Schneider Electric Infrastructure

“In all these, just to also confirm that in KMVC capacity expansion, which we got approved last week from the Board, we started partially the capitalizations.”

“You know that even in Kolkata, we had a phase I which got approved somewhere three years back. Now we got an approval of phase II.”

“We are working on those capex programs the way we have conceived is on track, and we will have that export piece come in as planned.”

“Yes, in coming quarters, sir. It is as per the plan which we are trying to do, because what we really want to do is not to disrupt the commitments which we have given to our customers.”

“No, we have some space. Kolkata is anyway not short of space, so whatever we want to do, we can do somewhere else as well.”

“So, we have closed the orders in this quarter is INR1,265, and the next one become INR2,180, which is actually the good growth.”

“If you look at the solid growth in terms of 25%, because you must have seen Q1, we were trailing in the orders, and in Q2, we were able to pick up the order, which is like-to-like comparison is more than 50% plus.”

“In this, in solid growth, in effect, the contribution is coming, as Udai highlighted, is emerging segment, with the good contributions in this order backlog.”

“The large orders phase out in 6-12 months, and some of the orders which has a large order is more than 12 months.”

“Not really, sir. It depends on what you call large, but not really, as I answered this some time ago.”

“The good part is that the export of leaving margin behind, it is giving you the good edge in the revenue and the operating benefits, operating leverage benefits.”

“We have been seeing and doing and reaching out to people in metal space, in the material, which is nothing but people who are making glass, in automotives, in defense, and also in the batteries.”

“So, obviously, we expect the investment in Kolkata will accelerate growth. At the same time, we also expect the domestic market will also grow.”

“maybe anywhere, say about 55,000-60,000 breakers, is what the size of the market is in 11, 24, and 36 KV plus.”

“If you talk about future, as I said in the presentation, sitting inside the company and seeing as to how market is evolving, we are seeing that there is a demand which is sustained.”

“what we were told that about 2.5 GW-3 GW something, which is where the projects are reaching financial closure or have been financially closed and work is in progress.”

“What I remember is about INR18,000 crore is what is going to get consumed.”

“At the same time, we have been also seeing in terms of the private capex, which stands at about INR1 trillion. The good news is that major contributor, which is roughly three-fourth of this, is in manufacturing area and electricity, where we come as a major player.”

“In Q2, able to do with 7.2%, and overall H1 is 6.2%.”

“Copper and the transformer oil continue to be increased even to sequential quarter and also like previous year, same quarter.”

“Employee cost, while you look at the number in terms of 25% growth, let me tell you that in the Q1, which the way we explained, the increase is as per the inflations.”

“We also expect that geopolitical, these prices will come down in future. Both will help us in the coming quarter for sure.”

“We expect that we will be able to leverage trading cost in the H2 for sure, when we increase revenue or we can have some benefit from the operations.”

“Finance cost, again, this is just to confirm you, no incremental borrowing. The finance cost is increased just because the change in the rate what we are paying based on the RBI rate and the declare.”

“Last year, there was a gain because of RBI modified rate what they charged, and this year there is an impact because 6.1% becomes 6.7% interest rate, what I understand.”

“I would also like to share one more thing, and I would request you to go on page 11, where we launched one of the most advanced breakers made globally. This is the breaker which we are now started production in our Kolkata plant.”

“In other expense, if I tell you the two things, one, while you see 22% increase, again, there is an increase in line with inflations. Plus, we have a certain cost which get recorded in the foreign currency, and foreign currency has impacted, which increased other expense this line.”

“We expect that these are the timing temporary difference which are based on the accounting policy we do every quarter.”

“So, we intend to include 100%, but due to the customer's contracts and the expectation of the tender, we are unable to force the variation clause in all the contract.”

“We see that this is not coming down, unfortunately. The backlog we had started in this year had a good solid impact.”

“We try to push most of the clause, price variations in most of the contract, but success rate is not that encouraging today in overall.”

“We are conscious of this fact that RM I is going to be slightly volatile in days to come.”

“We are becoming a bit choosy and perhaps not taking an exposure where we see larger risk.”

“And in this quarter, we able to achieve close to 20% growth Y-o-Y, touching around INR780 crores.”

“And H1, we are close to 12.5%, which is INR1,400 crores.”

“Moving to the sales, as we discussed in the Q1 earning calls, that we had a lagging in the execution in the Q1 due to the dependency on the customer to be able to accelerate the sales in this quarter.”

“It has a life which is twice the industry available breakers. It is 2x more operations. Of course, because it is super sensorized, it has got 40% lesser maintenance cost.”

“These three things which you see are essentially semiconductor, where we have supplied the entire powertrain, which includes the switchgear, which includes the transformer.”