Schneider Electric Infrastructure Limited (NSE: SCHNEIDER) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Udai Singh — Managing Director and CEO
Suparna Bhattacharyya — Chief Financial Officer
Analysts:
Unidentified Participant
Harshit Kapara — Analyst
Ashish Kumar — Analyst
Aditya Deorah — Analyst
Viraj Mithani — Analyst
Neil Ostwal — Analyst
Hiren Ved — Analyst
Manish Goyal — Analyst
Saurabh Shah — Analyst
Ashish Golechha — Analyst
Presentation:
operator
It Sam. Ladies and gentlemen, good day and welcome to the Schneider Electric Infrastructure Ltd. Q4FY25 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 Kaparia. Thank you. And over to you sir.
Harshit Kapara — Analyst
Thank you Saisha. Good morning everyone. On behalf of Alara securities we welcome you all for the Q4FY25 and FY25 conference call of Schneider Electric Infrastructure Limited. I take this opportunity to welcome the management of Schneider Electric infrastructure represented by Mr. Udari Singh, Managing Director and CEO, Mrs. Supanna 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 and A session. I will now hand over the call to Mr. Singh for his opening remarks. Over to you sir.
Udai Singh — Managing Director and CEO
Thank you Ashad and good morning to each one of you and thank you so much for joining. At 11 o’ clock 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 Subarna to talk about financials. And I would request you to go to slide 2 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 and 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.
Going back to 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 which means that a couple of years ago when we just got passed over the unfortunate periods of COVID there was slight surge in the Capex infusion which happened.
Now it has come down to what we see as a steady path for us ahead you know, if you know the GDP essentially has been consistent roughly about six and a half. You know, the GFCF which is 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. You know, one, we see basically the studies done. 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 FY26, which essentially there is slight dip about 10 to 12%. You read different reports basis 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. But there is a silver lining, you know, 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 taking 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 megatrends which are perhaps known to everybody. And what we have try 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. And 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 vector for us. We are talking about renewables, you know about this. We are speaking about green hydrogen. That was the national Green Hydrogen mission which where government is committed for pumping in about 20,000 crores for 5 mm dpa production by 2030. The nuclear energy. There’s 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 to 2032. There’s another important piece which we look up to and then 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 source system.
Government is again funding it. There’s a VGF scheme which is getting rolled out. We have multiple Offers around this. If you look at the first block we have what we call as derms and GIS which is item one and two and 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 terms 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.
And this becomes more important because you have now bidirectional flow coming in multiple generation and consumers and consumer landscape which are evolving. And that’s the reason why 1 and 2 becomes very important along with 4 which is nothing but the micro grids which is sort of, I would say a set of software which allows and facilitates bi directional movement of energy. Now another way is, you know another topic is of course AI and digitalization. You know 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% or 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 76,000 crores. And 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. And 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 bytes gigabytes per month.
Something which has grown by about 5, 7 times and this continues to grow. And again we have elements like we’re talking about eco care and cyber security solutions which are around this. Now if I speak about sustainability and Vixit Bharat I combine them both together just to save some time. You know we are talking about government is spending about 11,000 on the eDrive scheme. We are talking about 15,000 in the gain steel taxonomy and mission which all supporting and aimed at India’s net zero plan of 2017. And we have a lot of good things which we have to support this initiative of India.
I do not know as to how many of you gentlemen and ladies could get chance to come over in Greater Noida sometime earlier this year in Feb in Elakrama where we had displayed all these solutions which are so Called state of the art and more futuristic in terms of RMA asset and GMASET which is nothing but the primary and secondary SF63 equipment which we have actually launched this year at Elekrama. And 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.
With Sid Bharat. I just want to tell you about the more and more indigenization efforts which we are putting. I’m sure you are aware about roughly 200 crores 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 and at the same time trying to mitigate the unsatarinities 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 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 Balocar.
I would now like to go to slide 5 which is nothing but you know, it just showcases the established expertise which your company has got to get some significant wins. And I come to slide 5 which speaks about the strength which we keep on witnessing and delivering in the core segments where you see in the power and grid. We have supplied after a gap to one of the central utilities in India. And this is the transformer which we have supplied which is fully digitalized, when I say fully digitalized. It has got all the sensors and visualization and the cloud visibility of data.
And I should thank the utility which actually embraced this 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 in for long because this 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 when times will 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 panels have been supplied by us.
If you go to slide 6, 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 and our partners who actually we have made for 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. What is expected out of Schneider. Just to give you an example in power and grid, the second 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. And then we have same we have supplied to another grid company in the south. And then 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 is one success which is there in the north. I would move to slide 7 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 and thanks to again the company which actually adopted this. Then we have another private player where a well known private player, multidimensional I would say in Central India or in Western India where we have actually supplying what we call as T500 which is perhaps one of the most advanced remote terminal unit ever been made to power the solar plants which they are putting up of 2 GW in Gujarat.
I go to. You know, nothing is complete till the time we speak about what we have been doing on the new energy side. And of course if you look at slide 8 is where we are trying to. We have already in the process of supplying in one of the UK based people who actually are making cells in India. And here also if you see we have supplied them the most advanced AIs panels with all sensors and we have actually proposed them in asset management which is managed on the cloud. Second one is also important again here is 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.
And they are venturing into a hybrid solar wind. And we supply them transformers again in their hybrid renewable plant and which was again fitted with the dye 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. And we did couple of, we engaged couple of agencies which are very well known in this area in terms of telling you as to how the company has been faring.
And I am so happy to share that in both assessments which were done by ESG Risk and Prism, we stood pretty strong and I don’t want to rate as to where our peers were, but we were one of the highest this ranking as well. I actually will also now like to briefly touch upon slide number 11 which is nothing but the largest stalls which we took at Elegrama 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 couple of ranges as you see in the pictures below. The GMA set on the left is the SF63 technology and highly the GM set on the right at the same time is make in India as I was mentioning some time ago, which we make in our Baroza plant. Again very much modular, extremely easy to service and fully digitalized. Now this entire Electrama which actually ran for about four and a half days because last half a day we wind up actually witnessed about 10,000 plus customer footfalls. We had 20 plus thought leadership sessions this stall and this was something which was 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 nervous 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 do we did in ETEXT 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. And it is a platform which was called as ETECH 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 user should do in terms of the India mission of delivering and becoming net zero by 2017 on the right side.
Again, I’m so proud to share with you that at the INDO French Business Awards 25 they hold a very intense competition trying to see as to which of the company has launched the most innovative product or the service of the year. And I’m so happy to share that this product which was a SS6 fee solution on the secondary side, RNA asset won the best award, best award or the award for the most innovative product this year. Now I would request my colleague Subarna 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.
Suparna Bhattacharyya — Chief Financial Officer
Thank you Uday and good morning everyone. So a year has gone by and again we are ready with our annual numbers and a lot of good stories to tell. And 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. So 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 2693 crores. Sales closed at 2,637 crores with 19.5% growth. Gross margins improved significantly at 26% at 1037 crores EBIT again a significant improvement by 35%. And we did 382 crores at the PAT level 55.8% growth, significant improvement over there. With 268 crores and free cash flow we generated 245 crores of free cash flow which is a huge improvement over last year which is at at 85% levels of improvement. So again continuing with the increase in our sales, our revenue, our growth story, we clocked the highest revenue and profit, better profitability with focused strategies leading to consistency of profitability, cash efficiency.
Most important, we did extremely well this year in terms of the cash efficiency and future readiness. And when I say of future readiness, while we were extremely busy in generating this kind of growth in the revenues, we did not, but we did not lose sight in the future readiness. And that’s how we 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 segment, particular segment, the growth segments like the data centers, cv, Semicon and of course the resilience segments.
We strengthened more focus on services because for services is basically an ongoing business. After we have installed the equipment and promote partners. So distributors and panel builders are. 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. And 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.
So we are pleased to announce two investments for two of our plants. The Vadodara plant and the Kolkata plant. So 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 will be at 14,000 panels. We are thinking that, I mean as of now we are expecting that we’d be able to add this in the year 2627. The investment for the Vadodara plant is about 100 crores.
And happy to share that the mode of financing will be mainly internal accruals. And maybe because of the timing of the cash out means we might resort to some kind of borrowing. But. But with the extremely good cash situation in the organization we are happy to say that mostly we will be funding it through the internal accruals. And the rationale as I mentioned, to meet the market growth and growth ambitions. Now coming to the Kolkata plant we have a capacity of 5,000 breakers currently which is also at 90% level of utilization. We will be adding another 40,000.
So after this our capacity will become nine times higher. We will be having a capacity of 45,000 and we want to explore markets within and outside India for this. Again this also we expect to complete by 262790 crores approximately investment for this project. And again similar mode of financing and 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 2375 crores to 2693 crores only for the quarter four level we have been.
We were at 686 last year and we are currently at 762 crores which is an 11% increase and we are maintaining a healthy backlog of 1253 crores. Now coming to the sales numbers. Overall improvement in sales by 19.5% from 2207 we grew to 2637. Talking of standalone Q4 numbers we were at 472 last year and we closed at 587 which is 24.4% growth. Now coming to the financials of the full year, 19.5% increase in the sales and overall PAT increase at 55% has a great story to tell. Coming now to the P and L line.
Item wise, good improvement in our gross margins and you can see the improvement in gross margins by about 2 points. And 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. So good improvement in our material costs and overall gross margin. Employee costs have increased by 12.3%. Pretty sorry, 11.2% pretty much in tune with the annual inflation or the salary increase that we give. And 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 and these are not the major capex or you might be remembering the Kolkata plant capex which we announced the depreciation not yet flowing in. Talking of the finance cost, we reduced the finance cost by 28.5% because of some internal accruals which we have taken a reversal and which has come into exceptional items. And 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 and of course that has at an overall level at pat we have given an increase of 55.8% and in terms of the points change we have grown by 2.4 points. So good year I will say and lot of improvement in terms of the cash efficiencies which has actually given us some benefit in ECL provisioning and overall very good hygiene in our numbers. Now coming to the standalone result for quarter four, good growth in sales but there was a Little tweaking in the, in this current quarter with respect to the transactional business which slightly lowered and 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%. And 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 and 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 and so good results. And then this has flown this quarter four has flown into the 12. Year four, sorry, 12 month results overall, I’m sure we did beyond expectations. Thank you very much. And now over to Harshit and his team.
operator
Ma’ am, should we begin with the question and answer session?
operator
Yes, yes we can.
Questions and Answers:
operator
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 touchtone 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 a question. 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.
Ashish Kumar
Yeah, thanks for taking my question. My first question is our order backlog is up only 2% on yoy basis. So if you can give some comments on that and how we should look at it. And 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.
Suparna Bhattacharyya
So I’ll answer your question and request Uday to add to this. So while you know, different categories of businesses that we have, Systems, transactional services, etc. Our transaction is growing and with the kind of improvement in the transaction business, which is again contributing better in terms of profit, we, we do not need what you call a backlog really for this because these orders are quickly executed. And if we say that our backlog is lower in terms of growth, it really doesn’t mean that we are not very optimistic about the sales going forward. So that is where I can say transactional business is gaining a lot of momentum.
And Uday, if you might like to add to this.
Udai Singh
Thank you, Subanna. Thank you Ashiji for your observation. You know, in fact we grew in terms of orders. We have actually grown by about 13.5% in the year. And if you really look at we have actually generated a positive leverage in Terms of what we book and what we sold now, 2% is of course a single digit number but you know, because of few reasons. One, as what Subanna said and also to add this 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 is.
Everyone seems to be all over user seems to be, you know, asking for deliveries and normally Q4s are large so there’s a reason but you know, other than that there’s no great other reason, you know, so we don’t see that there’s going to be sort of a debt orders this would like to continue or something, you know, because it’s a combination of multiple orders which we book under the various classes of solutions and products which we sell.
Ashish Kumar
Thanks for that. Any comment on the margins?
Udai Singh
See we are aiming Mr. Ashish to actually continue the momentum and we are not losing focus in terms of the bottom lines. And there’s a reason why we are continuously working on two things. One, how do we differentiate ourselves differently with our peers. Two, as to what do we do which can give us slightly better margin than the average. And there’s 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 last few years.
Ashish Kumar
Thank you and best of luck.
Udai Singh
Thanks.
operator
Thank you very much. Participants who wish to ask a question may press star in one at this time. The next question is from the line of Aditya Deora from Divisha Investments. Please go ahead.
Aditya Deorah
Good morning. Good day sir and Supanna Ma’ am, I have a couple of queries and one suggestion. Over last three months we have had three announcements on four capacity additions related to the transformer business, RNU breakers and panels. Now in all these announcements we have mentioned that the existing capacity is near 90%. So for the current financial year, since the Calcutta factory is also not yet operational, how would we augment the resources for revenue growth?
Udai Singh
Thank you Mr. Ajit and very good morning. You know, when we say 90% and you know in our plants which are essentially customized equipment, this is source of install capacities. And when I say install capacities, we can always perhaps leverage this infrastructure to derive more the needies. 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. So for example if I say X I can derive 1.2x or maybe 1.2. 5x is the need is depending on engaging more people or running delta more shifts. That’s not going to be hampering. If I would say. I mean we have no limitation of upside because of 90% utilization. If that as a question which you had.
Aditya Deorah
Perfect. Perfect. Now my second query is related to the breakers capacity which we are setting up in a plant in Calcutta. So would it be in the pro space plant in Dankuni or would it be in our existing plant in Salt Lake? Okay, so that means that the new one has additional greenfield area for setting up maybe further plants beyond this one also.
Udai Singh
Yes, it has.
Aditya Deorah
Perfect. Perfect. So 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. But a lot of press releases are posted on the Schneider India website and it is not communicated to the stock exchange. So we as investors, as shareholders, we don’t get the information. Something like maybe the Tata Power SF6 press release or something related to the Noida International Airport press release. We don’t have access to that information. So if you can just disclose it to the stock exchange. Even if you don’t put in the order or the quantity, that would be very beneficial to the investors. Thank you
Udai Singh
Thanks Adity for this feedback.
operator
Thank you very much. The next question is from the line of Viraj Mithani from Jupiter Financial. Please go ahead.
Viraj Mithani
Hello. Hello.
operator
Yes sir. You’re audible.
Viraj Mithani
Okay. Okay. Congratulations on outstanding numbers. My question is regarding your Kolkata visit. You’re adding nine times. So what give you that kind of confidence to add capacity 9 times your size? Right. If you can give more color on that breaker.
Udai Singh
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 Calcutta. And this is what we intend to do. And this would be in coming times. It will be products which will be made for India and maybe perhaps sold to other units of ch outside out of this plant in Canada.
Viraj Mithani
Can you. Are there more margin active or how are this product? Can you more color on that?
Udai Singh
Can you repeat it? I’m sorry, I miss you.
Viraj Mithani
Are these products more margin attive? Since we’re adding capacity nine times. So can you give more color on that would be helpful. Like what would be the top line or what kind of business we expect from this business additional capacity. I know you don’t give numbers, but some ballpark figures would be interesting.
Udai Singh
It will be difficult, sir, at this point in time. But we do have Plans in place with various ranges of breakers which we are going to manufacture in a staggered 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.
Viraj Mithani
Okay, and my next question is about like how do you see the margin trajectory we going forward? You know some color on that would be helpful since now we are in a good margin trajectory.
Suparna Bhattacharyya
So overall optimization at the margin level is a very important thing that we all are looking forward for. Because every year if you see our margins have improved unless and until there is a situation which is beyond our control and also at the operational level we keep on adding to our margins, go on for orders with better margins and we are quite selective about orders. We do not want to dilute our margins and also at the same time promote the high margin giving categories like transactional services, etc. So this overall as a combined strategy will not only help us retain the margins but also grow the margins. So that’s the thought process for the margins from.
Viraj Mithani
That’s it from. Thank you and all the best.
Udai Singh
Thank you.
operator
Thank you very much. The next question is from the line of Neel Ostwal from Bajaj Finserg Asset Management. Please go ahead.
Neil Ostwal
Hi sir. Congratulations on a wonderful set of numbers. Just one bookkeeping question. So the order inflow number for FY24. And Q4 FY24 seem to be different in the current presentation versus what was mentioned last year. So can you help us reconcile the same?
Suparna Bhattacharyya
So we did not include intergroup orders but going forward we’ll be including that.
Neil Ostwal
Okay, understood. Thank you.
operator
Thank you very much. The next question is from the line of Hiren Waith from Alchemy Capital Management. Please go ahead.
Hiren Ved
Yeah. Hi, thanks for taking my questions and congratulations on very strong numbers. My question is that how much should. This 200 crores of capex, how much incremental turnover can be achieve with this 200 crores of incremental capex? That’s my first question and 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? So these are my two questions.
Udai Singh
I can take the second one first Hyanbari and then I think Subath. I 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 heart and give it to somebody to do the rest.
So when we adopt a later model, we call that as transaction. That’s one. And the services are just pure service nature on either of installed basis of our own make or any other make which is. Which might exist in any site. And I think you did mention about that these are short cycle. Yes, these are short cycle and so are the other normal business as well. So you know, it depends on the order size because we typically have a, you know, defined manufacturing time depending on the equipment in consideration and depending on the value and the way is being executed.
The cycle times of project execution is varying. That’s 1, 2. 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 1, 2, 3. It is actually available to be. They are expected to be penetrating and be reaching there at each and every sector segment. So they are sorts of sector 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 201 crores of investment which you plan to do. Yes. Or point out.
Suparna Bhattacharyya
While we really can’t share about the numbers, the additional incremental revenues. But 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. So and that would definitely add to the incremental revenues in our case what we have seen. And by getting this approved, we see a staggered growth. And especially if I talk of the Kolkata capacity we will be doing not only for India even we’ll try to sell outside India. So overall put together we are seeing a good traction 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 levels. Maybe some impact of depreciation in the earlier times before we reach that critical mass. But overall we are very positive and optimistic for the revenue to grow for these lines.
Hiren Ved
Okay, thank you so much and all the best.
Suparna Bhattacharyya
Thank you.
operator
Thank you very much. The next question is from the line of Manish Kural from Thinkwise Wealth Managers llp. Please go ahead.
Manish Goyal
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 500 crores of cash flow from the operations which is quite commendable. So congratulations on That I have a few questions. First on the capex what we have probably done in last two years of nearly 120 crores. And the balance sheet shows capital work in progress of 86 crores. So is it pertaining to our new facility at Calcutta where we are putting a vacuum in the trucker products? So what is the status? When do we expect that facility to start and probably see a ramp up going forward? That is the first question.
Second question ma’ am on the other expenses which has jumped 33% and probably we are seeing this happening again in last two years from 9.3% of sales to almost 12.2% of the sales. And this year it seems that it is gone up despite some write backs. So maybe if you can clarify on that aspect. And also related question is other income has gone up from 9 crores to 25 crores. So probably there is some reversal of impairment of trade receivables. And are there any one time in these other expenses. And I have couple of more questions so I’ll follow it up. Thank you. Thank you sir.
Suparna Bhattacharyya
Okay, talking of the cbip. Yes, it’s mainly from the Kolkata plant and maybe over there you can add when we, when we will start production.
Udai Singh
Yes, Supanna. So sir, we are actually, you know 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 you know, consolidating at the new plant which we are sort of, we’ll be doing in say a quarter or two because we do not want to disturb the current production and the peaking requirement which exists and as we see today, so it’s getting staggered. And if the answer is when, maybe sometime by end of 25 or maybe early 26 is where we see that we moving into one plant and trying to put up most of this equipment better.
Manish Goyal
So to clarify. So you are saying the phase one has started at the new facility?
Udai Singh
Yeah, it’s about to start because we have a very rigorous practice of actually testing it out before we start commercializing it. So that’s, that’s almost about to happen. We are in the last stages of validating what we have produced.
Manish Goyal
Okay. And how much capex we would have.
operator
Sorry to interrupt. Can you please rejoin the queue for a follow up?
Manish Goyal
My question is not yet answered. On other expense also.
operator
Okay, sir.
Manish Goyal
Yeah, sorry for that. Thank you.
operator
So you can proceed with your question.
Manish Goyal
Yeah, yeah. My question was on Other exchange which has jumped 33% and there have been some write back so. And other income is also increased. So if you can please clarify on that. Thank you.
Udai Singh
So Varna, would you like to take that question please?
Suparna Bhattacharyya
Yeah. Yes, sorry, I started speaking on mute. Sorry. Okay, so I was talking of the other expenses increase. And while we had to see other expenses, 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 fbil 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. So we’ve also started our branding activities.
We participated in Elektrama, as you know, with our product launches, etc. So with all that we have some good amount of marketing branding expenses which have come and as I said, now we have the strength to invest for the future. And when I say it’s not about Capex, it’s also on the operating expenses where we are building internal capability on many fronts. And so, and so expenses of that nature have increased. So all put together, of course the sales increase has contributed to a fair extent and also our thought process and philosophy within the organization of how to keep the market, I mean keep and as well as grow the market share, build internal capability, training, branding, marketing, etc.
So all that has made us spend about this kind of an increase. But the assurance that I want to give is that each and every rupee of expenses monitored and a good thought is gone before we give internal approvals for the spending.
Manish Goyal
And then on other income, is there any one time element and can you please share the breakups of revenue order into an order book? Thank you ma’ am. And I’ll come back in,
Suparna Bhattacharyya
I’ll first talk of the other income. So we had, we could write back a few payables which were very old ones and we took our vendor confirmations and we could probably write back those payables. That was a one time exercise and never happened, shouldn’t happen again. And we also received some interest on income tax refund.
Manish Goyal
Okay. And when revenue breaks up and order, influence, order. Thank you.
Suparna Bhattacharyya
So should we take that later on?
Manish Goyal
Sure. Thank you.
operator
Thank you very much. The next question is from the line of Saurabh Shah from AUM Advisors. Please go ahead.
Saurabh Shah
Good morning sir. A question on the new capacity enhancements. In how much time do you expect these plants to achieve? You know, like 50, 60% utilization once they’re set up in 27.
Udai Singh
Swarabji. There are multiple things which we plan to do in Baroda and when I say multiple I mean more than one platform which we are trying to do here. And it will actually kick start now. And it has got different complications time frames. So we expect anywhere from say one year to two years is where we would be bringing up the capacities as planned of these different lines and the different platforms. As.
Saurabh Shah
A Calcutta would be similar or Calcutta, given her breakers that might be faster.
Udai Singh
Same. Saurabhji may be here and there a few months. But otherwise even there, you know, 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. So it is all staggered. We are trying to come up in stages and we are trying to see as to how do we keep on serving the market without losing continuity.
Saurabh Shah
The question was on the sales.
operator
Sorry to interrupt. So sorry to interrupt but can you please rejoin for a follow up?
Saurabh Shah
So the same question, I just asked one question about the capacity.
operator
Okay sir, sorry about that.
Saurabh Shah
Just a question about, you know. What. Percentage of your sales would be to the group companies and do you expect that to change in the next two, three years?
Udai Singh
This is for you if you can perhaps answer.
Suparna Bhattacharyya
There’s no change which we are expecting would be in the similar range as Of now
Saurabh Shah
Which is how much.
Udai Singh
Is 15 plus minus 2C per synthesis.
Suparna Bhattacharyya
It’s about 18% of the group sales that we do of our total sales.
Saurabh Shah
Okay, great. Thank you.
operator
Thank you very much. The next question is from the line of Ashish Ajit Kolecha from B Ventures llc. Please go ahead.
Ashish Golechha
Yeah, hi sir. Good morning and congratulations for very good set of numbers. So my first question was with respect to differentiation in Electrama also you highlighted and you said that you are focusing on various products with respect to competitors. Where currently Schneider management is focusing on that traction is there. If you could throw some light on that first question.
Udai Singh
Sir, I’m sorry I could not get your question. What did you say on Electromo?
Ashish Golechha
Sir, with respect to differentiation of the product, you said that Schneider management is currently focusing on various products with respect to the combination where the traction is there. So if you could throw some light where the current focus is there. And how are we going about compared to with respect to the competition from ABB and Hitachis and other competitors of Snider in the same product scheme where the traction of the management is going currently?
Udai Singh
See, I cannot comment upon our friend. But what I can perhaps speak about what we are trying to do in terms of really innovating and putting our R and D efforts by stepping into our end user 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. So I would say our uniqueness is that with every passing time we keep on enhancing more and more about what we can resolve 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 like for that product. So 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 operations and scheme of things. So I would. It may be unfair on my part to comment upon AVBS and Hisachi, but this is what Schneider has been doing.
Ashish Golechha
Also another question like out of hundred percent, what percentage of focus is now basically going towards Data center with respect to the revenue part.
Udai Singh
Is about 15 plus minus 3%.
Ashish Golechha
Thank you sir. Thank you sir. Wishing you all the best.
Udai Singh
Thank you.
operator
Thank you very much. Ladies and gentlemen, this was the last question. I now hand the conference over to Harshit Kapadia for closing comments. Please go ahead sir.
Harshit Kapara
Thank you Sasha. We would like to thank the management of Standard Electric Infrastructure for, for giving us an opportunity to hold this call. We also thank all investors and analysts for joining for this call. Any closing remark, sir?
Udai Singh
Thank you Harshad and I’m sorry we overstepped by about three minutes. I would just like to thank all the investors in patronizing us and keeping faith in the company and hope to have a very great day and thank you so much.
operator
Thank you very much on behalf of Alara Securities. That concludes this conference session. Thank you for joining us and you may now disconnect your lines.