen, as I mentioned, in three months or so. The next one would be, as Ramesh Kumar, you said, eight or nine months for the packaging. That's the second source of revenue. And the final source of revenue would be the fab. Once the fab is built here, but at the same time, we are not delaying it because we have the IP and we are having it contract out and and and may... And we'll generate revenue from that as well. Right, sir. And just my final question. Sir, it is a bit surprising that if we understand it in USD terms, and correct me if I'm wrong, the current order book is close to USD 4,000,000, wherein I think in your earlier calls, you yourself have mentioned, probably the entire space to be all the inputs maybe, know, or more than more than maybe, say, you know, maybe close to around $100,000,000 or so. So, sir, what do you think are the current challenges on that particular part which you think might be rectified going forward?

35:52 So the market exists. It says is there's a market. We're going to develop the market in the product that we are on. Our challenges are obviously demonstrating the product, demonstrating competitive with... Being competitive with global partners, and what is helping us as a tail end is the government's mission to make in India or at least have 60% component made in India and so forth. We're we're just coming but but coming slowly. You know, I think it's a... But that would help definitely at the same time in parallel, product, demonstration product, prototype product, and demonstrate reliability, which we are very sure of with our technology, but that has to be demonstrated.

36:45 Right. So thank you for your reply, and I'll fall back in queue for further questions. Thank you. Of course. You're welcome. Thank you. We'll take our next question from the line of Keshav from. Please go ahead. Yeah. Thanks for the opportunity. So I just wanted to ask, like, I think the... I mean, the reactors are already installed. So how many units can we be processed through that reactors? I mean, earlier, think we are planning for two, 5,000 wafers per month. Correct me if I'm wrong about the numbers. And, initially, how much we are planning to produce in a month? And, also, if you can let us know about the realization for the quarter based on the current market rates that would be willing to?

37:34 Anjin, do you want to answer that question, numbers and value? Can you just repeat the question? So I just wanted to know handset mode, please? Your audio is not Am I I now? Little better. Please go ahead. Yeah. I just wanted to know about the capacity of the wafers that we can manufacture through that unit. I mean, earlier, I have... Don't know. I'm I'm able to remember that correct or not, but it was four, 5,000 wafers per month. So, like, after three months installing the base... Mean, when the plant will get commissioned, how much wafers are we planning to produce in a month, and also realization of the wafer...

38:22 I mean, the per wafer relation, if you can tell the number. Okay. To answer your question, what we are expecting in next four to six months is revenue of around 12 to 15 crores from epitaxy process. Though I do not have the exact breakdown as to what would be a per wafer realization because it would depend on various specifications and thickness. The pricing would differ. And therefore, having an average price for that will be difficult. But what we have estimated for various thicknesses, etcetera, we estimate a revenue of around 12 to 15 crores for next four to six months for this balance period of the financial year.

39:16 Okay. Just to add on to what Ankit said is that the productivity numbers will differ depending on what is the quoting. Say, for example, we do it based on certain microns. Say, for example, if I have to do coating of 30 microns, then it will deliver how many wafers per month. So that is how we work, but not necessarily that every wafer will be quoted at 30 microns because the voltage... The thickness is decided by the voltage. So it it will carry exact number. It'll be very, very difficult to tell that, you know, so many wafers will be produced and by a wafer, this will be the cost.

40:04 Okay. Okay. Got it. Got it. So let's take this 12 to 15 crore number that... Sorry? Yeah. Go ahead. Yeah. This 12 to 15 crore number that we are planning to have in four to six months. So is our customer already started? Like do we have the demand for the resource that we are projecting the revenue to become, if you can tell on that side as well? Yes. We have specs from international customers as well as we are pushing for domestic customers. Specs for what they want. We also have a letter of intent. And so at this point, we have about 90% in terms of what our capacity is, has been letter of intent. But obviously, of intent, it depends on time and it's it's it's what it says, letter of intent that we we have customers interested every... We we need to have product which is competitive and so forth. We do expect that we are very conservative at this point in terms of installing two reactors.

41:18 We may very well need about five reactors very soon, but we are waiting, not taking that step right away. But we are making sure that we have we grow and not rather than, you know, have the reactor side and not work on full full 100% efficiency. Okay. Absolutely. I didn't I've got my answers. Thank you so much. Thank you. Thank you. We'll take our next question from the line of Saurabh Jain from Sequel Investments. Please go ahead. Your line is unmuted. Yep. Please go ahead with your question. No.

42:05 Your audio is not clear. Please use your handset. Hello. Hello. Your volume is very low, sir. Second. Am I audible now? Yes. Please go ahead. So just want to know, sir, what is your current capacity and utilization and current order book as of September 30? On the existing product? Capacity and capacity is nice. And there are three three product verticals which we operate on the existing products. One is HPT low power devices, and the second one is the high power devices, and third one is the equipment.

43:04 So when it comes to high power devices, the entire process happens, right, from the way for it to the to converting lithography, fabricating, and then making as a, you know, product. So there we have a good capacity, and we are also adding some of the bottleneck operations we have identified, and we are investing some money to increase the capacity. So if you ask me presently, certain bottleneck operations have maybe reached to 90%, but we can double those by adding machines. So the capacity can double there. The rest of the two products, there is no capacity issue because it is more to do with the assembly.

43:51 So I and I I need to put more assembly benches and the people keep on adding the people that is in the LPD as well as in equipment. So it is more to do with the assembly. So there is no actual production kind of a thing. So it's a component assembly in LPD, in the equipment, there are various products being as a equipment and supply to the customers. So I don't see it's going to be challenging for, I don't know, as far as capacity is concerned. Sorry. Are not very clear.

44:39 Sorry. Your audio is not clear. Hello? Hello? Yeah. Yeah. Can you speak a little louder, please? Current order book, sir. I told you, no. Order backlog at the end of quarter two is almost INR 39 crores. And particular revenue guidance for FY twenty seven, FY twenty eight? FY twenty and for FY twenty eight. Revenue from existing or new? What what is that you're asking? Including what? We don't give any forward looking statements. Right? Okay.

45:29 Thank you. Thank you so much, sir. Thank Thank you. Next question is from the line of Vijayendra, an individual investor. Please go ahead. Yeah. Good evening. Am I audible? Yeah. Yes. Yeah. Very good evening, sir, and happy to see the result. Sir, just one query I have. Recently, of Power and Ministry of Electronics have raised request for the indigenous development of VFC HVDC systems. So is there any way we can be a part of that value chain? Are we planning to do anything like that? Yes. We already are participating. We already are participating.

46:14 And so far, we we have submitted our our interest. And then in about a month's time, we would submit our plan. That's... That is what government of... I mean, ministry and the power ministry, they both are looking for in terms of how we would address the development plan is what government is thinking about or government is planning too. So we are we are very much part of it, and and that is, you know, one of the things that at least from experience perspective with my experience with my US company's experience in high voltage DC that I've acquired from GE and so forth, we would see... We're quite... I'm quite sure we would see some roles.

47:03 Okay. Just to add on to what just to add on to what I said by saying is that if you see all other participants who are... It is going to come, they don't have anything if the silicon carbide in India. So they have to start from the scratch. Whereas RIR, we are already there as far as AP is concerned. And then they have given sample supply for sample supply eighteen months and for product supply thirty six months. So in eighteen months, we will be ready with our fabricate... Sorry, packaging. So we already have a tire for a fabrication. So we can send our epi wafers, get it fabricated and do package it in India and supply to this tender if we win the tender.

47:54 So I feel we are much better positioned than anybody else because all others have to start because the government is saying 100% indigenous. So if if they are percent, then we will have to start from scratch whereas we have already crossed many bridges for this activity. Yes. Good to hear that, sir. And just one more thing, sir. The silicon carbide factory, which the process which is going to happen in Bhurneshwar, are we planning any, I mean, production till this quarter? And when this... How the utilization will be there? Means the capacity, how much we are going to utilize by this remaining quarters for this year?

48:45 Maybe you are exactly later because as we said, we are all set to go for a production. So the production starts once the clearances from the government, the statutory clearances comes. We are hoping that if not in November, definitely in December, we will start the commercial production of AP wafer. And that is what Ankit Shah said that we are estimating what is that we are estimating this year revenue from this particular activity. Next question is from the line of Songnath Pall from Relay Investments. You. Thank you for taking my question again.

49:34 So so I would just like to understand more on, again, on a broader level. Given the fact that Semicol in India India is catching up and then there are many, many big players, repeated players with foreign tie putting up massive amount of money in developing their plans and couple of them have already just started or about to start. So how do you think we being the smaller part of maybe the broader value chain are we faced in terms of competition because I think semicon is all about scale. So first is that? And second, is that on the railway defense and a few trial export orders, which we had received and which we have delivered over the last four point five years. So have you seen some customers coming back for some increased quantity or maybe more advanced versions of the products that we have sent in the sense of a trial order? Thank you.

50:27 Yes, sir. Go ahead. Go ahead. I think if you look at it... If you look at the value chain, the value chain, we are the we are the highest value chain and the only company in India providing value chain starting from silicon or silicon carbide material all the way to systems, which is vertically integrated systems, includes pieces like epi, includes pieces like device fabrication, includes packaging, includes module, and includes systems. So when you look at... When you talk about the big guys and they are absolutely big putting a lot of money, their value chain at this time is the last 5% of the total value chain, which is the offset packaging, outsource outsource automation testing. So they buy... They get the process wafers from their customers.

51:25 They would go through the automation in terms of testing and packaging. So overall, from the value chain perspective, their value chain is very, very small portion of the entire value chain. Their... In terms of magnitude of revenue is big, but the but the profit margins are small. We are we are we always in the very beginning follow the market, follow the principles saying we will focus on high value, high margin, low competitive product. So the the product that we make, medium and high power, there is no one in India is making it. And globally, there are about four or five competitors, ABB, Siemens, Hitachi, Toshiba, and so forth. And it's not growing because it's not easy tech... Technically, to develop that product overnight and gain customer acceptance from reliability perspective and so forth.

52:30 Parametric, you can Yeah. That's good. Just to just to add... Also add on to the, you know, the... The asset by rightly said, we are doing... We are already doing in silicon based products that is our HPD, where we get the wafer and do the coating and application and packaging and converting that into product and converting that into system and supplying to various customers. So which is not being done by all these biggies who have come into the picture. They are all just getting the fabricated chips and then just packaging it, testing and sending it to. And also, the voltages are different. They are into, you know, small milliamp kind of activity which they do, whereas we are into high power devices.

53:31 Our silicon based itself, we produce up to 9,000 volts, 6,000 amps, which is very, very high. And now we are thinking of we are doing it for HVDC silicon based five kilobytes for U. S. Customers. And with respect to railways, we continuously supplying whatever has been existing products, and we are continuously developing new new products as and as and when railway changes their specifications, you know, RDSO based on... They they are also improving their train sets, like, you know, from now all the time the trends are going to be when they bought it. Of course, the demand will continue because, like, locomotives are going to continue because of the freight carried out, which railways are creating. So there is a huge demand in railways also.

54:37 Hope we answered your question. Yes, sir. On the second question on the repeat orders or or increased demand from the dispatches, which we did over the last one and a half years, I also asked that. So defense, we are able to start with railways. We are getting repeat orders. That is why if you see our highway business this year, I am able to see at least 70 to 80% growth over last year quantity, last year value. Not only the with the new products, the existing products itself. Whereas in our defense, we have given our protocol that everything has been done. The repeat orders, right, the the first, you know, first trial orders, we are anticipating any time.

55:23 So we are waiting for the trial orders. So as as far as the expertise is concerned, the first order which they have given, we have almost almost about 70% executed. And once we complete, they will also test it at U. S. Market and then they will keep repeating those orders. So sorry, I would just maybe ask one more point on the first answer which you had given. So can we safely say all these big companies that we're talking about, in case if they decide to come into your value chain, so they have no... I mean, they cannot just buy the technology. Right? So I think either they have to acquire a company or maybe collaborate with a company of yours because I was thinking from from that perspective. Yes. Yes. Because they they had to start from the scratch, actually.

56:11 Either they... Buyout or maybe they collaborate with a company like you. That that would be fair understanding? Okay. Yeah. Yeah. In in India, there is no one with a capability of doing it. And setting up the capability in India itself is a barrier to entry, specifically for medium and high power devices. So from that perspective, you know, we feel that we are uniquely in a leading position. What we need to do is now, and this is where we are trying to do as as much as we can, is modernize our facility as well as automate as best as we can so that we are not, you know, we are not being challenged by any newcomer that we don't really see any at this point, but we don't we don't face any newcomer with, you know, tons of money.

57:10 Yeah. Because the point was on the money part. There's a lot of money going around. So, you know, it is not it is not just the money can, you know, put up a facility and get it done maybe in six months. Like, there's a long Money money cannot... Yeah. Just... Money cannot buy it. Absolutely. Yeah. That's right. Right. So thank you. Thank you for the reply. Thank you. Thank you. Sure. Thank you. We'll take our last question from the line of Ashish Soni from MF Capital. Please go ahead. Sir, with all this commentary, do you think FY twenty nine will be inflection point for you in terms of revenue scale up? Because railway cycle is picking up, you spoke about different style orders coming in and then all those packaging also unit will come next year sort of thing. So do you think FY 2029 is an inflection point from your perspective and growth can come from which verticals if you can highlight that?

58:01 The growth should come from all verticals because we are not leaving anything. We are if you see the existing performance is from the existing customers and existing products, Not very, very few new products also we have added. There is no doubt on the new product for various applications. But what I'm saying is we have to be optimistic. We are always optimistic. We feel that we will be doing much better than what we are doing this year with all this new development as well as silicon carbide coming in, giving us some revenue. Think we are very optimistic that we can do much better than what we are.

58:48 But generally, we would like to avoid giving forward looking statements. My question is only inflection point because lot of whatever work you're doing, I think the fruits can come from FY '29 majorly is what I anticipate. So that's the question I'm trying to understand. Yes. Yes. You are fine. Yes. But I certainly feel I certainly feel the grid, HVDC grid, railways, and defense. Defense doesn't have a lot of volume sometimes because we are in a very high power specialized niche product, but it it does provide a good margin and so forth. But I I do see we we already, from the very beginning, have with the choice, decided the sectors that we would serve, which are very heavily infrastructure oriented, and all of the infrastructure sectors that we are focusing our product, I see a tremendous amount of investment coming from government of India in next five years.

59:58 Okay. Thanks and all the best for the future. So whether the inflection point comes at... It is... I think in this situation, because of the fact that we are not dealing with consumer application, you're not gonna see, like, tremendous growth from zero to 80% or 90%, but you would see a ramp with a little bit higher angle as you go forward. And one of the participants spoke about $100,000,000. Is that our revenue aspiration or the target market? I just didn't understand that. Can you throw some light on that as well? As I said, we've I'm going to stay quiet. I don't know the exact reason. I went from this commodity and he handled that question.

1:00:47 No. See, aspirations are there because, you know, the tenders, you know, it will be even much, much more. See, our aim is... Because once we... After the FY '29 or '30, once we are complete the project, then the numbers will be totally different. So that is where I think he was mentioning that once that comes into the play for completely total, then these numbers can be achieved. So that's a revenue number, not a target market. Right? That's the correct assumption. Yeah. That's a revenue number. Okay. Thanks and all the rest for the future, sir.

1:01:34 Sure. Thank you. Ladies and gentlemen, that was the last question for today. I now hand over the call to mister Abhishek Sawan for closing comments. Over to you. Thank you. Thank you to everyone who joined us today and participated in the discussion. We appreciate your questions and continued interest in RIR Power Electronics. As always, we remain committed to transparent communication and delivering long term value to all our stakeholders. In closing, on behalf of the Board of Directors and management, we thank you all for your participation in this call. We remain focused on operational excellence, financial prudence and long term value creation.

1:02:20 Should you have any queries, please feel free to reach out to us. We look forward to engaging with you again in our future updates. Have a great evening and stay safe. Thank you. Thank you, you. On behalf of Veritas Teleportation, that concludes this conference. Thank you all for joining us today. You may now disconnect your lines.