Good day, ladies and gentlemen, and welcome to the Q3 FY 2023 Earnings Conference Call of CG Power & Industrial Solutions Limited, hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors. Thank you, and over to you, ma'am.
Thanks, Jenny. Good evening, everyone. On behalf of DAM Capital, I would like to welcome you to the Q3 FY 2023 earnings call of CG Power and Industrial Solutions Limited. We have the management today being represented by Mr. N. Srinivasan, Managing Director, Mr. Susheel Todi, CFO, Mr. Ramesh Kumar, President, Industrial Division, Mr. Mukul Srivastava, President, Power Systems, and Mr. Ranjan Singh, Executive Vice President, Heavy Duty. I'll now hand over the floor to Mr. Srinivasan for his initial remarks, post which we'll open up the floor for Q&A. Over to you, sir.
Thank you, Bhumika. I extend a warm welcome to all of you. Since I have a throat infection, I will request my colleague, Susheel Todi to summarize the performance for Q3. We have already released the press release to the exchange this morning. Thank you. Over to Sushil.
Good afternoon, everyone. Just to start with our safe, quick note, Q3 FY 2022, 2023 performance. Our year-over-year sales grew 14% and PBT grew by 70%. All the businesses of the company performed significantly well in the Q3 of FY 2023, is almost registering a growth of 70% in the PBT. Sales and PBT recorded in the quarter were highest in the recent times. Aggregate sales for the quarter were higher at INR 1,645 crore, recording a growth of 14% year-over-year and 4% on quarter-on-quarter. PBT was INR 274 crore, which is coming around 16.6% of the sales in Q3 FY 2023, as against the INR 161 crore, 11.1% of the sales in the Q3 of FY 2022.
INR 237 crore, which is 14.9% of the sales in Q2 of FY 2023. Margins were higher on account of better price realizations, higher volumes, favorable product mix, moderation in input cost, and the procurement efficiencies. Our ROC on analyzed basis for Q3 was 55%, as against the 42% in Q3 of FY 2022. During the quarter, we have generated free cash flow of INR 202 crore. Our order intake for Q3 was INR 2,219 crore. We grew around 21% on year-over-year basis. Unexecuted order book ao at 31st December 2022 was INR 4,136 crore, 34% higher on a year-over-year basis. We come to the segment performance. Industrial Systems.
Aggregate sales for the quarter were higher at INR 1,162 crore, recording a growth of 14% on year-over-year basis and 6% on a quarter-over-quarter basis. PBIT was INR 213 crore. It comes to 18.3% of the sales in Q3 FY 2023, as against INR 144 crore, 14.2% of the sales in Q3 FY 2022, and INR 195 crore, 17.8% of the sales in Q2 FY 2023. Margins were higher on account of the better price realization, higher volume, favorable product mix, moderation in input cost and the procurement efficiencies. Order intake for Q3 FY 2023 was INR 1,357 crore.
It was to 24% growth of year-over-year and unexecuted order book for the industrial system for 31st December 2022 was INR 1,824 crore, 17% higher on a year-over-year basis. We come to the power systems. Aggregate sales for the quarter were higher at INR 484 crore, recording a growth of 13% year-over-year basis. There's a little decrease on a quarter-over-quarter basis, which is around 2.2% on quarter-over-quarter basis. PBIT was INR 57 crore, 11.7% of the sales in quarter three of FY 2023, as against the INR 51 crore, 11.8% of the sales in quarter three of FY 2022, and was INR 55 crore, 11.2% of the sales in quarter two of FY 2023.
Order intake for the Q3 of FY 2023 was INR 862 crore, 17% growth year-over-year basis. Unexecuted order book as at 31st December 2022 was INR 2,312 crore, which is 50% higher on year-over-year basis. We come to the consolidated performance. The consolidated results include the performance of the operating subsidiaries based out in USA and Sweden, Germany and the Netherlands, which is Drives and Automation, and other non-operating subsidiary and the holding subsidiaries. Aggregate sales for the quarter were higher at INR 1,775 crores, recording a growth of 14% year-over-year and 5% on a quarter-over-quarter basis.
PBT was INR 282 crores, 15.9% of the sales in the quarter three of FY 2023, as against the INR 174 crores, 11.2% of the sales in the quarter three of FY 2022, and INR 241 crores, 14.2% of the sales in the quarter two of FY 2023. Unexecuted order book for our Sweden entity works out to around INR 146 crore, which is around 48% higher on year-over-year basis. The major events in the Q3. We now paid our non-convertible debenture worth of INR 200 crore. Post which the company has become debt free. The Board of Directors have also approved a proposal to expand the manufacturing capacity of transformer aid plants in Bhopal and Malanpur with an investment of INR 126 crores.
Unaudited financial statement with the detailed notes are available at our particular exchange filing in the company website. Between myself and the colleagues, we'll be happy to answer the questions. Thank you.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions were assembled. We have the first question from the line of Sandeep Agarwal from Naredi Investment Private Limited. Please go ahead.
Hello. Thank you for the opportunity. My first question, what is our railway business mix in total turnover? What opportunity we've seen in recent orders, and developments?
Industrial system mix is around, if you look at, As I think we have been saying about that we have a INR 1,000 crore total revenue which is coming from the railway side. Overall, INR 250 crore-INR 300 crore which is coming from the railway business, in that, industrial division business.
Okay. What opportunities in recent orders?
Out of the-
[development]
The Railway Business, part of the industry portion was about INR 282 crores and some Power Business was.
No, sorry. What are the opportunities you're talking about?
Opportunities, we had the orders for traction motors. We had the orders for propulsion systems. We had the orders for these electric tower cars, electrics, worth about INR 450 crores in the last quarter.
Okay. My next question, what is our current tax rate and when we have to pay normal tax rate?
No, we are at normal tax rate only. We are at current tax rate 25%, which we are opting today.
Okay. Thank you.
Thank you. We have the next question from the line of Charanjit Singh from DSP Mutual Fund. Please go ahead.
Yeah. Hi, sir. First of all, congratulations on good set of numbers. My question is first on the industrial segment margins. We have seen a second quarter of very strong margin versus what we have seen historically at around more than 17% levels. Can you know, tell us how sustainable these are and what has led to this, you know, significant bump up in the margins for the industrial segment? That's my first question.
Yeah. See, what has happened is in quarter two, there is a sudden rise of the commodities. Okay? We have also accordingly passed it on to the market. We have a couple of orders which we have booked in quarter two, which we are executing in quarter three. In quarter three, the commodities have softened. That is one advantage we had. Also, little bit of a product mix in, you know, looking at the long-term sustainability, we had changed a little bit of product mix. That also added to these margins.
You know, depending on this, you know, product mix, new products which we added, so what could be the sustainable margins which you could see here in the industrial segment?
I don't think so that we can give any guidance about the margin, but it, you know that the margins of mix of many things, you know about that, what kind of orders we have in the quarter, for what we are going to execute and going forward. Always we keep on saying that these margins are coming because of many reasons, you know, as explained by Mr. Ramesh, you know, softening of the competitive prices or, you know, product mix and all those things. Whether these margins are sustainable or not, even, you know, we always keep saying that couple of percentage here and there could be, you know. That's the way we have been telling so far.
Okay, sir. Sir, on the industrial motor front, if you could highlight, you know, how is the overall market momentum right now? Going forward in Q4 and, you know, in the subsequent next financial year, how do you see the market growth rate and, subsequently the growth rate for our industrial motor business?
Generally, we follow the IEEMA data for understanding what is the market growth. You know, quarter three data is yet to publish. They are not yet published. Definitely because of the, you know, this sudden increase in the prices, quarter two, there was a flat, almost flat. Quarter three, we are yet to wait. We are waiting for the results to come. Internally we have done much better than quarter two. Our growth are much better than quarter two in volume-wise.
Okay. Lastly, on the railway side, you know, earlier we had highlighted that we will be doing, you know, some technology tie-up and participating in some of these large tenders. If you can touch upon, you know, the status of those, you know, tie-ups and the timelines for these large tenders of Vande Bharat and others which are in the pipeline? That's my last question.
I think we had explained earlier also that we have been working on trying to have the tie-ups, but the timeline was very short in terms of the tendering times, so it was not possible for us to participate. We had explained that we would wait for anybody who wins, and then we'll try to associate with them for being a supplier for them if it's a win-win situation for both of us. Our endeavor for having a partnership with another technology partners for any future tender that would come would be continuing.
Okay, sir. That's all from my side. Thanks for taking my questions.
Thank you. We have the next question from the line of Renu Baid from IIFL Securities. Please go ahead.
Yeah. Good evening team, congratulations for a very strong performance this quarter. My first question is, can you throw some insights in terms of qualitative inputs in terms of the demand drivers or demand outlook, both for industrial as well as Power Systems? Have you seen any ease in the relative competitive environment or the market looks equally tight in today's system? Which are the key end market driving growth, key customer ends which have been helping strong growth in this growth and execution?
See, generally, most of the core industries like, you know, cement, and pharma to some extent, and the infrastructure especially, and with this year because of the good rains and ethanol demand, so even the sugar and ethanol. All these sectors are doing very well. Except for a little bit on steel, which is flat or maybe slightly declining. Otherwise, most of these, I know industries are doing well, so we anticipate that going forward the growth or the demand will be better.
Right. Between the LT and the HT, how has the market been, now that CapEx across manufacturing sector is seeing quite a bit of activity? Have you seen the demand for HT motors, seeing growth coming back? On the latest scale, how is now TMEIC positioned in this space?
The HT, yes. Obviously, HT is doing the growth-wise and the even in our ordering take wise, HT is doing much better. That always happens. HT being a long, you know, the delivery times. Generally any CapEx, the first finalization will be HT, then the LT will come. Say, for example, whatever cement industry expansion is going on, they will finalize the orders along with their power equipment, the HT motors first. Maybe after six months the LT will follow. Since the HT is good, hoping that the LT also will follow in the same group. HT is much better, I can say.
Okay. Second, can you share some updates on the B2C, the consumer business, which we had expected last year, progress in terms of, for fans and for pumps, both new or other products which were launched? Also some color or shade in terms of where are we in terms of investment and distribution, product reach, et cetera.
The two products which we have launched, pumps and fans, we are definitely doing slightly better than what we anticipated. Overall consumer itself is a little bit downtrend. If you see the overall fan industry is not doing well for last two quarters. The quarter one was very good of this year. Quarter two and quarter three has been very low. That is because of two reasons. One is, you know, the overall market itself is consumer buying itself is low. The second one is even the stocking has been gone down because from 1st January, the Star Rating is implemented in fan. The stocks, you know, people have not stocked it very big stocks for the coming season.
obviously we are hoping that the star establishment will happen, Star Rating establishment will happen this quarter. The first quarter of next year, should be much better.
Got it. In the industrial segment, just coming back to the previous question, you had mentioned that quite a few new products were launched to help improve the long-term profitability of the segment. Any comments to elaborate on this? What type of product ranges, either for the rating range or, new SKUs within this pack?
See, we are focusing more and more on energy efficient products. Initially it was IE2, now we are moving towards IE3, and also we have developed a complete range of IE4 for both hazardous and non-hazardous. And also, we are focusing on the alternator business, which was not doing well earlier. Now it is slightly retail, since the demand is increasing. There also we have done quite a bit on the new product development for both the sustainability of our and be a more cost-competitive in the market. That's how we are focusing on this business especially.
Sure. One last question on the power segment. CapEx of INR 123 crores which has been announced, these are largely on power transformers distribution. Any specific color that we can share, what type of transformer is power distribution and, what is the kind of capacity expansion that we are targeting from this? Thank you.
Mukul, you can answer this.
Right, sir. See this is to expand our existing range of the products. We already make the entire range of power transformers and different transformer going from 11 KV right up to 75 KV. The demand is going, so we also want to increase our capacity in the power transformer factory at Bhopal from 17,000 MVA to 25,000 MVA and in Gwalior from 6,100 to 9,100 MVA.
Sure. Thanks.
Thank you. A reminder to all the participants, anyone who wishes to ask a question may please press star and one now. We have the next question from the line of Mahesh Bendre from LIC Mutual Fund. Please go ahead.
Hi, sir. Thank you so much for the opportunity. Sir, what was the contribution from finance and the business in the last nine months to our sales, standalone sales?
No, it is, it's not very significant, sir. We are not disclosing these numbers separately as of now. Once that numbers are reportable, then we start reporting separately.
It will be less than 5%?
Yeah, definitely.
Okay. Okay. Sir, secondly, you said that the railway business was INR 282 crores. This was for , three months or nine months? .
No, this is for three months.
What would be the contribution for nine months?
You multiply by three, it's around...
INR 830 crores.
INR 830 crores .
Okay. Okay. Sure. Sir, we are at the far end of this financial year now. I mean, we have grown, both businesses have grown in last nine months. What is the outlook for next two years, for our business?
See, this is actually a earnings call for this quarter. How do you expect us to answer this question?
Sorry.
Outlook is good. That's all I can say. This is an earnings call for Q3.
Yes, yes. No, I'm just hoping we are in the month of January, so I'm just thinking that-
Outlook is good, sir.
We see a very good outlook, sir. No issue about the outlook side.
In terms of, I mean, we have two businesses, like, industrial and power. Where do you think the good prospects are much better in terms of growth?
Growth. I think, you know, we generally don't give any guidance. Both the businesses will grow in double digits. I can definitely say that.
For next year?
Yes.
Okay, sure. Thank you so much, sir.
Thank you. We have the next question from the line of Rahul Gajare from Haitong Securities India Private Limited. Please go ahead.
Yeah. Hi. Good evening, sir. Thanks for the opportunity and congratulations for very good performance in the third quarter. I've got two questions. Building on the earlier question on transformer capacity at Bhopal and Malanpur. Given that you are specifically expanding this capacity, what is the thought on, you know, getting back to the export market? Any thought of, you know, adding capacity on the coast, so as to cater to more export market? That's the first question.
Right now the domestic demand is strong, we want to cater to the domestic demand first.
Okay. What would be the capacity utilization of your transformer factories right now?
it's around 65% for both put together for our power transformer and the distribution transformer.
Okay. My second question is on, you know, on the EV side. Is there any traction on tie-up for the EVs with auto players or what is any, what is the movement from that particular business?
No, nothing has been tied up so far. Anything tied up, we would have reported, no?
Sure. Okay. Thank you very much.
Thank you. We have the next question from the line of Harshit Patel from Equirus Securities. Please go ahead.
Thank you very much for the opportunity, sir. My first question is on our power segment. You have previously mentioned that you are working on developing the 400 KV GIS. Could you share any update on the same? Also, by when you think we will be able to see commercialization of this product line?
Mukul, sir.
Yes, sir. See, we have started our work on this last year and on a complete GIS, there are almost 10 major components like differences, switches, mechanisms, busbars, all that we have developed. We are in the process of developing first two components of this, and this will take another two years' time. Hopefully by the end of FY 2025 or in the beginning of FY 2026, we should be able to commercialize this.
Sure. This will be up to 400 KV, right? There will be still some time to go, before we reach 755 KV, right?
See, 755 KV, subscriptions are far less. I mean, the, I think the most of the investment is happening in this 400 KV, up to the 400 KV range. We already make the GIS up to 400 KV. Only the 400 KV purchase is the missing link, which we are trying to cover. 755 KV, as and when required.
Sure. Just a follow-up to that. In terms of overall HV switchgear market right now, what would be the split between AIS and GIS at the industry level? I'm not asking for earth, but what would be that at the industry level?
See, the split will be approximately, I mean, there are no published numbers for this, but approximately you can say it is between 70- 30, 70 towards AIS and 30 towards GIS.
Sure. My second question would be on our industrial system. Since you have already elaborated quite a lot on the Railways Business, if you can just give the order intake number for the Railways Business for the first nine months, that will be very helpful. The INR 830 crores number that you have mentioned, is it entirely booked in the industrial system or there will be some portion of Power Systems as well into that? That will be my last question.
INR 830 crores was part of the industrial business. As per as the order intake is concerned, the cumulative order intake is about INR 900 crores.
Okay. What would be the revenue portion in the Power Systems business for?
That is approximately around, INR 20 crore every quarter.
Okay. Understood. Thank you very much
I'm sorry. INR 80 crore every quarter. Sorry. INR 80 crore every
It should be around INR 240 crores by this time.
Right. Yeah.
Okay. Understood. Thank you very much for answering.
Thank you. We have the next question from the line of Dhavan Shah from AlfAccurate Advisors. Please go ahead.
Yeah. Thanks for the opportunity. I have a question on the railway side, particularly. You mentioned the order inflow for up to INR 900 crores for the nine months. Can you mention the order backlog from railway as on third quarter?
It would be in the range of about INR 950 crores.
INR 950 crores . Okay. In terms of the HP and LP, would it be possible to share the breakup of the revenues, order inflow and order book for this third quarter and the nine months?
That we don't give a split of this.
Okay. Okay. The last one is on the capacity wise, I think, capacity utilization wise for the power business, you mentioned the 65% utilization, right?
Yes.
That is transformer.
That is for, that is only for the power transformer and the distribution transformer.
Got it. Got it. That's all from my end. Thank you.
Thank you. We have the next question from the line of Sanjay Kumar from iThought PMS . Please go ahead.
Hello, sir. Thank you for the opportunity. My only question was on the capacity expansions. The distribution, you're adding 3,000 MVA. Is it specific to solar inverter transformer or is it for traction transformer or is the capacity kind of flexible so that we can cater to any kind of demand that comes up?
This is, so this is for all types, actually. We already make the Inverter Duty Transformer, that is IDT, for the solar segment. I mean, it more come in the range of the, we call it the low power transformers, from 10 MVA to 50 MVA. So we do specific capacity expansion for all types of transformers.
Okay. How is the outlook for solar, given the government's focus on renewables, and we might even be adding 20 GW or 30 GW of solar power every year going forward. So is that capacity enough to for us to supply?
See, as you have rightly said that there is the outlook is good. There are so many things coming. Definitely we are constantly monitoring our capacity where there is the demand in the market. In the meantime, if required, we will expand our capacity.
Okay, sir. Thank you. That's it for today.
Thank you. We have the next question from the line of Vikas Srivastava from RBC Financial Services. Please go ahead.
Yeah. I apologize if this question has asked and answered before. Just wanted to know if you're in favor of how the consumer products, what are the markets you entered, what are the products you have launched, and how do you look at it in the next two, three years, the consumer products?
No, we cannot share so much details. You know, we have entered into only two products as of now, but beyond that we cannot share the details.
Okay. Absolutely like regions, size of the market, where do you see it in three years? Anything at all which you are ready to share just to give a flavor to the investors as to where we are headed on this. I mean, I understand for business reasons you can't talk much, but whatever you can, if you can, whatever your business compulsions permit you to.
We for next three to five years, we are looking for at least four digit numbers. This is the way we can talk.
Yeah, sure. Sure.
This is the maximum we can say.
We're looking at a four-digit turnover in the next three to five years.
Right. Yeah.
Yeah. Okay. Thank you.
Thank you. We have the next question from the line of Amit Mahawar from Mumbai. Please go ahead.
Yes, hi sir. This is Amit from UBS. right in understanding that, uh, you know, the capacity expansions in the export target should help the company beyond FY 2024 only in terms of export revenues for power product and not before that? That's the first question
See this capacity for the transformer, capacity is for the manufacturing transformer. We have already given exports even today from both our factory at Gwalior as well as Bhopal. Going further, as explained earlier, we are focusing primarily first on the domestic demand. As and when the opportunity arises, we will also keep looking at exports.
Okay. Okay. Maybe second question on the industrial side. Through the current portfolio, how should we think about the, you know, export business again on the LV Motors side? So if you can also throw some light on what is the mix of, you know, LV and HV in terms of exports, largely these are LV Motor.
So far, the largely is LV Motors only. I know we have said in the last meeting, last call that we are going for an expansion basically for meeting the local demand as well as because we are not been much focusing on the exports. Now we will be focusing more on the export also.
Okay.
It will be largely on the LV Motors.
LV Motors. Fair point. Very helpful. Maybe the last quick question. On the entire power portfolio, if we assume around INR 140 billion-INR 150 billion is the annual equipment market, you know, for the next five to six years, if, you know, almost a third of that goes in maybe HVDC or RE-based products hopefully, which is FSDC, HDC, et cetera, where we are relatively not present, can I assume that roughly 60%-70% of the annual INR 150 billion-INR 140 billion market is addressable market for CG left in our section? Thank you.
Yes, we are in check.
Thank you, sir. Bye.
Thank you. We have the next question from the line of Jitendra Sriram from Baroda BNP Paribas Mutual Fund. Please go ahead.
Yeah. Good evening. I just wanted to understand one thing from a capability standpoint. When you are mapping out your capabilities for a three to five year time stream, if you look at, impact-heavy sectors like railways, renewables, all that is very active or Industry 4.0 and stuff, where could you think that you need to add some ammunition going forward, current transformers or IGBT compensators or what exactly would be the areas of focus going forward?
That's a very very generic question. In motors, I don't think we have anything to be added excepting for technology for EV. If you want to serve the EV segment, we need some technology there. That is one. As far as railways are concerned, the products which we are doing, we continue to do. There is no absolutely no problem. In projects, big projects like Vande Bharat or other, the locomotives, et cetera, if you want to enter, we have to join with consortium with some players. That there is some. Similarly on the signaling side, like TCAS, et cetera, we need to acquire the technology. These are the areas in which, you know, we require as far as railways is concerned.
On the power is concerned, you know, the whatever demand that is, that is expected in the next three to five years, I think we are sufficiently, we have the capability to manufacture and service the market.
Okay. Also if you could just talk about what exactly do you cater to on your on your automation side, what areas you currently have products available in?
This is not something which we are doing in India. Our overseas subsidiary, the Drives and Automation subsidiary is actually servicing some of the customers in Europe and elsewhere. They have specific applications for many industries, you know, water, wastewater, irrigation, then energy efficiency.
Material handling. Now right now even they are getting into electrolysis. Like that there's nothing operational in India.
Fair enough.
Okay. Thank you.
Thanks very much.
Thank you. Before we take the next question, a reminder to all the participants, anyone who wishes to ask a question may please press star 1 now. We have the next question. That is a follow-up question from the line of Mahesh Bendre from LIC Mutual Fund. Please go ahead.
Hi. Hi, sir. Just a follow-up question. You said Railways Business is around INR 830 crores, for nine month.
Yes.
That is, I mean, included in the industrial business, right?
Yes.
Included in power business.
No, no. It's included in the industrial system.
Sir, what was this number for last nine month?
That is what it is.
INR 830 crore. That is what we obtained.
That is what we obtained. The balance part was told, which is, also INR 200 odd crores is also in power. Since it is mixed in both industry and power, we don't declare separately.
Okay. INR 846 crores is for this nine month and previous for nine months, what is that number?
That would be about INR 700 crores .
Okay. Okay. Sure. Sure. Thank you so much, sir.
Thank you. We have the next question from the line of Mayank Chaturvedi from Equirus Capital. Please go ahead.
Hi. Good evening team. Thank you for the opportunity. My first question is on the electrical system side, on the HV Motors. You said that the ordering they try, the volume side they are getting are very good. I just wanted to ask if this is a result of any technology upgradation that you have taken in, because as far as I understand, there was some, the gap that we had with our competitor. Any movement on that front of plugging the product gap?
No, no, it is basically the market is doing very well. Also if you notice that, you know, a couple of years back we have a separate plant for HT motors, so we have increased the capacity in 2019. That is why we are now utilizing that capacity what we have built that time.
Okay. We are trumping all the new competitors that we are seeing in the market as well. We are seeing like WEG, TECO going very aggressive. Even, no, challenges from that front as well, sir?
They have been there. In HT there are more than 11 competitors, so they have been there for quite some time now, so.
Okay. Okay, got it, sir. Secondly, on the Power Systems suite, can you give me a split between the revenue split between transformers and high voltage switch gears for the first nine months?
No, we don't split that number. It's a combined number for both the transformer and the switch gears. The ratio remains between 40%- 55%. That is usually the breakup.
45% transformers and 55% switch gears.
Yes.
Okay, thank you so much, sir. I'll get back if necessary.
Thank you. Participants who want to ask a question may please press star and 1 now. We have the next question from the line of Dhavan Shah from AlfAccurate Advisors. Please go ahead.
Yeah. Just the last one on the capacity wise. Would it be possible to share the capacity and utilization numbers for LT and HT motors?
It's 80%-85%.
The capacity in the number or anything?
We don't do the reporting with number, but our utilization is today stand around 80%-85%.
80%-85%. Okay. You mentioned that the capacity for HT motors, so how much expansion was there versus the base number? In terms of percentage-wise or so that.
That was done in 2019. That is what our Mr. Ramesh Kumar is talking about.
I said earlier we used to manufacture railway and industrial motors in one plant, we have separated that plant and we got more capacity. That is what I mentioned. That was done in 2019.
Okay.
Thereafter market was not good. Now the market is good. We are taking the advantage of that.
Okay. Got it. Thanks.
Thank you. Anyone who wishes to ask a question may please press star and one now. We have the next question from the line of Amit Anwani from Prabhudas Lilladher Private Limited. Please go ahead.
Hi, sir. Thanks for taking my question. Would like to understand your market positioning. Are we gaining market share in each of the verticals, including transformers, switchgears and LT, HT motors? Any numbers you've got if you would like to share.
No, we are gradually increasing our market share. Motors we are at around 33%, 34%. In transformer we are less than double digit, but what we were there onw year or one and a half year before, now definitely the market share has gone up.
Right. My second question, is with respect to transformer and, if you would like to share on the competitor intensity there between us and the nearest competitors with respect to, you know, pricing and, products, anything which is, you know, impacting the market or making the market for transformer?
Mukul, sir.
If I understood your question, your question is about the competitive edge we have got over our competitors. Is this correct?
Yes, sir.
Okay. See, the, we are a player with large clients and good teams in manufacturing. You know that transformer are standard items specified by IEC. Normally all of us has to meet these specifications and put in a tender. Generally these standard items will not have a very distinct advantage with anybody. It is the manufacturing efficiency and what features we can additionally add. That we constantly keep working and keep updating also.
Okay. Thank you, sir.
Thank you. We have the next question from the line of Janak Kumar H from JLS Capital. Please go ahead.
Thanks, sir, for the stellar Q3 performance. My question is, when do we propose to restart the lighting division, consumer lighting division?
It will take some time. No decision has been taken. It has been decided by the board first, it has to be chaired by the board, so we can't say anything. There are no some immediate plans, no.
Because Sir Crompton Greaves was one of the leaders in consumer lighting division, like especially in LED lighting. Better would be earlier, sir.
Okay, thank you.
Thank you for your suggestion.
Okay. Thanks, sir.
Thank you.
You're welcome.
As that was the last question for today, I would now like to hand the conference over to Ms. Bhoomika Nair for closing comments. Over to you, ma'am.
Yes, thank you. Thank you very much for giving us the opportunity to host the call, sir. Wishing you all the very best. Any closing remarks from your side, sir?
No, I think nothing special.
Thank you for all the participants who joined this call. Thank you.
Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.