Good morning, everyone. On behalf of Asian Markets, we welcome you all to the 1Q FY 2025 earnings webinar of ELGi Equipments Limited. We have with us Mr. Jairam Varadaraj, Managing Director, representing the company. The event will start by a brief press presentation by Mr. Jairam Varadaraj, highlighting the quarterly financial performance and the business updates, followed by a Q&A session. Mr. Jairam, you can start your presentation. Thank you.
Thank you, Kamlesh. Ladies and gentlemen, thank you so much for your time this morning. And as always, thank you, Kamlesh, for organizing this. Let me share the deck. Just give me a minute, please. Are you able to see my deck?
Yes, sir. It's visible. Yeah.
Okay. Thank you so much.
Yes, sir.
Yeah. Thank you. So I want to first go directly to the EBITDA compared to the previous year. We had a pretty good profitability. I will dissect it a little bit in the context of this. So if you really look at the bridge from last year to this year's EBITDA, our volume was the primary contributor to the EBITDA increase during the quarter. Contribution margin continued to remain strong. Marginal improvement by a better product mix and region mix. Now, the EBITDA should have been close to 1.33. Our biggest challenge has been in the US. If we had US delivering to our budgeted expectation, then this would have been a lot better.
So the increase in cost has been employee cost, which is a 7% increase, 11% in India, and a reduction in some of the regions globally. Net-net has been 7%. In other expenses, there's been a 7% increase. Primarily, this is an initiative that we are running through a consulting agency for the Indian market. I will talk more about it in the subsequent slides. So when I look at sales, compared to the previous year, all the regions except Australia have grown. And the reason Europe is showing a red, or a downward arrow is because, you know, accounting cutoff. In Europe, the accounting standards are quite stringent about what you can take as an invoiced amount for the month. So in the month of June, last quarter of...
Last month of the quarter, we had a significant invoicing during the last week, which could not be taken into account, and that's why Europe is showing as red, but otherwise, it has also grown beyond last year. So if you look at the revenue, we have grown 11% over the previous year same quarter. And PBT has been 17% improvement over the previous quarter. So overall, I think it's been a good thing profitability-wise, but we are really not satisfied because there's one region, which is North America, which we had a problem last year due to our ERP implementation that continued into the quarter a little bit. We didn't expect it to continue, but it is. But we are still resolving it.
Most of the problems are resolved, so I think the next quarters should be far better. Besides that, in North America, we are one particular vertical, our portable vertical, the overall market has dropped by almost 30%. Not our sales alone, but the market has dropped by 30%. So that's another significant impact that is there in North America. But I expect that the subsequent quarters there will be stronger. So if you look at the split between automotive and compressors, it pretty much remains remains stable at 92% and 8%. And also, India versus the rest of the world. This particular quarter, India has contributed more than the rest of the world, primarily, again, because North America did not prior to our plans.
So, if that had happened, the ratios would have been pretty much the same as in the past. So the consolidated financials, as a consequence of all this, this is the, this is the number. Like I said, the overall financials performance has been good, but there are still opportunities for us to improve, which we will continue to do in the rest of the quarters. One of the challenges that we had this quarter was, you know, our cash generation was not as we wanted it to be, and the primary cause of this is inventory.... And the reason for the inventory buildup has been the Red Sea problem, because of which the transit times from India to Europe and America have increased.
And as a consequence, we've had to bulk up a little bit on inventory, which we were anyway reducing from the post-COVID period. But this particular situation has, again, brought it up, brought it back up. We are putting a large initiative to really cut the inventory down across all levels. We expect to see some good traction by the third and fourth quarter of this year. Besides the Red Sea problem, there's been a huge congestion in China as well as Singapore, that has affected our shipments to the eastern part of the world. So these are the reasons why the inventory cash position has not been as good as we wanted it to be, but we should improve it in the next few quarters. So thank you.
This is what I really wanted to present to you, and I will rely now on questions, to further clarify whatever you may, you may want to, ask. Thank you.
Sure, sir. We'll wait for some time for the question queue to assemble. Participants, you can use your raise hand option, or you can drop in the question in the Q&A box or the chat box, and I will be happy to take it with Mr. Jairam. So first question we have is from the line of Mr. Ravi Swaminathan. Ravi, you may go ahead, unmute yourself and ask your question.
A very good morning, Jairam, sir.
Hi. Hi, Ravi, how are you?
I'm doing great, sir. Congrats on a very good set of numbers.
Thank you.
My first question is with respect to the standalone business, which majorly would be India business.
Mm.
-which has seen a very strong growth of around 18%, especially during the election quarter. What has been the top four, five drivers of it?
Mm.
If you can talk about the India business more. I mean, I sense a lot of it would have been volume-driven growth. I mean, there is no-
Mm.
it, or there is a big one-off angle to it. I don't think there is a big one-off angle to it. You can give your thoughts on that.
So, yes, we had a very strong growth in India, Ravi.
Mm.
It is across all verticals.
Mm.
One vertical that stands out for us-
Mm
Compared to the previous year, has been the water well, right?
Mm.
So I wouldn't say water well is the only reason for our growth, but it's been a sizable contributor. But all our industrial verticals have grown. Our aftermarket has grown, our water well construction and mining, non-water well portable business. So I would say all the verticals have grown, and we believe that there is ample opportunity for ELGi in India. Even if the economy does not grow as anticipated, we are expecting that there are opportunities for ELGi to improve market share, considering the whole new slew of really top-class products that we have continuing to launch now, right? So to capitalize on that is the project that I referred to earlier. We have engaged with McKinsey for a go-to-market refresh in the Indian market, and the goal is really to get deeper into the market.
Mm.
The piloting of the project has started. We expect to roll it out by the third quarter of this year, and we expect to see the result of that, greater results, greater traction of this in the next year.
Understood, sir. And, what is your sense on the overall industry level growth itself, probably in the last past quarter? And, how was the demand from industries, that is, right from the small SME, MSME, all the way up to the large steel and refinery, cement, and all these kind of sectors in India?
We are seeing, we are seeing across the board, a higher level of activity, across the board.
Mm.
Right? There are some sectoral issues like textiles, which are still weak, right?
Mm-hmm.
Other than that, most other industrial sectors, we are seeing a lot of robust activity.
Understood. And, one more follow-up question. There are certain segments like, railways or data center. Even during the analyst meet, you had talked about railways doing well. If you can talk more about business potential from, railway side, how big can be...
Well, you know, railways is not a big part of our business. I mean, it is-
Mm.
-It's a good business that we are in, but it's not like a sizable part. And the growth in railways is a function of the budgetary allocation, because railways is still a very government-controlled entity.
Mm.
Yeah?
Mm.
This budget, there's been an emphasis on infrastructure, railways being one of them, right?
Mm-mm.
So we'll have to see how this pans out, how much of the investment goes towards building... See, our business goes when-... locomotive production goes up, right? Not because of railway budget alone, right?
Mm-hmm.
Railway budget can go towards, you know, safety devices.
Mm-hmm.
It could be towards expansion of network, it could be towards expansion of rakes.
Mm-hmm.
-which is the, you know, the cargo transport. But at that, all that doesn't improve our business. Our business improves when locomotive capacity is increased. So we'll have to wait and see how the budget is used into the various sectors.
Understood. And, just to get more clarity on the India business, we generally don't share the breakup across top five, six, segments, et cetera.
Sure.
But from a descending order of importance-wise in terms of end sectors, would infra, then industrial, then retail, then water well, will that be the picking order in terms of size for us, or is there anything else that I would have missed out?
Ravi, Ravi, I'll be giving this up indirectly to you. I wouldn't like to talk about our contributing factors, either in percentage or in order.
Okay.
to our revenue, right? So...
Understood, sir. Sir, the last question, in terms of the vacuum products that you had talked about in the analyst meet, any progress with respect to that?
So the collaboration work has started. The drawings have been shared, and the indigenization work has started. A team is going to visit in the next month or so.
Mm-hmm.
So, and in the meantime, we have already started seeding installations in the market, fully finished units, so it's going, moving along. Yeah.
Okay. So, in the presentation last time you had mentioned in India itself, it's a $1,150 million-$2,000 million business. So essentially that will translate into-
No, no, no.
INR 2,500 crore market. I'm sorry, not business, but market size in India.
India is not INR 2,500 crore.
No, sir, $150-$200 million, so that comes to around INR 1,500-2,000 crore market. If... It won't be that big?
No. No, no, no, no, no. Not in India, no.
Mm.
The total market we estimate is about $3 billion-$5 billion worldwide. Yeah?
And sir, I want-
And in India, I don't have the numbers in front of me, Ravi, but I think it's around INR 400 or 500 crore. I don't have the numbers in front of me.
Understood, sir. Any targeted market share over a 3-4 year for this, you, you-
It's a 10, it's a 10-year play because there are well-entrenched players in this market. This is not something that is going to. This is like ELGi entering the compressor business for the first time, right?
Mm-hmm.
You can't expect to see an immediate inflection, but it's a slow journey, but it's a profitable-
Mm.
Synergistic, journey that we need to engage in. Yeah.
Understood, sir. Yeah. Thanks a lot.
Yeah.
The next question we have is from the line of Mr. Harshit Patel. Harshit, you may unmute yourself and go ahead with your question.
Thank you very much for the opportunity, sir. Sir, my first question-
Hi, Harshit. How are you?
All good, sir. All good. Sir, my first question is on the profitability in North America as well as in Europe. I think we were on track to break even in FY 2025, so in Europe. So what is the update on that? And second, how do you see the profitability in FY 2025 for the North American market, since that the growth-
Yeah.
is coming back, the challenges with ERP implementations would be over at least by the next quarter.
Yeah.
Also, the leadership hiring is also in place in the North American market.
Yeah.
So how do you see the margins in these two regions?
Yeah. So, as far as Europe is concerned, we are on track to break even this year. So the first quarter's numbers are indicative of the fact that, we will, we will hit that. We are very optimistic that we will break even, this year in Europe. As far as North America is concerned, the worst year was last year, and compared to that year, we are doing, we are tracking far better. And my reference to North America in terms of challenge was in relation to the plan that we had, rather than in comparison to the previous year. Compared to the previous year, we are still doing far better, and we are hopeful in the next three quarters, we will, have a reasonable contribution from North America to the overall profitability.
And that, this year will be like a year that we recover most of it.
Understood. Sure. Sir, my second question is on the motors production of our own. I think by the third quarter, we aim to start producing even 160 kW motors as well. So what is the progress over there? And when that, I mean, when we will begin that particular production, what would be the quantum of production that, I mean, the share of our own motors as a percentage of our overall procurement, where that number will reach?
So, Harshit, the plan was to release the design and pilot by the third quarter, not get into regular production. The regular production of the higher kilowatt motors will stabilize in the next financial year. Yeah?... Now, overall, if you look at, if 100 is the total number of motors in quantity that we are buying today, by FY 2026, we would have covered close to about 85% of our requirement, complete range. Yeah.
Understood. That answers my question. Thank you very much for taking my questions, and all the best.
Thank you.
The next question we have is from the line of Mr. Rangan. Rangan, you may unmute yourself and go ahead with your question. Rangan?
Maybe we can move on to the next and come back.
Yeah. The next, we have is from the line of Mr. Mohit Jain. Mohit, you may unmute yourself and go ahead with your question.
Hello, Jairam Sir. Good morning. How are you?
Very well, Mohit. How are you? Thank you.
I'm good as well. Likewise. Sir, my question is on the CNG compression part, gas compression. So I've seen other players into it, Kirloskar, IR, Atlas. So are we planning to move into this market? Because there's a lot of allocation in CNG gas stations from the government and all. So is this a lucrative business for us?
Well, Mohit, we looked at this business about 12, 13 years ago, and we were looking at a potential partner to work with in the Indian market. But after doing a lot of detailed study, we felt it is a distraction for us on multiple reason, multiple levels. Technology-wise, it's not a challenge because it's quite adjacent to the knowledge that we possess in the company, so that's not the issue. But the go-to-market and the volatility of the business is was not something that we are accustomed to doing. You know, it's government, it's tenders, it's projects, sometimes long working capital cycles, uncertainty in terms of installations, when it will get commissioned. So we said this is not the business.
There are huge opportunities in air globally rather than focusing on CNG in India, so we've decided to stay away from that business.
All right, sir. All right. Yeah, likewise, I have seen government's tenders getting delayed and delayed.
Yeah.
So, yeah, that answers my question. Thank you, sir. All the best.
Thank you.
The next question we have is from the line of Mr. Raj Shah. Raj, you may unmute yourself and go ahead with your question.
Yeah. Am I audible?
Yes, sir.
Yeah. Good morning, Dr. Jairam.
Good morning.
Thank you for the opportunity.
Sure. Thanks.
So, sir, yeah. Sir, my first question was regarding the water well segment. So, the question was, the growth that we are reporting, is it a factor of, say, sector tailwind or the new products that we launched? Because if I'm not wrong, in last few years, we lost market share in this particular segment to a competitor. So what has worked in our favor, please share your thoughts, sir.
So the contribution of water well is a combination of both, Raj. It's the sectoral growth, the demand in that sector has gone up, plus our growth in market share. The growth in market share is primarily because our product is a far superior product. It took a while for the customers to establish and believe its credibility. That was almost a 2-3-year timeframe. But fortunately, that 2-3 years of trying to convince customers was during the downside of the segment, demand in the segment. So just at the time when the demand started picking up, the confidence levels in the market on our products was at a very high level. Today, if we can produce more, we can sell more, and the constraint for us today is the supply of engines from Cummins.
It's not our internal constraints.
Okay. Okay. Got it, sir. So, so, say, if we are in the steep part of the curve, for water well segment, what kind of contribution of water well is there to our standalone revenues? I don't want exact numbers, sir. Approximately.
Well, I don't want to give percentages, Raj, because then that reveals exactly what our contribution is. But I can tell you, it's a, from a growth point of view, it's, it was a sizable contributor. Yeah.
Okay, sir. If you can say in the total addressable market for our products, water well, is it a significant contributor to overall market?
Overall revenue?
Not company revenue, sir. Market size. In terms of market size.
No, no, no. From a market size point of view, no.
Got it. Sir, next question is regarding the competition in India.
Mm-hmm.
from the three MNC players as well as Kirloskar. So how is it panning out? And because this is for the second consecutive quarter that we have reported very good growth numbers in India, standalone business.
... So, you know, Kirloskars, the comparability of us with Kirloskar is not exactly, like to like, because they are in CNG, they are in refrigeration, they're also making transmission products. So their participation in the pure air compressor business is relatively small, and so therefore, the comparability is not here. As far as the other three multinational companies are concerned, well, one, two companies, they are not listed, so we wait for their results only at the end of the year. The listed entity, we are waiting for their quarter results to be published. We don't have it yet.
Okay. Okay. Thank you, sir. This answers my question. Thank you very much.
Participants, if you have any question, you may please use the Raise Hand option or drop the question in the Q&A box. Sir, the next question we have is from Mr. Ravi Swaminathan. Ravi, you may unmute yourself and go ahead with your question.
Hi, sir. Thanks for taking up this follow-up question. This question is slightly long-term-ish. So what I observed in the standalone business of yours is that the gross profit or the sales minus raw material consumed has kept expanding over the past 5 years or even over a 10-year period. I think this has been a combination of mix, after-sale service, and pricing improving. If you can talk about how much more there is a possibility for this to improve further. So I'm thinking of from, say, 3-4 years from today. Today, the business environment is good, et cetera, but how much of this would be more of a structural improvement in nature, and how much of it would be a business environment driven one in nature? So if you can...
So structurally speaking, the growth in profitability in the future will be a function of how much of our revenue comes from aftermarket, right?
Mm-hmm.
Now, as the installed base keeps going up, the aftermarket numbers will keep improving, right? There is still quite a bit of headroom for growth there, as a percentage of total revenue when I compare it with larger companies, with a much more steadier state aftermarket business, right?
Mm-hmm.
There is room for us to grow there from a profitability point of view.
Mm.
Structurally speaking, we are also developed some new products to, like I was telling you about the, the competition from cheap Chinese imports.
Mm.
We have developed some exciting new products which can take them on squarely, right?
Mm-hmm.
That would be, structurally speaking, less profitable, but it is a contribution to revenue that would have otherwise not been there, right?
Okay.
While it may depress the percentages, it'll increase, it'll enlarge the-
Mm
... overall quantum of profit. Yeah.
Mm-hmm. Mm.
So these are the two structural things that I see. I don't see an opportunity for us to keep increasing our prices at this point in time, no.
Mm-hmm. Mm. And the pricing difference between ours and probably the market leader would have significantly narrowed as of, as we stand today, we serve you-
Yeah, yeah.
Uh-
True. This is true. Yes.
All right. All right. And, second is from a capacity to manufacture standpoint. I mean-
Mm.
So we are growing in India at probably more than 15 or mid-teen kind of growth over a two- or three-year period.
Mm.
Probably, this continues for another 2, 3-year time period.
Mm.
Do we have enough capacity for catering to that? Would we think about CapEx in the next two, three years?
So, like I've explained in the past, there is the regular CapEx, which I call as balancing assets, right?
Mm-hmm.
That is, you know, depending on a year, it is anywhere between INR 30-INR 50 crore, right?
Mm-hmm. Mm.
This gives us... See, our philosophy on capacity planning is to look one year into the future-
Mm
... and have that capacity ready even now, right?
Mm-hmm.
So that gives us the flexibility to respond to unexpected increases in demand, right?
Mm, mm.
So that philosophy continues and that principle is there, so we have enough capacity to respond to market requirements. Now, at some point in the future, there will be a requirement for space, right?
Mm-hmm.
That is, factory has to expand, which is what we are talking about in our process of moving our city plant to the new campus. That's going to happen over a 5-6-year period, which we said we are going to cost us about INR 500 crore. The first phase of it has already been cleared, plans have been made, approvals are being processed. So we will probably break ground this financial year. So that will be ready in another 15 months or couple of years, right? Then we will keep investing into the progressively moving each line into the new campus.
Understood, sir. Yeah. Thanks a lot.
Yeah.
Sir, we'll wait for the question queue to assemble. Participants, if you have any more questions, you may please use your Raise Hand option or drop it in the chat box, please. Sir, we have Mr. Rangan again. Rangan, you may unmute yourself and go ahead with your question.
I don't know whether he's having some challenges. Rangan, you need to unmute yourself, otherwise I won't hear you.
Rangan?
I think he is facing some technical challenges from Rangan's end. Rangan, you may unmute yourself and go ahead with your question.
Hello?
Yes, Kamlesh, sir, you may go ahead with the-
In the meanwhile, Jairam, sir, if you can highlight, you touched upon the logistics issues, both in Red Sea related as well as in the, China and Singapore side.
Mm.
So how is it getting impacted, our operations, in terms of shipping from India, or how it is... And is it being resolved now or it still persist?
The Red Sea problem still persists because the transit times have increased, yeah, because-
Mm-hmm.
So, there are multiple effects. One is the transit time. We're going via the Cape of Good Hope rather than going through the Red Sea and the Suez Canal.
Yes.
Right? So the transit times have gone up by a couple of weeks. So to that extent, your inventory has gone up, right? Because of the congestion in China and Singapore, the availability of containers has become a problem, so freight rates have gone up, right, quite significantly. So besides lead times to the eastern part of the market, the world market. We are hoping that this will get resolved or it becomes a steady state and everybody absorbs these costs at some point, yeah?
Mm-hmm.
So it's really out of our hands in terms of finding a solution. Rather, I mean, our only solution is, you know, find ways to take cost out to compensate for this freight, because we really can't pass this cost on, because already there are challenges in Europe and America, and in India in terms of price absorption. So we can't really pass this on. So we are looking at where can we cut costs to compensate for these rate increases, and trying to optimize our inventory so that we are able to extract cash, while at the same time retain enough inventory to serve the customer on time, yeah?
Okay. Right. Yeah. Nilesh, any other questions you have?
Sir, sir, we have one question in the chat box, from Mr. Venkatesh. Sir, what are the current consulting ongoing programs going on? What has been the amount spent till date, and what more is likely to be spent?
We have a project with McKinsey for our go-to-market in India. We have already spent about INR 7-INR 8 crore, INR 6 crore maybe, and we have another maybe INR 13 crore-INR 14 crore left to be spent. We also have a project with Deloitte for our finance transformation project. That's a very small amount. It's about INR 1 crore, which most of it has been spent. It's not a significant area. We are going to create a few more projects in HR, in supply chain, which are going to be, but I don't expect them to be very significant. A few INR crores may be spent this year, but not significant.
But overall, I think what has happened in the last 10 years is the business has grown beyond the capability and capacity of the enabling functions like finance, HR, some of the back-end operations. So we are investing heavily into beefing up the processes and the strength of these organizations to respond to requirements globally, right? So there will be a cost that the company will incur. For instance, digital and our information technology infrastructure is far behind what the business has grown into, right? So as part of getting in a leader, a pretty seasoned senior leader for heading our digital initiative and our technology initiative, information technology initiative, we will be investing quite a bit on those platforms. So that will be over the next 2-3 years.
... Sir, a follow-up question on the chat is, if FY, in FY 2024, transport costs have declined sharply this year, both in standalone and consolidated basis. And are these either genuine reduction in cost or different ways of presenting it? Need to understand.
I don't understand the question.
Sir, further explanation to it is given that there is the costs have been down YOY from INR 105 crore- INR 87 crore, while on standalone basis, the costs have gone down from INR 61 crore- INR 39 crore.
Which cost is, are they referring to?
This is transport cost.
I'm sorry, I don't have that level of granular information in front of me. I suggest whoever has raised that question to email it to us, and we will try and, you know, explain it.
Sure. Sir, the next question, it's a pretty lengthy question, and I'll take it part by part. Sir, could you kindly speak about the installed base mix? How much is in India versus rest of the world? And as far as our penetration in terms of aftermarket sales of overall revenue goes, what would it be in India and rest of the world?
So the installed base, I don't want to give specific numbers, but as a percentage, I would say approximately, India would be close to 80%, and the rest of the world will be 20%. Now, in terms of penetration of our aftermarket presence in India would be probably around 70-75%, and the rest of the world, probably around 80%.
Sir, an additional point to it is, can you please speak about what initiatives are we taking to improve this penetration?
That's an ongoing operational thing. There's nothing strategic. It's about engaging with the customers, making sure that there are systems and processes in place, both at our level as well as at our channel partner level, to be able to get to the customer at the right time for parts and service to be rendered, to be supplied.
Finally, is there any difference in the aftermarket margins of India versus rest of the world?
The margins in India are definitely lower, but you need to look at the margins. At a gross level, they are lower, but at a net level, because people costs are less, is higher. The gross margins in the rest of the world are higher, but people cost and other overheads are higher, therefore, the net margins are low.
There is a question, sir, which says, are there any inorganic opportunities of growth possible in the market today?
So, you know, like we've been saying, inorganic growth for us is the, is not the preferred option to grow. Our preferred option is to grow through organic means, through association with strong channel partners. That has been our model right from the beginning. That continues to be the model everywhere. It's only when strong channel partners are not willing to take our brand and we need to grow in the area that they are in, we look at one joint venture with someone, or if there is an inorganic possibility, we look at it. That's on the customer access kind of an opportunity. The second inorganic is adjacent products, right? Products that are adjacent to our business, related to us. If there are opportunities of that nature, we will certainly look at it, but we have not come across any yet.
Sure. Sir, the next question is, do you have any future plans of application of artificial intelligence to ELGi products?
We are so—we are definitely doing that. I mean, we are—if you look at our Air-Alert project, which we have now, at our cost, installed, we are going to install close to 2,000 machines. The idea is to get data, and a lot of AI is a function of having data, and able to make sense out of that data. So once we have those machines installed and we start collecting data from these machines, we will be able to use, develop algorithms by which we will be able to predict failures, predict potential, savings opportunities for customers. So that will definitely something that we are working on.
Sir, there is a follow-up question on India versus the rest of the world. Could you please speak about the aftermarket revenue percentage of total in India versus rest of the world? And the question on margin, which was also on aftermarket, what would be the aftermarket margins in India versus the rest of the world?
Our aftermarket in India is roughly about 25%, 25%-28%. Rest of the world is probably at around 12%-15%. Margin, I would not like to go into the details of, the specific margin percentage.
Sure. Sir, in the interest of time, we will take one last question from Mr. Ravi Swaminathan. Ravi, you may unmute yourself and go ahead with the question.
Sir, thanks a lot once more for taking this question. There are a few emerging sectors that are there in India. So I'll just read them out. If you can talk about the compressor, air compressor opportunity from the incremental CapEx angle across value chain in each of these. Electronics, one-
Mm-hmm.
Green hydrogen, data center, and renewables. So, for example, renewables means right from, say, the manufacturing of module or glass, et cetera, and someone who puts up a CapEx, and therefore the demand for compressors, some.
Mm.
Electronics means the entire CapEx is being built-
Mm.
And you need clean air and all these things. Yeah.
So, Ravi, I can't tell you specifically what's the value of the opportunity, because it depends really on... Electronics is too broad a category, right?
Yeah. Yeah.
That could be as complicated as a integrated circuit type of a thing, where you make semiconductors, all the way to something simple as making a PCB and surface mounted devices. So it's a wide spectrum, right?
Yeah. Correct.
Now, each of them have different levels, and the scale at which they are being done is there's going to be a lot of requirement, particularly for oil-free compressors, right?
Mm-hmm.
We have seen this already. We are supplying that in countries like Malaysia and Thailand and Vietnam, where the-
Mm.
We do have customers in these segments, right?
Mm. Mm.
As far as green hydrogen is concerned, it is, you know, hydrogen needs to get compressed, and that principle of at very to very high pressure.
Mm.
That's a different, different business altogether, right?
Mm.
There is really no application there, right, for us?
Mm. Mm, mm.
As far as renewables are concerned, you know, manufacturing of solar modules and all that is like a regular manufacturing. So we will be requiring, they will be requiring, and we are already; we have quite a few customers in that line.
Okay. Okay, and data centers?
That we, like I said, we really have no clue of what is the requirement. Yeah.
Understood, sir. Yeah. Thanks a lot.
Yeah.
Sure. Participants, whoever have put questions in the chat box, I believe in the interest of time, you can email it to Mr. Jairam or the IR team at ELGi. Sir, we would request you for your closing remarks, and then followed by the vote of thanks from Kamleshji.
Thank you so much. Ladies and gentlemen, thank you again for your time and your extremely perceptive questions. It has been a pleasure to interact with you. Like I said, the performance has been good, but it is not something that we are very satisfied with. We expect that the subsequent periods of this financial year should be better. And we are quite optimistic about the future, especially India, where we are having a renewed focus into these markets. So I look forward to engaging with you, shortly, as the quarters go by. Thank you very much.
Thank you, Mr. Jairam, for that insightful discussion. And, participants can log out of the meeting. Have a great day ahead. Thank you.
Thank you very much, Kamlesh.
Mm-hmm.
Thank you, Asian Markets-
Thank you, sir.
for organizing this.
Thank you, sir.
Thank you.