Ladies and gentlemen, good day and welcome to the Schneider Electric Infrastructure Ltd Q4 FY 2025 conference call hosted by Elara Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-on phone. Please note that this conference is being recorded. I now hand the conference over to Harshit Kapadia. Thank you, and over to you, sir.
Thank you, [Saicha]. Good morning, everyone. On behalf of Elara Securities, we welcome you all for the Q4 FY 2025 and FY 2025 conference call of Schneider Electric Infrastructure Ltd. I take this opportunity to welcome the management of Schneider Electric Infrastructure, represented by Mr. Udai Singh, Managing Director and CEO, Mrs. Suparna Bhattacharya, Chief Financial Officer, and Mr. Mohit Agarwal, Head of Investor Relations. We will begin the call with a brief overview by management, followed by Q&A sessions. I will now hand over the call to Mr. Singh for his opening remarks. Over to you, sir.
Thank you, Harshit, and good morning to each one of you, and thank you so much for joining at 11:00 A.M. I'm sure you must have gone through a small set of slides which we had shared, and I would like to take you one by one before I hand over to my colleague, Suparna, to talk about financials. I would request you to go to slide two, which just illustrates once again as to what mission and vision your company has got. Mission very clearly stays as to be a digital partner for sustainability and efficiency, and we believe that life is on everywhere for everyone at every moment.
At the same time, we have a very clear vision that we would lead the new digitalized energy world by offering our customers and partners the most innovative connected products and solutions, which would be ready for the then power distribution's elevated expectations. If you turn around and go to slide three, which we have sort of, I'm sorry, this would appear to be a busy slide, but just wanted to share with you as to how do we see macro-level market outlook in times to come. One thing which is very clearly emerging is we have come to a level which is sort of a steady growth in the country. It means that a couple of years ago, when we just got passed over the unfortunate periods of COVID, there was a slight surge in the CapEx infusion which happened.
Now it has come down to what we see as a steady path for us ahead. If you know, the GDP essentially has been consistent, roughly about 6.5. The GFCF, which is a true indicator of what capital is being invested, is also stable, and you have the same stability you see in multiple parameters of industrial production as well. Now, before I jump into the four mega trend pillars, I would also like to talk about other factors which are around us. One, we see this is a steady run. We see, as I was telling you, that we have come to a steady path. We see slight, I would say, decline in the announcements which the private sector has been doing for FY 2026, which essentially there is a slight dip of about 10-12%. You read different reports.
The people and the private companies who have responded to the survey done, there is a slight decline as I compare this with the same time last year. There is a silver lining that the inflation has come down to perhaps the lowest, 3.1%, which actually will have a cascading effect of more demand and more business. There are certain trade uncertainties which are around us. We are not insulated to it, and your company has sort of taken right steps as to how this should not impact us materially. Now, having said this, I would also like to speak to you on the mega trends, which are perhaps known to everybody. What we have tried to do here is, what are the new emerging trends in each of these buckets? Then how is government conducive and rolling out policies which are supporting this?
Which are the segments which are important and relevant for your company? At the end, we have tried to put forward as to, in our entire basket, what are the innovative offers which your company has got to actually leverage this evolving landscape? Now, just slowly going and talking about it on the energy transition, which is one of the most relevant, important vectors for us. We are talking about renewables. You know about this. We are speaking about green hydrogen. That was the National Green Hydrogen Mission, where government has committed for pumping in about INR 20,000 crore for five MMTPA production by 2030. The nuclear energy, there is another piece which is being talked about in this budget when we said that there has to be at least five small modular reactors to be commissioned sometime 2030- 2032. That is another important piece which we look up to.
Of course, we have a very strong pull which is coming now and which we see and trying to get into is the battery-based energy storage system. Government is again funding it. There is a VGF scheme which is getting rolled out. We have multiple offers around this. If we look at the first block, we have what we call as DERMS and GIS, which is item one and two. I'm sorry, these are a bit more technical, but these are the ones which are absolutely essential for grids like India to make it more robust, more resilient, and more transparent.
DERMS is nothing but an advanced distribution management system, and GIS is a geographical information system which is important, as I said before, for grids which are prevailing and working now to have these systems up so that the transparency and the load management becomes easier and more sustainable. This becomes more important because you have now bidirectional flows coming in, multiple generation and consumers and consumer landscape which are evolving. That is the reason why one and two becomes very important along with four, which is nothing but the microgrids, which is sort of, I would say, a set of software which allows and facilitates bidirectional movement of energy. Now, another way is another topic is, of course, AI and digitalization. We are talking about digital economy, and we are, by the way, I think we are a sizable transaction digitally happens in India.
We are roughly about 20-25%, maybe perhaps more. We are talking about the schemes which have been rolled out in terms of how do we push this, which is the linked incentive scheme, which is about INR 76,000 crore. We see a lot of groups in India actually thinking and investing on this, on both the OSAT facilities, also fabrication facilities. We are talking about the RDSS scheme which are there. Of course, as we speak, data centers, despite deep sea, actually has a positive outlook in India itself because just by sheer population and by the usage of data, which stands at about 25 GB per month, something which has grown by about five-seven times, and just continues to grow. Again, we have elements like EDMS. We are talking about eco-care and cybersecurity solutions which are around this.
Now, if I speak about sustainability and Viksit Bharat, I combine them both together just to save some time. We are talking about government is spending about INR 11,000 on the E-Drive scheme. We are talking about INR 15,000 in the green steel taxonomy and mission, which all supporting and aimed at India's net zero plan of 2070. And we have a lot of good things which we have to support this initiative over here. I do not know as to how many of you gentlemen and ladies could get a chance to come over in Greater Noida sometime earlier this year in February in ELECRAMA, where we have displayed all these solutions which are so-called state of the art and more futuristic in terms of RMASET and GMASET, which is nothing but a primary and secondary SS6P equipment which we have actually launched this year at ELECRAMA.
Of course, we have something which is called as DELMS. This is another futuristic solution from Schneider, which manages the dynamic energy and loads, especially in the fast charging and EV landscape. Viksit Bharat, I just want to tell you about the more and more indigenization efforts which we are putting. I'm sure you're aware about roughly INR 200 crore is what we stand committed to invest in our own factories in India in terms of maximizing capacities and trying to prepare ourselves as to how do we deliver and serve the nation in times to come. At the same time, trying to mitigate the uncertainties which are evolving because of few quality control orders and also the Omnibus Technical Regulation, which we are seeing in front of us.
We do have, as I mentioned, in terms of indigenization, we have two offers which I have mentioned in the last block, which is where is India for India and India for the globe is the products which we have used, which we will be manufacturing using the Schneider technologies in [Vadodara]. I would now like to go to slide five, which is nothing but it just showcases the established expertise which your company has got to get some significant wins. I come to slide five, which speaks about the strength which we keep on witnessing and delivering in the core segment, where you see in the power and grid, we have supplied after a gap to one of the central utilities in India. This is the transformer which we have supplied, which is fully digitalized.
When I say fully digitalized, it has got all the sensors and digitalization and the cloud visibility of data. I should add the utility which actually embraces technology and really was shown that how progressive they are. In energy and chemicals, again, we are trying to supply transformers, which we have supplied, and this goes on for long because utility has got, I mean, this oil and gas company has got major plants in India, and we are trying to see as to how do we keep on engaging with them in times to come. On the triple M segment, there is one end-to-end solution which we have supplied in one of the steel plants, which is very important and relevant to us, where both the gas insulated, the air insulated, and LED panels have been supplied by us.
If you go to slide six, which is another one, which is perhaps just showcases the shift which we are trying to drive in what we call as transactionalization business of the company, where we are trying to empower our partners who actually we have made for the last about five, six years and trying to see as to how can they represent us in front of the end user and the buyer with the same degree of technology and same degree of quality as what is expected out of Schneider. Just to give you an example, in power and grid, the Ring Main is what we have supplied to one of the licensed partners in Central India, supplied to one of the leading discoms in Western India. In the same, we have supplied to another grid company in the South.
At the end, we have where we have supplied the high-rated breaker, which we have actually, I would say, we launched about seven months ago, where we are trying to see as to how do we support the solar mission of the country using these core component partners which we have. This is one success which is there in the north. I would move to slide seven, which is another success in terms of seeing that how country is actually recognizing and appreciating the most advanced technological products which your company has been launching and aspiring to. The left one is one of the oil companies, government oil companies, actually in West India, where we have supplied one of the most advanced state-of-the-art air insulated switchboards, which are fitted with partial discharge sensors. First time being done.
Thanks to, again, the company which actually adopted this. We have another private player, a well-known private player, multidimensional, I would say, in Central India or in Western India, where we are actually supplying what we call as T500, which is perhaps one of the most advanced remote terminal units ever being made to power the solar plants, which they are putting up of 2 GW in Gujarat. I go to nothing is complete till the time we speak about what we have been doing on the new energy side. Of course, if you look at slide eight, is where we are trying to, we are already in the process of supplying in one of the U.K.-based people who actually are making cells in India.
Here also, if you see, we have supplied one of the most advanced AIS panels with all sensors, and we have actually proposed them in asset management, which is managed on the cloud. The second one is also important again here. We are trying again to sign up with some IPP who is a well-known IPP in North India and who has tons of, I would say, many gigawatts to their credit. They are venturing into a hybrid solar wind, and we have supplied them transformers again in their hybrid renewables plant, which was again fitted with their DAS sensors and everything. I also will tell you something which I'm very proud of, like you, is what your company has been doing in areas of ESG. Now, ESG, as you know, has been extremely important and very, very close to us.
We have been working on it for many years in terms of improvising ourselves, in terms of bettering our operations, in terms of keeping a cautious viewpoint on this piece. We engaged a couple of agencies which are very well known in this area in terms of telling you as to how the company has been faring. I'm so happy to share that in both the assessments which were done by ESG Risk and Crisis, we stood pretty strong. I don't want to rate as to where our peers were, but we were one of the highest in this ranking as well.
I actually will also now like to briefly touch upon slide number 11, which is nothing but the largest talks which we took at ELECRAMA, where we showcased our solutions which are actually around sustainability and how can we really impact our users, our consumers, and society at large with our sustainable products and solutions. Just to give you a sense, we launched a couple of ranges as you see in the pictures below. The GMASET on the left is the SS6P technology and highly digitalized. The GMASET on the right at the same time is Make in India, as I was mentioning some time ago, which we make in our Baroda plant. Again, very much modular, extremely easy to service, and fully digitalized.
Now, this entire ELECRAMA, which actually ran for about four and a half days because last half a day we wind up, actually witnessed about 10,000 + customer portfolios. We had 20 + thought leadership sessions in this talk. This was something which was a showcase of our theme, which is being sustainable at the core and at the heart. This was a fully sustainable booth which we had put up in that Greater Noida stall. I would also be very happy and proud to share, and I would like to go to slide number 12, which speaks about the keynote speeches which we did in Etex Forum representing your company in terms of actually telling the world as to how we are one of the leaders when it comes to what is going to be the future in the country and in the globe.
It is a platform which was called as Etex Next, which was where the industry policymakers and stakeholders all come together and decide and deliberate about how the landscape is evolving, what are the priorities, what should industry do in terms of manufacturing and aligning ourselves so that we are all aligned, society at a large, and what the users should do in terms of creating the India mission of delivering and becoming net zero by 2070. On the right side, again, I'm so proud to share with you that at the Indo-French Business Awards 2025, they hold a very intense competition trying to see as to which of the companies has launched the most innovative product or the service of the year.
I'm so happy to share that this product, which was an SS6P solution on the secondary side, RMASET, won the best award of the award for the most innovative product this year. I would request my colleague, Suparna, to tell you about some numbers as to how we have maintained a sustained growth and delivered what we call as impactful results. Over to you, Suparna.
Thank you, Udai. Good morning, everyone. A year has gone by, and again, we are ready with our annual numbers and a lot of good stories to tell. In terms of the overall growth and most importantly, balancing the business growth with hygiene in what we are doing and taking care of all the compliances and the requirements of the regulatory environment, which is of really, really prime importance.
Sustained growth and impactful results, this is what we begin with. Going to slide number 14, we have been seeing a sustained growth in orders, and our sales have considerably accelerated. At the orders level, we are 13.4% higher than last year, closing at INR 2,693 crore. Sales closed at INR 2,637 crore with 19.5% growth. Gross margins improved significantly at 26% at INR 1,037 crore. EBIT, again, a significant improvement by 35%, and we did INR 382 crore. At the PAT level, 55.8% growth, significant improvement over there with INR 268 crore. Free cash flow, we generated INR 245 crore of free cash flow, which is a huge improvement over last year, which is at 85% levels of improvement. Again, continuing with the increase in our sales, our revenue, our growth story, we clocked the highest revenue and profit, better profitability with focus strategies leading to consistency of profitability.
Cash efficiency, most important, we did extremely well this year in terms of the cash efficiency. Future readiness. When I say our future readiness, while we were extremely busy in generating this kind of growth in the revenues, we did not lose sight in the future readiness. That is how you are all aware that we did some CapEx investments because we analyzed all through the year what we need to do differently for business continuity and gaining market share. The strategic levers that we had, we accelerated the particular segments, the growth segments like the data centers, EV, semicon, and of course, the resilience segments we strengthened. More focus on services because services is basically an ongoing business after we have installed the equipment and promote partners.
Distributors and panel builders, we are growing our relationship with them so that they help us in getting more business. Page 15, building plant capacity and fueling progress is what we are looking ahead for. As I mentioned, this year was the time when we sat and looked into the future and needed to see what we need to do differently so that we are able to retain our market share, grow our market share, and also be in tune with what the ecosystem, the requirements of the economy are. We are pleased to announce two investments for two of our plants, the Vadodara plant and the Kolkata plant. For Vadodara plant, we are currently manufacturing, the existing capacity is 8,000 panels, and we are going, and which is almost near utilization. In fact, both the plants at 90%.
We will be adding another 6,000 panels capacity, and with this, we'll be at 14,000 panels. We are thinking that, I mean, as of now, we are expecting that we'll be able to add this in the year 2026-2027. The investment for the Vadodara plant is about INR 100 crore. Happy to share that the mode of financing will be mainly internal accruals. Maybe because of the timing of the cash out, we might resort to some kind of borrowing, but with the extremely good cash situation in the organization, we are happy to say that mostly we'll be funding it through the internal accruals. The rationale, as I mentioned, is to meet the market growth and growth ambition. Now, coming to the Kolkata plant, we have a capacity of 5,000 breakers currently, and which is also at 90% level of utilization. We will be adding another 40,000.
After this, our capacity will become nine times higher. We'll be having a capacity of 45,000. We want to explore markets within and outside India for this. Again, this also we expect to complete by 2026-2027. INR 90 crore approximately investment for this project. Again, similar mode of financing and the similar rationale that we have. Going on to page number 17, wanted to share the absolute numbers in terms of the growth in our orders. For the 12-month period, our orders grew at 13.4% from INR 2,375 crore to INR 2,693 crore. Only for the quarter four level, we were at INR 686 last year, and we are currently at INR 762 crore, which is a 11% increase. We are maintaining a healthy backlog of INR 1,253 crore. Now, coming to the sales numbers, overall improvement in sales by 19.5%. From 2,207, we grew to 2,637.
Talking of standalone Q4 numbers, we were at INR 472 last year, and we closed at INR 587, which is 24.4% growth. Now, coming to the financials of the year, 19.5% increase in the sales and overall PAT increase at 55% has a great story to tell. Coming now to the P&L line item wise, good improvement in our gross margins. You can see the improvement in gross margins by about two percentage points. This has actually come from the better pricing that we are taking from the market, better mix of the basket of products and solutions or categories that we offer, and overall getting some efficiencies with respect to the metal prices, etc. Good improvement in our material costs and overall gross margins.
Employee costs have increased by 12.3%, sorry, 11.2%, pretty much in tune with the annual inflation or the salary increase that we give. A small part of it has come from the variable expenses related to the additional sales. Other expenses, a little higher growth at 33.1%. Overall, at the EBITDA level, we are growing by 33.5%, which is 1.6 points over last year. Depreciation, again, resultant of the CapEx investments that we are doing. These are not the major CapEx, or you might be remembering the Kolkata plant CapEx, which we announced, but depreciation not yet flowing in. Talking of the finance costs, we reduced the finance costs by 28.5% because of some internal accruals, which we have taken a reverse in, and which has come into exceptional items.
This is probably, I will say, because of the better tax management that we did within the entity and saved a good amount in terms of interest expenses. Taxes, of course, last year was the first year that we started paying the taxes, and this year we paid tax on the full year income. Of course, that has at an overall level at PAT, we have given an increase of 55.8%. In terms of the points change, we have grown by 2.4 points. Good year, I will say, and a lot of improvement in terms of the cash efficiencies, which has actually given us some benefit in ETL provisioning and overall very good hygiene in our numbers.
Now, coming to the standalone results for quarter four, good growth in sales, but there was a little tweaking in this current quarter with respect to the transactional business, which slightly lowered. We are seeing a dip in our gross margin by 1.9 points. Employee cost increased by about 19.4%, other expenses by 15.3%. Not going into all the other lines specifically, let's come to PAT because quarter four of last year had minimum expenses in terms of tax. This year, at the total level, we did extremely well because quarter four versus quarter four, we did extremely well in terms of the improvement in our PAT. Good results. This quarter four has flown into the 12-month results. Overall, I'm sure we did beyond expectations. Thank you very much. Now over to Harshit and his team.
Ma'am, should we begin with the question and answer session?
Yes, yes, we can.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking your questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ashish Kumar from Ampersand Capital Investment Advisors. Please go ahead.
Yeah, thanks for taking my question. My first question is our order backlog is up only 2% on YoY basis. If you can give some comments on that and how we should look at it. My second question is based on our business and product mix going forward, how we should look at the margin trajectory for next year. Thank you.
I'll answer your question and request Udai to add to this. While different categories of businesses that we have, systems, transactional services, etc., our transaction is growing. With the kind of improvement in the transaction business, which is again contributing better in terms of profit, we do not need a, what you call, a backlog really for this because these orders are quickly executed. If we say that our backlog is lower in terms of growth, it really does not mean that we are not very optimistic about the sales going forward. That's where I can say transactional business is gaining a lot of momentum. Udai, if you might like to add to this.
Thank you, Suparna. Thank you, Ashish, for your observation. In fact, we grew in terms of orders. We have actually grown by about 13.5% in a year. And if you really look at, we have actually generated a positive leverage in terms of what we booked and what we sold. Now, 2% is, of course, a single-digit number, but because of a few reasons. One is what Suparna said. And also to add, it also depends on how much did we book in Q4 and how much did we sell in Q4. And as you know, Q4 in India, everyone seems to be, all of us seem to be asking for deliveries. And normally, Q4 is a large. So there's a reason, but other than that, there's no greater reason.
We don't see that there's going to be sort of a dip or this would like to continue or something because it's a combination of multiple orders which we book under the various classes of solutions and products which we sell.
Thanks for that. Any comment on the margins?
See, we are aiming, Mr. Ashish, to actually continue the momentum, and we are not losing focus in terms of the bottom lines. There is a reason why we are continuously working on two things. One, how do we differentiate ourselves differently with our peers? Two, what do we do which can give us slightly better margin than the average? There is a reason we would continue to focus on, I would not be in a position to tell you some number exactly, but we are continuing to focus the way we have been doing for the last few years.
Thank you, and best of luck.
Thanks.
Thank you very much. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Aditya Deorah from Divisha Investments. Please go ahead.
Good morning, Udai sir and Suparna ma'am. I have a couple of queries and one suggestion. Over the last three months, we have had three announcements on four capacity additions related to the transformer business, RMU, breakers, and panels. Now, in all these announcements, we have mentioned that the existing capacity is near 90%. For the current financial year, since the Kolkata factory is also not yet operational, how would we augment the resources for revenue growth?
Thank you, Mr. Aditya, and very good morning. When we say 90%, and you know in our plants which are essentially customized equipment, this is sort of installed capacity. When I say installed capacity, we can always perhaps leverage this infrastructure to derive more at the needs, which means that if in certain times and certain months we see some peaking happening, we can perhaps have multiple avenues in terms of how do we extract more output of the installed capacity. For example, if I say x, I can derive 1.2x or maybe 1.25x as the need is, depending on engaging more people or running more shifts. That is not going to be hampering if I would say, I mean, we have no limitation of upside because of 90% utilization if there is a question which you ask.
Perfect, perfect. Now, my second query is related to the breakers capacity which we are setting up in a plant in Kolkata. So would it be in the Prospace plant in [Dankuni], or would it be in our existing plant in [Salt Lake]?
It will be in the new one, Mr. Aditya.
Okay. So that means that the new one has additional greenfield area for setting up maybe further plants beyond this one also?
Yes, it has.
Perfect, perfect. Just one suggestion. I understand that Schneider has this Schneider One philosophy in India where all the entities go to the market as Schneider as one entity. A lot of press releases are posted on the Schneider India website, and it is not communicated to the stock exchange. We as investors, as shareholders, do not get the information. Something like maybe the Tata Power SF6 press release or something related to the Noida International Airport press release, we do not have access to that information. If you can just disclose it to the stock exchange, even if you do not put in the order or the quantity, that would be very beneficial to the investors. Thank you.
Thanks, Aditi, for this feedback.
Thank you very much. The next question is from the line of Viraj Mithani from Jupiter Financial. Please go ahead.
Hello. Hello.
Yes, sir, you're audible.
Okay. Okay. Congratulations on outstanding numbers. My question is regarding your Kolkata facility. You're adding nine times. So what do you reckon of confidence to add capacity nine times your size, right? If you can give more color on that with breakers and all.
See, what we are trying to do is two things. One, we are trying to have a line of current breakers and perhaps also thinking of putting the new generation breakers in Kolkata. This is what we intend to do. This would be in coming times to be products which will be made for India and maybe perhaps sold to other units of Schneider outside of this plant in Kolkata.
[audio distortion] Is there more margin equity or how are these products? Can you give more color on that?
Can you repeat it? I'm sorry, I missed you.
Are these products more margin equity since we're adding capacity nine times? Can you give more color on that? It would be helpful. What would be the top line or what kind of business we expect from this additional capacity? I know you don't give numbers, but some ballpark figures would be interesting.
It will be difficult, sir, at this point in time, but we do have plants in place with various ranges of breakers which we are going to manufacture in a standard way. Very difficult at this point in time to give you a ballpark number as well. We'll keep on sharing as we progress on this.
Okay. My next question is about how do you see the margin trajectory going forward? Some color on that would be helpful. Since now we are in a good margin trajectory.
Overall, optimization at the margin level is a very important thing that we all are looking forward for because every year we see our margins have improved unless and until there is a situation which is beyond our control. Also at the operational level, we keep on adding to our margins, go on for orders with better margins. We are quite selective about orders. We do not want to dilute our margins. Also at the same time, promote the high margin giving categories like transactional services, etc. This overall, as a combined strategy, will not only help us retain the margins but also grow the margins. That is the thought process for the margin from my side.
Okay, okay. That's it from my side. Thank you and all the best.
Thank you.
Thank you very much. The next question is from the line of Neil Ostwal from Bajaj Finserv Asset Management. Please go ahead.
Hi sir. Congratulations on a wonderful set of numbers. Just one bookkeeping question. The order info number for FY 2024 and Q4 FY 2024 seem to be different in the current presentation versus what was mentioned last year. Can you help us reconcile the same?
We did not include the intergroup orders. Going forward, we'll be including that.
Okay. Understood. Thank you so much.
Thank you very much. The next question is from the line of [Hereen Wade] from Alkeon Capital Management. Please go ahead.
Yeah, hi. Thanks for taking my questions and congratulations on very strong numbers. My question is that how much should this INR 200 crore of CapEx, how much incremental turnover can be achieved with this INR 200 crore of incremental CapEx? That's my first question. The second is that you spoke about transactional services, which I would presume are more short-cycle orders. In which end user sectors are these transactional services most applicable? These are my two questions.
I can take the second one first, [Yandari], and then I think Suparna can tell you about the first. These are two, just to clarify, these are two separate aspects which we speak about your company. One is essentially the transactional piece of business, which is where, to explain in very layman terms, we make the entire equipment or we make the part and give it to somebody to do the rest. When we adopt a later model, we call that as transaction. That's one. The services are just pure service nature on the either of installed, which is of our own make or any other make which might exist at any site. I think you did mention about that these are short-cycle. Yeah, these are short-cycle and so are the other normal businesses as well.
It depends on the order size because we typically have a defined manufacturing time depending on the equipment in consideration. Depending on the value and the way it's being executed, the cycle times of project execution is varying. That's one. Two, I think you did mention about, I think, which sectors or segments do we do this? We do this all across. When I speak about transaction, it is we are not limiting that our partner would not operate or should only operate in sector one, two, three. It is actually available to be they are expected to be penetrating and be reaching there at each and every sector or segment. They are sort of sector or segment agnostic.
Now, I would actually request Suparna to actually give you a sense if she can on the delta more revenues, which you have been asking about, INR 201 crore of investment we should plan to do. Yes, Suparna.
Finally, we only can't share about the numbers, the additional or incremental revenues. We are looking, see, while we are doing the investment, there is certainly a need from the market side as well as our own need for sustaining our business. That would definitely add to the incremental revenues. In our case, what we have seen, and I will be getting this approved, we see a staggered growth. Especially if I talk of the Kolkata capacity, we will be doing not only for India, even we will try to sell outside India. Overall, put together, we have seen a good fraction of orders which we want to execute. It will be a staggered increase. It will be a profitable increase at least at the gross margin level. Maybe some impact of depreciation in the year time before we reach that critical mark.
Overall, we are very positive and optimistic for the revenue to grow for these lines.
Okay. Thank you so much. All the best.
Thank you.
Thank you very much. The next question is from the line of Manish Goyal from Thinqwise Wealth Managers LLP. Please go ahead.
Yeah. Thank you so much. First of all, congratulations to the entire management on very strong cash flows this year and last year as well. Probably we've done INR 500 crore of cash flow from the operations, which is quite commendable. So congratulations on that. I have a few questions. First, on the CapEx work we have probably done in the last two years of nearly INR 120 crore, and the balance sheet shows capital work in progress of INR 86 crore. Is it pertaining to our new facility at Kolkata where we are putting up a back-end minitrucker product? What is the status? When do we expect that facility to start? Probably see a ramp-up going forward. That is the first question. Second question, ma'am, on the other expenses, which has jumped 33%.
We are seeing this happening again in the last two years from 9.3% of sales to almost 12.2% of the sales. This year, it seems that it has gone up despite some drive-backs. Maybe if you can clarify on that aspect. Also, related question, the other income has gone up from INR 9 crore to INR 25 crore. Probably there is some reversal of impairment of trade receivables. Are there any one-time items in these other expenses? I have a couple of more questions, so I'll follow it up as we go ahead. Thank you. Thank you so much.
Okay. Talking of the seed it, yes, it's mainly from the Kolkata plant. Maybe over there, you can add when we will start production on this.
Yes, Suparna. So sir, we are actually, this new facility has come up, and we have, anyway, we had two plans to do here. One was to set up new equipment to produce interrupters. We have reached and commissioned 50% of what was planned. The rest was movement and installing at the new plant, which we are sort of, will be doing in, say, a quarter or two because we do not want to disturb the current production and the peaking requirement which exist and as we see today. It is getting staggered. If the answer is when, maybe sometime by end of 2025 or maybe early 2026 is where we see that we are moving into one plant and trying to put up most of this equipment better.
To clarify, you are saying that phase one has started at the new facility?
Yeah, it's about to start, sir. It's about because we have a very rigorous practice of actually testing it out before we start commercializing it. That's almost about to happen. We are in the last stages of validating what we have produced.
Okay. How much CapEx would we have?
Sorry to interrupt. Can you please rejoin the queue for a follow-up?
My question is not yet answered on other expense also.
Okay, sir.
Yeah. Sorry for that. Thank you.
Sir, you can proceed with your question.
Yeah. Yeah, ma'am. My question was on other expense, which has jumped 33%. There have been some drive-backs, and other income has also increased. If you can please clarify on that. Thank you.
Suparna, would you like to take that question, please?
Yeah, yes, sorry. I started speaking on mute. Sorry. Okay. I was talking of the other expenses increase. While we had to see other expenses, there are a lot of line items which are directly correlated with the increase in sales. With this [90], 20% increase in sales, there are a good amount of expenses which have grown in proportion to the sales. However, saying that, we as FEIL, because we have just stabilized as an organization, our revenues are growing, profits are growing, we see good traction in our orders, and we see a good future ahead. We have also started our branding activities. We participated in ELECRAMA with our product launches, etc. With all that, we have some good amount of marketing and branding expenses which have come. As I said, now we have the strength to invest for the future.
When I say it's not about CapEx, it's also on the operating expenses where we are building internal capability on many fronts. Expenses of that nature have increased. All put together, of course, the sales increase has contributed to a fair large extent. Also, our thought process and philosophy within the organization of how to keep the market, I mean, keep and as well as grow market share, build internal capability, training, branding, marketing, etc. All that has made us spend about this kind of an increase. The assurance that I want to give is that each and every rupee of expense is monitored and a good part is gone before we give internal approvals for the spending.
Ma'am, on other income, is there any one-time element? Can you please share the breakup for revenue ordered into an order? Thank you, ma'am. I'll come back to that.
I'll first talk of the other income. We could write back a few tables, which were very old ones. We took our vendor confirmations, and we could probably write back those tables. That was a one-time exercise. It never happened, shouldn't happen again. We also received some interest on income tax refund.
Okay. And ma'am, revenue breakup and order into an order breakup. Thank you.
Should we take that later on?
Sure. Thank you.
Thank you very much. The next question is from the line of Saurabh Shah from AUM Advisors. Please go ahead.
Good morning, sir. Sir, question on the new capacity enhancements. The road line Kolkata, in how much time do you expect these plants to achieve like 50%-60% utilization once they're set up in 2027?
Saurabh, there are multiple things which we plan to do in Vadodara. When I say multiple, I mean more than one platform, which we are trying to do here. It will actually kickstart now, and it has got different completion time frames. We expect anywhere from, say, one year to, say, two years is where we would be bringing up the capacity that is planned of these different lines and the different platforms that the managers need.
Calcutta would be similar or Kolkata is giving her breakers or that might be faster?
Same. Saurabh, maybe here and there a few months. Otherwise, even there, there are certain breakers which may come up before. There are certain breakers which may take some time depending on the platform, as I said, again, even there. It is all staggered. We are trying to come up in the stages, and we are trying to see as to how do we keep on serving the market without losing continuity.
Okay. Another question was on the sales.
Sorry to interrupt, but can you please rejoin for a follow-up?
It's for the same question. I just have one question about the capacity increases.
Okay, sir.
Sorry for that. Just a question about group sales. What percentage of the sales will be to the group companies, and do you expect that to change in the next two, three years?
Suparna, this is for you. If you can perhaps answer.
Change. There's no change which we are expecting. It would be in the similar range as of now.
Which is how much?
Yes, 15% ± 3%, just so you know.
It's about 18% of the group sales that we do, of our total sales.
Okay. Great. Thank you. That's everything.
Thank you very much. The next question is from the line of Ashish Ajit Golechha from Bee Ventures LLP. Please go ahead.
Yes. Hi, sir. Good morning. Congratulations for a very good set of numbers. My first question was with respect to differentiation in ELECRAMA. Also, you highlighted and you said that you are focusing on various products with respect to competitors. Currently, Schneider management is focusing on their fractional sales. You could throw some light on that first question.
Sir, I'm sorry. I could not get your question. What did you say on ELECRAMA?
Sir, with respect to differentiation of the products, you said that the Schneider management is currently focusing on various products with respect to the competitors where the fraction is there. If you could throw some light where the current focus is there and how are we going about compared with respect to the competition from ABB and Hitachi and other competitors of Schneider in the same product team where the fraction of the management is going currently.
Yeah, I cannot comment upon our friends, but what I can perhaps speak about is what we are trying to do in terms of really innovating and putting our R&D efforts by stepping into our end user's shoes and trying to see as to what is that element of his day-to-day operation which he's pained or is actually on top of his mind, which he can resolve either by a product, either by a solution, or by a software. I would say our uniqueness is that with every passing time, we keep on enhancing more and more about what we can resolve when to an end user who's actually using our product. For example, if you have a blind product, you get nothing out of it. I visualize it. You start seeing what is inside it. I put a software.
You start not only seeing what is inside it, but you also start realizing and knowing that what is going to be the future-looking light for that product. It is something which we are trying to have kept you at the center, trying to see as to what ways can we benefit and support you in your own operation and scheme of things. It will be unfair on my part to comment upon ABB and Hitachi. This is what Schneider has been doing.
Sir, another question. Out of 100%, what percentage of focus is now basically going towards data center with respect to the revenue part?
It's about 15% ± 3%.
Thank you, sir. Wishing you all the best, sir.
Thank you.
Thank you very much, ladies and gentlemen. This was the last question. I now hand the conference over to Harshit Kapadia for closing comment. Please go ahead, sir.
Thank you, [Saicha]. We would like to thank the management of Schneider Electric Infrastructure for giving us an opportunity to hold this call. We also thank all investors and analysts for joining us on this call. Any closing remarks otherwise, sir?
Thank you, Harshit. I'm sorry we overstepped by about three minutes. I would just like to thank all the investors in patronizing us and keeping safe in the company and hope to have a very great day. Thank you so much.
Thank you very much. On behalf of Elara Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your line.