Schneider Electric Infrastructure Limited (NSE: SCHNEIDER) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Udai Singh — Managing Director and CEO
Suparna Bhattacharyya — Chief Financial Officer
Analysts:
Harshit Kapadia — Analyst
Sanjaya Satapathy — Analyst
Rucheeta Kadge — Analyst
Aditya Deorah — Analyst
Vinod Chari — Analyst
Viraj Mithani — Analyst
Manish Goyal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Snyder Electric Infrastructure Limited Q3 FY ’25 Earnings Conference Call, hosted by Elara Securities India Private 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 after the presentation concludes. Should you read assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Harshit Kapadia from Elara Securities. Thank you and over to you, sir.
Harshit Kapadia — Analyst
Hi, good evening. Thank you,. Good evening, everyone. On behalf of Elara Securities, we welcome you all for the Q3 FY ’25 and Nine-Month FY ’25 conference call of Snyder Electric Infrastructure Limited. I take this opportunity to welcome the management of Snyder Electric Infrastructure represented by Mr Udhai Singh, Managing Director and CEO; Mr, 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 session.
I’ll now hand over the call to Mr for his opening remarks. Over to you, sir.
Udai Singh — Managing Director and CEO
Thank you, Harshit, and good evening, everybody, and thank you so much for joining in this afternoon and I would like to — I’m sure you have been able to go through whatever we uploaded, the results of the quarter which went by. And I would like to take you through that just to summarize as to how the quarter has been. And just to reiterate, which I have been doing for a few quarters till the time I have been of buying this share as to what your company is, you know, we have a vision and a mission which is very clear in our minds vision of leading the new digitalized energy world by offering our customers and partners the most innovative connected products and solutions, which are ready for the then-emerging power distribution elevated expectations.
Now we also have a vision of having a balanced business models, which delivers superior quality and efficient supply-chain, which keeps the growth and profitability resilient and sustainable. And the mission, of course to be a digital partner for sustainability and efficiency and we believe life is on everywhere for everyone and at every moment. At this point in time, I would like to take you to the slide number where we have been talking about the market outlook. We just went through the budget which was delivered and stated by Honorable Finance Minister.
If you look at this, there are a lot of positives as I would read it if you go deeper by the line as to what’s there for your company. And you know, when I talk about numbers, we talk about a commitment of INR11.2 lakh crores in capital expenditure. We expect that the GDP growth will stay somewhat what it was about 6.3% to 6.8 and the good news is that we also are trying to curtail our fiscal deficit to roughly about 4.44%. And the budget, if I may rate it overall is actually is fueled by reforms with a very guiding spread of how do we be more inclusive and we drive towards being said Bharat in times to come.
Now what we have also done, if you see, we have actually tried to break-down up into five basic fundamental blocks. And these are relevant to your company. And if you see power and grid and I will not take much time because you may be aware about this, if you speak about par and grid, there is — the Ministry of Power actually has you know we are trying to — they are trying to put up more-and-more effort in to solar. As of last month, we are sitting about, if I’m not wrong, about close to 98 gigawatts of solar being done. We want to take it to 300 plus as per the ambition of the nation and the good news and differentiating news is also the thought which government has put behind the nuclear.
Now if you see we now have a very clear plan about making a nuclear nation of having about 100 gigawatts of nuclear by 2047 and it’s not only that is also setting up another incentive or R&D allocation for developing the modular reactors and developing the micro reactors. Now this as and when it comes, a positive steps taken by the government will actually in fact lead to a lot of positivity around companies like us, including — including us, of course. You know, the other programs which are like INR600 crores being elogated for the green hydrogen under the National Hydrogen mission and also the green corridor is something which also will fool and it will be more conducive for actually solar development in the nation.
Now there are certain focus areas which we have been focusing, which are pretty futuristic in nature and that’s something which India can’t ignore and should not ignore, I would say, is around the energy storage systems. Now this is going to be the future because that’s what’s something which will be the call of the day as and when we have more-and-more renewables coming into play and when we talk about usage at micro grids, this is something which is one area which is something which we are focusing and we are good at it.
Coming at transport, just to tell you, we have one day Bhara chains, we have Namo chains, we have lot of urban rail network which has been put up. In fact, we added 62 trains in ’24 and we have now at one is six trains which are running. And you know, you would be proud to know that most of them or rather all of them are being powered and managed by the locos which we make in our company.
Another good thing, which actually is a positive is about Uran. Now if you see, we are talking about in next 10 years and I’m sure you guys are aware, the amount of air traffic, the way it has been going up, go to any flight at any point in time, fly any sector is a 100% pull. So we are trying to see as to the country in which it is that in next 10 years, we need to have an infrastructure which can cattle to about INR4 crores passengers traveling. That’s the number which we are talking, which would also mean maybe enhancing the fleet which we have a few X times and also talking about 120 new destinations, which will be rolled up as years go by. And all this investment do good for us because we are good in airport, good in airport, good in driving sustainability at airports by our softwares and other solutions which we have around.
Now one important thing which I would like to call-out is, is the development of the and because the new ships will be built, the old ships will be repaired, regenerated and government has this time also gone in terms of paving the duties on the raw-material which are required for these work. And this will perhaps propel the shipbuilding and ship rectification and regimeration activities which are required for movement and the strength which we will have in maritime area.
Now if you talk about semicon data centers, there is no there’s a general knowledge that we are sitting at a cusp of data center which would be greatly pool in India because of two reasons, one, the invent of AI and two, the extensive usage of phones and the cost of data which actually is available to Indian consumers. Now there are people, they are government, they are hyperscalers, they are colos who are putting a facilities at like speed and we are there to support and make these data centers run with our solutions and equipment.
Now one good thing which has happened is if you notice is typically in the areas of the custom duty again. We are talking about clean tech manufacturing. We are talking about the incentive schemes being rolled-out to you know, to manufacturing of mobiles. And now first time India is talking about infusing INR500 crores into AI vision, which means that it all drives towards inclusive growth and that is the area where we can make a — make an impact.
Now if you speak about infrastructure, good if you — I’m sure you would have noticed there is one urban Challenge fund, which has been announced by government I’m talking in this budget, which talks about INR1 lakh crore being put in trying to make cities as growth hubs. Now what does it mean? This means that we will actually make cities as a growth hub for India and exports. We need cities which are better equip for infrastructure, be it electricity, be it urban development in terms of the sanitation or the water resources. And the point which I was trying to make is when these amounts of money are being pushed in and pumped in by government, this means a lot because we can really do great things.
We have done jobs in-the-water distribution where we are managing large-scale projects which are towards water fenitation, whether you Call-IT desalination or any other treatment like that. And last but not the least is the auto and the e-mobility sector. You know the way government has been treating the way rightfully government has been driving about penetration of e-mobility where we expect to have 30% by year 2030 and penetration, which goes down by 45% from the base year is something which we have been working on.
Now this means two things. This means that EV manufacturing will pick-up pace. And more importantly, the cell manufacturing and battery manufacturing will also be looked into very deeply. And not belittling the recyclers in the battery space, which also will get flourished. Now the incentive, which you may clearly have read and understood is on the customs duty, which has been either weighed or reduced drastically actually all triggers this growth. And we at Schneider are fully geared up in terms of helping our customers who are in areas of either cell manufacturing or EV setup or charging infrastructure, we are one of those people who can effectively deliver solutions which make a lot of sense and lot of appreciation by the customers who are going to use it.
I’ll go to the next slide, which happens to be slide number slide number 6, where I probably would like to share few of our wins and what we have done like we used to do before is trying to see as to how we have been contributing in India’s net zero ambition. And I’m sure you are aware this is the discussions and which we must-have had in the past is we are the one of the most sustainable companies around the world. What it means, it means that we are driving those technologies which are making environment better by reducing the potent gases which are around. And one of the gas, which is very clearly, I would not use the term misuse but is used is FF6.
We have made equipment where we have actually removed this gas and we have actually replaced in Pure Air. This is a very futuristic technology, which we have been talking about in India with the policyholders, the users and other effective stakeholders. And happy to share that we actually are now selling these pilots at one of the discounts which we have in India at two locations. So this is something which we have done, the world is changing and we are helping it to change.
The other is, if you see in the solar space is a specially inverted beauty transformers where we are helping one of our key accounts or rather a solar farm developer in his 150 megawatt plant which he is trying to make in India.
The third is, you know, I don’t want to name it, but the first steel, green steel manufacturer, I’m sure you know about it, we are helping them to make green steel by giving a green transformer to them. When I say green transformer is a transformer, which is actually equipped with all-digital sensors and making prediction and preventing maintenance easy in a way making the transformer more efficient. So two things — two first. The first on the slide is the SS VI secondary distribution. And the second is the third one where we actually are trying to help one of the steel producers in India of repute who is actually into making green steel to making green steel in greener.
I would like to turn it to the other point where we talk about our wins in the districtal area. Again, we have actually had three tiles. The first tile is in energy and chemical space where we have provided transformers, which are again equipped with two layers of sensors and a lot and lot of analytics around it is also actually embedded in these solutions, which we have given to one of the, I would say, government of Enterprise. The second is a power grid space where we actually have been electrifying one of the leading transmissions in East India, where we have provided state-of-the-art automation systems, which also comes along with an opportunities of having recurring business from this utility. And the last is where we are trying to work along with a very established in a carbon black manufacturer in terms of giving our primary distribution in AIS again and fully sensitized.
If I turn page and I go to page number eight, as we are talking about while we do this till, we do sustainable, we are not leaving behind the core, core stays core and therefore, we actually again three ties for you, one on the power and grid, the other one, which is nothing but metal mines and minerals and energy and chemicals again.
In power and grid, we have actually made intrusive entries at East India where we have provided e-buildings of state-of-the-art and also supplied equipment, which are all our equipment if you read GIS and something which is insulated GIS and panels and the regular GIS and substations. If I speak about and this is one area where we have been working with all metal manufacturers in terms of waste recovery — waste-heat recovery scheme and we have given lots and lots of AIF and transformers to one project with the repeat orders through either directly or through different contractors in India.
Energy and chemicals, the last ite I would like to speak about and share with cloud is, you know, in this space, again, we are trying to give the power transformers and AIS in one of the largest petrochemical industry in East India. And here we have been leveraging our one full SE solutions along with customer engagement and interaction, which we take pride of.
Turning to the not but the release, Page nine is something which we are talking about the new emerging segments because which are very relevant and pertinent because they may carve-out the future for us, especially data centers, where we have supplied the same engagement which we have been doing repeatedly with one of the colo developers where we are electrifying the one of the largest centers which they have developed in India as well as when we talk about semiconductors, we are actually also supplying in continuation with what we did last year in the same-location power transformers with ET. And we are here, I would like to have a special call-out. This is one such plant being first put in India for semiconductor where we have actually given most of the electrical distribution from Schneider. So this is one good thing which I am proud of and so I’m sure you will be.
Now I’m turning it to page 10 and page 10 actually just gives you a sense as to what’s happening inside and which is leading to all this. You know, we initiated — I’m sure you are aware about the assessment which we got done from ESG and is special focus which your company has been giving on ESG and we have installed a tool, which is we call as a recording tool for PRSR. And this eliminates and facilitates multiple things. One, it gives you real-time information. Second, it gives you a — it removes any error which human intervention can make. Third, it can — it uses and the backbone is our own software, which is making it happen. And fourth and the last is that it gives lot of and it actually tells you as to how do you course correct and where are you lacking. This is one.
If I go to quarter and two, which is nothing but X ROA, this is nothing but is an extended reality of asset advisor is a demonstration, which we have actually done. It’s again from the EcoStructure platform where we have demonstrated this to one of those sites, which are in discom in East India, where we actually have been engaged in past in supplying multiple equipment and also renovating and modernizing the substation where we have demonstrated this — this is a digital solution which leverages the extended reality, which leads to an increase in safety and operational efficiency of the system and it has been deeply appreciated by this agency.
Now other two things are the new offers, which I would like to take about two minutes in explaining each one of them. One offer is what we call is P7 series of merging units. Now this is the Power Logic series, which actually enables a lot of simplicity and it is actually driving towards not only simplification, but more efficient communication within the master and sleeve. Now what it does is it eliminates running of multiple control wires between two devices and it actually assimilates everything and just communicates on a single fiber cable. This is something which is again futuristic. It’s something which is required for industry in power and in any industry for that matter and this supposed to be coming future in times.
And the last, if you notice, is something which is again a very progressive step which your company has taken. And when we speak about medium voltage, I think one element, which is one of the critical elements is how do we see the safety and longivity of the equipment, which is being done by measuring the partial discharge. I’m sorry by using some very technical terms, but this is something which is actually very critical to measure the health of the asset which you have in the substation. Now these are the centralization which happens and this helps via our Ego Care to actually make — can be leveraged by customers as they move on. So this is another element which I wanted to share.
And I go back on the next slide, which happens to be Slide 11, where we are thinking and of enhancing our capacity in the transformer line at below the — which means that we are typically trying to take this capacity from 5,500 NDA for transformers to about 7,000 and investing some money about INR14 crores into this.
Now I come to an end and I would request my colleague, Superna sitting besides me to take you through the financial performance of nine months and the quarter which went by. Over to you.
Suparna Bhattacharyya — Chief Financial Officer
Thank you that was brilliant explanation of what the market has in-store for us and the good work that we have done and for our investor community. And of course, the support which is coming from the investor community is tremendous. Thank you and pleased to share the financial performance for nine months and the quarter, which ended on 31st December 2024.
So coming to Slide number 13, we have the nine-month performance. We are happy to share that we have consistent growth in orders and sales. Orders are up by 13.8% over prior-period — corresponding period of last year. We are at INR1,546 crores. Sales has seen a significant rise at 18.2%. We closed nine months at INR2,050 crores. Gross margins 26.4% rise at INR783.3 crores, EBIT, a great rise by of 34.5% at INR277.1 crores. At the PAT level, we have increased by 26.4% at INR213.3 crores and we have a robust backlog of INR1,086 crores, which definitely would ensure subsequent — subsequent business in the coming quarters. So highest-ever sales in a quarter, that’s how we ended this quarter. A better EBIT and PAT, better order intake and product mix, material productivity, volume leverage, a better sales mix because we have a good growth in the transactional and services pieces that has given us better margins.
The strategic lever that we are looking-forward are to accelerate segments, leverage emerging segments and strengthen resilient segments as Uday already talked of; more stress on services, focus on modernization, digital services and remote asset monitoring as we have a growing installed-base. So that helps us in generating more service revenue. And to promote partners are the distributors and the panel builders with whom we work very closely.
Coming to Slide number 14, this depicts the order intake for the nine months period and the quarter which ended on 31st December. So we are at 13.8% growth with respect to the order intake. And for Q3 especially, the orders — order growth is at 5.3%, which is a slight slowdown because this is a little lean quarter with respect to the orders. We have grown — we are — we closed the order intake for December at INR442 crores. Good. Overall a good momentum across all segments and order backlog, as we mentioned, it is INR1,086 crores, which is up by 7.3%.
Going to the next slide, page number 15, talking of the sales, we already said that at the nine months level, we have had an 18.2% increase closing the sales at INR2,050 crores and we have the highest-ever quarter in with respect to sales, we closed our last quarter at INR857 crores. So this has been the highest and thanks for everybody for your support. And actually that keeps us going to do more-and-more for you all. So again, strong sales growth in transactional and services and this have — this has also contributed to the better margins.
Coming to Slide number 16, which is the Nine-Month P&L, our sales growth of 18.2% closed at INR2,015 crores and we had our gross margin up by 28.3%. EBITDA grew by 38%, EBIT by 39.8%. Profit before exceptional items was at 48.2% and then the PBT growth is at 61.4%. Overall, at the PAT level, we have grown by 26.4%, the obvious reason being that we had just started entering into profits during the corresponding period of last year, less taxes, but then this year was a full-fledged load of the corporate taxes on our P&L. So again, margin expansion has come due to better product mix, order pricing, volume leverage and operational efficiency. And at the exceptional item level, we have a reversed and interest provision, which I’ll talk of in the next slide.
Going on to the next slide, page number 17, we have our P&L for quarter three. Again, highest-ever sales number, INR857 crores, which is a 15.2% increase over last year. Gross margin 25.7% increase, EBITDA 31.6%, EBIT at 32.3%. And talking of the exceptional items, we actually have an income here of 17.64 for the 0.6 for the current quarter, which is basically the reversal of interest provision relating to past direct tax litigations upon application made under the Vivaste scheme. So — and this has been favorably accepted by the tax authorities and we have agreed to pay the taxes of with a 10% increase as per — as a part of the scheme. And while we saved significantly on the interest which we had accrued in the — in-quarter four of last financial year.
So that’s all from our side and thanks again for your overwhelming support over the last one and a half year that me and Mr Singh have taken over the reins of the organization. We look-forward for your questions.
Questions and Answers:
Operator
Thank you very US ma’am. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to two-question per participant. Should you have a follow-up question, we request you to rejoin the queue. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles thank you. A reminder to all participants, you may press star and one to ask a question.
We have a first question from the line of Sanjay Sarpathy from Ampersand Capital. Please go-ahead.
Sanjaya Satapathy
Yeah. Congratulations on a great set of number. So just two questions. One is that you mentioned your order inflow was a little slow in-quarter three. How is your deal pipeline and future outlook in terms of order going-forward.
Udai Singh
No, Sanjay ji, this was more of a time effect, I will say you know, because we are in a business where there are multiple project orders given by multiple stakeholders and we intentionally try to pull-up some orders so that we can make the year more robust. If you ask me, generally speaking, the pipeline is good, is healthy and we don’t see any roadblock in the pipeline as we see today.
Sanjaya Satapathy
Thank you. And my last question is that your other expenses continues to rise fairly strongly like almost 30% 40% rise again in this quarter. And can we– and can we get a sense like how things will go moving forward? And will that be the benefit of operating leverage will finally kind of take-in to the company?
Suparna Bhattacharyya
So other expenses, yes, rightfully said that it is — it has grown in the 35% to 40% bracket. Some of the expenses are particularly related to sales with respect to the provisions, etc., the accounting entries that we make. So out of this 38%, so almost 18% goes into such directly chargeable provisions and expenses that we incur. And apart from that, yes, there has been a rise in expenses, but this is mainly with respect to the expenses, which we have incurred internally to strengthen the organization in team building, capability building, having I mean expert people to work-in the organization. So that’s how we are kind of building internal capabilities in the organization, which was somewhere till the time the company stabilized, we were not building such expenses, but now we are building your company for the future and increasing these expenses. And very — in the near-future, you’ll see that we’ll be able to, I mean optimize on these expenses with respect to our operations.
Sanjaya Satapathy
That’s wonderful. And if I can just ask last thing, there was some expansion which is going on in your Kolkata factory. What really is the status there?
Udai Singh
So it is on-track. We are trying to make interrupters there and going to be one of the kitchen factory at Group. So this is on-track the way it was planned. It is happening and you know it is expected to go-live very soon as per the class.
Sanjaya Satapathy
Understood. Thank you.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Ruthicha Ruthita from. Please go-ahead.
Rucheeta Kadge
Hello, sir. Very good evening. So major my question was on the order book, which was already answered. Second was, sir, on the nuclear part of it. So in the nuclear part, what can be our opportunity size out of this plan of 100 gigawatts and where our product — what products can we supply here.
Udai Singh
So which is an important question and a very nice one. You know, government has actually, if you must-have seen the budget, they are talking about developing indigenous expertise in developing a smaller — smaller reactors, you know. So you have, if you see, we have the nuclear power plants, which are capacities of 700 or 800 megawatt energy. Now we are thinking about making something which is being called as small modular reactors or SMRs, which go up to 300 and then micro reactors, which are of smaller-scale will be typically around 10 megawatt. This 100 gigawatts is a capacity which is slated to be in year 2047. Now what is important is the dependency on our own Indian manufacturers to make this you know what it also brings in is the ease at which it can be put, the pace at which it can be put. And the third, if you would have noticed, government is also trying to think about how to tweak the liability part because that was a major deterrent for enabling private participation in development of nuclear — nuclear plants in the past.
Now if you — the second question which you had asked as to what we can supply there, the entire — you know, because finally is a power plant, whether it’s a coal-fired or gas-based or nuclear is one on the same. What we can do is supply the same set of equipment, same set of softwares, although that would mean that this happens to be slightly more critical. And the criticality typically depends on how closer I go as to the reactor core. So you know, I mean, I would — I’m afraid that I’ll go more technical, but what it means is as closer you go to the core, your equipment becomes more — it has to be more stringent, it has to be more critical and it has to be more robust. So — and — but the long is that it offers an potential and upside for the company to get engaged with those people who actually will start developing nuclear power plants for India for his own self-resiance.
Rucheeta Kadge
Okay. And sir, you know, earlier I was just going through a few use cases. Isn’t the small modular reactors more expensive than you know an alternative power source?
Udai Singh
See nuclear is by virtue of the nuclear is a more expensive. It depends on actually how much do you produce, how efficiently do you produce, where do you produce and at what do you put up a power plant? You know, because in the past, and that’s what I mentioned to you. In the past, normally we have seen because of so many regulatory approvals and the nature and the size of the plant itself, it typically used to have a overstretch in terms of the timelines in which the power plants were getting made.
For example, today we are sitting at a capacity of about 8.1 gigawatts. So just look at the road, the strong road which is ahead of us, 10 times by year ’27. So we’re talking about building up 10 times in 25 years. And when the scale picks up and when the technology would be used, I think we will be in a position to make more efficient reactors, I’m sure about that.
Rucheeta Kadge
Okay. So we’ll have opportunity in the small modular as well as the larger nuclear power plants. Is my understanding right?
Udai Singh
You are right.
Rucheeta Kadge
Okay, understood. Understood, sir. That’s it from my side. Thank you.
Operator
Thank you. We have our next question from the line of Aditya Devra from Alternative Investments. Please go-ahead.
Aditya Deorah
Good evening, Uday, sir. Superna ma’am. Sir, our order backlog growth is just 7% for this quarter on a year-on-year basis. So are we expecting some slowdown in growth that we are looking maybe for this quarter or for the next few quarters.
Suparna Bhattacharyya
Thank you very much. So as I said, thank you for keeping an eye on the backlog. Yes, this quarter was a little slow based on the industry situation in terms of orders. But based on the pipeline that we have, we are hoping that the next order will pick-up. The next quarter, the orders will pick-up and we shall have a good backlog by the year-end, by the quarter-four end. And also it is worthwhile to note that we pulled in a lot of sales from the orders that we had in — until Q2. So with the heavy sales, you know the backlog has certainly reduced, but then the focus to increase our orders in the next quarter will be surely visible to all of you.
Aditya Deorah
Now ma’am, on a trailing 12-month basis, now we are generating around INR373 crores INR60 crore INR70 crores kind of an EBITDA. And in all probability, this number would be higher next year and the years ahead. Now how do you wish to allocate this capital or this cash flows that you generate over next few years, would your priority be capex, would it be working capital, would it be debt repayment to sister entities? What would be the priority of the management going ahead?
Suparna Bhattacharyya
Okay. So until now, I mean the focus was being — was always to stabilize the organization. As you know, prior three years prior to the current-period, we were into losses and the company was stabilizing. Now with the last three years, we have stabilized and the funds which we are generating, we are doing better, much better in terms of cash and it is definitely funding our working capital. But as you’ve just seen that we have announced an investment and we are looking for major expansion and investments in the years to come and we will use our cash to fund both the working capital as well as the growth strategies.
Aditya Deorah
Perfect. Sir, just one last clarification. Did you mention any date of commencement for the Calcutta plant?
Suparna Bhattacharyya
Very soon in the next few months.
Aditya Deorah
Perfect. Thank you. Thank you.
Operator
Thank you. We have our next question from the line of Vinod from PhillipCapital. Please go-ahead.
Vinod Chari
Yeah, hi. Thank you for the opportunity. In your opening commentary, you mentioned that this quarter had better sales mix, better productivity. I think there was also stress on services and better leverage. So are we seeing the best-in terms of our performance or you mean are we peaking out on margins at this stage?
Suparna Bhattacharyya
See, whenever we are doing business, we always look for things better in terms of sales, growth, margin growth, optimization of the fixed expenses. So that way, I mean this question, I would probably say that we are definitely voting for a better future with respect to. So specifically, we talk of the thing of every business is always looking for growth.
Vinod Chari
No, I understand that, but I think you checked all the right boxes in this quarter. So everything right has fallen in-place. So from that perspective, I was just asking.
Suparna Bhattacharyya
So we are looking for better times ahead for sure.
Vinod Chari
Sure, sure. And the second thing is I just wanted to understand this, probably you’ve been asked this many times. What is our offering and how is it different from the acquisition you did for L&T’s business or the group did from the for L&T’s business five years back? Is there anything complementing the offering or is there some overlap in the products?
Udai Singh
The application wise, Mr Vinod, they are practically the same because — and so are the rest. You know, is only I would say that it is not an overlapping market. It is — there are certain segments where we have been greatly working and there is segment where the other team has been working and it is complementary. You know, there are certain pluses, certain minuses in both the platforms, which customer appreciates and puts to its right use and the way they want it to be that. So if I may have answered your query, it goes like that.
Vinod Chari
So do you also jointly bid for projects and then each of you appropriate your portion of the product or business is that also happens?
Udai Singh
No.
Vinod Chari
Okay. Yeah.
Operator
Thank you so much. Thank you for the reply. Thank you. A reminder to all participants, you may press star and one to ask a question. I repeat, you may press star and one to ask a question. The next question is from the line of Viraj Mithani from Jupiter Financials. Please go-ahead.
Viraj Mithani
Yeah, good evening and my congratulations to the Snyder team for outstanding performance and getting company on the solid profit path. Am I audible?
Suparna Bhattacharyya
Yes, yes, you are audible.
Viraj Mithani
Okay. Okay. My first question is regarding how are we — we — are we affected by this rupee-dollar movement or it’s — that can be negative. So are we importing any of the imports in the raw-material side or anywhere else is it impacting us?
Suparna Bhattacharyya
So we have our first hedging policy as per the guidelines within the organization and it’s not really impacted by — not impacted much over the foreseeable future because we do have a very robust treasury theme which is — which helps us cover such currency fluctuations.
Viraj Mithani
Okay. And my second question is just with 2030 coming nearby, which is a Paris Accord where every country has signed this green climate agreement. And do we see this next two, three years the traction happening are — are you seeing any sense of improvement in the market since — and the renewable side or maybe on the greener side.
Udai Singh
Yeah, certainly, yes, because now if you actually look go back and try to see as to how the situation was in India about four years ago. I think there’s a lot of sensitivity which has come in buyers, users, consumers about how to become more greener, more efficient in their own areas of operation. And we — and this is a very positive move, I would say, because now is the sensitory around the same has increased, which is sort of helping companies like us to partner them in terms of whatever solutions we have so that we can actually make their kind of the operations more efficient in times to come.
Viraj Mithani
Okay. Next is into this article about the greed automation in the world like the greeds are getting older and they are working on the probably thermal or carbon consuming technologies. So — and now the automation has also come in. So how are we benefited in the grid since we are in a medium voltage. So are there any benefit in that where we fit-in?
Udai Singh
Yeah, we are getting benefited because I think if I may like to clarify your question, there are two things which you said. You know, one is you know, we believe that electricity is the most promising green vector in energy space. So one, we are — and this is one of the mantras which the company has as to how do we electrify processes more-and-more, which means that the process which are being run-in the plants which were put in India a few decades ago and on the fossil fuel, how do we electrify? That’s number-one.
Number two is, of course, which you touched upon rightly, India actually happens to be possessing one of the most robust grids around the globe. And where it actually needs some more, I would say, upliftment is how — when we have more-and-more renewables coming in, as we speak, we have about, as I was mentioning, about 100 gigawatts of renewable already inside. We are talking about the green energy corridors where about 40-odd gigawatts is actually being leveraged and channel through that green corridor. So we are talking about the grid, which actually has these qualifiers which are required. Number-one, it has to be strong, resilient, transparent, and it has to be a rebounding one where you can make an effective load distribution. And that is where we play a role because we not only can modernize equipment, which are, as you mentioned, medium voltage, we can — we also have a software stack which actually can be superimposed on the grids to make it more reliable, to make it more predictable, to make it more resilient. And that is something which India has just again I would say you know all, the normal agencies are talking about it. They have all felt it. It is coming in pieces but that’s the future which lies in the greats in India. So your question was absolutely apt and you know we are one of the I would say app companies who actually can address this growing demand of Indian discoms and Indian grids. Thank you. We have our next question from the line of Manish Goel from ThinkWise Wealth Managers. Please go-ahead.
Manish Goyal
Yeah. Thank you so much and very hearty congratulations on very strong numbers and historical high margins, sir. Just a question on the digital solutions offering what we have that in recent past, we have been seeing a lot of wins over there. So just want to get your perspective on like industry scenario, like is it very competitive to kind of pitch for such solutions and the competition intensity is equally high over there? And what is the kind of adoption we are seeing from the customers in terms in terms of acceptability of digital products and maybe the ecostructure architecture what offer? And then related question is in terms of like if you can give us some perspective as to how is the revenue-share increasing from such offerings, right? And is it really helping us in improving our margins gross margins and the EBITDA margin? And where does it reflect it? Does it reflect in transactional products or it reflects even in the services business? Thank you.
Udai Singh
So I’ll go and try to answer one-by-one. First is, India is a evolving and complex landscape when we speak about market. So if I cannot make a general statement about the kind of being competitive, but what happens is what I can say for sure is that there is a growing demand for these digitalized offerings because people have realized the consumers, the users, the sites, the projects, they have realized the merit of adopting it. That is answer to your first question.
Now the second question is whether where do we apply this. Now this is — this gets applied primarily not greatly in transactional because happens to be the one which is for more masses, not a very specific one. It is towards the items which are more engineered, more customized, the acceptance
And penetration of solutions is far higher there.
And the third question, yours was, I think how do we see this happening, which I answered partly in my first reply which I made in the first part. So in times to come, I think this would be the future because we are — we have a dearth of, you know, India is a very typical country, so to say, because we are the way at which we are expanding, there will be a growing depth of skilled people who would actually maintain and the dependency on AIs and machine-learning based, large quantum computing, etc., will go up. It is a more efficient way of doing things also. So all this actually is finally aiming towards that, because just to give you a perspective, whatever we do is actually is taken to the cloud and then if you are a consumer, you are get — you’ve been given advisory support, which actually typically means that how your asset has been behaving and what health life has it attained. So — and this is nothing but lacks and lacks of mean data getting compared with the actual performance of the equipment which you have at your site. So this is MLL adoption, I would say, and which is gaining acceptance and popularity in Indian consumers and users.
Manish Goyal
And here the revenue would be over a lifecycle in terms of probably earlier we did mention somewhere that some of the revenue potential is on subscription-based on a recurring basis. So is it already started reflecting?
Udai Singh
Yeah, it has. It has like.
Manish Goyal
And my question is again if you can please give us data points in terms of order inflow for the — for intergroup, what is the revenue-share for the intergroup and the breakup of inflows between various segments revenue breakup, it will be very helpful. Thank you.
Operator
Thank you. We have a follow-up question from the line of Vinod from PhillipCapital. Please go-ahead.
Vinod Chari
Yeah, yeah. Thanks for the follow-up opportunity. Sir, you’re expanding your transformer capacity from 5,500 MBA to 7,000 MBA at a cost of just INR14 crores. If you look at some of the competitors who are increasing capacity, the per MBA cost is very different. So how do we look at the capital cost for a transformer on a per MBA basis? Is there any basis to look at this capital cost?
Udai Singh
Yeah. Sir, I don’t know the benchmark which you are comparing with. I can speak about your company’s establishment which exists today and where we want to take it. So the — because at multiple places, it may not be right to compare and try to arrive at project cost per MDA and the investment required for this because it may be a greenfield versus a brownfield expansion and certain facilities not being there or peak there makes it makes it happen. Because what we are trying to do here is trying to see as to how do we scale-up our existing infrastructure by some facilities and expanding there. So I think perhaps what we are trying to do is trying to read some announcements which have been made regarding people getting into a transformer business and investing.
Vinod Chari
Correct. So is there any way to look at this capacity? I just wanted to — just to understand the business more.
Udai Singh
Yeah. So as I said, it is actually is ramping-up by about 1,500 MBA, correct? And that will require the existing setup to get more invasion enlarged.
Vinod Chari
Okay. And sir, since everyone in the industry is ramping-up capacity is also — is the supply-chain also ramping-up its capacity or do you see some kind of a constraint on the supply-side some till the supply-chain catches up with the capacity that you guys are do?
Udai Singh
The suppliers also are for like us and like everyone, the entire ecosystem is getting for the new demand which India offers now. So few things here and there. Typically everybody, I would say generic statement that suppliers and other partners are also trying to see as to how do they catch-up with the rural need. So net-net, everyone is supposed to be hearing up for it.
Vinod Chari
Okay, but what about electrical steel and other critical components? I think there people are talking of a shortage on CRGO and CRGO steel particularly.
Udai Singh
There is a — you see, there is — I think you have picked-up one thing which is maybe perhaps I would say, which exist today and where if you have a proper planning done and you have a regular identified supplier, which actually is allowed by regulation, then it’s all right. But yeah, we are now, as you may be knowing that there are people who are trying to make steel by themselves in India and we will be slowly also looking towards them as they start making the steel, the quality of the steel is which we want. So CRGO at times in the past, in few quarters, past quarters have been challenged to few of us and we are going to eliminate it along with government. I think there are multiple government agencies which including MHI, who actually is trying to see us to how do we eliminate and come out of this situation, which we — few of us where in last and last but quarter before last.
Vinod Chari
Sure. Thank you, sir. Thank you so much for the answers.
Operator
We’ll take that as the last question for today. And I now hand the conference over to the management for closing comments. Over to you, sir., sir, any closing comments from your side.
Udai Singh
Now I would like to thank everybody for joining this call and being a great support all this — all this quarter. And let me assure on behalf of management that all teams are focused towards delivering, as I mentioned, the vision and the mission which I shared at the beginning of the presentation. We are working and trying to make Electric infrastructure to things which are the first-in the nature, which is more focused towards customer needs and requirements and we abide by all ethics and why we do business. So all the best and thank you so much.
Operator
Thank you so much, sir. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.